Florida Senate - 2017                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 744
       
       
       
       
       
       
                                Ì595004zÎ595004                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                                       .                                
                                       .                                
                                       .                                
                Floor: 1/AD/2R         .                                
             05/02/2017 05:21 PM       .                                
       —————————————————————————————————————————————————————————————————




       —————————————————————————————————————————————————————————————————
       Senator Passidomo moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 633.2225, Florida Statutes, is created
    6  to read:
    7         633.2225Condominium and cooperative buildings without
    8  sprinkler systems; notice requirements; enforcement.—
    9         (1)The board of a condominium or cooperative association
   10  that operates a building of three stories or more that has not
   11  installed a sprinkler system in the common areas of the building
   12  shall mark the building with a sign or symbol approved by the
   13  State Fire Marshal in a manner sufficient to warn persons
   14  conducting fire control and other emergency operations of the
   15  lack of a sprinkler system in the common areas.
   16         (2)The State Fire Marshal shall:
   17         (a)Ensure that the dimensions and placement of the sign or
   18  symbol do not diminish the aesthetic value of the building; and
   19         (b)Adopt rules necessary to implement the provisions of
   20  this section, including, but not limited to:
   21         1.The dimensions and color of such sign or symbol.
   22         2.The time within which the condominium or cooperative
   23  buildings without sprinkler systems shall be marked as required
   24  by this section.
   25         3.The location on each condominium or cooperative building
   26  without a sprinkler system where such sign or symbol must be
   27  posted.
   28         (3)The State Fire Marshal, and local fire officials in
   29  accordance with s. 633.118, shall enforce this section. An
   30  association that fails to comply with the requirements of this
   31  section is subject to penalties as provided in s. 633.228.
   32         Section 2. Paragraphs (a) and (d) of subsection (1),
   33  subsections (3), (9), (12), and (13) of section 718.111, Florida
   34  Statutes, are amended, and subsection (15) is added to that
   35  section, to read:
   36         718.111 The association.—
   37         (1) CORPORATE ENTITY.—
   38         (a) The operation of the condominium shall be by the
   39  association, which must be a Florida corporation for profit or a
   40  Florida corporation not for profit. However, any association
   41  which was in existence on January 1, 1977, need not be
   42  incorporated. The owners of units shall be shareholders or
   43  members of the association. The officers and directors of the
   44  association have a fiduciary relationship to the unit owners. It
   45  is the intent of the Legislature that nothing in this paragraph
   46  shall be construed as providing for or removing a requirement of
   47  a fiduciary relationship between any manager employed by the
   48  association and the unit owners. An officer, director, or
   49  manager may not solicit, offer to accept, or accept any thing or
   50  service of value or kickback for which consideration has not
   51  been provided for his or her own benefit or that of his or her
   52  immediate family, from any person providing or proposing to
   53  provide goods or services to the association. Any such officer,
   54  director, or manager who knowingly so solicits, offers to
   55  accept, or accepts any thing or service of value or kickback is
   56  subject to a civil penalty pursuant to s. 718.501(1)(d) and, if
   57  applicable, a criminal penalty as provided in paragraph (d).
   58  However, this paragraph does not prohibit an officer, director,
   59  or manager from accepting services or items received in
   60  connection with trade fairs or education programs. An
   61  association may operate more than one condominium.
   62         (d) As required by s. 617.0830, an officer, director, or
   63  agent shall discharge his or her duties in good faith, with the
   64  care an ordinarily prudent person in a like position would
   65  exercise under similar circumstances, and in a manner he or she
   66  reasonably believes to be in the interests of the association.
   67  An officer, director, or agent shall be liable for monetary
   68  damages as provided in s. 617.0834 if such officer, director, or
   69  agent breached or failed to perform his or her duties and the
   70  breach of, or failure to perform, his or her duties constitutes
   71  a violation of criminal law as provided in s. 617.0834;
   72  constitutes a transaction from which the officer or director
   73  derived an improper personal benefit, either directly or
   74  indirectly; or constitutes recklessness or an act or omission
   75  that was in bad faith, with malicious purpose, or in a manner
   76  exhibiting wanton and willful disregard of human rights, safety,
   77  or property. Forgery of a ballot envelope or voting certificate
   78  used in a condominium association election is punishable as
   79  provided in s. 831.01, the theft or embezzlement of funds of a
   80  condominium association is punishable as provided in s. 812.014,
   81  and the destruction of or the refusal to allow inspection or
   82  copying of an official record of a condominium association which
   83  is accessible to unit owners within the timeframe required by
   84  general law in furtherance of any crime is punishable as
   85  tampering with physical evidence as provided in s. 918.13 or as
   86  obstruction of justice as provided in chapter 843. An officer or
   87  director charged by information or indictment with a crime
   88  referenced in this paragraph must be removed from office, and
   89  the vacancy shall be filled as provided in s. 718.112(2)(d)2.
   90  until the end of the officer’s or director’s period of
   91  suspension or the end of his or her term of office, whichever
   92  occurs first. If a criminal charge is pending against the
   93  officer or director, he or she may not be appointed or elected
   94  to a position as an officer or a director of any association and
   95  may not have access to the official records of any association,
   96  except pursuant to a court order. However, if the charges are
   97  resolved without a finding of guilt, the officer or director
   98  must be reinstated for the remainder of his or her term of
   99  office, if any.
  100         (3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT,
  101  SUE, AND BE SUED; CONFLICT OF INTEREST.—
  102         (a) The association may contract, sue, or be sued with
  103  respect to the exercise or nonexercise of its powers. For these
  104  purposes, the powers of the association include, but are not
  105  limited to, the maintenance, management, and operation of the
  106  condominium property. After control of the association is
  107  obtained by unit owners other than the developer, the
  108  association may institute, maintain, settle, or appeal actions
  109  or hearings in its name on behalf of all unit owners concerning
  110  matters of common interest to most or all unit owners,
  111  including, but not limited to, the common elements; the roof and
  112  structural components of a building or other improvements;
  113  mechanical, electrical, and plumbing elements serving an
  114  improvement or a building; representations of the developer
  115  pertaining to any existing or proposed commonly used facilities;
  116  and protesting ad valorem taxes on commonly used facilities and
  117  on units; and may defend actions in eminent domain or bring
  118  inverse condemnation actions. If the association has the
  119  authority to maintain a class action, the association may be
  120  joined in an action as representative of that class with
  121  reference to litigation and disputes involving the matters for
  122  which the association could bring a class action. Nothing herein
  123  limits any statutory or common-law right of any individual unit
  124  owner or class of unit owners to bring any action without
  125  participation by the association which may otherwise be
  126  available.
  127         (b) An association may not hire an attorney who represents
  128  the management company of the association.
  129         (9) PURCHASE OF UNITS.—The association has the power,
  130  unless prohibited by the declaration, articles of incorporation,
  131  or bylaws of the association, to purchase units in the
  132  condominium and to acquire and hold, lease, mortgage, and convey
  133  them. There shall be no limitation on the association’s right to
  134  purchase a unit at a foreclosure sale resulting from the
  135  association’s foreclosure of its lien for unpaid assessments, or
  136  to take title by deed in lieu of foreclosure. However, except
  137  for a timeshare condominium, a board member, manager, or
  138  management company may not purchase a unit at a foreclosure sale
  139  resulting from the association’s foreclosure of its lien for
  140  unpaid assessments or take title by deed in lieu of foreclosure.
  141         (12) OFFICIAL RECORDS.—
  142         (a) From the inception of the association, the association
  143  shall maintain each of the following items, if applicable, which
  144  constitutes the official records of the association:
  145         1. A copy of the plans, permits, warranties, and other
  146  items provided by the developer pursuant to s. 718.301(4).
  147         2. A photocopy of the recorded declaration of condominium
  148  of each condominium operated by the association and each
  149  amendment to each declaration.
  150         3. A photocopy of the recorded bylaws of the association
  151  and each amendment to the bylaws.
  152         4. A certified copy of the articles of incorporation of the
  153  association, or other documents creating the association, and
  154  each amendment thereto.
  155         5. A copy of the current rules of the association.
  156         6. A book or books that contain the minutes of all meetings
  157  of the association, the board of administration, and the unit
  158  owners, which minutes must be retained for at least 7 years.
  159         7. A current roster of all unit owners and their mailing
  160  addresses, unit identifications, and voting certifications, and,
  161  if known, telephone numbers. The association shall also maintain
  162  the electronic mailing addresses and facsimile numbers of unit
  163  owners consenting to receive notice by electronic transmission.
  164  The electronic mailing addresses and facsimile numbers are not
  165  accessible to unit owners if consent to receive notice by
  166  electronic transmission is not provided in accordance with sub
  167  subparagraph (c)3.e. subparagraph (c)5. However, the association
  168  is not liable for an inadvertent disclosure of the electronic
  169  mail address or facsimile number for receiving electronic
  170  transmission of notices.
  171         8. All current insurance policies of the association and
  172  condominiums operated by the association.
  173         9. A current copy of any management agreement, lease, or
  174  other contract to which the association is a party or under
  175  which the association or the unit owners have an obligation or
  176  responsibility.
  177         10. Bills of sale or transfer for all property owned by the
  178  association.
  179         11. Accounting records for the association and separate
  180  accounting records for each condominium that the association
  181  operates. All accounting records must be maintained for at least
  182  7 years. Any person who knowingly or intentionally defaces or
  183  destroys such records, or who knowingly or intentionally fails
  184  to create or maintain such records, with the intent of causing
  185  harm to the association or one or more of its members, is
  186  personally subject to a civil penalty pursuant to s.
  187  718.501(1)(d). The accounting records must include, but are not
  188  limited to:
  189         a. Accurate, itemized, and detailed records of all receipts
  190  and expenditures.
  191         b. A current account and a monthly, bimonthly, or quarterly
  192  statement of the account for each unit designating the name of
  193  the unit owner, the due date and amount of each assessment, the
  194  amount paid on the account, and the balance due.
  195         c. All audits, reviews, accounting statements, and
  196  financial reports of the association or condominium.
  197         d. All contracts for work to be performed. Bids for work to
  198  be performed are also considered official records and must be
  199  maintained by the association.
  200         12. Ballots, sign-in sheets, voting proxies, and all other
  201  papers and electronic records relating to voting by unit owners,
  202  which must be maintained for 1 year from the date of the
  203  election, vote, or meeting to which the document relates,
  204  notwithstanding paragraph (b).
  205         13. All rental records if the association is acting as
  206  agent for the rental of condominium units.
  207         14. A copy of the current question and answer sheet as
  208  described in s. 718.504.
  209         15. All other written records of the association not
  210  specifically included in the foregoing which are related to the
  211  operation of the association.
  212         16. A copy of the inspection report as described in s.
  213  718.301(4)(p).
  214         17. Bids for materials, equipment, or services.
