HB 0695 2003
1	CHAMBER ACTION
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6	The Committee on Business Regulation recommends the following:
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8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to corporate affairs; amending s.
12	617.01401, F.S.; defining the term "electronic
13	transmission" for purposes of the Florida Not For Profit
14	Corporation Act; amending s. 617.0141, F.S.; authorizing
15	forms of electronic transmission of notice for domestic or
16	foreign corporations; providing for a corporation member
17	to revoke consent to receiving notice by electronic
18	transmission; providing that an affidavit of notice by
19	electronic transmission is, in the absence of fraud, prima
20	facie evidence of the facts stated in the notice; creating
21	s. 617.1801, F.S.; providing for domestication of foreign
22	not-for-profit corporations; amending s. 702.09, F.S.;
23	redefining "mortgage" for purposes of specified
24	foreclosure proceedings to include liens created pursuant
25	to covenants of a homeowners' association; amending s.
26	718.111, F.S.; revising condominium insurance
27	requirements; providing for application of such
28	requirements; requiring that a report be prepared for
29	publication by the Office of Insurance Regulation of the
30	Department of Financial Services; requiring certain
31	coverage; revising recordkeeping requirements; providing
32	that the association is not liable for accidentally or
33	inadvertently disclosing certain address information;
34	authorizing the association to provide certain information
35	to prospective purchasers or lienholders under certain
36	circumstances; providing for a fee for providing certain
37	information; amending s. 718.112, F.S.; allowing use of
38	limited proxies for votes taken to waive certain financial
39	reporting requirements; providing for a condominium
40	association to transmit electronic notices to unit owners;
41	revising requirements for use of proxies for voting;
42	authorizing the association to broadcast notice via a
43	closed-circuit television system; prohibiting notice by
44	electronic transmission for a recall of board members;
45	providing for association bylaws to authorize the
46	electronic transmission of notices; amending s. 718.116,
47	F.S.; providing that a described fee may be charged for
48	preparation of a certificate stating certain amounts owed;
49	amending s. 718.303, F.S.; providing that certain actions
50	with respect to obligations of condominium owners shall
51	not be deemed actions for specific performance; amending
52	s. 719.104, F.S.; revising recordkeeping requirements for
53	cooperative associations; providing that the association
54	is not liable for accidentally or inadvertently disclosing
55	certain address information; authorizing the association
56	to provide certain information to prospective purchasers
57	or lienholders under certain circumstances; providing for
58	a fee for providing certain information; amending s.
59	719.106, F.S.; providing for a cooperative association to
60	transmit electronic notices to unit owners; revising
61	requirements for use of proxies for voting; authorizing
62	the association to broadcast notice via a closed-circuit
63	television system; prohibiting notice by electronic
64	transmission for a recall of board members; providing for
65	association bylaws to authorize the electronic
66	transmission of notices; amending s. 719.108, F.S.;
67	providing that a described fee may be charged for
68	preparation of a certificate stating certain amounts owed;
69	amending s. 719.303, F.S.; providing that certain actions
70	with respect to the obligation of cooperative owners shall
71	not be deemed actions for specific performance; amending
72	s. 720.302, F.S.; clarifying that corporations not for
73	profit that operate residential homeowners' associations
74	are subject to the Florida Not For Profit Corporation Act;
75	amending s. 720.303, F.S.; authorizing a homeowners'
76	association to broadcast notice via a closed-circuit
77	television system; providing that the association is not
78	liable for accidentally or inadvertently disclosing
79	certain address information; providing an effective date.
80
81	Be It Enacted by the Legislature of the State of Florida:
82
83	Section 1. Section 617.01401, Florida Statutes, is amended
84	to read:
85	617.01401 Definitions.--As used in this act, unless the
86	context otherwise requires, the term:
87	(1) "Articles of incorporation" includes original,
88	amended, and restated articles of incorporation, articles of
89	consolidation, and articles of merger, and all amendments
90	thereto, including documents designated by the laws of this
91	state as charters, and, in the case of a foreign corporation,
92	documents equivalent to articles of incorporation in the
93	jurisdiction of incorporation.
94	(2) "Board of directors" means the group of persons vested
95	with the management of the affairs of the corporation
96	irrespective of the name by which such group is designated,
97	including, but not limited to, managers or trustees.
98	(3) "Bylaws" means the code or codes of rules adopted for
99	the regulation or management of the affairs of the corporation
100	irrespective of the name or names by which such rules are
101	designated.
102	(4) "Corporation" or "domestic corporation" means a
103	corporation not for profit, subject to the provisions of this
104	act, except a foreign corporation.
105	(5) "Corporation not for profit" means a corporation no
106	part of the income or profit of which is distributable to its
107	members, directors, or officers.
108	(6) "Electronic transmission" means any form of
109	communication, not directly involving the physical transmission
110	or transfer of paper, which creates a record that may be
111	retained, retrieved, and reviewed by a recipient thereof and
112	which may be directly reproduced in a comprehensible and legible
113	paper form by such recipient through an automated process.
114	Examples of electronic transmission include, but are not limited
115	to, telegrams, facsimile transmissions of images, and text that
116	is sent via electronic mail between computers.
117	(7)(6)"Foreign corporation" means a corporation not for
118	profit organized under laws other than the laws of this state.
119	(8)(7)"Insolvent" means the inability of a corporation to
120	pay its debts as they become due in the usual course of its
121	affairs.
122	(9)(8)"Mail" means the United States mail, facsimile
123	transmissions, and private mail carriers handling nationwide
124	mail services.
125	(10)(9)"Member" means one having membership rights in a
126	corporation in accordance with the provisions of its articles of
127	incorporation or bylaws or the provisions of this act.
128	(11)(10)"Person" includes individual and entity.
129	Section 2. Section 617.0141, Florida Statutes, is amended
130	to read:
131	617.0141 Notice.--
132	(1) Notice under this act must be in writing, unless oral
133	notice is:
134	(a) Expressly authorized by the articles of incorporation
135	or the bylaws; and
136	(b) Reasonable under the circumstances.
137	(2) Notice may be communicated in person; by
138	telephone(where oral notice is permitted), telegraph, teletype,
139	or other form of electronic transmissioncommunication; or by
140	mail.
141	(3) Written notice by a domestic or foreign corporation
142	authorized to conduct its affairs in this state to its member,
143	if in a comprehensible form, is effective:
144	(a)When mailed, if mailed postpaid and correctly
145	addressed to the member's address shown in the corporation's
146	current record of members;.
147	(b) When actually transmitted by facsimile
148	telecommunication, if correctly directed to a number at which
149	the member has consented to receive notice;
150	(c) When actually transmitted by electronic mail, if
151	correctly directed to an electronic mail address at which the
152	member has consented to receive notice;
153	(d) When posted on an electronic network that the member
154	has consented to consult, upon the later of:
155	1. Such correct posting; or
156	2. The giving of a separate notice to the member of the
157	fact of such specific posting; or
158	(e) When correctly transmitted to the member, if by any
159	other form of electronic transmission consented to by the member
160	to whom notice is given.
161	(4) Consent by a member to receiving notice by electronic
162	transmission shall be revocable by the member by written notice
163	to the corporation. Any such consent shall be deemed revoked if:
164	(a) The corporation is unable to deliver by electronic
165	transmission two consecutive notices given by the corporation in
166	accordance with such consent; and
167	(b) Such inability becomes known to the secretary or an
168	assistant secretary of the corporation, or other authorized
169	person responsible for the giving of notice. However, the
170	inadvertent failure to treat such inability as a revocation does
171	not invalidate any meeting or other action.
172	(5)(4)Written notice to a domestic or foreign corporation
173	authorized to conduct its affairs in this state may be addressed
174	to its registered agent at its registered office or to the
175	corporation or its secretary at its principal office shown in
176	its most recent annual report or, in the case of a corporation
177	that has not yet delivered an annual report, in a domestic
178	corporation's articles of incorporation or in a foreign
179	corporation's application for certificate of authority.
180	(6)(5)Except as provided in subsection (3) or elsewhere
181	in this act, written notice, if in a comprehensible form, is
182	effective at the earliest date of the following:
183	(a) When received;
184	(b) Five days after its deposit in the United States mail,
185	as evidenced by the postmark, if mailed postpaid and correctly
186	addressed; or
187	(c) On the date shown on the return receipt, if sent by
188	registered or certified mail, return receipt requested, and the
189	receipt is signed by or on behalf of the addressee.
190	(7)(6)Oral notice is effective when communicated if
191	communicated directly to the person to be notified in a
192	comprehensible manner.
193	(8) An affidavit of the secretary, an assistant secretary,
194	the transfer agent, or other authorized agent of the corporation
195	that the notice has been given by a form of electronic
196	transmission is, in the absence of fraud, prima facie evidence
197	of the facts stated in the notice.
198	(9)(7)If this act prescribes notice requirements for
199	particular circumstances, those requirements govern. If
200	articles of incorporation or bylaws prescribe notice
201	requirements not less stringent than the requirements of this
202	section or other provisions of this act, those requirements
203	govern.
204	Section 3. Section 617.1801, Florida Statutes, is created
205	to read:
206	617.1801 Domestication of foreign not-for-profit
207	corporations.--
208	(1) As used in this section, the term "not-for-profit
209	corporation" includes any not-for-profit incorporated
210	organization.
211	(2) Any foreign not-for-profit corporation may become
212	domesticated in this state by filing with the Department of
213	State:
214	(a) A certificate of domestication which shall be executed
215	in accordance with subsection (7) and filed in accordance with
216	s. 617.01201; and
217	(b) Articles of incorporation which shall be executed and
218	filed in accordance with ss. 617.01201 and 617.0202.
