Florida Senate - 2022 SB 1942 By Senator Pizzo 38-00161-22 20221942__ Page 1 of 48 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1

An act relating to condominium and cooperative 2 associations; amending s. 553.73, F.S.; requiring that 3 the Florida Building Code require enhanced 4 waterproofing measures for certain elements of 5 community associations; defining the term “enhanced 6 waterproofing measures”; amending ss. 718.112 and 7 719.106, F.S.; prohibiting a developer or condominium 8 or cooperative association, respectively, from waiving 9 or reducing the amount of its reserve funds; requiring 10 elected or appointed board members to complete an 11 educational curriculum within a specified time and 12 submit a certificate of completion to the secretary of 13 the association; requiring the secretary to maintain 14 the certificate for a certain length of time; 15 requiring the association to maintain a separate 16 reserve account for items recognized in the Life 17 Safety Code; prohibiting reserve funds for life safety 18 requirements to be comingled with other reserve funds; 19 deleting an exception; requiring the board to hire a 20 licensed engineer or engineering firm to conduct a n 21 inspection and prepare a reserve study for a specified 22 purpose at certain times; requiring the board of 23 directors to provide a copy of the reserve study and a 24 certain report or financial statement to the local 25 authority having jurisdiction within a specified time; 26 deleting an authorization for a developer to waive or 27 reduce reserves under certain conditions; requiring 28 construction and renovation of a residential 29

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 2 of 48 CODING: Words stricken are deletions; words underlined are additions. condominium building or residential cooperative 30 building to comply with the Florida Building Code; 31 requiring the board to hire a licensed structural 32 engineer to conduct an annual inspection of 33 association property; requiring the local authority 34 having jurisdiction to issue a specified notice once a 35 residential condominium building or residential 36 cooperative building reaches a certain age; requiring 37 the board to hire a licensed architect or engineer to 38 conduct a structural and electrical recertification 39 inspection of the condominium or cooperative building 40 within a specified time after receipt of such notice; 41 requiring the licensed architect or engineer to 42 analyze certain parts of the condominium or 43 cooperative building for the recertification 44 inspection; requiring the licensed architect or 45 engineer to certify a report explaining what type of 46 inspection was completed and any remedial actions 47 needed; requiring the board to provide a copy of the 48 report to the local authority having jurisdiction 49 within a specified time; requiring any repairs or 50 modification noted in the report to be completed 51 within a specified time; requiring the board to 52 provide a completion report to the local authority 53 having jurisdiction within a specified time after any 54 remedial action is completed; authorizing the local 55 authority having jurisdiction to order a mandatory 56 evacuation of the residential condominium or 57 residential cooperative under certain circumstances; 58

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 3 of 48 CODING: Words stricken are deletions; words underlined are additions. providing remedies and civil penalties; requiring a 59 recertification inspection at certain intervals 60 thereafter; conforming provisions to changes made by 61 the act; amending ss. 718.503 and 719.503, F.S.; 62 revising the documents that must be delivered to a 63 prospective buyer or lessee of a residential unit; 64 revising the clause that must be included in a 65 contract for the resale of a residential unit; 66 amending s. 718.618, F.S.; conforming provisions to 67 changes made by the act; amending s. 718.706, F.S.; 68 prohibiting a bulk assignee on behalf of an 69 association from waiving or reducing the amount of 70 reserve funds; amending s. 719.103, F.S.; revising 71

definitions of the terms “board of administration” and 72 “common areas”; providing an effective date. 73 74 Be It Enacted by the Legislature of the State of Florida: 75 76

Section 1. Present subsection (20) of

section 553.73, 77 Florida Statutes, is redesignated as subsection (21), and a new 78 subsection (20) is added to that section, to read: 79 553.73 Florida Building Code.— 80

(20) The Florida Building Code must require enhanced 81 waterproofing measures for all construction and renovations of 82 parking garages and swimming pool decks serving a condominium 83 association, cooperative association, or homeowners’ 84 association. For purposes of this subsection, the term “enhanced 85 waterproofing measures” means that all waterproofing measures 86 taken must last for at least 20 years. 87

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 4 of 48 CODING: Words stricken are deletions; words underlined are additions.

Section 2. Paragraphs (b), (d), and (

f) of subsection (2) 88 of

section 718.112, Florida Statutes, are amended, and paragraph 89 (

p) is added to subsection (2) of that section, to read: 90 718.112 Bylaws.— 91

(2) REQUIRED PROVISIONS.—The bylaws shall provide for the 92 following and, if they do not do so, shall be deemed to include 93 the following: 94 (

b) Quorum; voting requirements; proxies.— 95 1. Unless a lower number is provided in the bylaws, the 96 percentage of voting interests required to constitute a quorum 97 at a meeting of the members is a majority of the v oting 98 interests. Unless otherwise provided in this

chapter or in the 99 declaration, articles of incorporation, or bylaws, and except as 100 provided in subparagraph (d)4., decisions must shall be made by 101 a majority of the voting interests represented at a meetin g at 102 which a quorum is present. 103 2. Except as specifically otherwise provided herein, unit 104 owners in a residential condominium may not vote by general 105 proxy, but may vote by limited proxies substantially conforming 106 to a limited proxy form adopted by the division.

A voting 107 interest or consent right allocated to a unit owned by the 108 association may not be exercised or considered for any purpose, 109 whether for a quorum, an election, or otherwise. Limited proxies 110 and general proxies may be used to establish a quoru m.

Limited 111 proxies must shall be used for votes taken to waive or reduce 112 reserves in accordance with subparagraph (f)2.; for votes taken 113 to waive the financial reporting requirements of s. 718.111(13); 114 for votes taken to amend the declaration pursuant to s . 718.110; 115 for votes taken to amend the articles of incorporation or bylaws 116

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 5 of 48 CODING: Words stricken are deletions; words underlined are additions. pursuant to this section; and for any other matter for which 117 this

chapter requires or permits a vote of the unit owners. 118 Except as provided in paragraph (d), a proxy, whether limited or 119 general, may not be used in the election of board members in a 120 residential condominium. General proxies may be used for other 121 matters for which limited proxies are not required, and may be 122 used in voting for nonsubstantive changes to items for which a 123 limited proxy is required and given. Notwithstanding this 124 subparagraph, unit owners may vote in person at unit owner 125 meetings.

This subparagraph does not limit the use of general 126 proxies or require the use of limited proxies for any agenda 127 item or election at any meeting of a timeshare condominium 128 association or a nonresidential condominium association. 129 3. A proxy given is effective only for the specific meeting 130 for which originally given and any lawfully adjourned meetings 131 thereof. A proxy is not valid longer than 90 days after the date 132 of the first meeting for which it was given. Every Each proxy is 133 revocable at any time at the pleasure of the unit owner 134 executing it. 135 4.