  215         (b) The official records of the association must be
  216  maintained within the state for at least 7 years. The records of
  217  the association shall be made available to a unit owner within
  218  45 miles of the condominium property or within the county in
  219  which the condominium property is located within 10 5 working
  220  days after receipt of a written request by the board or its
  221  designee. However, such distance requirement does not apply to
  222  an association governing a timeshare condominium. This paragraph
  223  may be complied with by having a copy of the official records of
  224  the association available for inspection or copying on the
  225  condominium property or association property, or the association
  226  may offer the option of making the records available to a unit
  227  owner electronically via the Internet or by allowing the records
  228  to be viewed in electronic format on a computer screen and
  229  printed upon request. The association is not responsible for the
  230  use or misuse of the information provided to an association
  231  member or his or her authorized representative pursuant to the
  232  compliance requirements of this chapter unless the association
  233  has an affirmative duty not to disclose such information
  234  pursuant to this chapter.
  235         (c)1. The official records of the association are open to
  236  inspection by any association member or the authorized
  237  representative of such member at all reasonable times. The right
  238  to inspect the records includes the right to make or obtain
  239  copies, at the reasonable expense, if any, of the member or
  240  authorized representative of such member. A renter of a unit has
  241  a right to inspect and copy the association’s bylaws and rules.
  242  The association may adopt reasonable rules regarding the
  243  frequency, time, location, notice, and manner of record
  244  inspections and copying. The failure of an association to
  245  provide the records within 10 working days after receipt of a
  246  written request creates a rebuttable presumption that the
  247  association willfully failed to comply with this paragraph. A
  248  unit owner who is denied access to official records is entitled
  249  to the actual damages or minimum damages for the association’s
  250  willful failure to comply. Minimum damages are $50 per calendar
  251  day for up to 10 days, beginning on the 11th working day after
  252  receipt of the written request. The failure to permit inspection
  253  entitles any person prevailing in an enforcement action to
  254  recover reasonable attorney fees from the person in control of
  255  the records who, directly or indirectly, knowingly denied access
  256  to the records.
  257         2. Any person who knowingly or intentionally defaces or
  258  destroys accounting records that are required by this chapter to
  259  be maintained during the period for which such records are
  260  required to be maintained, or who knowingly or intentionally
  261  fails to create or maintain accounting records that are required
  262  to be created or maintained, with the intent of causing harm to
  263  the association or one or more of its members, is personally
  264  subject to a civil penalty pursuant to s. 718.501(1)(d).
  265         3. The association shall maintain an adequate number of
  266  copies of the declaration, articles of incorporation, bylaws,
  267  and rules, and all amendments to each of the foregoing, as well
  268  as the question and answer sheet as described in s. 718.504 and
  269  year-end financial information required under this section, on
  270  the condominium property to ensure their availability to unit
  271  owners and prospective purchasers, and may charge its actual
  272  costs for preparing and furnishing these documents to those
  273  requesting the documents. An association shall allow a member or
  274  his or her authorized representative to use a portable device,
  275  including a smartphone, tablet, portable scanner, or any other
  276  technology capable of scanning or taking photographs, to make an
  277  electronic copy of the official records in lieu of the
  278  association’s providing the member or his or her authorized
  279  representative with a copy of such records. The association may
  280  not charge a member or his or her authorized representative for
  281  the use of a portable device. Notwithstanding this paragraph,
  282  the following records are not accessible to unit owners:
  283         a.1. Any record protected by the lawyer-client privilege as
  284  described in s. 90.502 and any record protected by the work
  285  product privilege, including a record prepared by an association
  286  attorney or prepared at the attorney’s express direction, which
  287  reflects a mental impression, conclusion, litigation strategy,
  288  or legal theory of the attorney or the association, and which
  289  was prepared exclusively for civil or criminal litigation or for
  290  adversarial administrative proceedings, or which was prepared in
  291  anticipation of such litigation or proceedings until the
  292  conclusion of the litigation or proceedings.
  293         b.2. Information obtained by an association in connection
  294  with the approval of the lease, sale, or other transfer of a
  295  unit.
  296         c.3. Personnel records of association or management company
  297  employees, including, but not limited to, disciplinary, payroll,
  298  health, and insurance records. For purposes of this sub
  299  subparagraph subparagraph, the term “personnel records” does not
  300  include written employment agreements with an association
  301  employee or management company, or budgetary or financial
  302  records that indicate the compensation paid to an association
  303  employee.
  304         d.4. Medical records of unit owners.
  305         e.5. Social security numbers, driver license numbers,
  306  credit card numbers, e-mail addresses, telephone numbers,
  307  facsimile numbers, emergency contact information, addresses of a
  308  unit owner other than as provided to fulfill the association’s
  309  notice requirements, and other personal identifying information
  310  of any person, excluding the person’s name, unit designation,
  311  mailing address, property address, and any address, e-mail
  312  address, or facsimile number provided to the association to
  313  fulfill the association’s notice requirements. Notwithstanding
  314  the restrictions in this sub-subparagraph subparagraph, an
  315  association may print and distribute to parcel owners a
  316  directory containing the name, parcel address, and all telephone
  317  numbers of each parcel owner. However, an owner may exclude his
  318  or her telephone numbers from the directory by so requesting in
  319  writing to the association. An owner may consent in writing to
  320  the disclosure of other contact information described in this
  321  sub-subparagraph subparagraph. The association is not liable for
  322  the inadvertent disclosure of information that is protected
  323  under this sub-subparagraph subparagraph if the information is
  324  included in an official record of the association and is
  325  voluntarily provided by an owner and not requested by the
  326  association.
  327         f.6. Electronic security measures that are used by the
  328  association to safeguard data, including passwords.
  329         g.7. The software and operating system used by the
  330  association which allow the manipulation of data, even if the
  331  owner owns a copy of the same software used by the association.
  332  The data is part of the official records of the association.
  333         (d) The association shall prepare a question and answer
  334  sheet as described in s. 718.504, and shall update it annually.
  335         (e)1. The association or its authorized agent is not
  336  required to provide a prospective purchaser or lienholder with
  337  information about the condominium or the association other than
  338  information or documents required by this chapter to be made
  339  available or disclosed. The association or its authorized agent
  340  may charge a reasonable fee to the prospective purchaser,
  341  lienholder, or the current unit owner for providing good faith
  342  responses to requests for information by or on behalf of a
  343  prospective purchaser or lienholder, other than that required by
  344  law, if the fee does not exceed $150 plus the reasonable cost of
  345  photocopying and any attorney’s fees incurred by the association
  346  in connection with the response.
  347         2. An association and its authorized agent are not liable
  348  for providing such information in good faith pursuant to a
  349  written request if the person providing the information includes
  350  a written statement in substantially the following form: “The
  351  responses herein are made in good faith and to the best of my
  352  ability as to their accuracy.”
  353         (f) An outgoing board or committee member must relinquish
  354  all official records and property of the association in his or
  355  her possession or under his or her control to the incoming board
  356  within 5 days after the election. The division shall impose a
  357  civil penalty as set forth in s. 718.501(1)(d)6. against an
  358  outgoing board or committee member who willfully and knowingly
  359  fails to relinquish such records and property.
  360         (g)1. By July 1, 2018, an association with 150 or more
  361  units which does not manage timeshare units shall post digital
  362  copies of the documents specified in subparagraph 2. on its
  363  website.
  364         a. The association’s website must be:
  365         (I) An independent website or web portal wholly owned and
  366  operated by the association; or
  367         (II) A website or web portal operated by a third-party
  368  provider with whom the association owns, leases, rents, or
  369  otherwise obtains the right to operate a web page, subpage, web
  370  portal, or collection of subpages or web portals dedicated to
  371  the association’s activities and on which required notices,
  372  records, and documents may be posted by the association.
  373         b. The association’s website must be accessible through the
  374  Internet and must contain a subpage, web portal, or other
  375  protected electronic location that is inaccessible to the
  376  general public and accessible only to unit owners and employees
  377  of the association.
  378         c. Upon a unit owner’s written request, the association
  379  must provide the unit owner with a username and password and
  380  access to the protected sections of the association’s website
  381  which contain any notices, records, or documents that must be
  382  electronically provided.
  383         2. A current copy of the following documents must be posted
  384  in digital format on the association’s website:
  385         a. The recorded declaration of condominium of each
  386  condominium operated by the association and each amendment to
  387  each declaration.
  388         b. The recorded bylaws of the association and each
  389  amendment to the bylaws.
  390         c. The articles of incorporation of the association, or
  391  other documents creating the association, and each amendment
  392  thereto. The copy posted pursuant to this sub-subparagraph must
  393  be a copy of the articles of incorporation filed with the
  394  Department of State.
  395         d. The rules of the association.
  396         e. Any management agreement, lease, or other contract to
  397  which the association is a party or under which the association
  398  or the unit owners have an obligation or responsibility.
  399  Summaries of bids for materials, equipment, or services must be
  400  maintained on the website for 1 year.
  401         f. The annual budget required by s. 718.112(2)(f) and any
  402  proposed budget to be considered at the annual meeting.
  403         g. The financial report required by subsection (13) and any
  404  proposed financial report to be considered at a meeting.
  405         h. The certification of each director required by s.
  406  718.112(2)(d)4.b.
  407         i. All contracts or transactions between the association
  408  and any director, officer, corporation, firm, or association
  409  that is not an affiliated condominium association or any other
  410  entity in which an association director is also a director or
  411  officer and is financially interested.
  412         j. Any contract or document regarding a conflict of
  413  interest or possible conflict of interest as provided in ss.
  414  468.436(2) and 718.3026(3).
  415         k. The notice of any unit owner meeting and the agenda for
  416  the meeting, as required by s. 718.112(2)(d)3., no later than 14
  417  days before the meeting. The notice must be posted in plain view
  418  on the front page of the website, or on a separate subpage of
  419  the website labeled “Notices” which is conspicuously visible and
  420  linked from the front page. The association must also post on
  421  its website any document to be considered and voted on by the
  422  owners during the meeting or any document listed on the agenda
  423  at least 7 days before the meeting at which the document or the
  424  information within the document will be considered.
  425         l. Notice of any board meeting, the agenda, and any other
  426  document required for the meeting as required by s.
  427  718.112(2)(c), which must be posted no later than the date
  428  required for notice pursuant to s. 718.112(2)(c).
  429         3. The association shall ensure that the information and
  430  records described in paragraph (c) which are not permitted to be
  431  accessible to unit owners are not posted on the association’s
  432  website. If protected information or information restricted from
  433  being accessible to unit owners is included in documents that
  434  are required to be posted on the association’s website, the
  435  association shall ensure the information is redacted before
  436  posting the documents online.
