Florida Senate - 2013                CS for CS for CS for SB 436
       
       
       
       By the Committees on Appropriations; Judiciary; and Regulated
       Industries; and Senators Altman and Sachs
       
       
       
       576-04691-13                                           2013436c3
    1                        A bill to be entitled                      
    2         An act relating to residential properties; amending s.
    3         399.02, F.S.; exempting certain elevators from
    4         specific code update requirements; amending s.
    5         718.111, F.S.; revising requirements for an
    6         association’s approval of land purchases and
    7         recreational leases; revising reconstruction costs for
    8         which unit owners are responsible and authorizing the
    9         costs to be collected in a specified manner; requiring
   10         an association to repair or replace as a common
   11         expense certain condominium property damaged by an
   12         insurable event; requiring an association to allow a
   13         member or the member’s representative to use certain
   14         portable devices to make electronic copies of
   15         association records; prohibiting the association from
   16         charging the member or representative for using the
   17         portable device; authorizing a condominium association
   18         to print and distribute a member directory under
   19         certain conditions; revising requirements for the
   20         preparation of an association’s annual financial
   21         statement; amending s. 718.112, F.S.; revising terms
   22         of members of an association’s board of administrators
   23         and revising eligibility criteria for candidates;
   24         revising condominium unit owner meeting notice
   25         requirements; providing for nonapplicability to
   26         associations governing timeshare condominiums of
   27         certain provisions relating to elections of board
   28         members; revising recordkeeping requirements of a
   29         condominium association board; requiring commencement
   30         of challenges to an election within a specified
   31         period; providing requirements for challenging the
   32         failure of a board to duly notice and hold the
   33         required board meeting or to file the required
   34         petition for a recall; providing requirements for
   35         recalled board members to challenge the recall;
   36         prohibiting the Division of Florida Condominiums,
   37         Timeshares, and Mobile Homes of the Department of
   38         Business and Professional Regulation from accepting
   39         recall petitions for filing under certain
   40         circumstances; amending s. 718.113, F.S.; providing
   41         requirements for a condominium association board
   42         relating to the installation of hurricane shutters,
   43         impact glass, code-compliant windows or doors, and
   44         other types of code-compliant hurricane protection
   45         under certain circumstances; amending s. 718.115,
   46         F.S.; conforming provisions to changes made by the
   47         act; amending s. 718.303, F.S.; revising provisions
   48         relating to imposing remedies against a noncompliant
   49         or delinquent condominium unit owner or member;
   50         amending s. 718.403, F.S.; providing requirements for
   51         the completion of phase condominiums; creating s.
   52         718.406, F.S.; providing definitions; providing
   53         requirements for condominiums created within
   54         condominium parcels; providing for the establishment
   55         of primary condominium and secondary condominium
   56         units; providing requirements for association
   57         declarations; authorizing a primary condominium
   58         association to provide insurance and adopt hurricane
   59         shutter or hurricane protection specifications under
   60         certain conditions; providing requirements relating to
   61         assessments; providing for resolution of conflicts
   62         between primary condominium declarations and secondary
   63         condominium declarations; providing requirements
   64         relating to common expenses due the primary
   65         condominium association; amending s. 718.5011, F.S.;
   66         revising the restriction on officers and full-time
   67         employees of the ombudsman from engaging in other
   68         businesses or professions; amending s. 719.104, F.S.;
   69         providing requirements for the maintenance of the
   70         official records of the association; authorizing
   71         records to be made available to unit owners in an
   72         electronic format; providing a civil penalty for the
   73         denial of a request to view records; requiring an
   74         association to allow a member or the member’s
   75         authorized representative to use certain portable
   76         devices to make electronic copies of association
   77         records; prohibiting the association from charging the
   78         member or authorized representative for using the
   79         portable device; authorizing a cooperative association
   80         to print and distribute a member directory under
   81         certain conditions; specifying additional records that
   82         are not accessible to unit owners; amending s.
   83         719.1055, F.S.; revising provisions relating to the
   84         amendment of cooperative documents; providing
   85         legislative findings and a finding of compelling state
   86         interest; providing criteria for consent or joinder to
   87         an amendment; requiring notice regarding proposed
   88         amendments to mortgagees; providing criteria for
   89         notification; providing for voiding certain
   90         amendments; amending s. 719.106, F.S.; revising
   91         applicability of certain board of administration
   92         meeting requirements; requiring commencement of
   93         challenges to an election within a specified period;
   94         specifying certification or educational requirements
   95         for a newly elected or appointed cooperative board
   96         director; providing requirements for challenging the
   97         failure of a board to duly notice and hold the
   98         required board meeting or to file the required
   99         petition for a recall; providing requirements for
  100         recalled board members to challenge the recall;
  101         prohibiting the division from accepting recall
  102         petitions for filing under certain circumstances;
  103         providing education requirements for board members;
  104         amending s. 719.303, F.S.; revising provisions
  105         relating to imposing remedies against a noncompliant
  106         or delinquent cooperative unit owner or member;
  107         amending s. 719.501, F.S.; authorizing the division to
  108         provide training and educational programs for
  109         cooperative association board members and unit owners;
  110         amending s. 720.303, F.S.; requiring an association to
  111         allow a member or the member’s representative to use
  112         certain portable devices to make electronic copies of
  113         association records; prohibiting the association from
  114         charging the member or representative for using the
  115         portable device; authorizing a homeowners’ association
  116         to print and distribute a member directory under
  117         certain conditions; revising requirements for the
  118         preparation of an association’s annual financial
  119         statement; revising the types of records that are not
  120         accessible to homeowners’ association members and
  121         parcel owners; providing requirements for challenging
  122         the failure of a board to duly notice and hold the
  123         required board meeting or to file the required
  124         petition for a recall; providing requirements for
  125         recalled board members to challenge the recall;
  126         prohibiting the division from accepting recall
  127         petitions for filing under certain circumstances;
  128         amending s. 720.305, F.S.; revising provisions
  129         relating to imposing remedies against a noncompliant
  130         or delinquent homeowners’ association member and
  131         parcel owner; amending s. 720.306, F.S.; revising
  132         provisions relating to the amendment of homeowners’
  133         association declarations; providing legislative
  134         findings and a finding of compelling state interest;
  135         providing criteria for consent or joinder to an
  136         amendment; requiring notice to mortgagees regarding
  137         proposed amendments; providing criteria for
  138         notification; providing for voiding certain
  139         amendments; revising provisions relating to right to
  140         speak at a homeowners’ association meeting; requiring
  141         commencement of challenges to an election within a
  142         specified period; providing an effective date.
  143  
  144  Be It Enacted by the Legislature of the State of Florida:
  145  
  146         Section 1. Subsection (9) of section 399.02, Florida
  147  Statutes, is amended to read:
  148         399.02 General requirements.—
  149         (9) Updates to the Safety Code for Existing Elevators and
  150  Escalators, ASME A17.1 and A17.3, which require Phase II
  151  Firefighters’ Service on elevators may not be enforced until
  152  July 1, 2015, or until the elevator is replaced or requires
  153  major modification, whichever occurs first, on elevators in
  154  condominiums or multifamily residential buildings, including
  155  those that are part of a continuing care facility licensed under
  156  chapter 651, or similar retirement community with apartments,
  157  having a certificate of occupancy by the local building
  158  authority that was issued before July 1, 2008. This exception
  159  does not prevent an elevator owner from requesting a variance
  160  from the applicable codes before or after July 1, 2015. This
  161  subsection does not prohibit the division from granting
  162  variances pursuant to s. 120.542 and subsection (8). The
  163  division shall adopt rules to administer this subsection.
  164         Section 2. Subsection (8), paragraphs (g) and (j) of
  165  subsection (11), paragraph (c) of subsection (12), and
  166  paragraphs (a) and (b) of subsection (13) of section 718.111,
  167  Florida Statutes, are amended to read:
  168         718.111 The association.—
  169         (8) PURCHASE OF LEASES.—The association has the power to
  170  purchase any land or recreation lease, subject to the same
  171  manner of approval as in s. 718.114 for the acquisition of
  172  leaseholds upon the approval of such voting interest as is
  173  required by the declaration. If the declaration makes no
  174  provision for acquisition of the land or recreation lease, the
  175  vote required shall be that required to amend the declaration to
  176  permit the acquisition.
  177         (11) INSURANCE.—In order to protect the safety, health, and
  178  welfare of the people of the State of Florida and to ensure
  179  consistency in the provision of insurance coverage to
  180  condominiums and their unit owners, this subsection applies to
  181  every residential condominium in the state, regardless of the
  182  date of its declaration of condominium. It is the intent of the
  183  Legislature to encourage lower or stable insurance premiums for
  184  associations described in this subsection.
  185         (g) A condominium unit owner’s policy must conform to the
  186  requirements of s. 627.714.
  187         1. All reconstruction work after a property loss must be
  188  undertaken by the association except as otherwise authorized in
  189  this section. A unit owner may undertake reconstruction work on
  190  portions of the unit with the prior written consent of the board
  191  of administration. However, such work may be conditioned upon
  192  the approval of the repair methods, the qualifications of the
  193  proposed contractor, or the contract that is used for that
  194  purpose. A unit owner must obtain all required governmental
  195  permits and approvals before commencing reconstruction.
  196         2. Unit owners are responsible for the cost of
  197  reconstruction of any portions of the condominium property for
  198  which the unit owner is required to carry property insurance, or
  199  for which the unit owner is responsible under paragraph (j), and
  200  the cost of any such reconstruction work undertaken by the
  201  association is chargeable to the unit owner and enforceable as
  202  an assessment and may be collected in the manner provided for
  203  the collection of assessments pursuant to s. 718.116.
  204         3. A multicondominium association may elect, by a majority
  205  vote of the collective members of the condominiums operated by
  206  the association, to operate the condominiums as a single
  207  condominium for purposes of insurance matters, including, but
  208  not limited to, the purchase of the property insurance required
  209  by this section and the apportionment of deductibles and damages
  210  in excess of coverage. The election to aggregate the treatment
  211  of insurance premiums, deductibles, and excess damages
  212  constitutes an amendment to the declaration of all condominiums
  213  operated by the association, and the costs of insurance must be
  214  stated in the association budget. The amendments must be
  215  recorded as required by s. 718.110.
  216         (j) Any portion of the condominium property that must be
  217  insured by the association against property loss pursuant to
  218  paragraph (f) which is damaged by an insurable event shall be
  219  reconstructed, repaired, or replaced as necessary by the
  220  association as a common expense. All property insurance
  221  deductibles, uninsured losses, and other damages in excess of
  222  property insurance coverage under the property insurance
  223  policies maintained by the association are a common expense of
  224  the condominium, except that:
  225         1. A unit owner is responsible for the costs of repair or
  226  replacement of any portion of the condominium property not paid
  227  by insurance proceeds if such damage is caused by intentional
  228  conduct, negligence, or failure to comply with the terms of the
  229  declaration or the rules of the association by a unit owner, the
  230  members of his or her family, unit occupants, tenants, guests,
  231  or invitees, without compromise of the subrogation rights of the
  232  insurer.
  233         2. The provisions of subparagraph 1. regarding the
  234  financial responsibility of a unit owner for the costs of
  235  repairing or replacing other portions of the condominium
  236  property also apply to the costs of repair or replacement of
  237  personal property of other unit owners or the association, as
  238  well as other property, whether real or personal, which the unit
  239  owners are required to insure.
  240         3. To the extent the cost of repair or reconstruction for
  241  which the unit owner is responsible under this paragraph is
  242  reimbursed to the association by insurance proceeds, and the
  243  association has collected the cost of such repair or
  244  reconstruction from the unit owner, the association shall
  245  reimburse the unit owner without the waiver of any rights of
  246  subrogation.
  247         4. The association is not obligated to pay for
  248  reconstruction or repairs of property losses as a common expense
  249  if the property losses were known or should have been known to a
  250  unit owner and were not reported to the association until after
  251  the insurance claim of the association for that property was
  252  settled or resolved with finality, or denied because it was
  253  untimely filed.
  254         (12) OFFICIAL RECORDS.—
  255         (c) The official records of the association are open to
  256  inspection by any association member or the authorized
  257  representative of such member at all reasonable times. The right
  258  to inspect the records includes the right to make or obtain
  259  copies, at the reasonable expense, if any, of the member. The
  260  association may adopt reasonable rules regarding the frequency,
  261  time, location, notice, and manner of record inspections and
  262  copying. The failure of an association to provide the records
  263  within 10 working days after receipt of a written request
  264  creates a rebuttable presumption that the association willfully
  265  failed to comply with this paragraph. A unit owner who is denied
  266  access to official records is entitled to the actual damages or
  267  minimum damages for the association’s willful failure to comply.
