Bill Text: FL S0294 | 2017 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Condominium, Cooperative, and Homeowners' Associations
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2017-05-02 - Laid on Table, companion bill(s) passed, see HB 6027 (Ch. 2017-161), CS/CS/HB 1237 (Ch. 2017-188) [S0294 Detail]
Download: Florida-2017-S0294-Introduced.html
Bill Title: Condominium, Cooperative, and Homeowners' Associations
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2017-05-02 - Laid on Table, companion bill(s) passed, see HB 6027 (Ch. 2017-161), CS/CS/HB 1237 (Ch. 2017-188) [S0294 Detail]
Download: Florida-2017-S0294-Introduced.html
Florida Senate - 2017 SB 294 By Senator Bracy 11-00364-17 2017294__ 1 A bill to be entitled 2 An act relating to condominium, cooperative, and 3 homeowners’ associations; amending ss. 718.111, 4 719.104, and 720.303, F.S.; requiring associations to 5 meet specified financial reporting requirements if 6 they fail to provide unit owners or members with 7 requested financial information; providing that 8 associations that fail to provide such information may 9 not exercise a specified reporting option for a 10 specified period; deleting exemptions for certain 11 associations from specified reporting requirements; 12 providing an effective date. 13 14 Be It Enacted by the Legislature of the State of Florida: 15 16 Section 1. Subsection (13) of section 718.111, Florida 17 Statutes, is amended to read: 18 718.111 The association.— 19 (13) FINANCIAL REPORTING.—Within 90 days after the end of 20 the fiscal year, or annually on a date provided in the bylaws, 21 the association shall prepare and complete, or contract for the 22 preparation and completion of, a financial report for the 23 preceding fiscal year. Within 21 days after the final financial 24 report is completed by the association or received from the 25 third party, but not later than 120 days after the end of the 26 fiscal year or other date as provided in the bylaws, the 27 association shall mail to each unit owner at the address last 28 furnished to the association by the unit owner, or hand deliver 29 to each unit owner, a copy of the financial report or a notice 30 that a copy of the financial report will be mailed or hand 31 delivered to the unit owner, without charge, upon receipt of a 32 written request from the unit owner. If, upon receipt of a 33 written request, an association does not provide a copy of the 34 prior year’s financial report to the unit owner, the association 35 shall provide to the division the financial reporting required 36 under this section for the next 3 consecutive years and may not 37 exercise the reporting option authorized in paragraph (d) for 38 those years. The division shall adopt rules setting forth 39 uniform accounting principles and standards to be used by all 40 associations and addressing the financial reporting requirements 41 for multicondominium associations. The rules must include, but 42 not be limited to, standards for presenting a summary of 43 association reserves, including a good faith estimate disclosing 44 the annual amount of reserve funds that would be necessary for 45 the association to fully fund reserves for each reserve item 46 based on the straight-line accounting method. This disclosure is 47 not applicable to reserves funded via the pooling method. In 48 adopting such rules, the division shall consider the number of 49 members and annual revenues of an association. Financial reports 50 shall be prepared as follows: 51 (a) An association that meets the criteria of this 52 paragraph shall prepare a complete set of financial statements 53 in accordance with generally accepted accounting principles. The 54 financial statements must be based upon the association’s total 55 annual revenues, as follows: 56 1. An association with total annual revenues of $150,000 or 57 more, but less than $300,000, shall prepare compiled financial 58 statements. 59 2. An association with total annual revenues of at least 60 $300,000, but less than $500,000, shall prepare reviewed 61 financial statements. 62 3. An association with total annual revenues of $500,000 or 63 more shall prepare audited financial statements. 64 (b)1. An association with total annual revenues of less 65 than $150,000 shall prepare a report of cash receipts and 66 expenditures. 672. An association that operates fewer than 50 units,68regardless of the association’s annual revenues, shall prepare a69report of cash receipts and expenditures in lieu of financial70statements required by paragraph (a).71 2.3.A report of cash receipts and disbursements must 72 disclose the amount of receipts by accounts and receipt 73 classifications and the amount of expenses by accounts and 74 expense classifications, including, but not limited to, the 75 following, as applicable: costs for security, professional and 76 management fees and expenses, taxes, costs for recreation 77 facilities, expenses for refuse collection and utility services, 78 expenses for lawn care, costs for building maintenance and 79 repair, insurance costs, administration and salary expenses, and 80 reserves accumulated and expended for capital expenditures, 81 deferred maintenance, and any other category for which the 82 association maintains reserves. 