  437         (13) FINANCIAL REPORTING.—Within 90 days after the end of
  438  the fiscal year, or annually on a date provided in the bylaws,
  439  the association shall prepare and complete, or contract for the
  440  preparation and completion of, a financial report for the
  441  preceding fiscal year. Within 21 days after the final financial
  442  report is completed by the association or received from the
  443  third party, but not later than 120 days after the end of the
  444  fiscal year or other date as provided in the bylaws, the
  445  association shall mail to each unit owner at the address last
  446  furnished to the association by the unit owner, or hand deliver
  447  to each unit owner, a copy of the most recent financial report
  448  or a notice that a copy of the most recent financial report will
  449  be mailed or hand delivered to the unit owner, without charge,
  450  within 5 business days after upon receipt of a written request
  451  from the unit owner. The division shall adopt rules setting
  452  forth uniform accounting principles and standards to be used by
  453  all associations and addressing the financial reporting
  454  requirements for multicondominium associations. The rules must
  455  include, but not be limited to, standards for presenting a
  456  summary of association reserves, including a good faith estimate
  457  disclosing the annual amount of reserve funds that would be
  458  necessary for the association to fully fund reserves for each
  459  reserve item based on the straight-line accounting method. This
  460  disclosure is not applicable to reserves funded via the pooling
  461  method. In adopting such rules, the division shall consider the
  462  number of members and annual revenues of an association.
  463  Financial reports shall be prepared as follows:
  464         (a) An association that meets the criteria of this
  465  paragraph shall prepare a complete set of financial statements
  466  in accordance with generally accepted accounting principles. The
  467  financial statements must be based upon the association’s total
  468  annual revenues, as follows:
  469         1. An association with total annual revenues of $150,000 or
  470  more, but less than $300,000, shall prepare compiled financial
  471  statements.
  472         2. An association with total annual revenues of at least
  473  $300,000, but less than $500,000, shall prepare reviewed
  474  financial statements.
  475         3. An association with total annual revenues of $500,000 or
  476  more shall prepare audited financial statements.
  477         (b)1. An association with total annual revenues of less
  478  than $150,000 shall prepare a report of cash receipts and
  479  expenditures.
  480         2. An association that operates fewer than 50 units,
  481  regardless of the association’s annual revenues, shall prepare a
  482  report of cash receipts and expenditures in lieu of financial
  483  statements required by paragraph (a).
  484         2.3. A report of cash receipts and disbursements must
  485  disclose the amount of receipts by accounts and receipt
  486  classifications and the amount of expenses by accounts and
  487  expense classifications, including, but not limited to, the
  488  following, as applicable: costs for security, professional and
  489  management fees and expenses, taxes, costs for recreation
  490  facilities, expenses for refuse collection and utility services,
  491  expenses for lawn care, costs for building maintenance and
  492  repair, insurance costs, administration and salary expenses, and
  493  reserves accumulated and expended for capital expenditures,
  494  deferred maintenance, and any other category for which the
  495  association maintains reserves.
  496         (c) An association may prepare, without a meeting of or
  497  approval by the unit owners:
  498         1. Compiled, reviewed, or audited financial statements, if
  499  the association is required to prepare a report of cash receipts
  500  and expenditures;
  501         2. Reviewed or audited financial statements, if the
  502  association is required to prepare compiled financial
  503  statements; or
  504         3. Audited financial statements if the association is
  505  required to prepare reviewed financial statements.
  506         (d) If approved by a majority of the voting interests
  507  present at a properly called meeting of the association, an
  508  association may prepare:
  509         1. A report of cash receipts and expenditures in lieu of a
  510  compiled, reviewed, or audited financial statement;
  511         2. A report of cash receipts and expenditures or a compiled
  512  financial statement in lieu of a reviewed or audited financial
  513  statement; or
  514         3. A report of cash receipts and expenditures, a compiled
  515  financial statement, or a reviewed financial statement in lieu
  516  of an audited financial statement.
  517  
  518  Such meeting and approval must occur before the end of the
  519  fiscal year and is effective only for the fiscal year in which
  520  the vote is taken, except that the approval may also be
  521  effective for the following fiscal year. If the developer has
  522  not turned over control of the association, all unit owners,
  523  including the developer, may vote on issues related to the
  524  preparation of the association’s financial reports, from the
  525  date of incorporation of the association through the end of the
  526  second fiscal year after the fiscal year in which the
  527  certificate of a surveyor and mapper is recorded pursuant to s.
  528  718.104(4)(e) or an instrument that transfers title to a unit in
  529  the condominium which is not accompanied by a recorded
  530  assignment of developer rights in favor of the grantee of such
  531  unit is recorded, whichever occurs first. Thereafter, all unit
  532  owners except the developer may vote on such issues until
  533  control is turned over to the association by the developer. Any
  534  audit or review prepared under this section shall be paid for by
  535  the developer if done before turnover of control of the
  536  association. An association may not waive the financial
  537  reporting requirements of this section for more than 3
  538  consecutive years.
  539         (e) A unit owner may provide written notice to the division
  540  of the association’s failure to mail or hand deliver to him or
  541  her a copy of the most recent financial report within 5 business
  542  days after he or she submitted a written request to the
  543  association for a copy of such report. If the division
  544  determines that the association failed to mail or hand deliver a
  545  copy of the most recent financial report to the unit owner, the
  546  division shall provide written notice to the association that
  547  the association must mail or hand deliver a copy of the most
  548  recent financial report to the unit owner and the division
  549  within 5 business days after it receives such notice from the
  550  division. An association that fails to comply with the
  551  division’s request may not waive the financial reporting
  552  requirement provided in paragraph (d). A financial report
  553  received by the division pursuant to this paragraph shall be
  554  maintained, and the division shall provide a copy of such report
  555  to an association member upon his or her request.
  556         (15) DEBIT CARDS.—
  557         (a) An association and its officers, directors, employees,
  558  and agents may not use a debit card issued in the name of the
  559  association, or billed directly to the association, for the
  560  payment of any association expense.
  561         (b) Use of a debit card issued in the name of the
  562  association, or billed directly to the association, for any
  563  expense that is not a lawful obligation of the association may
  564  be prosecuted as credit card fraud pursuant to s. 817.61.
  565         Section 3. Paragraphs (c) and (l) of subsection (2) of
  566  section 718.112, Florida Statutes, are amended to read:
  567         718.112 Bylaws.—
  568         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  569  following and, if they do not do so, shall be deemed to include
  570  the following:
  571         (c) Board of administration meetings.—Meetings of the board
  572  of administration at which a quorum of the members is present
  573  are open to all unit owners. Members of the board of
  574  administration may use e-mail as a means of communication but
  575  may not cast a vote on an association matter via e-mail. A unit
  576  owner may tape record or videotape the meetings. The right to
  577  attend such meetings includes the right to speak at such
  578  meetings with reference to all designated agenda items. The
  579  division shall adopt reasonable rules governing the tape
  580  recording and videotaping of the meeting. The association may
  581  adopt written reasonable rules governing the frequency,
  582  duration, and manner of unit owner statements.
  583         1. Adequate notice of all board meetings, which must
  584  specifically identify all agenda items, must be posted
  585  conspicuously on the condominium property at least 48 continuous
  586  hours before the meeting except in an emergency. If 20 percent
  587  of the voting interests petition the board to address an item of
  588  business, the board, within 60 days after receipt of the
  589  petition, shall place the item on the agenda at its next regular
  590  board meeting or at a special meeting called for that purpose.
  591  An item not included on the notice may be taken up on an
  592  emergency basis by a vote of at least a majority plus one of the
  593  board members. Such emergency action must be noticed and
  594  ratified at the next regular board meeting. Notice of any
  595  meeting in which a regular or special assessment against unit
  596  owners is to be considered must specifically state that
  597  assessments will be considered and provide the estimated amount
  598  and a description of the purposes for such assessments. However,
  599  Written notice of a meeting at which a nonemergency special
  600  assessment or an amendment to rules regarding unit use will be
  601  considered must be mailed, delivered, or electronically
  602  transmitted to the unit owners and posted conspicuously on the
  603  condominium property at least 14 days before the meeting.
  604  Evidence of compliance with this 14-day notice requirement must
  605  be made by an affidavit executed by the person providing the
  606  notice and filed with the official records of the association.
  607  Upon notice to the unit owners, the board shall, by duly adopted
  608  rule, designate a specific location on the condominium or
  609  association property where all notices of board meetings must be
  610  posted. If there is no condominium property or association
  611  property where notices can be posted, notices shall be mailed,
  612  delivered, or electronically transmitted to each unit owner at
  613  least 14 days before the meeting. In lieu of or in addition to
  614  the physical posting of the notice on the condominium property,
  615  the association may, by reasonable rule, adopt a procedure for
  616  conspicuously posting and repeatedly broadcasting the notice and
  617  the agenda on a closed-circuit cable television system serving
  618  the condominium association. However, if broadcast notice is
  619  used in lieu of a notice physically posted on condominium
  620  property, the notice and agenda must be broadcast at least four
  621  times every broadcast hour of each day that a posted notice is
  622  otherwise required under this section. If broadcast notice is
  623  provided, the notice and agenda must be broadcast in a manner
  624  and for a sufficient continuous length of time so as to allow an
  625  average reader to observe the notice and read and comprehend the
  626  entire content of the notice and the agenda. In addition to any
  627  of the authorized means of providing notice of a meeting of the
  628  board, the association may, by rule, adopt a procedure for
  629  conspicuously posting the meeting notice and the agenda on a
  630  website serving the condominium association for at least the
  631  minimum period for which a notice of a meeting is required to be
  632  physically posted on the condominium property. Any rule adopted
  633  must, in addition to other matters, include a requirement that
  634  the association send an electronic notice in the same manner as
  635  required for a notice for a meeting of the members, which must
  636  include a hypertext link to the website where the notice is
  637  posted, to unit owners whose e-mail addresses are included in
  638  the association’s official records Notice of any meeting in
  639  which regular or special assessments against unit owners are to
  640  be considered must specifically state that assessments will be
  641  considered and provide the nature, estimated cost, and
  642  description of the purposes for such assessments.
  643         2. Meetings of a committee to take final action on behalf
  644  of the board or make recommendations to the board regarding the
  645  association budget are subject to this paragraph. Meetings of a
  646  committee that does not take final action on behalf of the board
  647  or make recommendations to the board regarding the association
  648  budget are subject to this section, unless those meetings are
  649  exempted from this section by the bylaws of the association.
  650         3. Notwithstanding any other law, the requirement that
  651  board meetings and committee meetings be open to the unit owners
  652  does not apply to:
  653         a. Meetings between the board or a committee and the
  654  association’s attorney, with respect to proposed or pending
  655  litigation, if the meeting is held for the purpose of seeking or
  656  rendering legal advice; or
  657         b. Board meetings held for the purpose of discussing
  658  personnel matters.
