Florida Senate - 2015                CS for CS for CS for SB 748
       
       
        
       By the Committees on Fiscal Policy; Judiciary; and Regulated
       Industries; and Senator Ring
       
       
       
       
       594-04427-15                                           2015748c3
    1                        A bill to be entitled                      
    2         An act relating to residential properties; amending s.
    3         617.0721, F.S.; authorizing the use of a copy,
    4         facsimile transmission, or other reliable reproduction
    5         of an original proxy vote for certain purposes;
    6         amending s. 718.111, F.S.; revising liability of unit
    7         owners under certain conditions; revising what
    8         constitutes official records of an association;
    9         amending s. 718.112, F.S.; revising provisions
   10         relating to the voting process for providing reserves;
   11         amending s. 718.116, F.S.; revising applicability;
   12         revising effect of a claim of lien; creating s.
   13         718.128, F.S.; authorizing condominium associations to
   14         conduct votes of the membership by online voting under
   15         certain conditions; providing requirements for online
   16         voting; providing that a member voting electronically
   17         is counted toward the determination of a quorum;
   18         providing applicability; amending s. 718.303, F.S.;
   19         providing that a fine may be levied by the board under
   20         certain conditions; revising requirements for levying
   21         a fine or suspension; amending s. 718.707, F.S.;
   22         extending the time period for classification as bulk
   23         assignee or bulk buyer; amending s. 719.104, F.S.;
   24         revising what constitutes the official records of an
   25         association; amending s. 719.108, F.S.; revising
   26         applicability; revising effect of a claim of lien;
   27         creating s. 719.129, F.S.; authorizing cooperative
   28         associations to conduct votes of the membership by
   29         online voting under certain conditions; providing
   30         requirements for online voting; providing that a
   31         member voting electronically is counted toward the
   32         determination of a quorum; providing applicability;
   33         amending s. 719.303, F.S.; providing that a fine may
   34         be levied by the board under certain conditions;
   35         revising requirements for levying a fine or
   36         suspension; amending s. 720.301, F.S.; revising the
   37         definition of the term “governing documents”; creating
   38         s. 720.3015, F.S.; providing a short title; amending
   39         s. 720.305, F.S.; revising requirements for levying a
   40         fine or suspension; revising application of certain
   41         provisions; amending s. 720.306, F.S.; revising
   42         requirements for the adoption of amendments to the
   43         governing documents; revising requirements for the
   44         election of directors; defining the term “any fee,
   45         fine, or other monetary obligation”; creating s.
   46         720.317, F.S.; authorizing homeowners’ associations to
   47         conduct votes of the membership by online voting under
   48         certain conditions; providing requirements for online
   49         voting; providing that a member voting electronically
   50         is counted toward the determination of a quorum;
   51         providing applicability; providing an effective date.
   52          
   53  Be It Enacted by the Legislature of the State of Florida:
   54  
   55         Section 1. Subsection (2) of section 617.0721, Florida
   56  Statutes, is amended to read:
   57         617.0721 Voting by members.—
   58         (2) A member who is entitled to vote may vote in person or,
   59  unless the articles of incorporation or the bylaws otherwise
   60  provide, may vote by proxy executed in writing by the member or
   61  by his or her duly authorized attorney in fact. Notwithstanding
   62  any provision to the contrary in the articles of incorporation
   63  or bylaws, any copy, facsimile transmission, or other reliable
   64  reproduction of the original proxy may be substituted or used in
   65  lieu of the original proxy for any purpose for which the
   66  original proxy could be used if the copy, facsimile
   67  transmission, or other reproduction is a complete reproduction
   68  of the entire proxy. An appointment of a proxy is not valid
   69  after 11 months following the date of its execution unless
   70  otherwise provided in the proxy.
   71         (a) If directors or officers are to be elected by members,
   72  the bylaws may provide that such elections may be conducted by
   73  mail.
   74         (b) A corporation may reject a vote, consent, waiver, or
   75  proxy appointment if the secretary or other officer or agent
   76  authorized to tabulate votes, acting in good faith, has a
   77  reasonable basis for doubting the validity of the signature on
   78  it or the signatory’s authority to sign for the member.
   79         Section 2. Paragraph (j) of subsection (11) and paragraph
   80  (a) of subsection (12) of section 718.111, Florida Statutes, are
   81  amended to read:
   82         718.111 The association.—
   83         (11) INSURANCE.—In order to protect the safety, health, and
   84  welfare of the people of the State of Florida and to ensure
   85  consistency in the provision of insurance coverage to
   86  condominiums and their unit owners, this subsection applies to
   87  every residential condominium in the state, regardless of the
   88  date of its declaration of condominium. It is the intent of the
   89  Legislature to encourage lower or stable insurance premiums for
   90  associations described in this subsection.
   91         (j) Any portion of the condominium property that must be
   92  insured by the association against property loss pursuant to
   93  paragraph (f) which is damaged by an insurable event shall be
   94  reconstructed, repaired, or replaced as necessary by the
   95  association as a common expense. In the absence of an insurable
   96  event, the association or the unit owners shall be responsible
   97  for the reconstruction, repair, or replacement, as determined by
   98  the maintenance provisions of the declaration or bylaws. All
   99  property insurance deductibles, uninsured losses, and other
  100  damages in excess of property insurance coverage under the
  101  property insurance policies maintained by the association are a
  102  common expense of the condominium, except that:
  103         1. A unit owner is responsible for the costs of repair or
  104  replacement of any portion of the condominium property not paid
  105  by insurance proceeds if such damage is caused by intentional
  106  conduct, negligence, or failure to comply with the terms of the
  107  declaration or the rules of the association by a unit owner, the
  108  members of his or her family, unit occupants, tenants, guests,
  109  or invitees, without compromise of the subrogation rights of the
  110  insurer.
  111         2. The provisions of subparagraph 1. regarding the
  112  financial responsibility of a unit owner for the costs of
  113  repairing or replacing other portions of the condominium
  114  property also apply to the costs of repair or replacement of
  115  personal property of other unit owners or the association, as
  116  well as other property, whether real or personal, which the unit
  117  owners are required to insure.
  118         3. To the extent the cost of repair or reconstruction for
  119  which the unit owner is responsible under this paragraph is
  120  reimbursed to the association by insurance proceeds, and the
  121  association has collected the cost of such repair or
  122  reconstruction from the unit owner, the association shall
  123  reimburse the unit owner without the waiver of any rights of
  124  subrogation.
  125         4. The association is not obligated to pay for
  126  reconstruction or repairs of property losses as a common expense
  127  if the property losses were known or should have been known to a
  128  unit owner and were not reported to the association until after
  129  the insurance claim of the association for that property was
  130  settled or resolved with finality, or denied because it was
  131  untimely filed.
