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 CS for SB 744 By the Committees on Judiciary; and Regulated Industries; and Senator Passidomo 590-04109-17 2017744c2 1 A bill to be entitled 2 An act relating to community associations; creating s. 3 633.2225, F.S.; requiring certain condominium or 4 cooperative associations to post certain signs or 5 symbols on buildings; requiring the State Fire Marshal 6 to ensure that the dimensions and placement of the 7 signs or symbols do not diminish the aesthetic value 8 of the buildings on which they are placed and to adopt 9 rules governing such signs or symbols; providing for 10 enforcement; providing penalties; amending s. 718.111, 11 F.S.; revising reporting requirements; amending s. 12 718.112, F.S.; revising provisions relating to 13 required condominium and cooperative association 14 bylaws; authorizing an association to adopt rules for 15 posting certain notices on a website; revising 16 provisions relating to evidence of condominium and 17 cooperative association compliance with the fire and 18 life safety code; revising unit and common elements 19 required to be retrofitted; revising provisions 20 relating to an association vote to forego 21 retrofitting; providing applicability; amending s. 22 718.113, F.S.; revising voting requirements relating 23 to alterations and additions to certain common 24 elements or association property; amending s. 718.117, 25 F.S.; providing legislative findings; revising voting 26 requirements for the rejection of a plan of 27 termination; increasing the amount of time before a 28 subsequent plan of termination may be considered under 29 certain conditions; revising applicability; revising 30 the requirements to qualify for payment as a homestead 31 owner if the owner has rejected a plan of termination; 32 revising and providing notice requirements; providing 33 applicability; amending s. 719.104, F.S.; revising 34 recordkeeping and reporting requirements; amending s. 35 719.1055, F.S.; revising provisions relating to 36 required cooperative association bylaws; revising 37 provisions relating to evidence of condominium and 38 cooperative association compliance with the fire and 39 life safety code; revising unit and common elements 40 required to be retrofitted; revising provisions 41 relating to an association vote to forego 42 retrofitting; providing applicability; amending s. 43 719.106, F.S.; revising requirements to serve as a 44 board member; prohibiting a board member from voting 45 via e-mail; authorizing an association to adopt rules 46 for posting certain notices on a website; requiring 47 that directors who are delinquent in certain payments 48 owed in excess of certain periods of time be deemed to 49 have abandoned their offices; amending s. 719.107, 50 F.S.; specifying certain services which are obtained 51 pursuant to a bulk contract to be deemed a common 52 expense; amending s. 720.303, F.S.; prohibiting a 53 board member from voting via e-mail; revising certain 54 notice requirements relating to board meetings; 55 providing an effective date. 56 57 Be It Enacted by the Legislature of the State of Florida: 58 59 Section 1. Section 633.2225, Florida Statutes, is created 60 to read: 61 633.2225 Condominium and cooperative buildings without 62 sprinkler systems; notice requirements; enforcement.— 63 (1) The board of a condominium or cooperative association 64 that operates a building of three stories or more that has not 65 installed a sprinkler system in the common areas of the building 66 shall mark the building with a sign or symbol approved by the 67 State Fire Marshal in a manner sufficient to warn persons 68 conducting fire control and other emergency operations of the 69 lack of a sprinkler system in the common areas. 70 (2) The State Fire Marshal shall ensure that the dimensions 71 and placement of the sign or symbol do not diminish the 72 aesthetic value of the building and shall adopt rules necessary 73 to implement this section. Among other things, the rules must 74 address: 75 (a) The dimensions and color of such sign or symbol. 76 (b) The time within which the condominium or cooperative 77 buildings without sprinkler systems shall be marked as required 78 by this section. 79 (c) The location on each condominium or cooperative 80 building without a sprinkler system where such sign or symbol 81 must be posted. 82 (3) The State Fire Marshal, and local fire officials in 83 accordance with s. 633.118, shall enforce this section. An owner 84 who fails to comply with the requirements of this section is 85 subject to penalties as provided in s. 633.228. 86 Section 2. Subsections (12) and (13) of section 718.111, 87 Florida Statutes, are amended to read: 88 718.111 The association.— 89 (12) OFFICIAL RECORDS.— 90 (a) From the inception of the association, the association 91 shall maintain each of the following items, if applicable, which 92 constitutes the official records of the association: 93 1. A copy of the plans, permits, warranties, and other 94 items provided by the developer pursuant to s. 718.301(4). 95 2. A photocopy of the recorded declaration of condominium 96 of each condominium operated by the association and each 97 amendment to each declaration. 98 3. A photocopy of the recorded bylaws of the association 99 and each amendment to the bylaws. 100 4. A certified copy of the articles of incorporation of the 101 association, or other documents creating the association, and 102 each amendment thereto. 103 5. A copy of the current rules of the association. 104 6. A book or books that contain the minutes of all meetings 105 of the association, the board of administration, and the unit 106 owners, which minutes must be retained for at least 7 years. 107 7. A current roster of all unit owners and their mailing 108 addresses, unit identifications, and voting certifications, and, 109 if known, telephone numbers. The association shall also maintain 110 the electronic mailing addresses and facsimile numbers of unit 111 owners consenting to receive notice by electronic transmission. 112 The electronic mailing addresses and facsimile numbers are not 113 accessible to unit owners if consent to receive notice by 114 electronic transmission is not provided in accordance with 115 subparagraph (c)5. However, the association is not liable for an 116 inadvertent disclosure of the electronic mail address or 117 facsimile number for receiving electronic transmission of 118 notices. 119 8. All current insurance policies of the association and 120 condominiums operated by the association. 121 9. A current copy of any management agreement, lease, or 122 other contract to which the association is a party or under 123 which the association or the unit owners have an obligation or 124 responsibility. 125 10. Bills of sale or transfer for all property owned by the 126 association. 127 11. Accounting records for the association and separate 128 accounting records for each condominium that the association 129 operates. All accounting records must be maintained for at least 130 7 years. Any person who knowingly or intentionally defaces or 131 destroys such records, or who knowingly or intentionally fails 132 to create or maintain such records, with the intent of causing 133 harm to the association or one or more of its members, is 134 personally subject to a civil penalty pursuant to s. 135 718.501(1)(d). The accounting records must include, but are not 136 limited to: 137 a. Accurate, itemized, and detailed records of all receipts 138 and expenditures. 139 b. A current account and a monthly, bimonthly, or quarterly 140 statement of the account for each unit designating the name of 141 the unit owner, the due date and amount of each assessment, the 142 amount paid on the account, and the balance due. 143 c. All audits, reviews, accounting statements, and 144 financial reports of the association or condominium. 145 d. All contracts for work to be performed. Bids for work to 146 be performed are also considered official records and must be 147 maintained by the association for 1 year. 148 12. Ballots, sign-in sheets, voting proxies, and all other 149 papers and electronic records relating to voting by unit owners, 150 which must be maintained for 1 year from the date of the 151 election, vote, or meeting to which the document relates, 152 notwithstanding paragraph (b). 153 13. All rental records if the association is acting as 154 agent for the rental of condominium units. 155 14. A copy of the current question and answer sheet as 156 described in s. 718.504. 157 15. All other written records of the association not 158 specifically included in the foregoing which are related to the 159 operation of the association. 160 16. A copy of the inspection report as described in s. 161 718.301(4)(p). 162 (b) The official records of the association must be 163 maintained within the state for at least 7 years. The records of 164 the association shall be made available to a unit owner within 165 45 miles of the condominium property or within the county in 166 which the condominium property is located within 105working 167 days after receipt of a written request by the board or its 168 designee. However, such distance requirement does not apply to 169 an association governing a timeshare condominium. This paragraph 170 may be complied with by having a copy of the official records of 171 the association available for inspection or copying on the 172 condominium property or association property, or the association 173 may offer the option of making the records available to a unit 174 owner electronically via the Internet or by allowing the records 175 to be viewed in electronic format on a computer screen and 176 printed upon request. The association is not responsible for the 177 use or misuse of the information provided to an association 178 member or his or her authorized representative pursuant to the 179 compliance requirements of this chapter unless the association 180 has an affirmative duty not to disclose such information 181 pursuant to this chapter. 