CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 1 of 30 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 A bill to be entitled 1 An act relating to homeowners' associations; amending 2 s. 468.4334, F.S.; providing requirements for certain 3 community association managers and community 4 association management firms; amending s. 468.4337, 5 F.S.; requiring certain community association manag ers 6 to take a specific number of hours of continuing 7 education biennially; amending s. 720.303, F.S.; 8 requiring official records of a homeowners' 9 association to be maintained for a certain number of 10 years; requiring a certain association to post certain 11 documents on its website or make such documents 12 available through an application by a date certain; 13 providing requirements for an association's website or 14 application; providing requirements for notices posted 15 on an association's website or application; requ iring 16 an association to provide certain information to 17 parcel owners upon request; requiring an association 18 to ensure certain information and records are not 19 accessible on the website or application; providing 20 that an association or its agent is not liable for the 21 disclosure of certain information; requiring an 22 association to adopt certain rules; providing criminal 23 penalties; requiring an association to provide or make 24 available subpoenaed records within a certain 25 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 2 of 30 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 timeframe; requiring an association to assi st in a law 26 enforcement investigation as allowed by law; requiring 27 certain associations to prepare audited financial 28 statements; prohibiting associations from preparing 29 financial statements for consecutive fiscal years; 30 prohibiting certain persons from usi ng a debit card 31 issued in the name of the association for certain 32 purposes; providing a criminal penalty; defining the 33 term "lawful obligation of the association"; amending 34 s. 720.3033, F.S.; providing education requirements 35 for newly elected or appointed directors; providing 36 requirements for the educational curriculum; requiring 37 certain directors to complete a certain number of 38 hours of continuing education annually; requiring the 39 Department of Business and Professional Regulation to 40 adopt certain rules; p roviding criminal penalties for 41 certain actions by an officer, a director, or a 42 manager of an association; defining the term 43 "kickback"; requiring a vacancy to be declared if a 44 director or an officer is charged by information for 45 any criminal violation und er the chapter; amending s. 46 720.3035, F.S.; requiring an association or any 47 architectural, construction improvement, or other such 48 similar committee of an association to apply and 49 enforce certain standards reasonably and equitably; 50 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 3 of 30 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 requiring an association or any architectural, 51 construction improvement, or other such similar 52 committee of an association to provide certain written 53 notice to a parcel owner; amending s. 720.3085, F.S.; 54 conforming a cross-reference; amending s. 720.317, 55 F.S.; providing that a ho meowner may consent to online 56 voting electronically, as well as in writing, and that 57 association boards must establish reasonable 58 procedures for giving such consent; providing an 59 effective date. 60 61 Be It Enacted by the Legislature of the State of Florida : 62 63 Section 1. Subsection (3) is added to section 468.4334, 64 Florida Statutes, to read: 65 468.4334 Professional practice standards; liability ; 66 community association manager requirements .— 67 (3) A community association manager or community 68 association management firm that is authorized by contract to 69 provide community association management services to a 70 homeowners' association must do all of the following: 71 (a) Attend in person at least one member meeting or board 72 meeting of the homeowners' association a nnually. 73 (b) Provide to the members of the homeowners' association 74 the name and contact information for each community association 75 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 4 of 30 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 manager or representative of a community association management 76 firm assigned to the homeowners' association, the manager's or 77 representative's hours of availability, and a summary of the 78 duties for which the manager or representative is responsible. 79 The homeowners' association must also post this information on 80 the association's website or application required under s. 81 720.303(4)(b). The community association manager or community 82 association management firm must update the homeowners' 83 association and its members within 14 business days after any 84 change to such information. 85 (c) Provide to any member upon request a copy of the 86 contract between the community association manager or community 87 association management firm and the homeowners' association and 88 include such contract with association's governing documents. 89 Section 2. Section 468.4337, Florida Statutes, is amended 90 to read: 91 468.4337 Continuing education. —The department may not 92 renew a license until the licensee submits proof that the 93 licensee has completed the requisite hours of continuing 94 education. No more than 10 hours of continuing education 95 annually shall be requ ired for renewal of a license. The number 96 of continuing education hours, criteria, and course content 97 shall be approved by the council by rule. The council may not 98 require more than 10 hours of continuing education annually for 99 renewal of a license. A comm unity association manager who 100 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 5 of 30 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 provides community association management services to a 101 homeowners' association must biennially complete at least 5 102 hours of continuing education that pertains specifically to 103 homeowners' associations, 3 hours of which must re late to 104 recordkeeping. 