SB 7044 — Homeowners’ Associations

(3) A community association manager or a community associationPage management4 firm that is authorized by contract to provide community association management services to a homeowners’ association shall do all of the25 following:CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 (Proposed Bill) SPB 7044 580-02472A-24 20247044pb association management firm that is authorized by contract to provide community association management services to a homeowners’ association shall do all of the following:

PageSection 52. of 29 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for SB 7044 595-03349-24 20247044c1 Section 2.

The number of continuing education hours, criteria, and course content must shall be approved by thePage council5 byof rule.25 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 (Proposed Bill) SPB 7044 580-02472A-24 20247044pb the council by rule.

Subsections (4) and (5),(5) paragraphand (f)paragraphs of(a), subsection(d), (6), and paragraph(f) (a) of subsection (7)(6) of section 720.303, Florida Statutes, are amended, and subsection (13) is added to that section, to read:

1.(a) Copies of any plans, specifications, permits, and Pagewarranties 6related ofto 29improvements CODING:constructed on the common areas or other property that the association is obligated to maintain, repair, or replace.

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for SB 7044 595-03349-24 20247044c1 warranties related to improvements constructed on the common areas or other property that the association is obligated to maintain, repair, or replace.

4.(d) A copy of the declaration of covenants and a copy of eachPage amendment6 thereto.of 25 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 (Proposed Bill) SPB 7044 580-02472A-24 20247044pb each amendment thereto.

The e-mail addresses and facsimile numbers provided by members to receive notice by Pageelectronic 7transmission ofmust 29be CODING:removed from association records when the member revokes consent to receive notice by electronic transmission.

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for SB 7044 595-03349-24 20247044c1 electronic transmission must be removed from association records when the member revokes consent to receive notice by electronic transmission.

9.(i) A current copy of all contracts to which the associationPage is7 aof party,25 including,CODING: without limitation, any management agreement, lease, or other contract under which the association has any obligation or responsibility.

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 (Proposed Bill) SPB 7044 580-02472A-24 20247044pb association is a party, including, without limitation, any management agreement, lease, or other contract under which the association has any obligation or responsibility.

Paged.4. 8 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for SB 7044 595-03349-24 20247044c1 d.4.

13.(m)Page All8 affirmativeof acknowledgments25 madeCODING: pursuant to s.

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 (Proposed Bill) SPB 7044 580-02472A-24 20247044pb 13.(m) All affirmative acknowledgments made pursuant to s.

By January 1, 2025, an association with 100 or more parcels shall post a current digital copy of the documents specified in subparagraphparagraph 3.(a) on its website or make such documents available through an application that can be downloaded on a mobile device.

on its website or make such documents available through an application that can be downloaded on a mobile device.

A current copy of the following documents must be posted in digital format on the association’s website or application:

a.

The articles of incorporation of the association and each amendment thereto.

b.

The recorded bylaws of the association and each amendment thereto.

Page 9 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for SB 7044 595-03349-24 20247044c1 c.

The declaration of covenants and a copy of each amendment thereto.

d.

The current rules of the association.

e.

A list of all current executory contracts or documents to which the association is a party or under which the association or the unit owners have an obligation or responsibility and, after bidding for the related materials, equipment, or services has closed, a list of bids received by the association within the past year.

f.

The annual budget required by subsection (6) and any proposed budget to be considered at the annual meeting.

g.

The financial report required by subsection (7) and any monthly income or expense statement to be considered at a meeting.

h.

The association’s current insurance policies.

i.

The certification of each director required by s.

720.3033(1)(a).

j.

All contracts or transactions between the association and any director, officer, corporation, firm, or association that is not an affiliated homeowners’ association or any other entity in which an association director is also a director or officer and financially interested.

k.

Any contract or document regarding a conflict of interest or possible conflict of interest as provided in ss.

468.436(2)(b)6.

and 720.3033(2).

l.

Notice of any meeting of members and the agenda for the meeting, as required by s.

720.306, no later than 14 days before the meeting.

The notice must be posted in plain view on the homepage of the website or application, or on a separate subpage Page 10 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for SB 7044 595-03349-24 20247044c1 of the website or application labeled “Notices” which is conspicuously visible and linked from the homepage.

The association must also post on its website or application any document to be considered and voted on by the owners during the meeting or any document listed on the agenda at least 7 days before the meeting at which the document or the information within the document will be considered.

m.

