Florida Senate - 2017                        COMMITTEE AMENDMENT
       Bill No. CS for SB 744
       
       
       
       
       
       
                                Ì845968fÎ845968                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/19/2017           .                                
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       The Committee on Judiciary (Passidomo) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 633.2225, Florida Statutes is created to
    6  read:
    7         633.2225Condominium and cooperative buildings without
    8  sprinkler systems; notice requirements; enforcement.—
    9         (1)The board of a condominium or cooperative association
   10  that operates a building of three stories or more that has not
   11  installed a sprinkler system in the common areas of the building
   12  shall mark the building with a sign or symbol approved by the
   13  State Fire Marshal in a manner sufficient to warn persons
   14  conducting fire control and other emergency operations of the
   15  lack of a sprinkler system in the common areas.
   16         (2)The State Fire Marshal shall ensure that the dimensions
   17  and placement of the sign or symbol do not diminish the
   18  aesthetic value of the building and shall adopt rules necessary
   19  to implement this section. Among other things, the rules must
   20  address:
   21         (a)The dimensions and color of such sign or symbol.
   22         (b)The time within which the condominium or cooperative
   23  buildings without sprinkler systems shall be marked as required
   24  by this section.
   25         (c)The location on each condominium or cooperative
   26  building without a sprinkler system where such sign or symbol
   27  must be posted.
   28         (3)The State Fire Marshal, and local fire officials in
   29  accordance with s. 633.118, shall enforce this section. An owner
   30  who fails to comply with the requirements of this section is
   31  subject to penalties as provided in s. 633.228.
   32         Section 2. Subsections (12) and (13) of section 718.111,
   33  Florida Statutes, are amended to read:
   34         718.111 The association.—
   35         (12) OFFICIAL RECORDS.—
   36         (a) From the inception of the association, the association
   37  shall maintain each of the following items, if applicable, which
   38  constitutes the official records of the association:
   39         1. A copy of the plans, permits, warranties, and other
   40  items provided by the developer pursuant to s. 718.301(4).
   41         2. A photocopy of the recorded declaration of condominium
   42  of each condominium operated by the association and each
   43  amendment to each declaration.
   44         3. A photocopy of the recorded bylaws of the association
   45  and each amendment to the bylaws.
   46         4. A certified copy of the articles of incorporation of the
   47  association, or other documents creating the association, and
   48  each amendment thereto.
   49         5. A copy of the current rules of the association.
   50         6. A book or books that contain the minutes of all meetings
   51  of the association, the board of administration, and the unit
   52  owners, which minutes must be retained for at least 7 years.
   53         7. A current roster of all unit owners and their mailing
   54  addresses, unit identifications, and voting certifications, and,
   55  if known, telephone numbers. The association shall also maintain
   56  the electronic mailing addresses and facsimile numbers of unit
   57  owners consenting to receive notice by electronic transmission.
   58  The electronic mailing addresses and facsimile numbers are not
   59  accessible to unit owners if consent to receive notice by
   60  electronic transmission is not provided in accordance with
   61  subparagraph (c)5. However, the association is not liable for an
   62  inadvertent disclosure of the electronic mail address or
   63  facsimile number for receiving electronic transmission of
   64  notices.
   65         8. All current insurance policies of the association and
   66  condominiums operated by the association.
   67         9. A current copy of any management agreement, lease, or
   68  other contract to which the association is a party or under
   69  which the association or the unit owners have an obligation or
   70  responsibility.
   71         10. Bills of sale or transfer for all property owned by the
   72  association.
   73         11. Accounting records for the association and separate
   74  accounting records for each condominium that the association
   75  operates. All accounting records must be maintained for at least
   76  7 years. Any person who knowingly or intentionally defaces or
   77  destroys such records, or who knowingly or intentionally fails
   78  to create or maintain such records, with the intent of causing
   79  harm to the association or one or more of its members, is
   80  personally subject to a civil penalty pursuant to s.
   81  718.501(1)(d). The accounting records must include, but are not
   82  limited to:
   83         a. Accurate, itemized, and detailed records of all receipts
   84  and expenditures.
   85         b. A current account and a monthly, bimonthly, or quarterly
   86  statement of the account for each unit designating the name of
   87  the unit owner, the due date and amount of each assessment, the
   88  amount paid on the account, and the balance due.
   89         c. All audits, reviews, accounting statements, and
   90  financial reports of the association or condominium.
   91         d. All contracts for work to be performed. Bids for work to
   92  be performed are also considered official records and must be
   93  maintained by the association for 1 year.
   94         12. Ballots, sign-in sheets, voting proxies, and all other
   95  papers and electronic records relating to voting by unit owners,
   96  which must be maintained for 1 year from the date of the
   97  election, vote, or meeting to which the document relates,
   98  notwithstanding paragraph (b).
   99         13. All rental records if the association is acting as
  100  agent for the rental of condominium units.
  101         14. A copy of the current question and answer sheet as
  102  described in s. 718.504.
  103         15. All other written records of the association not
  104  specifically included in the foregoing which are related to the
  105  operation of the association.
  106         16. A copy of the inspection report as described in s.
  107  718.301(4)(p).
  108         (b) The official records of the association must be
  109  maintained within the state for at least 7 years. The records of
  110  the association shall be made available to a unit owner within
  111  45 miles of the condominium property or within the county in
  112  which the condominium property is located within 10 5 working
  113  days after receipt of a written request by the board or its
  114  designee. However, such distance requirement does not apply to
  115  an association governing a timeshare condominium. This paragraph
  116  may be complied with by having a copy of the official records of
  117  the association available for inspection or copying on the
  118  condominium property or association property, or the association
  119  may offer the option of making the records available to a unit
  120  owner electronically via the Internet or by allowing the records
  121  to be viewed in electronic format on a computer screen and
  122  printed upon request. The association is not responsible for the
  123  use or misuse of the information provided to an association
  124  member or his or her authorized representative pursuant to the
  125  compliance requirements of this chapter unless the association
  126  has an affirmative duty not to disclose such information
  127  pursuant to this chapter.
  128         (c) The official records of the association are open to
  129  inspection by any association member or the authorized
  130  representative of such member at all reasonable times. The right
  131  to inspect the records includes the right to make or obtain
  132  copies, at the reasonable expense, if any, of the member. The
  133  association may adopt reasonable rules regarding the frequency,
  134  time, location, notice, and manner of record inspections and
  135  copying. The failure of an association to provide the records
  136  within 10 working days after receipt of a written request
  137  creates a rebuttable presumption that the association willfully
  138  failed to comply with this paragraph. A unit owner who is denied
  139  access to official records is entitled to the actual damages or
  140  minimum damages for the association’s willful failure to comply.
  141  Minimum damages are $50 per calendar day for up to 10 days,
  142  beginning on the 11th working day after receipt of the written
  143  request. The failure to permit inspection entitles any person
  144  prevailing in an enforcement action to recover reasonable
  145  attorney fees from the person in control of the records who,
  146  directly or indirectly, knowingly denied access to the records.
  147  Any person who knowingly or intentionally defaces or destroys
  148  accounting records that are required by this chapter to be
  149  maintained during the period for which such records are required
  150  to be maintained, or who knowingly or intentionally fails to
  151  create or maintain accounting records that are required to be
  152  created or maintained, with the intent of causing harm to the
  153  association or one or more of its members, is personally subject
  154  to a civil penalty pursuant to s. 718.501(1)(d). The association
  155  shall maintain an adequate number of copies of the declaration,
  156  articles of incorporation, bylaws, and rules, and all amendments
  157  to each of the foregoing, as well as the question and answer
  158  sheet as described in s. 718.504 and year-end financial
  159  information required under this section, on the condominium
  160  property to ensure their availability to unit owners and
  161  prospective purchasers, and may charge its actual costs for
  162  preparing and furnishing these documents to those requesting the
  163  documents. An association shall allow a member or his or her
  164  authorized representative to use a portable device, including a
  165  smartphone, tablet, portable scanner, or any other technology
  166  capable of scanning or taking photographs, to make an electronic
  167  copy of the official records in lieu of the association’s
  168  providing the member or his or her authorized representative
  169  with a copy of such records. The association may not charge a
  170  member or his or her authorized representative for the use of a
  171  portable device. Notwithstanding this paragraph, the following
  172  records are not accessible to unit owners:
  173         1. Any record protected by the lawyer-client privilege as
  174  described in s. 90.502 and any record protected by the work
  175  product privilege, including a record prepared by an association
  176  attorney or prepared at the attorney’s express direction, which
  177  reflects a mental impression, conclusion, litigation strategy,
  178  or legal theory of the attorney or the association, and which
  179  was prepared exclusively for civil or criminal litigation or for
  180  adversarial administrative proceedings, or which was prepared in
  181  anticipation of such litigation or proceedings until the
  182  conclusion of the litigation or proceedings.
  183         2. Information obtained by an association in connection
  184  with the approval of the lease, sale, or other transfer of a
  185  unit.
  186         3. Personnel records of association or management company
  187  employees, including, but not limited to, disciplinary, payroll,
  188  health, and insurance records. For purposes of this
  189  subparagraph, the term “personnel records” does not include
  190  written employment agreements with an association employee or
  191  management company, or budgetary or financial records that
  192  indicate the compensation paid to an association employee.
  193         4. Medical records of unit owners.
  194         5. Social security numbers, driver license numbers, credit
  195  card numbers, e-mail addresses, telephone numbers, facsimile
  196  numbers, emergency contact information, addresses of a unit
  197  owner other than as provided to fulfill the association’s notice
  198  requirements, and other personal identifying information of any
  199  person, excluding the person’s name, unit designation, mailing
  200  address, property address, and any address, e-mail address, or
  201  facsimile number provided to the association to fulfill the
  202  association’s notice requirements. Notwithstanding the
  203  restrictions in this subparagraph, an association may print and
  204  distribute to parcel owners a directory containing the name,
  205  parcel address, and all telephone numbers of each parcel owner.
  206  However, an owner may exclude his or her telephone numbers from
  207  the directory by so requesting in writing to the association. An
  208  owner may consent in writing to the disclosure of other contact
  209  information described in this subparagraph. The association is
  210  not liable for the inadvertent disclosure of information that is
  211  protected under this subparagraph if the information is included
  212  in an official record of the association and is voluntarily
  213  provided by an owner and not requested by the association.
  214         6. Electronic security measures that are used by the
  215  association to safeguard data, including passwords.
  216         7. The software and operating system used by the
  217  association which allow the manipulation of data, even if the
  218  owner owns a copy of the same software used by the association.
  219  The data is part of the official records of the association.
  220         (d) The association shall prepare a question and answer
  221  sheet as described in s. 718.504, and shall update it annually.
  222         (e)1. The association or its authorized agent is not
  223  required to provide a prospective purchaser or lienholder with
  224  information about the condominium or the association other than
  225  information or documents required by this chapter to be made
  226  available or disclosed. The association or its authorized agent
  227  may charge a reasonable fee to the prospective purchaser,
  228  lienholder, or the current unit owner for providing good faith
  229  responses to requests for information by or on behalf of a
  230  prospective purchaser or lienholder, other than that required by
  231  law, if the fee does not exceed $150 plus the reasonable cost of
  232  photocopying and any attorney’s fees incurred by the association
  233  in connection with the response.
  234         2. An association and its authorized agent are not liable
  235  for providing such information in good faith pursuant to a
  236  written request if the person providing the information includes
  237  a written statement in substantially the following form: “The
  238  responses herein are made in good faith and to the best of my
  239  ability as to their accuracy.”