105 Section 3. Subsections (4) and (5), paragraph (f) of 106 subsection (6), and paragraphs (a) and (d) of subsection (7) of 107 section 720.303, Florida Statutes, are amended, and subsection 108 (13) is added to that section, to read: 109 720.303 Association powers and duties; meetings of board; 110 official records; budgets; financial reporting; association 111 funds; recalls.— 112 (4) OFFICIAL RECORDS. — 113 (a) The association shall maintain each of the following 114 items, when applicable, for at least 7 years , unless the 115 governing documents of the association require a longer period 116 of time, which constitute the official records of the 117 association: 118 1.(a) Copies of any plans, specifications, permits, and 119 warranties related to improvements constructed on the common 120 areas or other property that the association is obligated to 121 maintain, repair, or replace. 122 2.(b) A copy of the bylaws of the association and of each 123 amendment to the bylaws. 124 3.(c) A copy of the articles of incorporation of the 125 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 6 of 30 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 association and of each amendment thereto. 126 4.(d) A copy of the declaration of covenants and a copy of 127 each amendment thereto. 128 5.(e) A copy of the current rules of t he homeowners' 129 association. 130 6.(f) The minutes of all meetings of the board of 131 directors and of the members , which minutes must be retained for 132 at least 7 years. 133 7.(g) A current roster of all members and their designated 134 mailing addresses and parcel ide ntifications. A member's 135 designated mailing address is the member's property address, 136 unless the member has sent written notice to the association 137 requesting that a different mailing address be used for all 138 required notices. The association shall also main tain the e-mail 139 addresses and the facsimile numbers designated by members for 140 receiving notice sent by electronic transmission of those 141 members consenting to receive notice by electronic transmission. 142 A member's e-mail address is the e -mail address the mem ber 143 provided when consenting in writing to receiving notice by 144 electronic transmission, unless the member has sent written 145 notice to the association requesting that a different e -mail 146 address be used for all required notices. The e -mail addresses 147 and facsimile numbers provided by members to receive notice by 148 electronic transmission must be removed from association records 149 when the member revokes consent to receive notice by electronic 150 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 7 of 30 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 transmission. However, the association is not liable for an 151 erroneous disclosure of the e-mail address or the facsimile 152 number for receiving electronic transmission of notices. 153 8.(h) All of the association's insurance policies or a 154 copy thereof, which policies must be retained for at least 7 155 years. 156 9.(i) A current copy of all contracts to which the 157 association is a party, including, without limitation, any 158 management agreement, lease, or other contract under which the 159 association has any obligation or responsibility. Bids received 160 by the association for work to be performed are must also be 161 considered official records and must be kept for a period of 1 162 year. 163 10.(j) The financial and accounting records of the 164 association, kept according to good accounting practices. All 165 financial and accounting records must be maintained for a period 166 of at least 7 years. The financial and accounting records must 167 include: 168 a.1. Accurate, itemized, and detailed records of all 169 receipts and expenditures. 170 b.2. A current account and a periodic statement of the 171 account for each member, designatin g the name and current 172 address of each member who is obligated to pay assessments, the 173 due date and amount of each assessment or other charge against 174 the member, the date and amount of each payment on the account, 175 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 8 of 30 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 and the balance due. 176 c.3. All tax returns, financial statements, and financial 177 reports of the association. 178 d.4. Any other records that identify, measure, record, or 179 communicate financial information. 180 11.(k) A copy of the disclosure summary described in s. 181 720.401(1). 182 12.(l) Ballots, sign-in sheets, voting proxies, and all 183 other papers and electronic records relating to voting by parcel 184 owners, which must be maintained for at least 1 year after the 185 date of the election, vote, or meeting. 186 13.(m) All affirmative acknowledgme nts made pursuant to s. 187 720.3085(3)(c)3. 188 14.(n) All other written records of the association not 189 specifically included in this subsection which are related to 190 the operation of the association. 191 (b)1. By January 1, 2025, an association that has 100 192 parcels or more shall post a current digital copy of the 193 documents specified in subparagraph 3. on its website or make 194 such documents available through an application that can be 195 downloaded on a mobile device. 196 2. The association's website or application must be 197 accessible through the Internet and must contain a subpage, web 198 portal, or other protected electronic location that is 199 inaccessible to the general public and accessible only to parcel 200 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 9 of 30 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 owners and employees of the association. 201 3. A current copy of the f ollowing documents must be 202 posted in digital format on the association's website or 203 application: 204 a. The articles of incorporation of the association and 205 each amendment thereto. 206 b. The recorded bylaws of the association and each 207 amendment thereto. 208 c. The declaration of covenants and a copy of each 209 amendment thereto. 210 d. The current rules of the association. 211 e. A list of all current executory contracts or documents 212 to which the association is a party or under which the 213 association or the parcel owner s have an obligation or 214 responsibility and, after bidding for the related materials, 215 equipment, or services has closed, a list of bids received by 216 the association within the past year. 217 f. The annual budget required by subsection (6) and any 218 proposed budget to be considered at the annual meeting. 219 g. The financial report required by subsection (7) and any 220 monthly income or expense statement to be considered at a 221 meeting. 222 h. The association's current insurance policies. 223 i. The certification of each director as required by s. 224 720.3033(1)(a). 225 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 10 of 30 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 j. All contracts or transactions between the association 226 and any director, officer, corporation, firm, or association 227 that is not an affiliated homeowners' association or any other 228 entity in which a director of an association is also a director 229 or officer and has a financial interest. 230 k. Any contract or document regarding a conflict of 231 interest or possible conflict of interest as provided in ss. 232 468.436(2)(b)6. and 720.3033(2). 233 l. Notice of any scheduled meet ing of members and the 234 agenda for the meeting, as required by s. 720.306, no later than 235 14 days before such meeting. The notice must be posted in plain 236 view on the homepage of the website or application, or on a 237 separate subpage of the website or applicati on labeled "Notices" 238 which is conspicuously visible and linked from the homepage. The 239 association must also post on its website or application any 240 document to be considered and voted on by the members during the 241 meeting or any document listed on the meetin g agenda at least 7 242 days before the meeting at which such document or information 243 within the document will be considered. 244 m. Notice of any board meeting, the agenda, and any other 245 document required for such meeting as required by subsection 246 (3), which must be posted on the website or application no later 247 than the date required for notice under subsection (3). 248 4. Upon written request by a parcel owner, the association 249 must provide the parcel owner with a username and password and 250 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 11 of 30 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 access to the protected sections of the association's website or 251 application which contains the official documents of the 252 association. 253 5. The association shall ensure that the information and 254 records described in paragraph (5)(d), which are not allowed to 255 be accessible to parce l owners, are not posted on the 256 association's website or application. If protected information 257 or information restricted from being accessible to parcel owners 258 is included in documents that are required to be posted on the 259 association's website or applicat ion, the association must 260 ensure the information is redacted before posting the documents. 261 Notwithstanding the foregoing, the association or its authorized 262 agent is not liable for disclosing information that is protected 263 or restricted under paragraph (5)(d ) unless such disclosure was 264 made with a knowing or intentional disregard of the protected or 265 restricted nature of such information. 266 (c) The association shall adopt written rules governing 267 the method or policy by which the official records of the 268 association are to be retained and for how long such records 269 must be retained pursuant to paragraph (a). Such information 270 must be made available to the parcel owners through the 271 association's website or application. 272 (5) INSPECTION AND COPYING OF RECORDS. — 273 (a) Unless otherwise provided by law or the governing 274 documents of the association, the official records must shall be 275 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 12 of 30 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 maintained within the state for at least 7 years and shall be 276 made available to a parcel owner for inspection or photocopying 277 within 45 miles of the community or within the county in which 278 the association is located within 10 business days after receipt 279 by the board or its designee of a written request from the 280 parcel owner. This subsection may be complied with by having a 281 copy of the official records available for inspection or copying 282 in the community or, at the option of the association, by making 283 the records available to a parcel owner electronically via the 284 Internet or by allowing the records to be viewed in electronic 285 format on a computer screen and printed upon request. If the 286 association has a photocopy machine available where the records 287 are maintained, it must provide parcel owners with copies on 288 request during the inspection if the entire request is limited 289 to no more than 25 pages. A n association shall allow a member or 290 his or her authorized representative to use a portable device, 291 including a smartphone, tablet, portable scanner, or any other 292 technology capable of scanning or taking photographs, to make an 293 electronic copy of the offi cial records in lieu of the 294 association's providing the member or his or her authorized 295 representative with a copy of such records. The association may 296 not charge a fee to a member or his or her authorized 297 representative for the use of a portable device. 