A member of the board of administration or a committee 136 may submit in writing his or her agreement or disagreement with 137 any action taken at a meeting that the member did not attend. 138 This agreement or disagreement may not be used as a vote for or 139 against the action taken or to create a quorum. 140 5. A board or committee member’s participation in a meeting 141 via telephone, real-time videoconferencing, or similar real-time 142 electronic or video communication counts toward a quorum, and 143 such member may vote as if physically present.

A speaker must be 144 used so that the conversation of such members may b e heard by 145

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 6 of 48 CODING: Words stricken are deletions; words underlined are additions. the board or committee members attending in person as well as by 146 any unit owners present at a meeting. 147 (

d) Unit owner meetings.— 148 1. An annual meeting of the unit owners must be held at the 149 location provided in the association bylaws and, if the bylaws 150 are silent as to the location, the meeting must be held within 151 45 miles of the condominium property. However, such distance 152 requirement does not apply to an association governing a 153 timeshare condominium. 154 2. Unless the bylaws provide otherwise, a vacancy on the 155 board caused by the expiration of a director’s term must be 156 filled by electing a new board member, and the election must be 157 by secret ballot.

An election is not required if the number of 158 vacancies equals or exceeds the number of candidates. For 159 purposes of this paragraph, the term “candidate” means an 160 eligible person who has timely submitted the written notice, as 161 described in sub-subparagraph 4.a., of his or her intention to 162 become a candidate.

Except in a timeshare or nonresidential 163 condominium, or if the staggered term of a board member does not 164 expire until a later annual meeting, or if all members’ terms 165 would otherwise expire but there are no candidates, the terms of 166 all board members expire at the annual meeting, and such members 167 may stand for reelection unless prohibited by the bylaws. Board 168 members may serve terms longer than 1 year if permitted by the 169 bylaws or articles of incorporation.

A board member may not 170 serve more than 8 consecutive years unless approved by an 171 affirmative vote of unit owners representing two-thirds of all 172 votes cast in the election or unless there are not enough 173 eligible candidates to fill the vacancies on the board at the 174

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 7 of 48 CODING: Words stricken are deletions; words underlined are additions. time of the vacancy. Only board service that occurs on or after 175 July 1, 2018, may be used when calculating a board member’s term 176 limit. If the number of board members whose terms expire at the 177 annual meeting equals or exceeds the number of candidates, the 178 candidates become members of the board effective upon the 179 adjournment of the annual meeting.

Unless the bylaws provide 180 otherwise, any remaining vacancies shall be filled by the 181 affirmative vote of the majority of the directors making up the 182 newly constituted board even if the directors constitute less 183 than a quorum or there is only one director.

In a residential 184 condominium association of more than 10 units or in a 185 residential condominium association that does not include 186 timeshare units or timeshare interests, co-owners of a unit may 187 not serve as members of the board of directors at the same time 188 unless they own more than one unit or unless there are not 189 enough eligible candidates to fill the vacancies on the board at 190 the time of the vacancy.

A unit owner in a residential 191 condominium desiring to be a candidate for board membership must 192 comply with sub-subparagraph 4.a. and must be eligible to be a 193 candidate to serve on the board of directors at the time of the 194 deadline for submitting a notice of intent to run in order to 195 have his or her name listed as a proper candidate on the ballot 196 or to serve on the board.

A person who has been suspended or 197 removed by the division under this chapter, or who is delinquent 198 in the payment of any assessment due to the association, is not 199 eligible to be a candidate for board membership and may not be 200 listed on the ballot. For purposes of this paragraph, a person 201 is delinquent if a payment is not made by the due date as 202 specifically identified in the declaration of condominium, 203

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 8 of 48 CODING: Words stricken are deletions; words underlined are additions. bylaws, or articles of incorporation. If a due date is not 204 specifically identified in the declaration of condominium, 205 bylaws, or articles of incorporation, the due date is the first 206 day of the assessment period.

A person who has been convicted of 207 any felony in this state or in a United States District or 208 Territorial Court, or who has been convicted of any offense in 209 another jurisdiction which would be considered a felony if 210 committed in this state, is not eligible for board membership 211 unless such felon’s civil rights have been restored for at least 212 5 years before as of the date such person seeks election to the 213 board.

The validity of an action by the board is not affected if 214 it is later determined that a board member is ineligible for 215 board membership due to having been convicted of a felony. This 216 subparagraph does not limit the term of a member of t he board of 217 a nonresidential or timeshare condominium. 218 3. The bylaws must provide the method of calling meetings 219 of unit owners, including annual meetings.

Written notice of an 220 annual meeting must include an agenda; be mailed, hand 221 delivered, or electronically transmitted to each unit owner at 222 least 14 days before the annual meeting; and be posted in a 223 conspicuous place on the condominium property or association 224 property at least 14 continuous days before the annual meeting. 225 Written notice of a meeting other than an annual meeting must 226 include an agenda; be mailed, hand delivered, or electronically 227 transmitted to each unit owner; and be posted in a conspicuous 228 place on the condominium property or association property within 229 the timeframe specified in the bylaws.

If the bylaws do not 230 specify a timeframe for written notice of a meeting other than 231 an annual meeting, notice must be provided at least 14 232

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 9 of 48 CODING: Words stricken are deletions; words underlined are additions. continuous days before the meeting. Upon notice to the unit 233 owners, the board shall, by duly adopted rule, desig nate a 234 specific location on the condominium property or association 235 property where all notices of unit owner meetings must be 236 posted. This requirement does not apply if there is no 237 condominium property for posting notices.

In lieu of, or in 238 addition to, the physical posting of meeting notices, the 239 association may, by reasonable rule, adopt a procedure for 240 conspicuously posting and repeatedly broadcasting the notice and 241 the agenda on a closed-circuit cable television system serving 242 the condominium association. However, if broadcast notice is 243 used in lieu of a notice posted physically on the condominium 244 property, the notice and agenda must be broadcast at least four 245 times every broadcast hour of each day that a posted notice is 246 otherwise required under this section.

If broadcast notice is 247 provided, the notice and agenda must be broadcast in a manner 248 and for a sufficient continuous length of time so as to allow an 249 average reader to observe the notice and read and comprehend the 250 entire content of the notice and the agenda.

In addition to any 251 of the authorized means of providing notice of a meeting of the 252 board, the association may, by rule, adopt a procedure for 253 conspicuously posting the meeting notice and the agenda on a 254 website serving the condominium association for at least the 255 minimum period of time for which a notice of a meeting is also 256 required to be physically posted on the condominium property. 257 Any rule adopted shall, in addition to other matters, include a 258 requirement that the association send an electro nic notice in 259 the same manner as a notice for a meeting of the members, which 260 must include a hyperlink to the website where the notice is 261

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 10 of 48 CODING: Words stricken are deletions; words underlined are additions. posted, to unit owners whose e-mail addresses are included in 262 the association’s official records. Unless a unit owner waives 263 in writing the right to receive notice of the annual meeting, 264 such notice must be hand delivered, mailed, or electronically 265 transmitted to each unit owner.

Notice for meetings and notice 266 for all other purposes must be mailed to each unit owner at th e 267 address last furnished to the association by the unit owner, or 268 hand delivered to each unit owner. However, if a unit is owned 269 by more than one person, the association must provide notice to 270 the address that the developer identifies for that purpose and 271 thereafter as one or more of the owners of the unit advise the 272 association in writing, or if no address is given or the owners 273 of the unit do not agree, to the address provided on the deed of 274 record.

An officer of the association, or the manager or other 275 person providing notice of the association meeting, must provide 276 an affidavit or United States Postal Service certificate of 277 mailing, to be included in the official records of the 278 association affirming that the notice was mailed or hand 279 delivered in accordance with this provision. 280 4. The members of the board of a residential condominium 281 shall be elected by written ballot or voting machine.

Proxies 282 may not be used in electing the board in general elections or 283 elections to fill vacancies caused by recall, resi gnation, or 284 otherwise, unless otherwise provided in this chapter. This 285 subparagraph does not apply to an association governing a 286 timeshare condominium. 287 a. At least 60 days before a scheduled election, the 288 association shall mail, deliver, or electronically transmit, by 289 separate association mailing or included in another association 290

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 11 of 48 CODING: Words stricken are deletions; words underlined are additions. mailing, delivery, or transmission, including regularly 291 published newsletters, to each unit owner entitled to a vote, a 292 first notice of the date of the election.

A unit owner or o ther 293 eligible person desiring to be a candidate for the board must 294 give written notice of his or her intent to be a candidate to 295 the association at least 40 days before a scheduled election. 296 Together with the written notice and agenda as set forth in 297 subparagraph 3., the association shall mail, deliver, or 298 electronically transmit a second notice of the election to all 299 unit owners entitled to vote, together with a ballot that lists 300 all candidates not less than 14 days or more than 34 days before 301 the date of the election.

Upon request of a candidate, an 302 information sheet, no larger than 8 1/2 inches by 11 inches, 303 which must be furnished by the candidate at least 35 days before 304 the election, must be included with the mailing, delivery, or 305 transmission of the ballot, with the costs of mailing, delivery, 306 or electronic transmission and copying to be borne by the 307 association. The association is not liable for the contents of 308 the information sheets prepared by the candidates. In order to 309 reduce costs, the association may print or duplicate the 310 information sheets on both sides of the paper.

The division 311 shall by rule establish voting procedures consistent with this 312 sub-subparagraph, including rules establishing procedures for 313 giving notice by electronic transmission and rules providing for 314 the secrecy of ballots. Elections shall be decided by a 315 plurality of ballots cast. There is no quorum requirement; 316 however, at least 20 percent of the eligible voters must cast a 317 ballot in order to have a valid election. A unit owner may not 318 authorize any other person to vote his or her ballot, and any 319

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 12 of 48 CODING: Words stricken are deletions; words underlined are additions. ballots improperly cast are invalid. A unit owner who violates 320 this provision may be fined by the association in accordance 321 with s. 718.303. A unit owner who needs assistance in casting 322 the ballot for the reasons stated in s. 101.051 may obtain such 323 assistance. The regular election must occur on the date of the 324 annual meeting.

Notwithstanding this sub-subparagraph, an 325 election is not required unless more candidates file notices of 326 intent to run or are nominated than board vacancies exist. 327 b.

Within 90 days after being elected or appointed to the 328 board of an association of a residential condominium, a each 329 newly elected or appointed director shall certify in writing to 330 the secretary of the association that he or she has read the 331 association’s declaration of condominium, articles of 332 incorporation, bylaws, and current written policies; that he or 333 she will work to uphold such documents and policies to the best 334 of his or her ability; and that he or she will faithfully 335 discharge his or her fiduciary responsibility to the 336 association’s members.

In addition to lieu of this written 337 certification, within 90 days after being elected or appointed 338 to the board, the newly elected or appointed director must may 339 submit a certificate of having satisfactorily completed the 340 educational curriculum administered by a division -approved 341 condominium education provider within 1 year before or 90 days 342 after the date of election or appointment. The written 343 certification and or educational certificate is valid and does 344 not have to be resubmitted as long as the director serves on the 345 board without interruption.

A director of an associatio n of a 346 residential condominium who fails to timely file the written 347 certification and or educational certificate is suspended from 348

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 13 of 48 CODING: Words stricken are deletions; words underlined are additions. service on the board until he or she complies with this sub -349 subparagraph. The board may temporarily fill the vacancy during 350 the period of suspension. The secretary of shall cause the 351 association shall to retain a director’s written certification 352 and or educational certificate for inspection by the members for 353 5 years after a director’s election or the duration of the 354 director’s uninterrupted tenure, whichever is longer.

Failure to 355 have such written certification and or educational certificate 356 on file does not affect the validity of any board action. 357 c. Any challenge to the election process must be commenced 358 within 60 days after the election results are announced. 359 5. Any approval by unit owners called for by this

chapter 360 or the applicable declaration or bylaws, including, but not 361 limited to, the approval requirement in s. 718.111(8), must be 362 made at a duly noticed meeting of unit owners and is subject to 363 all requirements of this

chapter or the applicable condominium 364 documents relating to unit owner decisionmaking, except that 365 unit owners may take action by written agreement, without 366 meetings, on matters for which action by written a greement 367 without meetings is expressly allowed by the applicable bylaws 368 or declaration or any law that provides for such action. 369 6.

Unit owners may waive notice of specific meetings if 370 allowed by the applicable bylaws or declaration or any law. 371 Notice of meetings of the board of administration, unit owner 372 meetings, except unit owner meetings called to recall board 373 members under paragraph (j), and committee meetings may be given 374 by electronic transmission to unit owners who consent to receive 375 notice by electronic transmission. A unit owner who consents to 376 receiving notices by electronic transmission is solely 377

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 14 of 48 CODING: Words stricken are deletions; words underlined are additions. responsible for removing or bypassing filters that block receipt 378 of mass e-mails sent to members on behalf of the association in 379 the course of giving electronic notices. 380 7. Unit owners have the right to participate in meetings of 381 unit owners with reference to all designated agenda items. 382 However, the association may adopt reasonable rules governing 383 the frequency, duration, and manner of unit owner partici pation. 384 8.

A unit owner may tape record or videotape a meeting of 385 the unit owners subject to reasonable rules adopted by the 386 division. 387 9. Unless otherwise provided in the bylaws, any vacancy 388 occurring on the board before the expiration of a term may be 389 filled by the affirmative vote of the majority of the remaining 390 directors, even if the remaining directors constitute less than 391 a quorum, or by the sole remaining director.

In the alternative, 392 a board may hold an election to fill the vacancy, in which case 393 the election procedures must conform to sub-subparagraph 4.a. 394 unless the association governs 10 units or fewer and has opted 395 out of the statutory election process, in which case the bylaws 396 of the association control. Unless otherwise provided in the 397 bylaws, a board member appointed or elected under this

section 398 shall fill the vacancy for the unexpired term of the seat being 399 filled. Filling vacancies created by recall is governed by 400 paragraph (

j) and rules adopted by the division. 401 10. This

chapter does not limit the use of general or 402 limited proxies, require the use of general or limited proxies, 403 or require the use of a written ballot or voting machine for any 404 agenda item or election at any meeting of a timeshare 405 condominium association or nonresidential condom inium 406

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 15 of 48 CODING: Words stricken are deletions; words underlined are additions. association. 407 408 Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an 409 association of 10 or fewer units may, by affirmative vote of a 410 majority of the total voting interests, provide for different 411 voting and election procedures in its bylaws, which may be by a 412 proxy specifically delineating the different voting and election 413 procedures. The different voting and election procedures may 414 provide for elections to be conducted by limited or general 415 proxy. 416 (

f) Annual budget.— 417 1. The proposed annual budget of estimated revenues and 418 expenses must be detailed and must show the amounts budgeted by 419 accounts and expense classifications, including, at a minimum, 420 any applicable expenses listed in s. 718.504(21). The board must 421 shall adopt the annual budget at least 14 days before prior to 422 the start of the association’s fiscal year. If In the event that 423 the board fails to timely adopt the annual budget a second time, 424 it is shall be deemed a minor violation and the prior year’s 425 budget shall continue in effect until a new budget is adopted.

A 426 multicondominium association must shall adopt a separate budget 427 of common expenses for each condominium the association operates 428 and must shall adopt a separate budget of common expenses for 429 the association. In addition, if the association maintains 430 limited common elements with the cost to be shared only by those 431 entitled to use the limited common elements as provided for in 432 s. 718.113(1), the budget or a

schedule attached to it must show 433 the amount budgeted for this maintenance. If, after turnover of 434 control of the association to the unit owners, any of the 435

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 16 of 48 CODING: Words stricken are deletions; words underlined are additions. expenses listed in s. 718.504(21) are not applicable, they need 436 not be listed. 437 2.a. In addition to annual operating expenses, the budget 438 must include reserve accounts for capital expenditures and 439 deferred maintenance.

These accounts must include, but are not 440 limited to, roof replacement, building painting, and pavement 441 resurfacing, regardless of the amount of deferred maintenance 442 expense or replacement cost, and any other item that has a 443 deferred maintenance expense or replacement cost that exceeds 444 $10,000. The amount to be reserved must be computed using a 445 formula based upon estimated remaining useful life and estimated 446 replacement cost or deferred maintenance expense of each reserve 447 item.

The association may adjust replacement reserve assessments 448 annually to take into account any changes in estimates or 449 extension of the useful life of a reserve item caused by 450 deferred maintenance. The association must maintain a separate 451 reserve account exclusively for the maintenance and replacement 452 of items recognized in the Life Safety Code. Life safety 453 requirements include, but are not limited to, waterproofing 454 measures; roof and balcony railing maintenance; and fire, 455 mechanical, electrical, and structural standards.

Reserve funds 456 for other capital expenditures and deferred maintenance may not 457 be comingled with the reserve funds for life safety expenditures 458 and maintenance. This subsection does not apply to an adopted 459 budget in which the members of an association have determined, 460 by a majority vote at a duly called meeting of the association, 461 to provide no reserves or less reserves than required by this 462 subsection. 463 b. Every 2 years, the board must hire a licensed engineer 464

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 17 of 48 CODING: Words stricken are deletions; words underlined are additions. or engineering firm qualified to do business in the state to 465 conduct a reserve study of the property in order to ensure 466 adequate funding of the association’s reserve accounts.

The 467 engineer or engineering firm must conduct a reasonably competent 468 and diligent visual inspection of the assessable areas of the 469 major components that the association is obligated to repair, 470 replace, restore, or maintain and provide an estimate of the 471 components’ remaining useful life.

The board must provide a copy 472 of the reserve study, along with a report or financial statement 473 indicating the amount of money that is currently in the 474 reserves, to the local authority having jurisdiction within 7 475 days after the board receives the completed report from the 476 engineer or engineering firm.

Before turnover of control of an 477 association by a developer to unit owners other than a developer 478 pursuant to s. 718.301, the developer may vote the voting 479 interests allocated to its units to waive the reserves or reduce 480 the funding of reserves through the period expiring at the end 481 of the second fiscal year after the fiscal year in which the 482 certificate of a surveyor and mapper is recorded pursuant to s. 483 718.104(4)(

e) or an instrument that transfers title to a unit in 484 the condominium which is not accompanied by a recorded 485 assignment of developer rights in favor of the grantee of such 486 unit is recorded, whichever occurs first, after which time 487 reserves may be waived or reduced only upon the vote of a 488 majority of all nondeveloper voting interests voting in person 489 or by limited proxy at a duly called meeting of the association. 490 If a meeting of the unit owners has been called to determine 491 whether to waive or reduce the funding of reserves and no such 492 result is achieved or a quorum is not attained, the reserves 493

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 18 of 48 CODING: Words stricken are deletions; words underlined are additions. included in the budget shall go into effect. After the turnover, 494 the developer may vote its voting interest to waive or reduce 495 the funding of reserves. 496 3. Reserve funds and any interest accruing thereon must 497 shall remain in the reserve account or accounts, and may be used 498 only for authorized reserve expenditures unless their use for 499 other purposes is approved in advance by a majority vote at a 500 duly called meeting of the association.

Before turnover of 501 control of an association by a developer to unit owners other 502 than the developer pursuant to s. 718.301, the developer-503 controlled association may not vote to use reserves for purposes 504 other than those for which they were intended without the 505 approval of a majority of all nondeveloper voting interests, 506 voting in person or by limited proxy at a duly called meeting of 507 the association. 508 4.

The only voting interests that are eligible to vote on 509 questions that involve waiving or reducing the funding of 510 reserves, or using existing reserve funds for purposes other 511 than purposes for which the reserves were intended, are the 512 voting interests of the units subject to assessment to fund the 513 reserves in question.

Proxy questions relating to waiving or 514 reducing the funding of reserves or using existing reserve funds 515 for purposes other than purposes for which the reserves were 516 intended must contain the following statement in capitalized, 517 bold letters in a font size larger than any other used on the 518 face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN 519 PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY 520 RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED 521 SPECIAL ASSESSMENTS REGARDING THOSE ITEMS. 522

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 19 of 48 CODING: Words stricken are deletions; words underlined are additions. (

p) Building construction, renovations, and inspections. —523 The requirements for the construction and renovation of a 524 residential condominium building must comply with

chapter 553 525 which pertains to building construction standards, including 526 plumbing, electrical code, glass, manufactured buildings, 527 accessibility for persons with disabilities, and the state 528 minimum building code. An association must ensure compliance 529 with the Florida Building Code. 530 1. The board must hire a licensed structural engineer 531 authorized to practice in the state to conduct an annual 532 inspection of the association property and its buildings to 533 ensure the structural stability of the property and buildings. 534 2.

Upon a determination by the local authority having 535 jurisdiction that a residential condominium building is 20 years 536 of age or older, the local authority having jurisdiction shall 537 issue a notice of required recertification inspection to the 538 association. 539 3.

The board must hire a licensed architect or engineer 540 authorized to practice in the state within 90 days after receipt 541 of the notice of required recertification inspection to conduct 542 an inspection to ensure the building’s structural and electrical 543 systems are still safe and to provide a recertification report 544 to the local authority having jurisdiction. A licensed architect 545 or engineer may only undertake assignments in which he or she is 546 qualified by training and experience in the specific technical 547 field involved in the inspection. 548 4.

A licensed architect or engineer shall conduct a 549 structural recertification inspection of the building by 550 analyzing, at a minimum, the: 551

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 20 of 48 CODING: Words stricken are deletions; words underlined are additions. a. Foundation. 552 b. Floor and roofing systems. 553 c. Masonry bearing walls. 554 d. Steel framing systems. 555 e. Concrete framing systems. 556 f. Windows. 557 g. Wood framing. 558 h. Loading. 559 5. A licensed architect or engineer shall conduct an 560 electrical recertification inspection of the building by 561 analyzing, at a minimum, the: 562 a. Electric services. 563 b. Branch circuits. 564 c. Conduit raceways. 565 d. Gutters. 566 e. Electrical panels. 567 f.

Grounding of equipment. 568 g. Service conductor and cables. 569 h. Types of wiring methods. 570 i. Feeder conductors. 571 j. Parking illumination. 572 6. The licensed architect or engineer must indicate the 573 manner and type of inspection conducted that forms the basis of 574 the recertification report and must describe any matters 575 identified as needing remedial action. The report must bear the 576 seal and signature of the certifying architect or engineer.

The 577 board must provide a copy of the report to the local authority 578 having jurisdiction within 7 days after the board receives the 579 completed report. 580

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 21 of 48 CODING: Words stricken are deletions; words underlined are additions. 7.a. If the recertification report indicates that repairs 581 or modifications are necessary, the board has 6 months after 582 receipt of the recertification report in which to complete the 583 indicated repairs or modifications, which must be executed in 584 conformance with the Florida Building Code.

Within 7 days after 585 completion of the repairs or modifications, the board shall 586 provide a completion report, under seal and signature of a 587 licensed architect or engineer, to the local authority having 588 jurisdiction affirming that the remedial action has been 589 completed. 590 b.

If the local authority having jurisdiction has reason to 591 believe that the matters indicated in the recertification report 592 as needing remedial action present a serious threat to the 593 public health, safety, or welfare, or are irreparable or 594 irreversible, it may order a mandatory evacuation of the 595 residential condominium. 596 8.

The local authority having jurisdiction shall issue a 597 notice of violation if the board does not timely submit the 598 completion report required under sub-subparagraph 7.a. and must 599 establish a reasonable time period within which the board must 600 correct the violation. If the board does not comply with the 601 notice of violation within the timeframe specified, the local 602 authority having jurisdiction shall issue the association a 603 citation resulting in a fine not to exceed $500.

Howeve r, the 604 local authority having jurisdiction may specify by ordinance a 605 fine in an amount exceeding $500, but not exceeding $2,000 a 606 day. The local authority having jurisdiction may issue a 607 citation for each day that the association is in violation of 608 this paragraph. 609

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 22 of 48 CODING: Words stricken are deletions; words underlined are additions. 9. Subsequent recertification inspections must be completed 610 every 5 years thereafter. 611

Section 3. Paragraph (

b) of subsection (1) and paragraphs 612 (

a) and (

c) of subsection (2) of

section 718.503, Florida 613 Statutes, are amended to read: 614 718.503 Developer disclosure prior to sale; nondeveloper 615 unit owner disclosure prior to sale; voidability. — 616

(1) DEVELOPER DISCLOSURE.— 617 (

b) Copies of documents to be furnished to prospective 618 buyer or lessee.—Until such time as the developer has furnished 619 the documents listed below to a person who has entered into a 620 contract to purchase a residential unit or lease it for more 621 than 5 years, the contract may be voided by that person, 622 entitling the person to a refund of any deposit together with 623 interest thereon as provided in s. 718.202.

The contract may be 624 terminated by written notice from the proposed buyer or lessee 625 delivered to the developer within 15 days after the buyer or 626 lessee receives all of the documents required by this section. 627 The developer may not close for 15 days after following the 628 execution of the agreement and delivery of the documents to the 629 buyer as evidenced by a signed receipt for documents unless the 630 buyer is informed in the 15-day voidability period and agrees to 631 close before prior to the expiration of the 15 days.

The 632 developer shall retain in his or her records a separate 633 agreement signed by the buyer as proof of the buyer’s agreement 634 to close before prior to the expiration of the said voidability 635 period. The developer must retain such Said proof shall be 636 retained for a period of 5 years after the date of the closing 637 of the transaction. The documents to be delivered to the 638

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 23 of 48 CODING: Words stricken are deletions; words underlined are additions. prospective buyer are the prospectus or disclosure statement 639 with all exhibits, if the development is subject to the 640 provisions of s. 718.504, or, if not, then copies of the 641 following which are applicable: 642 1.

The question and answer sheet described in s. 718.504, 643 and declaration of condominium, or the proposed declaration if 644 the declaration has not been recorded, which shall include the 645 certificate of a surveyor approximately representing the 646 locations required by s. 718.104. 647 2. The documents creating the association. 648 3. The bylaws. 649 4. The ground lease or other underlying lease of the 650 condominium. 651 5.

The management contract, maintenance contract, and other 652 contracts for management of the association and operation of the 653 condominium and facilities used by the unit owners having a 654 service term in excess of 1 year, and any management contracts 655 that are renewable. 656 6. The estimated operating budget for the condominium and a 657

schedule of expenses for each type of unit, including fees 658 assessed pursuant to s. 718.113(1) for the maintenance of 659 limited common elements where such costs are shared only by 660 those entitled to use the limited common elements. 661 7. The lease of recreational and other facilities that will 662 be used only by unit owners of the subject condominium. 663 8. The lease of recreational and other common facilities 664 that will be used by unit owners in common with unit owne rs of 665 other condominiums. 666 9. The form of unit lease if the offer is of a leasehold. 667

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 24 of 48 CODING: Words stricken are deletions; words underlined are additions. 10. Any declaration of servitude of properties serving the 668 condominium but not owned by unit owners or leased to them or 669 the association. 670 11. If the development is to be built in phases or if the 671 association is to manage more than one condominium, a 672 description of the plan of phase development or the arrangements 673 for the association to manage two or more condominiums. 674 12.

