Florida Senate - 2013                              CS for SB 436
       
       
       
       By the Committee on Regulated Industries; and Senator Altman
       
       
       
       
       580-01744-13                                           2013436c1
    1                        A bill to be entitled                      
    2         An act relating to residential properties; amending s.
    3         399.02, F.S.; exempting certain elevators from
    4         specific code update requirements; amending s.
    5         514.0115, F.S.; revising specified supervision and
    6         regulation exemptions for homeowners’ association
    7         swimming pools; amending s. 718.111, F.S.; revising
    8         requirements for an association’s approval of land
    9         purchases and recreational leases; revising
   10         reconstruction costs for which unit owners are
   11         responsible and authorizing the costs to be collected
   12         in a specified manner; requiring an association to
   13         repair or replace as a common expense certain
   14         condominium property damaged by an insurable event;
   15         requiring an association to allow a member or the
   16         member’s representative to use certain portable
   17         devices to make electronic copies of association
   18         records; prohibiting the association from charging the
   19         member or representative for using the portable
   20         device; revising requirements for the preparation of
   21         an association’s annual financial statement; amending
   22         s. 718.112, F.S.; revising terms of members of an
   23         association’s board of administrators and revising
   24         eligibility criteria for candidates; revising
   25         condominium unit owner meeting notice requirements;
   26         providing for nonapplicability to associations
   27         governing timeshare condominiums of certain provisions
   28         relating to elections of board members; revising
   29         recordkeeping requirements of a condominium
   30         association board; requiring commencement of
   31         challenges to an election within a specified period;
   32         providing requirements for challenging the failure of
   33         a board to duly notice and hold the required board
   34         meeting or to file the required petition for a recall;
   35         providing requirements for recalled board members to
   36         challenge the recall; prohibiting the Division of
   37         Florida Condominiums, Timeshares, and Mobile Homes of
   38         the Department of Business and Professional Regulation
   39         from accepting recall petitions for filing under
   40         certain circumstances; amending s. 718.113, F.S.;
   41         providing requirements for a condominium association
   42         board relating to the installation of hurricane
   43         shutters, impact glass, code-compliant windows or
   44         doors, and other types of code-compliant hurricane
   45         protection under certain circumstances; amending s.
   46         718.115, F.S.; conforming provisions to changes made
   47         by the act; amending s. 718.303, F.S.; revising
   48         provisions relating to imposing remedies against a
   49         noncompliant or delinquent condominium unit owner or
   50         member; amending s. 718.403, F.S.; providing
   51         requirements for the completion of phase condominiums;
   52         creating s. 718.406, F.S.; providing definitions;
   53         providing requirements for condominiums created within
   54         condominium parcels; providing for the establishment
   55         of primary condominium and secondary condominium
   56         units; providing requirements for association
   57         declarations; authorizing a primary condominium
   58         association to provide insurance and adopt hurricane
   59         shutter or hurricane protection specifications under
   60         certain conditions; providing requirements relating to
   61         assessments; providing for resolution of conflicts
   62         between primary condominium declarations and secondary
   63         condominium declarations; providing requirements
   64         relating to common expenses due the primary
   65         condominium association; amending s. 718.5011, F.S.;
   66         revising the restriction on officers and full-time
   67         employees of the ombudsman from engaging in other
   68         businesses or professions; amending s. 719.104, F.S.;
   69         requiring an association to allow a member or the
   70         member’s representative to use certain portable
   71         devices to make electronic copies of association
   72         records; prohibiting the association from charging the
   73         member or representative for using the portable
   74         device; specifying additional records that are not
   75         accessible to unit owners; amending s. 719.1055, F.S.;
   76         revising provisions relating to the amendment of
   77         cooperative documents; providing legislative findings
   78         and a finding of compelling state interest; providing
   79         criteria for consent or joinder to an amendment;
   80         requiring notice regarding proposed amendments to
   81         mortgagees; providing criteria for notification;
   82         providing for voiding certain amendments; amending s.
   83         719.106, F.S.; revising applicability of certain board
   84         of administration meeting requirements; requiring
   85         commencement of challenges to an election within a
   86         specified period; specifying certification or
   87         educational requirements for a newly elected or
   88         appointed cooperative board director; providing
   89         requirements for challenging the failure of a board to
   90         duly notice and hold the required board meeting or to
   91         file the required petition for a recall; providing
   92         requirements for recalled board members to challenge
   93         the recall; prohibiting the division from accepting
   94         recall petitions for filing under certain
   95         circumstances; providing education requirements for
   96         board members; amending s. 719.303, F.S.; revising
   97         provisions relating to imposing remedies against a
   98         noncompliant or delinquent cooperative unit owner or
   99         member; amending s. 719.501, F.S.; authorizing the
  100         division to provide training and educational programs
  101         for cooperative association board members and unit
  102         owners; amending s. 720.303, F.S.; requiring an
  103         association to allow a member or the member’s
  104         representative to use certain portable devices to make
  105         electronic copies of association records; prohibiting
  106         the association from charging the member or
  107         representative for using the portable device; revising
  108         requirements for the preparation of an association’s
  109         annual financial statement; revising the types of
  110         records that are not accessible to homeowners’
  111         association members and parcel owners; providing
  112         requirements for challenging the failure of a board to
  113         duly notice and hold the required board meeting or to
  114         file the required petition for a recall; providing
  115         requirements for recalled board members to challenge
  116         the recall; prohibiting the division from accepting
  117         recall petitions for filing under certain
  118         circumstances; amending s. 720.305, F.S.; revising
  119         provisions relating to imposing remedies against a
  120         noncompliant or delinquent homeowners’ association
  121         member and parcel owner; amending s. 720.306, F.S.;
  122         revising provisions relating to the amendment of
  123         homeowners’ association declarations; providing
  124         legislative findings and a finding of compelling state
  125         interest; providing criteria for consent or joinder to
  126         an amendment; requiring notice to mortgagees regarding
  127         proposed amendments; providing criteria for
  128         notification; providing for voiding certain
  129         amendments; revising provisions relating to right to
  130         speak at a homeowners’ association meeting; requiring
  131         commencement of challenges to an election within a
  132         specified period; providing an effective date.
  133  
  134  Be It Enacted by the Legislature of the State of Florida:
  135  
  136         Section 1. Subsection (9) of section 399.02, Florida
  137  Statutes, is amended to read:
  138         399.02 General requirements.—
  139         (9) Updates to the Safety Code for Existing Elevators and
  140  Escalators, ASME A17.1 and A17.3, which require Phase II
  141  Firefighters’ Service on elevators may not be enforced until
  142  July 1, 2015, or until the elevator is replaced or requires
  143  major modification, whichever occurs first, on elevators in
  144  condominiums or multifamily residential buildings, including
  145  those that are part of a continuing care facility licensed under
  146  chapter 651, or similar retirement community with apartments,
  147  having a certificate of occupancy by the local building
  148  authority that was issued before July 1, 2008. This exception
  149  does not prevent an elevator owner from requesting a variance
  150  from the applicable codes before or after July 1, 2015. This
  151  subsection does not prohibit the division from granting
  152  variances pursuant to s. 120.542 and subsection (8). The
  153  division shall adopt rules to administer this subsection.
  154         Section 2. Subsection (2) of section 514.0115, Florida
  155  Statutes, is amended to read:
  156         514.0115 Exemptions from supervision or regulation;
  157  variances.—
  158         (2)(a) Pools serving no more than 32 condominium units, or
  159  cooperative units, or parcels in a homeowners’ association as
  160  defined in s. 720.301, which are not operated as a transient
  161  public lodging establishment, are shall be exempt from
  162  supervision under this chapter, except for water quality.
  163         (b) Pools serving more than 32 condominium units, or
  164  cooperative units, or parcels in a homeowners’ association as
  165  defined in s. 720.301, associations of more than 32 units and
  166  whose recorded documents prohibit the rental or sublease of the
  167  units or parcels for periods of less than 60 days are exempt
  168  from supervision under this chapter, except that the
  169  condominium, or cooperative, or parcel owner or association must
  170  file applications with the department and obtain construction
  171  plans approval and receive an initial operating permit. The
  172  department shall inspect the swimming pools at such places
  173  annually, at the fee set forth in s. 514.033(3), or upon request
  174  by a unit owner, to determine compliance with department rules
  175  relating to water quality and lifesaving equipment. The
  176  department may not require compliance with rules relating to
  177  swimming pool lifeguard standards.
  178         Section 3. Subsection (8), paragraphs (g) and (j) of
  179  subsection (11), paragraph (c) of subsection (12), and
  180  paragraphs (a) and (b) of subsection (13) of section 718.111,
  181  Florida Statutes, are amended to read:
  182         718.111 The association.—
  183         (8) PURCHASE OF LEASES.—The association has the power to
  184  purchase any land or recreation lease, subject to the same
  185  manner of approval as in s. 718.114 for the acquisition of
  186  leaseholds upon the approval of such voting interest as is
  187  required by the declaration. If the declaration makes no
  188  provision for acquisition of the land or recreation lease, the
  189  vote required shall be that required to amend the declaration to
  190  permit the acquisition.
  191         (11) INSURANCE.—In order to protect the safety, health, and
  192  welfare of the people of the State of Florida and to ensure
  193  consistency in the provision of insurance coverage to
  194  condominiums and their unit owners, this subsection applies to
  195  every residential condominium in the state, regardless of the
  196  date of its declaration of condominium. It is the intent of the
  197  Legislature to encourage lower or stable insurance premiums for
  198  associations described in this subsection.
  199         (g) A condominium unit owner’s policy must conform to the
  200  requirements of s. 627.714.
  201         1. All reconstruction work after a property loss must be
  202  undertaken by the association except as otherwise authorized in
  203  this section. A unit owner may undertake reconstruction work on
  204  portions of the unit with the prior written consent of the board
  205  of administration. However, such work may be conditioned upon
  206  the approval of the repair methods, the qualifications of the
  207  proposed contractor, or the contract that is used for that
  208  purpose. A unit owner must obtain all required governmental
  209  permits and approvals before commencing reconstruction.
  210         2. Unit owners are responsible for the cost of
  211  reconstruction of any portions of the condominium property for
  212  which the unit owner is required to carry property insurance, or
  213  for which the unit owner is responsible under paragraph (j), and
  214  the cost of any such reconstruction work undertaken by the
  215  association is chargeable to the unit owner and enforceable as
  216  an assessment and may be collected in the manner provided for
  217  the collection of assessments pursuant to s. 718.116.
  218         3. A multicondominium association may elect, by a majority
  219  vote of the collective members of the condominiums operated by
  220  the association, to operate the condominiums as a single
  221  condominium for purposes of insurance matters, including, but
  222  not limited to, the purchase of the property insurance required
  223  by this section and the apportionment of deductibles and damages
  224  in excess of coverage. The election to aggregate the treatment
  225  of insurance premiums, deductibles, and excess damages
  226  constitutes an amendment to the declaration of all condominiums
  227  operated by the association, and the costs of insurance must be
  228  stated in the association budget. The amendments must be
  229  recorded as required by s. 718.110.
  230         (j) Any portion of the condominium property that must be
  231  insured by the association against property loss pursuant to
  232  paragraph (f) which is damaged by an insurable event shall be
  233  reconstructed, repaired, or replaced as necessary by the
  234  association as a common expense. All property insurance
  235  deductibles, uninsured losses, and other damages in excess of
  236  property insurance coverage under the property insurance
  237  policies maintained by the association are a common expense of
  238  the condominium, except that:
  239         1. A unit owner is responsible for the costs of repair or
  240  replacement of any portion of the condominium property not paid
  241  by insurance proceeds if such damage is caused by intentional
  242  conduct, negligence, or failure to comply with the terms of the
  243  declaration or the rules of the association by a unit owner, the
  244  members of his or her family, unit occupants, tenants, guests,
  245  or invitees, without compromise of the subrogation rights of the
  246  insurer.
  247         2. The provisions of subparagraph 1. regarding the
  248  financial responsibility of a unit owner for the costs of
  249  repairing or replacing other portions of the condominium
  250  property also apply to the costs of repair or replacement of
  251  personal property of other unit owners or the association, as
  252  well as other property, whether real or personal, which the unit
  253  owners are required to insure.
  254         3. To the extent the cost of repair or reconstruction for
  255  which the unit owner is responsible under this paragraph is
  256  reimbursed to the association by insurance proceeds, and the
  257  association has collected the cost of such repair or
  258  reconstruction from the unit owner, the association shall
  259  reimburse the unit owner without the waiver of any rights of
  260  subrogation.
  261         4. The association is not obligated to pay for
  262  reconstruction or repairs of property losses as a common expense
  263  if the property losses were known or should have been known to a
  264  unit owner and were not reported to the association until after
  265  the insurance claim of the association for that property was
  266  settled or resolved with finality, or denied because it was
  267  untimely filed.
  268         (12) OFFICIAL RECORDS.—
  269         (c) The official records of the association are open to
  270  inspection by any association member or the authorized
  271  representative of such member at all reasonable times. The right
  272  to inspect the records includes the right to make or obtain
  273  copies, at the reasonable expense, if any, of the member. The
  274  association may adopt reasonable rules regarding the frequency,
  275  time, location, notice, and manner of record inspections and
  276  copying. The failure of an association to provide the records
  277  within 10 working days after receipt of a written request
  278  creates a rebuttable presumption that the association willfully
  279  failed to comply with this paragraph. A unit owner who is denied
  280  access to official records is entitled to the actual damages or
  281  minimum damages for the association’s willful failure to comply.
  282  Minimum damages are $50 per calendar day for up to 10 days,
  283  beginning on the 11th working day after receipt of the written
  284  request. The failure to permit inspection entitles any person
  285  prevailing in an enforcement action to recover reasonable
  286  attorney attorney’s fees from the person in control of the
  287  records who, directly or indirectly, knowingly denied access to
  288  the records. Any person who knowingly or intentionally defaces
  289  or destroys accounting records that are required by this chapter
  290  to be maintained during the period for which such records are
  291  required to be maintained, or who knowingly or intentionally
  292  fails to create or maintain accounting records that are required
  293  to be created or maintained, with the intent of causing harm to
  294  the association or one or more of its members, is personally
  295  subject to a civil penalty pursuant to s. 718.501(1)(d). The
  296  association shall maintain an adequate number of copies of the
  297  declaration, articles of incorporation, bylaws, and rules, and
  298  all amendments to each of the foregoing, as well as the question
  299  and answer sheet as described in s. 718.504 and year-end
  300  financial information required under this section, on the
  301  condominium property to ensure their availability to unit owners
  302  and prospective purchasers, and may charge its actual costs for
  303  preparing and furnishing these documents to those requesting the
  304  documents. An association shall allow a member or his or her
  305  authorized representative to use a portable device, including a
  306  smartphone, tablet, portable scanner, or any other technology
  307  capable of scanning or taking photographs, to make an electronic
  308  copy of the official records in lieu of the association’s
  309  providing the member or his or her authorized representative
  310  with a copy of such records. The association may not charge a
  311  member or his or her authorized representative for the use of a
  312  portable device. Notwithstanding this paragraph, the following
  313  records are not accessible to unit owners:
  314         1. Any record protected by the lawyer-client privilege as
  315  described in s. 90.502 and any record protected by the work
  316  product privilege, including a record prepared by an association
  317  attorney or prepared at the attorney’s express direction, which
  318  reflects a mental impression, conclusion, litigation strategy,
  319  or legal theory of the attorney or the association, and which
  320  was prepared exclusively for civil or criminal litigation or for
  321  adversarial administrative proceedings, or which was prepared in
  322  anticipation of such litigation or proceedings until the
  323  conclusion of the litigation or proceedings.
  324         2. Information obtained by an association in connection
  325  with the approval of the lease, sale, or other transfer of a
  326  unit.
  327         3. Personnel records of association or management company
  328  employees, including, but not limited to, disciplinary, payroll,
  329  health, and insurance records. For purposes of this
  330  subparagraph, the term “personnel records” does not include
  331  written employment agreements with an association employee or
  332  management company, or budgetary or financial records that
  333  indicate the compensation paid to an association employee.
  334         4. Medical records of unit owners.
  335         5. Social security numbers, driver driver’s license
  336  numbers, credit card numbers, e-mail addresses, telephone
  337  numbers, facsimile numbers, emergency contact information,
  338  addresses of a unit owner other than as provided to fulfill the
  339  association’s notice requirements, and other personal
  340  identifying information of any person, excluding the person’s
  341  name, unit designation, mailing address, property address, and
  342  any address, e-mail address, or facsimile number provided to the
  343  association to fulfill the association’s notice requirements.
  344  However, an owner may consent in writing to the disclosure of
  345  protected information described in this subparagraph. The
  346  association is not liable for the inadvertent disclosure of
  347  information that is protected under this subparagraph if the
  348  information is included in an official record of the association
  349  and is voluntarily provided by an owner and not requested by the
  350  association.
  351         6.  Electronic security measures that are used by the
  352  association to safeguard data, including passwords.
  353         7. The software and operating system used by the
  354  association which allow the manipulation of data, even if the
  355  owner owns a copy of the same software used by the association.
  356  The data is part of the official records of the association.
  357         (13) FINANCIAL REPORTING.—Within 90 days after the end of
  358  the fiscal year, or annually on a date provided in the bylaws,
  359  the association shall prepare and complete, or contract for the
  360  preparation and completion of, a financial report for the
  361  preceding fiscal year. Within 21 days after the final financial
  362  report is completed by the association or received from the
  363  third party, but not later than 120 days after the end of the
  364  fiscal year or other date as provided in the bylaws, the
  365  association shall mail to each unit owner at the address last
  366  furnished to the association by the unit owner, or hand deliver
  367  to each unit owner, a copy of the financial report or a notice
  368  that a copy of the financial report will be mailed or hand
  369  delivered to the unit owner, without charge, upon receipt of a
  370  written request from the unit owner. The division shall adopt
  371  rules setting forth uniform accounting principles and standards
  372  to be used by all associations and addressing the financial
  373  reporting requirements for multicondominium associations. The
  374  rules must include, but not be limited to, standards for
  375  presenting a summary of association reserves, including a good
  376  faith estimate disclosing the annual amount of reserve funds
  377  that would be necessary for the association to fully fund
  378  reserves for each reserve item based on the straight-line
  379  accounting method. This disclosure is not applicable to reserves
  380  funded via the pooling method. In adopting such rules, the
  381  division shall consider the number of members and annual
  382  revenues of an association. Financial reports shall be prepared
  383  as follows:
  384         (a) An association that meets the criteria of this
  385  paragraph shall prepare a complete set of financial statements
  386  in accordance with generally accepted accounting principles. The
  387  financial statements must be based upon the association’s total
  388  annual revenues, as follows:
  389         1. An association with total annual revenues of $200,000
  390  $100,000 or more, but less than $300,000 $200,000, shall prepare
  391  compiled financial statements.
  392         2. An association with total annual revenues of at least
  393  $300,000 $200,000, but less than $500,000 $400,000, shall
  394  prepare reviewed financial statements.
  395         3. An association with total annual revenues of $500,000
  396  $400,000 or more shall prepare audited financial statements.
  397         (b)1. An association with total annual revenues of less
  398  than $200,000 $100,000 shall prepare a report of cash receipts
  399  and expenditures.
  400         2. An association that operates fewer than 75 units,
  401  regardless of the association’s annual revenues, shall prepare a
  402  report of cash receipts and expenditures in lieu of financial
  403  statements required by paragraph (a).
  404         3. A report of cash receipts and disbursements must
  405  disclose the amount of receipts by accounts and receipt
  406  classifications and the amount of expenses by accounts and
  407  expense classifications, including, but not limited to, the
  408  following, as applicable: costs for security, professional and
  409  management fees and expenses, taxes, costs for recreation
  410  facilities, expenses for refuse collection and utility services,
  411  expenses for lawn care, costs for building maintenance and
  412  repair, insurance costs, administration and salary expenses, and
  413  reserves accumulated and expended for capital expenditures,
  414  deferred maintenance, and any other category for which the
  415  association maintains reserves.
  416         Section 4. Paragraphs (d) and (j) of subsection (2) of
  417  section 718.112, Florida Statutes, are amended to read:
  418         718.112 Bylaws.—
  419         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  420  following and, if they do not do so, shall be deemed to include
  421  the following:
  422         (d) Unit owner meetings.—
  423         1. An annual meeting of the unit owners shall be held at
  424  the location provided in the association bylaws and, if the
  425  bylaws are silent as to the location, the meeting shall be held
  426  within 45 miles of the condominium property. However, such
  427  distance requirement does not apply to an association governing
  428  a timeshare condominium.
  429         2. Unless the bylaws provide otherwise, a vacancy on the
  430  board caused by the expiration of a director’s term shall be
  431  filled by electing a new board member, and the election must be
  432  by secret ballot. An election is not required if the number of
  433  vacancies equals or exceeds the number of candidates. For
  434  purposes of this paragraph, the term “candidate” means an
  435  eligible person who has timely submitted the written notice, as
  436  described in sub-subparagraph 4.a., of his or her intention to
  437  become a candidate. Except in a timeshare condominium, or if the
  438  staggered term of a board member does not expire until a later
  439  annual meeting, or if all members’ terms would otherwise expire
  440  but there are no candidates, the terms of all board members
  441  expire at the annual meeting, and such members may stand for
  442  reelection unless prohibited by the bylaws. If the bylaws or
  443  articles of incorporation permit staggered terms of no more than
  444  2 years and upon approval of a majority of the total voting
  445  interests, the association board members may serve 2-year
  446  staggered terms. If the number of board members whose terms
  447  expire at the annual meeting equals or exceeds the number of
  448  candidates, the candidates become members of the board effective
  449  upon the adjournment of the annual meeting. Unless the bylaws
  450  provide otherwise, any remaining vacancies shall be filled by
  451  the affirmative vote of the majority of the directors making up
  452  the newly constituted board even if the directors constitute
  453  less than a quorum or there is only one director. In a
  454  condominium association of more than 10 units or in a
  455  condominium association that does not include timeshare units or
  456  timeshare interests, coowners of a unit may not serve as members
  457  of the board of directors at the same time unless they own more
  458  than one unit or unless there are not enough eligible candidates
  459  to fill the vacancies on the board at the time of the vacancy.
  460  Any unit owner desiring to be a candidate for board membership
  461  must comply with sub-subparagraph 4.a. and must be eligible to
  462  be a candidate to serve on the board of directors at the time of
  463  the deadline for submitting a notice of intent to run in order
  464  to have his or her name listed as a proper candidate on the
  465  ballot or to serve on the board. A person who has been suspended
  466  or removed by the division under this chapter, or who is
  467  delinquent in the payment of any monetary obligation due to the
  468  association fee, fine, or special or regular assessment as
  469  provided in paragraph (n), is not eligible to be a candidate for
  470  board membership and may not be listed on the ballot. A person
  471  who has been convicted of any felony in this state or in a
  472  United States District or Territorial Court, or who has been
  473  convicted of any offense in another jurisdiction which would be
  474  considered a felony if committed in this state, is not eligible
  475  for board membership unless such felon’s civil rights have been
  476  restored for at least 5 years as of the date such person seeks
  477  election to the board. The validity of an action by the board is
  478  not affected if it is later determined that a board member is
  479  ineligible for board membership due to having been convicted of
  480  a felony.
  481         3. The bylaws must provide the method of calling meetings
  482  of unit owners, including annual meetings. Written notice must
  483  include an agenda, must be mailed, hand delivered, or
  484  electronically transmitted to each unit owner at least 14 days
  485  before the annual meeting, and must be posted in a conspicuous
  486  place on the condominium property at least 14 continuous days
  487  before the annual meeting. Upon notice to the unit owners, the
  488  board shall, by duly adopted rule, designate a specific location
  489  on the condominium property or association property where all
  490  notices of unit owner meetings shall be posted. This requirement
  491  does not apply if there is no condominium property or
  492  association property for posting notices. In lieu of, or in
  493  addition to, the physical posting of meeting notices, the
  494  association may, by reasonable rule, adopt a procedure for
  495  conspicuously posting and repeatedly broadcasting the notice and
  496  the agenda on a closed-circuit cable television system serving
  497  the condominium association. However, if broadcast notice is
  498  used in lieu of a notice posted physically on the condominium
  499  property, the notice and agenda must be broadcast at least four
  500  times every broadcast hour of each day that a posted notice is
  501  otherwise required under this section. If broadcast notice is
  502  provided, the notice and agenda must be broadcast in a manner
  503  and for a sufficient continuous length of time so as to allow an
  504  average reader to observe the notice and read and comprehend the
  505  entire content of the notice and the agenda. Unless a unit owner
  506  waives in writing the right to receive notice of the annual
  507  meeting, such notice must be hand delivered, mailed, or
  508  electronically transmitted to each unit owner. Notice for
  509  meetings and notice for all other purposes must be mailed to
  510  each unit owner at the address last furnished to the association
  511  by the unit owner, or hand delivered to each unit owner.
  512  However, if a unit is owned by more than one person, the
  513  association must provide notice to the address that the
  514  developer identifies for that purpose and thereafter as one or
  515  more of the owners of the unit advise the association in
  516  writing, or if no address is given or the owners of the unit do
  517  not agree, to the address provided on the deed of record. An
  518  officer of the association, or the manager or other person
  519  providing notice of the association meeting, must provide an
  520  affidavit or United States Postal Service certificate of
  521  mailing, to be included in the official records of the
  522  association affirming that the notice was mailed or hand
  523  delivered in accordance with this provision.
  524         4. The members of the board shall be elected by written
  525  ballot or voting machine. Proxies may not be used in electing
  526  the board in general elections or elections to fill vacancies
  527  caused by recall, resignation, or otherwise, unless otherwise
  528  provided in this chapter. This subparagraph does not apply to an
  529  association governing a timeshare condominium.
