Florida Senate - 2017                       CS for CS for SB 744
       
       
        
       By the Committees on Judiciary; and Regulated Industries; and
       Senator Passidomo
       
       
       
       
       590-04109-17                                           2017744c2
    1                        A bill to be entitled                      
    2         An act relating to community associations; creating s.
    3         633.2225, F.S.; requiring certain condominium or
    4         cooperative associations to post certain signs or
    5         symbols on buildings; requiring the State Fire Marshal
    6         to ensure that the dimensions and placement of the
    7         signs or symbols do not diminish the aesthetic value
    8         of the buildings on which they are placed and to adopt
    9         rules governing such signs or symbols; providing for
   10         enforcement; providing penalties; amending s. 718.111,
   11         F.S.; revising reporting requirements; amending s.
   12         718.112, F.S.; revising provisions relating to
   13         required condominium and cooperative association
   14         bylaws; authorizing an association to adopt rules for
   15         posting certain notices on a website; revising
   16         provisions relating to evidence of condominium and
   17         cooperative association compliance with the fire and
   18         life safety code; revising unit and common elements
   19         required to be retrofitted; revising provisions
   20         relating to an association vote to forego
   21         retrofitting; providing applicability; amending s.
   22         718.113, F.S.; revising voting requirements relating
   23         to alterations and additions to certain common
   24         elements or association property; amending s. 718.117,
   25         F.S.; providing legislative findings; revising voting
   26         requirements for the rejection of a plan of
   27         termination; increasing the amount of time before a
   28         subsequent plan of termination may be considered under
   29         certain conditions; revising applicability; revising
   30         the requirements to qualify for payment as a homestead
   31         owner if the owner has rejected a plan of termination;
   32         revising and providing notice requirements; providing
   33         applicability; amending s. 719.104, F.S.; revising
   34         recordkeeping and reporting requirements; amending s.
   35         719.1055, F.S.; revising provisions relating to
   36         required cooperative association bylaws; revising
   37         provisions relating to evidence of condominium and
   38         cooperative association compliance with the fire and
   39         life safety code; revising unit and common elements
   40         required to be retrofitted; revising provisions
   41         relating to an association vote to forego
   42         retrofitting; providing applicability; amending s.
   43         719.106, F.S.; revising requirements to serve as a
   44         board member; prohibiting a board member from voting
   45         via e-mail; authorizing an association to adopt rules
   46         for posting certain notices on a website; requiring
   47         that directors who are delinquent in certain payments
   48         owed in excess of certain periods of time be deemed to
   49         have abandoned their offices; amending s. 719.107,
   50         F.S.; specifying certain services which are obtained
   51         pursuant to a bulk contract to be deemed a common
   52         expense; amending s. 720.303, F.S.; prohibiting a
   53         board member from voting via e-mail; revising certain
   54         notice requirements relating to board meetings;
   55         providing an effective date.
   56          
   57  Be It Enacted by the Legislature of the State of Florida:
   58  
   59         Section 1. Section 633.2225, Florida Statutes, is created
   60  to read:
   61         633.2225Condominium and cooperative buildings without
   62  sprinkler systems; notice requirements; enforcement.—
   63         (1)The board of a condominium or cooperative association
   64  that operates a building of three stories or more that has not
   65  installed a sprinkler system in the common areas of the building
   66  shall mark the building with a sign or symbol approved by the
   67  State Fire Marshal in a manner sufficient to warn persons
   68  conducting fire control and other emergency operations of the
   69  lack of a sprinkler system in the common areas.
   70         (2)The State Fire Marshal shall ensure that the dimensions
   71  and placement of the sign or symbol do not diminish the
   72  aesthetic value of the building and shall adopt rules necessary
   73  to implement this section. Among other things, the rules must
   74  address:
   75         (a)The dimensions and color of such sign or symbol.
   76         (b)The time within which the condominium or cooperative
   77  buildings without sprinkler systems shall be marked as required
   78  by this section.
   79         (c)The location on each condominium or cooperative
   80  building without a sprinkler system where such sign or symbol
   81  must be posted.
   82         (3)The State Fire Marshal, and local fire officials in
   83  accordance with s. 633.118, shall enforce this section. An owner
   84  who fails to comply with the requirements of this section is
   85  subject to penalties as provided in s. 633.228.
   86         Section 2. Subsections (12) and (13) of section 718.111,
   87  Florida Statutes, are amended to read:
   88         718.111 The association.—
   89         (12) OFFICIAL RECORDS.—
   90         (a) From the inception of the association, the association
   91  shall maintain each of the following items, if applicable, which
   92  constitutes the official records of the association:
   93         1. A copy of the plans, permits, warranties, and other
   94  items provided by the developer pursuant to s. 718.301(4).
   95         2. A photocopy of the recorded declaration of condominium
   96  of each condominium operated by the association and each
   97  amendment to each declaration.
   98         3. A photocopy of the recorded bylaws of the association
   99  and each amendment to the bylaws.
  100         4. A certified copy of the articles of incorporation of the
  101  association, or other documents creating the association, and
  102  each amendment thereto.
  103         5. A copy of the current rules of the association.
  104         6. A book or books that contain the minutes of all meetings
  105  of the association, the board of administration, and the unit
  106  owners, which minutes must be retained for at least 7 years.
  107         7. A current roster of all unit owners and their mailing
  108  addresses, unit identifications, and voting certifications, and,
  109  if known, telephone numbers. The association shall also maintain
  110  the electronic mailing addresses and facsimile numbers of unit
  111  owners consenting to receive notice by electronic transmission.
  112  The electronic mailing addresses and facsimile numbers are not
  113  accessible to unit owners if consent to receive notice by
  114  electronic transmission is not provided in accordance with
  115  subparagraph (c)5. However, the association is not liable for an
  116  inadvertent disclosure of the electronic mail address or
  117  facsimile number for receiving electronic transmission of
  118  notices.
  119         8. All current insurance policies of the association and
  120  condominiums operated by the association.
  121         9. A current copy of any management agreement, lease, or
  122  other contract to which the association is a party or under
  123  which the association or the unit owners have an obligation or
  124  responsibility.
  125         10. Bills of sale or transfer for all property owned by the
  126  association.
  127         11. Accounting records for the association and separate
  128  accounting records for each condominium that the association
  129  operates. All accounting records must be maintained for at least
  130  7 years. Any person who knowingly or intentionally defaces or
  131  destroys such records, or who knowingly or intentionally fails
  132  to create or maintain such records, with the intent of causing
  133  harm to the association or one or more of its members, is
  134  personally subject to a civil penalty pursuant to s.
  135  718.501(1)(d). The accounting records must include, but are not
  136  limited to:
  137         a. Accurate, itemized, and detailed records of all receipts
  138  and expenditures.
  139         b. A current account and a monthly, bimonthly, or quarterly
  140  statement of the account for each unit designating the name of
  141  the unit owner, the due date and amount of each assessment, the
  142  amount paid on the account, and the balance due.
  143         c. All audits, reviews, accounting statements, and
  144  financial reports of the association or condominium.
  145         d. All contracts for work to be performed. Bids for work to
  146  be performed are also considered official records and must be
  147  maintained by the association for 1 year.
  148         12. Ballots, sign-in sheets, voting proxies, and all other
  149  papers and electronic records relating to voting by unit owners,
  150  which must be maintained for 1 year from the date of the
  151  election, vote, or meeting to which the document relates,
  152  notwithstanding paragraph (b).
  153         13. All rental records if the association is acting as
  154  agent for the rental of condominium units.
  155         14. A copy of the current question and answer sheet as
  156  described in s. 718.504.
  157         15. All other written records of the association not
  158  specifically included in the foregoing which are related to the
  159  operation of the association.
  160         16. A copy of the inspection report as described in s.
  161  718.301(4)(p).