  240         (f) An outgoing board or committee member must relinquish
  241  all official records and property of the association in his or
  242  her possession or under his or her control to the incoming board
  243  within 5 days after the election. The division shall impose a
  244  civil penalty as set forth in s. 718.501(1)(d)6. against an
  245  outgoing board or committee member who willfully and knowingly
  246  fails to relinquish such records and property.
  247         (13) FINANCIAL REPORTING.—Within 90 days after the end of
  248  the fiscal year, or annually on a date provided in the bylaws,
  249  the association shall prepare and complete, or contract for the
  250  preparation and completion of, a financial report for the
  251  preceding fiscal year. Within 21 days after the final financial
  252  report is completed by the association or received from the
  253  third party, but not later than 120 days after the end of the
  254  fiscal year or other date as provided in the bylaws, the
  255  association shall mail to each unit owner at the address last
  256  furnished to the association by the unit owner, or hand deliver
  257  to each unit owner, a copy of the financial report or a notice
  258  that a copy of the financial report will be mailed or hand
  259  delivered to the unit owner, without charge, upon receipt of a
  260  written request from the unit owner. The division shall adopt
  261  rules setting forth uniform accounting principles and standards
  262  to be used by all associations and addressing the financial
  263  reporting requirements for multicondominium associations. The
  264  rules must include, but not be limited to, standards for
  265  presenting a summary of association reserves, including a good
  266  faith estimate disclosing the annual amount of reserve funds
  267  that would be necessary for the association to fully fund
  268  reserves for each reserve item based on the straight-line
  269  accounting method. This disclosure is not applicable to reserves
  270  funded via the pooling method. In adopting such rules, the
  271  division shall consider the number of members and annual
  272  revenues of an association. Financial reports shall be prepared
  273  as follows:
  274         (a) An association that meets the criteria of this
  275  paragraph shall prepare a complete set of financial statements
  276  in accordance with generally accepted accounting principles. The
  277  financial statements must be based upon the association’s total
  278  annual revenues, as follows:
  279         1. An association with total annual revenues of $150,000 or
  280  more, but less than $300,000, shall prepare compiled financial
  281  statements.
  282         2. An association with total annual revenues of at least
  283  $300,000, but less than $500,000, shall prepare reviewed
  284  financial statements.
  285         3. An association with total annual revenues of $500,000 or
  286  more shall prepare audited financial statements.
  287         (b)1. An association with total annual revenues of less
  288  than $150,000 shall prepare a report of cash receipts and
  289  expenditures.
  290         2.An association that operates fewer than 50 units,
  291  regardless of the association’s annual revenues, shall prepare a
  292  report of cash receipts and expenditures in lieu of financial
  293  statements required by paragraph (a).
  294         2.3. A report of cash receipts and disbursements must
  295  disclose the amount of receipts by accounts and receipt
  296  classifications and the amount of expenses by accounts and
  297  expense classifications, including, but not limited to, the
  298  following, as applicable: costs for security, professional and
  299  management fees and expenses, taxes, costs for recreation
  300  facilities, expenses for refuse collection and utility services,
  301  expenses for lawn care, costs for building maintenance and
  302  repair, insurance costs, administration and salary expenses, and
  303  reserves accumulated and expended for capital expenditures,
  304  deferred maintenance, and any other category for which the
  305  association maintains reserves.
  306         (c) An association may prepare, without a meeting of or
  307  approval by the unit owners:
  308         1. Compiled, reviewed, or audited financial statements, if
  309  the association is required to prepare a report of cash receipts
  310  and expenditures;
  311         2. Reviewed or audited financial statements, if the
  312  association is required to prepare compiled financial
  313  statements; or
  314         3. Audited financial statements if the association is
  315  required to prepare reviewed financial statements.
  316         (d) If approved by a majority of the voting interests
  317  present at a properly called meeting of the association, an
  318  association may prepare:
  319         1. A report of cash receipts and expenditures in lieu of a
  320  compiled, reviewed, or audited financial statement;
  321         2. A report of cash receipts and expenditures or a compiled
  322  financial statement in lieu of a reviewed or audited financial
  323  statement; or
  324         3. A report of cash receipts and expenditures, a compiled
  325  financial statement, or a reviewed financial statement in lieu
  326  of an audited financial statement.
  327  
  328  Such meeting and approval must occur before the end of the
  329  fiscal year and is effective only for the fiscal year in which
  330  the vote is taken, except that the approval may also be
  331  effective for the following fiscal year. If the developer has
  332  not turned over control of the association, all unit owners,
  333  including the developer, may vote on issues related to the
  334  preparation of the association’s financial reports, from the
  335  date of incorporation of the association through the end of the
  336  second fiscal year after the fiscal year in which the
  337  certificate of a surveyor and mapper is recorded pursuant to s.
  338  718.104(4)(e) or an instrument that transfers title to a unit in
  339  the condominium which is not accompanied by a recorded
  340  assignment of developer rights in favor of the grantee of such
  341  unit is recorded, whichever occurs first. Thereafter, all unit
  342  owners except the developer may vote on such issues until
  343  control is turned over to the association by the developer. Any
  344  audit or review prepared under this section shall be paid for by
  345  the developer if done before turnover of control of the
  346  association. An association may not waive the financial
  347  reporting requirements of this section for more than 3
  348  consecutive years.
  349         Section 3. Paragraphs (c) and (l) of subsection (2) of
  350  section 718.112, Florida Statutes, are amended to read:
  351         718.112 Bylaws.—
  352         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  353  following and, if they do not do so, shall be deemed to include
  354  the following:
  355         (c) Board of administration meetings.—Meetings of the board
  356  of administration at which a quorum of the members is present
  357  are open to all unit owners. Members of the board of
  358  administration may use e-mail as a means of communication but
  359  may not cast a vote on an association matter via e-mail. A unit
  360  owner may tape record or videotape the meetings. The right to
  361  attend such meetings includes the right to speak at such
  362  meetings with reference to all designated agenda items. The
  363  division shall adopt reasonable rules governing the tape
  364  recording and videotaping of the meeting. The association may
  365  adopt written reasonable rules governing the frequency,
  366  duration, and manner of unit owner statements.
  367         1. Adequate notice of all board meetings, which must
  368  specifically identify all agenda items, must be posted
  369  conspicuously on the condominium property at least 48 continuous
  370  hours before the meeting except in an emergency. If 20 percent
  371  of the voting interests petition the board to address an item of
  372  business, the board, within 60 days after receipt of the
  373  petition, shall place the item on the agenda at its next regular
  374  board meeting or at a special meeting called for that purpose.
  375  An item not included on the notice may be taken up on an
  376  emergency basis by a vote of at least a majority plus one of the
  377  board members. Such emergency action must be noticed and
  378  ratified at the next regular board meeting. Notice of any
  379  meeting in which a regular or special assessment against unit
  380  owners is to be considered must specifically state that
  381  assessments will be considered and provide the estimated amount
  382  and a description of the purposes for such assessments. However,
  383  Written notice of a meeting at which a nonemergency special
  384  assessment or an amendment to rules regarding unit use will be
  385  considered must be mailed, delivered, or electronically
  386  transmitted to the unit owners and posted conspicuously on the
  387  condominium property at least 14 days before the meeting.
  388  Evidence of compliance with this 14-day notice requirement must
  389  be made by an affidavit executed by the person providing the
  390  notice and filed with the official records of the association.
  391  Upon notice to the unit owners, the board shall, by duly adopted
  392  rule, designate a specific location on the condominium or
  393  association property where all notices of board meetings must be
  394  posted. If there is no condominium property or association
  395  property where notices can be posted, notices shall be mailed,
  396  delivered, or electronically transmitted to each unit owner at
  397  least 14 days before the meeting. In lieu of or in addition to
  398  the physical posting of the notice on the condominium property,
  399  the association may, by reasonable rule, adopt a procedure for
  400  conspicuously posting and repeatedly broadcasting the notice and
  401  the agenda on a closed-circuit cable television system serving
  402  the condominium association. However, if broadcast notice is
  403  used in lieu of a notice physically posted on condominium
  404  property, the notice and agenda must be broadcast at least four
  405  times every broadcast hour of each day that a posted notice is
  406  otherwise required under this section. If broadcast notice is
  407  provided, the notice and agenda must be broadcast in a manner
  408  and for a sufficient continuous length of time so as to allow an
  409  average reader to observe the notice and read and comprehend the
  410  entire content of the notice and the agenda. In addition to any
  411  of the authorized means of providing notice of a meeting of the
  412  board, the association may, by rule, adopt a procedure for
  413  conspicuously posting the meeting notice and the agenda on a
  414  website serving the condominium association for at least the
  415  minimum period of time for which a notice of a meeting is also
  416  required to be physically posted on the condominium property.
  417  Any rule adopted shall, in addition to other matters, include a
  418  requirement that the association send an electronic notice
  419  providing a hypertext link to the website where the notice is
  420  posted. Notice of any meeting in which regular or special
  421  assessments against unit owners are to be considered must
  422  specifically state that assessments will be considered and
  423  provide the nature, estimated cost, and description of the
  424  purposes for such assessments.
  425         2. Meetings of a committee to take final action on behalf
  426  of the board or make recommendations to the board regarding the
  427  association budget are subject to this paragraph. Meetings of a
  428  committee that does not take final action on behalf of the board
  429  or make recommendations to the board regarding the association
  430  budget are subject to this section, unless those meetings are
  431  exempted from this section by the bylaws of the association.
  432         3. Notwithstanding any other law, the requirement that
  433  board meetings and committee meetings be open to the unit owners
  434  does not apply to:
  435         a. Meetings between the board or a committee and the
  436  association’s attorney, with respect to proposed or pending
  437  litigation, if the meeting is held for the purpose of seeking or
  438  rendering legal advice; or
  439         b. Board meetings held for the purpose of discussing
  440  personnel matters.
  441         (l) Certificate of compliance.—A provision that a
  442  certificate of compliance from a licensed electrical contractor
  443  or electrician may be accepted by the association’s board as
  444  evidence of compliance of the condominium units with the
  445  applicable fire and life safety code must be included.
  446  Notwithstanding chapter 633, s. 509.215, s. 553.895(1), or of
  447  any other code, statute, ordinance, administrative rule, or
  448  regulation, or any interpretation of the foregoing, an
  449  association, residential condominium, or unit owner is not
  450  obligated to retrofit the common elements, association property,
  451  or units of a residential condominium with a fire sprinkler
  452  system or other engineered lifesafety system in a building that
  453  is 75 feet or less in height. There is no obligation to retrofit
  454  for a building greater than 75 feet in height, calculated from
  455  the lowest level of fire department vehicle access to the floor
  456  of the highest occupiable story has been certified for occupancy
  457  by the applicable governmental entity if the unit owners have
  458  voted to forego such retrofitting by the affirmative vote of
  459  two-thirds a majority of all voting interests in the affected
  460  condominium. There is no requirement that owners in condominiums
  461  of 75 feet or less conduct an opt-out vote and such condominiums
  462  are exempt from fire sprinkler or other engineered lifesafety
  463  retrofitting. The preceding sentence is intended to clarify
  464  existing law. The local authority having jurisdiction may not
  465  require completion of retrofitting with a fire sprinkler system
  466  or other engineered lifesafety system before January 1, 2022
  467  2020. By December 31, 2018 2016, an a residential condominium
  468  association that operates a residential condominium that is not
  469  in compliance with the requirements for a fire sprinkler system
  470  or other engineered lifesafety system and has not voted to
  471  forego retrofitting of such a system must initiate an
  472  application for a building permit for the required installation
  473  with the local government having jurisdiction demonstrating that
  474  the association will become compliant by December 31, 2021 2019.