298 (b)(a) The failure of an association to provide access to 299 the records within 10 business days after receipt of a written 300 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 13 of 30 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 request submitted by certified mail, return receipt requested, 301 creates a rebuttable presumption that the association willfully 302 failed to comply with this subsection. 303 (c)(b) A member who is denied access to official records 304 is entitled to the actual damages or minimum damages for the 305 association's willful failure to comply with this subsection. 306 The minimum damages are to be $50 per cale ndar day up to 10 307 days, the calculation to begin on the 11th business day after 308 receipt of the written request. 309 (d) Any director or member of the board or association or 310 a community association manager who knowingly, willfully, and 311 repeatedly violates pa ragraph (a), with the intent of causing 312 harm to the association or one or more of its members, commits a 313 misdemeanor of the second degree, punishable as provided in s. 314 775.082 or s. 775.083. For purposes of this paragraph, the term 315 "repeatedly" means two o r more violations within a 12 -month 316 period. 317 (e) Any person who knowingly and intentionally defaces or 318 destroys accounting records during the period in which such 319 records are required to be maintained, or who knowingly or 320 intentionally fails to create or maintain accounting records 321 that are required to be created or maintained, with the intent 322 of causing harm to the association or one or more of its 323 members, commits a misdemeanor of the first degree, punishable 324 as provided in s. 775.082 or s. 775.083. 325 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 14 of 30 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 (f) Any person who willfully and knowingly refuses to 326 release or otherwise produce association records with the intent 327 to avoid or escape detection, arrest, trial, or punishment for 328 the commission of a crime, or to assist another person with such 329 avoidance or escape, commits a felony of the third degree, 330 punishable as provided in s. 775.082, s. 775.083, or s. 775.084. 331 (g)(c) The association may adopt reasonable written rules 332 governing the frequency, time, location, notice, records to be 333 inspected, and manne r of inspections, but may not require a 334 parcel owner to demonstrate any proper purpose for the 335 inspection, state any reason for the inspection, or limit a 336 parcel owner's right to inspect records to less than one 8 -hour 337 business day per month. The associati on may impose fees to cover 338 the costs of providing copies of the official records, including 339 the costs of copying and the costs required for personnel to 340 retrieve and copy the records if the time spent retrieving and 341 copying the records exceeds one -half hour and if the personnel 342 costs do not exceed $20 per hour. Personnel costs may not be 343 charged for records requests that result in the copying of 25 or 344 fewer pages. The association may charge up to 25 cents per page 345 for copies made on the association's photo copier. If the 346 association does not have a photocopy machine available where 347 the records are kept, or if the records requested to be copied 348 exceed 25 pages in length, the association may have copies made 349 by an outside duplicating service and may charge the actual cost 350 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 15 of 30 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 of copying, as supported by the vendor invoice. The association 351 shall maintain an adequate number of copies of the recorded 352 governing documents, to ensure their availability to members and 353 prospective members. Notwithstanding this subsection paragraph, 354 the following records are not accessible to members or parcel 355 owners: 356 1. Any record protected by the lawyer -client privilege as 357 described in s. 90.502 and any record protected by the work -358 product privilege, including, but not limited to, a reco rd 359 prepared by an association attorney or prepared at the 360 attorney's express direction which reflects a mental impression, 361 conclusion, litigation strategy, or legal theory of the attorney 362 or the association and which was prepared exclusively for civil 363 or criminal litigation or for adversarial administrative 364 proceedings or which was prepared in anticipation of such 365 litigation or proceedings until the conclusion of the litigation 366 or proceedings. 367 2. Information obtained by an association in connection 368 with the approval of the lease, sale, or other transfer of a 369 parcel. 370 3. Information an association obtains in a gated community 371 in connection with guests' visits to parcel owners or community 372 residents. 373 4. Personnel records of association or management compa ny 374 employees, including, but not limited to, disciplinary, payroll, 375 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 16 of 30 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 health, and insurance records. For purposes of this 376 subparagraph, the term "personnel records" does not include 377 written employment agreements with an association or management 378 company employee or budgetary or financial records that indicate 379 the compensation paid to an association or management company 380 employee. 381 5. Medical records of parcel owners or community 382 residents. 383 6. Social security numbers, driver license numbers, credit 384 card numbers, electronic mailing addresses, telephone numbers, 385 facsimile numbers, emergency contact information, any addresses 386 for a parcel owner other than as provided for association notice 387 requirements, and other personal identifying information of any 388 person, excluding the person's name, parcel designation, mailing 389 address, and property address. Notwithstanding the restrictions 390 in this subparagraph, an association may print and distribute to 391 parcel owners a directory containing the name, parcel address, 392 and all telephone numbers of each parcel owner. However, an 393 owner may exclude his or her telephone numbers from the 394 directory by so requesting in writing to the association. An 395 owner may consent in writing to the disclosure of other contact 396 information described in this subparagraph. The association is 397 not liable for the disclosure of information that is protected 398 under this subparagraph if the information is included in an 399 official record of the association and is voluntarily provided 400 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 17 of 30 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 by an owner and not requeste d by the association. 401 7. Any electronic security measure that is used by the 402 association to safeguard data, including passwords. 403 8. The software and operating system used by the 404 association which allows the manipulation of data, even if the 405 owner owns a copy of the same software used by the association. 406 The data is part of the official records of the association. 407 9. All affirmative acknowledgments made pursuant to s. 408 720.3085(3)(c)3. 409 (h)(d) The association or its authorized agent is not 410 required to provide a prospective purchaser or lienholder with 411 information about the residential subdivision or the association 412 other than information or documents required by this chapter to 413 be made available or disclosed. The association or its 414 authorized agent may charge a reasonable fee to the prospective 415 purchaser or lienholder or the current parcel owner or member 416 for providing good faith responses to requests for information 417 by or on behalf of a prospective purchaser or lienholder, other 418 than that required by la w, if the fee does not exceed $150 plus 419 the reasonable cost of photocopying and any attorney fees 420 incurred by the association in connection with the response. 421 (i) If an association receives a subpoena for records from 422 a law enforcement agency, the associ ation must provide a copy of 423 such records or otherwise make the records available for 424 inspection and copying to a law enforcement agency within 5 425 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 18 of 30 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 business days after receipt of the subpoena, unless otherwise 426 specified by the law enforcement agency or subpo ena. An 427 association must assist a law enforcement agency in its 428 investigation to the extent permissible by law. 429 (6) BUDGETS.— 430 (f) After one or more reserve accounts are established, 431 the membership of the association, upon a majority vote at a 432 meeting at which a quorum is present, may provide for no 433 reserves or less reserves than required by this section. If a 434 meeting of the parcel unit owners has been called to determine 435 whether to waive or reduce the funding of reserves and such 436 result is not achieved or a quorum is not present, the reserves 437 as included in the budget go into effect. After the turnover, 438 the developer may vote its voting interest to waive or reduce 439 the funding of reserves. Any vote taken pursuant to this 440 subsection to waive or reduce rese rves is applicable only to one 441 budget year. 442 (7) FINANCIAL REPORTING. —Within 90 days after the end of 443 the fiscal year, or annually on the date provided in the bylaws, 444 the association shall prepare and complete, or contract with a 445 third party for the preparation and completion of, a financial 446 report for the preceding fiscal year. Within 21 days after the 447 final financial report is completed by the association or 448 received from the third party, but not later than 120 days after 449 the end of the fiscal year or other date as provided in the 450 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 19 of 30 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 bylaws, the association shall, within the time limits set forth 451 in subsection (5), provide each member with a copy of the annual 452 financial report or a written notice that a copy of the 453 financial report is available upon request at no charge to the 454 member. Financial reports shall be prepared as follows: 455 (a) An association that meets the criteria of this 456 paragraph shall prepare or cause to be prepared a complete set 457 of financial statements in accordance with generally accepted 458 accounting principles as adopted by the Board o f Accountancy. 