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9 | 9 | | Page 1 of 18 |
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10 | 10 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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13 | 13 | | |
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14 | 14 | | A bill to be entitled 1 |
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15 | 15 | | An act relating to condominium associations; amending 2 |
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16 | 16 | | s. 718.111, F.S.; authorizing the person or entity 3 |
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17 | 17 | | completing the financial report for an association to 4 |
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18 | 18 | | rely on a specified inspection report; restricting an 5 |
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19 | 19 | | association from waiving a financial report for more 6 |
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20 | 20 | | than a specified period; amending s. 718.112, F.S.; 7 |
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21 | 21 | | requiring an association to provide a candidate's 8 |
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22 | 22 | | certification form to unit owners for specified 9 |
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23 | 23 | | purposes; amending s. 718.113, F.S.; requiring the 10 |
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24 | 24 | | board to have certain condominium buildings inspected 11 |
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25 | 25 | | every 5 years by an architect or engineer; requiring 12 |
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26 | 26 | | the architect or engineer to provide a certain report 13 |
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27 | 27 | | back to the board; providing an exception; providing 14 |
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28 | 28 | | an effective date. 15 |
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29 | 29 | | 16 |
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30 | 30 | | Be It Enacted by the Legislature of the State of Florida: 17 |
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31 | 31 | | 18 |
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32 | 32 | | Section 1. Subsection (13) of section 718.111, Florida 19 |
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33 | 33 | | Statutes, is amended to read: 20 |
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34 | 34 | | 718.111 The association. — 21 |
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35 | 35 | | (13) FINANCIAL REPORTING. —Within 90 days after the end of 22 |
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36 | 36 | | the fiscal year, or annually on a date provided in the bylaws, 23 |
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37 | 37 | | the association shall prepare and complete, or contract for the 24 |
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38 | 38 | | preparation and completion of, a financial report for the 25 |
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39 | 39 | | |
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40 | 40 | | HB 1397 2022 |
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46 | 46 | | Page 2 of 18 |
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47 | 47 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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50 | 50 | | |
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51 | 51 | | preceding fiscal year. Within 21 days after the final fin ancial 26 |
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52 | 52 | | report is completed by the association or received from the 27 |
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53 | 53 | | third party, but not later than 120 days after the end of the 28 |
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54 | 54 | | fiscal year or other date as provided in the bylaws, the 29 |
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55 | 55 | | association shall mail to each unit owner at the address last 30 |
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56 | 56 | | furnished to the association by the unit owner, or hand deliver 31 |
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57 | 57 | | to each unit owner, a copy of the most recent financial report 32 |
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58 | 58 | | or a notice that a copy of the most recent financial report will 33 |
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59 | 59 | | be mailed or hand delivered to the unit owner, without charge, 34 |
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60 | 60 | | within 5 business days after receipt of a written request from 35 |
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61 | 61 | | the unit owner. The division shall adopt rules setting forth 36 |
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62 | 62 | | uniform accounting principles and standards to be used by all 37 |
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63 | 63 | | associations and addressing the financial reporting requirements 38 |
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64 | 64 | | for multicondominium associations. The rules must include, but 39 |
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65 | 65 | | not be limited to, standards for presenting a summary of 40 |
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66 | 66 | | association reserves, including a good faith estimate disclosing 41 |
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67 | 67 | | the annual amount of reserve funds that would be necessary for 42 |
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68 | 68 | | the association to ful ly fund reserves for each reserve item 43 |
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69 | 69 | | based on the straight -line accounting method. This disclosure is 44 |
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70 | 70 | | not applicable to reserves funded via the pooling method. The 45 |
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71 | 71 | | person or entity preparing the financial report may rely on an 46 |
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72 | 72 | | inspection report prepared for or provided to the association to 47 |
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73 | 73 | | meet the fiscal and fiduciary standards of this chapter. In 48 |
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74 | 74 | | adopting such rules, the division shall consider the number of 49 |
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75 | 75 | | members and annual revenues of an association. Financial reports 50 |
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76 | 76 | | |
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84 | 84 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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85 | 85 | | |
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86 | 86 | | |
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87 | 87 | | |
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88 | 88 | | shall be prepared as follows: 51 |
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89 | 89 | | (a) An association that meets the criteria of this 52 |
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90 | 90 | | paragraph shall prepare a complete set of financial statements 53 |
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91 | 91 | | in accordance with generally accepted accounting principles. The 54 |
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92 | 92 | | financial statements must be based upon the association's total 55 |
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93 | 93 | | annual revenues, as follows: 56 |
