Florida Senate - 2017                              CS for SB 744
       
       
        
       By the Committee on Regulated Industries; and Senator Passidomo
       
       
       
       
       
       580-02979-17                                           2017744c1
    1                        A bill to be entitled                      
    2         An act relating to community associations; amending s.
    3         718.111, F.S.; revising reporting and record
    4         requirements; amending s. 718.112, F.S.; authorizing
    5         an association to adopt rules for posting certain
    6         notices on a website; revising provisions relating to
    7         required condominium and cooperative association
    8         bylaws; revising provisions relating to evidence of
    9         condominium and cooperative association compliance
   10         with the applicable fire and life safety code;
   11         revising unit and common elements required to be
   12         retrofitted; revising provisions relating to an
   13         association vote to forego retrofitting; providing
   14         applicability; amending s. 718.113, F.S.; revising
   15         voting requirements relating to alterations and
   16         additions to certain common elements or association
   17         property; amending s. 718.707, F.S.; revising the time
   18         period for classification as bulk assignee or bulk
   19         buyer; amending s. 719.104, F.S.; revising
   20         recordkeeping and reporting requirements; amending s.
   21         719.1055, F.S.; revising provisions relating to
   22         required condominium and cooperative association
   23         bylaws; revising provisions relating to evidence of
   24         condominium and cooperative association compliance
   25         with the fire and life safety code; revising unit and
   26         common elements required to be retrofitted; revising
   27         provisions relating to an association vote to forego
   28         retrofitting; providing applicability; amending s.
   29         719.106, F.S.; revising requirements to serve as a
   30         board member; prohibiting a board member from voting
   31         via e-mail; requiring that directors who are
   32         delinquent in certain payments owed in excess of
   33         certain periods of time be deemed to have abandoned
   34         their offices; authorizing an association to adopt
   35         rules for posting certain notices on a website;
   36         amending s. 719.107, F.S.; specifying certain services
   37         that are obtained pursuant to a bulk contract are
   38         deemed a common expense; amending s. 720.303, F.S.;
   39         prohibiting a board member from voting via e-mail;
   40         revising certain notice requirements relating to board
   41         meetings; specifying requirements relating to the
   42         adoption of assessments; revising financial reporting
   43         requirements; amending s. 720.306, F.S.; providing
   44         elections requirements; amending s. 720.3085, F.S.;
   45         providing applicability; providing an effective date.
   46          
   47  Be It Enacted by the Legislature of the State of Florida:
   48  
   49         Section 1. Subsections (12) and (13) of section 718.111,
   50  Florida Statutes, are amended to read:
   51         718.111 The association.—
   52         (12) OFFICIAL RECORDS.—
   53         (a) From the inception of the association, the association
   54  shall maintain each of the following items, if applicable, which
   55  constitutes the official records of the association:
   56         1. A copy of the plans, permits, warranties, and other
   57  items provided by the developer pursuant to s. 718.301(4).
   58         2. A photocopy of the recorded declaration of condominium
   59  of each condominium operated by the association and each
   60  amendment to each declaration.
   61         3. A photocopy of the recorded bylaws of the association
   62  and each amendment to the bylaws.
   63         4. A certified copy of the articles of incorporation of the
   64  association, or other documents creating the association, and
   65  each amendment thereto.
   66         5. A copy of the current rules of the association.
   67         6. A book or books that contain the minutes of all meetings
   68  of the association, the board of administration, and the unit
   69  owners, which minutes must be retained for at least 7 years.
   70         7. A current roster of all unit owners and their mailing
   71  addresses, unit identifications, voting certifications, and, if
   72  known, telephone numbers. The association shall also maintain
   73  the electronic mailing addresses and facsimile numbers of unit
   74  owners consenting to receive notice by electronic transmission.
   75  The electronic mailing addresses and facsimile numbers are not
   76  accessible to unit owners if consent to receive notice by
   77  electronic transmission is not provided in accordance with
   78  subparagraph (c)5. However, the association is not liable for an
   79  inadvertent disclosure of the electronic mail address or
   80  facsimile number for receiving electronic transmission of
   81  notices.
   82         8. All current insurance policies of the association and
   83  condominiums operated by the association.
   84         9. A current copy of any management agreement, lease, or
   85  other contract to which the association is a party or under
   86  which the association or the unit owners have an obligation or
   87  responsibility.
   88         10. Bills of sale or transfer for all property owned by the
   89  association.
   90         11. Accounting records for the association and separate
   91  accounting records for each condominium that the association
   92  operates. All accounting records must be maintained for at least
   93  7 years. Any person who knowingly or intentionally defaces or
   94  destroys such records, or who knowingly or intentionally fails
   95  to create or maintain such records, with the intent of causing
   96  harm to the association or one or more of its members, is
   97  personally subject to a civil penalty pursuant to s.
   98  718.501(1)(d). The accounting records must include, but are not
   99  limited to:
  100         a. Accurate, itemized, and detailed records of all receipts
  101  and expenditures.
  102         b. A current account and a monthly, bimonthly, or quarterly
  103  statement of the account for each unit designating the name of
  104  the unit owner, the due date and amount of each assessment, the
  105  amount paid on the account, and the balance due.
  106         c. All audits, reviews, accounting statements, and
  107  financial reports of the association or condominium.
  108         d. All contracts for work to be performed. Bids for work to
  109  be performed are also considered official records and must be
  110  maintained by the association for 1 year.
  111         12. Ballots, sign-in sheets, voting proxies, and all other
  112  papers and electronic records relating to voting by unit owners,
  113  which must be maintained for 1 year from the date of the
  114  election, vote, or meeting to which the document relates,
  115  notwithstanding paragraph (b).
  116         13. All rental records if the association is acting as
  117  agent for the rental of condominium units.
  118         14. A copy of the current question and answer sheet as
  119  described in s. 718.504.
  120         15. All other written records of the association not
  121  specifically included in the foregoing which are related to the
  122  operation of the association.
  123         16. A copy of the inspection report as described in s.
  124  718.301(4)(p).
  125         (b) The official records of the association must be
  126  maintained within the state for at least 7 years. The records of
  127  the association shall be made available to a unit owner within
  128  45 miles of the condominium property or within the county in
  129  which the condominium property is located within 10 5 working
  130  days after receipt of a written request by the board or its
  131  designee. However, such distance requirement does not apply to
  132  an association governing a timeshare condominium. This paragraph
  133  may be complied with by having a copy of the official records of
  134  the association available for inspection or copying on the
  135  condominium property or association property, or the association
  136  may offer the option of making the records available to a unit
  137  owner electronically via the Internet or by allowing the records
  138  to be viewed in electronic format on a computer screen and
  139  printed upon request. The association is not responsible for the
  140  use or misuse of the information provided to an association
  141  member or his or her authorized representative pursuant to the
  142  compliance requirements of this chapter unless the association
  143  has an affirmative duty not to disclose such information
  144  pursuant to this chapter.
  145         (c) The official records of the association are open to
  146  inspection by any association member or the authorized
  147  representative of such member at all reasonable times. The right
  148  to inspect the records includes the right to make or obtain
  149  copies, at the reasonable expense, if any, of the member. The
  150  association may adopt reasonable rules regarding the frequency,
  151  time, location, notice, and manner of record inspections and
  152  copying. The failure of an association to provide the records
  153  within 10 working days after receipt of a written request
  154  creates a rebuttable presumption that the association willfully
  155  failed to comply with this paragraph. A unit owner who is denied
  156  access to official records is entitled to the actual damages or
  157  minimum damages for the association’s willful failure to comply.
  158  Minimum damages are $50 per calendar day for up to 10 days,
  159  beginning on the 11th working day after receipt of the written
  160  request. The failure to permit inspection entitles any person
  161  prevailing in an enforcement action to recover reasonable
  162  attorney fees from the person in control of the records who,
  163  directly or indirectly, knowingly denied access to the records.
