CS for CS for SB 744                             First Engrossed
       
       
       
       
       
       
       
       
       2017744e1
       
    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 adopt rules governing such signs or symbols;
    7         providing enforcement; providing penalties; amending
    8         s. 718.111, F.S.; prohibiting an officer, director, or
    9         manager from soliciting, offering to accept, or
   10         accepting a kickback for which consideration has not
   11         been provided; providing criminal penalties; requiring
   12         that an officer or director charged with certain
   13         crimes be removed from office; providing requirements
   14         for filling the vacancy left by such removal;
   15         prohibiting such officer or director from being
   16         appointed or elected or having access to official
   17         condominium association records for a specified time;
   18         providing an exception; requiring an officer or
   19         director to be reinstated if the charges are resolved
   20         without a finding of guilt; prohibiting an association
   21         from hiring an attorney who represents the management
   22         company of the association; prohibiting a board
   23         member, manager, or management company from purchasing
   24         a unit at a foreclosure sale under certain
   25         circumstances; revising recordkeeping requirements;
   26         providing that the official records of an association
   27         are open to inspection by an association member’s
   28         authorized representative; providing that a renter of
   29         a unit has a right to inspect and copy the
   30         association’s bylaws and rules; providing requirements
   31         relating to the posting of specified documents on an
   32         association’s website; providing a remedy for an
   33         association’s failure to provide a unit owner with a
   34         copy of the most recent financial report; revising
   35         reporting requirements; requiring the Division of
   36         Florida Condominiums, Timeshares, and Mobile Homes to
   37         maintain and provide copies of financial reports;
   38         prohibiting a condominium association and its
   39         officers, directors, employees, and agents from using
   40         a debit card issued in the name of the association, or
   41         billed directly to the association, for the payment of
   42         any association expense; providing that the use of
   43         such debit card for any expense that is not a lawful
   44         obligation of the association may be prosecuted as
   45         credit card fraud; amending s. 718.112, F.S.;
   46         authorizing an association to adopt rules for posting
   47         certain notices on a website; revising provisions
   48         relating to required condominium and cooperative
   49         association bylaws; revising provisions relating to
   50         evidence of condominium and cooperative association
   51         compliance with the fire and life safety code;
   52         revising unit and common elements required to be
   53         retrofitted; revising provisions relating to an
   54         association vote to forego retrofitting; providing
   55         applicability; amending s. 718.113, F.S.; revising
   56         voting requirements relating to alterations and
   57         additions to certain common elements or association
   58         property; amending s. 718.117, F.S.; revising
   59         legislative findings; revising voting requirements for
   60         the rejection of a plan of termination; increasing the
   61         length of time to consider a plan of termination under
   62         certain conditions; revising the requirements to
   63         qualify for payment as a homestead owner if the owner
   64         has rejected a plan of termination; revising and
   65         providing notice requirements; providing
   66         applicability; amending s. 718.707, F.S.; revising the
   67         time period for classification as bulk assignee or
   68         bulk buyer; amending s. 719.104, F.S.; revising
   69         recordkeeping and reporting requirements; amending s.
   70         719.1055, F.S.; revising provisions relating to
   71         required condominium and cooperative association
   72         bylaws; revising provisions relating to evidence of
   73         condominium and cooperative association compliance
   74         with the fire and life safety code; revising unit and
   75         common elements required to be retrofitted; revising
   76         provisions relating to an association vote to forego
   77         retrofitting; providing applicability; amending s.
   78         719.106, F.S.; revising requirements to serve as a
   79         board member; prohibiting a board member from voting
   80         via e-mail; requiring that directors who are
   81         delinquent in certain payments owed in excess of
   82         certain periods of time be deemed to have abandoned
   83         their offices; authorizing an association to adopt
   84         rules for posting certain notices on a website;
   85         amending s. 719.107, F.S.; specifying certain services
   86         that are obtained pursuant to a bulk contract to be
   87         deemed a common expense; amending s. 720.303, F.S.;
   88         prohibiting a board member from voting via e-mail;
   89         revising certain notice requirements relating to board
   90         meetings; revising financial reporting requirements;
   91         authorizing an association to adopt rules for posting
   92         certain notices on a website; amending s. 720.306,
   93         F.S.; revising elections requirements; amending s.
   94         720.3085, F.S.; providing applicability; providing an
   95         effective date.
   96          
   97  Be It Enacted by the Legislature of the State of Florida:
   98  
   99         Section 1. Section 633.2225, Florida Statutes, is created
  100  to read:
  101         633.2225Condominium and cooperative buildings without
  102  sprinkler systems; notice requirements; enforcement.—
  103         (1)The board of a condominium or cooperative association
  104  that operates a building of three stories or more that has not
  105  installed a sprinkler system in the common areas of the building
  106  shall mark the building with a sign or symbol approved by the
  107  State Fire Marshal in a manner sufficient to warn persons
  108  conducting fire control and other emergency operations of the
  109  lack of a sprinkler system in the common areas.
  110         (2)The State Fire Marshal shall:
  111         (a)Ensure that the dimensions and placement of the sign or
  112  symbol do not diminish the aesthetic value of the building; and
  113         (b)Adopt rules necessary to implement the provisions of
  114  this section, including, but not limited to:
  115         1.The dimensions and color of such sign or symbol.
  116         2.The time within which the condominium or cooperative
  117  buildings without sprinkler systems shall be marked as required
  118  by this section.
  119         3.The location on each condominium or cooperative building
  120  without a sprinkler system where such sign or symbol must be
  121  posted.
  122         (3)The State Fire Marshal, and local fire officials in
  123  accordance with s. 633.118, shall enforce this section. An
  124  association that fails to comply with the requirements of this
  125  section is subject to penalties as provided in s. 633.228.
  126         Section 2. Paragraphs (a) and (d) of subsection (1),
  127  subsections (3), (9), (12), and (13) of section 718.111, Florida
  128  Statutes, are amended, and subsection (15) is added to that
  129  section, to read:
  130         718.111 The association.—
  131         (1) CORPORATE ENTITY.—
  132         (a) The operation of the condominium shall be by the
  133  association, which must be a Florida corporation for profit or a
  134  Florida corporation not for profit. However, any association
  135  which was in existence on January 1, 1977, need not be
  136  incorporated. The owners of units shall be shareholders or
  137  members of the association. The officers and directors of the
  138  association have a fiduciary relationship to the unit owners. It
  139  is the intent of the Legislature that nothing in this paragraph
  140  shall be construed as providing for or removing a requirement of
  141  a fiduciary relationship between any manager employed by the
  142  association and the unit owners. An officer, director, or
  143  manager may not solicit, offer to accept, or accept any thing or
  144  service of value or kickback for which consideration has not
  145  been provided for his or her own benefit or that of his or her
  146  immediate family, from any person providing or proposing to
  147  provide goods or services to the association. Any such officer,
  148  director, or manager who knowingly so solicits, offers to
  149  accept, or accepts any thing or service of value or kickback is
  150  subject to a civil penalty pursuant to s. 718.501(1)(d) and, if
  151  applicable, a criminal penalty as provided in paragraph (d).
  152  However, this paragraph does not prohibit an officer, director,
  153  or manager from accepting services or items received in
  154  connection with trade fairs or education programs. An
  155  association may operate more than one condominium.
  156         (d) As required by s. 617.0830, an officer, director, or
  157  agent shall discharge his or her duties in good faith, with the
  158  care an ordinarily prudent person in a like position would
  159  exercise under similar circumstances, and in a manner he or she
  160  reasonably believes to be in the interests of the association.
  161  An officer, director, or agent shall be liable for monetary
  162  damages as provided in s. 617.0834 if such officer, director, or
  163  agent breached or failed to perform his or her duties and the
  164  breach of, or failure to perform, his or her duties constitutes
  165  a violation of criminal law as provided in s. 617.0834;
  166  constitutes a transaction from which the officer or director
  167  derived an improper personal benefit, either directly or
  168  indirectly; or constitutes recklessness or an act or omission
  169  that was in bad faith, with malicious purpose, or in a manner
  170  exhibiting wanton and willful disregard of human rights, safety,
  171  or property. Forgery of a ballot envelope or voting certificate
  172  used in a condominium association election is punishable as
  173  provided in s. 831.01, the theft or embezzlement of funds of a
  174  condominium association is punishable as provided in s. 812.014,
  175  and the destruction of or the refusal to allow inspection or
  176  copying of an official record of a condominium association which
  177  is accessible to unit owners within the timeframe required by
  178  general law in furtherance of any crime is punishable as
  179  tampering with physical evidence as provided in s. 918.13 or as
  180  obstruction of justice as provided in chapter 843. An officer or
  181  director charged by information or indictment with a crime
  182  referenced in this paragraph must be removed from office, and
  183  the vacancy shall be filled as provided in s. 718.112(2)(d)2.
  184  until the end of the officer’s or director’s period of
  185  suspension or the end of his or her term of office, whichever
  186  occurs first. If a criminal charge is pending against the
  187  officer or director, he or she may not be appointed or elected
  188  to a position as an officer or a director of any association and
  189  may not have access to the official records of any association,
  190  except pursuant to a court order. However, if the charges are
  191  resolved without a finding of guilt, the officer or director
  192  must be reinstated for the remainder of his or her term of
  193  office, if any.
  194         (3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT,
  195  SUE, AND BE SUED; CONFLICT OF INTEREST.—
  196         (a) The association may contract, sue, or be sued with
  197  respect to the exercise or nonexercise of its powers. For these
  198  purposes, the powers of the association include, but are not
  199  limited to, the maintenance, management, and operation of the
  200  condominium property. After control of the association is
  201  obtained by unit owners other than the developer, the
  202  association may institute, maintain, settle, or appeal actions
  203  or hearings in its name on behalf of all unit owners concerning
  204  matters of common interest to most or all unit owners,
  205  including, but not limited to, the common elements; the roof and
  206  structural components of a building or other improvements;
  207  mechanical, electrical, and plumbing elements serving an
  208  improvement or a building; representations of the developer
  209  pertaining to any existing or proposed commonly used facilities;
  210  and protesting ad valorem taxes on commonly used facilities and
  211  on units; and may defend actions in eminent domain or bring
  212  inverse condemnation actions. If the association has the
  213  authority to maintain a class action, the association may be
  214  joined in an action as representative of that class with
  215  reference to litigation and disputes involving the matters for
  216  which the association could bring a class action. Nothing herein
  217  limits any statutory or common-law right of any individual unit
  218  owner or class of unit owners to bring any action without
  219  participation by the association which may otherwise be
  220  available.
  221         (b) An association may not hire an attorney who represents
  222  the management company of the association.