  475         1. A vote to forego required retrofitting may be obtained
  476  by limited proxy or by a ballot personally cast at a duly called
  477  membership meeting, or by execution of a written consent by the
  478  member, or by electronic voting, and is effective upon recording
  479  a certificate executed by an officer or agent of the association
  480  attesting to such vote in the public records of the county where
  481  the condominium is located. When an opt-out vote is to be
  482  conducted at a meeting, the association shall mail or hand
  483  deliver to each unit owner, at each physical and electronic
  484  address of record, written notice at least 14 days before the
  485  membership meeting in which the vote to forego retrofitting of
  486  the required fire sprinkler system or other engineered
  487  lifesafety system is to take place. Within 30 days after the
  488  association’s opt-out vote, notice of the results of the opt-out
  489  vote must be mailed or hand delivered to all unit owners at each
  490  physical and electronic address of record. Evidence of
  491  compliance with this notice requirement must be made by
  492  affidavit executed by the person providing the notice and filed
  493  among the official records of the association. Failure to
  494  provide timely notice to unit owners does not invalidate an
  495  otherwise valid opt-out vote if notice of the results is
  496  provided to the owners. After notice is provided to each owner,
  497  a copy must be provided by the current owner to a new owner
  498  before closing and by a unit owner to a renter before signing a
  499  lease.
  500         2. If there has been a previous vote to forego
  501  retrofitting, a vote to require retrofitting may be obtained at
  502  a special meeting of the unit owners called by a petition of at
  503  least 10 percent of the voting interests or by a majority of the
  504  board of directors. The vote to require retrofitting requires a
  505  two-thirds vote of the total voting interest. Such a vote may
  506  only be called once every 3 years. Notice shall be provided as
  507  required for any regularly called meeting of the unit owners,
  508  and must state the purpose of the meeting. Electronic
  509  transmission may not be used to provide notice of a meeting
  510  called in whole or in part for this purpose.
  511         3. As part of the information collected annually from
  512  condominiums, the division shall require condominium
  513  associations to report the membership vote and recording of a
  514  certificate under this subsection and, if retrofitting has been
  515  undertaken, the per-unit cost of such work. The division shall
  516  annually report to the Division of State Fire Marshal of the
  517  Department of Financial Services the number of condominiums that
  518  have elected to forego retrofitting. Compliance with this
  519  administrative reporting requirement does not affect the
  520  validity of an opt-out vote.
  521         4. Notwithstanding s. 553.509, a residential association
  522  may not be obligated to, and may forego the retrofitting of, any
  523  improvements required by s. 553.509(2) upon an affirmative vote
  524  of two-thirds a majority of the voting interests in the affected
  525  condominium.
  526         5.The provisions of this paragraph do not apply to
  527  timeshare condominium associations, which shall be governed by
  528  s. 721.24.
  529         Section 4. Subsection (2) of section 718.113, Florida
  530  Statutes, is amended to read:
  531         718.113 Maintenance; limitation upon improvement; display
  532  of flag; hurricane shutters and protection; display of religious
  533  decorations.—
  534         (2)(a) Except as otherwise provided in this section, there
  535  shall be no material alteration or substantial additions to the
  536  common elements or to real property which is association
  537  property, except in a manner provided in the declaration as
  538  originally recorded or as amended under the procedures provided
  539  therein. If the declaration as originally recorded or as amended
  540  under the procedures provided therein does not specify the
  541  procedure for approval of material alterations or substantial
  542  additions, 75 percent of the total voting interests of the
  543  association must approve the alterations or additions before the
  544  material alterations or substantial additions are commenced.
  545  This paragraph is intended to clarify existing law and applies
  546  to associations existing on the effective date of this act
  547  October 1, 2008.
  548         (b) There shall not be any material alteration of, or
  549  substantial addition to, the common elements of any condominium
  550  operated by a multicondominium association unless approved in
  551  the manner provided in the declaration of the affected
  552  condominium or condominiums as originally recorded or as amended
  553  under the procedures provided therein. If a declaration as
  554  originally recorded or as amended under the procedures provided
  555  therein does not specify a procedure for approving such an
  556  alteration or addition, the approval of 75 percent of the total
  557  voting interests of each affected condominium is required before
  558  the material alterations or substantial additions are commenced.
  559  This subsection does not prohibit a provision in any
  560  declaration, articles of incorporation, or bylaws as originally
  561  recorded or as amended under the procedures provided therein
  562  requiring the approval of unit owners in any condominium
  563  operated by the same association or requiring board approval
  564  before a material alteration or substantial addition to the
  565  common elements is permitted. This paragraph is intended to
  566  clarify existing law and applies to associations existing on the
  567  effective date of this act.
  568         (c) There shall not be any material alteration or
  569  substantial addition made to association real property operated
  570  by a multicondominium association, except as provided in the
  571  declaration, articles of incorporation, or bylaws as originally
  572  recorded or as amended under the procedures provided therein. If
  573  the declaration, articles of incorporation, or bylaws as
  574  originally recorded or as amended under the procedures provided
  575  therein do not specify the procedure for approving an alteration
  576  or addition to association real property, the approval of 75
  577  percent of the total voting interests of the association is
  578  required before the material alterations or substantial
  579  additions are commenced. This paragraph is intended to clarify
  580  existing law and applies to associations existing on the
  581  effective date of this act.
  582         Section 5. Subsections (1) and (3) of section 718.117,
  583  Florida Statutes, are amended, and subsection (21) is added to
  584  that section, to read:
  585         718.117 Termination of condominium.—
  586         (1) LEGISLATIVE FINDINGS.—The Legislature finds that:
  587         (a) Condominiums are created as authorized by statute and
  588  are subject to covenants that encumber the land and restrict the
  589  use of the use of real property.
  590         (b) In some circumstances, the continued enforcement of
  591  those covenants that may create economic waste, areas of
  592  disrepair that threaten the safety and welfare of the public, or
  593  cause obsolescence of the a condominium property for its
  594  intended use and thereby lower property tax values, and the
  595  Legislature further finds that it is the public policy of this
  596  state to provide by statute a method to preserve the value of
  597  the property interests and the rights of alienation thereof that
  598  owners have in the condominium property before and after
  599  termination.
  600         (c)The Legislature further finds that It is contrary to
  601  the public policy of this state to require the continued
  602  operation of a condominium when to do so constitutes economic
  603  waste or when the ability to do so is made impossible by law or
  604  regulation.
  605         (d)It is in the best interest of the state to provide for
  606  termination of the covenants of a declaration of condominium in
  607  certain circumstances, in order to:
  608         1.Ensure the continued maintenance, management, and repair
  609  of stormwater management systems, conservation areas, and
  610  conservation easements.
  611         2.Avoid transferring the expense of maintaining
  612  infrastructure serving the condominium property, including, but
  613  not limited to, stormwater systems and conservation areas, to
  614  the general tax bases of the state and local governments.
  615         3.Prevent covenants from impairing the continued
  616  productive use of the property.
  617         4.Protect state residents from health and safety hazards
  618  created by derelict, damaged, obsolete, or abandoned condominium
  619  properties.
  620         5.Provide for fair treatment and just compensation for
  621  individuals, preserve property values, and preserve the local
  622  property tax base.
  623         6.Preserve the state’s long history of protecting
  624  homestead property and homestead property rights by ensuring
  625  that such protection is extended to homestead property owners in
  626  the context of a termination of the covenants of a declaration
  627  of condominium. This section applies to all condominiums in this
  628  state in existence on or after July 1, 2007.
  629         (3) OPTIONAL TERMINATION.—Except as provided in subsection
  630  (2) or unless the declaration provides for a lower percentage,
  631  The condominium form of ownership may be terminated for all or a
  632  portion of the condominium property pursuant to a plan of
  633  termination meeting the requirements of this section and
  634  approved by the division. Before a residential association
  635  submits a plan to the division, the plan must be approved by at
  636  least 80 percent of the total voting interests of the
  637  condominium. However, if 5 10 percent or more of the total
  638  voting interests of the condominium have rejected the plan of
  639  termination by negative vote or by providing written objections,
  640  the plan of termination may not proceed.
  641         (a) The termination of the condominium form of ownership is
  642  subject to the following conditions:
  643         1. The total voting interests of the condominium must
  644  include all voting interests for the purpose of considering a
  645  plan of termination. A voting interest of the condominium may
  646  not be suspended for any reason when voting on termination
  647  pursuant to this subsection.
  648         2. If 5 10 percent or more of the total voting interests of
  649  the condominium reject a plan of termination, a subsequent plan
  650  of termination pursuant to this subsection may not be considered
  651  for 24 18 months after the date of the rejection.
  652         (b) This subsection does not apply to any condominium
  653  created pursuant to part VI of this chapter until 10 5 years
  654  after the recording of the declaration of condominium, unless
  655  there is no objection to the plan of termination.
  656         (c) For purposes of this subsection, the term “bulk owner”
  657  means the single holder of such voting interests or an owner
  658  together with a related entity or entities that would be
  659  considered an insider, as defined in s. 726.102, holding such
  660  voting interests. If the condominium association is a
  661  residential association proposed for termination pursuant to
  662  this section and, at the time of recording the plan of
  663  termination, at least 80 percent of the total voting interests
  664  are owned by a bulk owner, the plan of termination is subject to
  665  the following conditions and limitations:
  666         1. If the former condominium units are offered for lease to
  667  the public after the termination, each unit owner in occupancy
  668  immediately before the date of recording of the plan of
  669  termination may lease his or her former unit and remain in
  670  possession of the unit for 12 months after the effective date of
  671  the termination on the same terms as similar unit types within
  672  the property are being offered to the public. In order to obtain
  673  a lease and exercise the right to retain exclusive possession of
  674  the unit owner’s former unit, the unit owner must make a written
  675  request to the termination trustee to rent the former unit
  676  within 90 days after the date the plan of termination is
  677  recorded. Any unit owner who fails to timely make such written
  678  request and sign a lease within 15 days after being presented
  679  with a lease is deemed to have waived his or her right to retain
  680  possession of his or her former unit and shall be required to
  681  vacate the former unit upon the effective date of the
  682  termination, unless otherwise provided in the plan of
  683  termination.
  684         2. Any former unit owner whose unit was granted homestead
  685  exemption status by the applicable county property appraiser as
  686  of the date of the recording of the plan of termination shall be
  687  paid a relocation payment in an amount equal to 1 percent of the
  688  termination proceeds allocated to the owner’s former unit. Any
  689  relocation payment payable under this subparagraph shall be paid
  690  by the single entity or related entities owning at least 80
  691  percent of the total voting interests. Such relocation payment
  692  shall be in addition to the termination proceeds for such
  693  owner’s former unit and shall be paid no later than 10 days
  694  after the former unit owner vacates his or her former unit.
