This amendment very clearly relieves condominium owners of certain onerous financial requirements that are meted out in the original legislation. This affects the owners on several levels. It initially obviates the need for a $15,000 - $25,000 “Engineered Life Safety System” to be composed by a certified Fire Safety Engineer. It removes the cost attached to sprinkler heads in each unit along with the adjunctive plumbing. While our buildings are already in compliance with a majority of the ancillary requirements component to the “Alternative Engineered Life Safety System”, such as a hard-wired fire alarm system, fire rated corridor doors, transfer grills, generators, etc., the expense of expanding these systems into the units has been curtailed.

While the financial demands on Condominium owners have been substantially diminished by this amendment, the remaining requirements, at first glance, seem extensive and expensive. However, upon closer scrutiny, this appears not be the case! The original legislation refers to the NFPA 1 Life Safety Code and the NFPA 101 Fire Safety Code as the defining guidelines for requirements governing the installation of sprinklers. The concept of sprinklers uniquely installed into the common areas of a building is foreign to the NFPA code! Since the statutory directive is to “follow the NFPA code” and there is no section of NFPA code that addresses the installation of sprinklers only in the common area, there is technically no need to opt out of that particular requirement. Bottom line - When you opt out of the overall retrofit and the “Engineered Alternative Life Safety System”, you are out...of everything! Don’t Forget...the only opinion that matters is THAT OF YOUR ASSOCIATION’S ATTORNEY!

There is another factor that might impact an Association’s decision about if and when they might consider “opting out”. Included in the amendment are new insurance ramafications that could substantially influence an Association’s premiums. For instance, the “Legislature requires a report to be prepared by the Office of Insurance Regulation of the Department of Financial Services for publication 18 months from the effective date of this act, evaluating premium increases or decreases for associations, unit owner premium increases or decreases, recommended changes to better define common areas, or any other information the Office of Insurance Regulation deems appropriate.” This report might recommend increases or decreases in premiums based upon an Association’s intentions relative to Fire Safety.

The amendment also delimits an Association’s responsibility to provide primary hazard insurance for any “policy which is issued or renewed on or after January 1, 2004” covering all “portions of the condominium property located outside the units.” The amendment continues, requiring primary coverage for “The condominium property located inside the units as such property was initially installed, or replacements thereof of like kind and quality and in accordance with the original plans and specifications or, if the original plans and specifications are not available, as they existed at the time the unit was initially conveyed; and all portions of the condominium property for which the declaration of condominium requires coverage by the association.” The amendment then offers a more detailed definition of those items “inside the units” that the Association does (or does not) have primary responsibility for. A responsible Board should therefore invite input not only from it’s Association’s attorney, but also from it’s insurance agent. Even if an Association is resolved to “opt-out”, timing the act prodigiously could save big bucks!

In any event, the amendment is an excellent first step. We are clearly in debt to Representative Mack, Senators Geller and Lynn, and the lobbying effort borne by Becker-Poliakoff for delivering such palpable relief in an extremely short period. They fought an uphill battle against substantial political obstacles and a well-organized lobbying effort by the amendment’s opponents. It is reasonable to assume that this opposition, primarily comprised of the Plumbers and Pipefitters Union, The National Fire Sprinkler Association, and the Fire Marshals Association, will be back next year to restore the resources seemingly lost to their clients.

  This will require an equally effective response by our representatives. This means relying on Becker-Poliakoff to successfully accomplish three simultaneous objectives. They need to fend off the expected attempts by the same vested interests to resecure that major payday at our expense. The firm has to enlist representation in the legislature to once again “carry the ball” for us and protect those political participants from the unfriendly environment created by the media. In addition to preventing opposition lobbyists from unfavorably redefining the code, they must shepherd the elimination of the “common area sprinkler” requirements through the legislative minefield. It follows that additional condos and coops need to be included to help support Becker-Poliakoff’s upcoming challenge. We also need to disseminate the truth surrounding this issue to defend against the hysteria that was used incessantly by the opposition to intimidate media-sensitive politicians. Condominiums and Cooperatives on the Galt Mile maintain containment, automatic recall, and alarm features sufficient to designate these structures as some of the safest in South Florida.

As explained by Representative Connie Mack, we feel that the decision about the degree of protection warranted by a condominium should be left to its owners. Those that stand to gain or lose from its effectiveness should also determine the type of protection. We are not children requiring the dubious oversight foisted upon us at “midnight” by politicians without our knowledge, input, or consent. Our future response needs to expand upon the intent of the amendment. If the people (and their families) that own and inhabit the “common areas” agree that additional protection is necessary, they will provide it, and in an appropriate manner. As such, the surviving requirement to sprinkler the common areas of our homes should be removed and the decision regarding its necessity left to us. Any misguided attempt at “protecting us from ourselves” will NOT be naively construed as a display of concern for our safety. It will be considered as submission AND/OR remuneration to the lobbying groups that stand to gain hundreds of millions of dollars and heretofore unmatched levels of power over a particular class of property owner. Every building on the Galt Mile has historically exceeded compliance with Fire and Safety Codes. In its three decades of existence, not one life has been lost to fire. Might we suggest that this is a result of conscientious condo owners making numerous correct decisions about the scope and quality of protection necessary for their families, their property, and their lives!

Senate Bill sb0592er

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  1                                 

  2         An act relating to corporate affairs; amending

  3         s. 617.01401, F.S.; defining the term

  4         "electronic transmission" for purposes of the

  5         Florida Not For Profit Corporation Act;

  6         amending s. 617.0141, F.S.; authorizing forms

  7         of electronic transmission of notice for

  8         domestic or foreign corporations; providing for

  9         a corporation member to revoke consent to

10         receiving notice by electronic transmission;

11         providing that an affidavit of notice by

12         electronic transmission is, in the absence of

13         fraud, prima facie evidence of the facts stated

14         in the notice; creating s. 617.1803, F.S.;

15         providing procedures for the domestication of

16         foreign not-for-profit corporations; amending

17         ss. 718.111 and 718.112, F.S.; revising

18         provisions relating to insurance required for

19         condominium property; providing legislative

20         intent; authorizing the association to provide

21         certain information to prospective purchasers

22         or lienholders; authorizing fees; providing for

23         a condominium association to transmit

24         electronic notices to unit owners; providing

25         that the association is not liable for

26         erroneously disclosing certain address

27         information; revising requirements for use of

28         proxies for voting; authorizing the association

29         to broadcast notice via a closed-circuit

30         television system; prohibiting notice by

31         electronic transmission for a recall of board


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 1         members; providing for association bylaws to

 2         authorize the electronic transmission of

 3         notices; exempting certain condominiums,

 4         associations, or unit owners from specified

 5         retrofitting requirements pertaining to fire

 6         safety systems; requiring a report; amending s.

 7         719.1055, F.S.; exempting certain cooperatives

 8         and unit owners from specified retrofitting

 9         requirements pertaining to fire safety;

10         amending s. 718.116, F.S.; authorizing the

11         association to charge a fee for preparation of

12         the certificate of assessments and other moneys

13         due; amending ss. 719.104 and 719.106, F.S.;

14         revising provisions with respect to official

15         records of a cooperative association;

16         authorizing the association to provide certain

17         information to prospective purchasers or

18         lienholders; authorizing fees; providing for a

19         cooperative association to transmit electronic

20         notices to unit owners; providing that the

21         association is not liable for erroneously

22         disclosing certain address information;

23         revising requirements for use of proxies for

24         voting; authorizing the association to

25         broadcast notice via a closed-circuit

26         television system; prohibiting notice by

27         electronic transmission for a recall of board

28         members; providing for association bylaws to

29         authorize the electronic transmission of

30         notices; amending s. 719.108, F.S.; authorizing

31         the association to charge a fee for preparation


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 1         of the certificate of assessments and other

 2         moneys due; amending s. 720.302, F.S.;

 3         clarifying that corporations not for profit

 4         that operate residential homeowners'

 5         associations are subject to the Florida Not For

 6         Profit Corporation Act; amending s. 720.303,

 7         F.S.; authorizing a homeowners' association to

 8         broadcast notice via a closed-circuit

 9         television system; providing that the

10         association is not liable for erroneously

11         disclosing certain address information;

12         amending s. 702.09, F.S.; redefining the term

13         "mortgage" to include liens created pursuant to

14         a homeowners' association as defined in s.

15         712.01, F.S.; amending s. 718.303, F.S.;

16         providing that certain actions with respect to

17         the obligation of condominium owners shall not

18         be deemed actions for specific performance;

19         amending s. 719.303, F.S.; providing that

20         certain actions with respect to the obligation

21         of cooperative owners shall not be deemed

22         actions for specific performance; providing an

23         effective date.

24  

25  Be It Enacted by the Legislature of the State of Florida:

26  

27         Section 1.  Section 617.01401, Florida Statutes, is

28  amended to read:

29         617.01401  Definitions.--As used in this act, unless

30  the context otherwise requires, the term:

31  


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 1         (1)  "Articles of incorporation" includes original,

 2  amended, and restated articles of incorporation, articles of

 3  consolidation, and articles of merger, and all amendments

 4  thereto, including documents designated by the laws of this

 5  state as charters, and, in the case of a foreign corporation,

 6  documents equivalent to articles of incorporation in the

 7  jurisdiction of incorporation.

 8         (2)  "Board of directors" means the group of persons

 9  vested with the management of the affairs of the corporation

10  irrespective of the name by which such group is designated,

11  including, but not limited to, managers or trustees.

12         (3)  "Bylaws" means the code or codes of rules adopted

13  for the regulation or management of the affairs of the

14  corporation irrespective of the name or names by which such

15  rules are designated.

16         (4)  "Corporation" or "domestic corporation" means a

17  corporation not for profit, subject to the provisions of this

18  act, except a foreign corporation.

19         (5)  "Corporation not for profit" means a corporation

20  no part of the income or profit of which is distributable to

21  its members, directors, or officers.

22         (6)  "Electronic transmission" means any form of

23  communication, not directly involving the physical

24  transmission or transfer of paper, which creates a record that

25  may be retained, retrieved, and reviewed by a recipient

26  thereof and which may be directly reproduced in a

27  comprehensible and legible paper form by such recipient

28  through an automated process. Examples of electronic

29  transmission include, but are not limited to, telegrams,

30  facsimile transmissions of images, and text that is sent via

31  electronic mail between computers.


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 1         (7)(6)  "Foreign corporation" means a corporation not

 2  for profit organized under laws other than the laws of this

 3  state.

 4         (8)(7)  "Insolvent" means the inability of a

 5  corporation to pay its debts as they become due in the usual

 6  course of its affairs.

 7         (9)(8)  "Mail" means the United States mail, facsimile

 8  transmissions, and private mail carriers handling nationwide

 9  mail services.

10         (10)(9)  "Member" means one having membership rights in

11  a corporation in accordance with the provisions of its

12  articles of incorporation or bylaws or the provisions of this

13  act.

14         (11)(10)  "Person" includes individual and entity.