If the condominium is a conversion of existing 675 improvements, the statements and disclosure required by s. 676 718.616. 677 13. The form of agreement for sale or lease of units. 678 14. A copy of the floor plan of the unit and the plot plan 679 showing the location of the residential buildings and the 680 recreation and other common areas. 681 15. A copy of all covenants and restrictions that which 682 will affect the use of the property and which are not contained 683 in the foregoing. 684 16.

If the developer is required by state or local 685 authorities to obtain acceptance or approval of any doc k or 686 marina facilities intended to serve the condominium, a copy of 687 any such acceptance or approval acquired by the time of filing 688 with the division under s. 718.502(1), or a statement that such 689 acceptance or approval has not been acquired or received. 690 17. Evidence demonstrating that the developer has an 691 ownership, leasehold, or contractual interest in the land upon 692 which the condominium is to be developed. 693 18.

A copy of the reserve study required under s. 694 718.112(2)(f), along with a report or financial sta tement 695 indicating the status of the reserves. 696

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 25 of 48 CODING: Words stricken are deletions; words underlined are additions. 19. A copy of the recertification report required under s. 697 718.112(2)(p). 698

(2) NONDEVELOPER DISCLOSURE.— 699 (

a) Each unit owner who is not a developer as defined by 700 this

chapter must shall comply with the provisions of this 701 subsection before prior to the sale of his or her unit.

Each 702 prospective purchaser who has entered into a contract for the 703 purchase of a condominium unit is entitled, at the seller’s 704 expense, to a current copy of the declaration of condominium, 705 articles of incorporation of the association, bylaws and rules 706 of the association, financial information required by s. 707 718.111, the reserve study and current status of the reserves 708 required by s. 718.112(2)(f), the recertification report 709 required by s. 718.112(2)(p), and the document entitled 710 “Frequently Asked Questions and Answers” required by s. 718.504. 711 On and after January 1, 2009, The prospective purchaser is shall 712 also be entitled to receive from the seller a copy of a 713 governance form.

Such form shall be provided by the division 714 summarizing governance of condominium associations. In addition 715 to such other information as the division considers helpful to a 716 prospective purchaser in understanding association governance, 717 the governance form shall address the following subjects: 718 1. The role of the board in conducting the day-to-day 719 affairs of the association on behalf of, and in the best 720 interests of, the owners. 721 2. The board’s responsibility to provide advance notice of 722 board and membership meetings. 723 3.

The rights of owners to attend and speak at board and 724 membership meetings. 725

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 26 of 48 CODING: Words stricken are deletions; words underlined are additions. 4. The responsibility of the board and of owners with 726 respect to maintenance of the condominium propert y. 727 5. The responsibility of the board and owners to abide by 728 the condominium documents, this chapter, rules adopted by the 729 division, and reasonable rules adopted by the board. 730 6. Owners’ rights to inspect and copy association records 731 and the limitations on such rights. 732 7.

Remedies available to owners with respect to actions by 733 the board which may be abusive or beyond the board’s power and 734 authority. 735 8. The right of the board to hire a property management 736 firm, subject to its own primary responsibility for s uch 737 management. 738 9. The responsibility of owners with regard to payment of 739 regular or special assessments necessary for the operation of 740 the property and the potential consequences of failure to pay 741 such assessments. 742 10. The voting rights of owners. 743 11.

Rights and obligations of the board in enforcement of 744 rules in the condominium documents and rules adopted by the 745 board. 746 747 The governance form must shall also include the following 748 statement in conspicuous type: “This publication is intended as 749 an informal educational overview of condominium governance. In 750 the event of a conflict, the provisions of

chapter 718, Florida 751 Statutes, rules adopted by the Division of Florida Condominiums, 752 Timeshares, and Mobile Homes of the Department of Business and 753 Professional Regulation, the provisions of the condominium 754

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 27 of 48 CODING: Words stricken are deletions; words underlined are additions. documents, and reasonable rules adopted by the condominium 755 association’s board of administration prevail over t he contents 756 of this publication.” 757 (

c) Each contract entered into after July 1, 1992, for the 758 resale of a residential unit must shall contain in conspicuous 759 type either: 760 1.

A clause which states: THE BUYER HEREBY ACKNOWLEDGES 761 THAT HE OR SHE BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE 762 DECLARATION OF CONDOMINIUM, ARTICLES OF INCORPORATION OF THE 763 ASSOCIATION, BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF 764 THE MOST RECENT YEAR-END FINANCIAL INFORMATION, INCLUDING THE 765 RESERVE STUDY AND STATUS OF THE RESERVES, A COPY OF THE 766 RECERTIFICATION REPORT, AND THE FREQUENTLY ASKED QUESTIONS AND 767 ANSWERS DOCUMENT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, 768 AND LEGAL HOLIDAYS, BEFORE THE PRIOR TO EXECUTION OF THIS 769 CONTRACT; or 770 2.

A clause which states: THIS AGREEMENT IS VOIDABLE BY 771 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO 772 CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 773 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE 774 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE DECLARATION 775 OF CONDOMINIUM, ARTICLES OF INCORPORATION, BYLAWS AND RULES OF 776 THE ASSOCIATION, AND A COPY OF THE MOST RECENT YEAR-END 777 FINANCIAL INFORMATION, INCLUDING THE RESERVE STUDY AND STATUS OF 778 THE RESERVES, A COPY OF THE RECERTIFICATION REPORT, AND THE 779 FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT IF SO REQUESTED 780 IN WRITING.

ANY PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS 781 SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR 782 A PERIOD OF NOT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, 783

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 28 of 48 CODING: Words stricken are deletions; words underlined are additions. AND LEGAL HOLIDAYS, AFTER THE BUYER RECEIVES THE DOCUMENTS 784 LISTED ABOVE DECLARATION, ARTICLES OF INCORPORATION, BYLAWS AND 785 RULES OF THE ASSOCIATION, AND A COPY OF THE MOST RECENT YEAR -END 786 FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS 787 DOCUMENT IF REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS 788 AGREEMENT SHALL TERMINATE AT CLOSING. 789 790 A contract that does not conform to the requirements of this 791 paragraph is voidable at the option of the purchaser before 792 prior to closing. 793

Section 4. Paragraph (

d) of subsection (1) of

section 794 718.618, Florida Statutes, is amended to read: 795 718.618 Converter reserve accounts; warranties.— 796