Notice of any board meeting, the agenda, and any other document required for the meeting as required by subsection (3), which must be posted no later than the date required for notice under subsection (3).

4.

5.4.

The association shall ensure that the information and records described in paragraph (5)(d)(5)(d), which are not allowed to be accessible to parcel ownersowners, are not posted on the association’s website or application.

Notwithstanding the foregoing, the association or its authorized agent is not liable for disclosing information that is protected orPage restricted9 under paragraph (5)(d) unless such disclosure was made with a knowing or intentional disregard of the25 protectedCODING: or restricted nature of such information.

Page 11 of 29 CODING:

Florida Senate - 2024 CS(Proposed forBill) SBSPB 7044 595-03349-24580-02472A-24 20247044c120247044pb (c)or Therestricted associationunder shallparagraph adopt(5)(d) writtenunless rulessuch governingdisclosure thewas methodmade orwith policya byknowing whichor theintentional officialdisregard records of the associationprotected areor torestricted benature retainedof and for how long such recordsinformation. must be retained pursuant to paragraph (a).

(c) The association shall adopt written rules governing the method or policy by which the official records of the association are to be retained and for how long such records must be retained.

An association shall allow a member or his or her authorized representative to use a portable device, including a smartphone, tablet, portable scanner, or any other technology capable of scanning or taking photographs, to make an electronic copy of the official records in lieu of the association’s providing the member or his or her authorized Page 1210 of 2925 CODING:

Florida Senate - 2024 CS(Proposed forBill) SBSPB 7044 595-03349-24580-02472A-24 20247044c120247044pb electronic copy of the official records in lieu of the association’s providing the member or his or her authorized representative with a copy of such records.

(d) Any director or member of the board or association or a community association manager who knowingly, willfully, and repeatedly violates paragraph (a),(a) with the intent of causing harm to the association or one or more of its members, commits a misdemeanor of the second degree, punishable as provided in s.

775.083.775.083, and shall be deemed removed from office and a vacancy declared.

(e) Any person who knowingly andor intentionally defaces or destroys accounting records that are required by this chapter to be maintained during the period infor which such records are required to be maintained, or who knowingly or intentionally fails to create or maintain accounting records that are required to be created or maintained, with the intent of causing harm to the association or one or more of its members, commits a misdemeanor of the first degree, punishable Page 1311 of 2925 CODING:

Florida Senate - 2024 CS(Proposed forBill) SBSPB 7044 595-03349-24580-02472A-24 20247044c120247044pb the association or one or more of its members, commits a misdemeanor of the first degree, punishable as provided in s.

775.083.775.083, and shall be deemed removed from office and a vacancy declared.

775.084.775.084, and shall be deemed removed from office and a vacancy declared.

If the association does not have a photocopy machine available where the records are kept, or if the records requested to be copied exceed 25 pages in length, the association may have copies made byPage an12 outside duplicating service and may charge the actual cost of copying,25 asCODING: supported by the vendor invoice.

The association shall maintain an adequate number of copies of the recorded governing documents, to ensure their availability to members and Page 14 of 29 CODING:

Florida Senate - 2024 CS(Proposed forBill) SBSPB 7044 595-03349-24580-02472A-24 20247044c120247044pb prospectiveby members.an outside duplicating service and may charge the actual cost of copying, as supported by the vendor invoice.

The association shall maintain an adequate number of copies of the recorded governing documents, to ensure their availability to members and prospective members.

For purposes of this subparagraph, the term “personnel records” does not include written employment agreements with an association or management companyPage employee13 orof budgetary25 orCODING: financial records that indicate the compensation paid to an association or management company employee.

5.

Medical records of parcel owners or community residents.

Page 15 of 29 CODING:

Florida Senate - 2024 CS(Proposed forBill) SBSPB 7044 595-03349-24580-02472A-24 20247044c120247044pb 6.company employee or budgetary or financial records that indicate the compensation paid to an association or management company employee.

5.

Medical records of parcel owners or community residents.

6.

720.3085(3)(c)3.Page 14 of 25 CODING:

(h)(d) The association or its authorized agent is not required to provide a prospective purchaser or lienholder with information about the residential subdivision or the association Page 16 of 29 CODING:

Florida Senate - 2024 CS(Proposed forBill) SBSPB 7044 595-03349-24580-02472A-24 20247044c120247044pb other720.3085(3)(c)3. than information or documents required by this chapter to be made available or disclosed.