15         Section 2.  Section 617.0141, Florida Statutes, is

16  amended to read:

17         617.0141  Notice.--

18         (1)  Notice under this act must be in writing, unless

19  oral notice is:

20         (a)  Expressly authorized by the articles of

21  incorporation or the bylaws; and

22         (b)  Reasonable under the circumstances.

23         (2)  Notice may be communicated in person; by telephone

24  (where oral notice is permitted), telegraph, teletype, or

25  other form of electronic transmission communication; or by

26  mail.

27         (3)  Written notice by a domestic or foreign

28  corporation authorized to conduct its affairs in this state to

29  its member, if in a comprehensible form, is effective:

30  

31  


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 1         (a)  When mailed, if mailed postpaid and correctly

 2  addressed to the member's address shown in the corporation's

 3  current record of members;.

 4         (b)  When actually transmitted by facsimile

 5  telecommunication, if correctly directed to a number at which

 6  the member has consented to receive notice;

 7         (c)  When actually transmitted by electronic mail, if

 8  correctly directed to an electronic mail address at which the

 9  member has consented to receive notice;

10         (d)  When posted on an electronic network that the

11  member has consented to consult, upon the later of:

12         1.  Such correct posting; or

13         2.  The giving of a separate notice to the member of

14  the fact of such specific posting; or

15         (e)  When correctly transmitted to the member, if by

16  any other form of electronic transmission consented to by the

17  member to whom notice is given.

18         (4)  Consent by a member to receive notice by

19  electronic transmission shall be revocable by the member by

20  written notice to the corporation. Any such consent shall be

21  deemed revoked if:

22         (a)  The corporation is unable to deliver by electronic

23  transmission two consecutive notices given by the corporation

24  in accordance with such consent; and

25         (b)  Such inability becomes known to the secretary or

26  an assistant secretary of the corporation, or other authorized

27  person responsible for the giving of notice. However, the

28  inadvertent failure to treat such inability as a revocation

29  does not invalidate any meeting or other action.

30         (5)(4)  Written notice to a domestic or foreign

31  corporation authorized to conduct its affairs in this state


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 1  may be addressed to its registered agent at its registered

 2  office or to the corporation or its secretary at its principal

 3  office shown in its most recent annual report or, in the case

 4  of a corporation that has not yet delivered an annual report,

 5  in a domestic corporation's articles of incorporation or in a

 6  foreign corporation's application for certificate of

 7  authority.

 8         (6)(5)  Except as provided in subsection (3) or

 9  elsewhere in this act, written notice, if in a comprehensible

10  form, is effective at the earliest date of the following:

11         (a)  When received;

12         (b)  Five days after its deposit in the United States

13  mail, as evidenced by the postmark, if mailed postpaid and

14  correctly addressed; or

15         (c)  On the date shown on the return receipt, if sent

16  by registered or certified mail, return receipt requested, and

17  the receipt is signed by or on behalf of the addressee.

18         (7)(6)  Oral notice is effective when communicated if

19  communicated directly to the person to be notified in a

20  comprehensible manner.

21         (8)  An affidavit of the secretary, an assistant

22  secretary, the transfer agent, or other authorized agent of

23  the corporation that the notice has been given by a form of

24  electronic transmission is, in the absence of fraud, prima

25  facie evidence of the facts stated in the notice.

26         (9)(7)  If this act prescribes notice requirements for

27  particular circumstances, those requirements govern.  If

28  articles of incorporation or bylaws prescribe notice

29  requirements not less stringent than the requirements of this

30  section or other provisions of this act, those requirements

31  govern.


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 1         Section 3.  Section 617.1803, Florida Statutes, is

 2  created to read:

 3         617.1803  Domestication of foreign not-for-profit

 4  corporations.--

 5         (1)  As used in this section, the term "not-for-profit

 6  corporation" includes any not-for-profit incorporated

 7  organization.

 8         (2)  Any foreign not-for-profit corporation may become

 9  domesticated in this state by filing with the Department of

10  State:

11         (a)  A certificate of domestication, executed in

12  accordance with subsection (7) and filed in accordance with s.

13  617.01201; and

14         (b)  Articles of incorporation, executed and filed in

15  accordance with ss. 617.01201 and 617.0202.

16         (3)  The certificate of domestication shall certify:

17         (a)  The date on which and the jurisdiction in which

18  the corporation was first formed, incorporated, or otherwise

19  came into being;

20         (b)  The name of the corporation immediately before the

21  filing of the certificate of domestication;

22         (c)  The name of the corporation, as set forth in its

23  articles of incorporation; and

24         (d)  The jurisdiction that constituted the seat, siege

25  social, or principal place of business or central

26  administration of the corporation, or any other equivalent

27  jurisdiction under applicable law, immediately before the

28  filing of the certificate of domestication.

29         (4)  Upon filing the certificate of domestication and

30  articles of incorporation, the corporation shall be

31  domesticated in this state and shall thereafter be subject to


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 1  this section, except that notwithstanding s. 617.0203, the

 2  existence of the corporation shall be deemed to have commenced

 3  on the date it commenced its existence in the jurisdiction in

 4  which it was first formed, incorporated, or otherwise came

 5  into being.

 6         (5)  The domestication of any not-for-profit

 7  corporation in this state does not affect any obligations or

 8  liabilities that it incurred before its domestication.

 9         (6)  The filing of a certificate of domestication does

10  not affect the choice of law applicable to the corporation,

11  except that, after the date the certificate of domestication

12  is filed, the law of this state, applies to the corporation to

13  the same extent as if it had been incorporated as a

14  not-for-profit corporation of this state on that date.

15         (7)  The certificate of domestication shall be signed

16  by any corporate officer, director, trustee, manager, partner,

17  or other person performing functions equivalent to those of an

18  officer or director, however named or described, who is

19  authorized to sign the certificate of domestication on behalf

20  of the corporation.

21         Section 4.  Subsections (11) and (12) of section

22  718.111, Florida Statutes, are amended to read:

23         718.111  The association.--

24         (11)  INSURANCE.--In order to protect the safety,

25  health, and welfare of the people of the State of Florida and

26  to ensure consistency in the provision of insurance coverage

27  to condominiums and their unit owners, paragraphs (b) and (c)

28  are deemed to apply to every condominium in the state,

29  regardless of the date of its declaration of condominium. It

30  is the intent of the Legislature to encourage lower or stable

31  insurance premiums for associations described in this section.


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 1  Therefore, the Legislature requires a report to be prepared by

 2  the Office of Insurance Regulation of the Department of

 3  Financial Services for publication 18 months from the

 4  effective date of this act, evaluating premium increases or

 5  decreases for associations, unit owner premium increases or

 6  decreases, recommended changes to better define common areas,

 7  or any other information the Office of Insurance Regulation

 8  deems appropriate.

 9         (a)  A unit-owner controlled association shall use its

10  best efforts to obtain and maintain adequate insurance to

11  protect the association, the association property, the common

12  elements, and the condominium property required to be insured

13  by the association pursuant to paragraph (b). If the

14  association is developer controlled, the association shall

15  exercise due diligence to obtain and maintain such insurance.

16  Failure to obtain and maintain adequate insurance during any

17  period of developer control shall constitute a breach of

18  fiduciary responsibility by the developer-appointed members of

19  the board of directors of the association, unless said members

20  can show that despite such failure, they have exercised due

21  diligence. The declaration of condominium as originally

22  recorded, or amended pursuant to procedures provided therein,

23  may require that condominium property consisting of

24  freestanding buildings where there is no more than one

25  building in or on such unit need not be insured by the

26  association if the declaration requires the unit owner to

27  obtain adequate insurance for the condominium property. An

28  association may also obtain and maintain liability insurance

29  for directors and officers, insurance for the benefit of

30  association employees, and flood insurance for common

31  elements, association property, and units. Adequate insurance,


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 1  regardless of any requirement in the declaration of

 2  condominium for coverage by the association for "full

 3  insurable value," "replacement cost," or the like, may include

 4  reasonable deductibles as determined by the board. An

 5  association or group of associations may self-insure against

 6  claims against the association, the association property, and

 7  the condominium property required to be insured by an

 8  association, upon compliance with ss. 624.460-624.488. A copy

 9  of each policy of insurance in effect shall be made available

10  for inspection by unit owners at reasonable times.

11         (b)  Every hazard insurance policy which is issued or

12  renewed on or after January 1, 2004, to protect the a

13  condominium building shall provide primary coverage for:

14         1.  All portions of the condominium property located

15  outside the units;

16         2.  The condominium property located inside the units

17  as such property was initially installed, or replacements

18  thereof of like kind and quality and in accordance with the

19  original plans and specifications or, if the original plans

20  and specifications are not available, as they existed at the

21  time the unit was initially conveyed; and

22         3.  All portions of the condominium property for which

23  the declaration of condominium requires coverage by the

24  association.

25  

26  Anything to the contrary notwithstanding, the terms

27  "condominium property," "building," "improvements," "insurable

28  improvements," "common elements," "association property," or

29  any other term found in the declaration of condominium which

30  defines the scope of property or casualty insurance that a

31  condominium association must obtain shall exclude all floor,


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 1  wall, and ceiling coverings, that the word "building" wherever

 2  used in the policy include, but not necessarily be limited to,

 3  fixtures, installations, or additions comprising that part of

 4  the building within the unfinished interior surfaces of the

 5  perimeter walls, floors, and ceilings of the individual units

 6  initially installed, or replacements thereof of like kind or

 7  quality, in accordance with the original plans and

 8  specifications, or as they existed at the time the unit was

 9  initially conveyed if the original plans and specifications

10  are not available. However, unless prior to October 1, 1986,

11  the association is required by the declaration to provide

12  coverage therefor, the word "building" does not include unit

13  floor coverings, wall coverings, or ceiling coverings, and, as

14  to contracts entered into after July 1, 1992, does not include

15  the following equipment if it is located within a unit and the

16  unit owner is required to repair or replace such equipment:

17  electrical fixtures, appliances, air conditioner or heating

18  equipment, water heaters, water filters, or built-in cabinets

19  and countertops, and window treatments, including curtains,

20  drapes, blinds, hardware, and similar window treatment

21  components, or replacements of any of the foregoing which are

22  located within the boundaries of a unit and serve only one

23  unit and all air conditioning compressors that service only an

24  individual unit, whether or not located within the unit

25  boundaries. The foregoing is intended to establish the

26  property or casualty insuring responsibilities of the

27  association and those of the individual unit owner and do not

28  serve to broaden or extend the perils of coverage afforded by

29  any insurance contract provided to the individual unit owner.

30  Beginning January 1, 2004, the association shall have the

31  authority to amend the declaration of condominium, without


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 1  regard to any requirement for mortgagee approval of amendments

 2  affecting insurance requirements, to conform the declaration

 3  of condominium to the coverage requirements of this section.

 4  With respect to the coverage provided for by this paragraph,

 5  the unit owners shall be considered additional insureds under

 6  the policy.

