HB 1541 full text · Session Watch

1 A bill to be entitled

2 An act relating to the use of audioconferencing by

3 community associations; amending ss. 718.103, 719.103,

4 and 720.301, F.S.; defining the term "audio

5 conference"; amending s. 718.111, F.S.; revising the

6 list of official records that a condominium

7 association is required to maintain to include audio

8 conference recordings; amending s. 718.112, F.S.;

9 revising association meeting requirements and

10 authorizing associations to use audioconferencing, in

11 addition to videoconferencing, or to use both;

12 amending s. 718.1265, F.S.; revising the emergency

13 powers of a condominium association to include the

14 power to conduct meetings and elections via

15 audioconferencing; amending s. 719.106, F.S.; revising

16 the quorum requirements for residential cooperative

17 association meetings to include audioconferencing;

18 amending ss. 719.128 and 720.316, F.S.; revising the

19 emergency powers of a residential cooperative

20 association and a homeowners' association,

21 respectively, to include the power to conduct meetings

22 and elections via audioconferencing; reenacting and

23 amending s. 718.501, F.S.; conforming a provision to

24 changes made by the act; amending ss. 336.125,

25 558.002, 617.0725, 718.116, 718.503, 719.503, and

26 720.3085, F.S.; conforming cross-references;

27 reenacting s. 723.0791, F.S., relating to mobile home

28 cooperative homeowners' associations elections, to

29 incorporate the amendment made to s. 719.106, F.S., in

30 a reference thereto; providing an effective date.

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

34 Section 1. Present subsections (5) through (35) of section

35 718.103, Florida Statutes, are redesignated as subsections (6)

36 through (36), respectively, and a new subsection (5) is added to

37 that section, to read:

38 718.103 Definitions.—As used in this chapter, the term:

39 (5) "Audio conference" means a real-time, audio-based

40 meeting between two or more people in different locations using

41 an audio-enabled device.

42 Section 2. Paragraphs (a) and (g) of subsection (12) of

43 section 718.111, Florida Statutes, are amended to read:

44 718.111 The association.—

45 (12) OFFICIAL RECORDS.—

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

47 shall maintain each of the following items, if applicable, which

48 constitutes the official records of the association:

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

50 items provided by the developer under s. 718.301(4).

51 2. A copy of the recorded declaration of condominium of

52 each condominium operated by the association and each amendment

53 to each declaration.

54 3. A copy of the recorded bylaws of the association and

55 each amendment to the bylaws.

56 4. A certified copy of the articles of incorporation of

57 the association, or other documents creating the association,

58 and each amendment thereto.

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

60 6. A book or books or electronic records that contain the

61 minutes of all meetings of the association, the board of

62 administration, any committee, and the unit owners, and a

63 recording of all such meetings ~~that are~~ conducted by audio

64 conference or video conference, or both. If there are approved

65 minutes for a meeting held by audio conference or video

66 conference, or both, recordings of meetings ~~that are~~ conducted

67 by audio conference or video conference, or both, must be

68 maintained for at least 1 year after the date the audio or video

69 recording is posted as required under paragraph (g).

70 7. A current roster of all unit owners and their mailing

71 addresses, unit identifications, voting certifications, and, if

72 known, telephone numbers. The association shall also maintain

73 the e-mail addresses and facsimile numbers of unit owners

74 consenting to receive notice by electronic transmission. In

75 accordance with sub-subparagraph (c)5.e., the e-mail addresses

76 and facsimile numbers are only accessible to unit owners if

77 consent to receive notice by electronic transmission is

78 provided, or if the unit owner has expressly indicated that such

79 personal information can be shared with other unit owners and

80 the unit owner has not provided the association with a request

81 to opt out of such dissemination with other unit owners. An

82 association must ensure that the e-mail addresses and facsimile

83 numbers are only used for the business operation of the

84 association and may not be sold or shared with outside third

85 parties. If such personal information is included in documents

86 that are released to third parties, other than unit owners, the

87 association must redact such personal information before the

88 document is disseminated. However, the association is not liable

89 for an inadvertent disclosure of the e-mail address or facsimile

90 number for receiving electronic transmission of notices unless

91 such disclosure was made with a knowing or intentional disregard

92 of the protected nature of such information.

93 8. All current insurance policies of the association and

94 condominiums operated by the association.

95 9. A current copy of any management agreement, lease, or

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

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

98 responsibility.

99 10. Bills of sale or transfer for all property owned by

100 the association.

101 11. Accounting records for the association and separate

102 accounting records for each condominium that the association

103 operates. Any person who knowingly or intentionally defaces or

104 destroys such records, or who knowingly or intentionally fails

105 to create or maintain such records, with the intent of causing

106 harm to the association or one or more of its members, is

107 personally subject to a civil penalty pursuant to s.

108 718.501(1)(e). The accounting records must include, but are not

109 limited to:

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

111 receipts and expenditures, including all bank statements and

112 ledgers.

113 b. All invoices, transaction receipts, or deposit slips

114 that substantiate any receipt or expenditure of funds by the

115 association.

116 c. A current account and a monthly, bimonthly, or

117 quarterly statement of the account for each unit designating the

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

119 assessment, the amount paid on the account, and the balance due.

120 d. All audits, reviews, accounting statements, structural

121 integrity reserve studies, and financial reports of the

122 association or condominium. Structural integrity reserve studies

123 must be maintained for at least 15 years after the study is

124 completed.

125 e. All contracts for work to be performed. Bids for work

126 to be performed are also considered official records and must be

127 maintained by the association for at least 1 year after receipt

128 of the bid.

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

130 papers and electronic records relating to voting by unit owners,

131 which must be maintained for 1 year from the date of the

132 election, vote, or meeting to which the document relates,

133 notwithstanding paragraph (b).

134 13. All rental records if the association is acting as

135 agent for the rental of condominium units.

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

137 described in s. 718.504.

138 15. A copy of the inspection reports described in ss.

139 553.899 and 718.301(4)(p) and any other inspection report

140 relating to a structural or life safety inspection of

141 condominium property. Such record must be maintained by the

142 association for 15 years after receipt of the report.

143 16. Bids for materials, equipment, or services.

144 17. All affirmative acknowledgments made pursuant to s.

145 718.121(4)(c).

146 18. A copy of all building permits.

147 19. A copy of all satisfactorily completed board member

148 educational certificates.

149 20. A copy of all affidavits required by this chapter.

150 21. All other written records of the association not

151 specifically included in the foregoing which are related to the

152 operation of the association.

153 (g)1. An association managing a condominium with 25 or

154 more units which does not contain timeshare units shall post

155 digital copies of the documents specified in subparagraph 2. on

156 its website or make such documents available through an

157 application that can be downloaded on a mobile device. Unless a

158 shorter period is otherwise required, a document must be made

159 available on the association's website or made available for

160 download through an application on a mobile device within 30

161 days after the association receives or creates an official

162 record specified in subparagraph 2.

163 a. The association's website or application must be:

164 (I) An independent website, application, or web portal

165 wholly owned and operated by the association; or

166 (II) A website, application, or web portal operated by a

167 third-party provider with whom the association owns, leases,

168 rents, or otherwise obtains the right to operate a web page,

169 subpage, web portal, collection of subpages or web portals, or

170 an application which is dedicated to the association's

171 activities and on which required notices, records, and documents

172 may be posted or made available by the association.

173 b. The association's website or application must be

174 accessible through the Internet and must contain a subpage, web

175 portal, or other protected electronic location that is

176 inaccessible to the general public and accessible only to unit

177 owners and employees of the association.

178 c. Upon a unit owner's written request, the association

179 must provide the unit owner with a username and password and

180 access to the protected sections of the association's website or

181 application which contain any notices, records, or documents

182 that must be electronically provided.

183 2. A current copy of the following documents must be

184 posted in digital format on the association's website or

185 application:

186 a. The recorded declaration of condominium of each

187 condominium operated by the association and each amendment to

188 each declaration.