(h)(d) The association or its authorized agent is not required to provide a prospective purchaser or lienholder with information about the residential subdivision or the association other than information or documents required by this chapter to be made available or disclosed.

(6) BUDGETS.— (f)(a)1. After one or more reserve accounts are established, the membership of the association, upon a majority vote at a meeting at which a quorum is present, may provide for no reserves or less reserves than required by this section.

IfThe aassociation meetingshall ofprepare thean parcelannual unitbudget ownersthat hassets beenout called to determine whether to waive or reduce the fundingannual ofoperating reservesexpenses. and such result is not achieved or a quorum is not present, the reserves as included in the budget go into effect.

AfterThe thebudget turnover,must reflect the developerestimated mayrevenues voteand itsexpenses votingfor interestthat toyear waiveand the estimated surplus or reducedeficit as of the fundingend of reserves.the current year.

AnyThe votebudget takenmust pursuantset toout thisseparately subsectionall tofees waive or reducecharges reservespaid isfor applicableby onlythe toassociation onefor budgetrecreational year.amenities, whether owned by the association, the developer, or another person.

The Page 1715 of 2925 CODING:

Florida Senate - 2024 CS(Proposed forBill) SBSPB 7044 595-03349-24580-02472A-24 20247044c120247044pb (7)association FINANCIALshall REPORTING.—Withinprovide 90each daysmember afterwith thea endcopy of the fiscalannual year,budget or annuallya onwritten thenotice datethat provideda incopy theof bylaws, the associationbudget shallis prepareavailable andupon complete,request orat contractno withcharge ato third party for the preparationmember. and completion of, a financial report for the preceding fiscal year.

WithinThe 21copy daysmust afterbe the final financial report is completed by the association or received from the third party, but not later than 120 days after the end of the fiscal year or other date as provided into the bylaws,member the association shall, within the time limits set forth in subsection (5),(5). provide each member with a copy of the annual financial report or a written notice that a copy of the financial report is available upon request at no charge to the member.

Financial reports shall be prepared as follows:

(a) An association that meets the criteria of this paragraph shall prepare or cause to be prepared a complete set of financial statements in accordance with generally accepted accounting principles as adopted by the Board of Accountancy.

The financial statements shall be based upon the association’s total annual revenues, as follows:

1.

An association with total annual revenues of $150,000 or more, but less than $300,000, shall prepare compiled financial statements.

An association withthat totalhas annual2,500 revenuesmembers ofor atmore leastmust $300,000,use butan lessindependent thancertified $500,000,public shallaccountant to prepare reviewedthe financialassociation’s statements.annual budget.

3.Such association must also retain an attorney to advise the association and its members on procedural matters relating to the annual budget and to foster communications between the board and the members of the association.

AnThe associationindependent withcertified totalpublic annualaccountant revenuesor ofattorney $500,000required orunder morethis shallsubparagraph preparemay auditednot financialbe: statements.

4.a.

AnThe community association withmanager 1,000 or morean parcelsemployee shallof preparethe auditedcommunity financialassociation statements,management notwithstandingfirm theproviding association’scommunity Pageassociation 18management ofservices 29to CODING:the association;

or b.

An officer or a director of the association or an immediate family member of an officer or a director.

(d) An association is deemed to have provided for reserve accounts upon the affirmative approval of a majority of the total voting interests of the association.

Such approval may be obtained by vote of the members at a duly called meeting of the membership or by the written consent of a majority of the total voting interests of the association.

The approval action of the membership must state that reserve accounts shall be provided for in the budget and must designate the components for which the reserve accounts are to be established.

Upon approval by the membership, the board of directors or the independent certified public accountant, if required under paragraph (a), shall Page 16 of 25 CODING:

Florida Senate - 2024 CS(Proposed forBill) SBSPB 7044 595-03349-24580-02472A-24 20247044c120247044pb totalinclude annualthe revenues.required reserve accounts in the budget in the next fiscal year following the approval and each year thereafter.

(d)Once Ifestablished approvedas byprovided ain majoritythis ofsubsection, the votingreserve interestsaccounts presentmust atbe afunded properlyor calledmaintained meetingor ofhave thetheir association,funding anwaived associationin maythe preparemanner orprovided causein toparagraph be(f). prepared:

1.(f) After one or more reserve accounts are established, the membership of the association, upon a majority vote at a meeting at which a quorum is present, may provide for no reserves or less reserves than required by this section.

