Bill Text: FL S1274 | 2018 | Regular Session | Comm Sub
Bill Title: Community Associations
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2018-03-08 - Laid on Table, refer to CS/CS/CS/HB 841 [S1274 Detail]
Download: Florida-2018-S1274-Comm_Sub.html
Florida Senate - 2018 CS for SB 1274 By the Committee on Regulated Industries; and Senators Passidomo and Mayfield 580-02650-18 20181274c1 1 A bill to be entitled 2 An act relating to community associations; amending s. 3 718.111, F.S.; deleting a provision prohibiting an 4 association from hiring an attorney who represents the 5 management company of the association; revising 6 condominium association recordkeeping and financial 7 reporting requirements; revising the list of documents 8 that the association is required to post online; 9 limiting an association’s liability for inadvertent 10 disclosure of protected or restricted information; 11 providing that the failure of an association to post 12 certain information is not sufficient, in and of 13 itself, to invalidate any action or decision of the 14 association; amending s. 718.112, F.S.; revising 15 provisions relating to required association bylaws; 16 authorizing an association to adopt rules for posting 17 certain notices on the association’s website; revising 18 board term limits; providing responsibilities for unit 19 owners who receive electronic notices; revising and 20 providing board member recall and challenge 21 requirements; authorizing the recovery of attorney 22 fees and costs in an action to challenge the validity 23 of a board member recall; amending s. 718.113, F.S.; 24 revising voting requirements relating to alterations 25 and additions to certain common elements or 26 association property; amending s. 718.3026, F.S.; 27 removing a provision relating to certain contracts or 28 transactions regarding conflicts of interest; amending 29 s. 718.3027, F.S.; providing requirements for proposed 30 activity that is identified as a conflict of interest; 31 amending s. 718.303, F.S.; revising fine and 32 suspension requirements; amending s. 718.707, F.S.; 33 revising the time limitation for classification as a 34 bulk assignee or bulk buyer; amending s. 719.104, 35 F.S.; revising cooperative association recordkeeping 36 requirements; amending s. 719.106, F.S.; revising the 37 composition of boards of administration; placing an 38 additional restriction on service as a board member; 39 prohibiting a board member from voting via e-mail; 40 requiring that a notice for certain meetings contain 41 certain information; authorizing an association to 42 adopt rules for posting certain notices on a website; 43 requiring that an adopted rule contain a certain 44 requirement related to electronic notice; providing 45 responsibilities for unit owners who receive 46 electronic notices; providing that directors or 47 officers who are delinquent in certain payments owed 48 in excess of certain periods of time are deemed to 49 have abandoned their offices; amending s. 719.107, 50 F.S.; specifying that certain services that are 51 obtained pursuant to a bulk contract are deemed a 52 common expense; amending s. 719.303, F.S.; revising 53 fine and suspension requirements; specifying a fine 54 payment is due within a certain timeframe after the 55 fine is approved by the committee; requiring the 56 association to provide written notice of certain fines 57 or suspensions to certain persons; amending s. 58 720.303, F.S.; prohibiting a board member from voting 59 via e-mail; revising reserve account requirements; 60 providing requirements for votes relating to reserve 61 accounts; providing applicability; requiring that 62 meetings at which a proposed annual budget will be 63 considered be open to all parcel owners; providing 64 requirements for special meetings held to consider a 65 substitute annual budget; amending s. 720.305, F.S.; 66 expanding the list of persons required to be notified 67 of a fine or suspension before the fine or suspension 68 may be imposed; specifying that a payment for a fine 69 is due within a certain timeframe; amending s. 70 720.306, F.S.; prohibiting write-in nominations for 71 certain elections; requiring certain candidates to 72 commence service on the board of directors regardless 73 of whether a quorum is attained; amending s. 720.3085, 74 F.S.; clarifying applicability; amending s. 720.401, 75 F.S.; revising the statements required to be included 76 in the disclosure summary; providing an effective 77 date. 78 79 Be It Enacted by the Legislature of the State of Florida: 80 81 Section 1. Subsection (3), paragraphs (a), (b), (c), (e), 82 and (g) of subsection (12), and paragraph (e) of subsection (13) 83 of section 718.111, Florida Statutes, are amended to read: 84 718.111 The association.— 85 (3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT, 86 SUE, AND BE SUED; CONFLICT OF INTEREST.— 87(a)The association may contract, sue, or be sued with 88 respect to the exercise or nonexercise of its powers. For these 89 purposes, the powers of the association include, but are not 90 limited to, the maintenance, management, and operation of the 91 condominium property. After control of the association is 92 obtained by unit owners other than the developer, the 93 association may institute, maintain, settle, or appeal actions 94 or hearings in its name on behalf of all unit owners concerning 95 matters of common interest to most or all unit owners, 96 including, but not limited to, the common elements; the roof and 97 structural components of a building or other improvements; 98 mechanical, electrical, and plumbing elements serving an 99 improvement or a building; representations of the developer 100 pertaining to any existing or proposed commonly used facilities; 101 and protesting ad valorem taxes on commonly used facilities and 102 on units; and may defend actions in eminent domain or bring 103 inverse condemnation actions. If the association has the 104 authority to maintain a class action, the association may be 105 joined in an action as representative of that class with 106 reference to litigation and disputes involving the matters for 107 which the association could bring a class action. Nothing herein 108 limits any statutory or common-law right of any individual unit 109 owner or class of unit owners to bring any action without 110 participation by the association which may otherwise be 111 available. 112(b)An association may not hire an attorney who represents113the management company of the association.114 (12) OFFICIAL RECORDS.— 115 (a)From the inception of the association,The association 116 shall maintain each of the following items, if applicable, which 117 constitutes the official records of the association: 118 1. A copy of the plans, permits, warranties, and other 119 items provided by the developer pursuant to s. 718.301(4). 120 2. A photocopy of the recorded declaration of condominium 121 of each condominium operated by the association and each 122 amendment to each declaration. 123 3. A photocopy of the recorded bylaws of the association 124 and each amendment to the bylaws. 125 4. A certified copy of the articles of incorporation of the 126 association, or other documents creating the association, and 127 each amendment thereto. 128 5. A copy of the current rules of the association. 129 6. A book or books that contain the minutes of all meetings 130 of the association, the board of administration, and the unit 131 owners, which minutes must be retained for at least 7 years. 132 7. A current roster of all unit owners and their mailing 133 addresses, unit identifications, voting certifications, and, if 134 known, telephone numbers. The association shall also maintain 135 the e-mailelectronic mailingaddresses and facsimile numbers of 136 unit owners consenting to receive notice by electronic 137 transmission. The e-mailelectronic mailingaddresses and 138 facsimile numbers are not accessible to unit owners if consent 139 to receive notice by electronic transmission is not provided in 140 accordance with sub-subparagraph (c)3.e. However, the 141 association is not liable for an inadvertent disclosure of the 142 e-mailelectronic mailaddress or facsimile number for receiving 143 electronic transmission of notices. 144 8. All current insurance policies of the association and 145 condominiums operated by the association. 146 9. A current copy of any management agreement, lease, or 147 other contract to which the association is a party or under 148 which the association or the unit owners have an obligation or 149 responsibility. 150 10. Bills of sale or transfer for all property owned by the 151 association. 152 11. Accounting records for the association and separate 153 accounting records for each condominium that the association 154 operates.All accounting records must be maintained for at least1557 years.Any person who knowingly or intentionally defaces or 156 destroys such records, or who knowingly or intentionally fails 157 to create or maintain such records, with the intent of causing 158 harm to the association or one or more of its members, is 159 personally subject to a civil penalty pursuant to s. 160 718.501(1)(d). The accounting records must include, but are not 161 limited to: 162 a. Accurate, itemized, and detailed records of all receipts 163 and expenditures. 164 b. A current account and a monthly, bimonthly, or quarterly 165 statement of the account for each unit designating the name of 166 the unit owner, the due date and amount of each assessment, the 167 amount paid on the account, and the balance due. 168 c. All audits, reviews, accounting statements, and 169 financial reports of the association or condominium. 170 d. All contracts for work to be performed. Bids for work to 171 be performed are also considered official records and must be 172 maintained by the association for a period of 1 year after the 173 date of receipt. 174 12. Ballots, sign-in sheets, voting proxies, and all other 175 papers and electronic records relating to voting by unit owners, 176 which must be maintained for 1 year from the date of the 177 election, vote, or meeting to which the document relates, 178 notwithstanding paragraph (b). 179 13. All rental records if the association is acting as 180 agent for the rental of condominium units. 181 14. A copy of the current question and answer sheet as 182 described in s. 718.504. 183 15. All other written records of the association not 184 specifically included in the foregoing which are related to the 185 operation of the association. 186 16. A copy of the inspection report as described in s. 187 718.301(4)(p). 188 17. Bids for materials, equipment, or services, which must 189 be maintained by the association for a period of 1 year after 190 the date of receipt. 191 (b) The official records specified in subparagraphs (a)1. 192 6. must be permanently maintained from the inception of the 193 association. All other official recordsof the associationmust 194 be maintained within the state for at least 7 years, unless 195 otherwise provided by law. The records of the association shall 196 be made available to a unit owner within 45 miles of the 197 condominium property or within the county in which the 198 condominium property is located within 105working days after 199 receipt of a written request by the board or its designee. 200 However, such distance requirement does not apply to an 201 association governing a timeshare condominium. This paragraph 202 may be complied with by having a copy of the official records of 203 the association available for inspection or copying on the 204 condominium property or association property, or the association 205 may offer the option of making the records available to a unit 206 owner electronically via the Internet or by allowing the records 207 to be viewed in electronic format on a computer screen and 208 printed upon request. The association is not responsible for the 209 use or misuse of the information provided to an association 210 member or his or her authorized representative pursuant to the 211 compliance requirements of this chapter unless the association 212 has an affirmative duty not to disclose such information 213 pursuant to this chapter. 214 (c)1. The official records of the association are open to 215 inspection by any association member or the authorized 216 representative of such member at all reasonable times. The right 217 to inspect the records includes the right to make or obtain 218 copies, at the reasonable expense, if any, of the member or 219 authorized representative of such member. A renter of a unit has 220 a right to inspect and copy the association’s bylaws and rules. 221 The association may adopt reasonable rules regarding the 222 frequency, time, location, notice, and manner of record 223 inspections and copying. The failure of an association to 224 provide the records within 10 working days after receipt of a 225 written request creates a rebuttable presumption that the 226 association willfully failed to comply with this paragraph. A 227 unit owner who is denied access to official records is entitled 228 to the actual damages or minimum damages for the association’s 229 willful failure to comply. Minimum damages are $50 per calendar 230 day for up to 10 days, beginning on the 11th working day after 231 receipt of the written request. The failure to allowpermit232 inspection entitles any person prevailing in an enforcement 233 action to recover reasonable attorney fees from the person in 234 control of the records who, directly or indirectly, knowingly 235 denied access to the records. 236 2. Any person who knowingly or intentionally defaces or 237 destroys accounting records that are required by this chapter to 238 be maintained during the period for which such records are 239 required to be maintained, or who knowingly or intentionally 240 fails to create or maintain accounting records that are required 241 to be created or maintained, with the intent of causing harm to 242 the association or one or more of its members, is personally 243 subject to a civil penalty pursuant to s. 718.501(1)(d). 244 3. The association shall maintain an adequate number of 245 copies of the declaration, articles of incorporation, bylaws, 246 and rules, and all amendments to each of the foregoing, as well 247 as the question and answer sheet as described in s. 718.504 and 248 year-end financial information required under this section, on 249 the condominium property to ensure their availability to unit 250 owners and prospective purchasers, and may charge its actual 251 costs for preparing and furnishing these documents to those 252 requesting the documents. An association shall allow a member or 253 his or her authorized representative to use a portable device, 254 including a smartphone, tablet, portable scanner, or any other 255 technology capable of scanning or taking photographs, to make an 256 electronic copy of the official records in lieu of the 257 association’s providing the member or his or her authorized 258 representative with a copy of such records. The association may 259 not charge a member or his or her authorized representative for 260 the use of a portable device. Notwithstanding this paragraph, 261 the following records are not accessible to unit owners: 262 a. Any record protected by the lawyer-client privilege as 263 described in s. 90.502 and any record protected by the work 264 product privilege, including a record prepared by an association 265 attorney or prepared at the attorney’s express direction, which 266 reflects a mental impression, conclusion, litigation strategy, 267 or legal theory of the attorney or the association, and which 268 was prepared exclusively for civil or criminal litigation or for 269 adversarial administrative proceedings, or which was prepared in 270 anticipation of such litigation or proceedings until the 271 conclusion of the litigation or proceedings. 272 b. Information obtained by an association in connection 273 with the approval of the lease, sale, or other transfer of a 274 unit. 275 c. Personnel records of association or management company 276 employees, including, but not limited to, disciplinary, payroll, 277 health, and insurance records. For purposes of this sub 278 subparagraph, the term “personnel records” does not include 279 written employment agreements with an association employee or 280 management company, or budgetary or financial records that 281 indicate the compensation paid to an association employee. 