| 1 |
A bill to be entitled |
| 2 |
An act relating to condominiums;
amending s. 718.111, |
| 3 |
F.S.; removing provision providing for
windstorm insurance |
| 4 |
for condominium associations; requiring
official records |
| 5 |
of the association to be maintained for
at least 5 years |
| 6 |
and to be made available at certain
locations; providing |
| 7 |
civil and criminal sanctions, including
personally against |
| 8 |
any officer, director, or manager who
knowingly or |
| 9 |
intentionally defaces, destroys, or
fails to create or |
| 10 |
maintain accounting records; prohibiting
accessibility to |
| 11 |
certain personal identifying information
of unit owners by |
| 12 |
fellow unit owners; restricting a
condominium association |
| 13 |
from waiving a financial report for more
than 2 years; |
| 14 |
amending s. 718.112, F.S.; prohibiting
votes allocated to |
| 15 |
units owned by the association from
being cast by proxy, |
| 16 |
ballot or otherwise, for any purpose;
requiring the board |
| 17 |
to address certain agenda items proposed
by a petition of |
| 18 |
a specified percent of the unit owners;
providing |
| 19 |
requirements for the location of annual
unit owner |
| 20 |
meetings; revising notice procedures;
providing for the |
| 21 |
securing of ballots; revising procedures
relating to the |
| 22 |
filling of a vacancy on the board;
authorizing persons |
| 23 |
acting under a specific power of
attorney to vote on |
| 24 |
behalf of a unit owner; removing a
provision allowing an |
| 25 |
association to provide for different
voting and election |
| 26 |
procedures in its bylaws; requiring the
association to |
| 27 |
prepare an annual budget of estimated
revenues and |
| 28 |
expenses; requiring certain ballot
statements to contain |
| 29 |
certain statements; requiring a vote to
provide for no |
| 30 |
reserves or a percentage of reserves to
be made at annual |
| 31 |
meetings; authorizing the association to
use reserve funds |
| 32 |
for nonscheduled purposes under certain
conditions; |
| 33 |
amending s. 718.113, F.S.; requiring the
board to have the |
| 34 |
condominium buildings periodically
inspected for |
| 35 |
structural and electrical soundness by a
professional |
| 36 |
engineer or professional architect
registered in the |
| 37 |
state; requiring the inspector to
provide a report to the |
| 38 |
association and unit owners; prohibiting
the board from |
| 39 |
adopting rules or regulations impairing
certain rights or |
| 40 |
prohibiting reasonable accommodation for
religious |
| 41 |
practices; creating s. 718.1224, F.S.;
prohibiting certain |
| 42 |
lawsuits arising from unit owners'
appearances and |
| 43 |
presentations before a governmental
entity; providing a |
| 44 |
definition; providing for award of
damages and attorney |
| 45 |
fees; prohibiting associations from
expending association |
| 46 |
funds in prosecuting such a suit against
a unit owner; |
| 47 |
providing an effective date. |
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|
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Be It Enacted by the Legislature of the
State of Florida: |
| 50 |
|
| 51 |
Section 1. Paragraph
(a) of subsection (11), paragraphs |
| 52 |
(a), (b), and (c) of subsection (12),
and subsection (13) of |
| 53 |
section 718.111, Florida Statutes, are
amended to read: |
| 54 |
718.111 The
association.-- |
| 55 |
(11) INSURANCE.--In
order to protect the safety, health, |
| 56 |
and welfare of the people of the State
of Florida and to ensure |
| 57 |
consistency in the provision of
insurance coverage to |
| 58 |
condominiums and their unit owners,
paragraphs (a), (b), and (c) |
| 59 |
are deemed to apply to every residential
condominium in the |
| 60 |
state, regardless of the date of its
declaration of condominium. |
| 61 |
It is the intent of the Legislature to
encourage lower or stable |
| 62 |
insurance premiums for associations
described in this section. |
| 63 |
Therefore, the Legislature requires a
report to be prepared by |
| 64 |
the Office of Insurance Regulation of
the Department of |
| 65 |
Financial Services for publication 18
months from the effective |
| 66 |
date of this act, evaluating premium
increases or decreases for |
| 67 |
associations, unit owner premium
increases or decreases, |
| 68 |
recommended changes to better define
common areas, or any other |
| 69 |
information the Office of Insurance
Regulation deems |
| 70 |
appropriate. |
| 71 |
(a)1. A
unit-owner controlled association operating a |
| 72 |
residential condominium shall use its
best efforts to obtain and |
| 73 |
maintain adequate insurance to protect
the association, the |
| 74 |
association property, the common
elements, and the condominium |
| 75 |
property required to be insured by the
association pursuant to |
| 76 |
paragraph (b). If the association is
developer controlled, the |
| 77 |
association shall exercise due diligence
to obtain and maintain |
| 78 |
such insurance. Failure to obtain and