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94 | 94 | | 1. An association with total annual revenues of $150,000 57 |
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95 | 95 | | or more, but less than $300,000, shall prepare compiled 58 |
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96 | 96 | | financial statements. 59 |
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97 | 97 | | 2. An association with total annual revenues of at least 60 |
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98 | 98 | | $300,000, but less than $500,000, shall pr epare reviewed 61 |
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99 | 99 | | financial statements. 62 |
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100 | 100 | | 3. An association with total annual revenues of $500,000 63 |
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101 | 101 | | or more shall prepare audited financial statements. 64 |
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102 | 102 | | (b)1. An association with total annual revenues of less 65 |
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103 | 103 | | than $150,000 shall prepare a report of cash recei pts and 66 |
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104 | 104 | | expenditures. 67 |
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105 | 105 | | 2. A report of cash receipts and disbursements must 68 |
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106 | 106 | | disclose the amount of receipts by accounts and receipt 69 |
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107 | 107 | | classifications and the amount of expenses by accounts and 70 |
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108 | 108 | | expense classifications, including, but not limited to, the 71 |
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109 | 109 | | following, as applicable: costs for security, professional and 72 |
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110 | 110 | | management fees and expenses, taxes, costs for recreation 73 |
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111 | 111 | | facilities, expenses for refuse collection and utility services, 74 |
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112 | 112 | | expenses for lawn care, costs for building maintenance and 75 |
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121 | 121 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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125 | 125 | | repair, insurance costs, administration and salary expenses, and 76 |
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126 | 126 | | reserves accumulated and expended for capital expenditures, 77 |
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127 | 127 | | deferred maintenance, and any other category for which the 78 |
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128 | 128 | | association maintains reserves. 79 |
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129 | 129 | | (c) An association may prepare, without a meeting of o r 80 |
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130 | 130 | | approval by the unit owners: 81 |
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131 | 131 | | 1. Compiled, reviewed, or audited financial statements, if 82 |
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132 | 132 | | the association is required to prepare a report of cash receipts 83 |
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133 | 133 | | and expenditures; 84 |
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134 | 134 | | 2. Reviewed or audited financial statements, if the 85 |
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135 | 135 | | association is required to prepare compiled financial 86 |
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136 | 136 | | statements; or 87 |
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137 | 137 | | 3. Audited financial statements if the association is 88 |
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138 | 138 | | required to prepare reviewed financial statements. 89 |
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139 | 139 | | (d) If approved by a majority of the voting interests 90 |
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140 | 140 | | present at a properly called meeting of the association, an 91 |
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141 | 141 | | association may prepare: 92 |
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142 | 142 | | 1. A report of cash receipts and expenditures in lieu of a 93 |
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143 | 143 | | compiled, reviewed, or audited financial statement; 94 |
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144 | 144 | | 2. A report of cash receipts and expenditures or a 95 |
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145 | 145 | | compiled financial statement in lieu of a reviewe d or audited 96 |
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146 | 146 | | financial statement; or 97 |
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147 | 147 | | 3. A report of cash receipts and expenditures, a compiled 98 |
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148 | 148 | | financial statement, or a reviewed financial statement in lieu 99 |
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149 | 149 | | of an audited financial statement. 100 |
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151 | 151 | | HB 1397 2022 |
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158 | 158 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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159 | 159 | | |
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160 | 160 | | |
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161 | 161 | | |
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162 | 162 | | 101 |
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163 | 163 | | Such meeting and approval must occur before the end of the 102 |
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164 | 164 | | fiscal year and is effective only for the fiscal year in which 103 |
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165 | 165 | | the vote is taken, except that the approval may also be 104 |
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166 | 166 | | effective for the following fiscal year. If the developer has 105 |
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167 | 167 | | not turned over control of the association, all unit owners, 106 |
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168 | 168 | | including the developer, may vote on issues related to the 107 |
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169 | 169 | | preparation of the association's financial reports, from the 108 |
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170 | 170 | | date of incorporation of the association through the end of the 109 |
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171 | 171 | | second fiscal year after the fiscal year in which the 110 |
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172 | 172 | | certificate of a surveyor and map per is recorded pursuant to s. 111 |
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173 | 173 | | 718.104(4)(e) or an instrument that transfers title to a unit in 112 |
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174 | 174 | | the condominium which is not accompanied by a recorded 113 |
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175 | 175 | | assignment of developer rights in favor of the grantee of such 114 |
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176 | 176 | | unit is recorded, whichever occurs first. Thereafter, all unit 115 |