282 d. Medical records of unit owners. 283 e. Social security numbers, driver license numbers, credit 284 card numbers, e-mail addresses, telephone numbers, facsimile 285 numbers, emergency contact information, addresses of a unit 286 owner other than as provided to fulfill the association’s notice 287 requirements, and other personal identifying information of any 288 person, excluding the person’s name, unit designation, mailing 289 address, property address, and any address, e-mail address, or 290 facsimile number provided to the association to fulfill the 291 association’s notice requirements. Notwithstanding the 292 restrictions in this sub-subparagraph, an association may print 293 and distribute to parcel owners a directory containing the name, 294 parcel address, and all telephone numbers of each parcel owner. 295 However, an owner may exclude his or her telephone numbers from 296 the directory by so requesting in writing to the association. An 297 owner may consent in writing to the disclosure of other contact 298 information described in this sub-subparagraph. The association 299 is not liable for the inadvertent disclosure of information that 300 is protected under this sub-subparagraph if the information is 301 included in an official record of the association and is 302 voluntarily provided by an owner and not requested by the 303 association. 304 f. Electronic security measures that are used by the 305 association to safeguard data, including passwords. 306 g. The software and operating system used by the 307 association which allow the manipulation of data, even if the 308 owner owns a copy of the same software used by the association. 309 The data is part of the official records of the association. 310 (e)1. The association or its authorized agent is not 311 required to provide a prospective purchaser or lienholder with 312 information about the condominium or the association other than 313 information or documents required by this chapter to be made 314 available or disclosed. The association or its authorized agent 315 may charge a reasonable fee to the prospective purchaser, 316 lienholder, or the current unit owner for providing good faith 317 responses to requests for information by or on behalf of a 318 prospective purchaser or lienholder, other than that required by 319 law, if the fee does not exceed $150 plus the reasonable cost of 320 photocopying and any attorneyattorney’sfees incurred by the 321 association in connection with the response. 322 2. An association and its authorized agent are not liable 323 for providing such information in good faith pursuant to a 324 written request if the person providing the information includes 325 a written statement in substantially the following form: “The 326 responses herein are made in good faith and to the best of my 327 ability as to their accuracy.” 328 (g)1. By July 1, 2018, an association managing a 329 condominium with 150 or more units which does not containmanage330 timeshare units shall post digital copies of the documents 331 specified in subparagraph 2. on its website. 332 a. The association’s website must be: 333 (I) An independent website or web portal wholly owned and 334 operated by the association; or 335 (II) A website or web portal operated by a third-party 336 provider with whom the association owns, leases, rents, or 337 otherwise obtains the right to operate a web page, subpage, web 338 portal, or collection of subpages or web portals dedicated to 339 the association’s activities and on which required notices, 340 records, and documents may be posted by the association. 341 b. The association’s website must be accessible through the 342 Internet and must contain a subpage, web portal, or other 343 protected electronic location that is inaccessible to the 344 general public and accessible only to unit owners and employees 345 of the association. 346 c. Upon a unit owner’s written request, the association 347 must provide the unit owner with a username and password and 348 access to the protected sections of the association’s website 349 that contain any notices, records, or documents that must be 350 electronically provided. 351 2. A current copy of the following documents must be posted 352 in digital format on the association’s website: 353 a. The recorded declaration of condominium of each 354 condominium operated by the association and each amendment to 355 each declaration. 356 b. The recorded bylaws of the association and each 357 amendment to the bylaws. 358 c. The articles of incorporation of the association, or 359 other documents creating the association, and each amendment 360 thereto. The copy posted pursuant to this sub-subparagraph must 361 be a copy of the articles of incorporation filed with the 362 Department of State. 363 d. The rules of the association, if any. 364 e. A list of all executory contracts or documentsAny365management agreement, lease, or other contractto which the 366 association is a party or under which the association or the 367 unit owners have an obligation or responsibility and, after 368 bidding for the related materials, equipment, or services has 369 closed, a list of bids received by the association within the 370 past year. Summaries of bidsfor materials, equipment, or 371 services which exceed $2,500must be maintained on the website372for 1 year. 373 f. The annual budget required by s. 718.112(2)(f) and any 374 proposed budget to be considered at the annual meeting. 375 g. The financial report required by subsection (13)and any376proposed financial report to be considered at a meeting. 377 h. The certification of each director required by s. 378 718.112(2)(d)4.b. 379 i. All contracts or transactions between the association 380 and any director, officer, corporation, firm, or association 381 that is not an affiliated condominium association or any other 382 entity in which an association director is also a director or 383 officer and financially interested. 384 j. Any contract or document regarding a conflict of 385 interest or possible conflict of interest as provided in ss. 386 468.436(2)(b)6. and 718.3027(3)ss. 468.436(2) and 718.3026(3). 387 k. The notice of any unit owner meeting and the agenda for 388 the meeting, as required by s. 718.112(2)(d)3., no later than 14 389 days before the meeting. The notice must be posted in plain view 390 on the front page of the website, or on a separate subpage of 391 the website labeled “Notices” which is conspicuously visible and 392 linked from the front page. The association must also post on 393 its website any document to be considered and voted on by the 394 owners during the meeting or any document listed on the agenda 395 at least 7 days before the meeting at which the document or the 396 information within the document will be considered. 397 l. Notice of any board meeting, the agenda, and any other 398 document required for the meeting as required by s. 399 718.112(2)(c), which must be posted no later than the date 400 required for notice pursuant to s. 718.112(2)(c). 401 3. The association shall ensure that the information and 402 records described in paragraph (c), which are not allowed 403permittedto be accessible to unit owners, are not posted on the 404 association’s website. If protected information or information 405 restricted from being accessible to unit owners is included in 406 documents that are required to be posted on the association’s 407 website, the association shall ensure the information is 408 redacted before posting the documents online. Notwithstanding 409 the foregoing, the association or its agent is not liable for 410 disclosing information that is protected or restricted pursuant 411 to this paragraph unless such disclosure was made with a knowing 412 or intentional disregard of the protected or restricted nature 413 of such information. 414 4. The failure of the association to post information 415 required under subparagraph 2. is not in and of itself 416 sufficient to invalidate any action or decision of the 417 association’s board or its committees. 418 (13) FINANCIAL REPORTING.—Within 90 days after the end of 419 the fiscal year, or annually on a date provided in the bylaws, 420 the association shall prepare and complete, or contract for the 421 preparation and completion of, a financial report for the 422 preceding fiscal year. Within 21 days after the final financial 423 report is completed by the association or received from the 424 third party, but not later than 120 days after the end of the 425 fiscal year or other date as provided in the bylaws, the 426 association shall mail to each unit owner at the address last 427 furnished to the association by the unit owner, or hand deliver 428 to each unit owner, a copy of the most recent financial report 429 or a notice that a copy of the most recent financial report will 430 be mailed or hand delivered to the unit owner, without charge, 431 within 5 business days after receipt of a written request from 432 the unit owner. The division shall adopt rules setting forth 433 uniform accounting principles and standards to be used by all 434 associations and addressing the financial reporting requirements 435 for multicondominium associations. The rules must include, but 436 not be limited to, standards for presenting a summary of 437 association reserves, including a good faith estimate disclosing 438 the annual amount of reserve funds that would be necessary for 439 the association to fully fund reserves for each reserve item 440 based on the straight-line accounting method. This disclosure is 441 not applicable to reserves funded via the pooling method. In 442 adopting such rules, the division shall consider the number of 443 members and annual revenues of an association. Financial reports 444 shall be prepared as follows: 445 (e) A unit owner may provide written notice to the division 446 of the association’s failure to mail or hand deliver him or her 447 a copy of the most recent financial report within 5 business 448 days after he or she submitted a written request to the 449 association for a copy of such report. If the division 450 determines that the association failed to mail or hand deliver a 451 copy of the most recent financial report to the unit owner, the 452 division shall provide written notice to the association that 453 the association must mail or hand deliver a copy of the most 454 recent financial report to the unit owner and the division 455 within 5 business days after it receives such notice from the 456 division. An association that fails to comply with the 457 division’s request may not waive the financial reporting 458 requirement provided in paragraph (d) for the fiscal year in 459 which the unit owner’s request was made and the following fiscal 460 year. A financial report received by the division pursuant to 461 this paragraph shall be maintained, and the division shall 462 provide a copy of such report to an association member upon his 463 or her request. 464 Section 2. Paragraphs (a), (c), (d), and (j) of subsection 465 (2) of section 718.112, Florida Statutes, are amended to read: 466 718.112 Bylaws.— 467 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the 468 following and, if they do not do so, shall be deemed to include 469 the following: 470 (a) Administration.— 471 1. The form of administration of the association shall be 472 described indicating the title of the officers and board of 473 administration and specifying the powers, duties, manner of 474 selection and removal, and compensation, if any, of officers and 475 boards. In the absence of such a provision, the board of 476 administration shall be composed of five members, unless the 477except in the case of acondominiumwhichhas five or fewer 478 units. The board shall consist of not fewer than three members 479 in condominiums with five or fewer units that are not-for-profit 480 corporations, in which case in a not-for-profit corporation the481board shall consist of not fewer than three members. In the 482 absence of provisions to the contrary in the bylaws, the board 483 of administration shall have a president, a secretary, and a 484 treasurer, who shall perform the duties of such officers 485 customarily performed by officers of corporations. Unless 486 prohibited in the bylaws, the board of administration may 487 appoint other officers and grant them the duties it deems 488 appropriate. Unless otherwise provided in the bylaws, the 489 officers shall serve without compensation and at the pleasure of 490 the board of administration. Unless otherwise provided in the 491 bylaws, the members of the board shall serve without 492 compensation. 493 2. When a unit owner of a residential condominium files a 494 written inquiry by certified mail with the board of 495 administration, the board shall respond in writing to the unit 496 owner within 30 days after receipt of the inquiry. The board’s 497 response shall either give a substantive response to the 498 inquirer, notify the inquirer that a legal opinion has been 499 requested, or notify the inquirer that advice has been requested 500 from the division. If the board requests advice from the 501 division, the board shall, within 10 days after its receipt of 502 the advice, provide in writing a substantive response to the 503 inquirer. If a legal opinion is requested, the board shall, 504 within 60 days after the receipt of the inquiry, provide in 505 writing a substantive response to the inquiry. The failure to 506 provide a substantive response to the inquiry as provided herein 507 precludes the board from recovering attorney fees and costs in 508 any subsequent litigation, administrative proceeding, or 509 arbitration arising out of the inquiry. The association may 510 through its board of administration adopt reasonable rules and 511 regulations regarding the frequency and manner of responding to 512 unit owner inquiries, one of which may be that the association 513 is only obligated to respond to one written inquiry per unit in 514 any given 30-day period. In such a case, any additional inquiry 515 or inquiries must be responded to in the subsequent 30-day 516 period, or periods, as applicable. 517 (c) Board of administration meetings.—Meetings of the board 518 of administration at which a quorum of the members is present 519 are open to all unit owners. Members of the board of 520 administration may use e-mail as a means of communication but 521 may not cast a vote on an association matter via e-mail. A unit 522 owner may tape record or videotape the meetings. The right to 523 attend such meetings includes the right to speak at such 524 meetings with reference to all designated agenda items. The 525 division shall adopt reasonable rules governing the tape 526 recording and videotaping of the meeting. The association may 527 adopt written reasonable rules governing the frequency, 528 duration, and manner of unit owner statements. 529 1. Adequate notice of all board meetings, which must 530 specifically identify all agenda items, must be posted 531 conspicuously on the condominium property at least 48 continuous 532 hours before the meeting except in an emergency. If 20 percent 533 of the voting interests petition the board to address an item of 534 business, the board, within 60 days after receipt of the 535 petition, shall place the item on the agenda at its next regular 536 board meeting or at a special meeting called for that purpose. 