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HomeMy WebLinkAboutSubmittal-Commissioner Suarez-Florida Senate Bill (SB1882)Florida Senate - 2017 By Senator Garcia SB 1682 Submitted into the puhlicn �+, record f rite �(s) A - 0 _ on City Clerk 20171682_ 1 A bill to be entitled 2 An act relating to condominiums; amending s. 718.111, 3 F.S.; prohibiting an attorney from representing a 4 board under certain conditions; prohibiting certain 5 actions by a board member or management company; 6 providing recordkeeping requirements; providing that 7 the official records of an association are open to 8 inspection by unit renters; providing criminal 9 penalties; providing a definition; providing 10 requirements relating to the posting of specified 11 documents on an association's website; providing a 12 remedy for an association's failure to provide a unit 13 owner with a copy of the most recent financial report; 14 requiring the Division of Florida Condominiums, 15 Timeshares, and Mobile Homes to maintain and provide 16 copies of financial reports; amending s. 718.112, 17 F.S.; providing board member term limits; providing an 18 exception; deleting certification requirements 19 relating to the recall of board members; revising the 20 amount of time in which a recalled board member must 21 turn over records and property of the association to 22 the board; prohibiting an association from employing 23 or contracting with a service provider that is owned 24 or operated by certain persons; amending s. 718.1255, 25 F.S.; authorizing, rather than requiring, the division 26 to employ full-time attorneys to conduct certain 27 arbitration hearings; providing requirements for the 28 certification of arbitrators; prohibiting the 29 Department of Business and Professional Regulation Page 1 of 41 CODING: Words stfie]Een are M5_�� m�� � - Co��n�s5,oner deletions; words S1VU_ �c,c�� underlined are �e�u�� &� additions. (% I (i%) Florida Senate - 2017 Submitted into the publ' record fonItterd(s) r on City Clerk SB 1682 36-00715B-17 20171682 30 from entering into a legal services contract for 31 certain arbitration hearings; requiring the division 32 to assign or enter into contracts with arbitrators; 33 requiring arbitrators to conduct hearings within a 34 specified period; providing an exception; providing 35 arbitration proceeding requirements; creating s. 36 718.129, F.S.; providing that certain activities 37 constitute fraudulent voting activities related to 38 association elections; providing criminal penalties; 39 amending s. 718.3025, F.S.; prohibiting specified 40 parties from certain activities; creating s. 718.3027, 41 F.S.; providing requirements relating to board 42 director and officer conflicts of interest; providing 43 that certain contracts are null and void if they do 44 not meet specified notice requirements; amending s. 45 718.303, F.S.; providing requirements relating to the 46 suspension of voting rights of unit owners and 47 members; prohibiting a receiver from exercising the 48 voting rights of a unit owner whose unit is placed in 49 receivership; amending s. 718.5012, F.S.; providing 50 the ombudsman with an additional power; creating s. 51 718.71, F.S.; providing financial reporting 52 requirements of an association; providing an effective 53 date. 54 55 Be It Enacted by the Legislature of the State of Florida: 56 57 Section 1. Subsections (3) and (9), paragraphs (a) and (c) 58 of subsection (12), and subsection (13) of section 718.111, Page 2 of 41 CODING: Words strieken are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pubyi record for it (s) on I 1 City Clerk SB 1682 36-00715B-17 20171682 59 Florida Statutes, are amended, and paragraph (g) is added to 60 subsection (12) of that section, to read: 61 718.111 The association. - 62 (3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT, 63 SUE, AND BE SUED; CONFLICT OF INTEREST. - 64 (a) The association may contract, sue, or be sued with 65 respect to the exercise or nonexercise of its powers. For these 66 purposes, the powers of the association include, but are not 67 limited to, the maintenance, management, and operation of the 68 condominium property. After control of the association is 69 obtained by unit owners other than the developer, the 70 association may institute, maintain, settle, or appeal actions 71 or hearings in its name on behalf of all unit owners concerning 72 matters of common interest to most or all unit owners, 73 including, but not limited to, the common elements; the roof and 74 structural components of a building or other improvements; 75 mechanical, electrical, and plumbing elements serving an 76 improvement or a building; representations of the developer 77 pertaining to any existing or proposed commonly used facilities; 78 and protesting ad valorem taxes on commonly used facilities and 79 on units; and may defend actions in eminent domain or bring 80 inverse condemnation actions. If the association has the 81 authority to maintain a class action, the association may be 82 joined in an action as representative of that class with 83 reference to litigation and disputes involving the matters for 84 which the association could bring a class action. Nothing herein 85 limits any statutory or common-law right of any individual unit 86 owner or class of unit owners to bring any action without 87 participation by the association which may otherwise be Page 3 of 41 CODING: Words str-ieken are deletions; words underlined are additions. Florida Senate - 2017 SB 1682 Submitted into the public recor fi ei (S KIN g Ton "I `J City Clerk - 36 -00715B-17 20171682 88 available. 89 (b) An attorney may not represent a board if the attorney 90 represents the management company of the association. 91 (9) PURCHASE OF UNITS.—The association has the power, 92 unless prohibited by the declaration, articles of incorporation, 93 or bylaws of the association, to purchase units in the 94 condominium and to acquire and hold, lease, mortgage, and convey 95 them. There shall be no limitation on the association's right to 96 purchase a unit at a foreclosure sale resulting from the 97 association's foreclosure of its lien for unpaid assessments, or 98 to take title by deed in lieu of foreclosure. However, a board 99 member or management company may not purchase a unit at a 100 foreclosure sale resulting from the association's foreclosure of 101 its lien for unpaid assessments or take title by deed in lieu of 102 foreclosure. 103 (12) OFFICIAL RECORDS. - 104 (a) From the inception of the association, the association 105 shall maintain each of the following items, if applicable, which 106 constitutes the official records of the association: 107 1. A copy of the plans, permits, warranties, and other 108 items provided by the developer pursuant to s. 718.301(4). 109 2. A photocopy of the recorded declaration of condominium 110 of each condominium operated by the association and each 111 amendment to each declaration. 112 3. A photocopy of the recorded bylaws of the association 113 and each amendment to the bylaws. 114 4. A certified copy of the articles of incorporation of the 115 association, or other documents creating the association, and 116 each amendment thereto. Page 4 of 41 CODING: Words strieken are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the public record fr it m[s) on ' l City Clerk SB 1682 36-00715B-17 20171682 117 5. A copy of the current rules of the association. 118 6. A book or books that contain the minutes of all meetings 119 of the association, the board of administration, and the unit 120 owners, which minutes must be retained for at least 7 years. 121 7. A current roster of all unit owners and their mailing 122 addresses, unit identifications, voting certifications, and, if 123 known, telephone numbers. The association shall also maintain 124 the electronic mailing addresses and facsimile numbers of unit 125 owners consenting to receive notice by electronic transmission. 126 The electronic mailing addresses and facsimile numbers are not 127 accessible to unit owners if consent to receive notice by 128 electronic transmission is not provided in accordance with sub - 129 subparagraph (c)5.e. . However, the association 130 is not liable for an inadvertent disclosure of the electronic 131 mail address or facsimile number for receiving electronic 132 transmission of notices. 133 8. All current insurance policies of the association and 134 condominiums operated by the association. 135 9. A current copy of any management agreement, lease, or 136 other contract to which the association is a party or under 137 which the association or the unit owners have an obligation or 138 responsibility. 139 10. Bills of sale or transfer for all property owned by the 140 association. 141 11. Accounting records for the association and separate 142 accounting records for each condominium that the association 143 operates. All accounting records must be maintained for at least 144 7 years. Any person who knowingly or intentionally defaces or 145 destroys such records, or who knowingly or intentionally fails Page 5 of 41 CODING: Words men are deletions; words underlined are additions. Florida Senate - 2017 SB 1682 Submitted into the pub i n record fo iteTH7 on qCity Clerk 36-00715B-17 20171682 146 to create or maintain such records, with the intent of causing 147 harm to the association or one or more of its members, is 148 personally subject to a civil penalty pursuant to s. 149 718.501(1)(d). The accounting records must include, but are not 150 limited to: 151 a. Accurate, itemized, and detailed records of all receipts 152 and expenditures. 