  164  Any person who knowingly or intentionally defaces or destroys
  165  accounting records that are required by this chapter to be
  166  maintained during the period for which such records are required
  167  to be maintained, or who knowingly or intentionally fails to
  168  create or maintain accounting records that are required to be
  169  created or maintained, with the intent of causing harm to the
  170  association or one or more of its members, is personally subject
  171  to a civil penalty pursuant to s. 718.501(1)(d). The association
  172  shall maintain an adequate number of copies of the declaration,
  173  articles of incorporation, bylaws, and rules, and all amendments
  174  to each of the foregoing, as well as the question and answer
  175  sheet as described in s. 718.504 and year-end financial
  176  information required under this section, on the condominium
  177  property to ensure their availability to unit owners and
  178  prospective purchasers, and may charge its actual costs for
  179  preparing and furnishing these documents to those requesting the
  180  documents. An association shall allow a member or his or her
  181  authorized representative to use a portable device, including a
  182  smartphone, tablet, portable scanner, or any other technology
  183  capable of scanning or taking photographs, to make an electronic
  184  copy of the official records in lieu of the association’s
  185  providing the member or his or her authorized representative
  186  with a copy of such records. The association may not charge a
  187  member or his or her authorized representative for the use of a
  188  portable device. Notwithstanding this paragraph, the following
  189  records are not accessible to unit owners:
  190         1. Any record protected by the lawyer-client privilege as
  191  described in s. 90.502 and any record protected by the work
  192  product privilege, including a record prepared by an association
  193  attorney or prepared at the attorney’s express direction, which
  194  reflects a mental impression, conclusion, litigation strategy,
  195  or legal theory of the attorney or the association, and which
  196  was prepared exclusively for civil or criminal litigation or for
  197  adversarial administrative proceedings, or which was prepared in
  198  anticipation of such litigation or proceedings until the
  199  conclusion of the litigation or proceedings.
  200         2. Information obtained by an association in connection
  201  with the approval of the lease, sale, or other transfer of a
  202  unit.
  203         3. Personnel records of association or management company
  204  employees, including, but not limited to, disciplinary, payroll,
  205  health, and insurance records. For purposes of this
  206  subparagraph, the term “personnel records” does not include
  207  written employment agreements with an association employee or
  208  management company, or budgetary or financial records that
  209  indicate the compensation paid to an association employee.
  210         4. Medical records of unit owners.
  211         5. Social security numbers, driver license numbers, credit
  212  card numbers, e-mail addresses, telephone numbers, facsimile
  213  numbers, emergency contact information, addresses of a unit
  214  owner other than as provided to fulfill the association’s notice
  215  requirements, and other personal identifying information of any
  216  person, excluding the person’s name, unit designation, mailing
  217  address, property address, and any address, e-mail address, or
  218  facsimile number provided to the association to fulfill the
  219  association’s notice requirements. Notwithstanding the
  220  restrictions in this subparagraph, an association may print and
  221  distribute to parcel owners a directory containing the name,
  222  parcel address, and all telephone numbers of each parcel owner.
  223  However, an owner may exclude his or her telephone numbers from
  224  the directory by so requesting in writing to the association. An
  225  owner may consent in writing to the disclosure of other contact
  226  information described in this subparagraph. The association is
  227  not liable for the inadvertent disclosure of information that is
  228  protected under this subparagraph if the information is included
  229  in an official record of the association and is voluntarily
  230  provided by an owner and not requested by the association.
  231         6. Electronic security measures that are used by the
  232  association to safeguard data, including passwords.
  233         7. The software and operating system used by the
  234  association which allow the manipulation of data, even if the
  235  owner owns a copy of the same software used by the association.
  236  The data is part of the official records of the association.
  237         (d) The association shall prepare a question and answer
  238  sheet as described in s. 718.504, and shall update it annually.
  239         (e)1. The association or its authorized agent is not
  240  required to provide a prospective purchaser or lienholder with
  241  information about the condominium or the association other than
  242  information or documents required by this chapter to be made
  243  available or disclosed. The association or its authorized agent
  244  may charge a reasonable fee to the prospective purchaser,
  245  lienholder, or the current unit owner for providing good faith
  246  responses to requests for information by or on behalf of a
  247  prospective purchaser or lienholder, other than that required by
  248  law, if the fee does not exceed $150 plus the reasonable cost of
  249  photocopying and any attorney’s fees incurred by the association
  250  in connection with the response.
  251         2. An association and its authorized agent are not liable
  252  for providing such information in good faith pursuant to a
  253  written request if the person providing the information includes
  254  a written statement in substantially the following form: “The
  255  responses herein are made in good faith and to the best of my
  256  ability as to their accuracy.”
  257         (f) An outgoing board or committee member must relinquish
  258  all official records and property of the association in his or
  259  her possession or under his or her control to the incoming board
  260  within 5 days after the election. The division shall impose a
  261  civil penalty as set forth in s. 718.501(1)(d)6. against an
  262  outgoing board or committee member who willfully and knowingly
  263  fails to relinquish such records and property.
  264         (13) FINANCIAL REPORTING.—Within 90 days after the end of
  265  the fiscal year, or annually on a date provided in the bylaws,
  266  the association shall prepare and complete, or contract for the
  267  preparation and completion of, a financial report for the
  268  preceding fiscal year. Within 21 days after the final financial
  269  report is completed by the association or received from the
  270  third party, but not later than 120 days after the end of the
  271  fiscal year or other date as provided in the bylaws, the
  272  association shall mail to each unit owner at the address last
  273  furnished to the association by the unit owner, or hand deliver
  274  to each unit owner, a copy of the financial report or a notice
  275  that a copy of the financial report will be mailed or hand
  276  delivered to the unit owner, without charge, upon receipt of a
  277  written request from the unit owner. The division shall adopt
  278  rules setting forth uniform accounting principles and standards
  279  to be used by all associations and addressing the financial
  280  reporting requirements for multicondominium associations. The
  281  rules must include, but not be limited to, standards for
  282  presenting a summary of association reserves, including a good
  283  faith estimate disclosing the annual amount of reserve funds
  284  that would be necessary for the association to fully fund
  285  reserves for each reserve item based on the straight-line
  286  accounting method. This disclosure is not applicable to reserves
  287  funded via the pooling method. In adopting such rules, the
  288  division shall consider the number of members and annual
  289  revenues of an association. Financial reports shall be prepared
  290  as follows:
  291         (a) An association that meets the criteria of this
  292  paragraph shall prepare a complete set of financial statements
  293  in accordance with generally accepted accounting principles. The
  294  financial statements must be based upon the association’s total
  295  annual revenues, as follows:
  296         1. An association with total annual revenues of $150,000 or
  297  more, but less than $300,000, shall prepare compiled financial
  298  statements.
  299         2. An association with total annual revenues of at least
  300  $300,000, but less than $500,000, shall prepare reviewed
  301  financial statements.
  302         3. An association with total annual revenues of $500,000 or
  303  more shall prepare audited financial statements.
  304         (b)1. An association with total annual revenues of less
  305  than $150,000 shall prepare a report of cash receipts and
  306  expenditures.
  307         2.An association that operates fewer than 50 units,
  308  regardless of the association’s annual revenues, shall prepare a
  309  report of cash receipts and expenditures in lieu of financial
  310  statements required by paragraph (a).
  311         2.3. A report of cash receipts and disbursements must
  312  disclose the amount of receipts by accounts and receipt
  313  classifications and the amount of expenses by accounts and
  314  expense classifications, including, but not limited to, the
  315  following, as applicable: costs for security, professional and
  316  management fees and expenses, taxes, costs for recreation
  317  facilities, expenses for refuse collection and utility services,
  318  expenses for lawn care, costs for building maintenance and
  319  repair, insurance costs, administration and salary expenses, and
  320  reserves accumulated and expended for capital expenditures,
  321  deferred maintenance, and any other category for which the
  322  association maintains reserves.