182 (c) The official records of the association are open to 183 inspection by any association member or the authorized 184 representative of such member at all reasonable times. The right 185 to inspect the records includes the right to make or obtain 186 copies, at the reasonable expense, if any, of the member. The 187 association may adopt reasonable rules regarding the frequency, 188 time, location, notice, and manner of record inspections and 189 copying. The failure of an association to provide the records 190 within 10 working days after receipt of a written request 191 creates a rebuttable presumption that the association willfully 192 failed to comply with this paragraph. A unit owner who is denied 193 access to official records is entitled to the actual damages or 194 minimum damages for the association’s willful failure to comply. 195 Minimum damages are $50 per calendar day for up to 10 days, 196 beginning on the 11th working day after receipt of the written 197 request. The failure to permit inspection entitles any person 198 prevailing in an enforcement action to recover reasonable 199 attorney fees from the person in control of the records who, 200 directly or indirectly, knowingly denied access to the records. 201 Any person who knowingly or intentionally defaces or destroys 202 accounting records that are required by this chapter to be 203 maintained during the period for which such records are required 204 to be maintained, or who knowingly or intentionally fails to 205 create or maintain accounting records that are required to be 206 created or maintained, with the intent of causing harm to the 207 association or one or more of its members, is personally subject 208 to a civil penalty pursuant to s. 718.501(1)(d). The association 209 shall maintain an adequate number of copies of the declaration, 210 articles of incorporation, bylaws, and rules, and all amendments 211 to each of the foregoing, as well as the question and answer 212 sheet as described in s. 718.504 and year-end financial 213 information required under this section, on the condominium 214 property to ensure their availability to unit owners and 215 prospective purchasers, and may charge its actual costs for 216 preparing and furnishing these documents to those requesting the 217 documents. An association shall allow a member or his or her 218 authorized representative to use a portable device, including a 219 smartphone, tablet, portable scanner, or any other technology 220 capable of scanning or taking photographs, to make an electronic 221 copy of the official records in lieu of the association’s 222 providing the member or his or her authorized representative 223 with a copy of such records. The association may not charge a 224 member or his or her authorized representative for the use of a 225 portable device. Notwithstanding this paragraph, the following 226 records are not accessible to unit owners: 227 1. Any record protected by the lawyer-client privilege as 228 described in s. 90.502 and any record protected by the work 229 product privilege, including a record prepared by an association 230 attorney or prepared at the attorney’s express direction, which 231 reflects a mental impression, conclusion, litigation strategy, 232 or legal theory of the attorney or the association, and which 233 was prepared exclusively for civil or criminal litigation or for 234 adversarial administrative proceedings, or which was prepared in 235 anticipation of such litigation or proceedings until the 236 conclusion of the litigation or proceedings. 237 2. Information obtained by an association in connection 238 with the approval of the lease, sale, or other transfer of a 239 unit. 240 3. Personnel records of association or management company 241 employees, including, but not limited to, disciplinary, payroll, 242 health, and insurance records. For purposes of this 243 subparagraph, the term “personnel records” does not include 244 written employment agreements with an association employee or 245 management company, or budgetary or financial records that 246 indicate the compensation paid to an association employee. 247 4. Medical records of unit owners. 248 5. Social security numbers, driver license numbers, credit 249 card numbers, e-mail addresses, telephone numbers, facsimile 250 numbers, emergency contact information, addresses of a unit 251 owner other than as provided to fulfill the association’s notice 252 requirements, and other personal identifying information of any 253 person, excluding the person’s name, unit designation, mailing 254 address, property address, and any address, e-mail address, or 255 facsimile number provided to the association to fulfill the 256 association’s notice requirements. Notwithstanding the 257 restrictions in this subparagraph, an association may print and 258 distribute to parcel owners a directory containing the name, 259 parcel address, and all telephone numbers of each parcel owner. 260 However, an owner may exclude his or her telephone numbers from 261 the directory by so requesting in writing to the association. An 262 owner may consent in writing to the disclosure of other contact 263 information described in this subparagraph. The association is 264 not liable for the inadvertent disclosure of information that is 265 protected under this subparagraph if the information is included 266 in an official record of the association and is voluntarily 267 provided by an owner and not requested by the association. 268 6. Electronic security measures that are used by the 269 association to safeguard data, including passwords. 270 7. The software and operating system used by the 271 association which allow the manipulation of data, even if the 272 owner owns a copy of the same software used by the association. 273 The data is part of the official records of the association. 274 (d) The association shall prepare a question and answer 275 sheet as described in s. 718.504, and shall update it annually. 276 (e)1. The association or its authorized agent is not 277 required to provide a prospective purchaser or lienholder with 278 information about the condominium or the association other than 279 information or documents required by this chapter to be made 280 available or disclosed. The association or its authorized agent 281 may charge a reasonable fee to the prospective purchaser, 282 lienholder, or the current unit owner for providing good faith 283 responses to requests for information by or on behalf of a 284 prospective purchaser or lienholder, other than that required by 285 law, if the fee does not exceed $150 plus the reasonable cost of 286 photocopying and any attorney’s fees incurred by the association 287 in connection with the response. 288 2. An association and its authorized agent are not liable 289 for providing such information in good faith pursuant to a 290 written request if the person providing the information includes 291 a written statement in substantially the following form: “The 292 responses herein are made in good faith and to the best of my 293 ability as to their accuracy.” 294 (f) An outgoing board or committee member must relinquish 295 all official records and property of the association in his or 296 her possession or under his or her control to the incoming board 297 within 5 days after the election. The division shall impose a 298 civil penalty as set forth in s. 718.501(1)(d)6. against an 299 outgoing board or committee member who willfully and knowingly 300 fails to relinquish such records and property. 301 (13) FINANCIAL REPORTING.—Within 90 days after the end of 302 the fiscal year, or annually on a date provided in the bylaws, 303 the association shall prepare and complete, or contract for the 304 preparation and completion of, a financial report for the 305 preceding fiscal year. Within 21 days after the final financial 306 report is completed by the association or received from the 307 third party, but not later than 120 days after the end of the 308 fiscal year or other date as provided in the bylaws, the 309 association shall mail to each unit owner at the address last 310 furnished to the association by the unit owner, or hand deliver 311 to each unit owner, a copy of the financial report or a notice 312 that a copy of the financial report will be mailed or hand 313 delivered to the unit owner, without charge, upon receipt of a 314 written request from the unit owner. The division shall adopt 315 rules setting forth uniform accounting principles and standards 316 to be used by all associations and addressing the financial 317 reporting requirements for multicondominium associations. The 318 rules must include, but not be limited to, standards for 319 presenting a summary of association reserves, including a good 320 faith estimate disclosing the annual amount of reserve funds 321 that would be necessary for the association to fully fund 322 reserves for each reserve item based on the straight-line 323 accounting method. This disclosure is not applicable to reserves 324 funded via the pooling method. In adopting such rules, the 325 division shall consider the number of members and annual 326 revenues of an association. Financial reports shall be prepared 327 as follows: 328 (a) An association that meets the criteria of this 329 paragraph shall prepare a complete set of financial statements 330 in accordance with generally accepted accounting principles. The 331 financial statements must be based upon the association’s total 332 annual revenues, as follows: 333 1. An association with total annual revenues of $150,000 or 334 more, but less than $300,000, shall prepare compiled financial 335 statements. 336 2. An association with total annual revenues of at least 337 $300,000, but less than $500,000, shall prepare reviewed 338 financial statements. 339 3. An association with total annual revenues of $500,000 or 340 more shall prepare audited financial statements. 341 (b)1. An association with total annual revenues of less 342 than $150,000 shall prepare a report of cash receipts and 343 expenditures. 3442.An association that operates fewer than 50 units,345regardless of the association’s annual revenues, shall prepare a346report of cash receipts and expenditures in lieu of financial347statements required by paragraph (a).348 2.3.A report of cash receipts and disbursements must 349 disclose the amount of receipts by accounts and receipt 350 classifications and the amount of expenses by accounts and 351 expense classifications, including, but not limited to, the 352 following, as applicable: costs for security, professional and 353 management fees and expenses, taxes, costs for recreation 354 facilities, expenses for refuse collection and utility services, 355 expenses for lawn care, costs for building maintenance and 356 repair, insurance costs, administration and salary expenses, and 357 reserves accumulated and expended for capital expenditures, 358 deferred maintenance, and any other category for which the 359 association maintains reserves. 360 (c) An association may prepare, without a meeting of or 361 approval by the unit owners: 362 1. Compiled, reviewed, or audited financial statements, if 363 the association is required to prepare a report of cash receipts 364 and expenditures; 365 2. Reviewed or audited financial statements, if the 366 association is required to prepare compiled financial 367 statements; or 368 3. Audited financial statements if the association is 369 required to prepare reviewed financial statements. 370 (d) If approved by a majority of the voting interests 371 present at a properly called meeting of the association, an 372 association may prepare: 373 1. A report of cash receipts and expenditures in lieu of a 374 compiled, reviewed, or audited financial statement; 375 2. A report of cash receipts and expenditures or a compiled 376 financial statement in lieu of a reviewed or audited financial 377 statement; or 378 3. A report of cash receipts and expenditures, a compiled 379 financial statement, or a reviewed financial statement in lieu 380 of an audited financial statement. 381 382 Such meeting and approval must occur before the end of the 383 fiscal year and is effective only for the fiscal year in which 384 the vote is taken, except that the approval may also be 385 effective for the following fiscal year. If the developer has 386 not turned over control of the association, all unit owners, 387 including the developer, may vote on issues related to the 388 preparation of the association’s financial reports, from the 389 date of incorporation of the association through the end of the 390 second fiscal year after the fiscal year in which the 391 certificate of a surveyor and mapper is recorded pursuant to s. 392 718.104(4)(e) or an instrument that transfers title to a unit in 393 the condominium which is not accompanied by a recorded 394 assignment of developer rights in favor of the grantee of such 395 unit is recorded, whichever occurs first. Thereafter, all unit 396 owners except the developer may vote on such issues until 397 control is turned over to the association by the developer. Any 398 audit or review prepared under this section shall be paid for by 399 the developer if done before turnover of control of the 400 association.An association may not waive the financial401reporting requirements of this section for more than 3402consecutive years.403 Section 3. Paragraphs (c) and (l) of subsection (2) of 404 section 718.112, Florida Statutes, are amended to read: 405 718.112 Bylaws.— 406 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the 407 following and, if they do not do so, shall be deemed to include 408 the following: 409 (c) Board of administration meetings.—Meetings of the board 410 of administration at which a quorum of the members is present 411 are open to all unit owners. Members of the board of 412 administration may use e-mail as a means of communication but 413 may not cast a vote on an association matter via e-mail. A unit 414 owner may tape record or videotape the meetings. The right to 415 attend such meetings includes the right to speak at such 416 meetings with reference to all designated agenda items. The 417 division shall adopt reasonable rules governing the tape 418 recording and videotaping of the meeting. The association may 419 adopt written reasonable rules governing the frequency, 420 duration, and manner of unit owner statements. 421 1. Adequate notice of all board meetings, which must 422 specifically identify all agenda items, must be posted 423 conspicuously on the condominium property at least 48 continuous 424 hours before the meeting except in an emergency. If 20 percent 425 of the voting interests petition the board to address an item of 426 business, the board, within 60 days after receipt of the 427 petition, shall place the item on the agenda at its next regular 428 board meeting or at a special meeting called for that purpose. 429 An item not included on the notice may be taken up on an 430 emergency basis by a vote of at least a majority plus one of the 431 board members. Such emergency action must be noticed and 432 ratified at the next regular board meeting. Notice of any 433 meeting in which a regular or special assessment against unit 434 owners is to be considered must specifically state that 435 assessments will be considered and provide the estimated amount 436 and a description of the purposes for such assessments.However,437 Written notice of a meeting at which a nonemergency special 438 assessment or an amendment to rules regarding unit use will be 439 considered must be mailed, delivered, or electronically 440 transmitted to the unit owners and posted conspicuously on the 441 condominium property at least 14 days before the meeting. 442 Evidence of compliance with this 14-day notice requirement must 443 be made by an affidavit executed by the person providing the 444 notice and filed with the official records of the association. 445 Upon notice to the unit owners, the board shall, by duly adopted 446 rule, designate a specific location on the condominium or 447 association property where all notices of board meetings must be 448 posted. If there is no condominium property or association 449 property where notices can be posted, notices shall be mailed, 450 delivered, or electronically transmitted to each unit owner at 451 least 14 days before the meeting. In lieu of or in addition to 452 the physical posting of the notice on the condominium property, 453 the association may, by reasonable rule, adopt a procedure for 454 conspicuously posting and repeatedly broadcasting the notice and 455 the agenda on a closed-circuit cable television system serving 456 the condominium association. However, if broadcast notice is 457 used in lieu of a notice physically posted on condominium 458 property, the notice and agenda must be broadcast at least four 459 times every broadcast hour of each day that a posted notice is 460 otherwise required under this section. If broadcast notice is 461 provided, the notice and agenda must be broadcast in a manner 462 and for a sufficient continuous length of time so as to allow an 463 average reader to observe the notice and read and comprehend the 464 entire content of the notice and the agenda. In addition to any 465 of the authorized means of providing notice of a meeting of the 466 board, the association may adopt by rule a procedure for 467 conspicuously posting the meeting notice and the agenda on a 468 website serving the condominium association for at least the 469 minimum period of time for which a notice of a meeting is also 470 required to be physically posted on the condominium property. 471 Any rule adopted shall, in addition to other matters, include a 472 requirement that the association send an electronic notice 473 providing a hypertext link to the website where the notice is 474 postedNotice of any meeting in which regular or special475assessments against unit owners are to be considered must476specifically state that assessments will be considered and477provide the nature, estimated cost, and description of the478purposes for such assessments. 479 2. Meetings of a committee to take final action on behalf 480 of the board or make recommendations to the board regarding the 481 association budget are subject to this paragraph. Meetings of a 482 committee that does not take final action on behalf of the board 483 or make recommendations to the board regarding the association 484 budget are subject to this section, unless those meetings are 485 exempted from this section by the bylaws of the association. 486 3. Notwithstanding any other law, the requirement that 487 board meetings and committee meetings be open to the unit owners 488 does not apply to: 489 a. Meetings between the board or a committee and the 490 association’s attorney, with respect to proposed or pending 491 litigation, if the meeting is held for the purpose of seeking or 492 rendering legal advice; or 493 b. Board meetings held for the purpose of discussing 494 personnel matters. 495 (l) Certificate of compliance.—A provision that a 496 certificate of compliance from a licensed electrical contractor 497 or electrician may be accepted by the association’s board as 498 evidence of complianceof the condominium unitswith the 499 applicable fire and life safety code must be included. 500 Notwithstanding chapter 633, s. 509.215, s. 553.895(1), orof501 any other code, statute, ordinance, administrative rule, or 502 regulation, or any interpretation of the foregoing, an 503 association, residential condominium,or unit owner is not 504 obligated to retrofit the common elements, association property, 505 or units of a residential condominium with a fire sprinkler 506 system or other engineered lifesafety system in a building that 507 is 75 feet or less in height. There is no obligation to retrofit 508 for a building greater than 75 feet in height, calculated from 509 the lowest level of fire department vehicle access to the floor 510 of the highest occupiable storyhas been certified for occupancy511by the applicable governmental entityif the unit owners have 512 voted to forego such retrofitting by the affirmative vote of 513 two-thirdsa majorityof all voting interests in the affected 514 condominium. There is no requirement that owners in condominiums 515 of 75 feet or less conduct an opt-out vote and such condominiums 516 are exempt from fire sprinkler or other engineered lifesafety 517 retrofitting. The preceding sentence is intended to clarify 518 existing law. The local authority having jurisdiction may not 519 require completion of retrofitting with a fire sprinkler system 520 or other engineered lifesafety system before January 1, 2022 5212020. By December 31, 20182016, ana residential condominium522 association that operates a residential condominium that is not 523 in compliance with the requirements for a fire sprinkler system 524 or other engineered lifesafety system and has not voted to 525 forego retrofitting of such a system must initiate an 526 application for a building permit for the required installation 527 with the local government having jurisdiction demonstrating that 528 the association will become compliant by December 31, 20212019. 529 1. A vote to forego required retrofitting may be obtained 530 by limited proxy or by a ballot personally cast at a duly called 531 membership meeting, or by execution of a written consent by the 532 member, or by electronic voting, and is effective upon recording 533 a certificate executed by an officer or agent of the association 534 attesting to such vote in the public records of the county where 535 the condominium is located. When an opt-out vote is to be 536 conducted at a meeting, the association shall mail orhand537 deliver to each unit owner, at each physical and electronic 538 address of record, written notice at least 14 days before the 539 membership meeting in which the vote to forego retrofitting of 540 the required fire sprinkler system or other engineered 541 lifesafety system is to take place. Within 30 days after the 542 association’s opt-out vote, notice of the results of the opt-out 543 vote must be mailed orhanddelivered to all unit owners at each 544 physical and electronic address of record. Evidence of 545 compliance with this notice requirement must be made by 546 affidavit executed by the person providing the notice and filed 547 among the official records of the association. Failure to 548 provide timely notice to unit owners does not invalidate an 549 otherwise valid opt-out vote if notice of the results is 550 provided to the owners. After notice is provided to each owner, 551 a copy must be provided by the current owner to a new owner 552 before closing and by a unit owner to a renter before signing a 553 lease. 554 2. If there has been a previous vote to forego 555 retrofitting, a vote to require retrofitting may be obtained at 556 a special meeting of the unit owners called by a petition of at 557 least 10 percent of the voting interests or by a majority of the 558 board of directors. The vote to require retrofitting requires a 559 two-thirds vote of the total voting interest.Such a vote may560only be called once every 3 years.Notice shall be provided as 561 required for any regularly called meeting of the unit owners, 562 and must state the purpose of the meeting.Electronic563transmission may not be used to provide notice of a meeting564called in whole or in part for this purpose.565 3. As part of the information collected annually from 566 condominiums, the division shall require condominium 567 associations to report the membership vote and recording of a 568 certificate under this subsection and, if retrofitting has been 569 undertaken, the per-unit cost of such work. The division shall 570 annually report to the Division of State Fire Marshal of the 571 Department of Financial Services the number of condominiums that 572 have elected to forego retrofitting. Compliance with this 573 administrative reporting requirement does not affect the 574 validity of an opt-out vote. 575 4. Notwithstanding s. 553.509, a residential association 576 may not be obligated to, and may forego the retrofitting of, any 577 improvements required by s. 553.509(2) upon an affirmative vote 578 of two-thirdsa majorityof the voting interests in the affected 579 condominium. 580 5. The provisions of this paragraph do not apply to 581 timeshare condominium associations, which shall be governed by 582 s. 721.24. 583 Section 4. Subsection (2) of section 718.113, Florida 584 Statutes, is amended to read: 585 718.113 Maintenance; limitation upon improvement; display 586 of flag; hurricane shutters and protection; display of religious 587 decorations.— 588 (2)(a) Except as otherwise provided in this section, there 589 shall be no material alteration or substantial additions to the 590 common elements or to real property which is association 591 property, except in a manner provided in the declaration as 592 originally recorded or as amended under the procedures provided 593 therein. If the declaration as originally recorded or as amended 594 under the procedures provided therein does not specify the 595 procedure for approval of material alterations or substantial 596 additions, 75 percent of the total voting interests of the 597 association must approve the alterations or additions before the 598 material alterations or substantial additions are commenced. 599 This paragraph is intended to clarify existing law and applies 600 to associations existing on the effective date of this act 601October 1, 2008. 602 (b) There shall not be any material alteration of, or 603 substantial addition to, the common elements of any condominium 604 operated by a multicondominium association unless approved in 605 the manner provided in the declaration of the affected 606 condominium or condominiums as originally recorded or as amended 607 under the procedures provided therein. If a declaration as 608 originally recorded or as amended under the procedures provided 609 therein does not specify a procedure for approving such an 610 alteration or addition, the approval of 75 percent of the total 611 voting interests of each affected condominium is required before 612 the material alterations or substantial additions are commenced. 613 This subsection does not prohibit a provision in any 614 declaration, articles of incorporation, or bylaws as originally 615 recorded or as amended under the procedures provided therein 616 requiring the approval of unit owners in any condominium 617 operated by the same association or requiring board approval 618 before a material alteration or substantial addition to the 619 common elements is permitted. This paragraph is intended to 620 clarify existing law and applies to associations existing on the 621 effective date of this act. 622 (c) There shall not be any material alteration or 623 substantial addition made to association real property operated 624 by a multicondominium association, except as provided in the 625 declaration, articles of incorporation, or bylaws as originally 626 recorded or as amended under the procedures provided therein. If 627 the declaration, articles of incorporation, or bylaws as 628 originally recorded or as amended under the procedures provided 629 therein do not specify the procedure for approving an alteration 630 or addition to association real property, the approval of 75 631 percent of the total voting interests of the association is 632 required before the material alterations or substantial 633 additions are commenced. This paragraph is intended to clarify 634 existing law and applies to associations existing on the 635 effective date of this act. 636 Section 5. Subsections (1) and (3) of section 718.117, 637 Florida Statutes, are amended to read: 638 718.117 Termination of condominium.— 639 (1) LEGISLATIVE FINDINGS.—The Legislature finds that: 640 (a) Condominiums are created as authorized by statute and 641 are subject to covenants that encumber the land and restrict the 642 use of the use of real property. 643 (b) In some circumstances, the continued enforcement of 644 those covenantsthatmay create economic waste, areas of 645 disrepair that threaten the safety and welfare of the public, or 646 cause obsolescence of thea condominiumproperty for its 647 intended use and thereby lower property tax values, andthe648Legislature further finds thatit is the public policy of this 649 state to provide by statute a method to preserve the value of 650 the property interests and the rights of alienation thereof that 651 owners have in the condominium property before and after 652 termination. 653 (c)The Legislature further finds thatIt is contrary to 654 the public policy of this state to require the continued 655 operation of a condominium when to do so constitutes economic 656 waste or when the ability to do so is made impossible by law or 657 regulation. 658 (d) It is in the best interest of the state to provide for 659 termination of the covenants of a declaration of condominium in 660 certain circumstances, in order to: 661 1. Ensure the continued maintenance, management, and repair 662 of stormwater management systems, conservation areas, and 663 conservation easements. 664 2. Avoid transferring the expense of maintaining 665 infrastructure serving the condominium property, including, but 666 not limited to, stormwater systems and conservation areas, to 667 the general tax bases of the state and local governments. 668 3. Prevent covenants from impairing the continued 669 productive use of the property. 670 4. Protect state residents from health and safety hazards 671 created by derelict, damaged, obsolete, or abandoned condominium 672 properties. 673 5. Provide for fair treatment and just compensation for 674 individuals, preserve property values, and preserve the local 675 property tax base. 676 6. Preserve the state’s long history of protecting 677 homestead property and homestead property rights by ensuring 678 that such protection is extended to homestead property owners in 679 the context of a termination of the covenants of a declaration 680 of condominium.This section applies to all condominiums in this681state in existence on or after July 1, 2007.682 (3) OPTIONAL TERMINATION.—Except as provided in subsection683(2) or unless the declaration provides for a lower percentage,684 The condominium form of ownership may be terminated for all or a 685 portion of the condominium property pursuant to a plan of 686 termination meeting the requirements of this section and 687 approved by the division. Before a residential association 688 submits a plan to the division, the plan must be approved by at 689 least 80 percent of the total voting interests of the 690 condominium. However, if 510percent or more of the total 691 voting interests of the condominium have rejected the plan of 692 termination by negative vote or by providing written objections, 693 the plan of termination may not proceed. 694 (a) The termination of the condominium form of ownership is 695 subject to the following conditions: 696 1. The total voting interests of the condominium must 697 include all voting interests for the purpose of considering a 698 plan of termination. A voting interest of the condominium may 699 not be suspended for any reason when voting on termination 700 pursuant to this subsection. 701 2. If 510percent or more of the total voting interests of 702 the condominium reject a plan of termination, a subsequent plan 703 of termination pursuant to this subsection may not be considered 704 for 2418months after the date of the rejection. 705 (b) This subsection does not apply to any condominium 706 created pursuant to part VI of this chapter until 105years 707 after the recording of the declaration of condominium, unless 708 there is no objection to the plan of termination. 709 (c) For purposes of this subsection, the term “bulk owner” 710 means the single holder of such voting interests or an owner 711 together with a related entity or entities that would be 712 considered an insider, as defined in s. 726.102, holding such 713 voting interests. If the condominium association is a 714 residential association proposed for termination pursuant to 715 this section and, at the time of recording the plan of 716 termination, at least 80 percent of the total voting interests 717 are owned by a bulk owner, the plan of termination is subject to 718 the following conditions and limitations: 719 1. If the former condominium units are offered for lease to 720 the public after the termination, each unit owner in occupancy 721 immediately before the date of recording of the plan of 722 termination may lease his or her former unit and remain in 723 possession of the unit for 12 months after the effective date of 724 the termination on the same terms as similar unit types within 725 the property are being offered to the public. In order to obtain 726 a lease and exercise the right to retain exclusive possession of 727 the unit owner’s former unit, the unit owner must make a written 728 request to the termination trustee to rent the former unit 729 within 90 days after the date the plan of termination is 730 recorded. Any unit owner who fails to timely make such written 731 request and sign a lease within 15 days after being presented 732 with a lease is deemed to have waived his or her right to retain 733 possession of his or her former unit and shall be required to 734 vacate the former unit upon the effective date of the 735 termination, unless otherwise provided in the plan of 736 termination. 737 2. Any former unit owner whose unit was granted homestead 738 exemption status by the applicable county property appraiser as 739 of the date of the recording of the plan of termination shall be 740 paid a relocation payment in an amount equal to 1 percent of the 741 termination proceeds allocated to the owner’s former unit. Any 742 relocation payment payable under this subparagraph shall be paid 743 by the single entity or related entities owning at least 80 744 percent of the total voting interests. Such relocation payment 745 shall be in addition to the termination proceeds for such 746 owner’s former unit and shall be paid no later than 10 days 747 after the former unit owner vacates his or her former unit. 748 3. For their respective units, all unit owners other than 749 the bulk owner must be compensated at least 100 percent of the 750 fair market value of their units. The fair market value shall be 751 determined as of a date that is no earlier than 90 days before 752 the date that the plan of termination is recorded and shall be 753 determined by an independent appraiser selected by the 754 termination trustee. For a personan original purchaser from the755developer who rejects the plan of termination andwhose unit was 756 granted homestead exemption status by the applicable county 757 property appraiser, or was an owner-occupied operating business, 758 as of the date that the plan of termination is recorded and who 759 is current in payment of both assessments and other monetary 760 obligations to the associationand any mortgage encumbering the761unitas of the date the plan of termination is recorded, the 762 fair market value for the unit owner rejecting the plan shall be 763 at least the original purchase price paid for the unit. For 764 purposes of this subparagraph, the term “fair market value” 765 means the price of a unit that a seller is willing to accept and 766 a buyer is willing to pay on the open market in an arms-length 767 transaction based on similar units sold in other condominiums, 768 including units sold in bulk purchases but excluding units sold 769 at wholesale or distressed prices. The purchase price of units 770 acquired in bulk following a bankruptcy or foreclosure shall not 771 be considered for purposes of determining fair market value. 772 4. The plan of termination must provide for payment of a 773 first mortgage encumbering a unit to the extent necessary to 774 satisfy the lien, but the payment may not exceed the unit’s 775 share of the proceeds of termination under the plan. If the unit 776 owner is current in payment of both assessments and other 777 monetary obligations to the association and any mortgage 778 encumbering the unit as of the date the plan of termination is 779 recorded, the receipt by the holder of the unit’s share of the 780 proceeds of termination under the plan or the outstanding 781 balance of the mortgage, whichever is less, shall be deemed to 782 have satisfied the first mortgage in full. 783 5. Before a plan of termination is presented to the unit 784 owners for consideration pursuant to this paragraph, the plan 785 must include the following written disclosures in a sworn 786 statement: 787 a. The identity of any person or entity that owns or 788 controls 2550percent or more of the units in the condominium 789 and, if the units are owned by an artificial entity or entities, 790 a disclosure of the natural person or persons who, directly or 791 indirectly, manage or control the entity or entities and the 792 natural person or persons who, directly or indirectly, own or 793 control 1020percent or more of the artificial entity or 794 entities that constitute the bulk owner. 795 b. The units acquired by any bulk owner, the date each unit 796 was acquired, and the total amount of compensation paid to each 797 prior unit owner by the bulk owner, regardless of whether 798 attributed to the purchase price of the unit. 799 c. The relationship of any board member to the bulk owner 800 or any person or entity affiliated with the bulk owner subject 801 to disclosure pursuant to this subparagraph. 802 d. The factual circumstances that show that the plan 803 complies with the requirements of this section and that the plan 804 supports the expressed public policies of this section. 805 (d) If the members of the board of administration are 806 elected by the bulk owner, unit owners other than the bulk owner 807 may elect at least one-third of the members of the board of 808 administration before the approval of any plan of termination. 809 Section 6. The amendments made by Section 5 of this act are 810 intended to clarify existing law, are remedial in nature and 811 intended to address the rights and liabilities of the affected 812 parties, and apply to all condominiums created under the 813 Condominium Act. 814 Section 7. Paragraphs (a) and (b) of subsection (2) and 815 paragraphs (b) and (c) of subsection (4) of section 719.104, 816 Florida Statutes, are amended to read: 817 719.104 Cooperatives; access to units; records; financial 818 reports; assessments; purchase of leases.— 819 (2) OFFICIAL RECORDS.— 820 (a) From the inception of the association, the association 821 shall maintain a copy of each of the following, where 822 applicable, which shall constitute the official records of the 823 association: 824 1. The plans, permits, warranties, and other items provided 825 by the developer pursuant to s. 719.301(4). 826 2. A photocopy of the cooperative documents. 