Florida Senate - 2024                             CS for SB 7044
       
       
        
       By the Committees on Rules; and Regulated Industries; and
       Senator Bradley
       
       
       
       
       595-03349-24                                          20247044c1
    1                        A bill to be entitled                      
    2         An act relating to homeowners’ associations; amending
    3         s. 468.4334, F.S.; providing requirements for certain
    4         community association managers and community
    5         association management firms; amending s. 468.4337,
    6         F.S.; prohibiting the Regulatory Council of Community
    7         Association Managers from requiring more than a
    8         specified number of hours of continuing education
    9         annually for license renewal; requiring certain
   10         community association managers to biennially complete
   11         a specified number of hours of continuing education,
   12         including a specified number of hours on a specified
   13         subject; amending s. 720.303, F.S.; requiring an
   14         association to maintain certain documents for a
   15         specified timeframe; requiring certain associations to
   16         post certain documents on their website or make them
   17         available through an application on a mobile device;
   18         providing construction; requiring an association to
   19         provide certain information to parcel owners upon
   20         written request; requiring an association to ensure
   21         certain information and records are not accessible on
   22         the website or application; providing that an
   23         association or its agent is not liable for the
   24         disclosure of certain information; requiring an
   25         association to adopt certain rules; providing criminal
   26         penalties for directors or members of the board or
   27         association and community association managers who
   28         knowingly, willfully, and repeatedly fail to maintain
   29         and make available specific records; defining the term
   30         “repeatedly”; providing criminal penalties for persons
   31         who knowingly and intentionally deface or destroy, or
   32         intentionally fail to maintain, specified accounting
   33         records; providing criminal penalties for persons who
   34         willfully and knowingly refuse to release certain
   35         records for specific purposes; requiring an
   36         association to provide or make available subpoenaed
   37         records within a certain timeframe; requiring an
   38         association to assist in a law enforcement
   39         investigation as allowed by law; requiring certain
   40         associations to prepare audited financial statements;
   41         prohibiting an association from preparing financial
   42         statements for consecutive fiscal years; prohibiting
   43         an association and its officers, directors, employees,
   44         and agents from using a debit card issued in the name
   45         of the association; providing that persons who violate
   46         such prohibition commit theft under s. 812.014, F.S.,
   47         punishable as provided in that section; defining the
   48         term “lawful obligation of the association”; making
   49         technical changes; amending s. 720.3033, F.S.;
   50         deleting a requirement that a director certify in
   51         writing to the secretary of the association that he or
   52         she has read certain documents; requiring newly
   53         elected or appointed directors to complete certain
   54         educational curriculum approved by the department
   55         within a certain time period; requiring a director to
   56         retake the educational curriculum after a certain time
   57         period; providing subject matter for the educational
   58         curriculum; requiring certain directors of an
   59         association to annually complete a minimum amount of
   60         continuing education; requiring the department to
   61         adopt rules; prohibiting officers, directors, or
   62         managers of an association from soliciting, offering
   63         to accept, or accepting a kickback; defining the term
   64         “kickback”; providing criminal penalties for officers,
   65         directors, and managers of an association who accept
   66         bribes or kickbacks; making technical changes;
   67         amending s. 720.3035, F.S.; requiring an association
   68         or any architectural, construction improvement, or
   69         other such committee of an association to apply and
   70         enforce certain standards in a specified manner with
   71         regard to all parcel owners; requiring such committees
   72         to provide certain written notice to a parcel owner if
   73         a certain request or application is denied; making
   74         technical changes; amending s. 720.3065, F.S.;
   75         providing criminal penalties for certain violations
   76         related to fraudulent voting activity related to
   77         association elections; making technical changes;
   78         amending s. 720.3085, F.S.; conforming a cross
   79         reference; amending s. 720.317, F.S.; providing that a
   80         homeowner may consent to online voting electronically,
   81         as well as in writing, and that association boards
   82         must establish reasonable procedures for giving such
   83         consent; providing an effective date.
   84          
   85  Be It Enacted by the Legislature of the State of Florida:
   86  
   87         Section 1. Section 468.4334, Florida Statutes, is amended
   88  to read:
   89         468.4334 Professional practice standards; liability;
   90  requirements for community association managers, management
   91  firms.—
   92         (1)(a) A community association manager or a community
   93  association management firm is deemed to act as agent on behalf
   94  of a community association as principal within the scope of
   95  authority authorized by a written contract or under this
   96  chapter. A community association manager and a community
   97  association management firm shall discharge duties performed on
   98  behalf of the association as authorized by this chapter loyally,
   99  skillfully, and diligently; dealing honestly and fairly; in good
  100  faith; with care and full disclosure to the community
  101  association; accounting for all funds; and not charging
  102  unreasonable or excessive fees.
  103         (b) If a community association manager or a community
  104  association management firm has a contract with a community
  105  association that is subject to s. 553.899, the community
  106  association manager or the community association management firm
  107  must comply with that section as directed by the board.
