Bill Text: FL S0744 | 2017 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Community Associations
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Vetoed) 2017-05-03 - Laid on Table, companion bill(s) passed, see CS/CS/HB 1237 (Ch. 2017-188), HB 6027 (Ch. 2017-161), CS/SB 1520 (Ch. 2017-122) [S0744 Detail]
Download: Florida-2017-S0744-Comm_Sub.html
Bill Title: Community Associations
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Vetoed) 2017-05-03 - Laid on Table, companion bill(s) passed, see CS/CS/HB 1237 (Ch. 2017-188), HB 6027 (Ch. 2017-161), CS/SB 1520 (Ch. 2017-122) [S0744 Detail]
Download: Florida-2017-S0744-Comm_Sub.html
Florida Senate - 2017 CS for SB 744 By the Committee on Regulated Industries; and Senator Passidomo 580-02979-17 2017744c1 1 A bill to be entitled 2 An act relating to community associations; amending s. 3 718.111, F.S.; revising reporting and record 4 requirements; amending s. 718.112, F.S.; authorizing 5 an association to adopt rules for posting certain 6 notices on a website; revising provisions relating to 7 required condominium and cooperative association 8 bylaws; revising provisions relating to evidence of 9 condominium and cooperative association compliance 10 with the applicable fire and life safety code; 11 revising unit and common elements required to be 12 retrofitted; revising provisions relating to an 13 association vote to forego retrofitting; providing 14 applicability; amending s. 718.113, F.S.; revising 15 voting requirements relating to alterations and 16 additions to certain common elements or association 17 property; amending s. 718.707, F.S.; revising the time 18 period for classification as bulk assignee or bulk 19 buyer; amending s. 719.104, F.S.; revising 20 recordkeeping and reporting requirements; amending s. 21 719.1055, F.S.; revising provisions relating to 22 required condominium and cooperative association 23 bylaws; revising provisions relating to evidence of 24 condominium and cooperative association compliance 25 with the fire and life safety code; revising unit and 26 common elements required to be retrofitted; revising 27 provisions relating to an association vote to forego 28 retrofitting; providing applicability; amending s. 29 719.106, F.S.; revising requirements to serve as a 30 board member; prohibiting a board member from voting 31 via e-mail; requiring that directors who are 32 delinquent in certain payments owed in excess of 33 certain periods of time be deemed to have abandoned 34 their offices; authorizing an association to adopt 35 rules for posting certain notices on a website; 36 amending s. 719.107, F.S.; specifying certain services 37 that are obtained pursuant to a bulk contract are 38 deemed a common expense; amending s. 720.303, F.S.; 39 prohibiting a board member from voting via e-mail; 40 revising certain notice requirements relating to board 41 meetings; specifying requirements relating to the 42 adoption of assessments; revising financial reporting 43 requirements; amending s. 720.306, F.S.; providing 44 elections requirements; amending s. 720.3085, F.S.; 45 providing applicability; providing an effective date. 46 47 Be It Enacted by the Legislature of the State of Florida: 48 49 Section 1. Subsections (12) and (13) of section 718.111, 50 Florida Statutes, are amended to read: 51 718.111 The association.— 52 (12) OFFICIAL RECORDS.— 53 (a) From the inception of the association, the association 54 shall maintain each of the following items, if applicable, which 55 constitutes the official records of the association: 56 1. A copy of the plans, permits, warranties, and other 57 items provided by the developer pursuant to s. 718.301(4). 58 2. A photocopy of the recorded declaration of condominium 59 of each condominium operated by the association and each 60 amendment to each declaration. 61 3. A photocopy of the recorded bylaws of the association 62 and each amendment to the bylaws. 63 4. A certified copy of the articles of incorporation of the 64 association, or other documents creating the association, and 65 each amendment thereto. 66 5. A copy of the current rules of the association. 67 6. A book or books that contain the minutes of all meetings 68 of the association, the board of administration, and the unit 69 owners, which minutes must be retained for at least 7 years. 70 7. A current roster of all unit owners and their mailing 71 addresses, unit identifications, voting certifications, and, if 72 known, telephone numbers. The association shall also maintain 73 the electronic mailing addresses and facsimile numbers of unit 74 owners consenting to receive notice by electronic transmission. 75 The electronic mailing addresses and facsimile numbers are not 76 accessible to unit owners if consent to receive notice by 77 electronic transmission is not provided in accordance with 78 subparagraph (c)5. However, the association is not liable for an 79 inadvertent disclosure of the electronic mail address or 80 facsimile number for receiving electronic transmission of 81 notices. 82 8. All current insurance policies of the association and 83 condominiums operated by the association. 84 9. A current copy of any management agreement, lease, or 85 other contract to which the association is a party or under 86 which the association or the unit owners have an obligation or 87 responsibility. 88 10. Bills of sale or transfer for all property owned by the 89 association. 90 11. Accounting records for the association and separate 91 accounting records for each condominium that the association 92 operates. All accounting records must be maintained for at least 93 7 years. Any person who knowingly or intentionally defaces or 94 destroys such records, or who knowingly or intentionally fails 95 to create or maintain such records, with the intent of causing 96 harm to the association or one or more of its members, is 97 personally subject to a civil penalty pursuant to s. 98 718.501(1)(d). The accounting records must include, but are not 99 limited to: 100 a. Accurate, itemized, and detailed records of all receipts 101 and expenditures. 102 b. A current account and a monthly, bimonthly, or quarterly 103 statement of the account for each unit designating the name of 104 the unit owner, the due date and amount of each assessment, the 105 amount paid on the account, and the balance due. 106 c. All audits, reviews, accounting statements, and 107 financial reports of the association or condominium. 108 d. All contracts for work to be performed. Bids for work to 109 be performed are also considered official records and must be 110 maintained by the association for 1 year. 111 12. Ballots, sign-in sheets, voting proxies, and all other 112 papers and electronic records relating to voting by unit owners, 113 which must be maintained for 1 year from the date of the 114 election, vote, or meeting to which the document relates, 115 notwithstanding paragraph (b). 116 13. All rental records if the association is acting as 117 agent for the rental of condominium units. 118 14. A copy of the current question and answer sheet as 119 described in s. 718.504. 120 15. All other written records of the association not 121 specifically included in the foregoing which are related to the 122 operation of the association. 123 16. A copy of the inspection report as described in s. 124 718.301(4)(p). 125 (b) The official records of the association must be 126 maintained within the state for at least 7 years. The records of 127 the association shall be made available to a unit owner within 128 45 miles of the condominium property or within the county in 129 which the condominium property is located within 105working 130 days after receipt of a written request by the board or its 131 designee. However, such distance requirement does not apply to 132 an association governing a timeshare condominium. This paragraph 133 may be complied with by having a copy of the official records of 134 the association available for inspection or copying on the 135 condominium property or association property, or the association 136 may offer the option of making the records available to a unit 137 owner electronically via the Internet or by allowing the records 138 to be viewed in electronic format on a computer screen and 139 printed upon request. The association is not responsible for the 140 use or misuse of the information provided to an association 141 member or his or her authorized representative pursuant to the 142 compliance requirements of this chapter unless the association 143 has an affirmative duty not to disclose such information 144 pursuant to this chapter. 145 (c) The official records of the association are open to 146 inspection by any association member or the authorized 147 representative of such member at all reasonable times. The right 148 to inspect the records includes the right to make or obtain 149 copies, at the reasonable expense, if any, of the member. The 150 association may adopt reasonable rules regarding the frequency, 151 time, location, notice, and manner of record inspections and 152 copying. The failure of an association to provide the records 153 within 10 working days after receipt of a written request 154 creates a rebuttable presumption that the association willfully 155 failed to comply with this paragraph. A unit owner who is denied 156 access to official records is entitled to the actual damages or 157 minimum damages for the association’s willful failure to comply. 158 Minimum damages are $50 per calendar day for up to 10 days, 159 beginning on the 11th working day after receipt of the written 160 request. The failure to permit inspection entitles any person 161 prevailing in an enforcement action to recover reasonable 162 attorney fees from the person in control of the records who, 163 directly or indirectly, knowingly denied access to the records. 164 Any person who knowingly or intentionally defaces or destroys 165 accounting records that are required by this chapter to be 166 maintained during the period for which such records are required 167 to be maintained, or who knowingly or intentionally fails to 168 create or maintain accounting records that are required to be 169 created or maintained, with the intent of causing harm to the 170 association or one or more of its members, is personally subject 171 to a civil penalty pursuant to s. 718.501(1)(d). The association 172 shall maintain an adequate number of copies of the declaration, 173 articles of incorporation, bylaws, and rules, and all amendments 174 to each of the foregoing, as well as the question and answer 175 sheet as described in s. 718.504 and year-end financial 176 information required under this section, on the condominium 177 property to ensure their availability to unit owners and 178 prospective purchasers, and may charge its actual costs for 179 preparing and furnishing these documents to those requesting the 180 documents. An association shall allow a member or his or her 181 authorized representative to use a portable device, including a 182 smartphone, tablet, portable scanner, or any other technology 183 capable of scanning or taking photographs, to make an electronic 184 copy of the official records in lieu of the association’s 185 providing the member or his or her authorized representative 186 with a copy of such records. The association may not charge a 187 member or his or her authorized representative for the use of a 188 portable device. Notwithstanding this paragraph, the following 189 records are not accessible to unit owners: 190 1. Any record protected by the lawyer-client privilege as 191 described in s. 90.502 and any record protected by the work 192 product privilege, including a record prepared by an association 193 attorney or prepared at the attorney’s express direction, which 194 reflects a mental impression, conclusion, litigation strategy, 195 or legal theory of the attorney or the association, and which 196 was prepared exclusively for civil or criminal litigation or for 197 adversarial administrative proceedings, or which was prepared in 198 anticipation of such litigation or proceedings until the 199 conclusion of the litigation or proceedings. 200 2. Information obtained by an association in connection 201 with the approval of the lease, sale, or other transfer of a 202 unit. 203 3. Personnel records of association or management company 204 employees, including, but not limited to, disciplinary, payroll, 205 health, and insurance records. For purposes of this 206 subparagraph, the term “personnel records” does not include 207 written employment agreements with an association employee or 208 management company, or budgetary or financial records that 209 indicate the compensation paid to an association employee. 210 4. Medical records of unit owners. 211 5. Social security numbers, driver license numbers, credit 212 card numbers, e-mail addresses, telephone numbers, facsimile 213 numbers, emergency contact information, addresses of a unit 214 owner other than as provided to fulfill the association’s notice 215 requirements, and other personal identifying information of any 216 person, excluding the person’s name, unit designation, mailing 217 address, property address, and any address, e-mail address, or 218 facsimile number provided to the association to fulfill the 219 association’s notice requirements. Notwithstanding the 220 restrictions in this subparagraph, an association may print and 221 distribute to parcel owners a directory containing the name, 222 parcel address, and all telephone numbers of each parcel owner. 223 However, an owner may exclude his or her telephone numbers from 224 the directory by so requesting in writing to the association. An 225 owner may consent in writing to the disclosure of other contact 226 information described in this subparagraph. The association is 227 not liable for the inadvertent disclosure of information that is 228 protected under this subparagraph if the information is included 229 in an official record of the association and is voluntarily 230 provided by an owner and not requested by the association. 231 6. Electronic security measures that are used by the 232 association to safeguard data, including passwords. 233 7. The software and operating system used by the 234 association which allow the manipulation of data, even if the 235 owner owns a copy of the same software used by the association. 236 The data is part of the official records of the association. 237 (d) The association shall prepare a question and answer 238 sheet as described in s. 718.504, and shall update it annually. 239 (e)1. The association or its authorized agent is not 240 required to provide a prospective purchaser or lienholder with 241 information about the condominium or the association other than 242 information or documents required by this chapter to be made 243 available or disclosed. The association or its authorized agent 244 may charge a reasonable fee to the prospective purchaser, 245 lienholder, or the current unit owner for providing good faith 246 responses to requests for information by or on behalf of a 247 prospective purchaser or lienholder, other than that required by 248 law, if the fee does not exceed $150 plus the reasonable cost of 249 photocopying and any attorney’s fees incurred by the association 250 in connection with the response. 251 2. An association and its authorized agent are not liable 252 for providing such information in good faith pursuant to a 253 written request if the person providing the information includes 254 a written statement in substantially the following form: “The 255 responses herein are made in good faith and to the best of my 256 ability as to their accuracy.” 257 (f) An outgoing board or committee member must relinquish 258 all official records and property of the association in his or 259 her possession or under his or her control to the incoming board 260 within 5 days after the election. The division shall impose a 261 civil penalty as set forth in s. 718.501(1)(d)6. against an 262 outgoing board or committee member who willfully and knowingly 263 fails to relinquish such records and property. 264 (13) FINANCIAL REPORTING.—Within 90 days after the end of 265 the fiscal year, or annually on a date provided in the bylaws, 266 the association shall prepare and complete, or contract for the 267 preparation and completion of, a financial report for the 268 preceding fiscal year. Within 21 days after the final financial 269 report is completed by the association or received from the 270 third party, but not later than 120 days after the end of the 271 fiscal year or other date as provided in the bylaws, the 272 association shall mail to each unit owner at the address last 273 furnished to the association by the unit owner, or hand deliver 274 to each unit owner, a copy of the financial report or a notice 275 that a copy of the financial report will be mailed or hand 276 delivered to the unit owner, without charge, upon receipt of a 277 written request from the unit owner. The division shall adopt 278 rules setting forth uniform accounting principles and standards 279 to be used by all associations and addressing the financial 280 reporting requirements for multicondominium associations. The 281 rules must include, but not be limited to, standards for 282 presenting a summary of association reserves, including a good 283 faith estimate disclosing the annual amount of reserve funds 284 that would be necessary for the association to fully fund 285 reserves for each reserve item based on the straight-line 286 accounting method. This disclosure is not applicable to reserves 287 funded via the pooling method. In adopting such rules, the 288 division shall consider the number of members and annual 289 revenues of an association. Financial reports shall be prepared 290 as follows: 291 (a) An association that meets the criteria of this 292 paragraph shall prepare a complete set of financial statements 293 in accordance with generally accepted accounting principles. The 294 financial statements must be based upon the association’s total 295 annual revenues, as follows: 296 1. An association with total annual revenues of $150,000 or 297 more, but less than $300,000, shall prepare compiled financial 298 statements. 299 2. An association with total annual revenues of at least 300 $300,000, but less than $500,000, shall prepare reviewed 301 financial statements. 302 3. An association with total annual revenues of $500,000 or 303 more shall prepare audited financial statements. 304 (b)1. An association with total annual revenues of less 305 than $150,000 shall prepare a report of cash receipts and 306 expenditures. 3072.An association that operates fewer than 50 units,308regardless of the association’s annual revenues, shall prepare a309report of cash receipts and expenditures in lieu of financial310statements required by paragraph (a).311 2.3.A report of cash receipts and disbursements must 312 disclose the amount of receipts by accounts and receipt 313 classifications and the amount of expenses by accounts and 314 expense classifications, including, but not limited to, the 315 following, as applicable: costs for security, professional and 316 management fees and expenses, taxes, costs for recreation 317 facilities, expenses for refuse collection and utility services, 318 expenses for lawn care, costs for building maintenance and 319 repair, insurance costs, administration and salary expenses, and 320 reserves accumulated and expended for capital expenditures, 321 deferred maintenance, and any other category for which the 322 association maintains reserves. 323 (c) An association may prepare, without a meeting of or 324 approval by the unit owners: 325 1. Compiled, reviewed, or audited financial statements, if 326 the association is required to prepare a report of cash receipts 327 and expenditures; 328 2. Reviewed or audited financial statements, if the 329 association is required to prepare compiled financial 330 statements; or 331 3. Audited financial statements if the association is 332 required to prepare reviewed financial statements. 333 (d) If approved by a majority of the voting interests 334 present at a properly called meeting of the association, an 335 association may prepare: 336 1. A report of cash receipts and expenditures in lieu of a 337 compiled, reviewed, or audited financial statement; 338 2. A report of cash receipts and expenditures or a compiled 339 financial statement in lieu of a reviewed or audited financial 340 statement; or 341 3. A report of cash receipts and expenditures, a compiled 342 financial statement, or a reviewed financial statement in lieu 343 of an audited financial statement. 344 345 Such meeting and approval must occur before the end of the 346 fiscal year and is effective only for the fiscal year in which 347 the vote is taken, except that the approval may also be 348 effective for the following fiscal year. If the developer has 349 not turned over control of the association, all unit owners, 350 including the developer, may vote on issues related to the 351 preparation of the association’s financial reports, from the 352 date of incorporation of the association through the end of the 353 second fiscal year after the fiscal year in which the 354 certificate of a surveyor and mapper is recorded pursuant to s. 355 718.104(4)(e) or an instrument that transfers title to a unit in 356 the condominium which is not accompanied by a recorded 357 assignment of developer rights in favor of the grantee of such 358 unit is recorded, whichever occurs first. Thereafter, all unit 359 owners except the developer may vote on such issues until 360 control is turned over to the association by the developer. Any 361 audit or review prepared under this section shall be paid for by 362 the developer if done before turnover of control of the 363 association.An association may not waive the financial364reporting requirements of this section for more than 3365consecutive years.366 Section 2. Paragraphs (c) and (l) of subsection (2) of 367 section 718.112, Florida Statutes, are amended to read: 368 718.112 Bylaws.— 369 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the 370 following and, if they do not do so, shall be deemed to include 371 the following: 372 (c) Board of administration meetings.—Meetings of the board 373 of administration at which a quorum of the members is present 374 are open to all unit owners. Members of the board of 375 administration may use e-mail as a means of communication but 376 may not cast a vote on an association matter via e-mail. A unit 377 owner may tape record or videotape the meetings. The right to 378 attend such meetings includes the right to speak at such 379 meetings with reference to all designated agenda items. The 380 division shall adopt reasonable rules governing the tape 381 recording and videotaping of the meeting. The association may 382 adopt written reasonable rules governing the frequency, 383 duration, and manner of unit owner statements. 384 1. Adequate notice of all board meetings, which must 385 specifically identify all agenda items, must be posted 386 conspicuously on the condominium property at least 48 continuous 387 hours before the meeting except in an emergency. If 20 percent 388 of the voting interests petition the board to address an item of 389 business, the board, within 60 days after receipt of the 390 petition, shall place the item on the agenda at its next regular 391 board meeting or at a special meeting called for that purpose. 392 An item not included on the notice may be taken up on an 393 emergency basis by a vote of at least a majority plus one of the 394 board members. Such emergency action must be noticed and 395 ratified at the next regular board meeting. Notice of any 396 meeting in which a regular or special assessment against unit 397 owners is to be considered must specifically state that 398 assessments will be considered and provide the estimated amount 399 and a description of the purposes for such assessments.However,400 Written notice of a meeting at which a nonemergency special 401 assessment or an amendment to rules regarding unit use will be 402 considered must be mailed, delivered, or electronically 403 transmitted to the unit owners and posted conspicuously on the 404 condominium property at least 14 days before the meeting. 405 Evidence of compliance with this 14-day notice requirement must 406 be made by an affidavit executed by the person providing the 407 notice and filed with the official records of the association. 408 Upon notice to the unit owners, the board shall, by duly adopted 409 rule, designate a specific location on the condominium or 410 association property where all notices of board meetings must be 411 posted. If there is no condominium property or association 412 property where notices can be posted, notices shall be mailed, 413 delivered, or electronically transmitted to each unit owner at 414 least 14 days before the meeting. In lieu of or in addition to 415 the physical posting of the notice on the condominium property, 416 the association may, by reasonable rule, adopt a procedure for 417 conspicuously posting and repeatedly broadcasting the notice and 418 the agenda on a closed-circuit cable television system serving 419 the condominium association. However, if broadcast notice is 420 used in lieu of a notice physically posted on condominium 421 property, the notice and agenda must be broadcast at least four 422 times every broadcast hour of each day that a posted notice is 423 otherwise required under this section. If broadcast notice is 424 provided, the notice and agenda must be broadcast in a manner 425 and for a sufficient continuous length of time so as to allow an 426 average reader to observe the notice and read and comprehend the 427 entire content of the notice and the agenda. In addition to any 428 of the authorized means of providing notice of a meeting of the 429 board, the association may, by rule, adopt a procedure for 430 conspicuously posting the meeting notice and the agenda on a 431 website serving the condominium association for at least the 432 minimum period of time for which a notice of a meeting is also 433 required to be physically posted on the condominium property. 434 Any rule adopted shall, in addition to other matters, include a 435 requirement that the association send an electronic notice 436 providing a hypertext link to the website where the notice is 437 postedNotice of any meeting in which regular or special438assessments against unit owners are to be considered must439specifically state that assessments will be considered and440provide the nature, estimated cost, and description of the441purposes for such assessments. 442 2. Meetings of a committee to take final action on behalf 443 of the board or make recommendations to the board regarding the 444 association budget are subject to this paragraph. Meetings of a 445 committee that does not take final action on behalf of the board 446 or make recommendations to the board regarding the association 447 budget are subject to this section, unless those meetings are 448 exempted from this section by the bylaws of the association. 449 3. Notwithstanding any other law, the requirement that 450 board meetings and committee meetings be open to the unit owners 451 does not apply to: 452 a. Meetings between the board or a committee and the 453 association’s attorney, with respect to proposed or pending 454 litigation, if the meeting is held for the purpose of seeking or 455 rendering legal advice; or 456 b. Board meetings held for the purpose of discussing 457 personnel matters. 458 (l) Certificate of compliance.—A provision that a 459 certificate of compliance from a licensed professional engineer 460electrical contractor or electricianmay be accepted by the 461 association’s board as evidence of complianceof the condominium462unitswith the applicable fire and life safety code must be 463 included. Notwithstanding chapter 633, s. 509.215, s. 464 553.895(1), orofany other code, statute, ordinance, 465 administrative rule, or regulation, or any interpretation of the 466 foregoing, an association, residential condominium,or unit 467 owner is not obligated to retrofit the common elements, 468 association property, or units of a residential condominium with 469 a fire sprinkler system or other engineered lifesafety system in 470 a building that is 75 feet or less in height. There is no 471 obligation to retrofit for a building greater than 75 feet in 472 height, calculated from the lowest level of fire department 473 vehicle access to the floor of the highest occupiable story,has474been certified for occupancy by the applicable governmental475entityif the unit owners have voted to forego such retrofitting 476 by the affirmative vote of a majority of all voting interests in 477 the affected condominium. There is no requirement that owners in 478 condominiums of 75 feet or less conduct an opt-out vote; such 479 condominiums are exempt from fire sprinkler or other engineered 480 lifesafety retrofitting. The preceding sentence is intended to 481 clarify existing law. The local authority having jurisdiction 482 may not require completion of retrofitting with a fire sprinkler 483 system or other engineered lifesafety system before January 1, 484 20222020. By December 31, 20182016, ana residential485condominiumassociation that operates a residential condominium 486 that is not in compliance with the requirements for a fire 487 sprinkler system or other engineered lifesafety system and has 488 not voted to forego retrofitting of such a system must initiate 489 an application for a building permit for the required 490 installation with the local government having jurisdiction 491 demonstrating that the association will become compliant by 492 December 31, 20212019. 493 1. A vote to forego required retrofitting may be obtained 494 by limited proxy or by a ballot personally cast at a duly called 495 membership meeting,orby execution of a written consent by the 496 member, or by electronic voting, and is effective upon recording 497 a certificate executed by an officer or agent of the association 498 attesting to such vote in the public records of the county where 499 the condominium is located. When an opt-out vote is to be 500 conducted at a meeting, the association shall mail orhand501 deliver to each unit owner written notice at least 14 days 502 before the membership meeting in which the vote to forego 503 retrofitting of the required fire sprinkler system or other 504 engineered lifesafety system is to take place. Within 30 days 505 after the association’s opt-out vote, notice of the results of 506 the opt-out vote must be mailed orhanddelivered to all unit 507 owners. Evidence of compliance with this notice requirement must 508 be made by affidavit executed by the person providing the notice 509 and filed among the official records of the association. Failure 510 to provide timely notice to unit owners does not invalidate an 511 otherwise valid opt-out vote if notice of the results is 512 provided to the ownersAfter notice is provided to each owner, a513copy must be provided by the current owner to a new owner before514closing and by a unit owner to a renter before signing a lease. 515 2. If there has been a previous vote to forego 516 retrofitting, a vote to require retrofitting may be obtained at 517 a special meeting of the unit owners called by a petition of at 518 least 10 percent of the voting interests or by a majority of the 519 board of directors.Such a vote may only be called once every 3520years.Notice shall be provided as required for any regularly 521 called meeting of the unit owners, and must state the purpose of 522 the meeting.Electronic transmission may not be used to provide523notice of a meeting called in whole or in part for this purpose.524 3. As part of the information collected annually from 525 condominiums, the division shall require condominium 526 associations to report the membership vote and recording of a 527 certificate under this subsection and, if retrofitting has been 528 undertaken, the per-unit cost of such work. The division shall 529 annually report to the Division of State Fire Marshal of the 530 Department of Financial Services the number of condominiums that 531 have elected to forego retrofitting. Compliance with this 532 administrative reporting requirement does not affect the 533 validity of an opt-out vote. 534 4. Notwithstanding s. 553.509, a residential association 535 may not be obligated to, and may forego the retrofitting of, any 536 improvements required by s. 553.509(2) upon an affirmative vote 537 of a majority of the voting interests in the affected 538 condominium. 539 Section 3. Subsection (2) of section 718.113, Florida 540 Statutes, is amended to read: 541 718.113 Maintenance; limitation upon improvement; display 542 of flag; hurricane shutters and protection; display of religious 543 decorations.— 544 (2)(a) Except as otherwise provided in this section, there 545 shall be no material alteration or substantial additions to the 546 common elements or to real property which is association 547 property, except in a manner provided in the declaration as 548 originally recorded or as amended under the procedures provided 549 therein. If the declaration as originally recorded or as amended 550 under the procedures provided therein does not specify the 551 procedure for approval of material alterations or substantial 552 additions, 75 percent of the total voting interests of the 553 association must approve the alterations or additions before the 554 material alterations or substantial additions are commenced. 555 This paragraph is intended to clarify existing law and applies 556 to associations existing on the effective date of this act 557October 1, 2008. 558 (b) There shall not be any material alteration of, or 559 substantial addition to, the common elements of any condominium 560 operated by a multicondominium association unless approved in 561 the manner provided in the declaration of the affected 562 condominium or condominiums as originally recorded or as amended 563 under the procedures provided therein. If a declaration as 564 originally recorded or as amended under the procedures provided 565 therein does not specify a procedure for approving such an 566 alteration or addition, the approval of 75 percent of the total 567 voting interests of each affected condominium is required before 568 the material alterations or substantial additions are commenced. 569 This subsection does not prohibit a provision in any 570 declaration, articles of incorporation, or bylaws as originally 571 recorded or as amended under the procedures provided therein 572 requiring the approval of unit owners in any condominium 573 operated by the same association or requiring board approval 574 before a material alteration or substantial addition to the 575 common elements is permitted. This paragraph is intended to 576 clarify existing law and applies to associations existing on the 577 effective date of this act. 578 (c) There shall not be any material alteration or 579 substantial addition made to association real property operated 580 by a multicondominium association, except as provided in the 581 declaration, articles of incorporation, or bylaws as originally 582 recorded or as amended under the procedures provided therein. If 583 the declaration, articles of incorporation, or bylaws as 584 originally recorded or as amended under the procedures provided 585 therein do not specify the procedure for approving an alteration 586 or addition to association real property, the approval of 75 587 percent of the total voting interests of the association is 588 required before the material alterations or substantial 589 additions are commenced. This paragraph is intended to clarify 590 existing law and applies to associations existing on the 591 effective date of this act. 592 Section 4. Section 718.707, Florida Statutes, is amended to 593 read: 594 718.707 Time limitation for classification as bulk assignee 595 or bulk buyer.—A person acquiring condominium parcels may not be 596 classified as a bulk assignee or bulk buyer unless the 597 condominium parcels were acquired on or after July 1, 2010, but598before July 1, 2018. The date of such acquisition shall be 599 determined by the date of recording a deed or other instrument 600 of conveyance for such parcels in the public records of the 601 county in which the condominium is located, or by the date of 602 issuing a certificate of title in a foreclosure proceeding with 603 respect to such condominium parcels. 604 Section 5. Paragraphs (a) and (b) of subsection (2) and 605 paragraph (c) of subsection (4) of section 719.104, Florida 606 Statutes, are amended to read: 607 719.104 Cooperatives; access to units; records; financial 608 reports; assessments; purchase of leases.— 609 (2) OFFICIAL RECORDS.— 610 (a) From the inception of the association, the association 611 shall maintain a copy of each of the following, where 612 applicable, which shall constitute the official records of the 613 association: 614 1. The plans, permits, warranties, and other items provided 615 by the developer pursuant to s. 719.301(4). 616 2. A photocopy of the cooperative documents. 617 3. A copy of the current rules of the association. 618 4. A book or books containing the minutes of all meetings 619 of the association, of the board of directors, and of the unit 620 owners, which minutes shall be retained for a period of not less 621 than 7 years. 622 5. A current roster of all unit owners and their mailing 623 addresses, unit identifications, voting certifications, and, if 624 known, telephone numbers. The association shall also maintain 625 the electronic mailing addresses and the numbers designated by 626 unit owners for receiving notice sent by electronic transmission 627 of those unit owners consenting to receive notice by electronic 628 transmission. The electronic mailing addresses and numbers 629 provided by unit owners to receive notice by electronic 630 transmission shall be removed from association records when 631 consent to receive notice by electronic transmission is revoked. 632 However, the association is not liable for an erroneous 633 disclosure of the electronic mail address or the number for 634 receiving electronic transmission of notices. 635 6. All current insurance policies of the association. 636 7. A current copy of any management agreement, lease, or 637 other contract to which the association is a party or under 638 which the association or the unit owners have an obligation or 639 responsibility. 640 8. Bills of sale or transfer for all property owned by the 641 association. 642 9. Accounting records for the association and separate 643 accounting records for each unit it operates, according to good 644 accounting practices. All accounting records shall be maintained 645 for a period of not less than 7 years. The accounting records 646 shall include, but not be limited to: 647 a. Accurate, itemized, and detailed records of all receipts 648 and expenditures. 649 b. A current account and a monthly, bimonthly, or quarterly 650 statement of the account for each unit designating the name of 651 the unit owner, the due date and amount of each assessment, the 652 amount paid upon the account, and the balance due. 653 c. All audits, reviews, accounting statements, and 654 financial reports of the association. 655 d. All contracts for work to be performed. Bids for work to 656 be performed shall also be considered official records and shall 657 be maintained for a period of 1 year. 658 10. Ballots, sign-in sheets, voting proxies, and all other 659 papers and electronic records relating to voting by unit owners, 660 which shall be maintained for a period of 1 year after the date 661 of the election, vote, or meeting to which the document relates. 662 11. All rental records where the association is acting as 663 agent for the rental of units. 664 12. A copy of the current question and answer sheet as 665 described in s. 719.504. 666 13. All other written records of the association not 667 specifically included in the foregoing which are related to the 668 operation of the association. 669 (b) The official records of the association must be 670 maintained within the state for at least 7 years. The records of 671 the association shall be made available to a unit owner within 672 45 miles of the cooperative property or within the county in 673 which the cooperative property is located within 105working 674 days after receipt of written request by the board or its 675 designee. This paragraph may be complied with by having a copy 676 of the official records of the association available for 677 inspection or copying on the cooperative property or the 678 association may offer the option of making the records available 679 to a unit owner electronically via the Internet or by allowing 680 the records to be viewed in an electronic format on a computer 681 screen and printed upon request. The association is not 682 responsible for the use or misuse of the information provided to 683 an association member or his or her authorized representative 684 pursuant to the compliance requirements of this chapter unless 685 the association has an affirmative duty not to disclose such 686 information pursuant to this chapter. 687 (4) FINANCIAL REPORT.— 688 (c)1. An association with total annual revenues of less 689 than $150,000 shall prepare a report of cash receipts and 690 expenditures. 6912.An association in a community of fewer than 50 units,692regardless of the association’s annual revenues, shall prepare a693report of cash receipts and expenditures in lieu of the694financial statements required by paragraph (b), unless the695declaration or other recorded governing documents provide696otherwise.697 2.3.A report of cash receipts and expenditures must 698 disclose the amount of receipts by accounts and receipt 699 classifications and the amount of expenses by accounts and 700 expense classifications, including the following, as applicable: 701 costs for security, professional, and management fees and 702 expenses; taxes; costs for recreation facilities; expenses for 703 refuse collection and utility services; expenses for lawn care; 704 costs for building maintenance and repair; insurance costs; 705 administration and salary expenses; and reserves, if maintained 706 by the association. 707 Section 6. Subsection (5) of section 719.1055, Florida 708 Statutes, is amended to read: 709 719.1055 Amendment of cooperative documents; alteration and 710 acquisition of property.— 711 (5) The bylaws must include a provision whereby a 712 certificate of compliance from a licensed electrical contractor 713 or electrician may be accepted by the association’s board as 714 evidence of complianceof the cooperative unitswith the 715 applicable fire and life safety code. 716 (a)1. Notwithstanding chapter 633, s. 509.215, s. 717 553.895(1), or any other code, statute, ordinance, 718 administrative rule, or regulation, or any interpretation of the 719 foregoing, an associationa cooperativeor unit owner is not 720 obligated to retrofit the common elements or units of a 721 residential cooperative with a fire sprinkler system or other 722 engineered lifesafety system in a building that is 75 feet or 723 less in height. There is no obligation to retrofit for a 724 building greater than 75 feet in height, calculated from the 725 lowest level of fire department vehicle access to the floor of 726 the highest occupiable storyhas been certified for occupancy by727the applicable governmental entityif the unit owners have voted 728 to forego such retrofitting by the affirmative vote of a 729 majority of all voting interests in the affected cooperative. 730 There is no requirement that owners in cooperatives of 75 feet 731 or less conduct an opt-out vote, and such cooperatives are 732 exempt from fire sprinkler or other engineered lifesafety 733 retrofitting. The preceding sentence is intended to clarify 734 existing law. The local authority having jurisdiction may not 735 require completion of retrofitting with a fire sprinkler system 736 or other engineered lifesafety system before January 1, 2022the737end of 2019. By December 31, 20182016, a cooperative that is 738 not in compliance with the requirements for a fire sprinkler 739 system or other engineered lifesafety system and has not voted 740 to forego retrofitting of such a system must initiate an 741 application for a building permit for the required installation 742 with the local government having jurisdiction demonstrating that 743 the cooperative will become compliant by December 31, 20212019. 744 2. A vote to forego required retrofitting may be obtained 745 by limited proxy or by a ballot personally cast at a duly called 746 membership meeting,orby execution of a written consent by the 747 member, or by electronic voting, and is effective upon recording 748 a certificate executed by an officer or agent of the association 749 attesting to such vote in the public records of the county where 750 the cooperative is located. When the opt-out vote is to be 751 conducted at a meeting, the cooperative shall mail orhand752 deliver to each unit owner written notice at least 14 days 753 before the membership meeting in which the vote to forego 754 retrofitting of the required fire sprinkler system or other 755 engineered lifesafety system is to take place. Within 30 days 756 after the cooperative’s opt-out vote, notice of the results of 757 the opt-out vote must be mailed orhanddelivered to all unit 758 owners. Evidence of compliance with this notice requirement must 759 be made by affidavit executed by the person providing the notice 760 and filed among the official records of the cooperative. Failure 761 to provide timely notice to unit owners does not invalidate an 762 otherwise valid opt-out vote if notice of the results is 763 provided to the ownersAfter notice is provided to each owner, a764copy must be provided by the current owner to a new owner before765closing and by a unit owner to a renter before signing a lease. 766 (b) If there has been a previous vote to forego 767 retrofitting, a vote to require retrofitting may be obtained at 768 a special meeting of the unit owners called by a petition of 769 least 10 percent of the voting interests or by a majority of the 770 board of directors.Such vote may only be called once every 3771years.Notice must be provided as required for any regularly 772 called meeting of the unit owners, and the notice must state the 773 purpose of the meeting.Electronic transmission may not be used774to provide notice of a meeting called in whole or in part for775this purpose.776 (c) As part of the information collected annually from 777 cooperatives, the division shall require associations to report 778 the membership vote and recording of a certificate under this 779 subsection and, if retrofitting has been undertaken, the per 780 unit cost of such work. The division shall annually report to 781 the Division of State Fire Marshal of the Department of 782 Financial Services the number of cooperatives that have elected 783 to forego retrofitting. Compliance with this administrative 784 reporting requirement does not affect the validity of an opt-out 785 vote. 786 Section 7. Paragraphs (a) and (c) of subsection (1) of 787 section 719.106, Florida Statutes, are amended, and paragraph 788 (m) is added to that subsection, to read: 789 719.106 Bylaws; cooperative ownership.— 790 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative 791 documents shall provide for the following, and if they do not, 792 they shall be deemed to include the following: 793 (a) Administration.— 794 1. The form of administration of the association shall be 795 described, indicating the titles of the officers and board of 796 administration and specifying the powers, duties, manner of 797 selection and removal, and compensation, if any, of officers and 798 board members. In the absence of such a provision, the board of 799 administration shall be composed of five members, except in the 800 case of cooperatives having five or fewer units, in which case 801 in not-for-profit corporations, the board shall consist of not 802 fewer than three members. In a residential cooperative 803 association of more than 10 units, coowners of a unit may not 804 serve as members of the board of directors at the same time 805 unless the coowners own more than one unit or unless there are 806 not enough eligible candidates to fill the vacancies on the 807 board at the time of the vacancy. In the absence of provisions 808 to the contrary, the board of administration shall have a 809 president, a secretary, and a treasurer, who shall perform the 810 duties of those offices customarily performed by officers of 811 corporations. Unless prohibited in the bylaws, the board of 812 administration may appoint other officers and grant them those 813 duties it deems appropriate. Unless otherwise provided in the 814 bylaws, the officers shall serve without compensation and at the 815 pleasure of the board. Unless otherwise provided in the bylaws, 816 the members of the board shall serve without compensation. 817 2. A person who has been suspended or removed by the 818 division under this chapter, or who is delinquent in the payment 819 of any monetary obligation due to the association, is not 820 eligible to be a candidate for board membership and may not be 821 listed on the ballot. A director or officer charged by 822 information or indictment with a felony theft or embezzlement 823 offense involving the association’s funds or property is 824 suspended from office. The board shall fill the vacancy 825 according to general law until the end of the period of the 826 suspension or the end of the director’s term of office, 827 whichever occurs first. However, if the charges are resolved 828 without a finding of guilt or without acceptance of a plea of 829 guilty or nolo contendere, the director or officer shall be 830 reinstated for any remainder of his or her term of office. A 831 member who has such criminal charges pending may not be 832 appointed or elected to a position as a director or officer. A 833 person who has been convicted of any felony in this state or in 834 any United States District Court, or who has been convicted of 835 any offense in another jurisdiction which would be considered a 836 felony if committed in this state, is not eligible for board 837 membership unless such felon’s civil rights have been restored 838 for at least 5 years as of the date such person seeks election 839 to the board. The validity of an action by the board is not 840 affected if it is later determined that a board member is 841 ineligible for board membership due to having been convicted of 842 a felony. 843 3. When a unit owner files a written inquiry by certified 844 mail with the board of administration, the board shall respond 845 in writing to the unit owner within 30 days of receipt of the 846 inquiry. The board’s response shall either give a substantive 847 response to the inquirer, notify the inquirer that a legal 848 opinion has been requested, or notify the inquirer that advice 849 has been requested from the division. If the board requests 850 advice from the division, the board shall, within 10 days of its 851 receipt of the advice, provide in writing a substantive response 852 to the inquirer. If a legal opinion is requested, the board 853 shall, within 60 days after the receipt of the inquiry, provide 854 in writing a substantive response to the inquirer. The failure 855 to provide a substantive response to the inquirer as provided 856 herein precludes the board from recovering attorney’s fees and 857 costs in any subsequent litigation, administrative proceeding, 858 or arbitration arising out of the inquiry. The association may, 859 through its board of administration, adopt reasonable rules and 860 regulations regarding the frequency and manner of responding to 861 the unit owners’ inquiries, one of which may be that the 862 association is obligated to respond to only one written inquiry 863 per unit in any given 30-day period. In such case, any 864 additional inquiry or inquiries must be responded to in the 865 subsequent 30-day period, or periods, as applicable. 866 (c) Board of administration meetings.—Members of the board 867 of administration may use e-mail as a means of communication but 868 may not cast a vote on an association matter via e-mail. 869 Meetings of the board of administration at which a quorum of the 870 members is present shall be open to all unit owners. Any unit 871 owner may tape record or videotape meetings of the board of 872 administration. The right to attend such meetings includes the 873 right to speak at such meetings with reference to all designated 874 agenda items. The division shall adopt reasonable rules 875 governing the tape recording and videotaping of the meeting. The 876 association may adopt reasonable written rules governing the 877 frequency, duration, and manner of unit owner statements. 878 Adequate notice of all meetings shall be posted in a conspicuous 879 place upon the cooperative property at least 48 continuous hours 880 preceding the meeting, except in an emergency. Any item not 881 included on the notice may be taken up on an emergency basis by 882 at least a majority plus one of the members of the board. Such 883 emergency action shall be noticed and ratified at the next 884 regular meeting of the board. Notice of any meeting in which 885 regular or special assessments against unit owners are to be 886 considered must specifically state that assessments will be 887 considered and provide the estimated amount and description of 888 the purposes for such assessments.However,Written notice of 889 any meeting at which nonemergency special assessments, or at 890 which amendment to rules regarding unit use, will be considered 891 shall be mailed, delivered, or electronically transmitted to the 892 unit owners and posted conspicuously on the cooperative property 893 not less than 14 days before the meeting. Evidence of compliance 894 with this 14-day notice shall be made by an affidavit executed 895 by the person providing the notice and filed among the official 896 records of the association. Upon notice to the unit owners, the 897 board shall by duly adopted rule designate a specific location 898 on the cooperative property upon which all notices of board 899 meetings shall be posted. In lieu of or in addition to the 900 physical posting of notice of any meeting of the board of 901 administration on the cooperative property, the association may, 902 by reasonable rule, adopt a procedure for conspicuously posting 903 and repeatedly broadcasting the notice and the agenda on a 904 closed-circuit cable television system serving the cooperative 905 association. However, if broadcast notice is used in lieu of a 906 notice posted physically on the cooperative property, the notice 907 and agenda must be broadcast at least four times every broadcast 908 hour of each day that a posted notice is otherwise required 909 under this section. When broadcast notice is provided, the 910 notice and agenda must be broadcast in a manner and for a 911 sufficient continuous length of time so as to allow an average 912 reader to observe the notice and read and comprehend the entire 913 content of the notice and the agenda. In addition to any of the 914 authorized means of providing notice of a meeting of the board, 915 the association may, by rule, adopt a procedure for 916 conspicuously posting the meeting notice and the agenda on a 917 website serving the cooperative association for at least the 918 minimum period of time for which a notice of a meeting is also 919 required to be physically posted on the cooperative property. 920 Any rule adopted shall, in addition to other matters, include a 921 requirement that the association send an electronic notice 922 providing a hypertext link to the website where the notice is 923 postedNotice of any meeting in which regular assessments924against unit owners are to be considered for any reason shall925specifically contain a statement that assessments will be926considered and the nature of any such assessments. Meetings of a 927 committee to take final action on behalf of the board or to make 928 recommendations to the board regarding the association budget 929 are subject to the provisions of this paragraph. Meetings of a 930 committee that does not take final action on behalf of the board 931 or make recommendations to the board regarding the association 932 budget are subject to the provisions of this section, unless 933 those meetings are exempted from this section by the bylaws of 934 the association. Notwithstanding any other law to the contrary, 935 the requirement that board meetings and committee meetings be 936 open to the unit owners does not apply to board or committee 937 meetings held for the purpose of discussing personnel matters or 938 meetings between the board or a committee and the association’s 939 attorney, with respect to proposed or pending litigation, if the 940 meeting is held for the purpose of seeking or rendering legal 941 advice. 942 (m) Director or officer delinquencies.—A director or 943 officer more than 90 days delinquent in the payment of any 944 monetary obligation due the association shall be deemed to have 945 abandoned the office, creating a vacancy in the office to be 946 filled according to law. 947 Section 8. Paragraph (b) of subsection (1) of section 948 719.107, Florida Statutes, is amended to read: 949 719.107 Common expenses; assessment.— 950 (1) 951 (b) If so provided in the bylaws, the cost of a master 952 antenna television system or duly franchised cable television 953 service, communications services as defined in chapter 202, 954 information services, or Internet services obtained pursuant to 955 a bulk contract shall be deemed a common expense, and if not 956 obtained pursuant to a bulk contract, such cost shall be 957 considered common expense if it is designated as such in a 958 written contract between the board of administration and the 959 company providing the master television antenna system or the 960 cable television service, communications services as defined in 961 chapter 202, information services, or Internet services. The 962 contract shall be for a term of not less than 2 years. 963 1. Any contract made by the board after April 2, 1992, for 964 a community antenna system or duly franchised cable television 965 service, communications services as defined in chapter 202, 966 information services, or Internet services may be canceled by a 967 majority of the voting interests present at the next regular or 968 special meeting of the association. Any member may make a motion 969 to cancel the contract, but if no motion is made or if such 970 motion fails to obtain the required majority at the next regular 971 or special meeting, whichever is sooner, following the making of 972 the contract, then such contract shall be deemed ratified for 973 the term therein expressed. 974 2. Any such contract shall provide, and shall be deemed to 975 provide if not expressly set forth, that any hearing impaired or 976 legally blind unit owner who does not occupy the unit with a 977 nonhearing impaired or sighted person may discontinue the 978 service without incurring disconnect fees, penalties, or 979 subsequent service charges, and as to such units, the owners 980 shall not be required to pay any common expenses charge related 981 to such service. If less than all members of an association 982 share the expenses of cable television, the expense shall be 983 shared equally by all participating unit owners. The association 984 may use the provisions of s. 719.108 to enforce payment of the 985 shares of such costs by the unit owners receiving cable 986 television. 987 Section 9. Paragraphs (a) and (c) of subsection (2) and 988 subsection (7) of section 720.303, Florida Statutes, are 989 amended, and paragraph (i) is added to subsection (6) of that 990 section, to read: 991 720.303 Association powers and duties; meetings of board; 992 official records; budgets; budget meetings; financial reporting; 993 association funds; recalls.— 994 (2) BOARD MEETINGS.— 995 (a) Members of the board of administration may use e-mail 996 as a means of communication, but may not cast a vote on an 997 association matter via e-mail. A meeting of the board of 998 directors of an association occurs whenever a quorum of the 999 board gathers to conduct association business. Meetings of the 1000 board must be open to all members, except for meetings between 1001 the board and its attorney with respect to proposed or pending 1002 litigation where the contents of the discussion would otherwise 1003 be governed by the attorney-client privilege. A meeting of the 1004 board must be held at a location that is accessible to a 1005 physically handicapped person if requested by a physically 1006 handicapped person who has a right to attend the meeting. The 1007 provisions of this subsection shall also apply to the meetings 1008 of any committee or other similar body when a final decision 1009 will be made regarding the expenditure of association funds and 1010 to meetings of any body vested with the power to approve or 1011 disapprove architectural decisions with respect to a specific 1012 parcel of residential property owned by a member of the 1013 community. 1014 (c) The bylaws shall provide the following for giving 1015 notice to parcel owners and members of all board meetings and, 1016 if they do not do so, shall be deemed to includeprovidethe 1017 following: 1018 1. Notices of all board meetings must be posted in a 1019 conspicuous place in the community at least 48 hours in advance 1020 of a meeting, except in an emergency. In the alternative, if 1021 notice is not posted in a conspicuous place in the community, 1022 notice of each board meeting must be mailed or delivered to each 1023 member at least 7 days before the meeting, except in an 1024 emergency. Notwithstanding this general notice requirement, for 1025 communities with more than 100 members, the association bylaws 1026 may provide for a reasonable alternative to posting or mailing 1027 of notice for each board meeting, including publication of 1028 notice, provision of a schedule of board meetings, or the 1029 conspicuous posting and repeated broadcasting of the notice on a 1030 closed-circuit cable television system serving the homeowners’ 1031 association. However, if broadcast notice is used in lieu of a 1032 notice posted physically in the community, the notice must be 1033 broadcast at least four times every broadcast hour of each day 1034 that a posted notice is otherwise required. When broadcast 1035 notice is provided, the notice and agenda must be broadcast in a 1036 manner and for a sufficient continuous length of time so as to 1037 allow an average reader to observe the notice and read and 1038 comprehend the entire content of the notice and the agenda. The 1039 association may provide notice by electronic transmission in a 1040 manner authorized by law for meetings of the board of directors, 1041 committee meetings requiring notice under this section, and 1042 annual and special meetings of the members to any member who has 1043 provided a facsimile number or e-mail address to the association 1044 to be used for such purposes; however, a member must consent in 1045 writing to receiving notice by electronic transmission. 1046 2. An assessment may not be levied at a board meeting 1047 unless the notice of the meeting includes a statement that 1048 assessments will be considered and the nature of the 1049 assessments. Written notice of any meeting at which special 1050 assessments will be considered or at which amendments to rules 1051 regarding parcel use will be considered must be mailed, 1052 delivered, or electronically transmitted to the members and 1053 parcel owners and posted conspicuously on the property or 1054 broadcast on closed-circuit cable television not less than 14 1055 days before the meeting. 1056 3. Directors may not vote by proxy or by secret ballot at 1057 board meetings, except that secret ballots may be used in the 1058 election of officers. This subsection also applies to the 1059 meetings of any committee or other similar body, when a final 1060 decision will be made regarding the expenditure of association 1061 funds, and to any body vested with the power to approve or 1062 disapprove architectural decisions with respect to a specific 1063 parcel of residential property owned by a member of the 1064 community. 1065 (6) BUDGETS; BUDGET MEETINGS.— 1066 (i)1. If a board adopts in any fiscal year an annual budget 1067 that requires assessments against parcel owners which exceed 115 1068 percent of assessments for the preceding fiscal year, the board 1069 shall conduct a special meeting of the parcel owners to consider 1070 a substitute budget if the board receives, within 21 days after 1071 adoption of the annual budget, a written request for a special 1072 meeting from at least 10 percent of all voting interests. The 1073 special meeting shall be conducted within 60 days after adoption 1074 of the annual budget. At least 14 days before such special 1075 meeting, the board shall hand deliver to each parcel owner, or 1076 mail to each parcel owner at the address last furnished to the 1077 association, a notice of the meeting. An officer or manager of 1078 the association, or other person providing notice of such 1079 meeting, shall execute an affidavit evidencing compliance with 1080 this notice requirement, and such affidavit shall be filed among 1081 the official records of the association. Parcel owners may 1082 consider and adopt a substitute budget at the special meeting. A 1083 substitute budget is adopted if approved by a majority of all 1084 voting interests unless the bylaws require adoption by a greater 1085 percentage of voting interests. If there is not a quorum at the 1086 special meeting or a substitute budget is not adopted, the 1087 annual budget previously adopted by the board shall take effect 1088 as scheduled. 1089 2. Any determination of whether assessments exceed 115 1090 percent of assessments for the prior fiscal year shall exclude 1091 any authorized provision for reasonable reserves for repair or 1092 replacement of the association property, anticipated expenses of 1093 the association which the board does not expect to be incurred 1094 on a regular or annual basis, or assessments for betterments to 1095 the condominium property. 1096 3. If the developer controls the board, assessments may not 1097 exceed 115 percent of assessments for the prior fiscal year 1098 unless approved by a majority of all voting interests. 1099 (7) FINANCIAL REPORTING.—Within 90 days after the end of 1100 the fiscal year, or annually on the date provided in the bylaws, 1101 the association shall prepare and complete, or contract with a 1102 third party for the preparation and completion of, a financial 1103 report for the preceding fiscal year. Within 21 days after the 1104 final financial report is completed by the association or 1105 received from the third party, but not later than 120 days after 1106 the end of the fiscal year or other date as provided in the 1107 bylaws, the association shall, within the time limits set forth 1108 in subsection (5), provide each member with a copy of the annual 1109 financial report or a written notice that a copy of the 1110 financial report is available upon request at no charge to the 1111 member. Financial reports shall be prepared as follows: 1112 (a) An association that meets the criteria of this 1113 paragraph shall prepare or cause to be prepared a complete set 1114 of financial statements in accordance with generally accepted 1115 accounting principles as adopted by the Board of Accountancy. 1116 The financial statements shall be based upon the association’s 1117 total annual revenues, as follows: 1118 1. An association with total annual revenues of $150,000 or 1119 more, but less than $300,000, shall prepare compiled financial 1120 statements. 1121 2. An association with total annual revenues of at least 1122 $300,000, but less than $500,000, shall prepare reviewed 1123 financial statements. 1124 3. An association with total annual revenues of $500,000 or 1125 more shall prepare audited financial statements. 1126 (b)1. An association with total annual revenues of less 1127 than $150,000 shall prepare a report of cash receipts and 1128 expenditures. 11292.An association in a community of fewer than 50 parcels,1130regardless of the association’s annual revenues, may prepare a1131report of cash receipts and expenditures in lieu of financial1132statements required by paragraph (a) unless the governing1133documents provide otherwise.1134 2.3.A report of cash receipts and disbursement must 1135 disclose the amount of receipts by accounts and receipt 1136 classifications and the amount of expenses by accounts and 1137 expense classifications, including, but not limited to, the 1138 following, as applicable: costs for security, professional, and 1139 management fees and expenses; taxes; costs for recreation 1140 facilities; expenses for refuse collection and utility services; 1141 expenses for lawn care; costs for building maintenance and 1142 repair; insurance costs; administration and salary expenses; and 1143 reserves if maintained by the association. 1144 (c) If 20 percent of the parcel owners petition the board 1145 for a level of financial reporting higher than that required by 1146 this section, the association shall duly notice and hold a 1147 meeting of members within 30 days of receipt of the petition for 1148 the purpose of voting on raising the level of reporting for that 1149 fiscal year. Upon approval of a majority of the total voting 1150 interests of the parcel owners, the association shall prepare or 1151 cause to be prepared, shall amend the budget or adopt a special 1152 assessment to pay for the financial report regardless of any 1153 provision to the contrary in the governing documents, and shall 1154 provide within 90 days of the meeting or the end of the fiscal 1155 year, whichever occurs later: 1156 1. Compiled, reviewed, or audited financial statements, if 1157 the association is otherwise required to prepare a report of 1158 cash receipts and expenditures; 1159 2. Reviewed or audited financial statements, if the 1160 association is otherwise required to prepare compiled financial 1161 statements; or 1162 3. Audited financial statements if the association is 1163 otherwise required to prepare reviewed financial statements. 1164 (d) If approved by a majority of the voting interests 1165 present at a properly called meeting of the association, an 1166 association may prepare or cause to be prepared: 1167 1. A report of cash receipts and expenditures in lieu of a 1168 compiled, reviewed, or audited financial statement; 1169 2. A report of cash receipts and expenditures or a compiled 1170 financial statement in lieu of a reviewed or audited financial 1171 statement; or 1172 3. A report of cash receipts and expenditures, a compiled 1173 financial statement, or a reviewed financial statement in lieu 1174 of an audited financial statement. 1175 Section 10. Paragraph (a) of subsection (9) of section 1176 720.306, Florida Statutes, is amended to read: 1177 720.306 Meetings of members; voting and election 1178 procedures; amendments.— 1179 (9) ELECTIONS AND BOARD VACANCIES.— 1180 (a) Elections of directors must be conducted in accordance 1181 with the procedures set forth in the governing documents of the 1182 association. Except as provided in paragraph (b), all members of 1183 the association are eligible to serve on the board of directors, 1184 and a member may nominate himself or herself as a candidate for 1185 the board at a meeting where the election is to be held; 1186 provided, however, that if the election process allows 1187 candidates to be nominated in advance of the meeting, the 1188 association is not required to allow nominations at the meeting. 1189 An election is not required unless more candidates are nominated 1190 than vacancies exist. If an election is not required because 1191 there are either an equal number or fewer qualified candidates 1192 than vacancies exist, and if nominations from the floor are not 1193 required pursuant to this section or the bylaws, write-in 1194 nominations are not permitted, and such candidates shall 1195 commence service on the board of directors, regardless of 1196 whether a quorum is attained at the annual meeting. Except as 1197 otherwise provided in the governing documents, boards of 1198 directors must be elected by a plurality of the votes cast by 1199 eligible voters. Any challenge to the election process must be 1200 commenced within 60 days after the election results are 1201 announced. 1202 Section 11. Paragraph (b) of subsection (3) of section 1203 720.3085, Florida Statutes, is amended to read: 1204 720.3085 Payment for assessments; lien claims.— 1205 (3) Assessments and installments on assessments that are 1206 not paid when due bear interest from the due date until paid at 1207 the rate provided in the declaration of covenants or the bylaws 1208 of the association, which rate may not exceed the rate allowed 1209 by law. If no rate is provided in the declaration or bylaws, 1210 interest accrues at the rate of 18 percent per year. 1211 (b) Any payment received by an association and accepted 1212 shall be applied first to any interest accrued, then to any 1213 administrative late fee, then to any costs and reasonable 1214 attorney fees incurred in collection, and then to the delinquent 1215 assessment. This paragraph applies notwithstanding any 1216 restrictive endorsement, designation, or instruction placed on 1217 or accompanying a payment. A late fee is not subject to the 1218 provisions of chapter 687 and is not a fine. The foregoing is 1219 applicable notwithstanding s. 673.3111, any purported accord and 1220 satisfaction, or any restrictive endorsement, designation, or 1221 instruction placed on or accompanying a payment. The preceding 1222 sentence is intended to clarify existing law. 1223 Section 12. This act shall take effect July 1, 2017.