827 3. A copy of the current rules of the association. 828 4. A book or books containing the minutes of all meetings 829 of the association, of the board of directors, and of the unit 830 owners, which minutes shall be retained for a period of not less 831 than 7 years. 832 5. A current roster of all unit owners and their mailing 833 addresses, unit identifications, voting certifications, and, if 834 known, telephone numbers. The association shall also maintain 835 the electronic mailing addresses and the numbers designated by 836 unit owners for receiving notice sent by electronic transmission 837 of those unit owners consenting to receive notice by electronic 838 transmission. The electronic mailing addresses and numbers 839 provided by unit owners to receive notice by electronic 840 transmission shall be removed from association records when 841 consent to receive notice by electronic transmission is revoked. 842 However, the association is not liable for an erroneous 843 disclosure of the electronic mail address or the number for 844 receiving electronic transmission of notices. 845 6. All current insurance policies of the association. 846 7. A current copy of any management agreement, lease, or 847 other contract to which the association is a party or under 848 which the association or the unit owners have an obligation or 849 responsibility. 850 8. Bills of sale or transfer for all property owned by the 851 association. 852 9. Accounting records for the association and separate 853 accounting records for each unit it operates, according to good 854 accounting practices. All accounting records shall be maintained 855 for a period of not less than 7 years. The accounting records 856 shall include, but not be limited to: 857 a. Accurate, itemized, and detailed records of all receipts 858 and expenditures. 859 b. A current account and a monthly, bimonthly, or quarterly 860 statement of the account for each unit designating the name of 861 the unit owner, the due date and amount of each assessment, the 862 amount paid upon the account, and the balance due. 863 c. All audits, reviews, accounting statements, and 864 financial reports of the association. 865 d. All contracts for work to be performed. Bids for work to 866 be performed shall also be considered official records and shall 867 be maintained for a period of 1 year. 868 10. Ballots, sign-in sheets, voting proxies, and all other 869 papers and electronic records relating to voting by unit owners, 870 which shall be maintained for a period of 1 year after the date 871 of the election, vote, or meeting to which the document relates. 872 11. All rental records where the association is acting as 873 agent for the rental of units. 874 12. A copy of the current question and answer sheet as 875 described in s. 719.504. 876 13. All other written records of the association not 877 specifically included in the foregoing which are related to the 878 operation of the association. 879 (b) The official records of the association must be 880 maintained within the state for at least 7 years. The records of 881 the association shall be made available to a unit owner within 882 45 miles of the cooperative property or within the county in 883 which the cooperative property is located within 105working 884 days after receipt of written request by the board or its 885 designee. This paragraph may be complied with by having a copy 886 of the official records of the association available for 887 inspection or copying on the cooperative property or the 888 association may offer the option of making the records available 889 to a unit owner electronically via the Internet or by allowing 890 the records to be viewed in an electronic format on a computer 891 screen and printed upon request. The association is not 892 responsible for the use or misuse of the information provided to 893 an association member or his or her authorized representative 894 pursuant to the compliance requirements of this chapter unless 895 the association has an affirmative duty not to disclose such 896 information pursuant to this chapter. 897 (4) FINANCIAL REPORT.— 898 (b) Except as provided in paragraph (c), an association 899 whose total annual revenues meet the criteria of this paragraph 900 shall prepare or cause to be prepared a complete set of 901 financial statements according to the generally accepted 902 accounting principles adopted by the Board of Accountancy. The 903 financial statements shall be as follows: 904 1. An association with total annual revenues between 905 $150,000 and $299,999 shall prepare a compiled financial 906 statement. 907 2. An association with total annual revenues between 908 $300,000 and $499,999 shall prepare a reviewed financial 909 statement. 910 3. An association with total annual revenues of $500,000 or 911 more shall prepare an audited financial statement. 912 4. The requirement to have the financial statement 913 compiled, reviewed, or audited does not apply to an association 914 if a majority of the voting interests of the association present 915 at a duly called meeting of the association have voted to waive 916 this requirement for the fiscal year. In an association in which 917 turnover of control by the developer has not occurred, the 918 developer may vote to waive the audit requirement for the first 919 2 years of operation of the association, after which time waiver 920 of an applicable audit requirement shall be by a majority of 921 voting interests other than the developer. The meeting shall be 922 held prior to the end of the fiscal year, and the waiver shall 923 be effective for only one fiscal year.An association may not924waive the financial reporting requirements of this section for925more than 3 consecutive years.926 (c)1. An association with total annual revenues of less 927 than $150,000 shall prepare a report of cash receipts and 928 expenditures. 9292.An association in a community of fewer than 50 units,930regardless of the association’s annual revenues, shall prepare a931report of cash receipts and expenditures in lieu of the932financial statements required by paragraph (b), unless the933declaration or other recorded governing documents provide934otherwise.935 2.3.A report of cash receipts and expenditures must 936 disclose the amount of receipts by accounts and receipt 937 classifications and the amount of expenses by accounts and 938 expense classifications, including the following, as applicable: 939 costs for security, professional, and management fees and 940 expenses; taxes; costs for recreation facilities; expenses for 941 refuse collection and utility services; expenses for lawn care; 942 costs for building maintenance and repair; insurance costs; 943 administration and salary expenses; and reserves, if maintained 944 by the association. 945 Section 8. Subsection (5) of section 719.1055, Florida 946 Statutes, is amended to read: 947 719.1055 Amendment of cooperative documents; alteration and 948 acquisition of property.— 949 (5) The bylaws must include a provision whereby a 950 certificate of compliance from a licensed electrical contractor 951 or electrician may be accepted by the association’s board as 952 evidence of complianceof the cooperative unitswith the 953 applicable fire and life safety code. 954 (a)1. Notwithstanding chapter 633, s. 509.215, s. 955 553.895(1), or any other code, statute, ordinance, 956 administrative rule, or regulation, or any interpretation of the 957 foregoing, an associationa cooperativeor unit owner is not 958 obligated to retrofit the common elements or units of a 959 residential cooperative with a fire sprinkler system or other 960 engineered lifesafety system in a building that is 75 feet or 961 less in height. There is no obligation to retrofit for a 962 building greater than 75 feet in height, calculated from the 963 lowest level of fire department vehicle access to the floor of 964 the highest occupiable storyhas been certified for occupancy by965the applicable governmental entityif the unit owners have voted 966 to forego such retrofitting by the affirmative vote of two 967 thirdsa majorityof all voting interests in the affected 968 cooperative. There is no requirement that owners in cooperatives 969 of 75 feet or less conduct an opt-out vote and such cooperatives 970 are exempt from fire sprinkler or other engineered lifesafety 971 retrofitting. The preceding sentence is intended to clarify 972 existing law. The local authority having jurisdiction may not 973 require completion of retrofitting with a fire sprinkler system 974 or other engineered lifesafety system before January 1, 2022the975end of 2019. By December 31, 20182016, a cooperative that is 976 not in compliance with the requirements for a fire sprinkler 977 system or other engineered lifesafety system and has not voted 978 to forego retrofitting of such a system must initiate an 979 application for a building permit for the required installation 980 with the local government having jurisdiction demonstrating that 981 the cooperative will become compliant by December 31, 20212019. 