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177 | 177 | | owners except the developer may vote on such issues until 116 |
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178 | 178 | | control is turned over to the association by the developer. Any 117 |
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179 | 179 | | audit or review prepared under this section shall be paid for by 118 |
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180 | 180 | | the developer if done before turnover of control of the 119 |
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181 | 181 | | association. An association may not waive the financial 120 |
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182 | 182 | | reporting requirements of this subsection for more than 3 121 |
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183 | 183 | | consecutive years. 122 |
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184 | 184 | | (e) A unit owner may provide written notice to the 123 |
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185 | 185 | | division of the association's failure to mail or hand deliver 124 |
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186 | 186 | | him or her a copy of the most recent financial report within 5 125 |
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187 | 187 | | |
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188 | 188 | | HB 1397 2022 |
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195 | 195 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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197 | 197 | | |
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199 | 199 | | business days after he or she submitted a written request to the 126 |
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200 | 200 | | association for a copy of such report. If the division 127 |
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201 | 201 | | determines that the association failed to mail or hand deliver a 128 |
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202 | 202 | | copy of the most recent financial report to the unit owner, the 129 |
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203 | 203 | | division shall provide written notice to the association that 130 |
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204 | 204 | | the association must mail or hand deliver a copy of the most 131 |
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205 | 205 | | recent financial report to the unit owner and the division 132 |
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206 | 206 | | within 5 business days after it receives such notice from the 133 |
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207 | 207 | | division. An association that fails to comply with the 134 |
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208 | 208 | | division's request may not waive the financial reporting 135 |
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209 | 209 | | requirement provided in paragraph (d) for the fiscal year in 136 |
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210 | 210 | | which the unit owner's request was made and the following fiscal 137 |
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211 | 211 | | year. A financial report received by the division pursuant to 138 |
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212 | 212 | | this paragraph shall be maintained, and the division shall 139 |
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213 | 213 | | provide a copy of such report to an association member upon his 140 |
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214 | 214 | | or her request. 141 |
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215 | 215 | | Section 2. Paragraph (d) of subsection (2) of section 142 |
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216 | 216 | | 718.112, Florida Statutes, is amended to read: 143 |
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217 | 217 | | 718.112 Bylaws.— 144 |
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218 | 218 | | (2) REQUIRED PROVISIONS. —The bylaws shall provide for the 145 |
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219 | 219 | | following and, if they do not do so, shall be deemed to include 146 |
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220 | 220 | | the following: 147 |
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221 | 221 | | (d) Unit owner meeti ngs.— 148 |
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222 | 222 | | 1. An annual meeting of the unit owners must be held at 149 |
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223 | 223 | | the location provided in the association bylaws and, if the 150 |
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232 | 232 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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233 | 233 | | |
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234 | 234 | | |
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235 | 235 | | |
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236 | 236 | | bylaws are silent as to the location, the meeting must be held 151 |
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237 | 237 | | within 45 miles of the condominium property. However, such 152 |
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238 | 238 | | distance requirement does not apply to an association governing 153 |
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239 | 239 | | a timeshare condominium. 154 |
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240 | 240 | | 2. Unless the bylaws provide otherwise, a vacancy on the 155 |
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241 | 241 | | board caused by the expiration of a director's term must be 156 |
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242 | 242 | | filled by electing a new board member, and the election mu st be 157 |
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243 | 243 | | by secret ballot. An election is not required if the number of 158 |
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244 | 244 | | vacancies equals or exceeds the number of candidates. For 159 |
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245 | 245 | | purposes of this paragraph, the term "candidate" means an 160 |
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246 | 246 | | eligible person who has timely submitted the written notice, as 161 |
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247 | 247 | | described in sub-subparagraph 4.a., of his or her intention to 162 |
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248 | 248 | | become a candidate. Except in a timeshare or nonresidential 163 |
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249 | 249 | | condominium, or if the staggered term of a board member does not 164 |
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250 | 250 | | expire until a later annual meeting, or if all members' terms 165 |
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251 | 251 | | would otherwise expire but there are no candidates, the terms of 166 |
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252 | 252 | | all board members expire at the annual meeting, and such members 167 |
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253 | 253 | | may stand for reelection unless prohibited by the bylaws. Board 168 |
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254 | 254 | | members may serve terms longer than 1 year if permitted by the 169 |
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255 | 255 | | bylaws or articles of incorporation. A board member may not 170 |
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256 | 256 | | serve more than 8 consecutive years unless approved by an 171 |
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257 | 257 | | affirmative vote of unit owners representing two -thirds of all 172 |
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258 | 258 | | votes cast in the election or unless there are not enough 173 |
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259 | 259 | | eligible candidates to fill t he vacancies on the board at the 174 |
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260 | 260 | | time of the vacancy. Only board service that occurs on or after 175 |
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261 | 261 | | |
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269 | 269 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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270 | 270 | | |
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271 | 271 | | |
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272 | 272 | | |
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273 | 273 | | July 1, 2018, may be used when calculating a board member's term 176 |
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274 | 274 | | limit. If the number of board members whose terms expire at the 177 |
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275 | 275 | | annual meeting equals or excee ds the number of candidates, the 178 |
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276 | 276 | | candidates become members of the board effective upon the 179 |
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277 | 277 | | adjournment of the annual meeting. Unless the bylaws provide 180 |
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278 | 278 | | otherwise, any remaining vacancies shall be filled by the 181 |
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279 | 279 | | affirmative vote of the majority of the direct ors making up the 182 |
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280 | 280 | | newly constituted board even if the directors constitute less 183 |
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281 | 281 | | than a quorum or there is only one director. In a residential 184 |
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282 | 282 | | condominium association of more than 10 units or in a 185 |
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283 | 283 | | residential condominium association that does not include 186 |
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284 | 284 | | timeshare units or timeshare interests, co -owners of a unit may 187 |
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285 | 285 | | not serve as members of the board of directors at the same time 188 |
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286 | 286 | | unless they own more than one unit or unless there are not 189 |
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287 | 287 | | enough eligible candidates to fill the vacancies on the board at 190 |
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288 | 288 | | the time of the vacancy. A unit owner in a residential 191 |
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289 | 289 | | condominium desiring to be a candidate for board membership must 192 |
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290 | 290 | | comply with sub-subparagraph 4.a. and must be eligible to be a 193 |
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291 | 291 | | candidate to serve on the board of directors at the time of the 194 |
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292 | 292 | | deadline for submitting a notice of intent to run in order to 195 |
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293 | 293 | | have his or her name listed as a proper candidate on the ballot 196 |
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294 | 294 | | or to serve on the board. A person who has been suspended or 197 |
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295 | 295 | | removed by the division under this chapter, or who is delinquent 198 |
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296 | 296 | | in the payment of any assessment due to the association, is not 199 |
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297 | 297 | | eligible to be a candidate for board membership and may not be 200 |
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298 | 298 | | |
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306 | 306 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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307 | 307 | | |
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308 | 308 | | |
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309 | 309 | | |
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310 | 310 | | listed on the ballot. For purposes of this paragraph, a person 201 |
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311 | 311 | | is delinquent if a payment is not made by the due date as 202 |
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312 | 312 | | specifically identified in the declaration of condominium, 203 |
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313 | 313 | | bylaws, or articles of incorporation. If a due date is not 204 |
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314 | 314 | | specifically identified in the declaration of condominium, 205 |
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315 | 315 | | bylaws, or articles of incorporation, the due date is the first 206 |
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316 | 316 | | day of the assessment period. A person who has been convicted of 207 |
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317 | 317 | | any felony in this state or in a United States District or 208 |
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318 | 318 | | Territorial Court, or who has been convicted of any offense in 209 |
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319 | 319 | | another jurisdiction which would be considered a felony if 210 |
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320 | 320 | | committed in this state, is not eligible for board m embership 211 |
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321 | 321 | | unless such felon's civil rights have been restored for at least 212 |
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322 | 322 | | 5 years as of the date such person seeks election to the board. 213 |
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323 | 323 | | The validity of an action by the board is not affected if it is 214 |
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324 | 324 | | later determined that a board member is ineligible fo r board 215 |
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325 | 325 | | membership due to having been convicted of a felony. This 216 |
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326 | 326 | | subparagraph does not limit the term of a member of the board of 217 |
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327 | 327 | | a nonresidential or timeshare condominium. 218 |
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328 | 328 | | 3. The bylaws must provide the method of calling meetings 219 |
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329 | 329 | | of unit owners, includ ing annual meetings. Written notice of an 220 |
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330 | 330 | | annual meeting must include an agenda; be mailed, hand 221 |
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331 | 331 | | delivered, or electronically transmitted to each unit owner at 222 |
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332 | 332 | | least 14 days before the annual meeting; and be posted in a 223 |
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333 | 333 | | conspicuous place on the condominium property or association 224 |
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334 | 334 | | property at least 14 continuous days before the annual meeting. 225 |
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343 | 343 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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344 | 344 | | |
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345 | 345 | | |
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346 | 346 | | |
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347 | 347 | | Written notice of a meeting other than an annual meeting must 226 |
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348 | 348 | | include an agenda; be mailed, hand delivered, or electronically 227 |
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349 | 349 | | transmitted to each unit owner; and be po sted in a conspicuous 228 |
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350 | 350 | | place on the condominium property or association property within 229 |
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351 | 351 | | the timeframe specified in the bylaws. If the bylaws do not 230 |
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352 | 352 | | specify a timeframe for written notice of a meeting other than 231 |
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353 | 353 | | an annual meeting, notice must be provided at least 14 232 |
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354 | 354 | | continuous days before the meeting. Upon notice to the unit 233 |
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355 | 355 | | owners, the board shall, by duly adopted rule, designate a 234 |
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356 | 356 | | specific location on the condominium property or association 235 |
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357 | 357 | | property where all notices of unit owner meetings must be 236 |
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358 | 358 | | posted. This requirement does not apply if there is no 237 |
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359 | 359 | | condominium property for posting notices. In lieu of, or in 238 |
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360 | 360 | | addition to, the physical posting of meeting notices, the 239 |
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361 | 361 | | association may, by reasonable rule, adopt a procedure for 240 |
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362 | 362 | | conspicuously posting and repeate dly broadcasting the notice and 241 |
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363 | 363 | | the agenda on a closed -circuit cable television system serving 242 |
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364 | 364 | | the condominium association. However, if broadcast notice is 243 |
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365 | 365 | | used in lieu of a notice posted physically on the condominium 244 |
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366 | 366 | | property, the notice and agenda must b e broadcast at least four 245 |
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367 | 367 | | times every broadcast hour of each day that a posted notice is 246 |
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368 | 368 | | otherwise required under this section. If broadcast notice is 247 |
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369 | 369 | | provided, the notice and agenda must be broadcast in a manner 248 |
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370 | 370 | | and for a sufficient continuous length of t ime so as to allow an 249 |
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371 | 371 | | average reader to observe the notice and read and comprehend the 250 |
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380 | 380 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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381 | 381 | | |
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382 | 382 | | |
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383 | 383 | | |
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384 | 384 | | entire content of the notice and the agenda. In addition to any 251 |
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385 | 385 | | of the authorized means of providing notice of a meeting of the 252 |
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386 | 386 | | board, the association may, by rule, adop t a procedure for 253 |
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387 | 387 | | conspicuously posting the meeting notice and the agenda on a 254 |
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388 | 388 | | website serving the condominium association for at least the 255 |
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389 | 389 | | minimum period of time for which a notice of a meeting is also 256 |
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390 | 390 | | required to be physically posted on the condominium p roperty. 257 |
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391 | 391 | | Any rule adopted shall, in addition to other matters, include a 258 |
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392 | 392 | | requirement that the association send an electronic notice in 259 |
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393 | 393 | | the same manner as a notice for a meeting of the members, which 260 |
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394 | 394 | | must include a hyperlink to the website where the notice is 261 |
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395 | 395 | | posted, to unit owners whose e -mail addresses are included in 262 |
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396 | 396 | | the association's official records. Unless a unit owner waives 263 |
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397 | 397 | | in writing the right to receive notice of the annual meeting, 264 |
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398 | 398 | | such notice must be hand delivered, mailed, or electronically 265 |
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399 | 399 | | transmitted to each unit owner. Notice for meetings and notice 266 |
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400 | 400 | | for all other purposes must be mailed to each unit owner at the 267 |
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401 | 401 | | address last furnished to the association by the unit owner, or 268 |
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402 | 402 | | hand delivered to each unit owner. However, if a unit is owned 269 |
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403 | 403 | | by more than one person, the association must provide notice to 270 |
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404 | 404 | | the address that the developer identifies for that purpose and 271 |
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405 | 405 | | thereafter as one or more of the owners of the unit advise the 272 |
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406 | 406 | | association in writing, or if no address is given or the owners 273 |
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407 | 407 | | of the unit do not agree, to the address provided on the deed of 274 |
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408 | 408 | | record. An officer of the association, or the manager or other 275 |
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417 | 417 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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418 | 418 | | |
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419 | 419 | | |
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420 | 420 | | |
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421 | 421 | | person providing notice of the association meeting, must provide 276 |
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422 | 422 | | an affidavit or United States Postal Service certificate of 277 |
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423 | 423 | | mailing, to be included in the official records of the 278 |
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424 | 424 | | association affirming that the notice was mailed or hand 279 |
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425 | 425 | | delivered in accordance with this provision. 280 |
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426 | 426 | | 4. The members of the board of a residential condominium 281 |
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427 | 427 | | shall be elected by written ballot or voting machin e. Proxies 282 |
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428 | 428 | | may not be used in electing the board in general elections or 283 |
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429 | 429 | | elections to fill vacancies caused by recall, resignation, or 284 |
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430 | 430 | | otherwise, unless otherwise provided in this chapter. This 285 |
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431 | 431 | | subparagraph does not apply to an association governing a 286 |
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432 | 432 | | timeshare condominium. 287 |
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433 | 433 | | a. At least 60 days before a scheduled election, the 288 |
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434 | 434 | | association shall mail, deliver, or electronically transmit, by 289 |
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435 | 435 | | separate association mailing or included in another association 290 |
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436 | 436 | | mailing, delivery, or transmission, including regularl y 291 |
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437 | 437 | | published newsletters, to each unit owner entitled to a vote, a 292 |
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438 | 438 | | first notice of the date of the election. A unit owner or other 293 |
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439 | 439 | | eligible person desiring to be a candidate for the board must 294 |
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440 | 440 | | give written notice of his or her intent to be a candidate to 295 |
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441 | 441 | | the association at least 40 days before a scheduled election. 296 |
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442 | 442 | | Together with the written notice and agenda as set forth in 297 |
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443 | 443 | | subparagraph 3., the association shall mail, deliver, or 298 |
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444 | 444 | | electronically transmit a second notice of the election to all 299 |
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445 | 445 | | unit owners entitled to vote, together with a ballot that lists 300 |
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446 | 446 | | |
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454 | 454 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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455 | 455 | | |
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456 | 456 | | |
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457 | 457 | | |
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458 | 458 | | all candidates and each candidate's certification form provided 301 |
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459 | 459 | | by the division on which the candidate attests that he or she 302 |
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460 | 460 | | has read and understands, to the best of his or her ability, the 303 |
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461 | 461 | | governing documents of the association, the provisions of this 304 |
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462 | 462 | | chapter, and any applicable rules not less than 14 days or more 305 |
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463 | 463 | | than 34 days before the date of the election. Upon request of a 306 |
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464 | 464 | | candidate, an information sheet, no larger than 8 1/2 inches by 307 |
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465 | 465 | | 11 inches, which must be furnished by the candidate at least 35 308 |
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466 | 466 | | days before the election, must be included with the mailing, 309 |
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467 | 467 | | delivery, or transmission of the ballot, with the costs of 310 |
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468 | 468 | | mailing, delivery, or electronic transmission and copying to be 311 |
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469 | 469 | | borne by the association. The association is not liable for the 312 |
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470 | 470 | | contents of the information sheets prepared by the candidates. 313 |
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471 | 471 | | In order to reduce costs, the association may print or duplicate 314 |
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472 | 472 | | the information sheets on both sides of the paper. The division 315 |
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473 | 473 | | shall by rule establish vo ting procedures consistent with this 316 |
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474 | 474 | | sub-subparagraph, including rules establishing procedures for 317 |
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475 | 475 | | giving notice by electronic transmission and rules providing for 318 |
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476 | 476 | | the secrecy of ballots. Elections shall be decided by a 319 |
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477 | 477 | | plurality of ballots cast. There is no quorum requirement; 320 |
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478 | 478 | | however, at least 20 percent of the eligible voters must cast a 321 |
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479 | 479 | | ballot in order to have a valid election. A unit owner may not 322 |
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480 | 480 | | authorize any other person to vote his or her ballot, and any 323 |
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481 | 481 | | ballots improperly cast are invalid. A unit owner who violates 324 |
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482 | 482 | | this provision may be fined by the association in accordance 325 |
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483 | 483 | | |
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491 | 491 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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492 | 492 | | |
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493 | 493 | | |
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494 | 494 | | |
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495 | 495 | | with s. 718.303. A unit owner who needs assistance in casting 326 |
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496 | 496 | | the ballot for the reasons stated in s. 101.051 may obtain such 327 |
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497 | 497 | | assistance. The regular election must occur on the date of the 328 |
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498 | 498 | | annual meeting. Notwithstanding this sub -subparagraph, an 329 |
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499 | 499 | | election is not required unless more candidates file notices of 330 |