  268  Minimum damages are $50 per calendar day for up to 10 days,
  269  beginning on the 11th working day after receipt of the written
  270  request. The failure to permit inspection entitles any person
  271  prevailing in an enforcement action to recover reasonable
  272  attorney attorney’s fees from the person in control of the
  273  records who, directly or indirectly, knowingly denied access to
  274  the records. Any person who knowingly or intentionally defaces
  275  or destroys accounting records that are required by this chapter
  276  to be maintained during the period for which such records are
  277  required to be maintained, or who knowingly or intentionally
  278  fails to create or maintain accounting records that are required
  279  to be created or maintained, with the intent of causing harm to
  280  the association or one or more of its members, is personally
  281  subject to a civil penalty pursuant to s. 718.501(1)(d). The
  282  association shall maintain an adequate number of copies of the
  283  declaration, articles of incorporation, bylaws, and rules, and
  284  all amendments to each of the foregoing, as well as the question
  285  and answer sheet as described in s. 718.504 and year-end
  286  financial information required under this section, on the
  287  condominium property to ensure their availability to unit owners
  288  and prospective purchasers, and may charge its actual costs for
  289  preparing and furnishing these documents to those requesting the
  290  documents. An association shall allow a member or his or her
  291  authorized representative to use a portable device, including a
  292  smartphone, tablet, portable scanner, or any other technology
  293  capable of scanning or taking photographs, to make an electronic
  294  copy of the official records in lieu of the association’s
  295  providing the member or his or her authorized representative
  296  with a copy of such records. The association may not charge a
  297  member or his or her authorized representative for the use of a
  298  portable device. Notwithstanding this paragraph, the following
  299  records are not accessible to unit owners:
  300         1. Any record protected by the lawyer-client privilege as
  301  described in s. 90.502 and any record protected by the work
  302  product privilege, including a record prepared by an association
  303  attorney or prepared at the attorney’s express direction, which
  304  reflects a mental impression, conclusion, litigation strategy,
  305  or legal theory of the attorney or the association, and which
  306  was prepared exclusively for civil or criminal litigation or for
  307  adversarial administrative proceedings, or which was prepared in
  308  anticipation of such litigation or proceedings until the
  309  conclusion of the litigation or proceedings.
  310         2. Information obtained by an association in connection
  311  with the approval of the lease, sale, or other transfer of a
  312  unit.
  313         3. Personnel records of association or management company
  314  employees, including, but not limited to, disciplinary, payroll,
  315  health, and insurance records. For purposes of this
  316  subparagraph, the term “personnel records” does not include
  317  written employment agreements with an association employee or
  318  management company, or budgetary or financial records that
  319  indicate the compensation paid to an association employee.
  320         4. Medical records of unit owners.
  321         5. Social security numbers, driver driver’s license
  322  numbers, credit card numbers, e-mail addresses, telephone
  323  numbers, facsimile numbers, emergency contact information,
  324  addresses of a unit owner other than as provided to fulfill the
  325  association’s notice requirements, and other personal
  326  identifying information of any person, excluding the person’s
  327  name, unit designation, mailing address, property address, and
  328  any address, e-mail address, or facsimile number provided to the
  329  association to fulfill the association’s notice requirements.
  330  Notwithstanding the restrictions in this subparagraph, an
  331  association may print and distribute to parcel owners a
  332  directory containing the name, parcel address, and telephone
  333  number of each parcel owner. However, an owner may exclude his
  334  or her telephone number from the directory by so requesting in
  335  writing to the association consent in writing to the disclosure
  336  of protected information described in this subparagraph. The
  337  association is not liable for the inadvertent disclosure of
  338  information that is protected under this subparagraph if the
  339  information is included in an official record of the association
  340  and is voluntarily provided by an owner and not requested by the
  341  association.
  342         6. Electronic security measures that are used by the
  343  association to safeguard data, including passwords.
  344         7. The software and operating system used by the
  345  association which allow the manipulation of data, even if the
  346  owner owns a copy of the same software used by the association.
  347  The data is part of the official records of the association.
  348         (13) FINANCIAL REPORTING.—Within 90 days after the end of
  349  the fiscal year, or annually on a date provided in the bylaws,
  350  the association shall prepare and complete, or contract for the
  351  preparation and completion of, a financial report for the
  352  preceding fiscal year. Within 21 days after the final financial
  353  report is completed by the association or received from the
  354  third party, but not later than 120 days after the end of the
  355  fiscal year or other date as provided in the bylaws, the
  356  association shall mail to each unit owner at the address last
  357  furnished to the association by the unit owner, or hand deliver
  358  to each unit owner, a copy of the financial report or a notice
  359  that a copy of the financial report will be mailed or hand
  360  delivered to the unit owner, without charge, upon receipt of a
  361  written request from the unit owner. The division shall adopt
  362  rules setting forth uniform accounting principles and standards
  363  to be used by all associations and addressing the financial
  364  reporting requirements for multicondominium associations. The
  365  rules must include, but not be limited to, standards for
  366  presenting a summary of association reserves, including a good
  367  faith estimate disclosing the annual amount of reserve funds
  368  that would be necessary for the association to fully fund
  369  reserves for each reserve item based on the straight-line
  370  accounting method. This disclosure is not applicable to reserves
  371  funded via the pooling method. In adopting such rules, the
  372  division shall consider the number of members and annual
  373  revenues of an association. Financial reports shall be prepared
  374  as follows:
  375         (a) An association that meets the criteria of this
  376  paragraph shall prepare a complete set of financial statements
  377  in accordance with generally accepted accounting principles. The
  378  financial statements must be based upon the association’s total
  379  annual revenues, as follows:
  380         1. An association with total annual revenues of $150,000
  381  $100,000 or more, but less than $300,000 $200,000, shall prepare
  382  compiled financial statements.
  383         2. An association with total annual revenues of at least
  384  $300,000 $200,000, but less than $500,000 $400,000, shall
  385  prepare reviewed financial statements.
  386         3. An association with total annual revenues of $500,000
  387  $400,000 or more shall prepare audited financial statements.
  388         (b)1. An association with total annual revenues of less
  389  than $150,000 $100,000 shall prepare a report of cash receipts
  390  and expenditures.
  391         2. An association that operates fewer than 50 75 units,
  392  regardless of the association’s annual revenues, shall prepare a
  393  report of cash receipts and expenditures in lieu of financial
  394  statements required by paragraph (a).
  395         3. A report of cash receipts and disbursements must
  396  disclose the amount of receipts by accounts and receipt
  397  classifications and the amount of expenses by accounts and
  398  expense classifications, including, but not limited to, the
  399  following, as applicable: costs for security, professional and
  400  management fees and expenses, taxes, costs for recreation
  401  facilities, expenses for refuse collection and utility services,
  402  expenses for lawn care, costs for building maintenance and
  403  repair, insurance costs, administration and salary expenses, and
  404  reserves accumulated and expended for capital expenditures,
  405  deferred maintenance, and any other category for which the
  406  association maintains reserves.
  407         Section 3. Paragraphs (d) and (j) of subsection (2) of
  408  section 718.112, Florida Statutes, are amended to read:
  409         718.112 Bylaws.—
  410         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  411  following and, if they do not do so, shall be deemed to include
  412  the following:
  413         (d) Unit owner meetings.—
  414         1. An annual meeting of the unit owners shall be held at
  415  the location provided in the association bylaws and, if the
  416  bylaws are silent as to the location, the meeting shall be held
  417  within 45 miles of the condominium property. However, such
  418  distance requirement does not apply to an association governing
  419  a timeshare condominium.
  420         2. Unless the bylaws provide otherwise, a vacancy on the
  421  board caused by the expiration of a director’s term shall be
  422  filled by electing a new board member, and the election must be
  423  by secret ballot. An election is not required if the number of
  424  vacancies equals or exceeds the number of candidates. For
  425  purposes of this paragraph, the term “candidate” means an
  426  eligible person who has timely submitted the written notice, as
  427  described in sub-subparagraph 4.a., of his or her intention to
  428  become a candidate. Except in a timeshare condominium, or if the
  429  staggered term of a board member does not expire until a later
  430  annual meeting, or if all members’ terms would otherwise expire
  431  but there are no candidates, the terms of all board members
  432  expire at the annual meeting, and such members may stand for
  433  reelection unless prohibited by the bylaws. If the bylaws or
  434  articles of incorporation permit staggered terms of no more than
  435  2 years and upon approval of a majority of the total voting
  436  interests, the association board members may serve 2-year
  437  staggered terms. If the number of board members whose terms
  438  expire at the annual meeting equals or exceeds the number of
  439  candidates, the candidates become members of the board effective
  440  upon the adjournment of the annual meeting. Unless the bylaws
  441  provide otherwise, any remaining vacancies shall be filled by
  442  the affirmative vote of the majority of the directors making up
  443  the newly constituted board even if the directors constitute
  444  less than a quorum or there is only one director. In a
  445  condominium association of more than 10 units or in a
  446  condominium association that does not include timeshare units or
  447  timeshare interests, coowners of a unit may not serve as members
  448  of the board of directors at the same time unless they own more
  449  than one unit or unless there are not enough eligible candidates
  450  to fill the vacancies on the board at the time of the vacancy.
  451  Any unit owner desiring to be a candidate for board membership
  452  must comply with sub-subparagraph 4.a. and must be eligible to
  453  be a candidate to serve on the board of directors at the time of
  454  the deadline for submitting a notice of intent to run in order
  455  to have his or her name listed as a proper candidate on the
  456  ballot or to serve on the board. A person who has been suspended
  457  or removed by the division under this chapter, or who is
  458  delinquent in the payment of any monetary obligation due to the
  459  association fee, fine, or special or regular assessment as
  460  provided in paragraph (n), is not eligible to be a candidate for
  461  board membership and may not be listed on the ballot. A person
  462  who has been convicted of any felony in this state or in a
  463  United States District or Territorial Court, or who has been
  464  convicted of any offense in another jurisdiction which would be
  465  considered a felony if committed in this state, is not eligible
  466  for board membership unless such felon’s civil rights have been
  467  restored for at least 5 years as of the date such person seeks
  468  election to the board. The validity of an action by the board is
  469  not affected if it is later determined that a board member is
  470  ineligible for board membership due to having been convicted of
  471  a felony.
  472         3. The bylaws must provide the method of calling meetings
  473  of unit owners, including annual meetings. Written notice must
  474  include an agenda, must be mailed, hand delivered, or
  475  electronically transmitted to each unit owner at least 14 days
  476  before the annual meeting, and must be posted in a conspicuous
  477  place on the condominium property at least 14 continuous days
  478  before the annual meeting. Upon notice to the unit owners, the
  479  board shall, by duly adopted rule, designate a specific location
  480  on the condominium property or association property where all
  481  notices of unit owner meetings shall be posted. This requirement
  482  does not apply if there is no condominium property or
  483  association property for posting notices. In lieu of, or in
  484  addition to, the physical posting of meeting notices, the
  485  association may, by reasonable rule, adopt a procedure for
  486  conspicuously posting and repeatedly broadcasting the notice and
  487  the agenda on a closed-circuit cable television system serving
  488  the condominium association. However, if broadcast notice is
  489  used in lieu of a notice posted physically on the condominium
  490  property, the notice and agenda must be broadcast at least four
  491  times every broadcast hour of each day that a posted notice is
  492  otherwise required under this section. If broadcast notice is
  493  provided, the notice and agenda must be broadcast in a manner
  494  and for a sufficient continuous length of time so as to allow an
  495  average reader to observe the notice and read and comprehend the
  496  entire content of the notice and the agenda. Unless a unit owner
  497  waives in writing the right to receive notice of the annual
  498  meeting, such notice must be hand delivered, mailed, or
  499  electronically transmitted to each unit owner. Notice for
  500  meetings and notice for all other purposes must be mailed to
  501  each unit owner at the address last furnished to the association
  502  by the unit owner, or hand delivered to each unit owner.
  503  However, if a unit is owned by more than one person, the
  504  association must provide notice to the address that the
  505  developer identifies for that purpose and thereafter as one or
  506  more of the owners of the unit advise the association in
  507  writing, or if no address is given or the owners of the unit do
  508  not agree, to the address provided on the deed of record. An
  509  officer of the association, or the manager or other person
  510  providing notice of the association meeting, must provide an
  511  affidavit or United States Postal Service certificate of
  512  mailing, to be included in the official records of the
  513  association affirming that the notice was mailed or hand
  514  delivered in accordance with this provision.
  515         4. The members of the board shall be elected by written
  516  ballot or voting machine. Proxies may not be used in electing
  517  the board in general elections or elections to fill vacancies
  518  caused by recall, resignation, or otherwise, unless otherwise
  519  provided in this chapter. This subparagraph does not apply to an
  520  association governing a timeshare condominium.
  521         a. At least 60 days before a scheduled election, the
  522  association shall mail, deliver, or electronically transmit, by
  523  separate association mailing or included in another association
  524  mailing, delivery, or transmission, including regularly
  525  published newsletters, to each unit owner entitled to a vote, a
  526  first notice of the date of the election. Any unit owner or
  527  other eligible person desiring to be a candidate for the board
  528  must give written notice of his or her intent to be a candidate
  529  to the association at least 40 days before a scheduled election.