189 b. The recorded bylaws of the association and each

190 amendment to the bylaws.

191 c. The articles of incorporation of the association, or

192 other documents creating the association, and each amendment to

193 the articles of incorporation or other documents. The copy

194 posted pursuant to this sub-subparagraph must be a copy of the

195 articles of incorporation filed with the Department of State.

196 d. The rules of the association.

197 e. The approved minutes of all board of administration

198 meetings over the preceding 12 months.

199 f. The audio or video recording or a hyperlink to the

200 audio or video recording for all meetings of the association,

201 the board of administration, any committee, and the unit owners

202 which were ~~are~~ conducted by audio conference or video

203 conference, or both, over the preceding 12 months.

204 g. A list of all executory contracts or documents to which

205 the association is a party or under which the association or the

206 unit owners have an obligation or responsibility and, after

207 bidding for the related materials, equipment, or services has

208 closed, a list of bids received by the association within the

209 past year. Summaries of bids for materials, equipment, or

210 services which exceed $500 must be maintained on the website or

211 application for 1 year. In lieu of summaries, complete copies of

212 the bids may be posted.

213 h. The annual budget required by s. 718.112(2)(f) and any

214 proposed budget to be considered at the annual meeting.

215 i. The financial report required by subsection (13) and

216 any monthly income or expense statement to be considered at a

217 meeting.

218 j. The certification of each director required by s.

219 718.112(2)(d)4.b.

220 k. All contracts or transactions between the association

221 and any director, officer, corporation, firm, or association

222 that is not an affiliated condominium association or any other

223 entity in which an association director is also a director or

224 officer and financially interested.

225 l. Any contract or document regarding a conflict of

226 interest or possible conflict of interest as provided in ss.

227 468.4335, 468.436(2)(b)6., and 718.3027(3).

228 m. The notice of any unit owner meeting and the agenda for

229 the meeting, as required by s. 718.112(2)(d)3., no later than 14

230 days before the meeting. The notice must be posted in plain view

231 on the front page of the website or application, or on a

232 separate subpage of the website or application labeled "Notices"

233 which is conspicuously visible and linked from the front page.

234 The association must also post on its website or application any

235 document to be considered and voted on by the owners during the

236 meeting or any document listed on the agenda at least 7 days

237 before the meeting at which the document or the information

238 within the document will be considered.

239 n. Notice of any board meeting, the agenda, and any other

240 document required for the meeting as required by s.

241 718.112(2)(c), which must be posted no later than the date

242 required for notice under s. 718.112(2)(c).

243 o. The inspection reports described in ss. 553.899 and

244 718.301(4)(p) and any other inspection report relating to a

245 structural or life safety inspection of condominium property.

246 p. The association's most recent structural integrity

247 reserve study, if applicable.

248 q. Copies of all building permits issued for ongoing or

249 planned construction.

250 r. A copy of all affidavits required by this chapter.

251 3. The association shall ensure that the information and

252 records described in paragraph (c), which are not allowed to be

253 accessible to unit owners, are not posted on the association's

254 website or application. If protected information or information

255 restricted from being accessible to unit owners is included in

256 documents that are required to be posted on the association's

257 website or application, the association shall ensure the

258 information is redacted before posting the documents.

259 Notwithstanding the foregoing, the association or its agent is

260 not liable for disclosing information that is protected or

261 restricted under this paragraph unless such disclosure was made

262 with a knowing or intentional disregard of the protected or

263 restricted nature of such information.

264 4. The failure of the association to post information

265 required under subparagraph 2. is not in and of itself

266 sufficient to invalidate any action or decision of the

267 association's board or its committees.

268 Section 3. Paragraphs (b) through (e) of subsection (2) of

269 section 718.112, Florida Statutes, are amended to read:

270 718.112 Bylaws.—

271 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the

272 following and, if they do not do so, shall be deemed to include

273 the following:

274 (b) Quorum; voting requirements; proxies.—

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

276 percentage of voting interests required to constitute a quorum

277 at a meeting of the members is a majority of the voting

278 interests. Unless otherwise provided in this chapter or in the

279 declaration, articles of incorporation, or bylaws, and except as

280 provided in subparagraph (d)4., decisions shall be made by a

281 majority of the voting interests represented at a meeting at

282 which a quorum is present.

283 2. Except as specifically otherwise provided herein, unit

284 owners in a residential condominium may not vote by general

285 proxy, but may vote by limited proxies substantially conforming

286 to a limited proxy form adopted by the division. A voting

287 interest or consent right allocated to a unit owned by the

288 association may not be exercised or considered for any purpose,

289 whether for a quorum, an election, or otherwise. Limited proxies

290 and general proxies may be used to establish a quorum. Limited

291 proxies shall be used for votes taken to waive or reduce

292 reserves in accordance with subparagraph (f)2.; for votes taken

293 to waive the financial reporting requirements of s. 718.111(13);

294 for votes taken to amend the declaration pursuant to s. 718.110;

295 for votes taken to amend the articles of incorporation or bylaws

296 pursuant to this section; and for any other matter for which

297 this chapter requires or permits a vote of the unit owners.

298 Except as provided in paragraph (d), a proxy, limited or

299 general, may not be used in the election of board members in a

300 residential condominium. General proxies may be used for other

301 matters for which limited proxies are not required, and may be

302 used in voting for nonsubstantive changes to items for which a

303 limited proxy is required and given. Notwithstanding this

304 subparagraph, unit owners may vote in person at unit owner

305 meetings. This subparagraph does not limit the use of general

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

307 item or election at any meeting of a timeshare condominium

308 association or a nonresidential condominium association.

309 3. A proxy given is effective only for the specific

310 meeting for which originally given and any lawfully adjourned

311 meetings thereof. A proxy is not valid longer than 90 days after

312 the date of the first meeting for which it was given. Each proxy

313 is revocable at any time at the pleasure of the unit owner

314 executing it.

315 4. A member of the board of administration or a committee

316 may submit in writing his or her agreement or disagreement with

317 any action taken at a meeting that the member did not attend.

318 This agreement or disagreement may not be used as a vote for or

319 against the action taken or to create a quorum.

320 5. A board meeting may be conducted in person or by audio

321 conference or video conference, or both. A board or committee

322 member's participation in a meeting via telephone, real-time

323 audioconferencing or videoconferencing, or similar real-time

324 electronic, audio, or video communication counts toward a

325 quorum, and such member may vote as if physically present. A

326 speaker must be used so that the conversation of such members

327 may be heard by the board or committee members attending in

328 person as well as by any unit owners present at a meeting. The

329 division shall adopt rules pursuant to ss. 120.536 and 120.54

330 governing the requirements for meetings.

331 (c) Board of administration meetings.—In a residential

332 condominium association of more than 10 units, the board of

333 administration shall meet at least once each quarter. At least

334 four times each year, the meeting agenda must include an

335 opportunity for members to ask questions of the board. Meetings

336 of the board of administration at which a quorum of the members

337 is present are open to all unit owners. Members of the board of

338 administration may use e-mail as a means of communication but

339 may not cast a vote on an association matter via e-mail. A unit

340 owner may tape record or videotape the meetings. The right to

341 attend such meetings includes the right to speak at such

342 meetings with reference to all designated agenda items and the

343 right to ask questions relating to reports on the status of

344 construction or repair projects, the status of revenues and

345 expenditures during the current fiscal year, and other issues

346 affecting the condominium. The division shall adopt reasonable

347 rules governing the tape recording and videotaping of the

348 meeting. The association may adopt written reasonable rules

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

350 statements.