  695         3. For their respective units, all unit owners other than
  696  the bulk owner must be compensated at least 100 percent of the
  697  fair market value of their units. The fair market value shall be
  698  determined as of a date that is no earlier than 90 days before
  699  the date that the plan of termination is recorded and shall be
  700  determined by an independent appraiser selected by the
  701  termination trustee. For a person an original purchaser from the
  702  developer who rejects the plan of termination and whose unit was
  703  granted homestead exemption status by the applicable county
  704  property appraiser, or was an owner-occupied operating business,
  705  as of the date that the plan of termination is recorded and who
  706  is current in payment of both assessments and other monetary
  707  obligations to the association and any mortgage encumbering the
  708  unit as of the date the plan of termination is recorded, the
  709  fair market value for the unit owner rejecting the plan shall be
  710  at least the original purchase price paid for the unit. For
  711  purposes of this subparagraph, the term “fair market value”
  712  means the price of a unit that a seller is willing to accept and
  713  a buyer is willing to pay on the open market in an arms-length
  714  transaction based on similar units sold in other condominiums,
  715  including units sold in bulk purchases but excluding units sold
  716  at wholesale or distressed prices. The purchase price of units
  717  acquired in bulk following a bankruptcy or foreclosure shall not
  718  be considered for purposes of determining fair market value.
  719         4. The plan of termination must provide for payment of a
  720  first mortgage encumbering a unit to the extent necessary to
  721  satisfy the lien, but the payment may not exceed the unit’s
  722  share of the proceeds of termination under the plan. If the unit
  723  owner is current in payment of both assessments and other
  724  monetary obligations to the association and any mortgage
  725  encumbering the unit as of the date the plan of termination is
  726  recorded, the receipt by the holder of the unit’s share of the
  727  proceeds of termination under the plan or the outstanding
  728  balance of the mortgage, whichever is less, shall be deemed to
  729  have satisfied the first mortgage in full.
  730         5. Before a plan of termination is presented to the unit
  731  owners for consideration pursuant to this paragraph, the plan
  732  must include the following written disclosures in a sworn
  733  statement:
  734         a. The identity of any person or entity that owns or
  735  controls 25 50 percent or more of the units in the condominium
  736  and, if the units are owned by an artificial entity or entities,
  737  a disclosure of the natural person or persons who, directly or
  738  indirectly, manage or control the entity or entities and the
  739  natural person or persons who, directly or indirectly, own or
  740  control 10 20 percent or more of the artificial entity or
  741  entities that constitute the bulk owner.
  742         b. The units acquired by any bulk owner, the date each unit
  743  was acquired, and the total amount of compensation paid to each
  744  prior unit owner by the bulk owner, regardless of whether
  745  attributed to the purchase price of the unit.
  746         c. The relationship of any board member to the bulk owner
  747  or any person or entity affiliated with the bulk owner subject
  748  to disclosure pursuant to this subparagraph.
  749         d.The factual circumstances that show that the plan
  750  complies with the requirements of this section and that the plan
  751  supports the expressed public policies of this section.
  752         (d) If the members of the board of administration are
  753  elected by the bulk owner, unit owners other than the bulk owner
  754  may elect at least one-third of the members of the board of
  755  administration before the approval of any plan of termination.
  756         (e)Upon approval of a plan of termination by the unit
  757  owners in a residential condominium, the plan shall be filed
  758  with the division. The division shall review the plan to
  759  determine its sufficiency under the Condominium Act and must,
  760  within 45 days after receipt of the initial filing, notify the
  761  association by mail of any procedural deficiencies or that the
  762  filing is accepted. If the notice is not provided to the
  763  association within 45 days after receipt of the filing, the
  764  filing is presumed to be accepted. If the division determines
  765  that the conditions required by this section have been met and
  766  the plan complies with the procedural requirements of this
  767  section, the division shall authorize the termination and the
  768  termination may proceed pursuant to this section.
  769         (f)The provisions of subsection (2) do not apply to
  770  optional termination pursuant to this subsection.
  771         (21)APPLICABILITY.—This section applies to all
  772  condominiums in this state in existence on or after July 1,
  773  2007.
  774         Section 6. The amendments made by Section 5 of this act are
  775  intended to clarify existing law, are remedial in nature and
  776  intended to address the rights and liabilities of the affected
  777  parties, and apply to all condominiums created under the
  778  Condominium Act.
  779         Section 7. For the 2017-2018 fiscal year, the sums of
  780  $85,006 in recurring funds and $4,046 in nonrecurring funds from
  781  the Division of Florida Condominiums, Timeshares, and Mobile
  782  Homes Trust Fund are appropriated to the Department of Business
  783  and Professional Regulation, and one full-time equivalent
  784  position with associated salary rate of 56,791 is authorized,
  785  for the purpose of implementing Section 5 of this act.
  786         Section 8. Paragraphs (a) and (b) of subsection (2) and
  787  paragraphs (b) and (c) of subsection (4) of section 719.104,
  788  Florida Statutes, are amended to read:
  789         719.104 Cooperatives; access to units; records; financial
  790  reports; assessments; purchase of leases.—
  791         (2) OFFICIAL RECORDS.—
  792         (a) From the inception of the association, the association
  793  shall maintain a copy of each of the following, where
  794  applicable, which shall constitute the official records of the
  795  association:
  796         1. The plans, permits, warranties, and other items provided
  797  by the developer pursuant to s. 719.301(4).
  798         2. A photocopy of the cooperative documents.
  799         3. A copy of the current rules of the association.
  800         4. A book or books containing the minutes of all meetings
  801  of the association, of the board of directors, and of the unit
  802  owners, which minutes shall be retained for a period of not less
  803  than 7 years.
  804         5. A current roster of all unit owners and their mailing
  805  addresses, unit identifications, voting certifications, and, if
  806  known, telephone numbers. The association shall also maintain
  807  the electronic mailing addresses and the numbers designated by
  808  unit owners for receiving notice sent by electronic transmission
  809  of those unit owners consenting to receive notice by electronic
  810  transmission. The electronic mailing addresses and numbers
  811  provided by unit owners to receive notice by electronic
  812  transmission shall be removed from association records when
  813  consent to receive notice by electronic transmission is revoked.
  814  However, the association is not liable for an erroneous
  815  disclosure of the electronic mail address or the number for
  816  receiving electronic transmission of notices.
  817         6. All current insurance policies of the association.
  818         7. A current copy of any management agreement, lease, or
  819  other contract to which the association is a party or under
  820  which the association or the unit owners have an obligation or
  821  responsibility.
  822         8. Bills of sale or transfer for all property owned by the
  823  association.
  824         9. Accounting records for the association and separate
  825  accounting records for each unit it operates, according to good
  826  accounting practices. All accounting records shall be maintained
  827  for a period of not less than 7 years. The accounting records
  828  shall include, but not be limited to:
  829         a. Accurate, itemized, and detailed records of all receipts
  830  and expenditures.
  831         b. A current account and a monthly, bimonthly, or quarterly
  832  statement of the account for each unit designating the name of
  833  the unit owner, the due date and amount of each assessment, the
  834  amount paid upon the account, and the balance due.
  835         c. All audits, reviews, accounting statements, and
  836  financial reports of the association.
  837         d. All contracts for work to be performed. Bids for work to
  838  be performed shall also be considered official records and shall
  839  be maintained for a period of 1 year.
  840         10. Ballots, sign-in sheets, voting proxies, and all other
  841  papers and electronic records relating to voting by unit owners,
  842  which shall be maintained for a period of 1 year after the date
  843  of the election, vote, or meeting to which the document relates.
  844         11. All rental records where the association is acting as
  845  agent for the rental of units.
  846         12. A copy of the current question and answer sheet as
  847  described in s. 719.504.
  848         13. All other written records of the association not
  849  specifically included in the foregoing which are related to the
  850  operation of the association.
  851         (b) The official records of the association must be
  852  maintained within the state for at least 7 years. The records of
  853  the association shall be made available to a unit owner within
  854  45 miles of the cooperative property or within the county in
  855  which the cooperative property is located within 10 5 working
  856  days after receipt of written request by the board or its
  857  designee. This paragraph may be complied with by having a copy
  858  of the official records of the association available for
  859  inspection or copying on the cooperative property or the
  860  association may offer the option of making the records available
  861  to a unit owner electronically via the Internet or by allowing
  862  the records to be viewed in an electronic format on a computer
  863  screen and printed upon request. The association is not
  864  responsible for the use or misuse of the information provided to
  865  an association member or his or her authorized representative
  866  pursuant to the compliance requirements of this chapter unless
  867  the association has an affirmative duty not to disclose such
  868  information pursuant to this chapter.
  869         (4) FINANCIAL REPORT.—
  870         (b) Except as provided in paragraph (c), an association
  871  whose total annual revenues meet the criteria of this paragraph
  872  shall prepare or cause to be prepared a complete set of
  873  financial statements according to the generally accepted
  874  accounting principles adopted by the Board of Accountancy. The
  875  financial statements shall be as follows:
  876         1. An association with total annual revenues between
  877  $150,000 and $299,999 shall prepare a compiled financial
  878  statement.
  879         2. An association with total annual revenues between
  880  $300,000 and $499,999 shall prepare a reviewed financial
  881  statement.
  882         3. An association with total annual revenues of $500,000 or
  883  more shall prepare an audited financial statement.
  884         4. The requirement to have the financial statement
  885  compiled, reviewed, or audited does not apply to an association
  886  if a majority of the voting interests of the association present
  887  at a duly called meeting of the association have voted to waive
  888  this requirement for the fiscal year. In an association in which
  889  turnover of control by the developer has not occurred, the
  890  developer may vote to waive the audit requirement for the first
  891  2 years of operation of the association, after which time waiver
  892  of an applicable audit requirement shall be by a majority of
  893  voting interests other than the developer. The meeting shall be
  894  held prior to the end of the fiscal year, and the waiver shall
  895  be effective for only one fiscal year. An association may not
  896  waive the financial reporting requirements of this section for
  897  more than 3 consecutive years.
  898         (c)1. An association with total annual revenues of less
  899  than $150,000 shall prepare a report of cash receipts and
  900  expenditures.
  901         2.An association in a community of fewer than 50 units,
  902  regardless of the association’s annual revenues, shall prepare a
  903  report of cash receipts and expenditures in lieu of the
  904  financial statements required by paragraph (b), unless the
  905  declaration or other recorded governing documents provide
  906  otherwise.
  907         2.3. A report of cash receipts and expenditures must
  908  disclose the amount of receipts by accounts and receipt
  909  classifications and the amount of expenses by accounts and
  910  expense classifications, including the following, as applicable:
  911  costs for security, professional, and management fees and
  912  expenses; taxes; costs for recreation facilities; expenses for
  913  refuse collection and utility services; expenses for lawn care;
  914  costs for building maintenance and repair; insurance costs;
  915  administration and salary expenses; and reserves, if maintained
  916  by the association.
  917         Section 9. Subsection (5) of section 719.1055, Florida
  918  Statutes, is amended to read:
  919         719.1055 Amendment of cooperative documents; alteration and
  920  acquisition of property.—
  921         (5) The bylaws must include a provision whereby a
  922  certificate of compliance from a licensed electrical contractor
  923  or electrician may be accepted by the association’s board as
  924  evidence of compliance of the cooperative units with the
  925  applicable fire and life safety code.
  926         (a)1. Notwithstanding chapter 633, s. 509.215, s.