153 b. A current account and a monthly, bimonthly, or quarterly 154 statement of the account for each unit designating the name of 155 the unit owner, the due date and amount of each assessment, the 156 amount paid on the account, and the balance due. 157 c. All audits, reviews, accounting statements, and 158 financial reports of the association or condominium. 159 d. All contracts for work to be performed. Bids for work to 160 be performed are also considered official records and must be 161 maintained by the association. 162 12. Ballots, sign -in sheets, voting proxies, and all other 163 papers relating to voting by unit owners, which must be 164 maintained for 1 year from the date of the election, vote, or 165 meeting to which the document relates, notwithstanding paragraph 166 (b) . 167 13. All rental records if the association is acting as 168 agent for the rental of condominium units. 169 14. A copy of the current question and answer sheet as 170 described in s. 718.504. 171 15. All other written records of the association not 172 specifically included in the foregoing which are related to the 173 operation of the association. 174 16. A copy of the inspection report as described in s. Page 6 of 41 CODING: Wordsstr;ken are deletions; words underlined are additions. Florida Senate - 2017 SB 1682 Submitted into the Pu record f r it (s) I on '7 . City Clerk 36-00715B-17 20171682 175 718.301 (4) (p) . 176 17. Bids for materials, equipment, or services. 177 (c)1. The official records of the association are open to 178 inspection by any association member, e -r- the authorized 179 representative of such member, or the renter of such member's 180 unit at all reasonable times. The right to inspect the records 181 includes the right to make or obtain copies, at the reasonable 182 expense, if any, of the member, authorized representative of 183 such member, or the renter of such member's unit. The 184 association may adopt reasonable rules regarding the frequency, 185 time, location, notice, and manner of record inspections and 186 copying. The failure of an association to provide the records 187 within 10 working days after receipt of a written request 188 creates a rebuttable presumption that the association willfully 189 failed to comply with this paragraph. A unit owner who is denied 190 access to official records is entitled to the actual damages or 191 minimum damages for the association's willful failure to comply. 192 Minimum damages are $50 per calendar day for up to 10 days, 193 beginning on the 11th working day after receipt of the written 194 request. The failure to permit inspection entitles any person 195 prevailing in an enforcement action to recover reasonable 196 attorney fees from the person in control of the records who, 197 directly or indirectly, knowingly denied access to the records. 198 2. Any director or member of the board or association who 199 knowingly, willfully, and repeatedly violates subparagraph 1. 200 commits a misdemeanor of the second degree, punishable as 201 provided in s. 775.082 or s. 775.083. For purposes of this 202 subparagraph, the term "repeatedly violates" means more than two 203 violations within a 12 -month period. Page 7 of 41 CODING: Words strieken are deletions; words underlined are additions. Florida Senate - 2017 SB 1682 Submitted into the publ' recorTi e (s on City Clerk 36-00715B-17 20171682 204 3. Any person who knowingly or intentionally defaces or 205 destroys accounting records that are required by this chapter to 206 be maintained during the period for which such records are 207 required to be maintained, or who knowingly or intentionally 208 fails to create or maintain accounting records that are required 209 to be created or maintained, with the intent of causing harm to 210 the association or one or more of its members, commits a 211 misdemeanor of the first degree, punishable as provided in s. 212 775.082 or s. 775.083. 213 4. Any person who willfully and knowingly refuses to 214 release or otherwise produce association records with the intent 215 of facilitating the commission of a crime or avoiding or 216 escaping detection, arrest, trial, or punishment for a crime 217 commits a felony of the third degree, punishable as provided in 218 s. 775. 082, s. 775. 083, or s. 775.084 is -moi=; n lly subjeet to a 219 eivil penalty p+rL}ant to s. 718.501 , ) d) . 220 5. The association shall maintain an adequate number of 221 copies of the declaration, articles of incorporation, bylaws, 222 and rules, and all amendments to each of the foregoing, as well 223 as the question and answer sheet as described in s. 718.504 and 224 year-end financial information required under this section, on 225 the condominium property to ensure their availability to unit 226 owners and prospective purchasers, and may charge its actual 227 costs for preparing and furnishing these documents to those 228 requesting the documents. An association shall allow a member or 229 his or her authorized representative to use a portable device, 230 including a smartphone, tablet, portable scanner, or any other 231 technology capable of scanning or taking photographs, to make an 232 electronic copy of the official records in lieu of the Page 8 of 41 CODING: Words strieken are deletions; words underlined are additions. Florida Senate - 2017 SB 1682 Submitted into the pubi record fo ite (s) , on 1 7 City Clerk 36-00715B-17 20171682 233 association's providing the member or his or her authorized 234 representative with a copy of such records. The association may 235 not charge a member or his or her authorized representative for 236 the use of a portable device. Notwithstanding this paragraph, 237 the following records are not accessible to unit owners: 238 a.4— Any record protected by the lawyer -client privilege as 239 described in s. 90.502 and any record protected by the work - 240 product privilege, including a record prepared by an association 241 attorney or prepared at the attorney's express direction, which 242 reflects a mental impression, conclusion, litigation strategy, 243 or legal theory of the attorney or the association, and which 244 was prepared exclusively for civil or criminal litigation or for 245 adversarial administrative proceedings, or which was prepared in 246 anticipation of such litigation or proceedings until the 247 conclusion of the litigation or proceedings. 248 b.� Information obtained by an association in connection 249 with the approval of the lease, sale, or other transfer of a 250 unit. 251 c.-3--.- Personnel records of association or management company 252 employees, including, but not limited to, disciplinary, payroll, 253 health, and insurance records. For purposes of this sub - 254 subparagraph the term "personnel records" does not 255 include written employment agreements with an association 256 employee or management company, or budgetary or financial 257 records that indicate the compensation paid to an association 258 employee. 259 d.4— Medical records of unit owners. 260 e. Social security numbers, driver license numbers, 261 credit card numbers, e-mail addresses, telephone numbers, Page 9 of 41 CODING: Words men are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the publi�;1 record f ite on q City Clerk SB 1682 36-00715B-17 20171682 262 facsimile numbers, emergency contact information, addresses of a 263 unit owner other than as provided to fulfill the association's 264 notice requirements, and other personal identifying information 265 of any person, excluding the person's name, unit designation, 266 mailing address, property address, and any address, e-mail 267 address, or facsimile number provided to the association to 268 fulfill the association's notice requirements. Notwithstanding 269 the restrictions in this sub -subparagraph , an 270 association may print and distribute to parcel owners a 271 directory containing the name, parcel address, and all telephone 272 numbers of each parcel owner. However, an owner may exclude his 273 or her telephone numbers from the directory by so requesting in 274 writing to the association. An owner may consent in writing to 275 the disclosure of other contact information described in this 276 sub -subparagraph . The association is not liable for 277 the inadvertent disclosure of information that is protected 278 under this sub -subparagraph sabparagrapk if the information is 279 included in an official record of the association and is 280 voluntarily provided by an owner and not requested by the 281 association. 282 f. -r&-. Electronic security measures that are used by the 283 association to safeguard data, including passwords. 284 The software and operating system used by the 285 association which allow the manipulation of data, even if the 286 owner owns a copy of the same software used by the association. 287 The data is part of the official records of the association. 288 (g)1. An association with 500 or more units that does not 289 manage timeshare units shall post digital copies of the 290 documents specified in subparagraph 2. on its website. Page 10 of 41 CODING: Wordsstrier are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the p is record f it m(s) on City Clerk SB 1682 36-00715B-17 20171682 291 a. The association's website must be: 292 (I) An independent website or web portal wholly owned and 293 operated by the association; or 294 (II) A website or web portal operated by a third -party 295 provider with whom the association owns, leases, rents, or 296 otherwise obtains the right to operate a web page, subpage, web 297 portal, or collection of subpages or web portals dedicated to 298 the association's activities and on which required notices, 299 records, and documents may be posted by the association. 300 b. The association's website must be accessible through the 301 Internet and must contain a subpage, web portal, or other 302 protected electronic location that is inaccessible to the 303 general public and accessible only to unit owners, employees of 304 the association, and the department. 305 c. Upon a unit owner's request, the association must 306 provide the unit owner with a username and password and access 307 to the protected sections of the association's website that 308 contain any notices, records, or documents that must be 309 electronically provided. 310 2. A current copy of the following documents must be posted 311 in digital format on the association's website: 312 a. The recorded declaration of condominium of each 313 condominium operated by the association and each amendment to 314 each declaration. 315 b. The recorded bylaws of the association and each 316 amendment to the bylaws. 317 c. The articles of incorporation of the association, or 318 other documents creating the association, and each amendment 319 thereto. The copy posted pursuant to this sub -subparagraph must Page 11 of 41 CODING: Words men are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pub record fdr it e ) onl City Clerk SB 1682 36-00715B-17 20171682 320 be a certified copy. 321 d. The rules of the association. 322 e. Any management agreement, lease, or other contract to 323 which the association is a party or under which the association 324 or the unit owners have an obligation or responsibility. 325 Summaries of bids for materials, equipment, or services must be 326 maintained on the website for 1 year. 327 f. The annual budget required by S. 718.112(2)(f) and any 328 proposed budget to be considered at the annual meeting. 329 g. The financial report required by subsection (13) and any 330 proposed financial report to be considered at a meeting. 331 h. The certification of each director required by s. 332 718.112 (2) (d) 4.b. 333 i. All contracts or transactions between the association 334 and any director, officer, corporation, firm, or association 335 that is not an affiliated condominium association or any other 336 entity in which an association director is also a director or 337 officer and financially interested. 338 j. Any contract or document regarding a conflict of 339 interest or possible conflict of interest as provided in ss. 340 468.436(2) and 718.3026(3). 341 k. The notice of any board meeting and the agenda for the 342 meeting, as required by s. 718.112(2)(d)3., no later than 14 343 days before the meeting. The notice must be posted in plain view 344 on the front page of the website, or on a separate subpage of 345 the website labeled "Notices" which is conspicuously visible and 346 linked from the front page. The association must also post on 347 its website any documents to be considered during the meeting or 348 listed on the agenda at least 7 days before the meeting at which Page 12 of 41 CODING: Words strieken are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pu 'c record fo ite �S) 1 on City Clerk SB 1682 36-00715B-17 20171682 349 the document or the information within the document will be 350 considered, including the following documents: 351 (I) The proposed annual budget required by s. 352 718.112(2)(f), which must be provided at least 14 days before 353 the meeting. 354 (II) The proposed financial report required by subsection 355 (13). 356 3. The association shall ensure that the information and 357 records described in paragraph (c), which are not permitted to 358 be accessible to unit owners, are not posted on the 359 association's website. If protected information or information 360 restricted from being accessible to unit owners is included in 361 documents that are required to be posted on the association's 362 website, the association shall ensure the information is 363 redacted before posting the documents online. 364 (13) FINANCIAL REPORTING.—Within 90 days after the end of 365 the fiscal year, or annually on a date provided in the bylaws, 366 the association shall prepare and complete, or contract for the 367 preparation and completion of, a financial report for the 368 preceding fiscal year. Within 21 days after the final financial 369 report is completed by the association or received from the 370 third party, but not later than 120 days after the end of the 371 fiscal year or other date as provided in the bylaws, the 372 association shall mail to each unit owner at the address last 373 furnished to the association by the unit owner, or hand deliver 374 to each unit owner, a copy of the most recent financial report 375 or a notice that a copy of the most recent financial report will 376 be mailed or hand delivered to the unit owner, without charge, 377 within 5 business days after idpen receipt of a written request Page 13 of 41 CODING: Wordsstriekon are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pu I c� o record fo ite�(s) 0 on City Clerk SB 1682 36-00715B-17 20171682 378 from the unit owner. The division shall adopt rules setting 379 forth uniform accounting principles and standards to be used by 380 all associations and addressing the financial reporting 381 requirements for multicondominium associations. The rules must 382 include, but not be limited to,. standards for presenting a 383 summary of association reserves, including a good faith estimate 384 disclosing the annual amount of reserve funds that would be 385 necessary for the association to fully fund reserves for each 386 reserve item based on the straight-line accounting method. This 387 disclosure is not applicable to reserves funded via the pooling 388 method. In adopting such rules, the division shall consider the 389 number of members and annual revenues of an association. 390 Financial reports shall be prepared as follows: 391 (a) An association that meets the criteria of this 392 paragraph shall prepare a complete set of financial statements 393 in accordance with generally accepted accounting principles. The 394 financial statements must be based upon the association's total 395 annual revenues, as follows: 396 1. An association with total annual revenues of $150,000 or 397 more, but less than $300,000, shall prepare compiled financial 398 statements. 399 2. An association with total annual revenues of at least 400 $300,000, but less than $500,000, shall prepare reviewed 401 financial statements. 402 3. An association with total annual revenues of $500,000 or 403 more shall prepare audited financial statements. 404 (b)1. An association with total annual revenues of less 405 than $150,000 shall prepare a report of cash receipts and 406 expenditures. Page 14 of 41 CODING: Words strieken are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the publi record fol ite i(s) LAI A. on / 9 . City Clerk SB 1682 36-00715B-17 20171682 407 2. An association that operates fewer than 50 units, 408 regardless of the association's annual revenues, shall prepare a 409 report of cash receipts and expenditures in lieu of financial 410 statements required by paragraph (a). 411 3. A report of cash receipts and disbursements must 412 disclose the amount of receipts by accounts and receipt 413 classifications and the amount of expenses by accounts and 414 expense classifications, including, but not limited to, the 415 following, as applicable: costs for security, professional and 416 management fees and expenses, taxes, costs for recreation 417 facilities, expenses for refuse collection and utility services, 418 expenses for lawn care, costs for building maintenance and 419 repair, insurance costs, administration and salary expenses, and 420 reserves accumulated and expended for capital expenditures, 421 deferred maintenance, and any other category for which the 422 association maintains reserves. 423 (c) An association may prepare, without a meeting of or 424 approval by the unit owners: 425 1. Compiled, reviewed, or audited financial statements, if 426 the association is required to prepare a report of cash receipts 427 and expenditures; 428 2. Reviewed or audited financial statements, if the 429 association is required to prepare compiled financial 430 statements; or 431 3. Audited financial statements if the association is 432 required to prepare reviewed financial statements. 433 (d) If approved by a majority of the voting interests 434 present at a properly called meeting of the association, an 435 association may prepare: Page 15 of 41 CODING: Words strieken are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pu&A— on record fo ite (s _ City Clerk SB 1682 36-00715B-17 20171682 436 1. A report of cash receipts and expenditures in lieu of a 437 compiled, reviewed, or audited financial statement; 438 2. A report of cash receipts and expenditures or a compiled 439 financial statement in lieu of a reviewed or audited financial 440 statement; or 441 3. A report of cash receipts and expenditures, a compiled 442 financial statement, or a reviewed financial statement in lieu 443 of an audited financial statement. 