  530  Together with the written notice and agenda as set forth in
  531  subparagraph 3., the association shall mail, deliver, or
  532  electronically transmit a second notice of the election to all
  533  unit owners entitled to vote, together with a ballot that lists
  534  all candidates. Upon request of a candidate, an information
  535  sheet, no larger than 81/2 inches by 11 inches, which must be
  536  furnished by the candidate at least 35 days before the election,
  537  must be included with the mailing, delivery, or transmission of
  538  the ballot, with the costs of mailing, delivery, or electronic
  539  transmission and copying to be borne by the association. The
  540  association is not liable for the contents of the information
  541  sheets prepared by the candidates. In order to reduce costs, the
  542  association may print or duplicate the information sheets on
  543  both sides of the paper. The division shall by rule establish
  544  voting procedures consistent with this sub-subparagraph,
  545  including rules establishing procedures for giving notice by
  546  electronic transmission and rules providing for the secrecy of
  547  ballots. Elections shall be decided by a plurality of ballots
  548  cast. There is no quorum requirement; however, at least 20
  549  percent of the eligible voters must cast a ballot in order to
  550  have a valid election. A unit owner may not permit any other
  551  person to vote his or her ballot, and any ballots improperly
  552  cast are invalid. A unit owner who violates this provision may
  553  be fined by the association in accordance with s. 718.303. A
  554  unit owner who needs assistance in casting the ballot for the
  555  reasons stated in s. 101.051 may obtain such assistance. The
  556  regular election must occur on the date of the annual meeting.
  557  Notwithstanding this sub-subparagraph, an election is not
  558  required unless more candidates file notices of intent to run or
  559  are nominated than board vacancies exist.
  560         b. Within 90 days after being elected or appointed to the
  561  board, each newly elected or appointed director shall certify in
  562  writing to the secretary of the association that he or she has
  563  read the association’s declaration of condominium, articles of
  564  incorporation, bylaws, and current written policies; that he or
  565  she will work to uphold such documents and policies to the best
  566  of his or her ability; and that he or she will faithfully
  567  discharge his or her fiduciary responsibility to the
  568  association’s members. In lieu of this written certification,
  569  within 90 days after being elected or appointed to the board,
  570  the newly elected or appointed director may submit a certificate
  571  of having satisfactorily completed the educational curriculum
  572  administered by a division-approved condominium education
  573  provider within 1 year before or 90 days after the date of
  574  election or appointment. The written certification or
  575  educational certificate is valid and does not have to be
  576  resubmitted as long as the director serves on the board without
  577  interruption. A director who fails to timely file the written
  578  certification or educational certificate is suspended from
  579  service on the board until he or she complies with this sub
  580  subparagraph. The board may temporarily fill the vacancy during
  581  the period of suspension. The secretary shall cause the
  582  association to retain a director’s written certification or
  583  educational certificate for inspection by the members for 5
  584  years after a director’s election or the duration of the
  585  director’s uninterrupted tenure, whichever is longer. Failure to
  586  have such written certification or educational certificate on
  587  file does not affect the validity of any board action.
  588         c. Any challenge to the election process must be commenced
  589  within 60 days after the election results are announced.
  590         5. Any approval by unit owners called for by this chapter
  591  or the applicable declaration or bylaws, including, but not
  592  limited to, the approval requirement in s. 718.111(8), must be
  593  made at a duly noticed meeting of unit owners and is subject to
  594  all requirements of this chapter or the applicable condominium
  595  documents relating to unit owner decisionmaking, except that
  596  unit owners may take action by written agreement, without
  597  meetings, on matters for which action by written agreement
  598  without meetings is expressly allowed by the applicable bylaws
  599  or declaration or any law that provides for such action.
  600         6. Unit owners may waive notice of specific meetings if
  601  allowed by the applicable bylaws or declaration or any law. If
  602  authorized by the bylaws, notice of meetings of the board of
  603  administration, unit owner meetings, except unit owner meetings
  604  called to recall board members under paragraph (j), and
  605  committee meetings may be given by electronic transmission to
  606  unit owners who consent to receive notice by electronic
  607  transmission.
  608         7. Unit owners have the right to participate in meetings of
  609  unit owners with reference to all designated agenda items.
  610  However, the association may adopt reasonable rules governing
  611  the frequency, duration, and manner of unit owner participation.
  612         8. A unit owner may tape record or videotape a meeting of
  613  the unit owners subject to reasonable rules adopted by the
  614  division.
  615         9. Unless otherwise provided in the bylaws, any vacancy
  616  occurring on the board before the expiration of a term may be
  617  filled by the affirmative vote of the majority of the remaining
  618  directors, even if the remaining directors constitute less than
  619  a quorum, or by the sole remaining director. In the alternative,
  620  a board may hold an election to fill the vacancy, in which case
  621  the election procedures must conform to sub-subparagraph 4.a.
  622  unless the association governs 10 units or fewer and has opted
  623  out of the statutory election process, in which case the bylaws
  624  of the association control. Unless otherwise provided in the
  625  bylaws, a board member appointed or elected under this section
  626  shall fill the vacancy for the unexpired term of the seat being
  627  filled. Filling vacancies created by recall is governed by
  628  paragraph (j) and rules adopted by the division.
  629         10. This chapter does not limit the use of general or
  630  limited proxies, require the use of general or limited proxies,
  631  or require the use of a written ballot or voting machine for any
  632  agenda item or election at any meeting of a timeshare
  633  condominium association.
  634  
  635  Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an
  636  association of 10 or fewer units may, by affirmative vote of a
  637  majority of the total voting interests, provide for different
  638  voting and election procedures in its bylaws, which may be by a
  639  proxy specifically delineating the different voting and election
  640  procedures. The different voting and election procedures may
  641  provide for elections to be conducted by limited or general
  642  proxy.
  643         (j) Recall of board members.—Subject to the provisions of
  644  s. 718.301, any member of the board of administration may be
  645  recalled and removed from office with or without cause by the
  646  vote or agreement in writing by a majority of all the voting
  647  interests. A special meeting of the unit owners to recall a
  648  member or members of the board of administration may be called
  649  by 10 percent of the voting interests giving notice of the
  650  meeting as required for a meeting of unit owners, and the notice
  651  shall state the purpose of the meeting. Electronic transmission
  652  may not be used as a method of giving notice of a meeting called
  653  in whole or in part for this purpose.
  654         1. If the recall is approved by a majority of all voting
  655  interests by a vote at a meeting, the recall will be effective
  656  as provided in this paragraph herein. The board shall duly
  657  notice and hold a board meeting within 5 full business days
  658  after of the adjournment of the unit owner meeting to recall one
  659  or more board members. At the meeting, the board shall either
  660  certify the recall, in which case such member or members shall
  661  be recalled effective immediately and shall turn over to the
  662  board within 5 full business days any and all records and
  663  property of the association in their possession, or shall
  664  proceed as set forth in subparagraph 3.
  665         2. If the proposed recall is by an agreement in writing by
  666  a majority of all voting interests, the agreement in writing or
  667  a copy thereof shall be served on the association by certified
  668  mail or by personal service in the manner authorized by chapter
  669  48 and the Florida Rules of Civil Procedure. The board of
  670  administration shall duly notice and hold a meeting of the board
  671  within 5 full business days after receipt of the agreement in
  672  writing. At the meeting, the board shall either certify the
  673  written agreement to recall a member or members of the board, in
  674  which case such member or members shall be recalled effective
  675  immediately and shall turn over to the board within 5 full
  676  business days any and all records and property of the
  677  association in their possession, or proceed as described in
  678  subparagraph 3.
  679         3. If the board determines not to certify the written
  680  agreement to recall a member or members of the board, or does
  681  not certify the recall by a vote at a meeting, the board shall,
  682  within 5 full business days after the meeting, file with the
  683  division a petition for arbitration pursuant to the procedures
  684  in s. 718.1255. For the purposes of this section, the unit
  685  owners who voted at the meeting or who executed the agreement in
  686  writing shall constitute one party under the petition for
  687  arbitration. If the arbitrator certifies the recall as to any
  688  member or members of the board, the recall will be effective
  689  upon mailing of the final order of arbitration to the
  690  association. If the association fails to comply with the order
  691  of the arbitrator, the division may take action pursuant to s.
  692  718.501. Any member or members so recalled shall deliver to the
  693  board any and all records of the association in their possession
  694  within 5 full business days after of the effective date of the
  695  recall.
  696         4. If the board fails to duly notice and hold a board
  697  meeting within 5 full business days after of service of an
  698  agreement in writing or within 5 full business days after of the
  699  adjournment of the unit owner recall meeting, the recall shall
  700  be deemed effective and the board members so recalled shall
  701  immediately turn over to the board any and all records and
  702  property of the association.
  703         5. If the board fails to duly notice and hold the required
  704  meeting or fails to file the required petition, the unit owner
  705  representative may file a petition pursuant to s. 718.1255
  706  challenging the board’s failure to act. The petition must be
  707  filed within 60 days after the expiration of the applicable 5
  708  full-business-day period. The review of a petition under this
  709  subparagraph is limited to the sufficiency of service on the
  710  board and the facial validity of the written agreement or
  711  ballots filed.
  712         6.5. If a vacancy occurs on the board as a result of a
  713  recall or removal and less than a majority of the board members
  714  are removed, the vacancy may be filled by the affirmative vote
  715  of a majority of the remaining directors, notwithstanding any
  716  provision to the contrary contained in this subsection. If
  717  vacancies occur on the board as a result of a recall and a
  718  majority or more of the board members are removed, the vacancies
  719  shall be filled in accordance with procedural rules to be
  720  adopted by the division, which rules need not be consistent with
  721  this subsection. The rules must provide procedures governing the
  722  conduct of the recall election as well as the operation of the
  723  association during the period after a recall but before prior to
  724  the recall election.
  725         7. A board member who has been recalled may file a petition
  726  pursuant to s. 718.1255 challenging the validity of the recall.
  727  The petition must be filed within 60 days after the recall is
  728  deemed certified. The association and the unit owner
  729  representative shall be named as the respondents.
  730         8. The division may not accept for filing a recall
  731  petition, whether filed pursuant to subparagraph 1.,
  732  subparagraph 2., subparagraph 5., or subparagraph 7. and
  733  regardless of whether the recall was certified, when there are
  734  60 or fewer days until the scheduled reelection of the board
  735  member sought to be recalled or when 60 or fewer days have
  736  elapsed since the election of the board member sought to be
  737  recalled.
  738         Section 4. Subsection (5) of section 718.113, Florida
  739  Statutes, is amended to read:
  740         718.113 Maintenance; limitation upon improvement; display
  741  of flag; hurricane shutters and protection; display of religious
  742  decorations.—
  743         (5) Each board of administration shall adopt hurricane
  744  shutter specifications for each building within each condominium
  745  operated by the association which shall include color, style,
  746  and other factors deemed relevant by the board. All
  747  specifications adopted by the board must comply with the
  748  applicable building code.
  749         (a) The board may, subject to the provisions of s.
  750  718.3026, and the approval of a majority of voting interests of
  751  the condominium, install hurricane shutters, impact glass, or
  752  other code-compliant windows or doors, or other types of code
  753  compliant hurricane protection that comply complies with or
  754  exceed exceeds the applicable building code. However, a vote of
  755  the owners is not required if the maintenance, repair, and
  756  replacement of hurricane shutters, impact glass, or other code
  757  compliant windows or doors, or other types of code-compliant
  758  hurricane protection are the responsibility of the association
  759  pursuant to the declaration of condominium. If hurricane
  760  protection or laminated glass or window film architecturally
  761  designed to function as hurricane protection that which complies
  762  with or exceeds the current applicable building code has been
  763  previously installed, the board may not install hurricane
  764  shutters, hurricane protection, or impact glass, or other code
  765  compliant windows or doors, or other types of code-compliant
  766  hurricane protection except upon approval by a majority vote of
  767  the voting interests.
  768         (b) The association is responsible for the maintenance,
  769  repair, and replacement of the hurricane shutters, impact glass,
  770  code-compliant windows or doors, or other types of code
  771  compliant hurricane protection authorized by this subsection if
  772  such property hurricane shutters or other hurricane protection
  773  is the responsibility of the association pursuant to the
  774  declaration of condominium. If the hurricane shutters, impact
  775  glass, code-compliant windows or doors, or other types of code
  776  compliant hurricane protection authorized by this subsection are
  777  the responsibility of the unit owners pursuant to the
  778  declaration of condominium, the maintenance, repair, and
  779  replacement of such items are the responsibility of the unit
  780  owner.
  781         (c) The board may operate shutters, impact glass, code
  782  compliant windows or doors, or other types of code-compliant
  783  hurricane protection installed pursuant to this subsection
  784  without permission of the unit owners only if such operation is
  785  necessary to preserve and protect the condominium property and
  786  association property. The installation, replacement, operation,
  787  repair, and maintenance of such shutters, impact glass, code
  788  compliant windows or doors, or other types of code-compliant
  789  hurricane protection in accordance with the procedures set forth
  790  in this paragraph are not a material alteration to the common
  791  elements or association property within the meaning of this
  792  section.
  793         (d) Notwithstanding any other provision in the condominium
  794  documents, if approval is required by the documents, a board may
  795  not refuse to approve the installation or replacement of
  796  hurricane shutters, impact glass, code-compliant windows or
  797  doors, or other types of code-compliant hurricane protection by
  798  a unit owner conforming to the specifications adopted by the
  799  board.