351 1. Adequate notice of all board meetings, which must

352 specifically identify all agenda items, must be posted

353 conspicuously on the condominium property at least 48 continuous

354 hours before the meeting except in an emergency. If the board

355 meeting is to be conducted via audio conference or video

356 conference, or both, the notice must state that such meeting

357 will be via audio conference or video conference, or both, and

358 must include a hyperlink and a conference telephone number for

359 unit owners to attend the meeting via video conference, as well

360 as the address of the physical location where the unit owners

361 can attend the meeting in person. If the meeting is conducted

362 via audio conference or video conference, or both, it must be

363 recorded and such recording must be maintained as an official

364 record of the association. If 20 percent of the voting interests

365 petition the board to address an item of business, the board,

366 within 60 days after receipt of the petition, must ~~shall~~ place

367 the item on the agenda at its next regular board meeting or at a

368 special meeting called for that purpose. An item not included on

369 the notice may be taken up on an emergency basis by a vote of at

370 least a majority plus one of the board members. Such emergency

371 action must be noticed and ratified at the next regular board

372 meeting. Written notice of a meeting at which a nonemergency

373 special assessment or an amendment to rules regarding unit use

374 will be considered must be mailed, delivered, or electronically

375 transmitted to the unit owners and posted conspicuously on the

376 condominium property at least 14 days before the meeting.

377 Evidence of compliance with this 14-day notice requirement must

378 be made by an affidavit executed by the person providing the

379 notice and filed with the official records of the association.

380 2. Upon notice to the unit owners, the board shall, by

381 duly adopted rule, designate a specific location on the

382 condominium property at which all notices of board meetings must

383 be posted. If there is no condominium property at which notices

384 can be posted, notices must ~~shall~~ be mailed, delivered, or

385 electronically transmitted to each unit owner at least 14 days

386 before the meeting. In lieu of or in addition to the physical

387 posting of the notice on the condominium property, the

388 association may, by reasonable rule, adopt a procedure for

389 conspicuously posting and repeatedly broadcasting the notice and

390 the agenda on a closed-circuit cable television system serving

391 the condominium association. However, if broadcast notice is

392 used in lieu of a notice physically posted on condominium

393 property, the notice and agenda must be broadcast at least four

394 times every broadcast hour of each day that a posted notice is

395 otherwise required under this section. If broadcast notice is

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

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

398 average reader to observe the notice and read and comprehend the

399 entire content of the notice and the agenda. In addition to any

400 of the authorized means of providing notice of a meeting of the

401 board, the association may, by rule, adopt a procedure for

402 conspicuously posting the meeting notice and the agenda on a

403 website serving the condominium association for at least the

404 minimum period of time for which a notice of a meeting is also

405 required to be physically posted on the condominium property.

406 Any rule adopted must ~~shall,~~ in addition to other matters,

407 include a requirement that the association send an electronic

408 notice in the same manner as a notice for a meeting of the

409 members, which must include a hyperlink to the website at which

410 the notice is posted, to unit owners whose e-mail addresses are

411 included in the association's official records.

412 3. Notice of any meeting in which regular or special

413 assessments against unit owners are to be considered must

414 specifically state that assessments will be considered and

415 provide the estimated cost and description of the purposes for

416 such assessments. If an agenda item relates to the approval of a

417 contract for goods or services, a copy of the contract must be

418 provided with the notice and be made available for inspection

419 and copying upon a written request from a unit owner or made

420 available on the association's website or through an application

421 that can be downloaded on a mobile device.

422 4. Meetings of a committee to take final action on behalf

423 of the board or make recommendations to the board regarding the

424 association budget are subject to this paragraph. Meetings of a

425 committee that does not take final action on behalf of the board

426 or make recommendations to the board regarding the association

427 budget are subject to this section, unless those meetings are

428 exempted from this section by the bylaws of the association.

429 5. Notwithstanding any other law, the requirement that

430 board meetings and committee meetings be open to the unit owners

431 does not apply to:

432 a. Meetings between the board or a committee and the

433 association's attorney, with respect to proposed or pending

434 litigation, if the meeting is held for the purpose of seeking or

435 rendering legal advice; or

436 b. Board meetings held for the purpose of discussing

437 personnel matters.

438 (d) Unit owner meetings.—

439 1. An annual meeting of the unit owners must be held at

440 the location provided in the association bylaws and, if the

441 bylaws are silent as to the location, the meeting must be held

442 within 15 miles of the condominium property or within the same

443 county as the condominium property. However, such distance

444 requirement does not apply to an association governing a

445 timeshare condominium. If a unit owner meeting is conducted via

446 audio conference or video conference, or both, a unit owner may

447 vote electronically in the manner provided in s. 718.128.

448 2. Unit owner meetings, including the annual meeting of

449 the unit owners, may be conducted in person or via audio

450 conference or video conference, or both. If the annual meeting

451 of the unit owners is conducted via audio conference or video

452 conference, or both, a quorum of the members of the board of

453 administration must be physically present at the physical

454 location where unit owners can attend the meeting. The location

455 must be provided in the association bylaws and, if the bylaws

456 are silent as to the location, the meeting must be held within

457 15 miles of the condominium property or within the same county

458 as the condominium property. If the unit owner meeting is

459 conducted via audio or video conference, or both, the audio

460 conference or video conference, or both, must be recorded and

461 such recording must be maintained as an official record of the

462 association. The division shall adopt rules pursuant to ss.

463 120.536 and 120.54 governing the requirements for meetings.

464 3. Unless the bylaws provide otherwise, a vacancy on the

465 board caused by the expiration of a director's term must be

466 filled by electing a new board member, and the election must be

467 by secret ballot. An election is not required if the number of

468 vacancies equals or exceeds the number of candidates. For

469 purposes of this paragraph, the term "candidate" means an

470 eligible person who has timely submitted the written notice, as

471 described in sub-subparagraph 4.a., of his or her intention to

472 become a candidate. Except in a timeshare or nonresidential

473 condominium, or if the staggered term of a board member does not

474 expire until a later annual meeting, or if all members' terms

475 would otherwise expire but there are no candidates, the terms of

476 all board members expire at the annual meeting, and such members

477 may stand for reelection unless prohibited by the bylaws. Board

478 members may serve terms longer than 1 year if permitted by the

479 bylaws or articles of incorporation. A board member may not

480 serve more than 8 consecutive years unless approved by an

481 affirmative vote of unit owners representing two-thirds of all

482 votes cast in the election or unless there are not enough

483 eligible candidates to fill the vacancies on the board at the

484 time of the vacancy. Only board service that occurs on or after

485 July 1, 2018, may be used when calculating a board member's term

486 limit. If the number of board members whose terms expire at the

487 annual meeting equals or exceeds the number of candidates, the

488 candidates become members of the board effective upon the

489 adjournment of the annual meeting. Unless the bylaws provide

490 otherwise, any remaining vacancies shall be filled by the

491 affirmative vote of the majority of the directors making up the

492 newly constituted board even if the directors constitute less

493 than a quorum or there is only one director. In a residential

494 condominium association of more than 10 units or in a

495 residential condominium association that does not include

496 timeshare units or timeshare interests, co-owners of a unit may

497 not serve as members of the board of directors at the same time

498 unless they own more than one unit or unless there are not

499 enough eligible candidates to fill the vacancies on the board at

500 the time of the vacancy. A unit owner in a residential

501 condominium desiring to be a candidate for board membership must

502 comply with sub-subparagraph 4.a. and must be eligible to be a

503 candidate to serve on the board of directors at the time of the

504 deadline for submitting a notice of intent to run in order to

505 have his or her name listed as a proper candidate on the ballot

506 or to serve on the board. A person who has been suspended or

507 removed by the division under this chapter, or who is delinquent

508 in the payment of any assessment due to the association, is not

509 eligible to be a candidate for board membership and may not be

510 listed on the ballot. For purposes of this paragraph, a person

511 is delinquent if a payment is not made by the due date as

512 specifically identified in the declaration of condominium,

513 bylaws, or articles of incorporation. If a due date is not

514 specifically identified in the declaration of condominium,

515 bylaws, or articles of incorporation, the due date is the first

516 day of the assessment period. A person who has been convicted of

517 any felony in this state or in a United States District or

518 Territorial Court, or who has been convicted of any offense in

519 another jurisdiction which would be considered a felony if

520 committed in this state, is not eligible for board membership

521 unless such felon's civil rights have been restored for at least

522 5 years as of the date such person seeks election to the board.