  108         (2)(a) A contract between a community association and a
  109  community association manager or a contract between a community
  110  association and a community association management firm may
  111  provide that the community association indemnifies and holds
  112  harmless the community association manager and the community
  113  association management firm for ordinary negligence resulting
  114  from the manager or management firm’s act or omission that is
  115  the result of an instruction or direction of the community
  116  association. This paragraph does not preclude any other
  117  negotiated indemnity or hold harmless provision.
  118         (b) Indemnification under paragraph (a) may not cover any
  119  act or omission that violates a criminal law; derives an
  120  improper personal benefit, either directly or indirectly; is
  121  grossly negligent; or is reckless, is in bad faith, is with
  122  malicious purpose, or is in a manner exhibiting wanton and
  123  willful disregard of human rights, safety, or property.
  124         (3)A community association manager or a community
  125  association management firm that is authorized by contract to
  126  provide community association management services to a
  127  homeowners’ association shall do all of the following:
  128         (a)Attend, in person, at least one member meeting or board
  129  meeting of the homeowners’ association annually.
  130         (b)Provide to the members of the homeowners’ association
  131  the name of and contact information for each community
  132  association manager or representative of the community
  133  association management firm assigned to the homeowners’
  134  association, the manager’s or representative’s hours of
  135  availability, and a summary of the duties for which the manager
  136  or representative is responsible. The homeowners’ association
  137  shall also post this information on the association’s website or
  138  the application required under s. 720.303(4)(b). The community
  139  association manager or community association management firm
  140  shall notify the homeowners’ association and its members within
  141  14 business days after any change to such information.
  142         (c)Upon request, provide to any member a copy of the
  143  contract between the community association manager or community
  144  association management firm and the homeowners’ association and
  145  keep such contract as an official record of the association.
  146         Section 2. Section 468.4337, Florida Statutes, is amended
  147  to read:
  148         468.4337 Continuing education.—The department may not renew
  149  a license until the licensee submits proof that the licensee has
  150  completed the requisite hours of continuing education. No more
  151  than 10 hours of continuing education annually shall be required
  152  for renewal of a license. The number of continuing education
  153  hours, criteria, and course content must shall be approved by
  154  the council by rule. The council may not require more than 10
  155  hours of continuing education annually for renewal of a license.
  156  A community association manager who provides community
  157  association management services to a homeowners’ association
  158  must biennially complete at least 5 hours of continuing
  159  education that pertains specifically to homeowners’
  160  associations, 3 hours of which must relate to recordkeeping.
  161         Section 3. Subsections (4) and (5), paragraph (f) of
  162  subsection (6), and paragraph (a) of subsection (7) of section
  163  720.303, Florida Statutes, are amended, and subsection (13) is
  164  added to that section, to read:
  165         720.303 Association powers and duties; meetings of board;
  166  official records; budgets; financial reporting; association
  167  funds; recalls.—
  168         (4) OFFICIAL RECORDS.—
  169         (a) The association shall maintain each of the following
  170  items, when applicable, for at least 7 years, unless the
  171  governing documents of the association require a longer period
  172  of time, which constitute the official records of the
  173  association:
  174         1.(a) Copies of any plans, specifications, permits, and
  175  warranties related to improvements constructed on the common
  176  areas or other property that the association is obligated to
  177  maintain, repair, or replace.
  178         2.(b) A copy of the bylaws of the association and of each
  179  amendment to the bylaws.
  180         3.(c) A copy of the articles of incorporation of the
  181  association and of each amendment thereto.
  182         4.(d) A copy of the declaration of covenants and a copy of
  183  each amendment thereto.
  184         5.(e) A copy of the current rules of the homeowners’
  185  association.
  186         6.(f) The minutes of all meetings of the board of directors
  187  and of the members, which minutes must be retained for at least
  188  7 years.
  189         7.(g) A current roster of all members and their designated
  190  mailing addresses and parcel identifications. A member’s
  191  designated mailing address is the member’s property address,
  192  unless the member has sent written notice to the association
  193  requesting that a different mailing address be used for all
  194  required notices. The association shall also maintain the e-mail
  195  addresses and the facsimile numbers designated by members for
  196  receiving notice sent by electronic transmission of those
  197  members consenting to receive notice by electronic transmission.
  198  A member’s e-mail address is the e-mail address the member
  199  provided when consenting in writing to receiving notice by
  200  electronic transmission, unless the member has sent written
  201  notice to the association requesting that a different e-mail
  202  address be used for all required notices. The e-mail addresses
  203  and facsimile numbers provided by members to receive notice by
  204  electronic transmission must be removed from association records
  205  when the member revokes consent to receive notice by electronic
  206  transmission. However, the association is not liable for an
  207  erroneous disclosure of the e-mail address or the facsimile
  208  number for receiving electronic transmission of notices.
  209         8.(h) All of the association’s insurance policies or a copy
  210  thereof, which policies must be retained for at least 7 years.
  211         9.(i) A current copy of all contracts to which the
  212  association is a party, including, without limitation, any
  213  management agreement, lease, or other contract under which the
  214  association has any obligation or responsibility. Bids received
  215  by the association for work to be performed are must also be
  216  considered official records and must be kept for a period of 1
  217  year.
  218         10.(j) The financial and accounting records of the
  219  association, kept according to good accounting practices. All
  220  financial and accounting records must be maintained for a period
  221  of at least 7 years. The financial and accounting records must
  222  include:
  223         a.1. Accurate, itemized, and detailed records of all
  224  receipts and expenditures.
  225         b.2. A current account and a periodic statement of the
  226  account for each member, designating the name and current
  227  address of each member who is obligated to pay assessments, the
  228  due date and amount of each assessment or other charge against
  229  the member, the date and amount of each payment on the account,
  230  and the balance due.
  231         c.3. All tax returns, financial statements, and financial
  232  reports of the association.
  233         d.4. Any other records that identify, measure, record, or
  234  communicate financial information.
  235         11.(k) A copy of the disclosure summary described in s.
  236  720.401(1).
  237         12.(l) Ballots, sign-in sheets, voting proxies, and all
  238  other papers and electronic records relating to voting by parcel
  239  owners, which must be maintained for at least 1 year after the
  240  date of the election, vote, or meeting.
  241         13.(m) All affirmative acknowledgments made pursuant to s.
  242  720.3085(3)(c)3.
  243         14.(n) All other written records of the association not
  244  specifically included in this subsection which are related to
  245  the operation of the association.
  246         (b)1.By January 1, 2025, an association with 100 or more
  247  parcels shall post a current digital copy of the documents
  248  specified in subparagraph 3. on its website or make such
  249  documents available through an application that can be
  250  downloaded on a mobile device.
  251         2.The association’s website or application must be
  252  accessible through the Internet and must contain a subpage, web
  253  portal, or other protected electronic location that is
  254  inaccessible to the general public and accessible only to parcel
  255  owners and employees of the association.
  256         3. A current copy of the following documents must be posted
  257  in digital format on the association’s website or application:
  258         a. The articles of incorporation of the association and
  259  each amendment thereto.
  260         b. The recorded bylaws of the association and each
  261  amendment thereto.
  262         c. The declaration of covenants and a copy of each
  263  amendment thereto.
  264         d. The current rules of the association.
  265         e. A list of all current executory contracts or documents
  266  to which the association is a party or under which the
  267  association or the unit owners have an obligation or
  268  responsibility and, after bidding for the related materials,
  269  equipment, or services has closed, a list of bids received by
  270  the association within the past year.
  271         f. The annual budget required by subsection (6) and any
  272  proposed budget to be considered at the annual meeting.
  273         g. The financial report required by subsection (7) and any
  274  monthly income or expense statement to be considered at a
  275  meeting.
  276         h. The association’s current insurance policies.
  277         i. The certification of each director required by s.
  278  720.3033(1)(a).
  279         j. All contracts or transactions between the association
  280  and any director, officer, corporation, firm, or association
  281  that is not an affiliated homeowners’ association or any other
  282  entity in which an association director is also a director or
  283  officer and financially interested.
  284         k. Any contract or document regarding a conflict of
  285  interest or possible conflict of interest as provided in ss.
  286  468.436(2)(b)6. and 720.3033(2).
  287         l. Notice of any meeting of members and the agenda for the
  288  meeting, as required by s. 720.306, no later than 14 days before
  289  the meeting. The notice must be posted in plain view on the
  290  homepage of the website or application, or on a separate subpage
  291  of the website or application labeled “Notices” which is
  292  conspicuously visible and linked from the homepage. The
  293  association must also post on its website or application any
  294  document to be considered and voted on by the owners during the
  295  meeting or any document listed on the agenda at least 7 days
  296  before the meeting at which the document or the information
  297  within the document will be considered.
  298         m. Notice of any board meeting, the agenda, and any other
  299  document required for the meeting as required by subsection (3),
  300  which must be posted no later than the date required for notice
  301  under subsection (3).
  302         4.Upon written request by a parcel owner, the association
  303  must provide the parcel owner with a username and password and
  304  access to the protected sections of the association’s website or
  305  application which contains the official documents of the
  306  association.
  307         5.The association shall ensure that the information and
  308  records described in paragraph (5)(d) which are not allowed to
  309  be accessible to parcel owners are not posted on the
  310  association’s website or application. If protected information
  311  or information restricted from being accessible to parcel owners
  312  is included in documents that are required to be posted on the
  313  association’s website or application, the association must
  314  ensure the information is redacted before posting the documents.
  315  Notwithstanding the foregoing, the association or its authorized
  316  agent is not liable for disclosing information that is protected
  317  or restricted under paragraph (5)(d) unless such disclosure was
  318  made with a knowing or intentional disregard of the protected or
  319  restricted nature of such information.
  320         (c)The association shall adopt written rules governing the
  321  method or policy by which the official records of the
  322  association are to be retained and for how long such records
  323  must be retained pursuant to paragraph (a). Such information
  324  must be made available to the parcel owners through the
  325  association’s website or application.