  323         (c) An association may prepare, without a meeting of or
  324  approval by the unit owners:
  325         1. Compiled, reviewed, or audited financial statements, if
  326  the association is required to prepare a report of cash receipts
  327  and expenditures;
  328         2. Reviewed or audited financial statements, if the
  329  association is required to prepare compiled financial
  330  statements; or
  331         3. Audited financial statements if the association is
  332  required to prepare reviewed financial statements.
  333         (d) If approved by a majority of the voting interests
  334  present at a properly called meeting of the association, an
  335  association may prepare:
  336         1. A report of cash receipts and expenditures in lieu of a
  337  compiled, reviewed, or audited financial statement;
  338         2. A report of cash receipts and expenditures or a compiled
  339  financial statement in lieu of a reviewed or audited financial
  340  statement; or
  341         3. A report of cash receipts and expenditures, a compiled
  342  financial statement, or a reviewed financial statement in lieu
  343  of an audited financial statement.
  344  
  345  Such meeting and approval must occur before the end of the
  346  fiscal year and is effective only for the fiscal year in which
  347  the vote is taken, except that the approval may also be
  348  effective for the following fiscal year. If the developer has
  349  not turned over control of the association, all unit owners,
  350  including the developer, may vote on issues related to the
  351  preparation of the association’s financial reports, from the
  352  date of incorporation of the association through the end of the
  353  second fiscal year after the fiscal year in which the
  354  certificate of a surveyor and mapper is recorded pursuant to s.
  355  718.104(4)(e) or an instrument that transfers title to a unit in
  356  the condominium which is not accompanied by a recorded
  357  assignment of developer rights in favor of the grantee of such
  358  unit is recorded, whichever occurs first. Thereafter, all unit
  359  owners except the developer may vote on such issues until
  360  control is turned over to the association by the developer. Any
  361  audit or review prepared under this section shall be paid for by
  362  the developer if done before turnover of control of the
  363  association. An association may not waive the financial
  364  reporting requirements of this section for more than 3
  365  consecutive years.
  366         Section 2. Paragraphs (c) and (l) of subsection (2) of
  367  section 718.112, Florida Statutes, are amended to read:
  368         718.112 Bylaws.—
  369         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  370  following and, if they do not do so, shall be deemed to include
  371  the following:
  372         (c) Board of administration meetings.—Meetings of the board
  373  of administration at which a quorum of the members is present
  374  are open to all unit owners. Members of the board of
  375  administration may use e-mail as a means of communication but
  376  may not cast a vote on an association matter via e-mail. A unit
  377  owner may tape record or videotape the meetings. The right to
  378  attend such meetings includes the right to speak at such
  379  meetings with reference to all designated agenda items. The
  380  division shall adopt reasonable rules governing the tape
  381  recording and videotaping of the meeting. The association may
  382  adopt written reasonable rules governing the frequency,
  383  duration, and manner of unit owner statements.
  384         1. Adequate notice of all board meetings, which must
  385  specifically identify all agenda items, must be posted
  386  conspicuously on the condominium property at least 48 continuous
  387  hours before the meeting except in an emergency. If 20 percent
  388  of the voting interests petition the board to address an item of
  389  business, the board, within 60 days after receipt of the
  390  petition, shall place the item on the agenda at its next regular
  391  board meeting or at a special meeting called for that purpose.
  392  An item not included on the notice may be taken up on an
  393  emergency basis by a vote of at least a majority plus one of the
  394  board members. Such emergency action must be noticed and
  395  ratified at the next regular board meeting. Notice of any
  396  meeting in which a regular or special assessment against unit
  397  owners is to be considered must specifically state that
  398  assessments will be considered and provide the estimated amount
  399  and a description of the purposes for such assessments. However,
  400  Written notice of a meeting at which a nonemergency special
  401  assessment or an amendment to rules regarding unit use will be
  402  considered must be mailed, delivered, or electronically
  403  transmitted to the unit owners and posted conspicuously on the
  404  condominium property at least 14 days before the meeting.
  405  Evidence of compliance with this 14-day notice requirement must
  406  be made by an affidavit executed by the person providing the
  407  notice and filed with the official records of the association.
  408  Upon notice to the unit owners, the board shall, by duly adopted
  409  rule, designate a specific location on the condominium or
  410  association property where all notices of board meetings must be
  411  posted. If there is no condominium property or association
  412  property where notices can be posted, notices shall be mailed,
  413  delivered, or electronically transmitted to each unit owner at
  414  least 14 days before the meeting. In lieu of or in addition to
  415  the physical posting of the notice on the condominium property,
  416  the association may, by reasonable rule, adopt a procedure for
  417  conspicuously posting and repeatedly broadcasting the notice and
  418  the agenda on a closed-circuit cable television system serving
  419  the condominium association. However, if broadcast notice is
  420  used in lieu of a notice physically posted on condominium
  421  property, the notice and agenda must be broadcast at least four
  422  times every broadcast hour of each day that a posted notice is
  423  otherwise required under this section. If broadcast notice is
  424  provided, the notice and agenda must be broadcast in a manner
  425  and for a sufficient continuous length of time so as to allow an
  426  average reader to observe the notice and read and comprehend the
  427  entire content of the notice and the agenda. In addition to any
  428  of the authorized means of providing notice of a meeting of the
  429  board, the association may, by rule, adopt a procedure for
  430  conspicuously posting the meeting notice and the agenda on a
  431  website serving the condominium association for at least the
  432  minimum period of time for which a notice of a meeting is also
  433  required to be physically posted on the condominium property.
  434  Any rule adopted shall, in addition to other matters, include a
  435  requirement that the association send an electronic notice
  436  providing a hypertext link to the website where the notice is
  437  posted Notice of any meeting in which regular or special
  438  assessments against unit owners are to be considered must
  439  specifically state that assessments will be considered and
  440  provide the nature, estimated cost, and description of the
  441  purposes for such assessments.
  442         2. Meetings of a committee to take final action on behalf
  443  of the board or make recommendations to the board regarding the
  444  association budget are subject to this paragraph. Meetings of a
  445  committee that does not take final action on behalf of the board
  446  or make recommendations to the board regarding the association
  447  budget are subject to this section, unless those meetings are
  448  exempted from this section by the bylaws of the association.
  449         3. Notwithstanding any other law, the requirement that
  450  board meetings and committee meetings be open to the unit owners
  451  does not apply to:
  452         a. Meetings between the board or a committee and the
  453  association’s attorney, with respect to proposed or pending
  454  litigation, if the meeting is held for the purpose of seeking or
  455  rendering legal advice; or
  456         b. Board meetings held for the purpose of discussing
  457  personnel matters.
  458         (l) Certificate of compliance.—A provision that a
  459  certificate of compliance from a licensed professional engineer
  460  electrical contractor or electrician may be accepted by the
  461  association’s board as evidence of compliance of the condominium
  462  units with the applicable fire and life safety code must be
  463  included. Notwithstanding chapter 633, s. 509.215, s.
