Bill Text: FL S1682 | 2017 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Condominiums
Spectrum:
Status: (Introduced - Dead) 2017-05-01 - Laid on Table, companion bill(s) passed, see CS/CS/HB 1237 (Ch. 2017-188), HB 6027 (Ch. 2017-161) [S1682 Detail]
Download: Florida-2017-S1682-Comm_Sub.html
Bill Title: Condominiums
Spectrum:
Status: (Introduced - Dead) 2017-05-01 - Laid on Table, companion bill(s) passed, see CS/CS/HB 1237 (Ch. 2017-188), HB 6027 (Ch. 2017-161) [S1682 Detail]
Download: Florida-2017-S1682-Comm_Sub.html
Florida Senate - 2017 CS for SB 1682 By the Committee on Regulated Industries; and Senators Garcia, Rodriguez, and Artiles 580-03447-17 20171682c1 1 A bill to be entitled 2 An act relating to condominiums; amending s. 718.111, 3 F.S.; prohibiting an association from hiring an 4 attorney that represents the management company of the 5 association; prohibiting a board member, manager, or 6 management company from purchasing a unit at a 7 foreclosure sale under certain circumstances; 8 providing recordkeeping requirements; providing that 9 the official records of an association are open to 10 inspection by unit renters; providing that a renter of 11 a unit has a right to inspect and copy the 12 association’s bylaws and rules; providing criminal 13 penalties; providing a definition; providing 14 requirements relating to the posting of specified 15 documents on an association’s website; providing a 16 remedy for an association’s failure to provide a unit 17 owner with a copy of the most recent financial report; 18 requiring the Division of Florida Condominiums, 19 Timeshares, and Mobile Homes to maintain and provide 20 copies of financial reports; amending s. 718.112, 21 F.S.; providing board member term limits; providing an 22 exception; deleting certification requirements 23 relating to the recall of board members; revising the 24 amount of time in which a recalled board member must 25 turn over records and property of the association to 26 the board; prohibiting certain associations from 27 employing or contracting with a service provider that 28 is owned or operated by certain persons; amending s. 29 718.1255, F.S.; authorizing, rather than requiring, 30 the division to employ full-time attorneys to conduct 31 certain arbitration hearings; providing requirements 32 for the certification of arbitrators; prohibiting the 33 Department of Business and Professional Regulation 34 from entering into a legal services contract for 35 certain arbitration hearings; requiring the division 36 to assign or enter into contracts with arbitrators; 37 requiring arbitrators to conduct hearings within a 38 specified period; providing an exception; providing 39 arbitration proceeding requirements; creating s. 40 718.129, F.S.; providing that certain activities 41 constitute fraudulent voting activities related to 42 association elections; providing criminal penalties; 43 amending s. 718.3025, F.S.; prohibiting specified 44 parties from purchasing a unit at a foreclosure sale 45 resulting from the association’s foreclosure of 46 association lien for unpaid assessments or from taking 47 a deed in lieu of foreclosures; authorizing a contract 48 with a party providing maintenance or management 49 services to be cancelled by a majority vote of certain 50 unit owners under specified conditions; creating s. 51 718.3027, F.S.; providing requirements relating to 52 board director and officer conflicts of interest; 53 providing that certain contracts are voidable if they 54 do not meet specified notice requirements and 55 terminate, subject to a certain condition; amending s. 56 718.303, F.S.; providing requirements relating to the 57 suspension of voting rights of unit owners and 58 members; prohibiting a receiver from exercising the 59 voting rights of a unit owner whose unit is placed in 60 receivership; amending s. 718.5012, F.S.; providing 61 the ombudsman with an additional power; creating s. 62 718.71, F.S.; providing financial reporting 63 requirements of an association; providing an effective 64 date. 65 66 Be It Enacted by the Legislature of the State of Florida: 67 68 Section 1. Subsections (3) and (9), paragraphs (a) and (c) 69 of subsection (12), and subsection (13) of section 718.111, 70 Florida Statutes, are amended, and paragraph (g) is added to 71 subsection (12) of that section, to read: 72 718.111 The association.— 73 (3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT, 74 SUE, AND BE SUED; CONFLICT OF INTEREST.— 75 (a) The association may contract, sue, or be sued with 76 respect to the exercise or nonexercise of its powers. For these 77 purposes, the powers of the association include, but are not 78 limited to, the maintenance, management, and operation of the 79 condominium property. After control of the association is 80 obtained by unit owners other than the developer, the 81 association may institute, maintain, settle, or appeal actions 82 or hearings in its name on behalf of all unit owners concerning 83 matters of common interest to most or all unit owners, 84 including, but not limited to, the common elements; the roof and 85 structural components of a building or other improvements; 86 mechanical, electrical, and plumbing elements serving an 87 improvement or a building; representations of the developer 88 pertaining to any existing or proposed commonly used facilities; 89 and protesting ad valorem taxes on commonly used facilities and 90 on units; and may defend actions in eminent domain or bring 91 inverse condemnation actions. If the association has the 92 authority to maintain a class action, the association may be 93 joined in an action as representative of that class with 94 reference to litigation and disputes involving the matters for 95 which the association could bring a class action. Nothing herein 96 limits any statutory or common-law right of any individual unit 97 owner or class of unit owners to bring any action without 98 participation by the association which may otherwise be 99 available. 100 (b) An association may not hire an attorney that represents 101 the management company of the association. 102 (9) PURCHASE OF UNITS.—The association has the power, 103 unless prohibited by the declaration, articles of incorporation, 104 or bylaws of the association, to purchase units in the 105 condominium and to acquire and hold, lease, mortgage, and convey 106 them. There shall be no limitation on the association’s right to 107 purchase a unit at a foreclosure sale resulting from the 108 association’s foreclosure of its lien for unpaid assessments, or 109 to take title by deed in lieu of foreclosure. However, except 110 for a timeshare condominium, a board member, manager, or 111 management company may not purchase a unit at a foreclosure sale 112 resulting from the association’s foreclosure of its lien for 113 unpaid assessments or take title by deed in lieu of foreclosure. 114 (12) OFFICIAL RECORDS.— 115 (a) From the inception of the association, the association 116 shall maintain each of the following items, if applicable, which 117 constitutes the official records of the association: 118 1. A copy of the plans, permits, warranties, and other 119 items provided by the developer pursuant to s. 718.301(4). 120 2. A photocopy of the recorded declaration of condominium 121 of each condominium operated by the association and each 122 amendment to each declaration. 123 3. A photocopy of the recorded bylaws of the association 124 and each amendment to the bylaws. 125 4. A certified copy of the articles of incorporation of the 126 association, or other documents creating the association, and 127 each amendment thereto. 128 5. A copy of the current rules of the association. 129 6. A book or books that contain the minutes of all meetings 130 of the association, the board of administration, and the unit 131 owners, which minutes must be retained for at least 7 years. 132 7. A current roster of all unit owners and their mailing 133 addresses, unit identifications, voting certifications, and, if 134 known, telephone numbers. The association shall also maintain 135 the electronic mailing addresses and facsimile numbers of unit 136 owners consenting to receive notice by electronic transmission. 137 The electronic mailing addresses and facsimile numbers are not 138 accessible to unit owners if consent to receive notice by 139 electronic transmission is not provided in accordance with sub 140 subparagraph (c)5.e.subparagraph (c)5.However, the association 141 is not liable for an inadvertent disclosure of the electronic 142 mail address or facsimile number for receiving electronic 143 transmission of notices. 144 8. All current insurance policies of the association and 145 condominiums operated by the association. 146 9. A current copy of any management agreement, lease, or 147 other contract to which the association is a party or under 148 which the association or the unit owners have an obligation or 149 responsibility. 150 10. Bills of sale or transfer for all property owned by the 151 association. 