maintain adequate |
| 79 |
insurance during any period of developer
control shall |
| 80 |
constitute a breach of fiduciary
responsibility by the |
| 81 |
developer-appointed members of the board
of directors of the |
| 82 |
association, unless said members can
show that despite such |
| 83 |
failure, they have exercised due
diligence. The declaration of |
| 84 |
condominium as originally recorded, or
amended pursuant to |
| 85 |
procedures provided therein, may require
that condominium |
| 86 |
property consisting of freestanding
buildings where there is no |
| 87 |
more than one building in or on such
unit need not be insured by |
| 88 |
the association if the declaration
requires the unit owner to |
| 89 |
obtain adequate insurance for the
condominium property. An |
| 90 |
association may also obtain and maintain
liability insurance for |
| 91 |
directors and officers, insurance for
the benefit of association |
| 92 |
employees, and flood insurance for
common elements, association |
| 93 |
property, and units. Adequate insurance,
regardless of any |
| 94 |
requirement in the declaration of
condominium for coverage by |
| 95 |
the association for "full insurable
value," "replacement cost," |
| 96 |
or the like, may include reasonable
deductibles as determined by |
| 97 |
the board based upon available funds or
predetermined assessment |
| 98 |
authority at the time that the insurance
is obtained. |
| 99 |
1. Windstorm
insurance coverage for a group of no fewer |
| 100 |
than three
communities created and operating under this chapter, |
| 101 |
chapter 719, chapter
720, or chapter 721 may be obtained and |
| 102 |
maintained for the
communities if the insurance coverage is |
| 103 |
sufficient to cover
an amount equal to the probable maximum loss |
| 104 |
for the communities
for a 250-year windstorm event. Such |
| 105 |
probable maximum loss
must be determined through the use of a |
| 106 |
competent model that
has been accepted by the Florida Commission |
| 107 |
on Hurricane Loss
Projection Methodology. Such insurance |
| 108 |
coverage is deemed
adequate windstorm insurance for the purposes |
| 109 |
of this section. |
| 110 |
2. An
association or group of associations may self-insure |
| 111 |
against claims against the association,
the association |
| 112 |
property, and the condominium property
required to be insured by |
| 113 |
an association, upon compliance with the
applicable provisions |
| 114 |
of ss. 624.460-624.488, which shall be
considered adequate |
| 115 |
insurance for the purposes of this
section. A copy of each |
| 116 |
policy of insurance in effect shall be
made available for |
| 117 |
inspection by unit owners at reasonable
times. |
| 118 |
(12) OFFICIAL
RECORDS.-- |
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(a) From
the inception of the association, the association |
| 120 |
shall maintain each of the following
items, when applicable, |
| 121 |
which shall constitute the official
records of the association: |
| 122 |
1. A
copy of the plans, permits, warranties, and other |
| 123 |
items provided by the developer pursuant
to s. 718.301(4). |
| 124 |
2. A
photocopy of the recorded declaration of condominium |
| 125 |
of each condominium operated by the
association and of each |
| 126 |
amendment to each declaration. |
| 127 |
3. A
photocopy of the recorded bylaws of the association |
| 128 |
and of each amendment to the bylaws. |
| 129 |
4. A
certified copy of the articles of incorporation of |
| 130 |
the association, or other documents
creating the association, |
| 131 |
and of each amendment thereto. |
| 132 |
5. A
copy of the current rules of the association. |
| 133 |
6. A
book or books which contain the minutes of all |
| 134 |
meetings of the association, of the
board of administration |
| 135 |
directors, and of unit owners,
which minutes shall be retained |
| 136 |
for a period of not less than 7 years. |
| 137 |
7. A
current roster of all unit owners and their mailing |
| 138 |
addresses, unit identifications, voting
certifications, and, if |
| 139 |
known, telephone numbers. The
association shall also maintain |
| 140 |
the electronic mailing addresses and the
numbers designated by |
| 141 |
unit owners for receiving notice sent by
electronic transmission |
| 142 |
of those unit owners consenting to
receive notice by electronic |
| 143 |
transmission. The electronic mailing
addresses and numbers |
| 144 |
provided by unit owners to receive
notice by electronic |
| 145 |
transmission shall be removed from
association records when |
| 146 |
consent to receive notice by electronic
transmission is revoked. |
| 147 |
However, the association is not liable
for an erroneous |
| 148 |
disclosure of the electronic mail
address or the number for |
| 149 |
receiving electronic transmission of
notices. |
| 150 |
8. All
current insurance policies of the association and |
| 151 |
condominiums operated by the
association. |
| 152 |
9. A