537 An item not included on the notice may be taken up on an 538 emergency basis by a vote of at least a majority plus one of the 539 board members. Such emergency action must be noticed and 540 ratified at the next regular board meeting.However,Written 541 notice of a meeting at which a nonemergency special assessment 542 or an amendment to rules regarding unit use will be considered 543 must be mailed, delivered, or electronically transmitted to the 544 unit owners and posted conspicuously on the condominium property 545 at least 14 days before the meeting. Evidence of compliance with 546 this 14-day notice requirement must be made by an affidavit 547 executed by the person providing the notice and filed with the 548 official records of the association. Notice of any meeting in 549 which regular or special assessments against unit owners are to 550 be considered must specifically state that assessments will be 551 considered and provide the estimated cost and description of the 552 purposes for such assessments. Upon notice to the unit owners, 553 the board shall, by duly adopted rule, designate a specific 554 location on the condominiumor associationproperty where all 555 notices of board meetings must be posted. If there is no 556 condominium propertyor association propertywhere notices can 557 be posted, notices shall be mailed, delivered, or electronically 558 transmitted to each unit owner at least 14 days before the 559 meeting. In lieu of or in addition to the physical posting of 560 the notice on the condominium property, the association may, by 561 reasonable rule, adopt a procedure for conspicuously posting and 562 repeatedly broadcasting the notice and the agenda on a closed 563 circuit cable television system serving the condominium 564 association. However, if broadcast notice is used in lieu of a 565 notice physically posted on condominium property, the notice and 566 agenda must be broadcast at least four times every broadcast 567 hour of each day that a posted notice is otherwise required 568 under this section. If broadcast notice is provided, the notice 569 and agenda must be broadcast in a manner and for a sufficient 570 continuous length of time so as to allow an average reader to 571 observe the notice and read and comprehend the entire content of 572 the notice and the agenda. In addition to any of the authorized 573 means of providing notice of a meeting of the board, the 574 association may, by rule, adopt a procedure for conspicuously 575 posting the meeting notice and the agenda on the condominium 576 association’s website for at least the minimum period of time 577 for which a notice of a meeting is also required to be 578 physically posted on the condominium property. Any rule adopted, 579 in addition to other matters, must include a requirement that 580 the association send an electronic notice in the same manner as 581 a notice for a meeting of the members, which must include a 582 hyperlink to the website where the notice is posted, to unit 583 owners whose e-mail addresses are included in the association’s 584 official recordsNotice of any meeting in which regular or585special assessments against unit owners are to be considered586must specifically state that assessments will be considered and587provide the nature, estimated cost, and description of the588purposes for such assessments. 589 2. Meetings of a committee to take final action on behalf 590 of the board or make recommendations to the board regarding the 591 association budget are subject to this paragraph. Meetings of a 592 committee that does not take final action on behalf of the board 593 or make recommendations to the board regarding the association 594 budget are subject to this section, unless those meetings are 595 exempted from this section by the bylaws of the association. 596 3. Notwithstanding any other law, the requirement that 597 board meetings and committee meetings be open to the unit owners 598 does not apply to: 599 a. Meetings between the board or a committee and the 600 association’s attorney, with respect to proposed or pending 601 litigation, if the meeting is held for the purpose of seeking or 602 rendering legal advice; or 603 b. Board meetings held for the purpose of discussing 604 personnel matters. 605 (d) Unit owner meetings.— 606 1. An annual meeting of the unit owners mustshallbe held 607 at the location provided in the association bylaws and, if the 608 bylaws are silent as to the location, the meeting mustshallbe 609 held within 45 miles of the condominium property. However, such 610 distance requirement does not apply to an association governing 611 a timeshare condominium. 612 2. Unless the bylaws provide otherwise, a vacancy on the 613 board caused by the expiration of a director’s term mustshall614 be filled by electing a new board member, and the election must 615 be by secret ballot. An election is not required if the number 616 of vacancies equals or exceeds the number of candidates. For 617 purposes of this paragraph, the term “candidate” means an 618 eligible person who has timely submitted the written notice, as 619 described in sub-subparagraph 4.a., of his or her intention to 620 become a candidate. Except in a timeshare or nonresidential 621 condominium, or if the staggered term of a board member does not 622 expire until a later annual meeting, or if all members’ terms 623 would otherwise expire but there are no candidates, the terms of 624 all board members expire at the annual meeting, and such members 625 may stand for reelection unless prohibited by the bylaws. Board 626 members may serve2-yearterms longer than 1 year if allowed 627permittedby the bylaws or articles of incorporation. A board 628 member may not serve more than 8 consecutive yearsfour629consecutive 2-year terms, unless approved by an affirmative vote 630 of two-thirds of all votes cast in the electionthe total voting631interests of the associationor unless there are not enough 632 eligible candidates to fill the vacancies on the board at the 633 time of the vacancy. If the number of board members whose terms 634 expire at the annual meeting equals or exceeds the number of 635 candidates, the candidates become members of the board effective 636 upon the adjournment of the annual meeting. Unless the bylaws 637 provide otherwise, any remaining vacancies shall be filled by 638 the affirmative vote of the majority of the directors making up 639 the newly constituted board even if the directors constitute 640 less than a quorum or there is only one director. In a 641 residential condominium association of more than 10 units or in 642 a residential condominium association that does not include 643 timeshare units or timeshare interests, coowners of a unit may 644 not serve as members of the board of directors at the same time 645 unless they own more than one unit or unless there are not 646 enough eligible candidates to fill the vacancies on the board at 647 the time of the vacancy. A unit owner in a residential 648 condominium desiring to be a candidate for board membership must 649 comply with sub-subparagraph 4.a. and must be eligible to be a 650 candidate to serve on the board of directors at the time of the 651 deadline for submitting a notice of intent to run in order to 652 have his or her name listed as a proper candidate on the ballot 653 or to serve on the board. A person who has been suspended or 654 removed by the division under this chapter, or who is delinquent 655 in the payment of any monetary obligation due to the 656 association, is not eligible to be a candidate for board 657 membership and may not be listed on the ballot. A person who has 658 been convicted of any felony in this state or in a United States 659 District or Territorial Court, or who has been convicted of any 660 offense in another jurisdiction which would be considered a 661 felony if committed in this state, is not eligible for board 662 membership unless such felon’s civil rights have been restored 663 for at least 5 years as of the date such person seeks election 664 to the board. The validity of an action by the board is not 665 affected if it is later determined that a board member is 666 ineligible for board membership due to having been convicted of 667 a felony. This subparagraph does not limit the term of a member 668 of the board of a nonresidential or timeshare condominium. 669 3. The bylaws must provide the method of calling meetings 670 of unit owners, including annual meetings. Written notice must 671 include an agenda, must be mailed, hand delivered, or 672 electronically transmitted to each unit owner at least 14 days 673 before the annual meeting, and must be posted in a conspicuous 674 place on the condominium property at least 14 continuous days 675 before the annual meeting. Upon notice to the unit owners, the 676 board shall, by duly adopted rule, designate a specific location 677 on the condominium propertyor association propertywhere all 678 notices of unit owner meetings mustshallbe posted. This 679 requirement does not apply if there is no condominium property 680or association propertyfor posting notices. In lieu of, or in 681 addition to, the physical posting of meeting notices, the 682 association may, by reasonable rule, adopt a procedure for 683 conspicuously posting and repeatedly broadcasting the notice and 684 the agenda on a closed-circuit cable television system serving 685 the condominium association. However, if broadcast notice is 686 used in lieu of a notice posted physically on the condominium 687 property, the notice and agenda must be broadcast at least four 688 times every broadcast hour of each day that a posted notice is 689 otherwise required under this section. If broadcast notice is 690 provided, the notice and agenda must be broadcast in a manner 691 and for a sufficient continuous length of time so as to allow an 692 average reader to observe the notice and read and comprehend the 693 entire content of the notice and the agenda. In addition to any 694 of the authorized means of providing notice of a meeting of the 695 board, the association may, by rule, adopt a procedure for 696 conspicuously posting the meeting notice and the agenda on the 697 condominium association’s website for at least the minimum 698 period of time for which a notice of a meeting is also required 699 to be physically posted on the condominium property. Any rule 700 adopted, in addition to other matters, must include a 701 requirement that the association send an electronic notice in 702 the same manner as a notice for a meeting of the members, which 703 must include a hyperlink to the website where the notice is 704 posted, to unit owners whose e-mail addresses are included in 705 the association’s official records. Unless a unit owner waives 706 in writing the right to receive notice of the annual meeting, 707 such notice must be hand delivered, mailed, or electronically 708 transmitted to each unit owner. Notice for meetings and notice 709 for all other purposes must be mailed to each unit owner at the 710 address last furnished to the association by the unit owner, or 711 hand delivered to each unit owner. However, if a unit is owned 712 by more than one person, the association must provide notice to 713 the address that the developer identifies for that purpose and 714 thereafter as one or more of the owners of the unit advise the 715 association in writing, or if no address is given or the owners 716 of the unit do not agree, to the address provided on the deed of 717 record. An officer of the association, or the manager or other 718 person providing notice of the association meeting, must provide 719 an affidavit or United States Postal Service certificate of 720 mailing, to be included in the official records of the 721 association affirming that the notice was mailed or hand 722 delivered in accordance with this provision. 723 4. The members of the board of a residential condominium 724 shall be elected by written ballot or voting machine. Proxies 725 may not be used in electing the board in general elections or 726 elections to fill vacancies caused by recall, resignation, or 727 otherwise, unless otherwise provided in this chapter. This 728 subparagraph does not apply to an association governing a 729 timeshare condominium. 730 a. At least 60 days before a scheduled election, the 731 association shall mail, deliver, or electronically transmit, by 732 separate association mailing or included in another association 733 mailing, delivery, or transmission, including regularly 734 published newsletters, to each unit owner entitled to a vote, a 735 first notice of the date of the election. A unit owner or other 736 eligible person desiring to be a candidate for the board must 737 give written notice of his or her intent to be a candidate to 738 the association at least 40 days before a scheduled election. 739 Together with the written notice and agenda as set forth in 740 subparagraph 3., the association shall mail, deliver, or 741 electronically transmit a second notice of the election to all 742 unit owners entitled to vote, together with a ballot that lists 743 all candidates. Upon request of a candidate, an information 744 sheet, no larger than 8 1/2 inches by 11 inches, which must be 745 furnished by the candidate at least 35 days before the election, 746 must be included with the mailing, delivery, or transmission of 747 the ballot, with the costs of mailing, delivery, or electronic 748 transmission and copying to be borne by the association. The 749 association is not liable for the contents of the information 750 sheets prepared by the candidates. In order to reduce costs, the 751 association may print or duplicate the information sheets on 752 both sides of the paper. The division shall by rule establish 753 voting procedures consistent with this sub-subparagraph, 754 including rules establishing procedures for giving notice by 755 electronic transmission and rules providing for the secrecy of 756 ballots. Elections shall be decided by a plurality of ballots 757 cast. There is no quorum requirement; however, at least 20 758 percent of the eligible voters must cast a ballot in order to 759 have a valid election. A unit owner may not allowpermitany 760 other person to vote his or her ballot, and any ballots 761 improperly cast are invalid. A unit owner who violates this 762 provision may be fined by the association in accordance with s. 763 718.303. A unit owner who needs assistance in casting the ballot 764 for the reasons stated in s. 101.051 may obtain such assistance. 765 The regular election must occur on the date of the annual 766 meeting. Notwithstanding this sub-subparagraph, an election is 767 not required unless more candidates file notices of intent to 768 run or are nominated than board vacancies exist. 769 b. Within 90 days after being elected or appointed to the 770 board of an association of a residential condominium, each newly 771 elected or appointed director shall certify in writing to the 772 secretary of the association that he or she has read the 773 association’s declaration of condominium, articles of 774 incorporation, bylaws, and current written policies; that he or 775 she will work to uphold such documents and policies to the best 776 of his or her ability; and that he or she will faithfully 777 discharge his or her fiduciary responsibility to the 778 association’s members. In lieu of this written certification, 779 within 90 days after being elected or appointed to the board, 780 the newly elected or appointed director may submit a certificate 781 of having satisfactorily completed the educational curriculum 782 administered by a division-approved condominium education 783 provider within 1 year before or 90 days after the date of 784 election or appointment. The written certification or 785 educational certificate is valid and does not have to be 786 resubmitted as long as the director serves on the board without 787 interruption. A director of an association of a residential 788 condominium who fails to timely file the written certification 789 or educational certificate is suspended from service on the 790 board until he or she complies with this sub-subparagraph. The 791 board may temporarily fill the vacancy during the period of 792 suspension. The secretary shall cause the association to retain 793 a director’s written certification or educational certificate 794 for inspection by the members for 5 years after a director’s 795 election or the duration of the director’s uninterrupted tenure, 796 whichever is longer. Failure to have such written certification 797 or educational certificate on file does not affect the validity 798 of any board action. 799 c. Any challenge to the election process must be commenced 800 within 60 days after the election results are announced. 801 5. Any approval by unit owners called for by this chapter 802 or the applicable declaration or bylaws, including, but not 803 limited to, the approval requirement in s. 718.111(8), must be 804 made at a duly noticed meeting of unit owners and is subject to 805 all requirements of this chapter or the applicable condominium 806 documents relating to unit owner decisionmaking, except that 807 unit owners may take action by written agreement, without 808 meetings, on matters for which action by written agreement 809 without meetings is expressly allowed by the applicable bylaws 810 or declaration or any law that provides for such action. 