  326         (5) INSPECTION AND COPYING OF RECORDS.—
  327         (a) Unless otherwise provided by law or the governing
  328  documents of the association, the official records shall be
  329  maintained within the state for at least 7 years and must shall
  330  be made available to a parcel owner for inspection or
  331  photocopying within 45 miles of the community or within the
  332  county in which the association is located within 10 business
  333  days after receipt by the board or its designee of a written
  334  request. This subsection may be complied with by having a copy
  335  of the official records available for inspection or copying in
  336  the community or, at the option of the association, by making
  337  the records available to a parcel owner electronically via the
  338  Internet or by allowing the records to be viewed in electronic
  339  format on a computer screen and printed upon request. If the
  340  association has a photocopy machine available where the records
  341  are maintained, it must provide parcel owners with copies on
  342  request during the inspection if the entire request is limited
  343  to no more than 25 pages. An association shall allow a member or
  344  his or her authorized representative to use a portable device,
  345  including a smartphone, tablet, portable scanner, or any other
  346  technology capable of scanning or taking photographs, to make an
  347  electronic copy of the official records in lieu of the
  348  association’s providing the member or his or her authorized
  349  representative with a copy of such records. The association may
  350  not charge a fee to a member or his or her authorized
  351  representative for the use of a portable device.
  352         (b)(a) The failure of an association to provide access to
  353  the records within 10 business days after receipt of a written
  354  request submitted by certified mail, return receipt requested,
  355  creates a rebuttable presumption that the association willfully
  356  failed to comply with this subsection.
  357         (c)(b) A member who is denied access to official records is
  358  entitled to the actual damages or minimum damages for the
  359  association’s willful failure to comply with this subsection.
  360  The minimum damages are to be $50 per calendar day up to 10
  361  days, the calculation to begin on the 11th business day after
  362  receipt of the written request.
  363         (d) Any director or member of the board or association or a
  364  community association manager who knowingly, willfully, and
  365  repeatedly violates paragraph (a), with the intent of causing
  366  harm to the association or one or more of its members, commits a
  367  misdemeanor of the second degree, punishable as provided in s.
  368  775.082 or s. 775.083. For purposes of this paragraph, the term
  369  “repeatedly” means two or more violations within a 12-month
  370  period.
  371         (e) Any person who knowingly and intentionally defaces or
  372  destroys accounting records during the period in which such
  373  records are required to be maintained, or who knowingly or
  374  intentionally fails to create or maintain accounting records
  375  that are required to be created or maintained, with the intent
  376  of causing harm to the association or one or more of its
  377  members, commits a misdemeanor of the first degree, punishable
  378  as provided in s. 775.082 or s. 775.083.
  379         (f) Any person who willfully and knowingly refuses to
  380  release or otherwise produce association records with the intent
  381  to avoid or escape detection, arrest, trial, or punishment for
  382  the commission of a crime, or to assist another person with such
  383  avoidance or escape, commits a felony of the third degree,
  384  punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
  385         (g)(c) The association may adopt reasonable written rules
  386  governing the frequency, time, location, notice, records to be
  387  inspected, and manner of inspections, but may not require a
  388  parcel owner to demonstrate any proper purpose for the
  389  inspection, state any reason for the inspection, or limit a
  390  parcel owner’s right to inspect records to less than one 8-hour
  391  business day per month. The association may impose fees to cover
  392  the costs of providing copies of the official records, including
  393  the costs of copying and the costs required for personnel to
  394  retrieve and copy the records if the time spent retrieving and
  395  copying the records exceeds one-half hour and if the personnel
  396  costs do not exceed $20 per hour. Personnel costs may not be
  397  charged for records requests that result in the copying of 25 or
  398  fewer pages. The association may charge up to 25 cents per page
  399  for copies made on the association’s photocopier. If the
  400  association does not have a photocopy machine available where
  401  the records are kept, or if the records requested to be copied
  402  exceed 25 pages in length, the association may have copies made
  403  by an outside duplicating service and may charge the actual cost
  404  of copying, as supported by the vendor invoice. The association
  405  shall maintain an adequate number of copies of the recorded
  406  governing documents, to ensure their availability to members and
  407  prospective members. Notwithstanding this paragraph, the
  408  following records are not accessible to members or parcel
  409  owners:
  410         1. Any record protected by the lawyer-client privilege as
  411  described in s. 90.502 and any record protected by the work
  412  product privilege, including, but not limited to, a record
  413  prepared by an association attorney or prepared at the
  414  attorney’s express direction which reflects a mental impression,
  415  conclusion, litigation strategy, or legal theory of the attorney
  416  or the association and which was prepared exclusively for civil
  417  or criminal litigation or for adversarial administrative
  418  proceedings or which was prepared in anticipation of such
  419  litigation or proceedings until the conclusion of the litigation
  420  or proceedings.
  421         2. Information obtained by an association in connection
  422  with the approval of the lease, sale, or other transfer of a
  423  parcel.
  424         3. Information an association obtains in a gated community
  425  in connection with guests’ visits to parcel owners or community
  426  residents.
  427         4. Personnel records of association or management company
  428  employees, including, but not limited to, disciplinary, payroll,
  429  health, and insurance records. For purposes of this
  430  subparagraph, the term “personnel records” does not include
  431  written employment agreements with an association or management
  432  company employee or budgetary or financial records that indicate
  433  the compensation paid to an association or management company
  434  employee.
  435         5. Medical records of parcel owners or community residents.
  436         6. Social security numbers, driver license numbers, credit
  437  card numbers, electronic mailing addresses, telephone numbers,
  438  facsimile numbers, emergency contact information, any addresses
  439  for a parcel owner other than as provided for association notice
  440  requirements, and other personal identifying information of any
  441  person, excluding the person’s name, parcel designation, mailing
  442  address, and property address. Notwithstanding the restrictions
  443  in this subparagraph, an association may print and distribute to
  444  parcel owners a directory containing the name, parcel address,
  445  and all telephone numbers of each parcel owner. However, an
  446  owner may exclude his or her telephone numbers from the
  447  directory by so requesting in writing to the association. An
  448  owner may consent in writing to the disclosure of other contact
  449  information described in this subparagraph. The association is
  450  not liable for the disclosure of information that is protected
  451  under this subparagraph if the information is included in an
  452  official record of the association and is voluntarily provided
  453  by an owner and not requested by the association.
  454         7. Any electronic security measure that is used by the
  455  association to safeguard data, including passwords.
  456         8. The software and operating system used by the
  457  association which allows the manipulation of data, even if the
  458  owner owns a copy of the same software used by the association.
  459  The data is part of the official records of the association.
  460         9. All affirmative acknowledgments made pursuant to s.
  461  720.3085(3)(c)3.
  462         (h)(d) The association or its authorized agent is not
  463  required to provide a prospective purchaser or lienholder with
  464  information about the residential subdivision or the association
  465  other than information or documents required by this chapter to
  466  be made available or disclosed. The association or its
  467  authorized agent may charge a reasonable fee to the prospective
  468  purchaser or lienholder or the current parcel owner or member
  469  for providing good faith responses to requests for information
  470  by or on behalf of a prospective purchaser or lienholder, other
  471  than that required by law, if the fee does not exceed $150 plus
  472  the reasonable cost of photocopying and any attorney fees
  473  incurred by the association in connection with the response.
  474         (i) If an association receives a subpoena for records from
  475  a law enforcement agency, the association must provide a copy of
  476  such records or otherwise make the records available for
  477  inspection and copying to a law enforcement agency within 5
  478  business days after receipt of the subpoena, unless otherwise
  479  specified by the law enforcement agency or subpoena. An
  480  association must assist a law enforcement agency in its
  481  investigation to the extent permissible by law.
  482         (6) BUDGETS.—
  483         (f) After one or more reserve accounts are established, the
  484  membership of the association, upon a majority vote at a meeting
  485  at which a quorum is present, may provide for no reserves or
  486  less reserves than required by this section. If a meeting of the
  487  parcel unit owners has been called to determine whether to waive
  488  or reduce the funding of reserves and such result is not
  489  achieved or a quorum is not present, the reserves as included in
  490  the budget go into effect. After the turnover, the developer may
  491  vote its voting interest to waive or reduce the funding of
  492  reserves. Any vote taken pursuant to this subsection to waive or
  493  reduce reserves is applicable only to one budget year.
  494         (7) FINANCIAL REPORTING.—Within 90 days after the end of
  495  the fiscal year, or annually on the date provided in the bylaws,
  496  the association shall prepare and complete, or contract with a
  497  third party for the preparation and completion of, a financial
  498  report for the preceding fiscal year. Within 21 days after the
  499  final financial report is completed by the association or
  500  received from the third party, but not later than 120 days after
  501  the end of the fiscal year or other date as provided in the
  502  bylaws, the association shall, within the time limits set forth
  503  in subsection (5), provide each member with a copy of the annual
  504  financial report or a written notice that a copy of the
  505  financial report is available upon request at no charge to the
  506  member. Financial reports shall be prepared as follows:
  507         (a) An association that meets the criteria of this
  508  paragraph shall prepare or cause to be prepared a complete set
  509  of financial statements in accordance with generally accepted
  510  accounting principles as adopted by the Board of Accountancy.
  511  The financial statements shall be based upon the association’s
  512  total annual revenues, as follows:
  513         1. An association with total annual revenues of $150,000 or
  514  more, but less than $300,000, shall prepare compiled financial
  515  statements.
  516         2. An association with total annual revenues of at least
  517  $300,000, but less than $500,000, shall prepare reviewed
  518  financial statements.
  519         3. An association with total annual revenues of $500,000 or
  520  more shall prepare audited financial statements.
  521         4. An association with 1,000 or more parcels shall prepare
  522  audited financial statements, notwithstanding the association’s
  523  total annual revenues.
  524         (d) If approved by a majority of the voting interests
  525  present at a properly called meeting of the association, an
  526  association may prepare or cause to be prepared:
  527         1. A report of cash receipts and expenditures in lieu of a
  528  compiled, reviewed, or audited financial statement;
  529         2. A report of cash receipts and expenditures or a compiled
  530  financial statement in lieu of a reviewed or audited financial
  531  statement; or
  532         3. A report of cash receipts and expenditures, a compiled
  533  financial statement, or a reviewed financial statement in lieu
  534  of an audited financial statement.
  535  
  536  An association may not prepare a financial statement pursuant to
  537  this paragraph for consecutive fiscal years.
  538         (13) DEBIT CARDS.—
  539         (a) An association and its officers, directors, employees,
  540  and agents may not use a debit card issued in the name of the
  541  association, or billed directly to the association, for the
  542  payment of any association expense.
  543         (b) A person who uses a debit card issued in the name of
  544  the association, or billed directly to the association, for any
  545  expense that is not a lawful obligation of the association
  546  commits theft under s. 812.014.
  547  
  548  For the purposes of this subsection, the term “lawful obligation
  549  of the association” means an obligation that has been properly
  550  preapproved by the board and is reflected in the meeting minutes
  551  or the written budget.
  552         Section 4. Subsections (1), (3), and (4) of section
  553  720.3033, Florida Statutes, are amended to read:
  554         720.3033 Officers and directors.—
  555         (1)(a) Within 90 days after being elected or appointed to
  556  the board, each director shall certify in writing to the
  557  secretary of the association that he or she has read the
  558  association’s declaration of covenants, articles of
  559  incorporation, bylaws, and current written rules and policies;
  560  that he or she will work to uphold such documents and policies
  561  to the best of his or her ability; and that he or she will
  562  faithfully discharge his or her fiduciary responsibility to the
  563  association’s members. Within 90 days after being elected or
  564  appointed to the board, in lieu of such written certification,
  565  the newly elected or appointed director must may submit a
  566  certificate of having satisfactorily completed the educational
  567  curriculum administered by a department-approved, division
  568  approved education provider.
  569         1.The newly elected or appointed director must complete
  570  the department-approved education for newly elected or appointed
  571  directors within 90 days after being elected or appointed.
  572         2. The certificate of completion is valid for a maximum of
  573  4 years.
  574         3.At least every 4 years, a director must complete the
  575  education specific to newly elected or appointed directors.
  576         4.The department-approved educational curriculum specific
  577  to newly elected or appointed directors must include training
  578  relating to financial literacy and transparency, recordkeeping,
  579  levying of fines, and notice and meeting requirements.
  580         5.In addition to the educational curriculum specific to
  581  newly elected or appointed directors:
  582         a.A director of an association that has fewer than 2,500
  583  parcels must complete at least 4 hours of continuing education
  584  annually.
  585         b.A director of an association that has 2,500 parcels or
  586  more must complete at least 8 hours of continuing education
  587  annually within 1 year before or 90 days after the date of
  588  election or appointment.
  589         (b) The written certification or educational certificate is
  590  valid for the uninterrupted tenure of the director on the board.
  591  A director who does not timely file the written certification or
  592  educational certificate is shall be suspended from the board
  593  until he or she complies with the requirement. The board may
  594  temporarily fill the vacancy during the period of suspension.
  595         (c) The association shall retain each director’s written
  596  certification or educational certificate for inspection by the
  597  members for 5 years after the director’s election. However, the
  598  failure to have the written certification or educational
  599  certificate on file does not affect the validity of any board
  600  action.
  601         (d)The department shall adopt rules to implement and
  602  administer the educational curriculum and continuing education
  603  requirements under this subsection.
  604         (3) An officer, a director, or a manager may not solicit,
  605  offer to accept, or accept a kickback. As used in this
  606  subsection, the term “kickback” means any thing or service of
  607  value for which consideration has not been provided for an
  608  officer’s, a director’s, or a manager’s his or her benefit or
  609  for the benefit of a member of his or her immediate family from
  610  any person providing or proposing to provide goods or services
  611  to the association. An officer, a director, or a manager who
  612  knowingly solicits, offers to accept, or accepts a any thing or
  613  service of value or kickback commits a felony of the third
  614  degree, punishable as provided in s. 775.082, s. 775.083, or s.
  615  775.084, and for which consideration has not been provided for
  616  his or her own benefit or that of his or her immediate family
  617  from any person providing or proposing to provide goods or
  618  services to the association is subject to monetary damages under
  619  s. 617.0834. If the board finds that an officer or a director
  620  has violated this subsection, the board shall immediately remove
  621  the officer or director from office. The vacancy shall be filled
  622  according to law until the end of the officer’s or director’s
  623  term of office. However, an officer, a director, or a manager
  624  may accept food to be consumed at a business meeting with a
  625  value of less than $25 per individual or a service or good
  626  received in connection with trade fairs or education programs.
  627         (4)(a) A director or an officer charged by information or
  628  indictment with any of the following crimes is deemed must be
  629  removed from office and a vacancy declared:
  630         1. Forgery of a ballot envelope or voting certificate used
  631  in a homeowners’ association election as provided in s. 831.01.