current copy of any management agreement, lease, or |
| 153 |
other contract to which the association
is a party or under |
| 154 |
which the association or the unit owners
have an obligation or |
| 155 |
responsibility. |
| 156 |
10. Bills
of sale or transfer for all property owned by |
| 157 |
the association. |
| 158 |
11. Accounting
records for the association and separate |
| 159 |
accounting records for each condominium
which the association |
| 160 |
operates. All accounting records shall
be maintained for a |
| 161 |
period of not less than 7 years. Any
officer, director, or |
| 162 |
manager who knowingly
or intentionally defaces, destroys, or |
| 163 |
fails to create or
maintain accounting records is personally |
| 164 |
subject to a civil
penalty pursuant to s. 718.501(1)(d) and |
| 165 |
appropriate
criminal sanctions. The accounting records shall |
| 166 |
include, but are not limited to: |
| 167 |
a. Accurate,
itemized, and detailed records of all |
| 168 |
receipts and expenditures. |
| 169 |
b. A
current account and a monthly, bimonthly, or |
| 170 |
quarterly statement of the account for
each unit designating the |
| 171 |
name of the unit owner, the due date and
amount of each |
| 172 |
assessment, the amount paid upon the
account, and the balance |
| 173 |
due. |
| 174 |
c. All
audits, reviews, accounting statements, and |
| 175 |
financial reports of the association or
condominium. |
| 176 |
d. All
contracts for work to be performed. Bids for work |
| 177 |
to be performed shall also be considered
official records and |
| 178 |
shall be maintained for a period of 1
year. |
| 179 |
12. Ballots,
sign-in sheets, voting proxies, and all other |
| 180 |
papers relating to voting by unit
owners, which shall be |
| 181 |
maintained for a period of 1 year from
the date of the election, |
| 182 |
vote, or meeting to which the document
relates. |
| 183 |
13. All
rental records, when the association is acting as |
| 184 |
agent for the rental of condominium
units. |
| 185 |
14. A
copy of the current question and answer sheet as |
| 186 |
described by s. 718.504. |
| 187 |
15. All
other records of the association not specifically |
| 188 |
included in the foregoing which are
related to the operation of |
| 189 |
the association. |
| 190 |
(b) The
official records of the association shall be |
| 191 |
maintained within the state for
at least 5 years. The records of |
| 192 |
the association shall be made available
to a unit owner, at a |
| 193 |
location within the
county in which the condominium property is |
| 194 |
located,
within 5 working days after receipt of written request |
| 195 |
by the board or its designee. This
paragraph may be complied |
| 196 |
with by having a copy of the official
records of the association |
| 197 |
available for inspection or copying on
the condominium property |
| 198 |
or association property. |
| 199 |
(c) The
official records of the association are open to |
| 200 |
inspection by any association member or
the authorized |
| 201 |
representative of such member at all
reasonable times. The right |
| 202 |
to inspect the records includes the
right to make or obtain |
| 203 |
copies, at the reasonable expense, if
any, of the association |
| 204 |
member. The association may adopt
reasonable rules regarding the |
| 205 |
frequency, time, location, notice, and
manner of record |
| 206 |
inspections and copying. The failure of
an association to |
| 207 |
provide the records within 10 working
days after receipt of a |
| 208 |
written request shall create a
rebuttable presumption that the |
| 209 |
association willfully failed to comply
with this paragraph. A |
| 210 |
unit owner who is denied access to
official records is entitled |
| 211 |
to the actual damages or minimum damages
for the association's |
| 212 |
willful failure to comply with this
paragraph. The minimum |
| 213 |
damages shall be $50 per calendar day up
to 10 days, the |
| 214 |
calculation to begin on the 11th working
day after receipt of |
| 215 |
the written request. The failure to
permit inspection of the |
| 216 |
association records as provided herein
entitles any person |
| 217 |
prevailing in an enforcement action to
recover reasonable |
| 218 |
attorney's fees from the person in
control of the records who, |
| 219 |
directly or indirectly, knowingly denied
access to the records |
| 220 |
for inspection. Any
officer, director, or manager who knowingly |
| 221 |
or intentionally
defaces, destroys, or fails to create or |
| 222 |
maintain accounting
records is personally subject to a civil |
| 223 |
penalty pursuant to
s. 718.501(1)(d) and appropriate criminal |
| 224 |
sanctions. The
association shall maintain an adequate number of |
| 225 |
copies of the declaration, articles of
incorporation, bylaws, |
| 226 |
and rules, and all amendments to each of
the foregoing, as well |
| 227 |
as the question and answer sheet
provided for in s. 718.504 and |
| 228 |
year-end financial information required
in this section on the |