444 445 Such meeting and approval must occur before the end of the 446 fiscal year and is effective only for the fiscal year in which 447 the vote is taken, except that the approval may also be 448 effective for the following fiscal year. If the developer has 449 not turned over control of the association, all unit owners, 450 including the developer, may vote on issues related to the 451 preparation of the association's financial reports, from the 452 date of incorporation of the association through the end of the 453 second fiscal year after the fiscal year in which the 454 certificate of a surveyor and mapper is recorded pursuant to s. 455 718.104(4)(e) or an instrument that transfers title to a unit in 456 the condominium which is not accompanied by a recorded 457 assignment of developer rights in favor of the grantee of such 458 unit is recorded, whichever occurs first. Thereafter, all unit 459 owners except the developer may vote on such issues until 460 control is turned over to the association by the developer. Any 461 audit or review prepared under this section shall be paid for by 462 the developer if done before turnover of control of the 463 association. An association may not waive the financial 464 reporting requirements of this section for more than 3 Page 16 of 41 CODING: Words sticieken are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pubi record fo ite (s) on I 'l . City Clerk SB 1682 36-0071513-17 20171682 465 consecutive years. 466 (e) If an association has not mailed or hand delivered to 467 the unit owner a copy of the most recent financial report within 468 5 business days after receipt of a written request from the unit 469 owner, the unit owner may give notice to the division of the 470 association's failure to comply. Upon notification, the division 471 shall give notice to the association that the association must 472 mail or hand deliver the copy of the most recent financial 473 report to the unit owner and the division within 5 business days 474 after such notice. Any association that fails to comply with the 475 division's request may not waive the financial reporting 476 requirement provided in paragraph (d). A financial report 477 received by the division pursuant to this paragraph shall be 478 maintained, and the division shall provide a copy of such report 479 to an association member upon his or her request. 480 Section 2. Paragraphs (d) and (j) of subsection (2) of 481 section 718.112, Florida Statutes, are amended, and paragraph 482 (p) is added to that subsection, to read: 483 718.112 Bylaws. - 484 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the 485 following and, if they do not do so, shall be deemed to include 486 the following: 487 (d) Unit owner meetings. - 488 1. An annual meeting of the unit owners shall be held at 489 the location provided in the association bylaws and, if the 490 bylaws are silent as to the location, the meeting shall be held 491 within 45 miles of the condominium property. However, such 492 distance requirement does not apply to an association governing 493 a timeshare condominium. Page 17 of 41 CODING: Words strieken are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pu 1 record f�,jte jn�s) , on yy II 1 City Clerk SB 1682 36-00715B-17 20171682 494 2. Unless the bylaws provide otherwise, a vacancy on the 495 board caused by the expiration of a director's term shall be 496 filled by electing a new board member, and the election must be 497 by secret ballot. An election is not required if the number of 498 vacancies equals or exceeds the number of candidates. For 499 purposes of this paragraph, the term "candidate" means an 500 eligible person who has timely submitted the written notice, as 501 described in sub -subparagraph 4.a., of his or her intention to 502 become a candidate. Except in a timeshare or nonresidential 503 condominium, or if the staggered term of a board member does not 504 expire until a later annual meeting, or if all members' terms 505 would otherwise expire but there are no candidates, the terms of 506 all board members expire at the annual meeting, and such members 507 may stand for reelection unless prohibited by the bylaws. if the 508 bylaws-eE artieles--ef ineerper-atren perfait terms --ef-ne fftetom 509 2 years, the asseeiatien Board members may serve 2 -year terms if 510 permitted by the bylaws or articles of incorporation. A board 511 member may not serve more than four consecutive 2 -year terms, 512 unless approved by an affirmative vote of two-thirds of the 513 total voting interests of the association. If the number of 514 board members whose terms expire at the annual meeting equals or 515 exceeds the number of candidates, the candidates become members 516 of the board effective upon the adjournment of the annual 517 meeting. Unless the bylaws provide otherwise, any remaining 518 vacancies shall be filled by the affirmative vote of the 519 majority of the directors making up the newly constituted board 520 even if the directors constitute less than a quorum or there is 521 only one director. In a residential condominium association of 522 more than 10 units or in a residential condominium association Page 18 of 41 CODING: Words strieken are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the [�'pu 1'c record foteij��(lon ) 4 ( City Clerk SB 1682 36-00715B-17 20171682 523 that does not include timeshare units or timeshare interests, 524 coowners of a unit may not serve as members of the board of 525 directors at the same time unless they own more than one unit or 526 unless there are not enough eligible candidates to fill the 527 vacancies on the board at the time of the vacancy. A unit owner 528 in a residential condominium desiring to be a candidate for 529 board membership must comply with sub -subparagraph 4.a. and must 530 be eligible to be a candidate to serve on the board of directors 531 at the time of the deadline for submitting a notice of intent to 532 run in order to have his or her name listed as a proper 533 candidate on the ballot or to serve on the board. A person who 534 has been suspended or removed by the division under this 535 chapter, or who is delinquent in the payment of any monetary 536 obligation due to the association, is not eligible to be a 537 candidate for board membership and may not be listed on the 538 ballot. A person who .has been convicted of any felony in this 539 state or in a United States District or Territorial Court, or 540 who has been convicted of any offense in another jurisdiction 541 which would be considered a felony if committed in this state, 542 is not eligible for board membership unless such felon's civil 543 rights have been restored for at least 5 years as of the date 544 such person seeks election to the board. The validity of an 545 action by the board is not affected if it is later determined 546 that a board member is ineligible for board membership due to 547 having been convicted of a felony. This subparagraph does not 548 limit the term of a member of the board of a nonresidential 549 condominium. 550 3. The bylaws must provide the method of calling meetings 551 of unit owners, including annual meetings. Written notice must Page 19 of 41 CODING: Words strieken are deletions; words underlined are additions. Florida Senate - 2017 Submitted into thePu I' record foI jeT ) on � City Clerk SB 1682 36-00715B-17 20171682 552 include an agenda, must be mailed, hand delivered, or 553 electronically transmitted to each unit owner at least 14 days 554 before the annual meeting, and must be posted in a conspicuous 555 place on the condominium property at least 14 continuous days 556 before the annual meeting. Upon notice to the unit owners, the 557 board shall, by duly adopted rule, designate a specific location 558 on the condominium property or association property where all 559 notices of unit owner meetings shall be posted. This requirement 560 does not apply if there is no condominium property or 561 association property for posting notices. In lieu of, or in 562 addition to, the physical posting of meeting notices, the 563 association may, by reasonable rule, adopt a procedure for 564 conspicuously posting and repeatedly broadcasting the notice and 565 the agenda on a closed-circuit cable television system serving 566 the condominium association. However, if broadcast notice is 567 used in lieu of a notice posted physically on the condominium 568 property, the notice and agenda must be broadcast at least four 569 times every broadcast hour of each day that a posted notice is 570 otherwise required under this section. If broadcast notice is 571 provided, the notice and agenda must be broadcast in a manner 572 and for a sufficient continuous length of time so as to allow an 573 average reader to observe the notice and read and comprehend the 574 entire content of the notice and the agenda. Unless a unit owner 575 waives in writing the right to receive notice of the annual 576 meeting, such notice must be hand delivered, mailed, or 577 electronically transmitted to each unit owner. Notice for 578 meetings and notice for all other purposes must be mailed to 579 each unit owner at the address last furnished to the association 580 by the unit owner, or hand delivered to each unit owner. Page 20 of 41 CODING: Words strieleen are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the Pu 1'c record for it lms) N. on City Clerk SB 1682 36-00715B-17 20171682 581 However, if a unit is owned by more than one person, the 582 association must provide notice to the address that the 583 developer identifies for that purpose and thereafter as one or 584 more of the owners of the unit advise the association in 585 writing, or if no address is given or the owners of the unit do 586 not agree, to the address provided on the deed of record. An 587 officer of the association, or the manager or other person 588 providing notice of the association meeting, must provide an 589 affidavit or United States Postal Service certificate of 590 mailing, to be included in the official records of the 591 association affirming that the notice was mailed or hand 592 delivered in accordance with this provision. 593 4. The members of the board of a residential condominium 594 shall be elected by written ballot or voting machine. Proxies 595 may not be used in electing the board in general elections or 596 elections to fill vacancies caused by recall, resignation, or 597 otherwise, unless otherwise provided in this chapter. This 598 subparagraph does not apply to an association governing a 599 timeshare condominium. 