  223         (9) PURCHASE OF UNITS.—The association has the power,
  224  unless prohibited by the declaration, articles of incorporation,
  225  or bylaws of the association, to purchase units in the
  226  condominium and to acquire and hold, lease, mortgage, and convey
  227  them. There shall be no limitation on the association’s right to
  228  purchase a unit at a foreclosure sale resulting from the
  229  association’s foreclosure of its lien for unpaid assessments, or
  230  to take title by deed in lieu of foreclosure. However, except
  231  for a timeshare condominium, a board member, manager, or
  232  management company may not purchase a unit at a foreclosure sale
  233  resulting from the association’s foreclosure of its lien for
  234  unpaid assessments or take title by deed in lieu of foreclosure.
  235         (12) OFFICIAL RECORDS.—
  236         (a) From the inception of the association, the association
  237  shall maintain each of the following items, if applicable, which
  238  constitutes the official records of the association:
  239         1. A copy of the plans, permits, warranties, and other
  240  items provided by the developer pursuant to s. 718.301(4).
  241         2. A photocopy of the recorded declaration of condominium
  242  of each condominium operated by the association and each
  243  amendment to each declaration.
  244         3. A photocopy of the recorded bylaws of the association
  245  and each amendment to the bylaws.
  246         4. A certified copy of the articles of incorporation of the
  247  association, or other documents creating the association, and
  248  each amendment thereto.
  249         5. A copy of the current rules of the association.
  250         6. A book or books that contain the minutes of all meetings
  251  of the association, the board of administration, and the unit
  252  owners, which minutes must be retained for at least 7 years.
  253         7. A current roster of all unit owners and their mailing
  254  addresses, unit identifications, and voting certifications, and,
  255  if known, telephone numbers. The association shall also maintain
  256  the electronic mailing addresses and facsimile numbers of unit
  257  owners consenting to receive notice by electronic transmission.
  258  The electronic mailing addresses and facsimile numbers are not
  259  accessible to unit owners if consent to receive notice by
  260  electronic transmission is not provided in accordance with sub
  261  subparagraph (c)3.e. subparagraph (c)5. However, the association
  262  is not liable for an inadvertent disclosure of the electronic
  263  mail address or facsimile number for receiving electronic
  264  transmission of notices.
  265         8. All current insurance policies of the association and
  266  condominiums operated by the association.
  267         9. A current copy of any management agreement, lease, or
  268  other contract to which the association is a party or under
  269  which the association or the unit owners have an obligation or
  270  responsibility.
  271         10. Bills of sale or transfer for all property owned by the
  272  association.
  273         11. Accounting records for the association and separate
  274  accounting records for each condominium that the association
  275  operates. All accounting records must be maintained for at least
  276  7 years. Any person who knowingly or intentionally defaces or
  277  destroys such records, or who knowingly or intentionally fails
  278  to create or maintain such records, with the intent of causing
  279  harm to the association or one or more of its members, is
  280  personally subject to a civil penalty pursuant to s.
  281  718.501(1)(d). The accounting records must include, but are not
  282  limited to:
  283         a. Accurate, itemized, and detailed records of all receipts
  284  and expenditures.
  285         b. A current account and a monthly, bimonthly, or quarterly
  286  statement of the account for each unit designating the name of
  287  the unit owner, the due date and amount of each assessment, the
  288  amount paid on the account, and the balance due.
  289         c. All audits, reviews, accounting statements, and
  290  financial reports of the association or condominium.
  291         d. All contracts for work to be performed. Bids for work to
  292  be performed are also considered official records and must be
  293  maintained by the association.
  294         12. Ballots, sign-in sheets, voting proxies, and all other
  295  papers and electronic records relating to voting by unit owners,
  296  which must be maintained for 1 year from the date of the
  297  election, vote, or meeting to which the document relates,
  298  notwithstanding paragraph (b).
  299         13. All rental records if the association is acting as
  300  agent for the rental of condominium units.
  301         14. A copy of the current question and answer sheet as
  302  described in s. 718.504.
  303         15. All other written records of the association not
  304  specifically included in the foregoing which are related to the
  305  operation of the association.
  306         16. A copy of the inspection report as described in s.
  307  718.301(4)(p).
  308         17. Bids for materials, equipment, or services.
  309         (b) The official records of the association must be
  310  maintained within the state for at least 7 years. The records of
  311  the association shall be made available to a unit owner within
  312  45 miles of the condominium property or within the county in
  313  which the condominium property is located within 10 5 working
  314  days after receipt of a written request by the board or its
  315  designee. However, such distance requirement does not apply to
  316  an association governing a timeshare condominium. This paragraph
  317  may be complied with by having a copy of the official records of
  318  the association available for inspection or copying on the
  319  condominium property or association property, or the association
  320  may offer the option of making the records available to a unit
  321  owner electronically via the Internet or by allowing the records
  322  to be viewed in electronic format on a computer screen and
  323  printed upon request. The association is not responsible for the
  324  use or misuse of the information provided to an association
  325  member or his or her authorized representative pursuant to the
  326  compliance requirements of this chapter unless the association
  327  has an affirmative duty not to disclose such information
  328  pursuant to this chapter.
  329         (c)1. The official records of the association are open to
  330  inspection by any association member or the authorized
  331  representative of such member at all reasonable times. The right
  332  to inspect the records includes the right to make or obtain
  333  copies, at the reasonable expense, if any, of the member or
  334  authorized representative of such member. A renter of a unit has
  335  a right to inspect and copy the association’s bylaws and rules.
  336  The association may adopt reasonable rules regarding the
  337  frequency, time, location, notice, and manner of record
  338  inspections and copying. The failure of an association to
  339  provide the records within 10 working days after receipt of a
  340  written request creates a rebuttable presumption that the
  341  association willfully failed to comply with this paragraph. A
  342  unit owner who is denied access to official records is entitled
  343  to the actual damages or minimum damages for the association’s
  344  willful failure to comply. Minimum damages are $50 per calendar
  345  day for up to 10 days, beginning on the 11th working day after
  346  receipt of the written request. The failure to permit inspection
  347  entitles any person prevailing in an enforcement action to
  348  recover reasonable attorney fees from the person in control of
  349  the records who, directly or indirectly, knowingly denied access
  350  to the records.
  351         2. Any person who knowingly or intentionally defaces or
  352  destroys accounting records that are required by this chapter to
  353  be maintained during the period for which such records are
  354  required to be maintained, or who knowingly or intentionally
  355  fails to create or maintain accounting records that are required
  356  to be created or maintained, with the intent of causing harm to
  357  the association or one or more of its members, is personally
  358  subject to a civil penalty pursuant to s. 718.501(1)(d).
  359         3. The association shall maintain an adequate number of
  360  copies of the declaration, articles of incorporation, bylaws,
  361  and rules, and all amendments to each of the foregoing, as well
  362  as the question and answer sheet as described in s. 718.504 and
  363  year-end financial information required under this section, on
  364  the condominium property to ensure their availability to unit
  365  owners and prospective purchasers, and may charge its actual
  366  costs for preparing and furnishing these documents to those
  367  requesting the documents. An association shall allow a member or
  368  his or her authorized representative to use a portable device,
  369  including a smartphone, tablet, portable scanner, or any other
  370  technology capable of scanning or taking photographs, to make an
  371  electronic copy of the official records in lieu of the
  372  association’s providing the member or his or her authorized
  373  representative with a copy of such records. The association may
  374  not charge a member or his or her authorized representative for
  375  the use of a portable device. Notwithstanding this paragraph,
  376  the following records are not accessible to unit owners:
  377         a.1. Any record protected by the lawyer-client privilege as
  378  described in s. 90.502 and any record protected by the work
  379  product privilege, including a record prepared by an association
  380  attorney or prepared at the attorney’s express direction, which
  381  reflects a mental impression, conclusion, litigation strategy,
  382  or legal theory of the attorney or the association, and which
  383  was prepared exclusively for civil or criminal litigation or for
  384  adversarial administrative proceedings, or which was prepared in
  385  anticipation of such litigation or proceedings until the
  386  conclusion of the litigation or proceedings.
  387         b.2. Information obtained by an association in connection
  388  with the approval of the lease, sale, or other transfer of a
  389  unit.
  390         c.3. Personnel records of association or management company
  391  employees, including, but not limited to, disciplinary, payroll,
  392  health, and insurance records. For purposes of this sub
  393  subparagraph subparagraph, the term “personnel records” does not
  394  include written employment agreements with an association
  395  employee or management company, or budgetary or financial
  396  records that indicate the compensation paid to an association
  397  employee.
  398         d.4. Medical records of unit owners.
  399         e.5. Social security numbers, driver license numbers,
  400  credit card numbers, e-mail addresses, telephone numbers,
  401  facsimile numbers, emergency contact information, addresses of a
  402  unit owner other than as provided to fulfill the association’s
  403  notice requirements, and other personal identifying information
  404  of any person, excluding the person’s name, unit designation,
  405  mailing address, property address, and any address, e-mail
  406  address, or facsimile number provided to the association to
  407  fulfill the association’s notice requirements. Notwithstanding
  408  the restrictions in this sub-subparagraph subparagraph, an
  409  association may print and distribute to parcel owners a
  410  directory containing the name, parcel address, and all telephone
  411  numbers of each parcel owner. However, an owner may exclude his
  412  or her telephone numbers from the directory by so requesting in
  413  writing to the association. An owner may consent in writing to
  414  the disclosure of other contact information described in this
  415  sub-subparagraph subparagraph. The association is not liable for
  416  the inadvertent disclosure of information that is protected
  417  under this sub-subparagraph subparagraph if the information is
  418  included in an official record of the association and is
  419  voluntarily provided by an owner and not requested by the
  420  association.
  421         f.6. Electronic security measures that are used by the
  422  association to safeguard data, including passwords.
  423         g.7. The software and operating system used by the
  424  association which allow the manipulation of data, even if the
  425  owner owns a copy of the same software used by the association.
  426  The data is part of the official records of the association.
  427         (d) The association shall prepare a question and answer
  428  sheet as described in s. 718.504, and shall update it annually.
  429         (e)1. The association or its authorized agent is not
  430  required to provide a prospective purchaser or lienholder with
  431  information about the condominium or the association other than
  432  information or documents required by this chapter to be made
  433  available or disclosed. The association or its authorized agent
  434  may charge a reasonable fee to the prospective purchaser,
  435  lienholder, or the current unit owner for providing good faith
  436  responses to requests for information by or on behalf of a
  437  prospective purchaser or lienholder, other than that required by
  438  law, if the fee does not exceed $150 plus the reasonable cost of
  439  photocopying and any attorney’s fees incurred by the association
  440  in connection with the response.
  441         2. An association and its authorized agent are not liable
  442  for providing such information in good faith pursuant to a
  443  written request if the person providing the information includes
  444  a written statement in substantially the following form: “The
  445  responses herein are made in good faith and to the best of my
  446  ability as to their accuracy.”