811 6. Unit owners may waive notice of specific meetings if 812 allowed by the applicable bylaws or declaration or any law. 813 Notice of meetings of the board of administration, unit owner 814 meetings, except unit owner meetings called to recall board 815 members under paragraph (j), and committee meetings may be given 816 by electronic transmission to unit owners who consent to receive 817 notice by electronic transmission. A unit owner who consents to 818 receiving notices by electronic transmission is solely 819 responsible for removing or bypassing filters that block receipt 820 of mass e-mails sent to members on behalf of the association in 821 the course of giving electronic notices. 822 7. Unit owners have the right to participate in meetings of 823 unit owners with reference to all designated agenda items. 824 However, the association may adopt reasonable rules governing 825 the frequency, duration, and manner of unit owner participation. 826 8. A unit owner may tape record or videotape a meeting of 827 the unit owners subject to reasonable rules adopted by the 828 division. 829 9. Unless otherwise provided in the bylaws, any vacancy 830 occurring on the board before the expiration of a term may be 831 filled by the affirmative vote of the majority of the remaining 832 directors, even if the remaining directors constitute less than 833 a quorum, or by the sole remaining director. In the alternative, 834 a board may hold an election to fill the vacancy, in which case 835 the election procedures must conform to sub-subparagraph 4.a. 836 unless the association governs 10 units or fewer and has opted 837 out of the statutory election process, in which case the bylaws 838 of the association control. Unless otherwise provided in the 839 bylaws, a board member appointed or elected under this section 840 shall fill the vacancy for the unexpired term of the seat being 841 filled. Filling vacancies created by recall is governed by 842 paragraph (j) and rules adopted by the division. 843 10. This chapter does not limit the use of general or 844 limited proxies, require the use of general or limited proxies, 845 or require the use of a written ballot or voting machine for any 846 agenda item or election at any meeting of a timeshare 847 condominium association or nonresidential condominium 848 association. 849 850 Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an 851 association of 10 or fewer units may, by affirmative vote of a 852 majority of the total voting interests, provide for different 853 voting and election procedures in its bylaws, which may be by a 854 proxy specifically delineating the different voting and election 855 procedures. The different voting and election procedures may 856 provide for elections to be conducted by limited or general 857 proxy. 858 (j) Recall of board members.—Subject to s. 718.301, any 859 member of the board of administration may be recalled and 860 removed from office with or without cause by the vote or 861 agreement in writing by a majority of all the voting interests. 862 A special meeting of the unit owners to recall a member or 863 members of the board of administration may be called by 10 864 percent of the voting interests giving notice of the meeting as 865 required for a meeting of unit owners, and the notice shall 866 state the purpose of the meeting. Electronic transmission may 867 not be used as a method of giving notice of a meeting called in 868 whole or in part for this purpose. 869 1. If the recall is approved by a majority of all voting 870 interests by a vote at a meeting, the recall will be effective 871 as provided in this paragraph. The board shall duly notice and 872 hold a board meeting within 5 full business days after the 873 adjournment of the unit owner meeting to recall one or more 874 board members. Such member or members shall be recalled 875 effective immediately upon conclusion of the board meeting 876 provided that the recall is facially valid. A recalled member 877 mustand shallturn over to the board, within 10 full business 878 days after the vote, any and all records and property of the 879 association in their possession. 880 2. If the proposed recall is by an agreement in writing by 881 a majority of all voting interests, the agreement in writing or 882 a copy thereof shall be served on the association by certified 883 mail or by personal service in the manner authorized by chapter 884 48 and the Florida Rules of Civil Procedure. The board of 885 administration shall duly notice and hold a meeting of the board 886 within 5 full business days after receipt of the agreement in 887 writing. Such member or members shall be recalled effective 888 immediately upon the conclusion of the board meeting provided 889 that the recall is facially valid. A recalled memberandshall 890 turn over to the board, within 10 full business days, any and 891 all records and property of the association in their possession. 892 3. If the board fails to duly notice and hold a board 893 meeting within 5 full business days after service of an 894 agreement in writing or within 5 full business days after the 895 adjournment of the unit owner recall meeting, the recall shall 896 be deemed effective and the board members so recalled shall turn 897 over to the board within 10 full business days after the vote 898 any and all records and property of the association. 899 4. If the board fails to duly notice and hold the required 900 meetingor fails to file the required petition, the unit owner 901 representative may file a petition pursuant to s. 718.1255 902 challenging the board’s failure to act. The petition must be 903 filed within 60 days after the expiration of the applicable 5 904 full-business-day period. The review of a petition under this 905 subparagraph is limited to the sufficiency of service on the 906 board and the facial validity of the written agreement or 907 ballots filed. 908 5. If a vacancy occurs on the board as a result of a recall 909 or removal and less than a majority of the board members are 910 removed, the vacancy may be filled by the affirmative vote of a 911 majority of the remaining directors, notwithstanding any 912 provision to the contrary contained in this subsection. If 913 vacancies occur on the board as a result of a recall and a 914 majority or more of the board members are removed, the vacancies 915 shall be filled in accordance with procedural rules to be 916 adopted by the division, which rules need not be consistent with 917 this subsection. The rules must provide procedures governing the 918 conduct of the recall election as well as the operation of the 919 association during the period after a recall but before the 920 recall election. 921 6. A board member who has been recalled may file a petition 922 pursuant to s. 718.1255 challenging the validity of the recall. 923 The petition must be filed within 60 days after the recall. The 924 association and the unit owner representative shall be named as 925 the respondents. The petition may challenge the facial validity 926 of the written agreement or ballots filed or the substantial 927 compliance with the procedural requirements for the recall. If 928 the arbitrator determines the recall was invalid, the 929 petitioning board member shall immediately be reinstated and the 930 recall is null and void. A board member who is successful in 931 challenging a recall is entitled to recover reasonable attorney 932 fees and costs from the respondents. The arbitrator may award 933 reasonable attorney fees and costs to the respondents if they 934 prevail and the arbitrator makes a finding that the petitioner’s 935 claim is frivolous. 936 7. The division may not accept for filing a recall 937 petition, whether filed pursuant to subparagraph 1., 938 subparagraph 2., subparagraph 4., or subparagraph 6. when there 939 are 60 or fewer days until the scheduled reelection of the board 940 member sought to be recalled or when 60 or fewer days have 941 elapsed since the election of the board member sought to be 942 recalled. 943 Section 3. Subsection (2) of section 718.113, Florida 944 Statutes, is amended to read: 945 718.113 Maintenance; limitation upon improvement; display 946 of flag; hurricane shutters and protection; display of religious 947 decorations.— 948 (2)(a) Except as otherwise provided in this section, there 949 shall be no material alteration or substantial additions to the 950 common elements or to real property which is association 951 property, except in a manner provided in the declaration as 952 originally recorded or as amended under the procedures provided 953 therein. If the declaration as originally recorded or as amended 954 under the procedures provided therein does not specify the 955 procedure for approval of material alterations or substantial 956 additions, 75 percent of the total voting interests of the 957 association must approve the alterations or additions before the 958 material alterations or substantial additions are commenced. 959 This paragraph is intended to clarify existing law and applies 960 to associations existing on July 1, 2018October 1, 2008. 961 (b) There mayshallnot be any material alteration of, or 962 substantial addition to, the common elements of any condominium 963 operated by a multicondominium association unless approved in 964 the manner provided in the declaration of the affected 965 condominium or condominiums as originally recorded or as amended 966 under the procedures provided therein. If a declaration as 967 originally recorded or as amended under the procedures provided 968 therein does not specify a procedure for approving such an 969 alteration or addition, the approval of 75 percent of the total 970 voting interests of each affected condominium is required before 971 the material alterations or substantial additions are commenced. 972 This subsection does not prohibit a provision in any 973 declaration, articles of incorporation, or bylaws as originally 974 recorded or as amended under the procedures provided therein 975 requiring the approval of unit owners in any condominium 976 operated by the same association or requiring board approval 977 before a material alteration or substantial addition to the 978 common elements is permitted. This paragraph is intended to 979 clarify existing law and applies to associations existing on 980 July 1, 2018the effective date of this act. 981 (c) There mayshallnot be any material alteration or 982 substantial addition made to association real property operated 983 by a multicondominium association, except as provided in the 984 declaration, articles of incorporation, or bylaws as originally 985 recorded or as amended under the procedures provided therein. If 986 the declaration, articles of incorporation, or bylaws as 987 originally recorded or as amended under the procedures provided 988 therein do not specify the procedure for approving an alteration 989 or addition to association real property, the approval of 75 990 percent of the total voting interests of the association is 991 required before the material alterations or substantial 992 additions are commenced. This paragraph is intended to clarify 993 existing law and applies to associations existing on July 1, 994 2018the effective date of this act. 995 Section 4. Subsection (3) of section 718.3026, Florida 996 Statutes, is amended to read: 997 718.3026 Contracts for products and services; in writing; 998 bids; exceptions.—Associations with 10 or fewer units may opt 999 out of the provisions of this section if two-thirds of the unit 1000 owners vote to do so, which opt-out may be accomplished by a 1001 proxy specifically setting forth the exception from this 1002 section. 1003(3)As to any contract or other transaction between an1004association and one or more of its directors or any other1005corporation, firm, association, or entity in which one or more1006of its directors are directors or officers or are financially1007interested:1008(a)The association shall comply with the requirements of1009s. 617.0832.1010(b)The disclosures required by s. 617.0832 shall be1011entered into the written minutes of the meeting.1012(c)Approval of the contract or other transaction shall1013require an affirmative vote of two-thirds of the directors1014present.1015(d)At the next regular or special meeting of the members,1016the existence of the contract or other transaction shall be1017disclosed to the members. Upon motion of any member, the1018contract or transaction shall be brought up for a vote and may1019be canceled by a majority vote of the members present. Should1020the members cancel the contract, the association shall only be1021liable for the reasonable value of goods and services provided1022up to the time of cancellation and shall not be liable for any1023termination fee, liquidated damages, or other form of penalty1024for such cancellation.1025 Section 5. Section 718.3027, Florida Statutes, is amended 1026 to read: 1027 718.3027 Conflicts of interest.— 1028 (1) Directors and officers of a board of an association 1029 that is not a timeshare condominium association, and the 1030 relatives of such directors and officers, must disclose to the 1031 board any activity that may reasonably be construed to be a 1032 conflict of interest. A rebuttable presumption of a conflict of 1033 interest exists if any of the following occurs without prior 1034 notice, as required in subsection (5)(4): 1035 (a) A director or an officer, or a relative of a director 1036 or an officer, enters into a contract for goods or services with 1037 the association. 1038 (b) A director or an officer, or a relative of a director 1039 or an officer, holds an interest in a corporation, limited 1040 liability corporation, partnership, limited liability 1041 partnership, or other business entity that conducts business 1042 with the association or proposes to enter into a contract or 1043 other transaction with the association. 1044 (2) If a director or an officer, or a relative of a 1045 director or an officer, proposes to engage in an activity that 1046 is a conflict of interest, as described in subsection (1), the 1047 proposed activity must be listed on, and all contracts and 1048 transactional documents related to the proposed activity must be 1049 attached to, the meeting agenda. The association shall comply 1050 with the requirements of s. 617.0832, and the disclosures 1051 required by s. 617.0832 must be entered into the written minutes 1052 of the meeting. Approval of the contract or other transaction 1053 requires an affirmative vote of two-thirds of all other 1054 directors present. At the next regular or special meeting of the 1055 members, the existence of the contract or other transaction must 1056 be disclosed to the members. Upon motion of any member, the 1057 contract or transaction must be brought up for a vote and may be 1058 canceled by a majority vote of the members present. If the 1059 contract is canceled, the association is liable only for the 1060 reasonable value of the goods and services provided up to the 1061 time of cancellation and is not liable for any termination fee, 1062 liquidated damages, or other form of penalty for such 1063 cancellation. 1064 (3) If the board votes against the proposed activity, the 1065 director or officer, or the relative of the director or officer, 1066 must notify the board in writing of his or her intention not to 1067 pursue the proposed activity or to withdraw from office. If the 1068 board finds that an officer or a director has violated this 1069 subsection, the officer or director shall be deemed removed from 1070 office. The vacancy shall be filled according to general law. 1071 (4)(3)A director or an officer, or a relative of a 1072 director or an officer, who is a party to, or has an interest 1073 in, an activity that is a possible conflict of interest, as 1074 described in subsection (1), may attend the meeting at which the 1075 activity is considered by the board and is authorized to make a 1076 presentation to the board regarding the activity. After the 1077 presentation, the director or officer, or the relative of the 1078 director or officer, must leave the meeting during the 1079 discussion of, and the vote on, the activity. A director or an 1080 officer who is a party to, or has an interest in, the activity 1081 must recuse himself or herself from the vote. 1082 (5)(4)A contract entered into between a director or an 1083 officer, or a relative of a director or an officer, and the 1084 association, which is not a timeshare condominium association, 1085 that has not been properly disclosed as a conflict of interest 1086 or potential conflict of interest as required by s. 1087 718.111(12)(g) is voidable and terminates upon the filing of a 1088 written notice terminating the contract with the board of 1089 directors which contains the consent of at least 20 percent of 1090 the voting interests of the association. 1091 (6)(5)As used in this section, the term “relative” means a 1092 relative within the third degree of consanguinity by blood or 1093 marriage. 1094 Section 6. Paragraph (b) of subsection (3) of section 1095 718.303, Florida Statutes, is amended to read: 1096 718.303 Obligations of owners and occupants; remedies.— 1097 (3) The association may levy reasonable fines for the 1098 failure of the owner of the unit or its occupant, licensee, or 1099 invitee to comply with any provision of the declaration, the 1100 association bylaws, or reasonable rules of the association. A 1101 fine may not become a lien against a unit. A fine may be levied 1102 by the board on the basis of each day of a continuing violation, 1103 with a single notice and opportunity for hearing before a 1104 committee as provided in paragraph (b). However, the fine may 1105 not exceed $100 per violation, or $1,000 in the aggregate. 1106 (b) A fine or suspension levied by the board of 1107 administration may not be imposed unless the board first 1108 provides at least 14 days’ written noticeand an opportunity for1109a hearingto the unit owner and, if applicable, to anyits1110 occupant, licensee, or invitee of the unit owner sought to be 1111 fined or suspended and provides an opportunity for a hearing.1112The hearing must be heldbefore a committee of at least three 1113 members appointed by the board who are not officers, directors, 1114 or employees of the association, or the spouse, parent, child, 1115 brother, or sister of an officer, director, or employeeother1116unit owners who are neither board members nor persons residing1117in a board member’s household. The role of the committee is 1118 limited to determining whether to confirm or reject the fine or 1119 suspension levied by the board. If the committee does not 1120 approveagree,the proposed fine or suspension by majority vote, 1121 the fine or suspension may not be imposed. If the proposed fine 1122 or suspension is approved by the committee, the fine payment is 1123 due 5 days after the date of the committee meeting at which the 1124 fine is approved. The association must provide written notice of 1125 such fine or suspension by mail or hand delivery to the unit 1126 owner and, if applicable, to any tenant, licensee, or invitee of 1127 the unit owner. 1128 Section 7. Section 718.707, Florida Statutes, is amended to 1129 read: 1130 718.707 Time limitation for classification as bulk assignee 1131 or bulk buyer.—A person acquiring condominium parcels may not be 1132 classified as a bulk assignee or bulk buyer unless the 1133 condominium parcels were acquired on or after July 1, 2010, but1134before July 1, 2018. The date of such acquisition shall be 1135 determined by the date of recording a deed or other instrument 1136 of conveyance for such parcels in the public records of the 1137 county in which the condominium is located, or by the date of 1138 issuing a certificate of title in a foreclosure proceeding with 1139 respect to such condominium parcels. 1140 Section 8. Paragraphs (a) and (b) of subsection (2) of 1141 section 719.104, Florida Statutes, are amended to read: 1142 719.104 Cooperatives; access to units; records; financial 1143 reports; assessments; purchase of leases.— 1144 (2) OFFICIAL RECORDS.— 1145 (a) From the inception of the association, the association 1146 shall maintain a copy of each of the following, where 1147 applicable, which shall constitute the official records of the 1148 association: 1149 1. The plans, permits, warranties, and other items provided 1150 by the developer pursuant to s. 719.301(4). 1151 2. A photocopy of the cooperative documents. 1152 3. A copy of the current rules of the association. 1153 4. A book or books containing the minutes of all meetings 1154 of the association, of the board of directors, and of the unit 1155 owners, which minutes shall be retained for a period of not less1156than 7 years. 1157 5. A current roster of all unit owners and their mailing 1158 addresses, unit identifications, voting certifications, and, if 1159 known, telephone numbers. The association shall also maintain 1160 the electronic mailing addresses and the numbers designated by 1161 unit owners for receiving notice sent by electronic transmission 1162 of those unit owners consenting to receive notice by electronic 1163 transmission. The electronic mailing addresses and numbers 1164 provided by unit owners to receive notice by electronic 1165 transmission shall be removed from association records when 1166 consent to receive notice by electronic transmission is revoked. 1167 However, the association is not liable for an erroneous 1168 disclosure of the electronic mail address or the number for 1169 receiving electronic transmission of notices. 1170 6. All current insurance policies of the association. 1171 7. A current copy of any management agreement, lease, or 1172 other contract to which the association is a party or under 1173 which the association or the unit owners have an obligation or 1174 responsibility. 1175 8. Bills of sale or transfer for all property owned by the 1176 association. 1177 9. Accounting records for the association and separate 1178 accounting records for each unit it operates, according to good 1179 accounting practices.All accounting records shall be maintained1180for a period of not less than 7 years.The accounting records 1181 mustshallinclude, but not be limited to: 1182 a. Accurate, itemized, and detailed records of all receipts 1183 and expenditures. 1184 b. A current account and a monthly, bimonthly, or quarterly 1185 statement of the account for each unit designating the name of 1186 the unit owner, the due date and amount of each assessment, the 1187 amount paid upon the account, and the balance due. 1188 c. All audits, reviews, accounting statements, and 1189 financial reports of the association. 1190 d. All contracts for work to be performed. Bids for work to 1191 be performed shall also be considered official records and shall 1192 be maintained for a period of 1 year. 1193 10. Ballots, sign-in sheets, voting proxies, and all other 1194 papers and electronic records relating to voting by unit owners, 1195 which shall be maintained for a period of 1 year after the date 1196 of the election, vote, or meeting to which the document relates. 1197 11. All rental records where the association is acting as 1198 agent for the rental of units. 1199 12. A copy of the current question and answer sheet as 1200 described in s. 719.504. 1201 13. All other written records of the association not 1202 specifically included in the foregoing which are related to the 1203 operation of the association. 1204 (b) The official records of the association must be 1205 maintained within the state for at least 7 years. The records of 1206 the association mustshallbe made available to a unit owner 1207 within 45 miles of the cooperative property or within the county 1208 in which the cooperative property is located within 105working 1209 days after receipt of written request by the board or its 1210 designee. This paragraph may be complied with by having a copy 1211 of the official records of the association available for 1212 inspection or copying on the cooperative property or the 1213 association may offer the option of making the records available 1214 to a unit owner electronically via the Internet or by allowing 1215 the records to be viewed in an electronic format on a computer 1216 screen and printed upon request. The association is not 1217 responsible for the use or misuse of the information provided to 1218 an association member or his or her authorized representative 1219 pursuant to the compliance requirements of this chapter unless 1220 the association has an affirmative duty not to disclose such 1221 information pursuant to this chapter. 1222 Section 9. Paragraphs (a), (c), and (d) of subsection (1) 1223 of section 719.106, Florida Statutes, are amended, and paragraph 1224 (m) is added to that subsection, to read: 1225 719.106 Bylaws; cooperative ownership.— 1226 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative 1227 documents shall provide for the following, and if they do not, 1228 they shall be deemed to include the following: 1229 (a) Administration.— 1230 1. The form of administration of the association shall be 1231 described, indicating the titles of the officers and board of 1232 administration and specifying the powers, duties, manner of 1233 selection and removal, and compensation, if any, of officers and 1234 board members. In the absence of such a provision, the board of 1235 administration shall be composed of five members, unless the 1236 cooperative hasexcept in the case of cooperatives havingfive 1237 or fewer units., in which case in not-for-profit corporations,1238 The board shall consist of not fewer than three members in 1239 cooperatives with five or fewer units that are not-for-profit 1240 corporations. In a residential cooperative association of more 1241 than 10 units, co-owners of a unit may not serve as members of 1242 the board of directors at the same time unless the co-owners own 1243 more than one unit or unless there are not enough eligible 1244 candidates to fill the vacancies on the board at the time of the 1245 vacancy. In the absence of provisions to the contrary, the board 1246 of administration mustshallhave a president, a secretary, and 1247 a treasurer, who shall perform the duties of those offices 1248 customarily performed by officers of corporations. Unless 1249 prohibited in the bylaws, the board of administration may 1250 appoint other officers and grant them those duties it deems 1251 appropriate. Unless otherwise provided in the bylaws, the 1252 officers shall serve without compensation and at the pleasure of 1253 the board. Unless otherwise provided in the bylaws, the members 1254 of the board shall serve without compensation. 1255 2. A person who has been suspended or removed by the 1256 division under this chapter, or who is delinquent in the payment 1257 of any monetary obligation due to the association, is not 1258 eligible to be a candidate for board membership and may not be 1259 listed on the ballot. A director or officer charged by 1260 information or indictment with a felony theft or embezzlement 1261 offense involving the association’s funds or property is 1262 suspended from office. The board shall fill the vacancy 1263 according to general law until the end of the period of the 1264 suspension or the end of the director’s term of office, 1265 whichever occurs first. However, if the charges are resolved 1266 without a finding of guilt or without acceptance of a plea of 1267 guilty or nolo contendere, the director or officer shall be 1268 reinstated for any remainder of his or her term of office. A 1269 member who has such criminal charges pending may not be 1270 appointed or elected to a position as a director or officer. A 1271 person who has been convicted of any felony in this state or in 1272 any United States District Court, or who has been convicted of 1273 any offense in another jurisdiction which would be considered a 1274 felony if committed in this state, is not eligible for board 1275 membership unless such felon’s civil rights have been restored 1276 for at least 5 years as of the date such person seeks election 1277 to the board. The validity of an action by the board is not 1278 affected if it is later determined that a board member is 1279 ineligible for board membership due to having been convicted of 1280 a felony. 1281 3. When a unit owner files a written inquiry by certified 1282 mail with the board of administration, the board shall respond 1283 in writing to the unit owner within 30 days of receipt of the 1284 inquiry. The board’s response shall either give a substantive 1285 response to the inquirer, notify the inquirer that a legal 1286 opinion has been requested, or notify the inquirer that advice 1287 has been requested from the division. If the board requests 1288 advice from the division, the board shall, within 10 days of its 1289 receipt of the advice, provide in writing a substantive response 1290 to the inquirer. If a legal opinion is requested, the board 1291 shall, within 60 days after the receipt of the inquiry, provide 1292 in writing a substantive response to the inquirer. The failure 1293 to provide a substantive response to the inquirer as provided 1294 herein precludes the board from recovering attorney’s fees and 1295 costs in any subsequent litigation, administrative proceeding, 1296 or arbitration arising out of the inquiry. The association may, 1297 through its board of administration, adopt reasonable rules and 1298 regulations regarding the frequency and manner of responding to 1299 the unit owners’ inquiries, one of which may be that the 1300 association is obligated to respond to only one written inquiry 1301 per unit in any given 30-day period. In such case, any 1302 additional inquiry or inquiries must be responded to in the 1303 subsequent 30-day period, or periods, as applicable. 1304 (c) Board of administration meetings.—Members of the board 1305 of administration may use e-mail as a means of communication but 1306 may not cast a vote on an association matter via e-mail. 1307 Meetings of the board of administration at which a quorum of the 1308 members is present shall be open to all unit owners. Any unit 1309 owner may tape record or videotape meetings of the board of 1310 administration. The right to attend such meetings includes the 1311 right to speak at such meetings with reference to all designated 1312 agenda items. The division shall adopt reasonable rules 1313 governing the tape recording and videotaping of the meeting. The 1314 association may adopt reasonable written rules governing the 1315 frequency, duration, and manner of unit owner statements. 