  659         (l) Certificate of compliance.—A provision that a
  660  certificate of compliance from a licensed electrical contractor,
  661  or electrician, or professional engineer may be accepted by the
  662  association’s board as evidence of compliance of the condominium
  663  units with the applicable fire and life safety code must be
  664  included. Notwithstanding chapter 633 or of any other code,
  665  statute, ordinance, administrative rule, or regulation, or any
  666  interpretation of the foregoing, an association, residential
  667  condominium, or unit owner is not obligated to retrofit the
  668  common elements, association property, or units of a residential
  669  condominium with a fire sprinkler system or other engineered
  670  lifesafety system in a building that is 75 feet or less in
  671  height. There is no obligation to retrofit for a building
  672  greater than 75 feet in height, calculated from the lowest level
  673  of fire department vehicle access to the floor of the highest
  674  occupiable story, has been certified for occupancy by the
  675  applicable governmental entity if the unit owners have voted to
  676  forego such retrofitting by the affirmative vote of two-thirds a
  677  majority of all voting interests in the affected condominium.
  678  There is no requirement that owners in condominiums of 75 feet
  679  or less conduct an opt-out vote, and such condominiums are
  680  exempt from fire sprinkler or other engineered lifesafety
  681  retrofitting. The preceding sentence is intended to clarify
  682  existing law. The local authority having jurisdiction may not
  683  require completion of retrofitting with a fire sprinkler system
  684  or other engineered lifesafety system before January 1, 2022
  685  2020. By December 31, 2018 2016, an a residential condominium
  686  association that operates a residential condominium that is not
  687  in compliance with the requirements for a fire sprinkler system
  688  or other engineered lifesafety system and has not voted to
  689  forego retrofitting of such a system must initiate an
  690  application for a building permit for the required installation
  691  with the local government having jurisdiction demonstrating that
  692  the association will become compliant by December 31, 2021 2019.
  693         1. A vote to forego required retrofitting may be obtained
  694  by limited proxy or by a ballot personally cast at a duly called
  695  membership meeting, or by execution of a written consent by the
  696  member, or by electronic voting, and is effective upon recording
  697  a certificate executed by an officer or agent of the association
  698  attesting to such vote in the public records of the county where
  699  the condominium is located. When an opt-out vote is to be
  700  conducted at a meeting, the association shall mail or hand
  701  deliver to each unit owner written notice at least 14 days
  702  before the membership meeting in which the vote to forego
  703  retrofitting of the required fire sprinkler system or other
  704  engineered lifesafety system is to take place. Within 30 days
  705  after the association’s opt-out vote, notice of the results of
  706  the opt-out vote must be mailed or hand delivered to all unit
  707  owners. Evidence of compliance with this notice requirement must
  708  be made by affidavit executed by the person providing the notice
  709  and filed among the official records of the association. Failure
  710  to provide timely notice to unit owners does not invalidate an
  711  otherwise valid opt-out vote if notice of the results is
  712  provided to the owners. After notice is provided to each owner,
  713  a copy must be provided by the current owner to a new owner
  714  before closing and by a unit owner to a renter before signing a
  715  lease.
  716         2. If there has been a previous vote to forego
  717  retrofitting, a vote to require retrofitting may be obtained at
  718  a special meeting of the unit owners called by a petition of at
  719  least 10 percent of the voting interests or by a majority of the
  720  board of directors. The approval of two-thirds of all voting
  721  interests in the affected condominium is required to require
  722  retrofitting. Such a vote may only be called once every 3 years.
  723  Notice shall be provided as required for any regularly called
  724  meeting of the unit owners, and must state the purpose of the
  725  meeting. Electronic transmission may not be used to provide
  726  notice of a meeting called in whole or in part for this purpose.
  727         3. As part of the information collected annually from
  728  condominiums, the division shall require condominium
  729  associations to report the membership vote and recording of a
  730  certificate under this subsection and, if retrofitting has been
  731  undertaken, the per-unit cost of such work. The division shall
  732  annually report to the Division of State Fire Marshal of the
  733  Department of Financial Services the number of condominiums that
  734  have elected to forego retrofitting. Compliance with this
  735  administrative reporting requirement does not affect the
  736  validity of an opt-out vote.
  737         4. Notwithstanding s. 553.509, a residential association
  738  may not be obligated to, and may forego the retrofitting of, any
  739  improvements required by s. 553.509(2) upon an affirmative vote
  740  of a majority of the voting interests in the affected
  741  condominium.
  742         5.This paragraph does not apply to timeshare condominium
  743  associations, which shall be governed by s. 721.24.
  744         Section 4. Subsection (2) of section 718.113, Florida
  745  Statutes, is amended to read:
  746         718.113 Maintenance; limitation upon improvement; display
  747  of flag; hurricane shutters and protection; display of religious
  748  decorations.—
  749         (2)(a) Except as otherwise provided in this section, there
  750  shall be no material alteration or substantial additions to the
  751  common elements or to real property which is association
  752  property, except in a manner provided in the declaration as
  753  originally recorded or as amended under the procedures provided
  754  therein. If the declaration as originally recorded or as amended
  755  under the procedures provided therein does not specify the
  756  procedure for approval of material alterations or substantial
  757  additions, 75 percent of the total voting interests of the
  758  association must approve the alterations or additions before the
  759  material alterations or substantial additions are commenced.
  760  This paragraph is intended to clarify existing law and applies
  761  to associations existing on the effective date of this act
  762  October 1, 2008.
  763         (b) There shall not be any material alteration of, or
  764  substantial addition to, the common elements of any condominium
  765  operated by a multicondominium association unless approved in
  766  the manner provided in the declaration of the affected
  767  condominium or condominiums as originally recorded or as amended
  768  under the procedures provided therein. If a declaration as
  769  originally recorded or as amended under the procedures provided
  770  therein does not specify a procedure for approving such an
  771  alteration or addition, the approval of 75 percent of the total
  772  voting interests of each affected condominium is required before
  773  the material alterations or substantial additions are commenced.
  774  This subsection does not prohibit a provision in any
  775  declaration, articles of incorporation, or bylaws as originally
  776  recorded or as amended under the procedures provided therein
  777  requiring the approval of unit owners in any condominium
  778  operated by the same association or requiring board approval
  779  before a material alteration or substantial addition to the
  780  common elements is permitted. This paragraph is intended to
  781  clarify existing law and applies to associations existing on the
  782  effective date of this act.
  783         (c) There shall not be any material alteration or
  784  substantial addition made to association real property operated
  785  by a multicondominium association, except as provided in the
  786  declaration, articles of incorporation, or bylaws as originally
  787  recorded or as amended under the procedures provided therein. If
  788  the declaration, articles of incorporation, or bylaws as
  789  originally recorded or as amended under the procedures provided
  790  therein do not specify the procedure for approving an alteration
  791  or addition to association real property, the approval of 75
  792  percent of the total voting interests of the association is
  793  required before the material alterations or substantial
  794  additions are commenced. This paragraph is intended to clarify
  795  existing law and applies to associations existing on the
  796  effective date of this act.
  797         Section 5. Subsections (1) and (3) of section 718.117,
  798  Florida Statutes, are amended, and subsection (21) is added to
  799  that section, to read:
  800         718.117 Termination of condominium.—
  801         (1) LEGISLATIVE FINDINGS.—The Legislature finds that:
  802         (a) Condominiums are created as authorized by statute and
  803  are subject to covenants that encumber the land and restrict the
  804  use of real property.
  805         (b) In some circumstances, the continued enforcement of
  806  those covenants that may create economic waste or, areas of
  807  disrepair which threaten the safety and welfare of the public,
  808  or cause obsolescence of the a condominium property for its
  809  intended use and thereby lower property tax values, and the
  810  Legislature further finds that it is the public policy of this
  811  state to provide by statute a method to preserve the value of
  812  the property interests and the rights of alienation thereof that
  813  owners have in the condominium property before and after
  814  termination.
  815         (c)The Legislature further finds that It is contrary to
  816  the public policy of this state to require the continued
  817  operation of a condominium when to do so constitutes economic
  818  waste or when the ability to do so is made impossible by law or
  819  regulation.
  820         (d)It is in the best interest of the state to provide for
  821  termination of the covenants of a declaration of condominium in
  822  certain circumstances, in order to:
  823         1.Ensure the continued maintenance, management, and repair
  824  of stormwater management systems, conservation areas, and
  825  conservation easements.
  826         2.Avoid transferring the expense of maintaining
  827  infrastructure serving the condominium property, including, but
  828  not limited to, stormwater systems and conservation areas, to
  829  the general tax bases of the state and local governments.
  830         3.Prevent covenants from impairing the continued
  831  productive use of the property.
  832         4.Protect state residents from health and safety hazards
  833  created by derelict, damaged, obsolete, or abandoned condominium
  834  properties.
  835         5.Provide for fair treatment and just compensation for
  836  individuals, preserve property values, and preserve the local
  837  property tax base.
  838         6.Preserve the state’s long history of protecting
  839  homestead property and homestead property rights by ensuring
  840  that such protection is extended to homestead property owners in
  841  the context of a termination of the covenants of a declaration
  842  of condominium This section applies to all condominiums in this
  843  state in existence on or after July 1, 2007.
  844         (3) OPTIONAL TERMINATION.—Except as provided in subsection
  845  (2) or unless the declaration provides for a lower percentage,
  846  The condominium form of ownership may be terminated for all or a
  847  portion of the condominium property pursuant to a plan of
  848  termination meeting the requirements of this section and
  849  approved by the division. Before a residential association
  850  submits a plan to the division, the plan must be approved by at
  851  least 80 percent of the total voting interests of the
  852  condominium. However, if 5 10 percent or more of the total
  853  voting interests of the condominium have rejected the plan of
  854  termination by negative vote or by providing written objections,
  855  the plan of termination may not proceed.
  856         (a) The termination of the condominium form of ownership is
  857  subject to the following conditions:
  858         1. The total voting interests of the condominium must
  859  include all voting interests for the purpose of considering a
  860  plan of termination. A voting interest of the condominium may
  861  not be suspended for any reason when voting on termination
  862  pursuant to this subsection.
  863         2. If 5 10 percent or more of the total voting interests of
  864  the condominium reject a plan of termination, a subsequent plan
  865  of termination pursuant to this subsection may not be considered
  866  for 24 18 months after the date of the rejection.
  867         (b) This subsection does not apply to any condominium
  868  created pursuant to part VI of this chapter until 10 5 years
  869  after the recording of the declaration of condominium, unless
  870  there is no objection to the plan of termination.
  871         (c) For purposes of this subsection, the term “bulk owner”
  872  means the single holder of such voting interests or an owner
  873  together with a related entity or entities that would be
  874  considered an insider, as defined in s. 726.102, holding such
  875  voting interests. If the condominium association is a
  876  residential association proposed for termination pursuant to
  877  this section and, at the time of recording the plan of
  878  termination, at least 80 percent of the total voting interests
  879  are owned by a bulk owner, the plan of termination is subject to
  880  the following conditions and limitations:
  881         1. If the former condominium units are offered for lease to
  882  the public after the termination, each unit owner in occupancy
  883  immediately before the date of recording of the plan of
  884  termination may lease his or her former unit and remain in
  885  possession of the unit for 12 months after the effective date of
  886  the termination on the same terms as similar unit types within
  887  the property are being offered to the public. In order to obtain
  888  a lease and exercise the right to retain exclusive possession of
  889  the unit owner’s former unit, the unit owner must make a written
  890  request to the termination trustee to rent the former unit
  891  within 90 days after the date the plan of termination is
  892  recorded. Any unit owner who fails to timely make such written
  893  request and sign a lease within 15 days after being presented
  894  with a lease is deemed to have waived his or her right to retain
  895  possession of his or her former unit and shall be required to
  896  vacate the former unit upon the effective date of the
  897  termination, unless otherwise provided in the plan of
  898  termination.
  899         2. Any former unit owner whose unit was granted homestead
  900  exemption status by the applicable county property appraiser as
  901  of the date of the recording of the plan of termination shall be
  902  paid a relocation payment in an amount equal to 1 percent of the
  903  termination proceeds allocated to the owner’s former unit. Any
  904  relocation payment payable under this subparagraph shall be paid
  905  by the single entity or related entities owning at least 80
  906  percent of the total voting interests. Such relocation payment
  907  shall be in addition to the termination proceeds for such
  908  owner’s former unit and shall be paid no later than 10 days
  909  after the former unit owner vacates his or her former unit.
  910         3. For their respective units, all unit owners other than
  911  the bulk owner must be compensated at least 100 percent of the
  912  fair market value of their units. The fair market value shall be
  913  determined as of a date that is no earlier than 90 days before
  914  the date that the plan of termination is recorded and shall be
  915  determined by an independent appraiser selected by the
  916  termination trustee. For a person an original purchaser from the
  917  developer who rejects the plan of termination and whose unit was
  918  granted homestead exemption status by the applicable county
  919  property appraiser, or was an owner-occupied operating business,
  920  as of the date that the plan of termination is recorded and who
  921  is current in payment of both assessments and other monetary
  922  obligations to the association and any mortgage encumbering the
  923  unit as of the date the plan of termination is recorded, the
  924  fair market value for the unit owner rejecting the plan shall be
  925  at least the original purchase price paid for the unit. For
  926  purposes of this subparagraph, the term “fair market value”
  927  means the price of a unit that a seller is willing to accept and
  928  a buyer is willing to pay on the open market in an arms-length
  929  transaction based on similar units sold in other condominiums,
  930  including units sold in bulk purchases but excluding units sold
  931  at wholesale or distressed prices. The purchase price of units
  932  acquired in bulk following a bankruptcy or foreclosure shall not
  933  be considered for purposes of determining fair market value.
  934         4. The plan of termination must provide for payment of a
  935  first mortgage encumbering a unit to the extent necessary to
  936  satisfy the lien, but the payment may not exceed the unit’s
  937  share of the proceeds of termination under the plan. If the unit
  938  owner is current in payment of both assessments and other
  939  monetary obligations to the association and any mortgage
  940  encumbering the unit as of the date the plan of termination is
  941  recorded, the receipt by the holder of the unit’s share of the
  942  proceeds of termination under the plan or the outstanding
  943  balance of the mortgage, whichever is less, shall be deemed to
  944  have satisfied the first mortgage in full.
  945         5. Before a plan of termination is presented to the unit
  946  owners for consideration pursuant to this paragraph, the plan
  947  must include the following written disclosures in a sworn
  948  statement:
  949         a. The identity of any person or entity that owns or
  950  controls 25 50 percent or more of the units in the condominium
  951  and, if the units are owned by an artificial entity or entities,
  952  a disclosure of the natural person or persons who, directly or
  953  indirectly, manage or control the entity or entities and the
  954  natural person or persons who, directly or indirectly, own or
  955  control 10 20 percent or more of the artificial entity or
  956  entities that constitute the bulk owner.
  957         b. The units acquired by any bulk owner, the date each unit
  958  was acquired, and the total amount of compensation paid to each
  959  prior unit owner by the bulk owner, regardless of whether
  960  attributed to the purchase price of the unit.
  961         c. The relationship of any board member to the bulk owner
  962  or any person or entity affiliated with the bulk owner subject
  963  to disclosure pursuant to this subparagraph.
  964         d.The factual circumstances that show that the plan
  965  complies with the requirements of this section and that the plan
  966  supports the expressed public policies of this section.
  967         (d) If the members of the board of administration are
  968  elected by the bulk owner, unit owners other than the bulk owner
  969  may elect at least one-third of the members of the board of
  970  administration before the approval of any plan of termination.
  971         (e)Subsection (2) does not apply to optional termination
  972  pursuant to this subsection.
  973         (21)APPLICABILITY.—This section applies to all
  974  condominiums in this state in existence on or after July 1,
  975  2007.
  976         Section 6. The amendments made by this act to s. 718.117,
  977  Florida Statutes, are intended to clarify existing law, are
  978  remedial in nature and intended to address the rights and
  979  liabilities of the affected parties, and apply to all
  980  condominiums created under the Condominium Act.
  981         Section 7. Section 718.707, Florida Statutes, is amended to
  982  read:
  983         718.707 Time limitation for classification as bulk assignee
  984  or bulk buyer.—A person acquiring condominium parcels may not be
  985  classified as a bulk assignee or bulk buyer unless the
  986  condominium parcels were acquired on or after July 1, 2010, but
  987  before July 1, 2018. The date of such acquisition shall be
  988  determined by the date of recording a deed or other instrument
  989  of conveyance for such parcels in the public records of the
  990  county in which the condominium is located, or by the date of
  991  issuing a certificate of title in a foreclosure proceeding with
  992  respect to such condominium parcels.
  993         Section 8. Paragraphs (a) and (b) of subsection (2) and
  994  paragraphs (b) and (c) of subsection (4) of section 719.104,
  995  Florida Statutes, are amended to read:
  996         719.104 Cooperatives; access to units; records; financial
  997  reports; assessments; purchase of leases.—
  998         (2) OFFICIAL RECORDS.—
  999         (a) From the inception of the association, the association
 1000  shall maintain a copy of each of the following, where
 1001  applicable, which shall constitute the official records of the
 1002  association:
 1003         1. The plans, permits, warranties, and other items provided
 1004  by the developer pursuant to s. 719.301(4).
 1005         2. A photocopy of the cooperative documents.
 1006         3. A copy of the current rules of the association.
 1007         4. A book or books containing the minutes of all meetings
 1008  of the association, of the board of directors, and of the unit
 1009  owners, which minutes shall be retained for a period of not less
 1010  than 7 years.
 1011         5. A current roster of all unit owners and their mailing
 1012  addresses, unit identifications, voting certifications, and, if
 1013  known, telephone numbers. The association shall also maintain
 1014  the electronic mailing addresses and the numbers designated by
 1015  unit owners for receiving notice sent by electronic transmission
 1016  of those unit owners consenting to receive notice by electronic
 1017  transmission. The electronic mailing addresses and numbers
 1018  provided by unit owners to receive notice by electronic
 1019  transmission shall be removed from association records when
 1020  consent to receive notice by electronic transmission is revoked.
 1021  However, the association is not liable for an erroneous
 1022  disclosure of the electronic mail address or the number for
 1023  receiving electronic transmission of notices.
 1024         6. All current insurance policies of the association.
 1025         7. A current copy of any management agreement, lease, or
 1026  other contract to which the association is a party or under
 1027  which the association or the unit owners have an obligation or
 1028  responsibility.
 1029         8. Bills of sale or transfer for all property owned by the
 1030  association.
 1031         9. Accounting records for the association and separate
 1032  accounting records for each unit it operates, according to good
 1033  accounting practices. All accounting records shall be maintained
 1034  for a period of not less than 7 years. The accounting records
 1035  shall include, but not be limited to:
 1036         a. Accurate, itemized, and detailed records of all receipts
 1037  and expenditures.
 1038         b. A current account and a monthly, bimonthly, or quarterly
 1039  statement of the account for each unit designating the name of
 1040  the unit owner, the due date and amount of each assessment, the
 1041  amount paid upon the account, and the balance due.
 1042         c. All audits, reviews, accounting statements, and
 1043  financial reports of the association.
 1044         d. All contracts for work to be performed. Bids for work to
 1045  be performed shall also be considered official records and shall
 1046  be maintained for a period of 1 year.
 1047         10. Ballots, sign-in sheets, voting proxies, and all other
 1048  papers and electronic records relating to voting by unit owners,
 1049  which shall be maintained for a period of 1 year after the date
 1050  of the election, vote, or meeting to which the document relates.
 1051         11. All rental records where the association is acting as
 1052  agent for the rental of units.
 1053         12. A copy of the current question and answer sheet as
 1054  described in s. 719.504.
 1055         13. All other written records of the association not
 1056  specifically included in the foregoing which are related to the
 1057  operation of the association.
 1058         (b) The official records of the association must be
 1059  maintained within the state for at least 7 years. The records of
 1060  the association shall be made available to a unit owner within
 1061  45 miles of the cooperative property or within the county in
 1062  which the cooperative property is located within 10 5 working
 1063  days after receipt of written request by the board or its
 1064  designee. This paragraph may be complied with by having a copy
 1065  of the official records of the association available for
 1066  inspection or copying on the cooperative property or the
 1067  association may offer the option of making the records available
 1068  to a unit owner electronically via the Internet or by allowing
 1069  the records to be viewed in an electronic format on a computer
 1070  screen and printed upon request. The association is not
 1071  responsible for the use or misuse of the information provided to
 1072  an association member or his or her authorized representative
 1073  pursuant to the compliance requirements of this chapter unless
 1074  the association has an affirmative duty not to disclose such
 1075  information pursuant to this chapter.
 1076         (4) FINANCIAL REPORT.—
 1077         (b) Except as provided in paragraph (c), an association
 1078  whose total annual revenues meet the criteria of this paragraph
 1079  shall prepare or cause to be prepared a complete set of
 1080  financial statements according to the generally accepted
 1081  accounting principles adopted by the Board of Accountancy. The
 1082  financial statements shall be as follows:
 1083         1. An association with total annual revenues between
 1084  $150,000 and $299,999 shall prepare a compiled financial
 1085  statement.
 1086         2. An association with total annual revenues between
 1087  $300,000 and $499,999 shall prepare a reviewed financial
 1088  statement.
 1089         3. An association with total annual revenues of $500,000 or
 1090  more shall prepare an audited financial statement.
 1091         4. The requirement to have the financial statement
 1092  compiled, reviewed, or audited does not apply to an association
 1093  if a majority of the voting interests of the association present
 1094  at a duly called meeting of the association have voted to waive
 1095  this requirement for the fiscal year. In an association in which
 1096  turnover of control by the developer has not occurred, the
 1097  developer may vote to waive the audit requirement for the first
 1098  2 years of operation of the association, after which time waiver
 1099  of an applicable audit requirement shall be by a majority of
 1100  voting interests other than the developer. The meeting shall be
 1101  held prior to the end of the fiscal year, and the waiver shall
 1102  be effective for only one fiscal year. An association may not
 1103  waive the financial reporting requirements of this section for
 1104  more than 3 consecutive years.