  632         2. Theft or embezzlement involving the association’s funds
  633  or property as provided in s. 812.014.
  634         3. Destruction of or the refusal to allow inspection or
  635  copying of an official record of a homeowners’ association which
  636  is accessible to parcel owners within the time periods required
  637  by general law, in furtherance of any crime. Such act
  638  constitutes tampering with physical evidence as provided in s.
  639  918.13.
  640         4. Obstruction of justice as provided in chapter 843.
  641         5. Any criminal violation under this chapter.
  642         Section 5. Subsections (1) and (4) of section 720.3035,
  643  Florida Statutes, are amended to read:
  644         720.3035 Architectural control covenants; parcel owner
  645  improvements; rights and privileges.—
  646         (1) The authority of an association or any architectural,
  647  construction improvement, or other such similar committee of an
  648  association to review and approve plans and specifications for
  649  the location, size, type, or appearance of any structure or
  650  other improvement on a parcel, or to enforce standards for the
  651  external appearance of any structure or improvement located on a
  652  parcel, is shall be permitted only to the extent that the
  653  authority is specifically stated or reasonably inferred as to
  654  such location, size, type, or appearance in the declaration of
  655  covenants or other published guidelines and standards authorized
  656  by the declaration of covenants. An association or any
  657  architectural, construction improvement, or similar committee of
  658  an association must reasonably and equitably apply and enforce
  659  on all parcel owners the architectural and construction
  660  improvement standards authorized by the declaration of covenants
  661  or other published guidelines and standards authorized by the
  662  declaration of covenants.
  663         (4) Each parcel owner is shall be entitled to the rights
  664  and privileges set forth in the declaration of covenants or
  665  other published guidelines and standards authorized by the
  666  declaration of covenants concerning the architectural use of the
  667  parcel, and the construction of permitted structures and
  668  improvements on the parcel and such rights and privileges may
  669  shall not be unreasonably infringed upon or impaired by the
  670  association or any architectural, construction improvement, or
  671  other such similar committee of the association. If the
  672  association or any architectural, construction improvement, or
  673  other such similar committee of the association denies a parcel
  674  owner’s request or application for the construction of a
  675  structure or other improvement on a parcel, the association or
  676  committee must provide written notice to the parcel owner
  677  stating with specificity the rule or covenant on which the
  678  association or committee relied when denying the request or
  679  application and the specific aspect or part of the proposed
  680  improvement that does not conform to such rule or covenant. If
  681  the association or any architectural, construction improvement,
  682  or other such similar committee of the association should
  683  unreasonably, knowingly, and willfully infringe upon or impair
  684  the rights and privileges set forth in the declaration of
  685  covenants or other published guidelines and standards authorized
  686  by the declaration of covenants, the adversely affected parcel
  687  owner is shall be entitled to recover damages caused by such
  688  infringement or impairment, including any costs and reasonable
  689  attorney attorney’s fees incurred in preserving or restoring the
  690  rights and privileges of the parcel owner set forth in the
  691  declaration of covenants or other published guidelines and
  692  standards authorized by the declaration of covenants.
  693         Section 6. Section 720.3065, Florida Statutes, is amended
  694  to read:
  695         720.3065 Fraudulent voting activities relating to
  696  association elections; penalties.—
  697         (1) A person who engages in any Each of the following acts
  698  of is a fraudulent voting activity relating to association
  699  elections commits and constitutes a misdemeanor of the first
  700  degree, punishable as provided in s. 775.082 or s. 775.083:
  701         (a)(1) Willfully and falsely swearing to or affirming an
  702  oath or affirmation, or willfully procuring another person to
  703  falsely swear to or affirm an oath or affirmation, in connection
  704  with or arising out of voting activities.
  705         (b)(2) Perpetrating or attempting to perpetrate, or aiding
  706  in the perpetration of, fraud in connection with a vote cast, to
  707  be cast, or attempted to be cast.
  708         (c)(3) Preventing a member from voting or preventing a
  709  member from voting as he or she intended by fraudulently
  710  changing or attempting to change a ballot, ballot envelope,
  711  vote, or voting certificate of the member.
  712         (d)(4) Menacing, threatening, or using bribery or any other
  713  corruption to attempt, directly or indirectly, to influence,
  714  deceive, or deter a member when the member is voting.
  715         (e)(5) Giving or promising, directly or indirectly,
  716  anything of value to another member with the intent to buy the
  717  vote of that member or another member or to corruptly influence
  718  that member or another member in casting his or her vote. This
  719  subsection does not apply to any food served which is to be
  720  consumed at an election rally or a meeting or to any item of
  721  nominal value which is used as an election advertisement,
  722  including a campaign message designed to be worn by a member.
  723         (f)(6) Using or threatening to use, directly or indirectly,
  724  force, violence, or intimidation or any tactic of coercion or
  725  intimidation to induce or compel a member to vote or refrain
  726  from voting in an election or on a particular ballot measure.
  727         (2) A person who engages in any of the following acts
  728  commits a misdemeanor of the first degree, punishable as
  729  provided in s. 775.082 or s. 775.083:
  730         (a) Knowingly aiding, abetting, or advising a person in the
  731  commission of a fraudulent voting activity related to
  732  association elections.