  927  553.895(1), or any other code, statute, ordinance,
  928  administrative rule, or regulation, or any interpretation of the
  929  foregoing, an association a cooperative or unit owner is not
  930  obligated to retrofit the common elements or units of a
  931  residential cooperative with a fire sprinkler system or other
  932  engineered lifesafety system in a building that is 75 feet or
  933  less in height. There is no obligation to retrofit for a
  934  building greater than 75 feet in height, calculated from the
  935  lowest level of fire department vehicle access to the floor of
  936  the highest occupiable story has been certified for occupancy by
  937  the applicable governmental entity if the unit owners have voted
  938  to forego such retrofitting by the affirmative vote of two
  939  thirds a majority of all voting interests in the affected
  940  cooperative. There is no requirement that owners in cooperatives
  941  of 75 feet or less conduct an opt-out vote and such cooperatives
  942  are exempt from fire sprinkler or other engineered life safety
  943  retrofitting. The preceding sentence is intended to clarify
  944  existing law. The local authority having jurisdiction may not
  945  require completion of retrofitting with a fire sprinkler system
  946  or other engineered life safety system before January 1, 2022
  947  the end of 2019. By December 31, 2018 2016, a cooperative that
  948  is not in compliance with the requirements for a fire sprinkler
  949  system or other engineered lifesafety system and has not voted
  950  to forego retrofitting of such a system must initiate an
  951  application for a building permit for the required installation
  952  with the local government having jurisdiction demonstrating that
  953  the cooperative will become compliant by December 31, 2021 2019.
  954         2. A vote to forego required retrofitting may be obtained
  955  by limited proxy or by a ballot personally cast at a duly called
  956  membership meeting, or by execution of a written consent by the
  957  member, or by electronic voting, and is effective upon recording
  958  a certificate executed by an officer or agent of the association
  959  attesting to such vote in the public records of the county where
  960  the cooperative is located. When the opt-out vote is to be
  961  conducted at a meeting, the cooperative shall mail or hand
  962  deliver to each unit owner, at each physical and electronic
  963  address of record, written notice at least 14 days before the
  964  membership meeting in which the vote to forego retrofitting of
  965  the required fire sprinkler system or other engineered
  966  lifesafety system is to take place. Within 30 days after the
  967  cooperative’s opt-out vote, notice of the results of the opt-out
  968  vote must be mailed or hand delivered to all unit owners at each
  969  physical and electronic address of record. Evidence of
  970  compliance with this notice requirement must be made by
  971  affidavit executed by the person providing the notice and filed
  972  among the official records of the cooperative. Failure to
  973  provide timely notice to unit owners does not invalidate an
  974  otherwise valid opt-out vote if notice of the results is
  975  provided to the owners. After notice is provided to each owner,
  976  a copy must be provided by the current owner to a new owner
  977  before closing and by a unit owner to a renter before signing a
  978  lease.
  979         (b) If there has been a previous vote to forego
  980  retrofitting, a vote to require retrofitting may be obtained at
  981  a special meeting of the unit owners called by a petition of
  982  least 10 percent of the voting interests or by a majority of the
  983  board of directors. The vote to require retrofitting requires a
  984  two-thirds vote of the total voting interest. Such vote may only
  985  be called once every 3 years. Notice must be provided as
  986  required for any regularly called meeting of the unit owners,
  987  and the notice must state the purpose of the meeting. Electronic
  988  transmission may not be used to provide notice of a meeting
  989  called in whole or in part for this purpose.
  990         (c) As part of the information collected annually from
  991  cooperatives, the division shall require associations to report
  992  the membership vote and recording of a certificate under this
  993  subsection and, if retrofitting has been undertaken, the per
  994  unit cost of such work. The division shall annually report to
  995  the Division of State Fire Marshal of the Department of
  996  Financial Services the number of cooperatives that have elected
  997  to forego retrofitting. Compliance with this administrative
  998  reporting requirement does not affect the validity of an opt-out
  999  vote.
 1000         Section 10. Paragraphs (a) and (c) of subsection (1) of
 1001  section 719.106, Florida Statutes, are amended, and paragraph
 1002  (m) is added to that subsection, to read:
 1003         719.106 Bylaws; cooperative ownership.—
 1004         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
 1005  documents shall provide for the following, and if they do not,
 1006  they shall be deemed to include the following:
 1007         (a) Administration.—
 1008         1. The form of administration of the association shall be
 1009  described, indicating the titles of the officers and board of
 1010  administration and specifying the powers, duties, manner of
 1011  selection and removal, and compensation, if any, of officers and
 1012  board members. In the absence of such a provision, the board of
 1013  administration shall be composed of five members, except in the
 1014  case of cooperatives having five or fewer units, in which case
 1015  in not-for-profit corporations, the board shall consist of not
 1016  fewer than three members. In a residential cooperative
 1017  association of more than 10 units, co-owners of a unit may not
 1018  serve as members of the board of directors at the same time
 1019  unless the co-owners own more than one unit or unless there are
 1020  not enough eligible candidates to fill the vacancies on the
 1021  board at the time of the vacancy. In the absence of provisions
 1022  to the contrary, the board of administration shall have a
 1023  president, a secretary, and a treasurer, who shall perform the
 1024  duties of those offices customarily performed by officers of
 1025  corporations. Unless prohibited in the bylaws, the board of
 1026  administration may appoint other officers and grant them those
 1027  duties it deems appropriate. Unless otherwise provided in the
 1028  bylaws, the officers shall serve without compensation and at the
 1029  pleasure of the board. Unless otherwise provided in the bylaws,
 1030  the members of the board shall serve without compensation.
 1031         2. A person who has been suspended or removed by the
 1032  division under this chapter, or who is delinquent in the payment
 1033  of any monetary obligation due to the association, is not
 1034  eligible to be a candidate for board membership and may not be
 1035  listed on the ballot. A director or officer charged by
 1036  information or indictment with a felony theft or embezzlement
 1037  offense involving the association’s funds or property is
 1038  suspended from office. The board shall fill the vacancy
 1039  according to general law until the end of the period of the
 1040  suspension or the end of the director’s term of office,
 1041  whichever occurs first. However, if the charges are resolved
 1042  without a finding of guilt or without acceptance of a plea of
 1043  guilty or nolo contendere, the director or officer shall be
 1044  reinstated for any remainder of his or her term of office. A
 1045  member who has such criminal charges pending may not be
 1046  appointed or elected to a position as a director or officer. A
 1047  person who has been convicted of any felony in this state or in
 1048  any United States District Court, or who has been convicted of
 1049  any offense in another jurisdiction which would be considered a
 1050  felony if committed in this state, is not eligible for board
 1051  membership unless such felon’s civil rights have been restored
 1052  for at least 5 years as of the date such person seeks election
 1053  to the board. The validity of an action by the board is not
 1054  affected if it is later determined that a board member is
 1055  ineligible for board membership due to having been convicted of
 1056  a felony.
 1057         3. When a unit owner files a written inquiry by certified
 1058  mail with the board of administration, the board shall respond
 1059  in writing to the unit owner within 30 days of receipt of the
 1060  inquiry. The board’s response shall either give a substantive
 1061  response to the inquirer, notify the inquirer that a legal
 1062  opinion has been requested, or notify the inquirer that advice
 1063  has been requested from the division. If the board requests
 1064  advice from the division, the board shall, within 10 days of its
 1065  receipt of the advice, provide in writing a substantive response
 1066  to the inquirer. If a legal opinion is requested, the board
 1067  shall, within 60 days after the receipt of the inquiry, provide
 1068  in writing a substantive response to the inquirer. The failure
 1069  to provide a substantive response to the inquirer as provided
 1070  herein precludes the board from recovering attorney’s fees and
 1071  costs in any subsequent litigation, administrative proceeding,
 1072  or arbitration arising out of the inquiry. The association may,
 1073  through its board of administration, adopt reasonable rules and
 1074  regulations regarding the frequency and manner of responding to
 1075  the unit owners’ inquiries, one of which may be that the
 1076  association is obligated to respond to only one written inquiry
 1077  per unit in any given 30-day period. In such case, any
 1078  additional inquiry or inquiries must be responded to in the
 1079  subsequent 30-day period, or periods, as applicable.
 1080         (c) Board of administration meetings.Members of the board
 1081  of administration may use e-mail as a means of communication but
 1082  may not cast a vote on an association matter via e-mail.
 1083  Meetings of the board of administration at which a quorum of the
 1084  members is present shall be open to all unit owners. Any unit
 1085  owner may tape record or videotape meetings of the board of
 1086  administration. The right to attend such meetings includes the
 1087  right to speak at such meetings with reference to all designated
 1088  agenda items. The division shall adopt reasonable rules
 1089  governing the tape recording and videotaping of the meeting. The
 1090  association may adopt reasonable written rules governing the
 1091  frequency, duration, and manner of unit owner statements.
 1092  Adequate notice of all meetings shall be posted in a conspicuous
 1093  place upon the cooperative property at least 48 continuous hours
 1094  preceding the meeting, except in an emergency. Any item not
 1095  included on the notice may be taken up on an emergency basis by
 1096  at least a majority plus one of the members of the board. Such
 1097  emergency action shall be noticed and ratified at the next
 1098  regular meeting of the board. Notice of any meeting in which
 1099  regular or special assessments against unit owners are to be
 1100  considered must specifically state that assessments will be
 1101  considered and provide the estimated amount and description of
 1102  the purposes for such assessments. However, Written notice of
 1103  any meeting at which nonemergency special assessments, or at
 1104  which amendment to rules regarding unit use, will be considered
 1105  shall be mailed, delivered, or electronically transmitted to the
 1106  unit owners and posted conspicuously on the cooperative property
 1107  not less than 14 days before the meeting. Evidence of compliance
 1108  with this 14-day notice shall be made by an affidavit executed
 1109  by the person providing the notice and filed among the official
 1110  records of the association. Upon notice to the unit owners, the
 1111  board shall by duly adopted rule designate a specific location
 1112  on the cooperative property upon which all notices of board
 1113  meetings shall be posted. In lieu of or in addition to the
 1114  physical posting of notice of any meeting of the board of
 1115  administration on the cooperative property, the association may,
 1116  by reasonable rule, adopt a procedure for conspicuously posting
 1117  and repeatedly broadcasting the notice and the agenda on a
 1118  closed-circuit cable television system serving the cooperative
 1119  association. However, if broadcast notice is used in lieu of a
 1120  notice posted physically on the cooperative property, the notice
 1121  and agenda must be broadcast at least four times every broadcast
 1122  hour of each day that a posted notice is otherwise required
 1123  under this section. When broadcast notice is provided, the
 1124  notice and agenda must be broadcast in a manner and for a
 1125  sufficient continuous length of time so as to allow an average
 1126  reader to observe the notice and read and comprehend the entire
 1127  content of the notice and the agenda. In addition to any of the
 1128  authorized means of providing notice of a meeting of the board,
 1129  the association may, by rule, adopt a procedure for
 1130  conspicuously posting the meeting notice and the agenda on a
 1131  website serving the cooperative association for at least the
 1132  minimum period of time for which a notice of a meeting is also
 1133  required to be physically posted on the cooperative property.
 1134  Any rule adopted shall, in addition to other matters, include a
 1135  requirement that the association send an electronic notice
 1136  providing a hypertext link to the website where the notice is
 1137  posted. Notice of any meeting in which regular assessments
 1138  against unit owners are to be considered for any reason shall
 1139  specifically contain a statement that
 1140         assessments will be considered and the nature of any such
 1141  assessments. Meetings of a committee to take final action on
 1142  behalf of the board or to make recommendations to the board
 1143  regarding the association budget are subject to the provisions
 1144  of this paragraph. Meetings of a committee that does not take
 1145  final action on behalf of the board or make recommendations to
 1146  the board regarding the association budget are subject to the
 1147  provisions of this section, unless those meetings are exempted
 1148  from this section by the bylaws of the association.