152 11. Accounting records for the association and separate 153 accounting records for each condominium that the association 154 operates. All accounting records must be maintained for at least 155 7 years. Any person who knowingly or intentionally defaces or 156 destroys such records, or who knowingly or intentionally fails 157 to create or maintain such records, with the intent of causing 158 harm to the association or one or more of its members, is 159 personally subject to a civil penalty pursuant to s. 160 718.501(1)(d). The accounting records must include, but are not 161 limited to: 162 a. Accurate, itemized, and detailed records of all receipts 163 and expenditures. 164 b. A current account and a monthly, bimonthly, or quarterly 165 statement of the account for each unit designating the name of 166 the unit owner, the due date and amount of each assessment, the 167 amount paid on the account, and the balance due. 168 c. All audits, reviews, accounting statements, and 169 financial reports of the association or condominium. 170 d. All contracts for work to be performed. Bids for work to 171 be performed are also considered official records and must be 172 maintained by the association. 173 12. Ballots, sign-in sheets, voting proxies, and all other 174 papers relating to voting by unit owners, which must be 175 maintained for 1 year from the date of the election, vote, or 176 meeting to which the document relates, notwithstanding paragraph 177 (b). 178 13. All rental records if the association is acting as 179 agent for the rental of condominium units. 180 14. A copy of the current question and answer sheet as 181 described in s. 718.504. 182 15. All other written records of the association not 183 specifically included in the foregoing which are related to the 184 operation of the association. 185 16. A copy of the inspection report as described in s. 186 718.301(4)(p). 187 17. Bids for materials, equipment, or services. 188 (c)1. The official records of the association are open to 189 inspection by any association member or the authorized 190 representative of such member at all reasonable times. The right 191 to inspect the records includes the right to make or obtain 192 copies, at the reasonable expense, if any, of the member or 193 authorized representative of such member. A renter of a unit has 194 a right to inspect and copy the association’s bylaws and rules. 195 The association may adopt reasonable rules regarding the 196 frequency, time, location, notice, and manner of record 197 inspections and copying. The failure of an association to 198 provide the records within 10 working days after receipt of a 199 written request creates a rebuttable presumption that the 200 association willfully failed to comply with this paragraph. A 201 unit owner who is denied access to official records is entitled 202 to the actual damages or minimum damages for the association’s 203 willful failure to comply. Minimum damages are $50 per calendar 204 day for up to 10 days, beginning on the 11th working day after 205 receipt of the written request. The failure to permit inspection 206 entitles any person prevailing in an enforcement action to 207 recover reasonable attorney fees from the person in control of 208 the records who, directly or indirectly, knowingly denied access 209 to the records. 210 2. Any director or member of the board or association who 211 knowingly, willfully, and repeatedly violates subparagraph 1. 212 commits a misdemeanor of the second degree, punishable as 213 provided in s. 775.082 or s. 775.083. For purposes of this 214 subparagraph, the term “repeatedly violates” means more than two 215 violations within a 12-month period. 216 3. Any person who knowingly or intentionally defaces or 217 destroys accounting records that are required by this chapter to 218 be maintained during the period for which such records are 219 required to be maintained, or who knowingly or intentionally 220 fails to create or maintain accounting records that are required 221 to be created or maintained, with the intent of causing harm to 222 the association or one or more of its members, commits a 223 misdemeanor of the first degree, punishable as provided in s. 224 775.082 or s. 775.083. 225 4. Any person who willfully and knowingly refuses to 226 release or otherwise produce association records with the intent 227 of facilitating the commission of a crime or avoiding or 228 escaping detection, arrest, trial, or punishment for a crime 229 commits a felony of the third degree, punishable as provided in 230 s. 775.082, s. 775.083, or s. 775.084is personally subject to a231civil penalty pursuant to s. 718.501(1)(d). 232 5. The association shall maintain an adequate number of 233 copies of the declaration, articles of incorporation, bylaws, 234 and rules, and all amendments to each of the foregoing, as well 235 as the question and answer sheet as described in s. 718.504 and 236 year-end financial information required under this section, on 237 the condominium property to ensure their availability to unit 238 owners and prospective purchasers, and may charge its actual 239 costs for preparing and furnishing these documents to those 240 requesting the documents. An association shall allow a member or 241 his or her authorized representative to use a portable device, 242 including a smartphone, tablet, portable scanner, or any other 243 technology capable of scanning or taking photographs, to make an 244 electronic copy of the official records in lieu of the 245 association’s providing the member or his or her authorized 246 representative with a copy of such records. The association may 247 not charge a member or his or her authorized representative for 248 the use of a portable device. Notwithstanding this paragraph, 249 the following records are not accessible to unit owners: 250 a.1.Any record protected by the lawyer-client privilege as 251 described in s. 90.502 and any record protected by the work 252 product privilege, including a record prepared by an association 253 attorney or prepared at the attorney’s express direction, which 254 reflects a mental impression, conclusion, litigation strategy, 255 or legal theory of the attorney or the association, and which 256 was prepared exclusively for civil or criminal litigation or for 257 adversarial administrative proceedings, or which was prepared in 258 anticipation of such litigation or proceedings until the 259 conclusion of the litigation or proceedings. 260 b.2.Information obtained by an association in connection 261 with the approval of the lease, sale, or other transfer of a 262 unit. 263 c.3.Personnel records of association or management company 264 employees, including, but not limited to, disciplinary, payroll, 265 health, and insurance records. For purposes of this sub 266 subparagraphsubparagraph, the term “personnel records” does not 267 include written employment agreements with an association 268 employee or management company, or budgetary or financial 269 records that indicate the compensation paid to an association 270 employee. 271 d.4.Medical records of unit owners. 272 e.5.Social security numbers, driver license numbers, 273 credit card numbers, e-mail addresses, telephone numbers, 274 facsimile numbers, emergency contact information, addresses of a 275 unit owner other than as provided to fulfill the association’s 276 notice requirements, and other personal identifying information 277 of any person, excluding the person’s name, unit designation, 278 mailing address, property address, and any address, e-mail 279 address, or facsimile number provided to the association to 280 fulfill the association’s notice requirements. Notwithstanding 281 the restrictions in this sub-subparagraphsubparagraph, an 282 association may print and distribute to parcel owners a 283 directory containing the name, parcel address, and all telephone 284 numbers of each parcel owner. However, an owner may exclude his 285 or her telephone numbers from the directory by so requesting in 286 writing to the association. An owner may consent in writing to 287 the disclosure of other contact information described in this 288 sub-subparagraphsubparagraph. The association is not liable for 289 the inadvertent disclosure of information that is protected 290 under this sub-subparagraphsubparagraphif the information is 291 included in an official record of the association and is 292 voluntarily provided by an owner and not requested by the 293 association. 294 f.6.Electronic security measures that are used by the 295 association to safeguard data, including passwords. 296 g.7.The software and operating system used by the 297 association which allow the manipulation of data, even if the 298 owner owns a copy of the same software used by the association. 299 The data is part of the official records of the association. 300 (g)1. By October 1, 2017, an association with 500 or more 301 units which does not manage timeshare units shall post digital 302 copies of the documents specified in subparagraph 2. on its 303 website. 