  132         (12) OFFICIAL RECORDS.—
  133         (a) From the inception of the association, the association
  134  shall maintain each of the following items, if applicable, which
  135  constitutes the official records of the association:
  136         1. A copy of the plans, permits, warranties, and other
  137  items provided by the developer pursuant to s. 718.301(4).
  138         2. A photocopy of the recorded declaration of condominium
  139  of each condominium operated by the association and each
  140  amendment to each declaration.
  141         3. A photocopy of the recorded bylaws of the association
  142  and each amendment to the bylaws.
  143         4. A certified copy of the articles of incorporation of the
  144  association, or other documents creating the association, and
  145  each amendment thereto.
  146         5. A copy of the current rules of the association.
  147         6. A book or books that contain the minutes of all meetings
  148  of the association, the board of administration, and the unit
  149  owners, which minutes must be retained for at least 7 years.
  150         7. A current roster of all unit owners and their mailing
  151  addresses, unit identifications, voting certifications, and, if
  152  known, telephone numbers. The association shall also maintain
  153  the electronic mailing addresses and facsimile numbers of unit
  154  owners consenting to receive notice by electronic transmission.
  155  The electronic mailing addresses and facsimile numbers are not
  156  accessible to unit owners if consent to receive notice by
  157  electronic transmission is not provided in accordance with
  158  subparagraph (c)5. However, the association is not liable for an
  159  inadvertent disclosure of the electronic mail address or
  160  facsimile number for receiving electronic transmission of
  161  notices.
  162         8. All current insurance policies of the association and
  163  condominiums operated by the association.
  164         9. A current copy of any management agreement, lease, or
  165  other contract to which the association is a party or under
  166  which the association or the unit owners have an obligation or
  167  responsibility.
  168         10. Bills of sale or transfer for all property owned by the
  169  association.
  170         11. Accounting records for the association and separate
  171  accounting records for each condominium that the association
  172  operates. All accounting records must be maintained for at least
  173  7 years. Any person who knowingly or intentionally defaces or
  174  destroys such records, or who knowingly or intentionally fails
  175  to create or maintain such records, with the intent of causing
  176  harm to the association or one or more of its members, is
  177  personally subject to a civil penalty pursuant to s.
  178  718.501(1)(d). The accounting records must include, but are not
  179  limited to:
  180         a. Accurate, itemized, and detailed records of all receipts
  181  and expenditures.
  182         b. A current account and a monthly, bimonthly, or quarterly
  183  statement of the account for each unit designating the name of
  184  the unit owner, the due date and amount of each assessment, the
  185  amount paid on the account, and the balance due.
  186         c. All audits, reviews, accounting statements, and
  187  financial reports of the association or condominium.
  188         d. All contracts for work to be performed. Bids for work to
  189  be performed are also considered official records and must be
  190  maintained by the association.
  191         12. Ballots, sign-in sheets, voting proxies, and all other
  192  papers relating to voting by unit owners, which must be
  193  maintained for 1 year from the date of the election, vote, or
  194  meeting to which the document relates, notwithstanding paragraph
  195  (b).
  196         13. All rental records if the association is acting as
  197  agent for the rental of condominium units.
  198         14. A copy of the current question and answer sheet as
  199  described in s. 718.504.
  200         15. All other written records of the association not
  201  specifically included in the foregoing which are related to the
  202  operation of the association.
  203         16. A copy of the inspection report as described in s.
  204  718.301(4)(p).
  205         Section 3. Paragraph (f) of subsection (2) of section
  206  718.112, Florida Statutes, is amended to read:
  207         718.112 Bylaws.—
  208         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  209  following and, if they do not do so, shall be deemed to include
  210  the following:
  211         (f) Annual budget.—
  212         1. The proposed annual budget of estimated revenues and
  213  expenses must be detailed and must show the amounts budgeted by
  214  accounts and expense classifications, including, at a minimum,
  215  any if applicable, but not limited to, those expenses listed in
  216  s. 718.504(21). A multicondominium association shall adopt a
  217  separate budget of common expenses for each condominium the
  218  association operates and shall adopt a separate budget of common
  219  expenses for the association. In addition, if the association
  220  maintains limited common elements with the cost to be shared
  221  only by those entitled to use the limited common elements as
  222  provided for in s. 718.113(1), the budget or a schedule attached
  223  to it must show the amount budgeted for this maintenance. If,
  224  after turnover of control of the association to the unit owners,
  225  any of the expenses listed in s. 718.504(21) are not applicable,
  226  they need not be listed.
  227         2.a. In addition to annual operating expenses, the budget
  228  must include reserve accounts for capital expenditures and
  229  deferred maintenance. These accounts must include, but are not
  230  limited to, roof replacement, building painting, and pavement
  231  resurfacing, regardless of the amount of deferred maintenance
  232  expense or replacement cost, and for any other item that has a
  233  deferred maintenance expense or replacement cost that exceeds
  234  $10,000. The amount to be reserved must be computed using a
  235  formula based upon estimated remaining useful life and estimated
  236  replacement cost or deferred maintenance expense of each reserve
  237  item. The association may adjust replacement reserve assessments
  238  annually to take into account any changes in estimates or
  239  extension of the useful life of a reserve item caused by
  240  deferred maintenance. This subsection does not apply to an
  241  adopted budget in which the members of an association have
  242  determined, by a majority vote at a duly called meeting of the
  243  association, to provide no reserves or less reserves than
  244  required by this subsection.
  245         b. Before However, prior to turnover of control of an
  246  association by a developer to unit owners other than a developer
  247  pursuant to s. 718.301, the developer may vote the voting
  248  interests allocated to its units to waive the reserves or reduce
  249  the funding of reserves through the period expiring at the end
  250  of the second fiscal year after the fiscal year in which the
  251  certificate of a surveyor and mapper is recorded pursuant to s.
  252  718.104(4)(e) or an instrument that transfers title to a unit in
  253  the condominium which is not accompanied by a recorded
  254  assignment of developer rights in favor of the grantee of such
  255  unit is recorded, whichever occurs first, after which time
  256  reserves may be waived or reduced only upon the vote of a
  257  majority of all nondeveloper voting interests voting in person
  258  or by limited proxy at a duly called meeting of the association.
  259  If a meeting of the unit owners has been called to determine
  260  whether to waive or reduce the funding of reserves, and no such
  261  result is achieved or a quorum is not attained, the reserves
  262  included in the budget shall go into effect. After the turnover,
  263  the developer may vote its voting interest to waive or reduce
  264  the funding of reserves.