  530         a. At least 60 days before a scheduled election, the
  531  association shall mail, deliver, or electronically transmit, by
  532  separate association mailing or included in another association
  533  mailing, delivery, or transmission, including regularly
  534  published newsletters, to each unit owner entitled to a vote, a
  535  first notice of the date of the election. Any unit owner or
  536  other eligible person desiring to be a candidate for the board
  537  must give written notice of his or her intent to be a candidate
  538  to the association at least 40 days before a scheduled election.
  539  Together with the written notice and agenda as set forth in
  540  subparagraph 3., the association shall mail, deliver, or
  541  electronically transmit a second notice of the election to all
  542  unit owners entitled to vote, together with a ballot that lists
  543  all candidates. Upon request of a candidate, an information
  544  sheet, no larger than 81/2 inches by 11 inches, which must be
  545  furnished by the candidate at least 35 days before the election,
  546  must be included with the mailing, delivery, or transmission of
  547  the ballot, with the costs of mailing, delivery, or electronic
  548  transmission and copying to be borne by the association. The
  549  association is not liable for the contents of the information
  550  sheets prepared by the candidates. In order to reduce costs, the
  551  association may print or duplicate the information sheets on
  552  both sides of the paper. The division shall by rule establish
  553  voting procedures consistent with this sub-subparagraph,
  554  including rules establishing procedures for giving notice by
  555  electronic transmission and rules providing for the secrecy of
  556  ballots. Elections shall be decided by a plurality of ballots
  557  cast. There is no quorum requirement; however, at least 20
  558  percent of the eligible voters must cast a ballot in order to
  559  have a valid election. A unit owner may not permit any other
  560  person to vote his or her ballot, and any ballots improperly
  561  cast are invalid. A unit owner who violates this provision may
  562  be fined by the association in accordance with s. 718.303. A
  563  unit owner who needs assistance in casting the ballot for the
  564  reasons stated in s. 101.051 may obtain such assistance. The
  565  regular election must occur on the date of the annual meeting.
  566  Notwithstanding this sub-subparagraph, an election is not
  567  required unless more candidates file notices of intent to run or
  568  are nominated than board vacancies exist.
  569         b. Within 90 days after being elected or appointed to the
  570  board, each newly elected or appointed director shall certify in
  571  writing to the secretary of the association that he or she has
  572  read the association’s declaration of condominium, articles of
  573  incorporation, bylaws, and current written policies; that he or
  574  she will work to uphold such documents and policies to the best
  575  of his or her ability; and that he or she will faithfully
  576  discharge his or her fiduciary responsibility to the
  577  association’s members. In lieu of this written certification,
  578  within 90 days after being elected or appointed to the board,
  579  the newly elected or appointed director may submit a certificate
  580  of having satisfactorily completed the educational curriculum
  581  administered by a division-approved condominium education
  582  provider within 1 year before or 90 days after the date of
  583  election or appointment. The written certification or
  584  educational certificate is valid and does not have to be
  585  resubmitted as long as the director serves on the board without
  586  interruption. A director who fails to timely file the written
  587  certification or educational certificate is suspended from
  588  service on the board until he or she complies with this sub
  589  subparagraph. The board may temporarily fill the vacancy during
  590  the period of suspension. The secretary shall cause the
  591  association to retain a director’s written certification or
  592  educational certificate for inspection by the members for 5
  593  years after a director’s election or the duration of the
  594  director’s uninterrupted tenure, whichever is longer. Failure to
  595  have such written certification or educational certificate on
  596  file does not affect the validity of any board action.
  597         c. Any challenge to the election process must be commenced
  598  within 60 days after the election results are announced.
  599         5. Any approval by unit owners called for by this chapter
  600  or the applicable declaration or bylaws, including, but not
  601  limited to, the approval requirement in s. 718.111(8), must be
  602  made at a duly noticed meeting of unit owners and is subject to
  603  all requirements of this chapter or the applicable condominium
  604  documents relating to unit owner decisionmaking, except that
  605  unit owners may take action by written agreement, without
  606  meetings, on matters for which action by written agreement
  607  without meetings is expressly allowed by the applicable bylaws
  608  or declaration or any law that provides for such action.
  609         6. Unit owners may waive notice of specific meetings if
  610  allowed by the applicable bylaws or declaration or any law. If
  611  authorized by the bylaws, notice of meetings of the board of
  612  administration, unit owner meetings, except unit owner meetings
  613  called to recall board members under paragraph (j), and
  614  committee meetings may be given by electronic transmission to
  615  unit owners who consent to receive notice by electronic
  616  transmission.
  617         7. Unit owners have the right to participate in meetings of
  618  unit owners with reference to all designated agenda items.
  619  However, the association may adopt reasonable rules governing
  620  the frequency, duration, and manner of unit owner participation.
  621         8. A unit owner may tape record or videotape a meeting of
  622  the unit owners subject to reasonable rules adopted by the
  623  division.
  624         9. Unless otherwise provided in the bylaws, any vacancy
  625  occurring on the board before the expiration of a term may be
  626  filled by the affirmative vote of the majority of the remaining
  627  directors, even if the remaining directors constitute less than
  628  a quorum, or by the sole remaining director. In the alternative,
  629  a board may hold an election to fill the vacancy, in which case
  630  the election procedures must conform to sub-subparagraph 4.a.
  631  unless the association governs 10 units or fewer and has opted
  632  out of the statutory election process, in which case the bylaws
  633  of the association control. Unless otherwise provided in the
  634  bylaws, a board member appointed or elected under this section
  635  shall fill the vacancy for the unexpired term of the seat being
  636  filled. Filling vacancies created by recall is governed by
  637  paragraph (j) and rules adopted by the division.
  638         10. This chapter does not limit the use of general or
  639  limited proxies, require the use of general or limited proxies,
  640  or require the use of a written ballot or voting machine for any
  641  agenda item or election at any meeting of a timeshare
  642  condominium association.
  643  
  644  Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an
  645  association of 10 or fewer units may, by affirmative vote of a
  646  majority of the total voting interests, provide for different
  647  voting and election procedures in its bylaws, which may be by a
  648  proxy specifically delineating the different voting and election
  649  procedures. The different voting and election procedures may
  650  provide for elections to be conducted by limited or general
  651  proxy.
  652         (j) Recall of board members.—Subject to the provisions of
  653  s. 718.301, any member of the board of administration may be
  654  recalled and removed from office with or without cause by the
  655  vote or agreement in writing by a majority of all the voting
  656  interests. A special meeting of the unit owners to recall a
  657  member or members of the board of administration may be called
  658  by 10 percent of the voting interests giving notice of the
  659  meeting as required for a meeting of unit owners, and the notice
  660  shall state the purpose of the meeting. Electronic transmission
  661  may not be used as a method of giving notice of a meeting called
  662  in whole or in part for this purpose.
  663         1. If the recall is approved by a majority of all voting
  664  interests by a vote at a meeting, the recall will be effective
  665  as provided in this paragraph herein. The board shall duly
  666  notice and hold a board meeting within 5 full business days
  667  after of the adjournment of the unit owner meeting to recall one
  668  or more board members. At the meeting, the board shall either
  669  certify the recall, in which case such member or members shall
  670  be recalled effective immediately and shall turn over to the
  671  board within 5 full business days any and all records and
  672  property of the association in their possession, or shall
  673  proceed as set forth in subparagraph 3.
  674         2. If the proposed recall is by an agreement in writing by
  675  a majority of all voting interests, the agreement in writing or
  676  a copy thereof shall be served on the association by certified
  677  mail or by personal service in the manner authorized by chapter
  678  48 and the Florida Rules of Civil Procedure. The board of
  679  administration shall duly notice and hold a meeting of the board
  680  within 5 full business days after receipt of the agreement in
  681  writing. At the meeting, the board shall either certify the
  682  written agreement to recall a member or members of the board, in
  683  which case such member or members shall be recalled effective
  684  immediately and shall turn over to the board within 5 full
  685  business days any and all records and property of the
  686  association in their possession, or proceed as described in
  687  subparagraph 3.
  688         3. If the board determines not to certify the written
  689  agreement to recall a member or members of the board, or does
  690  not certify the recall by a vote at a meeting, the board shall,
  691  within 5 full business days after the meeting, file with the
  692  division a petition for arbitration pursuant to the procedures
  693  in s. 718.1255. For the purposes of this section, the unit
  694  owners who voted at the meeting or who executed the agreement in
  695  writing shall constitute one party under the petition for
  696  arbitration. If the arbitrator certifies the recall as to any
  697  member or members of the board, the recall will be effective
  698  upon mailing of the final order of arbitration to the
  699  association. If the association fails to comply with the order
  700  of the arbitrator, the division may take action pursuant to s.
  701  718.501. Any member or members so recalled shall deliver to the
  702  board any and all records of the association in their possession
  703  within 5 full business days after of the effective date of the
  704  recall.
  705         4. If the board fails to duly notice and hold a board
  706  meeting within 5 full business days after of service of an
  707  agreement in writing or within 5 full business days after of the
  708  adjournment of the unit owner recall meeting, the recall shall
  709  be deemed effective and the board members so recalled shall
  710  immediately turn over to the board any and all records and
  711  property of the association.
  712         5. If the board fails to duly notice and hold the required
  713  meeting or fails to file the required petition, the unit owner
  714  representative may file a petition pursuant to s. 718.1255
  715  challenging the board’s failure to act. The petition must be
  716  filed within 60 days after the expiration of the applicable 5
  717  full-business-day period. The review of a petition under this
  718  subparagraph is limited to the sufficiency of service on the
  719  board and the facial validity of the written agreement or
  720  ballots filed.
  721         6.5. If a vacancy occurs on the board as a result of a
  722  recall or removal and less than a majority of the board members
  723  are removed, the vacancy may be filled by the affirmative vote
  724  of a majority of the remaining directors, notwithstanding any
  725  provision to the contrary contained in this subsection. If
  726  vacancies occur on the board as a result of a recall and a
  727  majority or more of the board members are removed, the vacancies
  728  shall be filled in accordance with procedural rules to be
  729  adopted by the division, which rules need not be consistent with
  730  this subsection. The rules must provide procedures governing the
  731  conduct of the recall election as well as the operation of the
  732  association during the period after a recall but before prior to
  733  the recall election.
  734         7. A board member who has been recalled may file a petition
  735  pursuant to s. 718.1255 challenging the validity of the recall.
  736  The petition must be filed within 60 days after the recall is
  737  deemed certified. The association and the unit owner
  738  representative shall be named as the respondents.
  739         8. The division may not accept for filing a recall
  740  petition, whether filed pursuant to subparagraph 1.,
  741  subparagraph 2., subparagraph 5., or subparagraph 7. and
  742  regardless of whether the recall was certified, when there are
  743  60 or fewer days until the scheduled reelection of the board
  744  member sought to be recalled or when 60 or fewer days have
  745  elapsed since the election of the board member sought to be
  746  recalled.
  747         Section 5. Subsection (5) of section 718.113, Florida
  748  Statutes, is amended to read:
  749         718.113 Maintenance; limitation upon improvement; display
  750  of flag; hurricane shutters and protection; display of religious
  751  decorations.—
  752         (5) Each board of administration shall adopt hurricane
  753  shutter specifications for each building within each condominium
  754  operated by the association which shall include color, style,
  755  and other factors deemed relevant by the board. All
  756  specifications adopted by the board must comply with the
  757  applicable building code.
  758         (a) The board may, subject to the provisions of s.
  759  718.3026, and the approval of a majority of voting interests of
  760  the condominium, install hurricane shutters, impact glass, or
  761  other code-compliant windows or doors, or other types of code
  762  compliant hurricane protection that comply complies with or
  763  exceed exceeds the applicable building code. However, a vote of
  764  the owners is not required if the maintenance, repair, and
  765  replacement of hurricane shutters, impact glass, or other code
  766  compliant windows or doors, or other types of code-compliant
  767  hurricane protection are the responsibility of the association
  768  pursuant to the declaration of condominium. If hurricane
  769  protection or laminated glass or window film architecturally
  770  designed to function as hurricane protection that which complies
  771  with or exceeds the current applicable building code has been
  772  previously installed, the board may not install hurricane
  773  shutters, hurricane protection, or impact glass, or other code
  774  compliant windows or doors, or other types of code-compliant
  775  hurricane protection except upon approval by a majority vote of
  776  the voting interests.
  777         (b) The association is responsible for the maintenance,
  778  repair, and replacement of the hurricane shutters, impact glass,
  779  code-compliant windows or doors, or other types of code
  780  compliant hurricane protection authorized by this subsection if
  781  such property hurricane shutters or other hurricane protection
  782  is the responsibility of the association pursuant to the
  783  declaration of condominium. If the hurricane shutters, impact
  784  glass, code-compliant windows or doors, or other types of code
  785  compliant hurricane protection authorized by this subsection are
  786  the responsibility of the unit owners pursuant to the
  787  declaration of condominium, the maintenance, repair, and
  788  replacement of such items are the responsibility of the unit
  789  owner.