  447         (f) An outgoing board or committee member must relinquish
  448  all official records and property of the association in his or
  449  her possession or under his or her control to the incoming board
  450  within 5 days after the election. The division shall impose a
  451  civil penalty as set forth in s. 718.501(1)(d)6. against an
  452  outgoing board or committee member who willfully and knowingly
  453  fails to relinquish such records and property.
  454         (g)1. By July 1, 2018, an association with 150 or more
  455  units which does not manage timeshare units shall post digital
  456  copies of the documents specified in subparagraph 2. on its
  457  website.
  458         a. The association’s website must be:
  459         (I) An independent website or web portal wholly owned and
  460  operated by the association; or
  461         (II) A website or web portal operated by a third-party
  462  provider with whom the association owns, leases, rents, or
  463  otherwise obtains the right to operate a web page, subpage, web
  464  portal, or collection of subpages or web portals dedicated to
  465  the association’s activities and on which required notices,
  466  records, and documents may be posted by the association.
  467         b. The association’s website must be accessible through the
  468  Internet and must contain a subpage, web portal, or other
  469  protected electronic location that is inaccessible to the
  470  general public and accessible only to unit owners and employees
  471  of the association.
  472         c. Upon a unit owner’s written request, the association
  473  must provide the unit owner with a username and password and
  474  access to the protected sections of the association’s website
  475  which contain any notices, records, or documents that must be
  476  electronically provided.
  477         2. A current copy of the following documents must be posted
  478  in digital format on the association’s website:
  479         a. The recorded declaration of condominium of each
  480  condominium operated by the association and each amendment to
  481  each declaration.
  482         b. The recorded bylaws of the association and each
  483  amendment to the bylaws.
  484         c. The articles of incorporation of the association, or
  485  other documents creating the association, and each amendment
  486  thereto. The copy posted pursuant to this sub-subparagraph must
  487  be a copy of the articles of incorporation filed with the
  488  Department of State.
  489         d. The rules of the association.
  490         e. Any management agreement, lease, or other contract to
  491  which the association is a party or under which the association
  492  or the unit owners have an obligation or responsibility.
  493  Summaries of bids for materials, equipment, or services must be
  494  maintained on the website for 1 year.
  495         f. The annual budget required by s. 718.112(2)(f) and any
  496  proposed budget to be considered at the annual meeting.
  497         g. The financial report required by subsection (13) and any
  498  proposed financial report to be considered at a meeting.
  499         h. The certification of each director required by s.
  500  718.112(2)(d)4.b.
  501         i. All contracts or transactions between the association
  502  and any director, officer, corporation, firm, or association
  503  that is not an affiliated condominium association or any other
  504  entity in which an association director is also a director or
  505  officer and is financially interested.
  506         j. Any contract or document regarding a conflict of
  507  interest or possible conflict of interest as provided in ss.
  508  468.436(2) and 718.3026(3).
  509         k. The notice of any unit owner meeting and the agenda for
  510  the meeting, as required by s. 718.112(2)(d)3., no later than 14
  511  days before the meeting. The notice must be posted in plain view
  512  on the front page of the website, or on a separate subpage of
  513  the website labeled “Notices” which is conspicuously visible and
  514  linked from the front page. The association must also post on
  515  its website any document to be considered and voted on by the
  516  owners during the meeting or any document listed on the agenda
  517  at least 7 days before the meeting at which the document or the
  518  information within the document will be considered.
  519         l. Notice of any board meeting, the agenda, and any other
  520  document required for the meeting as required by s.
  521  718.112(2)(c), which must be posted no later than the date
  522  required for notice pursuant to s. 718.112(2)(c).
  523         3. The association shall ensure that the information and
  524  records described in paragraph (c) which are not permitted to be
  525  accessible to unit owners are not posted on the association’s
  526  website. If protected information or information restricted from
  527  being accessible to unit owners is included in documents that
  528  are required to be posted on the association’s website, the
  529  association shall ensure the information is redacted before
  530  posting the documents online.
  531         (13) FINANCIAL REPORTING.—Within 90 days after the end of
  532  the fiscal year, or annually on a date provided in the bylaws,
  533  the association shall prepare and complete, or contract for the
  534  preparation and completion of, a financial report for the
  535  preceding fiscal year. Within 21 days after the final financial
  536  report is completed by the association or received from the
  537  third party, but not later than 120 days after the end of the
  538  fiscal year or other date as provided in the bylaws, the
  539  association shall mail to each unit owner at the address last
  540  furnished to the association by the unit owner, or hand deliver
  541  to each unit owner, a copy of the most recent financial report
  542  or a notice that a copy of the most recent financial report will
  543  be mailed or hand delivered to the unit owner, without charge,
  544  within 5 business days after upon receipt of a written request
  545  from the unit owner. The division shall adopt rules setting
  546  forth uniform accounting principles and standards to be used by
  547  all associations and addressing the financial reporting
  548  requirements for multicondominium associations. The rules must
  549  include, but not be limited to, standards for presenting a
  550  summary of association reserves, including a good faith estimate
  551  disclosing the annual amount of reserve funds that would be
  552  necessary for the association to fully fund reserves for each
  553  reserve item based on the straight-line accounting method. This
  554  disclosure is not applicable to reserves funded via the pooling
  555  method. In adopting such rules, the division shall consider the
  556  number of members and annual revenues of an association.
  557  Financial reports shall be prepared as follows:
  558         (a) An association that meets the criteria of this
  559  paragraph shall prepare a complete set of financial statements
  560  in accordance with generally accepted accounting principles. The
  561  financial statements must be based upon the association’s total
  562  annual revenues, as follows:
  563         1. An association with total annual revenues of $150,000 or
  564  more, but less than $300,000, shall prepare compiled financial
  565  statements.
  566         2. An association with total annual revenues of at least
  567  $300,000, but less than $500,000, shall prepare reviewed
  568  financial statements.
  569         3. An association with total annual revenues of $500,000 or
  570  more shall prepare audited financial statements.
  571         (b)1. An association with total annual revenues of less
  572  than $150,000 shall prepare a report of cash receipts and
  573  expenditures.
  574         2. An association that operates fewer than 50 units,
  575  regardless of the association’s annual revenues, shall prepare a
  576  report of cash receipts and expenditures in lieu of financial
  577  statements required by paragraph (a).
  578         2.3. A report of cash receipts and disbursements must
  579  disclose the amount of receipts by accounts and receipt
  580  classifications and the amount of expenses by accounts and
  581  expense classifications, including, but not limited to, the
  582  following, as applicable: costs for security, professional and
  583  management fees and expenses, taxes, costs for recreation
  584  facilities, expenses for refuse collection and utility services,
  585  expenses for lawn care, costs for building maintenance and
  586  repair, insurance costs, administration and salary expenses, and
  587  reserves accumulated and expended for capital expenditures,
  588  deferred maintenance, and any other category for which the
  589  association maintains reserves.
  590         (c) An association may prepare, without a meeting of or
  591  approval by the unit owners:
  592         1. Compiled, reviewed, or audited financial statements, if
  593  the association is required to prepare a report of cash receipts
  594  and expenditures;
  595         2. Reviewed or audited financial statements, if the
  596  association is required to prepare compiled financial
  597  statements; or
  598         3. Audited financial statements if the association is
  599  required to prepare reviewed financial statements.
  600         (d) If approved by a majority of the voting interests
  601  present at a properly called meeting of the association, an
  602  association may prepare:
  603         1. A report of cash receipts and expenditures in lieu of a
  604  compiled, reviewed, or audited financial statement;
  605         2. A report of cash receipts and expenditures or a compiled
  606  financial statement in lieu of a reviewed or audited financial
  607  statement; or
  608         3. A report of cash receipts and expenditures, a compiled
  609  financial statement, or a reviewed financial statement in lieu
  610  of an audited financial statement.
  611  
  612  Such meeting and approval must occur before the end of the
  613  fiscal year and is effective only for the fiscal year in which
  614  the vote is taken, except that the approval may also be
  615  effective for the following fiscal year. If the developer has
  616  not turned over control of the association, all unit owners,
  617  including the developer, may vote on issues related to the
  618  preparation of the association’s financial reports, from the
  619  date of incorporation of the association through the end of the
  620  second fiscal year after the fiscal year in which the
  621  certificate of a surveyor and mapper is recorded pursuant to s.
  622  718.104(4)(e) or an instrument that transfers title to a unit in
  623  the condominium which is not accompanied by a recorded
  624  assignment of developer rights in favor of the grantee of such
  625  unit is recorded, whichever occurs first. Thereafter, all unit
  626  owners except the developer may vote on such issues until
  627  control is turned over to the association by the developer. Any
  628  audit or review prepared under this section shall be paid for by
  629  the developer if done before turnover of control of the
  630  association. An association may not waive the financial
  631  reporting requirements of this section for more than 3
  632  consecutive years.
  633         (e) A unit owner may provide written notice to the division
  634  of the association’s failure to mail or hand deliver to him or
  635  her a copy of the most recent financial report within 5 business
  636  days after he or she submitted a written request to the
  637  association for a copy of such report. If the division
  638  determines that the association failed to mail or hand deliver a
  639  copy of the most recent financial report to the unit owner, the
  640  division shall provide written notice to the association that
  641  the association must mail or hand deliver a copy of the most
  642  recent financial report to the unit owner and the division
  643  within 5 business days after it receives such notice from the
  644  division. An association that fails to comply with the
  645  division’s request may not waive the financial reporting
  646  requirement provided in paragraph (d). A financial report
  647  received by the division pursuant to this paragraph shall be
  648  maintained, and the division shall provide a copy of such report
  649  to an association member upon his or her request.
  650         (15) DEBIT CARDS.—
  651         (a) An association and its officers, directors, employees,
  652  and agents may not use a debit card issued in the name of the
  653  association, or billed directly to the association, for the
  654  payment of any association expense.
  655         (b) Use of a debit card issued in the name of the
  656  association, or billed directly to the association, for any
  657  expense that is not a lawful obligation of the association may
  658  be prosecuted as credit card fraud pursuant to s. 817.61.
  659         Section 3. Paragraphs (c) and (l) of subsection (2) of
  660  section 718.112, Florida Statutes, are amended to read:
  661         718.112 Bylaws.—
  662         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  663  following and, if they do not do so, shall be deemed to include
  664  the following:
  665         (c) Board of administration meetings.—Meetings of the board
  666  of administration at which a quorum of the members is present
  667  are open to all unit owners. Members of the board of
  668  administration may use e-mail as a means of communication but
  669  may not cast a vote on an association matter via e-mail. A unit
  670  owner may tape record or videotape the meetings. The right to
  671  attend such meetings includes the right to speak at such
  672  meetings with reference to all designated agenda items. The
  673  division shall adopt reasonable rules governing the tape
  674  recording and videotaping of the meeting. The association may
  675  adopt written reasonable rules governing the frequency,
  676  duration, and manner of unit owner statements.