600 a. At least 60 days before a scheduled election, the 601 association shall mail, deliver, or electronically transmit, by 602 separate association mailing or included in another association 603 mailing, delivery, or transmission, including regularly 604 published newsletters, to each unit owner entitled to a vote, a 605 first notice of the date of the election. A unit owner or other 606 eligible person desiring to be a candidate for the board must 607 give written notice of his or her intent to be a candidate to 608 the association at least 40 days before a scheduled election. 609 Together with the written notice and agenda as set forth in Page 21 of 41 CODING: Words strieken are deletions; words underlined are additions. Florida Senate - 2017 Submitted into thep N �1 ufijcnn u record fo iteWq a O on I I 7 City Clerk SB 1682 36-00715B-17 20171682 610 subparagraph 3., the association shall mail, deliver, or 611 electronically transmit a second notice of the election to all 612 unit owners entitled to vote, together with a ballot that lists 613 all candidates. Upon request of a candidate, an information 614 sheet, no larger than 8 1/2 inches by 11 inches, which must be 615 furnished by the candidate at least 35 days before the election, 616 must be included with the mailing, delivery, or transmission of 617 the ballot, with the costs of mailing, delivery, or electronic 618 transmission and copying to be borne by the association. The 619 association is not liable for the contents of the information 620 sheets prepared by the candidates. In order to reduce costs, the 621 association may print or duplicate the information sheets on 622 both sides of the paper. The division shall by rule establish 623 voting procedures consistent with this sub -subparagraph, 624 including rules establishing procedures for giving notice by 625 electronic transmission and rules providing for the secrecy of 626 ballots. Elections shall be decided by a plurality of ballots 627 cast. There is no quorum requirement; however, at least 20 628 percent of the eligible voters must cast a ballot in order to 629 have a valid election. A unit owner may not permit any other 630 person to vote his or her ballot, and any ballots improperly 631 cast are invalid. A unit owner who violates this provision may 632 be fined by the association in accordance with s. 718.303. A 633 unit owner who needs assistance in casting the ballot for the 634 reasons stated in s. 101.051 may obtain such assistance. The 635 regular election must occur on the date of the annual meeting. 636 Notwithstanding this sub -subparagraph, an election is not 637 required unless more candidates file notices of intent to run or 638 are nominated than board vacancies exist. Page 22 of 41 CODING: Words strieken are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pu fiAn U record f r it (s) , O on �`� City Clerk SB 1682 36-00715B-17 20171682 639 b. Within 90 days after being elected or appointed to the 640 board of an association of a residential condominium, each newly 641 elected or appointed director shall certify in writing to the 642 secretary of the association that he or she has read the 643 association's declaration of condominium, articles of 644 incorporation, bylaws, and current written policies; that he or 645 she will work to uphold such documents and policies to the best 646 of his or her ability; and that he or she will faithfully 647 discharge his or her fiduciary responsibility to the 648 association's members. In lieu of this written certification, 649 within 90 days after being elected or appointed to the board, 650 the newly elected or appointed director may submit a certificate 651 of having satisfactorily completed the educational curriculum 652 administered by a division -approved condominium education 653 provider within 1 year before or 90 days after the date of 654 election or appointment. The written certification or 655 educational certificate is valid and does not have to be 656 resubmitted as long as the director serves on the board without 657 interruption. A director of an association of a residential 658 condominium who fails to timely file the written certification 659 or educational certificate is suspended from service on the 660 board until he or she complies with this sub -subparagraph. The 661 board may temporarily fill the vacancy during the period of 662 suspension. The secretary shall cause the association to retain 663 a director's written certification or educational certificate 664 for inspection by the members for 5 years after a director's 665 election or the duration of the director's uninterrupted tenure, 666 whichever is longer. Failure to have such written certification 667 or educational certificate on file does not affect the validity Page 23 of 41 CODING: Words men are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the puf n record for ite (s� fl on 1 q `� City Clerk SB 1682 36-00715B-17 20171682 668 of any board action. 669 c. Any challenge to the election process must be commenced 670 within 60 days after the election results are announced. 671 5. Any approval by unit owners called for by this chapter 672 or the applicable declaration or bylaws, including, but not 673 limited to, the approval requirement in s. 718.111(8), must be 674 made at a duly noticed meeting of unit owners and is subject to 675 all requirements of this chapter or the applicable condominium 676 documents relating to unit owner decisionmaking, except that 677 unit owners may take action by written agreement, without 678 meetings, on matters for which action by written agreement 679 without meetings is expressly allowed by the applicable bylaws 680 or declaration or any law that provides for such action. 681 6. Unit owners may waive notice of specific meetings if 682 allowed by the applicable bylaws or declaration or any law. 683 Notice of meetings of the board of administration, unit owner 684 meetings, except unit owner meetings called to recall board 685 members under paragraph (j), and committee meetings may be given 686 by electronic transmission to unit owners who consent to receive 687 notice by electronic transmission. 688 7. Unit owners have the right to participate in meetings of 689 unit owners with reference to all designated agenda items. 690 However, the association may adopt reasonable rules governing 691 the frequency, duration, and manner of unit owner participation. 692 8. A unit owner may tape record or videotape a meeting of 693 the unit owners subject to reasonable rules adopted by the 694 division. 695 9. Unless otherwise provided in the bylaws, any vacancy 696 occurring on the board before the expiration of a term may be Page 24 of 41 CODING: Wordsetr-iekeT are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pu Iic record f r ite (s) A. on City Clerk SB 1682 36-00715B-17 20171682 697 filled by the affirmative vote of the majority of the remaining 698 directors, even if the remaining directors constitute less than 699 a quorum, or by the sole remaining director. In the alternative, 700 a board may hold an election to fill the vacancy, in which case 701 the election procedures must conform to sub -subparagraph 4.a. 702 unless the association governs 10 units or fewer and has opted 703 out of the statutory election process, in which case the bylaws 704 of the association control. Unless otherwise provided in the 705 bylaws, a board member appointed or elected under this section 706 shall fill the vacancy for the unexpired term of the seat being 707 filled. Filling vacancies created by recall is governed by 708 paragraph (j) and rules adopted by the division. 709 10. This chapter does not limit the use of general or 710 limited proxies, require the use of general or limited proxies, 711 or require the use of a written ballot or voting machine for any 712 agenda item or election at any meeting of a timeshare 713 condominium association or nonresidential condominium 714 association. 715 716 Notwithstanding subparagraph (b)2. and sub -subparagraph 4.a., an 717 association of 10 or fewer units may, by affirmative vote of a 718 majority of the total voting interests, provide for different 719 voting and election procedures in its bylaws, which may be by a 720 proxy specifically delineating the different voting and election 721 procedures. The different voting and election procedures may 722 provide for elections to be conducted by limited or general 723 proxy. 724 (j) Recall of board members.—Subject to s. 718.301, any 725 member of the board of administration may be recalled and Page 25 of 41 CODING: WordsstriekeT are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the puhc record f°� ite s) _ on 1 City Clerk SB 1682 36-00715B-17 20171682 726 removed from office with or without cause by the vote or 727 agreement in writing by a majority of all the voting interests. 728 A special meeting of the unit owners to recall a member or 729 members of the board of administration may be called by 10 730 percent of the voting interests giving notice of the meeting as 731 required for a meeting of unit owners,- and the notice shall 732 state the purpose of the meeting. Electronic transmission may 733 not be used as a method of giving notice of a meeting called in 734 whole or in part for this purpose. 