 1105         (c)1. An association with total annual revenues of less
 1106  than $150,000 shall prepare a report of cash receipts and
 1107  expenditures.
 1108         2.An association in a community of fewer than 50 units,
 1109  regardless of the association’s annual revenues, shall prepare a
 1110  report of cash receipts and expenditures in lieu of the
 1111  financial statements required by paragraph (b), unless the
 1112  declaration or other recorded governing documents provide
 1113  otherwise.
 1114         2.3. A report of cash receipts and expenditures must
 1115  disclose the amount of receipts by accounts and receipt
 1116  classifications and the amount of expenses by accounts and
 1117  expense classifications, including the following, as applicable:
 1118  costs for security, professional, and management fees and
 1119  expenses; taxes; costs for recreation facilities; expenses for
 1120  refuse collection and utility services; expenses for lawn care;
 1121  costs for building maintenance and repair; insurance costs;
 1122  administration and salary expenses; and reserves, if maintained
 1123  by the association.
 1124         Section 9. Subsection (5) of section 719.1055, Florida
 1125  Statutes, is amended to read:
 1126         719.1055 Amendment of cooperative documents; alteration and
 1127  acquisition of property.—
 1128         (5) The bylaws must include a provision whereby a
 1129  certificate of compliance from a licensed electrical contractor,
 1130  or electrician, or professional engineer may be accepted by the
 1131  association’s board as evidence of compliance of the cooperative
 1132  units with the applicable fire and life safety code.
 1133         (a)1. Notwithstanding chapter 633 or any other code,
 1134  statute, ordinance, administrative rule, or regulation, or any
 1135  interpretation of the foregoing, an association a cooperative or
 1136  unit owner is not obligated to retrofit the common elements or
 1137  units of a residential cooperative with a fire sprinkler system
 1138  or other engineered lifesafety system in a building that is 75
 1139  feet or less in height. There is no obligation to retrofit for a
 1140  building greater than 75 feet in height, calculated from the
 1141  lowest level of fire department vehicle access to the floor of
 1142  the highest occupiable story, has been certified for occupancy
 1143  by the applicable governmental entity if the unit owners have
 1144  voted to forego such retrofitting by the affirmative vote of
 1145  two-thirds a majority of all voting interests in the affected
 1146  cooperative. There is no requirement that owners in cooperatives
 1147  of 75 feet or less conduct an opt-out vote, and such
 1148  cooperatives are exempt from fire sprinkler or other engineered
 1149  life safety retrofitting. The preceding sentence is intended to
 1150  clarify existing law. The local authority having jurisdiction
 1151  may not require completion of retrofitting with a fire sprinkler
 1152  system or other engineered life safety system before January 1,
 1153  2022 the end of 2019. By December 31, 2018 2016, a cooperative
 1154  that is not in compliance with the requirements for a fire
 1155  sprinkler system or other engineered lifesafety system and has
 1156  not voted to forego retrofitting of such a system must initiate
 1157  an application for a building permit for the required
 1158  installation with the local government having jurisdiction
 1159  demonstrating that the cooperative will become compliant by
 1160  December 31, 2021 2019.
 1161         2. A vote to forego required retrofitting may be obtained
 1162  by limited proxy or by a ballot personally cast at a duly called
 1163  membership meeting, or by execution of a written consent by the
 1164  member, or by electronic voting, and is effective upon recording
 1165  a certificate executed by an officer or agent of the association
 1166  attesting to such vote in the public records of the county where
 1167  the cooperative is located. When the opt-out vote is to be
 1168  conducted at a meeting, the cooperative shall mail or hand
 1169  deliver to each unit owner written notice at least 14 days
 1170  before the membership meeting in which the vote to forego
 1171  retrofitting of the required fire sprinkler system or other
 1172  engineered lifesafety system is to take place. Within 30 days
 1173  after the cooperative’s opt-out vote, notice of the results of
 1174  the opt-out vote must be mailed or hand delivered to all unit
 1175  owners. Evidence of compliance with this notice requirement must
 1176  be made by affidavit executed by the person providing the notice
 1177  and filed among the official records of the cooperative. Failure
 1178  to provide timely notice to unit owners does not invalidate an
 1179  otherwise valid opt-out vote if notice of the results is
 1180  provided to the owners. After notice is provided to each owner,
 1181  a copy must be provided by the current owner to a new owner
 1182  before closing and by a unit owner to a renter before signing a
 1183  lease.
 1184         (b) If there has been a previous vote to forego
 1185  retrofitting, a vote to require retrofitting may be obtained at
 1186  a special meeting of the unit owners called by a petition of
 1187  least 10 percent of the voting interests or by a majority of the
 1188  board of directors. The approval of two-thirds of all voting
 1189  interests in the affected condominium is required to require
 1190  retrofitting. Such vote may only be called once every 3 years.
 1191  Notice must be provided as required for any regularly called
 1192  meeting of the unit owners, and the notice must state the
 1193  purpose of the meeting. Electronic transmission may not be used
 1194  to provide notice of a meeting called in whole or in part for
 1195  this purpose.
 1196         (c) As part of the information collected annually from
 1197  cooperatives, the division shall require associations to report
 1198  the membership vote and recording of a certificate under this
 1199  subsection and, if retrofitting has been undertaken, the per
 1200  unit cost of such work. The division shall annually report to
 1201  the Division of State Fire Marshal of the Department of
 1202  Financial Services the number of cooperatives that have elected
 1203  to forego retrofitting. Compliance with this administrative
 1204  reporting requirement does not affect the validity of an opt-out
 1205  vote.
 1206         Section 10. Paragraphs (a) and (c) of subsection (1) of
 1207  section 719.106, Florida Statutes, are amended, and paragraph
 1208  (m) is added to that subsection, to read:
 1209         719.106 Bylaws; cooperative ownership.—
 1210         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
 1211  documents shall provide for the following, and if they do not,
 1212  they shall be deemed to include the following:
 1213         (a) Administration.—
 1214         1. The form of administration of the association shall be
 1215  described, indicating the titles of the officers and board of
 1216  administration and specifying the powers, duties, manner of
 1217  selection and removal, and compensation, if any, of officers and
 1218  board members. In the absence of such a provision, the board of
 1219  administration shall be composed of five members, except in the
 1220  case of cooperatives having five or fewer units, in which case
 1221  in not-for-profit corporations, the board shall consist of not
 1222  fewer than three members. In a residential cooperative
 1223  association of more than 10 units, coowners of a unit may not
 1224  serve as members of the board of directors at the same time
 1225  unless the coowners own more than one unit or unless there are
 1226  not enough eligible candidates to fill the vacancies on the
 1227  board at the time of the vacancy. In the absence of provisions
 1228  to the contrary, the board of administration shall have a
 1229  president, a secretary, and a treasurer, who shall perform the
 1230  duties of those offices customarily performed by officers of
 1231  corporations. Unless prohibited in the bylaws, the board of
 1232  administration may appoint other officers and grant them those
 1233  duties it deems appropriate. Unless otherwise provided in the
 1234  bylaws, the officers shall serve without compensation and at the
 1235  pleasure of the board. Unless otherwise provided in the bylaws,
 1236  the members of the board shall serve without compensation.
 1237         2. A person who has been suspended or removed by the
 1238  division under this chapter, or who is delinquent in the payment
 1239  of any monetary obligation due to the association, is not
 1240  eligible to be a candidate for board membership and may not be
 1241  listed on the ballot. A director or officer charged by
 1242  information or indictment with a felony theft or embezzlement
 1243  offense involving the association’s funds or property is
 1244  suspended from office. The board shall fill the vacancy
 1245  according to general law until the end of the period of the
 1246  suspension or the end of the director’s term of office,
 1247  whichever occurs first. However, if the charges are resolved
 1248  without a finding of guilt or without acceptance of a plea of
 1249  guilty or nolo contendere, the director or officer shall be
 1250  reinstated for any remainder of his or her term of office. A
 1251  member who has such criminal charges pending may not be
 1252  appointed or elected to a position as a director or officer. A
 1253  person who has been convicted of any felony in this state or in
 1254  any United States District Court, or who has been convicted of
 1255  any offense in another jurisdiction which would be considered a
 1256  felony if committed in this state, is not eligible for board
 1257  membership unless such felon’s civil rights have been restored
 1258  for at least 5 years as of the date such person seeks election
 1259  to the board. The validity of an action by the board is not
 1260  affected if it is later determined that a board member is
 1261  ineligible for board membership due to having been convicted of
 1262  a felony.
 1263         3. When a unit owner files a written inquiry by certified
 1264  mail with the board of administration, the board shall respond
 1265  in writing to the unit owner within 30 days of receipt of the
 1266  inquiry. The board’s response shall either give a substantive
 1267  response to the inquirer, notify the inquirer that a legal
 1268  opinion has been requested, or notify the inquirer that advice
 1269  has been requested from the division. If the board requests
 1270  advice from the division, the board shall, within 10 days of its
 1271  receipt of the advice, provide in writing a substantive response
 1272  to the inquirer. If a legal opinion is requested, the board
 1273  shall, within 60 days after the receipt of the inquiry, provide
 1274  in writing a substantive response to the inquirer. The failure
 1275  to provide a substantive response to the inquirer as provided
 1276  herein precludes the board from recovering attorney’s fees and
 1277  costs in any subsequent litigation, administrative proceeding,
 1278  or arbitration arising out of the inquiry. The association may,
 1279  through its board of administration, adopt reasonable rules and
 1280  regulations regarding the frequency and manner of responding to
 1281  the unit owners’ inquiries, one of which may be that the
 1282  association is obligated to respond to only one written inquiry
 1283  per unit in any given 30-day period. In such case, any
 1284  additional inquiry or inquiries must be responded to in the
 1285  subsequent 30-day period, or periods, as applicable.
 1286         (c) Board of administration meetings.Members of the board
 1287  of administration may use e-mail as a means of communication but
 1288  may not cast a vote on an association matter via e-mail.
 1289  Meetings of the board of administration at which a quorum of the
 1290  members is present shall be open to all unit owners. Any unit
 1291  owner may tape record or videotape meetings of the board of
 1292  administration. The right to attend such meetings includes the
 1293  right to speak at such meetings with reference to all designated
 1294  agenda items. The division shall adopt reasonable rules
 1295  governing the tape recording and videotaping of the meeting. The
 1296  association may adopt reasonable written rules governing the
 1297  frequency, duration, and manner of unit owner statements.