  677         1. Adequate notice of all board meetings, which must
  678  specifically identify all agenda items, must be posted
  679  conspicuously on the condominium property at least 48 continuous
  680  hours before the meeting except in an emergency. If 20 percent
  681  of the voting interests petition the board to address an item of
  682  business, the board, within 60 days after receipt of the
  683  petition, shall place the item on the agenda at its next regular
  684  board meeting or at a special meeting called for that purpose.
  685  An item not included on the notice may be taken up on an
  686  emergency basis by a vote of at least a majority plus one of the
  687  board members. Such emergency action must be noticed and
  688  ratified at the next regular board meeting. Notice of any
  689  meeting in which a regular or special assessment against unit
  690  owners is to be considered must specifically state that
  691  assessments will be considered and provide the estimated amount
  692  and a description of the purposes for such assessments. However,
  693  Written notice of a meeting at which a nonemergency special
  694  assessment or an amendment to rules regarding unit use will be
  695  considered must be mailed, delivered, or electronically
  696  transmitted to the unit owners and posted conspicuously on the
  697  condominium property at least 14 days before the meeting.
  698  Evidence of compliance with this 14-day notice requirement must
  699  be made by an affidavit executed by the person providing the
  700  notice and filed with the official records of the association.
  701  Upon notice to the unit owners, the board shall, by duly adopted
  702  rule, designate a specific location on the condominium or
  703  association property where all notices of board meetings must be
  704  posted. If there is no condominium property or association
  705  property where notices can be posted, notices shall be mailed,
  706  delivered, or electronically transmitted to each unit owner at
  707  least 14 days before the meeting. In lieu of or in addition to
  708  the physical posting of the notice on the condominium property,
  709  the association may, by reasonable rule, adopt a procedure for
  710  conspicuously posting and repeatedly broadcasting the notice and
  711  the agenda on a closed-circuit cable television system serving
  712  the condominium association. However, if broadcast notice is
  713  used in lieu of a notice physically posted on condominium
  714  property, the notice and agenda must be broadcast at least four
  715  times every broadcast hour of each day that a posted notice is
  716  otherwise required under this section. If broadcast notice is
  717  provided, the notice and agenda must be broadcast in a manner
  718  and for a sufficient continuous length of time so as to allow an
  719  average reader to observe the notice and read and comprehend the
  720  entire content of the notice and the agenda. In addition to any
  721  of the authorized means of providing notice of a meeting of the
  722  board, the association may, by rule, adopt a procedure for
  723  conspicuously posting the meeting notice and the agenda on a
  724  website serving the condominium association for at least the
  725  minimum period for which a notice of a meeting is required to be
  726  physically posted on the condominium property. Any rule adopted
  727  must, in addition to other matters, include a requirement that
  728  the association send an electronic notice in the same manner as
  729  required for a notice for a meeting of the members, which must
  730  include a hypertext link to the website where the notice is
  731  posted, to unit owners whose e-mail addresses are included in
  732  the association’s official records Notice of any meeting in
  733  which regular or special assessments against unit owners are to
  734  be considered must specifically state that assessments will be
  735  considered and provide the nature, estimated cost, and
  736  description of the purposes for such assessments.
  737         2. Meetings of a committee to take final action on behalf
  738  of the board or make recommendations to the board regarding the
  739  association budget are subject to this paragraph. Meetings of a
  740  committee that does not take final action on behalf of the board
  741  or make recommendations to the board regarding the association
  742  budget are subject to this section, unless those meetings are
  743  exempted from this section by the bylaws of the association.
  744         3. Notwithstanding any other law, the requirement that
  745  board meetings and committee meetings be open to the unit owners
  746  does not apply to:
  747         a. Meetings between the board or a committee and the
  748  association’s attorney, with respect to proposed or pending
  749  litigation, if the meeting is held for the purpose of seeking or
  750  rendering legal advice; or
  751         b. Board meetings held for the purpose of discussing
  752  personnel matters.
  753         (l) Certificate of compliance.—A provision that a
  754  certificate of compliance from a licensed electrical contractor,
  755  or electrician, or professional engineer may be accepted by the
  756  association’s board as evidence of compliance of the condominium
  757  units with the applicable fire and life safety code must be
  758  included. Notwithstanding chapter 633 or of any other code,
  759  statute, ordinance, administrative rule, or regulation, or any
  760  interpretation of the foregoing, an association, residential
  761  condominium, or unit owner is not obligated to retrofit the
  762  common elements, association property, or units of a residential
  763  condominium with a fire sprinkler system or other engineered
  764  lifesafety system in a building that is 75 feet or less in
  765  height. There is no obligation to retrofit for a building
  766  greater than 75 feet in height, calculated from the lowest level
  767  of fire department vehicle access to the floor of the highest
  768  occupiable story, has been certified for occupancy by the
  769  applicable governmental entity if the unit owners have voted to
  770  forego such retrofitting by the affirmative vote of two-thirds a
  771  majority of all voting interests in the affected condominium.
  772  There is no requirement that owners in condominiums of 75 feet
  773  or less conduct an opt-out vote, and such condominiums are
  774  exempt from fire sprinkler or other engineered lifesafety
  775  retrofitting. The preceding sentence is intended to clarify
  776  existing law. The local authority having jurisdiction may not
  777  require completion of retrofitting with a fire sprinkler system
  778  or other engineered lifesafety system before January 1, 2022
  779  2020. By December 31, 2018 2016, an a residential condominium
  780  association that operates a residential condominium that is not
  781  in compliance with the requirements for a fire sprinkler system
  782  or other engineered lifesafety system and has not voted to
  783  forego retrofitting of such a system must initiate an
  784  application for a building permit for the required installation
  785  with the local government having jurisdiction demonstrating that
  786  the association will become compliant by December 31, 2021 2019.
  787         1. A vote to forego required retrofitting may be obtained
  788  by limited proxy or by a ballot personally cast at a duly called
  789  membership meeting, or by execution of a written consent by the
  790  member, or by electronic voting, and is effective upon recording
  791  a certificate executed by an officer or agent of the association
  792  attesting to such vote in the public records of the county where
  793  the condominium is located. When an opt-out vote is to be
  794  conducted at a meeting, the association shall mail or hand
  795  deliver to each unit owner written notice at least 14 days
  796  before the membership meeting in which the vote to forego
  797  retrofitting of the required fire sprinkler system or other
  798  engineered lifesafety system is to take place. Within 30 days
  799  after the association’s opt-out vote, notice of the results of
  800  the opt-out vote must be mailed or hand delivered to all unit
  801  owners. Evidence of compliance with this notice requirement must
  802  be made by affidavit executed by the person providing the notice
  803  and filed among the official records of the association. Failure
  804  to provide timely notice to unit owners does not invalidate an
  805  otherwise valid opt-out vote if notice of the results is
  806  provided to the owners. After notice is provided to each owner,
  807  a copy must be provided by the current owner to a new owner
  808  before closing and by a unit owner to a renter before signing a
  809  lease.
  810         2. If there has been a previous vote to forego
  811  retrofitting, a vote to require retrofitting may be obtained at
  812  a special meeting of the unit owners called by a petition of at
  813  least 10 percent of the voting interests or by a majority of the
  814  board of directors. The approval of two-thirds of all voting
  815  interests in the affected condominium is required to require
  816  retrofitting. Such a vote may only be called once every 3 years.
  817  Notice shall be provided as required for any regularly called
  818  meeting of the unit owners, and must state the purpose of the
  819  meeting. Electronic transmission may not be used to provide
  820  notice of a meeting called in whole or in part for this purpose.
  821         3. As part of the information collected annually from
  822  condominiums, the division shall require condominium
  823  associations to report the membership vote and recording of a
  824  certificate under this subsection and, if retrofitting has been
  825  undertaken, the per-unit cost of such work. The division shall
  826  annually report to the Division of State Fire Marshal of the
  827  Department of Financial Services the number of condominiums that
  828  have elected to forego retrofitting. Compliance with this
  829  administrative reporting requirement does not affect the
  830  validity of an opt-out vote.
  831         4. Notwithstanding s. 553.509, a residential association
  832  may not be obligated to, and may forego the retrofitting of, any
  833  improvements required by s. 553.509(2) upon an affirmative vote
  834  of a majority of the voting interests in the affected
  835  condominium.
  836         5.This paragraph does not apply to timeshare condominium
  837  associations, which shall be governed by s. 721.24.
  838         Section 4. Subsection (2) of section 718.113, Florida
  839  Statutes, is amended to read:
  840         718.113 Maintenance; limitation upon improvement; display
  841  of flag; hurricane shutters and protection; display of religious
  842  decorations.—
  843         (2)(a) Except as otherwise provided in this section, there
  844  shall be no material alteration or substantial additions to the
  845  common elements or to real property which is association
  846  property, except in a manner provided in the declaration as
  847  originally recorded or as amended under the procedures provided
  848  therein. If the declaration as originally recorded or as amended
  849  under the procedures provided therein does not specify the
  850  procedure for approval of material alterations or substantial
  851  additions, 75 percent of the total voting interests of the
  852  association must approve the alterations or additions before the
  853  material alterations or substantial additions are commenced.
  854  This paragraph is intended to clarify existing law and applies
  855  to associations existing on the effective date of this act
  856  October 1, 2008.
  857         (b) There shall not be any material alteration of, or
  858  substantial addition to, the common elements of any condominium
  859  operated by a multicondominium association unless approved in
  860  the manner provided in the declaration of the affected
  861  condominium or condominiums as originally recorded or as amended
  862  under the procedures provided therein. If a declaration as
  863  originally recorded or as amended under the procedures provided
  864  therein does not specify a procedure for approving such an
  865  alteration or addition, the approval of 75 percent of the total
  866  voting interests of each affected condominium is required before
  867  the material alterations or substantial additions are commenced.
  868  This subsection does not prohibit a provision in any
  869  declaration, articles of incorporation, or bylaws as originally
  870  recorded or as amended under the procedures provided therein
  871  requiring the approval of unit owners in any condominium
  872  operated by the same association or requiring board approval
  873  before a material alteration or substantial addition to the
  874  common elements is permitted. This paragraph is intended to
  875  clarify existing law and applies to associations existing on the
  876  effective date of this act.
  877         (c) There shall not be any material alteration or
  878  substantial addition made to association real property operated
  879  by a multicondominium association, except as provided in the
  880  declaration, articles of incorporation, or bylaws as originally
  881  recorded or as amended under the procedures provided therein. If
  882  the declaration, articles of incorporation, or bylaws as
  883  originally recorded or as amended under the procedures provided
  884  therein do not specify the procedure for approving an alteration
  885  or addition to association real property, the approval of 75
  886  percent of the total voting interests of the association is
  887  required before the material alterations or substantial
  888  additions are commenced. This paragraph is intended to clarify
  889  existing law and applies to associations existing on the
  890  effective date of this act.