 7         (c)  Every hazard insurance policy issued or renewed on

 8  or after January 1, 2004, to an individual unit owner shall

 9  provide that the coverage afforded by such policy is excess

10  over the amount recoverable under any other policy covering

11  the same property. Each insurance policy issued to an

12  individual unit owner providing such coverage shall be without

13  rights of subrogation against the condominium association that

14  operates the condominium in which such unit owner's unit is

15  located. All real or personal property located within the

16  boundaries of the unit owner's unit which is excluded from the

17  coverage to be provided by the association as set forth in

18  paragraph (b) shall be insured by the individual unit owner.

19         (d)  The association shall obtain and maintain adequate

20  insurance or fidelity bonding of all persons who control or

21  disburse funds of the association. The insurance policy or

22  fidelity bond must cover the maximum funds that will be in the

23  custody of the association or its management agent at any one

24  time. As used in this paragraph, the term "persons who control

25  or disburse funds of the association" includes, but is not

26  limited to, those individuals authorized to sign checks and

27  the president, secretary, and treasurer of the association.

28  The association shall bear the cost of bonding.

29         (12)  OFFICIAL RECORDS.--

30         (a)  From the inception of the association, the

31  association shall maintain each of the following items, when


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 1  applicable, which shall constitute the official records of the

 2  association:

 3         1.  A copy of the plans, permits, warranties, and other

 4  items provided by the developer pursuant to s. 718.301(4).

 5         2.  A photocopy of the recorded declaration of

 6  condominium of each condominium operated by the association

 7  and of each amendment to each declaration.

 8         3.  A photocopy of the recorded bylaws of the

 9  association and of each amendment to the bylaws.

10         4.  A certified copy of the articles of incorporation

11  of the association, or other documents creating the

12  association, and of each amendment thereto.

13         5.  A copy of the current rules of the association.

14         6.  A book or books which contain the minutes of all

15  meetings of the association, of the board of directors, and of

16  unit owners, which minutes shall be retained for a period of

17  not less than 7 years.

18         7.  A current roster of all unit owners and their

19  mailing addresses, unit identifications, voting

20  certifications, and, if known, telephone numbers. The

21  association shall also maintain the electronic mailing

22  addresses and the numbers designated by unit owners for

23  receiving notice sent by electronic transmission of those unit

24  owners consenting to receive notice by electronic

25  transmission. The electronic mailing addresses and numbers

26  provided by unit owners to receive notice by electronic

27  transmission shall be removed from association records when

28  consent to receive notice by electronic transmission is

29  revoked. However, the association is not liable for an

30  erroneous disclosure of the electronic mail address or the

31  number for receiving electronic transmission of notices.


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 1         8.  All current insurance policies of the association

 2  and condominiums operated by the association.

 3         9.  A current copy of any management agreement, lease,

 4  or other contract to which the association is a party or under

 5  which the association or the unit owners have an obligation or

 6  responsibility.

 7         10.  Bills of sale or transfer for all property owned

 8  by the association.

 9         11.  Accounting records for the association and

10  separate accounting records for each condominium which the

11  association operates.  All accounting records shall be

12  maintained for a period of not less than 7 years. The

13  accounting records shall include, but are not limited to:

14         a.  Accurate, itemized, and detailed records of all

15  receipts and expenditures.

16         b.  A current account and a monthly, bimonthly, or

17  quarterly statement of the account for each unit designating

18  the name of the unit owner, the due date and amount of each

19  assessment, the amount paid upon the account, and the balance

20  due.

21         c.  All audits, reviews, accounting statements, and

22  financial reports of the association or condominium.

23         d.  All contracts for work to be performed.  Bids for

24  work to be performed shall also be considered official records

25  and shall be maintained for a period of 1 year.

26         12.  Ballots, sign-in sheets, voting proxies, and all

27  other papers relating to voting by unit owners, which shall be

28  maintained for a period of 1 year from the date of the

29  election, vote, or meeting to which the document relates.

30         13.  All rental records, when the association is acting

31  as agent for the rental of condominium units.


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 1         14.  A copy of the current question and answer sheet as

 2  described by s. 718.504.

 3         15.  All other records of the association not

 4  specifically included in the foregoing which are related to

 5  the operation of the association.

 6         (b)  The official records of the association shall be

 7  maintained within the state. The records of the association

 8  shall be made available to a unit owner within 5 working days

 9  after receipt of written request by the board or its designee.

10  This paragraph may be complied with by having a copy of the

11  official records of the association available for inspection

12  or copying on the condominium property or association

13  property.

14         (c)  The official records of the association are open

15  to inspection by any association member or the authorized

16  representative of such member at all reasonable times. The

17  right to inspect the records includes the right to make or

18  obtain copies, at the reasonable expense, if any, of the

19  association member. The association may adopt reasonable rules

20  regarding the frequency, time, location, notice, and manner of

21  record inspections and copying. The failure of an association

22  to provide the records within 10 working days after receipt of

23  a written request shall create a rebuttable presumption that

24  the association willfully failed to comply with this

25  paragraph. A unit owner who is denied access to official

26  records is entitled to the actual damages or minimum damages

27  for the association's willful failure to comply with this

28  paragraph. The minimum damages shall be $50 per calendar day

29  up to 10 days, the calculation to begin on the 11th working

30  day after receipt of the written request. The failure to

31  permit inspection of the association records as provided


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 1  herein entitles any person prevailing in an enforcement action

 2  to recover reasonable attorney's fees from the person in

 3  control of the records who, directly or indirectly, knowingly

 4  denied access to the records for inspection. The association

 5  shall maintain an adequate number of copies of the

 6  declaration, articles of incorporation, bylaws, and rules, and

 7  all amendments to each of the foregoing, as well as the

 8  question and answer sheet provided for in s. 718.504 and

 9  year-end financial information required in this section on the

10  condominium property to ensure their availability to unit

11  owners and prospective purchasers, and may charge its actual

12  costs for preparing and furnishing these documents to those

13  requesting the same. Notwithstanding the provisions of this

14  paragraph, the following records shall not be accessible to

15  unit owners:

16         1.  Any record protected by the lawyer-client privilege

17  as described in s. 90.502; and any record protected by the

18  work-product privilege, including any record prepared by an

19  association attorney or prepared at the attorney's express

20  direction; which reflects a mental impression, conclusion,

21  litigation strategy, or legal theory of the attorney or the

22  association, and which was prepared exclusively for civil or

23  criminal litigation or for adversarial administrative

24  proceedings, or which was prepared in anticipation of imminent

25  civil or criminal litigation or imminent adversarial

26  administrative proceedings until the conclusion of the

27  litigation or adversarial administrative proceedings.

28         2.  Information obtained by an association in

29  connection with the approval of the lease, sale, or other

30  transfer of a unit.

31         3.  Medical records of unit owners.


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 1         (d)  The association shall prepare a question and

 2  answer sheet as described in s. 718.504, and shall update it

 3  annually.

 4         (e)  The association or its authorized agent shall not

 5  be required to provide a prospective purchaser or lienholder

 6  with information about the condominium or the association

 7  other than information or documents required by this chapter

 8  to be made available or disclosed. The association or its

 9  authorized agent shall be entitled to charge a reasonable fee

10  to the prospective purchaser, lienholder, or the current unit

11  owner for its time in providing good faith responses to

12  requests for information by or on behalf of a prospective

13  purchaser or lienholder, other than that required by law,

14  provided that such fee shall not exceed $150 plus the

15  reasonable cost of photocopying and any attorney's fees

16  incurred by the association in connection with the

17  association's response.

18         Section 5.  Paragraphs (b), (c), (d), (e), (j), and (l)

19  of subsection (2) and subsection (3) of section 718.112,

20  Florida Statutes, are amended to read:

21         718.112  Bylaws.--

22         (2)  REQUIRED PROVISIONS.--The bylaws shall provide for

23  the following and, if they do not do so, shall be deemed to

24  include the following:

25         (b)  Quorum; voting requirements; proxies.--

26         1.  Unless a lower number is provided in the bylaws,

27  the percentage of voting interests required to constitute a

28  quorum at a meeting of the members shall be a majority of the

29  voting interests.  Unless otherwise provided in this chapter

30  or in the declaration, articles of incorporation, or bylaws,

31  and except as provided in subparagraph (d)3., decisions shall


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 1  be made by owners of a majority of the voting interests

 2  represented at a meeting at which a quorum is present.

 3         2.  Except as specifically otherwise provided herein,

 4  after January 1, 1992, unit owners may not vote by general

 5  proxy, but may vote by limited proxies substantially

 6  conforming to a limited proxy form adopted by the division.

 7  Limited proxies and general proxies may be used to establish a

 8  quorum. Limited proxies shall be used for votes taken to waive

 9  or reduce reserves in accordance with subparagraph (f)2.; for

10  votes taken to waive the financial reporting requirements of

11  s. 718.111(13); for votes taken to amend the declaration

12  pursuant to s. 718.110; for votes taken to amend the articles

13  of incorporation or bylaws pursuant to this section; and for

14  any other matter for which this chapter requires or permits a

15  vote of the unit owners.  Except as provided in paragraph (d),

16  after January 1, 1992, no proxy, limited or general, shall be

17  used in the election of board members. General proxies may be

18  used for other matters for which limited proxies are not

19  required, and may also be used in voting for nonsubstantive

20  changes to items for which a limited proxy is required and

21  given. Notwithstanding the provisions of this subparagraph,

22  unit owners may vote in person at unit owner meetings.

23  Nothing contained herein shall limit the use of general

24  proxies or require the use of limited proxies for any agenda

25  item or election at any meeting of a timeshare condominium

26  association.

27         3.  Any proxy given shall be effective only for the

28  specific meeting for which originally given and any lawfully

29  adjourned meetings thereof.  In no event shall any proxy be

30  valid for a period longer than 90 days after the date of the

31  first meeting for which it was given.  Every proxy is


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 1  revocable at any time at the pleasure of the unit owner

 2  executing it.

 3         4.  A member of the board of administration or a

 4  committee may submit in writing his or her agreement or

 5  disagreement with any action taken at a meeting that the

 6  member did not attend. This agreement or disagreement may not

 7  be used as a vote for or against the action taken and may not

 8  be used for the purposes of creating a quorum.

 9         5.  When any of the board or committee members meet by

10  telephone conference, those board or committee members

11  attending by telephone conference may be counted toward

12  obtaining a quorum and may vote by telephone. A telephone

13  speaker must be used so that the conversation of those board

14  or committee members attending by telephone may be heard by

15  the board or committee members attending in person as well as

16  by any unit owners present at a meeting.