1316 Adequate notice of all meetings shall be posted in a conspicuous 1317 place upon the cooperative property at least 48 continuous hours 1318 preceding the meeting, except in an emergency. Any item not 1319 included on the notice may be taken up on an emergency basis by 1320 at least a majority plus one of the members of the board. Such 1321 emergency action shall be noticed and ratified at the next 1322 regular meeting of the board. Notice of any meeting in which 1323 regular or special assessments against unit owners are to be 1324 considered must specifically state that assessments will be 1325 considered and provide the estimated cost for and description of 1326 the purpose for such assessments.However,Written notice of any 1327 meeting at which nonemergency special assessments, or at which 1328 amendment to rules regarding unit use, will be considered shall 1329 be mailed, delivered, or electronically transmitted to the unit 1330 owners and posted conspicuously on the cooperative property not 1331 less than 14 days before the meeting. Evidence of compliance 1332 with this 14-day notice shall be made by an affidavit executed 1333 by the person providing the notice and filed among the official 1334 records of the association. Upon notice to the unit owners, the 1335 board shall by duly adopted rule designate a specific location 1336 on the cooperative property upon which all notices of board 1337 meetings shall be posted. In lieu of or in addition to the 1338 physical posting of notice of any meeting of the board of 1339 administration on the cooperative property, the association may, 1340 by reasonable rule, adopt a procedure for conspicuously posting 1341 and repeatedly broadcasting the notice and the agenda on a 1342 closed-circuit cable television system serving the cooperative 1343 association. However, if broadcast notice is used in lieu of a 1344 notice posted physically on the cooperative property, the notice 1345 and agenda must be broadcast at least four times every broadcast 1346 hour of each day that a posted notice is otherwise required 1347 under this section. When broadcast notice is provided, the 1348 notice and agenda must be broadcast in a manner and for a 1349 sufficient continuous length of time so as to allow an average 1350 reader to observe the notice and read and comprehend the entire 1351 content of the notice and the agenda. In addition to any of the 1352 authorized means of providing notice of a meeting of the board, 1353 the association may, by rule, adopt a procedure for 1354 conspicuously posting the meeting notice and the agenda on the 1355 cooperative association’s website for at least the minimum 1356 period of time for which a notice of a meeting is also required 1357 to be physically posted on the cooperative property. Any rule 1358 adopted must, in addition to other matters, include a 1359 requirement that the association send an electronic notice in 1360 the same manner as a notice for a meeting of the members, which 1361 must include a hyperlink to the website where the notice is 1362 posted, to unit owners whose e-mail addresses are included in 1363 the association’s official recordsNotice of any meeting in1364which regular assessments against unit owners are to be1365considered for any reason shall specifically contain a statement1366that assessments will be considered and the nature of any such1367assessments. Meetings of a committee to take final action on 1368 behalf of the board or to make recommendations to the board 1369 regarding the association budget are subject to the provisions 1370 of this paragraph. Meetings of a committee that does not take 1371 final action on behalf of the board or make recommendations to 1372 the board regarding the association budget are subject to the 1373 provisions of this section, unless those meetings are exempted 1374 from this section by the bylaws of the association. 1375 Notwithstanding any other law to the contrary, the requirement 1376 that board meetings and committee meetings be open to the unit 1377 owners does not apply to board or committee meetings held for 1378 the purpose of discussing personnel matters or meetings between 1379 the board or a committee and the association’s attorney, with 1380 respect to proposed or pending litigation, if the meeting is 1381 held for the purpose of seeking or rendering legal advice. 1382 (d) Shareholder meetings.—There shall be an annual meeting 1383 of the shareholders. All members of the board of administration 1384 shall be elected at the annual meeting unless the bylaws provide 1385 for staggered election terms or for their election at another 1386 meeting. Any unit owner desiring to be a candidate for board 1387 membership must comply with subparagraph 1. The bylaws must 1388 provide the method for calling meetings, including annual 1389 meetings. Written notice, which must incorporate an 1390 identification of agenda items, shall be given to each unit 1391 owner at least 14 days before the annual meeting and posted in a 1392 conspicuous place on the cooperative property at least 14 1393 continuous days preceding the annual meeting. Upon notice to the 1394 unit owners, the board must by duly adopted rule designate a 1395 specific location on the cooperative property upon which all 1396 notice of unit owner meetings are posted. In lieu of or in 1397 addition to the physical posting of the meeting notice, the 1398 association may, by reasonable rule, adopt a procedure for 1399 conspicuously posting and repeatedly broadcasting the notice and 1400 the agenda on a closed-circuit cable television system serving 1401 the cooperative association. However, if broadcast notice is 1402 used in lieu of a posted notice, the notice and agenda must be 1403 broadcast at least four times every broadcast hour of each day 1404 that a posted notice is otherwise required under this section. 1405 If broadcast notice is provided, the notice and agenda must be 1406 broadcast in a manner and for a sufficient continuous length of 1407 time to allow an average reader to observe the notice and read 1408 and comprehend the entire content of the notice and the agenda. 1409 In addition to any of the authorized means of providing notice 1410 of a meeting of the shareholders, the association may, by rule, 1411 adopt a procedure for conspicuously posting the meeting notice 1412 and the agenda on the cooperative association’s website for at 1413 least the minimum period of time for which a notice of a meeting 1414 is also required to be physically posted on the cooperative 1415 property. Any rule adopted must, in addition to other matters, 1416 include a requirement that the association send an electronic 1417 notice in the same manner as a notice for a meeting of the 1418 members, which must include a hyperlink to the website where the 1419 notice is posted, to unit owners whose e-mail addresses are 1420 included in the association’s official records. Unless a unit 1421 owner waives in writing the right to receive notice of the 1422 annual meeting, the notice of the annual meeting must be sent by 1423 mail, hand delivered, or electronically transmitted to each unit 1424 owner. An officer of the association must provide an affidavit 1425 or United States Postal Service certificate of mailing, to be 1426 included in the official records of the association, affirming 1427 that notices of the association meeting were mailed, hand 1428 delivered, or electronically transmitted, in accordance with 1429 this provision, to each unit owner at the address last furnished 1430 to the association. 1431 1. The board of administration shall be elected by written 1432 ballot or voting machine. A proxy may not be used in electing 1433 the board of administration in general elections or elections to 1434 fill vacancies caused by recall, resignation, or otherwise 1435 unless otherwise provided in this chapter. 1436 a. At least 60 days before a scheduled election, the 1437 association shall mail, deliver, or transmit, whether by 1438 separate association mailing, delivery, or electronic 1439 transmission or included in another association mailing, 1440 delivery, or electronic transmission, including regularly 1441 published newsletters, to each unit owner entitled to vote, a 1442 first notice of the date of the election. Any unit owner or 1443 other eligible person desiring to be a candidate for the board 1444 of administration must give written notice to the association at 1445 least 40 days before a scheduled election. Together with the 1446 written notice and agenda as set forth in this section, the 1447 association shall mail, deliver, or electronically transmit a 1448 second notice of election to all unit owners entitled to vote, 1449 together with a ballot that lists all candidates. Upon request 1450 of a candidate, the association shall include an information 1451 sheet, no larger than 8 1/2 inches by 11 inches, which must be 1452 furnished by the candidate at least 35 days before the election, 1453 to be included with the mailing, delivery, or electronic 1454 transmission of the ballot, with the costs of mailing, delivery, 1455 or transmission and copying to be borne by the association. The 1456 association is not liable for the contents of the information 1457 sheets provided by the candidates. In order to reduce costs, the 1458 association may print or duplicate the information sheets on 1459 both sides of the paper. The division shall by rule establish 1460 voting procedures consistent with this subparagraph, including 1461 rules establishing procedures for giving notice by electronic 1462 transmission and rules providing for the secrecy of ballots. 1463 Elections shall be decided by a plurality of those ballots cast. 1464 There is no quorum requirement. However, at least 20 percent of 1465 the eligible voters must cast a ballot in order to have a valid 1466 election. A unit owner may not permit any other person to vote 1467 his or her ballot, and any such ballots improperly cast are 1468 invalid. A unit owner who needs assistance in casting the ballot 1469 for the reasons stated in s. 101.051 may obtain assistance in 1470 casting the ballot. Any unit owner violating this provision may 1471 be fined by the association in accordance with s. 719.303. The 1472 regular election must occur on the date of the annual meeting. 1473 This subparagraph does not apply to timeshare cooperatives. 1474 Notwithstanding this subparagraph, an election and balloting are 1475 not required unless more candidates file a notice of intent to 1476 run or are nominated than vacancies exist on the board. Any 1477 challenge to the election process must be commenced within 60 1478 days after the election results are announced. 1479 b. Within 90 days after being elected or appointed to the 1480 board, each new director shall certify in writing to the 1481 secretary of the association that he or she has read the 1482 association’s bylaws, articles of incorporation, proprietary 1483 lease, and current written policies; that he or she will work to 1484 uphold such documents and policies to the best of his or her 1485 ability; and that he or she will faithfully discharge his or her 1486 fiduciary responsibility to the association’s members. Within 90 1487 days after being elected or appointed to the board, in lieu of 1488 this written certification, the newly elected or appointed 1489 director may submit a certificate of having satisfactorily 1490 completed the educational curriculum administered by an 1491 education provider as approved by the division pursuant to the 1492 requirements established in chapter 718 within 1 year before or 1493 90 days after the date of election or appointment. The 1494 educational certificate is valid and does not have to be 1495 resubmitted as long as the director serves on the board without 1496 interruption. A director who fails to timely file the written 1497 certification or educational certificate is suspended from 1498 service on the board until he or she complies with this sub 1499 subparagraph. The board may temporarily fill the vacancy during 1500 the period of suspension. The secretary of the association shall 1501 cause the association to retain a director’s written 1502 certification or educational certificate for inspection by the 1503 members for 5 years after a director’s election or the duration 1504 of the director’s uninterrupted tenure, whichever is longer. 1505 Failure to have such written certification or educational 1506 certificate on file does not affect the validity of any board 1507 action. 1508 2. Any approval by unit owners called for by this chapter, 1509 or the applicable cooperative documents, must be made at a duly 1510 noticed meeting of unit owners and is subject to this chapter or 1511 the applicable cooperative documents relating to unit owner 1512 decisionmaking, except that unit owners may take action by 1513 written agreement, without meetings, on matters for which action 1514 by written agreement without meetings is expressly allowed by 1515 the applicable cooperative documents or law which provides for 1516 the unit owner action. 1517 3. Unit owners may waive notice of specific meetings if 1518 allowed by the applicable cooperative documents or law. Notice 1519 of meetings of the board of administration, shareholder 1520 meetings, except shareholder meetings called to recall board 1521 members under paragraph (f), and committee meetings may be given 1522 by electronic transmission to unit owners who consent to receive 1523 notice by electronic transmission. A unit owner who consents to 1524 receiving notices by electronic transmission is solely 1525 responsible for removing or bypassing filters that may block 1526 receipt of mass e-mails sent to members on behalf of the 1527 association in the course of giving electronic notices. 1528 4. Unit owners have the right to participate in meetings of 1529 unit owners with reference to all designated agenda items. 1530 However, the association may adopt reasonable rules governing 1531 the frequency, duration, and manner of unit owner participation. 1532 5. Any unit owner may tape record or videotape meetings of 1533 the unit owners subject to reasonable rules adopted by the 1534 division. 1535 6. Unless otherwise provided in the bylaws, a vacancy 1536 occurring on the board before the expiration of a term may be 1537 filled by the affirmative vote of the majority of the remaining 1538 directors, even if the remaining directors constitute less than 1539 a quorum, or by the sole remaining director. In the alternative, 1540 a board may hold an election to fill the vacancy, in which case 1541 the election procedures must conform to the requirements of 1542 subparagraph 1. unless the association has opted out of the 1543 statutory election process, in which case the bylaws of the 1544 association control. Unless otherwise provided in the bylaws, a 1545 board member appointed or elected under this subparagraph shall 1546 fill the vacancy for the unexpired term of the seat being 1547 filled. Filling vacancies created by recall is governed by 1548 paragraph (f) and rules adopted by the division. 1549 1550 Notwithstanding subparagraphs (b)2. and (d)1., an association 1551 may, by the affirmative vote of a majority of the total voting 1552 interests, provide for a different voting and election procedure 1553 in its bylaws, which vote may be by a proxy specifically 1554 delineating the different voting and election procedures. The 1555 different voting and election procedures may provide for 1556 elections to be conducted by limited or general proxy. 1557 (m) Director or officer delinquencies.—A director or 1558 officer more than 90 days delinquent in the payment of any 1559 monetary obligation due the association is deemed to have 1560 abandoned the office, and such vacancy in the office must be 1561 filled according to law. 1562 Section 10. Paragraph (b) of subsection (1) of section 1563 719.107, Florida Statutes, is amended to read: 1564 719.107 Common expenses; assessment.— 1565 (1) 1566 (b) If so provided in the bylaws, the cost of 1567 communications services as defined in chapter 202, information 1568 services, or Internet servicesa master antenna television1569system or duly franchised cable television serviceobtained 1570 pursuant to a bulk contract shall be deemed a common expense, 1571 and if not obtained pursuant to a bulk contract, such cost shall 1572 be considered common expense if it is designated as such in a 1573 written contract between the board of administration and the 1574 company providing the communications services as defined in 1575 chapter 202, information services, or Internet servicesmaster1576television antenna system or the cable television service. The 1577 contract shall be for a term of not less than 2 years. 1578 1. Any contract made by the board after April 2, 1992, for 1579 a community antenna system or duly franchised cable television 1580 service, communications services as defined in chapter 202, 1581 information services, or Internet services may be canceled by a 1582 majority of the voting interests present at the next regular or 1583 special meeting of the association. Any member may make a motion 1584 to cancel the contract, but if no motion is made or if such 1585 motion fails to obtain the required majority at the next regular 1586 or special meeting, whichever is sooner, following the making of 1587 the contract, then such contract shall be deemed ratified for 1588 the term therein expressed. 1589 2. Any such contract shall provide, and shall be deemed to 1590 provide if not expressly set forth, that any hearing impaired or 1591 legally blind unit owner who does not occupy the unit with a 1592 nonhearing impaired or sighted person may discontinue the 1593 service without incurring disconnect fees, penalties, or 1594 subsequent service charges, and as to such units, the owners may 1595shallnot be required to pay any common expenses charge related 1596 to such service. If less than all members of an association 1597 share the expenses of cable television, the expense shall be 1598 shared equally by all participating unit owners. The association 1599 may use the provisions of s. 719.108 to enforce payment of the 1600 shares of such costs by the unit owners receiving cable 1601 television. 