735 1. If the recall is approved by a majority of all voting 736 interests by a vote at a meeting, the recall will be effective 737 as provided in this paragraph. The board shall duly notice and 738 hold a board meeting within 5 full business days after the 739 adjournment of the unit owner meeting to recall one or more 740 board members. At the FReeting, the beard shall either __r}-fY 741 tne r-eeall, in whieh ease Such member or members shall be 742 recalled effective immediately and shall turn over to the board 743 within 10 -& full business days after the vote any and all 744 records and property of the association in their possession, l= 745 s p re Beed- -a s set. €e rth in -s-ubga-rad r-ap h 3. 746 2. If the proposed recall is by an agreement in writing by 747 a majority of all voting interests, the agreement in writing or 748 a copy thereof shall be served on the association by certified 749 mail or by personal service in the manner authorized by chapter 750 48 and the Florida Rules of Civil Procedure. The board of 751 administration shall duly notice and hold a meeting of the board 752 within 5 full business days after receipt of the agreement in 753 writing. At the meeting the beard shall either eer-tify the 754 wr-ittem-- agreement -te-ceeall-a membere—meffibersef thebeard, Page 26 of 41 CODING: WordsstaF;Een are deletions; words underlined are additions. Florida Senate - 2017 ,Submitted into the pu fic record fo to (s on �� City Clerk SB 1682 36-00715B-17 20171682 755 effeeti.- 756 eeliately-and shall rca-xzr-enc=ems--te-�crrd within r-a-rr 757 b ii sine s s -Ela y sr -any and ,,, r e e-er d s -a n d p r-epertyef the 758 asreeiatien in their pessessien,,-er preeeed as--deseribex-ice 759 subparagraph 3. 760 3. if the beard -determines net ze eertify the -writ 761 cagreeTzent—tereecsrl a meR:Jber- eir—FRemb rs e f the be rd, er de�� 762 nem-e-er-tify the-reeal l by avete at a Rieeting, The beardshall, 763 within hall bti-siness—days aftei2 the fneeting, file with the 764 d-ivisi-eft-itien fei-arbi-tr-atie to the preeedir-es 765 in s. 71855:. Fer the ==i eses ef this stet-ien,the unit 766 ewe==ahe veted-at-the FReetierg--er- whe eiEeated-the agreement 767 writing shall e e n s t i ti-rte--ewe--party i n d e a- the =Ti tied 768 arbratlen. if the -arbi:ter eertifies the-reeall as to -airy 769 the bthe , , , ti f f m-C�eT-$�iilQifib'e-��6�-�rn�vu �- d � Zrr��e'l�rrr-w� will �cTrcEt1-b'c 770 roiling of the final girder of arbratien to t4e 771 a s s e e -facie n. i f the -asse e i atie n fails te eefRply with the e r d e r 772 of the -ar-bteater,the -divis-ice -take aetie rsuant tes. 773 718. iRembe r e iF me -tea- se reea l l -ed shall eielivei= } e the 774 bearm-and all z e ee rds--ef the as— e e inti e n- in their p e 7 7 5 within 5 -full business days aft e i -t ie -e f f ee t i ve - date ef the 776 reeall. 777 3.11- If the board fails to duly notice and hold a board 778 meeting within 5 full business days after service of an 779 agreement in writing or within 5 full business days after the 780 adjournment of the unit owner recall meeting, the recall shall 781 be deemed effective and the board members so recalled shall 782edict ^ 1-y turn over to the board within 10 full business days 783 after the vote any and all records and property of the Page 27 of 41 CODING: Words str=ez are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pb�ic� record f r it (s)___ on 7 City Clcrk SB 1682 36-00715B-17 20171682 784 association. 785 4.§- If the board fails to duly notice and hold the 786 required meeting or fails to file the required petition, the 787 unit owner representative may file a petition pursuant to s. 788 718.1255 challenging the board's failure to act. The petition 789 must be filed within 60 days after the expiration of the 790 applicable 5 -full -business -day period. The review of a petition 791 under this subparagraph is limited to the sufficiency of service 792 on the board and the facial validity of the written agreement or 793 ballots filed. 794 5.-6-.- If a vacancy occurs on the board as a result of a 795 recall or removal and less than a majority of the board members 796 are removed, the vacancy may be filled by the affirmative vote 797 of a majority of the remaining directors, notwithstanding any 798 provision to the contrary contained in this subsection. If 799 vacancies occur on the board as a result of a recall and a 800 majority or more of the board members are removed, the vacancies 801 shall be filled in accordance with procedural rules to be 802 adopted by the division, which rules need not be consistent with 803 this subsection. The rules must provide procedures governing the 804 conduct of the recall election as well as the operation of the 805 association during the period after a recall but before the 806 recall election. 807 6.--�-. A board member who has been recalled may file a 808 petition pursuant to s. 718.1255 challenging the validity of the 809 recall. The petition must be filed within 60 days after the 810 recall is deemed eer}; f . The association and the unit owner 811 representative shall be named as the respondents. 812 7.-S-- The division may not accept for filing a recall Page 28 of 41 CODING: Words men are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pub i record fiot ite (s) on City Clerk SB 1682 36-00715B-17 20171682 813 petition, whether filed pursuant to subparagraph 1., 814 subparagraph 2., subparagraph 4. -5-, or subparagraph 6. :7 - and 815 regardless of whether the as eertified, when there are 816 60 or fewer days until the scheduled reelection of the board 817 member sought to be recalled or when 60 or fewer days have 818 elapsed since the election of the board member sought to be 819 recalled. 820 (p) Service providers; conflicts of interest. -An 821 association may not employ or contract with any service provider 822 that is owned or operated by a board member or any person who 823 has a financial relationship with a board member. 824 Section 3. Subsection (4) of section 718.1255, Florida 825 Statutes, is amended to read: 826 718.1255 Alternative dispute resolution; voluntary 827 mediation; mandatory nonbinding arbitration; legislative 828 findings. - 829 (4) MANDATORY NONBINDING ARBITRATION AND MEDIATION OF 830 DISPUTES. -The Division of Florida Condominiums, Timeshares, and 831 Mobile Homes of the Department of Business and Professional 832 Regulation may shall employ full-time attorneys to act as 833 arbitrators to conduct the arbitration hearings provided by this 834 chapter. The division may also certify attorneys who are not 835 employed by the division to act as arbitrators to conduct the 836 arbitration hearings provided by this chapter segin. No person 837 may be employed by the department as a full-time arbitrator 838 unless he or she is a member in good standing of The Florida 839 Bar. A person may only be certified by the division to act as an 840 arbitrator if he or she has been a member in good standing of 841 The Florida Bar for at least 5 years and has mediated or Page 29 of 41 CODING: Wordsn are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pu fic record fo ite s)_ on City Clerk SB 1682 36-00715B-17 20171682 842 arbitrated at least 10 disputes involving condominiums in this 843 state during the 3 years immediately preceding the date of 844 application, mediated or arbitrated at least 30 disputes in any 845 subject area in this state during the 3 years immediately 846 preceding the date of application, or attained board 847 certification in real estate law or condominium and planned 848 development law from The Florida Bar. Arbitrator certification 849 is valid for 1 year. An arbitrator who does not maintain the 850 minimum qualifications for initial certification may not have 851 his or her certification renewed. The department may not enter 852 into a legal services contract for an arbitration hearing under 853 this chapter with an attorney who is not a certified arbitrator 854 unless a certified arbitrator is not available within 50 miles 855 of the dispute. The department shall adopt rules of procedure to 856 govern such arbitration hearings including mediation incident 857 thereto. The decision of an arbitrator shall be final; however, 858 a decision shall not be deemed final agency action. Nothing in 859 this provision shall be construed to foreclose parties from 860 proceeding in a trial de novo unless the parties have agreed 861 that the arbitration is binding. If judicial proceedings are 862 initiated, the final decision of the arbitrator shall be 863 admissible in evidence in the trial de novo. 864 (a) Prior to the institution of court litigation, a party 865 to a dispute shall petition the division for nonbinding 866 arbitration. The petition must be accompanied by a filing fee in 867 the amount of $50. Filing fees collected under this section must 868 be used to defray the expenses of the alternative dispute 869 resolution program. 870 (b) The petition must recite, and have attached thereto, Page 30 of 41 CODING: Words Emmen are deletions; words underlined are additions. Florida Senate - 2017 SB 1682 Submitted into the public record f0v ite (s) on 1 . City Clerk 36-00715B-17 20171682 871 supporting proof that the petitioner gave the respondents: 872 1. Advance written notice of the specific nature of the 873 dispute; 874 2. A demand for relief, and a reasonable opportunity to 875 comply or to provide the relief; and 876 3. Notice of the intention to file an arbitration petition 877 or other legal action in the absence of a resolution of the 878 dispute. 879 880 Failure to include the allegations or proof of compliance with 881 these prerequisites requires dismissal of the petition without 882 prejudice. 