 1149  Notwithstanding any other law to the contrary, the requirement
 1150  that board meetings and committee meetings be open to the unit
 1151  owners does not apply to board or committee meetings held for
 1152  the purpose of discussing personnel matters or meetings between
 1153  the board or a committee and the association’s attorney, with
 1154  respect to proposed or pending litigation, if the meeting is
 1155  held for the purpose of seeking or rendering legal advice.
 1156         (m)Director or officer delinquencies.—A director or
 1157  officer more than 90 days delinquent in the payment of any
 1158  monetary obligation due the association shall be deemed to have
 1159  abandoned the office, creating a vacancy in the office to be
 1160  filled according to law.
 1161         Section 11. Paragraph (b) of subsection (1) of section
 1162  719.107, Florida Statutes, is amended to read:
 1163         719.107 Common expenses; assessment.—
 1164         (1)
 1165         (b) If so provided in the bylaws, the cost of
 1166  communications services as defined in chapter 202, information
 1167  services, or Internet services a master antenna television
 1168  system or duly franchised cable television service obtained
 1169  pursuant to a bulk contract shall be deemed a common expense,
 1170  and if not obtained pursuant to a bulk contract, such cost shall
 1171  be considered common expense if it is designated as such in a
 1172  written contract between the board of administration and the
 1173  company providing the communications services as defined in
 1174  chapter 202, information services, or Internet services master
 1175  television antenna system or the cable television service. The
 1176  contract shall be for a term of not less than 2 years.
 1177         1. Any contract made by the board after April 2, 1992, for
 1178  a community antenna system or duly franchised cable television
 1179  service, communications services as defined in chapter 202,
 1180  information services, or Internet services may be canceled by a
 1181  majority of the voting interests present at the next regular or
 1182  special meeting of the association. Any member may make a motion
 1183  to cancel the contract, but if no motion is made or if such
 1184  motion fails to obtain the required majority at the next regular
 1185  or special meeting, whichever is sooner, following the making of
 1186  the contract, then such contract shall be deemed ratified for
 1187  the term therein expressed.
 1188         2. Any such contract shall provide, and shall be deemed to
 1189  provide if not expressly set forth, that any hearing impaired or
 1190  legally blind unit owner who does not occupy the unit with a
 1191  nonhearing impaired or sighted person may discontinue the
 1192  service without incurring disconnect fees, penalties, or
 1193  subsequent service charges, and as to such units, the owners
 1194  shall not be required to pay any common expenses charge related
 1195  to such service. If less than all members of an association
 1196  share the expenses of cable television, the expense shall be
 1197  shared equally by all participating unit owners. The association
 1198  may use the provisions of s. 719.108 to enforce payment of the
 1199  shares of such costs by the unit owners receiving cable
 1200  television.
 1201         Section 12. Paragraphs (a) and (c) of subsection (2) and
 1202  subsections (6) and (7) of section 720.303, Florida Statutes,
 1203  are amended to read:
 1204         720.303 Association powers and duties; meetings of board;
 1205  official records; budgets; budget meetings; financial reporting;
 1206  association funds; recalls.—
 1207         (2) BOARD MEETINGS.—
 1208         (a) Members of the board of administration may use e-mail
 1209  as a means of communication, but may not cast a vote on an
 1210  association matter via e-mail. A meeting of the board of
 1211  directors of an association occurs whenever a quorum of the
 1212  board gathers to conduct association business. Meetings of the
 1213  board must be open to all members, except for meetings between
 1214  the board and its attorney with respect to proposed or pending
 1215  litigation where the contents of the discussion would otherwise
 1216  be governed by the attorney-client privilege. A meeting of the
 1217  board must be held at a location that is accessible to a
 1218  physically handicapped person if requested by a physically
 1219  handicapped person who has a right to attend the meeting. The
 1220  provisions of this subsection shall also apply to the meetings
 1221  of any committee or other similar body when a final decision
 1222  will be made regarding the expenditure of association funds and
 1223  to meetings of any body vested with the power to approve or
 1224  disapprove architectural decisions with respect to a specific
 1225  parcel of residential property owned by a member of the
 1226  community.
 1227         (c) The bylaws shall provide the following for giving
 1228  notice to parcel owners and members of all board meetings and,
 1229  if they do not do so, shall be deemed to include provide the
 1230  following:
 1231         1. Notices of all board meetings must be posted in a
 1232  conspicuous place in the community at least 48 hours in advance
 1233  of a meeting, except in an emergency. In the alternative, if
 1234  notice is not posted in a conspicuous place in the community,
 1235  notice of each board meeting must be mailed or delivered to each
 1236  member at least 7 days before the meeting, except in an
 1237  emergency. Notwithstanding this general notice requirement, for
 1238  communities with more than 100 members, the association bylaws
 1239  may provide for a reasonable alternative to posting or mailing
 1240  of notice for each board meeting, including publication of
 1241  notice, provision of a schedule of board meetings, or the
 1242  conspicuous posting and repeated broadcasting of the notice on a
 1243  closed-circuit cable television system serving the homeowners’
 1244  association. However, if broadcast notice is used in lieu of a
 1245  notice posted physically in the community, the notice must be
 1246  broadcast at least four times every broadcast hour of each day
 1247  that a posted notice is otherwise required. When broadcast
 1248  notice is provided, the notice and agenda must be broadcast in a
 1249  manner and for a sufficient continuous length of time so as to
 1250  allow an average reader to observe the notice and read and
 1251  comprehend the entire content of the notice and the agenda. The
 1252  association may provide notice by electronic transmission in a
 1253  manner authorized by law for meetings of the board of directors,
 1254  committee meetings requiring notice under this section, and
 1255  annual and special meetings of the members to any member who has
 1256  provided a facsimile number or e-mail address to the association
 1257  to be used for such purposes; however, a member must consent in
 1258  writing to receiving notice by electronic transmission.
 1259         2. An assessment may not be levied at a board meeting
 1260  unless the notice of the meeting includes a statement that
 1261  assessments will be considered and the nature of the
 1262  assessments. Written notice of any meeting at which special
 1263  assessments will be considered or at which amendments to rules
 1264  regarding parcel use will be considered must be mailed,
 1265  delivered, or electronically transmitted to the members and
 1266  parcel owners and posted conspicuously on the property or
 1267  broadcast on closed-circuit cable television not less than 14
 1268  days before the meeting.
 1269         3. Directors may not vote by proxy or by secret ballot at
 1270  board meetings, except that secret ballots may be used in the
 1271  election of officers. This subsection also applies to the
 1272  meetings of any committee or other similar body, when a final
 1273  decision will be made regarding the expenditure of association
 1274  funds, and to any body vested with the power to approve or
 1275  disapprove architectural decisions with respect to a specific
 1276  parcel of residential property owned by a member of the
 1277  community.
 1278         (6) BUDGETS; BUDGET MEETINGS.—
 1279         (a) The association shall prepare an annual budget that
 1280  sets out the annual operating expenses. The budget must reflect
 1281  the estimated revenues and expenses for that year and the
 1282  estimated surplus or deficit as of the end of the current year.
 1283  The budget must set out separately all fees or charges paid for
 1284  by the association for recreational amenities, whether owned by
 1285  the association, the developer, or another person. The
 1286  association shall provide each member with a copy of the annual
 1287  budget or a written notice that a copy of the budget is
 1288  available upon request at no charge to the member. The copy must
 1289  be provided to the member within the time limits set forth in
 1290  subsection (5).
 1291         (b) In addition to annual operating expenses, for all
 1292  associations incorporated after July 1, 2017, and any
 1293  association incorporated before that date which, by a majority
 1294  vote of the members of the association present, in person or by
 1295  proxy, at a meeting of the association at which a quorum is
 1296  present, affirmatively votes to be bound by the provisions of
 1297  this subsection as amended effective July 1, 2017, the budget
 1298  must may include a disclosure of reserves reserve accounts for
 1299  capital expenditures and deferred maintenance for which are
 1300  obligations of the association under is responsible. If reserve
 1301  accounts are not established pursuant to paragraph (d), funding
 1302  of such reserves is limited to the extent that the governing
 1303  documents for any item that has a deferred maintenance expense
 1304  greater than $100,000. The amount to be reserved must be
 1305  computed using a formula based upon the estimated deferred
 1306  maintenance expense of each reserve item divided by the
 1307  estimated remaining useful life of that item. However, and
 1308  notwithstanding the amount disclosed as being the total required
 1309  reserve amount, each parcel which is obligated to pay reserves
 1310  to the association each year shall be assessed for reserves only
 1311  the amount determined by dividing the total annual reserve
 1312  amount disclosed in the budget by the total number of parcels
 1313  that will ultimately be operated by the association. Therefore,
 1314  the assessments actually collected will be less than the full
 1315  amount of required reserves as disclosed in the proposed annual
 1316  budget until all parcels are obligated to pay assessments for
 1317  reserves. The association may adjust the deferred maintenance
 1318  reserve limit increases in assessments annually to take into
 1319  account any changes in estimates or extension of the useful life
 1320  of a reserve item, the anticipated cost of the deferred
 1321  maintenance and any changes in the number of parcels that will
 1322  ultimately be operated by the association. This subsection does
 1323  not apply to an adopted budget for which members of an
 1324  association have determined, by a majority vote of the members
 1325  of the association present, in person or by proxy, and voting at
 1326  a meeting, including reserves. If the budget of the association,
 1327  at which a quorum is present, to provide no reserves or less
 1328  reserves than required by this subsection includes reserve
 1329  accounts established pursuant to paragraph (d), such reserves
 1330  shall be determined, maintained, and waived in the manner
 1331  provided in this subsection. Once an association provides for
 1332  reserve accounts pursuant to paragraph (d), the association
 1333  shall thereafter determine, maintain, and waive reserves in
 1334  compliance with this subsection. This section does not preclude
 1335  an association from ceasing to add amounts to the termination of
 1336  a reserve account established pursuant to this paragraph upon
 1337  approval of a majority of the total voting interests present in
 1338  person or by proxy and voting at a meeting of the association at
 1339  which a quorum is present of the association. Upon such
 1340  approval, no reserves shall be included in the terminating
 1341  reserve account shall be removed from the budget for that year.
 1342  Amounts in the reserve account may be used only for deferred
 1343  maintenance and for no other purpose. Only parcels with
 1344  completed improvements as evidenced by certificates of occupancy
 1345  for such improvements are obligated to pay assessments for
 1346  reserves. A developer that subsidizes the association’s budget
 1347  pursuant to s. 720.308(1) is not obligated to include reserve
 1348  contributions in any such subsidy payments. If a developer
 1349  establishes a guarantee under s. 720.308(2) or otherwise
 1350  subsidizes the association budget, the developer is not
 1351  obligated to include reserve contributions in any such guarantee
 1352  or subsidy payments.