304 a. The association’s website must be: 305 (I) An independent website or web portal wholly owned and 306 operated by the association; or 307 (II) A website or web portal operated by a third-party 308 provider with whom the association owns, leases, rents, or 309 otherwise obtains the right to operate a web page, subpage, web 310 portal, or collection of subpages or web portals dedicated to 311 the association’s activities and on which required notices, 312 records, and documents may be posted by the association. 313 b. The association’s website must be accessible through the 314 Internet and must contain a subpage, web portal, or other 315 protected electronic location that is inaccessible to the 316 general public and accessible only to unit owners and employees 317 of the association. 318 c. Upon a unit owner’s written request, the association 319 must provide the unit owner with a username and password and 320 access to the protected sections of the association’s website 321 that contain any notices, records, or documents that must be 322 electronically provided. 323 2. A current copy of the following documents must be posted 324 in digital format on the association’s website: 325 a. The recorded declaration of condominium of each 326 condominium operated by the association and each amendment to 327 each declaration. 328 b. The recorded bylaws of the association and each 329 amendment to the bylaws. 330 c. The articles of incorporation of the association, or 331 other documents creating the association, and each amendment 332 thereto. The copy posted pursuant to this sub-subparagraph must 333 be a copy of the articles of incorporation filed with the 334 Department of State. 335 d. The rules of the association. 336 e. Any management agreement, lease, or other contract to 337 which the association is a party or under which the association 338 or the unit owners have an obligation or responsibility. 339 Summaries of bids for materials, equipment, or services must be 340 maintained on the website for 1 year. 341 f. The annual budget required by s. 718.112(2)(f) and any 342 proposed budget to be considered at the annual meeting. 343 g. The financial report required by subsection (13) and any 344 proposed financial report to be considered at a meeting. 345 h. The certification of each director required by s. 346 718.112(2)(d)4.b. 347 i. All contracts or transactions between the association 348 and any director, officer, corporation, firm, or association 349 that is not an affiliated condominium association or any other 350 entity in which an association director is also a director or 351 officer and financially interested. 352 j. Any contract or document regarding a conflict of 353 interest or possible conflict of interest as provided in ss. 354 468.436(2) and 718.3026(3). 355 k. The notice of any unit owner meeting and the agenda for 356 the meeting, as required by s. 718.112(2)(d)3., no later than 14 357 days before the meeting. The notice must be posted in plain view 358 on the front page of the website, or on a separate subpage of 359 the website labeled “Notices” which is conspicuously visible and 360 linked from the front page. The association must also post on 361 its website any document to be considered and voted on by the 362 owners during the meeting or any document listed on the agenda 363 at least 7 days before the meeting at which the document or the 364 information within the document will be considered. 365 l. Notice of any board meeting, and the agenda and any 366 other document required for the meeting as required by s. 367 718.112(2)(c), which must be posted no later than the date 368 required for notice pursuant to s. 718.112(2)(c). 369 3. The association shall ensure that the information and 370 records described in paragraph (c), which are not permitted to 371 be accessible to unit owners, are not posted on the 372 association’s website. If protected information or information 373 restricted from being accessible to unit owners is included in 374 documents that are required to be posted on the association’s 375 website, the association shall ensure the information is 376 redacted before posting the documents online. 377 (13) FINANCIAL REPORTING.—Within 90 days after the end of 378 the fiscal year, or annually on a date provided in the bylaws, 379 the association shall prepare and complete, or contract for the 380 preparation and completion of, a financial report for the 381 preceding fiscal year. Within 21 days after the final financial 382 report is completed by the association or received from the 383 third party, but not later than 120 days after the end of the 384 fiscal year or other date as provided in the bylaws, the 385 association shall mail to each unit owner at the address last 386 furnished to the association by the unit owner, or hand deliver 387 to each unit owner, a copy of the most recent financial report 388 or a notice that a copy of the most recent financial report will 389 be mailed or hand delivered to the unit owner, without charge, 390 within 5 business days afteruponreceipt of a written request 391 from the unit owner. The division shall adopt rules setting 392 forth uniform accounting principles and standards to be used by 393 all associations and addressing the financial reporting 394 requirements for multicondominium associations. The rules must 395 include, but not be limited to, standards for presenting a 396 summary of association reserves, including a good faith estimate 397 disclosing the annual amount of reserve funds that would be 398 necessary for the association to fully fund reserves for each 399 reserve item based on the straight-line accounting method. This 400 disclosure is not applicable to reserves funded via the pooling 401 method. In adopting such rules, the division shall consider the 402 number of members and annual revenues of an association. 403 Financial reports shall be prepared as follows: 404 (a) An association that meets the criteria of this 405 paragraph shall prepare a complete set of financial statements 406 in accordance with generally accepted accounting principles. The 407 financial statements must be based upon the association’s total 408 annual revenues, as follows: 409 1. An association with total annual revenues of $150,000 or 410 more, but less than $300,000, shall prepare compiled financial 411 statements. 412 2. An association with total annual revenues of at least 413 $300,000, but less than $500,000, shall prepare reviewed 414 financial statements. 415 3. An association with total annual revenues of $500,000 or 416 more shall prepare audited financial statements. 417 (b)1. An association with total annual revenues of less 418 than $150,000 shall prepare a report of cash receipts and 419 expenditures. 420 2. An association that operates fewer than 50 units, 421 regardless of the association’s annual revenues, shall prepare a 422 report of cash receipts and expenditures in lieu of financial 423 statements required by paragraph (a). 424 3. A report of cash receipts and disbursements must 425 disclose the amount of receipts by accounts and receipt 426 classifications and the amount of expenses by accounts and 427 expense classifications, including, but not limited to, the 428 following, as applicable: costs for security, professional and 429 management fees and expenses, taxes, costs for recreation 430 facilities, expenses for refuse collection and utility services, 431 expenses for lawn care, costs for building maintenance and 432 repair, insurance costs, administration and salary expenses, and 433 reserves accumulated and expended for capital expenditures, 434 deferred maintenance, and any other category for which the 435 association maintains reserves. 436 (c) An association may prepare, without a meeting of or 437 approval by the unit owners: 438 1. Compiled, reviewed, or audited financial statements, if 439 the association is required to prepare a report of cash receipts 440 and expenditures; 441 2. Reviewed or audited financial statements, if the 442 association is required to prepare compiled financial 443 statements; or 444 3. Audited financial statements if the association is 445 required to prepare reviewed financial statements. 446 (d) If approved by a majority of the voting interests 447 present at a properly called meeting of the association, an 448 association may prepare: 449 1. A report of cash receipts and expenditures in lieu of a 450 compiled, reviewed, or audited financial statement; 451 2. A report of cash receipts and expenditures or a compiled 452 financial statement in lieu of a reviewed or audited financial 453 statement; or 454 3. A report of cash receipts and expenditures, a compiled 455 financial statement, or a reviewed financial statement in lieu 456 of an audited financial statement. 457 458 Such meeting and approval must occur before the end of the 459 fiscal year and is effective only for the fiscal year in which 460 the vote is taken, except that the approval may also be 461 effective for the following fiscal year. If the developer has 462 not turned over control of the association, all unit owners, 463 including the developer, may vote on issues related to the 464 preparation of the association’s financial reports, from the 465 date of incorporation of the association through the end of the 466 second fiscal year after the fiscal year in which the 467 certificate of a surveyor and mapper is recorded pursuant to s. 468 718.104(4)(e) or an instrument that transfers title to a unit in 469 the condominium which is not accompanied by a recorded 470 assignment of developer rights in favor of the grantee of such 471 unit is recorded, whichever occurs first. Thereafter, all unit 472 owners except the developer may vote on such issues until 473 control is turned over to the association by the developer. Any 474 audit or review prepared under this section shall be paid for by 475 the developer if done before turnover of control of the 476 association. An association may not waive the financial 477 reporting requirements of this section for more than 3 478 consecutive years. 479 (e) If the division determines that an association has not 480 mailed or hand delivered to the unit owner a copy of the most 481 recent financial report within 5 business days after receipt of 482 a written request from the unit owner, the unit owner may give 483 notice to the division of the association’s failure to comply. 484 Upon notification, the division shall give notice to the 485 association that the association must mail or hand deliver the 486 copy of the most recent financial report to the unit owner and 487 the division within 5 business days after such notice. Any 488 association that fails to comply with the division’s request may 489 not waive the financial reporting requirement provided in 490 paragraph (d). A financial report received by the division 491 pursuant to this paragraph shall be maintained, and the division 492 shall provide a copy of such report to an association member 493 upon his or her request. 494 Section 2. Paragraphs (d) and (j) of subsection (2) of 495 section 718.112, Florida Statutes, are amended, and paragraph 496 (p) is added to that subsection, to read: 497 718.112 Bylaws.— 498 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the 499 following and, if they do not do so, shall be deemed to include 500 the following: 501 (d) Unit owner meetings.— 502 1. An annual meeting of the unit owners shall be held at 503 the location provided in the association bylaws and, if the 504 bylaws are silent as to the location, the meeting shall be held 505 within 45 miles of the condominium property. However, such 506 distance requirement does not apply to an association governing 507 a timeshare condominium. 508 2. Unless the bylaws provide otherwise, a vacancy on the 509 board caused by the expiration of a director’s term shall be 510 filled by electing a new board member, and the election must be 511 by secret ballot. An election is not required if the number of 512 vacancies equals or exceeds the number of candidates. For 513 purposes of this paragraph, the term “candidate” means an 514 eligible person who has timely submitted the written notice, as 515 described in sub-subparagraph 4.a., of his or her intention to 516 become a candidate. Except in a timeshare or nonresidential 517 condominium, or if the staggered term of a board member does not 518 expire until a later annual meeting, or if all members’ terms 519 would otherwise expire but there are no candidates, the terms of 520 all board members expire at the annual meeting, and such members 521 may stand for reelection unless prohibited by the bylaws.If the522bylaws or articles of incorporation permit terms of no more than5232 years, the associationBoard members may serve 2-year terms if 524 permitted by the bylaws or articles of incorporation. A board 525 member may not serve more than four consecutive 2-year terms, 526 unless approved by an affirmative vote of two-thirds of the 527 total voting interests of the association. If the number of 528 board members whose terms expire at the annual meeting equals or 529 exceeds the number of candidates, the candidates become members 530 of the board effective upon the adjournment of the annual 531 meeting. Unless the bylaws provide otherwise, any remaining 532 vacancies shall be filled by the affirmative vote of the 533 majority of the directors making up the newly constituted board 534 even if the directors constitute less than a quorum or there is 535 only one director. In a residential condominium association of 536 more than 10 units or in a residential condominium association 537 that does not include timeshare units or timeshare interests, 538 coowners of a unit may not serve as members of the board of 539 directors at the same time unless they own more than one unit or 540 unless there are not enough eligible candidates to fill the 541 vacancies on the board at the time of the vacancy. A unit owner 542 in a residential condominium desiring to be a candidate for 543 board membership must comply with sub-subparagraph 4.a. and must 544 be eligible to be a candidate to serve on the board of directors 545 at the time of the deadline for submitting a notice of intent to 546 run in order to have his or her name listed as a proper 547 candidate on the ballot or to serve on the board. A person who 548 has been suspended or removed by the division under this 549 chapter, or who is delinquent in the payment of any monetary 550 obligation due to the association, is not eligible to be a 551 candidate for board membership and may not be listed on the 552 ballot. A person who has been convicted of any felony in this 553 state or in a United States District or Territorial Court, or 554 who has been convicted of any offense in another jurisdiction 555 which would be considered a felony if committed in this state, 556 is not eligible for board membership unless such felon’s civil 557 rights have been restored for at least 5 years as of the date 558 such person seeks election to the board. The validity of an 559 action by the board is not affected if it is later determined 560 that a board member is ineligible for board membership due to 561 having been convicted of a felony. This subparagraph does not 562 limit the term of a member of the board of a nonresidential 563 condominium. 564 3. The bylaws must provide the method of calling meetings 565 of unit owners, including annual meetings. Written notice must 566 include an agenda, must be mailed, hand delivered, or 567 electronically transmitted to each unit owner at least 14 days 568 before the annual meeting, and must be posted in a conspicuous 569 place on the condominium property at least 14 continuous days 570 before the annual meeting. Upon notice to the unit owners, the 571 board shall, by duly adopted rule, designate a specific location 572 on the condominium property or association property where all 573 notices of unit owner meetings shall be posted. This requirement 574 does not apply if there is no condominium property or 575 association property for posting notices. In lieu of, or in 576 addition to, the physical posting of meeting notices, the 577 association may, by reasonable rule, adopt a procedure for 578 conspicuously posting and repeatedly broadcasting the notice and 579 the agenda on a closed-circuit cable television system serving 580 the condominium association. However, if broadcast notice is 581 used in lieu of a notice posted physically on the condominium 582 property, the notice and agenda must be broadcast at least four 583 times every broadcast hour of each day that a posted notice is 584 otherwise required under this section. If broadcast notice is 585 provided, the notice and agenda must be broadcast in a manner 586 and for a sufficient continuous length of time so as to allow an 587 average reader to observe the notice and read and comprehend the 588 entire content of the notice and the agenda. Unless a unit owner 589 waives in writing the right to receive notice of the annual 590 meeting, such notice must be hand delivered, mailed, or 591 electronically transmitted to each unit owner. Notice for 592 meetings and notice for all other purposes must be mailed to 593 each unit owner at the address last furnished to the association 594 by the unit owner, or hand delivered to each unit owner. 595 However, if a unit is owned by more than one person, the 596 association must provide notice to the address that the 597 developer identifies for that purpose and thereafter as one or 598 more of the owners of the unit advise the association in 599 writing, or if no address is given or the owners of the unit do 600 not agree, to the address provided on the deed of record. An 601 officer of the association, or the manager or other person 602 providing notice of the association meeting, must provide an 603 affidavit or United States Postal Service certificate of 604 mailing, to be included in the official records of the 605 association affirming that the notice was mailed or hand 606 delivered in accordance with this provision. 607 4. The members of the board of a residential condominium 608 shall be elected by written ballot or voting machine. Proxies 609 may not be used in electing the board in general elections or 610 elections to fill vacancies caused by recall, resignation, or 611 otherwise, unless otherwise provided in this chapter. This 612 subparagraph does not apply to an association governing a 613 timeshare condominium. 614 a. At least 60 days before a scheduled election, the 615 association shall mail, deliver, or electronically transmit, by 616 separate association mailing or included in another association 617 mailing, delivery, or transmission, including regularly 618 published newsletters, to each unit owner entitled to a vote, a 619 first notice of the date of the election. A unit owner or other 620 eligible person desiring to be a candidate for the board must 621 give written notice of his or her intent to be a candidate to 622 the association at least 40 days before a scheduled election. 623 Together with the written notice and agenda as set forth in 624 subparagraph 3., the association shall mail, deliver, or 625 electronically transmit a second notice of the election to all 626 unit owners entitled to vote, together with a ballot that lists 627 all candidates. Upon request of a candidate, an information 628 sheet, no larger than 8 1/2 inches by 11 inches, which must be 629 furnished by the candidate at least 35 days before the election, 630 must be included with the mailing, delivery, or transmission of 631 the ballot, with the costs of mailing, delivery, or electronic 632 transmission and copying to be borne by the association. The 633 association is not liable for the contents of the information 634 sheets prepared by the candidates. In order to reduce costs, the 635 association may print or duplicate the information sheets on 636 both sides of the paper. The division shall by rule establish 637 voting procedures consistent with this sub-subparagraph, 638 including rules establishing procedures for giving notice by 639 electronic transmission and rules providing for the secrecy of 640 ballots. Elections shall be decided by a plurality of ballots 641 cast. There is no quorum requirement; however, at least 20 642 percent of the eligible voters must cast a ballot in order to 643 have a valid election. A unit owner may not permit any other 644 person to vote his or her ballot, and any ballots improperly 645 cast are invalid. A unit owner who violates this provision may 646 be fined by the association in accordance with s. 718.303. A 647 unit owner who needs assistance in casting the ballot for the 648 reasons stated in s. 101.051 may obtain such assistance. The 649 regular election must occur on the date of the annual meeting. 650 Notwithstanding this sub-subparagraph, an election is not 651 required unless more candidates file notices of intent to run or 652 are nominated than board vacancies exist. 653 b. Within 90 days after being elected or appointed to the 654 board of an association of a residential condominium, each newly 655 elected or appointed director shall certify in writing to the 656 secretary of the association that he or she has read the 657 association’s declaration of condominium, articles of 658 incorporation, bylaws, and current written policies; that he or 659 she will work to uphold such documents and policies to the best 660 of his or her ability; and that he or she will faithfully 661 discharge his or her fiduciary responsibility to the 662 association’s members. In lieu of this written certification, 663 within 90 days after being elected or appointed to the board, 664 the newly elected or appointed director may submit a certificate 665 of having satisfactorily completed the educational curriculum 666 administered by a division-approved condominium education 667 provider within 1 year before or 90 days after the date of 668 election or appointment. The written certification or 669 educational certificate is valid and does not have to be 670 resubmitted as long as the director serves on the board without 671 interruption. A director of an association of a residential 672 condominium who fails to timely file the written certification 673 or educational certificate is suspended from service on the 674 board until he or she complies with this sub-subparagraph. The 675 board may temporarily fill the vacancy during the period of 676 suspension. The secretary shall cause the association to retain 677 a director’s written certification or educational certificate 678 for inspection by the members for 5 years after a director’s 679 election or the duration of the director’s uninterrupted tenure, 680 whichever is longer. Failure to have such written certification 681 or educational certificate on file does not affect the validity 682 of any board action. 683 c. Any challenge to the election process must be commenced 684 within 60 days after the election results are announced. 685 5. Any approval by unit owners called for by this chapter 686 or the applicable declaration or bylaws, including, but not 687 limited to, the approval requirement in s. 718.111(8), must be 688 made at a duly noticed meeting of unit owners and is subject to 689 all requirements of this chapter or the applicable condominium 690 documents relating to unit owner decisionmaking, except that 691 unit owners may take action by written agreement, without 692 meetings, on matters for which action by written agreement 693 without meetings is expressly allowed by the applicable bylaws 694 or declaration or any law that provides for such action. 695 6. Unit owners may waive notice of specific meetings if 696 allowed by the applicable bylaws or declaration or any law. 697 Notice of meetings of the board of administration, unit owner 698 meetings, except unit owner meetings called to recall board 699 members under paragraph (j), and committee meetings may be given 700 by electronic transmission to unit owners who consent to receive 701 notice by electronic transmission. 702 7. Unit owners have the right to participate in meetings of 703 unit owners with reference to all designated agenda items. 704 However, the association may adopt reasonable rules governing 705 the frequency, duration, and manner of unit owner participation. 706 8. A unit owner may tape record or videotape a meeting of 707 the unit owners subject to reasonable rules adopted by the 708 division. 709 9. Unless otherwise provided in the bylaws, any vacancy 710 occurring on the board before the expiration of a term may be 711 filled by the affirmative vote of the majority of the remaining 712 directors, even if the remaining directors constitute less than 713 a quorum, or by the sole remaining director. In the alternative, 714 a board may hold an election to fill the vacancy, in which case 715 the election procedures must conform to sub-subparagraph 4.a. 716 unless the association governs 10 units or fewer and has opted 717 out of the statutory election process, in which case the bylaws 718 of the association control. Unless otherwise provided in the 719 bylaws, a board member appointed or elected under this section 720 shall fill the vacancy for the unexpired term of the seat being 721 filled. Filling vacancies created by recall is governed by 722 paragraph (j) and rules adopted by the division. 723 10. This chapter does not limit the use of general or 724 limited proxies, require the use of general or limited proxies, 725 or require the use of a written ballot or voting machine for any 726 agenda item or election at any meeting of a timeshare 727 condominium association or nonresidential condominium 728 association. 729 730 Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an 731 association of 10 or fewer units may, by affirmative vote of a 732 majority of the total voting interests, provide for different 733 voting and election procedures in its bylaws, which may be by a 734 proxy specifically delineating the different voting and election 735 procedures. The different voting and election procedures may 736 provide for elections to be conducted by limited or general 737 proxy. 738 (j) Recall of board members.—Subject to s. 718.301, any 739 member of the board of administration may be recalled and 740 removed from office with or without cause by the vote or 741 agreement in writing by a majority of all the voting interests. 742 A special meeting of the unit owners to recall a member or 743 members of the board of administration may be called by 10 744 percent of the voting interests giving notice of the meeting as 745 required for a meeting of unit owners, and the notice shall 746 state the purpose of the meeting. Electronic transmission may 747 not be used as a method of giving notice of a meeting called in 748 whole or in part for this purpose. 749 1. If the recall is approved by a majority of all voting 750 interests by a vote at a meeting, the recall will be effective 751 as provided in this paragraph. The board shall duly notice and 752 hold a board meeting within 5 full business days after the 753 adjournment of the unit owner meeting to recall one or more 754 board members.At the meeting, the board shall either certify755the recall, in which caseSuch member or members shall be 756 recalled effective immediately and shall turn over to the board 757 within 105full business days after the vote any and all 758 records and property of the association in their possession, or759shall proceed as set forth in subparagraph 3. 760 2. If the proposed recall is by an agreement in writing by 761 a majority of all voting interests, the agreement in writing or 762 a copy thereof shall be served on the association by certified 763 mail or by personal service in the manner authorized by chapter 764 48 and the Florida Rules of Civil Procedure. The board of 765 administration shall duly notice and hold a meeting of the board 766 within 5 full business days after receipt of the agreement in 767 writing.At the meeting, the board shall either certify the768written agreement to recall a member or members of the board, in769which case such member or members shall be recalled effective770immediately and shall turn over to the board within 5 full771business days any and all records and property of the772association in their possession, or proceed as described in773subparagraph 3.7743.If the board determines not to certify the written775agreement to recall a member or members of the board, or does776not certify the recall by a vote at a meeting, The board shall,777within 5 full business days after the meeting, file with the778division a petition for arbitration pursuant to the procedures779in s. 718.1255. For the purposes of this section, the unit780owners who voted at the meeting or who executed the agreement in781writing shall constitute one party under the petition for782arbitration. If the arbitrator certifies the recall as to any783member or members of the board, the recall will be effective784upon mailing of the final order of arbitration to the785association. If the association fails to comply with the order786of the arbitrator, the division may take action pursuant to s.787718.501. Any member or members so recalled shall deliver to the788board any and all records of the association in their possession789within 5 full business days after the effective date of the790recall.791 3.4.If the board fails to duly notice and hold a board 792 meeting within 5 full business days after service of an 793 agreement in writing or within 5 full business days after the 794 adjournment of the unit owner recall meeting, the recall shall 795 be deemed effective and the board members so recalled shall 796immediatelyturn over to the board within 10 full business days 797 after the vote any and all records and property of the 798 association. 799 4.5.If the board fails to duly notice and hold the 800 required meeting or fails to file the required petition, the 801 unit owner representative may file a petition pursuant to s. 802 718.1255 challenging the board’s failure to act. The petition 803 must be filed within 60 days after the expiration of the 804 applicable 5-full-business-day period. The review of a petition 805 under this subparagraph is limited to the sufficiency of service 806 on the board and the facial validity of the written agreement or 807 ballots filed. 808 5.6.If a vacancy occurs on the board as a result of a 809 recall or removal and less than a majority of the board members 810 are removed, the vacancy may be filled by the affirmative vote 811 of a majority of the remaining directors, notwithstanding any 812 provision to the contrary contained in this subsection. If 813 vacancies occur on the board as a result of a recall and a 814 majority or more of the board members are removed, the vacancies 815 shall be filled in accordance with procedural rules to be 816 adopted by the division, which rules need not be consistent with 817 this subsection. The rules must provide procedures governing the 818 conduct of the recall election as well as the operation of the 819 association during the period after a recall but before the 820 recall election. 821 6.7.A board member who has been recalled may file a 822 petition pursuant to s. 718.1255 challenging the validity of the 823 recall. The petition must be filed within 60 days after the 824 recallis deemed certified. The association and the unit owner 825 representative shall be named as the respondents. 826 7.8.The division may not accept for filing a recall 827 petition, whether filed pursuant to subparagraph 1., 828 subparagraph 2., subparagraph 4.5., or subparagraph 6.7. and829regardless of whether the recall was certified,when there are 830 60 or fewer days until the scheduled reelection of the board 831 member sought to be recalled or when 60 or fewer days have 832 elapsed since the election of the board member sought to be 833 recalled. 834 (p) Service providers; conflicts of interest.—An 835 association that is not a timeshare condominium association may 836 not employ or contract with any service provider that is owned 837 or operated by a board member or with any person who has a 838 financial relationship with a board member or officer. 839 Section 3. Subsection (4) of section 718.1255, Florida 840 Statutes, is amended to read: 841 718.1255 Alternative dispute resolution; voluntary 842 mediation; mandatory nonbinding arbitration; legislative 843 findings.— 844 (4) MANDATORY NONBINDING ARBITRATION AND MEDIATION OF 845 DISPUTES.—The Division of Florida Condominiums, Timeshares, and 846 Mobile Homes of the Department of Business and Professional 847 Regulation mayshallemploy full-time attorneys to act as 848 arbitrators to conduct the arbitration hearings provided by this 849 chapter. The division may also certify attorneys who are not 850 employed by the division to act as arbitrators to conduct the 851 arbitration hearings provided by this chaptersection. No person 852 may be employed by the department as a full-time arbitrator 853 unless he or she is a member in good standing of The Florida 854 Bar. A person may only be certified by the division to act as an 855 arbitrator if he or she has been a member in good standing of 856 The Florida Bar for at least 5 years and has mediated or 857 arbitrated at least 10 disputes involving condominiums in this 858 state during the 3 years immediately preceding the date of 859 application, mediated or arbitrated at least 30 disputes in any 860 subject area in this state during the 3 years immediately 861 preceding the date of application, or attained board 862 certification in real estate law or condominium and planned 863 development law from The Florida Bar. Arbitrator certification 864 is valid for 1 year. An arbitrator who does not maintain the 865 minimum qualifications for initial certification may not have 866 his or her certification renewed. The department may not enter 867 into a legal services contract for an arbitration hearing under 868 this chapter with an attorney who is not a certified arbitrator 869 unless a certified arbitrator is not available within 50 miles 870 of the dispute. The department shall adopt rules of procedure to 871 govern such arbitration hearings including mediation incident 872 thereto. The decision of an arbitrator shall be final; however, 873 a decision shall not be deemed final agency action. Nothing in 874 this provision shall be construed to foreclose parties from 875 proceeding in a trial de novo unless the parties have agreed 876 that the arbitration is binding. If judicial proceedings are 877 initiated, the final decision of the arbitrator shall be 878 admissible in evidence in the trial de novo. 879 (a) Prior to the institution of court litigation, a party 880 to a dispute shall petition the division for nonbinding 881 arbitration. The petition must be accompanied by a filing fee in 882 the amount of $50. Filing fees collected under this section must 883 be used to defray the expenses of the alternative dispute 884 resolution program. 885 (b) The petition must recite, and have attached thereto, 886 supporting proof that the petitioner gave the respondents: 887 1. Advance written notice of the specific nature of the 888 dispute; 889 2. A demand for relief, and a reasonable opportunity to 890 comply or to provide the relief; and 891 3. Notice of the intention to file an arbitration petition 892 or other legal action in the absence of a resolution of the 893 dispute. 894 895 Failure to include the allegations or proof of compliance with 896 these prerequisites requires dismissal of the petition without 897 prejudice. 898 (c) Upon receipt, the petition shall be promptly reviewed 899 by the division to determine the existence of a dispute and 900 compliance with the requirements of paragraphs (a) and (b). If 901 emergency relief is required and is not available through 902 arbitration, a motion to stay the arbitration may be filed. The 903 motion must be accompanied by a verified petition alleging facts 904 that, if proven, would support entry of a temporary injunction, 905 and if an appropriate motion and supporting papers are filed, 906 the division may abate the arbitration pending a court hearing 907 and disposition of a motion for temporary injunction. 