982 2. A vote to forego required retrofitting may be obtained 983 by limited proxy or by a ballot personally cast at a duly called 984 membership meeting, or by execution of a written consent by the 985 member, or by electronic voting, and is effective upon recording 986 a certificate executed by an officer or agent of the association 987 attesting to such vote in the public records of the county where 988 the cooperative is located. When the opt-out vote is to be 989 conducted at a meeting, the cooperative shall mail orhand990 deliver to each unit owner, at each physical and electronic 991 address of record, written notice at least 14 days before the 992 membership meeting in which the vote to forego retrofitting of 993 the required fire sprinkler system or other engineered 994 lifesafety system is to take place. Within 30 days after the 995 cooperative’s opt-out vote, notice of the results of the opt-out 996 vote must be mailed orhanddelivered to all unit owners at each 997 physical and electronic address of record. Evidence of 998 compliance with this notice requirement must be made by 999 affidavit executed by the person providing the notice and filed 1000 among the official records of the cooperative. Failure to 1001 provide timely notice to unit owners does not invalidate an 1002 otherwise valid opt-out vote if notice of the results is 1003 provided to the owners. After notice is provided to each owner, 1004 a copy must be provided by the current owner to a new owner 1005 before closing and by a unit owner to a renter before signing a 1006 lease. 1007 (b) If there has been a previous vote to forego 1008 retrofitting, a vote to require retrofitting may be obtained at 1009 a special meeting of the unit owners called by a petition of 1010 least 10 percent of the voting interests or by a majority of the 1011 board of directors. The vote to require retrofitting requires a 1012 two-thirds vote of the total voting interest.Such vote may only1013be called once every 3 years.Notice must be provided as 1014 required for any regularly called meeting of the unit owners, 1015 and the notice must state the purpose of the meeting.Electronic1016transmission may not be used to provide notice of a meeting1017called in whole or in part for this purpose.1018 (c) As part of the information collected annually from 1019 cooperatives, the division shall require associations to report 1020 the membership vote and recording of a certificate under this 1021 subsection and, if retrofitting has been undertaken, the per 1022 unit cost of such work. The division shall annually report to 1023 the Division of State Fire Marshal of the Department of 1024 Financial Services the number of cooperatives that have elected 1025 to forego retrofitting. Compliance with this administrative 1026 reporting requirement does not affect the validity of an opt-out 1027 vote. 1028 Section 9. Paragraphs (a) and (c) of subsection (1) of 1029 section 719.106, Florida Statutes, are amended, and paragraph 1030 (m) is added to that subsection, to read: 1031 719.106 Bylaws; cooperative ownership.— 1032 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative 1033 documents shall provide for the following, and if they do not, 1034 they shall be deemed to include the following: 1035 (a) Administration.— 1036 1. The form of administration of the association shall be 1037 described, indicating the titles of the officers and board of 1038 administration and specifying the powers, duties, manner of 1039 selection and removal, and compensation, if any, of officers and 1040 board members. In the absence of such a provision, the board of 1041 administration shall be composed of five members, except in the 1042 case of cooperatives having five or fewer units, in which case 1043 in not-for-profit corporations, the board shall consist of not 1044 fewer than three members. In a residential cooperative 1045 association of more than 10 units, co-owners of a unit may not 1046 serve as members of the board of directors at the same time 1047 unless the co-owners own more than one unit or unless there are 1048 not enough eligible candidates to fill the vacancies on the 1049 board at the time of the vacancy. In the absence of provisions 1050 to the contrary, the board of administration shall have a 1051 president, a secretary, and a treasurer, who shall perform the 1052 duties of those offices customarily performed by officers of 1053 corporations. Unless prohibited in the bylaws, the board of 1054 administration may appoint other officers and grant them those 1055 duties it deems appropriate. Unless otherwise provided in the 1056 bylaws, the officers shall serve without compensation and at the 1057 pleasure of the board. Unless otherwise provided in the bylaws, 1058 the members of the board shall serve without compensation. 1059 2. A person who has been suspended or removed by the 1060 division under this chapter, or who is delinquent in the payment 1061 of any monetary obligation due to the association, is not 1062 eligible to be a candidate for board membership and may not be 1063 listed on the ballot. A director or officer charged by 1064 information or indictment with a felony theft or embezzlement 1065 offense involving the association’s funds or property is 1066 suspended from office. The board shall fill the vacancy 1067 according to general law until the end of the period of the 1068 suspension or the end of the director’s term of office, 1069 whichever occurs first. However, if the charges are resolved 1070 without a finding of guilt or without acceptance of a plea of 1071 guilty or nolo contendere, the director or officer shall be 1072 reinstated for any remainder of his or her term of office. A 1073 member who has such criminal charges pending may not be 1074 appointed or elected to a position as a director or officer. A 1075 person who has been convicted of any felony in this state or in 1076 any United States District Court, or who has been convicted of 1077 any offense in another jurisdiction which would be considered a 1078 felony if committed in this state, is not eligible for board 1079 membership unless such felon’s civil rights have been restored 1080 for at least 5 years as of the date such person seeks election 1081 to the board. The validity of an action by the board is not 1082 affected if it is later determined that a board member is 1083 ineligible for board membership due to having been convicted of 1084 a felony. 1085 3. When a unit owner files a written inquiry by certified 1086 mail with the board of administration, the board shall respond 1087 in writing to the unit owner within 30 days of receipt of the 1088 inquiry. The board’s response shall either give a substantive 1089 response to the inquirer, notify the inquirer that a legal 1090 opinion has been requested, or notify the inquirer that advice 1091 has been requested from the division. If the board requests 1092 advice from the division, the board shall, within 10 days of its 1093 receipt of the advice, provide in writing a substantive response 1094 to the inquirer. If a legal opinion is requested, the board 1095 shall, within 60 days after the receipt of the inquiry, provide 1096 in writing a substantive response to the inquirer. The failure 1097 to provide a substantive response to the inquirer as provided 1098 herein precludes the board from recovering attorney’s fees and 1099 costs in any subsequent litigation, administrative proceeding, 1100 or arbitration arising out of the inquiry. The association may, 1101 through its board of administration, adopt reasonable rules and 1102 regulations regarding the frequency and manner of responding to 1103 the unit owners’ inquiries, one of which may be that the 1104 association is obligated to respond to only one written inquiry 1105 per unit in any given 30-day period. In such case, any 1106 additional inquiry or inquiries must be responded to in the 1107 subsequent 30-day period, or periods, as applicable. 1108 (c) Board of administration meetings.—Members of the board 1109 of administration may use e-mail as a means of communication but 1110 may not cast a vote on an association matter via e-mail. 1111 Meetings of the board of administration at which a quorum of the 1112 members is present shall be open to all unit owners. Any unit 1113 owner may tape record or videotape meetings of the board of 1114 administration. The right to attend such meetings includes the 1115 right to speak at such meetings with reference to all designated 1116 agenda items. The division shall adopt reasonable rules 1117 governing the tape recording and videotaping of the meeting. The 1118 association may adopt reasonable written rules governing the 1119 frequency, duration, and manner of unit owner statements. 1120 Adequate notice of all meetings shall be posted in a conspicuous 1121 place upon the cooperative property at least 48 continuous hours 1122 preceding the meeting, except in an emergency. Any item not 1123 included on the notice may be taken up on an emergency basis by 1124 at least a majority plus one of the members of the board. Such 1125 emergency action shall be noticed and ratified at the next 1126 regular meeting of the board. Notice of any meeting in which 1127 regular or special assessments against unit owners are to be 1128 considered must specifically state that assessments will be 1129 considered and provide the estimated amount and description of 1130 the purposes for such assessments.However,Written notice of 1131 any meeting at which nonemergency special assessments, or at 1132 which amendment to rules regarding unit use, will be considered 1133 shall be mailed, delivered, or electronically transmitted to the 1134 unit owners and posted conspicuously on the cooperative property 1135 not less than 14 days before the meeting. Evidence of compliance 1136 with this 14-day notice shall be made by an affidavit executed 1137 by the person providing the notice and filed among the official 1138 records of the association. Upon notice to the unit owners, the 1139 board shall by duly adopted rule designate a specific location 1140 on the cooperative property upon which all notices of board 1141 meetings shall be posted. In lieu of or in addition to the 1142 physical posting of notice of any meeting of the board of 1143 administration on the cooperative property, the association may, 1144 by reasonable rule, adopt a procedure for conspicuously posting 1145 and repeatedly broadcasting the notice and the agenda on a 1146 closed-circuit cable television system serving the cooperative 1147 association. However, if broadcast