  464  553.895(1), or of any other code, statute, ordinance,
  465  administrative rule, or regulation, or any interpretation of the
  466  foregoing, an association, residential condominium, or unit
  467  owner is not obligated to retrofit the common elements,
  468  association property, or units of a residential condominium with
  469  a fire sprinkler system or other engineered lifesafety system in
  470  a building that is 75 feet or less in height. There is no
  471  obligation to retrofit for a building greater than 75 feet in
  472  height, calculated from the lowest level of fire department
  473  vehicle access to the floor of the highest occupiable story, has
  474  been certified for occupancy by the applicable governmental
  475  entity if the unit owners have voted to forego such retrofitting
  476  by the affirmative vote of a majority of all voting interests in
  477  the affected condominium. There is no requirement that owners in
  478  condominiums of 75 feet or less conduct an opt-out vote; such
  479  condominiums are exempt from fire sprinkler or other engineered
  480  lifesafety retrofitting. The preceding sentence is intended to
  481  clarify existing law. The local authority having jurisdiction
  482  may not require completion of retrofitting with a fire sprinkler
  483  system or other engineered lifesafety system before January 1,
  484  2022 2020. By December 31, 2018 2016, an a residential
  485  condominium association that operates a residential condominium
  486  that is not in compliance with the requirements for a fire
  487  sprinkler system or other engineered lifesafety system and has
  488  not voted to forego retrofitting of such a system must initiate
  489  an application for a building permit for the required
  490  installation with the local government having jurisdiction
  491  demonstrating that the association will become compliant by
  492  December 31, 2021 2019.
  493         1. A vote to forego required retrofitting may be obtained
  494  by limited proxy or by a ballot personally cast at a duly called
  495  membership meeting, or by execution of a written consent by the
  496  member, or by electronic voting, and is effective upon recording
  497  a certificate executed by an officer or agent of the association
  498  attesting to such vote in the public records of the county where
  499  the condominium is located. When an opt-out vote is to be
  500  conducted at a meeting, the association shall mail or hand
  501  deliver to each unit owner written notice at least 14 days
  502  before the membership meeting in which the vote to forego
  503  retrofitting of the required fire sprinkler system or other
  504  engineered lifesafety system is to take place. Within 30 days
  505  after the association’s opt-out vote, notice of the results of
  506  the opt-out vote must be mailed or hand delivered to all unit
  507  owners. Evidence of compliance with this notice requirement must
  508  be made by affidavit executed by the person providing the notice
  509  and filed among the official records of the association. Failure
  510  to provide timely notice to unit owners does not invalidate an
  511  otherwise valid opt-out vote if notice of the results is
  512  provided to the owners After notice is provided to each owner, a
  513  copy must be provided by the current owner to a new owner before
  514  closing and by a unit owner to a renter before signing a lease.
  515         2. If there has been a previous vote to forego
  516  retrofitting, a vote to require retrofitting may be obtained at
  517  a special meeting of the unit owners called by a petition of at
  518  least 10 percent of the voting interests or by a majority of the
  519  board of directors. Such a vote may only be called once every 3
  520  years. Notice shall be provided as required for any regularly
  521  called meeting of the unit owners, and must state the purpose of
  522  the meeting. Electronic transmission may not be used to provide
  523  notice of a meeting called in whole or in part for this purpose.
  524         3. As part of the information collected annually from
  525  condominiums, the division shall require condominium
  526  associations to report the membership vote and recording of a
  527  certificate under this subsection and, if retrofitting has been
  528  undertaken, the per-unit cost of such work. The division shall
  529  annually report to the Division of State Fire Marshal of the
  530  Department of Financial Services the number of condominiums that
  531  have elected to forego retrofitting. Compliance with this
  532  administrative reporting requirement does not affect the
  533  validity of an opt-out vote.
  534         4. Notwithstanding s. 553.509, a residential association
  535  may not be obligated to, and may forego the retrofitting of, any
  536  improvements required by s. 553.509(2) upon an affirmative vote
  537  of a majority of the voting interests in the affected
  538  condominium.
  539         Section 3. Subsection (2) of section 718.113, Florida
  540  Statutes, is amended to read:
  541         718.113 Maintenance; limitation upon improvement; display
  542  of flag; hurricane shutters and protection; display of religious
  543  decorations.—
  544         (2)(a) Except as otherwise provided in this section, there
  545  shall be no material alteration or substantial additions to the
  546  common elements or to real property which is association
  547  property, except in a manner provided in the declaration as
  548  originally recorded or as amended under the procedures provided
  549  therein. If the declaration as originally recorded or as amended
  550  under the procedures provided therein does not specify the
  551  procedure for approval of material alterations or substantial
  552  additions, 75 percent of the total voting interests of the
  553  association must approve the alterations or additions before the
  554  material alterations or substantial additions are commenced.
  555  This paragraph is intended to clarify existing law and applies
  556  to associations existing on the effective date of this act
  557  October 1, 2008.
  558         (b) There shall not be any material alteration of, or
  559  substantial addition to, the common elements of any condominium
  560  operated by a multicondominium association unless approved in
  561  the manner provided in the declaration of the affected
  562  condominium or condominiums as originally recorded or as amended
  563  under the procedures provided therein. If a declaration as
  564  originally recorded or as amended under the procedures provided
  565  therein does not specify a procedure for approving such an
  566  alteration or addition, the approval of 75 percent of the total
  567  voting interests of each affected condominium is required before
  568  the material alterations or substantial additions are commenced.
  569  This subsection does not prohibit a provision in any
  570  declaration, articles of incorporation, or bylaws as originally
  571  recorded or as amended under the procedures provided therein
  572  requiring the approval of unit owners in any condominium
  573  operated by the same association or requiring board approval
  574  before a material alteration or substantial addition to the
  575  common elements is permitted. This paragraph is intended to
  576  clarify existing law and applies to associations existing on the
  577  effective date of this act.
  578         (c) There shall not be any material alteration or
  579  substantial addition made to association real property operated
  580  by a multicondominium association, except as provided in the
  581  declaration, articles of incorporation, or bylaws as originally
  582  recorded or as amended under the procedures provided therein. If
  583  the declaration, articles of incorporation, or bylaws as
  584  originally recorded or as amended under the procedures provided
  585  therein do not specify the procedure for approving an alteration
  586  or addition to association real property, the approval of 75
  587  percent of the total voting interests of the association is
  588  required before the material alterations or substantial
  589  additions are commenced. This paragraph is intended to clarify
  590  existing law and applies to associations existing on the
  591  effective date of this act.
  592         Section 4. Section 718.707, Florida Statutes, is amended to
  593  read:
  594         718.707 Time limitation for classification as bulk assignee
  595  or bulk buyer.—A person acquiring condominium parcels may not be
  596  classified as a bulk assignee or bulk buyer unless the
  597  condominium parcels were acquired on or after July 1, 2010, but
  598  before July 1, 2018. The date of such acquisition shall be
  599  determined by the date of recording a deed or other instrument
  600  of conveyance for such parcels in the public records of the
  601  county in which the condominium is located, or by the date of
  602  issuing a certificate of title in a foreclosure proceeding with
  603  respect to such condominium parcels.
  604         Section 5. Paragraphs (a) and (b) of subsection (2) and
  605  paragraph (c) of subsection (4) of section 719.104, Florida
  606  Statutes, are amended to read:
  607         719.104 Cooperatives; access to units; records; financial
  608  reports; assessments; purchase of leases.—
  609         (2) OFFICIAL RECORDS.—
  610         (a) From the inception of the association, the association
  611  shall maintain a copy of each of the following, where
  612  applicable, which shall constitute the official records of the
  613  association:
  614         1. The plans, permits, warranties, and other items provided
  615  by the developer pursuant to s. 719.301(4).
  616         2. A photocopy of the cooperative documents.
  617         3. A copy of the current rules of the association.
  618         4. A book or books containing the minutes of all meetings
  619  of the association, of the board of directors, and of the unit
  620  owners, which minutes shall be retained for a period of not less
  621  than 7 years.
  622         5. A current roster of all unit owners and their mailing
  623  addresses, unit identifications, voting certifications, and, if
  624  known, telephone numbers. The association shall also maintain
  625  the electronic mailing addresses and the numbers designated by
  626  unit owners for receiving notice sent by electronic transmission
  627  of those unit owners consenting to receive notice by electronic
  628  transmission. The electronic mailing addresses and numbers
  629  provided by unit owners to receive notice by electronic
  630  transmission shall be removed from association records when
  631  consent to receive notice by electronic transmission is revoked.
  632  However, the association is not liable for an erroneous
  633  disclosure of the electronic mail address or the number for
  634  receiving electronic transmission of notices.
  635         6. All current insurance policies of the association.
  636         7. A current copy of any management agreement, lease, or
  637  other contract to which the association is a party or under
  638  which the association or the unit owners have an obligation or
  639  responsibility.
  640         8. Bills of sale or transfer for all property owned by the
  641  association.
  642         9. Accounting records for the association and separate
  643  accounting records for each unit it operates, according to good
  644  accounting practices. All accounting records shall be maintained
  645  for a period of not less than 7 years. The accounting records
  646  shall include, but not be limited to:
  647         a. Accurate, itemized, and detailed records of all receipts
  648  and expenditures.
  649         b. A current account and a monthly, bimonthly, or quarterly
  650  statement of the account for each unit designating the name of
  651  the unit owner, the due date and amount of each assessment, the
  652  amount paid upon the account, and the balance due.
  653         c. All audits, reviews, accounting statements, and
  654  financial reports of the association.
  655         d. All contracts for work to be performed. Bids for work to
  656  be performed shall also be considered official records and shall
  657  be maintained for a period of 1 year.
  658         10. Ballots, sign-in sheets, voting proxies, and all other
  659  papers and electronic records relating to voting by unit owners,
  660  which shall be maintained for a period of 1 year after the date
  661  of the election, vote, or meeting to which the document relates.
  662         11. All rental records where the association is acting as
  663  agent for the rental of units.
  664         12. A copy of the current question and answer sheet as
  665  described in s. 719.504.
  666         13. All other written records of the association not
  667  specifically included in the foregoing which are related to the
  668  operation of the association.
  669         (b) The official records of the association must be
  670  maintained within the state for at least 7 years. The records of
  671  the association shall be made available to a unit owner within
  672  45 miles of the cooperative property or within the county in
  673  which the cooperative property is located within 10 5 working
  674  days after receipt of written request by the board or its
  675  designee. This paragraph may be complied with by having a copy
  676  of the official records of the association available for
  677  inspection or copying on the cooperative property or the
  678  association may offer the option of making the records available
  679  to a unit owner electronically via the Internet or by allowing
  680  the records to be viewed in an electronic format on a computer
  681  screen and printed upon request. The association is not
  682  responsible for the use or misuse of the information provided to
  683  an association member or his or her authorized representative
  684  pursuant to the compliance requirements of this chapter unless
  685  the association has an affirmative duty not to disclose such
  686  information pursuant to this chapter.
  687         (4) FINANCIAL REPORT.—
  688         (c)1. An association with total annual revenues of less
  689  than $150,000 shall prepare a report of cash receipts and
  690  expenditures.
  691         2.An association in a community of fewer than 50 units,
  692  regardless of the association’s annual revenues, shall prepare a
  693  report of cash receipts and expenditures in lieu of the
  694  financial statements required by paragraph (b), unless the
  695  declaration or other recorded governing documents provide
  696  otherwise.
  697         2.3. A report of cash receipts and expenditures must
  698  disclose the amount of receipts by accounts and receipt
  699  classifications and the amount of expenses by accounts and
  700  expense classifications, including the following, as applicable:
  701  costs for security, professional, and management fees and
  702  expenses; taxes; costs for recreation facilities; expenses for
  703  refuse collection and utility services; expenses for lawn care;
  704  costs for building maintenance and repair; insurance costs;
  705  administration and salary expenses; and reserves, if maintained
  706  by the association.
  707         Section 6. Subsection (5) of section 719.1055, Florida
  708  Statutes, is amended to read:
  709         719.1055 Amendment of cooperative documents; alteration and
  710  acquisition of property.—
  711         (5) The bylaws must include a provision whereby a
  712  certificate of compliance from a licensed electrical contractor
  713  or electrician may be accepted by the association’s board as
  714  evidence of compliance of the cooperative units with the
  715  applicable fire and life safety code.
  716         (a)1. Notwithstanding chapter 633, s. 509.215, s.
  717  553.895(1), or any other code, statute, ordinance,
  718  administrative rule, or regulation, or any interpretation of the
  719  foregoing, an association a cooperative or unit owner is not
  720  obligated to retrofit the common elements or units of a
  721  residential cooperative with a fire sprinkler system or other
  722  engineered lifesafety system in a building that is 75 feet or
  723  less in height. There is no obligation to retrofit for a
  724  building greater than 75 feet in height, calculated from the
  725  lowest level of fire department vehicle access to the floor of
  726  the highest occupiable story has been certified for occupancy by
  727  the applicable governmental entity if the unit owners have voted
  728  to forego such retrofitting by the affirmative vote of a
  729  majority of all voting interests in the affected cooperative.
  730  There is no requirement that owners in cooperatives of 75 feet
  731  or less conduct an opt-out vote, and such cooperatives are
  732  exempt from fire sprinkler or other engineered lifesafety
  733  retrofitting. The preceding sentence is intended to clarify
  734  existing law. The local authority having jurisdiction may not
  735  require completion of retrofitting with a fire sprinkler system
  736  or other engineered lifesafety system before January 1, 2022 the
  737  end of 2019. By December 31, 2018 2016, a cooperative that is
  738  not in compliance with the requirements for a fire sprinkler
  739  system or other engineered lifesafety system and has not voted
  740  to forego retrofitting of such a system must initiate an
  741  application for a building permit for the required installation
  742  with the local government having jurisdiction demonstrating that
  743  the cooperative will become compliant by December 31, 2021 2019.
  744         2. A vote to forego required retrofitting may be obtained
  745  by limited proxy or by a ballot personally cast at a duly called
  746  membership meeting, or by execution of a written consent by the
  747  member, or by electronic voting, and is effective upon recording
  748  a certificate executed by an officer or agent of the association
  749  attesting to such vote in the public records of the county where
  750  the cooperative is located. When the opt-out vote is to be
  751  conducted at a meeting, the cooperative shall mail or hand
  752  deliver to each unit owner written notice at least 14 days
  753  before the membership meeting in which the vote to forego
  754  retrofitting of the required fire sprinkler system or other
  755  engineered lifesafety system is to take place. Within 30 days
  756  after the cooperative’s opt-out vote, notice of the results of
  757  the opt-out vote must be mailed or hand delivered to all unit
  758  owners. Evidence of compliance with this notice requirement must
  759  be made by affidavit executed by the person providing the notice
  760  and filed among the official records of the cooperative. Failure
  761  to provide timely notice to unit owners does not invalidate an
  762  otherwise valid opt-out vote if notice of the results is
  763  provided to the owners After notice is provided to each owner, a
  764  copy must be provided by the current owner to a new owner before
  765  closing and by a unit owner to a renter before signing a lease.
  766         (b) If there has been a previous vote to forego
  767  retrofitting, a vote to require retrofitting may be obtained at
  768  a special meeting of the unit owners called by a petition of
  769  least 10 percent of the voting interests or by a majority of the
  770  board of directors. Such vote may only be called once every 3
  771  years. Notice must be provided as required for any regularly
  772  called meeting of the unit owners, and the notice must state the
  773  purpose of the meeting. Electronic transmission may not be used
  774  to provide notice of a meeting called in whole or in part for
  775  this purpose.