  162         (b) The official records of the association must be
  163  maintained within the state for at least 7 years. The records of
  164  the association shall be made available to a unit owner within
  165  45 miles of the condominium property or within the county in
  166  which the condominium property is located within 10 5 working
  167  days after receipt of a written request by the board or its
  168  designee. However, such distance requirement does not apply to
  169  an association governing a timeshare condominium. This paragraph
  170  may be complied with by having a copy of the official records of
  171  the association available for inspection or copying on the
  172  condominium property or association property, or the association
  173  may offer the option of making the records available to a unit
  174  owner electronically via the Internet or by allowing the records
  175  to be viewed in electronic format on a computer screen and
  176  printed upon request. The association is not responsible for the
  177  use or misuse of the information provided to an association
  178  member or his or her authorized representative pursuant to the
  179  compliance requirements of this chapter unless the association
  180  has an affirmative duty not to disclose such information
  181  pursuant to this chapter.
  182         (c) The official records of the association are open to
  183  inspection by any association member or the authorized
  184  representative of such member at all reasonable times. The right
  185  to inspect the records includes the right to make or obtain
  186  copies, at the reasonable expense, if any, of the member. The
  187  association may adopt reasonable rules regarding the frequency,
  188  time, location, notice, and manner of record inspections and
  189  copying. The failure of an association to provide the records
  190  within 10 working days after receipt of a written request
  191  creates a rebuttable presumption that the association willfully
  192  failed to comply with this paragraph. A unit owner who is denied
  193  access to official records is entitled to the actual damages or
  194  minimum damages for the association’s willful failure to comply.
  195  Minimum damages are $50 per calendar day for up to 10 days,
  196  beginning on the 11th working day after receipt of the written
  197  request. The failure to permit inspection entitles any person
  198  prevailing in an enforcement action to recover reasonable
  199  attorney fees from the person in control of the records who,
  200  directly or indirectly, knowingly denied access to the records.
  201  Any person who knowingly or intentionally defaces or destroys
  202  accounting records that are required by this chapter to be
  203  maintained during the period for which such records are required
  204  to be maintained, or who knowingly or intentionally fails to
  205  create or maintain accounting records that are required to be
  206  created or maintained, with the intent of causing harm to the
  207  association or one or more of its members, is personally subject
  208  to a civil penalty pursuant to s. 718.501(1)(d). The association
  209  shall maintain an adequate number of copies of the declaration,
  210  articles of incorporation, bylaws, and rules, and all amendments
  211  to each of the foregoing, as well as the question and answer
  212  sheet as described in s. 718.504 and year-end financial
  213  information required under this section, on the condominium
  214  property to ensure their availability to unit owners and
  215  prospective purchasers, and may charge its actual costs for
  216  preparing and furnishing these documents to those requesting the
  217  documents. An association shall allow a member or his or her
  218  authorized representative to use a portable device, including a
  219  smartphone, tablet, portable scanner, or any other technology
  220  capable of scanning or taking photographs, to make an electronic
  221  copy of the official records in lieu of the association’s
  222  providing the member or his or her authorized representative
  223  with a copy of such records. The association may not charge a
  224  member or his or her authorized representative for the use of a
  225  portable device. Notwithstanding this paragraph, the following
  226  records are not accessible to unit owners:
  227         1. Any record protected by the lawyer-client privilege as
  228  described in s. 90.502 and any record protected by the work
  229  product privilege, including a record prepared by an association
  230  attorney or prepared at the attorney’s express direction, which
  231  reflects a mental impression, conclusion, litigation strategy,
  232  or legal theory of the attorney or the association, and which
  233  was prepared exclusively for civil or criminal litigation or for
  234  adversarial administrative proceedings, or which was prepared in
  235  anticipation of such litigation or proceedings until the
  236  conclusion of the litigation or proceedings.
  237         2. Information obtained by an association in connection
  238  with the approval of the lease, sale, or other transfer of a
  239  unit.
  240         3. Personnel records of association or management company
  241  employees, including, but not limited to, disciplinary, payroll,
  242  health, and insurance records. For purposes of this
  243  subparagraph, the term “personnel records” does not include
  244  written employment agreements with an association employee or
  245  management company, or budgetary or financial records that
  246  indicate the compensation paid to an association employee.
  247         4. Medical records of unit owners.
  248         5. Social security numbers, driver license numbers, credit
  249  card numbers, e-mail addresses, telephone numbers, facsimile
  250  numbers, emergency contact information, addresses of a unit
  251  owner other than as provided to fulfill the association’s notice
  252  requirements, and other personal identifying information of any
  253  person, excluding the person’s name, unit designation, mailing
  254  address, property address, and any address, e-mail address, or
  255  facsimile number provided to the association to fulfill the
  256  association’s notice requirements. Notwithstanding the
  257  restrictions in this subparagraph, an association may print and
  258  distribute to parcel owners a directory containing the name,
  259  parcel address, and all telephone numbers of each parcel owner.
  260  However, an owner may exclude his or her telephone numbers from
  261  the directory by so requesting in writing to the association. An
  262  owner may consent in writing to the disclosure of other contact
  263  information described in this subparagraph. The association is
  264  not liable for the inadvertent disclosure of information that is
  265  protected under this subparagraph if the information is included
  266  in an official record of the association and is voluntarily
  267  provided by an owner and not requested by the association.
  268         6. Electronic security measures that are used by the
  269  association to safeguard data, including passwords.
  270         7. The software and operating system used by the
  271  association which allow the manipulation of data, even if the
  272  owner owns a copy of the same software used by the association.
  273  The data is part of the official records of the association.
  274         (d) The association shall prepare a question and answer
  275  sheet as described in s. 718.504, and shall update it annually.
  276         (e)1. The association or its authorized agent is not
  277  required to provide a prospective purchaser or lienholder with
  278  information about the condominium or the association other than
  279  information or documents required by this chapter to be made
  280  available or disclosed. The association or its authorized agent
  281  may charge a reasonable fee to the prospective purchaser,
  282  lienholder, or the current unit owner for providing good faith
  283  responses to requests for information by or on behalf of a
  284  prospective purchaser or lienholder, other than that required by
  285  law, if the fee does not exceed $150 plus the reasonable cost of
  286  photocopying and any attorney’s fees incurred by the association
  287  in connection with the response.
  288         2. An association and its authorized agent are not liable
  289  for providing such information in good faith pursuant to a
  290  written request if the person providing the information includes
  291  a written statement in substantially the following form: “The
  292  responses herein are made in good faith and to the best of my
  293  ability as to their accuracy.”
  294         (f) An outgoing board or committee member must relinquish
  295  all official records and property of the association in his or
  296  her possession or under his or her control to the incoming board
  297  within 5 days after the election. The division shall impose a
  298  civil penalty as set forth in s. 718.501(1)(d)6. against an
  299  outgoing board or committee member who willfully and knowingly
  300  fails to relinquish such records and property.
  301         (13) FINANCIAL REPORTING.—Within 90 days after the end of
  302  the fiscal year, or annually on a date provided in the bylaws,
  303  the association shall prepare and complete, or contract for the
  304  preparation and completion of, a financial report for the
  305  preceding fiscal year. Within 21 days after the final financial
  306  report is completed by the association or received from the
  307  third party, but not later than 120 days after the end of the
  308  fiscal year or other date as provided in the bylaws, the
  309  association shall mail to each unit owner at the address last
  310  furnished to the association by the unit owner, or hand deliver
  311  to each unit owner, a copy of the financial report or a notice
  312  that a copy of the financial report will be mailed or hand
  313  delivered to the unit owner, without charge, upon receipt of a
  314  written request from the unit owner. The division shall adopt
  315  rules setting forth uniform accounting principles and standards
  316  to be used by all associations and addressing the financial
  317  reporting requirements for multicondominium associations. The
  318  rules must include, but not be limited to, standards for
  319  presenting a summary of association reserves, including a good
  320  faith estimate disclosing the annual amount of reserve funds
  321  that would be necessary for the association to fully fund
  322  reserves for each reserve item based on the straight-line
  323  accounting method. This disclosure is not applicable to reserves
  324  funded via the pooling method. In adopting such rules, the
  325  division shall consider the number of members and annual
  326  revenues of an association. Financial reports shall be prepared
  327  as follows:
  328         (a) An association that meets the criteria of this
  329  paragraph shall prepare a complete set of financial statements
  330  in accordance with generally accepted accounting principles. The
  331  financial statements must be based upon the association’s total
  332  annual revenues, as follows:
  333         1. An association with total annual revenues of $150,000 or
  334  more, but less than $300,000, shall prepare compiled financial
  335  statements.