  790         (c) The board may operate shutters, impact glass, code
  791  compliant windows or doors, or other types of code-compliant
  792  hurricane protection installed pursuant to this subsection
  793  without permission of the unit owners only if such operation is
  794  necessary to preserve and protect the condominium property and
  795  association property. The installation, replacement, operation,
  796  repair, and maintenance of such shutters, impact glass, code
  797  compliant windows or doors, or other types of code-compliant
  798  hurricane protection in accordance with the procedures set forth
  799  in this paragraph are not a material alteration to the common
  800  elements or association property within the meaning of this
  801  section.
  802         (d) Notwithstanding any other provision in the condominium
  803  documents, if approval is required by the documents, a board may
  804  not refuse to approve the installation or replacement of
  805  hurricane shutters, impact glass, code-compliant windows or
  806  doors, or other types of code-compliant hurricane protection by
  807  a unit owner conforming to the specifications adopted by the
  808  board.
  809         Section 6. Paragraph (e) of subsection (1) of section
  810  718.115, Florida Statutes, is amended to read:
  811         718.115 Common expenses and common surplus.—
  812         (1)
  813         (e) The expense of installation, replacement, operation,
  814  repair, and maintenance of hurricane shutters, impact glass,
  815  code-compliant windows or doors, or other types of code
  816  compliant hurricane protection by the board pursuant to s.
  817  718.113(5) constitutes shall constitute a common expense as
  818  defined herein and shall be collected as provided in this
  819  section if the association is responsible for the maintenance,
  820  repair, and replacement of the hurricane shutters, impact glass,
  821  code-compliant windows or doors, or other types of code
  822  compliant hurricane protection pursuant to the declaration of
  823  condominium. However, if the maintenance, repair, and
  824  replacement of the hurricane shutters, impact glass, code
  825  compliant windows or doors, or other types of code-compliant
  826  hurricane protection are is the responsibility of the unit
  827  owners pursuant to the declaration of condominium, the cost of
  828  the installation of the hurricane shutters, impact glass, code
  829  compliant windows or doors, or other types of code-compliant
  830  hurricane protection is shall not be a common expense and, but
  831  shall be charged individually to the unit owners based on the
  832  cost of installation of the hurricane shutters, impact glass,
  833  code-compliant windows or doors, or other types of code
  834  compliant hurricane protection appurtenant to the unit.
  835  Notwithstanding the provisions of s. 718.116(9), and regardless
  836  of whether or not the declaration requires the association or
  837  unit owners to maintain, repair, or replace hurricane shutters,
  838  impact glass, code-compliant windows or doors, or other types of
  839  code-compliant hurricane protection, a unit owner who has
  840  previously installed hurricane shutters in accordance with s.
  841  718.113(5) that comply with the current applicable building code
  842  shall receive a credit when the shutters are installed; a unit
  843  owner who has previously installed impact glass or code
  844  compliant windows or doors that comply with the current
  845  applicable building code shall receive a credit when the impact
  846  glass or code-compliant windows or doors are installed; and a
  847  unit owner who has installed, other types of code-compliant
  848  hurricane protection that comply with the current applicable
  849  building code shall receive a credit when the same type of other
  850  code-compliant hurricane protection is installed, and the or
  851  laminated glass architecturally designed to function as
  852  hurricane protection, which hurricane shutters or other
  853  hurricane protection or laminated glass comply with the current
  854  applicable building code, shall receive a credit shall be equal
  855  to the pro rata portion of the assessed installation cost
  856  assigned to each unit. However, such unit owner remains shall
  857  remain responsible for the pro rata share of expenses for
  858  hurricane shutters, impact glass, code-compliant windows or
  859  doors, or other types of code-compliant hurricane protection
  860  installed on common elements and association property by the
  861  board pursuant to s. 718.113(5), and remains shall remain
  862  responsible for a pro rata share of the expense of the
  863  replacement, operation, repair, and maintenance of such
  864  shutters, impact glass, code-compliant windows or doors, or
  865  other types of code-compliant hurricane protection.
  866         Section 7. Paragraph (a) of subsection (3) of section
  867  718.303, Florida Statutes, is amended to read:
  868         718.303 Obligations of owners and occupants; remedies.—
  869         (3) The association may levy reasonable fines for the
  870  failure of the owner of the unit or its occupant, licensee, or
  871  invitee to comply with any provision of the declaration, the
  872  association bylaws, or reasonable rules of the association. A
  873  fine may not become a lien against a unit. A fine may be levied
  874  on the basis of each day of a continuing violation, with a
  875  single notice and opportunity for hearing. However, the fine may
  876  not exceed $100 per violation, or $1,000 in the aggregate.
  877         (a) An association may suspend, for a reasonable period of
  878  time, the right of a unit owner, or a unit owner’s tenant,
  879  guest, or invitee, to use the common elements, common
  880  facilities, or any other association property for failure to
  881  comply with any provision of the declaration, the association
  882  bylaws, or reasonable rules of the association. This paragraph
  883  does not apply to limited common elements intended to be used
  884  only by that unit, common elements needed to access the unit,
  885  utility services provided to the unit, parking spaces, or
  886  elevators.
  887         Section 8. Subsection (1) of section 718.403, Florida
  888  Statutes, is amended to read:
  889         718.403 Phase condominiums.—
  890         (1) Notwithstanding the provisions of s. 718.110, a
  891  developer may develop a condominium in phases, if the original
  892  declaration of condominium submitting the initial phase to
  893  condominium ownership or an amendment to the declaration which
  894  has been approved by all of the unit owners and unit mortgagees
  895  provides for and describes in detail all anticipated phases; the
  896  impact, if any, which the completion of subsequent phases would
  897  have upon the initial phase; and the time period (which may not
  898  exceed 7 years from the date of recording the declaration of
  899  condominium) within which all phases must be added to the
  900  condominium and comply with the requirements of this section and
  901  at the end of which the right to add additional phases expires.
  902         (a) All phases must be added to the condominium within 7
  903  years after the date of recording the original declaration of
  904  condominium submitting the initial phase to condominium
  905  ownership unless an amendment extending the 7-year period is
  906  approved by the unit owners.
  907         (b) An amendment to extend the 7-year period requires the
  908  approval of the owners necessary to amend the declaration of
  909  condominium consistent with s. 718.110(1)(a). An extension of
  910  the 7-year period may be submitted for approval only during the
  911  last 3 years of the 7-year period.
  912         (c) An amendment must describe the period within which all
  913  phases must be added to the condominium and such period may not
  914  exceed 10 years after the date of recording the original
  915  declaration of condominium submitting the initial phase to
  916  condominium ownership.
  917         (d) Notwithstanding s. 718.110, an amendment extending the
  918  7-year period is not an amendment subject to s. 718.110(4).
  919         Section 9. Section 718.406, Florida Statutes, is created to
  920  read:
  921         718.406 Condominiums created within condominium parcels.—
  922         (1) Unless otherwise expressed in the declaration of
  923  condominium, if a condominium is created within a condominium
  924  parcel, the term:
  925         (a) “Primary condominium” means any condominium that is not
  926  a secondary condominium and contains one or more subdivided
  927  parcels.
  928         (b) “Primary condominium association” means any entity that
  929  operates a primary condominium.
  930         (c) “Primary condominium declaration” means the instrument
  931  or instruments by which a primary condominium is created, as
  932  they are from time to time amended.
  933         (d) “Secondary condominium” means one or more condominium
  934  parcels that have been submitted to condominium ownership
  935  pursuant to a secondary condominium declaration.
  936         (e) “Secondary condominium association” means any entity
  937  responsible for the operation of a secondary condominium.
  938         (f) “Secondary condominium declaration” means the
  939  instrument or instruments by which a secondary condominium is
  940  created, as they are from time to time amended.
  941         (g) “Secondary unit” means a unit that is part of a
  942  secondary condominium.
  943         (h) “Subdivided parcel” means a condominium parcel in a
  944  primary condominium that has been submitted to condominium
  945  ownership pursuant to a secondary condominium declaration.
  946         (2) Unless otherwise provided in the primary condominium
  947  declaration, if a condominium parcel is a subdivided parcel, the
  948  secondary condominium association responsible for operating the
  949  secondary condominium upon the subdivided parcel shall act on
  950  behalf of all of the unit owners of secondary units in the
  951  secondary condominium and shall exercise all rights of the
  952  secondary unit owners in the primary condominium association,
  953  other than the right of possession of the secondary unit. The
  954  secondary condominium association shall designate a
  955  representative who shall cast the vote of the subdivided parcel
  956  in the primary condominium association and, if no person is
  957  designated by the secondary condominium association to cast such
  958  vote, the vote shall be cast by the president of the secondary
  959  condominium association or the designee of the president.
  960         (3) Unless otherwise provided in the primary condominium
  961  declaration as originally recorded, no secondary condominium may
  962  be created upon any condominium parcel in the primary
  963  condominium, and no amendment to the primary condominium
  964  declaration may permit secondary condominiums to be created upon
  965  parcels in the primary condominium, unless the record owners of
  966  a majority of the condominium parcels join in the execution of
  967  the amendment.
  968         (4) If the primary condominium declaration permits the
  969  creation of a secondary condominium and a condominium parcel in
  970  the primary condominium is being submitted for condominium
  971  ownership to create a secondary condominium upon the primary
  972  condominium parcel, the approval of the board of administration
  973  of the primary condominium association is required in order to
  974  create the secondary condominium on the primary condominium
  975  parcel. Unless otherwise provided in the primary condominium
  976  declaration, the owners of condominium parcels in the primary
  977  condominium that will not be part of the proposed secondary
  978  condominium and the holders of liens upon such primary
  979  condominium parcels shall not have approval rights regarding the
  980  creation of the secondary condominium or the contents of the
  981  secondary condominium declaration being submitted. Only the
  982  board of administration of the primary condominium association,
  983  the owner of the subdivided parcel, and the holders of liens
  984  upon the subdivided parcel shall have approval rights regarding
  985  the creation of the secondary condominium and the contents of
  986  the secondary condominium declaration. In order for the
  987  recording of the secondary condominium declaration to be
  988  effective to create the secondary condominium, the board of
  989  administration of the primary condominium association, the owner
  990  of the subdivided parcel, and all holders of liens on the
  991  subdivided parcel must execute the secondary condominium
  992  declaration for the purpose of evidencing their approval.
  993         (5) An owner of a secondary unit is subject to both the
  994  primary condominium declaration and the secondary condominium
  995  declaration.
  996         (6) The primary condominium association may provide
  997  insurance required by s. 718.111(11) for common elements and
  998  other improvements within the secondary condominium if the
  999  primary condominium declaration permits the primary condominium
 1000  association to provide such insurance for the benefit of the
 1001  condominium property included in the subdivided parcel, in lieu
 1002  of such insurance being provided by the secondary condominium
 1003  association.
 1004         (7) Unless otherwise provided in the primary condominium
 1005  declaration, the board of administration of the primary
 1006  condominium association may adopt hurricane shutter or hurricane
 1007  protection specifications for each building within which
 1008  subdivided parcels are located and govern any subdivided parcels
 1009  in the primary condominium.
 1010         (8) Any unit owner of, or holder of a first mortgage on, a
 1011  secondary unit may register such unit owner’s or mortgagee’s
 1012  interest in the secondary unit with the primary condominium
 1013  association by delivering written notice to the primary
 1014  condominium association. Once registered, the primary
 1015  condominium association must provide written notice to such
 1016  secondary unit owner and his, her, or its first mortgagee at
 1017  least 30 days before instituting any foreclosure action against
 1018  the subdivided parcel in which the secondary unit owner and his,
 1019  her, or its first mortgagee hold an interest for failure of the
 1020  subdivided parcel owner to pay any assessments or other amounts
 1021  due to the primary condominium association. A foreclosure action
 1022  against a subdivided parcel is not effective without an
 1023  affidavit indicating that written notice of the foreclosure was
 1024  timely sent to the names and addresses of secondary unit owners
 1025  and first mortgagees registered with the primary condominium
 1026  association pursuant to this subsection. The registered
 1027  secondary unit owner or mortgagee has a right to pay the
 1028  proportionate amount of the delinquent assessment attributable
 1029  to the secondary unit in which the registered unit owner or
 1030  mortgagee holds an interest. Upon such payment, the primary
 1031  condominium association is obligated to promptly modify or
 1032  partially release the record of lien on the primary condominium
 1033  association so that the lien no longer encumbers such secondary
 1034  unit. Alternatively, a registered secondary unit owner or
 1035  mortgagee may pay the amount of all delinquent assessments
 1036  attributed to the subdivided parcel and seek reimbursement for
 1037  all such amounts paid and all costs incurred from the secondary
 1038  condominium association, including, without limitation, the
 1039  costs of collection other than the share allocable to the
 1040  secondary unit on behalf of which such payment was made.