(1) When existing improvements are converted to ownership 797 as a residential condominium, the developer shall establish 798 converter reserve accounts for capital expenditures and deferred 799 maintenance, or give warranties as provided by subsection (6), 800 or post a surety bond as provided by subsection (7). The 801 developer shall fund the converter reserve accounts in amounts 802 calculated as follows: 803 (

d) In addition to establishing the reserve accounts 804 specified above, the developer shall establish those other 805 reserve accounts required by s. 718.112(2)(f), and shall fund 806 those accounts in accordance with the formula provided therein. 807 The vote to waive or reduce the funding or reserves required by 808 s. 718.112(2)(

f) does not affect or negate the obligations 809 arising under this section. 810

Section 5. Subsection (3) of

section 718.706, Florida 811 Statutes, is amended to read: 812

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 29 of 48 CODING: Words stricken are deletions; words underlined are additions. 718.706 Specific provisions pertaining to offering of units 813 by a bulk assignee or bulk buyer.— 814

(3) A bulk assignee, while in control of the board of 815 administration of the association, may not authorize, on behalf 816 of the association: 817 (

a) The waiver of reserves or the reduction of fundin g of 818 the reserves pursuant to s. 718.112(2)(f)2., unless approved by 819 a majority of the voting interests not controlled by the 820 developer, bulk assignee, and bulk buyer; or 821 (

b) The use of reserve expenditures for other purposes 822 pursuant to s. 718.112(2)(f)3., unless approved by a majority of 823 the voting interests not controlled by the developer, bulk 824 assignee, and bulk buyer. 825

Section 6. Subsections (3), (7), and (8) of

section 826 719.103, Florida Statutes, are amended, to read: 827 719.103

Definitions.—As used in this chapter: 828 (3) “Board of administration” or “board” means the board of 829 directors or other representative body responsible for 830 administration of the association. 831 (7) “Common areas” means the portions of the cooperative 832 property not included in the units. The term 833 (8) “Common areas” includes within its meaning the 834 following: 835 (

a) The cooperative property which is not included within 836 the units. 837 (a)(

b) Easements through units for conduits, ducts, 838 plumbing, wiring, and other facilities for the furnishing of 839 utility services to units and the common areas. 840 (b)(

c) An easement of support in every portion of a unit 841

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 30 of 48 CODING: Words stricken are deletions; words underlined are additions. which contributes to the support of a building. 842 (c)(

d) The property and installations required for the 843 furnishing of utilities and other services to more than one unit 844 or to the common areas. 845 (d)(

e) Any other part of the cooperative property 846 designated in the cooperative documents as common areas. 847

Section 7. Paragraphs (b), (d), and (

j) of subsection (1) 848 of

section 719.106, Florida Statutes, are amended, and paragraph 849 (

n) is added to subsection (1) of that section, to read: 850 719.106 Bylaws; cooperative ownership.— 851

(1) MANDATORY PROVISIONS.—The bylaws or other cooperative 852 documents shall provide for the following, and if they do not, 853 they shall be deemed to include the following: 854 (

b) Quorum; voting requirements; proxies.— 855 1. Unless otherwise provided in the bylaws, the percentage 856 of voting interests required to constitute a quorum at a meeting 857 of the members is shall be a majority of voting interests, and 858 decisions must shall be made by owners of a majority of the 859 voting interests.

Unless otherwise provided in this chapter, or 860 in the articles of incorporation, bylaws, or other cooperative 861 documents, and except as provided in subparagraph (d)1., 862 decisions must shall be made by owners of a majority of the 863 voting interests represented at a meeting at which a quorum is 864 present. 865 2. Except as specifically otherwise provided herein, after 866 January 1, 1992, unit owners may not vote by general proxy, but 867 may vote by limited proxies substantially conforming to a 868 limited proxy form adopted by the division.

Limited proxies and 869 general proxies may be used to establish a quorum. Limited 870

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 31 of 48 CODING: Words stricken are deletions; words underlined are additions. proxies must shall be used for votes taken to waive or reduce 871 reserves in accordance with subparagraph (j)2., for votes taken 872 to waive the financial reporting requirements of s. 873 719.104(4)(b);, for votes taken to amend the articles of 874 incorporation or bylaws pursuant to this

section ;, and for any 875 other matter for which this

chapter requires or permits a vote 876 of the unit owners. Except as provided in paragraph (d), after 877 January 1, 1992, a no proxy, whether limited or general, may not 878 shall be used in the election of board members. General proxies 879 may be used for other matters for which limited proxies are not 880 required, and may also be used in voting for nonsubstantive 881 changes to items for which a limited proxy is required and 882 given. Notwithstanding the provisions of this section, unit 883 owners may vote in person at unit owner meetings.

Nothing 884 contained herein limits shall limit the use of general proxies, 885 or requires require the use of limited proxies, or requires 886 require the use of limited proxies for any agenda item or 887 election at any meeting of a timeshare cooperative. 888 3. Any proxy given is shall be effective only for the 889 specific meeting for which originally given and any lawfully 890 adjourned meetings thereof. In no event shall any proxy be valid 891 for a period longer than 90 days after the date of the first 892 meeting for which it was given.

Every proxy is shall be 893 revocable at any time at the pleasure of the unit owner 894 executing it. 895 4. A member of the board of administration or a committee 896 may submit in writing his or her agreement or disagreement with 897 any action taken at a meeting that the member did not attend. 898 This agreement or disagreement may not be used as a vote for or 899

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 32 of 48 CODING: Words stricken are deletions; words underlined are additions. against the action taken and may not be used for the purposes of 900 creating a quorum. 901 5. A board member or committee member participating in a 902 meeting via telephone, real-time videoconferencing, or similar 903 real-time electronic or video communication counts toward a 904 quorum, and such member may vote as if physically present. A 905 speaker must be used so that the conversation of such members 906 may be heard by the board or committee members attending in 907 person, as well as by any unit owners present at a meeting. 908 (

d) Shareholder meetings.—There shall be an annual meeting 909 of the shareholders. All members of the board of administration 910 shall be elected at the annual meeting unless the bylaws provide 911 for staggered election terms or for their election at another 912 meeting. Any unit owner desiring to be a candidate for board 913 membership must comply with subparagraph 1. The bylaws must 914 provide the method for calling meetings, including annual 915 meetings.

Written notice, which must incorporate an 916 identification of agenda items, must shall be given to each unit 917 owner at least 14 days before the annual meeting and posted in a 918 conspicuous place on the cooperative property at least 14 919 continuous days before preceding the annual meeting. Upon notice 920 to the unit owners, the board must by duly adopted rule 921 designate a specific location on the cooperative prope rty upon 922 which all notice of unit owner meetings are posted.

In lieu of 923 or in addition to the physical posting of the meeting notice, 924 the association may, by reasonable rule, adopt a procedure for 925 conspicuously posting and repeatedly broadcasting the notic e and 926 the agenda on a closed-circuit cable television system serving 927 the cooperative association. However, if broadcast notice is 928

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 33 of 48 CODING: Words stricken are deletions; words underlined are additions. used in lieu of a posted notice, the notice and agenda must be 929 broadcast at least four times every broadcast hour of each day 930 that a posted notice is otherwise required under this section. 931 If broadcast notice is provided, the notice and agenda must be 932 broadcast in a manner and for a sufficient continuous length of 933 time to allow an average reader to observe the notice and read 934 and comprehend the entire content of the notice and the agenda. 935 In addition to any of the authorized means of providing notice 936 of a meeting of the shareholders, the association may, by rule, 937 adopt a procedure for conspicuously posting the meeting notice 938 and the agenda on a website serving the cooperative association 939 for at least the minimum period of time for which a notice of a 940 meeting is also required to be physically posted on the 941 cooperative property.