  733         (b) Agreeing, conspiring, combining, or confederating with
  734  at least one other person to commit a fraudulent voting activity
  735  related to association elections.
  736         (c) Having knowledge of a fraudulent voting activity
  737  related to association elections and giving any aid to the
  738  offender with intent that the offender avoid or escape
  739  detection, arrest, trial, or punishment.
  740  
  741  This subsection does not apply to a licensed attorney giving
  742  legal advice to a client.
  743         Section 7. Paragraph (c) of subsection (3) of section
  744  720.3085, Florida Statutes, is amended to read:
  745         720.3085 Payment for assessments; lien claims.—
  746         (3) Assessments and installments on assessments that are
  747  not paid when due bear interest from the due date until paid at
  748  the rate provided in the declaration of covenants or the bylaws
  749  of the association, which rate may not exceed the rate allowed
  750  by law. If no rate is provided in the declaration or bylaws,
  751  interest accrues at the rate of 18 percent per year.
  752         (c)1. If an association sends out an invoice for
  753  assessments or a parcel’s statement of the account described in
  754  s. 720.303(4)(a)10.b. s. 720.303(4)(j)2., the invoice for
  755  assessments or the parcel’s statement of account must be
  756  delivered to the parcel owner by first-class United States mail
  757  or by electronic transmission to the parcel owner’s e-mail
  758  address maintained in the association’s official records.
  759         2. Before changing the method of delivery for an invoice
  760  for assessments or the statement of the account, the association
  761  must deliver a written notice of such change to each parcel
  762  owner. The written notice must be delivered to the parcel owner
  763  at least 30 days before the association sends the invoice for
  764  assessments or the statement of the account by the new delivery
  765  method. The notice must be sent by first-class United States
  766  mail to the owner at his or her last address as reflected in the
  767  association’s records and, if such address is not the parcel
  768  address, must be sent by first-class United States mail to the
  769  parcel address. Notice is deemed to have been delivered upon
  770  mailing as required by this subparagraph.
  771         3. A parcel owner must affirmatively acknowledge his or her
  772  understanding that the association will change its method of
  773  delivery of the invoice for assessments or the statement of the
  774  account before the association may change the method of
  775  delivering an invoice for assessments or the statement of
  776  account. The parcel owner may make the affirmative
  777  acknowledgment electronically or in writing.
  778         Section 8. Section 720.317, Florida Statutes, is amended to
  779  read:
  780         720.317 Electronic voting.—The association may conduct
  781  elections and other membership votes through an Internet-based
  782  online voting system if a member consents, electronically or in
  783  writing, to online voting and if the following requirements are
  784  met:
  785         (1) The association provides each member with:
  786         (a) A method to authenticate the member’s identity to the
  787  online voting system.
  788         (b) A method to confirm, at least 14 days before the voting
  789  deadline, that the member’s electronic device can successfully
  790  communicate with the online voting system.
  791         (c) A method that is consistent with the election and
  792  voting procedures in the association’s bylaws.
  793         (2) The association uses an online voting system that is:
  794         (a) Able to authenticate the member’s identity.
  795         (b) Able to authenticate the validity of each electronic
  796  vote to ensure that the vote is not altered in transit.
  797         (c) Able to transmit a receipt from the online voting
  798  system to each member who casts an electronic vote.
  799         (d) Able to permanently separate any authentication or
  800  identifying information from the electronic election ballot,
  801  rendering it impossible to tie an election ballot to a specific
  802  member. This paragraph only applies if the association’s bylaws
  803  provide for secret ballots for the election of directors.
  804         (e) Able to store and keep electronic ballots accessible to
  805  election officials for recount, inspection, and review purposes.
  806         (3) A member voting electronically pursuant to this section
  807  shall be counted as being in attendance at the meeting for
  808  purposes of determining a quorum.
  809         (4) This section applies to an association that provides
  810  for and authorizes an online voting system pursuant to this
  811  section by a board resolution. The board resolution must provide
  812  that members receive notice of the opportunity to vote through
  813  an online voting system, must establish reasonable procedures
  814  and deadlines for members to consent, electronically or in
  815  writing, to online voting, and must establish reasonable
  816  procedures and deadlines for members to opt out of online voting
  817  after giving consent. Written notice of a meeting at which the
  818  board resolution regarding online voting will be considered must
  819  be mailed, delivered, or electronically transmitted to the unit
  820  owners and posted conspicuously on the condominium property or
  821  association property at least 14 days before the meeting.
  822  Evidence of compliance with the 14-day notice requirement must
  823  be made by an affidavit executed by the person providing the
  824  notice and filed with the official records of the association.
  825         (5) A member’s consent to online voting is valid until the
  826  member opts out of online voting pursuant to the procedures
  827  established by the board of administration pursuant to
  828  subsection (4).
  829         (6) This section may apply to any matter that requires a
  830  vote of the members.
  831         Section 9. This act shall take effect July 1, 2024.