| 229 |
condominium property to ensure their
availability to unit owners |
| 230 |
and prospective purchasers, and may
charge its actual costs for |
| 231 |
preparing and furnishing these documents
to those requesting the |
| 232 |
same. Notwithstanding the provisions of
this paragraph, the |
| 233 |
following records shall not be
accessible to unit owners: |
| 234 |
1. Any
record protected by the lawyer-client privilege as |
| 235 |
described in s. 90.502; and any record
protected by the work- |
| 236 |
product privilege, including any record
prepared by an |
| 237 |
association attorney or prepared at the
attorney's express |
| 238 |
direction; which reflects a mental
impression, conclusion, |
| 239 |
litigation strategy, or legal theory of
the attorney or the |
| 240 |
association, and which was prepared
exclusively for civil or |
| 241 |
criminal litigation or for adversarial
administrative |
| 242 |
proceedings, or which was prepared in
anticipation of imminent |
| 243 |
civil or criminal litigation or imminent
adversarial |
| 244 |
administrative proceedings until the
conclusion of the |
| 245 |
litigation or adversarial administrative
proceedings. |
| 246 |
2. Information
obtained by an association in connection |
| 247 |
with the approval of the lease, sale, or
other transfer of a |
| 248 |
unit. |
| 249 |
3. Medical
records of unit owners. |
| 250 |
4. Social
security numbers, driver's license numbers, |
| 251 |
credit card numbers,
and other personal identifying information |
| 252 |
of unit owners,
occupants, or tenants. |
| 253 |
(13) FINANCIAL
REPORTING.--Within 90 days after the end of |
| 254 |
the fiscal year, or annually on a date
provided in the bylaws, |
| 255 |
the association shall prepare and
complete, or contract for the |
| 256 |
preparation and completion of, a
financial report for the |
| 257 |
preceding fiscal year. Within 21 days
after the final financial |
| 258 |
report is completed by the association
or received from the |
| 259 |
third party, but not later than 120 days
after the end of the |
| 260 |
fiscal year or other date as provided in
the bylaws, the |
| 261 |
association shall mail to each unit
owner at the address last |
| 262 |
furnished to the association by the unit
owner, or hand deliver |
| 263 |
to each unit owner, a copy of the
financial report or a notice |
| 264 |
that a copy of the financial report will
be mailed or hand |
| 265 |
delivered to the unit owner, without
charge, upon receipt of a |
| 266 |
written request from the unit owner. The
division shall adopt |
| 267 |
rules setting forth uniform accounting
principles and standards |
| 268 |
to be used by all associations and shall
adopt rules addressing |
| 269 |
financial reporting requirements for
multicondominium |
| 270 |
associations. In adopting such rules,
the division shall |
| 271 |
consider the number of members and
annual revenues of an |
| 272 |
association. Financial reports shall be
prepared as follows: |
| 273 |
(a) An
association that meets the criteria of this |
| 274 |
paragraph shall prepare or cause to be
prepared a complete set |
| 275 |
of financial statements in accordance
with generally accepted |
| 276 |
accounting principles. The financial
statements shall be based |
| 277 |
upon the association's total annual
revenues, as follows: |
| 278 |
1. An
association with total annual revenues of $100,000 |
| 279 |
or more, but less than $200,000, shall
prepare compiled |
| 280 |
financial statements. |
| 281 |
2. An
association with total annual revenues of at least |
| 282 |
$200,000, but less than $400,000, shall
prepare reviewed |
| 283 |
financial statements. |
| 284 |
3. An
association with total annual revenues of $400,000 |
| 285 |
or more shall prepare audited financial
statements. |
| 286 |
(b)1. An
association with total annual revenues of less |
| 287 |
than $100,000 shall prepare a report of
cash receipts and |
| 288 |
expenditures. |
| 289 |
2. An
association which operates less than 50 units, |
| 290 |
regardless of the association's annual
revenues, shall prepare a |
| 291 |
report of cash receipts and expenditures
in lieu of financial |
| 292 |
statements required by paragraph (a). |
| 293 |
3. A
report of cash receipts and disbursements must |
| 294 |
disclose the amount of receipts by
accounts and receipt |
| 295 |
classifications and the amount of
expenses by accounts and |
| 296 |
expense classifications, including, but
not limited to, the |
| 297 |
following, as applicable: costs for
security, professional and |
| 298 |
management fees and expenses, taxes,
costs for recreation |
| 299 |
facilities, expenses for refuse
collection and utility services, |
| 300 |
expenses for lawn care, costs for
building maintenance and |
| 301 |
repair, insurance costs, administration
and salary expenses, and |
| 302 |
reserves accumulated and expended for
capital expenditures, |
| 303 |
deferred maintenance, and any other
category for which the |
| 304 |
association maintains reserves. |
| 305 |
(c) An
association may prepare or cause to be prepared, |
| 306 |
without a meeting of or approval by the
unit owners: |
| 307 |
1. Compiled,
reviewed, or audited financial statements, if |
| 308 |
the association is required to prepare a
report of cash receipts |
| 309 |
and expenditures; |
| 310 |
2. Reviewed
or audited financial statements, if the |
| 311 |
association is required to prepare
compiled financial |
| 312 |
statements; or |
| 313 |
3. Audited
financial statements if the association is |
| 314 |
required to prepare reviewed financial
statements. |
| 315 |
(d) If
approved by a majority of the voting interests |
| 316 |
present at a properly called meeting of
the association, an |
| 317 |
association may prepare or cause to be
prepared: |
| 318 |
1. A
report of cash receipts and expenditures in lieu of a |
| 319 |
compiled, reviewed, or audited financial
statement; |
| 320 |
2. A
report of cash receipts and expenditures or a |
| 321 |
compiled financial statement in lieu of
a reviewed or audited |
| 322 |
financial statement; or |
| 323 |
3. A
report of cash receipts and expenditures, a compiled |
| 324 |
financial statement, or a reviewed
financial statement in lieu |
| 325 |
of an audited financial statement. |
| 326 |
|
| 327 |
Such meeting and approval must occur
prior to the end of the |
| 328 |
fiscal year and is effective only for
the fiscal year in which |
| 329 |
the vote is taken. With respect to an
association to which the |
| 330 |
developer has not turned over control of
the association, all |
| 331 |
unit owners, including the developer,
may vote on issues related |
| 332 |
to the preparation of financial reports
for the first 2 fiscal |
| 333 |
years of the association's operation,
beginning with the fiscal |
| 334 |
year in which the declaration is
recorded. Thereafter, all unit |
| 335 |
owners except the developer may vote on
such issues until |
| 336 |
control is turned over to the
association by the developer. An |
| 337 |
association or board
of administration may not waive the |
| 338 |
financial reporting
requirements of this section for more than 2 |
| 339 |
consecutive years. |
| 340 |
Section 2. Subsection
(2) of section 718.112, Florida |
| 341 |
Statutes, is amended to read: |
| 342 |
718.112 Bylaws.-- |
| 343 |
(2) REQUIRED
PROVISIONS.--The bylaws of the association |
| 344 |
shall provide for the following and, if
they do not do so, shall |
| 345 |
be deemed to include the following: |
| 346 |
(a) Administration.-- |
| 347 |
1. The
form of administration of the association shall be |
| 348 |
described indicating the title of the
officers and board of |
| 349 |
administration and specifying the
powers, duties, manner of |
| 350 |
selection and removal, and compensation,
if any, of officers and |
| 351 |
boards. In the absence of such a
provision, the board of |
| 352 |
administration shall be composed of five
members, except in the |
| 353 |
case of a condominium which has five or
fewer units, in which |
| 354 |
case in a not-for-profit corporation the
board shall consist of |
| 355 |
not fewer than three members. In the
absence of provisions to |
| 356 |
the contrary in the bylaws, the board of
administration shall |
| 357 |
have a president, a secretary, and a
treasurer, who shall |
| 358 |
perform the duties of such officers
customarily performed by |
| 359 |
officers of corporations. Unless
prohibited in the bylaws, the |
| 360 |
board of administration may appoint
other officers and grant |
| 361 |
them the duties it deems appropriate.
Unless otherwise provided |
| 362 |
in the bylaws, the officers shall serve
without compensation and |
| 363 |
at the pleasure of the board of
administration. Unless otherwise |
| 364 |
provided in the bylaws, the members of
the board shall serve |
| 365 |
without compensation. |
| 366 |
2. When
a unit owner files a written inquiry by certified |
| 367 |
mail with the board of administration,
the board shall respond |
| 368 |
in writing to the unit owner within 30
days of receipt of the |
| 369 |
inquiry. The board's response shall
either give a substantive |
| 370 |
response to the inquirer, notify the
inquirer that a legal |
| 371 |
opinion has been requested, or notify
the inquirer that advice |
| 372 |
has been requested from the division. If
the board requests |
| 373 |
advice from the division, the board
shall, within 10 days of its |
| 374 |
receipt of the advice, provide in
writing a substantive response |
| 375 |
to the inquirer. If a legal opinion is
requested, the board |
| 376 |
shall, within 60 days after the receipt
of the inquiry, provide |
| 377 |
in writing a substantive response to the
inquiry. The failure to |
| 378 |
provide a substantive response to the
inquiry as provided herein |
| 379 |
precludes the board from recovering
attorney's fees and costs in |
| 380 |
any subsequent litigation,
administrative proceeding, or |
| 381 |
arbitration arising out of the inquiry.
The association may |
| 382 |
through its board of administration
adopt reasonable rules and |
| 383 |
regulations regarding the frequency and
manner of responding to |
| 384 |
unit owner inquiries, one of which may
be that the association |
| 385 |
is only obligated to respond to one
written inquiry per unit in |
| 386 |
any given 30-day period. In such a case,
any additional inquiry |
| 387 |
or inquiries must be responded to in the
subsequent 30-day |
| 388 |
period, or periods, as applicable. |
| 389 |
(b) Quorum;
voting requirements; proxies.-- |
| 390 |
1. Unless
a lower number is provided in the bylaws, the |
| 391 |
percentage of voting interests required
to constitute a quorum |
| 392 |
at a meeting of the members shall be a
majority of the voting |
| 393 |
interests. Unless otherwise provided in
this chapter or in the |
| 394 |
declaration, articles of incorporation,
or bylaws, and except as |
| 395 |
provided in subparagraph (d)3.,
decisions shall be made by |
| 396 |
owners of a majority of the voting
interests represented at a |
| 397 |
meeting at which a quorum is present. |
| 398 |
2. Except
as specifically otherwise provided herein, after |
| 399 |
January 1, 1992, unit owners may not
vote by general proxy, but |
| 400 |
may vote by limited proxies
substantially conforming to a |
| 401 |
limited proxy form adopted by the
division. Votes allocated to |
| 402 |
units owned by the
association may not be cast by proxy, ballot, |
| 403 |
or otherwise
for any purpose. Limited proxies and general |
| 404 |
proxies may be used to establish a
quorum. Limited proxies shall |
| 405 |
be used for votes taken to waive or
reduce reserves in |
| 406 |
accordance with subparagraph (f)2.; for
votes taken to waive the |
| 407 |
financial reporting requirements of s.
718.111(13); for votes |
| 408 |
taken to amend the declaration pursuant
to s. 718.110; for votes |
| 409 |
taken to amend the articles of
incorporation or bylaws pursuant |
| 410 |
to this section; and for any other
matter for which this chapter |
| 411 |
requires or permits a vote of the unit
owners. Except as |
| 412 |
provided in paragraph (d), after January
1, 1992, no proxy, |
| 413 |
limited or general, shall be used in the
election of board |
| 414 |
members. General proxies may be used for
other matters for which |
| 415 |
limited proxies are not required, and
may also be used in voting |
| 416 |
for nonsubstantive changes to items for
which a limited proxy is |
| 417 |
required and given. Notwithstanding the
provisions of this |
| 418 |
subparagraph, unit owners may vote in
person at unit owner |
| 419 |
meetings. Nothing contained herein shall
limit the use of |
| 420 |
general proxies or require the use of
limited proxies for any |
| 421 |
agenda item or election at any meeting
of a timeshare |
| 422 |
condominium association. |
| 423 |
3. Any
proxy given shall be effective only for the |
| 424 |
specific meeting for which originally
given and any lawfully |
| 425 |
adjourned meetings thereof. In no event
shall any proxy be valid |
| 426 |
for a period longer than 90 days after
the date of the first |
| 427 |
meeting for which it was given. Every
proxy is revocable at any |
| 428 |
time at the pleasure of the unit owner
executing it. |
| 429 |
4. A
member of the board of administration or a committee |
| 430 |
may submit in writing his or her
agreement or disagreement with |
| 431 |
any action taken at a meeting that the
member did not attend. |
| 432 |
This agreement or disagreement may not
be used as a vote for or |
| 433 |
against the action taken and may not be
used for the purposes of |
| 434 |
creating a quorum. |
| 435 |
5. When
any of the board or committee members meet by |
| 436 |
telephone conference, those board or
committee members attending |
| 437 |
by telephone conference may be counted
toward obtaining a quorum |
| 438 |
and may vote by telephone. A telephone
speaker must be used so |
| 439 |
that the conversation of those board or
committee members |
| 440 |
attending by telephone may be heard by
the board or committee |
| 441 |
members attending in person as well as
by any unit owners |
| 442 |
present at a meeting. |
| 443 |
(c) Board
of administration meetings.--Meetings of the |
| 444 |
board of administration at which a
quorum of the members is |
| 445 |
present shall be open to all unit
owners. Any unit owner may |
| 446 |
tape record or videotape meetings of the
board of |
| 447 |
administration. The right to attend such
meetings includes the |
| 448 |
right to speak at such meetings with
reference to all designated |
| 449 |
agenda items. The division shall adopt
reasonable rules |
| 450 |
governing the tape recording and
videotaping of the meeting. The |
| 451 |
association may adopt written reasonable
rules governing the |
| 452 |
frequency, duration, and manner of unit
owner statements. |
| 453 |
Adequate notice of all meetings, which
notice shall specifically |
| 454 |
incorporate an identification of agenda
items, shall be posted |
| 455 |
conspicuously on the condominium
property at least 48 continuous |