459 The financial statements shall be based upon the association's 460 total annual revenues, as follows: 461 1. An association with total annual revenues of $150,000 462 or more, but less than $300,000, shall prepare compiled 463 financial statements. 464 2. An association with total annual revenues of at least 465 $300,000, but less than $500,000, shall prepare reviewed 466 financial statements. 467 3. An association with total annual revenues of $500,000 468 or more shall prepare audited financial statements. 469 4. An association with 1,000 parcels or more shall prepare 470 audited financial statements, notwithstanding the association's 471 total annual revenues. 472 (d) If approved by a majority of the voting interests 473 present at a properly called meeting of the association, an 474 association may prepare or cause to be prepared: 475 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 20 of 30 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 1. A report of cash receipts and expenditures in lieu of a 476 compiled, reviewed, or audited financial statement; 477 2. A report of cash receipts and expenditures or a 478 compiled financial statement in lieu of a revi ewed or audited 479 financial statement; or 480 3. A report of cash receipts and expenditures, a compiled 481 financial statement, or a reviewed financial statement in lieu 482 of an audited financial statement. 483 484 An association may not prepare a financial statement purs uant to 485 this paragraph for consecutive fiscal years. 486 (13) DEBIT CARDS.— 487 (a) An association and its officers, directors, employees, 488 and agents may not use a debit card issued in the name of the 489 association, or billed directly to the association, for the 490 payment of any association expenses. 491 (b) A person who uses a debit card issued in the name of 492 the association, or billed directly to the association, for any 493 expense that is not a lawful obligation of the association 494 commits theft as provided under s. 8 12.014. 495 496 For the purposes of this subsection, the term "lawful obligation 497 of the association" means an obligation that has been properly 498 preapproved by the board and is reflected in the meeting minutes 499 or the written budget. 500 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 21 of 30 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 Section 4. Subsections (1) and (3) and paragraph (a) of 501 subsection (4) of section 720.3033, Florida Statutes, are 502 amended to read: 503 720.3033 Officers and directors. — 504 (1)(a) Within 90 days after being elected or appointed to 505 the board, each director shall certify in writing to the 506 secretary of the association that he or she has read the 507 association's declaration of covenants, articles of 508 incorporation, bylaws, and current written rules and policies; 509 that he or she will work to uphold such documents and policies 510 to the best of his o r her ability; and that he or she will 511 faithfully discharge his or her fiduciary responsibility to the 512 association's members. Within 90 days after being elected or 513 appointed to the board, in lieu of such written certification, 514 the newly elected or appointe d director must may submit a 515 certificate of having satisfactorily completed the educational 516 curriculum administered by a department-approved division-517 approved education provider. 518 1. The newly elected or appointed director must complete 519 the department-approved education for newly elected or appointed 520 directors within 90 days after being elected or appointed. 521 2. The certificate of completion is valid for a maximum of 522 4 years. 523 3. At least every 4 years, a director must complete the 524 education specific to newly elected or appointed directors. 525 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 22 of 30 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 4. The department-approved educational curriculum specific 526 to newly elected or appointed directors must include training 527 relating to financial literacy and transparency, recordkeeping, 528 levying of fines, and notice an d meeting requirements. 529 5. In addition to the educational curriculum specific to 530 newly elected or appointed directors: 531 a. A director of an association that has fewer than 2,500 532 parcels must complete at least 4 hours of continuing education 533 annually. 534 b. A director of an association that has 2,500 parcels or 535 more must complete at least 8 hours of continuing education 536 annually within 1 year before or 90 days after the date of 537 election or appointment . 538 (b) The written certification or educational certifi cate 539 is valid for the uninterrupted tenure of the director on the 540 board. A director who does not timely file the written 541 certification or educational certificate is shall be suspended 542 from the board until he or she complies with the requirement. 543 The board may temporarily fill the vacancy during the period of 544 suspension. 545 (c) The association shall retain each director's written 546 certification or educational certificate for inspection by the 547 members for 5 years after the director's election. However, the 548 failure to have the written certification or educational 549 certificate on file does not affect the validity of any board 550 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 23 of 30 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 action. 551 (d) The department shall adopt rules to implement and 552 administer the educational curriculum and continuing education 553 requirements under this subsection. 