AIf reporta meeting of cashthe receiptsparcel andunit expendituresowners inhas lieubeen called to determine whether to waive or reduce the funding of areserves compiled,and reviewed,such result is not achieved or auditeda financialquorum statement;is not present, the reserves as included in the budget go into effect.

2.After the turnover, the developer may vote its voting interest to waive or reduce the funding of reserves.

AAny reportvote oftaken cashpursuant receiptsto andthis expendituressubsection orto awaive compiledor financialreduce statementreserves inis lieuapplicable ofonly ato reviewedone orbudget auditedyear. financial statement;

or 3.

A report of cash receipts and expenditures, a compiled financial statement, or a reviewed financial statement in lieu of an audited financial statement.

An association may not prepare a financial statement pursuant to this paragraph for consecutive fiscal years.

812.014.812.014, and shall be deemed removed from office and a vacancy declared.

For the purposes of this subsection, the term “lawful obligation of the association” means an obligation that has been properly preapprovedPage by17 theof board25 andCODING: is reflected in the meeting minutes or the written budget.

Page 19 of 29 CODING:

Florida Senate - 2024 CS(Proposed forBill) SBSPB 7044 595-03349-24580-02472A-24 20247044c120247044pb Sectionpreapproved 4.by the board and is reflected in the meeting minutes or the written budget.

Section 4.

The department-approved educational curriculum specific to newly elected or appointed directors must include training relating to financial literacy and transparency, recordkeeping, levyingPage 18 of fines,25 andCODING: notice and meeting requirements.

5.

In addition to the educational curriculum specific to Page 20 of 29 CODING:

Florida Senate - 2024 CS(Proposed forBill) SBSPB 7044 595-03349-24580-02472A-24 20247044c120247044pb newlylevying electedof orfines, appointedand directors:notice and meeting requirements.

5.

In addition to the educational curriculum specific to newly elected or appointed directors:

A director of an association that has fewer than 2,500 parcelsmembers must complete at least 4 hours of continuing education annually.

A director of an association that has 2,500 parcelsmembers or more must complete at least 8 hours of continuing education annually within 1 year before or 90 days after the date of election or appointment.

(3) An officer, a director, or a manager may not solicit, offer to accept, or accept any thing or service of value for which consideration has not been provided for his or her benefit or for the benefit of a kickback.member of his or her immediate family Page 19 of 25 CODING:

As used in this subsection, the term “kickback” means any thing or service of value for which consideration has not been provided for an officer’s, a director’s, or a manager’s his or her benefit or for the benefit of a member of his or her immediate family from Page 21 of 29 CODING:

Florida Senate - 2024 CS(Proposed forBill) SBSPB 7044 595-03349-24580-02472A-24 20247044c120247044pb from any person providing or proposing to provide goods or services to the association.

An officer, a director, or a manager who knowingly solicits, offers to accept, or accepts a any thing or service of value or kickback for which consideration has not been provided for his or her own benefit or that of his or her immediate family from any person providing or proposing to provide goods or services to the association commits a felony of the third degree, punishable as provided in s.

775.084, and for which consideration has not been provided for his or her own benefit or that of his or her immediate family from any person providing or proposing to provide goods or services to the association is subject to monetary damages under s.

If the board finds that an officer or a director has violated this subsection, the officer or director is deemed removed from office and a vacancy declared board shall immediately remove the officer or director from office.

Destruction of or the refusal to allow inspection or copying of an official record of a homeowners’ association which is accessible to parcel owners within the time periods required byPage general20 law, in furtherance of any25 crime.CODING:

Such act constitutes tampering with physical evidence as provided in s.

Page 22 of 29 CODING:

Florida Senate - 2024 CS(Proposed forBill) SBSPB 7044 595-03349-24580-02472A-24 20247044c120247044pb 918.13.by general law, in furtherance of any crime.

Such act constitutes tampering with physical evidence as provided in s.

918.13.

(4) Each parcel owner is shall be entitled to the rights and privileges set forth in the declaration of covenants or other published guidelines and standards authorized by the declaration of covenants concerning the architectural use of the parcel, and the construction of permitted structures and Page 2321 of 2925 CODING:

Florida Senate - 2024 CS(Proposed forBill) SBSPB 7044 595-03349-24580-02472A-24 20247044c120247044pb declaration of covenants concerning the architectural use of the parcel, and the construction of permitted structures and improvements on the parcel and such rights and privileges may shall not be unreasonably infringed upon or impaired by the association or any architectural, construction improvement, or other such similar committee of the association.