  776         (c) As part of the information collected annually from
  777  cooperatives, the division shall require associations to report
  778  the membership vote and recording of a certificate under this
  779  subsection and, if retrofitting has been undertaken, the per
  780  unit cost of such work. The division shall annually report to
  781  the Division of State Fire Marshal of the Department of
  782  Financial Services the number of cooperatives that have elected
  783  to forego retrofitting. Compliance with this administrative
  784  reporting requirement does not affect the validity of an opt-out
  785  vote.
  786         Section 7. Paragraphs (a) and (c) of subsection (1) of
  787  section 719.106, Florida Statutes, are amended, and paragraph
  788  (m) is added to that subsection, to read:
  789         719.106 Bylaws; cooperative ownership.—
  790         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
  791  documents shall provide for the following, and if they do not,
  792  they shall be deemed to include the following:
  793         (a) Administration.—
  794         1. The form of administration of the association shall be
  795  described, indicating the titles of the officers and board of
  796  administration and specifying the powers, duties, manner of
  797  selection and removal, and compensation, if any, of officers and
  798  board members. In the absence of such a provision, the board of
  799  administration shall be composed of five members, except in the
  800  case of cooperatives having five or fewer units, in which case
  801  in not-for-profit corporations, the board shall consist of not
  802  fewer than three members. In a residential cooperative
  803  association of more than 10 units, coowners of a unit may not
  804  serve as members of the board of directors at the same time
  805  unless the coowners own more than one unit or unless there are
  806  not enough eligible candidates to fill the vacancies on the
  807  board at the time of the vacancy. In the absence of provisions
  808  to the contrary, the board of administration shall have a
  809  president, a secretary, and a treasurer, who shall perform the
  810  duties of those offices customarily performed by officers of
  811  corporations. Unless prohibited in the bylaws, the board of
  812  administration may appoint other officers and grant them those
  813  duties it deems appropriate. Unless otherwise provided in the
  814  bylaws, the officers shall serve without compensation and at the
  815  pleasure of the board. Unless otherwise provided in the bylaws,
  816  the members of the board shall serve without compensation.
  817         2. A person who has been suspended or removed by the
  818  division under this chapter, or who is delinquent in the payment
  819  of any monetary obligation due to the association, is not
  820  eligible to be a candidate for board membership and may not be
  821  listed on the ballot. A director or officer charged by
  822  information or indictment with a felony theft or embezzlement
  823  offense involving the association’s funds or property is
  824  suspended from office. The board shall fill the vacancy
  825  according to general law until the end of the period of the
  826  suspension or the end of the director’s term of office,
  827  whichever occurs first. However, if the charges are resolved
  828  without a finding of guilt or without acceptance of a plea of
  829  guilty or nolo contendere, the director or officer shall be
  830  reinstated for any remainder of his or her term of office. A
  831  member who has such criminal charges pending may not be
  832  appointed or elected to a position as a director or officer. A
  833  person who has been convicted of any felony in this state or in
  834  any United States District Court, or who has been convicted of
  835  any offense in another jurisdiction which would be considered a
  836  felony if committed in this state, is not eligible for board
  837  membership unless such felon’s civil rights have been restored
  838  for at least 5 years as of the date such person seeks election
  839  to the board. The validity of an action by the board is not
  840  affected if it is later determined that a board member is
  841  ineligible for board membership due to having been convicted of
  842  a felony.
  843         3. When a unit owner files a written inquiry by certified
  844  mail with the board of administration, the board shall respond
  845  in writing to the unit owner within 30 days of receipt of the
  846  inquiry. The board’s response shall either give a substantive
  847  response to the inquirer, notify the inquirer that a legal
  848  opinion has been requested, or notify the inquirer that advice
  849  has been requested from the division. If the board requests
  850  advice from the division, the board shall, within 10 days of its
  851  receipt of the advice, provide in writing a substantive response
  852  to the inquirer. If a legal opinion is requested, the board
  853  shall, within 60 days after the receipt of the inquiry, provide
  854  in writing a substantive response to the inquirer. The failure
  855  to provide a substantive response to the inquirer as provided
  856  herein precludes the board from recovering attorney’s fees and
  857  costs in any subsequent litigation, administrative proceeding,
  858  or arbitration arising out of the inquiry. The association may,
  859  through its board of administration, adopt reasonable rules and
  860  regulations regarding the frequency and manner of responding to
  861  the unit owners’ inquiries, one of which may be that the
  862  association is obligated to respond to only one written inquiry
  863  per unit in any given 30-day period. In such case, any
  864  additional inquiry or inquiries must be responded to in the
  865  subsequent 30-day period, or periods, as applicable.
  866         (c) Board of administration meetings.Members of the board
  867  of administration may use e-mail as a means of communication but
  868  may not cast a vote on an association matter via e-mail.
  869  Meetings of the board of administration at which a quorum of the
  870  members is present shall be open to all unit owners. Any unit
  871  owner may tape record or videotape meetings of the board of
  872  administration. The right to attend such meetings includes the
  873  right to speak at such meetings with reference to all designated
  874  agenda items. The division shall adopt reasonable rules
  875  governing the tape recording and videotaping of the meeting. The
  876  association may adopt reasonable written rules governing the
  877  frequency, duration, and manner of unit owner statements.
  878  Adequate notice of all meetings shall be posted in a conspicuous
  879  place upon the cooperative property at least 48 continuous hours
  880  preceding the meeting, except in an emergency. Any item not
  881  included on the notice may be taken up on an emergency basis by
  882  at least a majority plus one of the members of the board. Such
  883  emergency action shall be noticed and ratified at the next
  884  regular meeting of the board. Notice of any meeting in which
  885  regular or special assessments against unit owners are to be
  886  considered must specifically state that assessments will be
  887  considered and provide the estimated amount and description of
  888  the purposes for such assessments. However, Written notice of
  889  any meeting at which nonemergency special assessments, or at
  890  which amendment to rules regarding unit use, will be considered
  891  shall be mailed, delivered, or electronically transmitted to the
  892  unit owners and posted conspicuously on the cooperative property
  893  not less than 14 days before the meeting. Evidence of compliance
  894  with this 14-day notice shall be made by an affidavit executed
  895  by the person providing the notice and filed among the official
  896  records of the association. Upon notice to the unit owners, the
  897  board shall by duly adopted rule designate a specific location
  898  on the cooperative property upon which all notices of board
  899  meetings shall be posted. In lieu of or in addition to the
  900  physical posting of notice of any meeting of the board of
  901  administration on the cooperative property, the association may,
  902  by reasonable rule, adopt a procedure for conspicuously posting
  903  and repeatedly broadcasting the notice and the agenda on a
  904  closed-circuit cable television system serving the cooperative
  905  association. However, if broadcast notice is used in lieu of a
  906  notice posted physically on the cooperative property, the notice
  907  and agenda must be broadcast at least four times every broadcast
  908  hour of each day that a posted notice is otherwise required
  909  under this section. When broadcast notice is provided, the
  910  notice and agenda must be broadcast in a manner and for a
  911  sufficient continuous length of time so as to allow an average
  912  reader to observe the notice and read and comprehend the entire
  913  content of the notice and the agenda. In addition to any of the
  914  authorized means of providing notice of a meeting of the board,
  915  the association may, by rule, adopt a procedure for
  916  conspicuously posting the meeting notice and the agenda on a
  917  website serving the cooperative association for at least the
  918  minimum period of time for which a notice of a meeting is also
  919  required to be physically posted on the cooperative property.