1602 Section 11. Paragraph (b) of subsection (3) of section 1603 719.303, Florida Statutes, is amended to read: 1604 719.303 Obligations of owners.— 1605 (3) The association may levy reasonable fines for failure 1606 of the unit owner or the unit’s occupant, licensee, or invitee 1607 to comply with any provision of the cooperative documents or 1608 reasonable rules of the association. A fine may not become a 1609 lien against a unit. A fine may be levied by the board on the 1610 basis of each day of a continuing violation, with a single 1611 notice and opportunity for hearing before a committee as 1612 provided in paragraph (b). However, the fine may not exceed $100 1613 per violation, or $1,000 in the aggregate. 1614 (b) A fine or suspension levied by the board of 1615 administration may not be imposed unless the board first 1616 provides at least 14 days’ written noticeand an opportunity for1617a hearingto the unit owner and, if applicable, to anyits1618 occupant, licensee, or invitee of the unit owner sought to be 1619 fined or suspended and provides an opportunity for a hearing.1620The hearing must be heldbefore a committee of at least three 1621 members appointed by the board who are not officers, directors, 1622 or employees of the association, or the spouse, parent, child, 1623 brother, or sister of an officer, director, or employeeother1624unit owners who are neither board members nor persons residing1625in a board member’s household. The role of the committee is 1626 limited to determining whether to confirm or reject the fine or 1627 suspension levied by the board. If the committee does not 1628 approveagree withthe proposed fine or suspension by majority 1629 vote, the fine or suspensionitmay not be imposed. If the 1630 proposed fine or suspension is approved by the committee, the 1631 fine payment is due 5 days after the date of the committee 1632 meeting at which the fine is approved. The association must 1633 provide written notice of such fine or suspension by mail or 1634 hand delivery to the unit owner and, if applicable, to any 1635 tenant, licensee, or invitee of the unit owner. 1636 Section 12. Paragraphs (a) and (c) of subsection (2) and 1637 paragraphs (b) through (h) of subsection (6) of section 720.303, 1638 Florida Statutes, are amended, and paragraphs (i) and (j) are 1639 added to subsection (6) of that section, to read: 1640 720.303 Association powers and duties; meetings of board; 1641 official records; budgets; financial reporting; association 1642 funds; recalls.— 1643 (2) BOARD MEETINGS.— 1644 (a) Members of the board of administration may use e-mail 1645 as a means of communication, but may not cast a vote on an 1646 association matter via e-mail. A meeting of the board of 1647 directors of an association occurs whenever a quorum of the 1648 board gathers to conduct association business. Meetings of the 1649 board must be open to all members, except for meetings between 1650 the board and its attorney with respect to proposed or pending 1651 litigation where the contents of the discussion would otherwise 1652 be governed by the attorney-client privilege. A meeting of the 1653 board must be held at a location that is accessible to a 1654 physically handicapped person if requested by a physically 1655 handicapped person who has a right to attend the meeting. The 1656 provisions of this subsection shall also apply to the meetings 1657 of any committee or other similar body when a final decision 1658 will be made regarding the expenditure of association funds and 1659 to meetings of any body vested with the power to approve or 1660 disapprove architectural decisions with respect to a specific 1661 parcel of residential property owned by a member of the 1662 community. 1663 (c) The bylaws shall provide the following for giving 1664 notice to parcel owners and members of all board meetings and, 1665 if they do not do so, shall be deemed to includeprovidethe 1666 following: 1667 1. Notices of all board meetings must be posted in a 1668 conspicuous place in the community at least 48 hours in advance 1669 of a meeting, except in an emergency. In the alternative, if 1670 notice is not posted in a conspicuous place in the community, 1671 notice of each board meeting must be mailed or delivered to each 1672 member at least 7 days before the meeting, except in an 1673 emergency. Notwithstanding this general notice requirement, for 1674 communities with more than 100 members, the association bylaws 1675 may provide for a reasonable alternative to posting or mailing 1676 of notice for each board meeting, including publication of 1677 notice, provision of a schedule of board meetings, or the 1678 conspicuous posting and repeated broadcasting of the notice on a 1679 closed-circuit cable television system serving the homeowners’ 1680 association. However, if broadcast notice is used in lieu of a 1681 notice posted physically in the community, the notice must be 1682 broadcast at least four times every broadcast hour of each day 1683 that a posted notice is otherwise required. When broadcast 1684 notice is provided, the notice and agenda must be broadcast in a 1685 manner and for a sufficient continuous length of time so as to 1686 allow an average reader to observe the notice and read and 1687 comprehend the entire content of the notice and the agenda. The 1688 association may provide notice by electronic transmission in a 1689 manner authorized by law for meetings of the board of directors, 1690 committee meetings requiring notice under this section, and 1691 annual and special meetings of the members to any member who has 1692 provided a facsimile number or e-mail address to the association 1693 to be used for such purposes; however, a member must consent in 1694 writing to receiving notice by electronic transmission. 1695 2. An assessment may not be levied at a board meeting 1696 unless the notice of the meeting includes a statement that 1697 assessments will be considered and the nature of the 1698 assessments. Written notice of any meeting at which special 1699 assessments will be considered or at which amendments to rules 1700 regarding parcel use will be considered must be mailed, 1701 delivered, or electronically transmitted to the members and 1702 parcel owners and posted conspicuously on the property or 1703 broadcast on closed-circuit cable television not less than 14 1704 days before the meeting. 1705 3. Directors may not vote by proxy or by secret ballot at 1706 board meetings, except that secret ballots may be used in the 1707 election of officers. This subsection also applies to the 1708 meetings of any committee or other similar body, when a final 1709 decision will be made regarding the expenditure of association 1710 funds, and to any body vested with the power to approve or 1711 disapprove architectural decisions with respect to a specific 1712 parcel of residential property owned by a member of the 1713 community. 1714 (6) BUDGETS; BUDGET MEETINGS.— 1715 (b) In addition to annual operating expenses, for all 1716 associations incorporated on or after July 1, 2018, and any 1717 association incorporated before that date that, by a majority 1718 vote of the members of the association who are present at a 1719 meeting, in person or by proxy, at which a quorum is present, 1720 affirmatively votes to be bound by the provisions of this 1721 subsection, the budget mustmayinclude reserve accounts for the 1722capital expenditures anddeferred maintenance of any item with a 1723 deferred maintenance expense exceeding $100,000 which is the 1724 obligation offorwhichthe association underis responsible. If1725reserve accounts are not established pursuant to paragraph (d),1726funding of such reserves is limited to the extent thatthe 1727 governing documents. However, subsequent to the transfer of 1728 control of the association to its members, other than pursuant 1729 to s. 720.307, and the developer no longer having authority to 1730 appoint members to the board of directors, the board of 1731 directors may elect to reserve money for any item that has a 1732 deferred maintenance expense exceeding $25,000. The board may 1733 elect to reserve money for any item that has a deferred 1734 maintenance expense of less than $25,000 if approved by a 1735 majority of the members present at a meeting, in person or by 1736 proxy, at which a quorum is present. The amount to be reserved 1737 must be calculated using a formula based upon the estimated 1738 deferred maintenance expense of each reserve item divided by the 1739 estimated remaining useful life of that item. However, and 1740 notwithstanding the amount disclosed as being the total required 1741 reserve amount, each parcel that is obligated to pay annual 1742 reserves to the association each year must be assessed for only 1743 the amount determined by dividing the total annual reserve 1744 amount disclosed in the budget by the total number of parcels 1745 that will ultimately be operated by the association. The 1746 assessments actually collected must be less than the full amount 1747 of required reserves as disclosed in the proposed annual budget 1748 until all parcels that will ultimately be operated by the 1749 association are obligated to pay assessments for reserves. The 1750 association may adjust the deferred maintenance reserve 1751 assessments annually to take into account any changes in 1752 estimates or the useful life of a reserve item, of the 1753 anticipated cost of the deferred maintenance, or any changes in 1754 the number of parcels that will ultimately be operated by the 1755 association. This paragraph does not apply to an adopted budget 1756 when the members of the association have determined, by a 1757 majority vote of the members present at a meeting, in person or 1758 by proxy, at which a quorum is present, not to provide reserves 1759 or reserves in an amount less than required by this subsection 1760limit increases in assessments, including reserves. If the1761budget of the association includes reserve accounts established1762pursuant to paragraph (d), such reserves shall be determined,1763maintained, and waived in the manner provided in this1764subsection. Once an association provides for reserve accounts1765pursuant to paragraph (d), the association shall thereafter1766determine, maintain, and waive reserves in compliance with this1767subsection. This paragraphsectiondoes not preclude an 1768 association from ceasing to add money to a reserve account 1769 established pursuant to this paragraph upon a majority vote of 1770 the members present at a meeting, in person or by proxy, at 1771 which a quorum is present. Upon such approval, reserves may not 1772 be included in the budget for that year. Only parcels with 1773 completed improvements as evidenced by certificates of occupancy 1774 for such improvements are obligated to pay assessments for 1775 reserves. A developer who subsidizes the association’s budget 1776 under s. 720.308(1) or establishes a guarantee under s. 1777 720.308(2), is not obligated to include reserve contributions in 1778 any such guarantee or subsidy paymentthe termination of a1779reserve account established pursuant to this paragraph upon1780approval of a majority of the total voting interests of the1781association. Upon such approval, the terminating reserve account1782shall be removed from the budget. 1783 (c)1.The developer may vote the voting interests allocated 1784 to its parcels with completed improvements, as evidenced by 1785 certificates of occupancy for such improvements, to waive the 1786 reserves or reduce the funding of reserves. If a meeting of the 1787 parcel owners has been called to waive or reduce the funding of 1788 reserves and a waiver or reduction is not achieved or a quorum 1789 is not present, the reserves required by paragraph (b) must be 1790 maintainedIf the budget of the association does not provide for1791reserve accounts pursuant to paragraph (d) and the association1792is responsible for the repair and maintenance of capital1793improvements that may result in a special assessment if reserves1794are not provided, each financial report for the preceding fiscal1795year required by subsection (7) must contain the following1796statement in conspicuous type:1797THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR RESERVE1798ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT1799MAY RESULT IN SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE1800FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6), FLORIDA1801STATUTES, UPON OBTAINING THE APPROVAL OF A MAJORITY OF THE TOTAL1802VOTING INTERESTS OF THE ASSOCIATION BY VOTE OF THE MEMBERS AT A1803MEETING OR BY WRITTEN CONSENT.18042.If the budget of the association does provide for1805funding accounts for deferred expenditures, including, but not1806limited to, funds for capital expenditures and deferred1807maintenance, but such accounts are not created or established1808pursuant to paragraph (d), each financial report for the1809preceding fiscal year required under subsection (7) must also1810contain the following statement in conspicuous type:1811THE BUDGET OF THE ASSOCIATION PROVIDES FOR LIMITED VOLUNTARY1812DEFERRED EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES1813AND DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED1814IN OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED1815TO PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6),1816FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT TO THE1817RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR1818ARE RESERVES CALCULATED IN ACCORDANCE WITH THAT STATUTE. 1819 (d) Reserve funds and any interest accruing thereon must 1820 remain in the reserve account or accounts and may be used only 1821 for deferred maintenanceAn association is deemed to have1822provided for reserve accounts if reserve accounts have been1823initially established by the developer or if the membership of1824the association affirmatively elects to provide for reserves. If1825reserve accounts are established by the developer, the budget1826must designate the components for which the reserve accounts may1827be used. If reserve accounts are not initially provided by the1828developer, the membership of the association may elect to do so1829upon the affirmative approval of a majority of the total voting1830interests of the association. Such approval may be obtained by1831vote of the members at a duly called meeting of the membership1832or by the written consent of a majority of the total voting1833interests of the association. The approval action of the1834membership must state that reserve accounts shall be provided1835for in the budget and must designate the components for which1836the reserve accounts are to be established. Upon approval by the1837membership, the board of directors shall include the required1838reserve accounts in the budget in the next fiscal year following1839the approval and each year thereafter. Once established as1840provided in this subsection, the reserve accounts must be funded1841or maintained or have their funding waived in the manner1842provided in paragraph (f). 