 1298  Adequate notice of all meetings shall be posted in a conspicuous
 1299  place upon the cooperative property at least 48 continuous hours
 1300  preceding the meeting, except in an emergency. Any item not
 1301  included on the notice may be taken up on an emergency basis by
 1302  at least a majority plus one of the members of the board. Such
 1303  emergency action shall be noticed and ratified at the next
 1304  regular meeting of the board. Notice of any meeting in which
 1305  regular or special assessments against unit owners are to be
 1306  considered must specifically state that assessments will be
 1307  considered and provide the estimated amount and description of
 1308  the purposes for such assessments. However, Written notice of
 1309  any meeting at which nonemergency special assessments, or at
 1310  which amendment to rules regarding unit use, will be considered
 1311  shall be mailed, delivered, or electronically transmitted to the
 1312  unit owners and posted conspicuously on the cooperative property
 1313  not less than 14 days before the meeting. Evidence of compliance
 1314  with this 14-day notice shall be made by an affidavit executed
 1315  by the person providing the notice and filed among the official
 1316  records of the association. Upon notice to the unit owners, the
 1317  board shall by duly adopted rule designate a specific location
 1318  on the cooperative property upon which all notices of board
 1319  meetings shall be posted. In lieu of or in addition to the
 1320  physical posting of notice of any meeting of the board of
 1321  administration on the cooperative property, the association may,
 1322  by reasonable rule, adopt a procedure for conspicuously posting
 1323  and repeatedly broadcasting the notice and the agenda on a
 1324  closed-circuit cable television system serving the cooperative
 1325  association. However, if broadcast notice is used in lieu of a
 1326  notice posted physically on the cooperative property, the notice
 1327  and agenda must be broadcast at least four times every broadcast
 1328  hour of each day that a posted notice is otherwise required
 1329  under this section. When broadcast notice is provided, the
 1330  notice and agenda must be broadcast in a manner and for a
 1331  sufficient continuous length of time so as to allow an average
 1332  reader to observe the notice and read and comprehend the entire
 1333  content of the notice and the agenda. In addition to any of the
 1334  authorized means of providing notice of a meeting of the board,
 1335  the association may, by rule, adopt a procedure for
 1336  conspicuously posting the meeting notice and the agenda on a
 1337  website serving the cooperative association for at least the
 1338  minimum period for which a notice of a meeting is required to be
 1339  physically posted on the cooperative property. Any rule adopted
 1340  must, in addition to other matters, include a requirement that
 1341  the association send an electronic notice in the same manner as
 1342  required for a notice for a meeting of the members, which must
 1343  include a hypertext link to the website where the notice is
 1344  posted, to unit owners whose e-mail addresses are included in
 1345  the association’s official records. Notice of any meeting in
 1346  which regular assessments against unit owners are to be
 1347  considered for any reason shall specifically contain a statement
 1348  that assessments will be considered and the nature of any such
 1349  assessments. Meetings of a committee to take final action on
 1350  behalf of the board or to make recommendations to the board
 1351  regarding the association budget are subject to the provisions
 1352  of this paragraph. Meetings of a committee that does not take
 1353  final action on behalf of the board or make recommendations to
 1354  the board regarding the association budget are subject to the
 1355  provisions of this section, unless those meetings are exempted
 1356  from this section by the bylaws of the association.
 1357  Notwithstanding any other law to the contrary, the requirement
 1358  that board meetings and committee meetings be open to the unit
 1359  owners does not apply to board or committee meetings held for
 1360  the purpose of discussing personnel matters or meetings between
 1361  the board or a committee and the association’s attorney, with
 1362  respect to proposed or pending litigation, if the meeting is
 1363  held for the purpose of seeking or rendering legal advice.
 1364         (m)Director or officer delinquencies.—A director or
 1365  officer who is more than 90 days delinquent in the payment of
 1366  any monetary obligation due the association shall be deemed to
 1367  have abandoned the office, creating a vacancy in the office to
 1368  be filled according to law.
 1369         Section 11. Paragraph (b) of subsection (1) of section
 1370  719.107, Florida Statutes, is amended to read:
 1371         719.107 Common expenses; assessment.—
 1372         (1)
 1373         (b) If so provided in the bylaws, the cost of
 1374  communications services as defined in chapter 202, information
 1375  services, or Internet services a master antenna television
 1376  system or duly franchised cable television service obtained
 1377  pursuant to a bulk contract shall be deemed a common expense,
 1378  and if not obtained pursuant to a bulk contract, such cost shall
 1379  be considered common expense if it is designated as such in a
 1380  written contract between the board of administration and the
 1381  company providing the communications services as defined in
 1382  chapter 202, information services, or Internet services master
 1383  television antenna system or the cable television service. The
 1384  contract shall be for a term of not less than 2 years.
 1385         1. Any contract made by the board after April 2, 1992, for
 1386  a community antenna system or duly franchised cable television
 1387  service, communications services as defined in chapter 202,
 1388  information services, or Internet services may be canceled by a
 1389  majority of the voting interests present at the next regular or
 1390  special meeting of the association. Any member may make a motion
 1391  to cancel the contract, but if no motion is made or if such
 1392  motion fails to obtain the required majority at the next regular
 1393  or special meeting, whichever is sooner, following the making of
 1394  the contract, then such contract shall be deemed ratified for
 1395  the term therein expressed.
 1396         2. Any such contract shall provide, and shall be deemed to
 1397  provide if not expressly set forth, that any hearing impaired or
 1398  legally blind unit owner who does not occupy the unit with a
 1399  nonhearing impaired or sighted person may discontinue the
 1400  service without incurring disconnect fees, penalties, or
 1401  subsequent service charges, and as to such units, the owners
 1402  shall not be required to pay any common expenses charge related
 1403  to such service. If less than all members of an association
 1404  share the expenses of cable television, the expense shall be
 1405  shared equally by all participating unit owners. The association
 1406  may use the provisions of s. 719.108 to enforce payment of the
 1407  shares of such costs by the unit owners receiving cable
 1408  television.
 1409         Section 12. Paragraphs (a) and (c) of subsection (2) and
 1410  subsection (7) of section 720.303, Florida Statutes, are amended
 1411  to read:
 1412         720.303 Association powers and duties; meetings of board;
 1413  official records; budgets; financial reporting; association
 1414  funds; recalls.—
 1415         (2) BOARD MEETINGS.—
 1416         (a) Members of the board of administration may use e-mail
 1417  as a means of communication, but may not cast a vote on an
 1418  association matter via e-mail. A meeting of the board of
 1419  directors of an association occurs whenever a quorum of the
 1420  board gathers to conduct association business. Meetings of the
 1421  board must be open to all members, except for meetings between
 1422  the board and its attorney with respect to proposed or pending
 1423  litigation where the contents of the discussion would otherwise
 1424  be governed by the attorney-client privilege. A meeting of the
 1425  board must be held at a location that is accessible to a
 1426  physically handicapped person if requested by a physically
 1427  handicapped person who has a right to attend the meeting. The
 1428  provisions of this subsection shall also apply to the meetings
 1429  of any committee or other similar body when a final decision
 1430  will be made regarding the expenditure of association funds and
 1431  to meetings of any body vested with the power to approve or
 1432  disapprove architectural decisions with respect to a specific
 1433  parcel of residential property owned by a member of the
 1434  community.
 1435         (c) The bylaws shall provide the following for giving
 1436  notice to parcel owners and members of all board meetings and,
 1437  if they do not do so, shall be deemed to include provide the
 1438  following:
 1439         1. Notices of all board meetings must be posted in a
 1440  conspicuous place in the community at least 48 hours in advance
 1441  of a meeting, except in an emergency. In the alternative, if
 1442  notice is not posted in a conspicuous place in the community,
 1443  notice of each board meeting must be mailed or delivered to each
 1444  member at least 7 days before the meeting, except in an
 1445  emergency. Notwithstanding this general notice requirement, for
 1446  communities with more than 100 members, the association bylaws
 1447  may provide for a reasonable alternative to posting or mailing
 1448  of notice for each board meeting, including publication of
 1449  notice, provision of a schedule of board meetings, or the
 1450  conspicuous posting and repeated broadcasting of the notice on a
 1451  closed-circuit cable television system serving the homeowners’
 1452  association. However, if broadcast notice is used in lieu of a
 1453  notice posted physically in the community, the notice must be
 1454  broadcast at least four times every broadcast hour of each day
 1455  that a posted notice is otherwise required. When broadcast
 1456  notice is provided, the notice and agenda must be broadcast in a
 1457  manner and for a sufficient continuous length of time so as to
 1458  allow an average reader to observe the notice and read and
 1459  comprehend the entire content of the notice and the agenda. In
 1460  addition to any of the authorized means of providing notice of a
 1461  meeting of the board, the association may, by rule, adopt a
 1462  procedure for conspicuously posting the meeting notice and the
 1463  agenda on a website serving the association for at least the
 1464  minimum period for which a notice of a meeting is required to be
 1465  physically posted on the association property. Any rule adopted
 1466  must, in addition to other matters, include a requirement that
 1467  the association send an electronic notice in the same manner as
 1468  required for a notice for a meeting of the members, which must
 1469  include a hypertext link to the website where the notice is
 1470  posted, to members who have provided an e-mail address to the
 1471  association for the purpose of receiving notice by electronic
 1472  transmission. The association may provide notice by electronic
 1473  transmission in a manner authorized by law for meetings of the
 1474  board of directors, committee meetings requiring notice under
 1475  this section, and annual and special meetings of the members;
 1476  however, a member must consent in writing to receiving notice by
 1477  electronic transmission.
 1478         2. An assessment may not be levied at a board meeting
 1479  unless the notice of the meeting includes a statement that
 1480  assessments will be considered and the nature of the
 1481  assessments. Written notice of any meeting at which special
 1482  assessments will be considered or at which amendments to rules
 1483  regarding parcel use will be considered must be mailed,
 1484  delivered, or electronically transmitted to the members and
 1485  parcel owners and posted conspicuously on the property or
 1486  broadcast on closed-circuit cable television not less than 14
 1487  days before the meeting.
 1488         3. Directors may not vote by proxy or by secret ballot at
 1489  board meetings, except that secret ballots may be used in the
 1490  election of officers. This subsection also applies to the
 1491  meetings of any committee or other similar body, when a final
 1492  decision will be made regarding the expenditure of association
 1493  funds, and to any body vested with the power to approve or
 1494  disapprove architectural decisions with respect to a specific
 1495  parcel of residential property owned by a member of the
 1496  community.
 1497         (7) FINANCIAL REPORTING.—Within 90 days after the end of
 1498  the fiscal year, or annually on the date provided in the bylaws,
 1499  the association shall prepare and complete, or contract with a
 1500  third party for the preparation and completion of, a financial
 1501  report for the preceding fiscal year. Within 21 days after the
 1502  final financial report is completed by the association or
 1503  received from the third party, but not later than 120 days after
 1504  the end of the fiscal year or other date as provided in the
 1505  bylaws, the association shall, within the time limits set forth
 1506  in subsection (5), provide each member with a copy of the annual
 1507  financial report or a written notice that a copy of the
 1508  financial report is available upon request at no charge to the
 1509  member. Financial reports shall be prepared as follows:
 1510         (a) An association that meets the criteria of this
 1511  paragraph shall prepare or cause to be prepared a complete set
 1512  of financial statements in accordance with generally accepted
 1513  accounting principles as adopted by the Board of Accountancy.