219	(3) The certificate of domestication shall certify:
220	(a) The date on which and jurisdiction where the not-for-
221	profit corporation was first formed, incorporated, or otherwise
222	came into being;
223	(b) The name of the not-for-profit corporation immediately
224	before the filing of the certificate of domestication;
225	(c) The name of the not-for-profit corporation as set
226	forth in its articles of incorporation, filed in accordance with
227	paragraph (2)(b); and
228	(d) The jurisdiction that constituted the seat, siege
229	social, or principal place of business or central administration
230	of the not-for-profit corporation, or any other equivalent
231	thereto under applicable law, immediately before the filing of
232	the certificate of domestication.
233	(4) Upon filing the certificate of domestication and
234	articles of incorporation with the Department of State, the not-
235	for-profit corporation shall be domesticated in this state, and
236	the not-for-profit corporation shall thereafter be subject to
237	this act, except that, notwithstanding the provisions of s.
238	617.0203, the existence of the not-for-profit corporation shall
239	be deemed to have commenced on the date the not-for-profit
240	corporation commenced its existence in the jurisdiction in which
241	the not-for-profit corporation was first formed, incorporated,
242	or otherwise came into being.
243	(5) The domestication of any not-for-profit corporation in
244	this state shall not be deemed to affect any obligations or
245	liabilities of the not-for-profit corporation incurred before
246	its domestication.
247	(6) The filing of a certificate of domestication shall not
248	affect the choice of law applicable to the not-for-profit
249	corporation, except that, from the date the certificate of
250	domestication is filed, the law of this state, including this
251	act, shall apply to the not-for-profit corporation to the same
252	extent as if the not-for-profit corporation had been
253	incorporated as a not-for-profit corporation of this state on
254	that date.
255	(7) The certificate of domestication shall be signed by
256	any not-for-profit corporation officer, director, trustee,
257	manager, partner, or other person performing functions
258	equivalent to those of an officer or director, however named or
259	described, and who is authorized to sign the certificate of
260	domestication on behalf of the not-for-profit corporation.
261	Section 4. Section 702.09, Florida Statutes, is amended to
262	read:
263	702.09 Definitions.--For the purposes of ss. 702.07 and
264	702.08 the words "decree of foreclosure" shall include a
265	judgment or order rendered or passed in the foreclosure
266	proceedings in which the decree of foreclosure shall be
267	rescinded, vacated, and set aside; the word "mortgage" shall
268	mean any written instrument securing the payment of money or
269	advances and includes liens to secure payment of assessments
270	arising under chapters 718 and 719 and liens created pursuant to
271	the recorded covenants of a homeowners' association as defined
272	in s. 712.01; the word "debt" shall include promissory notes,
273	bonds, and all other written obligations given for the payment
274	of money; the words "foreclosure proceedings" shall embrace
275	every action in the circuit or county courts of this state
276	wherein it is sought to foreclose a mortgage and sell the
277	property covered by the same; and the word "property" shall mean
278	and include both real and personal property.
279	Section 5. Subsections (11) and (12) of section 718.111,
280	Florida Statutes, are amended to read:
281	718.111 The association.--
282	(11) INSURANCE.--In order to protect the safety, health,
283	and welfare of the people of the state and to ensure consistency
284	in the provision of insurance coverage to condominiums and their
285	unit owners, paragraphs (b) and (c) are deemed to apply to every
286	condominium in the state, regardless of the date of its
287	declaration of condominium. It is the intent of the Legislature
288	to encourage lower or stable insurance premiums for associations
289	described in this section. Therefore, the Office of Insurance
290	Regulation of the Department of Financial Services shall prepare
291	a report for publication 18 months after the effective date of
292	this act evaluating premium increases or decreases for
293	associations, unit owner premium increases or decreases,
294	recommended changes to better define common areas, or any other
295	information the Office of Insurance Regulation deems
296	appropriate.
297	(a) A unit-owner controlled association shall use its best
298	efforts to obtain and maintain adequate insurance to protect the
299	association, the association property, the common elements, and
300	the condominium property required to be insured by the
301	association pursuant to paragraph (b). If the association is
302	developer controlled, the association shall exercise due
303	diligence to obtain and maintain such insurance. Failure to
304	obtain and maintain adequate insurance during any period of
305	developer control shall constitute a breach of fiduciary
306	responsibility by the developer-appointed members of the board
307	of directors of the association, unless said members can show
308	that despite such failure, they have exercised due diligence.
309	The declaration of condominium as originally recorded or amended
310	pursuant to procedures provided therein may require that
311	condominium property consisting of freestanding buildings where
312	there is no more than one building in or on such unit need not
313	be insured by the association if the declaration requires the
314	unit owner to obtain adequate insurance for the condominium
315	property.An association may also obtain and maintain liability
316	insurance for directors and officers, insurance for the benefit
317	of association employees, and flood insurance for common
318	elements, association property, and units. Adequate insurance,
319	regardless of any requirement in the declaration of condominium
320	for coverage by the association for "full insurable value,"
321	"replacement cost," or the like, may include reasonable
322	deductibles as determined by the board.An association or group
323	of associations may self-insure against claims against the
324	association, the association property, and the condominium
325	property required to be insured by an association, upon
326	compliance with ss. 624.460-624.488. A copy of each policy of
327	insurance in effect shall be made available for inspection by
328	unit owners at reasonable times.
329	(b) Every hazard insurance policy which is issued or
330	renewed on or after January 1, 2004, to protect thea
331	condominium building shall provide primary coverage for:
332	1. All portions of the condominium property located
333	outside the units;
334	2. The condominium property located inside the units as
335	such property was initially installed or replacements thereof of
336	like kind and quality and in accordance with the original plans
337	and specifications or, if the original plans and specifications
338	are not available, as they existed at the time the unit was
339	initially conveyed; and
340	3. All portions of the condominium property for which the
341	declaration of condominium requires coverage by the association.
342
343	Anything to the contrary notwithstanding, the terms "condominium
344	property," "building," "improvements," "insurable improvements,"
345	"common elements," "association property," or any other term
346	found in the declaration of condominium which defines the scope
347	of property or casualty insurance that a condominium association
348	must obtain shall exclude all floor, wall, and ceiling
349	coverings,that the word "building" wherever used in the policy
350	include, but not necessarily be limited to, fixtures,
351	installations, or additions comprising that part of the building
352	within the unfinished interior surfaces of the perimeter walls,
353	floors, and ceilings of the individual units initially
354	installed, or replacements thereof of like kind or quality, in
355	accordance with the original plans and specifications, or as
356	they existed at the time the unit was initially conveyed if the
357	original plans and specifications are not available. However,
358	unless prior to October 1, 1986, the association is required by
359	the declaration to provide coverage therefor, the word
360	"building" does not include unit floor coverings, wall
361	coverings, or ceiling coverings, and, as to contracts entered
362	into after July 1, 1992, does not include the following
363	equipment if it is located within a unit and the unit owner is
364	required to repair or replace such equipment:electrical
365	fixtures, appliances, air conditioner or heating equipment,
366	water heaters, water filters,or built-in cabinets and
367	countertops and window treatments, including curtains, drapes,
368	blinds, hardware, and similar window treatment components, or
369	replacements of any of the foregoing which are located within
370	the boundaries of a unit and serve only one unit and all air
371	conditioning compressors that service only an individual unit,
372	whether or not located within the unit boundaries. The foregoing
373	is intended to establish the property or casualty insuring
374	responsibilities of the association and those of the individual
375	unit owner and do not serve to broaden or extend the perils of
376	coverage afforded by any insurance contract provided to the
377	individual unit owner. Beginning January 1, 2004, the
378	association shall have the authority to amend the declaration of
379	condominium, without regard to any requirement for mortgagee
380	approval of amendments affecting insurance requirements, to
381	conform the declaration of condominium to the coverage
382	requirements of this section. With respect to the coverage
383	provided for by this paragraph, the unit owners shall be
384	considered additional insureds under the policy.
385	(c) Every hazard insurance policy issued or renewed on or
386	after January 1, 2004,to an individual unit owner shall provide
387	that the coverage afforded by such policy is excess over the
388	amount recoverable under any other policy covering the same
389	property. Each insurance policy issued to an individual unit
390	owner providing such coverage shall bewithout rights of
391	subrogation against the condominium association that operates
392	the condominium in which such unit owner's unit is located. All
393	real or personal property located within the boundaries of the
394	unit owner's unit which is excluded from the coverage to be
395	provided by the association as set forth in paragraph (b) shall
396	be insured by the individual unit owner.
397	(d) The association shall obtain and maintain adequate
398	insurance or fidelity bonding of all persons who control or
399	disburse funds of the association. The insurance policy or
400	fidelity bond must cover the maximum funds that will be in the
401	custody of the association or its management agent at any one
402	time. As used in this paragraph, the term "persons who control
403	or disburse funds of the association" includes, but is not
404	limited to, those individuals authorized to sign checks and the
405	president, secretary, and treasurer of the association. The
406	association shall bear the cost of bonding.
407	(12) OFFICIAL RECORDS.--
408	(a) From the inception of the association, the association
409	shall maintain each of the following items, when applicable,
410	which shall constitute the official records of the association:
411	1. A copy of the plans, permits, warranties, and other
412	items provided by the developer pursuant to s. 718.301(4).
413	2. A photocopy of the recorded declaration of condominium
414	of each condominium operated by the association and of each
415	amendment to each declaration.
416	3. A photocopy of the recorded bylaws of the association
417	and of each amendment to the bylaws.
418	4. A certified copy of the articles of incorporation of
419	the association, or other documents creating the association,
420	and of each amendment thereto.
421	5. A copy of the current rules of the association.
422	6. A book or books which contain the minutes of all
423	meetings of the association, of the board of directors, and of
424	unit owners, which minutes shall be retained for a period of not
425	less than 7 years.
426	7. A current roster of all unit owners and their postal
427	and electronicmailing addresses, unit identifications, voting
428	certifications, and, if known, telephone numbers. Upon the
429	request of the unit owner in writing, the electronic mail
430	address and the number designated by the unit owner for
431	receiving electronic transmission of notices shall not be
432	included in the official records of the association. However,
433	the association is not liable for an accidental or inadvertent
434	disclosure of the electronic mail address or the number for
435	receiving electronic transmission of notices unless such
436	disclosure is made in reckless disregard of the private nature
437	of the electronic mail address or the number.