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

524 later determined that a board member is ineligible for board

525 membership due to having been convicted of a felony. This

526 subparagraph does not limit the term of a member of the board of

527 a nonresidential or timeshare condominium.

528 4. The bylaws must provide the method of calling meetings

529 of unit owners, including annual meetings. Written notice of an

530 annual meeting must include an agenda; be mailed, hand

531 delivered, or electronically transmitted to each unit owner at

532 least 14 days before the annual meeting; and be posted in a

533 conspicuous place on the condominium property or association

534 property at least 14 continuous days before the annual meeting.

535 Written notice of a meeting other than an annual meeting must

536 include an agenda; be mailed, hand delivered, or electronically

537 transmitted to each unit owner; and be posted in a conspicuous

538 place on the condominium property or association property within

539 the timeframe specified in the bylaws. If the bylaws do not

540 specify a timeframe for written notice of a meeting other than

541 an annual meeting, notice must be provided at least 14

542 continuous days before the meeting. Upon notice to the unit

543 owners, the board shall, by duly adopted rule, designate a

544 specific location on the condominium property or association

545 property at which all notices of unit owner meetings must be

546 posted. This requirement does not apply if there is no

547 condominium property for posting notices. In addition to the

548 physical posting of meeting notices, the association may, by

549 reasonable rule, adopt a procedure for conspicuously posting and

550 repeatedly broadcasting the notice and the agenda on a closed-

551 circuit cable television system serving the condominium

552 association. If broadcast notice is provided, the notice and

553 agenda must be broadcast in a manner and for a sufficient

554 continuous length of time so as to allow an average reader to

555 observe the notice and read and comprehend the entire content of

556 the notice and the agenda. In addition to any of the authorized

557 means of providing notice of a meeting of the board, the

558 association may, by rule, adopt a procedure for conspicuously

559 posting the meeting notice and the agenda on a website serving

560 the condominium association for at least the minimum period of

561 time for which a notice of a meeting is also required to be

562 physically posted on the condominium property. Any rule adopted

563 shall, in addition to other matters, include a requirement that

564 the association send an electronic notice in the same manner as

565 a notice for a meeting of the members, which must include a

566 hyperlink to the website at which the notice is posted, to unit

567 owners whose e-mail addresses are included in the association's

568 official records. Unless a unit owner waives in writing the

569 right to receive notice of the annual meeting, such notice must

570 be hand delivered, mailed, or electronically transmitted to each

571 unit owner. Notice for meetings and notice for all other

572 purposes must be mailed to each unit owner at the address last

573 furnished to the association by the unit owner, or hand

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

575 more than one person, the association must provide notice to the

576 address that the developer identifies for that purpose and

577 thereafter as one or more of the owners of the unit advise the

578 association in writing, or if no address is given or the owners

579 of the unit do not agree, to the address provided on the deed of

580 record. An officer of the association, or the manager or other

581 person providing notice of the association meeting, must provide

582 an affidavit or United States Postal Service certificate of

583 mailing, to be included in the official records of the

584 association affirming that the notice was mailed or hand

585 delivered in accordance with this provision.

586 5. The members of the board of a residential condominium

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

588 may not be used in electing the board in general elections or

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

590 otherwise, unless otherwise provided in this chapter. This

591 subparagraph does not apply to an association governing a

592 timeshare condominium.

593 a. At least 60 days before a scheduled election, the

594 association shall mail, deliver, or electronically transmit, by

595 separate association mailing or included in another association

596 mailing, delivery, or transmission, including regularly

597 published newsletters, to each unit owner entitled to a vote, a

598 first notice of the date of the election. A unit owner or other

599 eligible person desiring to be a candidate for the board must

600 give written notice of his or her intent to be a candidate to

601 the association at least 40 days before a scheduled election.

602 Together with the written notice and agenda as set forth in

603 subparagraph 3., the association shall mail, deliver, or

604 electronically transmit a second notice of the election to all

605 unit owners entitled to vote, together with a ballot that lists

606 all candidates not less than 14 days or more than 34 days before

607 the date of the election. Upon request of a candidate, an

608 information sheet, no larger than 8 1/2 inches by 11 inches,

609 which must be furnished by the candidate at least 35 days before

610 the election, must be included with the mailing, delivery, or

611 transmission of the ballot, with the costs of mailing, delivery,

612 or electronic transmission and copying to be borne by the

613 association. The association is not liable for the contents of

614 the information sheets prepared by the candidates. In order to

615 reduce costs, the association may print or duplicate the

616 information sheets on both sides of the paper. The division

617 shall by rule establish voting procedures consistent with this

618 sub-subparagraph, including rules establishing procedures for

619 giving notice by electronic transmission and rules providing for

620 the secrecy of ballots. Elections are ~~shall be~~ decided by a

621 plurality of ballots cast. There is no quorum requirement;

622 however, at least 20 percent of the eligible voters must cast a

623 ballot in order to have a valid election. A unit owner may not

624 authorize any other person to vote his or her ballot, and any

625 ballots improperly cast are invalid. A unit owner who violates

626 this provision may be fined by the association in accordance

627 with s. 718.303. A unit owner who needs assistance in casting

628 the ballot for the reasons stated in s. 101.051 may obtain such

629 assistance. The regular election must occur on the date of the

630 annual meeting. Notwithstanding this sub-subparagraph, an

631 election is not required unless more candidates file notices of

632 intent to run or are nominated than board vacancies exist.

633 b. A director of a board of an association of a

634 residential condominium shall:

635 (I) Certify in writing to the secretary of the association

636 that he or she has read the association's declaration of

637 condominium, articles of incorporation, bylaws, and current

638 written policies; that he or she will work to uphold such

639 documents and policies to the best of his or her ability; and

640 that he or she will faithfully discharge his or her fiduciary

641 responsibility to the association's members.

642 (II) Submit to the secretary of the association a

643 certificate of having satisfactorily completed the educational

644 curriculum administered by the division or a division-approved

645 condominium education provider. The educational curriculum must

646 be at least 4 hours long and include instruction on milestone

647 inspections, structural integrity reserve studies, elections,

648 recordkeeping, financial literacy and transparency, levying of

649 fines, and notice and meeting requirements.

651 Each newly elected or appointed director must submit to the

652 secretary of the association the written certification and

653 educational certificate within 1 year before being elected or

654 appointed or 90 days after the date of election or appointment.

655 A director of an association of a residential condominium who

656 was elected or appointed before July 1, 2024, must comply with

657 the written certification and educational certificate

658 requirements in this sub-subparagraph by June 30, 2025. The

659 written certification and educational certificate is valid for 7

660 years after the date of issuance and does not have to be

661 resubmitted as long as the director serves on the board without

662 interruption during the 7-year period. A director who is

663 appointed by the developer may satisfy the educational

664 certificate requirement in sub-sub-subparagraph (II) for any

665 subsequent appointment to a board by a developer within 7 years

666 after the date of issuance of the most recent educational

667 certificate, including any interruption of service on a board or

668 appointment to a board in another association within that 7-year

669 period. One year after submission of the most recent written

670 certification and educational certificate, and annually

671 thereafter, a director of an association of a residential

672 condominium must submit to the secretary of the association a

673 certificate of having satisfactorily completed at least 1 hour

674 of continuing education administered by the division, or a

675 division-approved condominium education provider, relating to

676 any recent changes to this chapter and the related

677 administrative rules during the past year. A director of an

678 association of a residential condominium who fails to timely

679 file the written certification and educational certificate is

680 suspended from service on the board until he or she complies

681 with this sub-subparagraph. The board may temporarily fill the

682 vacancy during the period of suspension. The secretary shall

683 cause the association to retain a director's written

684 certification and educational certificate for inspection by the

685 members for 7 years after a director's election or the duration

686 of the director's uninterrupted tenure, whichever is longer.

687 Failure to have such written certification and educational

688 certificate on file does not affect the validity of any board

689 action.