17         (c)  Board of administration meetings.--Meetings of the

18  board of administration at which a quorum of the members is

19  present shall be open to all unit owners. Any unit owner may

20  tape record or videotape meetings of the board of

21  administration. The right to attend such meetings includes the

22  right to speak at such meetings with reference to all

23  designated agenda items.  The division shall adopt reasonable

24  rules governing the tape recording and videotaping of the

25  meeting. The association may adopt written reasonable rules

26  governing the frequency, duration, and manner of unit owner

27  statements. Adequate notice of all meetings, which notice

28  shall specifically incorporate an identification of agenda

29  items, shall be posted conspicuously on the condominium

30  property at least 48 continuous hours preceding the meeting

31  except in an emergency.  Any item not included on the notice


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 1  may be taken up on an emergency basis by at least a majority

 2  plus one of the members of the board. Such emergency action

 3  shall be noticed and ratified at the next regular meeting of

 4  the board. However, written notice of any meeting at which

 5  nonemergency special assessments, or at which amendment to

 6  rules regarding unit use, will be considered shall be mailed,

 7  or delivered, or electronically transmitted to the unit owners

 8  and posted conspicuously on the condominium property not less

 9  than 14 days prior to the meeting. Evidence of compliance with

10  this 14-day notice shall be made by an affidavit executed by

11  the person providing the notice and filed among the official

12  records of the association.  Upon notice to the unit owners,

13  the board shall by duly adopted rule designate a specific

14  location on the condominium property or association property

15  upon which all notices of board meetings shall be posted. If

16  there is no condominium property or association property upon

17  which notices can be posted, notices of board meetings shall

18  be mailed, or delivered, or electronically transmitted at

19  least 14 days before the meeting to the owner of each unit. In

20  lieu of or in addition to the physical posting of notice of

21  any meeting of the board of administration on the condominium

22  property, the association may, by reasonable rule, adopt a

23  procedure for conspicuously posting and repeatedly

24  broadcasting the notice and the agenda on a closed-circuit

25  cable television system serving the condominium association.

26  However, if broadcast notice is used in lieu of a notice

27  posted physically on the condominium property, the notice and

28  agenda must be broadcast at least four times every broadcast

29  hour of each day that a posted notice is otherwise required

30  under this section. When broadcast notice is provided, the

31  notice and agenda must be broadcast in a manner and for a


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 1  sufficient continuous length of time so as to allow an average

 2  reader to observe the notice and read and comprehend the

 3  entire content of the notice and the agenda. Notice of any

 4  meeting in which regular assessments against unit owners are

 5  to be considered for any reason shall specifically contain a

 6  statement that assessments will be considered and the nature

 7  of any such assessments. Meetings of a committee to take final

 8  action on behalf of the board or make recommendations to the

 9  board regarding the association budget are subject to the

10  provisions of this paragraph. Meetings of a committee that

11  does not take final action on behalf of the board or make

12  recommendations to the board regarding the association budget

13  are subject to the provisions of this section, unless those

14  meetings are exempted from this section by the bylaws of the

15  association.  Notwithstanding any other law, the requirement

16  that board meetings and committee meetings be open to the unit

17  owners is inapplicable to meetings between the board or a

18  committee and the association's attorney, with respect to

19  proposed or pending litigation, when the meeting is held for

20  the purpose of seeking or rendering legal advice.

21         (d)  Unit owner meetings.--

22         1.  There shall be an annual meeting of the unit

23  owners. Unless the bylaws provide otherwise, a vacancy on the

24  board caused by the expiration of a director's term shall be

25  filled by electing a new board member, and the election shall

26  be by secret ballot; however, if the number of vacancies

27  equals or exceeds the number of candidates, no election is

28  required. If there is no provision in the bylaws for terms of

29  the members of the board, the terms of all members of the

30  board shall expire upon the election of their successors at

31  the annual meeting. Any unit owner desiring to be a candidate


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 1  for board membership shall comply with subparagraph 3. A

 2  person who has been convicted of any felony by any court of

 3  record in the United States and who has not had his or her

 4  right to vote restored pursuant to law in the jurisdiction of

 5  his or her residence is not eligible for board membership. The

 6  validity of an action by the board is not affected if it is

 7  later determined that a member of the board is ineligible for

 8  board membership due to having been convicted of a felony.

 9         2.  The bylaws shall provide the method of calling

10  meetings of unit owners, including annual meetings. Written

11  notice, which notice must include an agenda, shall be mailed,

12  or hand delivered, or electronically transmitted to each unit

13  owner at least 14 days prior to the annual meeting and shall

14  be posted in a conspicuous place on the condominium property

15  at least 14 continuous days preceding the annual meeting. Upon

16  notice to the unit owners, the board shall by duly adopted

17  rule designate a specific location on the condominium property

18  or association property upon which all notices of unit owner

19  meetings shall be posted; however, if there is no condominium

20  property or association property upon which notices can be

21  posted, this requirement does not apply. In lieu of or in

22  addition to the physical posting of notice of any meeting of

23  the unit owners on the condominium property, the association

24  may, by reasonable rule, adopt a procedure for conspicuously

25  posting and repeatedly broadcasting the notice and the agenda

26  on a closed-circuit cable television system serving the

27  condominium association. However, if broadcast notice is used

28  in lieu of a notice posted physically on the condominium

29  property, the notice and agenda must be broadcast at least

30  four times every broadcast hour of each day that a posted

31  notice is otherwise required under this section. When


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 1  broadcast notice is provided, the notice and agenda must be

 2  broadcast in a manner and for a sufficient continuous length

 3  of time so as to allow an average reader to observe the notice

 4  and read and comprehend the entire content of the notice and

 5  the agenda. Unless a unit owner waives in writing the right to

 6  receive notice of the annual meeting, such notice shall be

 7  hand delivered, or mailed, or electronically transmitted to

 8  each unit owner. Notice for meetings and notice for all other

 9  purposes shall be mailed to each unit owner at the address

10  last furnished to the association by the unit owner, or hand

11  delivered to each unit owner. However, if a unit is owned by

12  more than one person, the association shall provide notice,

13  for meetings and all other purposes, to that one address which

14  the developer initially identifies for that purpose and

15  thereafter as one or more of the owners of the unit shall so

16  advise the association in writing, or if no address is given

17  or the owners of the unit do not agree, to the address

18  provided on the deed of record. An officer of the association,

19  or the manager or other person providing notice of the

20  association meeting, shall provide an affidavit or United

21  States Postal Service certificate of mailing, to be included

22  in the official records of the association affirming that the

23  notice was mailed or hand delivered, in accordance with this

24  provision.

25         3.  The members of the board shall be elected by

26  written ballot or voting machine. Proxies shall in no event be

27  used in electing the board, either in general elections or

28  elections to fill vacancies caused by recall, resignation, or

29  otherwise, unless otherwise provided in this chapter. Not less

30  than 60 days before a scheduled election, the association

31  shall mail, or deliver, or electronically transmit, whether by


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 1  separate association mailing or included in another

 2  association mailing, or delivery, or transmission, including

 3  regularly published newsletters, to each unit owner entitled

 4  to a vote, a first notice of the date of the election. Any

 5  unit owner or other eligible person desiring to be a candidate

 6  for the board must give written notice to the association not

 7  less than 40 days before a scheduled election.  Together with

 8  the written notice and agenda as set forth in subparagraph 2.,

 9  the association shall mail, or deliver, or electronically

10  transmit a second notice of the election to all unit owners

11  entitled to vote therein, together with a ballot which shall

12  list all candidates. Upon request of a candidate, the

13  association shall include an information sheet, no larger than

14  8 1/2  inches by 11 inches, which must be furnished by the

15  candidate not less than 35 days before the election, to be

16  included with the mailing, delivery, or transmission of the

17  ballot, with the costs of mailing, or delivery, or electronic

18  transmission and copying to be borne by the association. The

19  association is not liable for the contents of the information

20  sheets prepared by the candidates.  In order to reduce costs,

21  the association may print or duplicate the information sheets

22  on both sides of the paper. The division shall by rule

23  establish voting procedures consistent with the provisions

24  contained herein, including rules establishing procedures for

25  giving notice by electronic transmission and rules providing

26  for the secrecy of ballots.  Elections shall be decided by a

27  plurality of those ballots cast. There shall be no quorum

28  requirement; however, at least 20 percent of the eligible

29  voters must cast a ballot in order to have a valid election of

30  members of the board. No unit owner shall permit any other

31  person to vote his or her ballot, and any such ballots


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 1  improperly cast shall be deemed invalid, provided any unit

 2  owner who violates this provision may be fined by the

 3  association in accordance with s. 718.303. A unit owner who

 4  needs assistance in casting the ballot for the reasons stated

 5  in s. 101.051 may obtain assistance in casting the ballot. The

 6  regular election shall occur on the date of the annual

 7  meeting. The provisions of this subparagraph shall not apply

 8  to timeshare condominium associations. Notwithstanding the

 9  provisions of this subparagraph, an election is not required

10  unless more candidates file notices of intent to run or are

11  nominated than board vacancies exist.

12         4.  Any approval by unit owners called for by this

13  chapter or the applicable declaration or bylaws, including,

14  but not limited to, the approval requirement in s. 718.111(8),

15  shall be made at a duly noticed meeting of unit owners and

16  shall be subject to all requirements of this chapter or the

17  applicable condominium documents relating to unit owner

18  decisionmaking, except that unit owners may take action by

19  written agreement, without meetings, on matters for which

20  action by written agreement without meetings is expressly

21  allowed by the applicable bylaws or declaration or any statute

22  that provides for such action.

23         5.  Unit owners may waive notice of specific meetings

24  if allowed by the applicable bylaws or declaration or any

25  statute. If authorized by the bylaws, notice of meetings of

26  the board of administration, unit owner meetings, except unit

27  owner meetings called to recall board members under s.

28  718.112(2)(j), and committee meetings may be given by

29  electronic transmission to unit owners who consent to receive

30  notice by electronic transmission.

31  


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 1         6.  Unit owners shall have the right to participate in

 2  meetings of unit owners with reference to all designated

 3  agenda items. However, the association may adopt reasonable

 4  rules governing the frequency, duration, and manner of unit

 5  owner participation.

 6         7.  Any unit owner may tape record or videotape a

 7  meeting of the unit owners subject to reasonable rules adopted

 8  by the division.

 9         8.  Unless otherwise provided in the bylaws, any

10  vacancy occurring on the board before the expiration of a term

11  may be filled by the affirmative vote of the majority of the

12  remaining directors, even if the remaining directors

13  constitute less than a quorum, or by the sole remaining

14  director. In the alternative, a board may hold an election to

15  fill the vacancy, in which case the election procedures must

16  conform to the requirements of subparagraph 3. unless the

17  association has opted out of the statutory election process,

18  in which case the bylaws of the association control. Unless

19  otherwise provided in the bylaws, a board member appointed or

20  elected under this section shall fill the vacancy for the

21  unexpired term of the seat being filled. Filling vacancies

22  created by recall is governed by paragraph (j) and rules

23  adopted by the division.

24  

25  Notwithstanding subparagraphs (b)2. and (d)3., an association

26  may, by the affirmative vote of a majority of the total voting

27  interests, provide for different voting and election

28  procedures in its bylaws, which vote may be by a proxy

29  specifically delineating the different voting and election

30  procedures. The different voting and election procedures may

31  


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 1  provide for elections to be conducted by limited or general

 2  proxy.