| 456 |
hours preceding the meeting except in an
emergency. Any item not |
| 457 |
included on the notice may be taken up
on an emergency basis by |
| 458 |
at least a majority plus one of the
members of the board or by a |
| 459 |
petition of 20
percent of the unit owners. Such emergency action |
| 460 |
shall be noticed and ratified at the
next regular meeting of the |
| 461 |
board. However, written notice of any
meeting at which |
| 462 |
nonemergency special assessments, or at
which amendment to rules |
| 463 |
regarding unit use, will be considered
shall be mailed, |
| 464 |
delivered, or electronically transmitted
to the unit owners and |
| 465 |
posted conspicuously on the condominium
property not less than |
| 466 |
14 days prior to the meeting. Evidence
of compliance with this |
| 467 |
14-day notice shall be made by an
affidavit executed by the |
| 468 |
person providing the notice and filed
among the official records |
| 469 |
of the association. Upon notice to the
unit owners, the board |
| 470 |
shall by duly adopted rule designate a
specific location on the |
| 471 |
condominium property or association
property upon which all |
| 472 |
notices of board meetings shall be
posted. If there is no |
| 473 |
condominium property or association
property upon which notices |
| 474 |
can be posted, notices of board meetings
shall be mailed, |
| 475 |
delivered, or electronically transmitted
at least 14 days before |
| 476 |
the meeting to the owner of each unit.
In lieu of or in addition |
| 477 |
to the physical posting of notice of any
meeting of the board of |
| 478 |
administration on the condominium
property, the association may, |
| 479 |
by reasonable rule, adopt a procedure
for conspicuously posting |
| 480 |
and repeatedly broadcasting the notice
and the agenda on a |
| 481 |
closed-circuit cable television system
serving the condominium |
| 482 |
association. However, if broadcast
notice is used in lieu of a |
| 483 |
notice posted physically on the
condominium property, the notice |
| 484 |
and agenda must be broadcast at least
four times every broadcast |
| 485 |
hour of each day that a posted notice is
otherwise required |
| 486 |
under this section. When broadcast
notice is provided, the |
| 487 |
notice and agenda must be broadcast in a
manner and for a |
| 488 |
sufficient continuous length of time so
as to allow an average |
| 489 |
reader to observe the notice and read
and comprehend the entire |
| 490 |
content of the notice and the agenda.
Notice of any meeting in |
| 491 |
which regular or
special assessments against unit owners are to |
| 492 |
be considered for any reason shall
specifically state contain
a |
| 493 |
statement
that assessments will be considered and the nature, |
| 494 |
cost, and
breakdown of any such assessments. Meetings of a |
| 495 |
committee to take final action on behalf
of the board or make |
| 496 |
recommendations to the board regarding
the association budget |
| 497 |
are subject to the provisions of this
paragraph. Meetings of a |
| 498 |
committee that does not take final
action on behalf of the board |
| 499 |
or make recommendations to the board
regarding the association |
| 500 |
budget are subject to the provisions of
this section, unless |
| 501 |
those meetings are exempted from this
section by the bylaws of |
| 502 |
the association. Notwithstanding any
other law, the requirement |
| 503 |
that board meetings and committee
meetings be open to the unit |
| 504 |
owners is inapplicable to meetings
between the board or a |
| 505 |
committee and the association's
attorney, with respect to |
| 506 |
proposed or pending litigation, when the
meeting is held for the |
| 507 |
purpose of seeking or rendering legal
advice. |
| 508 |
(d) Unit
owner meetings.-- |
| 509 |
1. There
shall be an annual meeting of the unit owners |
| 510 |
held at the location
provided in the association bylaws; and, if |
| 511 |
the bylaws are silent
as to the location, the meeting shall be |
| 512 |
held in the state
within 30 miles of the condominium property. |
| 513 |
Unless the bylaws provide otherwise, a
vacancy on the board |
| 514 |
caused by the expiration of a director's
term shall be filled by |
| 515 |
electing a new board member, and the
election shall be by secret |
| 516 |
ballot; however, if the number of
vacancies equals or exceeds |
| 517 |
the number of candidates, no election is
required. If there is |
| 518 |
no provision in the bylaws for terms of
the members of the |
| 519 |
board, the terms of all members of the
board shall expire upon |
| 520 |
the election of their successors at the
annual meeting. Any unit |
| 521 |
owner desiring to be a candidate for
board membership shall |
| 522 |
comply with subparagraph 3. A person is
not eligible for board |
| 523 |
membership if
that person who has
been convicted of any felony |
| 524 |
by any court of record in the United
States and who has not had |
| 525 |
his or her right to vote restored
pursuant to law in the |
| 526 |
jurisdiction of his or her residence
is not eligible for board |
| 527 |
membership.