  800         Section 5. Paragraph (e) of subsection (1) of section
  801  718.115, Florida Statutes, is amended to read:
  802         718.115 Common expenses and common surplus.—
  803         (1)
  804         (e) The expense of installation, replacement, operation,
  805  repair, and maintenance of hurricane shutters, impact glass,
  806  code-compliant windows or doors, or other types of code
  807  compliant hurricane protection by the board pursuant to s.
  808  718.113(5) constitutes shall constitute a common expense as
  809  defined herein and shall be collected as provided in this
  810  section if the association is responsible for the maintenance,
  811  repair, and replacement of the hurricane shutters, impact glass,
  812  code-compliant windows or doors, or other types of code
  813  compliant hurricane protection pursuant to the declaration of
  814  condominium. However, if the maintenance, repair, and
  815  replacement of the hurricane shutters, impact glass, code
  816  compliant windows or doors, or other types of code-compliant
  817  hurricane protection are is the responsibility of the unit
  818  owners pursuant to the declaration of condominium, the cost of
  819  the installation of the hurricane shutters, impact glass, code
  820  compliant windows or doors, or other types of code-compliant
  821  hurricane protection is shall not be a common expense and, but
  822  shall be charged individually to the unit owners based on the
  823  cost of installation of the hurricane shutters, impact glass,
  824  code-compliant windows or doors, or other types of code
  825  compliant hurricane protection appurtenant to the unit.
  826  Notwithstanding the provisions of s. 718.116(9), and regardless
  827  of whether or not the declaration requires the association or
  828  unit owners to maintain, repair, or replace hurricane shutters,
  829  impact glass, code-compliant windows or doors, or other types of
  830  code-compliant hurricane protection, a unit owner who has
  831  previously installed hurricane shutters in accordance with s.
  832  718.113(5) that comply with the current applicable building code
  833  shall receive a credit when the shutters are installed; a unit
  834  owner who has previously installed impact glass or code
  835  compliant windows or doors that comply with the current
  836  applicable building code shall receive a credit when the impact
  837  glass or code-compliant windows or doors are installed; and a
  838  unit owner who has installed, other types of code-compliant
  839  hurricane protection that comply with the current applicable
  840  building code shall receive a credit when the same type of other
  841  code-compliant hurricane protection is installed, and the or
  842  laminated glass architecturally designed to function as
  843  hurricane protection, which hurricane shutters or other
  844  hurricane protection or laminated glass comply with the current
  845  applicable building code, shall receive a credit shall be equal
  846  to the pro rata portion of the assessed installation cost
  847  assigned to each unit. However, such unit owner remains shall
  848  remain responsible for the pro rata share of expenses for
  849  hurricane shutters, impact glass, code-compliant windows or
  850  doors, or other types of code-compliant hurricane protection
  851  installed on common elements and association property by the
  852  board pursuant to s. 718.113(5), and remains shall remain
  853  responsible for a pro rata share of the expense of the
  854  replacement, operation, repair, and maintenance of such
  855  shutters, impact glass, code-compliant windows or doors, or
  856  other types of code-compliant hurricane protection.
  857         Section 6. Paragraph (a) of subsection (3) of section
  858  718.303, Florida Statutes, is amended to read:
  859         718.303 Obligations of owners and occupants; remedies.—
  860         (3) The association may levy reasonable fines for the
  861  failure of the owner of the unit or its occupant, licensee, or
  862  invitee to comply with any provision of the declaration, the
  863  association bylaws, or reasonable rules of the association. A
  864  fine may not become a lien against a unit. A fine may be levied
  865  on the basis of each day of a continuing violation, with a
  866  single notice and opportunity for hearing. However, the fine may
  867  not exceed $100 per violation, or $1,000 in the aggregate.
  868         (a) An association may suspend, for a reasonable period of
  869  time, the right of a unit owner, or a unit owner’s tenant,
  870  guest, or invitee, to use the common elements, common
  871  facilities, or any other association property for failure to
  872  comply with any provision of the declaration, the association
  873  bylaws, or reasonable rules of the association. This paragraph
  874  does not apply to limited common elements intended to be used
  875  only by that unit, common elements needed to access the unit,
  876  utility services provided to the unit, parking spaces, or
  877  elevators.
  878         Section 7. Subsection (1) of section 718.403, Florida
  879  Statutes, is amended to read:
  880         718.403 Phase condominiums.—
  881         (1) Notwithstanding the provisions of s. 718.110, a
  882  developer may develop a condominium in phases, if the original
  883  declaration of condominium submitting the initial phase to
  884  condominium ownership or an amendment to the declaration which
  885  has been approved by all of the unit owners and unit mortgagees
  886  provides for and describes in detail all anticipated phases; the
  887  impact, if any, which the completion of subsequent phases would
  888  have upon the initial phase; and the time period (which may not
  889  exceed 7 years from the date of recording the declaration of
  890  condominium) within which all phases must be added to the
  891  condominium and comply with the requirements of this section and
  892  at the end of which the right to add additional phases expires.
  893         (a) All phases must be added to the condominium within 7
  894  years after the date of recording the original declaration of
  895  condominium submitting the initial phase to condominium
  896  ownership unless an amendment extending the 7-year period is
  897  approved by the unit owners.
  898         (b) An amendment to extend the 7-year period requires the
  899  approval of the owners necessary to amend the declaration of
  900  condominium consistent with s. 718.110(1)(a). An extension of
  901  the 7-year period may be submitted for approval only during the
  902  last 3 years of the 7-year period.
  903         (c) An amendment must describe the period within which all
  904  phases must be added to the condominium and such period may not
  905  exceed 10 years after the date of recording the original
  906  declaration of condominium submitting the initial phase to
  907  condominium ownership.
  908         (d) Notwithstanding s. 718.110, an amendment extending the
  909  7-year period is not an amendment subject to s. 718.110(4).
  910         Section 8. Section 718.406, Florida Statutes, is created to
  911  read:
  912         718.406 Condominiums created within condominium parcels.—
  913         (1) Unless otherwise expressed in the declaration of
  914  condominium, if a condominium is created within a condominium
  915  parcel, the term:
  916         (a) “Primary condominium” means any condominium that is not
  917  a secondary condominium and contains one or more subdivided
  918  parcels.
  919         (b) “Primary condominium association” means any entity that
  920  operates a primary condominium.
  921         (c) “Primary condominium declaration” means the instrument
  922  or instruments by which a primary condominium is created, as
  923  they are from time to time amended.
  924         (d) “Secondary condominium” means one or more condominium
  925  parcels that have been submitted to condominium ownership
  926  pursuant to a secondary condominium declaration.
  927         (e) “Secondary condominium association” means any entity
  928  responsible for the operation of a secondary condominium.
  929         (f) “Secondary condominium declaration” means the
  930  instrument or instruments by which a secondary condominium is
  931  created, as they are from time to time amended.
  932         (g) “Secondary unit” means a unit that is part of a
  933  secondary condominium.
  934         (h) “Subdivided parcel” means a condominium parcel in a
  935  primary condominium that has been submitted to condominium
  936  ownership pursuant to a secondary condominium declaration.
  937         (2) Unless otherwise provided in the primary condominium
  938  declaration, if a condominium parcel is a subdivided parcel, the
  939  secondary condominium association responsible for operating the
  940  secondary condominium upon the subdivided parcel shall act on
  941  behalf of all of the unit owners of secondary units in the
  942  secondary condominium and shall exercise all rights of the
  943  secondary unit owners in the primary condominium association,
  944  other than the right of possession of the secondary unit. The
  945  secondary condominium association shall designate a
  946  representative who shall cast the vote of the subdivided parcel
  947  in the primary condominium association and, if no person is
  948  designated by the secondary condominium association to cast such
  949  vote, the vote shall be cast by the president of the secondary
  950  condominium association or the designee of the president.
  951         (3) Unless otherwise provided in the primary condominium
  952  declaration as originally recorded, no secondary condominium may
  953  be created upon any condominium parcel in the primary
  954  condominium, and no amendment to the primary condominium
  955  declaration may permit secondary condominiums to be created upon
  956  parcels in the primary condominium, unless the record owners of
  957  a majority of the condominium parcels join in the execution of
  958  the amendment.
  959         (4) If the primary condominium declaration permits the
  960  creation of a secondary condominium and a condominium parcel in
  961  the primary condominium is being submitted for condominium
  962  ownership to create a secondary condominium upon the primary
  963  condominium parcel, the approval of the board of administration
  964  of the primary condominium association is required in order to
  965  create the secondary condominium on the primary condominium
  966  parcel. Unless otherwise provided in the primary condominium
  967  declaration, the owners of condominium parcels in the primary
  968  condominium that will not be part of the proposed secondary
  969  condominium and the holders of liens upon such primary
  970  condominium parcels shall not have approval rights regarding the
  971  creation of the secondary condominium or the contents of the
  972  secondary condominium declaration being submitted. Only the
  973  board of administration of the primary condominium association,
  974  the owner of the subdivided parcel, and the holders of liens
  975  upon the subdivided parcel shall have approval rights regarding
  976  the creation of the secondary condominium and the contents of
  977  the secondary condominium declaration. In order for the
  978  recording of the secondary condominium declaration to be
  979  effective to create the secondary condominium, the board of
  980  administration of the primary condominium association, the owner
  981  of the subdivided parcel, and all holders of liens on the
  982  subdivided parcel must execute the secondary condominium
  983  declaration for the purpose of evidencing their approval.
  984         (5) An owner of a secondary unit is subject to both the
  985  primary condominium declaration and the secondary condominium
  986  declaration.
  987         (6) The primary condominium association may provide
  988  insurance required by s. 718.111(11) for common elements and
  989  other improvements within the secondary condominium if the
  990  primary condominium declaration permits the primary condominium
  991  association to provide such insurance for the benefit of the
  992  condominium property included in the subdivided parcel, in lieu
  993  of such insurance being provided by the secondary condominium
  994  association.
  995         (7) Unless otherwise provided in the primary condominium
  996  declaration, the board of administration of the primary
  997  condominium association may adopt hurricane shutter or hurricane
  998  protection specifications for each building within which
  999  subdivided parcels are located and govern any subdivided parcels
 1000  in the primary condominium.
 1001         (8) Any unit owner of, or holder of a first mortgage on, a
 1002  secondary unit may register such unit owner’s or mortgagee’s
 1003  interest in the secondary unit with the primary condominium
 1004  association by delivering written notice to the primary
 1005  condominium association. Once registered, the primary
 1006  condominium association must provide written notice to such
 1007  secondary unit owner and his, her, or its first mortgagee at
 1008  least 30 days before instituting any foreclosure action against
 1009  the subdivided parcel in which the secondary unit owner and his,
 1010  her, or its first mortgagee hold an interest for failure of the
 1011  subdivided parcel owner to pay any assessments or other amounts
 1012  due to the primary condominium association. A foreclosure action
 1013  against a subdivided parcel is not effective without an
 1014  affidavit indicating that written notice of the foreclosure was
 1015  timely sent to the names and addresses of secondary unit owners
 1016  and first mortgagees registered with the primary condominium
 1017  association pursuant to this subsection. The registered
 1018  secondary unit owner or mortgagee has a right to pay the
 1019  proportionate amount of the delinquent assessment attributable
 1020  to the secondary unit in which the registered unit owner or
 1021  mortgagee holds an interest. Upon such payment, the primary
 1022  condominium association is obligated to promptly modify or
 1023  partially release the record of lien on the primary condominium
 1024  association so that the lien no longer encumbers such secondary
 1025  unit. Alternatively, a registered secondary unit owner or
 1026  mortgagee may pay the amount of all delinquent assessments
 1027  attributed to the subdivided parcel and seek reimbursement for
 1028  all such amounts paid and all costs incurred from the secondary
 1029  condominium association, including, without limitation, the
 1030  costs of collection other than the share allocable to the
 1031  secondary unit on behalf of which such payment was made.
 1032         (9) In the event of a conflict between the primary
 1033  condominium declaration and the secondary condominium
 1034  declaration, the primary condominium declaration controls.
 1035         (10) All common expenses due to the primary condominium
 1036  association with respect to a subdivided parcel are a common
 1037  expense of the secondary condominium association and shall be
 1038  collected by the secondary condominium association from its
 1039  members and paid to the primary condominium association.
 1040         Section 9. Subsection (2) of section 718.5011, Florida
 1041  Statutes, is amended to read:
 1042         718.5011 Ombudsman; appointment; administration.—
 1043         (2) The Governor shall appoint the ombudsman. The ombudsman
 1044  must be an attorney admitted to practice before the Florida
 1045  Supreme Court and shall serve at the pleasure of the Governor. A
 1046  vacancy in the office shall be filled in the same manner as the
 1047  original appointment. An officer or full-time employee of the
 1048  ombudsman’s office may not actively engage in any other business
 1049  or profession that directly or indirectly relates to or
 1050  conflicts with his or her work in the ombudsman’s office; serve
 1051  as the representative of any political party, executive
 1052  committee, or other governing body of a political party; serve
 1053  as an executive, officer, or employee of a political party;
 1054  receive remuneration for activities on behalf of any candidate
 1055  for public office; or engage in soliciting votes or other
 1056  activities on behalf of a candidate for public office. The
 1057  ombudsman or any employee of his or her office may not become a
 1058  candidate for election to public office unless he or she first
 1059  resigns from his or her office or employment.