 3         (e)  Budget meeting.--

 4         1.  Any meeting at which a proposed annual budget of an

 5  association will be considered by the board or unit owners

 6  shall be open to all unit owners. At least 14 days prior to

 7  such a meeting, the board shall hand deliver to each unit

 8  owner, or mail to each unit owner at the address last

 9  furnished to the association by the unit owner, or

10  electronically transmit to the location furnished by the unit

11  owner for that purpose a notice of such meeting and a copy of

12  the proposed annual budget. An officer or manager of the

13  association, or other person providing notice of such meeting,

14  shall execute an affidavit evidencing compliance with such

15  notice requirement, and such affidavit shall be filed among

16  the official records of the association.

17         2.a.  If a board adopts in any fiscal year an annual

18  budget which requires assessments against unit owners which

19  exceed 115 percent of assessments for the preceding fiscal

20  year, the board shall conduct a special meeting of the unit

21  owners to consider a substitute budget if the board receives,

22  within 21 days after adoption of the annual budget, a written

23  request for a special meeting from at least 10 percent of all

24  voting interests.  The special meeting shall be conducted

25  within 60 days after adoption of the annual budget.  At least

26  14 days prior to such special meeting, the board shall hand

27  deliver to each unit owner, or mail to each unit owner at the

28  address last furnished to the association, a notice of the

29  meeting. An officer or manager of the association, or other

30  person providing notice of such meeting shall execute an

31  affidavit evidencing compliance with this notice requirement,


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 1  and such affidavit shall be filed among the official records

 2  of the association.  Unit owners may consider and adopt a

 3  substitute budget at the special meeting. A substitute budget

 4  is adopted if approved by a majority of all voting interests

 5  unless the bylaws require adoption by a greater percentage of

 6  voting interests.  If there is not a quorum at the special

 7  meeting or a substitute budget is not adopted, the annual

 8  budget previously adopted by the board shall take effect as

 9  scheduled.

10         b.  Any determination of whether assessments exceed 115

11  percent of assessments for the prior fiscal year shall exclude

12  any authorized provision for reasonable reserves for repair or

13  replacement of the condominium property, anticipated expenses

14  of the association which the board does not expect to be

15  incurred on a regular or annual basis, or assessments for

16  betterments to the condominium property.

17         c.  If the developer controls the board, assessments

18  shall not exceed 115 percent of assessments for the prior

19  fiscal year unless approved by a majority of all voting

20  interests.

21         (j)  Recall of board members.--Subject to the

22  provisions of s. 718.301, any member of the board of

23  administration may be recalled and removed from office with or

24  without cause by the vote or agreement in writing by a

25  majority of all the voting interests. A special meeting of the

26  unit owners to recall a member or members of the board of

27  administration may be called by 10 percent of the voting

28  interests giving notice of the meeting as required for a

29  meeting of unit owners, and the notice shall state the purpose

30  of the meeting. Electronic transmission may not be used as a

31  


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 1  method of giving notice of a meeting called in whole or in

 2  part for this purpose.

 3         1.  If the recall is approved by a majority of all

 4  voting interests by a vote at a meeting, the recall will be

 5  effective as provided herein. The board shall duly notice and

 6  hold a board meeting within 5 full business days of the

 7  adjournment of the unit owner meeting to recall one or more

 8  board members. At the meeting, the board shall either certify

 9  the recall, in which case such member or members shall be

10  recalled effective immediately and shall turn over to the

11  board within 5 full business days any and all records and

12  property of the association in their possession, or shall

13  proceed as set forth in subparagraph 3.

14         2.  If the proposed recall is by an agreement in

15  writing by a majority of all voting interests, the agreement

16  in writing or a copy thereof shall be served on the

17  association by certified mail or by personal service in the

18  manner authorized by chapter 48 and the Florida Rules of Civil

19  Procedure. The board of administration shall duly notice and

20  hold a meeting of the board within 5 full business days after

21  receipt of the agreement in writing. At the meeting, the board

22  shall either certify the written agreement to recall a member

23  or members of the board, in which case such member or members

24  shall be recalled effective immediately and shall turn over to

25  the board within 5 full business days any and all records and

26  property of the association in their possession, or proceed as

27  described in subparagraph 3.

28         3.  If the board determines not to certify the written

29  agreement to recall a member or members of the board, or does

30  not certify the recall by a vote at a meeting, the board

31  shall, within 5 full business days after the meeting, file


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 1  with the division a petition for arbitration pursuant to the

 2  procedures in s. 718.1255. For the purposes of this section,

 3  the unit owners who voted at the meeting or who executed the

 4  agreement in writing shall constitute one party under the

 5  petition for arbitration. If the arbitrator certifies the

 6  recall as to any member or members of the board, the recall

 7  will be effective upon mailing of the final order of

 8  arbitration to the association. If the association fails to

 9  comply with the order of the arbitrator, the division may take

10  action pursuant to s. 718.501. Any member or members so

11  recalled shall deliver to the board any and all records of the

12  association in their possession within 5 full business days of

13  the effective date of the recall.

14         4.  If the board fails to duly notice and hold a board

15  meeting within 5 full business days of service of an agreement

16  in writing or within 5 full business days of the adjournment

17  of the unit owner recall meeting, the recall shall be deemed

18  effective and the board members so recalled shall immediately

19  turn over to the board any and all records and property of the

20  association.

21         5.  If a vacancy occurs on the board as a result of a

22  recall and less than a majority of the board members are

23  removed, the vacancy may be filled by the affirmative vote of

24  a majority of the remaining directors, notwithstanding any

25  provision to the contrary contained in this subsection. If

26  vacancies occur on the board as a result of a recall and a

27  majority or more of the board members are removed, the

28  vacancies shall be filled in accordance with procedural rules

29  to be adopted by the division, which rules need not be

30  consistent with this subsection. The rules must provide

31  procedures governing the conduct of the recall election as


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 1  well as the operation of the association during the period

 2  after a recall but prior to the recall election.

 3         (l)  Certificate of compliance.--There shall be a

 4  provision that a certificate of compliance from a licensed

 5  electrical contractor or electrician may be accepted by the

 6  association's board as evidence of compliance of the

 7  condominium units with to the applicable fire and life safety

 8  code. Notwithstanding the provisions of chapter 633 or of any

 9  other code, statute, ordinance, administrative rule, or

10  regulation, or any interpretation of the foregoing, an

11  association, condominium, or unit owner is not obligated to

12  retrofit the common elements or units of a residential

13  condominium with a fire sprinkler system or other engineered

14  life safety system in a building that has been certified for

15  occupancy by the applicable governmental entity, if the unit

16  owners have voted to forego such retrofitting and engineered

17  life safety system by the affirmative vote of two-thirds of

18  all voting interests in the affected condominium. However, a

19  condominium association may not vote to forego the

20  retrofitting with a fire sprinkler system of common areas in a

21  high-rise building. For purposes of this subsection, the term

22  "high-rise building" means a building that is greater than 75

23  feet in height where the building height is measured from the

24  lowest level of fire department access to the floor of the

25  highest occupiable story. For purposes of this subsection, the

26  term "common areas" means any enclosed hallway, corridor,

27  lobby, stairwell, or entryway. In no event shall the local

28  authority having jurisdiction require completion of

29  retrofitting of common areas with a sprinkler system before

30  the end of 2014.

31  


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 1         1.  A vote to forego retrofitting may not be obtained

 2  by general proxy or limited proxy, but shall be obtained by a

 3  vote personally cast at a duly called membership meeting, or

 4  by execution of a written consent by the member, and shall be

 5  effective upon the recording of a certificate attesting to

 6  such vote in the public records of the county where the

 7  condominium is located. The association shall provide each

 8  unit owner written notice of the vote to forego retrofitting

 9  of the required fire sprinkler system, in at least 16-point

10  bold type, by certified mail, within 20 days after the

11  association's vote. After such notice is provided to each

12  owner, a copy of such notice shall be provided by the current

13  owner to a new owner prior to closing and shall be provided by

14  a unit owner to a renter prior to signing a lease.

15         2.  As part of the information collected annually from

16  condominiums, the division shall require condominium

17  associations to report the membership vote and recording of a

18  certificate under this subsection and, if retrofitting has

19  been undertaken, the per-unit cost of such work. The division

20  shall annually report to the Division of State Fire Marshal of

21  the Department of Financial Services the number of

22  condominiums that have elected to forego retrofitting.

23         (3)  OPTIONAL PROVISIONS.--The bylaws as originally

24  recorded or as amended under the procedures provided therein

25  may provide for the following:

26         (a)  A method of adopting and amending administrative

27  rules and regulations governing the details of the operation

28  and use of the common elements.

29         (b)  Restrictions on and requirements for the use,

30  maintenance, and appearance of the units and the use of the

31  common elements.


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 1         (c)  Provisions for giving notice by electronic

 2  transmission in a manner authorized by law of meetings of the

 3  board of directors and committees and of annual and special

 4  meetings of the members.

 5         (d)(c)  Other provisions which are not inconsistent

 6  with this chapter or with the declaration, as may be desired.

 7         Section 6.  Subsection (5) is added to section

 8  719.1055, Florida Statutes, to read:

 9         719.1055  Amendment of cooperative documents;

10  alteration and acquisition of property.--

11         (5)  Notwithstanding the provisions of chapter 633 or

12  of any other code statute, ordinance, administrative rule, or

13  regulation, or any interpretation of the foregoing, a

14  cooperative or unit owner is not obligated to retrofit the

15  common elements or units of a residential cooperative with a

16  fire sprinkler system or other engineered life safety system

17  in a building that has been certified for occupancy by the

18  applicable governmental entity, if the unit owners have voted

19  to forego such retrofitting and engineered life safety system

20  by the affirmative vote of two-thirds of all voting interests

21  in the affected cooperative. However, a cooperative may not

22  forego the retrofitting with a fire sprinkler system of common

23  areas in a high-rise building. For purposes of this

24  subsection, the term "high-rise building" means a building

25  that is greater than 75 feet in height where the building

26  height is measured from the lowest level of fire department

27  access to the floor of the highest occupiable story. For

28  purposes of this subsection, the term "common areas" means any

29  enclosed hallway, corridor, lobby, stairwell, or entryway. In

30  no event shall the local authority having jurisdiction require

31  


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 1  completion of retrofitting of common areas with a sprinkler

 2  system before the end of 2014.

 3         (a)  A vote to forego retrofitting may not be obtained

 4  by general proxy or limited proxy, but shall be obtained by a

 5  vote personally cast at a duly called membership meeting, or

 6  by execution of a written consent by the member, and shall be

 7  effective upon the recording of a certificate attesting to

 8  such vote in the public records of the county where the

 9  cooperative is located. The association shall provide each

10  unit owner written notice of the vote to forego retrofitting

11  of the required fire sprinkler system, in at least 16-point

12  bold type, by certified mail, within 20 days after the

13  association's vote. After such notice is provided to each

14  owner, a copy of such notice shall be provided by the current

15  owner to a new owner prior to closing and shall be provided by

16  a unit owner to a renter prior to signing a lease.