  920  Any rule adopted shall, in addition to other matters, include a
  921  requirement that the association send an electronic notice
  922  providing a hypertext link to the website where the notice is
  923  posted Notice of any meeting in which regular assessments
  924  against unit owners are to be considered for any reason shall
  925  specifically contain a statement that assessments will be
  926  considered and the nature of any such assessments. Meetings of a
  927  committee to take final action on behalf of the board or to make
  928  recommendations to the board regarding the association budget
  929  are subject to the provisions of this paragraph. Meetings of a
  930  committee that does not take final action on behalf of the board
  931  or make recommendations to the board regarding the association
  932  budget are subject to the provisions of this section, unless
  933  those meetings are exempted from this section by the bylaws of
  934  the association. Notwithstanding any other law to the contrary,
  935  the requirement that board meetings and committee meetings be
  936  open to the unit owners does not apply to board or committee
  937  meetings held for the purpose of discussing personnel matters or
  938  meetings between the board or a committee and the association’s
  939  attorney, with respect to proposed or pending litigation, if the
  940  meeting is held for the purpose of seeking or rendering legal
  941  advice.
  942         (m)Director or officer delinquencies.—A director or
  943  officer more than 90 days delinquent in the payment of any
  944  monetary obligation due the association shall be deemed to have
  945  abandoned the office, creating a vacancy in the office to be
  946  filled according to law.
  947         Section 8. Paragraph (b) of subsection (1) of section
  948  719.107, Florida Statutes, is amended to read:
  949         719.107 Common expenses; assessment.—
  950         (1)
  951         (b) If so provided in the bylaws, the cost of a master
  952  antenna television system or duly franchised cable television
  953  service, communications services as defined in chapter 202,
  954  information services, or Internet services obtained pursuant to
  955  a bulk contract shall be deemed a common expense, and if not
  956  obtained pursuant to a bulk contract, such cost shall be
  957  considered common expense if it is designated as such in a
  958  written contract between the board of administration and the
  959  company providing the master television antenna system or the
  960  cable television service, communications services as defined in
  961  chapter 202, information services, or Internet services. The
  962  contract shall be for a term of not less than 2 years.
  963         1. Any contract made by the board after April 2, 1992, for
  964  a community antenna system or duly franchised cable television
  965  service, communications services as defined in chapter 202,
  966  information services, or Internet services may be canceled by a
  967  majority of the voting interests present at the next regular or
  968  special meeting of the association. Any member may make a motion
  969  to cancel the contract, but if no motion is made or if such
  970  motion fails to obtain the required majority at the next regular
  971  or special meeting, whichever is sooner, following the making of
  972  the contract, then such contract shall be deemed ratified for
  973  the term therein expressed.
  974         2. Any such contract shall provide, and shall be deemed to
  975  provide if not expressly set forth, that any hearing impaired or
  976  legally blind unit owner who does not occupy the unit with a
  977  nonhearing impaired or sighted person may discontinue the
  978  service without incurring disconnect fees, penalties, or
  979  subsequent service charges, and as to such units, the owners
  980  shall not be required to pay any common expenses charge related
  981  to such service. If less than all members of an association
  982  share the expenses of cable television, the expense shall be
  983  shared equally by all participating unit owners. The association
  984  may use the provisions of s. 719.108 to enforce payment of the
  985  shares of such costs by the unit owners receiving cable
  986  television.
  987         Section 9. Paragraphs (a) and (c) of subsection (2) and
  988  subsection (7) of section 720.303, Florida Statutes, are
  989  amended, and paragraph (i) is added to subsection (6) of that
  990  section, to read:
  991         720.303 Association powers and duties; meetings of board;
  992  official records; budgets; budget meetings; financial reporting;
  993  association funds; recalls.—
  994         (2) BOARD MEETINGS.—
  995         (a) Members of the board of administration may use e-mail
  996  as a means of communication, but may not cast a vote on an
  997  association matter via e-mail. A meeting of the board of
  998  directors of an association occurs whenever a quorum of the
  999  board gathers to conduct association business. Meetings of the
 1000  board must be open to all members, except for meetings between
 1001  the board and its attorney with respect to proposed or pending
 1002  litigation where the contents of the discussion would otherwise
 1003  be governed by the attorney-client privilege. A meeting of the
 1004  board must be held at a location that is accessible to a
 1005  physically handicapped person if requested by a physically
 1006  handicapped person who has a right to attend the meeting. The
 1007  provisions of this subsection shall also apply to the meetings
 1008  of any committee or other similar body when a final decision
 1009  will be made regarding the expenditure of association funds and
 1010  to meetings of any body vested with the power to approve or
 1011  disapprove architectural decisions with respect to a specific
 1012  parcel of residential property owned by a member of the
 1013  community.
 1014         (c) The bylaws shall provide the following for giving
 1015  notice to parcel owners and members of all board meetings and,
 1016  if they do not do so, shall be deemed to include provide the
 1017  following:
 1018         1. Notices of all board meetings must be posted in a
 1019  conspicuous place in the community at least 48 hours in advance
 1020  of a meeting, except in an emergency. In the alternative, if
 1021  notice is not posted in a conspicuous place in the community,
 1022  notice of each board meeting must be mailed or delivered to each
 1023  member at least 7 days before the meeting, except in an
 1024  emergency. Notwithstanding this general notice requirement, for
 1025  communities with more than 100 members, the association bylaws
 1026  may provide for a reasonable alternative to posting or mailing
 1027  of notice for each board meeting, including publication of
 1028  notice, provision of a schedule of board meetings, or the
 1029  conspicuous posting and repeated broadcasting of the notice on a
 1030  closed-circuit cable television system serving the homeowners’
 1031  association. However, if broadcast notice is used in lieu of a
 1032  notice posted physically in the community, the notice must be
 1033  broadcast at least four times every broadcast hour of each day
 1034  that a posted notice is otherwise required. When broadcast
 1035  notice is provided, the notice and agenda must be broadcast in a
 1036  manner and for a sufficient continuous length of time so as to
 1037  allow an average reader to observe the notice and read and
 1038  comprehend the entire content of the notice and the agenda. The
 1039  association may provide notice by electronic transmission in a
 1040  manner authorized by law for meetings of the board of directors,
 1041  committee meetings requiring notice under this section, and
 1042  annual and special meetings of the members to any member who has
 1043  provided a facsimile number or e-mail address to the association
 1044  to be used for such purposes; however, a member must consent in
 1045  writing to receiving notice by electronic transmission.
 1046         2. An assessment may not be levied at a board meeting
 1047  unless the notice of the meeting includes a statement that
 1048  assessments will be considered and the nature of the
 1049  assessments. Written notice of any meeting at which special
 1050  assessments will be considered or at which amendments to rules
 1051  regarding parcel use will be considered must be mailed,
 1052  delivered, or electronically transmitted to the members and
 1053  parcel owners and posted conspicuously on the property or
 1054  broadcast on closed-circuit cable television not less than 14
 1055  days before the meeting.
 1056         3. Directors may not vote by proxy or by secret ballot at
 1057  board meetings, except that secret ballots may be used in the
 1058  election of officers. This subsection also applies to the
 1059  meetings of any committee or other similar body, when a final
 1060  decision will be made regarding the expenditure of association
 1061  funds, and to any body vested with the power to approve or
 1062  disapprove architectural decisions with respect to a specific
 1063  parcel of residential property owned by a member of the
 1064  community.
 1065         (6) BUDGETS; BUDGET MEETINGS.—
 1066         (i)1.If a board adopts in any fiscal year an annual budget
 1067  that requires assessments against parcel owners which exceed 115
 1068  percent of assessments for the preceding fiscal year, the board
 1069  shall conduct a special meeting of the parcel owners to consider
 1070  a substitute budget if the board receives, within 21 days after
 1071  adoption of the annual budget, a written request for a special
 1072  meeting from at least 10 percent of all voting interests. The
 1073  special meeting shall be conducted within 60 days after adoption
 1074  of the annual budget. At least 14 days before such special
 1075  meeting, the board shall hand deliver to each parcel owner, or
 1076  mail to each parcel owner at the address last furnished to the
 1077  association, a notice of the meeting. An officer or manager of
 1078  the association, or other person providing notice of such
 1079  meeting, shall execute an affidavit evidencing compliance with
 1080  this notice requirement, and such affidavit shall be filed among
 1081  the official records of the association. Parcel owners may
 1082  consider and adopt a substitute budget at the special meeting. A
 1083  substitute budget is adopted if approved by a majority of all
 1084  voting interests unless the bylaws require adoption by a greater
 1085  percentage of voting interests. If there is not a quorum at the
 1086  special meeting or a substitute budget is not adopted, the
 1087  annual budget previously adopted by the board shall take effect
 1088  as scheduled.