 1041         (9) In the event of a conflict between the primary
 1042  condominium declaration and the secondary condominium
 1043  declaration, the primary condominium declaration controls.
 1044         (10) All common expenses due to the primary condominium
 1045  association with respect to a subdivided parcel are a common
 1046  expense of the secondary condominium association and shall be
 1047  collected by the secondary condominium association from its
 1048  members and paid to the primary condominium association.
 1049         Section 10. Subsection (2) of section 718.5011, Florida
 1050  Statutes, is amended to read:
 1051         718.5011 Ombudsman; appointment; administration.—
 1052         (2) The Governor shall appoint the ombudsman. The ombudsman
 1053  must be an attorney admitted to practice before the Florida
 1054  Supreme Court and shall serve at the pleasure of the Governor. A
 1055  vacancy in the office shall be filled in the same manner as the
 1056  original appointment. An officer or full-time employee of the
 1057  ombudsman’s office may not actively engage in any other business
 1058  or profession that directly or indirectly relates to or
 1059  conflicts with his or her work in the ombudsman’s office; serve
 1060  as the representative of any political party, executive
 1061  committee, or other governing body of a political party; serve
 1062  as an executive, officer, or employee of a political party;
 1063  receive remuneration for activities on behalf of any candidate
 1064  for public office; or engage in soliciting votes or other
 1065  activities on behalf of a candidate for public office. The
 1066  ombudsman or any employee of his or her office may not become a
 1067  candidate for election to public office unless he or she first
 1068  resigns from his or her office or employment.
 1069         Section 11. Paragraphs (b) and (c) of subsection (2) of
 1070  section 719.104, Florida Statutes, are amended to read:
 1071         719.104 Cooperatives; access to units; records; financial
 1072  reports; assessments; purchase of leases.—
 1073         (2) OFFICIAL RECORDS.—
 1074         (b) The official records of the association shall be
 1075  maintained within the state. The records of the association
 1076  shall be made available to a unit owner within 5 working days
 1077  after receipt of written request by the board or its designee.
 1078  This paragraph may be complied with by having a copy of the
 1079  official records available for inspection or copying on the
 1080  cooperative property. An association shall allow a member or his
 1081  or her authorized representative to use a portable device,
 1082  including a smartphone, tablet, portable scanner, or any other
 1083  technology capable of scanning or taking photographs, to make an
 1084  electronic copy of the official records in lieu of the
 1085  association’s providing the member or his or her authorized
 1086  representative with a copy of such records. The association may
 1087  not charge a member or his or her authorized representative for
 1088  the use of a portable device.
 1089         (c) The official records of the association shall be open
 1090  to inspection by any association member or the authorized
 1091  representative of such member at all reasonable times. Failure
 1092  to permit inspection of the association records as provided in
 1093  this subsection herein entitles any person prevailing in an
 1094  enforcement action to recover reasonable attorney attorney’s
 1095  fees from the person in control of the records who, directly or
 1096  indirectly, knowingly denies access to the records for
 1097  inspection. The right to inspect the records includes the right
 1098  to make or obtain copies, at the reasonable expense, if any, of
 1099  the association member. The association may adopt reasonable
 1100  rules regarding the frequency, time, location, notice, and
 1101  manner of record inspections and copying. The failure of an
 1102  association to provide the records within 10 working days after
 1103  receipt of a written request creates a rebuttable presumption
 1104  that the association willfully failed to comply with this
 1105  paragraph. A unit owner who is denied access to official records
 1106  is entitled to the actual damages or minimum damages for the
 1107  association’s willful failure to comply with this paragraph. The
 1108  minimum damages shall be $50 per calendar day up to 10 days, the
 1109  calculation to begin on the 11th day after receipt of the
 1110  written request. The association shall maintain an adequate
 1111  number of copies of the declaration, articles of incorporation,
 1112  bylaws, and rules, and all amendments to each of the foregoing,
 1113  as well as the question and answer sheet provided for in s.
 1114  719.504, on the cooperative property to ensure their
 1115  availability to unit owners and prospective purchasers, and may
 1116  charge its actual costs for preparing and furnishing these
 1117  documents to those requesting the same. Notwithstanding the
 1118  provisions of this paragraph, the following records shall not be
 1119  accessible to unit owners:
 1120         1. Any record protected by the lawyer-client privilege as
 1121  provided in s. 90.502; protected by the work-product privilege,
 1122  including any record A record that was prepared by an
 1123  association attorney or prepared at the attorney’s express
 1124  direction; reflecting that reflects a mental impression,
 1125  conclusion, litigation strategy, or legal theory of the attorney
 1126  or the association; or that was prepared exclusively for civil
 1127  or criminal litigation or for adversarial administrative
 1128  proceedings or in anticipation of imminent civil or criminal
 1129  litigation or imminent adversarial administrative proceedings,
 1130  until the conclusion of the litigation or adversarial
 1131  administrative proceedings.
 1132         2. Information obtained by an association in connection
 1133  with the approval of the lease, sale, or other transfer of a
 1134  unit.
 1135         3. Medical records of unit owners.
 1136         4. Personnel records of association employees, including,
 1137  but not limited to, disciplinary, payroll, health, and insurance
 1138  records. For purposes of this subparagraph, the term “personnel
 1139  records” does not include written employment agreements with an
 1140  association employee or budgetary or financial records that
 1141  indicate the compensation paid to an association employee.
 1142         5. Social security numbers, driver license numbers, credit
 1143  card numbers, e-mail addresses, telephone numbers, emergency
 1144  contact information, any addresses of a unit owner other than
 1145  addresses provided to fulfill the association’s notice
 1146  requirements, and other personal identifying information of any
 1147  person, excluding the person’s name, unit designation, mailing
 1148  address, and property address.
 1149         6. Any electronic security measures that are used by the
 1150  association to safeguard data, including passwords.
 1151         7. The software and operating system used by the
 1152  association which allows manipulation of data, even if the owner
 1153  owns a copy of the same software used by the association. The
 1154  data is part of the official records of the association.
 1155         Section 12. Subsection (7) is added to section 719.1055,
 1156  Florida Statutes, to read:
 1157         719.1055 Amendment of cooperative documents; alteration and
 1158  acquisition of property.—
 1159         (7) The Legislature finds that the procurement of mortgagee
 1160  consent to amendments that do not affect the rights or interests
 1161  of mortgagees is an unreasonable and substantial logistical and
 1162  financial burden on the unit owners and that there is a
 1163  compelling state interest in enabling the members of an
 1164  association to approve amendments to the association’s
 1165  cooperative documents through legal means. Accordingly, and
 1166  notwithstanding any provision of this subsection to the
 1167  contrary:
 1168         (a) As to any mortgage recorded on or after July 1, 2013,
 1169  any provision in the association’s cooperative documents that
 1170  requires the consent or joinder of some or all mortgagees of
 1171  units or any other portion of the association’s common areas to
 1172  amend the association’s cooperative documents or for any other
 1173  matter is enforceable only as to amendments to the association’s
 1174  cooperative documents that adversely affect the priority of the
 1175  mortgagee’s lien or the mortgagee’s rights to foreclose its lien
 1176  or that otherwise materially affect the rights and interests of
 1177  the mortgagees.
 1178         (b) As to mortgages recorded before July 1, 2013, any
 1179  existing provisions in the association’s cooperative documents
 1180  requiring mortgagee consent are enforceable.
 1181         (c) In securing consent or joinder, the association is
 1182  entitled to rely upon the public records to identify the holders
 1183  of outstanding mortgages. The association may use the address
 1184  provided in the original recorded mortgage document, unless
 1185  there is a different address for the holder of the mortgage in a
 1186  recorded assignment or modification of the mortgage, which
 1187  recorded assignment or modification must reference the official
 1188  records book and page on which the original mortgage was
 1189  recorded. Once the association has identified the recorded
 1190  mortgages of record, the association shall, in writing, request
 1191  of each unit owner whose unit is encumbered by a mortgage of
 1192  record any information that the owner has in his or her
 1193  possession regarding the name and address of the person to whom
 1194  mortgage payments are currently being made. Notice shall be sent
 1195  to such person if the address provided in the original recorded
 1196  mortgage document is different from the name and address of the
 1197  mortgagee or assignee of the mortgage as shown by the public
 1198  record. The association is deemed to have complied with this
 1199  requirement by making the written request of the unit owners
 1200  required under this paragraph. Any notices required to be sent
 1201  to the mortgagees under this paragraph shall be sent to all
 1202  available addresses provided to the association.
 1203         (d) Any notice to the mortgagees required under paragraph
 1204  (c) may be sent by a method that establishes proof of delivery,
 1205  and any mortgagee who fails to respond within 60 days after the
 1206  date of mailing is deemed to have consented to the amendment.
 1207         (e) For those amendments requiring mortgagee consent on or
 1208  after July 1, 2013, in the event mortgagee consent is provided
 1209  other than by properly recorded joinder, such consent shall be
 1210  evidenced by affidavit of the association recorded in the public
 1211  records of the county in which the declaration is recorded.
 1212         (f) Any amendment adopted without the required consent of a
 1213  mortgagee is voidable only by a mortgagee who was entitled to
 1214  notice and an opportunity to consent. An action to void an
 1215  amendment is subject to the statute of limitations beginning 5
 1216  years after the date of discovery as to the amendments described
 1217  in paragraph (a) and 5 years after the date of recordation of
 1218  the certificate of amendment for all other amendments. This
 1219  paragraph applies to all mortgages, regardless of the date of
 1220  recordation of the mortgage.
 1221         Section 13. Paragraphs (c), (d), and (f) of subsection (1)
 1222  of section 719.106, Florida Statutes, are amended to read:
 1223         719.106 Bylaws; cooperative ownership.—
 1224         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
 1225  documents shall provide for the following, and if they do not,
 1226  they shall be deemed to include the following:
 1227         (c) Board of administration meetings.—Meetings of the board
 1228  of administration at which a quorum of the members is present
 1229  shall be open to all unit owners. Any unit owner may tape record
 1230  or videotape meetings of the board of administration. The right
 1231  to attend such meetings includes the right to speak at such
 1232  meetings with reference to all designated agenda items. The
 1233  division shall adopt reasonable rules governing the tape
 1234  recording and videotaping of the meeting. The association may
 1235  adopt reasonable written rules governing the frequency,
 1236  duration, and manner of unit owner statements. Adequate notice
 1237  of all meetings shall be posted in a conspicuous place upon the
 1238  cooperative property at least 48 continuous hours preceding the
 1239  meeting, except in an emergency. Any item not included on the
 1240  notice may be taken up on an emergency basis by at least a
 1241  majority plus one of the members of the board. Such emergency
 1242  action shall be noticed and ratified at the next regular meeting
 1243  of the board. However, written notice of any meeting at which
 1244  nonemergency special assessments, or at which amendment to rules
 1245  regarding unit use, will be considered shall be mailed,
 1246  delivered, or electronically transmitted to the unit owners and
 1247  posted conspicuously on the cooperative property not less than
 1248  14 days before prior to the meeting. Evidence of compliance with
 1249  this 14-day notice shall be made by an affidavit executed by the
 1250  person providing the notice and filed among the official records
 1251  of the association. Upon notice to the unit owners, the board
 1252  shall by duly adopted rule designate a specific location on the
 1253  cooperative property upon which all notices of board meetings
 1254  shall be posted. In lieu of or in addition to the physical
 1255  posting of notice of any meeting of the board of administration
 1256  on the cooperative property, the association may, by reasonable
 1257  rule, adopt a procedure for conspicuously posting and repeatedly
 1258  broadcasting the notice and the agenda on a closed-circuit cable
 1259  television system serving the cooperative association. However,
 1260  if broadcast notice is used in lieu of a notice posted
 1261  physically on the cooperative property, the notice and agenda
 1262  must be broadcast at least four times every broadcast hour of
 1263  each day that a posted notice is otherwise required under this
 1264  section. When broadcast notice is provided, the notice and
 1265  agenda must be broadcast in a manner and for a sufficient
 1266  continuous length of time so as to allow an average reader to
 1267  observe the notice and read and comprehend the entire content of
 1268  the notice and the agenda. Notice of any meeting in which
 1269  regular assessments against unit owners are to be considered for
 1270  any reason shall specifically contain a statement that
 1271  assessments will be considered and the nature of any such
 1272  assessments. Meetings of a committee to take final action on
 1273  behalf of the board or to make recommendations to the board
 1274  regarding the association budget are subject to the provisions
 1275  of this paragraph. Meetings of a committee that does not take
 1276  final action on behalf of the board or make recommendations to
 1277  the board regarding the association budget are subject to the
 1278  provisions of this section, unless those meetings are exempted
 1279  from this section by the bylaws of the association.
 1280  Notwithstanding any other law to the contrary, the requirement
 1281  that board meetings and committee meetings be open to the unit
 1282  owners does not apply is inapplicable to board or committee
 1283  meetings held for the purpose of discussing personnel matters or
 1284  meetings between the board or a committee and the association’s
 1285  attorney, with respect to proposed or pending litigation, if
 1286  when the meeting is held for the purpose of seeking or rendering
 1287  legal advice.
 1288         (d) Shareholder meetings.—There shall be an annual meeting
 1289  of the shareholders. All members of the board of administration
 1290  shall be elected at the annual meeting unless the bylaws provide
 1291  for staggered election terms or for their election at another
 1292  meeting. Any unit owner desiring to be a candidate for board
 1293  membership must comply with subparagraph 1. The bylaws must
 1294  provide the method for calling meetings, including annual
 1295  meetings. Written notice, which must incorporate an
 1296  identification of agenda items, shall be given to each unit
 1297  owner at least 14 days before the annual meeting and posted in a
 1298  conspicuous place on the cooperative property at least 14
 1299  continuous days preceding the annual meeting. Upon notice to the
 1300  unit owners, the board must by duly adopted rule designate a
 1301  specific location on the cooperative property upon which all
 1302  notice of unit owner meetings are posted. In lieu of or in
 1303  addition to the physical posting of the meeting notice, the
 1304  association may, by reasonable rule, adopt a procedure for
 1305  conspicuously posting and repeatedly broadcasting the notice and
 1306  the agenda on a closed-circuit cable television system serving
 1307  the cooperative association. However, if broadcast notice is
 1308  used in lieu of a posted notice, the notice and agenda must be
 1309  broadcast at least four times every broadcast hour of each day
 1310  that a posted notice is otherwise required under this section.
 1311  If broadcast notice is provided, the notice and agenda must be
 1312  broadcast in a manner and for a sufficient continuous length of
 1313  time to allow an average reader to observe the notice and read
 1314  and comprehend the entire content of the notice and the agenda.
 1315  Unless a unit owner waives in writing the right to receive
 1316  notice of the annual meeting, the notice of the annual meeting
 1317  must be sent by mail, hand delivered, or electronically
 1318  transmitted to each unit owner. An officer of the association
 1319  must provide an affidavit or United States Postal Service
 1320  certificate of mailing, to be included in the official records
 1321  of the association, affirming that notices of the association
 1322  meeting were mailed, hand delivered, or electronically
 1323  transmitted, in accordance with this provision, to each unit
 1324  owner at the address last furnished to the association.
 1325         1. The board of administration shall be elected by written
 1326  ballot or voting machine. A proxy may not be used in electing
 1327  the board of administration in general elections or elections to
 1328  fill vacancies caused by recall, resignation, or otherwise
 1329  unless otherwise provided in this chapter.
 1330         a. At least 60 days before a scheduled election, the
 1331  association shall mail, deliver, or transmit, whether by
 1332  separate association mailing, delivery, or electronic
 1333  transmission or included in another association mailing,
 1334  delivery, or electronic transmission, including regularly
 1335  published newsletters, to each unit owner entitled to vote, a
 1336  first notice of the date of the election. Any unit owner or
 1337  other eligible person desiring to be a candidate for the board
 1338  of administration must give written notice to the association at
 1339  least 40 days before a scheduled election. Together with the
 1340  written notice and agenda as set forth in this section, the
 1341  association shall mail, deliver, or electronically transmit a
 1342  second notice of election to all unit owners entitled to vote,
 1343  together with a ballot that which lists all candidates. Upon
 1344  request of a candidate, the association shall include an
 1345  information sheet, no larger than 81/2 inches by 11 inches,
 1346  which must be furnished by the candidate at least 35 days before
 1347  the election, to be included with the mailing, delivery, or
 1348  electronic transmission of the ballot, with the costs of
 1349  mailing, delivery, or transmission and copying to be borne by
 1350  the association. The association is not liable for the contents
 1351  of the information sheets provided by the candidates. In order
 1352  to reduce costs, the association may print or duplicate the
 1353  information sheets on both sides of the paper. The division
 1354  shall by rule establish voting procedures consistent with this
 1355  subparagraph, including rules establishing procedures for giving
 1356  notice by electronic transmission and rules providing for the
 1357  secrecy of ballots. Elections shall be decided by a plurality of
 1358  those ballots cast. There is no quorum requirement. However, at
 1359  least 20 percent of the eligible voters must cast a ballot in
 1360  order to have a valid election. A unit owner may not permit any
 1361  other person to vote his or her ballot, and any such ballots
 1362  improperly cast are invalid. A unit owner who needs assistance
 1363  in casting the ballot for the reasons stated in s. 101.051 may
 1364  obtain assistance in casting the ballot. Any unit owner
 1365  violating this provision may be fined by the association in
 1366  accordance with s. 719.303. The regular election must occur on
 1367  the date of the annual meeting. This subparagraph does not apply
 1368  to timeshare cooperatives. Notwithstanding this subparagraph, an
 1369  election and balloting are not required unless more candidates
 1370  file a notice of intent to run or are nominated than vacancies
 1371  exist on the board. Any challenge to the election process must
 1372  be commenced within 60 days after the election results are
 1373  announced.
 1374         b. Within 90 days after being elected or appointed to the
 1375  board, each new director shall certify in writing to the
 1376  secretary of the association that he or she has read the
 1377  association’s bylaws, articles of incorporation, proprietary
 1378  lease, and current written policies; that he or she will work to
 1379  uphold such documents and policies to the best of his or her
 1380  ability; and that he or she will faithfully discharge his or her
 1381  fiduciary responsibility to the association’s members. Within 90
 1382  days after being elected or appointed to the board, in lieu of
 1383  this written certification, the newly elected or appointed
 1384  director may submit a certificate of having satisfactorily
 1385  completed the educational curriculum administered by an
 1386  education provider as approved by the division pursuant to the
 1387  requirements established in chapter 718 within 1 year before or
 1388  90 days after the date of election or appointment. The
 1389  educational certificate is valid and does not have to be
 1390  resubmitted as long as the director serves on the board without
 1391  interruption. A director who fails to timely file the written
 1392  certification or educational certificate is suspended from
 1393  service on the board until he or she complies with this sub-
 1394  subparagraph. The board may temporarily fill the vacancy during
 1395  the period of suspension. The secretary of the association shall
 1396  cause the association to retain a director’s written
 1397  certification or educational certificate for inspection by the
 1398  members for 5 years after a director’s election or the duration
 1399  of the director’s uninterrupted tenure, whichever is longer.
 1400  Failure to have such written certification or educational
 1401  certificate on file does not affect the validity of any board
 1402  action.
 1403         2. Any approval by unit owners called for by this chapter,
 1404  or the applicable cooperative documents, must be made at a duly
 1405  noticed meeting of unit owners and is subject to this chapter or
 1406  the applicable cooperative documents relating to unit owner
 1407  decisionmaking, except that unit owners may take action by
 1408  written agreement, without meetings, on matters for which action
 1409  by written agreement without meetings is expressly allowed by
 1410  the applicable cooperative documents or law which provides for
 1411  the unit owner action.
 1412         3. Unit owners may waive notice of specific meetings if
 1413  allowed by the applicable cooperative documents or law. If
 1414  authorized by the bylaws, notice of meetings of the board of
 1415  administration, shareholder meetings, except shareholder
 1416  meetings called to recall board members under paragraph (f), and
 1417  committee meetings may be given by electronic transmission to
 1418  unit owners who consent to receive notice by electronic
 1419  transmission.
 1420         4. Unit owners have the right to participate in meetings of
 1421  unit owners with reference to all designated agenda items.
 1422  However, the association may adopt reasonable rules governing
 1423  the frequency, duration, and manner of unit owner participation.
 1424         5. Any unit owner may tape record or videotape meetings of
 1425  the unit owners subject to reasonable rules adopted by the
 1426  division.
 1427         6. Unless otherwise provided in the bylaws, a vacancy
 1428  occurring on the board before the expiration of a term may be
 1429  filled by the affirmative vote of the majority of the remaining
 1430  directors, even if the remaining directors constitute less than
 1431  a quorum, or by the sole remaining director. In the alternative,
 1432  a board may hold an election to fill the vacancy, in which case
 1433  the election procedures must conform to the requirements of
 1434  subparagraph 1. unless the association has opted out of the
 1435  statutory election process, in which case the bylaws of the
 1436  association control. Unless otherwise provided in the bylaws, a
 1437  board member appointed or elected under this subparagraph shall
 1438  fill the vacancy for the unexpired term of the seat being
 1439  filled. Filling vacancies created by recall is governed by
 1440  paragraph (f) and rules adopted by the division.
 1441  
 1442  Notwithstanding subparagraphs (b)2. and (d)1., an association
 1443  may, by the affirmative vote of a majority of the total voting
 1444  interests, provide for a different voting and election procedure
 1445  in its bylaws, which vote may be by a proxy specifically
 1446  delineating the different voting and election procedures. The
 1447  different voting and election procedures may provide for
 1448  elections to be conducted by limited or general proxy.
 1449         (f) Recall of board members.—Subject to the provisions of
 1450  s. 719.301, any member of the board of administration may be
 1451  recalled and removed from office with or without cause by the
 1452  vote or agreement in writing by a majority of all the voting
 1453  interests. A special meeting of the voting interests to recall
 1454  any member of the board of administration may be called by 10
 1455  percent of the unit owners giving notice of the meeting as
 1456  required for a meeting of unit owners, and the notice shall
 1457  state the purpose of the meeting. Electronic transmission may
 1458  not be used as a method of giving notice of a meeting called in
 1459  whole or in part for this purpose.
 1460         1. If the recall is approved by a majority of all voting
 1461  interests by a vote at a meeting, the recall shall be effective
 1462  as provided in this paragraph herein. The board shall duly
 1463  notice and hold a board meeting within 5 full business days
 1464  after of the adjournment of the unit owner meeting to recall one
 1465  or more board members. At the meeting, the board shall either
 1466  certify the recall, in which case such member or members shall
 1467  be recalled effective immediately and shall turn over to the
 1468  board within 5 full business days any and all records and
 1469  property of the association in their possession, or shall
 1470  proceed as set forth in subparagraph 3.
 1471         2. If the proposed recall is by an agreement in writing by
 1472  a majority of all voting interests, the agreement in writing or
 1473  a copy thereof shall be served on the association by certified
 1474  mail or by personal service in the manner authorized by chapter
 1475  48 and the Florida Rules of Civil Procedure. The board of
 1476  administration shall duly notice and hold a meeting of the board
 1477  within 5 full business days after receipt of the agreement in
 1478  writing. At the meeting, the board shall either certify the
 1479  written agreement to recall members of the board, in which case
 1480  such members shall be recalled effective immediately and shall
 1481  turn over to the board, within 5 full business days, any and all
 1482  records and property of the association in their possession, or
 1483  proceed as described in subparagraph 3.
 1484         3. If the board determines not to certify the written
 1485  agreement to recall members of the board, or does not certify
 1486  the recall by a vote at a meeting, the board shall, within 5
 1487  full business days after the board meeting, file with the
 1488  division a petition for binding arbitration pursuant to the
 1489  procedures of s. 719.1255. For purposes of this paragraph, the
 1490  unit owners who voted at the meeting or who executed the
 1491  agreement in writing shall constitute one party under the
 1492  petition for arbitration. If the arbitrator certifies the recall
 1493  as to any member of the board, the recall shall be effective
 1494  upon mailing of the final order of arbitration to the
 1495  association. If the association fails to comply with the order
 1496  of the arbitrator, the division may take action pursuant to s.
 1497  719.501. Any member so recalled shall deliver to the board any
 1498  and all records and property of the association in the member’s
 1499  possession within 5 full business days after of the effective
 1500  date of the recall.
 1501         4. If the board fails to duly notice and hold a board
 1502  meeting within 5 full business days after of service of an
 1503  agreement in writing or within 5 full business days after of the
 1504  adjournment of the unit owner recall meeting, the recall shall
 1505  be deemed effective and the board members so recalled shall
 1506  immediately turn over to the board any and all records and
 1507  property of the association.
 1508         5. If the board fails to duly notice and hold the required
 1509  meeting or fails to file the required petition, the unit owner
 1510  representative may file a petition pursuant to s. 719.1255
 1511  challenging the board’s failure to act. The petition must be
 1512  filed within 60 days after the expiration of the applicable 5
 1513  full-business-day period. The review of a petition under this
 1514  subparagraph is limited to the sufficiency of service on the
 1515  board and the facial validity of the written agreement or
 1516  ballots filed.
 1517         6.5. If a vacancy occurs on the board as a result of a
 1518  recall and less than a majority of the board members are
 1519  removed, the vacancy may be filled by the affirmative vote of a
 1520  majority of the remaining directors, notwithstanding any
 1521  provision to the contrary contained in this chapter. If
 1522  vacancies occur on the board as a result of a recall and a
 1523  majority or more of the board members are removed, the vacancies
 1524  shall be filled in accordance with procedural rules to be
 1525  adopted by the division, which rules need not be consistent with
 1526  this chapter. The rules must provide procedures governing the
 1527  conduct of the recall election as well as the operation of the
 1528  association during the period after a recall but before prior to
 1529  the recall election.