908 (d) Upon determination by the division that a dispute 909 exists and that the petition substantially meets the 910 requirements of paragraphs (a) and (b) and any other applicable 911 rules, the division shall assign or enter into a contract with 912 an arbitrator and serve a copy of the petitionshall be served913by the divisionupon all respondents. The arbitrator shall 914 conduct a hearing within 30 days after being assigned or 915 entering into a contract unless the petition is withdrawn or a 916 continuance is granted for good cause shown. 917 (e) Before or after the filing of the respondents’ answer 918 to the petition, any party may request that the arbitrator refer 919 the case to mediation under this section and any rules adopted 920 by the division. Upon receipt of a request for mediation, the 921 division shall promptly contact the parties to determine if 922 there is agreement that mediation would be appropriate. If all 923 parties agree, the dispute must be referred to mediation. 924 Notwithstanding a lack of an agreement by all parties, the 925 arbitrator may refer a dispute to mediation at any time. 926 (f) Upon referral of a case to mediation, the parties must 927 select a mutually acceptable mediator. To assist in the 928 selection, the arbitrator shall provide the parties with a list 929 of both volunteer and paid mediators that have been certified by 930 the division under s. 718.501. If the parties are unable to 931 agree on a mediator within the time allowed by the arbitrator, 932 the arbitrator shall appoint a mediator from the list of 933 certified mediators. If a case is referred to mediation, the 934 parties shall attend a mediation conference, as scheduled by the 935 parties and the mediator. If any party fails to attend a duly 936 noticed mediation conference, without the permission or approval 937 of the arbitrator or mediator, the arbitrator must impose 938 sanctions against the party, including the striking of any 939 pleadings filed, the entry of an order of dismissal or default 940 if appropriate, and the award of costs and attorneyattorneys’941 fees incurred by the other parties. Unless otherwise agreed to 942 by the parties or as provided by order of the arbitrator, a 943 party is deemed to have appeared at a mediation conference by 944 the physical presence of the party or its representative having 945 full authority to settle without further consultation, provided 946 that an association may comply by having one or more 947 representatives present with full authority to negotiate a 948 settlement and recommend that the board of administration ratify 949 and approve such a settlement within 5 days from the date of the 950 mediation conference. The parties shall share equally the 951 expense of mediation, unless they agree otherwise. 952 (g) The purpose of mediation as provided for by this 953 section is to present the parties with an opportunity to resolve 954 the underlying dispute in good faith, and with a minimum 955 expenditure of time and resources. 956 (h) Mediation proceedings must generally be conducted in 957 accordance with the Florida Rules of Civil Procedure, and these 958 proceedings are privileged and confidential to the same extent 959 as court-ordered mediation. Persons who are not parties to the 960 dispute are not allowed to attend the mediation conference 961 without the consent of all parties, with the exception of 962 counsel for the parties and corporate representatives designated 963 to appear for a party. If the mediator declares an impasse after 964 a mediation conference has been held, the arbitration proceeding 965 terminates, unless all parties agree in writing to continue the 966 arbitration proceeding, in which case the arbitrator’s decision 967 shall be binding or nonbinding, as agreed upon by the parties; 968 in the arbitration proceeding, the arbitrator shall not consider 969 any evidence relating to the unsuccessful mediation except in a 970 proceeding to impose sanctions for failure to appear at the 971 mediation conference. If the parties do not agree to continue 972 arbitration, the arbitrator shall enter an order of dismissal, 973 and either party may institute a suit in a court of competent 974 jurisdiction. The parties may seek to recover any costs and 975 attorneyattorneys’fees incurred in connection with arbitration 976 and mediation proceedings under this section as part of the 977 costs and fees that may be recovered by the prevailing party in 978 any subsequent litigation. 979 (i) Arbitration shall be conducted according to rules 980 adopted by the division. The filing of a petition for 981 arbitration shall toll the applicable statute of limitations. 982 (j) At the request of any party to the arbitration, the 983 arbitrator shall issue subpoenas for the attendance of witnesses 984 and the production of books, records, documents, and other 985 evidence and any party on whose behalf a subpoena is issued may 986 apply to the court for orders compelling such attendance and 987 production. Subpoenas shall be served and shall be enforceable 988 in the manner provided by the Florida Rules of Civil Procedure. 989 Discovery may, in the discretion of the arbitrator, be permitted 990 in the manner provided by the Florida Rules of Civil Procedure. 991 Rules adopted by the division may authorize any reasonable 992 sanctions except contempt for a violation of the arbitration 993 procedural rules of the division or for the failure of a party 994 to comply with a reasonable nonfinal order issued by an 995 arbitrator which is not under judicial review. 996 (k) The arbitration decision shall be rendered within 30 997 days after the hearing and presented to the parties in writing. 998 An arbitration decision is final in those disputes in which the 999 parties have agreed to be bound. An arbitration decision is also 1000 final if a complaint for a trial de novo is not filed in a court 1001 of competent jurisdiction in which the condominium is located 1002 within 30 days. The right to file for a trial de novo entitles 1003 the parties to file a complaint in the appropriate trial court 1004 for a judicial resolution of the dispute. The prevailing party 1005 in an arbitration proceeding shall be awarded the costs of the 1006 arbitration and reasonable attorneyattorney’sfees in an amount 1007 determined by the arbitrator. Such an award shall include the 1008 costs and reasonable attorneyattorney’sfees incurred in the 1009 arbitration proceeding as well as the costs and reasonable 1010 attorneyattorney’sfees incurred in preparing for and attending 1011 any scheduled mediation. An arbitrator’s failure to render a 1012 written decision within 30 days after the hearing may result in 1013 the cancellation of his or her arbitration certification. 1014 (l) The party who files a complaint for a trial de novo 1015 shall be assessed the other party’s arbitration costs, court 1016 costs, and other reasonable costs, including attorneyattorney’s1017 fees, investigation expenses, and expenses for expert or other 1018 testimony or evidence incurred after the arbitration hearing if 1019 the judgment upon the trial de novo is not more favorable than 1020 the arbitration decision. If the judgment is more favorable, the 1021 party who filed a complaint for trial de novo shall be awarded 1022 reasonable court costs and attorneyattorney’sfees. 1023 (m) Any party to an arbitration proceeding may enforce an 1024 arbitration award by filing a petition in a court of competent 1025 jurisdiction in which the condominium is located. A petition may 1026 not be granted unless the time for appeal by the filing of a 1027 complaint for trial de novo has expired. If a complaint for a 1028 trial de novo has been filed, a petition may not be granted with 1029 respect to an arbitration award that has been stayed. If the 1030 petition for enforcement is granted, the petitioner shall 1031 recover reasonable attorneyattorney’sfees and costs incurred 1032 in enforcing the arbitration award. A mediation settlement may 1033 also be enforced through the county or circuit court, as 1034 applicable, and any costs and fees incurred in the enforcement 1035 of a settlement agreement reached at mediation must be awarded 1036 to the prevailing party in any enforcement action. 1037 Section 4. Section 718.129, Florida Statutes, is created to 1038 read: 1039 718.129 Fraudulent voting activities related to association 1040 elections; penalties.—The following acts constitute fraudulent 1041 voting activities related to association elections: 1042 (1) A person who willfully, knowingly, and falsely swears 1043 or affirms to an oath or affirmation, or procures another person 1044 to willfully, knowingly, and falsely swear or affirm to an oath 1045 or affirmation, in connection with or arising out of voting or 1046 casting a ballot in an association election commits a felony of 1047 the third degree, punishable as provided in s. 775.082, s. 1048 775.083, or s. 775.084. 1049 (2) A person who willfully and knowingly perpetrates or 1050 attempts to perpetrate, or willfully and knowingly aids another 1051 person in perpetrating or attempting to perpetrate, fraud in 1052 connection with or arising out of a vote or ballot cast, to be 1053 cast, or attempted to be cast by an elector in an association 1054 election commits a felony of the third degree, punishable as 1055 provided in s. 775.082, s. 775.083, or s. 775.084. 1056 (3) A person who willfully, knowingly, and fraudulently 1057 changes or attempts to change a vote or ballot cast, to be cast, 1058 or attempted to be cast by an elector in an association election 1059 to prevent such elector from voting or casting a ballot as he or 1060 she intended in such election commits a felony of the third 1061 degree, punishable as provided in s. 775.082, s. 775.083, or s. 1062 775.084. 1063 (4)(a) A person who willfully and knowingly aids or advises 1064 another person in committing a violation of this section shall 1065 be punished as if he or she had committed the violation. 1066 (b) A person who willfully and knowingly agrees, conspires, 1067 combines, or confederates with another person in committing a 1068 violation of this section shall be punished as if he or she had 1069 committed the violation. 1070 (c) A person who willfully and knowingly aids or advises a 1071 person who has committed a violation of this section in avoiding 1072 or escaping detection, arrest, trial, or punishment shall be 1073 punished as if he or she had committed the violation. This 1074 paragraph does not prohibit a member of The Florida Bar from 1075 giving legal advice to a client. 1076 Section 5. Subsection (5) is added to section 718.3025, 1077 Florida Statutes, to read: 1078 718.3025 Agreements for operation, maintenance, or 1079 management of condominiums; specific requirements.— 1080 (5) A party contracting to provide maintenance or 1081 management services to an association managing a residential 1082 condominium after transfer of control of the association, as 1083 provided in s. 718.301, which is not a timeshare condominium 1084 association, or an officer or board member of such party, may 1085 not purchase a unit at a foreclosure sale resulting from the 1086 association’s foreclosure of association lien for unpaid 1087 assessments or take a deed in lieu of foreclosure. If 50 percent 1088 or more of the units in the condominium are owned by a party 1089 contracting to provide maintenance or management services to an 1090 association managing a residential condominium after transfer of 1091 control of the association, as provided in s. 718.301, which is 1092 not a timeshare condominium association, or by an officer or 1093 board member of such party, the contract with the party 1094 providing maintenance or management services may be cancelled by 1095 a majority vote of the unit owners other than the contracting 1096 party or an officer or board member of such party. 1097 Section 6. Section 718.3027, Florida Statutes, is created 1098 to read: 1099 718.3027 Conflicts of interest.— 1100 (1) Directors and officers of a board of an association 1101 that is not a timeshare condominium association, and the 1102 relatives of such directors and officers, must disclose to the 1103 board any activity that may reasonably be construed to be a 1104 conflict of interest. A rebuttable presumption of a conflict of 1105 interest exists if any of the following occurs without prior 1106 notice, as required in subsection (4): 1107 (a) Any director, officer, or relative of any director or 1108 officer enters into a contract for goods or services with the 1109 association. 1110 (b) Any director, officer, or relative of any director or 1111 officer holds an interest in a corporation, limited liability 1112 corporation, partnership, limited liability partnership, or 1113 other business entity that conducts business with the 1114 association or proposes to enter into a contract or other 1115 transaction with the association. 1116 (2) If any director, officer, or relative of any director 1117 or officer proposes to engage in an activity that is a conflict 1118 of interest, as described in subsection (1), the proposed 1119 activity must be listed on, and all contracts and transactional 1120 documents related to the proposed activity must be attached to, 1121 the meeting agenda. If the board votes against the proposed 1122 activity, the director, officer, or relative must notify the 1123 board in writing of his or her intention not to pursue the 1124 proposed activity, or the director or officer shall withdraw 1125 from office. If the board finds that any officer or director has 1126 violated this subsection, the officer or director shall be 1127 deemed removed from office. The vacancy shall be filled 1128 according to general law. 1129 (3) Any director, officer, or relative of any director or 1130 officer who is a party to, or has an interest in, an activity 1131 that is a possible conflict of interest, as described in 1132 subsection (1), may attend the meeting at which the activity is 1133 considered by the board, and is authorized to make a 1134 presentation to the board regarding the activity. After the 1135 presentation, the director, officer, or relative must leave the 1136 meeting during the discussion of, and the vote on, the activity. 1137 Any director or officer who is a party to, or has an interest 1138 in, the activity must recuse himself or herself from the vote. 1139 (4) The board must provide notice to unit owners of a 1140 possible conflict of interest, as described in subsection (1), 1141 in accordance with the procedures in s. 718.112(2)(c). All 1142 contracts and transactional documents related to the possible 1143 conflict of interest must be attached to, and made available 1144 with, the meeting agenda. 1145 (5) Any contract entered into between any director, 1146 officer, or relative of any director or officer and the 1147 association which has not been properly disclosed as a conflict 1148 of interest or potential conflict of interest as required by s. 1149 718.111(12)(g) is voidable and terminates upon the filing of a 1150 written notice terminating the contract with the board of 1151 directors which contains the consent of at least 20 percent of 1152 the voting interests of the association. 1153 Section 7. Subsection (5) of section 718.303, Florida 1154 Statutes, is amended, and subsection (8) is added to that 1155 section, to read: 1156 718.303 Obligations of owners and occupants; remedies.— 1157 (5) An association may suspend the voting rights of a unit 1158 owner or member due to nonpayment of any fee, fine, or other 1159 monetary obligation due to the association which is more than 1160 $1,000 and more than 90 days delinquent. Proof of such 1161 obligation must be provided to the unit owner or member 30 days 1162 before such suspension takes effect. A voting interest or 1163 consent right allocated to a unit owner or member which has been 1164 suspended by the association shall be subtracted from the total 1165 number of voting interests in the association, which shall be 1166 reduced by the number of suspended voting interests when 1167 calculating the total percentage or number of all voting 1168 interests available to take or approve any action, and the 1169 suspended voting interests shall not be considered for any 1170 purpose, including, but not limited to, the percentage or number 1171 of voting interests necessary to constitute a quorum, the 1172 percentage or number of voting interests required to conduct an 1173 election, or the percentage or number of voting interests 1174 required to approve an action under this chapter or pursuant to 1175 the declaration, articles of incorporation, or bylaws. The 1176 suspension ends upon full payment of all obligations currently 1177 due or overdue the association. The notice and hearing 1178 requirements under subsection (3) do not apply to a suspension 1179 imposed under this subsection. 1180 (8) A receiver may not exercise voting rights of any unit 1181 owner whose unit is placed in receivership for the benefit of 1182 the association pursuant to this chapter. 1183 Section 8. Subsection (5) of section 718.5012, Florida 1184 Statutes, is amended to read: 1185 718.5012 Ombudsman; powers and duties.—The ombudsman shall 1186 have the powers that are necessary to carry out the duties of 1187 his or her office, including the following specific powers: 1188 (5) To monitor and review procedures and disputes 1189 concerning condominium elections or meetings, including, but not 1190 limited to, recommending that the division pursue enforcement 1191 action in any manner where there is reasonable cause to believe 1192 that election misconduct has occurred and reviewing secret 1193 ballots cast at a vote of the association. 1194 Section 9. Section 718.71, Florida Statutes, is created to 1195 read: 1196 718.71 Financial reporting.—An association shall provide an 1197 annual report to the department containing the names of all of 1198 the financial institutions with which it maintains accounts, and 1199 a copy of such report may be obtained from the department upon 1200 written request of any association member. 1201 Section 10. This act shall take effect July 1, 2017.