  265         3. Reserve funds and any interest accruing thereon shall
  266  remain in the reserve account or accounts, and may be used only
  267  for authorized reserve expenditures unless their use for other
  268  purposes is approved in advance by a majority vote at a duly
  269  called meeting of the association. Before Prior to turnover of
  270  control of an association by a developer to unit owners other
  271  than the developer pursuant to s. 718.301, the developer
  272  controlled association may shall not vote to use reserves for
  273  purposes other than those that for which they were intended
  274  without the approval of a majority of all nondeveloper voting
  275  interests, voting in person or by limited proxy at a duly called
  276  meeting of the association.
  277         4. The only voting interests that are eligible to vote on
  278  questions that involve waiving or reducing the funding of
  279  reserves, or using existing reserve funds for purposes other
  280  than purposes for which the reserves were intended, are the
  281  voting interests of the units subject to assessment to fund the
  282  reserves in question. Proxy questions relating to waiving or
  283  reducing the funding of reserves or using existing reserve funds
  284  for purposes other than purposes for which the reserves were
  285  intended must shall contain the following statement in
  286  capitalized, bold letters in a font size larger than any other
  287  used on the face of the proxy ballot: WAIVING OF RESERVES, IN
  288  WHOLE OR IN PART, OR ALLOWING ALTERNATIVE USES OF EXISTING
  289  RESERVES MAY RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF
  290  UNANTICIPATED SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
  291         Section 4. Subsection (3) and paragraph (b) of subsection
  292  (5) of section 718.116, Florida Statutes, are amended to read:
  293         718.116 Assessments; liability; lien and priority;
  294  interest; collection.—
  295         (3) Assessments and installments on assessments which are
  296  not paid when due bear interest at the rate provided in the
  297  declaration, from the due date until paid. The rate may not
  298  exceed the rate allowed by law, and, if no rate is provided in
  299  the declaration, interest accrues at the rate of 18 percent per
  300  year. If provided by the declaration or bylaws, the association
  301  may, in addition to such interest, charge an administrative late
  302  fee of up to the greater of $25 or 5 percent of each delinquent
  303  installment for which the payment is late. Any payment received
  304  by an association must be applied first to any interest accrued
  305  by the association, then to any administrative late fee, then to
  306  any costs and reasonable attorney attorney’s fees incurred in
  307  collection, and then to the delinquent assessment. The foregoing
  308  is applicable notwithstanding s. 673.3111, any purported accord
  309  and satisfaction, or any restrictive endorsement, designation,
  310  or instruction placed on or accompanying a payment. The
  311  preceding sentence is intended to clarify existing law. A late
  312  fee is not subject to chapter 687 or s. 718.303(4).
  313         (5)
  314         (b) To be valid, a claim of lien must state the description
  315  of the condominium parcel, the name of the record owner, the
  316  name and address of the association, the amount due, and the due
  317  dates. It must be executed and acknowledged by an officer or
  318  authorized agent of the association. The lien is not effective 1
  319  year after the claim of lien was recorded unless, within that
  320  time, an action to enforce the lien is commenced. The 1-year
  321  period is automatically extended for any length of time during
  322  which the association is prevented from filing a foreclosure
  323  action by an automatic stay resulting from a bankruptcy petition
  324  filed by the parcel owner or any other person claiming an
  325  interest in the parcel. The claim of lien secures all unpaid
  326  assessments that are due and that may accrue after the claim of
  327  lien is recorded and through the entry of a final judgment, as
  328  well as interest, administrative late fees, and all reasonable
  329  costs and attorney attorney’s fees incurred by the association
  330  incident to the collection process. Upon payment in full, the
  331  person making the payment is entitled to a satisfaction of the
  332  lien.
  333         Section 5. Section 718.128, Florida Statutes, is created to
  334  read:
  335         718.128 Electronic voting.—The association may conduct
  336  elections and other unit owner votes through an Internet-based
  337  online voting system if a unit owner consents, in writing, to
  338  online voting and if the following requirements are met:
  339         (1) The association provides each unit owner with:
  340         (a) A method to authenticate the unit owner’s identity to
  341  the online voting system.
  342         (b) For elections of the board, a method to transmit an
  343  electronic ballot to the online voting system that ensures the
  344  secrecy and integrity of each ballot.
  345         (c) A method to confirm, at least 14 days before the voting
  346  deadline, that the unit owner’s electronic device can
  347  successfully communicate with the online voting system.
  348         (2) The association uses an online voting system that can:
  349         (a) Authenticate the unit owner’s identity.
  350         (b) Authenticate the validity of each electronic vote to
  351  ensure that the vote is not altered in transit.
  352         (c) Transmit a receipt from the online voting system to
  353  each unit owner who casts an electronic vote.
  354         (d) Permanently separate any authentication or identifying
  355  information from the electronic election ballot, rendering it
  356  impossible to tie an election ballot to a specific unit owner.
  357  This paragraph only applies to elections of the board of
  358  administration.
  359         (e) Store and keep electronic votes accessible to election
  360  officials for recount, inspection, and review purposes.
  361         (3) A unit owner voting electronically pursuant to this
  362  section shall be counted as being in attendance at the meeting
  363  for purposes of determining a quorum. A substantive vote of the
  364  unit owners may not be taken on any issue other than the issues
  365  specifically identified in the electronic vote when a quorum is
  366  established based on unit owners voting electronically pursuant
  367  to this section.
  368         (4) This section applies to an association that provides
  369  for and authorizes an online voting system pursuant to this
  370  section by a board resolution. The board resolution must provide
  371  that unit owners receive notice of the opportunity to vote
  372  through an online voting system, must establish reasonable
  373  procedures and deadlines for unit owners to consent, in writing,
  374  to online voting, and must establish reasonable procedures and
  375  deadlines for unit owners to opt out of online voting after
  376  giving consent. Written notice of a meeting at which the
  377  resolution will be considered must be mailed, delivered, or
  378  electronically transmitted to the unit owners and posted
  379  conspicuously on the condominium property or association
  380  property at least 14 days before the meeting. Evidence of
  381  compliance with the 14-day notice requirement must be made by an
  382  affidavit executed by the person providing the notice and filed
  383  with the official records of the association.
  384         (5) A unit owner’s consent to online voting is valid until
  385  the unit owner opts out of online voting according to the
  386  procedures established by the board of administration pursuant
  387  to subsection (4).
  388         (6) Except for timeshare condominium associations, this
  389  section may apply to any matter that requires a vote of the unit
  390  owners.