438	8. All current insurance policies of the association and
439	condominiums operated by the association.
440	9. A current copy of any management agreement, lease, or
441	other contract to which the association is a party or under
442	which the association or the unit owners have an obligation or
443	responsibility.
444	10. Bills of sale or transfer for all property owned by
445	the association.
446	11. Accounting records for the association and separate
447	accounting records for each condominium which the association
448	operates. All accounting records shall be maintained for a
449	period of not less than 7 years. The accounting records shall
450	include, but are not limited to:
451	a. Accurate, itemized, and detailed records of all
452	receipts and expenditures.
453	b. A current account and a monthly, bimonthly, or
454	quarterly statement of the account for each unit designating the
455	name of the unit owner, the due date and amount of each
456	assessment, the amount paid upon the account, and the balance
457	due.
458	c. All audits, reviews, accounting statements, and
459	financial reports of the association or condominium.
460	d. All contracts for work to be performed. Bids for work
461	to be performed shall also be considered official records and
462	shall be maintained for a period of 1 year.
463	12. Ballots, sign-in sheets, voting proxies, and all other
464	papers relating to voting by unit owners, which shall be
465	maintained for a period of 1 year from the date of the election,
466	vote, or meeting to which the document relates.
467	13. All rental records, when the association is acting as
468	agent for the rental of condominium units.
469	14. A copy of the current question and answer sheet as
470	described by s. 718.504.
471	15. All other records of the association not specifically
472	included in the foregoing which are related to the operation of
473	the association.
474	(b) The official records of the association shall be
475	maintained within the state. The records of the association
476	shall be made available to a unit owner within 5 working days
477	after receipt of written request by the board or its designee.
478	This paragraph may be complied with by having a copy of the
479	official records of the association available for inspection or
480	copying on the condominium property or association property.
481	(c) The official records of the association are open to
482	inspection by any association member or the authorized
483	representative of such member at all reasonable times. The right
484	to inspect the records includes the right to make or obtain
485	copies, at the reasonable expense, if any, of the association
486	member. The association may adopt reasonable rules regarding the
487	frequency, time, location, notice, and manner of record
488	inspections and copying. The failure of an association to
489	provide the records within 10 working days after receipt of a
490	written request shall create a rebuttable presumption that the
491	association willfully failed to comply with this paragraph. A
492	unit owner who is denied access to official records is entitled
493	to the actual damages or minimum damages for the association's
494	willful failure to comply with this paragraph. The minimum
495	damages shall be $50 per calendar day up to 10 days, the
496	calculation to begin on the 11th working day after receipt of
497	the written request. The failure to permit inspection of the
498	association records as provided herein entitles any person
499	prevailing in an enforcement action to recover reasonable
500	attorney's fees from the person in control of the records who,
501	directly or indirectly, knowingly denied access to the records
502	for inspection. The association shall maintain an adequate
503	number of copies of the declaration, articles of incorporation,
504	bylaws, and rules, and all amendments to each of the foregoing,
505	as well as the question and answer sheet provided for in s.
506	718.504 and year-end financial information required in this
507	section on the condominium property to ensure their availability
508	to unit owners and prospective purchasers, and may charge its
509	actual costs for preparing and furnishing these documents to
510	those requesting the same. Notwithstanding the provisions of
511	this paragraph, the following records shall not be accessible to
512	unit owners:
513	1. Any record protected by the lawyer-client privilege as
514	described in s. 90.502; and any record protected by the work-
515	product privilege, including any record prepared by an
516	association attorney or prepared at the attorney's express
517	direction; which reflects a mental impression, conclusion,
518	litigation strategy, or legal theory of the attorney or the
519	association, and which was prepared exclusively for civil or
520	criminal litigation or for adversarial administrative
521	proceedings, or which was prepared in anticipation of imminent
522	civil or criminal litigation or imminent adversarial
523	administrative proceedings until the conclusion of the
524	litigation or adversarial administrative proceedings.
525	2. Information obtained by an association in connection
526	with the approval of the lease, sale, or other transfer of a
527	unit.
528	3. Medical records of unit owners.
529	(d) The association shall prepare a question and answer
530	sheet as described in s. 718.504, and shall update it annually.
531	(e) The association or its authorized agent shall not be
532	required to provide a prospective purchaser or lienholder with
533	information about the condominium or the association other than
534	information or documents required by this chapter to be made
535	available or disclosed.
536	(f) The association or its authorized agent shall be
537	entitled to charge a reasonable fee to the prospective
538	purchaser, lienholder, or the current unit owner for its time in
539	providing good faith responses to requests for information by or
540	on behalf of a prospective purchaser or lienholder, other than
541	that required by law, provided that such fee shall not exceed
542	$150 plus the reasonable cost of photocopying and any attorney's
543	fees incurred by the association in connection with the
544	association's response.
545	Section 6. Paragraphs (b), (c), (d), (e), (j), and (l) of
546	subsection (2) and subsection (3) of section 718.112, Florida
547	Statutes, are amended to read:
548	718.112 Bylaws.--
549	(2) REQUIRED PROVISIONS.--The bylaws shall provide for the
550	following and, if they do not do so, shall be deemed to include
551	the following:
552	(b) Quorum; voting requirements; proxies.--
553	1. Unless a lower number is provided in the bylaws, the
554	percentage of voting interests required to constitute a quorum
555	at a meeting of the members shall be a majority of the voting
556	interests. Unless otherwise provided in this chapter or in the
557	declaration, articles of incorporation, or bylaws, and except as
558	provided in subparagraph (d)3., decisions shall be made by
559	owners of a majority of the voting interests represented at a
560	meeting at which a quorum is present.
561	2. Except as specifically otherwise provided herein, after
562	January 1, 1992, unit owners may not vote by general proxy, but
563	may vote by limited proxies substantially conforming to a
564	limited proxy form adopted by the division. Limited proxies and
565	general proxies may be used to establish a quorum. Limited
566	proxies shall be used for votes taken to waive or reduce
567	reserves in accordance with subparagraph (f)2.; for votes taken
568	to waive the financial reporting requirements of s. 718.111(13);
569	for votes taken to amend the declaration pursuant to s. 718.110;
570	for votes taken to amend the articles of incorporation or bylaws
571	pursuant to this section; and for any other matter for which
572	this chapter requires or permits a vote of the unit owners.
573	Except as provided in paragraph (d), after January 1, 1992, no
574	proxy, limited or general, shall be used in the election of
575	board members. General proxies may be used for other matters for
576	which limited proxies are not required, and may also be used in
577	voting for nonsubstantive changes to items for which a limited
578	proxy is required and given. Notwithstanding the provisions of
579	this subparagraph, unit owners may vote in person at unit owner
580	meetings. Nothing contained herein shall limit the use of
581	general proxies or require the use of limited proxies for any
582	agenda item or election at any meeting of a timeshare
583	condominium association.
584	3. Any proxy given shall be effective only for the
585	specific meeting for which originally given and any lawfully
586	adjourned meetings thereof. In no event shall any proxy be
587	valid for a period longer than 90 days after the date of the
588	first meeting for which it was given. Every proxy is revocable
589	at any time at the pleasure of the unit owner executing it.
590	4. A member of the board of administration or a committee
591	may submit in writing his or her agreement or disagreement with
592	any action taken at a meeting that the member did not attend.
593	This agreement or disagreement may not be used as a vote for or
594	against the action taken and may not be used for the purposes of
595	creating a quorum.
596	5. When any of the board or committee members meet by
597	telephone conference, those board or committee members attending
598	by telephone conference may be counted toward obtaining a quorum
599	and may vote by telephone. A telephone speaker must be used so
600	that the conversation of those board or committee members
601	attending by telephone may be heard by the board or committee
602	members attending in person as well as by any unit owners
603	present at a meeting.
604	(c) Board of administration meetings.--Meetings of the
605	board of administration at which a quorum of the members is
606	present shall be open to all unit owners. Any unit owner may
607	tape record or videotape meetings of the board of
608	administration. The right to attend such meetings includes the
609	right to speak at such meetings with reference to all designated
610	agenda items. The division shall adopt reasonable rules
611	governing the tape recording and videotaping of the meeting.
612	The association may adopt written reasonable rules governing the
613	frequency, duration, and manner of unit owner statements.
614	Adequate notice of all meetings, which notice shall specifically
615	incorporate an identification of agenda items, shall be posted
616	conspicuously on the condominium property at least 48 continuous
617	hours preceding the meeting except in an emergency. Any item
618	not included on the notice may be taken up on an emergency basis
619	by at least a majority plus one of the members of the board.
620	Such emergency action shall be noticed and ratified at the next
621	regular meeting of the board. However, written notice of any
622	meeting at which nonemergency special assessments, or at which
623	amendment to rules regarding unit use, will be considered shall
624	be mailed,or delivered, or electronically transmittedto the
625	unit owners and posted conspicuously on the condominium property
626	not less than 14 days prior to the meeting. Evidence of
627	compliance with this 14-day notice shall be made by an affidavit
628	executed by the person providing the notice and filed among the
629	official records of the association. Upon notice to the unit
630	owners, the board shall by duly adopted rule designate a
631	specific location on the condominium property or association
632	property upon which all notices of board meetings shall be
633	posted. If there is no condominium property or association
634	property upon which notices can be posted, notices of board
635	meetings shall be mailed,or delivered, or electronically
636	transmittedat least 14 days before the meeting to the owner of
637	each unit. In lieu of or in addition to the physical posting of
638	notice of any meeting of the board of administration on the
639	condominium property, the association may, by reasonable rule,
640	adopt a procedure for conspicuously posting and repeatedly
641	broadcasting the notice and the agenda on a closed-circuit cable
642	television system serving the condominium association. However,
643	if broadcast notice is used in lieu of a notice posted
644	physically on the condominium property, the notice and agenda
645	must be broadcast at least four times every broadcast hour of
646	each day that a posted notice is otherwise required under this
647	section. When broadcast notice is provided, the notice and
648	agenda must be broadcast in a manner and for a sufficient
649	continuous length of time so as to allow an average reader to
650	observe the notice and read and comprehend the entire content of
651	the notice and the agenda.Notice of any meeting in which
652	regular assessments against unit owners are to be considered for
653	any reason shall specifically contain a statement that
654	assessments will be considered and the nature of any such
655	assessments. Meetings of a committee to take final action on
656	behalf of the board or make recommendations to the board
657	regarding the association budget are subject to the provisions
658	of this paragraph. Meetings of a committee that does not take
659	final action on behalf of the board or make recommendations to
660	the board regarding the association budget are subject to the
661	provisions of this section, unless those meetings are exempted
662	from this section by the bylaws of the association.