883 (c) Upon receipt, the petition shall be promptly reviewed 884 by the division to determine the existence of a dispute and 885 compliance with the requirements of paragraphs (a) and (b). If 886 emergency relief is required and is not available through 887 arbitration, a motion to stay the arbitration may be filed. The 888 motion must be accompanied by a verified petition alleging facts 889 that, if proven, would support entry of a temporary injunction, 890 and if an appropriate motion and supporting papers are filed, 891 the division may abate the arbitration pending a court hearing 892 and disposition of a motion for temporary injunction. 893 (d) Upon determination by the division that a dispute 894 exists and that the petition substantially meets the 895 requirements of paragraphs (a) and (b) and any other applicable 896 rules, the division shall assign or enter into a contract with 897 an arbitrator and serve a copy of the petition shall be served - 898 ved898 by the divisien upon all respondents. The arbitrator shall 899 conduct a hearing within 30 days after being assigned or Page 31 of 41 CODING: Wordsen are deletions; words underlined are additions. Florida Senate - 2017 SB 1682 Submitted into the puMc record fo ite s _ on j City Clerk 36-00715B-17 20171682 900 entering into a contract unless the petition is withdrawn or a 901 continuance is granted for good cause shown. 902 (e) Before or after the filing of the respondents' answer 903 to the petition, any party may request that the arbitrator refer 904 the case to mediation under this section and any rules adopted 905 by the division. Upon receipt of a request for mediation, the 906 division shall promptly contact the parties to determine if 907 there is agreement that mediation would be appropriate. If all 908 parties agree, the dispute must be referred to mediation. 909 Notwithstanding a lack of an agreement by all parties, the 910 arbitrator may refer a dispute to mediation at any time. 911 (f) Upon referral of a case to mediation, the parties must 912 select a mutually acceptable mediator. To assist in the 913 selection, the arbitrator shall provide the parties with a list 914 of both volunteer and paid mediators that have been certified by 915 the division under s. 718.501. If the parties are unable to 916 agree on a mediator within the time allowed by the arbitrator, 917 the arbitrator shall appoint a mediator from the list of 918 certified mediators. If a case is referred to mediation, the 919 parties shall attend a mediation conference, as scheduled by the 920 parties and the mediator. If any party fails to attend a duly 921 noticed mediation conference, without the permission or approval 922 of the arbitrator or mediator, the arbitrator must impose 923 sanctions against the party, including the striking of any 924 pleadings filed, the entry of an order of dismissal or default 925 if appropriate, and the award of costs and attorneys' fees 926 incurred by the other parties. Unless otherwise agreed to by the 927 parties or as provided by order of the arbitrator, a party is 928 deemed to have appeared at a mediation conference by the Page 32 of 41 CODING: Words men are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the publi record f ite s on �' City Clerk SB 1682 36-00715B-17 20171682 929 physical presence of the party or its representative having full 930 authority to settle without further consultation, provided that 931 an association may comply by having one or more representatives 932 present with full authority to negotiate a settlement and 933 recommend that the board of administration ratify and approve 934 such a settlement within 5 days from the date of the mediation 935 conference. The parties shall share equally the expense of 936 mediation, unless they agree otherwise. 937 (g) The purpose of mediation as provided for by this 938 section is to present the parties with an opportunity to resolve 939 the underlying dispute in good faith, and with a minimum 940 expenditure of time and resources. 941 (h) Mediation proceedings must generally be conducted in 942 accordance with the Florida Rules of Civil Procedure, and these 943 proceedings are privileged and confidential to the same extent 944 as court-ordered mediation. Persons who are not parties to the 945 dispute are not allowed to attend the mediation conference 946 without the consent of all parties, with the exception of 947 counsel for the parties and corporate representatives designated 948 to appear for a party. If the mediator declares an impasse after 949 a mediation conference has been held, the arbitration proceeding 950 terminates, unless all parties agree in writing to continue the 951 arbitration proceeding, in which case the arbitrator's decision 952 shall be binding or nonbinding, as agreed upon by the parties; 953 in the arbitration proceeding, the arbitrator shall not consider 954 any evidence relating to the unsuccessful mediation except in a 955 proceeding to impose sanctions for failure to appear at the 956 mediation conference. If the parties do not agree to continue 957 arbitration, the arbitrator shall enter an order of dismissal, Page 33 of 41 CODING: Words trieken are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the Pu record ite (s) T)A f on City Clerk SB 1682 36-00715B-17 20171682 958 and either party may institute a suit in a court of competent 959 jurisdiction. The parties may seek to recover any costs and 960 attorneys' fees incurred in connection with arbitration and 961 mediation proceedings under this section as part of the costs 962 and fees that may be recovered by the prevailing party in any 963 subsequent litigation. 964 (i) Arbitration shall be conducted according to rules 965 adopted by the division. The filing of a petition for 966 arbitration shall toll the applicable statute of limitations. 967 (j) At the request of any party to the arbitration, the 968 arbitrator shall issue subpoenas for the attendance of witnesses 969 and the production of books, records, documents, and other 970 evidence and any party on whose behalf a subpoena is issued may 971 apply to the court for orders compelling such attendance and 972 production. Subpoenas shall be served and shall be enforceable 973 in the manner provided by the Florida Rules of Civil Procedure. 974 Discovery may, in the discretion of the arbitrator, be permitted 975 in the manner provided by the Florida Rules of Civil Procedure. 976 Rules adopted by the division may authorize any reasonable 977 sanctions except contempt for a violation of the arbitration 978 procedural rules of the division or for the failure of a party 979 to comply with a reasonable nonfinal order issued by an 980 arbitrator which is not under judicial review. 981 (k) The arbitration decision shall be rendered within 30 982 days after the hearing and presented to the parties in writing. 983 An arbitration decision is final in those disputes in which the 984 parties have agreed to be bound. An arbitration decision is also 985 final if a complaint for a trial de novo is not filed in a court 986 of competent jurisdiction in which the condominium is located Page 34 of 41 CODING: Wordsstrie!Een are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pub i record fol iter (s) on 1 City Clerk SB 1682 36-00715B-17 20171682 987 within 30 days. The right to file for a trial de novo entitles 988 the parties to file a complaint in the appropriate trial court 989 for a judicial resolution of the dispute. The prevailing party 990 in an arbitration proceeding shall be awarded the costs of the 991 arbitration and reasonable attorney's fees in an amount 992 determined by the arbitrator. Such an award shall include the 993 costs and reasonable attorney's fees incurred in the arbitration 994 proceeding as well as the costs and reasonable attorney's fees 995 incurred in preparing for and attending any scheduled mediation. 996 An arbitrator's failure to render a written decision within 30 997 days after the hearing may result in the cancellation of his or 998 her arbitration certification. 999 (1) The party who files a complaint for a trial de novo 1000 shall be assessed the other party's arbitration costs, court 1001 costs, and other reasonable costs, including attorney's fees, 1002 investigation expenses, and expenses for expert or other 1003 testimony or evidence incurred after the arbitration hearing if 1004 the judgment upon the trial de novo is not more favorable than 1005 the arbitration decision. If the judgment is more favorable, the 1006 party who filed a complaint for trial de novo shall be awarded 1007 reasonable court costs and attorney's fees. 1008 (m) Any party to an arbitration proceeding may enforce an 1009 arbitration award by filing a petition in a court of competent 1010 jurisdiction in which the condominium is located. A petition may 1011 not be granted unless the time for appeal by the filing of a 1012 complaint for trial de novo has expired. If a complaint for a 1013 trial de novo has been filed, a petition may not be granted with 1014 respect to an arbitration award that has been stayed. If the 1015 petition for enforcement is granted, the petitioner shall Page 35 of 41 CODING: Wordsn are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pub record for ite (s) ,icy ti% _ on City Clerk SB 1682 36-00715B-17 20171682 1016 recover reasonable attorney's fees and costs incurred in 1017 enforcing the arbitration award. A mediation settlement may also 1018 be enforced through the county or circuit court, as applicable, 1019 and any costs and fees incurred in the enforcement of a 1020 settlement agreement reached at mediation must be awarded to the 1021 prevailing party in any enforcement action. 1022 Section 4. Section 718.129, Florida Statutes, is created to 1023 read: 1024 718.129 Fraudulent voting activities related to association 1025 elections; penalties.