 1530         7. A board member who has been recalled may file a petition
 1531  pursuant to s. 719.1255 challenging the validity of the recall.
 1532  The petition must be filed within 60 days after the recall is
 1533  deemed certified. The association and the unit owner
 1534  representative shall be named as the respondents.
 1535         8. The division may not accept for filing a recall
 1536  petition, whether filed pursuant to subparagraph 1.,
 1537  subparagraph 2., subparagraph 5., or subparagraph 7. and
 1538  regardless of whether the recall was certified, when there are
 1539  60 or fewer days until the scheduled reelection of the board
 1540  member sought to be recalled or when 60 or fewer days have not
 1541  elapsed since the election of the board member sought to be
 1542  recalled.
 1543         Section 14. Paragraph (a) of subsection (3) of section
 1544  719.303, Florida Statutes, is amended to read:
 1545         719.303 Obligations of owners.—
 1546         (3) The association may levy reasonable fines for failure
 1547  of the unit owner or the unit’s occupant, licensee, or invitee
 1548  to comply with any provision of the cooperative documents or
 1549  reasonable rules of the association. A fine may not become a
 1550  lien against a unit. A fine may be levied on the basis of each
 1551  day of a continuing violation, with a single notice and
 1552  opportunity for hearing. However, the fine may not exceed $100
 1553  per violation, or $1,000 in the aggregate.
 1554         (a) An association may suspend, for a reasonable period of
 1555  time, the right of a unit owner, or a unit owner’s tenant,
 1556  guest, or invitee, to use the common elements, common
 1557  facilities, or any other association property for failure to
 1558  comply with any provision of the cooperative documents or
 1559  reasonable rules of the association. This paragraph does not
 1560  apply to limited common elements intended to be used only by
 1561  that unit, common elements needed to access the unit, utility
 1562  services provided to the unit, parking spaces, or elevators.
 1563         Section 15. Paragraph (k) of subsection (1) of section
 1564  719.501, Florida Statutes, is amended to read:
 1565         719.501 Powers and duties of Division of Florida
 1566  Condominiums, Timeshares, and Mobile Homes.—
 1567         (1) The Division of Florida Condominiums, Timeshares, and
 1568  Mobile Homes of the Department of Business and Professional
 1569  Regulation, referred to as the “division” in this part, in
 1570  addition to other powers and duties prescribed by chapter 718,
 1571  has the power to enforce and ensure compliance with this chapter
 1572  and adopted rules relating to the development, construction,
 1573  sale, lease, ownership, operation, and management of residential
 1574  cooperative units. In performing its duties, the division shall
 1575  have the following powers and duties:
 1576         (k) The division shall provide training and educational
 1577  programs for cooperative association board members and unit
 1578  owners. The training may, in the division’s discretion, include
 1579  web-based electronic media, and live training and seminars in
 1580  various locations throughout the state. The division may review
 1581  and approve education and training programs for board members
 1582  and unit owners offered by providers and shall maintain a
 1583  current list of approved programs and providers and make such
 1584  list available to board members and unit owners in a reasonable
 1585  and cost-effective manner.
 1586         Section 16. Subsection (5), paragraphs (a) and (b) of
 1587  subsection (7), and subsection (10) of section 720.303, Florida
 1588  Statutes, are amended to read:
 1589         720.303 Association powers and duties; meetings of board;
 1590  official records; budgets; financial reporting; association
 1591  funds; recalls.—
 1592         (5) INSPECTION AND COPYING OF RECORDS.—The official records
 1593  shall be maintained within the state and must be open to
 1594  inspection and available for photocopying by members or their
 1595  authorized agents at reasonable times and places within 10
 1596  business days after receipt of a written request for access.
 1597  This subsection may be complied with by having a copy of the
 1598  official records available for inspection or copying in the
 1599  community. If the association has a photocopy machine available
 1600  where the records are maintained, it must provide parcel owners
 1601  with copies on request during the inspection if the entire
 1602  request is limited to no more than 25 pages. An association
 1603  shall allow a member or his or her authorized representative to
 1604  use a portable device, including a smartphone, tablet, portable
 1605  scanner, or any other technology capable of scanning or taking
 1606  photographs, to make an electronic copy of the official records
 1607  in lieu of the association’s providing the member or his or her
 1608  authorized representative with a copy of such records. The
 1609  association may not charge a member or his or her authorized
 1610  representative for the use of a portable device.
 1611         (a) The failure of an association to provide access to the
 1612  records within 10 business days after receipt of a written
 1613  request submitted by certified mail, return receipt requested,
 1614  creates a rebuttable presumption that the association willfully
 1615  failed to comply with this subsection.
 1616         (b) A member who is denied access to official records is
 1617  entitled to the actual damages or minimum damages for the
 1618  association’s willful failure to comply with this subsection.
 1619  The minimum damages are to be $50 per calendar day up to 10
 1620  days, the calculation to begin on the 11th business day after
 1621  receipt of the written request.
 1622         (c) The association may adopt reasonable written rules
 1623  governing the frequency, time, location, notice, records to be
 1624  inspected, and manner of inspections, but may not require a
 1625  parcel owner to demonstrate any proper purpose for the
 1626  inspection, state any reason for the inspection, or limit a
 1627  parcel owner’s right to inspect records to less than one 8-hour
 1628  business day per month. The association may impose fees to cover
 1629  the costs of providing copies of the official records,
 1630  including, without limitation, the costs of copying. The
 1631  association may charge up to 50 cents per page for copies made
 1632  on the association’s photocopier. If the association does not
 1633  have a photocopy machine available where the records are kept,
 1634  or if the records requested to be copied exceed 25 pages in
 1635  length, the association may have copies made by an outside
 1636  vendor or association management company personnel and may
 1637  charge the actual cost of copying, including any reasonable
 1638  costs involving personnel fees and charges at an hourly rate for
 1639  vendor or employee time to cover administrative costs to the
 1640  vendor or association. The association shall maintain an
 1641  adequate number of copies of the recorded governing documents,
 1642  to ensure their availability to members and prospective members.
 1643  Notwithstanding this paragraph, the following records are not
 1644  accessible to members or parcel owners:
 1645         1. Any record protected by the lawyer-client privilege as
 1646  described in s. 90.502 and any record protected by the work
 1647  product privilege, including, but not limited to, a record
 1648  prepared by an association attorney or prepared at the
 1649  attorney’s express direction which reflects a mental impression,
 1650  conclusion, litigation strategy, or legal theory of the attorney
 1651  or the association and which was prepared exclusively for civil
 1652  or criminal litigation or for adversarial administrative
 1653  proceedings or which was prepared in anticipation of such
 1654  litigation or proceedings until the conclusion of the litigation
 1655  or proceedings.
 1656         2. Information obtained by an association in connection
 1657  with the approval of the lease, sale, or other transfer of a
 1658  parcel.
 1659         3. Personnel records of association or management company
 1660  the association’s employees, including, but not limited to,
 1661  disciplinary, payroll, health, and insurance records. For
 1662  purposes of this subparagraph, the term “personnel records” does
 1663  not include written employment agreements with an association or
 1664  management company employee or budgetary or financial records
 1665  that indicate the compensation paid to an association or
 1666  management company employee.
 1667         4. Medical records of parcel owners or community residents.
 1668         5. Social security numbers, driver driver’s license
 1669  numbers, credit card numbers, electronic mailing addresses,
 1670  telephone numbers, facsimile numbers, emergency contact
 1671  information, any addresses for a parcel owner other than as
 1672  provided for association notice requirements, and other personal
 1673  identifying information of any person, excluding the person’s
 1674  name, parcel designation, mailing address, and property address.
 1675  However, an owner may consent in writing to the disclosure of
 1676  protected information described in this subparagraph. The
 1677  association is not liable for the disclosure of information that
 1678  is protected under this subparagraph if the information is
 1679  included in an official record of the association and is
 1680  voluntarily provided by an owner and not requested by the
 1681  association.
 1682         6. Any electronic security measure that is used by the
 1683  association to safeguard data, including passwords.
 1684         7. The software and operating system used by the
 1685  association which allows the manipulation of data, even if the
 1686  owner owns a copy of the same software used by the association.
 1687  The data is part of the official records of the association.
 1688         (d) The association or its authorized agent is not required
 1689  to provide a prospective purchaser or lienholder with
 1690  information about the residential subdivision or the association
 1691  other than information or documents required by this chapter to
 1692  be made available or disclosed. The association or its
 1693  authorized agent may charge a reasonable fee to the prospective
 1694  purchaser or lienholder or the current parcel owner or member
 1695  for providing good faith responses to requests for information
 1696  by or on behalf of a prospective purchaser or lienholder, other
 1697  than that required by law, if the fee does not exceed $150 plus
 1698  the reasonable cost of photocopying and any attorney attorney’s
 1699  fees incurred by the association in connection with the
 1700  response.
 1701         (7) FINANCIAL REPORTING.—Within 90 days after the end of
 1702  the fiscal year, or annually on the date provided in the bylaws,
 1703  the association shall prepare and complete, or contract with a
 1704  third party for the preparation and completion of, a financial
 1705  report for the preceding fiscal year. Within 21 days after the
 1706  final financial report is completed by the association or
 1707  received from the third party, but not later than 120 days after
 1708  the end of the fiscal year or other date as provided in the
 1709  bylaws, the association shall, within the time limits set forth
 1710  in subsection (5), provide each member with a copy of the annual
 1711  financial report or a written notice that a copy of the
 1712  financial report is available upon request at no charge to the
 1713  member. Financial reports shall be prepared as follows:
 1714         (a) An association that meets the criteria of this
 1715  paragraph shall prepare or cause to be prepared a complete set
 1716  of financial statements in accordance with generally accepted
 1717  accounting principles as adopted by the Board of Accountancy.
 1718  The financial statements shall be based upon the association’s
 1719  total annual revenues, as follows:
 1720         1. An association with total annual revenues of $200,000
 1721  $100,000 or more, but less than $300,000 $200,000, shall prepare
 1722  compiled financial statements.
 1723         2. An association with total annual revenues of at least
 1724  $300,000 $200,000, but less than $500,000 $400,000, shall
 1725  prepare reviewed financial statements.
 1726         3. An association with total annual revenues of $500,000
 1727  $400,000 or more shall prepare audited financial statements.
 1728         (b)1. An association with total annual revenues of less
 1729  than $200,000 $100,000 shall prepare a report of cash receipts
 1730  and expenditures.
 1731         2. An association in a community of fewer than 50 parcels,
 1732  regardless of the association’s annual revenues, may prepare a
 1733  report of cash receipts and expenditures in lieu of financial
 1734  statements required by paragraph (a) unless the governing
 1735  documents provide otherwise.
 1736         3. A report of cash receipts and disbursement must disclose
 1737  the amount of receipts by accounts and receipt classifications
 1738  and the amount of expenses by accounts and expense
 1739  classifications, including, but not limited to, the following,
 1740  as applicable: costs for security, professional, and management
 1741  fees and expenses; taxes; costs for recreation facilities;
 1742  expenses for refuse collection and utility services; expenses
 1743  for lawn care; costs for building maintenance and repair;
 1744  insurance costs; administration and salary expenses; and
 1745  reserves if maintained by the association.
 1746         (10) RECALL OF DIRECTORS.—
 1747         (a)1. Regardless of any provision to the contrary contained
 1748  in the governing documents, subject to the provisions of s.
 1749  720.307 regarding transition of association control, any member
 1750  of the board of directors may be recalled and removed from
 1751  office with or without cause by a majority of the total voting
 1752  interests.
 1753         2. When the governing documents, including the declaration,
 1754  articles of incorporation, or bylaws, provide that only a
 1755  specific class of members is entitled to elect a board director
 1756  or directors, only that class of members may vote to recall
 1757  those board directors so elected.
 1758         (b)1. Board directors may be recalled by an agreement in
 1759  writing or by written ballot without a membership meeting. The
 1760  agreement in writing or the written ballots, or a copy thereof,
 1761  shall be served on the association by certified mail or by
 1762  personal service in the manner authorized by chapter 48 and the
 1763  Florida Rules of Civil Procedure.
 1764         2. The board shall duly notice and hold a meeting of the
 1765  board within 5 full business days after receipt of the agreement
 1766  in writing or written ballots. At the meeting, the board shall
 1767  either certify the written ballots or written agreement to
 1768  recall a director or directors of the board, in which case such
 1769  director or directors shall be recalled effective immediately
 1770  and shall turn over to the board within 5 full business days any
 1771  and all records and property of the association in their
 1772  possession, or proceed as described in paragraph (d).
 1773         3. When it is determined by the department pursuant to
 1774  binding arbitration proceedings that an initial recall effort
 1775  was defective, written recall agreements or written ballots used
 1776  in the first recall effort and not found to be defective may be
 1777  reused in one subsequent recall effort. However, in no event is
 1778  a written agreement or written ballot valid for more than 120
 1779  days after it has been signed by the member.