663	Notwithstanding any other law, the requirement that board
664	meetings and committee meetings be open to the unit owners is
665	inapplicable to meetings between the board or a committee and
666	the association's attorney, with respect to proposed or pending
667	litigation, when the meeting is held for the purpose of seeking
668	or rendering legal advice.
669	(d) Unit owner meetings.--
670	1. There shall be an annual meeting of the unit owners.
671	Unless the bylaws provide otherwise, a vacancy on the board
672	caused by the expiration of a director's term shall be filled by
673	electing a new board member, and the election shall be by secret
674	ballot; however, if the number of vacancies equals or exceeds
675	the number of candidates, no election is required. If there is
676	no provision in the bylaws for terms of the members of the
677	board, the terms of all members of the board shall expire upon
678	the election of their successors at the annual meeting. Any unit
679	owner desiring to be a candidate for board membership shall
680	comply with subparagraph 3. A person who has been convicted of
681	any felony by any court of record in the United States and who
682	has not had his or her right to vote restored pursuant to law in
683	the jurisdiction of his or her residence is not eligible for
684	board membership. The validity of an action by the board is not
685	affected if it is later determined that a member of the board is
686	ineligible for board membership due to having been convicted of
687	a felony.
688	2. The bylaws shall provide the method of calling meetings
689	of unit owners, including annual meetings. Written notice, which
690	notice must include an agenda, shall be mailed,orhand
691	delivered, or electronically transmittedto each unit owner at
692	least 14 days prior to the annual meeting and shall be posted in
693	a conspicuous place on the condominium property at least 14
694	continuous days preceding the annual meeting. Upon notice to the
695	unit owners, the board shall by duly adopted rule designate a
696	specific location on the condominium property or association
697	property upon which all notices of unit owner meetings shall be
698	posted; however, if there is no condominium property or
699	association property upon which notices can be posted, this
700	requirement does not apply. In lieu of or in addition to the
701	physical posting of notice of any meeting of the unit owners on
702	the condominium property, the association may, by reasonable
703	rule, adopt a procedure for conspicuously posting and repeatedly
704	broadcasting the notice and the agenda on a closed-circuit cable
705	television system serving the condominium association. However,
706	if broadcast notice is used in lieu of a notice posted
707	physically on the condominium property, the notice and agenda
708	must be broadcast at least four times every broadcast hour of
709	each day that a posted notice is otherwise required under this
710	section. When broadcast notice is provided, the notice and
711	agenda must be broadcast in a manner and for a sufficient
712	continuous length of time so as to allow an average reader to
713	observe the notice and read and comprehend the entire content of
714	the notice and the agenda.Unless a unit owner waives in writing
715	the right to receive notice of the annual meeting, such notice
716	shall be hand delivered,or mailed, or electronically
717	transmittedto each unit owner. Notice for meetings and notice
718	for all other purposes shall be mailed to each unit owner at the
719	address last furnished to the association by the unit owner, or
720	hand delivered to each unit owner. However, if a unit is owned
721	by more than one person, the association shall provide notice,
722	for meetings and all other purposes, to that one address which
723	the developer initially identifies for that purpose and
724	thereafter as one or more of the owners of the unit shall so
725	advise the association in writing, or if no address is given or
726	the owners of the unit do not agree, to the address provided on
727	the deed of record. An officer of the association, or the
728	manager or other person providing notice of the association
729	meeting, shall provide an affidavit or United States Postal
730	Service certificate of mailing, to be included in the official
731	records of the association affirming that the notice was mailed
732	or hand delivered, in accordance with this provision.
733	3. The members of the board shall be elected by written
734	ballot or voting machine. Proxies shall in no event be used in
735	electing the board, either in general elections or elections to
736	fill vacancies caused by recall, resignation, or otherwise,
737	unless otherwise provided in this chapter. Not less than 60 days
738	before a scheduled election, the association shall mail,or
739	deliver, or electronically transmit,whether by separate
740	association mailing or included in another association mailing,
741	or delivery, or transmission,including regularly published
742	newsletters, to each unit owner entitled to a vote, a first
743	notice of the date of the election. Any unit owner or other
744	eligible person desiring to be a candidate for the board must
745	give written notice to the association not less than 40 days
746	before a scheduled election. Together with the written notice
747	and agenda as set forth in subparagraph 2., the association
748	shall mail,or deliver, or electronically transmita second
749	notice of the election to all unit owners entitled to vote
750	therein, together with a ballot which shall list all candidates.
751	Upon request of a candidate, the association shall include an
752	information sheet, no larger than 8 1/2 inches by 11 inches,
753	which must be furnished by the candidate not less than 35 days
754	before the election, to be included with the mailing, delivery,
755	or transmission of the ballot, with the costs of mailing,or
756	delivery, or electronic transmissionand copying to be borne by
757	the association. The association is not liable for the contents
758	of the information sheets prepared by the candidates. In order
759	to reduce costs, the association may print or duplicate the
760	information sheets on both sides of the paper. The division
761	shall by rule establish voting procedures consistent with the
762	provisions contained herein, including rules providing for
763	giving notice to the members by electronic transmission in a
764	manner authorized by law and forthe secrecy of ballots.
765	Elections shall be decided by a plurality of those ballots cast.
766	There shall be no quorum requirement; however, at least 20
767	percent of the eligible voters must cast a ballot in order to
768	have a valid election of members of the board. No unit owner
769	shall permit any other person to vote his or her ballot, and any
770	such ballots improperly cast shall be deemed invalid, provided
771	any unit owner who violates this provision may be fined by the
772	association in accordance with s. 718.303. A unit owner who
773	needs assistance in casting the ballot for the reasons stated in
774	s. 101.051 may obtain assistance in casting the ballot. The
775	regular election shall occur on the date of the annual meeting.
776	The provisions of this subparagraph shall not apply to timeshare
777	condominium associations. Notwithstanding the provisions of this
778	subparagraph, an election is not required unless more candidates
779	file notices of intent to run or are nominated than board
780	vacancies exist.
781	4. Any approval by unit owners called for by this chapter
782	or the applicable declaration or bylaws, including, but not
783	limited to, the approval requirement in s. 718.111(8), shall be
784	made at a duly noticed meeting of unit owners and shall be
785	subject to all requirements of this chapter or the applicable
786	condominium documents relating to unit owner decisionmaking,
787	except that unit owners may take action by written agreement,
788	without meetings, on matters for which action by written
789	agreement without meetings is expressly allowed by the
790	applicable bylaws or declaration or any statute that provides
791	for such action.
792	5. Unit owners may waive notice of specific meetings if
793	allowed by the applicable bylaws or declaration or any statute.
794	Unit owners may consent to receiving notice of board, committee,
795	and membership meetings by electronic transmission if the bylaws
796	provide a method for giving notice by electronic transmission.
797	6. Unit owners shall have the right to participate in
798	meetings of unit owners with reference to all designated agenda
799	items. However, the association may adopt reasonable rules
800	governing the frequency, duration, and manner of unit owner
801	participation.
802	7. Any unit owner may tape record or videotape a meeting
803	of the unit owners subject to reasonable rules adopted by the
804	division.
805	8. Unless otherwise provided in the bylaws, any vacancy
806	occurring on the board before the expiration of a term may be
807	filled by the affirmative vote of the majority of the remaining
808	directors, even if the remaining directors constitute less than
809	a quorum, or by the sole remaining director. In the alternative,
810	a board may hold an election to fill the vacancy, in which case
811	the election procedures must conform to the requirements of
812	subparagraph 3. unless the association has opted out of the
813	statutory election process, in which case the bylaws of the
814	association control. Unless otherwise provided in the bylaws, a
815	board member appointed or elected under this section shall fill
816	the vacancy for the unexpired term of the seat being filled.
817	Filling vacancies created by recall is governed by paragraph(j)
818	and rules adopted by the division.
819
820	Notwithstanding subparagraphs (b)2. and (d)3., an association
821	may, by the affirmative vote of a majority of the total voting
822	interests, provide for different voting and election procedures
823	in its bylaws, which vote may be by a proxy specifically
824	delineating the different voting and election procedures. The
825	different voting and election procedures may provide for
826	elections to be conducted by limited or general proxy.
827	(e) Budget meeting.--
828	1. Any meeting at which a proposed annual budget of an
829	association will be considered by the board or unit owners shall
830	be open to all unit owners. At least 14 days prior to such a
831	meeting, the board shall hand deliver to each unit owner, or
832	mail to each unit owner at the address last furnished to the
833	association by the unit owner, or electronically transmit to the
834	location furnished by the unit owner for that purposea notice
835	of such meeting and a copy of the proposed annual budget. An
836	officer or manager of the association, or other person providing
837	notice of such meeting, shall execute an affidavit evidencing
838	compliance with such notice requirement, and such affidavit
839	shall be filed among the official records of the association.
840	2.a. If a board adopts in any fiscal year an annual budget
841	which requires assessments against unit owners which exceed 115
842	percent of assessments for the preceding fiscal year, the board
843	shall conduct a special meeting of the unit owners to consider a
844	substitute budget if the board receives, within 21 days after
845	adoption of the annual budget, a written request for a special
846	meeting from at least 10 percent of all voting interests. The
847	special meeting shall be conducted within 60 days after adoption
848	of the annual budget. At least 14 days prior to such special
849	meeting, the board shall hand deliver to each unit owner, or
850	mail to each unit owner at the address last furnished to the
851	association, a notice of the meeting. An officer or manager of
852	the association, or other person providing notice of such
853	meeting shall execute an affidavit evidencing compliance with
854	this notice requirement, and such affidavit shall be filed among
855	the official records of the association. Unit owners may
856	consider and adopt a substitute budget at the special meeting. A
857	substitute budget is adopted if approved by a majority of all
858	voting interests unless the bylaws require adoption by a greater
859	percentage of voting interests. If there is not a quorum at the
860	special meeting or a substitute budget is not adopted, the
861	annual budget previously adopted by the board shall take effect
862	as scheduled.
863	b. Any determination of whether assessments exceed 115
864	percent of assessments for the prior fiscal year shall exclude
865	any authorized provision for reasonable reserves for repair or
866	replacement of the condominium property, anticipated expenses of
867	the association which the board does not expect to be incurred
868	on a regular or annual basis, or assessments for betterments to
869	the condominium property.
870	c. If the developer controls the board, assessments shall
871	not exceed 115 percent of assessments for the prior fiscal year
872	unless approved by a majority of all voting interests.
873	(j) Recall of board members.--Subject to the provisions of
874	s. 718.301, any member of the board of administration may be
875	recalled and removed from office with or without cause by the
876	vote or agreement in writing by a majority of all the voting
877	interests. A special meeting of the unit owners to recall a
878	member or members of the board of administration may be called
879	by 10 percent of the voting interests giving notice of the
880	meeting as required for a meeting of unit owners, and the notice
881	shall state the purpose of the meeting. Electronic transmission
882	may not be used as a method of giving notice of a meeting called
883	in whole or in part for this purpose.
884	1. If the recall is approved by a majority of all voting
885	interests by a vote at a meeting, the recall will be effective
886	as provided herein. The board shall duly notice and hold a board
887	meeting within 5 full business days of the adjournment of the
888	unit owner meeting to recall one or more board members. At the
889	meeting, the board shall either certify the recall, in which
890	case such member or members shall be recalled effective
891	immediately and shall turn over to the board within 5 full
892	business days any and all records and property of the
893	association in their possession, or shall proceed as set forth
894	in subparagraph 3.
895	2. If the proposed recall is by an agreement in writing by
896	a majority of all voting interests, the agreement in writing or
897	a copy thereof shall be served on the association by certified
898	mail or by personal service in the manner authorized by chapter
899	48 and the Florida Rules of Civil Procedure. The board of
900	administration shall duly notice and hold a meeting of the board
901	within 5 full business days after receipt of the agreement in
902	writing. At the meeting, the board shall either certify the
903	written agreement to recall a member or members of the board, in
904	which case such member or members shall be recalled effective
905	immediately and shall turn over to the board within 5 full
906	business days any and all records and property of the
907	association in their possession, or proceed as described in
908	subparagraph 3.
909	3. If the board determines not to certify the written
910	agreement to recall a member or members of the board, or does
911	not certify the recall by a vote at a meeting, the board shall,
912	within 5 full business days after the meeting, file with the
913	division a petition for arbitration pursuant to the procedures
914	in s. 718.1255. For the purposes of this section, the unit
915	owners who voted at the meeting or who executed the agreement in
916	writing shall constitute one party under the petition for
917	arbitration. If the arbitrator certifies the recall as to any
918	member or members of the board, the recall will be effective
919	upon mailing of the final order of arbitration to the
920	association. If the association fails to comply with the order
921	of the arbitrator, the division may take action pursuant to s.
922	718.501. Any member or members so recalled shall deliver to the
923	board any and all records of the association in their possession
924	within 5 full business days of the effective date of the recall.
925	4. If the board fails to duly notice and hold a board
926	meeting within 5 full business days of service of an agreement
927	in writing or within 5 full business days of the adjournment of
928	the unit owner recall meeting, the recall shall be deemed
929	effective and the board members so recalled shall immediately
930	turn over to the board any and all records and property of the
931	association.
932	5. If a vacancy occurs on the board as a result of a
933	recall and less than a majority of the board members are
934	removed, the vacancy may be filled by the affirmative vote of a
935	majority of the remaining directors, notwithstanding any
936	provision to the contrary contained in this subsection. If
937	vacancies occur on the board as a result of a recall and a
938	majority or more of the board members are removed, the vacancies
939	shall be filled in accordance with procedural rules to be
940	adopted by the division, which rules need not be consistent with
941	this subsection. The rules must provide procedures governing the
942	conduct of the recall election as well as the operation of the
943	association during the period after a recall but prior to the
944	recall election.
945	(l) Certificate of compliance.--There shall be a provision
946	that a certificate of compliance from a licensed electrical
947	contractor or electrician may be accepted by the association's
948	board as evidence of compliance of the condominium units withto
949	the applicable fire and life safety code.
950	(3) OPTIONAL PROVISIONS.--The bylaws as originally
951	recorded or as amended under the procedures provided therein may
952	provide for the following:
953	(a) A method of adopting and amending administrative rules
954	and regulations governing the details of the operation and use
955	of the common elements.
956	(b) Restrictions on and requirements for the use,
957	maintenance, and appearance of the units and the use of the
958	common elements.
959	(c) Provisions for giving notice by electronic
960	transmission in a manner authorized by law of meetings of the
961	board of directors and committees and of annual and special
962	meetings of the members.
963	(d)(c)Other provisions which are not inconsistent with
964	this chapter or with the declaration, as may be desired.
965	Section 7. Subsection (8) of section 718.116, Florida
966	Statutes, is amended to read:
967	718.116 Assessments; liability; lien and priority;
968	interest; collection.--
969	(8) Within 15 days after receiving a written request
970	therefor from a unit owner purchaser, or mortgagee, the
971	association shall provide a certificate signed by an officer or
972	agent of the association stating all assessments and other
973	moneys owed to the association by the unit owner with respect to
974	the condominium parcel. Any person other than the owner who
975	relies upon such certificate shall be protected thereby. A
976	summary proceeding pursuant to s. 51.011 may be brought to
977	compel compliance with this subsection, and in any such action
978	the prevailing party is entitled to recover reasonable
979	attorney's fees. Notwithstanding any limitation on transfer fees
980	contained in s. 718.112(2)(i), the association or its authorized
981	agent may charge a reasonable fee for the preparation of the
982	certificate.
983	Section 8. Subsection (1) of section 718.303, Florida
984	Statutes, is amended to read:
985	718.303 Obligations of owners; waiver; levy of fine
986	against unit by association.--
987	(1) Each unit owner, each tenant and other invitee, and
988	each association shall be governed by, and shall comply with the
989	provisions of, this chapter, the declaration, the documents
990	creating the association, and the association bylaws and the
991	provisions thereof shall be deemed expressly incorporated into
992	any lease of a unit. Actions for damages or for injunctive
993	relief, or both, for failure to comply with these provisions may
994	be brought by the association or by a unit owner against:
995	(a) The association.
996	(b) A unit owner.
997	(c) Directors designated by the developer, for actions
998	taken by them prior to the time control of the association is
999	assumed by unit owners other than the developer.
1000	(d) Any director who willfully and knowingly fails to
1001	comply with these provisions.
1002	(e) Any tenant leasing a unit, and any other invitee
1003	occupying a unit.
1004
1005	The prevailing party in any such action or in any action in
1006	which the purchaser claims a right of voidability based upon
1007	contractual provisions as required in s. 718.503(1)(a) is
1008	entitled to recover reasonable attorney's fees. A unit owner
1009	prevailing in an action between the association and the unit
1010	owner under this section, in addition to recovering his or her
1011	reasonable attorney's fees, may recover additional amounts as
1012	determined by the court to be necessary to reimburse the unit
1013	owner for his or her share of assessments levied by the
1014	association to fund its expenses of the litigation. This relief
1015	does not exclude other remedies provided by law. Actions arising
1016	under this subsection shall not be deemed to be actions for
1017	specific performance.
1018	Section 9. Subsection (2) of section 719.104, Florida
1019	Statutes, is amended to read:
1020	719.104 Cooperatives; access to units; records; financial
1021	reports; assessments; purchase of leases.--
1022	(2) OFFICIAL RECORDS.--
1023	(a) From the inception of the association, the association
1024	shall maintain a copy of each of the following, where
1025	applicable, which shall constitute the official records of the
1026	association:
1027	1. The plans, permits, warranties, and other items
1028	provided by the developer pursuant to s. 719.301(4).
1029	2. A photocopy of the cooperative documents.
1030	3. A copy of the current rules of the association.
1031	4. A book or books containing the minutes of all meetings
1032	of the association, of the board of directors, and of the unit
1033	owners, which minutes shall be retained for a period of not less
1034	than 7 years.
1035	5. A current roster of all unit owners and their postal
1036	and electronicmailing addresses, unit identifications, voting
1037	certifications, and, if known, telephone numbers. Upon the
1038	request of the unit owner in writing, the electronic mail
1039	address and the number designated by the unit owner for
1040	receiving electronic transmission of notices shall not be
1041	included in the official records of the association. However,
1042	the association is not liable for an accidental or inadvertent
1043	disclosure of the electronic mail address or the number for
1044	receiving electronic transmission of notices unless such
1045	disclosure is made in reckless disregard of the private nature
1046	of the electronic mail address or the number.
1047	6. All current insurance policies of the association.
1048	7. A current copy of any management agreement, lease, or
1049	other contract to which the association is a party or under
1050	which the association or the unit owners have an obligation or
1051	responsibility.
1052	8. Bills of sale or transfer for all property owned by the
1053	association.
1054	9. Accounting records for the association and separate
1055	accounting records for each unit it operates, according to good
1056	accounting practices. All accounting records shall be maintained
1057	for a period of not less than 7 years. The accounting records
1058	shall include, but not be limited to:
1059	a. Accurate, itemized, and detailed records of all
1060	receipts and expenditures.
1061	b. A current account and a monthly, bimonthly, or
1062	quarterly statement of the account for each unit designating the
1063	name of the unit owner, the due date and amount of each
1064	assessment, the amount paid upon the account, and the balance
1065	due.
1066	c. All audits, reviews, accounting statements, and
1067	financial reports of the association.
1068	d. All contracts for work to be performed. Bids for work
1069	to be performed shall also be considered official records and
1070	shall be maintained for a period of 1 year.
1071	10. Ballots, sign-in sheets, voting proxies, and all other
1072	papers relating to voting by unit owners, which shall be
1073	maintained for a period of 1 year after the date of the
1074	election, vote, or meeting to which the document relates.
1075	11. All rental records where the association is acting as
1076	agent for the rental of units.
1077	12. A copy of the current question and answer sheet as
1078	described in s. 719.504.
1079	13. All other records of the association not specifically
1080	included in the foregoing which are related to the operation of
1081	the association.
1082	(b) The official records of the association shall be
1083	maintained within the state. The records of the association
1084	shall be made available to a unit owner within 5 working days
1085	after receipt of written request by the board or its designee.
1086	This paragraph may be complied with by having a copy of the
1087	official records available for inspection or copying on the
1088	cooperative property.
1089	(c) The official records of the association shall be open
1090	to inspection by any association member or the authorized
1091	representative of such member at all reasonable times. Failure
1092	to permit inspection of the association records as provided
1093	herein entitles any person prevailing in an enforcement action
1094	to recover reasonable attorney's fees from the person in control
1095	of the records who, directly or indirectly, knowingly denies
1096	access to the records for inspection. The right to inspect the
1097	records includes the right to make or obtain copies, at the
1098	reasonable expense, if any, of the association member. The
1099	association may adopt reasonable rules regarding the frequency,
1100	time, location, notice, and manner of record inspections and
1101	copying. The failure of an association to provide the records
1102	within 10 working days after receipt of a written request
1103	creates a rebuttable presumption that the association willfully
1104	failed to comply with this paragraph. A unit owner who is denied
1105	access to official records is entitled to the actual damages or
1106	minimum damages for the association's willful failure to comply
1107	with this paragraph. The minimum damages shall be $50 per
1108	calendar day up to 10 days, the calculation to begin on the 11th
1109	day after receipt of the written request. The association shall
1110	maintain an adequate number of copies of the declaration,
1111	articles of incorporation, bylaws, and rules, and all amendments
1112	to each of the foregoing, as well as the question and answer
1113	sheet provided for in s. 719.504, on the cooperative property to
1114	ensure their availability to unit owners and prospective
1115	purchasers, and may charge its actual costs for preparing and
1116	furnishing these documents to those requesting the same.
1117	Notwithstanding the provisions of this paragraph, the following
1118	records shall not be accessible to unit owners:
1119	1. A record that was prepared by an association attorney
1120	or prepared at the attorney's express direction; that reflects a
1121	mental impression, conclusion, litigation strategy, or legal
1122	theory of the attorney or the association; or that was prepared
1123	exclusively for civil or criminal litigation or for adversarial
1124	administrative proceedings or in anticipation of imminent civil
1125	or criminal litigation or imminent adversarial administrative
1126	proceedings, until the conclusion of the litigation or
1127	adversarial administrative proceedings.
1128	2. Information obtained by an association in connection
1129	with the approval of the lease, sale, or other transfer of a
1130	unit.
1131	3. Medical records of unit owners.
1132	(d) The association or its authorized agent shall not be
1133	required to provide a prospective purchaser or lienholder with
1134	information about the cooperative or association other than the
1135	information or documents required by this chapter to be made
1136	available or disclosed.
1137	(e) The association or its authorized agent shall be
1138	entitled to charge a reasonable fee to the prospective
1139	purchaser, lienholder, or the current unit owner for its time in
1140	providing good faith responses to requests for information by or
1141	on behalf of a prospective purchaser or lienholder, other than
1142	that required by law, provided that such fee shall not exceed
1143	$150 plus the reasonable cost of photocopying and any attorney's
1144	fees incurred by the association in connection with the
1145	association's response.
1146	Section 10. Paragraphs (b), (c), (d), (e), and (f) of
1147	subsection (1) and subsection (2) of section 719.106, Florida
1148	Statutes, are amended to read:
1149	719.106 Bylaws; cooperative ownership.--
1150	(1) MANDATORY PROVISIONS.--The bylaws or other cooperative
1151	documents shall provide for the following, and if they do not,
1152	they shall be deemed to include the following:
1153	(b) Quorum; voting requirements; proxies.--
1154	1. Unless otherwise provided in the bylaws, the percentage
1155	of voting interests required to constitute a quorum at a meeting
1156	of the members shall be a majority of voting interests, and
1157	decisions shall be made by owners of a majority of the voting
1158	interests. Unless otherwise provided in this chapter, or in the
1159	articles of incorporation, bylaws, or other cooperative
1160	documents, and except as provided in subparagraph (d)1.,
1161	decisions shall be made by owners of a majority of the voting
1162	interests represented at a meeting at which a quorum is present.
1163	2. Except as specifically otherwise provided herein, after
1164	January 1, 1992, unit owners may not vote by general proxy, but
1165	may vote by limited proxies substantially conforming to a
1166	limited proxy form adopted by the division. Limited proxies and
1167	general proxies may be used to establish a quorum. Limited
1168	proxies shall be used for votes taken to waive or reduce
1169	reserves in accordance with subparagraph (j)2., for votes taken
1170	to waive the financial reporting requirements of s. 719.104(4),
1171	for votes taken to amend the articles of incorporation or bylaws
1172	pursuant to this section, and for any other matter for which
1173	this chapter requires or permits a vote of the unit owners.
1174	Except as provided in paragraph (d), after January 1, 1992, no
1175	proxy, limited or general, shall be used in the election of
1176	board members. General proxies may be used for other matters for
1177	which limited proxies are not required, and may also be used in
1178	voting for nonsubstantive changes to items for which a limited
1179	proxy is required and given. Notwithstanding the provisions of
1180	this section, unit owners may vote in person at unit owner
1181	meetings. Nothing contained herein shall limit the use of
1182	general proxies or require the use of limited proxies or require
1183	the use of limited proxies for any agenda item or election at
1184	any meeting of a timeshare cooperative.
1185	3. Any proxy given shall be effective only for the
1186	specific meeting for which originally given and any lawfully
1187	adjourned meetings thereof. In no event shall any proxy be
1188	valid for a period longer than 90 days after the date of the
1189	first meeting for which it was given. Every proxy shall be
1190	revocable at any time at the pleasure of the unit owner
1191	executing it.
1192	4. A member of the board of administration or a committee
1193	may submit in writing his or her agreement or disagreement with
1194	any action taken at a meeting that the member did not attend.
1195	This agreement or disagreement may not be used as a vote for or
1196	against the action taken and may not be used for the purposes of
1197	creating a quorum.
1198	5. When some or all of the board or committee members meet
1199	by telephone conference, those board or committee members
1200	attending by telephone conference may be counted toward
1201	obtaining a quorum and may vote by telephone. A telephone
1202	speaker shall be utilized so that the conversation of those
1203	board or committee members attending by telephone may be heard
1204	by the board or committee members attending in person, as well
1205	as by unit owners present at a meeting.
1206	(c) Board of administration meetings.--Meetings of the
1207	board of administration at which a quorum of the members is
1208	present shall be open to all unit owners. Any unit owner may
1209	tape record or videotape meetings of the board of
1210	administration. The right to attend such meetings includes the
1211	right to speak at such meetings with reference to all designated
1212	agenda items. The division shall adopt reasonable rules
1213	governing the tape recording and videotaping of the meeting.
1214	The association may adopt reasonable written rules governing the
1215	frequency, duration, and manner of unit owner statements.
1216	Adequate notice of all meetings shall be posted in a conspicuous
1217	place upon the cooperative property at least 48 continuous hours
1218	preceding the meeting, except in an emergency. Any item not
1219	included on the notice may be taken up on an emergency basis by
1220	at least a majority plus one of the members of the board. Such
1221	emergency action shall be noticed and ratified at the next
1222	regular meeting of the board. However, written notice of any
1223	meeting at which nonemergency special assessments, or at which
1224	amendment to rules regarding unit use, will be considered shall
1225	be mailed,or delivered, or electronically transmittedto the
1226	unit owners and posted conspicuously on the cooperative property
1227	not less than 14 days prior to the meeting. Evidence of
1228	compliance with this 14-day notice shall be made by an affidavit
1229	executed by the person providing the notice and filed among the
1230	official records of the association. Upon notice to the unit
1231	owners, the board shall by duly adopted rule designate a
1232	specific location on the cooperative property upon which all
1233	notices of board meetings shall be posted. In lieu of or in
1234	addition to the physical posting of notice of any meeting of the
1235	board of administration on the cooperative property, the
1236	association may, by reasonable rule, adopt a procedure for
1237	conspicuously posting and repeatedly broadcasting the notice and
1238	the agenda on a closed-circuit cable television system serving
1239	the cooperative association. However, if broadcast notice is
1240	used in lieu of a notice posted physically on the cooperative
1241	property, the notice and agenda must be broadcast at least four
1242	times every broadcast hour of each day that a posted notice is
1243	otherwise required under this section. When broadcast notice is
1244	provided, the notice and agenda must be broadcast in a manner
1245	and for a sufficient continuous length of time so as to allow an
1246	average reader to observe the notice and read and comprehend the
1247	entire content of the notice and the agenda.Notice of any
1248	meeting in which regular assessments against unit owners are to
1249	be considered for any reason shall specifically contain a
1250	statement that assessments will be considered and the nature of
1251	any such assessments. Meetings of a committee to take final
1252	action on behalf of the board or to make recommendations to the
1253	board regarding the association budget are subject to the
1254	provisions of this paragraph. Meetings of a committee that does
1255	not take final action on behalf of the board or make
1256	recommendations to the board regarding the association budget
1257	are subject to the provisions of this section, unless those
1258	meetings are exempted from this section by the bylaws of the
1259	association. Notwithstanding any other law to the contrary, the
1260	requirement that board meetings and committee meetings be open
1261	to the unit owners is inapplicable to meetings between the board
1262	or a committee and the association's attorney, with respect to
1263	proposed or pending litigation, when the meeting is held for the
1264	purpose of seeking or rendering legal advice.
1265	(d) Shareholder meetings.--There shall be an annual
1266	meeting of the shareholders. All members of the board of
1267	administration shall be elected at the annual meeting unless the
1268	bylaws provide for staggered election terms or for their
1269	election at another meeting. Any unit owner desiring to be a
1270	candidate for board membership shall comply with subparagraph 1.
1271	The bylaws shall provide the method for calling meetings,
1272	including annual meetings. Written notice, which notice shall
1273	incorporate an identification of agenda items, shall be given to
1274	each unit owner at least 14 days prior to the annual meeting and
1275	shall be posted in a conspicuous place on the cooperative
1276	property at least 14 continuous days preceding the annual
1277	meeting. Upon notice to the unit owners, the board shall by
1278	duly adopted rule designate a specific location on the
1279	cooperative property upon which all notice of unit owner
1280	meetings shall be posted. In lieu of or in addition to the
1281	physical posting of notice of any meeting of the shareholders on
1282	the cooperative property, the association may, by reasonable
1283	rule, adopt a procedure for conspicuously posting and repeatedly
1284	broadcasting the notice and the agenda on a closed-circuit cable
1285	television system serving the cooperative association. However,
1286	if broadcast notice is used in lieu of a notice posted
1287	physically on the cooperative property, the notice and agenda
1288	must be broadcast at least four times every broadcast hour of
1289	each day that a posted notice is otherwise required under this
1290	section. When broadcast notice is provided, the notice and
1291	agenda must be broadcast in a manner and for a sufficient
1292	continuous length of time so as to allow an average reader to
1293	observe the notice and read and comprehend the entire content of
1294	the notice and the agenda.Unless a unit owner waives in writing
1295	the right to receive notice of the annual meeting, the notice of
1296	the annual meeting shall be sent by mail, hand delivered, or
1297	electronically transmittedto each unit owner. An officer of
1298	the association shall provide an affidavit or United States
1299	Postal Service certificate of mailing, to be included in the
1300	official records of the association, affirming that notices of
1301	the association meeting were mailed,or hand delivered, or
1302	electronically transmitted,in accordance with this provision,
1303	to each unit owner at the address last furnished to the
1304	association.
1305	1. After January 1, 1992, the board of administration
1306	shall be elected by written ballot or voting machine. Proxies
1307	shall in no event be used in electing the board of
1308	administration, either in general elections or elections to fill
1309	vacancies caused by recall, resignation, or otherwise unless
1310	otherwise provided in this chapter. Not less than 60 days
1311	before a scheduled election, the association shall mail,or
1312	deliver, or transmit, whether by separate association mailing,
1313	delivery, or electronic transmissionor included in another
1314	association mailing,or delivery, or electronic transmission,
1315	including regularly published newsletters, to each unit owner
1316	entitled to vote, a first notice of the date of the election.
1317	Any unit owner or other eligible person desiring to be a
1318	candidate for the board of administration shall give written
1319	notice to the association not less than 40 days before a
1320	scheduled election. Together with the written notice and agenda
1321	as set forth in this section, the association shall mail,
1322	deliver, or electronically transmita second notice of election
1323	to all unit owners entitled to vote therein, together with a
1324	ballot which shall list all candidates. Upon request of a
1325	candidate, the association shall include an information sheet,
1326	no larger than 8 1/2 inches by 11 inches, which must be
1327	furnished by the candidate not less than 35 days prior to the
1328	election, to be included with the mailing, delivery, or
1329	electronic transmissionof the ballot, with the costs of
1330	mailing,or delivery, or transmissionand copying to be borne by
1331	the association. The association has no liability for the
1332	contents of the information sheets provided by the candidates.
1333	In order to reduce costs, the association may print or duplicate
1334	the information sheets on both sides of the paper. The division
1335	shall by rule establish voting procedures consistent with the
1336	provisions contained herein, including rules providing for
1337	giving notice by electronic transmission in a manner authorized
1338	by law of meetings of the board of directors and committees and
1339	of annual and special meetings of the members and forthe
1340	secrecy of ballots. Elections shall be decided by a plurality
1341	of those ballots cast. There shall be no quorum requirement.
1342	However, at least 20 percent of the eligible voters must cast a
1343	ballot in order to have a valid election of members of the board
1344	of administration. No unit owner shall permit any other person
1345	to vote his or her ballot, and any such ballots improperly cast
1346	shall be deemed invalid. A unit owner who needs assistance in
1347	casting the ballot for the reasons stated in s. 101.051 may
1348	obtain assistance in casting the ballot. Any unit owner
1349	violating this provision may be fined by the association in
1350	accordance with s. 719.303. The regular election shall occur on
1351	the date of the annual meeting. The provisions of this
1352	subparagraph shall not apply to timeshare cooperatives.
1353	Notwithstanding the provisions of this subparagraph, an election
1354	and balloting are not required unless more candidates file a
1355	notice of intent to run or are nominated than vacancies exist on
1356	the board.
1357	2. Any approval by unit owners called for by this chapter,
1358	or the applicable cooperative documents, shall be made at a duly
1359	noticed meeting of unit owners and shall be subject to all
1360	requirements of this chapter or the applicable cooperative
1361	documents relating to unit owner decisionmaking, except that
1362	unit owners may take action by written agreement, without
1363	meetings, on matters for which action by written agreement
1364	without meetings is expressly allowed by the applicable
1365	cooperative documents or any Florida statute which provides for
1366	the unit owner action.
1367	3. Unit owners may waive notice of specific meetings if
1368	allowed by the applicable cooperative documents or any Florida
1369	statute. Unit owners may consent to receiving notice of board,
1370	committee, and membership meetings by electronic transmission if
1371	the bylaws provide a method for giving notice by electronic
1372	transmission.
1373	4. Unit owners shall have the right to participate in
1374	meetings of unit owners with reference to all designated agenda
1375	items. However, the association may adopt reasonable rules
1376	governing the frequency, duration, and manner of unit owner
1377	participation.
1378	5. Any unit owner may tape record or videotape meetings of
1379	the unit owners subject to reasonable rules adopted by the
1380	division.
1381
1382	Notwithstanding subparagraphs (b)2. and (d)1., an association
1383	may, by the affirmative vote of a majority of the total voting
1384	interests, provide for a different voting and election procedure
1385	in its bylaws, which vote may be by a proxy specifically
1386	delineating the different voting and election procedures. The
1387	different voting and election procedures may provide for
1388	elections to be conducted by limited or general proxy.
1389	(e) Budget procedures.--
1390	1. The board of administration shall mail, orhand
1391	deliver, or electronically transmitto each unit owner at the
1392	address last furnished to the association, a meeting notice and
1393	copies of the proposed annual budget of common expenses to the
1394	unit owners not less than 14 days prior to the meeting at which
1395	the budget will be considered. Evidence of compliance with this
1396	14-day notice must be made by an affidavit executed by an
1397	officer of the association or the manager or other person
1398	providing notice of the meeting and filed among the official
1399	records of the association. The meeting must be open to the unit
1400	owners.
1401	2. If an adopted budget requires assessment against the
1402	unit owners in any fiscal or calendar year which exceeds 115
1403	percent of the assessments for the preceding year, the board
1404	upon written application of 10 percent of the voting interests
1405	to the board, shall call a special meeting of the unit owners
1406	within 30 days, upon not less than 10 days' written notice to
1407	each unit owner. At the special meeting, unit owners shall
1408	consider and enact a budget. Unless the bylaws require a larger
1409	vote, the adoption of the budget requires a vote of not less
1410	than a majority of all the voting interests.
1411	3. The board of administration may, in any event, propose
1412	a budget to the unit owners at a meeting of members or by
1413	writing, and if the budget or proposed budget is approved by the
1414	unit owners at the meeting or by a majority of all voting
1415	interests in writing, the budget is adopted. If a meeting of
1416	the unit owners has been called and a quorum is not attained or
1417	a substitute budget is not adopted by the unit owners, the
1418	budget adopted by the board of directors goes into effect as
1419	scheduled.
1420	4. In determining whether assessments exceed 115 percent
1421	of similar assessments for prior years, any authorized
1422	provisions for reasonable reserves for repair or replacement of
1423	cooperative property, anticipated expenses by the association
1424	which are not anticipated to be incurred on a regular or annual
1425	basis, or assessments for betterments to the cooperative
1426	property must be excluded from computation. However, as long as
1427	the developer is in control of the board of administration, the
1428	board may not impose an assessment for any year greater than 115
1429	percent of the prior fiscal or calendar year's assessment
1430	without approval of a majority of all voting interests.
1431	(f) Recall of board members.--Subject to the provisions of
1432	s. 719.301, any member of the board of administration may be
1433	recalled and removed from office with or without cause by the
1434	vote or agreement in writing by a majority of all the voting
1435	interests. A special meeting of the voting interests to recall
1436	any member of the board of administration may be called by 10
1437	percent of the unit owners giving notice of the meeting as
1438	required for a meeting of unit owners, and the notice shall
1439	state the purpose of the meeting. Electronic transmission may
1440	not be used as a method of giving notice of a meeting called in
1441	whole or in part for this purpose.
1442	1. If the recall is approved by a majority of all voting
1443	interests by a vote at a meeting, the recall shall be effective
1444	as provided herein. The board shall duly notice and hold a board
1445	meeting within 5 full business days of the adjournment of the
1446	unit owner meeting to recall one or more board members. At the
1447	meeting, the board shall either certify the recall, in which
1448	case such member or members shall be recalled effective
1449	immediately and shall turn over to the board within 5 full
1450	business days any and all records and property of the
1451	association in their possession, or shall proceed as set forth
1452	in subparagraph 3.
1453	2. If the proposed recall is by an agreement in writing by
1454	a majority of all voting interests, the agreement in writing or
1455	a copy thereof shall be served on the association by certified
1456	mail or by personal service in the manner authorized by chapter
1457	48 and the Florida Rules of Civil Procedure. The board of
1458	administration shall duly notice and hold a meeting of the board
1459	within 5 full business days after receipt of the agreement in
1460	writing. At the meeting, the board shall either certify the
1461	written agreement to recall members of the board, in which case
1462	such members shall be recalled effective immediately and shall
1463	turn over to the board, within 5 full business days, any and all
1464	records and property of the association in their possession, or
1465	proceed as described in subparagraph 3.
1466	3. If the board determines not to certify the written
1467	agreement to recall members of the board, or does not certify
1468	the recall by a vote at a meeting, the board shall, within 5
1469	full business days after the board meeting, file with the
1470	division a petition for binding arbitration pursuant to the
1471	procedures of s. 719.1255. For purposes of this paragraph, the
1472	unit owners who voted at the meeting or who executed the
1473	agreement in writing shall constitute one party under the
1474	petition for arbitration. If the arbitrator certifies the recall
1475	as to any member of the board, the recall shall be effective
1476	upon mailing of the final order of arbitration to the
1477	association. If the association fails to comply with the order
1478	of the arbitrator, the division may take action pursuant to s.
1479	719.501. Any member so recalled shall deliver to the board any
1480	and all records and property of the association in the member's
1481	possession within 5 full business days of the effective date of
1482	the recall.
1483	4. If the board fails to duly notice and hold a board
1484	meeting within 5 full business days of service of an agreement
1485	in writing or within 5 full business days of the adjournment of
1486	the unit owner recall meeting, the recall shall be deemed
1487	effective and the board members so recalled shall immediately
1488	turn over to the board any and all records and property of the
1489	association.
1490	5. If a vacancy occurs on the board as a result of a
1491	recall and less than a majority of the board members are
1492	removed, the vacancy may be filled by the affirmative vote of a
1493	majority of the remaining directors, notwithstanding any
1494	provision to the contrary contained in this chapter. If
1495	vacancies occur on the board as a result of a recall and a
1496	majority or more of the board members are removed, the vacancies
1497	shall be filled in accordance with procedural rules to be
1498	adopted by the division, which rules need not be consistent with
1499	this chapter. The rules must provide procedures governing the
1500	conduct of the recall election as well as the operation of the
1501	association during the period after a recall but prior to the
1502	recall election.
1503	(2) OPTIONAL PROVISIONS.--The bylaws may provide for the
1504	following:
1505	(a) Administrative rules.--A method of adopting and of
1506	amending administrative rules and regulations governing the
1507	details of the operation and use of the common areas.
1508	(b) Use and maintenance restrictions.--Restrictions on,
1509	and requirements for, the use, maintenance, and appearance of
1510	the units and the use of the common areas, not inconsistent with
1511	the cooperative documents, designed to prevent unreasonable
1512	interference with the use of the units and common areas.
1513	(c) Notice of meetings.--Provisions for giving notice by
1514	electronic transmissions in a manner authorized by law of
1515	meetings of the board of directors and committees and of annual
1516	and special meetings of the members.
1517	(d)(c)Other matters.--Other provisions not inconsistent
1518	with this chapter or with the cooperative documents as may be
1519	desired.
1520	Section 11. Subsection (6) of section 719.108, Florida
1521	Statutes, is amended to read:
1522	719.108 Rents and assessments; liability; lien and
1523	priority; interest; collection; cooperative ownership.--
1524	(6) Within 15 days after request by a unit owner or
1525	mortgagee, the association shall provide a certificate stating
1526	all assessments and other moneys owed to the association by the
1527	unit owner with respect to the cooperative parcel. Any person
1528	other than the unit owner who relies upon such certificate shall
1529	be protected thereby. Notwithstanding any limitation on transfer
1530	fees contained in s. 719.106(1)(i), the association or its
1531	authorized agent may charge a reasonable fee for the preparation
1532	of the certificate.
1533	Section 12. Subsection (1) of section 719.303, Florida
1534	Statutes, is amended to read:
1535	719.303 Obligations of owners.--
1536	(1) Each unit owner, each tenant and other invitee, and
1537	each association shall be governed by, and shall comply with the
1538	provisions of, this chapter, the cooperative documents, the
1539	documents creating the association, and the association bylaws,
1540	and the provisions thereof shall be deemed expressly
1541	incorporated into any lease of a unit. Actions for damages or
1542	for injunctive relief, or both, for failure to comply with these
1543	provisions may be brought by the association or by a unit owner
1544	against:
1545	(a) The association.
1546	(b) A unit owner.
1547	(c) Directors designated by the developer, for actions
1548	taken by them prior to the time control of the association is
1549	assumed by unit owners other than the developer.
1550	(d) Any director who willfully and knowingly fails to
1551	comply with these provisions.
1552	(e) Any tenant leasing a unit, and any other invitee
1553	occupying a unit.
1554
1555	The prevailing party in any such action or in any action in
1556	which the purchaser claims a right of voidability based upon
1557	contractual provisions as required in s. 719.503(1)(a) is
1558	entitled to recover reasonable attorney's fees. A unit owner
1559	prevailing in an action between the association and the unit
1560	owner under this section, in addition to recovering his or her
1561	reasonable attorney's fees, may recover additional amounts as
1562	determined by the court to be necessary to reimburse the unit
1563	owner for his or her share of assessments levied by the
1564	association to fund its expenses of the litigation. This relief
1565	does not exclude other remedies provided by law. Actions arising
1566	under this subsection shall not be deemed to be actions for
1567	specific performance.
1568	Section 13. Subsection (1) of section 720.302, Florida
1569	Statutes, is amended, and subsection (5) is added to said
1570	section, to read:
1571	720.302 Purposes, scope, and application.--
1572	(1) The purposes of ss. 720.301-720.312 are to give
1573	statutory recognition to corporations not for profitthat
1574	operate residential communities in this state, to provide
1575	procedures for operating homeowners' associations, and to
1576	protect the rights of association members without unduly
1577	impairing the ability of such associations to perform their
1578	functions.
1579	(5) Unless expressly stated to the contrary, corporations
1580	not for profit that operate residential homeowners' associations
1581	in this state shall be governed by and subject to the provisions
1582	of chapter 617. This subsection is intended to clarify existing
1583	law.
1584	Section 14. Subsection (2) and paragraph (g) of subsection
1585	(4) of section 720.303, Florida Statutes, are amended to read:
1586	720.303 Association powers and duties; meetings of board;
1587	official records; budgets; financial reporting.--
1588	(2) BOARD MEETINGS.--A meeting of the board of directors
1589	of an association occurs whenever a quorum of the board gathers
1590	to conduct association business. All meetings of the board must
1591	be open to all members except for meetings between the board and
1592	its attorney with respect to proposed or pending litigation
1593	where the contents of the discussion would otherwise be governed
1594	by the attorney-client privilege. Notices of all board meetings
1595	must be posted in a conspicuous place in the community at least
1596	48 hours in advance of a meeting, except in an emergency. In
1597	the alternative, if notice is not posted in a conspicuous place
1598	in the community, notice of each board meeting must be mailed or
1599	delivered to each member at least 7 days before the meeting,
1600	except in an emergency. Notwithstanding this general notice
1601	requirement, for communities with more than 100 members, the
1602	bylaws may provide for a reasonable alternative to posting or
1603	mailing of notice for each board meeting, including publication
1604	of notice,or provision of a schedule of board meetings, or the
1605	conspicuous posting and repeated broadcasting of the notice on a
1606	closed-circuit cable television system serving the homeowners'
1607	association. However, if broadcast notice is used in lieu of a
1608	notice posted physically in the community, the notice must be
1609	broadcast at least four times every broadcast hour of each day
1610	that a posted notice is otherwise required. When broadcast
1611	notice is provided, the notice and agenda must be broadcast in a
1612	manner and for a sufficient continuous length of time so as to
1613	allow an average reader to observe the notice and read and
1614	comprehend the entire content of the notice and the agenda. The
1615	bylaws or amended bylaws may provide for giving notice by
1616	electronic transmission in a manner authorized by law for
1617	meetings of the board of directors, committee meetings requiring
1618	notice under this section, and annual and special meetings of
1619	the members; however, a member must consent in writing to
1620	receiving notice by electronic transmission.An assessment may
1621	not be levied at a board meeting unless the notice of the
1622	meeting includes a statement that assessments will be considered
1623	and the nature of the assessments. Directors may not vote by
1624	proxy or by secret ballot at board meetings, except that secret
1625	ballots may be used in the election of officers. This
1626	subsection also applies to the meetings of any committee or
1627	other similar body, when a final decision will be made regarding
1628	the expenditure of association funds, and to any body vested
1629	with the power to approve or disapprove architectural decisions
1630	with respect to a specific parcel of residential property owned
1631	by a member of the community.
1632	(4) OFFICIAL RECORDS.--The association shall maintain each
1633	of the following items, when applicable, which constitute the
1634	official records of the association:
1635	(g) A current roster of all members and their postal and
1636	electronic mailing addresses and parcel identifications. Upon
1637	the request of a member in writing, the electronic mail address
1638	and the number designated by the member for receiving electronic
1639	transmission of notices shall not be included in the official
1640	records of the association. However, the association is not
1641	liable for an accidental or inadvertent disclosure of the
1642	electronic mail address or the number for receiving electronic
1643	transmission of notices unless such disclosure is made in
1644	reckless disregard of the private nature of the electronic mail
1645	address or the number.
1646	Section 15. This act shall take effect upon becoming a
1647	law.