notice is used in lieu of a 1148 notice posted physically on the cooperative property, the notice 1149 and agenda must be broadcast at least four times every broadcast 1150 hour of each day that a posted notice is otherwise required 1151 under this section. When broadcast notice is provided, the 1152 notice and agenda must be broadcast in a manner and for a 1153 sufficient continuous length of time so as to allow an average 1154 reader to observe the notice and read and comprehend the entire 1155 content of the notice and the agenda. In addition to any of the 1156 authorized means of providing notice of a meeting of the board, 1157 the association may adopt by rule a procedure for conspicuously 1158 posting the meeting notice and the agenda on a website serving 1159 the cooperative association for at least the minimum period of 1160 time for which a notice of a meeting is also required to be 1161 physically posted on the cooperative property. Any rule adopted 1162 shall, in addition to other matters, include a requirement that 1163 the association send an electronic notice providing a hypertext 1164 link to the website where the notice is posted.Notice of any1165meeting in which regular assessments against unit owners are to1166be considered for any reason shall specifically contain a1167statement that assessments will be considered and the nature of1168any such assessments.Meetings of a committee to take final 1169 action on behalf of the board or to make recommendations to the 1170 board regarding the association budget are subject to the 1171 provisions of this paragraph. Meetings of a committee that does 1172 not take final action on behalf of the board or make 1173 recommendations to the board regarding the association budget 1174 are subject to the provisions of this section, unless those 1175 meetings are exempted from this section by the bylaws of the 1176 association. Notwithstanding any other law to the contrary, the 1177 requirement that board meetings and committee meetings be open 1178 to the unit owners does not apply to board or committee meetings 1179 held for the purpose of discussing personnel matters or meetings 1180 between the board or a committee and the association’s attorney, 1181 with respect to proposed or pending litigation, if the meeting 1182 is held for the purpose of seeking or rendering legal advice. 1183 (m) Director or officer delinquencies.—A director or 1184 officer more than 90 days delinquent in the payment of any 1185 monetary obligation due the association shall be deemed to have 1186 abandoned the office, creating a vacancy in the office to be 1187 filled according to law. 1188 Section 10. Paragraph (b) of subsection (1) of section 1189 719.107, Florida Statutes, is amended to read: 1190 719.107 Common expenses; assessment.— 1191 (1) 1192 (b) If so provided in the bylaws, the cost of 1193 communications services as defined in chapter 202, information 1194 services, or Internet servicesa master antenna television1195system or duly franchised cable television serviceobtained 1196 pursuant to a bulk contract shall be deemed a common expense, 1197 and if not obtained pursuant to a bulk contract, such cost shall 1198 be considered common expense if it is designated as such in a 1199 written contract between the board of administration and the 1200 company providing the communications services as defined in 1201 chapter 202, information services, or Internet servicesmaster1202television antenna system or the cable television service. The 1203 contract shall be for a term of not less than 2 years. 1204 1. Any contract made by the board after April 2, 1992, for 1205 a community antenna system or duly franchised cable television 1206 service, communications services as defined in chapter 202, 1207 information services, or Internet services may be canceled by a 1208 majority of the voting interests present at the next regular or 1209 special meeting of the association. Any member may make a motion 1210 to cancel the contract, but if no motion is made or if such 1211 motion fails to obtain the required majority at the next regular 1212 or special meeting, whichever is sooner, following the making of 1213 the contract, then such contract shall be deemed ratified for 1214 the term therein expressed. 1215 2. Any such contract shall provide, and shall be deemed to 1216 provide if not expressly set forth, that any hearing impaired or 1217 legally blind unit owner who does not occupy the unit with a 1218 nonhearing impaired or sighted person may discontinue the 1219 service without incurring disconnect fees, penalties, or 1220 subsequent service charges, and as to such units, the owners 1221 shall not be required to pay any common expenses charge related 1222 to such service. If less than all members of an association 1223 share the expenses of cable television, the expense shall be 1224 shared equally by all participating unit owners. The association 1225 may use the provisions of s. 719.108 to enforce payment of the 1226 shares of such costs by the unit owners receiving cable 1227 television. 1228 Section 11. Paragraphs (a) and (c) of subsection (2) of 1229 section 720.303, Florida Statutes, are amended to read: 1230 720.303 Association powers and duties; meetings of board; 1231 official records; budgets; budget meetings; financial reporting; 1232 association funds; recalls.— 1233 (2) BOARD MEETINGS.— 1234 (a) Members of the board of administration may use e-mail 1235 as a means of communication, but may not cast a vote on an 1236 association matter via e-mail. A meeting of the board of 1237 directors of an association occurs whenever a quorum of the 1238 board gathers to conduct association business. Meetings of the 1239 board must be open to all members, except for meetings between 1240 the board and its attorney with respect to proposed or pending 1241 litigation where the contents of the discussion would otherwise 1242 be governed by the attorney-client privilege. A meeting of the 1243 board must be held at a location that is accessible to a 1244 physically handicapped person if requested by a physically 1245 handicapped person who has a right to attend the meeting. The 1246 provisions of this subsection shall also apply to the meetings 1247 of any committee or other similar body when a final decision 1248 will be made regarding the expenditure of association funds and 1249 to meetings of any body vested with the power to approve or 1250 disapprove architectural decisions with respect to a specific 1251 parcel of residential property owned by a member of the 1252 community. 1253 (c) The bylaws shall provide the following for giving 1254 notice to parcel owners and members of all board meetings and, 1255 if they do not do so, shall be deemed to includeprovidethe 1256 following: 1257 1. Notices of all board meetings must be posted in a 1258 conspicuous place in the community at least 48 hours in advance 1259 of a meeting, except in an emergency. In the alternative, if 1260 notice is not posted in a conspicuous place in the community, 1261 notice of each board meeting must be mailed or delivered to each 1262 member at least 7 days before the meeting, except in an 1263 emergency. Notwithstanding this general notice requirement, for 1264 communities with more than 100 members, the association bylaws 1265 may provide for a reasonable alternative to posting or mailing 1266 of notice for each board meeting, including publication of 1267 notice, provision of a schedule of board meetings, or the 1268 conspicuous posting and repeated broadcasting of the notice on a 1269 closed-circuit cable television system serving the homeowners’ 1270 association. However, if broadcast notice is used in lieu of a 1271 notice posted physically in the community, the notice must be 1272 broadcast at least four times every broadcast hour of each day 1273 that a posted notice is otherwise required. When broadcast 1274 notice is provided, the notice and agenda must be broadcast in a 1275 manner and for a sufficient continuous length of time so as to 1276 allow an average reader to observe the notice and read and 1277 comprehend the entire content of the notice and the agenda. The 1278 association may provide notice by electronic transmission in a 1279 manner authorized by law for meetings of the board of directors, 1280 committee meetings requiring notice under this section, and 1281 annual and special meetings of the members to any member who has 1282 provided a facsimile number or e-mail address to the association 1283 to be used for such purposes; however, a member must consent in 1284 writing to receiving notice by electronic transmission. 1285 2. An assessment may not be levied at a board meeting 1286 unless the notice of the meeting includes a statement that 1287 assessments will be considered and the nature of the 1288 assessments. Written notice of any meeting at which special 1289 assessments will be considered or at which amendments to rules 1290 regarding parcel use will be considered must be mailed, 1291 delivered, or electronically transmitted to the members and 1292 parcel owners and posted conspicuously on the property or 1293 broadcast on closed-circuit cable television not less than 14 1294 days before the meeting. 1295 3. Directors may not vote by proxy or by secret ballot at 1296 board meetings, except that secret ballots may be used in the 1297 election of officers. This subsection also applies to the 1298 meetings of any committee or other similar body, when a final 1299 decision will be made regarding the expenditure of association 1300 funds, and to any body vested with the power to approve or 1301 disapprove architectural decisions with respect to a specific 1302 parcel of residential property owned by a member of the 1303 community. 1304 Section 12. This act shall take effect July 1, 2017.