17         (b)  As part of the information collected annually from

18  cooperatives, the division shall require associations to

19  report the membership vote and recording of a certificate

20  under this subsection and, if retrofitting has been

21  undertaken, the per-unit cost of such work. The division shall

22  annually report to the Division of State Fire Marshal of the

23  Department of Financial Services the number of cooperatives

24  that have elected to forego retrofitting.

25         Section 7.  Subsection (8) of section 718.116, Florida

26  Statutes, is amended to read:

27         718.116  Assessments; liability; lien and priority;

28  interest; collection.--

29         (8)  Within 15 days after receiving a written request

30  therefor from a unit owner purchaser, or mortgagee, the

31  association shall provide a certificate signed by an officer


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 1  or agent of the association stating all assessments and other

 2  moneys owed to the association by the unit owner with respect

 3  to the condominium parcel. Any person other than the owner who

 4  relies upon such certificate shall be protected thereby. A

 5  summary proceeding pursuant to s. 51.011 may be brought to

 6  compel compliance with this subsection, and in any such action

 7  the prevailing party is entitled to recover reasonable

 8  attorney's fees. Notwithstanding any limitation on transfer

 9  fees contained in s. 718.112(2)(i), the association or its

10  authorized agent may charge a reasonable fee for the

11  preparation of the certificate.

12         Section 8.  Paragraph (a) of subsection (2) of section

13  719.104, Florida Statutes, is amended, and paragraph (d) is

14  added to that subsection, to read:

15         719.104  Cooperatives; access to units; records;

16  financial reports; assessments; purchase of leases.--

17         (2)  OFFICIAL RECORDS.--

18         (a)  From the inception of the association, the

19  association shall maintain a copy of each of the following,

20  where applicable, which shall constitute the official records

21  of the association:

22         1.  The plans, permits, warranties, and other items

23  provided by the developer pursuant to s. 719.301(4).

24         2.  A photocopy of the cooperative documents.

25         3.  A copy of the current rules of the association.

26         4.  A book or books containing the minutes of all

27  meetings of the association, of the board of directors, and of

28  the unit owners, which minutes shall be retained for a period

29  of not less than 7 years.

30         5.  A current roster of all unit owners and their

31  mailing addresses, unit identifications, voting


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 1  certifications, and, if known, telephone numbers. The

 2  association shall also maintain the electronic mailing

 3  addresses and the numbers designated by unit owners for

 4  receiving notice sent by electronic transmission of those unit

 5  owners consenting to receive notice by electronic

 6  transmission. The electronic mailing addresses and numbers

 7  provided by unit owners to receive notice by electronic

 8  transmission shall be removed from association records when

 9  consent to receive notice by electronic transmission is

10  revoked. However, the association is not liable for an

11  erroneous disclosure of the electronic mail address or the

12  number for receiving electronic transmission of notices.

13         6.  All current insurance policies of the association.

14         7.  A current copy of any management agreement, lease,

15  or other contract to which the association is a party or under

16  which the association or the unit owners have an obligation or

17  responsibility.

18         8.  Bills of sale or transfer for all property owned by

19  the association.

20         9.  Accounting records for the association and separate

21  accounting records for each unit it operates, according to

22  good accounting practices. All accounting records shall be

23  maintained for a period of not less than 7 years. The

24  accounting records shall include, but not be limited to:

25         a.  Accurate, itemized, and detailed records of all

26  receipts and expenditures.

27         b.  A current account and a monthly, bimonthly, or

28  quarterly statement of the account for each unit designating

29  the name of the unit owner, the due date and amount of each

30  assessment, the amount paid upon the account, and the balance

31  due.


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 1         c.  All audits, reviews, accounting statements, and

 2  financial reports of the association.

 3         d.  All contracts for work to be performed.  Bids for

 4  work to be performed shall also be considered official records

 5  and shall be maintained for a period of 1 year.

 6         10.  Ballots, sign-in sheets, voting proxies, and all

 7  other papers relating to voting by unit owners, which shall be

 8  maintained for a period of 1 year after the date of the

 9  election, vote, or meeting to which the document relates.

10         11.  All rental records where the association is acting

11  as agent for the rental of units.

12         12.  A copy of the current question and answer sheet as

13  described in s. 719.504.

14         13.  All other records of the association not

15  specifically included in the foregoing which are related to

16  the operation of the association.

17         (d)  The association or its authorized agent shall not

18  be required to provide a prospective purchaser or lienholder

19  with information about the cooperative or association other

20  than the information or documents required by this chapter to

21  be made available or disclosed. The association or its

22  authorized agent shall be entitled to charge a reasonable fee

23  to the prospective purchaser, lienholder, or the current unit

24  owner for its time in providing good-faith responses to

25  requests for information by or on behalf of a prospective

26  purchaser or lienholder, other than that required by law,

27  provided that such fee shall not exceed $150 plus the

28  reasonable cost of photocopying and any attorney's fees

29  incurred by the association in connection with the

30  association's response.

31  


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 1         Section 9.  Paragraphs (b), (c), (d), (e), and (f) of

 2  subsection (1) and subsection (2) of section 719.106, Florida

 3  Statutes, are amended to read:

 4         719.106  Bylaws; cooperative ownership.--

 5         (1)  MANDATORY PROVISIONS.--The bylaws or other

 6  cooperative documents shall provide for the following, and if

 7  they do not, they shall be deemed to include the following:

 8         (b)  Quorum; voting requirements; proxies.--

 9         1.  Unless otherwise provided in the bylaws, the

10  percentage of voting interests required to constitute a quorum

11  at a meeting of the members shall be a majority of voting

12  interests, and decisions shall be made by owners of a majority

13  of the voting interests. Unless otherwise provided in this

14  chapter, or in the articles of incorporation, bylaws, or other

15  cooperative documents, and except as provided in subparagraph

16  (d)1., decisions shall be made by owners of a majority of the

17  voting interests represented at a meeting at which a quorum is

18  present.

19         2.  Except as specifically otherwise provided herein,

20  after January 1, 1992, unit owners may not vote by general

21  proxy, but may vote by limited proxies substantially

22  conforming to a limited proxy form adopted by the division.

23  Limited proxies and general proxies may be used to establish a

24  quorum.  Limited proxies shall be used for votes taken to

25  waive or reduce reserves in accordance with subparagraph

26  (j)2., for votes taken to waive the financial reporting

27  requirements of s. 719.104(4)(b), for votes taken to amend the

28  articles of incorporation or bylaws pursuant to this section,

29  and for any other matter for which this chapter requires or

30  permits a vote of the unit owners.  Except as provided in

31  paragraph (d), after January 1, 1992, no proxy, limited or


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 1  general, shall be used in the election of board members.

 2  General proxies may be used for other matters for which

 3  limited proxies are not required, and may also be used in

 4  voting for nonsubstantive changes to items for which a limited

 5  proxy is required and given. Notwithstanding the provisions of

 6  this section, unit owners may vote in person at unit owner

 7  meetings. Nothing contained herein shall limit the use of

 8  general proxies or require the use of limited proxies or

 9  require the use of limited proxies for any agenda item or

10  election at any meeting of a timeshare cooperative.

11         3.  Any proxy given shall be effective only for the

12  specific meeting for which originally given and any lawfully

13  adjourned meetings thereof.  In no event shall any proxy be

14  valid for a period longer than 90 days after the date of the

15  first meeting for which it was given.  Every proxy shall be

16  revocable at any time at the pleasure of the unit owner

17  executing it.

18         4.  A member of the board of administration or a

19  committee may submit in writing his or her agreement or

20  disagreement with any action taken at a meeting that the

21  member did not attend. This agreement or disagreement may not

22  be used as a vote for or against the action taken and may not

23  be used for the purposes of creating a quorum.

24         5.  When some or all of the board or committee members

25  meet by telephone conference, those board or committee members

26  attending by telephone conference may be counted toward

27  obtaining a quorum and may vote by telephone. A telephone

28  speaker shall be utilized so that the conversation of those

29  board or committee members attending by telephone may be heard

30  by the board or committee members attending in person, as well

31  as by unit owners present at a meeting.


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 1         (c)  Board of administration meetings.--Meetings of the

 2  board of administration at which a quorum of the members is

 3  present shall be open to all unit owners.  Any unit owner may

 4  tape record or videotape meetings of the board of

 5  administration.  The right to attend such meetings includes

 6  the right to speak at such meetings with reference to all

 7  designated agenda items.  The division shall adopt reasonable

 8  rules governing the tape recording and videotaping of the

 9  meeting.  The association may adopt reasonable written rules

10  governing the frequency, duration, and manner of unit owner

11  statements. Adequate notice of all meetings shall be posted in

12  a conspicuous place upon the cooperative property at least 48

13  continuous hours preceding the meeting, except in an

14  emergency.  Any item not included on the notice may be taken

15  up on an emergency basis by at least a majority plus one of

16  the members of the board. Such emergency action shall be

17  noticed and ratified at the next regular meeting of the board.

18  However, written notice of any meeting at which nonemergency

19  special assessments, or at which amendment to rules regarding

20  unit use, will be considered shall be mailed, or delivered, or

21  electronically transmitted to the unit owners and posted

22  conspicuously on the cooperative property not less than 14

23  days prior to the meeting. Evidence of compliance with this

24  14-day notice shall be made by an affidavit executed by the

25  person providing the notice and filed among the official

26  records of the association.  Upon notice to the unit owners,

27  the board shall by duly adopted rule designate a specific

28  location on the cooperative property upon which all notices of

29  board meetings shall be posted. In lieu of or in addition to

30  the physical posting of notice of any meeting of the board of

31  administration on the cooperative property, the association


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 1  may, by reasonable rule, adopt a procedure for conspicuously

 2  posting and repeatedly broadcasting the notice and the agenda

 3  on a closed-circuit cable television system serving the

 4  cooperative association. However, if broadcast notice is used

 5  in lieu of a notice posted physically on the cooperative

 6  property, the notice and agenda must be broadcast at least

 7  four times every broadcast hour of each day that a posted

 8  notice is otherwise required under this section. When

 9  broadcast notice is provided, the notice and agenda must be

10  broadcast in a manner and for a sufficient continuous length

11  of time so as to allow an average reader to observe the notice

12  and read and comprehend the entire content of the notice and

13  the agenda. Notice of any meeting in which regular assessments

14  against unit owners are to be considered for any reason shall

15  specifically contain a statement that assessments will be

16  considered and the nature of any such assessments. Meetings of

17  a committee to take final action on behalf of the board or to

18  make recommendations to the board regarding the association

19  budget are subject to the provisions of this paragraph.