720.3065Page Fraudulent22 votingof activities25 relatingCODING: to association elections;

penalties.— Page 24 of 29 CODING:

Florida Senate - 2024 CS(Proposed forBill) SBSPB 7044 595-03349-24580-02472A-24 20247044c120247044pb (1)720.3065 AFraudulent person who engages in any Each of the following acts of is a fraudulent voting activityactivities relating to association electionselections; commits and constitutes a misdemeanor of the first degree, punishable as provided in s.

penalties.— (1) A person who engages in any Each of the following acts of is a fraudulent voting activity relating to association elections commits and constitutes a misdemeanor of the first degree, punishable as provided in s.

(f)(6) Using or threatening to use, directly or indirectly, force, violence, or intimidation or any tactic of coercion or intimidation to induce or compel a member to vote or refrain Page 2523 of 2925 CODING:

Florida Senate - 2024 CS(Proposed forBill) SBSPB 7044 595-03349-24580-02472A-24 20247044c120247044pb force, violence, or intimidation or any tactic of coercion or intimidation to induce or compel a member to vote or refrain from voting in an election or on a particular ballot measure.

If an association sends out an invoice for assessmentsPage or24 a parcel’s statement of the25 accountCODING: described in s.

720.303(4)(a)10.b.

s.

720.303(4)(j)2., the invoice for Page 26 of 29 CODING:

Florida Senate - 2024 CS(Proposed forBill) SBSPB 7044 595-03349-24580-02472A-24 20247044c120247044pb assessments or thea parcel’s statement of account must be delivered to the parcelaccount ownerdescribed by first-class United States mail or by electronic transmission to the parcel owner’s e-mail address maintained in thes. association’s official records.

720.303(4)(a)10.b.

s.

720.303(4)(j)2., the invoice for assessments or the parcel’s statement of account must be delivered to the parcel owner by first-class United States mail or by electronic transmission to the parcel owner’s e-mail address maintained in the association’s official records.

Section 720.317, Florida Statutes, is amended to read:

720.317 Electronic voting.—The association may conduct elections and other membership votes through an Internet-based online voting system if a member consents, electronically or in writing, to online voting and if the following requirements are Page 27 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for SB 7044 595-03349-24 20247044c1 met:

(1) The association provides each member with:

(a) A method to authenticate the member’s identity to the online voting system.

(b) A method to confirm, at least 14 days before the voting deadline, that the member’s electronic device can successfully communicate with the online voting system.

(c) A method that is consistent with the election and voting procedures in the association’s bylaws.

(2) The association uses an online voting system that is:

(a) Able to authenticate the member’s identity.

(b) Able to authenticate the validity of each electronic vote to ensure that the vote is not altered in transit.

(c) Able to transmit a receipt from the online voting system to each member who casts an electronic vote.

(d) Able to permanently separate any authentication or identifying information from the electronic election ballot, rendering it impossible to tie an election ballot to a specific member.

This paragraph only applies if the association’s bylaws provide for secret ballots for the election of directors.

(e) Able to store and keep electronic ballots accessible to election officials for recount, inspection, and review purposes.

(3) A member voting electronically pursuant to this section shall be counted as being in attendance at the meeting for purposes of determining a quorum.

(4) This section applies to an association that provides for and authorizes an online voting system pursuant to this section by a board resolution.

The board resolution must provide that members receive notice of the opportunity to vote through Page 28 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for SB 7044 595-03349-24 20247044c1 an online voting system, must establish reasonable procedures and deadlines for members to consent, electronically or in writing, to online voting, and must establish reasonable procedures and deadlines for members to opt out of online voting after giving consent.

Written notice of a meeting at which the board resolution regarding online voting will be considered must be mailed, delivered, or electronically transmitted to the unit owners and posted conspicuously on the condominium property or association property at least 14 days before the meeting.

Evidence of compliance with the 14-day notice requirement must be made by an affidavit executed by the person providing the notice and filed with the official records of the association.

(5) A member’s consent to online voting is valid until the member opts out of online voting pursuant to the procedures established by the board of administration pursuant to subsection (4).

(6) This section may apply to any matter that requires a vote of the members.

Section 9.

Page 2925 of 2925 CODING: