Florida Senate - 2017                        COMMITTEE AMENDMENT
       Bill No. SB 744
       
       
       
       
       
       
                                Ì8464265Î846426                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/29/2017           .                                
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       The Committee on Regulated Industries (Passidomo) recommended
       the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 552 - 1096
    4  and insert:
    5         Section 3. Subsection (2) of section 718.113, Florida
    6  Statutes, is amended to read:
    7         718.113 Maintenance; limitation upon improvement; display
    8  of flag; hurricane shutters and protection; display of religious
    9  decorations.—
   10         (2)(a) Except as otherwise provided in this section, there
   11  shall be no material alteration or substantial additions to the
   12  common elements or to real property which is association
   13  property, except in a manner provided in the declaration as
   14  originally recorded or as amended under the procedures provided
   15  therein. If the declaration as originally recorded or as amended
   16  under the procedures provided therein does not specify the
   17  procedure for approval of material alterations or substantial
   18  additions, 75 percent of the total voting interests of the
   19  association must approve the alterations or additions before the
   20  material alterations or substantial additions are commenced.
   21  This paragraph is intended to clarify existing law and applies
   22  to associations existing on the effective date of this act
   23  October 1, 2008.
   24         (b) There shall not be any material alteration of, or
   25  substantial addition to, the common elements of any condominium
   26  operated by a multicondominium association unless approved in
   27  the manner provided in the declaration of the affected
   28  condominium or condominiums as originally recorded or as amended
   29  under the procedures provided therein. If a declaration as
   30  originally recorded or as amended under the procedures provided
   31  therein does not specify a procedure for approving such an
   32  alteration or addition, the approval of 75 percent of the total
   33  voting interests of each affected condominium is required before
   34  the material alterations or substantial additions are commenced.
   35  This subsection does not prohibit a provision in any
   36  declaration, articles of incorporation, or bylaws as originally
   37  recorded or as amended under the procedures provided therein
   38  requiring the approval of unit owners in any condominium
   39  operated by the same association or requiring board approval
   40  before a material alteration or substantial addition to the
   41  common elements is permitted. This paragraph is intended to
   42  clarify existing law and applies to associations existing on the
   43  effective date of this act.
   44         (c) There shall not be any material alteration or
   45  substantial addition made to association real property operated
   46  by a multicondominium association, except as provided in the
   47  declaration, articles of incorporation, or bylaws as originally
   48  recorded or as amended under the procedures provided therein. If
   49  the declaration, articles of incorporation, or bylaws as
   50  originally recorded or as amended under the procedures provided
   51  therein do not specify the procedure for approving an alteration
   52  or addition to association real property, the approval of 75
   53  percent of the total voting interests of the association is
   54  required before the material alterations or substantial
   55  additions are commenced. This paragraph is intended to clarify
   56  existing law and applies to associations existing on the
   57  effective date of this act.
   58         Section 4. Section 718.707, Florida Statutes, is amended to
   59  read:
   60         718.707 Time limitation for classification as bulk assignee
   61  or bulk buyer.—A person acquiring condominium parcels may not be
   62  classified as a bulk assignee or bulk buyer unless the
   63  condominium parcels were acquired on or after July 1, 2010, but
   64  before July 1, 2018. The date of such acquisition shall be
   65  determined by the date of recording a deed or other instrument
   66  of conveyance for such parcels in the public records of the
   67  county in which the condominium is located, or by the date of
   68  issuing a certificate of title in a foreclosure proceeding with
   69  respect to such condominium parcels.
   70         Section 5. Paragraphs (a) and (b) of subsection (2) and
   71  paragraph (c) of subsection (4) of section 719.104, Florida
   72  Statutes, are amended to read:
   73         719.104 Cooperatives; access to units; records; financial
   74  reports; assessments; purchase of leases.—
   75         (2) OFFICIAL RECORDS.—
   76         (a) From the inception of the association, the association
   77  shall maintain a copy of each of the following, where
   78  applicable, which shall constitute the official records of the
   79  association:
   80         1. The plans, permits, warranties, and other items provided
   81  by the developer pursuant to s. 719.301(4).
   82         2. A photocopy of the cooperative documents.
   83         3. A copy of the current rules of the association.
   84         4. A book or books containing the minutes of all meetings
   85  of the association, of the board of directors, and of the unit
   86  owners, which minutes shall be retained for a period of not less
   87  than 7 years.
   88         5. A current roster of all unit owners and their mailing
   89  addresses, unit identifications, voting certifications, and, if
   90  known, telephone numbers. The association shall also maintain
   91  the electronic mailing addresses and the numbers designated by
   92  unit owners for receiving notice sent by electronic transmission
   93  of those unit owners consenting to receive notice by electronic
   94  transmission. The electronic mailing addresses and numbers
   95  provided by unit owners to receive notice by electronic
   96  transmission shall be removed from association records when
   97  consent to receive notice by electronic transmission is revoked.
   98  However, the association is not liable for an erroneous
   99  disclosure of the electronic mail address or the number for
  100  receiving electronic transmission of notices.
  101         6. All current insurance policies of the association.
  102         7. A current copy of any management agreement, lease, or
  103  other contract to which the association is a party or under
  104  which the association or the unit owners have an obligation or
  105  responsibility.
  106         8. Bills of sale or transfer for all property owned by the
  107  association.
  108         9. Accounting records for the association and separate
  109  accounting records for each unit it operates, according to good
  110  accounting practices. All accounting records shall be maintained
  111  for a period of not less than 7 years. The accounting records
  112  shall include, but not be limited to:
  113         a. Accurate, itemized, and detailed records of all receipts
  114  and expenditures.
  115         b. A current account and a monthly, bimonthly, or quarterly
  116  statement of the account for each unit designating the name of
  117  the unit owner, the due date and amount of each assessment, the
  118  amount paid upon the account, and the balance due.
  119         c. All audits, reviews, accounting statements, and
  120  financial reports of the association.
  121         d. All contracts for work to be performed. Bids for work to
  122  be performed shall also be considered official records and shall
  123  be maintained for a period of 1 year.
  124         10. Ballots, sign-in sheets, voting proxies, and all other
  125  papers and electronic records relating to voting by unit owners,
  126  which shall be maintained for a period of 1 year after the date
  127  of the election, vote, or meeting to which the document relates.
  128         11. All rental records where the association is acting as
  129  agent for the rental of units.
  130         12. A copy of the current question and answer sheet as
  131  described in s. 719.504.
  132         13. All other written records of the association not
  133  specifically included in the foregoing which are related to the
  134  operation of the association.
  135         (b) The official records of the association must be
  136  maintained within the state for at least 7 years. The records of
  137  the association shall be made available to a unit owner within
  138  45 miles of the cooperative property or within the county in
  139  which the cooperative property is located within 10 5 working
  140  days after receipt of written request by the board or its
  141  designee. This paragraph may be complied with by having a copy
  142  of the official records of the association available for
  143  inspection or copying on the cooperative property or the
  144  association may offer the option of making the records available
  145  to a unit owner electronically via the Internet or by allowing
  146  the records to be viewed in an electronic format on a computer
  147  screen and printed upon request. The association is not
  148  responsible for the use or misuse of the information provided to
  149  an association member or his or her authorized representative
  150  pursuant to the compliance requirements of this chapter unless
  151  the association has an affirmative duty not to disclose such
  152  information pursuant to this chapter.
  153         (4) FINANCIAL REPORT.—
  154         (c)1. An association with total annual revenues of less
  155  than $150,000 shall prepare a report of cash receipts and
  156  expenditures.
  157         2.An association in a community of fewer than 50 units,
  158  regardless of the association’s annual revenues, shall prepare a
  159  report of cash receipts and expenditures in lieu of the
  160  financial statements required by paragraph (b), unless the
  161  declaration or other recorded governing documents provide
  162  otherwise.
  163         2.3. A report of cash receipts and expenditures must
  164  disclose the amount of receipts by accounts and receipt
  165  classifications and the amount of expenses by accounts and
  166  expense classifications, including the following, as applicable:
  167  costs for security, professional, and management fees and
  168  expenses; taxes; costs for recreation facilities; expenses for
  169  refuse collection and utility services; expenses for lawn care;
  170  costs for building maintenance and repair; insurance costs;
  171  administration and salary expenses; and reserves, if maintained
  172  by the association.
  173         Section 6. Subsection (5) of section 719.1055, Florida
  174  Statutes, is amended to read:
  175         719.1055 Amendment of cooperative documents; alteration and
  176  acquisition of property.—
  177         (5) The bylaws must include a provision whereby a
  178  certificate of compliance from a licensed electrical contractor
  179  or electrician may be accepted by the association’s board as
  180  evidence of compliance of the cooperative units with the
  181  applicable fire and life safety code.
  182         (a)1. Notwithstanding chapter 633, s. 509.215, s.
  183  553.895(1), or any other code, statute, ordinance,
  184  administrative rule, or regulation, or any interpretation of the
  185  foregoing, an association a cooperative or unit owner is not
  186  obligated to retrofit the common elements or units of a
  187  residential cooperative with a fire sprinkler system or other
  188  engineered lifesafety system in a building that is 75 feet or
  189  less in height. There is no obligation to retrofit for a
  190  building greater than 75 feet in height, calculated from the
  191  lowest level of fire department vehicle access to the floor of
  192  the highest occupiable story has been certified for occupancy by
  193  the applicable governmental entity if the unit owners have voted
  194  to forego such retrofitting by the affirmative vote of a
  195  majority of all voting interests in the affected cooperative.
  196  There is no requirement that owners in cooperatives of 75 feet
  197  or less conduct an opt-out vote and such cooperatives are exempt
  198  from fire sprinkler or other engineered lifesafety retrofitting.
  199  The preceding sentence is intended to clarify existing law. The
  200  local authority having jurisdiction may not require completion
  201  of retrofitting with a fire sprinkler system or other engineered
  202  lifesafety system before January 1, 2022 the end of 2019. By
  203  December 31, 2018 2016, a cooperative that is not in compliance
  204  with the requirements for a fire sprinkler system or other
  205  engineered lifesafety system and has not voted to forego
  206  retrofitting of such a system must initiate an application for a
  207  building permit for the required installation with the local
  208  government having jurisdiction demonstrating that the
  209  cooperative will become compliant by December 31, 2021 2019.
  210         2. A vote to forego required retrofitting may be obtained
  211  by limited proxy or by a ballot personally cast at a duly called
  212  membership meeting, or by execution of a written consent by the
  213  member, or by electronic voting, and is effective upon recording
  214  a certificate executed by an officer or agent of the association
  215  attesting to such vote in the public records of the county where
  216  the cooperative is located. When the opt-out vote is to be
  217  conducted at a meeting, the cooperative shall mail or hand
  218  deliver to each unit owner written notice at least 14 days
  219  before the membership meeting in which the vote to forego
  220  retrofitting of the required fire sprinkler system or other
  221  engineered lifesafety system is to take place. Within 30 days
  222  after the cooperative’s opt-out vote, notice of the results of
  223  the opt-out vote must be mailed or hand delivered to all unit
  224  owners. Evidence of compliance with this notice requirement must
  225  be made by affidavit executed by the person providing the notice
  226  and filed among the official records of the cooperative. Failure
  227  to provide timely notice to unit owners does not invalidate an
  228  otherwise valid opt-out vote if notice of the results is
  229  provided to the owners. After notice is provided to each owner,
  230  a copy must be provided by the current owner to a new owner
  231  before closing and by a unit owner to a renter before signing a
  232  lease.
  233         (b) If there has been a previous vote to forego
  234  retrofitting, a vote to require retrofitting may be obtained at
  235  a special meeting of the unit owners called by a petition of
  236  least 10 percent of the voting interests or by a majority of the
  237  board of directors. Such vote may only be called once every 3
  238  years. Notice must be provided as required for any regularly
  239  called meeting of the unit owners, and the notice must state the
  240  purpose of the meeting. Electronic transmission may not be used
  241  to provide notice of a meeting called in whole or in part for
  242  this purpose.
  243         (c) As part of the information collected annually from
  244  cooperatives, the division shall require associations to report
  245  the membership vote and recording of a certificate under this
  246  subsection and, if retrofitting has been undertaken, the per
  247  unit cost of such work. The division shall annually report to
  248  the Division of State Fire Marshal of the Department of
  249  Financial Services the number of cooperatives that have elected
  250  to forego retrofitting. Compliance with this administrative
  251  reporting requirement does not affect the validity of an opt-out
  252  vote.
  253         Section 7. Paragraphs (a) and (c) of subsection (1) of
  254  section 719.106, Florida Statutes, are amended, and paragraph
  255  (m) is added to that subsection, to read:
  256         719.106 Bylaws; cooperative ownership.—
  257         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
  258  documents shall provide for the following, and if they do not,
  259  they shall be deemed to include the following:
  260         (a) Administration.—
  261         1. The form of administration of the association shall be
  262  described, indicating the titles of the officers and board of
  263  administration and specifying the powers, duties, manner of
  264  selection and removal, and compensation, if any, of officers and
  265  board members. In the absence of such a provision, the board of
  266  administration shall be composed of five members, except in the
  267  case of cooperatives having five or fewer units, in which case
  268  in not-for-profit corporations, the board shall consist of not
  269  fewer than three members. In a residential cooperative
  270  association of more than 10 units, co-owners of a unit may not
  271  serve as members of the board of directors at the same time
  272  unless the co-owners own more than one unit or unless there are
  273  not enough eligible candidates to fill the vacancies on the
  274  board at the time of the vacancy. In the absence of provisions
  275  to the contrary, the board of administration shall have a
  276  president, a secretary, and a treasurer, who shall perform the
  277  duties of those offices customarily performed by officers of
  278  corporations. Unless prohibited in the bylaws, the board of
  279  administration may appoint other officers and grant them those
  280  duties it deems appropriate. Unless otherwise provided in the
  281  bylaws, the officers shall serve without compensation and at the
  282  pleasure of the board. Unless otherwise provided in the bylaws,
  283  the members of the board shall serve without compensation.
  284         2. A person who has been suspended or removed by the
  285  division under this chapter, or who is delinquent in the payment
  286  of any monetary obligation due to the association, is not
  287  eligible to be a candidate for board membership and may not be
  288  listed on the ballot. A director or officer charged by
  289  information or indictment with a felony theft or embezzlement
  290  offense involving the association’s funds or property is
  291  suspended from office. The board shall fill the vacancy
  292  according to general law until the end of the period of the
  293  suspension or the end of the director’s term of office,
  294  whichever occurs first. However, if the charges are resolved
  295  without a finding of guilt or without acceptance of a plea of
  296  guilty or nolo contendere, the director or officer shall be
  297  reinstated for any remainder of his or her term of office. A
  298  member who has such criminal charges pending may not be
  299  appointed or elected to a position as a director or officer. A
  300  person who has been convicted of any felony in this state or in
  301  any United States District Court, or who has been convicted of
  302  any offense in another jurisdiction which would be considered a
  303  felony if committed in this state, is not eligible for board
  304  membership unless such felon’s civil rights have been restored
  305  for at least 5 years as of the date such person seeks election
  306  to the board. The validity of an action by the board is not
  307  affected if it is later determined that a board member is
  308  ineligible for board membership due to having been convicted of
  309  a felony.
  310         3. When a unit owner files a written inquiry by certified
  311  mail with the board of administration, the board shall respond
  312  in writing to the unit owner within 30 days of receipt of the
  313  inquiry. The board’s response shall either give a substantive
  314  response to the inquirer, notify the inquirer that a legal
  315  opinion has been requested, or notify the inquirer that advice
  316  has been requested from the division. If the board requests
  317  advice from the division, the board shall, within 10 days of its
  318  receipt of the advice, provide in writing a substantive response
  319  to the inquirer. If a legal opinion is requested, the board
  320  shall, within 60 days after the receipt of the inquiry, provide
  321  in writing a substantive response to the inquirer. The failure
  322  to provide a substantive response to the inquirer as provided
  323  herein precludes the board from recovering attorney’s fees and
  324  costs in any subsequent litigation, administrative proceeding,
  325  or arbitration arising out of the inquiry. The association may,
  326  through its board of administration, adopt reasonable rules and
  327  regulations regarding the frequency and manner of responding to
  328  the unit owners’ inquiries, one of which may be that the
  329  association is obligated to respond to only one written inquiry
  330  per unit in any given 30-day period. In such case, any
  331  additional inquiry or inquiries must be responded to in the
  332  subsequent 30-day period, or periods, as applicable.
  333         (c) Board of administration meetings.Members of the board
  334  of administration may use e-mail as a means of communication but
  335  may not cast a vote on an association matter via e-mail.
  336  Meetings of the board of administration at which a quorum of the
  337  members is present shall be open to all unit owners. Any unit
  338  owner may tape record or videotape meetings of the board of
  339  administration. The right to attend such meetings includes the
  340  right to speak at such meetings with reference to all designated
  341  agenda items. The division shall adopt reasonable rules
  342  governing the tape recording and videotaping of the meeting. The
  343  association may adopt reasonable written rules governing the
  344  frequency, duration, and manner of unit owner statements.
  345  Adequate notice of all meetings shall be posted in a conspicuous
  346  place upon the cooperative property at least 48 continuous hours
  347  preceding the meeting, except in an emergency. Any item not
  348  included on the notice may be taken up on an emergency basis by
  349  at least a majority plus one of the members of the board. Such
  350  emergency action shall be noticed and ratified at the next
  351  regular meeting of the board. Notice of any meeting in which
  352  regular or special assessments against unit owners are to be
  353  considered must specifically state that assessments will be
  354  considered and provide the estimated amount and description of
  355  the purposes for such assessments. However, Written notice of
  356  any meeting at which nonemergency special assessments, or at
  357  which amendment to rules regarding unit use, will be considered
  358  shall be mailed, delivered, or electronically transmitted to the
  359  unit owners and posted conspicuously on the cooperative property
  360  not less than 14 days before the meeting. Evidence of compliance
  361  with this 14-day notice shall be made by an affidavit executed
  362  by the person providing the notice and filed among the official
  363  records of the association. Upon notice to the unit owners, the
  364  board shall by duly adopted rule designate a specific location
  365  on the cooperative property upon which all notices of board
  366  meetings shall be posted. In lieu of or in addition to the
  367  physical posting of notice of any meeting of the board of
  368  administration on the cooperative property, the association may,
  369  by reasonable rule, adopt a procedure for conspicuously posting
  370  and repeatedly broadcasting the notice and the agenda on a
  371  closed-circuit cable television system serving the cooperative
  372  association. However, if broadcast notice is used in lieu of a
  373  notice posted physically on the cooperative property, the notice
  374  and agenda must be broadcast at least four times every broadcast
  375  hour of each day that a posted notice is otherwise required
  376  under this section. When broadcast notice is provided, the
  377  notice and agenda must be broadcast in a manner and for a
  378  sufficient continuous length of time so as to allow an average
  379  reader to observe the notice and read and comprehend the entire
  380  content of the notice and the agenda. In addition to any of the
  381  authorized means of providing notice of a meeting of the board,
  382  the association may, by rule, adopt a procedure for
  383  conspicuously posting the meeting notice and the agenda on a
  384  website serving the cooperative association for at least the
  385  minimum period of time for which a notice of a meeting is also
  386  required to be physically posted on the cooperative property.
  387  Any rule adopted shall, in addition to other matters, include a
  388  requirement that the association send an electronic notice
  389  providing a hypertext link to the website where the notice is
  390  posted. Notice of any meeting in which regular assessments
  391  against unit owners are to be considered for any reason shall
  392  specifically contain a statement that assessments will be
  393  considered and the nature of any such assessments. Meetings of a
  394  committee to take final action on behalf of the board or to make
  395  recommendations to the board regarding the association budget
  396  are subject to the provisions of this paragraph. Meetings of a
  397  committee that does not take final action on behalf of the board
  398  or make recommendations to the board regarding the association
  399  budget are subject to the provisions of this section, unless
  400  those meetings are exempted from this section by the bylaws of
  401  the association. Notwithstanding any other law to the contrary,
  402  the requirement that board meetings and committee meetings be
  403  open to the unit owners does not apply to board or committee
  404  meetings held for the purpose of discussing personnel matters or
  405  meetings between the board or a committee and the association’s
  406  attorney, with respect to proposed or pending litigation, if the
  407  meeting is held for the purpose of seeking or rendering legal
  408  advice.
  409         (m)Director or officer delinquencies.—A director or
  410  officer more than 90 days delinquent in the payment of any
  411  monetary obligation due the association shall be deemed to have
  412  abandoned the office, creating a vacancy in the office to be
  413  filled according to law.
  414         Section 8. Paragraph (b) of subsection (1) of section
  415  719.107, Florida Statutes, is amended to read:
  416         719.107 Common expenses; assessment.—
  417         (1)
  418         (b) If so provided in the bylaws, the cost of a master
  419  antenna television system or duly franchised cable television
  420  service, communications services as defined in chapter 202,
  421  information services, or Internet services obtained pursuant to
  422  a bulk contract shall be deemed a common expense, and if not
  423  obtained pursuant to a bulk contract, such cost shall be
  424  considered common expense if it is designated as such in a
  425  written contract between the board of administration and the
  426  company providing the master television antenna system or the
  427  cable television service, communications services as defined in
  428  chapter 202, information services, or Internet services. The
  429  contract shall be for a term of not less than 2 years.
  430         1. Any contract made by the board after April 2, 1992, for
  431  a community antenna system or duly franchised cable television
  432  service, communications services as defined in chapter 202,
  433  information services, or Internet services may be canceled by a
  434  majority of the voting interests present at the next regular or
  435  special meeting of the association. Any member may make a motion
  436  to cancel the contract, but if no motion is made or if such
  437  motion fails to obtain the required majority at the next regular
  438  or special meeting, whichever is sooner, following the making of
  439  the contract, then such contract shall be deemed ratified for
  440  the term therein expressed.
  441         2. Any such contract shall provide, and shall be deemed to
  442  provide if not expressly set forth, that any hearing impaired or
  443  legally blind unit owner who does not occupy the unit with a
  444  nonhearing impaired or sighted person may discontinue the
  445  service without incurring disconnect fees, penalties, or
  446  subsequent service charges, and as to such units, the owners
  447  shall not be required to pay any common expenses charge related
  448  to such service. If less than all members of an association
  449  share the expenses of cable television, the expense shall be
  450  shared equally by all participating unit owners. The association
  451  may use the provisions of s. 719.108 to enforce payment of the
  452  shares of such costs by the unit owners receiving cable
  453  television.