  891         Section 5. Subsections (1) and (3) of section 718.117,
  892  Florida Statutes, are amended, and subsection (21) is added to
  893  that section, to read:
  894         718.117 Termination of condominium.—
  895         (1) LEGISLATIVE FINDINGS.—The Legislature finds that:
  896         (a) Condominiums are created as authorized by statute and
  897  are subject to covenants that encumber the land and restrict the
  898  use of real property.
  899         (b) In some circumstances, the continued enforcement of
  900  those covenants that may create economic waste or, areas of
  901  disrepair which threaten the safety and welfare of the public,
  902  or cause obsolescence of the a condominium property for its
  903  intended use and thereby lower property tax values, and the
  904  Legislature further finds that it is the public policy of this
  905  state to provide by statute a method to preserve the value of
  906  the property interests and the rights of alienation thereof that
  907  owners have in the condominium property before and after
  908  termination.
  909         (c)The Legislature further finds that It is contrary to
  910  the public policy of this state to require the continued
  911  operation of a condominium when to do so constitutes economic
  912  waste or when the ability to do so is made impossible by law or
  913  regulation.
  914         (d)It is in the best interest of the state to provide for
  915  termination of the covenants of a declaration of condominium in
  916  certain circumstances, in order to:
  917         1.Ensure the continued maintenance, management, and repair
  918  of stormwater management systems, conservation areas, and
  919  conservation easements.
  920         2.Avoid transferring the expense of maintaining
  921  infrastructure serving the condominium property, including, but
  922  not limited to, stormwater systems and conservation areas, to
  923  the general tax bases of the state and local governments.
  924         3.Prevent covenants from impairing the continued
  925  productive use of the property.
  926         4.Protect state residents from health and safety hazards
  927  created by derelict, damaged, obsolete, or abandoned condominium
  928  properties.
  929         5.Provide for fair treatment and just compensation for
  930  individuals, preserve property values, and preserve the local
  931  property tax base.
  932         6.Preserve the state’s long history of protecting
  933  homestead property and homestead property rights by ensuring
  934  that such protection is extended to homestead property owners in
  935  the context of a termination of the covenants of a declaration
  936  of condominium This section applies to all condominiums in this
  937  state in existence on or after July 1, 2007.
  938         (3) OPTIONAL TERMINATION.—Except as provided in subsection
  939  (2) or unless the declaration provides for a lower percentage,
  940  The condominium form of ownership may be terminated for all or a
  941  portion of the condominium property pursuant to a plan of
  942  termination meeting the requirements of this section and
  943  approved by the division. Before a residential association
  944  submits a plan to the division, the plan must be approved by at
  945  least 80 percent of the total voting interests of the
  946  condominium. However, if 5 10 percent or more of the total
  947  voting interests of the condominium have rejected the plan of
  948  termination by negative vote or by providing written objections,
  949  the plan of termination may not proceed.
  950         (a) The termination of the condominium form of ownership is
  951  subject to the following conditions:
  952         1. The total voting interests of the condominium must
  953  include all voting interests for the purpose of considering a
  954  plan of termination. A voting interest of the condominium may
  955  not be suspended for any reason when voting on termination
  956  pursuant to this subsection.
  957         2. If 5 10 percent or more of the total voting interests of
  958  the condominium reject a plan of termination, a subsequent plan
  959  of termination pursuant to this subsection may not be considered
  960  for 24 18 months after the date of the rejection.
  961         (b) This subsection does not apply to any condominium
  962  created pursuant to part VI of this chapter until 10 5 years
  963  after the recording of the declaration of condominium, unless
  964  there is no objection to the plan of termination.
  965         (c) For purposes of this subsection, the term “bulk owner”
  966  means the single holder of such voting interests or an owner
  967  together with a related entity or entities that would be
  968  considered an insider, as defined in s. 726.102, holding such
  969  voting interests. If the condominium association is a
  970  residential association proposed for termination pursuant to
  971  this section and, at the time of recording the plan of
  972  termination, at least 80 percent of the total voting interests
  973  are owned by a bulk owner, the plan of termination is subject to
  974  the following conditions and limitations:
  975         1. If the former condominium units are offered for lease to
  976  the public after the termination, each unit owner in occupancy
  977  immediately before the date of recording of the plan of
  978  termination may lease his or her former unit and remain in
  979  possession of the unit for 12 months after the effective date of
  980  the termination on the same terms as similar unit types within
  981  the property are being offered to the public. In order to obtain
  982  a lease and exercise the right to retain exclusive possession of
  983  the unit owner’s former unit, the unit owner must make a written
  984  request to the termination trustee to rent the former unit
  985  within 90 days after the date the plan of termination is
  986  recorded. Any unit owner who fails to timely make such written
  987  request and sign a lease within 15 days after being presented
  988  with a lease is deemed to have waived his or her right to retain
  989  possession of his or her former unit and shall be required to
  990  vacate the former unit upon the effective date of the
  991  termination, unless otherwise provided in the plan of
  992  termination.
  993         2. Any former unit owner whose unit was granted homestead
  994  exemption status by the applicable county property appraiser as
  995  of the date of the recording of the plan of termination shall be
  996  paid a relocation payment in an amount equal to 1 percent of the
  997  termination proceeds allocated to the owner’s former unit. Any
  998  relocation payment payable under this subparagraph shall be paid
  999  by the single entity or related entities owning at least 80
 1000  percent of the total voting interests. Such relocation payment
 1001  shall be in addition to the termination proceeds for such
 1002  owner’s former unit and shall be paid no later than 10 days
 1003  after the former unit owner vacates his or her former unit.
 1004         3. For their respective units, all unit owners other than
 1005  the bulk owner must be compensated at least 100 percent of the
 1006  fair market value of their units. The fair market value shall be
 1007  determined as of a date that is no earlier than 90 days before
 1008  the date that the plan of termination is recorded and shall be
 1009  determined by an independent appraiser selected by the
 1010  termination trustee. For a person an original purchaser from the
 1011  developer who rejects the plan of termination and whose unit was
 1012  granted homestead exemption status by the applicable county
 1013  property appraiser, or was an owner-occupied operating business,
 1014  as of the date that the plan of termination is recorded and who
 1015  is current in payment of both assessments and other monetary
 1016  obligations to the association and any mortgage encumbering the
 1017  unit as of the date the plan of termination is recorded, the
 1018  fair market value for the unit owner rejecting the plan shall be
 1019  at least the original purchase price paid for the unit. For
 1020  purposes of this subparagraph, the term “fair market value”
 1021  means the price of a unit that a seller is willing to accept and
 1022  a buyer is willing to pay on the open market in an arms-length
 1023  transaction based on similar units sold in other condominiums,
 1024  including units sold in bulk purchases but excluding units sold
 1025  at wholesale or distressed prices. The purchase price of units
 1026  acquired in bulk following a bankruptcy or foreclosure shall not
 1027  be considered for purposes of determining fair market value.
 1028         4. The plan of termination must provide for payment of a
 1029  first mortgage encumbering a unit to the extent necessary to
 1030  satisfy the lien, but the payment may not exceed the unit’s
 1031  share of the proceeds of termination under the plan. If the unit
 1032  owner is current in payment of both assessments and other
 1033  monetary obligations to the association and any mortgage
 1034  encumbering the unit as of the date the plan of termination is
 1035  recorded, the receipt by the holder of the unit’s share of the
 1036  proceeds of termination under the plan or the outstanding
 1037  balance of the mortgage, whichever is less, shall be deemed to
 1038  have satisfied the first mortgage in full.
 1039         5. Before a plan of termination is presented to the unit
 1040  owners for consideration pursuant to this paragraph, the plan
 1041  must include the following written disclosures in a sworn
 1042  statement:
 1043         a. The identity of any person or entity that owns or
 1044  controls 25 50 percent or more of the units in the condominium
 1045  and, if the units are owned by an artificial entity or entities,
 1046  a disclosure of the natural person or persons who, directly or
 1047  indirectly, manage or control the entity or entities and the
 1048  natural person or persons who, directly or indirectly, own or
 1049  control 10 20 percent or more of the artificial entity or
 1050  entities that constitute the bulk owner.
 1051         b. The units acquired by any bulk owner, the date each unit
 1052  was acquired, and the total amount of compensation paid to each
 1053  prior unit owner by the bulk owner, regardless of whether
 1054  attributed to the purchase price of the unit.
 1055         c. The relationship of any board member to the bulk owner
 1056  or any person or entity affiliated with the bulk owner subject
 1057  to disclosure pursuant to this subparagraph.
 1058         d.The factual circumstances that show that the plan
 1059  complies with the requirements of this section and that the plan
 1060  supports the expressed public policies of this section.
 1061         (d) If the members of the board of administration are
 1062  elected by the bulk owner, unit owners other than the bulk owner
 1063  may elect at least one-third of the members of the board of
 1064  administration before the approval of any plan of termination.
 1065         (e)Subsection (2) does not apply to optional termination
 1066  pursuant to this subsection.
 1067         (21)APPLICABILITY.—This section applies to all
 1068  condominiums in this state in existence on or after July 1,
 1069  2007.
 1070         Section 6. The amendments made by this act to s. 718.117,
 1071  Florida Statutes, are intended to clarify existing law, are
 1072  remedial in nature and intended to address the rights and
 1073  liabilities of the affected parties, and apply to all
 1074  condominiums created under the Condominium Act.
 1075         Section 7. Section 718.707, Florida Statutes, is amended to
 1076  read:
 1077         718.707 Time limitation for classification as bulk assignee
 1078  or bulk buyer.—A person acquiring condominium parcels may not be
 1079  classified as a bulk assignee or bulk buyer unless the
 1080  condominium parcels were acquired on or after July 1, 2010, but
 1081  before July 1, 2018. The date of such acquisition shall be
 1082  determined by the date of recording a deed or other instrument
 1083  of conveyance for such parcels in the public records of the
 1084  county in which the condominium is located, or by the date of
 1085  issuing a certificate of title in a foreclosure proceeding with
 1086  respect to such condominium parcels.
 1087         Section 8. Paragraphs (a) and (b) of subsection (2) and
 1088  paragraphs (b) and (c) of subsection (4) of section 719.104,
 1089  Florida Statutes, are amended to read:
 1090         719.104 Cooperatives; access to units; records; financial
 1091  reports; assessments; purchase of leases.—
 1092         (2) OFFICIAL RECORDS.—
 1093         (a) From the inception of the association, the association
 1094  shall maintain a copy of each of the following, where
 1095  applicable, which shall constitute the official records of the
 1096  association:
 1097         1. The plans, permits, warranties, and other items provided
 1098  by the developer pursuant to s. 719.301(4).
 1099         2. A photocopy of the cooperative documents.