 1089         2.Any determination of whether assessments exceed 115
 1090  percent of assessments for the prior fiscal year shall exclude
 1091  any authorized provision for reasonable reserves for repair or
 1092  replacement of the association property, anticipated expenses of
 1093  the association which the board does not expect to be incurred
 1094  on a regular or annual basis, or assessments for betterments to
 1095  the condominium property.
 1096         3.If the developer controls the board, assessments may not
 1097  exceed 115 percent of assessments for the prior fiscal year
 1098  unless approved by a majority of all voting interests.
 1099         (7) FINANCIAL REPORTING.—Within 90 days after the end of
 1100  the fiscal year, or annually on the date provided in the bylaws,
 1101  the association shall prepare and complete, or contract with a
 1102  third party for the preparation and completion of, a financial
 1103  report for the preceding fiscal year. Within 21 days after the
 1104  final financial report is completed by the association or
 1105  received from the third party, but not later than 120 days after
 1106  the end of the fiscal year or other date as provided in the
 1107  bylaws, the association shall, within the time limits set forth
 1108  in subsection (5), provide each member with a copy of the annual
 1109  financial report or a written notice that a copy of the
 1110  financial report is available upon request at no charge to the
 1111  member. Financial reports shall be prepared as follows:
 1112         (a) An association that meets the criteria of this
 1113  paragraph shall prepare or cause to be prepared a complete set
 1114  of financial statements in accordance with generally accepted
 1115  accounting principles as adopted by the Board of Accountancy.
 1116  The financial statements shall be based upon the association’s
 1117  total annual revenues, as follows:
 1118         1. An association with total annual revenues of $150,000 or
 1119  more, but less than $300,000, shall prepare compiled financial
 1120  statements.
 1121         2. An association with total annual revenues of at least
 1122  $300,000, but less than $500,000, shall prepare reviewed
 1123  financial statements.
 1124         3. An association with total annual revenues of $500,000 or
 1125  more shall prepare audited financial statements.
 1126         (b)1. An association with total annual revenues of less
 1127  than $150,000 shall prepare a report of cash receipts and
 1128  expenditures.
 1129         2.An association in a community of fewer than 50 parcels,
 1130  regardless of the association’s annual revenues, may prepare a
 1131  report of cash receipts and expenditures in lieu of financial
 1132  statements required by paragraph (a) unless the governing
 1133  documents provide otherwise.
 1134         2.3. A report of cash receipts and disbursement must
 1135  disclose the amount of receipts by accounts and receipt
 1136  classifications and the amount of expenses by accounts and
 1137  expense classifications, including, but not limited to, the
 1138  following, as applicable: costs for security, professional, and
 1139  management fees and expenses; taxes; costs for recreation
 1140  facilities; expenses for refuse collection and utility services;
 1141  expenses for lawn care; costs for building maintenance and
 1142  repair; insurance costs; administration and salary expenses; and
 1143  reserves if maintained by the association.
 1144         (c) If 20 percent of the parcel owners petition the board
 1145  for a level of financial reporting higher than that required by
 1146  this section, the association shall duly notice and hold a
 1147  meeting of members within 30 days of receipt of the petition for
 1148  the purpose of voting on raising the level of reporting for that
 1149  fiscal year. Upon approval of a majority of the total voting
 1150  interests of the parcel owners, the association shall prepare or
 1151  cause to be prepared, shall amend the budget or adopt a special
 1152  assessment to pay for the financial report regardless of any
 1153  provision to the contrary in the governing documents, and shall
 1154  provide within 90 days of the meeting or the end of the fiscal
 1155  year, whichever occurs later:
 1156         1. Compiled, reviewed, or audited financial statements, if
 1157  the association is otherwise required to prepare a report of
 1158  cash receipts and expenditures;
 1159         2. Reviewed or audited financial statements, if the
 1160  association is otherwise required to prepare compiled financial
 1161  statements; or
 1162         3. Audited financial statements if the association is
 1163  otherwise required to prepare reviewed financial statements.
 1164         (d) If approved by a majority of the voting interests
 1165  present at a properly called meeting of the association, an
 1166  association may prepare or cause to be prepared:
 1167         1. A report of cash receipts and expenditures in lieu of a
 1168  compiled, reviewed, or audited financial statement;
 1169         2. A report of cash receipts and expenditures or a compiled
 1170  financial statement in lieu of a reviewed or audited financial
 1171  statement; or
 1172         3. A report of cash receipts and expenditures, a compiled
 1173  financial statement, or a reviewed financial statement in lieu
 1174  of an audited financial statement.
 1175         Section 10. Paragraph (a) of subsection (9) of section
 1176  720.306, Florida Statutes, is amended to read:
 1177         720.306 Meetings of members; voting and election
 1178  procedures; amendments.—
 1179         (9) ELECTIONS AND BOARD VACANCIES.—
 1180         (a) Elections of directors must be conducted in accordance
 1181  with the procedures set forth in the governing documents of the
 1182  association. Except as provided in paragraph (b), all members of
 1183  the association are eligible to serve on the board of directors,
 1184  and a member may nominate himself or herself as a candidate for
 1185  the board at a meeting where the election is to be held;
 1186  provided, however, that if the election process allows
 1187  candidates to be nominated in advance of the meeting, the
 1188  association is not required to allow nominations at the meeting.
 1189  An election is not required unless more candidates are nominated
 1190  than vacancies exist. If an election is not required because
 1191  there are either an equal number or fewer qualified candidates
 1192  than vacancies exist, and if nominations from the floor are not
 1193  required pursuant to this section or the bylaws, write-in
 1194  nominations are not permitted, and such candidates shall
 1195  commence service on the board of directors, regardless of
 1196  whether a quorum is attained at the annual meeting. Except as
 1197  otherwise provided in the governing documents, boards of
 1198  directors must be elected by a plurality of the votes cast by
 1199  eligible voters. Any challenge to the election process must be
 1200  commenced within 60 days after the election results are
 1201  announced.
 1202         Section 11. Paragraph (b) of subsection (3) of section
 1203  720.3085, Florida Statutes, is amended to read:
 1204         720.3085 Payment for assessments; lien claims.—
 1205         (3) Assessments and installments on assessments that are
 1206  not paid when due bear interest from the due date until paid at
 1207  the rate provided in the declaration of covenants or the bylaws
 1208  of the association, which rate may not exceed the rate allowed
 1209  by law. If no rate is provided in the declaration or bylaws,
 1210  interest accrues at the rate of 18 percent per year.
 1211         (b) Any payment received by an association and accepted
 1212  shall be applied first to any interest accrued, then to any
 1213  administrative late fee, then to any costs and reasonable
 1214  attorney fees incurred in collection, and then to the delinquent
 1215  assessment. This paragraph applies notwithstanding any
 1216  restrictive endorsement, designation, or instruction placed on
 1217  or accompanying a payment. A late fee is not subject to the
 1218  provisions of chapter 687 and is not a fine. The foregoing is
 1219  applicable notwithstanding s. 673.3111, any purported accord and
 1220  satisfaction, or any restrictive endorsement, designation, or
 1221  instruction placed on or accompanying a payment. The preceding
 1222  sentence is intended to clarify existing law.
 1223         Section 12. This act shall take effect July 1, 2017.