 1353         (c)1.The developer may vote the voting interests allocated
 1354  to its parcels with completed improvements, as evidenced by
 1355  certificates of occupancy for such improvements, to waive the
 1356  reserves or reduce the funding of reserves If the budget of the
 1357  association does not provide for reserve accounts pursuant to
 1358  paragraph (d) and the association is responsible for the repair
 1359  and maintenance of capital improvements that may result in a
 1360  special assessment if reserves are not provided, each financial
 1361  report for the preceding fiscal year required by subsection (7)
 1362  must contain the following statement in conspicuous type:
 1363  THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR RESERVE
 1364  ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT
 1365  MAY RESULT IN SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE
 1366  FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6), FLORIDA
 1367  STATUTES, UPON OBTAINING THE APPROVAL OF A MAJORITY OF THE TOTAL
 1368  VOTING INTERESTS OF THE ASSOCIATION BY VOTE OF THE MEMBERS AT A
 1369  MEETING OR BY WRITTEN CONSENT.
 1370         2.If the budget of the association does provide for
 1371  funding accounts for deferred expenditures, including, but not
 1372  limited to, funds for capital expenditures and deferred
 1373  maintenance, but such accounts are not created or established
 1374  pursuant to paragraph (d), each financial report for the
 1375  preceding fiscal year required under subsection (7) must also
 1376  contain the following statement in conspicuous type:
 1377  THE BUDGET OF THE ASSOCIATION PROVIDES FOR LIMITED VOLUNTARY
 1378  DEFERRED EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES
 1379  AND DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED
 1380  IN OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED
 1381  TO PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6),
 1382  FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT TO THE
 1383  RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR
 1384  ARE RESERVES CALCULATED IN ACCORDANCE WITH THAT STATUTE.
 1385         (d)An association is deemed to have provided for reserve
 1386  accounts if reserve accounts have been initially established by
 1387  the developer or if the membership of the association
 1388  affirmatively elects to provide for reserves. If reserve
 1389  accounts are established by the developer, the budget must
 1390  designate the components for which the reserve accounts may be
 1391  used. If reserve accounts are not initially provided by the
 1392  developer, the membership of the association may elect to do so
 1393  upon the affirmative approval of a majority of the total voting
 1394  interests of the association. Such approval may be obtained by
 1395  vote of the members at a duly called meeting of the membership
 1396  or by the written consent of a majority of the total voting
 1397  interests of the association. The approval action of the
 1398  membership must state that reserve accounts shall be provided
 1399  for in the budget and must designate the components for which
 1400  the reserve accounts are to be established. Upon approval by the
 1401  membership, the board of directors shall include the required
 1402  reserve accounts in the budget in the next fiscal year following
 1403  the approval and each year thereafter. Once established as
 1404  provided in this subsection, the reserve accounts must be funded
 1405  or maintained or have their funding waived in the manner
 1406  provided in paragraph (f).
 1407         (e)The amount to be reserved in any account established
 1408  shall be computed by means of a formula that is based upon
 1409  estimated remaining useful life and estimated replacement cost
 1410  or deferred maintenance expense of each reserve item. The
 1411  association may adjust replacement reserve assessments annually
 1412  to take into account any changes in estimates of cost or useful
 1413  life of a reserve item.
 1414         (f)After one or more reserve accounts are established, the
 1415  membership of the association, upon a majority vote at a meeting
 1416  at which a quorum is present, may provide for no reserves or
 1417  less reserves than required by this section. If a meeting of the
 1418  parcel unit owners has been called to determine whether to waive
 1419  or reduce the funding of reserves and such result is not
 1420  achieved or a quorum is not present, the reserves as included in
 1421  the budget go into effect. After the turnover, the developer may
 1422  vote its voting interest to waive or reduce the funding of
 1423  reserves. Any vote taken pursuant to this subsection to waive or
 1424  reduce reserves is applicable only to one budget year.
 1425         (d)Reserve funds and any interest accruing thereon shall
 1426  remain in the reserve account or accounts and may be used only
 1427  for authorized reserve expenditures and may not be used for any
 1428  other purpose.
 1429         (e)The only voting interests eligible to vote on questions
 1430  that involve waiving or reducing the funding of reserves are the
 1431  voting interests of the parcels subject to assessment to fund
 1432  the reserves in question. Any vote taken pursuant to this
 1433  subsection to waive or reduce reserves is applicable only to one
 1434  budget year. Proxy questions relating to waiving or reducing the
 1435  funding of reserves must contain the following statement in
 1436  capitalized, bold letters in a font size larger than any other
 1437  used on the face of the proxy ballot: WAIVING OF RESERVES, IN
 1438  WHOLE OR IN PART, MAY RESULT IN PARCEL OWNER LIABILITY FOR
 1439  PAYMENT OF UNANTICIPATED SPECIAL ASSESSMENTS REGARDING THOSE
 1440  ITEMS.
 1441         (f)Funding formulas for reserves required by this section
 1442  shall be based on a pooled analysis of two or more of the items
 1443  for which reserves are required to be accrued pursuant to this
 1444  subsection. The projected annual cash inflows may include
 1445  estimated earnings from investment of principal. The reserve
 1446  funding formula shall have constant funding each year. However,
 1447  each parcel which is obligated to pay reserves to the
 1448  association each year shall be assessed for reserves only the
 1449  amount determined by dividing the total annual reserve amount
 1450  disclosed in the budget by the total number of parcels that will
 1451  ultimately be operated by the association. The assessments
 1452  actually collected shall be less than the full amount of
 1453  required reserves as disclosed in the proposed annual budget
 1454  until all parcels are obligated to pay assessments for reserves.
 1455         (g) As alternative to the pooled analysis method described
 1456  in paragraph (f) and, if approved by a majority vote of the
 1457  members present, in person or by proxy, at a meeting of the
 1458  members of the association at which a quorum is present, the
 1459  funding formulas for reserves required authorized by this
 1460  section may must be based on a separate analysis of each of the
 1461  required assets or a pooled analysis of two or more of the
 1462  required assets.
 1463         1. If the association maintains separate reserve accounts
 1464  for each of the required assets, the amount of the contribution
 1465  to each reserve account is the sum of the following two
 1466  calculations:
 1467         1.a. The total amount necessary, if any, to bring a
 1468  negative component balance to zero.
 1469         2.b. The total estimated deferred maintenance expense or
 1470  estimated replacement cost of the reserve component less the
 1471  estimated balance of the reserve component as of the beginning
 1472  of the period the budget will be in effect. The remainder, if
 1473  greater than zero, shall be divided by the estimated remaining
 1474  useful life of the component.
 1475  
 1476  The formula may be adjusted each year for changes in estimates
 1477  and deferred maintenance performed during the year and may
 1478  include factors such as inflation and earnings on invested
 1479  funds. An association may convert its funding formulas from a
 1480  component method to a pooled method, as described in paragraph
 1481  (f), at any time if approved by a majority vote of the members
 1482  present, in person or by proxy, at a meeting at which a quorum
 1483  is present.
 1484         2.If the association maintains a pooled account of two or
 1485  more of the required reserve assets, the amount of the
 1486  contribution to the pooled reserve account as disclosed on the
 1487  proposed budget may not be less than that required to ensure
 1488  that the balance on hand at the beginning of the period the
 1489  budget will go into effect plus the projected annual cash
 1490  inflows over the remaining estimated useful life of all of the
 1491  assets that make up the reserve pool are equal to or greater
 1492  than the projected annual cash outflows over the remaining
 1493  estimated useful lives of all the assets that make up the
 1494  reserve pool, based on the current reserve analysis. The
 1495  projected annual cash inflows may include estimated earnings
 1496  from investment of principal and accounts receivable minus the
 1497  allowance for doubtful accounts. The reserve funding formula may
 1498  not include any type of balloon payments.
 1499         (h)1.Reserve funds and Any interest accruing thereon shall
 1500  remain in the reserve account or accounts and shall be used only
 1501  for authorized reserve expenditures unless their use for other
 1502  purposes is approved in advance by a majority vote at a meeting
 1503  at which a proposed annual budget of an association will be
 1504  considered by the board or a quorum is present. Prior to
 1505  turnover of control of an association by a developer to parcel
 1506  owners shall be open to all parcel owners, the developer
 1507  controlled association shall not vote to use reserves for
 1508  purposes other than those for which they were intended without
 1509  the approval of a majority of all nondeveloper voting interests
 1510  voting in person or by limited proxy at a duly called meeting of
 1511  the association.
 1512         2.a.If a board adopts in any fiscal year an annual budget
 1513  which requires assessments against parcel owners which exceed
 1514  115 percent of assessments for the preceding fiscal year, the
 1515  board shall conduct a special meeting of the parcel owners to
 1516  consider a substitute budget if the board receives, within 21
 1517  days after adoption of the annual budget, a written request for
 1518  a special meeting from at least 10 percent of all voting
 1519  interests. The special meeting shall be conducted within 60 days
 1520  after adoption of the annual budget. At least 14 days before
 1521  such special meeting, the board shall hand deliver to each
 1522  parcel owner, or mail to each parcel owner at the address last
 1523  furnished to the association, a notice of the meeting. An
 1524  officer or manager of the association, or other person providing
 1525  notice of such meeting shall execute an affidavit evidencing
 1526  compliance with this notice requirement, and such affidavit
 1527  shall be filed among the official records of the association.
 1528  Parcel owners may consider and adopt a substitute budget at the
 1529  special meeting. A substitute budget is adopted if approved by a
 1530  majority of all voting interests unless the governing documents
 1531  require adoption by a greater percentage of voting interests. If
 1532  there is not a quorum at the special meeting or a substitute
 1533  budget is not adopted, the annual budget previously adopted by
 1534  the board shall take effect as scheduled.
 1535         b.Any determination of whether assessments exceed 115
 1536  percent of assessments for the prior fiscal year shall exclude
 1537  any provision for reasonable reserves for repair or deferred
 1538  maintenance of items which are the obligations of the
 1539  association under the governing documents, anticipated expenses
 1540  of the association which the board does not expect to be
 1541  incurred on a regular or annual basis, or assessments for
 1542  betterments to the common areas, association property, or other
 1543  items which are the obligation of the association under the
 1544  governing documents.
 1545         (i)The provisions of paragraphs (b)-(h) do not apply to
 1546  mandatory reserve accounts required to be established and
 1547  maintained by an association at the direction of a county or
 1548  municipal government, water or drainage management district,
 1549  community development district, or other political subdivision
 1550  that has the authority to approve and control subdivision
 1551  infrastructure which is entrusted to the care of an association
 1552  on the condition that the association establish and maintain one
 1553  or more mandatory reserve accounts for the deferred maintenance
 1554  of the infrastructure in accordance with the requirements of
 1555  that entrusting authority.
 1556         (j)Reserve funds must be held in a separate bank account
 1557  established for such funds.
 1558         (7) FINANCIAL REPORTING.—Within 90 days after the end of
 1559  the fiscal year, or annually on the date provided in the bylaws,
 1560  the association shall prepare and complete, or contract with a
 1561  third party for the preparation and completion of, a financial
 1562  report for the preceding fiscal year. Within 21 days after the
 1563  final financial report is completed by the association or
 1564  received from the third party, but not later than 120 days after
 1565  the end of the fiscal year or other date as provided in the
 1566  bylaws, the association shall, within the time limits set forth
 1567  in subsection (5), provide each member with a copy of the annual
 1568  financial report or a written notice that a copy of the
 1569  financial report is available upon request at no charge to the
 1570  member. Financial reports shall be prepared as follows:
 1571         (a) An association that meets the criteria of this
 1572  paragraph shall prepare or cause to be prepared a complete set
 1573  of financial statements in accordance with generally accepted
 1574  accounting principles as adopted by the Board of Accountancy.
 1575  The financial statements shall be based upon the association’s
 1576  total annual revenues, as follows:
 1577         1. An association with total annual revenues of $150,000 or
 1578  more, but less than $300,000, shall prepare compiled financial
 1579  statements.
 1580         2. An association with total annual revenues of at least
 1581  $300,000, but less than $500,000, shall prepare reviewed
 1582  financial statements.
 1583         3. An association with total annual revenues of $500,000 or
 1584  more shall prepare audited financial statements.