  391         Section 6. Subsections (3), (4), and (5) of section
  392  718.303, Florida Statutes, are amended, and subsection (7) is
  393  added to that section, to read:
  394         718.303 Obligations of owners and occupants; remedies.—
  395         (3) The association may levy reasonable fines for the
  396  failure of the owner of the unit or its occupant, licensee, or
  397  invitee to comply with any provision of the declaration, the
  398  association bylaws, or reasonable rules of the association. A
  399  fine may not become a lien against a unit. A fine may be levied
  400  by the board on the basis of each day of a continuing violation,
  401  with a single notice and opportunity for hearing before a
  402  committee as provided in paragraph (b). However, the fine may
  403  not exceed $100 per violation, or $1,000 in the aggregate.
  404         (a) An association may suspend, for a reasonable period of
  405  time, the right of a unit owner, or a unit owner’s tenant,
  406  guest, or invitee, to use the common elements, common
  407  facilities, or any other association property for failure to
  408  comply with any provision of the declaration, the association
  409  bylaws, or reasonable rules of the association. This paragraph
  410  does not apply to limited common elements intended to be used
  411  only by that unit, common elements needed to access the unit,
  412  utility services provided to the unit, parking spaces, or
  413  elevators.
  414         (b) A fine or suspension levied by the board of
  415  administration may not be imposed unless the board association
  416  first provides at least 14 days’ written notice and an
  417  opportunity for a hearing to the unit owner and, if applicable,
  418  its occupant, licensee, or invitee. The hearing must be held
  419  before a committee of other unit owners who are neither board
  420  members nor persons residing in a board member’s household. The
  421  role of the committee is limited to determining whether to
  422  confirm or reject the fine or suspension levied by the board. If
  423  the committee does not agree, the fine or suspension may not be
  424  imposed.
  425         (4) If a unit owner is more than 90 days delinquent in
  426  paying a fee, fine, or other monetary obligation due to the
  427  association, the association may suspend the right of the unit
  428  owner or the unit’s occupant, licensee, or invitee to use common
  429  elements, common facilities, or any other association property
  430  until the fee, fine, or other monetary obligation is paid in
  431  full. This subsection does not apply to limited common elements
  432  intended to be used only by that unit, common elements needed to
  433  access the unit, utility services provided to the unit, parking
  434  spaces, or elevators. The notice and hearing requirements under
  435  subsection (3) do not apply to suspensions imposed under this
  436  subsection.
  437         (5) An association may suspend the voting rights of a unit
  438  or member due to nonpayment of any fee, fine, or other monetary
  439  obligation due to the association which is more than 90 days
  440  delinquent. A voting interest or consent right allocated to a
  441  unit or member which has been suspended by the association shall
  442  be subtracted from may not be counted towards the total number
  443  of voting interests in the association, which shall be reduced
  444  by the number of suspended voting interests when calculating the
  445  total percentage or number of all voting interests available to
  446  take or approve any action, and the suspended voting interests
  447  may not be considered for any purpose, including, but not
  448  limited to, the percentage or number of voting interests
  449  necessary to constitute a quorum, the percentage or number of
  450  voting interests required to conduct an election, or the
  451  percentage or number of voting interests required to approve an
  452  action under this chapter or pursuant to the declaration,
  453  articles of incorporation, or bylaws. The suspension ends upon
  454  full payment of all obligations currently due or overdue the
  455  association. The notice and hearing requirements under
  456  subsection (3) do not apply to a suspension imposed under this
  457  subsection.
  458         (7) The suspensions permitted by paragraph (3)(a) and
  459  subsections (4) and (5) apply to a member and, when appropriate,
  460  the member’s tenants, guests, or invitees, even if the
  461  delinquency or failure that resulted in the suspension arose
  462  from fewer than all of the multiple units owned by a member.
  463         Section 7. Section 718.707, Florida Statutes, is amended to
  464  read:
  465         718.707 Time limitation for classification as bulk assignee
  466  or bulk buyer.—A person acquiring condominium parcels may not be
  467  classified as a bulk assignee or bulk buyer unless the
  468  condominium parcels were acquired on or after July 1, 2010, but
  469  before July 1, 2018 2016. The date of such acquisition shall be
  470  determined by the date of recording a deed or other instrument
  471  of conveyance for such parcels in the public records of the
  472  county in which the condominium is located, or by the date of
  473  issuing a certificate of title in a foreclosure proceeding with
  474  respect to such condominium parcels.
  475         Section 8. Paragraph (a) of subsection (2) of section
  476  719.104, Florida Statutes, is amended to read:
  477         719.104 Cooperatives; access to units; records; financial
  478  reports; assessments; purchase of leases.—
  479         (2) OFFICIAL RECORDS.—
  480         (a) From the inception of the association, the association
  481  shall maintain a copy of each of the following, where
  482  applicable, which shall constitute the official records of the
  483  association:
  484         1. The plans, permits, warranties, and other items provided
  485  by the developer pursuant to s. 719.301(4).
  486         2. A photocopy of the cooperative documents.
  487         3. A copy of the current rules of the association.
  488         4. A book or books containing the minutes of all meetings
  489  of the association, of the board of directors, and of the unit
  490  owners, which minutes shall be retained for a period of not less
  491  than 7 years.
  492         5. A current roster of all unit owners and their mailing
  493  addresses, unit identifications, voting certifications, and, if
  494  known, telephone numbers. The association shall also maintain
  495  the electronic mailing addresses and the numbers designated by
  496  unit owners for receiving notice sent by electronic transmission
  497  of those unit owners consenting to receive notice by electronic
  498  transmission. The electronic mailing addresses and numbers
  499  provided by unit owners to receive notice by electronic
  500  transmission shall be removed from association records when
  501  consent to receive notice by electronic transmission is revoked.
  502  However, the association is not liable for an erroneous
  503  disclosure of the electronic mail address or the number for
  504  receiving electronic transmission of notices.
  505         6. All current insurance policies of the association.
  506         7. A current copy of any management agreement, lease, or
  507  other contract to which the association is a party or under
  508  which the association or the unit owners have an obligation or
  509  responsibility.
  510         8. Bills of sale or transfer for all property owned by the
  511  association.
  512         9. Accounting records for the association and separate
  513  accounting records for each unit it operates, according to good
  514  accounting practices. All accounting records shall be maintained
  515  for a period of not less than 7 years. The accounting records
  516  shall include, but not be limited to:
  517         a. Accurate, itemized, and detailed records of all receipts
  518  and expenditures.
  519         b. A current account and a monthly, bimonthly, or quarterly
  520  statement of the account for each unit designating the name of
  521  the unit owner, the due date and amount of each assessment, the
  522  amount paid upon the account, and the balance due.
  523         c. All audits, reviews, accounting statements, and
  524  financial reports of the association.
  525         d. All contracts for work to be performed. Bids for work to
  526  be performed shall also be considered official records and shall
  527  be maintained for a period of 1 year.
  528         10. Ballots, sign-in sheets, voting proxies, and all other
  529  papers relating to voting by unit owners, which shall be
  530  maintained for a period of 1 year after the date of the
  531  election, vote, or meeting to which the document relates.
  532         11. All rental records where the association is acting as
  533  agent for the rental of units.
  534         12. A copy of the current question and answer sheet as
  535  described in s. 719.504.
  536         13. All other written records of the association not
  537  specifically included in the foregoing which are related to the
  538  operation of the association.
  539         Section 9. Subsections (3) and (4) of section 719.108,
  540  Florida Statutes, are amended to read:
  541         719.108 Rents and assessments; liability; lien and
  542  priority; interest; collection; cooperative ownership.—
  543         (3) Rents and assessments, and installments on them, not
  544  paid when due bear interest at the rate provided in the
  545  cooperative documents from the date due until paid. This rate
  546  may not exceed the rate allowed by law and, if a rate is not
  547  provided in the cooperative documents, accrues at 18 percent per
  548  annum. If the cooperative documents or bylaws so provide, the
  549  association may charge an administrative late fee in addition to
  550  such interest, not to exceed the greater of $25 or 5 percent of
  551  each installment of the assessment for each delinquent
  552  installment that the payment is late. Any payment received by an
  553  association must be applied first to any interest accrued by the
  554  association, then to any administrative late fee, then to any
  555  costs and reasonable attorney fees incurred in collection, and
  556  then to the delinquent assessment. The foregoing applies
  557  notwithstanding s. 673.3111, any purported accord and
  558  satisfaction, or any restrictive endorsement, designation, or
  559  instruction placed on or accompanying a payment. The preceding
  560  sentence is intended to clarify existing law. A late fee is not
  561  subject to chapter 687 or s. 719.303(4).
  562         (4) The association has a lien on each cooperative parcel
  563  for any unpaid rents and assessments, plus interest, and any
  564  authorized administrative late fees. If authorized by the
  565  cooperative documents, the lien also secures reasonable attorney
  566  fees incurred by the association incident to the collection of
  567  the rents and assessments or enforcement of such lien. The lien
  568  is effective from and after recording a claim of lien in the
  569  public records in the county in which the cooperative parcel is
  570  located which states the description of the cooperative parcel,
  571  the name of the unit owner, the amount due, and the due dates.
  572  Except as otherwise provided in this chapter, a lien may not be
  573  filed by the association against a cooperative parcel until 30
  574  days after the date on which a notice of intent to file a lien
  575  has been delivered to the owner.
  576         (a) The notice must be sent to the unit owner at the
  577  address of the unit by first-class United States mail, and the
  578  notice must be in substantially the following form:
  579  
  580                          NOTICE OF INTENT                         
  581                      TO RECORD A CLAIM OF LIEN                    
  582  
  583         RE: Unit ...(unit number)... of ...(name of
  584         cooperative)...
  585  
  586         The following amounts are currently due on your
  587         account to ...(name of association)..., and must be
  588         paid within 30 days after your receipt of this letter.
  589         This letter shall serve as the association’s notice of
  590         intent to record a Claim of Lien against your property
  591         no sooner than 30 days after your receipt of this
  592         letter, unless you pay in full the amounts set forth
  593         below:
  594  
  595         Maintenance due ...(dates)...                      $.....
  596         Late fee, if applicable                            $.....
  597         Interest through ...(dates)...*                    $.....
  598         Certified mail charges                             $.....
  599         Other costs                                        $.....
  600         TOTAL OUTSTANDING                                  $.....
  601  
  602         *Interest accrues at the rate of .... percent per
  603         annum.
  604         1. If the most recent address of the unit owner on the
  605  records of the association is the address of the unit, the
  606  notice must be sent by certified mail, return receipt requested,
  607  to the unit owner at the address of the unit.
  608         2. If the most recent address of the unit owner on the
  609  records of the association is in the United States, but is not
  610  the address of the unit, the notice must be sent by certified
  611  mail, return receipt requested, to the unit owner at his or her
  612  most recent address.
  613         3. If the most recent address of the unit owner on the
  614  records of the association is not in the United States, the
  615  notice must be sent by first-class United States mail to the
  616  unit owner at his or her most recent address.
  617         (b) A notice that is sent pursuant to this subsection is
  618  deemed delivered upon mailing. A claim of lien must be executed
  619  and acknowledged by an officer or authorized agent of the
  620  association. The lien is not effective 1 year after the claim of
  621  lien was recorded unless, within that time, an action to enforce
  622  the lien is commenced. The 1-year period is automatically
  623  extended for any length of time during which the association is
  624  prevented from filing a foreclosure action by an automatic stay
  625  resulting from a bankruptcy petition filed by the parcel owner
  626  or any other person claiming an interest in the parcel. The
  627  claim of lien secures all unpaid rents and assessments that are
  628  due and that may accrue after the claim of lien is recorded and
  629  through the entry of a final judgment, as well as interest and
  630  all reasonable costs and attorney fees incurred by the
  631  association incident to the collection process. Upon payment in
  632  full, the person making the payment is entitled to a
  633  satisfaction of the lien.
  634         (c) By recording a notice in substantially the following
  635  form, a unit owner or the unit owner’s agent or attorney may
  636  require the association to enforce a recorded claim of lien
  637  against his or her cooperative parcel:
  638  
  639                      NOTICE OF CONTEST OF LIEN                    
  640  
  641         TO: ...(Name and address of association)...:
  642  
  643         You are notified that the undersigned contests the
  644         claim of lien filed by you on ...., ...(year)..., and
  645         recorded in Official Records Book .... at Page ....,
  646         of the public records of .... County, Florida, and
  647         that the time within which you may file suit to
  648         enforce your lien is limited to 90 days from the date
  649         of service of this notice. Executed this .... day of
  650         ...., ...(year)....
  651         Signed: ...(Owner or Attorney)...
  652  
  653  After notice of contest of lien has been recorded, the clerk of
  654  the circuit court shall mail a copy of the recorded notice to
  655  the association by certified mail, return receipt requested, at
  656  the address shown in the claim of lien or most recent amendment
  657  to it and shall certify to the service on the face of the
  658  notice. Service is complete upon mailing. After service, the
  659  association has 90 days in which to file an action to enforce
  660  the lien. If the action is not filed within the 90-day period,
  661  the lien is void. However, the 90-day period shall be extended
  662  for any length of time during which the association is prevented
  663  from filing its action because of an automatic stay resulting
  664  from the filing of a bankruptcy petition by the unit owner or by
  665  any other person claiming an interest in the parcel.