20  Meetings of a committee that does not take final action on

21  behalf of the board or make recommendations to the board

22  regarding the association budget are subject to the provisions

23  of this section, unless those meetings are exempted from this

24  section by the bylaws of the association. Notwithstanding any

25  other law to the contrary, the requirement that board meetings

26  and committee meetings be open to the unit owners is

27  inapplicable to meetings between the board or a committee and

28  the association's attorney, with respect to proposed or

29  pending litigation, when the meeting is held for the purpose

30  of seeking or rendering legal advice.

31  


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 1         (d)  Shareholder meetings.--There shall be an annual

 2  meeting of the shareholders.  All members of the board of

 3  administration shall be elected at the annual meeting unless

 4  the bylaws provide for staggered election terms or for their

 5  election at another meeting. Any unit owner desiring to be a

 6  candidate for board membership shall comply with subparagraph

 7  1.  The bylaws shall provide the method for calling meetings,

 8  including annual meetings. Written notice, which notice shall

 9  incorporate an identification of agenda items, shall be given

10  to each unit owner at least 14 days prior to the annual

11  meeting and shall be posted in a conspicuous place on the

12  cooperative property at least 14 continuous days preceding the

13  annual meeting.  Upon notice to the unit owners, the board

14  shall by duly adopted rule designate a specific location on

15  the cooperative property upon which all notice of unit owner

16  meetings shall be posted. In lieu of or in addition to the

17  physical posting of notice of any meeting of the shareholders

18  on the cooperative property, the association may, by

19  reasonable rule, adopt a procedure for conspicuously posting

20  and repeatedly broadcasting the notice and the agenda on a

21  closed-circuit cable television system serving the cooperative

22  association. However, if broadcast notice is used in lieu of a

23  notice posted physically on the cooperative property, the

24  notice and agenda must be broadcast at least four times every

25  broadcast hour of each day that a posted notice is otherwise

26  required under this section. When broadcast notice is

27  provided, the notice and agenda must be broadcast in a manner

28  and for a sufficient continuous length of time so as to allow

29  an average reader to observe the notice and read and

30  comprehend the entire content of the notice and the agenda.

31  Unless a unit owner waives in writing the right to receive


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 1  notice of the annual meeting, the notice of the annual meeting

 2  shall be sent by mail, hand delivered, or electronically

 3  transmitted to each unit owner.  An officer of the association

 4  shall provide an affidavit or United States Postal Service

 5  certificate of mailing, to be included in the official records

 6  of the association, affirming that notices of the association

 7  meeting were mailed, or hand delivered, or electronically

 8  transmitted, in accordance with this provision, to each unit

 9  owner at the address last furnished to the association.

10         1.  After January 1, 1992, the board of administration

11  shall be elected by written ballot or voting machine.  Proxies

12  shall in no event be used in electing the board of

13  administration, either in general elections or elections to

14  fill vacancies caused by recall, resignation, or otherwise

15  unless otherwise provided in this chapter.  Not less than 60

16  days before a scheduled election, the association shall mail,

17  or deliver, or transmit, whether by separate association

18  mailing, delivery, or electronic transmission or included in

19  another association mailing, or delivery, or electronic

20  transmission, including regularly published newsletters, to

21  each unit owner entitled to vote, a first notice of the date

22  of the election. Any unit owner or other eligible person

23  desiring to be a candidate for the board of administration

24  shall give written notice to the association not less than 40

25  days before a scheduled election. Together with the written

26  notice and agenda as set forth in this section, the

27  association shall mail, deliver, or electronically transmit a

28  second notice of election to all unit owners entitled to vote

29  therein, together with a ballot which shall list all

30  candidates. Upon request of a candidate, the association shall

31  include an information sheet, no larger than 8 1/2  inches by


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 1  11 inches, which must be furnished by the candidate not less

 2  than 35 days prior to the election, to be included with the

 3  mailing, delivery, or electronic transmission of the ballot,

 4  with the costs of mailing, or delivery, or transmission and

 5  copying to be borne by the association. The association has no

 6  liability for the contents of the information sheets provided

 7  by the candidates. In order to reduce costs, the association

 8  may print or duplicate the information sheets on both sides of

 9  the paper. The division shall by rule establish voting

10  procedures consistent with the provisions contained herein,

11  including rules establishing procedures for giving notice by

12  electronic transmission and rules providing for the secrecy of

13  ballots.  Elections shall be decided by a plurality of those

14  ballots cast. There shall be no quorum requirement. However,

15  at least 20 percent of the eligible voters must cast a ballot

16  in order to have a valid election of members of the board of

17  administration.  No unit owner shall permit any other person

18  to vote his or her ballot, and any such ballots improperly

19  cast shall be deemed invalid.  A unit owner who needs

20  assistance in casting the ballot for the reasons stated in s.

21  101.051 may obtain assistance in casting the ballot. Any unit

22  owner violating this provision may be fined by the association

23  in accordance with s. 719.303. The regular election shall

24  occur on the date of the annual meeting. The provisions of

25  this subparagraph shall not apply to timeshare cooperatives.

26  Notwithstanding the provisions of this subparagraph, an

27  election and balloting are not required unless more candidates

28  file a notice of intent to run or are nominated than vacancies

29  exist on the board.

30         2.  Any approval by unit owners called for by this

31  chapter, or the applicable cooperative documents, shall be


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 1  made at a duly noticed meeting of unit owners and shall be

 2  subject to all requirements of this chapter or the applicable

 3  cooperative documents relating to unit owner decisionmaking,

 4  except that unit owners may take action by written agreement,

 5  without meetings, on matters for which action by written

 6  agreement without meetings is expressly allowed by the

 7  applicable cooperative documents or any Florida statute which

 8  provides for the unit owner action.

 9         3.  Unit owners may waive notice of specific meetings

10  if allowed by the applicable cooperative documents or any

11  Florida statute. If authorized by the bylaws, notice of

12  meetings of the board of administration, shareholder meetings,

13  except shareholder meetings called to recall board members

14  under s. 719.106(1)(f), and committee meetings may be given by

15  electronic transmission to unit owners who consent to receive

16  notice by electronic transmission.

17         4.  Unit owners shall have the right to participate in

18  meetings of unit owners with reference to all designated

19  agenda items.  However, the association may adopt reasonable

20  rules governing the frequency, duration, and manner of unit

21  owner participation.

22         5.  Any unit owner may tape record or videotape

23  meetings of the unit owners subject to reasonable rules

24  adopted by the division.

25  

26  Notwithstanding subparagraphs (b)2. and (d)1., an association

27  may, by the affirmative vote of a majority of the total voting

28  interests, provide for a different voting and election

29  procedure in its bylaws, which vote may be by a proxy

30  specifically delineating the different voting and election

31  procedures. The different voting and election procedures may


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 1  provide for elections to be conducted by limited or general

 2  proxy.

 3         (e)  Budget procedures.--

 4         1.  The board of administration shall mail, or hand

 5  deliver, or electronically transmit to each unit owner at the

 6  address last furnished to the association, a meeting notice

 7  and copies of the proposed annual budget of common expenses to

 8  the unit owners not less than 14 days prior to the meeting at

 9  which the budget will be considered. Evidence of compliance

10  with this 14-day notice must be made by an affidavit executed

11  by an officer of the association or the manager or other

12  person providing notice of the meeting and filed among the

13  official records of the association. The meeting must be open

14  to the unit owners.

15         2.  If an adopted budget requires assessment against

16  the unit owners in any fiscal or calendar year which exceeds

17  115 percent of the assessments for the preceding year, the

18  board upon written application of 10 percent of the voting

19  interests to the board, shall call a special meeting of the

20  unit owners within 30 days, upon not less than 10 days'

21  written notice to each unit owner.  At the special meeting,

22  unit owners shall consider and enact a budget. Unless the

23  bylaws require a larger vote, the adoption of the budget

24  requires a vote of not less than a majority of all the voting

25  interests.

26         3.  The board of administration may, in any event,

27  propose a budget to the unit owners at a meeting of members or

28  by writing, and if the budget or proposed budget is approved

29  by the unit owners at the meeting or by a majority of all

30  voting interests in writing, the budget is adopted.  If a

31  meeting of the unit owners has been called and a quorum is not


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 1  attained or a substitute budget is not adopted by the unit

 2  owners, the budget adopted by the board of directors goes into

 3  effect as scheduled.

 4         4.  In determining whether assessments exceed 115

 5  percent of similar assessments for prior years, any authorized

 6  provisions for reasonable reserves for repair or replacement

 7  of cooperative property, anticipated expenses by the

 8  association which are not anticipated to be incurred on a

 9  regular or annual basis, or assessments for betterments to the

10  cooperative property must be excluded from computation.

11  However, as long as the developer is in control of the board

12  of administration, the board may not impose an assessment for

13  any year greater than 115 percent of the prior fiscal or

14  calendar year's assessment without approval of a majority of

15  all voting interests.

16         (f)  Recall of board members.--Subject to the

17  provisions of s. 719.301, any member of the board of

18  administration may be recalled and removed from office with or

19  without cause by the vote or agreement in writing by a

20  majority of all the voting interests. A special meeting of the

21  voting interests to recall any member of the board of

22  administration may be called by 10 percent of the unit owners

23  giving notice of the meeting as required for a meeting of unit

24  owners, and the notice shall state the purpose of the meeting.

25  Electronic transmission may not be used as a method of giving

26  notice of a meeting called in whole or in part for this

27  purpose.

28         1.  If the recall is approved by a majority of all

29  voting interests by a vote at a meeting, the recall shall be

30  effective as provided herein. The board shall duly notice and

31  hold a board meeting within 5 full business days of the


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 1  adjournment of the unit owner meeting to recall one or more

 2  board members. At the meeting, the board shall either certify

 3  the recall, in which case such member or members shall be

 4  recalled effective immediately and shall turn over to the

 5  board within 5 full business days any and all records and

 6  property of the association in their possession, or shall

 7  proceed as set forth in subparagraph 3.

 8         2.  If the proposed recall is by an agreement in

 9  writing by a majority of all voting interests, the agreement

10  in writing or a copy thereof shall be served on the

11  association by certified mail or by personal service in the

12  manner authorized by chapter 48 and the Florida Rules of Civil

13  Procedure. The board of administration shall duly notice and

14  hold a meeting of the board within 5 full business days after

15  receipt of the agreement in writing. At the meeting, the board

16  shall either certify the written agreement to recall members

17  of the board, in which case such members shall be recalled

18  effective immediately and shall turn over to the board, within

19  5 full business days, any and all records and property of the

20  association in their possession, or proceed as described in

21  subparagraph 3.

22         3.  If the board determines not to certify the written

23  agreement to recall members of the board, or does not certify

24  the recall by a vote at a meeting, the board shall, within 5

25  full business days after the board meeting, file with the

26  division a petition for binding arbitration pursuant to the

27  procedures of s. 719.1255. For purposes of this paragraph, the

28  unit owners who voted at the meeting or who executed the

29  agreement in writing shall constitute one party under the

30  petition for arbitration. If the arbitrator certifies the

31  recall as to any member of the board, the recall shall be


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 1  effective upon mailing of the final order of arbitration to

 2  the association. If the association fails to comply with the

 3  order of the arbitrator, the division may take action pursuant

 4  to s. 719.501. Any member so recalled shall deliver to the

 5  board any and all records and property of the association in

 6  the member's possession within 5 full business days of the

 7  effective date of the recall.

 8         4.  If the board fails to duly notice and hold a board

 9  meeting within 5 full business days of service of an agreement

10  in writing or within 5 full business days of the adjournment

11  of the unit owner recall meeting, the recall shall be deemed

12  effective and the board members so recalled shall immediately

13  turn over to the board any and all records and property of the

14  association.

15         5.  If a vacancy occurs on the board as a result of a

16  recall and less than a majority of the board members are

17  removed, the vacancy may be filled by the affirmative vote of

18  a majority of the remaining directors, notwithstanding any

19  provision to the contrary contained in this chapter. If

20  vacancies occur on the board as a result of a recall and a

21  majority or more of the board members are removed, the

22  vacancies shall be filled in accordance with procedural rules

23  to be adopted by the division, which rules need not be

24  consistent with this chapter. The rules must provide

25  procedures governing the conduct of the recall election as

26  well as the operation of the association during the period

27  after a recall but prior to the recall election.

28         (2)  OPTIONAL PROVISIONS.--The bylaws may provide for

29  the following:

30  

31  


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 1         (a)  Administrative rules.--A method of adopting and of

 2  amending administrative rules and regulations governing the

 3  details of the operation and use of the common areas.

 4         (b)  Use and maintenance restrictions.--Restrictions

 5  on, and requirements for, the use, maintenance, and appearance

 6  of the units and the use of the common areas, not inconsistent

 7  with the cooperative documents, designed to prevent

 8  unreasonable interference with the use of the units and common

 9  areas.

10         (c)  Notice of meetings.--Provisions for giving notice

11  by electronic transmissions in a manner authorized by law of

12  meetings of the board of directors and committees and of

13  annual and special meetings of the members.

14         (d)(c)  Other matters.--Other provisions not

15  inconsistent with this chapter or with the cooperative

16  documents as may be desired.

17         Section 10.  Subsection (6) of section 719.108, Florida

18  Statutes, is amended to read:

19         719.108  Rents and assessments; liability; lien and

20  priority; interest; collection; cooperative ownership.--

21         (6)  Within 15 days after request by a unit owner or

22  mortgagee, the association shall provide a certificate stating

23  all assessments and other moneys owed to the association by

24  the unit owner with respect to the cooperative parcel.  Any

25  person other than the unit owner who relies upon such

26  certificate shall be protected thereby. Notwithstanding any

27  limitation on transfer fees contained in s. 719.106(1)(i), the

28  association or its authorized agent may charge a reasonable

29  fee for the preparation of the certificate.

30  

31  


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 1         Section 11.  Subsection (1) of section 720.302, Florida

 2  Statutes, is amended, and subsection (5) is added to that

 3  section to read:

 4         720.302  Purposes, scope, and application.--

 5         (1)  The purposes of ss. 720.301-720.312 are to give

 6  statutory recognition to corporations not for profit that

 7  operate residential communities in this state, to provide

 8  procedures for operating homeowners' associations, and to

 9  protect the rights of association members without unduly

10  impairing the ability of such associations to perform their

11  functions.

12         (5)  Unless expressly stated to the contrary,

13  corporations not for profit that operate residential

14  homeowners' associations in this state shall be governed by

15  and subject to chapters 617 and 720. This subsection is

16  intended to clarify existing law.

17         Section 12.  Subsection (2) and paragraph (g) of

18  subsection (4) of section 720.303, Florida Statutes, are

19  amended to read:

20         720.303  Association powers and duties; meetings of

21  board; official records; budgets; financial reporting.--

22         (2)  BOARD MEETINGS.--A meeting of the board of

23  directors of an association occurs whenever a quorum of the

24  board gathers to conduct association business.  All meetings

25  of the board must be open to all members except for meetings

26  between the board and its attorney with respect to proposed or

27  pending litigation where the contents of the discussion would

28  otherwise be governed by the attorney-client privilege.

29  Notices of all board meetings must be posted in a conspicuous

30  place in the community at least 48 hours in advance of a

31  meeting, except in an emergency.  In the alternative, if


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 1  notice is not posted in a conspicuous place in the community,

 2  notice of each board meeting must be mailed or delivered to

 3  each member at least 7 days before the meeting, except in an

 4  emergency. Notwithstanding this general notice requirement,

 5  for communities with more than 100 members, the bylaws may

 6  provide for a reasonable alternative to posting or mailing of

 7  notice for each board meeting, including publication of

 8  notice, or provision of a schedule of board meetings, or the

 9  conspicuous posting and repeated broadcasting of the notice on

10  a closed-circuit cable television system serving the

11  homeowners association. However, if broadcast notice is used

12  in lieu of a notice posted physically in the community, the

13  notice must be broadcast at least four times every broadcast

14  hour of each day that a posted notice is otherwise required.

15  When broadcast notice is provided, the notice and agenda must

16  be broadcast in a manner and for a sufficient continuous

17  length of time so as to allow an average reader to observe the

18  notice and read and comprehend the entire content of the

19  notice and the agenda. The bylaws or amended bylaws may

20  provide for giving notice by electronic transmission in a

21  manner authorized by law for meetings of the board of

22  directors, committee meetings requiring notice under this

23  section, and annual and special meetings of the members;

24  however, a member must consent in writing to receiving notice

25  by electronic transmission.  An assessment may not be levied

26  at a board meeting unless the notice of the meeting includes a

27  statement that assessments will be considered and the nature

28  of the assessments. Directors may not vote by proxy or by

29  secret ballot at board meetings, except that secret ballots

30  may be used in the election of officers.  This subsection also

31  applies to the meetings of any committee or other similar


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 1  body, when a final decision will be made regarding the

 2  expenditure of association funds, and to any body vested with

 3  the power to approve or disapprove architectural decisions

 4  with respect to a specific parcel of residential property

 5  owned by a member of the community.

 6         (4)  OFFICIAL RECORDS.--The association shall maintain

 7  each of the following items, when applicable, which constitute

 8  the official records of the association:

 9         (g)  A current roster of all members and their mailing

10  addresses and parcel identifications. The association shall

11  also maintain the electronic mailing addresses and the numbers

12  designated by members for receiving notice sent by electronic

13  transmission of those members consenting to receive notice by

14  electronic transmission. The electronic mailing addresses and

15  numbers provided by unit owners to receive notice by

16  electronic transmission shall be removed from association

17  records when consent to receive notice by electronic

18  transmission is revoked. However, the association is not

19  liable for an erroneous disclosure of the electronic mail

20  address or the number for receiving electronic transmission of

21  notices.

22         Section 13.  Section 702.09, Florida Statutes, is

23  amended to read:

24         702.09  Definitions.--For the purposes of ss. 702.07

25  and 702.08 the words "decree of foreclosure" shall include a

26  judgment or order rendered or passed in the foreclosure

27  proceedings in which the decree of foreclosure shall be

28  rescinded, vacated, and set aside; the word "mortgage" shall

29  mean any written instrument securing the payment of money or

30  advances and includes liens to secure payment of assessments

31  arising under chapters 718 and 719 and liens created pursuant


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 1  to the recorded covenants of a homeowners' association as

 2  defined in s. 712.01; the word "debt" shall include promissory

 3  notes, bonds, and all other written obligations given for the

 4  payment of money; the words "foreclosure proceedings" shall

 5  embrace every action in the circuit or county courts of this

 6  state wherein it is sought to foreclose a mortgage and sell

 7  the property covered by the same; and the word "property"

 8  shall mean and include both real and personal property.

 9         Section 14.  Subsection (1) of section 718.303, Florida

10  Statutes, is amended to read:

11         718.303  Obligations of owners; waiver; levy of fine

12  against unit by association.--

13         (1)  Each unit owner, each tenant and other invitee,

14  and each association shall be governed by, and shall comply

15  with the provisions of, this chapter, the declaration, the

16  documents creating the association, and the association bylaws

17  and the provisions thereof shall be deemed expressly

18  incorporated into any lease of a unit. Actions for damages or

19  for injunctive relief, or both, for failure to comply with

20  these provisions may be brought by the association or by a

21  unit owner against:

22         (a)  The association.

23         (b)  A unit owner.

24         (c)  Directors designated by the developer, for actions

25  taken by them prior to the time control of the association is

26  assumed by unit owners other than the developer.

27         (d)  Any director who willfully and knowingly fails to

28  comply with these provisions.

29         (e)  Any tenant leasing a unit, and any other invitee

30  occupying a unit.

31  


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 1  The prevailing party in any such action or in any action in

 2  which the purchaser claims a right of voidability based upon

 3  contractual provisions as required in s. 718.503(1)(a) is

 4  entitled to recover reasonable attorney's fees. A unit owner

 5  prevailing in an action between the association and the unit

 6  owner under this section, in addition to recovering his or her

 7  reasonable attorney's fees, may recover additional amounts as

 8  determined by the court to be necessary to reimburse the unit

 9  owner for his or her share of assessments levied by the

10  association to fund its expenses of the litigation. This

11  relief does not exclude other remedies provided by law.

12  Actions arising under this subsection shall not be deemed to

13  be actions for specific performance.

14         Section 15.  Subsection (1) of section 719.303, Florida

15  Statutes, is amended to read:

16         719.303  Obligations of owners.--

17         (1)  Each unit owner, each tenant and other invitee,

18  and each association shall be governed by, and shall comply

19  with the provisions of, this chapter, the cooperative

20  documents, the documents creating the association, and the

21  association bylaws, and the provisions thereof shall be deemed

22  expressly incorporated into any lease of a unit. Actions for

23  damages or for injunctive relief, or both, for failure to

24  comply with these provisions may be brought by the association

25  or by a unit owner against:

26         (a)  The association.

27         (b)  A unit owner.

28         (c)  Directors designated by the developer, for actions

29  taken by them prior to the time control of the association is

30  assumed by unit owners other than the developer.

31  


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 1         (d)  Any director who willfully and knowingly fails to

 2  comply with these provisions.

 3         (e)  Any tenant leasing a unit, and any other invitee

 4  occupying a unit.

 5  

 6  The prevailing party in any such action or in any action in

 7  which the purchaser claims a right of voidability based upon

 8  contractual provisions as required in s. 719.503(1)(a) is

 9  entitled to recover reasonable attorney' s fees. A unit owner

10  prevailing in an action between the association and the unit

11  owner under this section, in addition to recovering his or her

12  reasonable attorney's fees, may recover additional amounts as

13  determined by the court to be necessary to reimburse the unit

14  owner for his or her share of assessments levied by the

15  association to fund its expenses of the litigation. This

16  relief does not exclude other remedies provided by law.

17  Actions arising under this subsection shall not be deemed to

18  be actions for specific performance.

19         Section 16.  This act shall take effect upon becoming a

20  law.