83 (c) An association may prepare, without a meeting of or 84 approval by the unit owners: 85 1. Compiled, reviewed, or audited financial statements, if 86 the association is required to prepare a report of cash receipts 87 and expenditures; 88 2. Reviewed or audited financial statements, if the 89 association is required to prepare compiled financial 90 statements; or 91 3. Audited financial statements if the association is 92 required to prepare reviewed financial statements. 93 (d) If approved by a majority of the voting interests 94 present at a properly called meeting of the association, an 95 association may prepare: 96 1. A report of cash receipts and expenditures in lieu of a 97 compiled, reviewed, or audited financial statement; 98 2. A report of cash receipts and expenditures or a compiled 99 financial statement in lieu of a reviewed or audited financial 100 statement; or 101 3. A report of cash receipts and expenditures, a compiled 102 financial statement, or a reviewed financial statement in lieu 103 of an audited financial statement. 104 105 Such meeting and approval must occur before the end of the 106 fiscal year and is effective only for the fiscal year in which 107 the vote is taken, except that the approval may also be 108 effective for the following fiscal year. If the developer has 109 not turned over control of the association, all unit owners, 110 including the developer, may vote on issues related to the 111 preparation of the association’s financial reports, from the 112 date of incorporation of the association through the end of the 113 second fiscal year after the fiscal year in which the 114 certificate of a surveyor and mapper is recorded pursuant to s. 115 718.104(4)(e) or an instrument that transfers title to a unit in 116 the condominium which is not accompanied by a recorded 117 assignment of developer rights in favor of the grantee of such 118 unit is recorded, whichever occurs first. Thereafter, all unit 119 owners except the developer may vote on such issues until 120 control is turned over to the association by the developer. Any 121 audit or review prepared under this section shall be paid for by 122 the developer if done before turnover of control of the 123 association. An association may not waive the financial 124 reporting requirements of this section for more than 3 125 consecutive years. 126 Section 2. Paragraphs (a) and (c) of subsection (4) of 127 section 719.104, Florida Statutes, are amended to read: 128 719.104 Cooperatives; access to units; records; financial 129 reports; assessments; purchase of leases.— 130 (4) FINANCIAL REPORT.— 131 (a) Within 90 days following the end of the fiscal or 132 calendar year or annually on such date as provided in the bylaws 133 of the association, the board of administration shall prepare 134 and complete, or contract with a third party to prepare and 135 complete, a financial report covering the preceding fiscal or 136 calendar year. Within 21 days after the financial report is 137 completed by the association or received from the third party, 138 but no later than 120 days after the end of the fiscal year, 139 calendar year, or other date provided in the bylaws, the 140 association shall provide each member with a copy of the annual 141 financial report or a written notice that a copy of the 142 financial report is available upon request at no charge to the 143 member. If, upon receipt of a written request, an association 144 does not provide a copy of the prior year’s financial report to 145 the member, the association shall provide to the division the 146 financial reporting required under this section for the next 3 147 consecutive years and may not exercise the reporting option 148 authorized in paragraph (e) for those years. The division shall 149 adopt rules setting forth uniform accounting principles, 150 standards, and reporting requirements. 151 (c)1. An association with total annual revenues of less 152 than $150,000 shall prepare a report of cash receipts and 153 expenditures. 1542. An association in a community of fewer than 50 units,155regardless of the association’s annual revenues, shall prepare a156report of cash receipts and expenditures in lieu of the157financial statements required by paragraph (b), unless the158declaration or other recorded governing documents provide159otherwise.160 2.3.A report of cash receipts and expenditures must 161 disclose the amount of receipts by accounts and receipt 162 classifications and the amount of expenses by accounts and 163 expense classifications, including the following, as applicable: 164 costs for security, professional, and management fees and 165 expenses; taxes; costs for recreation facilities; expenses for 166 refuse collection and utility services; expenses for lawn care; 167 costs for building maintenance and repair; insurance costs; 168 administration and salary expenses; and reserves, if maintained 169 by the association. 170 Section 3. Subsection (7) of section 720.303, Florida 171 Statutes, is amended to read: 172 720.303 Association powers and duties; meetings of board; 173 official records; budgets; financial reporting; association 174 funds; recalls.— 175 (7) FINANCIAL REPORTING.—Within 90 days after the end of 176 the fiscal year, or annually on the date provided in the bylaws, 177 the association shall prepare and complete, or contract with a 178 third party for the preparation and completion of, a financial 179 report for the preceding fiscal year. Within 21 days after the 180 final financial report is completed by the association or 181 received from the third party, but not later than 120 days after 182 the end of the fiscal year or other date as provided in the 183 bylaws, the association shall, within the time limits set forth 184 in subsection (5), provide each member with a copy of the annual 185 financial report or a written notice that a copy of the 186 financial report is available upon request at no charge to the 187 member. If, upon receipt of a written request, an association 188 does not provide a copy of the prior year’s financial report to 189 the member, the association shall provide to the division the 190 financial reporting required under this section for the next 3 191 consecutive years and may not exercise the reporting option 192 authorized in paragraph (d) for those years. Financial reports 193 shall be prepared as follows: 194 (a) An association that meets the criteria of this 195 paragraph shall prepare or cause to be prepared a complete set 196 of financial statements in accordance with generally accepted 197 accounting principles as adopted by the Board of Accountancy. 198 The financial statements shall be based upon the association’s 199 total annual revenues, as follows: 200 1. An association with total annual revenues of $150,000 or 201 more, but less than $300,000, shall prepare compiled financial 202 statements. 203 2. An association with total annual revenues of at least 204 $300,000, but less than $500,000, shall prepare reviewed 205 financial statements. 206 3. An association with total annual revenues of $500,000 or 207 more shall prepare audited financial statements. 208 (b)1. An association with total annual revenues of less 209 than $150,000 shall prepare a report of cash receipts and 210 expenditures. 2112. An association in a community of fewer than 50 parcels,212regardless of the association’s annual revenues, may prepare a213report of cash receipts and expenditures in lieu of financial214statements required by paragraph (a) unless the governing215documents provide otherwise.216 2.3.A report of cash receipts and disbursement must 217 disclose the amount of receipts by accounts and receipt 218 classifications and the amount of expenses by accounts and 219 expense classifications, including, but not limited to, the 220 following, as applicable: costs for security, professional, and 221 management fees and expenses; taxes; costs for recreation 222 facilities; expenses for refuse collection and utility services; 223 expenses for lawn care; costs for building maintenance and 224 repair; insurance costs; administration and salary expenses; and 225 reserves if maintained by the association. 226 (c) If 20 percent of the parcel owners petition the board 227 for a level of financial reporting higher than that required by 228 this section, the association shall duly notice and hold a 229 meeting of members within 30 days of receipt of the petition for 230 the purpose of voting on raising the level of reporting for that 231 fiscal year. Upon approval of a majority of the total voting 232 interests of the parcel owners, the association shall prepare or 233 cause to be prepared, shall amend the budget or adopt a special 234 assessment to pay for the financial report regardless of any 235 provision to the contrary in the governing documents, and shall 236 provide within 90 days of the meeting or the end of the fiscal 237 year, whichever occurs later: 238 1. Compiled, reviewed, or audited financial statements, if 239 the association is otherwise required to prepare a report of 240 cash receipts and expenditures; 241 2. Reviewed or audited financial statements, if the 242 association is otherwise required to prepare compiled financial 243 statements; or 244 3. Audited financial statements if the association is 245 otherwise required to prepare reviewed financial statements. 246 (d) If approved by a majority of the voting interests 247 present at a properly called meeting of the association, an 248 association may prepare or cause to be prepared: 249 1. A report of cash receipts and expenditures in lieu of a 250 compiled, reviewed, or audited financial statement; 251 2. A report of cash receipts and expenditures or a compiled 252 financial statement in lieu of a reviewed or audited financial 253 statement; or 254 3. A report of cash receipts and expenditures, a compiled 255 financial statement, or a reviewed financial statement in lieu 256 of an audited financial statement. 257 Section 4. This act shall take effect July 1, 2017.