  666         (d) A release of lien must be in substantially the
  667  following form:
  668  
  669                           RELEASE OF LIEN                         
  670  
  671  The undersigned lienor, in consideration of the final payment in
  672  the amount of $...., hereby waives and releases its lien and
  673  right to claim a lien for unpaid assessments through ....,
  674  ...(year)..., recorded in the Official Records Book .... at Page
  675  ...., of the public records of .... County, Florida, for the
  676  following described real property:
  677  
  678         THAT COOPERATIVE PARCEL WHICH INCLUDES UNIT NO. ....
  679         OF ...(NAME OF COOPERATIVE)..., A COOPERATIVE AS SET
  680         FORTH IN THE COOPERATIVE DOCUMENTS AND THE EXHIBITS
  681         ANNEXED THERETO AND FORMING A PART THEREOF, RECORDED
  682         IN OFFICIAL RECORDS BOOK ...., PAGE ...., OF THE
  683         PUBLIC RECORDS OF .... COUNTY, FLORIDA.
  684  
  685  ...(Signature of Authorized Agent)...           ...(Signature of
  686  Witness)...
  687  ...(Print Name)...                            ...(Print Name)...
  688  
  689  ...(Signature of Witness)...
  690  ...(Print Name)...
  691  
  692  Sworn to (or affirmed) and subscribed before me this .... day of
  693  ...., ...(year)..., by ...(name of person making statement)....
  694  ...(Signature of Notary Public)...
  695  ...(Print, type, or stamp commissioned name of Notary Public)...
  696  Personally Known .... OR Produced .... as identification.
  697         Section 10. Section 719.129, Florida Statutes, is created
  698  to read:
  699         719.129 Electronic voting.—The association may conduct
  700  elections and other unit owner votes through an Internet-based
  701  online voting system if a unit owner consents, in writing, to
  702  online voting and if the following requirements are met:
  703         (1) The association provides each unit owner with:
  704         (a) A method to authenticate the unit owner’s identity to
  705  the online voting system.
  706         (b) For elections of the board, a method to transmit an
  707  electronic ballot to the online voting system that ensures the
  708  secrecy and integrity of each ballot.
  709         (c) A method to confirm, at least 14 days before the voting
  710  deadline, that the unit owner’s electronic device can
  711  successfully communicate with the online voting system.
  712         (2) The association uses an online voting system that can:
  713         (a) Authenticate the unit owner’s identity.
  714         (b) Authenticate the validity of each electronic vote to
  715  ensure that the vote is not altered in transit.
  716         (c) Transmit a receipt from the online voting system to
  717  each unit owner who casts an electronic vote.
  718         (d) Permanently separate any authentication or identifying
  719  information from the electronic election ballot, rendering it
  720  impossible to tie an election ballot to a specific unit owner.
  721  This paragraph only applies to elections of the board of
  722  administration.
  723         (e) Store and keep electronic votes accessible to election
  724  officials for recount, inspection, and review purposes.
  725         (3) A unit owner voting electronically pursuant to this
  726  section shall be counted as being in attendance at the meeting
  727  for purposes of determining a quorum. A substantive vote of the
  728  unit owners may not be taken on any issue other than the issues
  729  specifically identified in the electronic vote when a quorum is
  730  established based on unit owners voting electronically pursuant
  731  to this section.
  732         (4) This section applies to an association that provides
  733  for and authorizes an online voting system pursuant to this
  734  section by a board resolution. The board resolution must provide
  735  that unit owners receive notice of the opportunity to vote
  736  through an online voting system, must establish reasonable
  737  procedures and deadlines for unit owners to consent, in writing,
  738  to online voting, and must establish reasonable procedures and
  739  deadlines for unit owners to opt out of online voting after
  740  giving consent. Written notice of a meeting at which the
  741  resolution will be considered must be mailed, delivered, or
  742  electronically transmitted to the unit owners and posted
  743  conspicuously on the condominium property or association
  744  property at least 14 days before the meeting. Evidence of
  745  compliance with the 14-day notice requirement must be made by an
  746  affidavit executed by the person providing the notice and filed
  747  with the official records of the association.
  748         (5) A unit owner’s consent to online voting is valid until
  749  the unit owner opts out of online voting pursuant to the
  750  procedures established by the board of administration pursuant
  751  to subsection (4).
  752         (6) Except for timeshare cooperative associations, this
  753  section may apply to any matter that requires a vote of the unit
  754  owners.
  755         Section 11. Subsection (3) of section 719.303, Florida
  756  Statutes, is amended to read:
  757         719.303 Obligations of owners.—
  758         (3) The association may levy reasonable fines for failure
  759  of the unit owner or the unit’s occupant, licensee, or invitee
  760  to comply with any provision of the cooperative documents or
  761  reasonable rules of the association. A fine may not become a
  762  lien against a unit. A fine may be levied by the board on the
  763  basis of each day of a continuing violation, with a single
  764  notice and opportunity for hearing before a committee as
  765  provided in paragraph (b). However, the fine may not exceed $100
  766  per violation, or $1,000 in the aggregate.
  767         (a) An association may suspend, for a reasonable period of
  768  time, the right of a unit owner, or a unit owner’s tenant,
  769  guest, or invitee, to use the common elements, common
  770  facilities, or any other association property for failure to
  771  comply with any provision of the cooperative documents or
  772  reasonable rules of the association. This paragraph does not
  773  apply to limited common elements intended to be used only by
  774  that unit, common elements needed to access the unit, utility
  775  services provided to the unit, parking spaces, or elevators.
  776         (b) A fine or suspension levied by the board of
  777  administration may not be imposed unless the board first
  778  provides at least 14 days’ written except after giving
  779  reasonable notice and an opportunity for a hearing to the unit
  780  owner and, if applicable, its occupant, the unit’s licensee, or
  781  invitee. The hearing must be held before a committee of other
  782  unit owners who are neither board members nor persons residing
  783  in a board member’s household. The role of the committee is
  784  limited to determining whether to confirm or reject the fine or
  785  suspension levied by the board. If the committee does not agree
  786  with the fine or suspension, it may not be imposed.
  787         Section 12. Subsection (8) of section 720.301, Florida
  788  Statutes, is amended to read:
  789         720.301 Definitions.—As used in this chapter, the term:
  790         (8) “Governing documents” means:
  791         (a) The recorded declaration of covenants for a community,
  792  and all duly adopted and recorded amendments, supplements, and
  793  recorded exhibits thereto; and
  794         (b) The articles of incorporation and bylaws of the
  795  homeowners’ association, and any duly adopted amendments
  796  thereto; and
  797         (c) Rules and regulations adopted under the authority of
  798  the recorded declaration, articles of incorporation, or bylaws
  799  and duly adopted amendments thereto.
  800         Section 13. Section 720.3015, Florida Statutes, is created
  801  to read:
  802         720.3015 Short title.—This chapter may be cited as the
  803  “Homeowners’ Association Act.”
  804         Section 14. Section 720.305, Florida Statutes, is amended
  805  to read:
  806         720.305 Obligations of members; remedies at law or in
  807  equity; levy of fines and suspension of use rights.—
  808         (1) Each member and the member’s tenants, guests, and
  809  invitees, and each association, are governed by, and must comply
  810  with, this chapter, the governing documents of the community,
  811  and the rules of the association. Actions at law or in equity,
  812  or both, to redress alleged failure or refusal to comply with
  813  these provisions may be brought by the association or by any
  814  member against:
  815         (a) The association;
  816         (b) A member;
  817         (c) Any director or officer of an association who willfully
  818  and knowingly fails to comply with these provisions; and
  819         (d) Any tenants, guests, or invitees occupying a parcel or
  820  using the common areas.
  821  
  822  The prevailing party in any such litigation is entitled to
  823  recover reasonable attorney attorney’s fees and costs. A member
  824  prevailing in an action between the association and the member
  825  under this section, in addition to recovering his or her
  826  reasonable attorney attorney’s fees, may recover additional
  827  amounts as determined by the court to be necessary to reimburse
  828  the member for his or her share of assessments levied by the
  829  association to fund its expenses of the litigation. This relief
  830  does not exclude other remedies provided by law. This section
  831  does not deprive any person of any other available right or
  832  remedy.
  833         (2) The association may levy reasonable fines. A fine may
  834  not exceed of up to $100 per violation against any member or any
  835  member’s tenant, guest, or invitee for the failure of the owner
  836  of the parcel or its occupant, licensee, or invitee to comply
  837  with any provision of the declaration, the association bylaws,
  838  or reasonable rules of the association unless otherwise provided
  839  in the governing documents. A fine may be levied by the board
  840  for each day of a continuing violation, with a single notice and
  841  opportunity for hearing, except that the fine may not exceed
  842  $1,000 in the aggregate unless otherwise provided in the
  843  governing documents. A fine of less than $1,000 may not become a
  844  lien against a parcel. In any action to recover a fine, the
  845  prevailing party is entitled to reasonable attorney fees and
  846  costs from the nonprevailing party as determined by the court.
  847         (a) An association may suspend, for a reasonable period of
  848  time, the right of a member, or a member’s tenant, guest, or
  849  invitee, to use common areas and facilities for the failure of
  850  the owner of the parcel or its occupant, licensee, or invitee to
  851  comply with any provision of the declaration, the association
  852  bylaws, or reasonable rules of the association. This paragraph
  853  does not apply to that portion of common areas used to provide
  854  access or utility services to the parcel. A suspension may not
  855  prohibit impair the right of an owner or tenant of a parcel from
  856  having to have vehicular and pedestrian ingress to and egress
  857  from the parcel, including, but not limited to, the right to
  858  park.
  859         (b) A fine or suspension may not be imposed by the board of
  860  administration without at least 14 days’ notice to the person
  861  sought to be fined or suspended and an opportunity for a hearing
  862  before a committee of at least three members appointed by the
  863  board who are not officers, directors, or employees of the
  864  association, or the spouse, parent, child, brother, or sister of
  865  an officer, director, or employee. If the committee, by majority
  866  vote, does not approve a proposed fine or suspension, it may not
  867  be imposed. The role of the committee is limited to determining
  868  whether to confirm or reject the fine or suspension levied by
  869  the board. If the board of directors association imposes a fine
  870  or suspension, the association must provide written notice of
  871  such fine or suspension by mail or hand delivery to the parcel
  872  owner and, if applicable, to any tenant, licensee, or invitee of
  873  the parcel owner.
  874         (3) If a member is more than 90 days delinquent in paying
  875  any fee, fine, or other a monetary obligation due to the
  876  association, the association may suspend the rights of the
  877  member, or the member’s tenant, guest, or invitee, to use common
  878  areas and facilities until the fee, fine, or other monetary
  879  obligation is paid in full. This subsection does not apply to
  880  that portion of common areas used to provide access or utility
  881  services to the parcel. A suspension may does not prohibit
  882  impair the right of an owner or tenant of a parcel from having
  883  to have vehicular and pedestrian ingress to and egress from the
  884  parcel, including, but not limited to, the right to park. The
  885  notice and hearing requirements under subsection (2) do not
  886  apply to a suspension imposed under this subsection.
  887         (4) An association may suspend the voting rights of a
  888  parcel or member for the nonpayment of any fee, fine, or other
  889  monetary obligation due to the association that is more than 90
  890  days delinquent. A voting interest or consent right allocated to
  891  a parcel or member which has been suspended by the association
  892  shall be subtracted from may not be counted towards the total
  893  number of voting interests in the association, which shall be
  894  reduced by the number of suspended voting interests when
  895  calculating the total percentage or number of all voting
  896  interests available to take or approve any action, and the
  897  suspended voting interests may not be considered for any
  898  purpose, including, but not limited to, the percentage or number
  899  of voting interests necessary to constitute a quorum, the
  900  percentage or number of voting interests required to conduct an
  901  election, or the percentage or number of voting interests
  902  required to approve an action under this chapter or pursuant to
  903  the governing documents. The notice and hearing requirements
  904  under subsection (2) do not apply to a suspension imposed under
  905  this subsection. The suspension ends upon full payment of all
  906  obligations currently due or overdue to the association.
  907         (5) All suspensions imposed pursuant to subsection (3) or
  908  subsection (4) must be approved at a properly noticed board
  909  meeting. Upon approval, the association must notify the parcel
  910  owner and, if applicable, the parcel’s occupant, licensee, or
  911  invitee by mail or hand delivery.
  912         (6) The suspensions permitted by paragraph (2)(a) and
  913  subsections (3) and (4) apply to a member and, when appropriate,
  914  the member’s tenants, guests, or invitees, even if the
  915  delinquency or failure that resulted in the suspension arose
  916  from less than all of the multiple parcels owned by a member.