 1514  The financial statements shall be based upon the association’s
 1515  total annual revenues, as follows:
 1516         1. An association with total annual revenues of $150,000 or
 1517  more, but less than $300,000, shall prepare compiled financial
 1518  statements.
 1519         2. An association with total annual revenues of at least
 1520  $300,000, but less than $500,000, shall prepare reviewed
 1521  financial statements.
 1522         3. An association with total annual revenues of $500,000 or
 1523  more shall prepare audited financial statements.
 1524         (b)1. An association with total annual revenues of less
 1525  than $150,000 shall prepare a report of cash receipts and
 1526  expenditures.
 1527         2.An association in a community of fewer than 50 parcels,
 1528  regardless of the association’s annual revenues, may prepare a
 1529  report of cash receipts and expenditures in lieu of financial
 1530  statements required by paragraph (a) unless the governing
 1531  documents provide otherwise.
 1532         2.3. A report of cash receipts and disbursement must
 1533  disclose the amount of receipts by accounts and receipt
 1534  classifications and the amount of expenses by accounts and
 1535  expense classifications, including, but not limited to, the
 1536  following, as applicable: costs for security, professional, and
 1537  management fees and expenses; taxes; costs for recreation
 1538  facilities; expenses for refuse collection and utility services;
 1539  expenses for lawn care; costs for building maintenance and
 1540  repair; insurance costs; administration and salary expenses; and
 1541  reserves if maintained by the association.
 1542         (c) If 20 percent of the parcel owners petition the board
 1543  for a level of financial reporting higher than that required by
 1544  this section, the association shall duly notice and hold a
 1545  meeting of members within 30 days of receipt of the petition for
 1546  the purpose of voting on raising the level of reporting for that
 1547  fiscal year. Upon approval of a majority of the total voting
 1548  interests of the parcel owners, the association shall prepare or
 1549  cause to be prepared, shall amend the budget or adopt a special
 1550  assessment to pay for the financial report regardless of any
 1551  provision to the contrary in the governing documents, and shall
 1552  provide within 90 days of the meeting or the end of the fiscal
 1553  year, whichever occurs later:
 1554         1. Compiled, reviewed, or audited financial statements, if
 1555  the association is otherwise required to prepare a report of
 1556  cash receipts and expenditures;
 1557         2. Reviewed or audited financial statements, if the
 1558  association is otherwise required to prepare compiled financial
 1559  statements; or
 1560         3. Audited financial statements if the association is
 1561  otherwise required to prepare reviewed financial statements.
 1562         (d) If approved by a majority of the voting interests
 1563  present at a properly called meeting of the association, an
 1564  association may prepare or cause to be prepared:
 1565         1. A report of cash receipts and expenditures in lieu of a
 1566  compiled, reviewed, or audited financial statement;
 1567         2. A report of cash receipts and expenditures or a compiled
 1568  financial statement in lieu of a reviewed or audited financial
 1569  statement; or
 1570         3. A report of cash receipts and expenditures, a compiled
 1571  financial statement, or a reviewed financial statement in lieu
 1572  of an audited financial statement.
 1573         Section 13. Paragraph (a) of subsection (9) of section
 1574  720.306, Florida Statutes, is amended to read:
 1575         720.306 Meetings of members; voting and election
 1576  procedures; amendments.—
 1577         (9) ELECTIONS AND BOARD VACANCIES.—
 1578         (a) Elections of directors must be conducted in accordance
 1579  with the procedures set forth in the governing documents of the
 1580  association. Except as provided in paragraph (b), all members of
 1581  the association are eligible to serve on the board of directors,
 1582  and a member may nominate himself or herself as a candidate for
 1583  the board at a meeting where the election is to be held;
 1584  provided, however, that if the election process allows
 1585  candidates to be nominated in advance of the meeting, the
 1586  association is not required to allow nominations at the meeting.
 1587  An election is not required unless more candidates are nominated
 1588  than vacancies exist. If an election is not required because
 1589  there are either an equal number or fewer qualified candidates
 1590  than vacancies exist, and if nominations from the floor are not
 1591  required pursuant to this section or the bylaws, write-in
 1592  nominations are not permitted, and such candidates shall
 1593  commence service on the board of directors, regardless of
 1594  whether a quorum is attained at the annual meeting. Except as
 1595  otherwise provided in the governing documents, boards of
 1596  directors must be elected by a plurality of the votes cast by
 1597  eligible voters. Any challenge to the election process must be
 1598  commenced within 60 days after the election results are
 1599  announced.
 1600         Section 14. Paragraph (b) of subsection (3) of section
 1601  720.3085, Florida Statutes, is amended to read:
 1602         720.3085 Payment for assessments; lien claims.—
 1603         (3) Assessments and installments on assessments that are
 1604  not paid when due bear interest from the due date until paid at
 1605  the rate provided in the declaration of covenants or the bylaws
 1606  of the association, which rate may not exceed the rate allowed
 1607  by law. If no rate is provided in the declaration or bylaws,
 1608  interest accrues at the rate of 18 percent per year.
 1609         (b) Any payment received by an association and accepted
 1610  shall be applied first to any interest accrued, then to any
 1611  administrative late fee, then to any costs and reasonable
 1612  attorney fees incurred in collection, and then to the delinquent
 1613  assessment. This paragraph applies notwithstanding any
 1614  restrictive endorsement, designation, or instruction placed on
 1615  or accompanying a payment. A late fee is not subject to the
 1616  provisions of chapter 687 and is not a fine. The foregoing is
 1617  applicable notwithstanding s. 673.3111, any purported accord and
 1618  satisfaction, or any restrictive endorsement, designation, or
 1619  instruction placed on or accompanying a payment. The preceding
 1620  sentence is intended to clarify existing law.
 1621         Section 15. This act shall take effect July 1, 2017.
 1622  
 1623  ================= T I T L E  A M E N D M E N T ================
 1624  And the title is amended as follows:
 1625         Delete everything before the enacting clause
 1626  and insert:
 1627                        A bill to be entitled                      
 1628         An act relating to community associations; creating s.
 1629         633.2225, F.S.; requiring certain condominium or
 1630         cooperative associations to post certain signs or
 1631         symbols on buildings; requiring the State Fire Marshal
 1632         to adopt rules governing such signs or symbols;
 1633         providing enforcement; providing penalties; amending
 1634         s. 718.111, F.S.; prohibiting an officer, director, or
 1635         manager from soliciting, offering to accept, or
 1636         accepting a kickback for which consideration has not
 1637         been provided; providing criminal penalties; requiring
 1638         that an officer or director charged with certain
 1639         crimes be removed from office; providing requirements
 1640         for filling the vacancy left by such removal;
 1641         prohibiting such officer or director from being
 1642         appointed or elected or having access to official
 1643         condominium association records for a specified time;
 1644         providing an exception; requiring an officer or
 1645         director to be reinstated if the charges are resolved
 1646         without a finding of guilt; prohibiting an association
 1647         from hiring an attorney who represents the management
 1648         company of the association; prohibiting a board
 1649         member, manager, or management company from purchasing
 1650         a unit at a foreclosure sale under certain
 1651         circumstances; revising recordkeeping requirements;
 1652         providing that the official records of an association
 1653         are open to inspection by an association member’s
 1654         authorized representative; providing that a renter of
 1655         a unit has a right to inspect and copy the
 1656         association’s bylaws and rules; providing requirements
 1657         relating to the posting of specified documents on an
 1658         association’s website; providing a remedy for an
 1659         association’s failure to provide a unit owner with a
 1660         copy of the most recent financial report; revising
 1661         reporting requirements; requiring the Division of
 1662         Florida Condominiums, Timeshares, and Mobile Homes to
 1663         maintain and provide copies of financial reports;
 1664         prohibiting a condominium association and its
 1665         officers, directors, employees, and agents from using
 1666         a debit card issued in the name of the association, or
 1667         billed directly to the association, for the payment of
 1668         any association expense; providing that the use of
 1669         such debit card for any expense that is not a lawful
 1670         obligation of the association may be prosecuted as
 1671         credit card fraud; amending s. 718.112, F.S.;
 1672         authorizing an association to adopt rules for posting
 1673         certain notices on a website; revising provisions
 1674         relating to required condominium and cooperative
 1675         association bylaws; revising provisions relating to
 1676         evidence of condominium and cooperative association
 1677         compliance with the fire and life safety code;
 1678         revising unit and common elements required to be
 1679         retrofitted; revising provisions relating to an
 1680         association vote to forego retrofitting; providing
 1681         applicability; amending s. 718.113, F.S.; revising
 1682         voting requirements relating to alterations and
 1683         additions to certain common elements or association
 1684         property; amending s. 718.117, F.S.; revising
 1685         legislative findings; revising voting requirements for
 1686         the rejection of a plan of termination; increasing the
 1687         length of time to consider a plan of termination under
 1688         certain conditions; revising the requirements to
 1689         qualify for payment as a homestead owner if the owner
 1690         has rejected a plan of termination; revising and
 1691         providing notice requirements; providing
 1692         applicability; amending s. 718.707, F.S.; revising the
 1693         time period for classification as bulk assignee or
 1694         bulk buyer; amending s. 719.104, F.S.; revising
 1695         recordkeeping and reporting requirements; amending s.
 1696         719.1055, F.S.; revising provisions relating to
 1697         required condominium and cooperative association
 1698         bylaws; revising provisions relating to evidence of
 1699         condominium and cooperative association compliance
 1700         with the fire and life safety code; revising unit and
 1701         common elements required to be retrofitted; revising
 1702         provisions relating to an association vote to forego
 1703         retrofitting; providing applicability; amending s.
 1704         719.106, F.S.; revising requirements to serve as a
 1705         board member; prohibiting a board member from voting
 1706         via e-mail; requiring that directors who are
 1707         delinquent in certain payments owed in excess of
 1708         certain periods of time be deemed to have abandoned
 1709         their offices; authorizing an association to adopt
 1710         rules for posting certain notices on a website;
 1711         amending s. 719.107, F.S.; specifying certain services
 1712         that are obtained pursuant to a bulk contract to be
 1713         deemed a common expense; amending s. 720.303, F.S.;
 1714         prohibiting a board member from voting via e-mail;
 1715         revising certain notice requirements relating to board
 1716         meetings; revising financial reporting requirements;
 1717         authorizing an association to adopt rules for posting
 1718         certain notices on a website; amending s. 720.306,
 1719         F.S.; revising elections requirements; amending s.
 1720         720.3085, F.S.; providing applicability; providing an
 1721         effective date.