—The following acts constitute fraudulent 1026 voting activities related to association elections: 1027 (1) A person who willfully, knowingly, and falsely swears 1028 or affirms to an oath or affirmation, or procures another person 1029 to willfully, knowingly, and falsely swear or affirm to an oath 1030 or affirmation, in connection with or arising out of voting or 1031 casting a ballot in an association election commits a felony of 1032 the third degree, punishable as provided in s. 775.082, s. 1033 775.083, or s. 775.084. 1034 (2) A person who willfully and knowingly perpetrates or 1035 attempts to perpetrate, or willfully and knowingly aids another 1036 person in perpetrating or attempting to perpetrate, fraud in 1037 connection with or arising out of a vote or ballot cast, to be 1038 cast, or attempted to be cast by an elector in an association 1039 election commits a felony of the third degree, punishable as 1040 provided in s. 775.082, s. 775.083, or s. 775.084. 1041 (3) A person who willfully, knowingly, and fraudulently 1042 changes or attempts to change a vote or ballot cast, to be cast, 1043 or attempted to be cast by an elector in an association election 1044 to prevent such elector from voting or casting a ballot as he or Page 36 of 41 CODING: WordsstE:ken are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pu lkc record for ite (s) on "� City Clerk SB 1682 36-00715B-17 20171682 1045 she intended in such election commits a felony of the third 1046 degree, punishable as provided in s. 775.082, s. 775.083, or s. 1047 775.084. 1048 (4)(a) A person who willfully and knowingly aids or advises 1049 another person in committing a violation of this section shall 1050 be punished as if he or she had committed the violation. 1051 (b) A person who willfully and knowingly agrees, conspires, 1052 combines, or confederates with another person in committing a 1053 violation of this section shall be punished as if he or she had 1054 committed the violation. 1055 (c) A person who willfully and knowingly aids or advises a 1056 person who has committed a violation of this section in avoiding 1057 or escaping detection, arrest, trial, or punishment shall be 1058 punished as if he or she had committed the violation. This 1059 paragraph does not prohibit a member of The Florida Bar from 1060 giving legal advice to a client. 1061 Section 5. Subsection (5) is added to section 718.3025, 1062 Florida Statutes, to read: 1063 718.3025 Agreements for operation, maintenance, or 1064 management of condominiums; specific requirements. - 1065 (5) A party contracting to provide maintenance or 1066 management services, or a board member of such party, may not: 1067 (a) Own 50 percent or more of the units in the condominium. 1068 (b) Purchase a property subject to a lien by the 1069 association. 1070 Section 6. Section 718.3027, Florida Statutes, is created 1071 to read: 1072 718.3027 Conflicts of interest. - 1073 (1) Directors and officers of a board of an association Page 37 of 41 CODING: Wordsstr-iekez are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pu li record for i t(s) on . City Clerk SB 1682 36-00715B-17 20171682 1074 that is not a timeshare condominium association, and the 1075 relatives of such directors and officers, must disclose to the 1076 board any activity that may reasonably be construed to be a 1077 conflict of interest. A rebuttable presumption of a conflict of 1078 interest exists if any of the following occurs without prior 1079 notice, as required in subsection (4): 1080 (a) Any director, officer, or relative of any director or 1081 officer enters into a contract for goods or services with the 1082 association. 1083 (b) Any director, officer, or relative of any director or 1084 officer holds an interest in a corporation, limited liability 1085 corporation, partnership, limited liability partnership, or 1086 other business entity that conducts business with the 1087 association or proposes to enter into a contract or other 1088 transaction with the association. 1089 (2) If any director, officer, or relative of any director 1090 or officer proposes to engage in an activity that is a conflict 1091 of interest, as described in subsection (1), the proposed 1092 activity must be listed on, and all contracts and transactional 1093 documents related to the proposed activity must be attached to, 1094 the meeting agenda. If the board votes against the proposed 1095 activity, the director, officer, or relative must notify the 1096 board in writing of his or her intention not to pursue the 1097 proposed activity, or the director or officer shall withdraw 1098 from office. If the board finds that any officer or director has 1099 violated this subsection, the board must immediately remove the 1100 officer or director from office. The vacancy shall be filled 1101 according to general law. 1102 (3) Any director, officer, or relative of any director or Page 38 of 41 CODING: Words strieken are deletions; words underlined are additions. Florida Senate - 2017 SB 1682 Submitted into the pu 1. record f r ite �l Y1— on 2, City Clerk 36-00715B-17 20171682 1103 officer who is a party to, or has an interest in, an activity 1104 that is a possible conflict of interest, as described in 1105 subsection (1), may attend the meeting at which the activity is 1106 considered by the board, and is authorized to make a 1107 presentation to the board regarding the activity. After the 1108 presentation, the director, officer, or relative must leave the 1109 meeting during the discussion of, and the vote on, the activity. 1110 Any director or officer who is a party to, or has an interest 1111 in, the activity must recuse himself or herself from the vote. 1112 (4) The board must provide notice to unit owners of a 1113 possible conflict of interest, as described in subsection (1), 1114 in accordance with the procedures in s. 718.112(2)(c). All 1115 contracts and transactional documents related to the possible 1116 conflict of interest must be attached to, and made available 1117 with, the meeting agenda. 1118 (5) Any contract entered into between any director, 1119 officer, or relative of any director or officer and the 1120 association that is not properly noticed before consideration in 1121 accordance with the procedures in s. 718.112(2)(c) is null and 1122 void. 1123 Section 7. Subsection (5) of section 718.303, Florida 1124 Statutes, is amended, and subsection (8) is added to that 1125 section, to read: 1126 718.303 Obligations of owners and occupants; remedies. - 1127 (5) An association may suspend the voting rights of a unit 1128 owner or member due to nonpayment of any fee, fine, or other 1129 monetary obligation due to the association which is more than 1130 $1,000 and more than 90 days delinquent. Proof of such 1131 obligation must be provided to the unit owner or member 30 days Page 39 of 41 CODING: WordsstriekeT are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pubi record foMen (s) on � I . City Clerk SB 1682 36-00715B-17 20171682 1132 before such suspension takes effect. A voting interest or 1133 consent right allocated to a unit owner or member which has been 1134 suspended by the association shall be subtracted from the total 1135 number of voting interests in the association, which shall be 1136 reduced by the number of suspended voting interests when 1137 calculating the total percentage or number of all voting 1138 interests available to take or approve any action, and the 1139 suspended voting interests shall not be considered for any 1140 purpose, including, but not limited to, the percentage or number 1141 of voting interests necessary to constitute a quorum, the 1142 percentage or number of voting interests required to conduct an 1143 election, or the percentage or number of voting interests 1144 required to approve an action under this chapter or pursuant to 1145 the declaration, articles of incorporation, or bylaws. The 1146 suspension ends upon full payment of all obligations currently 1147 due or overdue the association. The notice and hearing 1148 requirements under subsection (3) do not apply to a suspension 1149 imposed under this subsection. 1150 (8) A receiver may not exercise voting rights of any unit 1151 owner whose unit is placed in receivership for the benefit of 1152 the association pursuant to this chapter. 1153 Section 8. Subsection (5) of section 718.5012, Florida 1154 Statutes, is amended to read: 1155 718.5012 Ombudsman; powers and duties.—The ombudsman shall 1156 have the powers that are necessary to carry out the duties of 1157 his or her office, including the following specific powers: 1158 (5) To monitor and review procedures and disputes 1159 concerning condominium elections or meetings, including, but not 1160 limited to, recommending that the division pursue enforcement Page 40 of 41 CODING: Words striekez are deletions; words underlined are additions. Florida Senate - 2017 Submitted into the pub recorfoi d it (s) t � - � -- on City Clerk SB 1682 36-00715B-17 20171682 1161 action in any manner where there is reasonable cause to believe 1162 that election misconduct has occurred and reviewing secret 1163 ballots cast at a vote of the association. 1164 Section 9. Section 718.71, Florida Statutes, is created to 1165 read: 1166 718.71 Financial reporting.—An association shall provide an 1167 annual report to the department containing the names of all of 1168 the financial institutions with which it maintains accounts, and 1169 a copy of such report may be obtained from the department upon 1170 written request of any association member. 1171 Section 10. This act shall take effect July 1, 2017. Page 41 of 41 CODING: WordsstrieT are deletions; words underlined are additions.