  917         Section 15. Paragraph (b) of subsection (1) and subsection
  918  (9) of section 720.306, Florida Statutes, are amended to read:
  919         720.306 Meetings of members; voting and election
  920  procedures; amendments.—
  921         (1) QUORUM; AMENDMENTS.—
  922         (b) Unless otherwise provided in the governing documents or
  923  required by law, and other than those matters set forth in
  924  paragraph (c), any governing document of an association may be
  925  amended by the affirmative vote of two-thirds of the voting
  926  interests of the association. Within 30 days after recording an
  927  amendment to the governing documents, the association shall
  928  provide copies of the amendment to the members. However, if a
  929  copy of the proposed amendment is provided to the members before
  930  they vote on the amendment and the proposed amendment is not
  931  changed before the vote, the association, in lieu of providing a
  932  copy of the amendment, may provide notice to the members that
  933  the amendment was adopted, identifying the official book and
  934  page number or instrument number of the recorded amendment and
  935  that a copy of the amendment is available at no charge to the
  936  member upon written request to the association. The copies and
  937  notice described in this paragraph may be provided
  938  electronically to those owners who previously consented to
  939  receive notice electronically. The failure to timely provide
  940  notice of the recording of the amendment does not affect the
  941  validity or enforceability of the amendment.
  942         (9) ELECTIONS AND BOARD VACANCIES.—
  943         (a) Elections of directors must be conducted in accordance
  944  with the procedures set forth in the governing documents of the
  945  association. Except as provided in paragraph (b), all members of
  946  the association are eligible to serve on the board of directors,
  947  and a member may nominate himself or herself as a candidate for
  948  the board at a meeting where the election is to be held;
  949  provided, however, that if the election process allows
  950  candidates to be nominated in advance of the meeting, the
  951  association is not required to allow nominations at the meeting.
  952  An election is not required unless more candidates are nominated
  953  than vacancies exist. Except as otherwise provided in the
  954  governing documents, boards of directors must be elected by a
  955  plurality of the votes cast by eligible voters. Any challenge to
  956  the election process must be commenced within 60 days after the
  957  election results are announced.
  958         (b) A person who is delinquent in the payment of any fee,
  959  fine, or other monetary obligation to the association on the day
  960  that he or she could last nominate himself or herself or be
  961  nominated for the board may not seek election to the board, and
  962  his or her name shall not be listed on the ballot. A person
  963  serving as a board member who becomes more than 90 days
  964  delinquent in the payment of any fee, fine, or other monetary
  965  obligation to the association shall be deemed to have abandoned
  966  his or her seat on the board, creating a vacancy on the board to
  967  be filled according to law. For purposes of this paragraph, the
  968  term “any fee, fine, or other monetary obligation” means any
  969  delinquency to the association with respect to any parcel for
  970  more than 90 days is not eligible for board membership. A person
  971  who has been convicted of any felony in this state or in a
  972  United States District or Territorial Court, or has been
  973  convicted of any offense in another jurisdiction which would be
  974  considered a felony if committed in this state, may not seek
  975  election to the board and is not eligible for board membership
  976  unless such felon’s civil rights have been restored for at least
  977  5 years as of the date on which such person seeks election to
  978  the board. The validity of any action by the board is not
  979  affected if it is later determined that a person was ineligible
  980  to seek election to the board or that a member of the board is
  981  ineligible for board membership.
  982         (c) Any election dispute between a member and an
  983  association must be submitted to mandatory binding arbitration
  984  with the division. Such proceedings must be conducted in the
  985  manner provided by s. 718.1255 and the procedural rules adopted
  986  by the division. Unless otherwise provided in the bylaws, any
  987  vacancy occurring on the board before the expiration of a term
  988  may be filled by an affirmative vote of the majority of the
  989  remaining directors, even if the remaining directors constitute
  990  less than a quorum, or by the sole remaining director. In the
  991  alternative, a board may hold an election to fill the vacancy,
  992  in which case the election procedures must conform to the
  993  requirements of the governing documents. Unless otherwise
  994  provided in the bylaws, a board member appointed or elected
  995  under this section is appointed for the unexpired term of the
  996  seat being filled. Filling vacancies created by recall is
  997  governed by s. 720.303(10) and rules adopted by the division.
  998         Section 16. Section 720.317, Florida Statutes, is created
  999  to read:
 1000         720.317 Electronic voting.—The association may conduct
 1001  elections and other membership votes through an Internet-based
 1002  online voting system if a member consents, in writing, to online
 1003  voting and if the following requirements are met:
 1004         (1) The association provides each member with:
 1005         (a) A method to authenticate the member’s identity to the
 1006  online voting system.
 1007         (b) A method to confirm, at least 14 days before the voting
 1008  deadline, that the member’s electronic device can successfully
 1009  communicate with the online voting system.
 1010         (c) A method that is consistent with the election and
 1011  voting procedures in the association’s bylaws.
 1012         (2) The association uses an online voting system that can:
 1013         (a) Authenticate the member’s identity.
 1014         (b) Authenticate the validity of each electronic vote to
 1015  ensure that the vote is not altered in transit.
 1016         (c) Transmit a receipt from the online voting system to
 1017  each member who casts an electronic vote.
 1018         (d) Permanently separate any authentication or identifying
 1019  information from the electronic election ballot, rendering it
 1020  impossible to tie an election ballot to a specific member. This
 1021  paragraph only applies if the association’s bylaws provide for
 1022  secret ballots for the election of directors.
 1023         (e) Store and keep electronic ballots accessible to
 1024  election officials for recount, inspection, and review purposes.
 1025         (3) A member voting electronically pursuant to this section
 1026  shall be counted as being in attendance at the meeting for
 1027  purposes of determining a quorum. A substantive vote of the
 1028  membership may not be taken on any issue other than the issues
 1029  specifically identified in the electronic vote when a quorum is
 1030  established based on members voting electronically pursuant to
 1031  this section.
 1032         (4) This section applies to an association that provides
 1033  for and authorizes an online voting system pursuant to this
 1034  section by a board resolution. The board resolution must provide
 1035  that members receive notice of the opportunity to vote through
 1036  an online voting system, must establish reasonable procedures
 1037  and deadlines for members to consent, in writing, to online
 1038  voting, and must establish reasonable procedures and deadlines
 1039  for members to opt out of online voting after giving consent.
 1040  Written notice of a meeting at which the board resolution
 1041  regarding online voting will be considered must be mailed,
 1042  delivered, or electronically transmitted to the unit owners and
 1043  posted conspicuously on the condominium property or association
 1044  property at least 14 days before the meeting. Evidence of
 1045  compliance with the 14-day notice requirement must be made by an
 1046  affidavit executed by the person providing the notice and filed
 1047  with the official records of the association.
 1048         (5) A member’s consent to online voting is valid until the
 1049  member opts out of online voting pursuant to the procedures
 1050  established by the board of administration pursuant to
 1051  subsection (4).
 1052         (6) This section may apply to any matter that requires a
 1053  vote of the members.
 1054         Section 17. This act shall take effect July 1, 2015.