690 c. Any challenge to the election process must be commenced

691 within 60 days after the election results are announced.

692 6. Any approval by unit owners called for by this chapter

693 or the applicable declaration or bylaws, including, but not

694 limited to, the approval requirement in s. 718.111(8), must be

695 made at a duly noticed meeting of unit owners and is subject to

696 all requirements of this chapter or the applicable condominium

697 documents relating to unit owner decisionmaking, except that

698 unit owners may take action by written agreement, without

699 meetings, on matters for which action by written agreement

700 without meetings is expressly allowed by the applicable bylaws

701 or declaration or any law that provides for such action.

702 7. Unit owners may waive notice of specific meetings if

703 allowed by the applicable bylaws or declaration or any law.

704 Notice of meetings of the board of administration; unit owner

705 meetings, except unit owner meetings called to recall board

706 members under paragraph (l); and committee meetings may be given

707 by electronic transmission to unit owners who consent to receive

708 notice by electronic transmission. A unit owner who consents to

709 receiving notices by electronic transmission is solely

710 responsible for removing or bypassing filters that block receipt

711 of mass e-mails sent to members on behalf of the association in

712 the course of giving electronic notices.

713 8. Unit owners have the right to participate in meetings

714 of unit owners with reference to all designated agenda items.

715 However, the association may adopt reasonable rules governing

716 the frequency, duration, and manner of unit owner participation.

717 9. A unit owner may tape record or videotape a meeting of

718 the unit owners subject to reasonable rules adopted by the

719 division.

720 10. Unless otherwise provided in the bylaws, any vacancy

721 occurring on the board before the expiration of a term may be

722 filled by the affirmative vote of the majority of the remaining

723 directors, even if the remaining directors constitute less than

724 a quorum, or by the sole remaining director. In the alternative,

725 a board may hold an election to fill the vacancy, in which case

726 the election procedures must conform to sub-subparagraph 4.a.

727 unless the association governs 10 units or fewer and has opted

728 out of the statutory election process, in which case the bylaws

729 of the association control. Unless otherwise provided in the

730 bylaws, a board member appointed or elected under this section

731 shall fill the vacancy for the unexpired term of the seat being

732 filled. Filling vacancies created by recall is governed by

733 paragraph (l) and rules adopted by the division.

734 11. This chapter does not limit the use of general or

735 limited proxies, require the use of general or limited proxies,

736 or require the use of a written ballot or voting machine for any

737 agenda item or election at any meeting of a timeshare

738 condominium association or nonresidential condominium

739 association.

741 Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an

742 association of 10 or fewer units may, by affirmative vote of a

743 majority of the total voting interests, provide for different

744 voting and election procedures in its bylaws, which may be by a

745 proxy specifically delineating the different voting and election

746 procedures. The different voting and election procedures may

747 provide for elections to be conducted by limited or general

748 proxy.

749 (e) Budget meeting.—

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

751 association will be considered by the board or unit owners is

752 ~~shall be~~ open to all unit owners. A meeting of the board or unit

753 owners at which a proposed annual association budget will be

754 considered may be conducted by audio conference or video

755 conference, or both. The division shall adopt rules pursuant to

756 ss. 120.536 and 120.54 governing the requirements for such

757 meetings. A sound transmitting device must be used so that the

758 conversation of such members may be heard by the board or

759 committee members attending in person, as well as any unit

760 owners present at the meeting. At least 14 days before such a

761 meeting, the board shall hand deliver to each unit owner, mail

762 to each unit owner at the address last furnished to the

763 association by the unit owner, or electronically transmit to the

764 location furnished by the unit owner for that purpose a notice

765 of such meeting and a copy of the proposed annual budget. An

766 officer or a manager of the association, or other person

767 providing notice of such meeting, shall execute an affidavit

768 evidencing compliance with such notice requirement, and such

769 affidavit shall be filed among the official records of the

770 association.

771 2.a. If a board proposes in any fiscal year an annual

772 budget which requires assessments against unit owners which

773 exceed 115 percent of assessments for the preceding fiscal year,

774 the board must ~~shall~~ simultaneously propose a substitute budget

775 that does not include any discretionary expenditures that are

776 not required to be in the budget. The substitute budget must be

777 proposed at the budget meeting before the adoption of the annual

778 budget. At least 14 days before such budget meeting in which a

779 substitute budget will be proposed, the board shall hand deliver

780 to each unit owner, or mail to each unit owner at the address

781 last furnished to the association, a notice of the meeting. An

782 officer or manager of the association, or other person providing

783 notice of such meeting shall execute an affidavit evidencing

784 compliance with this notice requirement, and such affidavit must

785 ~~shall~~ be filed among the official records of the association.

786 Unit owners shall ~~must~~ consider and may adopt a substitute

787 budget at the meeting. A substitute budget is adopted if

788 approved by a majority of all voting interests unless the bylaws

789 require adoption by a greater percentage of voting interests. If

790 a substitute budget is not adopted, the annual budget previously

791 initially proposed by the board may be adopted.

792 b. Any determination of whether assessments exceed 115

793 percent of assessments for the previous ~~prior~~ fiscal year must

794 ~~shall~~ exclude any authorized provision for required reserves for

795 repair or replacement of the condominium property; anticipated

796 expenses of the association which the board does not expect to

797 be incurred on a regular or annual basis for the repair,

798 maintenance, or replacement of the items listed in paragraph

799 (g); and insurance premiums.

800 c. If the developer controls the board, assessments may

801 not exceed 115 percent of assessments for the prior fiscal year

802 unless approved by a majority of all voting interests.

803 Section 4. Paragraph (a) of subsection (1) of section

804 718.1265, Florida Statutes, is amended to read:

805 718.1265 Association emergency powers.—

806 (1) To the extent allowed by law, unless specifically

807 prohibited by the declaration of condominium, the articles, or

808 the bylaws of an association, and consistent with s. 617.0830,

809 the board of administration, in response to damage or injury

810 caused by or anticipated in connection with an emergency, as

811 defined in s. 252.34(4), for which a state of emergency is

812 declared pursuant to s. 252.36 in the locale in which the

813 condominium is located, may exercise the following powers:

814 (a) Conduct board meetings, committee meetings, elections,

815 and membership meetings, in whole or in part, by telephone,

816 real-time audioconferencing or videoconferencing, or similar

817 real-time electronic, audio, or video communication with notice

818 given as is practicable. Such notice may be given in any

819 practicable manner, including publication, radio, United States

820 mail, the Internet, electronic transmission, public service

821 announcements, and conspicuous posting on the condominium

822 property or association property or any other means the board

823 deems reasonable under the circumstances. Notice of decisions

824 also may be communicated as provided in this paragraph.

825 Section 5. Subsections (3) through (29) of section

826 719.103, Florida Statutes, are renumbered as subsections (4)

827 through (30), respectively, and a new subsection (3) is added to

828 that section, to read:

829 719.103 Definitions.—As used in this chapter:

830 (3) "Audio conference" means a real-time, audio-based

831 meeting between two or more people in different locations using

832 an audio-enabled device.

833 Section 6. Paragraph (b) of subsection (1) of section

834 719.106, Florida Statutes, is amended to read:

835 719.106 Bylaws; cooperative ownership.—

836 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative

837 documents shall provide for the following, and if they do not,

838 they shall be deemed to include the following:

839 (b) Quorum; voting requirements; proxies.—

840 1. Unless otherwise provided in the bylaws, the percentage

841 of voting interests required to constitute a quorum at a meeting

842 of the members shall be a majority of voting interests, and

843 decisions shall be made by owners of a majority of the voting

844 interests. Unless otherwise provided in this chapter, or in the

845 articles of incorporation, bylaws, or other cooperative

846 documents, and except as provided in subparagraph (d)1.,

847 decisions shall be made by owners of a majority of the voting

848 interests represented at a meeting at which a quorum is present.

849 2. Except as specifically otherwise provided herein, after

850 January 1, 1992, unit owners may not vote by general proxy, but

851 may vote by limited proxies substantially conforming to a

852 limited proxy form adopted by the division. Limited proxies and

853 general proxies may be used to establish a quorum. Limited

854 proxies shall be used for votes taken to waive or reduce

855 reserves in accordance with subparagraph (j)2., for votes taken

856 to waive the financial reporting requirements of s.

857 719.104(4)(b), for votes taken to amend the articles of

858 incorporation or bylaws pursuant to this section, and for any

859 other matter for which this chapter requires or permits a vote

860 of the unit owners. Except as provided in paragraph (d), after

861 January 1, 1992, a no proxy, limited or general, may not ~~shall~~

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

863 used for other matters for which limited proxies are not

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

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

866 given. Notwithstanding ~~the provisions of~~ this section, unit

867 owners may vote in person at unit owner meetings. This section

868 does not ~~Nothing contained herein shall~~ limit the use of general

869 proxies or require the use of limited proxies or require the use

870 of limited proxies for any agenda item or election at any

871 meeting of a timeshare cooperative.

872 3. Any proxy given is ~~shall be~~ effective only for the

873 specific meeting for which originally given and any lawfully

874 adjourned meetings thereof. In no event shall any proxy be valid

875 for a period longer than 90 days after the date of the first

876 meeting for which it was given. Every proxy is ~~shall be~~

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

878 executing it.

879 4. A member of the board of administration or a committee

880 may submit in writing his or her agreement or disagreement with

881 any action taken at a meeting that the member did not attend.

882 This agreement or disagreement may not be used as a vote for or

883 against the action taken and may not be used for the purposes of

884 creating a quorum.

885 5. A board member or committee member participating in a

886 meeting via telephone, real-time audioconferencing or

887 videoconferencing, or similar real-time electronic, audio, or

888 video communication counts toward a quorum, and such member may

889 vote as if physically present. A speaker must be used so that

890 the conversation of such members may be heard by the board or

891 committee members attending in person, as well as by any unit

892 owners present at a meeting.

893 Section 7. Paragraph (a) of subsection (1) of section

894 719.128, Florida Statutes, is amended to read:

895 719.128 Association emergency powers.—

896 (1) To the extent allowed by law, unless specifically

897 prohibited by the cooperative documents, and consistent with s.

898 617.0830, the board of administration, in response to damage or

899 injury caused by or anticipated in connection with an emergency,

900 as defined in s. 252.34(4), for which a state of emergency is

901 declared pursuant to s. 252.36 in the area encompassed by the

902 cooperative, may exercise the following powers:

903 (a) Conduct board meetings, committee meetings, elections,

904 or membership meetings, in whole or in part, by telephone, real-

905 time audioconferencing or videoconferencing, or similar real-

906 time electronic, audio, or video communication after notice of

907 the meetings and board decisions is provided in as practicable a

908 manner as possible, including via publication, radio, United

909 States mail, the Internet, electronic transmission, public

910 service announcements, conspicuous posting on the cooperative

911 property, or any other means the board deems appropriate under

912 the circumstances. Notice of decisions may also be communicated

913 as provided in this paragraph.

914 Section 8. Subsections (2) through (13) of section 720.301, Florida Statutes, are renumbered as subsections (3)

916 through (14), respectively, and a new subsection (2) is added to

917 that section, to read:

918 720.301 Definitions.—As used in this chapter, the term:

919 (2) "Audio conference" means a real-time, audio-based

920 meeting between two or more people in different locations using

921 an audio-enabled device.

922 Section 9. Paragraph (a) of subsection (1) of section

923 720.316, Florida Statutes, is amended to read:

924 720.316 Association emergency powers.—

925 (1) To the extent allowed by law, unless specifically

926 prohibited by the declaration or other recorded governing

927 documents, and consistent with s. 617.0830, the board of

928 directors, in response to damage or injury caused by or

929 anticipated in connection with an emergency, as defined in s.

930 252.34(4), for which a state of emergency is declared pursuant

931 to s. 252.36 in the area encompassed by the association, may

932 exercise the following powers:

933 (a) Conduct board meetings, committee meetings, elections,

934 or membership meetings, in whole or in part, by telephone, real-

935 time audioconferencing or videoconferencing, or similar real-

936 time electronic, audio, or video communication after notice of

937 the meetings and board decisions is provided in as practicable a

938 manner as possible, including via publication, radio, United

939 States mail, the Internet, electronic transmission, public

940 service announcements, conspicuous posting on the common area,

941 or any other means the board deems appropriate under the

942 circumstances. Notice of decisions may also be communicated as

943 provided in this paragraph.

944 Section 10. Paragraph (a) of subsection (1) of section

945 718.501, Florida Statutes, is amended, and paragraph (u) of that

946 subsection is reenacted, to read:

947 718.501 Authority, responsibility, and duties of Division

948 of Florida Condominiums, Timeshares, and Mobile Homes.—

949 (1) The division may enforce and ensure compliance with

950 this chapter and rules relating to the development,

951 construction, sale, lease, ownership, operation, and management

952 of residential condominium units and complaints. In performing

953 its duties, the division has complete jurisdiction to

954 investigate complaints and enforce compliance with respect to

955 associations that are still under developer control or the

956 control of a bulk assignee or bulk buyer pursuant to part VII of

957 this chapter and complaints against developers, bulk assignees,

958 or bulk buyers involving improper turnover or failure to

959 turnover, pursuant to s. 718.301. However, after turnover has

960 occurred, the division has jurisdiction to review records and

961 investigate complaints related only to:

962 (a)1. Procedural aspects and records relating to financial

963 issues, including annual financial reporting under s.

964 718.111(13); assessments for common expenses, fines, and

965 commingling of reserve and operating funds under s. 718.111(14);

966 use of debit cards for unintended purposes under s. 718.111(15);

967 the annual operating budget and the allocation of reserve funds

968 under s. 718.112(2)(f); financial records under s.

969 718.111(12)(a)11.; and any other record necessary to determine

970 the revenues and expenses of the association.

971 2. Elections, including election and voting requirements

972 under s. 718.112(2)(b) and (d), recall of board members under s.

973 718.112(2)(l), electronic voting under s. 718.128, and elections

974 that occur during an emergency under s. 718.1265(1)(a).

975 3. The maintenance of and unit owner access to association

976 records under s. 718.111(12), including, but not limited to,

977 audio or video recordings.

978 4. The procedural aspects of meetings, including unit

979 owner meetings, quorums, voting requirements, proxies, board of

980 administration meetings, and budget meetings under s.

981 718.112(2).

982 5. The disclosure of conflicts of interest under ss.

983 718.111(1)(a) and 718.3027, including limitations contained in

984 s. 718.111(3)(f).

985 6. The removal of a board director or officer under ss.

986 718.111(1)(a) and (15) and 718.112(2)(p) and (q).

987 7. The procedural completion of structural integrity

988 reserve studies under s. 718.112(2)(g) and the milestone

989 inspections under s. 553.899.

990 8. Completion of repairs required by a milestone

991 inspection under s. 553.899.

992 9. Any written inquiries by unit owners to the association

993 relating to such matters, including written inquiries under s.

994 718.112(2)(a)2.

995 10. The requirement for associations to maintain an

996 insurance policy or fidelity bonding for all persons who control

997 or disperse funds of the association under s. 718.111(11)(h).

998 11. Board member education requirements under s.

999 718.112(2)(d)5.b.

1000 12. Reporting requirements for structural integrity

1001 reserve studies under subsection (3) and under s.

1002 718.112(2)(g)12.

1003 (u) If the division receives a complaint regarding access

1004 to official records on the association's website or through an

1005 application that can be downloaded on a mobile device under s.

1006 718.111(12)(g), the division may request access to the

1007 association's website or application and investigate. The

1008 division may adopt rules to carry out this paragraph.

1009 Section 11. Paragraph (a) of subsection (1) of section

1010 336.125, Florida Statutes, is amended to read:

1011 336.125 Closing and abandonment of roads; optional

1012 conveyance to homeowners' association; traffic control

1013 jurisdiction.—

1014 (1)(a) In addition to the authority provided in s. 336.12,

1015 the governing body of the county may abandon the roads and

1016 rights-of-way dedicated in a recorded residential subdivision

1017 plat and simultaneously convey the county's interest in such

1018 roads, rights-of-way, and appurtenant drainage facilities to a

1019 homeowners' association for the subdivision, if the following

1020 conditions have been met:

1021 1. The homeowners' association has requested the

1022 abandonment and conveyance in writing for the purpose of

1023 converting the subdivision to a gated neighborhood with

1024 restricted public access.

1025 2. No fewer than four-fifths of the owners of record of

1026 property located in the subdivision have consented in writing to

1027 the abandonment and simultaneous conveyance to the homeowners'

1028 association.

1029 3. The homeowners' association is both a corporation not

1030 for profit organized and in good standing under chapter 617, and

1031 a "homeowners' association" as defined in s. 720.301 s.

1032 ~~720.301(9)~~ with the power to levy and collect assessments for

1033 routine and periodic major maintenance and operation of street

1034 lighting, drainage, sidewalks, and pavement in the subdivision.

1035 4. The homeowners' association has entered into and

1036 executed such agreements, covenants, warranties, and other

1037 instruments; has provided, or has provided assurance of, such

1038 funds, reserve funds, and funding sources; and has satisfied

1039 such other requirements and conditions as may be established or

1040 imposed by the county with respect to the ongoing operation,

1041 maintenance, and repair and the periodic reconstruction or

1042 replacement of the roads, drainage, street lighting, and

1043 sidewalks in the subdivision after the abandonment by the

1044 county.

1045 Section 12. Subsection (2) of section 558.002, Florida

1046 Statutes, is amended to read:

1047 558.002 Definitions.—As used in this chapter, the term:

1048 (2) "Association" has the same meaning as in s. 718.103,

1049 s. 719.103, s. 720.301 ~~s. 719.103(2), s. 720.301(9),~~ or s.

1050 723.075.

1051 Section 13. Section 617.0725, Florida Statutes, is amended

1052 to read:

1053 617.0725 Quorum.—An amendment to the articles of

1054 incorporation or the bylaws which adds, changes, or deletes a

1055 greater or lesser quorum or voting requirement must meet the

1056 same quorum or voting requirement and be adopted by the same

1057 vote and voting groups required to take action under the quorum

1058 and voting requirements then in effect or proposed to be

1059 adopted, whichever is greater. This section does not apply to

1060 any corporation that is an association, as defined in s.

1061 720.301(10) ~~s. 720.301(9),~~ or any corporation regulated under

1062 chapter 718 or chapter 719.

1063 Section 14. Paragraph (b) of subsection (1) of section

1064 718.116, Florida Statutes, is amended to read:

1065 718.116 Assessments; liability; lien and priority;

1066 interest; collection.—

1067 (1)

1068 (b)1. The liability of a first mortgagee or its successor

1069 or assignees who acquire title to a unit by foreclosure or by

1070 deed in lieu of foreclosure for the unpaid assessments that

1071 became due before the mortgagee's acquisition of title is

1072 limited to the lesser of:

1073 a. The unit's unpaid common expenses and regular periodic

1074 assessments which accrued or came due during the 12 months

1075 immediately preceding the acquisition of title and for which

1076 payment in full has not been received by the association; or

1077 b. One percent of the original mortgage debt. The

1078 provisions of this paragraph apply only if the first mortgagee

1079 joined the association as a defendant in the foreclosure action.

1080 Joinder of the association is not required if, on the date the

1081 complaint is filed, the association was dissolved or did not

1082 maintain an office or agent for service of process at a location

1083 which was known to or reasonably discoverable by the mortgagee.

1084 2. An association, or its successor or assignee, that

1085 acquires title to a unit through the foreclosure of its lien for

1086 assessments is not liable for any unpaid assessments, late fees,

1087 interest, or reasonable attorney's fees and costs that came due

1088 before the association's acquisition of title in favor of any

1089 other association, as defined in s. 718.103 or s. 720.301(10) s.

1090 ~~720.301(9),~~ which holds a superior lien interest on the unit.

1091 This subparagraph is intended to clarify existing law.

1092 Section 15. Paragraph (d) of subsection (1) and paragraph

1093 (e) of subsection (2) of section 718.503, Florida Statutes, are

1094 amended to read:

1095 718.503 Developer disclosure prior to sale; nondeveloper

1096 unit owner disclosure prior to sale; voidability.—

1097 (1) DEVELOPER DISCLOSURE.—

1098 (d) Milestone inspection, turnover inspection report, or

1099 structural integrity reserve study.—If the association is

1100 required to have completed a milestone inspection as described

1101 in s. 553.899, a turnover inspection report for a turnover

1102 inspection performed on or after July 1, 2023, or a structural

1103 integrity reserve study, and the association has not completed

1104 the milestone inspection, the turnover inspection report, or the

1105 structural integrity reserve study, each contract entered into

1106 after December 31, 2024, for the sale of a residential unit

1107 shall contain in conspicuous type a statement indicating that

1108 the association is required to have a milestone inspection, a

1109 turnover inspection report, or a structural integrity reserve

1110 study and has not completed such inspection, report, or study,

1111 as appropriate. If the association is not required to have a

1112 milestone inspection as described in s. 553.899 or a structural

1113 integrity reserve study, each contract entered into after

1114 December 31, 2024, for the sale of a residential unit shall

1115 contain in conspicuous type a statement indicating that the

1116 association is not required to have a milestone inspection or a

1117 structural integrity reserve study, as appropriate. If the

1118 association has completed a milestone inspection as described in

1119 s. 553.899, a turnover inspection report for a turnover

1120 inspection performed on or after July 1, 2023, or a structural

1121 integrity reserve study, each contract entered into after

1122 December 31, 2024, for the sale of a residential unit shall

1123 contain in conspicuous type:

1124 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES

1125 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR-

1126 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED

1127 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF

1128 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION

1129 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A

1130 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY

1131 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(27) ~~718.103(26)~~ AND

1132 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15

1133 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE

1134 EXECUTION OF THIS CONTRACT; and

1135 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY

1136 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION TO

1137 CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL

1138 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE

1139 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR-

1140 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED

1141 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF

1142 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION

1143 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A

1144 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY

1145 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(27) ~~718.103(26)~~ AND

1146 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED

1147 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER

1148 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15

1149 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER

1150 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED

1151 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN

1152 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER

1153 INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),

1154 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT

1155 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS

1156 718.103(27) ~~718.103(26)~~ AND 718.112(2)(g), FLORIDA STATUTES, IF

1157 REQUESTED IN WRITING. BUYER'S RIGHT TO VOID THIS AGREEMENT SHALL

1158 TERMINATE AT CLOSING.

1160 A contract that does not conform to the requirements of this

1161 paragraph is voidable at the option of the purchaser before

1162 closing.

1163 (2) NONDEVELOPER DISCLOSURE.—

1164 (e) If the association is required to have completed a

1165 milestone inspection as described in s. 553.899, a turnover

1166 inspection report for a turnover inspection performed on or

1167 after July 1, 2023, or a structural integrity reserve study, and

1168 the association has not completed the milestone inspection, the

1169 turnover inspection report, or the structural integrity reserve

1170 study, each contract entered into after December 31, 2024, for

1171 the sale of a residential unit shall contain in conspicuous type

1172 a statement indicating that the association is required to have

1173 a milestone inspection, a turnover inspection report, or a

1174 structural integrity reserve study and has not completed such

1175 inspection, report, or study, as appropriate. If the association

1176 is not required to have a milestone inspection as described in

1177 s. 553.899 or a structural integrity reserve study, each

1178 contract entered into after December 31, 2024, for the sale of a

1179 residential unit shall contain in conspicuous type a statement

1180 indicating that the association is not required to have a

1181 milestone inspection or a structural integrity reserve study, as

1182 appropriate. If the association has completed a milestone

1183 inspection as described in s. 553.899, a turnover inspection

1184 report for a turnover inspection performed on or after July 1,

1185 2023, or a structural integrity reserve study, each contract

1186 entered into after December 31, 2024, for the resale of a

1187 residential unit shall contain in conspicuous type:

1188 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES

1189 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR-

1190 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED

1191 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF

1192 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION

1193 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A

1194 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY

1195 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(27) ~~718.103(26)~~ AND

1196 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 7

1197 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE

1198 EXECUTION OF THIS CONTRACT; and

1199 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY

1200 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION TO

1201 CANCEL WITHIN 7 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL

1202 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE

1203 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR-

1204 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED

1205 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF

1206 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION

1207 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A

1208 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY

1209 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(27) ~~718.103(26)~~ AND

1210 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED

1211 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER

1212 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7

1213 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER

1214 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED

1215 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN

1216 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER

1217 INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),

1218 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT

1219 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS

1220 718.103(27) ~~718.103(26)~~ AND 718.112(2)(g), FLORIDA STATUTES, IF

1221 REQUESTED IN WRITING. BUYER'S RIGHT TO VOID THIS AGREEMENT SHALL

1222 TERMINATE AT CLOSING.

1224 A contract that does not conform to the requirements of this

1225 paragraph is voidable at the option of the purchaser before

1226 closing.

1227 Section 16. Paragraph (d) of subsection (1) and paragraph

1228 (d) of subsection (2) of section 719.503, Florida Statutes, are

1229 amended to read:

1230 719.503 Disclosure prior to sale.—

1231 (1) DEVELOPER DISCLOSURE.—

1232 (d) Milestone inspection, turnover inspection report, or

1233 structural integrity reserve study.—If the association is

1234 required to have completed a milestone inspection as described

1235 in s. 553.899, a turnover inspection report for a turnover

1236 inspection performed on or after July 1, 2023, or a structural

1237 integrity reserve study, and the association has not completed

1238 the milestone inspection, the turnover inspection report, or the

1239 structural integrity reserve study, each contract entered into

1240 after December 31, 2024, for the sale of a residential unit

1241 shall contain in conspicuous type a statement indicating that

1242 the association is required to have a milestone inspection, a

1243 turnover inspection report, or a structural integrity reserve

1244 study and has not completed such inspection, report, or study,

1245 as appropriate. If the association is not required to have a

1246 milestone inspection as described in s. 553.899 or a structural

1247 integrity reserve study, each contract entered into after

1248 December 31, 2024, for the sale of a residential unit shall

1249 contain in conspicuous type a statement indicating that the

1250 association is not required to have a milestone inspection or a

1251 structural integrity reserve study, as appropriate. If the

1252 association has completed a milestone inspection as described in

1253 s. 553.899, a turnover inspection report for a turnover

1254 inspection performed on or after July 1, 2023, or a structural

1255 integrity reserve study, each contract entered into after

1256 December 31, 2024, for the sale of a residential unit shall

1257 contain in conspicuous type:

1258 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES

1259 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR-

1260 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED

1261 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF

1262 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION

1263 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A

1264 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY

1265 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(25) ~~719.103(24)~~ AND

1266 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15

1267 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE

1268 EXECUTION OF THIS CONTRACT; and

1269 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY

1270 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION TO

1271 CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL

1272 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE

1273 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR-

1274 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED

1275 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF

1276 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION

1277 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A

1278 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY

1279 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(25) ~~719.103(24)~~ AND

1280 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED

1281 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER

1282 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15

1283 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER

1284 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED

1285 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN

1286 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER

1287 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),

1288 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT

1289 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS

1290 719.103(25) ~~719.103(24)~~ AND 719.106(1)(k), FLORIDA STATUTES, IF

1291 REQUESTED IN WRITING. BUYER'S RIGHT TO VOID THIS AGREEMENT SHALL

1292 TERMINATE AT CLOSING.

1294 A contract that does not conform to the requirements of this

1295 paragraph is voidable at the option of the purchaser before

1296 closing.

1297 (2) NONDEVELOPER DISCLOSURE.—

1298 (d) If the association is required to have completed a

1299 milestone inspection as described in s. 553.899, a turnover

1300 inspection report for a turnover inspection performed on or

1301 after July 1, 2023, or a structural integrity reserve study, and

1302 the association has not completed the milestone inspection, the

1303 turnover inspection report, or the structural integrity reserve

1304 study, each contract entered into after December 31, 2024, for

1305 the sale of a residential unit shall contain in conspicuous type

1306 a statement indicating that the association is required to have

1307 a milestone inspection, a turnover inspection report, or a

1308 structural integrity reserve study and has not completed such

1309 inspection, report, or study, as appropriate. If the association

1310 is not required to have a milestone inspection as described in

1311 s. 553.899 or a structural integrity reserve study, each

1312 contract entered into after December 31, 2024, for the sale of a

1313 residential unit shall contain in conspicuous type a statement

1314 indicating that the association is not required to have a

1315 milestone inspection or a structural integrity reserve study, as

1316 appropriate. If the association has completed a milestone

1317 inspection as described in s. 553.899, a turnover inspection

1318 report for a turnover inspection performed on or after July 1,

1319 2023, or a structural integrity reserve study, each contract

1320 entered into after December 31, 2024, for the resale of a

1321 residential unit shall contain in conspicuous type:

1322 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES

1323 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR-

1324 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED

1325 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF

1326 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION

1327 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A

1328 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY

1329 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(25) ~~719.103(24)~~ AND

1330 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 7

1331 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE

1332 EXECUTION OF THIS CONTRACT; and

1333 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY

1334 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION TO

1335 CANCEL WITHIN 7 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL

1336 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE

1337 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR-

1338 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED

1339 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF

1340 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION

1341 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A

1342 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY

1343 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(25) ~~719.103(24)~~ AND

1344 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED

1345 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER

1346 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7

1347 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER

1348 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED

1349 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN

1350 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER

1351 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),

1352 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT

1353 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS

1354 719.103(25) ~~719.103(24)~~ AND 719.106(1)(k), FLORIDA STATUTES, IF

1355 REQUESTED IN WRITING. BUYER'S RIGHT TO VOID THIS AGREEMENT SHALL

1356 TERMINATE AT CLOSING.

1358 A contract that does not conform to the requirements of this

1359 paragraph is voidable at the option of the purchaser before

1360 closing.

1361 Section 17. Paragraph (d) of subsection (2) of section

1362 720.3085, Florida Statutes, is amended to read:

1363 720.3085 Payment for assessments; lien claims.—

1364 (2)

1365 (d) An association, or its successor or assignee, that

1366 acquires title to a parcel through the foreclosure of its lien

1367 for assessments is not liable for any unpaid assessments, late

1368 fees, interest, or reasonable attorney's fees and costs that

1369 came due before the association's acquisition of title in favor

1370 of any other association, as defined in s. 718.103 or s.

1371 720.301(10) ~~s. 720.301(9),~~ which holds a superior lien interest

1372 on the parcel. This paragraph is intended to clarify existing

1373 law.

1374 Section 18. For the purpose of incorporating the amendment

1375 made by this act to section 719.106, Florida Statutes, in a

1376 reference thereto, section 723.0791, Florida Statutes, is

1377 reenacted to read:

1378 723.0791 Mobile home cooperative homeowners' associations;

1379 elections.—The provisions of s. 719.106(1)(b) notwithstanding,

1380 the election of board members in a mobile home cooperative

1381 homeowners' association may be carried out in the manner

1382 provided for in the bylaws of the association. A mobile home

1383 cooperative is a residential cooperative consisting of real

1384 property to which 10 or more mobile homes are located or are

1385 affixed.

1386 Section 19. This act shall take effect July 1, 2026.