  336         2. An association with total annual revenues of at least
  337  $300,000, but less than $500,000, shall prepare reviewed
  338  financial statements.
  339         3. An association with total annual revenues of $500,000 or
  340  more shall prepare audited financial statements.
  341         (b)1. An association with total annual revenues of less
  342  than $150,000 shall prepare a report of cash receipts and
  343  expenditures.
  344         2.An association that operates fewer than 50 units,
  345  regardless of the association’s annual revenues, shall prepare a
  346  report of cash receipts and expenditures in lieu of financial
  347  statements required by paragraph (a).
  348         2.3. A report of cash receipts and disbursements must
  349  disclose the amount of receipts by accounts and receipt
  350  classifications and the amount of expenses by accounts and
  351  expense classifications, including, but not limited to, the
  352  following, as applicable: costs for security, professional and
  353  management fees and expenses, taxes, costs for recreation
  354  facilities, expenses for refuse collection and utility services,
  355  expenses for lawn care, costs for building maintenance and
  356  repair, insurance costs, administration and salary expenses, and
  357  reserves accumulated and expended for capital expenditures,
  358  deferred maintenance, and any other category for which the
  359  association maintains reserves.
  360         (c) An association may prepare, without a meeting of or
  361  approval by the unit owners:
  362         1. Compiled, reviewed, or audited financial statements, if
  363  the association is required to prepare a report of cash receipts
  364  and expenditures;
  365         2. Reviewed or audited financial statements, if the
  366  association is required to prepare compiled financial
  367  statements; or
  368         3. Audited financial statements if the association is
  369  required to prepare reviewed financial statements.
  370         (d) If approved by a majority of the voting interests
  371  present at a properly called meeting of the association, an
  372  association may prepare:
  373         1. A report of cash receipts and expenditures in lieu of a
  374  compiled, reviewed, or audited financial statement;
  375         2. A report of cash receipts and expenditures or a compiled
  376  financial statement in lieu of a reviewed or audited financial
  377  statement; or
  378         3. A report of cash receipts and expenditures, a compiled
  379  financial statement, or a reviewed financial statement in lieu
  380  of an audited financial statement.
  381  
  382  Such meeting and approval must occur before the end of the
  383  fiscal year and is effective only for the fiscal year in which
  384  the vote is taken, except that the approval may also be
  385  effective for the following fiscal year. If the developer has
  386  not turned over control of the association, all unit owners,
  387  including the developer, may vote on issues related to the
  388  preparation of the association’s financial reports, from the
  389  date of incorporation of the association through the end of the
  390  second fiscal year after the fiscal year in which the
  391  certificate of a surveyor and mapper is recorded pursuant to s.
  392  718.104(4)(e) or an instrument that transfers title to a unit in
  393  the condominium which is not accompanied by a recorded
  394  assignment of developer rights in favor of the grantee of such
  395  unit is recorded, whichever occurs first. Thereafter, all unit
  396  owners except the developer may vote on such issues until
  397  control is turned over to the association by the developer. Any
  398  audit or review prepared under this section shall be paid for by
  399  the developer if done before turnover of control of the
  400  association. An association may not waive the financial
  401  reporting requirements of this section for more than 3
  402  consecutive years.
  403         Section 3. Paragraphs (c) and (l) of subsection (2) of
  404  section 718.112, Florida Statutes, are amended to read:
  405         718.112 Bylaws.—
  406         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  407  following and, if they do not do so, shall be deemed to include
  408  the following:
  409         (c) Board of administration meetings.—Meetings of the board
  410  of administration at which a quorum of the members is present
  411  are open to all unit owners. Members of the board of
  412  administration may use e-mail as a means of communication but
  413  may not cast a vote on an association matter via e-mail. A unit
  414  owner may tape record or videotape the meetings. The right to
  415  attend such meetings includes the right to speak at such
  416  meetings with reference to all designated agenda items. The
  417  division shall adopt reasonable rules governing the tape
  418  recording and videotaping of the meeting. The association may
  419  adopt written reasonable rules governing the frequency,
  420  duration, and manner of unit owner statements.
  421         1. Adequate notice of all board meetings, which must
  422  specifically identify all agenda items, must be posted
  423  conspicuously on the condominium property at least 48 continuous
  424  hours before the meeting except in an emergency. If 20 percent
  425  of the voting interests petition the board to address an item of
  426  business, the board, within 60 days after receipt of the
  427  petition, shall place the item on the agenda at its next regular
  428  board meeting or at a special meeting called for that purpose.
  429  An item not included on the notice may be taken up on an
  430  emergency basis by a vote of at least a majority plus one of the
  431  board members. Such emergency action must be noticed and
  432  ratified at the next regular board meeting. Notice of any
  433  meeting in which a regular or special assessment against unit
  434  owners is to be considered must specifically state that
  435  assessments will be considered and provide the estimated amount
  436  and a description of the purposes for such assessments. However,
  437  Written notice of a meeting at which a nonemergency special
  438  assessment or an amendment to rules regarding unit use will be
  439  considered must be mailed, delivered, or electronically
  440  transmitted to the unit owners and posted conspicuously on the
  441  condominium property at least 14 days before the meeting.
  442  Evidence of compliance with this 14-day notice requirement must
  443  be made by an affidavit executed by the person providing the
  444  notice and filed with the official records of the association.
  445  Upon notice to the unit owners, the board shall, by duly adopted
  446  rule, designate a specific location on the condominium or
  447  association property where all notices of board meetings must be
  448  posted. If there is no condominium property or association
  449  property where notices can be posted, notices shall be mailed,
  450  delivered, or electronically transmitted to each unit owner at
  451  least 14 days before the meeting. In lieu of or in addition to
  452  the physical posting of the notice on the condominium property,
  453  the association may, by reasonable rule, adopt a procedure for
  454  conspicuously posting and repeatedly broadcasting the notice and
  455  the agenda on a closed-circuit cable television system serving
  456  the condominium association. However, if broadcast notice is
  457  used in lieu of a notice physically posted on condominium
  458  property, the notice and agenda must be broadcast at least four
  459  times every broadcast hour of each day that a posted notice is
  460  otherwise required under this section. If broadcast notice is
  461  provided, the notice and agenda must be broadcast in a manner
  462  and for a sufficient continuous length of time so as to allow an
  463  average reader to observe the notice and read and comprehend the
  464  entire content of the notice and the agenda. In addition to any
  465  of the authorized means of providing notice of a meeting of the
  466  board, the association may adopt by rule a procedure for
  467  conspicuously posting the meeting notice and the agenda on a
  468  website serving the condominium association for at least the
  469  minimum period of time for which a notice of a meeting is also
  470  required to be physically posted on the condominium property.
  471  Any rule adopted shall, in addition to other matters, include a
  472  requirement that the association send an electronic notice
  473  providing a hypertext link to the website where the notice is
  474  posted Notice of any meeting in which regular or special
  475  assessments against unit owners are to be considered must
  476  specifically state that assessments will be considered and
  477  provide the nature, estimated cost, and description of the
  478  purposes for such assessments.
  479         2. Meetings of a committee to take final action on behalf
  480  of the board or make recommendations to the board regarding the
  481  association budget are subject to this paragraph. Meetings of a
  482  committee that does not take final action on behalf of the board
  483  or make recommendations to the board regarding the association
  484  budget are subject to this section, unless those meetings are
  485  exempted from this section by the bylaws of the association.
  486         3. Notwithstanding any other law, the requirement that
  487  board meetings and committee meetings be open to the unit owners
  488  does not apply to:
  489         a. Meetings between the board or a committee and the
  490  association’s attorney, with respect to proposed or pending
  491  litigation, if the meeting is held for the purpose of seeking or
  492  rendering legal advice; or
  493         b. Board meetings held for the purpose of discussing
  494  personnel matters.
  495         (l) Certificate of compliance.—A provision that a
  496  certificate of compliance from a licensed electrical contractor
  497  or electrician may be accepted by the association’s board as
  498  evidence of compliance of the condominium units with the
  499  applicable fire and life safety code must be included.
  500  Notwithstanding chapter 633, s. 509.215, s. 553.895(1), or of
  501  any other code, statute, ordinance, administrative rule, or
  502  regulation, or any interpretation of the foregoing, an
  503  association, residential condominium, or unit owner is not
  504  obligated to retrofit the common elements, association property,
  505  or units of a residential condominium with a fire sprinkler
  506  system or other engineered lifesafety system in a building that
  507  is 75 feet or less in height. There is no obligation to retrofit
  508  for a building greater than 75 feet in height, calculated from
  509  the lowest level of fire department vehicle access to the floor
  510  of the highest occupiable story has been certified for occupancy
  511  by the applicable governmental entity if the unit owners have
  512  voted to forego such retrofitting by the affirmative vote of
  513  two-thirds a majority of all voting interests in the affected
  514  condominium. There is no requirement that owners in condominiums
  515  of 75 feet or less conduct an opt-out vote and such condominiums
  516  are exempt from fire sprinkler or other engineered lifesafety
  517  retrofitting. The preceding sentence is intended to clarify
  518  existing law. The local authority having jurisdiction may not
  519  require completion of retrofitting with a fire sprinkler system
  520  or other engineered lifesafety system before January 1, 2022
  521  2020. By December 31, 2018 2016, an a residential condominium
  522  association that operates a residential condominium that is not
  523  in compliance with the requirements for a fire sprinkler system
  524  or other engineered lifesafety system and has not voted to
  525  forego retrofitting of such a system must initiate an
  526  application for a building permit for the required installation
  527  with the local government having jurisdiction demonstrating that
  528  the association will become compliant by December 31, 2021 2019.
  529         1. A vote to forego required retrofitting may be obtained
  530  by limited proxy or by a ballot personally cast at a duly called
  531  membership meeting, or by execution of a written consent by the
  532  member, or by electronic voting, and is effective upon recording
  533  a certificate executed by an officer or agent of the association
  534  attesting to such vote in the public records of the county where
  535  the condominium is located. When an opt-out vote is to be
  536  conducted at a meeting, the association shall mail or hand
  537  deliver to each unit owner, at each physical and electronic
  538  address of record, written notice at least 14 days before the
  539  membership meeting in which the vote to forego retrofitting of
  540  the required fire sprinkler system or other engineered
  541  lifesafety system is to take place. Within 30 days after the
  542  association’s opt-out vote, notice of the results of the opt-out
  543  vote must be mailed or hand delivered to all unit owners at each
  544  physical and electronic address of record. Evidence of
  545  compliance with this notice requirement must be made by
  546  affidavit executed by the person providing the notice and filed
  547  among the official records of the association. Failure to
  548  provide timely notice to unit owners does not invalidate an
  549  otherwise valid opt-out vote if notice of the results is
  550  provided to the owners. After notice is provided to each owner,
  551  a copy must be provided by the current owner to a new owner
  552  before closing and by a unit owner to a renter before signing a
  553  lease.
  554         2. If there has been a previous vote to forego
  555  retrofitting, a vote to require retrofitting may be obtained at
  556  a special meeting of the unit owners called by a petition of at
  557  least 10 percent of the voting interests or by a majority of the
  558  board of directors. The vote to require retrofitting requires a
  559  two-thirds vote of the total voting interest. Such a vote may
  560  only be called once every 3 years. Notice shall be provided as
  561  required for any regularly called meeting of the unit owners,
  562  and must state the purpose of the meeting. Electronic
  563  transmission may not be used to provide notice of a meeting
  564  called in whole or in part for this purpose.
  565         3. As part of the information collected annually from
  566  condominiums, the division shall require condominium
  567  associations to report the membership vote and recording of a
  568  certificate under this subsection and, if retrofitting has been
  569  undertaken, the per-unit cost of such work. The division shall
  570  annually report to the Division of State Fire Marshal of the
  571  Department of Financial Services the number of condominiums that
  572  have elected to forego retrofitting. Compliance with this
  573  administrative reporting requirement does not affect the
  574  validity of an opt-out vote.
  575         4. Notwithstanding s. 553.509, a residential association
  576  may not be obligated to, and may forego the retrofitting of, any
  577  improvements required by s. 553.509(2) upon an affirmative vote
  578  of two-thirds a majority of the voting interests in the affected
  579  condominium.
  580         5.The provisions of this paragraph do not apply to
  581  timeshare condominium associations, which shall be governed by
  582  s. 721.24.
  583         Section 4. Subsection (2) of section 718.113, Florida
  584  Statutes, is amended to read:
  585         718.113 Maintenance; limitation upon improvement; display
  586  of flag; hurricane shutters and protection; display of religious
  587  decorations.—
  588         (2)(a) Except as otherwise provided in this section, there
  589  shall be no material alteration or substantial additions to the
  590  common elements or to real property which is association
  591  property, except in a manner provided in the declaration as
  592  originally recorded or as amended under the procedures provided
  593  therein. If the declaration as originally recorded or as amended
  594  under the procedures provided therein does not specify the
  595  procedure for approval of material alterations or substantial
  596  additions, 75 percent of the total voting interests of the
  597  association must approve the alterations or additions before the
  598  material alterations or substantial additions are commenced.
  599  This paragraph is intended to clarify existing law and applies
  600  to associations existing on the effective date of this act
  601  October 1, 2008.
  602         (b) There shall not be any material alteration of, or
  603  substantial addition to, the common elements of any condominium
  604  operated by a multicondominium association unless approved in
  605  the manner provided in the declaration of the affected
  606  condominium or condominiums as originally recorded or as amended
  607  under the procedures provided therein. If a declaration as
  608  originally recorded or as amended under the procedures provided
  609  therein does not specify a procedure for approving such an
  610  alteration or addition, the approval of 75 percent of the total
  611  voting interests of each affected condominium is required before
  612  the material alterations or substantial additions are commenced.
  613  This subsection does not prohibit a provision in any
  614  declaration, articles of incorporation, or bylaws as originally
  615  recorded or as amended under the procedures provided therein
  616  requiring the approval of unit owners in any condominium
  617  operated by the same association or requiring board approval
  618  before a material alteration or substantial addition to the
  619  common elements is permitted. This paragraph is intended to
  620  clarify existing law and applies to associations existing on the
  621  effective date of this act.
  622         (c) There shall not be any material alteration or
  623  substantial addition made to association real property operated
  624  by a multicondominium association, except as provided in the
  625  declaration, articles of incorporation, or bylaws as originally
  626  recorded or as amended under the procedures provided therein. If
  627  the declaration, articles of incorporation, or bylaws as
  628  originally recorded or as amended under the procedures provided
  629  therein do not specify the procedure for approving an alteration
  630  or addition to association real property, the approval of 75
  631  percent of the total voting interests of the association is
  632  required before the material alterations or substantial
  633  additions are commenced. This paragraph is intended to clarify
  634  existing law and applies to associations existing on the
  635  effective date of this act.
  636         Section 5. Subsections (1) and (3) of section 718.117,
  637  Florida Statutes, are amended to read:
  638         718.117 Termination of condominium.—
  639         (1) LEGISLATIVE FINDINGS.—The Legislature finds that:
  640         (a) Condominiums are created as authorized by statute and
  641  are subject to covenants that encumber the land and restrict the
  642  use of the use of real property.
  643         (b) In some circumstances, the continued enforcement of
  644  those covenants that may create economic waste, areas of
  645  disrepair that threaten the safety and welfare of the public, or
  646  cause obsolescence of the a condominium property for its
  647  intended use and thereby lower property tax values, and the
  648  Legislature further finds that it is the public policy of this
  649  state to provide by statute a method to preserve the value of
  650  the property interests and the rights of alienation thereof that
  651  owners have in the condominium property before and after
  652  termination.
  653         (c)The Legislature further finds that It is contrary to
  654  the public policy of this state to require the continued
  655  operation of a condominium when to do so constitutes economic
  656  waste or when the ability to do so is made impossible by law or
  657  regulation.
  658         (d)It is in the best interest of the state to provide for
  659  termination of the covenants of a declaration of condominium in
  660  certain circumstances, in order to:
  661         1.Ensure the continued maintenance, management, and repair
  662  of stormwater management systems, conservation areas, and
  663  conservation easements.
  664         2.Avoid transferring the expense of maintaining
  665  infrastructure serving the condominium property, including, but
  666  not limited to, stormwater systems and conservation areas, to
  667  the general tax bases of the state and local governments.
  668         3.Prevent covenants from impairing the continued
  669  productive use of the property.
  670         4.Protect state residents from health and safety hazards
  671  created by derelict, damaged, obsolete, or abandoned condominium
  672  properties.
  673         5.Provide for fair treatment and just compensation for
  674  individuals, preserve property values, and preserve the local
  675  property tax base.
  676         6.Preserve the state’s long history of protecting
  677  homestead property and homestead property rights by ensuring
  678  that such protection is extended to homestead property owners in
  679  the context of a termination of the covenants of a declaration
  680  of condominium. This section applies to all condominiums in this
  681  state in existence on or after July 1, 2007.
  682         (3) OPTIONAL TERMINATION.—Except as provided in subsection
  683  (2) or unless the declaration provides for a lower percentage,
  684  The condominium form of ownership may be terminated for all or a
  685  portion of the condominium property pursuant to a plan of
  686  termination meeting the requirements of this section and
  687  approved by the division. Before a residential association
  688  submits a plan to the division, the plan must be approved by at
  689  least 80 percent of the total voting interests of the
  690  condominium. However, if 5 10 percent or more of the total
  691  voting interests of the condominium have rejected the plan of
  692  termination by negative vote or by providing written objections,
  693  the plan of termination may not proceed.
  694         (a) The termination of the condominium form of ownership is
  695  subject to the following conditions:
  696         1. The total voting interests of the condominium must
  697  include all voting interests for the purpose of considering a
  698  plan of termination. A voting interest of the condominium may
  699  not be suspended for any reason when voting on termination
  700  pursuant to this subsection.
  701         2. If 5 10 percent or more of the total voting interests of
  702  the condominium reject a plan of termination, a subsequent plan
  703  of termination pursuant to this subsection may not be considered
  704  for 24 18 months after the date of the rejection.
  705         (b) This subsection does not apply to any condominium
  706  created pursuant to part VI of this chapter until 10 5 years
  707  after the recording of the declaration of condominium, unless
  708  there is no objection to the plan of termination.
  709         (c) For purposes of this subsection, the term “bulk owner”
  710  means the single holder of such voting interests or an owner
  711  together with a related entity or entities that would be
  712  considered an insider, as defined in s. 726.102, holding such
  713  voting interests. If the condominium association is a
  714  residential association proposed for termination pursuant to
  715  this section and, at the time of recording the plan of
  716  termination, at least 80 percent of the total voting interests
  717  are owned by a bulk owner, the plan of termination is subject to
  718  the following conditions and limitations:
  719         1. If the former condominium units are offered for lease to
  720  the public after the termination, each unit owner in occupancy
  721  immediately before the date of recording of the plan of
  722  termination may lease his or her former unit and remain in
  723  possession of the unit for 12 months after the effective date of
  724  the termination on the same terms as similar unit types within
  725  the property are being offered to the public. In order to obtain
  726  a lease and exercise the right to retain exclusive possession of
  727  the unit owner’s former unit, the unit owner must make a written
  728  request to the termination trustee to rent the former unit
  729  within 90 days after the date the plan of termination is
  730  recorded. Any unit owner who fails to timely make such written
  731  request and sign a lease within 15 days after being presented
  732  with a lease is deemed to have waived his or her right to retain
  733  possession of his or her former unit and shall be required to
  734  vacate the former unit upon the effective date of the
  735  termination, unless otherwise provided in the plan of
  736  termination.
  737         2. Any former unit owner whose unit was granted homestead
  738  exemption status by the applicable county property appraiser as
  739  of the date of the recording of the plan of termination shall be
  740  paid a relocation payment in an amount equal to 1 percent of the
  741  termination proceeds allocated to the owner’s former unit. Any
  742  relocation payment payable under this subparagraph shall be paid
  743  by the single entity or related entities owning at least 80
  744  percent of the total voting interests. Such relocation payment
  745  shall be in addition to the termination proceeds for such
  746  owner’s former unit and shall be paid no later than 10 days
  747  after the former unit owner vacates his or her former unit.
  748         3. For their respective units, all unit owners other than
  749  the bulk owner must be compensated at least 100 percent of the
  750  fair market value of their units. The fair market value shall be
  751  determined as of a date that is no earlier than 90 days before
  752  the date that the plan of termination is recorded and shall be
  753  determined by an independent appraiser selected by the
  754  termination trustee. For a person an original purchaser from the
  755  developer who rejects the plan of termination and whose unit was
  756  granted homestead exemption status by the applicable county
  757  property appraiser, or was an owner-occupied operating business,
  758  as of the date that the plan of termination is recorded and who
  759  is current in payment of both assessments and other monetary
  760  obligations to the association and any mortgage encumbering the
  761  unit as of the date the plan of termination is recorded, the
  762  fair market value for the unit owner rejecting the plan shall be
  763  at least the original purchase price paid for the unit. For
  764  purposes of this subparagraph, the term “fair market value”
  765  means the price of a unit that a seller is willing to accept and
  766  a buyer is willing to pay on the open market in an arms-length
  767  transaction based on similar units sold in other condominiums,
  768  including units sold in bulk purchases but excluding units sold
  769  at wholesale or distressed prices. The purchase price of units
  770  acquired in bulk following a bankruptcy or foreclosure shall not
  771  be considered for purposes of determining fair market value.
  772         4. The plan of termination must provide for payment of a
  773  first mortgage encumbering a unit to the extent necessary to
  774  satisfy the lien, but the payment may not exceed the unit’s
  775  share of the proceeds of termination under the plan. If the unit
  776  owner is current in payment of both assessments and other
  777  monetary obligations to the association and any mortgage
  778  encumbering the unit as of the date the plan of termination is
  779  recorded, the receipt by the holder of the unit’s share of the
  780  proceeds of termination under the plan or the outstanding
  781  balance of the mortgage, whichever is less, shall be deemed to
  782  have satisfied the first mortgage in full.
  783         5. Before a plan of termination is presented to the unit
  784  owners for consideration pursuant to this paragraph, the plan
  785  must include the following written disclosures in a sworn
  786  statement:
  787         a. The identity of any person or entity that owns or
  788  controls 25 50 percent or more of the units in the condominium
  789  and, if the units are owned by an artificial entity or entities,
  790  a disclosure of the natural person or persons who, directly or
  791  indirectly, manage or control the entity or entities and the
  792  natural person or persons who, directly or indirectly, own or
  793  control 10 20 percent or more of the artificial entity or
  794  entities that constitute the bulk owner.
  795         b. The units acquired by any bulk owner, the date each unit
  796  was acquired, and the total amount of compensation paid to each
  797  prior unit owner by the bulk owner, regardless of whether
  798  attributed to the purchase price of the unit.
  799         c. The relationship of any board member to the bulk owner
  800  or any person or entity affiliated with the bulk owner subject
  801  to disclosure pursuant to this subparagraph.
  802         d.The factual circumstances that show that the plan
  803  complies with the requirements of this section and that the plan
  804  supports the expressed public policies of this section.
  805         (d) If the members of the board of administration are
  806  elected by the bulk owner, unit owners other than the bulk owner
  807  may elect at least one-third of the members of the board of
  808  administration before the approval of any plan of termination.
  809         Section 6. The amendments made by Section 5 of this act are
  810  intended to clarify existing law, are remedial in nature and
  811  intended to address the rights and liabilities of the affected
  812  parties, and apply to all condominiums created under the
  813  Condominium Act.
  814         Section 7. Paragraphs (a) and (b) of subsection (2) and
  815  paragraphs (b) and (c) of subsection (4) of section 719.104,
  816  Florida Statutes, are amended to read:
  817         719.104 Cooperatives; access to units; records; financial
  818  reports; assessments; purchase of leases.—
  819         (2) OFFICIAL RECORDS.—
  820         (a) From the inception of the association, the association
  821  shall maintain a copy of each of the following, where
  822  applicable, which shall constitute the official records of the
  823  association:
  824         1. The plans, permits, warranties, and other items provided
  825  by the developer pursuant to s. 719.301(4).
  826         2. A photocopy of the cooperative documents.
  827         3. A copy of the current rules of the association.
  828         4. A book or books containing the minutes of all meetings
  829  of the association, of the board of directors, and of the unit
  830  owners, which minutes shall be retained for a period of not less
  831  than 7 years.
  832         5. A current roster of all unit owners and their mailing
  833  addresses, unit identifications, voting certifications, and, if
  834  known, telephone numbers. The association shall also maintain
  835  the electronic mailing addresses and the numbers designated by
  836  unit owners for receiving notice sent by electronic transmission
  837  of those unit owners consenting to receive notice by electronic
  838  transmission. The electronic mailing addresses and numbers
  839  provided by unit owners to receive notice by electronic
  840  transmission shall be removed from association records when
  841  consent to receive notice by electronic transmission is revoked.
  842  However, the association is not liable for an erroneous
  843  disclosure of the electronic mail address or the number for
  844  receiving electronic transmission of notices.
  845         6. All current insurance policies of the association.
  846         7. A current copy of any management agreement, lease, or
  847  other contract to which the association is a party or under
  848  which the association or the unit owners have an obligation or
  849  responsibility.
  850         8. Bills of sale or transfer for all property owned by the
  851  association.
  852         9. Accounting records for the association and separate
  853  accounting records for each unit it operates, according to good
  854  accounting practices. All accounting records shall be maintained
  855  for a period of not less than 7 years. The accounting records
  856  shall include, but not be limited to:
  857         a. Accurate, itemized, and detailed records of all receipts
  858  and expenditures.
  859         b. A current account and a monthly, bimonthly, or quarterly
  860  statement of the account for each unit designating the name of
  861  the unit owner, the due date and amount of each assessment, the
  862  amount paid upon the account, and the balance due.
  863         c. All audits, reviews, accounting statements, and
  864  financial reports of the association.
  865         d. All contracts for work to be performed. Bids for work to
  866  be performed shall also be considered official records and shall
  867  be maintained for a period of 1 year.
  868         10. Ballots, sign-in sheets, voting proxies, and all other
  869  papers and electronic records relating to voting by unit owners,
  870  which shall be maintained for a period of 1 year after the date
  871  of the election, vote, or meeting to which the document relates.
  872         11. All rental records where the association is acting as
  873  agent for the rental of units.
  874         12. A copy of the current question and answer sheet as
  875  described in s. 719.504.
  876         13. All other written records of the association not
  877  specifically included in the foregoing which are related to the
  878  operation of the association.
  879         (b) The official records of the association must be
  880  maintained within the state for at least 7 years. The records of
  881  the association shall be made available to a unit owner within
  882  45 miles of the cooperative property or within the county in
  883  which the cooperative property is located within 10 5 working
  884  days after receipt of written request by the board or its
  885  designee. This paragraph may be complied with by having a copy
  886  of the official records of the association available for
  887  inspection or copying on the cooperative property or the
  888  association may offer the option of making the records available
  889  to a unit owner electronically via the Internet or by allowing
  890  the records to be viewed in an electronic format on a computer
  891  screen and printed upon request. The association is not
  892  responsible for the use or misuse of the information provided to
  893  an association member or his or her authorized representative
  894  pursuant to the compliance requirements of this chapter unless
  895  the association has an affirmative duty not to disclose such
  896  information pursuant to this chapter.
  897         (4) FINANCIAL REPORT.—
  898         (b) Except as provided in paragraph (c), an association
  899  whose total annual revenues meet the criteria of this paragraph
  900  shall prepare or cause to be prepared a complete set of
  901  financial statements according to the generally accepted
  902  accounting principles adopted by the Board of Accountancy. The
  903  financial statements shall be as follows:
  904         1. An association with total annual revenues between
  905  $150,000 and $299,999 shall prepare a compiled financial
  906  statement.
  907         2. An association with total annual revenues between
  908  $300,000 and $499,999 shall prepare a reviewed financial
  909  statement.
  910         3. An association with total annual revenues of $500,000 or
  911  more shall prepare an audited financial statement.
  912         4. The requirement to have the financial statement
  913  compiled, reviewed, or audited does not apply to an association
  914  if a majority of the voting interests of the association present
  915  at a duly called meeting of the association have voted to waive
  916  this requirement for the fiscal year. In an association in which
  917  turnover of control by the developer has not occurred, the
  918  developer may vote to waive the audit requirement for the first
  919  2 years of operation of the association, after which time waiver
  920  of an applicable audit requirement shall be by a majority of
  921  voting interests other than the developer. The meeting shall be
  922  held prior to the end of the fiscal year, and the waiver shall
  923  be effective for only one fiscal year. An association may not
  924  waive the financial reporting requirements of this section for
  925  more than 3 consecutive years.
  926         (c)1. An association with total annual revenues of less
  927  than $150,000 shall prepare a report of cash receipts and
  928  expenditures.
  929         2.An association in a community of fewer than 50 units,
  930  regardless of the association’s annual revenues, shall prepare a
  931  report of cash receipts and expenditures in lieu of the
  932  financial statements required by paragraph (b), unless the
  933  declaration or other recorded governing documents provide
  934  otherwise.
  935         2.3. A report of cash receipts and expenditures must
  936  disclose the amount of receipts by accounts and receipt
  937  classifications and the amount of expenses by accounts and
  938  expense classifications, including the following, as applicable:
  939  costs for security, professional, and management fees and
  940  expenses; taxes; costs for recreation facilities; expenses for
  941  refuse collection and utility services; expenses for lawn care;
  942  costs for building maintenance and repair; insurance costs;
  943  administration and salary expenses; and reserves, if maintained
  944  by the association.
  945         Section 8. Subsection (5) of section 719.1055, Florida
  946  Statutes, is amended to read:
  947         719.1055 Amendment of cooperative documents; alteration and
  948  acquisition of property.—
  949         (5) The bylaws must include a provision whereby a
  950  certificate of compliance from a licensed electrical contractor
  951  or electrician may be accepted by the association’s board as
  952  evidence of compliance of the cooperative units with the
  953  applicable fire and life safety code.
  954         (a)1. Notwithstanding chapter 633, s. 509.215, s.
  955  553.895(1), or any other code, statute, ordinance,
  956  administrative rule, or regulation, or any interpretation of the
  957  foregoing, an association a cooperative or unit owner is not
  958  obligated to retrofit the common elements or units of a
  959  residential cooperative with a fire sprinkler system or other
  960  engineered lifesafety system in a building that is 75 feet or
  961  less in height. There is no obligation to retrofit for a
  962  building greater than 75 feet in height, calculated from the
  963  lowest level of fire department vehicle access to the floor of
  964  the highest occupiable story has been certified for occupancy by
  965  the applicable governmental entity if the unit owners have voted
  966  to forego such retrofitting by the affirmative vote of two
  967  thirds a majority of all voting interests in the affected
  968  cooperative. There is no requirement that owners in cooperatives
  969  of 75 feet or less conduct an opt-out vote and such cooperatives
  970  are exempt from fire sprinkler or other engineered lifesafety
  971  retrofitting. The preceding sentence is intended to clarify
  972  existing law. The local authority having jurisdiction may not
  973  require completion of retrofitting with a fire sprinkler system
  974  or other engineered lifesafety system before January 1, 2022 the
  975  end of 2019. By December 31, 2018 2016, a cooperative that is
  976  not in compliance with the requirements for a fire sprinkler
  977  system or other engineered lifesafety system and has not voted
  978  to forego retrofitting of such a system must initiate an
  979  application for a building permit for the required installation
  980  with the local government having jurisdiction demonstrating that
  981  the cooperative will become compliant by December 31, 2021 2019.
  982         2. A vote to forego required retrofitting may be obtained
  983  by limited proxy or by a ballot personally cast at a duly called
  984  membership meeting, or by execution of a written consent by the
  985  member, or by electronic voting, and is effective upon recording
  986  a certificate executed by an officer or agent of the association
  987  attesting to such vote in the public records of the county where
  988  the cooperative is located. When the opt-out vote is to be
  989  conducted at a meeting, the cooperative shall mail or hand
  990  deliver to each unit owner, at each physical and electronic
  991  address of record, written notice at least 14 days before the
  992  membership meeting in which the vote to forego retrofitting of
  993  the required fire sprinkler system or other engineered
  994  lifesafety system is to take place. Within 30 days after the
  995  cooperative’s opt-out vote, notice of the results of the opt-out
  996  vote must be mailed or hand delivered to all unit owners at each
  997  physical and electronic address of record. Evidence of
  998  compliance with this notice requirement must be made by
  999  affidavit executed by the person providing the notice and filed
 1000  among the official records of the cooperative. Failure to
 1001  provide timely notice to unit owners does not invalidate an
 1002  otherwise valid opt-out vote if notice of the results is
 1003  provided to the owners. After notice is provided to each owner,
 1004  a copy must be provided by the current owner to a new owner
 1005  before closing and by a unit owner to a renter before signing a
 1006  lease.
 1007         (b) If there has been a previous vote to forego
 1008  retrofitting, a vote to require retrofitting may be obtained at
 1009  a special meeting of the unit owners called by a petition of
 1010  least 10 percent of the voting interests or by a majority of the
 1011  board of directors. The vote to require retrofitting requires a
 1012  two-thirds vote of the total voting interest. Such vote may only
 1013  be called once every 3 years. Notice must be provided as
 1014  required for any regularly called meeting of the unit owners,
 1015  and the notice must state the purpose of the meeting. Electronic
 1016  transmission may not be used to provide notice of a meeting
 1017  called in whole or in part for this purpose.
 1018         (c) As part of the information collected annually from
 1019  cooperatives, the division shall require associations to report
 1020  the membership vote and recording of a certificate under this
 1021  subsection and, if retrofitting has been undertaken, the per
 1022  unit cost of such work. The division shall annually report to
 1023  the Division of State Fire Marshal of the Department of
 1024  Financial Services the number of cooperatives that have elected
 1025  to forego retrofitting. Compliance with this administrative
 1026  reporting requirement does not affect the validity of an opt-out
 1027  vote.
 1028         Section 9. Paragraphs (a) and (c) of subsection (1) of
 1029  section 719.106, Florida Statutes, are amended, and paragraph
 1030  (m) is added to that subsection, to read:
 1031         719.106 Bylaws; cooperative ownership.—
 1032         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
 1033  documents shall provide for the following, and if they do not,
 1034  they shall be deemed to include the following:
 1035         (a) Administration.—
 1036         1. The form of administration of the association shall be
 1037  described, indicating the titles of the officers and board of
 1038  administration and specifying the powers, duties, manner of
 1039  selection and removal, and compensation, if any, of officers and
 1040  board members. In the absence of such a provision, the board of
 1041  administration shall be composed of five members, except in the
 1042  case of cooperatives having five or fewer units, in which case
 1043  in not-for-profit corporations, the board shall consist of not
 1044  fewer than three members. In a residential cooperative
 1045  association of more than 10 units, co-owners of a unit may not
 1046  serve as members of the board of directors at the same time
 1047  unless the co-owners own more than one unit or unless there are
 1048  not enough eligible candidates to fill the vacancies on the
 1049  board at the time of the vacancy. In the absence of provisions
 1050  to the contrary, the board of administration shall have a
 1051  president, a secretary, and a treasurer, who shall perform the
 1052  duties of those offices customarily performed by officers of
 1053  corporations. Unless prohibited in the bylaws, the board of
 1054  administration may appoint other officers and grant them those
 1055  duties it deems appropriate. Unless otherwise provided in the
 1056  bylaws, the officers shall serve without compensation and at the
 1057  pleasure of the board. Unless otherwise provided in the bylaws,
 1058  the members of the board shall serve without compensation.
 1059         2. A person who has been suspended or removed by the
 1060  division under this chapter, or who is delinquent in the payment
 1061  of any monetary obligation due to the association, is not
 1062  eligible to be a candidate for board membership and may not be
 1063  listed on the ballot. A director or officer charged by
 1064  information or indictment with a felony theft or embezzlement
 1065  offense involving the association’s funds or property is
 1066  suspended from office. The board shall fill the vacancy
 1067  according to general law until the end of the period of the
 1068  suspension or the end of the director’s term of office,
 1069  whichever occurs first. However, if the charges are resolved
 1070  without a finding of guilt or without acceptance of a plea of
 1071  guilty or nolo contendere, the director or officer shall be
 1072  reinstated for any remainder of his or her term of office. A
 1073  member who has such criminal charges pending may not be
 1074  appointed or elected to a position as a director or officer. A
 1075  person who has been convicted of any felony in this state or in
 1076  any United States District Court, or who has been convicted of
 1077  any offense in another jurisdiction which would be considered a
 1078  felony if committed in this state, is not eligible for board
 1079  membership unless such felon’s civil rights have been restored
 1080  for at least 5 years as of the date such person seeks election
 1081  to the board. The validity of an action by the board is not
 1082  affected if it is later determined that a board member is
 1083  ineligible for board membership due to having been convicted of
 1084  a felony.
 1085         3. When a unit owner files a written inquiry by certified
 1086  mail with the board of administration, the board shall respond
 1087  in writing to the unit owner within 30 days of receipt of the
 1088  inquiry. The board’s response shall either give a substantive
 1089  response to the inquirer, notify the inquirer that a legal
 1090  opinion has been requested, or notify the inquirer that advice
 1091  has been requested from the division. If the board requests
 1092  advice from the division, the board shall, within 10 days of its
 1093  receipt of the advice, provide in writing a substantive response
 1094  to the inquirer. If a legal opinion is requested, the board
 1095  shall, within 60 days after the receipt of the inquiry, provide
 1096  in writing a substantive response to the inquirer. The failure
 1097  to provide a substantive response to the inquirer as provided
 1098  herein precludes the board from recovering attorney’s fees and
 1099  costs in any subsequent litigation, administrative proceeding,
 1100  or arbitration arising out of the inquiry. The association may,
 1101  through its board of administration, adopt reasonable rules and
 1102  regulations regarding the frequency and manner of responding to
 1103  the unit owners’ inquiries, one of which may be that the
 1104  association is obligated to respond to only one written inquiry
 1105  per unit in any given 30-day period. In such case, any
 1106  additional inquiry or inquiries must be responded to in the
 1107  subsequent 30-day period, or periods, as applicable.
 1108         (c) Board of administration meetings.Members of the board
 1109  of administration may use e-mail as a means of communication but
 1110  may not cast a vote on an association matter via e-mail.
 1111  Meetings of the board of administration at which a quorum of the
 1112  members is present shall be open to all unit owners. Any unit
 1113  owner may tape record or videotape meetings of the board of
 1114  administration. The right to attend such meetings includes the
 1115  right to speak at such meetings with reference to all designated
 1116  agenda items. The division shall adopt reasonable rules
 1117  governing the tape recording and videotaping of the meeting. The
 1118  association may adopt reasonable written rules governing the
 1119  frequency, duration, and manner of unit owner statements.
 1120  Adequate notice of all meetings shall be posted in a conspicuous
 1121  place upon the cooperative property at least 48 continuous hours
 1122  preceding the meeting, except in an emergency. Any item not
 1123  included on the notice may be taken up on an emergency basis by
 1124  at least a majority plus one of the members of the board. Such
 1125  emergency action shall be noticed and ratified at the next
 1126  regular meeting of the board. Notice of any meeting in which
 1127  regular or special assessments against unit owners are to be
 1128  considered must specifically state that assessments will be
 1129  considered and provide the estimated amount and description of
 1130  the purposes for such assessments. However, Written notice of
 1131  any meeting at which nonemergency special assessments, or at
 1132  which amendment to rules regarding unit use, will be considered
 1133  shall be mailed, delivered, or electronically transmitted to the
 1134  unit owners and posted conspicuously on the cooperative property
 1135  not less than 14 days before the meeting. Evidence of compliance
 1136  with this 14-day notice shall be made by an affidavit executed
 1137  by the person providing the notice and filed among the official
 1138  records of the association. Upon notice to the unit owners, the
 1139  board shall by duly adopted rule designate a specific location
 1140  on the cooperative property upon which all notices of board
 1141  meetings shall be posted. In lieu of or in addition to the
 1142  physical posting of notice of any meeting of the board of
 1143  administration on the cooperative property, the association may,
 1144  by reasonable rule, adopt a procedure for conspicuously posting
 1145  and repeatedly broadcasting the notice and the agenda on a
 1146  closed-circuit cable television system serving the cooperative
 1147  association. However, if broadcast notice is used in lieu of a
 1148  notice posted physically on the cooperative property, the notice
 1149  and agenda must be broadcast at least four times every broadcast
 1150  hour of each day that a posted notice is otherwise required
 1151  under this section. When broadcast notice is provided, the
 1152  notice and agenda must be broadcast in a manner and for a
 1153  sufficient continuous length of time so as to allow an average
 1154  reader to observe the notice and read and comprehend the entire
 1155  content of the notice and the agenda. In addition to any of the
 1156  authorized means of providing notice of a meeting of the board,
 1157  the association may adopt by rule a procedure for conspicuously
 1158  posting the meeting notice and the agenda on a website serving
 1159  the cooperative association for at least the minimum period of
 1160  time for which a notice of a meeting is also required to be
 1161  physically posted on the cooperative property. Any rule adopted
 1162  shall, in addition to other matters, include a requirement that
 1163  the association send an electronic notice providing a hypertext
 1164  link to the website where the notice is posted. Notice of any
 1165  meeting in which regular assessments against unit owners are to
 1166  be considered for any reason shall specifically contain a
 1167  statement that assessments will be considered and the nature of
 1168  any such assessments. Meetings of a committee to take final
 1169  action on behalf of the board or to make recommendations to the
 1170  board regarding the association budget are subject to the
 1171  provisions of this paragraph. Meetings of a committee that does
 1172  not take final action on behalf of the board or make
 1173  recommendations to the board regarding the association budget
 1174  are subject to the provisions of this section, unless those
 1175  meetings are exempted from this section by the bylaws of the
 1176  association. Notwithstanding any other law to the contrary, the
 1177  requirement that board meetings and committee meetings be open
 1178  to the unit owners does not apply to board or committee meetings
 1179  held for the purpose of discussing personnel matters or meetings
 1180  between the board or a committee and the association’s attorney,
 1181  with respect to proposed or pending litigation, if the meeting
 1182  is held for the purpose of seeking or rendering legal advice.
 1183         (m)Director or officer delinquencies.—A director or
 1184  officer more than 90 days delinquent in the payment of any
 1185  monetary obligation due the association shall be deemed to have
 1186  abandoned the office, creating a vacancy in the office to be
 1187  filled according to law.
 1188         Section 10. Paragraph (b) of subsection (1) of section
 1189  719.107, Florida Statutes, is amended to read:
 1190         719.107 Common expenses; assessment.—
 1191         (1)
 1192         (b) If so provided in the bylaws, the cost of
 1193  communications services as defined in chapter 202, information
 1194  services, or Internet services a master antenna television
 1195  system or duly franchised cable television service obtained
 1196  pursuant to a bulk contract shall be deemed a common expense,
 1197  and if not obtained pursuant to a bulk contract, such cost shall
 1198  be considered common expense if it is designated as such in a
 1199  written contract between the board of administration and the
 1200  company providing the communications services as defined in
 1201  chapter 202, information services, or Internet services master
 1202  television antenna system or the cable television service. The
 1203  contract shall be for a term of not less than 2 years.
 1204         1. Any contract made by the board after April 2, 1992, for
 1205  a community antenna system or duly franchised cable television
 1206  service, communications services as defined in chapter 202,
 1207  information services, or Internet services may be canceled by a
 1208  majority of the voting interests present at the next regular or
 1209  special meeting of the association. Any member may make a motion
 1210  to cancel the contract, but if no motion is made or if such
 1211  motion fails to obtain the required majority at the next regular
 1212  or special meeting, whichever is sooner, following the making of
 1213  the contract, then such contract shall be deemed ratified for
 1214  the term therein expressed.
 1215         2. Any such contract shall provide, and shall be deemed to
 1216  provide if not expressly set forth, that any hearing impaired or
 1217  legally blind unit owner who does not occupy the unit with a
 1218  nonhearing impaired or sighted person may discontinue the
 1219  service without incurring disconnect fees, penalties, or
 1220  subsequent service charges, and as to such units, the owners
 1221  shall not be required to pay any common expenses charge related
 1222  to such service. If less than all members of an association
 1223  share the expenses of cable television, the expense shall be
 1224  shared equally by all participating unit owners. The association
 1225  may use the provisions of s. 719.108 to enforce payment of the
 1226  shares of such costs by the unit owners receiving cable
 1227  television.
 1228         Section 11. Paragraphs (a) and (c) of subsection (2) of
 1229  section 720.303, Florida Statutes, are amended to read:
 1230         720.303 Association powers and duties; meetings of board;
 1231  official records; budgets; budget meetings; financial reporting;
 1232  association funds; recalls.—
 1233         (2) BOARD MEETINGS.—
 1234         (a) Members of the board of administration may use e-mail
 1235  as a means of communication, but may not cast a vote on an
 1236  association matter via e-mail. A meeting of the board of
 1237  directors of an association occurs whenever a quorum of the
 1238  board gathers to conduct association business. Meetings of the
 1239  board must be open to all members, except for meetings between
 1240  the board and its attorney with respect to proposed or pending
 1241  litigation where the contents of the discussion would otherwise
 1242  be governed by the attorney-client privilege. A meeting of the
 1243  board must be held at a location that is accessible to a
 1244  physically handicapped person if requested by a physically
 1245  handicapped person who has a right to attend the meeting. The
 1246  provisions of this subsection shall also apply to the meetings
 1247  of any committee or other similar body when a final decision
 1248  will be made regarding the expenditure of association funds and
 1249  to meetings of any body vested with the power to approve or
 1250  disapprove architectural decisions with respect to a specific
 1251  parcel of residential property owned by a member of the
 1252  community.
 1253         (c) The bylaws shall provide the following for giving
 1254  notice to parcel owners and members of all board meetings and,
 1255  if they do not do so, shall be deemed to include provide the
 1256  following:
 1257         1. Notices of all board meetings must be posted in a
 1258  conspicuous place in the community at least 48 hours in advance
 1259  of a meeting, except in an emergency. In the alternative, if
 1260  notice is not posted in a conspicuous place in the community,
 1261  notice of each board meeting must be mailed or delivered to each
 1262  member at least 7 days before the meeting, except in an
 1263  emergency. Notwithstanding this general notice requirement, for
 1264  communities with more than 100 members, the association bylaws
 1265  may provide for a reasonable alternative to posting or mailing
 1266  of notice for each board meeting, including publication of
 1267  notice, provision of a schedule of board meetings, or the
 1268  conspicuous posting and repeated broadcasting of the notice on a
 1269  closed-circuit cable television system serving the homeowners’
 1270  association. However, if broadcast notice is used in lieu of a
 1271  notice posted physically in the community, the notice must be
 1272  broadcast at least four times every broadcast hour of each day
 1273  that a posted notice is otherwise required. When broadcast
 1274  notice is provided, the notice and agenda must be broadcast in a
 1275  manner and for a sufficient continuous length of time so as to
 1276  allow an average reader to observe the notice and read and
 1277  comprehend the entire content of the notice and the agenda. The
 1278  association may provide notice by electronic transmission in a
 1279  manner authorized by law for meetings of the board of directors,
 1280  committee meetings requiring notice under this section, and
 1281  annual and special meetings of the members to any member who has
 1282  provided a facsimile number or e-mail address to the association
 1283  to be used for such purposes; however, a member must consent in
 1284  writing to receiving notice by electronic transmission.
 1285         2. An assessment may not be levied at a board meeting
 1286  unless the notice of the meeting includes a statement that
 1287  assessments will be considered and the nature of the
 1288  assessments. Written notice of any meeting at which special
 1289  assessments will be considered or at which amendments to rules
 1290  regarding parcel use will be considered must be mailed,
 1291  delivered, or electronically transmitted to the members and
 1292  parcel owners and posted conspicuously on the property or
 1293  broadcast on closed-circuit cable television not less than 14
 1294  days before the meeting.
 1295         3. Directors may not vote by proxy or by secret ballot at
 1296  board meetings, except that secret ballots may be used in the
 1297  election of officers. This subsection also applies to the
 1298  meetings of any committee or other similar body, when a final
 1299  decision will be made regarding the expenditure of association
 1300  funds, and to any body vested with the power to approve or
 1301  disapprove architectural decisions with respect to a specific
 1302  parcel of residential property owned by a member of the
 1303  community.
 1304         Section 12. This act shall take effect July 1, 2017.