 1060         Section 10. Paragraphs (b) and (c) of subsection (2) of
 1061  section 719.104, Florida Statutes, are amended to read:
 1062         719.104 Cooperatives; access to units; records; financial
 1063  reports; assessments; purchase of leases.—
 1064         (2) OFFICIAL RECORDS.—
 1065         (b) The official records of the association must shall be
 1066  maintained within the state for at least 7 years. The records of
 1067  the association shall be made available to a unit owner within
 1068  45 miles of the cooperative property or within the county in
 1069  which the cooperative property is located within 5 working days
 1070  after receipt of written request by the board or its designee.
 1071  This paragraph may be complied with by having a copy of the
 1072  official records of the association available for inspection or
 1073  copying on the cooperative property, or the association may
 1074  offer the option of making the records available to a unit owner
 1075  electronically via the Internet or by allowing the records to be
 1076  viewed in an electronic format on a computer screen and printed
 1077  upon request. The association is not responsible for the use or
 1078  misuse of the information provided to an association member or
 1079  his or her authorized representative pursuant to the compliance
 1080  requirements of this chapter unless the association has an
 1081  affirmative duty not to disclose such information pursuant to
 1082  this chapter.
 1083         (c) The official records of the association are shall be
 1084  open to inspection by any association member or the authorized
 1085  representative of such member at all reasonable times. Failure
 1086  to permit inspection of the association records as provided
 1087  herein entitles any person prevailing in an enforcement action
 1088  to recover reasonable attorney’s fees from the person in control
 1089  of the records who, directly or indirectly, knowingly denies
 1090  access to the records for inspection. The right to inspect the
 1091  records includes the right to make or obtain copies, at the
 1092  reasonable expense, if any, of the association member. The
 1093  association may adopt reasonable rules regarding the frequency,
 1094  time, location, notice, and manner of record inspections and
 1095  copying. The failure of an association to provide the records
 1096  within 10 working days after receipt of a written request
 1097  creates a rebuttable presumption that the association willfully
 1098  failed to comply with this paragraph. A unit owner who is denied
 1099  access to official records is entitled to the actual damages or
 1100  minimum damages for the association’s willful failure to comply
 1101  with this paragraph. The minimum damages are shall be $50 per
 1102  calendar day for up to 10 days, beginning the calculation to
 1103  begin on the 11th working day after receipt of the written
 1104  request. The failure to permit inspection entitles any person
 1105  prevailing in an enforcement action to recover reasonable
 1106  attorney fees from the person in control of the records who,
 1107  directly or indirectly, knowingly denied access to the records.
 1108  Any person who knowingly or intentionally defaces or destroys
 1109  accounting records that are required by this chapter to be
 1110  maintained during the period for which such records are required
 1111  to be maintained, or who knowingly or intentionally fails to
 1112  create or maintain accounting records that are required to be
 1113  created or maintained, with the intent of causing harm to the
 1114  association or one or more of its members, is personally subject
 1115  to a civil penalty pursuant to s. 719.501(1)(d). The association
 1116  shall maintain an adequate number of copies of the declaration,
 1117  articles of incorporation, bylaws, and rules, and all amendments
 1118  to each of the foregoing, as well as the question and answer
 1119  sheet as described provided for in s. 719.504 and year-end
 1120  financial information required by the department, on the
 1121  cooperative property to ensure their availability to unit owners
 1122  and prospective purchasers, and may charge its actual costs for
 1123  preparing and furnishing these documents to those requesting the
 1124  same. An association shall allow a member or his or her
 1125  authorized representative to use a portable device, including a
 1126  smartphone, tablet, portable scanner, or any other technology
 1127  capable of scanning or taking photographs, to make an electronic
 1128  copy of the official records in lieu of the association
 1129  providing the member or his or her authorized representative
 1130  with a copy of such records. The association may not charge a
 1131  member or his or her authorized representative for the use of a
 1132  portable device. Notwithstanding the provisions of this
 1133  paragraph, the following records shall not be accessible to unit
 1134  owners:
 1135         1. Any record protected by the lawyer-client privilege as
 1136  described in s. 90.502 and any record protected by the work
 1137  product privilege, including any record A record that was
 1138  prepared by an association attorney or prepared at the
 1139  attorney’s express direction which; that reflects a mental
 1140  impression, conclusion, litigation strategy, or legal theory of
 1141  the attorney or the association, and which; or that was prepared
 1142  exclusively for civil or criminal litigation or for adversarial
 1143  administrative proceedings, or which was prepared in
 1144  anticipation of such imminent civil or criminal litigation or
 1145  imminent adversarial administrative proceedings, until the
 1146  conclusion of the litigation or adversarial administrative
 1147  proceedings.
 1148         2. Information obtained by an association in connection
 1149  with the approval of the lease, sale, or other transfer of a
 1150  unit.
 1151         3. Personnel records of association or management company
 1152  employees, including, but not limited to, disciplinary, payroll,
 1153  health, and insurance records. For purposes of this
 1154  subparagraph, the term “personnel records” does not include
 1155  written employment agreements with an association employee or
 1156  management company, or budgetary or financial records that
 1157  indicate the compensation paid to an association employee.
 1158         4.3. Medical records of unit owners.
 1159         5. Social security numbers, driver license numbers, credit
 1160  card numbers, e-mail addresses, telephone numbers, facsimile
 1161  numbers, emergency contact information, addresses of a unit
 1162  owner other than as provided to fulfill the association’s notice
 1163  requirements, and other personal identifying information of any
 1164  person, excluding the person’s name, unit designation, mailing
 1165  address, property address, and any address, e-mail address, or
 1166  facsimile number provided to the association to fulfill the
 1167  association’s notice requirements. Notwithstanding the
 1168  restrictions in this subparagraph, an association may print and
 1169  distribute to parcel owners a directory containing the name,
 1170  parcel address, and telephone number of each parcel owner.
 1171  However, an owner may exclude his or her telephone number from
 1172  the directory by so requesting in writing to the association.
 1173  The association is not liable for the inadvertent disclosure of
 1174  information that is protected under this subparagraph if the
 1175  information is included in an official record of the association
 1176  and is voluntarily provided by an owner and not requested by the
 1177  association.
 1178         6. Electronic security measures that are used by the
 1179  association to safeguard data, including passwords.
 1180         7. The software and operating system used by the
 1181  association which allow the manipulation of data, even if the
 1182  owner owns a copy of the same software used by the association.
 1183  The data is part of the official records of the association.
 1184         Section 11. Subsection (7) is added to section 719.1055,
 1185  Florida Statutes, to read:
 1186         719.1055 Amendment of cooperative documents; alteration and
 1187  acquisition of property.—
 1188         (7) The Legislature finds that the procurement of mortgagee
 1189  consent to amendments that do not affect the rights or interests
 1190  of mortgagees is an unreasonable and substantial logistical and
 1191  financial burden on the unit owners and that there is a
 1192  compelling state interest in enabling the members of an
 1193  association to approve amendments to the association’s
 1194  cooperative documents through legal means. Accordingly, and
 1195  notwithstanding any provision of this subsection to the
 1196  contrary:
 1197         (a) As to any mortgage recorded on or after July 1, 2013,
 1198  any provision in the association’s cooperative documents that
 1199  requires the consent or joinder of some or all mortgagees of
 1200  units or any other portion of the association’s common areas to
 1201  amend the association’s cooperative documents or for any other
 1202  matter is enforceable only as to amendments to the association’s
 1203  cooperative documents that adversely affect the priority of the
 1204  mortgagee’s lien or the mortgagee’s rights to foreclose its lien
 1205  or that otherwise materially affect the rights and interests of
 1206  the mortgagees.
 1207         (b) As to mortgages recorded before July 1, 2013, any
 1208  existing provisions in the association’s cooperative documents
 1209  requiring mortgagee consent are enforceable.
 1210         (c) In securing consent or joinder, the association is
 1211  entitled to rely upon the public records to identify the holders
 1212  of outstanding mortgages. The association may use the address
 1213  provided in the original recorded mortgage document, unless
 1214  there is a different address for the holder of the mortgage in a
 1215  recorded assignment or modification of the mortgage, which
 1216  recorded assignment or modification must reference the official
 1217  records book and page on which the original mortgage was
 1218  recorded. Once the association has identified the recorded
 1219  mortgages of record, the association shall, in writing, request
 1220  of each unit owner whose unit is encumbered by a mortgage of
 1221  record any information that the owner has in his or her
 1222  possession regarding the name and address of the person to whom
 1223  mortgage payments are currently being made. Notice shall be sent
 1224  to such person if the address provided in the original recorded
 1225  mortgage document is different from the name and address of the
 1226  mortgagee or assignee of the mortgage as shown by the public
 1227  record. The association is deemed to have complied with this
 1228  requirement by making the written request of the unit owners
 1229  required under this paragraph. Any notices required to be sent
 1230  to the mortgagees under this paragraph shall be sent to all
 1231  available addresses provided to the association.
 1232         (d) Any notice to the mortgagees required under paragraph
 1233  (c) may be sent by a method that establishes proof of delivery,
 1234  and any mortgagee who fails to respond within 60 days after the
 1235  date of mailing is deemed to have consented to the amendment.
 1236         (e) For those amendments requiring mortgagee consent on or
 1237  after July 1, 2013, in the event mortgagee consent is provided
 1238  other than by properly recorded joinder, such consent shall be
 1239  evidenced by affidavit of the association recorded in the public
 1240  records of the county in which the declaration is recorded.
 1241         (f) Any amendment adopted without the required consent of a
 1242  mortgagee is voidable only by a mortgagee who was entitled to
 1243  notice and an opportunity to consent. An action to void an
 1244  amendment is subject to the statute of limitations beginning 5
 1245  years after the date of discovery as to the amendments described
 1246  in paragraph (a) and 5 years after the date of recordation of
 1247  the certificate of amendment for all other amendments. This
 1248  paragraph applies to all mortgages, regardless of the date of
 1249  recordation of the mortgage.
 1250         Section 12. Paragraphs (c), (d), and (f) of subsection (1)
 1251  of section 719.106, Florida Statutes, are amended to read:
 1252         719.106 Bylaws; cooperative ownership.—
 1253         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
 1254  documents shall provide for the following, and if they do not,
 1255  they shall be deemed to include the following:
 1256         (c) Board of administration meetings.—Meetings of the board
 1257  of administration at which a quorum of the members is present
 1258  shall be open to all unit owners. Any unit owner may tape record
 1259  or videotape meetings of the board of administration. The right
 1260  to attend such meetings includes the right to speak at such
 1261  meetings with reference to all designated agenda items. The
 1262  division shall adopt reasonable rules governing the tape
 1263  recording and videotaping of the meeting. The association may
 1264  adopt reasonable written rules governing the frequency,
 1265  duration, and manner of unit owner statements. Adequate notice
 1266  of all meetings shall be posted in a conspicuous place upon the
 1267  cooperative property at least 48 continuous hours preceding the
 1268  meeting, except in an emergency. Any item not included on the
 1269  notice may be taken up on an emergency basis by at least a
 1270  majority plus one of the members of the board. Such emergency
 1271  action shall be noticed and ratified at the next regular meeting
 1272  of the board. However, written notice of any meeting at which
 1273  nonemergency special assessments, or at which amendment to rules
 1274  regarding unit use, will be considered shall be mailed,
 1275  delivered, or electronically transmitted to the unit owners and
 1276  posted conspicuously on the cooperative property not less than
 1277  14 days before prior to the meeting. Evidence of compliance with
 1278  this 14-day notice shall be made by an affidavit executed by the
 1279  person providing the notice and filed among the official records
 1280  of the association. Upon notice to the unit owners, the board
 1281  shall by duly adopted rule designate a specific location on the
 1282  cooperative property upon which all notices of board meetings
 1283  shall be posted. In lieu of or in addition to the physical
 1284  posting of notice of any meeting of the board of administration
 1285  on the cooperative property, the association may, by reasonable
 1286  rule, adopt a procedure for conspicuously posting and repeatedly
 1287  broadcasting the notice and the agenda on a closed-circuit cable
 1288  television system serving the cooperative association. However,
 1289  if broadcast notice is used in lieu of a notice posted
 1290  physically on the cooperative property, the notice and agenda
 1291  must be broadcast at least four times every broadcast hour of
 1292  each day that a posted notice is otherwise required under this
 1293  section. When broadcast notice is provided, the notice and
 1294  agenda must be broadcast in a manner and for a sufficient
 1295  continuous length of time so as to allow an average reader to
 1296  observe the notice and read and comprehend the entire content of
 1297  the notice and the agenda. Notice of any meeting in which
 1298  regular assessments against unit owners are to be considered for
 1299  any reason shall specifically contain a statement that
 1300  assessments will be considered and the nature of any such
 1301  assessments. Meetings of a committee to take final action on
 1302  behalf of the board or to make recommendations to the board
 1303  regarding the association budget are subject to the provisions
 1304  of this paragraph. Meetings of a committee that does not take
 1305  final action on behalf of the board or make recommendations to
 1306  the board regarding the association budget are subject to the
 1307  provisions of this section, unless those meetings are exempted
 1308  from this section by the bylaws of the association.
 1309  Notwithstanding any other law to the contrary, the requirement
 1310  that board meetings and committee meetings be open to the unit
 1311  owners does not apply is inapplicable to board or committee
 1312  meetings held for the purpose of discussing personnel matters or
 1313  meetings between the board or a committee and the association’s
 1314  attorney, with respect to proposed or pending litigation, if
 1315  when the meeting is held for the purpose of seeking or rendering
 1316  legal advice.
 1317         (d) Shareholder meetings.—There shall be an annual meeting
 1318  of the shareholders. All members of the board of administration
 1319  shall be elected at the annual meeting unless the bylaws provide
 1320  for staggered election terms or for their election at another
 1321  meeting. Any unit owner desiring to be a candidate for board
 1322  membership must comply with subparagraph 1. The bylaws must
 1323  provide the method for calling meetings, including annual
 1324  meetings. Written notice, which must incorporate an
 1325  identification of agenda items, shall be given to each unit
 1326  owner at least 14 days before the annual meeting and posted in a
 1327  conspicuous place on the cooperative property at least 14
 1328  continuous days preceding the annual meeting. Upon notice to the
 1329  unit owners, the board must by duly adopted rule designate a
 1330  specific location on the cooperative property upon which all
 1331  notice of unit owner meetings are posted. In lieu of or in
 1332  addition to the physical posting of the meeting notice, the
 1333  association may, by reasonable rule, adopt a procedure for
 1334  conspicuously posting and repeatedly broadcasting the notice and
 1335  the agenda on a closed-circuit cable television system serving
 1336  the cooperative association. However, if broadcast notice is
 1337  used in lieu of a posted notice, the notice and agenda must be
 1338  broadcast at least four times every broadcast hour of each day
 1339  that a posted notice is otherwise required under this section.
 1340  If broadcast notice is provided, the notice and agenda must be
 1341  broadcast in a manner and for a sufficient continuous length of
 1342  time to allow an average reader to observe the notice and read
 1343  and comprehend the entire content of the notice and the agenda.
 1344  Unless a unit owner waives in writing the right to receive
 1345  notice of the annual meeting, the notice of the annual meeting
 1346  must be sent by mail, hand delivered, or electronically
 1347  transmitted to each unit owner. An officer of the association
 1348  must provide an affidavit or United States Postal Service
 1349  certificate of mailing, to be included in the official records
 1350  of the association, affirming that notices of the association
 1351  meeting were mailed, hand delivered, or electronically
 1352  transmitted, in accordance with this provision, to each unit
 1353  owner at the address last furnished to the association.
 1354         1. The board of administration shall be elected by written
 1355  ballot or voting machine. A proxy may not be used in electing
 1356  the board of administration in general elections or elections to
 1357  fill vacancies caused by recall, resignation, or otherwise
 1358  unless otherwise provided in this chapter.
 1359         a. At least 60 days before a scheduled election, the
 1360  association shall mail, deliver, or transmit, whether by
 1361  separate association mailing, delivery, or electronic
 1362  transmission or included in another association mailing,
 1363  delivery, or electronic transmission, including regularly
 1364  published newsletters, to each unit owner entitled to vote, a
 1365  first notice of the date of the election. Any unit owner or
 1366  other eligible person desiring to be a candidate for the board
 1367  of administration must give written notice to the association at
 1368  least 40 days before a scheduled election. Together with the
 1369  written notice and agenda as set forth in this section, the
 1370  association shall mail, deliver, or electronically transmit a
 1371  second notice of election to all unit owners entitled to vote,
 1372  together with a ballot that which lists all candidates. Upon
 1373  request of a candidate, the association shall include an
 1374  information sheet, no larger than 81/2 inches by 11 inches,
 1375  which must be furnished by the candidate at least 35 days before
 1376  the election, to be included with the mailing, delivery, or
 1377  electronic transmission of the ballot, with the costs of
 1378  mailing, delivery, or transmission and copying to be borne by
 1379  the association. The association is not liable for the contents
 1380  of the information sheets provided by the candidates. In order
 1381  to reduce costs, the association may print or duplicate the
 1382  information sheets on both sides of the paper. The division
 1383  shall by rule establish voting procedures consistent with this
 1384  subparagraph, including rules establishing procedures for giving
 1385  notice by electronic transmission and rules providing for the
 1386  secrecy of ballots. Elections shall be decided by a plurality of
 1387  those ballots cast. There is no quorum requirement. However, at
 1388  least 20 percent of the eligible voters must cast a ballot in
 1389  order to have a valid election. A unit owner may not permit any
 1390  other person to vote his or her ballot, and any such ballots
 1391  improperly cast are invalid. A unit owner who needs assistance
 1392  in casting the ballot for the reasons stated in s. 101.051 may
 1393  obtain assistance in casting the ballot. Any unit owner
 1394  violating this provision may be fined by the association in
 1395  accordance with s. 719.303. The regular election must occur on
 1396  the date of the annual meeting. This subparagraph does not apply
 1397  to timeshare cooperatives. Notwithstanding this subparagraph, an
 1398  election and balloting are not required unless more candidates
 1399  file a notice of intent to run or are nominated than vacancies
 1400  exist on the board. Any challenge to the election process must
 1401  be commenced within 60 days after the election results are
 1402  announced.
 1403         b. Within 90 days after being elected or appointed to the
 1404  board, each new director shall certify in writing to the
 1405  secretary of the association that he or she has read the
 1406  association’s bylaws, articles of incorporation, proprietary
 1407  lease, and current written policies; that he or she will work to
 1408  uphold such documents and policies to the best of his or her
 1409  ability; and that he or she will faithfully discharge his or her
 1410  fiduciary responsibility to the association’s members. Within 90
 1411  days after being elected or appointed to the board, in lieu of
 1412  this written certification, the newly elected or appointed
 1413  director may submit a certificate of having satisfactorily
 1414  completed the educational curriculum administered by an
 1415  education provider as approved by the division pursuant to the
 1416  requirements established in chapter 718 within 1 year before or
 1417  90 days after the date of election or appointment. The
 1418  educational certificate is valid and does not have to be
 1419  resubmitted as long as the director serves on the board without
 1420  interruption. A director who fails to timely file the written
 1421  certification or educational certificate is suspended from
 1422  service on the board until he or she complies with this sub-
 1423  subparagraph. The board may temporarily fill the vacancy during
 1424  the period of suspension. The secretary of the association shall
 1425  cause the association to retain a director’s written
 1426  certification or educational certificate for inspection by the
 1427  members for 5 years after a director’s election or the duration
 1428  of the director’s uninterrupted tenure, whichever is longer.
 1429  Failure to have such written certification or educational
 1430  certificate on file does not affect the validity of any board
 1431  action.
 1432         2. Any approval by unit owners called for by this chapter,
 1433  or the applicable cooperative documents, must be made at a duly
 1434  noticed meeting of unit owners and is subject to this chapter or
 1435  the applicable cooperative documents relating to unit owner
 1436  decisionmaking, except that unit owners may take action by
 1437  written agreement, without meetings, on matters for which action
 1438  by written agreement without meetings is expressly allowed by
 1439  the applicable cooperative documents or law which provides for
 1440  the unit owner action.
 1441         3. Unit owners may waive notice of specific meetings if
 1442  allowed by the applicable cooperative documents or law. If
 1443  authorized by the bylaws, notice of meetings of the board of
 1444  administration, shareholder meetings, except shareholder
 1445  meetings called to recall board members under paragraph (f), and
 1446  committee meetings may be given by electronic transmission to
 1447  unit owners who consent to receive notice by electronic
 1448  transmission.
 1449         4. Unit owners have the right to participate in meetings of
 1450  unit owners with reference to all designated agenda items.
 1451  However, the association may adopt reasonable rules governing
 1452  the frequency, duration, and manner of unit owner participation.
 1453         5. Any unit owner may tape record or videotape meetings of
 1454  the unit owners subject to reasonable rules adopted by the
 1455  division.
 1456         6. Unless otherwise provided in the bylaws, a vacancy
 1457  occurring on the board before the expiration of a term may be
 1458  filled by the affirmative vote of the majority of the remaining
 1459  directors, even if the remaining directors constitute less than
 1460  a quorum, or by the sole remaining director. In the alternative,
 1461  a board may hold an election to fill the vacancy, in which case
 1462  the election procedures must conform to the requirements of
 1463  subparagraph 1. unless the association has opted out of the
 1464  statutory election process, in which case the bylaws of the
 1465  association control. Unless otherwise provided in the bylaws, a
 1466  board member appointed or elected under this subparagraph shall
 1467  fill the vacancy for the unexpired term of the seat being
 1468  filled. Filling vacancies created by recall is governed by
 1469  paragraph (f) and rules adopted by the division.
 1470  
 1471  Notwithstanding subparagraphs (b)2. and (d)1., an association
 1472  may, by the affirmative vote of a majority of the total voting
 1473  interests, provide for a different voting and election procedure
 1474  in its bylaws, which vote may be by a proxy specifically
 1475  delineating the different voting and election procedures. The
 1476  different voting and election procedures may provide for
 1477  elections to be conducted by limited or general proxy.
 1478         (f) Recall of board members.—Subject to the provisions of
 1479  s. 719.301, any member of the board of administration may be
 1480  recalled and removed from office with or without cause by the
 1481  vote or agreement in writing by a majority of all the voting
 1482  interests. A special meeting of the voting interests to recall
 1483  any member of the board of administration may be called by 10
 1484  percent of the unit owners giving notice of the meeting as
 1485  required for a meeting of unit owners, and the notice shall
 1486  state the purpose of the meeting. Electronic transmission may
 1487  not be used as a method of giving notice of a meeting called in
 1488  whole or in part for this purpose.
 1489         1. If the recall is approved by a majority of all voting
 1490  interests by a vote at a meeting, the recall shall be effective
 1491  as provided in this paragraph herein. The board shall duly
 1492  notice and hold a board meeting within 5 full business days
 1493  after of the adjournment of the unit owner meeting to recall one
 1494  or more board members. At the meeting, the board shall either
 1495  certify the recall, in which case such member or members shall
 1496  be recalled effective immediately and shall turn over to the
 1497  board within 5 full business days any and all records and
 1498  property of the association in their possession, or shall
 1499  proceed as set forth in subparagraph 3.
 1500         2. If the proposed recall is by an agreement in writing by
 1501  a majority of all voting interests, the agreement in writing or
 1502  a copy thereof shall be served on the association by certified
 1503  mail or by personal service in the manner authorized by chapter
 1504  48 and the Florida Rules of Civil Procedure. The board of
 1505  administration shall duly notice and hold a meeting of the board
 1506  within 5 full business days after receipt of the agreement in
 1507  writing. At the meeting, the board shall either certify the
 1508  written agreement to recall members of the board, in which case
 1509  such members shall be recalled effective immediately and shall
 1510  turn over to the board, within 5 full business days, any and all
 1511  records and property of the association in their possession, or
 1512  proceed as described in subparagraph 3.
 1513         3. If the board determines not to certify the written
 1514  agreement to recall members of the board, or does not certify
 1515  the recall by a vote at a meeting, the board shall, within 5
 1516  full business days after the board meeting, file with the
 1517  division a petition for binding arbitration pursuant to the
 1518  procedures of s. 719.1255. For purposes of this paragraph, the
 1519  unit owners who voted at the meeting or who executed the
 1520  agreement in writing shall constitute one party under the
 1521  petition for arbitration. If the arbitrator certifies the recall
 1522  as to any member of the board, the recall shall be effective
 1523  upon mailing of the final order of arbitration to the
 1524  association. If the association fails to comply with the order
 1525  of the arbitrator, the division may take action pursuant to s.
 1526  719.501. Any member so recalled shall deliver to the board any
 1527  and all records and property of the association in the member’s
 1528  possession within 5 full business days after of the effective
 1529  date of the recall.
 1530         4. If the board fails to duly notice and hold a board
 1531  meeting within 5 full business days after of service of an
 1532  agreement in writing or within 5 full business days after of the
 1533  adjournment of the unit owner recall meeting, the recall shall
 1534  be deemed effective and the board members so recalled shall
 1535  immediately turn over to the board any and all records and
 1536  property of the association.
 1537         5. If the board fails to duly notice and hold the required
 1538  meeting or fails to file the required petition, the unit owner
 1539  representative may file a petition pursuant to s. 719.1255
 1540  challenging the board’s failure to act. The petition must be
 1541  filed within 60 days after the expiration of the applicable 5
 1542  full-business-day period. The review of a petition under this
 1543  subparagraph is limited to the sufficiency of service on the
 1544  board and the facial validity of the written agreement or
 1545  ballots filed.
 1546         6.5. If a vacancy occurs on the board as a result of a
 1547  recall and less than a majority of the board members are
 1548  removed, the vacancy may be filled by the affirmative vote of a
 1549  majority of the remaining directors, notwithstanding any
 1550  provision to the contrary contained in this chapter. If
 1551  vacancies occur on the board as a result of a recall and a
 1552  majority or more of the board members are removed, the vacancies
 1553  shall be filled in accordance with procedural rules to be
 1554  adopted by the division, which rules need not be consistent with
 1555  this chapter. The rules must provide procedures governing the
 1556  conduct of the recall election as well as the operation of the
 1557  association during the period after a recall but before prior to
 1558  the recall election.
 1559         7. A board member who has been recalled may file a petition
 1560  pursuant to s. 719.1255 challenging the validity of the recall.
 1561  The petition must be filed within 60 days after the recall is
 1562  deemed certified. The association and the unit owner
 1563  representative shall be named as the respondents.
 1564         8. The division may not accept for filing a recall
 1565  petition, whether filed pursuant to subparagraph 1.,
 1566  subparagraph 2., subparagraph 5., or subparagraph 7. and
 1567  regardless of whether the recall was certified, when there are
 1568  60 or fewer days until the scheduled reelection of the board
 1569  member sought to be recalled or when 60 or fewer days have not
 1570  elapsed since the election of the board member sought to be
 1571  recalled.
 1572         Section 13. Paragraph (a) of subsection (3) of section
 1573  719.303, Florida Statutes, is amended to read:
 1574         719.303 Obligations of owners.—
 1575         (3) The association may levy reasonable fines for failure
 1576  of the unit owner or the unit’s occupant, licensee, or invitee
 1577  to comply with any provision of the cooperative documents or
 1578  reasonable rules of the association. A fine may not become a
 1579  lien against a unit. A fine may be levied on the basis of each
 1580  day of a continuing violation, with a single notice and
 1581  opportunity for hearing. However, the fine may not exceed $100
 1582  per violation, or $1,000 in the aggregate.
 1583         (a) An association may suspend, for a reasonable period of
 1584  time, the right of a unit owner, or a unit owner’s tenant,
 1585  guest, or invitee, to use the common elements, common
 1586  facilities, or any other association property for failure to
 1587  comply with any provision of the cooperative documents or
 1588  reasonable rules of the association. This paragraph does not
 1589  apply to limited common elements intended to be used only by
 1590  that unit, common elements needed to access the unit, utility
 1591  services provided to the unit, parking spaces, or elevators.
 1592         Section 14. Paragraph (k) of subsection (1) of section
 1593  719.501, Florida Statutes, is amended to read:
 1594         719.501 Powers and duties of Division of Florida
 1595  Condominiums, Timeshares, and Mobile Homes.—
 1596         (1) The Division of Florida Condominiums, Timeshares, and
 1597  Mobile Homes of the Department of Business and Professional
 1598  Regulation, referred to as the “division” in this part, in
 1599  addition to other powers and duties prescribed by chapter 718,
 1600  has the power to enforce and ensure compliance with this chapter
 1601  and adopted rules relating to the development, construction,
 1602  sale, lease, ownership, operation, and management of residential
 1603  cooperative units. In performing its duties, the division shall
 1604  have the following powers and duties:
 1605         (k) The division shall provide training and educational
 1606  programs for cooperative association board members and unit
 1607  owners. The training may, in the division’s discretion, include
 1608  web-based electronic media, and live training and seminars in
 1609  various locations throughout the state. The division may review
 1610  and approve education and training programs for board members
 1611  and unit owners offered by providers and shall maintain a
 1612  current list of approved programs and providers and make such
 1613  list available to board members and unit owners in a reasonable
 1614  and cost-effective manner.
 1615         Section 15. Subsection (5), paragraphs (a) and (b) of
 1616  subsection (7), and subsection (10) of section 720.303, Florida
 1617  Statutes, are amended to read:
 1618         720.303 Association powers and duties; meetings of board;
 1619  official records; budgets; financial reporting; association
 1620  funds; recalls.—
 1621         (5) INSPECTION AND COPYING OF RECORDS.—The official records
 1622  shall be maintained within the state and must be open to
 1623  inspection and available for photocopying by members or their
 1624  authorized agents at reasonable times and places within 10
 1625  business days after receipt of a written request for access.
 1626  This subsection may be complied with by having a copy of the
 1627  official records available for inspection or copying in the
 1628  community. If the association has a photocopy machine available
 1629  where the records are maintained, it must provide parcel owners
 1630  with copies on request during the inspection if the entire
 1631  request is limited to no more than 25 pages. An association
 1632  shall allow a member or his or her authorized representative to
 1633  use a portable device, including a smartphone, tablet, portable
 1634  scanner, or any other technology capable of scanning or taking
 1635  photographs, to make an electronic copy of the official records
 1636  in lieu of the association’s providing the member or his or her
 1637  authorized representative with a copy of such records. The
 1638  association may not charge a member or his or her authorized
 1639  representative for the use of a portable device.
 1640         (a) The failure of an association to provide access to the
 1641  records within 10 business days after receipt of a written
 1642  request submitted by certified mail, return receipt requested,
 1643  creates a rebuttable presumption that the association willfully
 1644  failed to comply with this subsection.
 1645         (b) A member who is denied access to official records is
 1646  entitled to the actual damages or minimum damages for the
 1647  association’s willful failure to comply with this subsection.
 1648  The minimum damages are to be $50 per calendar day up to 10
 1649  days, the calculation to begin on the 11th business day after
 1650  receipt of the written request.
 1651         (c) The association may adopt reasonable written rules
 1652  governing the frequency, time, location, notice, records to be
 1653  inspected, and manner of inspections, but may not require a
 1654  parcel owner to demonstrate any proper purpose for the
 1655  inspection, state any reason for the inspection, or limit a
 1656  parcel owner’s right to inspect records to less than one 8-hour
 1657  business day per month. The association may impose fees to cover
 1658  the costs of providing copies of the official records,
 1659  including, without limitation, the costs of copying. The
 1660  association may charge up to 50 cents per page for copies made
 1661  on the association’s photocopier. If the association does not
 1662  have a photocopy machine available where the records are kept,
 1663  or if the records requested to be copied exceed 25 pages in
 1664  length, the association may have copies made by an outside
 1665  vendor or association management company personnel and may
 1666  charge the actual cost of copying, including any reasonable
 1667  costs involving personnel fees and charges at an hourly rate for
 1668  vendor or employee time to cover administrative costs to the
 1669  vendor or association. The association shall maintain an
 1670  adequate number of copies of the recorded governing documents,
 1671  to ensure their availability to members and prospective members.
 1672  Notwithstanding this paragraph, the following records are not
 1673  accessible to members or parcel owners:
 1674         1. Any record protected by the lawyer-client privilege as
 1675  described in s. 90.502 and any record protected by the work
 1676  product privilege, including, but not limited to, a record
 1677  prepared by an association attorney or prepared at the
 1678  attorney’s express direction which reflects a mental impression,
 1679  conclusion, litigation strategy, or legal theory of the attorney
 1680  or the association and which was prepared exclusively for civil
 1681  or criminal litigation or for adversarial administrative
 1682  proceedings or which was prepared in anticipation of such
 1683  litigation or proceedings until the conclusion of the litigation
 1684  or proceedings.
 1685         2. Information obtained by an association in connection
 1686  with the approval of the lease, sale, or other transfer of a
 1687  parcel.
 1688         3. Personnel records of association or management company
 1689  the association’s employees, including, but not limited to,
 1690  disciplinary, payroll, health, and insurance records. For
 1691  purposes of this subparagraph, the term “personnel records” does
 1692  not include written employment agreements with an association or
 1693  management company employee or budgetary or financial records
 1694  that indicate the compensation paid to an association or
 1695  management company employee.
 1696         4. Medical records of parcel owners or community residents.
 1697         5. Social security numbers, driver driver’s license
 1698  numbers, credit card numbers, electronic mailing addresses,
 1699  telephone numbers, facsimile numbers, emergency contact
 1700  information, any addresses for a parcel owner other than as
 1701  provided for association notice requirements, and other personal
 1702  identifying information of any person, excluding the person’s
 1703  name, parcel designation, mailing address, and property address.
 1704  Notwithstanding the restrictions in this subparagraph, an
 1705  association may print and distribute to parcel owners a
 1706  directory containing the name, parcel address, and telephone
 1707  number of each parcel owner. However, an owner may exclude his
 1708  or her telephone number from the directory by so requesting in
 1709  writing to the association consent in writing to the disclosure
 1710  of protected information described in this subparagraph. The
 1711  association is not liable for the disclosure of information that
 1712  is protected under this subparagraph if the information is
 1713  included in an official record of the association and is
 1714  voluntarily provided by an owner and not requested by the
 1715  association.
 1716         6. Any electronic security measure that is used by the
 1717  association to safeguard data, including passwords.
 1718         7. The software and operating system used by the
 1719  association which allows the manipulation of data, even if the
 1720  owner owns a copy of the same software used by the association.
 1721  The data is part of the official records of the association.
 1722         (d) The association or its authorized agent is not required
 1723  to provide a prospective purchaser or lienholder with
 1724  information about the residential subdivision or the association
 1725  other than information or documents required by this chapter to
 1726  be made available or disclosed. The association or its
 1727  authorized agent may charge a reasonable fee to the prospective
 1728  purchaser or lienholder or the current parcel owner or member
 1729  for providing good faith responses to requests for information
 1730  by or on behalf of a prospective purchaser or lienholder, other
 1731  than that required by law, if the fee does not exceed $150 plus
 1732  the reasonable cost of photocopying and any attorney attorney’s
 1733  fees incurred by the association in connection with the
 1734  response.
 1735         (7) FINANCIAL REPORTING.—Within 90 days after the end of
 1736  the fiscal year, or annually on the date provided in the bylaws,
 1737  the association shall prepare and complete, or contract with a
 1738  third party for the preparation and completion of, a financial
 1739  report for the preceding fiscal year. Within 21 days after the
 1740  final financial report is completed by the association or
 1741  received from the third party, but not later than 120 days after
 1742  the end of the fiscal year or other date as provided in the
 1743  bylaws, the association shall, within the time limits set forth
 1744  in subsection (5), provide each member with a copy of the annual
 1745  financial report or a written notice that a copy of the
 1746  financial report is available upon request at no charge to the
 1747  member. Financial reports shall be prepared as follows:
 1748         (a) An association that meets the criteria of this
 1749  paragraph shall prepare or cause to be prepared a complete set
 1750  of financial statements in accordance with generally accepted
 1751  accounting principles as adopted by the Board of Accountancy.
 1752  The financial statements shall be based upon the association’s
 1753  total annual revenues, as follows:
 1754         1. An association with total annual revenues of $150,000
 1755  $100,000 or more, but less than $300,000 $200,000, shall prepare
 1756  compiled financial statements.
 1757         2. An association with total annual revenues of at least
 1758  $300,000 $200,000, but less than $500,000 $400,000, shall
 1759  prepare reviewed financial statements.
 1760         3. An association with total annual revenues of $500,000
 1761  $400,000 or more shall prepare audited financial statements.
 1762         (b)1. An association with total annual revenues of less
 1763  than $150,000 $100,000 shall prepare a report of cash receipts
 1764  and expenditures.
 1765         2. An association in a community of fewer than 50 parcels,
 1766  regardless of the association’s annual revenues, may prepare a
 1767  report of cash receipts and expenditures in lieu of financial
 1768  statements required by paragraph (a) unless the governing
 1769  documents provide otherwise.
 1770         3. A report of cash receipts and disbursement must disclose
 1771  the amount of receipts by accounts and receipt classifications
 1772  and the amount of expenses by accounts and expense
 1773  classifications, including, but not limited to, the following,
 1774  as applicable: costs for security, professional, and management
 1775  fees and expenses; taxes; costs for recreation facilities;
 1776  expenses for refuse collection and utility services; expenses
 1777  for lawn care; costs for building maintenance and repair;
 1778  insurance costs; administration and salary expenses; and
 1779  reserves if maintained by the association.
 1780         (10) RECALL OF DIRECTORS.—
 1781         (a)1. Regardless of any provision to the contrary contained
 1782  in the governing documents, subject to the provisions of s.
 1783  720.307 regarding transition of association control, any member
 1784  of the board of directors may be recalled and removed from
 1785  office with or without cause by a majority of the total voting
 1786  interests.
 1787         2. When the governing documents, including the declaration,
 1788  articles of incorporation, or bylaws, provide that only a
 1789  specific class of members is entitled to elect a board director
 1790  or directors, only that class of members may vote to recall
 1791  those board directors so elected.
 1792         (b)1. Board directors may be recalled by an agreement in
 1793  writing or by written ballot without a membership meeting. The
 1794  agreement in writing or the written ballots, or a copy thereof,
 1795  shall be served on the association by certified mail or by
 1796  personal service in the manner authorized by chapter 48 and the
 1797  Florida Rules of Civil Procedure.
 1798         2. The board shall duly notice and hold a meeting of the
 1799  board within 5 full business days after receipt of the agreement
 1800  in writing or written ballots. At the meeting, the board shall
 1801  either certify the written ballots or written agreement to
 1802  recall a director or directors of the board, in which case such
 1803  director or directors shall be recalled effective immediately
 1804  and shall turn over to the board within 5 full business days any
 1805  and all records and property of the association in their
 1806  possession, or proceed as described in paragraph (d).
 1807         3. When it is determined by the department pursuant to
 1808  binding arbitration proceedings that an initial recall effort
 1809  was defective, written recall agreements or written ballots used
 1810  in the first recall effort and not found to be defective may be
 1811  reused in one subsequent recall effort. However, in no event is
 1812  a written agreement or written ballot valid for more than 120
 1813  days after it has been signed by the member.