554 (3) An officer, a director, or a manager may not solicit, 555 offer to accept, or accept a kickback. As used in this 556 subsection, the term "kickback" means any thing or service of 557 value for which consideration has not been provided for an 558 officer's, a director's, or a manager's his or her benefit or 559 for the benefit of a member of his or her immediate family from 560 any person providing or proposing to provide goods or services 561 to the association. An officer, a director, or a manager who 562 knowingly solicits, offers to accept, or accepts a any thing or 563 service of value or kickback commits a felony of the third 564 degree, punishable as provided in s. 775.082, s. 775.083, or s. 565 775.084, and for which consideration has not been provided for 566 his or her own benefit or that of his or her immediate family 567 from any person providing or proposing to provide goods or 568 services to the association is subject to monetary damages under 569 s. 617.0834. If the board finds that an officer or a director 570 has violated this subsection, the board shall immediately remove 571 the officer or director from office. The vacancy shall be filled 572 according to law until the end of the officer's or director's 573 term of office. However, an officer, a director, or a manager 574 may accept food to be consumed at a business meeting with a 575 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 24 of 30 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 value of less than $25 per individual or a service or good 576 received in connection with trade fairs or education programs. 577 (4)(a) A director or an officer charged by information or 578 indictment with any of the follow ing crimes must be removed from 579 office and a vacancy declared : 580 1. Forgery of a ballot envelope or voting certificate used 581 in a homeowners' association election as provided in s. 831.01. 582 2. Theft or embezzlement involving the association's funds 583 or property as provided in s. 812.014. 584 3. Destruction of or the refusal to allow inspection or 585 copying of an official record of a homeowners' association which 586 is accessible to parcel owners within the time periods required 587 by general law, in furtherance of any crime. Such act 588 constitutes tampering with physical evidence as provided in s. 589 918.13. 590 4. Obstruction of justice as provided in chapter 843. 591 5. Any criminal violation under this chapter. 592 Section 5. Subsections (1) and (4) of section 720.3035, 593 Florida Statutes, are amended to read: 594 720.3035 Architectural control covenants; parcel owner 595 improvements; rights and privileges. — 596 (1) The authority of an association or any architectural, 597 construction improvement, or other such similar committee of an 598 association to review and approve plans and specifications for 599 the location, size, type, or appearance of any structure or 600 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 25 of 30 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 other improvement on a parcel, or to enforce standards for the 601 external appearance of any structure or improvement located on a 602 parcel, is shall be permitted only to the extent that the 603 authority is specifically stated or reasonably inferred as to 604 such location, size, type, or appearance in the declaration of 605 covenants or other published guidelines and standards authorized 606 by the declaration of covenants. An association or any 607 architectural, construction improvement, or similar committee of 608 an association must reasonably and equitably apply and enforce 609 on all parcel owners the architectural and construction 610 improvement standards authorized by the declaration of covenants 611 or other published guidelines and standards authorized by the 612 declaration of covenants. 613 (4) Each parcel owner is shall be entitled to the rights 614 and privileges set forth in the declaration of covenants or 615 other published guidelines and standards authorized by the 616 declaration of covenants concerning the architectural use of the 617 parcel, and the construction of permitted structures and 618 improvements on the parcel and such rights and privileges may 619 shall not be unreasonably inf ringed upon or impaired by the 620 association or any architectural, construction improvement, or 621 other such similar committee of the association. If the 622 association or any architectural, construction improvement, or 623 other such similar committee of the associa tion denies a parcel 624 owner's request or application for the construction of a 625 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 26 of 30 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 structure or other improvement on a parcel, the association or 626 committee must provide written notice to the parcel owner 627 stating with specificity the rule or covenant on which th e 628 association or committee relied when denying the request or 629 application and the specific aspect or part of the proposed 630 improvement that does not conform to such rule or covenant. If 631 the association or any architectural, construction improvement, 632 or other such similar committee of the association should 633 unreasonably, knowingly, and willfully infringe upon or impair 634 the rights and privileges set forth in the declaration of 635 covenants or other published guidelines and standards authorized 636 by the declaration of covenants, the adversely affected parcel 637 owner is shall be entitled to recover damages caused by such 638 infringement or impairment, including any costs and reasonable 639 attorney attorney's fees incurred in preserving or restoring the 640 rights and privileges of the parcel owner set forth in the 641 declaration of covenants or other published guidelines and 642 standards authorized by the declaration of covenants. 