 1585         (b)1. An association with total annual revenues of less
 1586  than $150,000 shall prepare a report of cash receipts and
 1587  expenditures.
 1588         2.An association in a community of fewer than 50 parcels,
 1589  regardless of the association’s annual revenues, may prepare a
 1590  report of cash receipts and expenditures in lieu of financial
 1591  statements required by paragraph (a) unless the governing
 1592  documents provide otherwise.
 1593         2.3. A report of cash receipts and disbursement must
 1594  disclose the amount of receipts by accounts and receipt
 1595  classifications and the amount of expenses by accounts and
 1596  expense classifications, including, but not limited to, the
 1597  following, as applicable: costs for security, professional, and
 1598  management fees and expenses; taxes; costs for recreation
 1599  facilities; expenses for refuse collection and utility services;
 1600  expenses for lawn care; costs for building maintenance and
 1601  repair; insurance costs; administration and salary expenses; and
 1602  reserves if maintained by the association.
 1603         (c) If 20 percent of the parcel owners petition the board
 1604  for a level of financial reporting higher than that required by
 1605  this section, the association shall duly notice and hold a
 1606  meeting of members within 30 days of receipt of the petition for
 1607  the purpose of voting on raising the level of reporting for that
 1608  fiscal year. Upon approval of a majority of the total voting
 1609  interests of the parcel owners, the association shall prepare or
 1610  cause to be prepared, shall amend the budget or adopt a special
 1611  assessment to pay for the financial report regardless of any
 1612  provision to the contrary in the governing documents, and shall
 1613  provide within 90 days of the meeting or the end of the fiscal
 1614  year, whichever occurs later:
 1615         1. Compiled, reviewed, or audited financial statements, if
 1616  the association is otherwise required to prepare a report of
 1617  cash receipts and expenditures;
 1618         2. Reviewed or audited financial statements, if the
 1619  association is otherwise required to prepare compiled financial
 1620  statements; or
 1621         3. Audited financial statements if the association is
 1622  otherwise required to prepare reviewed financial statements.
 1623         (d) If approved by a majority of the voting interests
 1624  present at a properly called meeting of the association, an
 1625  association may prepare or cause to be prepared:
 1626         1. A report of cash receipts and expenditures in lieu of a
 1627  compiled, reviewed, or audited financial statement;
 1628         2. A report of cash receipts and expenditures or a compiled
 1629  financial statement in lieu of a reviewed or audited financial
 1630  statement; or
 1631         3. A report of cash receipts and expenditures, a compiled
 1632  financial statement, or a reviewed financial statement in lieu
 1633  of an audited financial statement.
 1634         Section 13. Paragraph (a) of subsection (9) of section
 1635  720.306, Florida Statutes, is amended to read:
 1636         720.306 Meetings of members; voting and election
 1637  procedures; amendments.—
 1638         (9) ELECTIONS AND BOARD VACANCIES.—
 1639         (a) Elections of directors must be conducted in accordance
 1640  with the procedures set forth in the governing documents of the
 1641  association. Except as provided in paragraph (b), all members of
 1642  the association are eligible to serve on the board of directors,
 1643  and a member may nominate himself or herself as a candidate for
 1644  the board at a meeting where the election is to be held;
 1645  provided, however, that if the election process allows
 1646  candidates to be nominated in advance of the meeting, the
 1647  association is not required to allow nominations at the meeting.
 1648  An election is not required unless more candidates are nominated
 1649  than vacancies exist. If an election is not required because
 1650  there are either an equal number or fewer qualified candidates
 1651  than vacancies exist, and if nominations from the floor are not
 1652  required pursuant to this section or the bylaws, write-in
 1653  nominations are not permitted and such candidates shall commence
 1654  service on the board of directors, regardless of whether a
 1655  quorum is attained at the annual meeting. Except as otherwise
 1656  provided in the governing documents, boards of directors must be
 1657  elected by a plurality of the votes cast by eligible voters. Any
 1658  challenge to the election process must be commenced within 60
 1659  days after the election results are announced.
 1660         Section 14. Paragraph (b) of subsection (3) of section
 1661  720.3085, Florida Statutes, is amended to read:
 1662         720.3085 Payment for assessments; lien claims.—
 1663         (3) Assessments and installments on assessments that are
 1664  not paid when due bear interest from the due date until paid at
 1665  the rate provided in the declaration of covenants or the bylaws
 1666  of the association, which rate may not exceed the rate allowed
 1667  by law. If no rate is provided in the declaration or bylaws,
 1668  interest accrues at the rate of 18 percent per year.
 1669         (b) Any payment received by an association and accepted
 1670  shall be applied first to any interest accrued, then to any
 1671  administrative late fee, then to any costs and reasonable
 1672  attorney fees incurred in collection, and then to the delinquent
 1673  assessment. This paragraph applies notwithstanding any
 1674  restrictive endorsement, designation, or instruction placed on
 1675  or accompanying a payment. A late fee is not subject to the
 1676  provisions of chapter 687 and is not a fine. The foregoing is
 1677  applicable notwithstanding s. 673.3111, any purported accord and
 1678  satisfaction, or any restrictive endorsement, designation, or
 1679  instruction placed on or accompanying a payment. The preceding
 1680  sentence is intended to clarify existing law.
 1681         Section 15. Paragraph (a) of subsection (1) of section
 1682  720.401, Florida Statutes, is amended to read:
 1683         720.401 Prospective purchasers subject to association
 1684  membership requirement; disclosure required; covenants;
 1685  assessments; contract cancellation.—
 1686         (1)(a) A prospective parcel owner in a community must be
 1687  presented a disclosure summary before executing the contract for
 1688  sale. The disclosure summary must be in a form substantially
 1689  similar to the following form:
 1690                         DISCLOSURE SUMMARY                        
 1691                                 FOR                               
 1692                         (NAME OF COMMUNITY)                       
 1693         1. AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL
 1694  BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS’ ASSOCIATION.
 1695         2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
 1696  COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
 1697  COMMUNITY.
 1698         3. YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE
 1699  ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF
 1700  APPLICABLE, THE CURRENT AMOUNT IS $.... PER ..... YOU WILL ALSO
 1701  BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE
 1702  ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE.
 1703  IF APPLICABLE, THE CURRENT AMOUNT IS $.... PER .....
 1704         4. YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE
 1705  RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL
 1706  ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
 1707         5. YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS
 1708  LEVIED BY A MANDATORY HOMEOWNERS’ ASSOCIATION COULD RESULT IN A
 1709  LIEN ON YOUR PROPERTY.
 1710         6. THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES
 1711  FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN
 1712  OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS’ ASSOCIATION. IF
 1713  APPLICABLE, THE CURRENT AMOUNT IS $.... PER .....
 1714         7.THE BUDGET OF THE ASSOCIATION MAY NOT INCLUDE RESERVE
 1715  FUNDS FOR DEFERRED MAINTENANCE SUFFICIENT TO COVER THE FULL COST
 1716  OF DEFERRED MAINTENANCE OF COMMON AREAS. YOU SHOULD REVIEW THE
 1717  BUDGET TO DETERMINE THE LEVEL OF RESERVE FUNDING, IF ANY.
 1718         8.7. THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE
 1719  RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION
 1720  MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS.
 1721         9.8. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
 1722  ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU
 1723  SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING
 1724  DOCUMENTS BEFORE PURCHASING PROPERTY.
 1725         10.9. THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD
 1726  AND CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE
 1727  THE PROPERTY IS LOCATED, OR ARE NOT RECORDED AND CAN BE OBTAINED
 1728  FROM THE DEVELOPER.
 1729  
 1730  DATE:					
 1731  PURCHASER:
 1732  PURCHASER:
 1733  
 1734  The disclosure must be supplied by the developer, or by the
 1735  parcel owner if the sale is by an owner that is not the
 1736  developer. Any contract or agreement for sale shall refer to and
 1737  incorporate the disclosure summary and shall include, in
 1738  prominent language, a statement that the potential buyer should
 1739  not execute the contract or agreement until they have received
 1740  and read the disclosure summary required by this section.
 1741         Section 16. This act shall take effect July 1, 2017.
 1742  
 1743  ================= T I T L E  A M E N D M E N T ================
 1744  And the title is amended as follows:
 1745         Delete everything before the enacting clause
 1746  and insert:
 1747                        A bill to be entitled                      
 1748         An act relating to community associations; creating s.
 1749         633.2225, F.S.; requiring certain condominium or
 1750         cooperative associations to post certain signs or
 1751         symbols on buildings; requiring the State Fire Marshal
 1752         to ensure that the dimensions and placement of the
 1753         signs or symbols do not diminish the aesthetic value
 1754         of the buildings on which they are placed and to adopt
 1755         rules governing such signs or symbols; providing for
 1756         enforcement; providing penalties; amending s. 718.111,
 1757         F.S.; revising reporting requirements; amending s.
 1758         718.112, F.S.; authorizing an association to adopt
 1759         rules for posting certain notices on a website;
 1760         revising provisions relating to required condominium
 1761         and cooperative association bylaws; revising
 1762         provisions relating to evidence of condominium and
 1763         cooperative association compliance with the fire and
 1764         life safety code; revising unit and common elements
 1765         required to be retrofitted; revising provisions
 1766         relating to an association vote to forego
 1767         retrofitting; providing applicability; amending s.
 1768         718.113, F.S.; revising voting requirements relating
 1769         to alterations and additions to certain common
 1770         elements or association property; amending s. 718.117,
 1771         F.S.; providing legislative findings; revising voting
 1772         requirements for the rejection of a plan of
 1773         termination; increasing the amount of time to consider
 1774         a plan of termination under certain conditions;
 1775         revising applicability; revising the requirements to
 1776         qualify for payment as a homestead owner if the owner
 1777         has rejected a plan of termination; revising and
 1778         providing notice requirements; requiring the
 1779         Department of Business and Professional Regulation to
 1780         review and approve a plan of termination; providing
 1781         applicability; providing an appropriation and
 1782         authorizing a position; amending s. 719.104, F.S.;
 1783         revising recordkeeping and reporting requirements;
 1784         amending s. 719.1055, F.S.; revising provisions
 1785         relating to required condominium and cooperative
 1786         association bylaws; revising provisions relating to
 1787         evidence of condominium and cooperative association
 1788         compliance with the fire and life safety code;
 1789         revising unit and common elements required to be
 1790         retrofitted; revising provisions relating to an
 1791         association vote to forego retrofitting; providing
 1792         applicability; amending s. 719.106, F.S.; revising
 1793         requirements to serve as a board member; prohibiting a
 1794         board member from voting via e-mail; requiring that
 1795         directors who are delinquent in certain payments owed
 1796         in excess of certain periods of time be deemed to have
 1797         abandoned their offices; authorizing an association to
 1798         adopt rules for posting certain notices on a website;
 1799         amending s. 719.107, F.S.; specifying certain services
 1800         which are obtained pursuant to a bulk contract to be
 1801         deemed a common expense; amending s. 720.303, F.S.;
 1802         prohibiting a board member from voting via e-mail;
 1803         revising certain notice requirements relating to board
 1804         meetings; revising and providing budget requirements;
 1805         providing an exemption to certain requirements;
 1806         revising financial reporting requirements; authorizing
 1807         an association to adopt rules for posting certain
 1808         notices on a website; amending s. 720.306, F.S.;
 1809         revising election requirements; amending s. 720.3085,
 1810         F.S.; providing applicability; amending s. 720.401,
 1811         F.S.; revising the disclosure summary form; providing
 1812         an effective date.