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500 | 500 | | intent to run or are nominated than board vacancies exist. 331 |
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501 | 501 | | b. Within 90 days after being elected or appointed to the 332 |
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502 | 502 | | board of an association of a residential condominium, each newly 333 |
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503 | 503 | | elected or appointed director shall certify in writing to the 334 |
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504 | 504 | | secretary of the association that he or she has read the 335 |
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505 | 505 | | association's declaration of condominium, articles of 336 |
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506 | 506 | | incorporation, bylaw s, and current written policies; that he or 337 |
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507 | 507 | | she will work to uphold such documents and policies to the best 338 |
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508 | 508 | | of his or her ability; and that he or she will faithfully 339 |
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509 | 509 | | discharge his or her fiduciary responsibility to the 340 |
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510 | 510 | | association's members. In lieu of thi s written certification, 341 |
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511 | 511 | | within 90 days after being elected or appointed to the board, 342 |
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512 | 512 | | the newly elected or appointed director may submit a certificate 343 |
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513 | 513 | | of having satisfactorily completed the educational curriculum 344 |
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514 | 514 | | administered by a division -approved condominium education 345 |
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515 | 515 | | provider within 1 year before or 90 days after the date of 346 |
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516 | 516 | | election or appointment. The written certification or 347 |
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517 | 517 | | educational certificate is valid and does not have to be 348 |
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518 | 518 | | resubmitted as long as the director serves on the board without 349 |
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519 | 519 | | interruption. A director of an association of a residential 350 |
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520 | 520 | | |
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528 | 528 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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529 | 529 | | |
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530 | 530 | | |
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531 | 531 | | |
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532 | 532 | | condominium who fails to timely file the written certification 351 |
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533 | 533 | | or educational certificate is suspended from service on the 352 |
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534 | 534 | | board until he or she complies with this sub -subparagraph. The 353 |
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535 | 535 | | board may temporarily fill the vacancy during the period of 354 |
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536 | 536 | | suspension. The secretary shall cause the association to retain 355 |
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537 | 537 | | a director's written certification or educational certificate 356 |
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538 | 538 | | for inspection by the members for 5 years after a director's 357 |
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539 | 539 | | election or the duration of the director's uninterrupted tenure, 358 |
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540 | 540 | | whichever is longer. Failure to have such written certification 359 |
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541 | 541 | | or educational certificate on file does not affect the validity 360 |
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542 | 542 | | of any board action. 361 |
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543 | 543 | | c. Any challenge to the election process must be commenced 362 |
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544 | 544 | | within 60 days after the election results are announced. 363 |
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545 | 545 | | 5. Any approval by unit owners called for by this chapter 364 |
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546 | 546 | | or the applicable declaration or bylaws, including, but not 365 |
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547 | 547 | | limited to, the approval requirement in s. 718.111(8), must be 366 |
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548 | 548 | | made at a duly noticed meeting of unit owners and is subject to 367 |
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549 | 549 | | all requirements of this chapter or the applicable condominium 368 |
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550 | 550 | | documents relating to unit owner decisionmaking, except that 369 |
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551 | 551 | | unit owners may take action by written agreement, without 370 |
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552 | 552 | | meetings, on matters for which a ction by written agreement 371 |
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553 | 553 | | without meetings is expressly allowed by the applicable bylaws 372 |
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554 | 554 | | or declaration or any law that provides for such action. 373 |
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555 | 555 | | 6. Unit owners may waive notice of specific meetings if 374 |
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556 | 556 | | allowed by the applicable bylaws or declaration or any law. 375 |
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557 | 557 | | |
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565 | 565 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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566 | 566 | | |
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567 | 567 | | |
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568 | 568 | | |
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569 | 569 | | Notice of meetings of the board of administration, unit owner 376 |
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570 | 570 | | meetings, except unit owner meetings called to recall board 377 |
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571 | 571 | | members under paragraph (j), and committee meetings may be given 378 |
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572 | 572 | | by electronic transmission to unit owners who consent to rec eive 379 |
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573 | 573 | | notice by electronic transmission. A unit owner who consents to 380 |
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574 | 574 | | receiving notices by electronic transmission is solely 381 |
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575 | 575 | | responsible for removing or bypassing filters that block receipt 382 |
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576 | 576 | | of mass e-mails sent to members on behalf of the association in 383 |