 1814         4. Any rescission or revocation of a member’s written
 1815  recall ballot or agreement must be in writing and, in order to
 1816  be effective, must be delivered to the association before the
 1817  association is served with the written recall agreements or
 1818  ballots.
 1819         5. The agreement in writing or ballot shall list at least
 1820  as many possible replacement directors as there are directors
 1821  subject to the recall, when at least a majority of the board is
 1822  sought to be recalled; the person executing the recall
 1823  instrument may vote for as many replacement candidates as there
 1824  are directors subject to the recall.
 1825         (c)1. If the declaration, articles of incorporation, or
 1826  bylaws specifically provide, the members may also recall and
 1827  remove a board director or directors by a vote taken at a
 1828  meeting. If so provided in the governing documents, a special
 1829  meeting of the members to recall a director or directors of the
 1830  board of administration may be called by 10 percent of the
 1831  voting interests giving notice of the meeting as required for a
 1832  meeting of members, and the notice shall state the purpose of
 1833  the meeting. Electronic transmission may not be used as a method
 1834  of giving notice of a meeting called in whole or in part for
 1835  this purpose.
 1836         2. The board shall duly notice and hold a board meeting
 1837  within 5 full business days after the adjournment of the member
 1838  meeting to recall one or more directors. At the meeting, the
 1839  board shall certify the recall, in which case such member or
 1840  members shall be recalled effective immediately and shall turn
 1841  over to the board within 5 full business days any and all
 1842  records and property of the association in their possession, or
 1843  shall proceed as set forth in paragraph subparagraph (d).
 1844         (d) If the board determines not to certify the written
 1845  agreement or written ballots to recall a director or directors
 1846  of the board or does not certify the recall by a vote at a
 1847  meeting, the board shall, within 5 full business days after the
 1848  meeting, file with the department a petition for binding
 1849  arbitration pursuant to the applicable procedures in ss.
 1850  718.112(2)(j) and 718.1255 and the rules adopted thereunder. For
 1851  the purposes of this section, the members who voted at the
 1852  meeting or who executed the agreement in writing shall
 1853  constitute one party under the petition for arbitration. If the
 1854  arbitrator certifies the recall as to any director or directors
 1855  of the board, the recall will be effective upon mailing of the
 1856  final order of arbitration to the association. The director or
 1857  directors so recalled shall deliver to the board any and all
 1858  records of the association in their possession within 5 full
 1859  business days after the effective date of the recall.
 1860         (e) If a vacancy occurs on the board as a result of a
 1861  recall and less than a majority of the board directors are
 1862  removed, the vacancy may be filled by the affirmative vote of a
 1863  majority of the remaining directors, notwithstanding any
 1864  provision to the contrary contained in this subsection or in the
 1865  association documents. If vacancies occur on the board as a
 1866  result of a recall and a majority or more of the board directors
 1867  are removed, the vacancies shall be filled by members voting in
 1868  favor of the recall; if removal is at a meeting, any vacancies
 1869  shall be filled by the members at the meeting. If the recall
 1870  occurred by agreement in writing or by written ballot, members
 1871  may vote for replacement directors in the same instrument in
 1872  accordance with procedural rules adopted by the division, which
 1873  rules need not be consistent with this subsection.
 1874         (f) If the board fails to duly notice and hold a board
 1875  meeting within 5 full business days after service of an
 1876  agreement in writing or within 5 full business days after the
 1877  adjournment of the member recall meeting, the recall shall be
 1878  deemed effective and the board directors so recalled shall
 1879  immediately turn over to the board all records and property of
 1880  the association.
 1881         (g) If the board fails to duly notice and hold the required
 1882  meeting or fails to file the required petition, the unit owner
 1883  representative may file a petition pursuant to s. 718.1255
 1884  challenging the board’s failure to act. The petition must be
 1885  filed within 60 days after the expiration of the applicable 5
 1886  full-business-day period. The review of a petition under this
 1887  paragraph is limited to the sufficiency of service on the board
 1888  and the facial validity of the written agreement or ballots
 1889  filed.
 1890         (h)(g) If a director who is removed fails to relinquish his
 1891  or her office or turn over records as required under this
 1892  section, the circuit court in the county where the association
 1893  maintains its principal office may, upon the petition of the
 1894  association, summarily order the director to relinquish his or
 1895  her office and turn over all association records upon
 1896  application of the association.
 1897         (i)(h) The minutes of the board meeting at which the board
 1898  decides whether to certify the recall are an official
 1899  association record. The minutes must record the date and time of
 1900  the meeting, the decision of the board, and the vote count taken
 1901  on each board member subject to the recall. In addition, when
 1902  the board decides not to certify the recall, as to each vote
 1903  rejected, the minutes must identify the parcel number and the
 1904  specific reason for each such rejection.
 1905         (j)(i) When the recall of more than one board director is
 1906  sought, the written agreement, ballot, or vote at a meeting
 1907  shall provide for a separate vote for each board director sought
 1908  to be recalled.
 1909         (k) A board member who has been recalled may file a
 1910  petition pursuant to ss. 718.112(2)(j) and 718.1255 and the
 1911  rules adopted challenging the validity of the recall. The
 1912  petition must be filed within 60 days after the recall is deemed
 1913  certified. The association and the unit owner representative
 1914  shall be named as respondents.
 1915         (l) The division may not accept for filing a recall
 1916  petition, whether filed pursuant to paragraph (b), paragraph
 1917  (c), paragraph (g), or paragraph (k) and regardless of whether
 1918  the recall was certified, when there are 60 or fewer days until
 1919  the scheduled reelection of the board member sought to be
 1920  recalled or when 60 or fewer days have not elapsed since the
 1921  election of the board member sought to be recalled.
 1922         Section 16. Subsection (2) of section 720.305, Florida
 1923  Statutes, is amended to read:
 1924         720.305 Obligations of members; remedies at law or in
 1925  equity; levy of fines and suspension of use rights.—
 1926         (2) The association may levy reasonable fines of up to $100
 1927  per violation against any member or any member’s tenant, guest,
 1928  or invitee for the failure of the owner of the parcel or its
 1929  occupant, licensee, or invitee to comply with any provision of
 1930  the declaration, the association bylaws, or reasonable rules of
 1931  the association. A fine may be levied for each day of a
 1932  continuing violation, with a single notice and opportunity for
 1933  hearing, except that the fine may not exceed $1,000 in the
 1934  aggregate unless otherwise provided in the governing documents.
 1935  A fine of less than $1,000 may not become a lien against a
 1936  parcel. In any action to recover a fine, the prevailing party is
 1937  entitled to reasonable attorney attorney’s fees and costs from
 1938  the nonprevailing party as determined by the court.
 1939         (a) An association may suspend, for a reasonable period of
 1940  time, the right of a member, or a member’s tenant, guest, or
 1941  invitee, to use common areas and facilities for the failure of
 1942  the owner of the parcel or its occupant, licensee, or invitee to
 1943  comply with any provision of the declaration, the association
 1944  bylaws, or reasonable rules of the association. This paragraph
 1945  does not apply to that portion of common areas used to provide
 1946  access or utility services to the parcel. A suspension may not
 1947  impair the right of an owner or tenant of a parcel to have
 1948  vehicular and pedestrian ingress to and egress from the parcel,
 1949  including, but not limited to, the right to park.
 1950         (b) A fine or suspension may not be imposed without at
 1951  least 14 days’ notice to the person sought to be fined or
 1952  suspended and an opportunity for a hearing before a committee of
 1953  at least three members appointed by the board who are not
 1954  officers, directors, or employees of the association, or the
 1955  spouse, parent, child, brother, or sister of an officer,
 1956  director, or employee. If the committee, by majority vote, does
 1957  not approve a proposed fine or suspension, it may not be
 1958  imposed. If the association imposes a fine or suspension, the
 1959  association must provide written notice of such fine or
 1960  suspension by mail or hand delivery to the parcel owner and, if
 1961  applicable, to any tenant, licensee, or invitee of the parcel
 1962  owner.
 1963         Section 17. Paragraph (d) is added to subsection (1) of
 1964  section 720.306, Florida Statutes, and subsection (6) and
 1965  paragraph (a) of subsection (9) of that section are amended, to
 1966  read:
 1967         720.306 Meetings of members; voting and election
 1968  procedures; amendments.—
 1969         (1) QUORUM; AMENDMENTS.—
 1970         (d) The Legislature finds that the procurement of mortgagee
 1971  consent to amendments that do not affect the rights or interests
 1972  of mortgagees is an unreasonable and substantial logistical and
 1973  financial burden on the parcel owners and that there is a
 1974  compelling state interest in enabling the members of an
 1975  association to approve amendments to the association’s governing
 1976  documents through legal means. Accordingly, and notwithstanding
 1977  any provision of this paragraph to the contrary:
 1978         1. As to any mortgage recorded on or after July 1, 2013,
 1979  any provision in the association’s governing documents that
 1980  requires the consent or joinder of some or all mortgagees of
 1981  parcels or any other portion of the association’s common areas
 1982  to amend the association’s governing documents or for any other
 1983  matter is enforceable only as to amendments to the association’s
 1984  governing documents that adversely affect the priority of the
 1985  mortgagee’s lien or the mortgagee’s rights to foreclose its lien
 1986  or that otherwise materially affect the rights and interests of
 1987  the mortgagees.
 1988         2. As to mortgages recorded before July 1, 2013, any
 1989  existing provisions in the association’s governing documents
 1990  requiring mortgagee consent are enforceable.
 1991         3. In securing consent or joinder, the association is
 1992  entitled to rely upon the public records to identify the holders
 1993  of outstanding mortgages. The association may use the address
 1994  provided in the original recorded mortgage document, unless
 1995  there is a different address for the holder of the mortgage in a
 1996  recorded assignment or modification of the mortgage, which
 1997  recorded assignment or modification must reference the official
 1998  records book and page on which the original mortgage was
 1999  recorded. Once the association has identified the recorded
 2000  mortgages of record, the association shall, in writing, request
 2001  of each parcel owner whose parcel is encumbered by a mortgage of
 2002  record any information that the owner has in his or her
 2003  possession regarding the name and address of the person to whom
 2004  mortgage payments are currently being made. Notice shall be sent
 2005  to such person if the address provided in the original recorded
 2006  mortgage document is different from the name and address of the
 2007  mortgagee or assignee of the mortgage as shown by the public
 2008  record. The association is deemed to have complied with this
 2009  requirement by making the written request of the parcel owners
 2010  required under this subparagraph. Any notices required to be
 2011  sent to the mortgagees under this subparagraph shall be sent to
 2012  all available addresses provided to the association.
 2013         4. Any notice to the mortgagees required under subparagraph
 2014  3. may be sent by a method that establishes proof of delivery,
 2015  and any mortgagee who fails to respond within 60 days after the
 2016  date of mailing is deemed to have consented to the amendment.
 2017         5. For those amendments requiring mortgagee consent on or
 2018  after July 1, 2013, in the event mortgagee consent is provided
 2019  other than by properly recorded joinder, such consent shall be
 2020  evidenced by affidavit of the association recorded in the public
 2021  records of the county in which the declaration is recorded.
 2022         6. Any amendment adopted without the required consent of a
 2023  mortgagee is voidable only by a mortgagee who was entitled to
 2024  notice and an opportunity to consent. An action to void an
 2025  amendment is subject to the statute of limitations beginning 5
 2026  years after the date of discovery as to the amendments described
 2027  in subparagraph 1. and 5 years after the date of recordation of
 2028  the certificate of amendment for all other amendments. This
 2029  subparagraph applies to all mortgages, regardless of the date of
 2030  recordation of the mortgage.
 2031         (6) RIGHT TO SPEAK.—Members and parcel owners have the
 2032  right to attend all membership meetings and to speak at any
 2033  meeting with reference to all items opened for discussion or
 2034  included on the agenda. Notwithstanding any provision to the
 2035  contrary in the governing documents or any rules adopted by the
 2036  board or by the membership, a member and a parcel owner have the
 2037  right to speak for at least 3 minutes on any item, provided that
 2038  the member or parcel owner submits a written request to speak
 2039  prior to the meeting. The association may adopt written
 2040  reasonable rules governing the frequency, duration, and other
 2041  manner of member and parcel owner statements, which rules must
 2042  be consistent with this subsection.
 2043         (9)(a) ELECTIONS AND BOARD VACANCIES.—
 2044         (a) Elections of directors must be conducted in accordance
 2045  with the procedures set forth in the governing documents of the
 2046  association. All members of the association are eligible to
 2047  serve on the board of directors, and a member may nominate
 2048  himself or herself as a candidate for the board at a meeting
 2049  where the election is to be held or, if the election process
 2050  allows voting by absentee ballot, in advance of the balloting.
 2051  Except as otherwise provided in the governing documents, boards
 2052  of directors must be elected by a plurality of the votes cast by
 2053  eligible voters. Any challenge to the election process must be
 2054  commenced within 60 days after the election results are
 2055  announced.
 2056         Section 18. This act shall take effect July 1, 2013.