 1780         4. Any rescission or revocation of a member’s written
 1781  recall ballot or agreement must be in writing and, in order to
 1782  be effective, must be delivered to the association before the
 1783  association is served with the written recall agreements or
 1784  ballots.
 1785         5. The agreement in writing or ballot shall list at least
 1786  as many possible replacement directors as there are directors
 1787  subject to the recall, when at least a majority of the board is
 1788  sought to be recalled; the person executing the recall
 1789  instrument may vote for as many replacement candidates as there
 1790  are directors subject to the recall.
 1791         (c)1. If the declaration, articles of incorporation, or
 1792  bylaws specifically provide, the members may also recall and
 1793  remove a board director or directors by a vote taken at a
 1794  meeting. If so provided in the governing documents, a special
 1795  meeting of the members to recall a director or directors of the
 1796  board of administration may be called by 10 percent of the
 1797  voting interests giving notice of the meeting as required for a
 1798  meeting of members, and the notice shall state the purpose of
 1799  the meeting. Electronic transmission may not be used as a method
 1800  of giving notice of a meeting called in whole or in part for
 1801  this purpose.
 1802         2. The board shall duly notice and hold a board meeting
 1803  within 5 full business days after the adjournment of the member
 1804  meeting to recall one or more directors. At the meeting, the
 1805  board shall certify the recall, in which case such member or
 1806  members shall be recalled effective immediately and shall turn
 1807  over to the board within 5 full business days any and all
 1808  records and property of the association in their possession, or
 1809  shall proceed as set forth in paragraph subparagraph (d).
 1810         (d) If the board determines not to certify the written
 1811  agreement or written ballots to recall a director or directors
 1812  of the board or does not certify the recall by a vote at a
 1813  meeting, the board shall, within 5 full business days after the
 1814  meeting, file with the department a petition for binding
 1815  arbitration pursuant to the applicable procedures in ss.
 1816  718.112(2)(j) and 718.1255 and the rules adopted thereunder. For
 1817  the purposes of this section, the members who voted at the
 1818  meeting or who executed the agreement in writing shall
 1819  constitute one party under the petition for arbitration. If the
 1820  arbitrator certifies the recall as to any director or directors
 1821  of the board, the recall will be effective upon mailing of the
 1822  final order of arbitration to the association. The director or
 1823  directors so recalled shall deliver to the board any and all
 1824  records of the association in their possession within 5 full
 1825  business days after the effective date of the recall.
 1826         (e) If a vacancy occurs on the board as a result of a
 1827  recall and less than a majority of the board directors are
 1828  removed, the vacancy may be filled by the affirmative vote of a
 1829  majority of the remaining directors, notwithstanding any
 1830  provision to the contrary contained in this subsection or in the
 1831  association documents. If vacancies occur on the board as a
 1832  result of a recall and a majority or more of the board directors
 1833  are removed, the vacancies shall be filled by members voting in
 1834  favor of the recall; if removal is at a meeting, any vacancies
 1835  shall be filled by the members at the meeting. If the recall
 1836  occurred by agreement in writing or by written ballot, members
 1837  may vote for replacement directors in the same instrument in
 1838  accordance with procedural rules adopted by the division, which
 1839  rules need not be consistent with this subsection.
 1840         (f) If the board fails to duly notice and hold a board
 1841  meeting within 5 full business days after service of an
 1842  agreement in writing or within 5 full business days after the
 1843  adjournment of the member recall meeting, the recall shall be
 1844  deemed effective and the board directors so recalled shall
 1845  immediately turn over to the board all records and property of
 1846  the association.
 1847         (g) If the board fails to duly notice and hold the required
 1848  meeting or fails to file the required petition, the unit owner
 1849  representative may file a petition pursuant to s. 718.1255
 1850  challenging the board’s failure to act. The petition must be
 1851  filed within 60 days after the expiration of the applicable 5
 1852  full-business-day period. The review of a petition under this
 1853  paragraph is limited to the sufficiency of service on the board
 1854  and the facial validity of the written agreement or ballots
 1855  filed.
 1856         (h)(g) If a director who is removed fails to relinquish his
 1857  or her office or turn over records as required under this
 1858  section, the circuit court in the county where the association
 1859  maintains its principal office may, upon the petition of the
 1860  association, summarily order the director to relinquish his or
 1861  her office and turn over all association records upon
 1862  application of the association.
 1863         (i)(h) The minutes of the board meeting at which the board
 1864  decides whether to certify the recall are an official
 1865  association record. The minutes must record the date and time of
 1866  the meeting, the decision of the board, and the vote count taken
 1867  on each board member subject to the recall. In addition, when
 1868  the board decides not to certify the recall, as to each vote
 1869  rejected, the minutes must identify the parcel number and the
 1870  specific reason for each such rejection.
 1871         (j)(i) When the recall of more than one board director is
 1872  sought, the written agreement, ballot, or vote at a meeting
 1873  shall provide for a separate vote for each board director sought
 1874  to be recalled.
 1875         (k) A board member who has been recalled may file a
 1876  petition pursuant to ss. 718.112(2)(j) and 718.1255 and the
 1877  rules adopted challenging the validity of the recall. The
 1878  petition must be filed within 60 days after the recall is deemed
 1879  certified. The association and the unit owner representative
 1880  shall be named as respondents.
 1881         (l) The division may not accept for filing a recall
 1882  petition, whether filed pursuant to paragraph (b), paragraph
 1883  (c), paragraph (g), or paragraph (k) and regardless of whether
 1884  the recall was certified, when there are 60 or fewer days until
 1885  the scheduled reelection of the board member sought to be
 1886  recalled or when 60 or fewer days have not elapsed since the
 1887  election of the board member sought to be recalled.
 1888         Section 17. Subsection (2) of section 720.305, Florida
 1889  Statutes, is amended to read:
 1890         720.305 Obligations of members; remedies at law or in
 1891  equity; levy of fines and suspension of use rights.—
 1892         (2) The association may levy reasonable fines of up to $100
 1893  per violation against any member or any member’s tenant, guest,
 1894  or invitee for the failure of the owner of the parcel or its
 1895  occupant, licensee, or invitee to comply with any provision of
 1896  the declaration, the association bylaws, or reasonable rules of
 1897  the association. A fine may be levied for each day of a
 1898  continuing violation, with a single notice and opportunity for
 1899  hearing, except that the fine may not exceed $1,000 in the
 1900  aggregate unless otherwise provided in the governing documents.
 1901  A fine of less than $1,000 may not become a lien against a
 1902  parcel. In any action to recover a fine, the prevailing party is
 1903  entitled to reasonable attorney attorney’s fees and costs from
 1904  the nonprevailing party as determined by the court.
 1905         (a) An association may suspend, for a reasonable period of
 1906  time, the right of a member, or a member’s tenant, guest, or
 1907  invitee, to use common areas and facilities for the failure of
 1908  the owner of the parcel or its occupant, licensee, or invitee to
 1909  comply with any provision of the declaration, the association
 1910  bylaws, or reasonable rules of the association. This paragraph
 1911  does not apply to that portion of common areas used to provide
 1912  access or utility services to the parcel. A suspension may not
 1913  impair the right of an owner or tenant of a parcel to have
 1914  vehicular and pedestrian ingress to and egress from the parcel,
 1915  including, but not limited to, the right to park.
 1916         (b) A fine or suspension may not be imposed without at
 1917  least 14 days’ notice to the person sought to be fined or
 1918  suspended and an opportunity for a hearing before a committee of
 1919  at least three members appointed by the board who are not
 1920  officers, directors, or employees of the association, or the
 1921  spouse, parent, child, brother, or sister of an officer,
 1922  director, or employee. If the committee, by majority vote, does
 1923  not approve a proposed fine or suspension, it may not be
 1924  imposed. If the association imposes a fine or suspension, the
 1925  association must provide written notice of such fine or
 1926  suspension by mail or hand delivery to the parcel owner and, if
 1927  applicable, to any tenant, licensee, or invitee of the parcel
 1928  owner.
 1929         Section 18. Paragraph (d) is added to subsection (1) of
 1930  section 720.306, Florida Statutes, and subsection (6) and
 1931  paragraph (a) of subsection (9) of that section are amended, to
 1932  read:
 1933         720.306 Meetings of members; voting and election
 1934  procedures; amendments.—
 1935         (1) QUORUM; AMENDMENTS.—
 1936         (d) The Legislature finds that the procurement of mortgagee
 1937  consent to amendments that do not affect the rights or interests
 1938  of mortgagees is an unreasonable and substantial logistical and
 1939  financial burden on the parcel owners and that there is a
 1940  compelling state interest in enabling the members of an
 1941  association to approve amendments to the association’s governing
 1942  documents through legal means. Accordingly, and notwithstanding
 1943  any provision of this paragraph to the contrary:
 1944         1. As to any mortgage recorded on or after July 1, 2013,
 1945  any provision in the association’s governing documents that
 1946  requires the consent or joinder of some or all mortgagees of
 1947  parcels or any other portion of the association’s common areas
 1948  to amend the association’s governing documents or for any other
 1949  matter is enforceable only as to amendments to the association’s
 1950  governing documents that adversely affect the priority of the
 1951  mortgagee’s lien or the mortgagee’s rights to foreclose its lien
 1952  or that otherwise materially affect the rights and interests of
 1953  the mortgagees.
 1954         2. As to mortgages recorded before July 1, 2013, any
 1955  existing provisions in the association’s governing documents
 1956  requiring mortgagee consent are enforceable.
 1957         3. In securing consent or joinder, the association is
 1958  entitled to rely upon the public records to identify the holders
 1959  of outstanding mortgages. The association may use the address
 1960  provided in the original recorded mortgage document, unless
 1961  there is a different address for the holder of the mortgage in a
 1962  recorded assignment or modification of the mortgage, which
 1963  recorded assignment or modification must reference the official
 1964  records book and page on which the original mortgage was
 1965  recorded. Once the association has identified the recorded
 1966  mortgages of record, the association shall, in writing, request
 1967  of each parcel owner whose parcel is encumbered by a mortgage of
 1968  record any information that the owner has in his or her
 1969  possession regarding the name and address of the person to whom
 1970  mortgage payments are currently being made. Notice shall be sent
 1971  to such person if the address provided in the original recorded
 1972  mortgage document is different from the name and address of the
 1973  mortgagee or assignee of the mortgage as shown by the public
 1974  record. The association is deemed to have complied with this
 1975  requirement by making the written request of the parcel owners
 1976  required under this subparagraph. Any notices required to be
 1977  sent to the mortgagees under this subparagraph shall be sent to
 1978  all available addresses provided to the association.
 1979         4. Any notice to the mortgagees required under subparagraph
 1980  3. may be sent by a method that establishes proof of delivery,
 1981  and any mortgagee who fails to respond within 60 days after the
 1982  date of mailing is deemed to have consented to the amendment.
 1983         5. For those amendments requiring mortgagee consent on or
 1984  after July 1, 2013, in the event mortgagee consent is provided
 1985  other than by properly recorded joinder, such consent shall be
 1986  evidenced by affidavit of the association recorded in the public
 1987  records of the county in which the declaration is recorded.
 1988         6. Any amendment adopted without the required consent of a
 1989  mortgagee is voidable only by a mortgagee who was entitled to
 1990  notice and an opportunity to consent. An action to void an
 1991  amendment is subject to the statute of limitations beginning 5
 1992  years after the date of discovery as to the amendments described
 1993  in subparagraph 1. and 5 years after the date of recordation of
 1994  the certificate of amendment for all other amendments. This
 1995  subparagraph applies to all mortgages, regardless of the date of
 1996  recordation of the mortgage.
 1997         (6) RIGHT TO SPEAK.—Members and parcel owners have the
 1998  right to attend all membership meetings and to speak at any
 1999  meeting with reference to all items opened for discussion or
 2000  included on the agenda. Notwithstanding any provision to the
 2001  contrary in the governing documents or any rules adopted by the
 2002  board or by the membership, a member and a parcel owner have the
 2003  right to speak for at least 3 minutes on any item, provided that
 2004  the member or parcel owner submits a written request to speak
 2005  prior to the meeting. The association may adopt written
 2006  reasonable rules governing the frequency, duration, and other
 2007  manner of member and parcel owner statements, which rules must
 2008  be consistent with this subsection.
 2009         (9)(a) ELECTIONS AND BOARD VACANCIES.—
 2010         (a) Elections of directors must be conducted in accordance
 2011  with the procedures set forth in the governing documents of the
 2012  association. All members of the association are eligible to
 2013  serve on the board of directors, and a member may nominate
 2014  himself or herself as a candidate for the board at a meeting
 2015  where the election is to be held or, if the election process
 2016  allows voting by absentee ballot, in advance of the balloting.
 2017  Except as otherwise provided in the governing documents, boards
 2018  of directors must be elected by a plurality of the votes cast by
 2019  eligible voters. Any challenge to the election process must be
 2020  commenced within 60 days after the election results are
 2021  announced.
 2022         Section 19. This act shall take effect July 1, 2013.