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577 | 577 | | the course of giving electronic notices. 384 |
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578 | 578 | | 7. Unit owners have the right to participate in meetings 385 |
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579 | 579 | | of unit owners with reference to all designated agenda items. 386 |
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580 | 580 | | However, the association may adopt reasonable rules governing 387 |
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581 | 581 | | the frequency, duration, and manner of unit owner participation. 388 |
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582 | 582 | | 8. A unit owner may tape record or videotape a meeting of 389 |
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583 | 583 | | the unit owners subject to reasonable rules adopted by the 390 |
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584 | 584 | | division. 391 |
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585 | 585 | | 9. Unless otherwise provided in the bylaws, any vacancy 392 |
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586 | 586 | | occurring on the board before the expir ation of a term may be 393 |
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587 | 587 | | filled by the affirmative vote of the majority of the remaining 394 |
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588 | 588 | | directors, even if the remaining directors constitute less than 395 |
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589 | 589 | | a quorum, or by the sole remaining director. In the alternative, 396 |
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590 | 590 | | a board may hold an election to fill the vacancy, in which case 397 |
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591 | 591 | | the election procedures must conform to sub -subparagraph 4.a. 398 |
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592 | 592 | | unless the association governs 10 units or fewer and has opted 399 |
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593 | 593 | | out of the statutory election process, in which case the bylaws 400 |
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594 | 594 | | |
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602 | 602 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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603 | 603 | | |
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604 | 604 | | |
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605 | 605 | | |
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606 | 606 | | of the association control. Unless otherwis e provided in the 401 |
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607 | 607 | | bylaws, a board member appointed or elected under this section 402 |
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608 | 608 | | shall fill the vacancy for the unexpired term of the seat being 403 |
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609 | 609 | | filled. Filling vacancies created by recall is governed by 404 |
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610 | 610 | | paragraph (j) and rules adopted by the division. 405 |
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611 | 611 | | 10. This chapter does not limit the use of general or 406 |
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612 | 612 | | limited proxies, require the use of general or limited proxies, 407 |
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613 | 613 | | or require the use of a written ballot or voting machine for any 408 |
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614 | 614 | | agenda item or election at any meeting of a timeshare 409 |
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615 | 615 | | condominium associat ion or nonresidential condominium 410 |
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616 | 616 | | association. 411 |
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617 | 617 | | 412 |
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618 | 618 | | Notwithstanding subparagraph (b)2. and sub -subparagraph 4.a., an 413 |
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619 | 619 | | association of 10 or fewer units may, by affirmative vote of a 414 |
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620 | 620 | | majority of the total voting interests, provide for different 415 |
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621 | 621 | | voting and election procedures in its bylaws, which may be by a 416 |
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622 | 622 | | proxy specifically delineating the different voting and election 417 |
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623 | 623 | | procedures. The different voting and election procedures may 418 |
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624 | 624 | | provide for elections to be conducted by limited or general 419 |
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625 | 625 | | proxy. 420 |
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626 | 626 | | Section 3. Subsection (10) is added to section 718.113, 421 |
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627 | 627 | | Florida Statutes, to read: 422 |
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628 | 628 | | 718.113 Maintenance; limitation upon improvement; display 423 |
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629 | 629 | | of flag; hurricane shutters and protection; display of religious 424 |
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630 | 630 | | decorations.— 425 |
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640 | 640 | | |
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641 | 641 | | |
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642 | 642 | | |
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643 | 643 | | (10) As to a condominium building that is taller than 426 |
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644 | 644 | | three stories in height, at least every 5 years, and within 5 427 |
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645 | 645 | | years if such building is not available for inspection on or 428 |
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646 | 646 | | before July 1, 2022, the board shall have the condominium 429 |
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647 | 647 | | building inspected by an architect or engineer authorized to 430 |
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648 | 648 | | practice in the state. The architect or engineer shall provide a 431 |
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649 | 649 | | report under his or her seal to the board attesting to the 432 |
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650 | 650 | | required maintenance, useful life, and replacements costs of the 433 |
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651 | 651 | | common elements of the condominium building. However, an 434 |
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652 | 652 | | association may waive this requirement if the decision to waive 435 |
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653 | 653 | | is approved by a majority of the voting interests present at a 436 |
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654 | 654 | | properly called meeting of the association. The meeting and 437 |
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655 | 655 | | approval must occur before the end of the 5 -year period and such 438 |
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656 | 656 | | approval is effective only for that 5 -year period. 439 |
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657 | 657 | | Section 4. This act shall take effect July 1, 2022. 440 |
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