1843 (e) The only voting interests that are eligible to vote on 1844 questions that involve waiving or reducing the funding of 1845 reserves are the voting interests of the parcels subject to 1846 assessment to fund the reserves in question. Any vote taken 1847 pursuant to this subsection to waive or reduce reserves is 1848 applicable only for 1 budget year. Proxy questions relating to 1849 waiving or reducing the funding of reserves must contain the 1850 following statement in capitalized, bold letters in a font size 1851 larger than any other used on the face of the proxy ballot: 1852 WAIVING OF RESERVES, IN WHOLE OR IN PART, MAY RESULT IN PARCEL 1853 OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED SPECIAL ASSESSMENTS 1854 REGARDING THOSE ITEMSThe amount to be reserved in any account1855established shall be computed by means of a formula that is1856based upon estimated remaining useful life and estimated1857replacement cost or deferred maintenance expense of each reserve1858item. The association may adjust replacement reserve assessments1859annually to take into account any changes in estimates of cost1860or useful life of a reserve item. 1861 (f) Except as provided in paragraph (g), funding formulas 1862 for reserves required by this section must be based on a pooled 1863 analysis method of two or more of the assets for which reserves 1864 are required to be accrued. The projected annual cash inflows 1865 may include estimated earnings from investment of principal. The 1866 reserve funding formula must result in constant funding each 1867 year. However, based on the method for calculating the 1868 assessment for reserves as described in paragraph (b), the 1869 assessments actually collected may be less than the full amount 1870 of required reserves disclosed in the proposed annual budget 1871 until all parcels that will ultimately be operated by the 1872 association are obligated to pay assessments for reservesAfter1873one or more reserve accounts are established, the membership of1874the association, upon a majority vote at a meeting at which a1875quorum is present, may provide for no reserves or less reserves1876than required by this section. If a meeting of the unit owners1877has been called to determine whether to waive or reduce the1878funding of reserves and such result is not achieved or a quorum1879is not present, the reserves as included in the budget go into1880effect. After the turnover, the developer may vote its voting1881interest to waive or reduce the funding of reserves. Any vote1882taken pursuant to this subsection to waive or reduce reserves is1883applicable only to one budget year. 1884 (g) As an alternative to the pooled analysis method 1885 described in paragraph (f), if approved by a majority vote of 1886 the members present at a meeting, in person or by proxy, at 1887 which a quorum is present, the funding formulas for the 1888 disclosure of reserves requiredauthorizedby this section may 1889mustbe based on a separate analysis of each of the required 1890 assets under the straight-line accounting methodor a pooled1891analysis of two or more of the required assets. 18921.If the association maintains separate reserve accounts 1893 for each of the required assets, under the straight-line 1894 accounting method the amount of the contribution to each reserve 1895 account is the sum of the following two calculations: 1896 1.a.The total amount necessary, if any, to bring a 1897 negative component balance to zero. 1898 2.b.The total estimated deferred maintenance expense or 1899 estimated replacement cost of the reserve component less the 1900 estimated balance of the reserve component as of the beginning 1901 of the period the budget will be in effect. The remainder, if 1902 greater than zero, shall be divided by the estimated remaining 1903 useful life of the component. 1904 1905 The formula may be adjusted each year for changes in estimates 1906 and deferred maintenance performed during the year and may 1907 include factors such as inflation and earnings on invested 1908 funds. An association may convert its funding formulas from a 1909 straight-line accounting method to a pooled analysis method, as 1910 described in paragraph (f), and back to a straight-line 1911 accounting method at any time if approved by a majority vote of 1912 the members present at a meeting, in person or by proxy, at 1913 which a quorum is present. 19142.If the association maintains a pooled account of two or1915more of the required reserve assets, the amount of the1916contribution to the pooled reserve account as disclosed on the1917proposed budget may not be less than that required to ensure1918that the balance on hand at the beginning of the period the1919budget will go into effect plus the projected annual cash1920inflows over the remaining estimated useful life of all of the1921assets that make up the reserve pool are equal to or greater1922than the projected annual cash outflows over the remaining1923estimated useful lives of all the assets that make up the1924reserve pool, based on the current reserve analysis. The1925projected annual cash inflows may include estimated earnings1926from investment of principal and accounts receivable minus the1927allowance for doubtful accounts. The reserve funding formula may1928not include any type of balloon payments.1929 (h)1. Meetings at which a proposed annual budget of an 1930 association will be considered by the board must be open to all 1931 parcel ownersReserve funds and any interest accruing thereon1932shall remain in the reserve account or accounts and shall be1933used only for authorized reserve expenditures unless their use1934for other purposes is approved in advance by a majority vote at1935a meeting at which a quorum is present. Prior to turnover of1936control of an association by a developer to parcel owners, the1937developer-controlled association shall not vote to use reserves1938for purposes other than those for which they were intended1939without the approval of a majority of all nondeveloper voting1940interests voting in person or by limited proxy at a duly called1941meeting of the association. 1942 2.a. If a board adopts an annual budget that requires 1943 assessments against parcel owners which exceed 115 percent of 1944 assessments for the preceding fiscal year and the board 1945 receives, within 21 days after adoption of the annual budget, a 1946 written request for a special meeting from at least 10 percent 1947 of all voting interests, the board must conduct a special 1948 meeting of the parcel owners to consider a substitute budget. 1949 The special meeting must be conducted within 60 days after 1950 adoption of the annual budget. At least 14 days before such 1951 special meeting, the board shall hand deliver to each parcel 1952 owner, or mail to each parcel owner at the address last 1953 furnished to the association, a notice of the meeting. An 1954 officer or manager of the association, or other person providing 1955 notice of such meeting, shall execute an affidavit evidencing 1956 compliance with this notice requirement and file the affidavit 1957 among the official records of the association. Parcel owners may 1958 consider and adopt a substitute budget at the special meeting. A 1959 substitute budget is adopted if approved by a majority of all 1960 voting interests unless the governing documents require adoption 1961 by a greater percentage of voting interests. If there is not a 1962 quorum at the special meeting or a substitute budget is not 1963 adopted, the annual budget previously adopted by the board takes 1964 effect as scheduled. 1965 b. Any determination on whether assessments exceed 115 1966 percent of assessments for the prior fiscal year shall exclude 1967 any provision for reasonable reserves for repair or deferred 1968 maintenance of items that are the obligation of the association 1969 under the governing documents, anticipated expenses of the 1970 association which the board does not expect to be incurred on a 1971 regular or annual basis, or assessments for improvements to the 1972 common areas or association property, or other items that are 1973 the obligation of the association under the governing documents. 1974 (i) Paragraphs (b)-(g) do not apply to mandatory reserve 1975 accounts for the deferred maintenance of the infrastructure 1976 which are required to be established and maintained by an 1977 association at the direction of a county or municipal 1978 government, water or drainage management district, community 1979 development district, or other political subdivision that has 1980 the authority to approve and control subdivision infrastructure 1981 that is being entrusted to the care of an association. 1982 (j) Reserve funds must be held in a separate bank account 1983 established for such funds. 1984 Section 13. Paragraph (b) of subsection (2) of section 1985 720.305, Florida Statutes, is amended to read: 1986 720.305 Obligations of members; remedies at law or in 1987 equity; levy of fines and suspension of use rights.— 1988 (2) The association may levy reasonable fines. A fine may 1989 not exceed $100 per violation against any member or any member’s 1990 tenant, guest, or invitee for the failure of the owner of the 1991 parcel or its occupant, licensee, or invitee to comply with any 1992 provision of the declaration, the association bylaws, or 1993 reasonable rules of the association unless otherwise provided in 1994 the governing documents. A fine may be levied by the board for 1995 each day of a continuing violation, with a single notice and 1996 opportunity for hearing, except that the fine may not exceed 1997 $1,000 in the aggregate unless otherwise provided in the 1998 governing documents. A fine of less than $1,000 may not become a 1999 lien against a parcel. In any action to recover a fine, the 2000 prevailing party is entitled to reasonable attorney fees and 2001 costs from the nonprevailing party as determined by the court. 2002 (b) A fine or suspension leviedmay not be imposedby the 2003 board of administration may not be imposed unless the board 2004 first provideswithoutat least 14 days’ notice to the parcel 2005 owner and, if applicable, to any occupant, licensee, or invitee 2006 of the parcel owner,personsought to be fined or suspended and 2007 provides an opportunity for a hearing before a committee of at 2008 least three members appointed by the board who are not officers, 2009 directors, or employees of the association, or the spouse, 2010 parent, child, brother, or sister of an officer, director, or 2011 employee. If the committee, by majority vote, does not approve a 2012 proposed fine or suspension, the proposed fine or suspensionit2013 may not be imposed. The role of the committee is limited to 2014 determining whether to confirm or reject the fine or suspension 2015 levied by the board. If the proposedboard of administration2016imposes afine or suspension levied by the board is approved by 2017 the committee, the fine payment is due 5 days after the date of 2018 the committee meeting at which the fine is approved. The 2019 association shallmustprovide written notice of such fine or 2020 suspension by mail or hand delivery to the parcel owner and, if 2021 applicable, to any tenant, licensee, or invitee of the parcel 2022 owner. 2023 Section 14. Paragraph (a) of subsection (9) of section 2024 720.306, Florida Statutes, is amended to read: 2025 720.306 Meetings of members; voting and election 2026 procedures; amendments.— 2027 (9) ELECTIONS AND BOARD VACANCIES.— 2028 (a) Elections of directors must be conducted in accordance 2029 with the procedures set forth in the governing documents of the 2030 association. Except as provided in paragraph (b), all members of 2031 the association are eligible to serve on the board of directors, 2032 and a member may nominate himself or herself as a candidate for 2033 the board at a meeting where the election is to be held; 2034 provided, however, that if the election process allows 2035 candidates to be nominated in advance of the meeting, the 2036 association is not required to allow nominations at the meeting. 2037 An election is not required unless more candidates are nominated 2038 than vacancies exist. If an election is not required because 2039 there are either an equal number of candidates or fewer 2040 qualified candidates than vacancies, and if nominations from the 2041 floor are not required pursuant to this section or the bylaws, 2042 write-in nominations are not permitted, and such qualified 2043 candidates shall commence service on the board of directors, 2044 regardless of whether a quorum is attained at the annual 2045 meeting. Except as otherwise provided in the governing 2046 documents, boards of directors must be elected by a plurality of 2047 the votes cast by eligible voters. Any challenge to the election 2048 process must be commenced within 60 days after the election 2049 results are announced. 2050 Section 15. Paragraph (b) of subsection (3) of section 2051 720.3085, Florida Statutes, is amended to read: 2052 720.3085 Payment for assessments; lien claims.— 2053 (3) Assessments and installments on assessments that are 2054 not paid when due bear interest from the due date until paid at 2055 the rate provided in the declaration of covenants or the bylaws 2056 of the association, which rate may not exceed the rate allowed 2057 by law. If no rate is provided in the declaration or bylaws, 2058 interest accrues at the rate of 18 percent per year. 2059 (b) Any payment received by an association and accepted 2060 mustshallbe applied first to any interest accrued, then to any 2061 administrative late fee, then to any costs and reasonable 2062 attorney fees incurred in collection, and then to the delinquent 2063 assessment. This paragraph applies notwithstanding any 2064 restrictive endorsement, designation, or instruction placed on 2065 or accompanying a payment. A late fee is not subject tothe2066provisions ofchapter 687 and is not a fine. This paragraph is 2067 applicable notwithstanding s. 673.3111, any purported accord and 2068 satisfaction, or any restrictive endorsement, designation, or 2069 instruction placed on or accompanying a payment. The preceding 2070 sentence is intended to clarify existing law. 2071 Section 16. Paragraph (a) of subsection (1) of section 2072 720.401, Florida Statutes, is amended to read: 2073 720.401 Prospective purchasers subject to association 2074 membership requirement; disclosure required; covenants; 2075 assessments; contract cancellation.— 2076 (1)(a) A prospective parcel owner in a community must be 2077 presented a disclosure summary before executing the contract for 2078 sale. The disclosure summary must be in a form substantially 2079 similar to the following form: 2080 2081 DISCLOSURE SUMMARY 2082 FOR 2083 (NAME OF COMMUNITY) 2084 2085 1. AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL 2086 BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS’ ASSOCIATION. 2087 2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE 2088 COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS 2089 COMMUNITY. 2090 3. YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE 2091 ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF 2092 APPLICABLE, THE CURRENT AMOUNT IS $.... PER ..... YOU WILL ALSO 2093 BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE 2094 ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE. 2095 IF APPLICABLE, THE CURRENT AMOUNT IS $.... PER ..... 2096 4. YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE 2097 RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL 2098 ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE. 2099 5. YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS 2100 LEVIED BY A MANDATORY HOMEOWNERS’ ASSOCIATION COULD RESULT IN A 2101 LIEN ON YOUR PROPERTY. 2102 6. THE BUDGET OF THE ASSOCIATION DOES NOT NECESSARILY 2103 INCLUDE RESERVE FUNDS FOR DEFERRED MAINTENANCE SUFFICIENT TO 2104 COVER THE FULL COST OF DEFERRED MAINTENANCE OF COMMON AREAS. YOU 2105 SHOULD REVIEW THE BUDGET TO DETERMINE THE LEVEL OF RESERVE 2106 FUNDING, IF ANY. 2107 7.6.THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE 2108 FEES FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN 2109 OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS’ ASSOCIATION. IF 2110 APPLICABLE, THE CURRENT AMOUNT IS $.... PER ..... 2111 8.7.THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE 2112 RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION 2113 MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS. 2114 9.8.THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE 2115 ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU 2116 SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING 2117 DOCUMENTS BEFORE PURCHASING PROPERTY. 2118 10.9.THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD 2119 AND CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE 2120 THE PROPERTY IS LOCATED, OR ARE NOT RECORDED AND CAN BE OBTAINED 2121 FROM THE DEVELOPER. 2122 2123 DATE: PURCHASER: 2124 PURCHASER: 2125 2126 The disclosure must be supplied by the developer, or by the 2127 parcel owner if the sale is by an owner that is not the 2128 developer. Any contract or agreement for sale shall refer to and 2129 incorporate the disclosure summary and shall include, in 2130 prominent language, a statement that the potential buyer should 2131 not execute the contract or agreement until they have received 2132 and read the disclosure summary required by this section. 2133 Section 17. This act shall take effect July 1, 2018.