The validity of an action by the board is not |
| 528 |
affected if it is later determined that
a member of the board is |
| 529 |
ineligible for board membership due to
having been convicted of |
| 530 |
a felony. |
| 531 |
2. The
bylaws shall provide the method of calling meetings |
| 532 |
of unit owners, including annual
meetings. Written notice, which |
| 533 |
notice must include an agenda, shall be
mailed, hand delivered, |
| 534 |
or electronically transmitted to each
unit owner at least 14 |
| 535 |
days prior to the annual meeting and
shall be posted in a |
| 536 |
conspicuous place on the condominium
property at least 14 |
| 537 |
continuous days preceding the annual
meeting. Upon notice to the |
| 538 |
unit owners, the board shall by duly
adopted rule designate a |
| 539 |
specific location on the condominium
property or association |
| 540 |
property upon which all notices of unit
owner meetings shall be |
| 541 |
posted; however, if there is no
condominium property or |
| 542 |
association property upon which notices
can be posted, this |
| 543 |
requirement does not apply. In lieu of
or in addition to the |
| 544 |
physical posting of notice of any
meeting of the unit owners on |
| 545 |
the condominium property, the
association may, by reasonable |
| 546 |
rule, adopt a procedure for
conspicuously posting and repeatedly |
| 547 |
broadcasting the notice and the agenda
on a closed-circuit cable |
| 548 |
television system serving the
condominium association. However, |
| 549 |
if broadcast notice is used in lieu of a
notice posted |
| 550 |
physically on the condominium property,
the notice and agenda |
| 551 |
must be broadcast at least four times
every broadcast hour of |
| 552 |
each day that a posted notice is
otherwise required under this |
| 553 |
section. When broadcast notice is
provided, the notice and |
| 554 |
agenda must be broadcast in a manner and
for a sufficient |
| 555 |
continuous length of time so as to allow
an average reader to |
| 556 |
observe the notice and read and
comprehend the entire content of |
| 557 |
the notice and the agenda. Unless a unit
owner waives in writing |
| 558 |
the right to receive notice of the
annual meeting, such notice |
| 559 |
shall be hand delivered, mailed, or
electronically transmitted |
| 560 |
to each unit owner. Notice for meetings
and notice for all other |
| 561 |
purposes shall be mailed to each unit
owner at the address last |
| 562 |
furnished to the association by the unit
owner, or hand |
| 563 |
delivered to each unit owner. However,
if a unit is owned by |
| 564 |
more than one person, the association
shall provide notice, for |
| 565 |
meetings and all other purposes, to that
one address which the |
| 566 |
developer initially identifies for that
purpose and thereafter |
| 567 |
as one or more of the owners of the unit
shall so advise the |
| 568 |
association in writing, or if no address
is given or the owners |
| 569 |
of the unit do not agree, to the address
provided on the deed of |
| 570 |
record. An officer of the association,
or the manager or other |
| 571 |
person providing notice of the
association meeting, shall |
| 572 |
provide an affidavit or United States
Postal Service certificate |
| 573 |
of mailing, to be included in the
official records of the |
| 574 |
association affirming that the notice
was mailed or hand |
| 575 |
delivered, in accordance with this
provision. |
| 576 |
3. The
members of the board shall be elected by written |
| 577 |
ballot or voting machine. Proxies shall
in no event be used in |
| 578 |
electing the board, either in general
elections or elections to |
| 579 |
fill vacancies caused by recall,
resignation, or otherwise, |
| 580 |
unless otherwise provided in this
chapter. Not less than 60 days |
| 581 |
before a scheduled election, the
association or its |
| 582 |
representative
shall mail, deliver, or electronically transmit, |
| 583 |
whether by separate association mailing
or included in another |
| 584 |
association mailing, deli |