  454         Section 9. Paragraphs (a) and (c) of subsection (2) and
  455  subsections (6) and (7) of section 720.303, Florida Statutes,
  456  are amended to read:
  457         720.303 Association powers and duties; meetings of board;
  458  official records; budgets; budget meetings; financial reporting;
  459  association funds; recalls.—
  460         (2) BOARD MEETINGS.—
  461         (a) Members of the board of administration may use e-mail
  462  as a means of communication, but may not cast a vote on an
  463  association matter via e-mail. A meeting of the board of
  464  directors of an association occurs whenever a quorum of the
  465  board gathers to conduct association business. Meetings of the
  466  board must be open to all members, except for meetings between
  467  the board and its attorney with respect to proposed or pending
  468  litigation where the contents of the discussion would otherwise
  469  be governed by the attorney-client privilege. A meeting of the
  470  board must be held at a location that is accessible to a
  471  physically handicapped person if requested by a physically
  472  handicapped person who has a right to attend the meeting. The
  473  provisions of this subsection shall also apply to the meetings
  474  of any committee or other similar body when a final decision
  475  will be made regarding the expenditure of association funds and
  476  to meetings of any body vested with the power to approve or
  477  disapprove architectural decisions with respect to a specific
  478  parcel of residential property owned by a member of the
  479  community.
  480         (c) The bylaws shall provide the following for giving
  481  notice to parcel owners and members of all board meetings and,
  482  if they do not do so, shall be deemed to include provide the
  483  following:
  484         1. Notices of all board meetings must be posted in a
  485  conspicuous place in the community at least 48 hours in advance
  486  of a meeting, except in an emergency. In the alternative, if
  487  notice is not posted in a conspicuous place in the community,
  488  notice of each board meeting must be mailed or delivered to each
  489  member at least 7 days before the meeting, except in an
  490  emergency. Notwithstanding this general notice requirement, for
  491  communities with more than 100 members, the association bylaws
  492  may provide for a reasonable alternative to posting or mailing
  493  of notice for each board meeting, including publication of
  494  notice, provision of a schedule of board meetings, or the
  495  conspicuous posting and repeated broadcasting of the notice on a
  496  closed-circuit cable television system serving the homeowners’
  497  association. However, if broadcast notice is used in lieu of a
  498  notice posted physically in the community, the notice must be
  499  broadcast at least four times every broadcast hour of each day
  500  that a posted notice is otherwise required. When broadcast
  501  notice is provided, the notice and agenda must be broadcast in a
  502  manner and for a sufficient continuous length of time so as to
  503  allow an average reader to observe the notice and read and
  504  comprehend the entire content of the notice and the agenda. The
  505  association may provide notice by electronic transmission in a
  506  manner authorized by law for meetings of the board of directors,
  507  committee meetings requiring notice under this section, and
  508  annual and special meetings of the members to any member who has
  509  provided a facsimile number or e-mail address to the association
  510  to be used for such purposes; however, a member must consent in
  511  writing to receiving notice by electronic transmission.
  512         2. An assessment may not be levied at a board meeting
  513  unless the notice of the meeting includes a statement that
  514  assessments will be considered and the nature of the
  515  assessments. Written notice of any meeting at which special
  516  assessments will be considered or at which amendments to rules
  517  regarding parcel use will be considered must be mailed,
  518  delivered, or electronically transmitted to the members and
  519  parcel owners and posted conspicuously on the property or
  520  broadcast on closed-circuit cable television not less than 14
  521  days before the meeting.
  522         3. Directors may not vote by proxy or by secret ballot at
  523  board meetings, except that secret ballots may be used in the
  524  election of officers. This subsection also applies to the
  525  meetings of any committee or other similar body, when a final
  526  decision will be made regarding the expenditure of association
  527  funds, and to any body vested with the power to approve or
  528  disapprove architectural decisions with respect to a specific
  529  parcel of residential property owned by a member of the
  530  community.
  531         (6) BUDGETS; BUDGET MEETINGS.—
  532         (a) The association shall prepare an annual budget that
  533  sets out the annual operating expenses. The budget must reflect
  534  the estimated revenues and expenses for that year and the
  535  estimated surplus or deficit as of the end of the current year.
  536  The budget must set out separately all fees or charges paid for
  537  by the association for recreational amenities, whether owned by
  538  the association, the developer, or another person. The
  539  association shall provide each member with a copy of the annual
  540  budget or a written notice that a copy of the budget is
  541  available upon request at no charge to the member. The copy must
  542  be provided to the member within the time limits set forth in
  543  subsection (5).
  544         (b) In addition to annual operating expenses, the budget
  545  must may include reserve accounts for capital expenditures and
  546  deferred maintenance for which are obligations of the
  547  association under is responsible. If reserve accounts are not
  548  established pursuant to paragraph (d), funding of such reserves
  549  is limited to the extent that the governing documents for any
  550  item that has a deferred maintenance expense or replacement cost
  551  that exceeds $10,000. The amount to be reserved must be computed
  552  using a formula based upon estimated remaining useful life and
  553  estimated replacement cost or deferred maintenance expense of
  554  each reserve item. The association may adjust replacement
  555  reserve limit increases in assessments annually to take into
  556  account any changes in estimates or extension of the useful life
  557  of a reserve item caused by deferred maintenance. This
  558  subsection does not apply to a budget adopted by the members of
  559  an association by a majority vote at a duly called meeting,
  560  including reserves. If the budget of the association to provide
  561  no reserves or less reserves than required by this subsection
  562  includes reserve accounts established pursuant to paragraph (d),
  563  such reserves shall be determined, maintained, and waived in the
  564  manner provided in this subsection. Once an association provides
  565  for reserve accounts pursuant to paragraph (d), the association
  566  shall thereafter determine, maintain, and waive reserves in
  567  compliance with this subsection. This section does not preclude
  568  the termination of a reserve account established pursuant to
  569  this paragraph upon approval of a majority of the total voting
  570  interests of the association. Upon such approval, the
  571  terminating reserve account shall be removed from the budget.
  572         (c)1.Before turnover of control of an If the budget of the
  573  association pursuant to s. 720.307, the developer may vote the
  574  voting interests allocated to its parcels to waive the reserves
  575  or reduce the funding of reserves through the period expiring at
  576  the end of the second fiscal year after the fiscal year in which
  577  the governing documents are initially recorded or an instrument
  578  that transfers title to a parcel subject to the governing
  579  documents which is not accompanied by a recorded assignment of
  580  developer rights in favor of the grantee of such parcel is
  581  recorded, whichever occurs first, after which time reserves may
  582  be waived or reduced only upon the vote of a majority of all
  583  nondeveloper voting interests voting in person or by limited
  584  proxy at a duly called meeting of the association. does not
  585  provide for reserve accounts pursuant to paragraph (d) and the
  586  association is responsible for the repair and maintenance of
  587  capital improvements that may result in a special assessment if
  588  reserves are not provided, each financial report for the
  589  preceding fiscal year required by subsection (7) must contain
  590  the following statement in conspicuous type:
  591  THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR RESERVE
  592  ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT
  593  MAY RESULT IN SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE
  594  FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6), FLORIDA
  595  STATUTES, UPON OBTAINING THE APPROVAL OF A MAJORITY OF THE TOTAL
  596  VOTING INTERESTS OF THE ASSOCIATION BY VOTE OF THE MEMBERS AT A
  597  MEETING OR BY WRITTEN CONSENT.
  598         2.If the budget of the association does provide for
  599  funding accounts for deferred expenditures, including, but not
  600  limited to, funds for capital expenditures and deferred
  601  maintenance, but such accounts are not created or established
  602  pursuant to paragraph (d), each financial report for the
  603  preceding fiscal year required under subsection (7) must also
  604  contain the following statement in conspicuous type:
  605  THE BUDGET OF THE ASSOCIATION PROVIDES FOR LIMITED VOLUNTARY
  606  DEFERRED EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES
  607  AND DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED
  608  IN OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED
  609  TO PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6),
  610  FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT TO THE
  611  RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR
  612  ARE RESERVES CALCULATED IN ACCORDANCE WITH THAT STATUTE.
  613         (d)An association is deemed to have provided for reserve
  614  accounts if reserve accounts have been initially established by
  615  the developer or if the membership of the association
  616  affirmatively elects to provide for reserves. If reserve
  617  accounts are established by the developer, the budget must
  618  designate the components for which the reserve accounts may be
  619  used. If reserve accounts are not initially provided by the
  620  developer, the membership of the association may elect to do so
  621  upon the affirmative approval of a majority of the total voting
  622  interests of the association. Such approval may be obtained by
  623  vote of the members at a duly called meeting of the membership
  624  or by the written consent of a majority of the total voting
  625  interests of the association. The approval action of the
  626  membership must state that reserve accounts shall be provided
  627  for in the budget and must designate the components for which
  628  the reserve accounts are to be established. Upon approval by the
  629  membership, the board of directors shall include the required
  630  reserve accounts in the budget in the next fiscal year following
  631  the approval and each year thereafter. Once established as
  632  provided in this subsection, the reserve accounts must be funded
  633  or maintained or have their funding waived in the manner
  634  provided in paragraph (f).
  635         (e)The amount to be reserved in any account established
  636  shall be computed by means of a formula that is based upon
  637  estimated remaining useful life and estimated replacement cost
  638  or deferred maintenance expense of each reserve item. The
  639  association may adjust replacement reserve assessments annually
  640  to take into account any changes in estimates of cost or useful
  641  life of a reserve item.
  642         (f)After one or more reserve accounts are established, the
  643  membership of the association, upon a majority vote at a meeting
  644  at which a quorum is present, may provide for no reserves or
  645  less reserves than required by this section. If a meeting of the
  646  parcel unit owners has been called to determine whether to waive
  647  or reduce the funding of reserves and such result is not
  648  achieved or a quorum is not present, the reserves as included in
  649  the budget go into effect. After the turnover, the developer may
  650  vote its voting interest to waive or reduce the funding of
  651  reserves. Any vote taken pursuant to this subsection to waive or
  652  reduce reserves is applicable only to one budget year.
  653         (d)Reserve funds and any interest accruing thereon shall
  654  remain in the reserve account or accounts and may be used only
  655  for authorized reserve expenditures unless their use for other
  656  purposes is approved in advance by a majority vote at a duly
  657  called meeting of the association. Before turnover of control of
  658  an association by a developer to parcel owners other than the
  659  developer pursuant to s. 720.307, the developer-controlled
  660  association may not vote to use reserves for purposes other than
  661  those for which they were intended without the approval of a
  662  majority of all nondeveloper voting interests, voting in person
  663  or by limited proxy at a duly called meeting of the association.
  664         (e)The only voting interests eligible to vote on questions
  665  that involve waiving or reducing the funding of reserves, or
  666  using existing reserve funds for purposes other than purposes
  667  for which the reserves were intended, are the voting interests
  668  of the parcels subject to assessment to fund the reserves in
  669  question. Any vote taken pursuant to this subsection to waive or
  670  reduce reserves is applicable only to one budget year. Proxy
  671  questions relating to waiving or reducing the funding of
  672  reserves or using existing reserve funds for purposes other than
  673  purposes for which the reserves were intended must contain the
  674  following statement in capitalized, bold letters in a font size
  675  larger than any other used on the face of the proxy ballot:
  676  WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING
  677  ALTERNATIVE USES OF EXISTING RESERVES MAY RESULT IN PARCEL OWNER
  678  LIABILITY FOR PAYMENT OF UNANTICIPATED SPECIAL ASSESSMENTS
  679  REGARDING THOSE ITEMS.
  680         (f)Funding formulas for reserves required by this section
  681  must be based on a pooled analysis of two or more of the items
  682  for which reserves are required to be accrued pursuant to this
  683  subsection. The amount of the contribution to the pooled reserve
  684  account as disclosed on the proposed budget may not be less than
  685  that required to ensure that the balance on hand at the
  686  beginning of the period the budget will go into effect plus the
  687  projected annual cash inflows over the remaining estimated
  688  useful life of all of the assets that make up the reserve pool
  689  are equal to or greater than the projected annual cash outflows
  690  over the remaining estimated useful lives of all the assets that
  691  make up the reserve pool based on the current reserve analysis.
  692  The projected annual cash inflows may include estimated earnings
  693  from investment of principal and accounts receivable minus the
  694  allowance for doubtful accounts. The reserve funding formula may
  695  not include any type of balloon payments.
  696         (g) As alternative to the pooled analysis method described
  697  in paragraph (f) and, if approved by a majority vote at a
  698  meeting of the members of the association at which a quorum is
  699  present, the funding formulas for reserves required authorized
  700  by this section may must be based on a separate analysis of each
  701  of the required assets or a pooled analysis of two or more of
  702  the required assets.
  703         1. If the association maintains separate reserve accounts
  704  for each of the required assets, the amount of the contribution
  705  to each reserve account is the sum of the following two
  706  calculations:
  707         1.a. The total amount necessary, if any, to bring a
  708  negative component balance to zero.
  709         2.b. The total estimated deferred maintenance expense or
  710  estimated replacement cost of the reserve component less the
  711  estimated balance of the reserve component as of the beginning
  712  of the period the budget will be in effect. The remainder, if
  713  greater than zero, shall be divided by the estimated remaining
  714  useful life of the component.
  715  
  716  The formula may be adjusted each year for changes in estimates
  717  and deferred maintenance performed during the year and may
  718  include factors such as inflation and earnings on invested
  719  funds. An association may convert its funding formulas from a
  720  component method to a pooled method, as described in paragraph
  721  (f), at any time if approved by a majority vote at a meeting at
  722  which a quorum is present.
  723         2.If the association maintains a pooled account of two or
  724  more of the required reserve assets, the amount of the
  725  contribution to the pooled reserve account as disclosed on the
  726  proposed budget may not be less than that required to ensure
  727  that the balance on hand at the beginning of the period the
  728  budget will go into effect plus the projected annual cash
  729  inflows over the remaining estimated useful life of all of the
  730  assets that make up the reserve pool are equal to or greater
  731  than the projected annual cash outflows over the remaining
  732  estimated useful lives of all the assets that make up the
  733  reserve pool, based on the current reserve analysis. The
  734  projected annual cash inflows may include estimated earnings
  735  from investment of principal and accounts receivable minus the
  736  allowance for doubtful accounts. The reserve funding formula may
  737  not include any type of balloon payments.
  738         (h)1.Reserve funds and Any interest accruing thereon shall
  739  remain in the reserve account or accounts and shall be used only
  740  for authorized reserve expenditures unless their use for other
  741  purposes is approved in advance by a majority vote at a meeting
  742  at which a proposed annual budget of an association will be
  743  considered by the board or a quorum is present. Prior to
  744  turnover of control of an association by a developer to parcel
  745  owners shall be open to all parcel owners, the developer
  746  controlled association shall not vote to use reserves for
  747  purposes other than those for which they were intended without
  748  the approval of a majority of all nondeveloper voting interests
  749  voting in person or by limited proxy at a duly called meeting of
  750  the association.
  751         2.a.If a board adopts in any fiscal year an annual budget
  752  that requires assessments against parcel owners which exceed 115
  753  percent of assessments for the preceding fiscal year, the board
  754  shall conduct a special meeting of the parcel owners to consider
  755  a substitute budget if the board receives, within 21 days after
  756  adoption of the annual budget, a written request for a special
  757  meeting from at least 10 percent of all voting interests. The
  758  special meeting shall be conducted within 60 days after adoption
  759  of the annual budget. At least 14 days before such special
  760  meeting, the board shall hand deliver to each parcel owner, or
  761  mail to each parcel owner at the address last furnished to the
  762  association, a notice of the meeting. An officer or manager of
  763  the association, or other person providing notice of such
  764  meeting shall execute an affidavit evidencing compliance with
  765  this notice requirement, and such affidavit shall be filed among
  766  the official records of the association. Parcel owners may
  767  consider and adopt a substitute budget at the special meeting. A
  768  substitute budget is adopted if approved by a majority of all
  769  voting interests unless the bylaws require adoption by a greater
  770  percentage of voting interests. If there is not a quorum at the
  771  special meeting or a substitute budget is not adopted, the
  772  annual budget previously adopted by the board shall take effect
  773  as scheduled.
  774         b.Any determination of whether assessments exceed 115
  775  percent of assessments for the prior fiscal year shall exclude
  776  any authorized provision for reasonable reserves for repair or
  777  replacement of the association property, anticipated expenses of
  778  the association which the board does not expect to be incurred
  779  on a regular or annual basis, or assessments for betterments to
  780  the condominium property.
  781         c.If the developer controls the board, assessments may not
  782  exceed 115 percent of assessments for the prior fiscal year
  783  unless approved by a majority of all voting interests.
  784         (i)The provisions of paragraphs (b)-(h) do not apply to
  785  mandatory reserve accounts required to be established and
  786  maintained by an association at the direction of a county or
  787  municipal government, water or drainage management district,
  788  community development district, or other political subdivision
  789  that has the authority to approve and control subdivision
  790  infrastructure which is entrusted to the care of an association
  791  on the condition that the association establish and maintain one
  792  or more mandatory reserve accounts for the deferred maintenance
  793  or replacement of the infrastructure in accordance with the
  794  requirements of that entrusting authority.
  795         (7) FINANCIAL REPORTING.—Within 90 days after the end of
  796  the fiscal year, or annually on the date provided in the bylaws,
  797  the association shall prepare and complete, or contract with a
  798  third party for the preparation and completion of, a financial
  799  report for the preceding fiscal year. Within 21 days after the
  800  final financial report is completed by the association or
  801  received from the third party, but not later than 120 days after
  802  the end of the fiscal year or other date as provided in the
  803  bylaws, the association shall, within the time limits set forth
  804  in subsection (5), provide each member with a copy of the annual
  805  financial report or a written notice that a copy of the
  806  financial report is available upon request at no charge to the
  807  member. Financial reports shall be prepared as follows:
  808         (a) An association that meets the criteria of this
  809  paragraph shall prepare or cause to be prepared a complete set
  810  of financial statements in accordance with generally accepted
  811  accounting principles as adopted by the Board of Accountancy.
  812  The financial statements shall be based upon the association’s
  813  total annual revenues, as follows:
  814         1. An association with total annual revenues of $150,000 or
  815  more, but less than $300,000, shall prepare compiled financial
  816  statements.
  817         2. An association with total annual revenues of at least
  818  $300,000, but less than $500,000, shall prepare reviewed
  819  financial statements.
  820         3. An association with total annual revenues of $500,000 or
  821  more shall prepare audited financial statements.
  822         (b)1. An association with total annual revenues of less
  823  than $150,000 shall prepare a report of cash receipts and
  824  expenditures.
  825         2.An association in a community of fewer than 50 parcels,
  826  regardless of the association’s annual revenues, may prepare a
  827  report of cash receipts and expenditures in lieu of financial
  828  statements required by paragraph (a) unless the governing
  829  documents provide otherwise.
  830         2.3. A report of cash receipts and disbursement must
  831  disclose the amount of receipts by accounts and receipt
  832  classifications and the amount of expenses by accounts and
  833  expense classifications, including, but not limited to, the
  834  following, as applicable: costs for security, professional, and
  835  management fees and expenses; taxes; costs for recreation
  836  facilities; expenses for refuse collection and utility services;
  837  expenses for lawn care; costs for building maintenance and
  838  repair; insurance costs; administration and salary expenses; and
  839  reserves if maintained by the association.
  840         (c) If 20 percent of the parcel owners petition the board
  841  for a level of financial reporting higher than that required by
  842  this section, the association shall duly notice and hold a
  843  meeting of members within 30 days of receipt of the petition for
  844  the purpose of voting on raising the level of reporting for that
  845  fiscal year. Upon approval of a majority of the total voting
  846  interests of the parcel owners, the association shall prepare or
  847  cause to be prepared, shall amend the budget or adopt a special
  848  assessment to pay for the financial report regardless of any
  849  provision to the contrary in the governing documents, and shall
  850  provide within 90 days of the meeting or the end of the fiscal
  851  year, whichever occurs later:
  852         1. Compiled, reviewed, or audited financial statements, if
  853  the association is otherwise required to prepare a report of
  854  cash receipts and expenditures;
  855         2. Reviewed or audited financial statements, if the
  856  association is otherwise required to prepare compiled financial
  857  statements; or
  858         3. Audited financial statements if the association is
  859  otherwise required to prepare reviewed financial statements.
  860         (d) If approved by a majority of the voting interests
  861  present at a properly called meeting of the association, an
  862  association may prepare or cause to be prepared:
  863         1. A report of cash receipts and expenditures in lieu of a
  864  compiled, reviewed, or audited financial statement;
  865         2. A report of cash receipts and expenditures or a compiled
  866  financial statement in lieu of a reviewed or audited financial
  867  statement; or
  868         3. A report of cash receipts and expenditures, a compiled
  869  financial statement, or a reviewed financial statement in lieu
  870  of an audited financial statement.
  871  
  872  ================= T I T L E  A M E N D M E N T ================
  873  And the title is amended as follows:
  874         Delete lines 14 - 54
  875  and insert:
  876         applicability; amending s. 718.113, F.S.; revising
  877         voting requirements relating to alterations and
  878         additions to certain common elements or association
  879         property; amending s. 718.707, F.S.; revising the time
  880         period for classification as bulk assignee or bulk
  881         buyer; amending s. 719.104, F.S.; revising
  882         recordkeeping and reporting requirements; amending s.
  883         719.1055, F.S.; revising provisions relating to
  884         required condominium and cooperative association
  885         bylaws; revising provisions relating to evidence of
  886         condominium and cooperative association compliance
  887         with the fire and life safety code; revising unit and
  888         common elements required to be retrofitted; revising
  889         provisions relating to an association vote to forego
  890         retrofitting; providing applicability; amending s.
  891         719.106, F.S.; revising requirements to serve as a
  892         board member; prohibiting a board member from voting
  893         via e-mail; requiring that directors who are
  894         delinquent in certain payments owed in excess of
  895         certain periods of time be deemed to have abandoned
  896         their offices; authorizing an association to adopt
  897         rules for posting certain notices on a website;
  898         amending s. 719.107, F.S.; specifying certain services
  899         which are obtained pursuant to a bulk contract to be
  900         deemed a common expense; amending s. 720.303, F.S.;
  901         prohibiting a board member from voting via e-mail;
  902         revising certain notice requirements relating to board
  903         meetings; revising and providing budget requirements;
  904         providing an exemption to certain requirements;
  905         revising financial reporting requirements; authorizing
  906         an association to adopt rules for posting certain
  907         notices on a website; amending s. 720.306, F.S.;