643 Section 6. Paragraph (c) of subsec tion (3) of section 644 720.3085, Florida Statutes, is amended to read: 645 720.3085 Payment for assessments; lien claims. — 646 (3) Assessments and installments on assessments that are 647 not paid when due bear interest from the due date until paid at 648 the rate provided in the declaration of covenants or the bylaws 649 of the association, which rate may not exceed the rate allowed 650 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 27 of 30 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 by law. If no rate is provided in the declaration or bylaws, 651 interest accrues at the rate of 18 percent per year. 652 (c)1. If an association send s out an invoice for 653 assessments or a parcel's statement of the account described in 654 s. 720.303(4)(a)10.b. s. 720.303(4)(j)2., the invoice for 655 assessments or the parcel's statement of account must be 656 delivered to the parcel owner by first -class United States mail 657 or by electronic transmission to the parcel owner's e -mail 658 address maintained in the association's official records. 659 2. Before changing the method of delivery for an invoice 660 for assessments or the statement of the account, the association 661 must deliver a written notice of such change to each parcel 662 owner. The written notice must be delivered to the parcel owner 663 at least 30 days before the association sends the invoice for 664 assessments or the statement of the account by the new delivery 665 method. The notice must be sent by first -class United States 666 mail to the owner at his or her last address as reflected in the 667 association's records and, if such address is not the parcel 668 address, must be sent by first -class United States mail to the 669 parcel address. Notice is deemed to have been delivered upon 670 mailing as required by this subparagraph. 671 3. A parcel owner must affirmatively acknowledge his or 672 her understanding that the association will change its method of 673 delivery of the invoice for assessments or the st atement of the 674 account before the association may change the method of 675 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 28 of 30 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 delivering an invoice for assessments or the statement of 676 account. The parcel owner may make the affirmative 677 acknowledgment electronically or in writing. 678 Section 7. Section 720.317, Florida Statutes, is amended 679 to read: 680 720.317 Electronic voting. — 681 (1) The association may conduct elections and other 682 membership votes through an Internet -based online voting system 683 if a member consents, electronically or in writing, to online 684 voting and if the following requirements are met: 685 (a)(1) The association provides each member with: 686 1.(a) A method to authenticate the member's identity to 687 the online voting system. 688 2.(b) A method to confirm, at least 14 days before the 689 voting deadline, tha t the member's electronic device can 690 successfully communicate with the online voting system. 691 3.(c) A method that is consistent with the election and 692 voting procedures in the association's bylaws. 693 (b)(2) The association uses an online voting system that 694 is: 695 1.(a) Able to authenticate the member's identity. 696 2.(b) Able to authenticate the validity of each electronic 697 vote to ensure that the vote is not altered in transit. 698 3.(c) Able to transmit a receipt from the online voting 699 system to each member wh o casts an electronic vote. 700 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 29 of 30 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 4.(d) Able to permanently separate any authentication or 701 identifying information from the electronic election ballot, 702 rendering it impossible to tie an election ballot to a specific 703 member. This paragraph only applies if the association's bylaws 704 provide for secret ballots for the election of directors. 705 5.(e) Able to store and keep electronic ballots accessible 706 to election officials for recount, inspection, and review 707 purposes. 708 (2)(3) A member voting electronically pursuant to this 709 section shall be counted a s being in attendance at the meeting 710 for purposes of determining a quorum. 711 (3)(4) This section applies to an association that 712 provides for and authorizes an online voting system pursuant to 713 this section by a board resolution. The board resolution must 714 provide that members receive notice of the opportunity to vote 715 through an online voting system, must establish reasonable 716 procedures and deadlines for members to consent, electronically 717 or in writing, to online voting, and must establish reasonable 718 procedures and deadlines for members to opt out of online voting 719 after giving consent. Written notice of a meeting at which the 720 board resolution regarding online voting will be considered must 721 be mailed, delivered, or electronically transmitted to the unit 722 owners and posted conspicuously on the condominium property or 723 association property at least 14 days before the meeting. 724 Evidence of compliance with the 14 -day notice requirement must 725 CS/CS/HB 1243 2024 CODING: Words stricken are deletions; words underlined are additions. hb1243-02-c2 Page 30 of 30 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 be made by an affidavit executed by the person providing the 726 notice and filed with the official records of the association. 727 (4)(5) A member's consent to online voting is valid until 728 the member opts out of online voting pursuant to the procedures 729 established by the board of administration pursuant to 730 subsection (3) (4). 731 (5)(6) This section may apply to any matter that requires 732 a vote of the members. 733 Section 8. This act shall take effect July 1, 2024. 734