 1100         3. A copy of the current rules of the association.
 1101         4. A book or books containing the minutes of all meetings
 1102  of the association, of the board of directors, and of the unit
 1103  owners, which minutes shall be retained for a period of not less
 1104  than 7 years.
 1105         5. A current roster of all unit owners and their mailing
 1106  addresses, unit identifications, voting certifications, and, if
 1107  known, telephone numbers. The association shall also maintain
 1108  the electronic mailing addresses and the numbers designated by
 1109  unit owners for receiving notice sent by electronic transmission
 1110  of those unit owners consenting to receive notice by electronic
 1111  transmission. The electronic mailing addresses and numbers
 1112  provided by unit owners to receive notice by electronic
 1113  transmission shall be removed from association records when
 1114  consent to receive notice by electronic transmission is revoked.
 1115  However, the association is not liable for an erroneous
 1116  disclosure of the electronic mail address or the number for
 1117  receiving electronic transmission of notices.
 1118         6. All current insurance policies of the association.
 1119         7. A current copy of any management agreement, lease, or
 1120  other contract to which the association is a party or under
 1121  which the association or the unit owners have an obligation or
 1122  responsibility.
 1123         8. Bills of sale or transfer for all property owned by the
 1124  association.
 1125         9. Accounting records for the association and separate
 1126  accounting records for each unit it operates, according to good
 1127  accounting practices. All accounting records shall be maintained
 1128  for a period of not less than 7 years. The accounting records
 1129  shall include, but not be limited to:
 1130         a. Accurate, itemized, and detailed records of all receipts
 1131  and expenditures.
 1132         b. A current account and a monthly, bimonthly, or quarterly
 1133  statement of the account for each unit designating the name of
 1134  the unit owner, the due date and amount of each assessment, the
 1135  amount paid upon the account, and the balance due.
 1136         c. All audits, reviews, accounting statements, and
 1137  financial reports of the association.
 1138         d. All contracts for work to be performed. Bids for work to
 1139  be performed shall also be considered official records and shall
 1140  be maintained for a period of 1 year.
 1141         10. Ballots, sign-in sheets, voting proxies, and all other
 1142  papers and electronic records relating to voting by unit owners,
 1143  which shall be maintained for a period of 1 year after the date
 1144  of the election, vote, or meeting to which the document relates.
 1145         11. All rental records where the association is acting as
 1146  agent for the rental of units.
 1147         12. A copy of the current question and answer sheet as
 1148  described in s. 719.504.
 1149         13. All other written records of the association not
 1150  specifically included in the foregoing which are related to the
 1151  operation of the association.
 1152         (b) The official records of the association must be
 1153  maintained within the state for at least 7 years. The records of
 1154  the association shall be made available to a unit owner within
 1155  45 miles of the cooperative property or within the county in
 1156  which the cooperative property is located within 10 5 working
 1157  days after receipt of written request by the board or its
 1158  designee. This paragraph may be complied with by having a copy
 1159  of the official records of the association available for
 1160  inspection or copying on the cooperative property or the
 1161  association may offer the option of making the records available
 1162  to a unit owner electronically via the Internet or by allowing
 1163  the records to be viewed in an electronic format on a computer
 1164  screen and printed upon request. The association is not
 1165  responsible for the use or misuse of the information provided to
 1166  an association member or his or her authorized representative
 1167  pursuant to the compliance requirements of this chapter unless
 1168  the association has an affirmative duty not to disclose such
 1169  information pursuant to this chapter.
 1170         (4) FINANCIAL REPORT.—
 1171         (b) Except as provided in paragraph (c), an association
 1172  whose total annual revenues meet the criteria of this paragraph
 1173  shall prepare or cause to be prepared a complete set of
 1174  financial statements according to the generally accepted
 1175  accounting principles adopted by the Board of Accountancy. The
 1176  financial statements shall be as follows:
 1177         1. An association with total annual revenues between
 1178  $150,000 and $299,999 shall prepare a compiled financial
 1179  statement.
 1180         2. An association with total annual revenues between
 1181  $300,000 and $499,999 shall prepare a reviewed financial
 1182  statement.
 1183         3. An association with total annual revenues of $500,000 or
 1184  more shall prepare an audited financial statement.
 1185         4. The requirement to have the financial statement
 1186  compiled, reviewed, or audited does not apply to an association
 1187  if a majority of the voting interests of the association present
 1188  at a duly called meeting of the association have voted to waive
 1189  this requirement for the fiscal year. In an association in which
 1190  turnover of control by the developer has not occurred, the
 1191  developer may vote to waive the audit requirement for the first
 1192  2 years of operation of the association, after which time waiver
 1193  of an applicable audit requirement shall be by a majority of
 1194  voting interests other than the developer. The meeting shall be
 1195  held prior to the end of the fiscal year, and the waiver shall
 1196  be effective for only one fiscal year. An association may not
 1197  waive the financial reporting requirements of this section for
 1198  more than 3 consecutive years.
 1199         (c)1. An association with total annual revenues of less
 1200  than $150,000 shall prepare a report of cash receipts and
 1201  expenditures.
 1202         2.An association in a community of fewer than 50 units,
 1203  regardless of the association’s annual revenues, shall prepare a
 1204  report of cash receipts and expenditures in lieu of the
 1205  financial statements required by paragraph (b), unless the
 1206  declaration or other recorded governing documents provide
 1207  otherwise.
 1208         2.3. A report of cash receipts and expenditures must
 1209  disclose the amount of receipts by accounts and receipt
 1210  classifications and the amount of expenses by accounts and
 1211  expense classifications, including the following, as applicable:
 1212  costs for security, professional, and management fees and
 1213  expenses; taxes; costs for recreation facilities; expenses for
 1214  refuse collection and utility services; expenses for lawn care;
 1215  costs for building maintenance and repair; insurance costs;
 1216  administration and salary expenses; and reserves, if maintained
 1217  by the association.
 1218         Section 9. Subsection (5) of section 719.1055, Florida
 1219  Statutes, is amended to read:
 1220         719.1055 Amendment of cooperative documents; alteration and
 1221  acquisition of property.—
 1222         (5) The bylaws must include a provision whereby a
 1223  certificate of compliance from a licensed electrical contractor,
 1224  or electrician, or professional engineer may be accepted by the
 1225  association’s board as evidence of compliance of the cooperative
 1226  units with the applicable fire and life safety code.
 1227         (a)1. Notwithstanding chapter 633 or any other code,
 1228  statute, ordinance, administrative rule, or regulation, or any
 1229  interpretation of the foregoing, an association a cooperative or
 1230  unit owner is not obligated to retrofit the common elements or
 1231  units of a residential cooperative with a fire sprinkler system
 1232  or other engineered lifesafety system in a building that is 75
 1233  feet or less in height. There is no obligation to retrofit for a
 1234  building greater than 75 feet in height, calculated from the
 1235  lowest level of fire department vehicle access to the floor of
 1236  the highest occupiable story, has been certified for occupancy
 1237  by the applicable governmental entity if the unit owners have
 1238  voted to forego such retrofitting by the affirmative vote of
 1239  two-thirds a majority of all voting interests in the affected
 1240  cooperative. There is no requirement that owners in cooperatives
 1241  of 75 feet or less conduct an opt-out vote, and such
 1242  cooperatives are exempt from fire sprinkler or other engineered
 1243  life safety retrofitting. The preceding sentence is intended to
 1244  clarify existing law. The local authority having jurisdiction
 1245  may not require completion of retrofitting with a fire sprinkler
 1246  system or other engineered life safety system before January 1,
 1247  2022 the end of 2019. By December 31, 2018 2016, a cooperative
 1248  that is not in compliance with the requirements for a fire
 1249  sprinkler system or other engineered lifesafety system and has
 1250  not voted to forego retrofitting of such a system must initiate
 1251  an application for a building permit for the required
 1252  installation with the local government having jurisdiction
 1253  demonstrating that the cooperative will become compliant by
 1254  December 31, 2021 2019.
 1255         2. A vote to forego required retrofitting may be obtained
 1256  by limited proxy or by a ballot personally cast at a duly called
 1257  membership meeting, or by execution of a written consent by the
 1258  member, or by electronic voting, and is effective upon recording
 1259  a certificate executed by an officer or agent of the association
 1260  attesting to such vote in the public records of the county where
 1261  the cooperative is located. When the opt-out vote is to be
 1262  conducted at a meeting, the cooperative shall mail or hand
 1263  deliver to each unit owner written notice at least 14 days
 1264  before the membership meeting in which the vote to forego
 1265  retrofitting of the required fire sprinkler system or other
 1266  engineered lifesafety system is to take place. Within 30 days
 1267  after the cooperative’s opt-out vote, notice of the results of
 1268  the opt-out vote must be mailed or hand delivered to all unit
 1269  owners. Evidence of compliance with this notice requirement must
 1270  be made by affidavit executed by the person providing the notice
 1271  and filed among the official records of the cooperative. Failure
 1272  to provide timely notice to unit owners does not invalidate an
 1273  otherwise valid opt-out vote if notice of the results is
 1274  provided to the owners. After notice is provided to each owner,
 1275  a copy must be provided by the current owner to a new owner
 1276  before closing and by a unit owner to a renter before signing a
 1277  lease.
 1278         (b) If there has been a previous vote to forego
 1279  retrofitting, a vote to require retrofitting may be obtained at
 1280  a special meeting of the unit owners called by a petition of
 1281  least 10 percent of the voting interests or by a majority of the
 1282  board of directors. The approval of two-thirds of all voting
 1283  interests in the affected condominium is required to require
 1284  retrofitting. Such vote may only be called once every 3 years.
 1285  Notice must be provided as required for any regularly called
 1286  meeting of the unit owners, and the notice must state the
 1287  purpose of the meeting. Electronic transmission may not be used
 1288  to provide notice of a meeting called in whole or in part for
 1289  this purpose.
 1290         (c) As part of the information collected annually from
 1291  cooperatives, the division shall require associations to report
 1292  the membership vote and recording of a certificate under this
 1293  subsection and, if retrofitting has been undertaken, the per
 1294  unit cost of such work. The division shall annually report to
 1295  the Division of State Fire Marshal of the Department of
 1296  Financial Services the number of cooperatives that have elected
 1297  to forego retrofitting. Compliance with this administrative
 1298  reporting requirement does not affect the validity of an opt-out
 1299  vote.
 1300         Section 10. Paragraphs (a) and (c) of subsection (1) of
 1301  section 719.106, Florida Statutes, are amended, and paragraph
 1302  (m) is added to that subsection, to read:
 1303         719.106 Bylaws; cooperative ownership.—
 1304         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
 1305  documents shall provide for the following, and if they do not,
 1306  they shall be deemed to include the following:
 1307         (a) Administration.—
 1308         1. The form of administration of the association shall be
 1309  described, indicating the titles of the officers and board of
 1310  administration and specifying the powers, duties, manner of
 1311  selection and removal, and compensation, if any, of officers and
 1312  board members. In the absence of such a provision, the board of
 1313  administration shall be composed of five members, except in the
 1314  case of cooperatives having five or fewer units, in which case
 1315  in not-for-profit corporations, the board shall consist of not
 1316  fewer than three members. In a residential cooperative
 1317  association of more than 10 units, coowners of a unit may not
 1318  serve as members of the board of directors at the same time
 1319  unless the coowners own more than one unit or unless there are
 1320  not enough eligible candidates to fill the vacancies on the
 1321  board at the time of the vacancy. In the absence of provisions
 1322  to the contrary, the board of administration shall have a
 1323  president, a secretary, and a treasurer, who shall perform the
 1324  duties of those offices customarily performed by officers of
 1325  corporations. Unless prohibited in the bylaws, the board of
 1326  administration may appoint other officers and grant them those
 1327  duties it deems appropriate. Unless otherwise provided in the
 1328  bylaws, the officers shall serve without compensation and at the
 1329  pleasure of the board. Unless otherwise provided in the bylaws,
 1330  the members of the board shall serve without compensation.
 1331         2. A person who has been suspended or removed by the
 1332  division under this chapter, or who is delinquent in the payment
 1333  of any monetary obligation due to the association, is not
 1334  eligible to be a candidate for board membership and may not be
 1335  listed on the ballot. A director or officer charged by
 1336  information or indictment with a felony theft or embezzlement
 1337  offense involving the association’s funds or property is
 1338  suspended from office. The board shall fill the vacancy
 1339  according to general law until the end of the period of the
 1340  suspension or the end of the director’s term of office,
 1341  whichever occurs first. However, if the charges are resolved
 1342  without a finding of guilt or without acceptance of a plea of
 1343  guilty or nolo contendere, the director or officer shall be
 1344  reinstated for any remainder of his or her term of office. A
 1345  member who has such criminal charges pending may not be
 1346  appointed or elected to a position as a director or officer. A
 1347  person who has been convicted of any felony in this state or in
 1348  any United States District Court, or who has been convicted of
 1349  any offense in another jurisdiction which would be considered a
 1350  felony if committed in this state, is not eligible for board
 1351  membership unless such felon’s civil rights have been restored
 1352  for at least 5 years as of the date such person seeks election
 1353  to the board. The validity of an action by the board is not
 1354  affected if it is later determined that a board member is
 1355  ineligible for board membership due to having been convicted of
 1356  a felony.
 1357         3. When a unit owner files a written inquiry by certified
 1358  mail with the board of administration, the board shall respond
 1359  in writing to the unit owner within 30 days of receipt of the
 1360  inquiry. The board’s response shall either give a substantive
 1361  response to the inquirer, notify the inquirer that a legal
 1362  opinion has been requested, or notify the inquirer that advice
 1363  has been requested from the division. If the board requests
 1364  advice from the division, the board shall, within 10 days of its
 1365  receipt of the advice, provide in writing a substantive response
 1366  to the inquirer. If a legal opinion is requested, the board
 1367  shall, within 60 days after the receipt of the inquiry, provide
 1368  in writing a substantive response to the inquirer. The failure
 1369  to provide a substantive response to the inquirer as provided
 1370  herein precludes the board from recovering attorney’s fees and
 1371  costs in any subsequent litigation, administrative proceeding,
 1372  or arbitration arising out of the inquiry. The association may,
 1373  through its board of administration, adopt reasonable rules and
 1374  regulations regarding the frequency and manner of responding to
 1375  the unit owners’ inquiries, one of which may be that the
 1376  association is obligated to respond to only one written inquiry
 1377  per unit in any given 30-day period. In such case, any
 1378  additional inquiry or inquiries must be responded to in the
 1379  subsequent 30-day period, or periods, as applicable.
 1380         (c) Board of administration meetings.Members of the board
 1381  of administration may use e-mail as a means of communication but
 1382  may not cast a vote on an association matter via e-mail.
 1383  Meetings of the board of administration at which a quorum of the
 1384  members is present shall be open to all unit owners. Any unit
 1385  owner may tape record or videotape meetings of the board of
 1386  administration. The right to attend such meetings includes the
 1387  right to speak at such meetings with reference to all designated
 1388  agenda items. The division shall adopt reasonable rules
 1389  governing the tape recording and videotaping of the meeting. The
 1390  association may adopt reasonable written rules governing the
 1391  frequency, duration, and manner of unit owner statements.
 1392  Adequate notice of all meetings shall be posted in a conspicuous
 1393  place upon the cooperative property at least 48 continuous hours
 1394  preceding the meeting, except in an emergency. Any item not
 1395  included on the notice may be taken up on an emergency basis by
 1396  at least a majority plus one of the members of the board. Such
 1397  emergency action shall be noticed and ratified at the next
 1398  regular meeting of the board. Notice of any meeting in which
 1399  regular or special assessments against unit owners are to be
 1400  considered must specifically state that assessments will be
 1401  considered and provide the estimated amount and description of
 1402  the purposes for such assessments. However, Written notice of
 1403  any meeting at which nonemergency special assessments, or at
 1404  which amendment to rules regarding unit use, will be considered
 1405  shall be mailed, delivered, or electronically transmitted to the
 1406  unit owners and posted conspicuously on the cooperative property
 1407  not less than 14 days before the meeting. Evidence of compliance
 1408  with this 14-day notice shall be made by an affidavit executed
 1409  by the person providing the notice and filed among the official
 1410  records of the association. Upon notice to the unit owners, the
 1411  board shall by duly adopted rule designate a specific location
 1412  on the cooperative property upon which all notices of board
 1413  meetings shall be posted. In lieu of or in addition to the
 1414  physical posting of notice of any meeting of the board of
 1415  administration on the cooperative property, the association may,
 1416  by reasonable rule, adopt a procedure for conspicuously posting
 1417  and repeatedly broadcasting the notice and the agenda on a
 1418  closed-circuit cable television system serving the cooperative
 1419  association. However, if broadcast notice is used in lieu of a
 1420  notice posted physically on the cooperative property, the notice
 1421  and agenda must be broadcast at least four times every broadcast
 1422  hour of each day that a posted notice is otherwise required
 1423  under this section. When broadcast notice is provided, the
 1424  notice and agenda must be broadcast in a manner and for a
 1425  sufficient continuous length of time so as to allow an average
 1426  reader to observe the notice and read and comprehend the entire
 1427  content of the notice and the agenda. In addition to any of the
 1428  authorized means of providing notice of a meeting of the board,
 1429  the association may, by rule, adopt a procedure for
 1430  conspicuously posting the meeting notice and the agenda on a
 1431  website serving the cooperative association for at least the
 1432  minimum period for which a notice of a meeting is required to be
 1433  physically posted on the cooperative property. Any rule adopted
 1434  must, in addition to other matters, include a requirement that
 1435  the association send an electronic notice in the same manner as
 1436  required for a notice for a meeting of the members, which must
 1437  include a hypertext link to the website where the notice is
 1438  posted, to unit owners whose e-mail addresses are included in
 1439  the association’s official records. Notice of any meeting in
 1440  which regular assessments against unit owners are to be
 1441  considered for any reason shall specifically contain a statement
 1442  that assessments will be considered and the nature of any such
 1443  assessments. Meetings of a committee to take final action on
 1444  behalf of the board or to make recommendations to the board
 1445  regarding the association budget are subject to the provisions
 1446  of this paragraph. Meetings of a committee that does not take
 1447  final action on behalf of the board or make recommendations to
 1448  the board regarding the association budget are subject to the
 1449  provisions of this section, unless those meetings are exempted
 1450  from this section by the bylaws of the association.
 1451  Notwithstanding any other law to the contrary, the requirement
 1452  that board meetings and committee meetings be open to the unit
 1453  owners does not apply to board or committee meetings held for
 1454  the purpose of discussing personnel matters or meetings between
 1455  the board or a committee and the association’s attorney, with
 1456  respect to proposed or pending litigation, if the meeting is
 1457  held for the purpose of seeking or rendering legal advice.
 1458         (m)Director or officer delinquencies.—A director or
 1459  officer who is more than 90 days delinquent in the payment of
 1460  any monetary obligation due the association shall be deemed to
 1461  have abandoned the office, creating a vacancy in the office to
 1462  be filled according to law.
 1463         Section 11. Paragraph (b) of subsection (1) of section
 1464  719.107, Florida Statutes, is amended to read:
 1465         719.107 Common expenses; assessment.—
 1466         (1)
 1467         (b) If so provided in the bylaws, the cost of
 1468  communications services as defined in chapter 202, information
 1469  services, or Internet services a master antenna television
 1470  system or duly franchised cable television service obtained
 1471  pursuant to a bulk contract shall be deemed a common expense,
 1472  and if not obtained pursuant to a bulk contract, such cost shall
 1473  be considered common expense if it is designated as such in a
 1474  written contract between the board of administration and the
 1475  company providing the communications services as defined in
 1476  chapter 202, information services, or Internet services master
 1477  television antenna system or the cable television service. The
 1478  contract shall be for a term of not less than 2 years.
 1479         1. Any contract made by the board after April 2, 1992, for
 1480  a community antenna system or duly franchised cable television
 1481  service, communications services as defined in chapter 202,
 1482  information services, or Internet services may be canceled by a
 1483  majority of the voting interests present at the next regular or
 1484  special meeting of the association. Any member may make a motion
 1485  to cancel the contract, but if no motion is made or if such
 1486  motion fails to obtain the required majority at the next regular
 1487  or special meeting, whichever is sooner, following the making of
 1488  the contract, then such contract shall be deemed ratified for
 1489  the term therein expressed.
 1490         2. Any such contract shall provide, and shall be deemed to
 1491  provide if not expressly set forth, that any hearing impaired or
 1492  legally blind unit owner who does not occupy the unit with a
 1493  nonhearing impaired or sighted person may discontinue the
 1494  service without incurring disconnect fees, penalties, or
 1495  subsequent service charges, and as to such units, the owners
 1496  shall not be required to pay any common expenses charge related
 1497  to such service. If less than all members of an association
 1498  share the expenses of cable television, the expense shall be
 1499  shared equally by all participating unit owners. The association
 1500  may use the provisions of s. 719.108 to enforce payment of the
 1501  shares of such costs by the unit owners receiving cable
 1502  television.
 1503         Section 12. Paragraphs (a) and (c) of subsection (2) and
 1504  subsection (7) of section 720.303, Florida Statutes, are amended
 1505  to read:
 1506         720.303 Association powers and duties; meetings of board;
 1507  official records; budgets; financial reporting; association
 1508  funds; recalls.—
 1509         (2) BOARD MEETINGS.—
 1510         (a) Members of the board of administration may use e-mail
 1511  as a means of communication, but may not cast a vote on an
 1512  association matter via e-mail. A meeting of the board of
 1513  directors of an association occurs whenever a quorum of the
 1514  board gathers to conduct association business. Meetings of the
 1515  board must be open to all members, except for meetings between
 1516  the board and its attorney with respect to proposed or pending
 1517  litigation where the contents of the discussion would otherwise
 1518  be governed by the attorney-client privilege. A meeting of the
 1519  board must be held at a location that is accessible to a
 1520  physically handicapped person if requested by a physically
 1521  handicapped person who has a right to attend the meeting. The
 1522  provisions of this subsection shall also apply to the meetings
 1523  of any committee or other similar body when a final decision
 1524  will be made regarding the expenditure of association funds and
 1525  to meetings of any body vested with the power to approve or
 1526  disapprove architectural decisions with respect to a specific
 1527  parcel of residential property owned by a member of the
 1528  community.
 1529         (c) The bylaws shall provide the following for giving
 1530  notice to parcel owners and members of all board meetings and,
 1531  if they do not do so, shall be deemed to include provide the
 1532  following:
 1533         1. Notices of all board meetings must be posted in a
 1534  conspicuous place in the community at least 48 hours in advance
 1535  of a meeting, except in an emergency. In the alternative, if
 1536  notice is not posted in a conspicuous place in the community,
 1537  notice of each board meeting must be mailed or delivered to each
 1538  member at least 7 days before the meeting, except in an
 1539  emergency. Notwithstanding this general notice requirement, for
 1540  communities with more than 100 members, the association bylaws
 1541  may provide for a reasonable alternative to posting or mailing
 1542  of notice for each board meeting, including publication of
 1543  notice, provision of a schedule of board meetings, or the
 1544  conspicuous posting and repeated broadcasting of the notice on a
 1545  closed-circuit cable television system serving the homeowners’
 1546  association. However, if broadcast notice is used in lieu of a
 1547  notice posted physically in the community, the notice must be
 1548  broadcast at least four times every broadcast hour of each day
 1549  that a posted notice is otherwise required. When broadcast
 1550  notice is provided, the notice and agenda must be broadcast in a
 1551  manner and for a sufficient continuous length of time so as to
 1552  allow an average reader to observe the notice and read and
 1553  comprehend the entire content of the notice and the agenda. In
 1554  addition to any of the authorized means of providing notice of a
 1555  meeting of the board, the association may, by rule, adopt a
 1556  procedure for conspicuously posting the meeting notice and the
 1557  agenda on a website serving the association for at least the
 1558  minimum period for which a notice of a meeting is required to be
 1559  physically posted on the association property. Any rule adopted
 1560  must, in addition to other matters, include a requirement that
 1561  the association send an electronic notice in the same manner as
 1562  required for a notice for a meeting of the members, which must
 1563  include a hypertext link to the website where the notice is
 1564  posted, to members who have provided an e-mail address to the
 1565  association for the purpose of receiving notice by electronic
 1566  transmission. The association may provide notice by electronic
 1567  transmission in a manner authorized by law for meetings of the
 1568  board of directors, committee meetings requiring notice under
 1569  this section, and annual and special meetings of the members;
 1570  however, a member must consent in writing to receiving notice by
 1571  electronic transmission.
 1572         2. An assessment may not be levied at a board meeting
 1573  unless the notice of the meeting includes a statement that
 1574  assessments will be considered and the nature of the
 1575  assessments. Written notice of any meeting at which special
 1576  assessments will be considered or at which amendments to rules
 1577  regarding parcel use will be considered must be mailed,
 1578  delivered, or electronically transmitted to the members and
 1579  parcel owners and posted conspicuously on the property or
 1580  broadcast on closed-circuit cable television not less than 14
 1581  days before the meeting.
 1582         3. Directors may not vote by proxy or by secret ballot at
 1583  board meetings, except that secret ballots may be used in the
 1584  election of officers. This subsection also applies to the
 1585  meetings of any committee or other similar body, when a final
 1586  decision will be made regarding the expenditure of association
 1587  funds, and to any body vested with the power to approve or
 1588  disapprove architectural decisions with respect to a specific
 1589  parcel of residential property owned by a member of the
 1590  community.
 1591         (7) FINANCIAL REPORTING.—Within 90 days after the end of
 1592  the fiscal year, or annually on the date provided in the bylaws,
 1593  the association shall prepare and complete, or contract with a
 1594  third party for the preparation and completion of, a financial
 1595  report for the preceding fiscal year. Within 21 days after the
 1596  final financial report is completed by the association or
 1597  received from the third party, but not later than 120 days after
 1598  the end of the fiscal year or other date as provided in the
 1599  bylaws, the association shall, within the time limits set forth
 1600  in subsection (5), provide each member with a copy of the annual
 1601  financial report or a written notice that a copy of the
 1602  financial report is available upon request at no charge to the
 1603  member. Financial reports shall be prepared as follows:
 1604         (a) An association that meets the criteria of this
 1605  paragraph shall prepare or cause to be prepared a complete set
 1606  of financial statements in accordance with generally accepted
 1607  accounting principles as adopted by the Board of Accountancy.
 1608  The financial statements shall be based upon the association’s
 1609  total annual revenues, as follows:
 1610         1. An association with total annual revenues of $150,000 or
 1611  more, but less than $300,000, shall prepare compiled financial
 1612  statements.
 1613         2. An association with total annual revenues of at least
 1614  $300,000, but less than $500,000, shall prepare reviewed
 1615  financial statements.
 1616         3. An association with total annual revenues of $500,000 or
 1617  more shall prepare audited financial statements.
 1618         (b)1. An association with total annual revenues of less
 1619  than $150,000 shall prepare a report of cash receipts and
 1620  expenditures.
 1621         2.An association in a community of fewer than 50 parcels,
 1622  regardless of the association’s annual revenues, may prepare a
 1623  report of cash receipts and expenditures in lieu of financial
 1624  statements required by paragraph (a) unless the governing
 1625  documents provide otherwise.
 1626         2.3. A report of cash receipts and disbursement must
 1627  disclose the amount of receipts by accounts and receipt
 1628  classifications and the amount of expenses by accounts and
 1629  expense classifications, including, but not limited to, the
 1630  following, as applicable: costs for security, professional, and
 1631  management fees and expenses; taxes; costs for recreation
 1632  facilities; expenses for refuse collection and utility services;
 1633  expenses for lawn care; costs for building maintenance and
 1634  repair; insurance costs; administration and salary expenses; and
 1635  reserves if maintained by the association.
 1636         (c) If 20 percent of the parcel owners petition the board
 1637  for a level of financial reporting higher than that required by
 1638  this section, the association shall duly notice and hold a
 1639  meeting of members within 30 days of receipt of the petition for
 1640  the purpose of voting on raising the level of reporting for that
 1641  fiscal year. Upon approval of a majority of the total voting
 1642  interests of the parcel owners, the association shall prepare or
 1643  cause to be prepared, shall amend the budget or adopt a special
 1644  assessment to pay for the financial report regardless of any
 1645  provision to the contrary in the governing documents, and shall
 1646  provide within 90 days of the meeting or the end of the fiscal
 1647  year, whichever occurs later:
 1648         1. Compiled, reviewed, or audited financial statements, if
 1649  the association is otherwise required to prepare a report of
 1650  cash receipts and expenditures;
 1651         2. Reviewed or audited financial statements, if the
 1652  association is otherwise required to prepare compiled financial
 1653  statements; or
 1654         3. Audited financial statements if the association is
 1655  otherwise required to prepare reviewed financial statements.
 1656         (d) If approved by a majority of the voting interests
 1657  present at a properly called meeting of the association, an
 1658  association may prepare or cause to be prepared:
 1659         1. A report of cash receipts and expenditures in lieu of a
 1660  compiled, reviewed, or audited financial statement;
 1661         2. A report of cash receipts and expenditures or a compiled
 1662  financial statement in lieu of a reviewed or audited financial
 1663  statement; or
 1664         3. A report of cash receipts and expenditures, a compiled
 1665  financial statement, or a reviewed financial statement in lieu
 1666  of an audited financial statement.
 1667         Section 13. Paragraph (a) of subsection (9) of section
 1668  720.306, Florida Statutes, is amended to read:
 1669         720.306 Meetings of members; voting and election
 1670  procedures; amendments.—
 1671         (9) ELECTIONS AND BOARD VACANCIES.—
 1672         (a) Elections of directors must be conducted in accordance
 1673  with the procedures set forth in the governing documents of the
 1674  association. Except as provided in paragraph (b), all members of
 1675  the association are eligible to serve on the board of directors,
 1676  and a member may nominate himself or herself as a candidate for
 1677  the board at a meeting where the election is to be held;
 1678  provided, however, that if the election process allows
 1679  candidates to be nominated in advance of the meeting, the
 1680  association is not required to allow nominations at the meeting.
 1681  An election is not required unless more candidates are nominated
 1682  than vacancies exist. If an election is not required because
 1683  there are either an equal number or fewer qualified candidates
 1684  than vacancies exist, and if nominations from the floor are not
 1685  required pursuant to this section or the bylaws, write-in
 1686  nominations are not permitted, and such candidates shall
 1687  commence service on the board of directors, regardless of
 1688  whether a quorum is attained at the annual meeting. Except as
 1689  otherwise provided in the governing documents, boards of
 1690  directors must be elected by a plurality of the votes cast by
 1691  eligible voters. Any challenge to the election process must be
 1692  commenced within 60 days after the election results are
 1693  announced.
 1694         Section 14. Paragraph (b) of subsection (3) of section
 1695  720.3085, Florida Statutes, is amended to read:
 1696         720.3085 Payment for assessments; lien claims.—
 1697         (3) Assessments and installments on assessments that are
 1698  not paid when due bear interest from the due date until paid at
 1699  the rate provided in the declaration of covenants or the bylaws
 1700  of the association, which rate may not exceed the rate allowed
 1701  by law. If no rate is provided in the declaration or bylaws,
 1702  interest accrues at the rate of 18 percent per year.
 1703         (b) Any payment received by an association and accepted
 1704  shall be applied first to any interest accrued, then to any
 1705  administrative late fee, then to any costs and reasonable
 1706  attorney fees incurred in collection, and then to the delinquent
 1707  assessment. This paragraph applies notwithstanding any
 1708  restrictive endorsement, designation, or instruction placed on
 1709  or accompanying a payment. A late fee is not subject to the
 1710  provisions of chapter 687 and is not a fine. The foregoing is
 1711  applicable notwithstanding s. 673.3111, any purported accord and
 1712  satisfaction, or any restrictive endorsement, designation, or
 1713  instruction placed on or accompanying a payment. The preceding
 1714  sentence is intended to clarify existing law.
 1715         Section 15. This act shall take effect July 1, 2017.