Any rule adopted must shall, in addition 942 to other matters, include a requirement that the association 943 send an electronic notice in the same manner as a notice for a 944 meeting of the members, which must include a hyperlink to the 945 website where the notice is posted, to unit owners whose e -mail 946 addresses are included in the association’s official records. 947 Unless a unit owner waives in writing the right to receive 948 notice of the annual meeting, the notice of the annual meeting 949 must be sent by mail, hand delivered, or electronically 950 transmitted to each unit owner.

An officer of the association 951 must provide an affidavit or United States Postal Service 952 certificate of mailing, to be included in the official records 953 of the association, affirming that notices of the association 954 meeting were mailed, hand delivered, or electro nically 955 transmitted, in accordance with this provision, to each unit 956 owner at the address last furnished to the association. 957

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 34 of 48 CODING: Words stricken are deletions; words underlined are additions. 1. The board of administration shall be elected by written 958 ballot or voting machine. A proxy may not be used in electing 959 the board of administration in general elections or elections to 960 fill vacancies caused by recall, resignation, or otherwise 961 unless otherwise provided in this chapter. 962 a.

At least 60 days before a scheduled election, the 963 association shall mail, deliver, or transmit, whether by 964 separate association mailing, delivery, or electronic 965 transmission or included in another association mailing, 966 delivery, or electronic transmission, including regularly 967 published newsletters, to each unit owner entitled to vote, a 968 first notice of the date of the election. Any unit owner or 969 other eligible person desiring to be a candidate for the board 970 of administration must give written notice to the association at 971 least 40 days before a scheduled election.

Together with the 972 written notice and agenda as set forth in this section, the 973 association shall mail, deliver, or electronically transmit a 974 second notice of election to all unit owners entitled to vote, 975 together with a ballot that lists all candidates.

Upon request 976 of a candidate, the association must shall include an 977 information sheet, no larger than 8 1/2 inches by 11 inches, 978 which must be furnished by the candidate at least 35 days before 979 the election, to be included with the mailing, delivery, or 980 electronic transmission of the ballot, with the costs of 981 mailing, delivery, or transmission and copying to be borne by 982 the association. The association is not liable for the contents 983 of the information sheets provided by the candidates.

In order 984 to reduce costs, the association may print or duplicate the 985 information sheets on both sides of the paper. The division 986

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 35 of 48 CODING: Words stricken are deletions; words underlined are additions. shall by rule establish voting procedures consistent with this 987 subparagraph, including rules establishing procedures for giving 988 notice by electronic transmission and rules providing for the 989 secrecy of ballots. Elections must shall be decided by a 990 plurality of those ballots cast. There is no quorum requirement. 991 However, at least 20 percent of the eligible voters must cast a 992 ballot in order to have a valid election.

A unit owner may not 993 permit any other person to vote his or her ballot, and any such 994 ballots improperly cast are invalid. A unit owner who needs 995 assistance in casting the ballot for the reasons stated in s. 996 101.051 may obtain assistance in casting the ballot. Any unit 997 owner violating this provision may be fined by the association 998 in accordance with s. 719.303. The regular election must occur 999 on the date of the annual meeting. This subparagraph does not 1000 apply to timeshare cooperatives.

Notwithstanding this 1001 subparagraph, an election and balloting are not required unless 1002 more candidates file a notice of intent to run or are nominated 1003 than vacancies exist on the board. Any challenge to the election 1004 process must be commenced within 60 days after the election 1005 results are announced. 1006 b.

Within 90 days after being elected or appointed to the 1007 board, a each new director shall certify in writing to the 1008 secretary of the association that he or she has read the 1009 association’s bylaws, articles of incorporation, proprietary 1010 lease, and current written policies; that he or she will work to 1011 uphold such documents and policies to the best of his or her 1012 ability; and that he or she will faithfully discharge his or her 1013 fiduciary responsibility to the association’s members. Within 90 1014 days after being elected or appointed to the board, in addition 1015

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 36 of 48 CODING: Words stricken are deletions; words underlined are additions. to lieu of this written certification, the newly elected or 1016 appointed director must may submit a certificate of having 1017 satisfactorily completed the educational curriculum administered 1018 by an education provider as approved by the division pursuant to 1019 the requirements established in

chapter 718 within 1 year before 1020 or 90 days after the date of election or appointment. The 1021 written certification and educational certificate is valid and 1022 does not have to be resubmitted as long as the director serves 1023 on the board without interruption. A director who fails to 1024 timely file the written certification and or educational 1025 certificate is suspended from service on the board until he or 1026 she complies with this sub-subparagraph.

The board may 1027 temporarily fill the vacancy during the period of suspension. 1028 The secretary of the association shall cause the association to 1029 retain a director’s written certification and or educational 1030 certificate for inspection by the members for 5 years after a 1031 director’s election or the duration of the director’s 1032 uninterrupted tenure, whichever is longer. Failure to have such 1033 written certification and or educational certificate on file 1034 does not affect the validity of any board action. 1035 2.

Any approval by unit owners called for by this chapter, 1036 or the applicable cooperative documents, must be made at a duly 1037 noticed meeting of unit owners and is subject to this

chapter or 1038 the applicable cooperative documents relating to unit owner 1039 decisionmaking, except that unit owners may take action by 1040 written agreement, without meetings, on matters for which action 1041 by written agreement without meetings is expressly allowed by 1042 the applicable cooperative documents or law which provides for 1043 the unit owner action. 1044

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 37 of 48 CODING: Words stricken are deletions; words underlined are additions. 3. Unit owners may waive notice of specific meetings if 1045 allowed by the applicable cooperative documents or law. Notice 1046 of meetings of the board of administration, shareholder 1047 meetings, except shareholder meetings called to recall board 1048 members under paragraph (f), and committee meetings may be given 1049 by electronic transmission to unit owners who consent to receive 1050 notice by electronic transmission.

A unit owner who consents to 1051 receiving notices by electronic transmission is solely 1052 responsible for removing or bypassing filters that may block 1053 receipt of mass emails sent to members on behalf of the 1054 association in the course of giving electronic notices. 1055 4. Unit owners have the right to participate in meetings of 1056 unit owners with reference to all designated agenda items. 1057 However, the association may adopt reasonable rules governing 1058 the frequency, duration, and manner of unit owner participation. 1059 5.

Any unit owner may tape record or videotape meetings of 1060 the unit owners subject to reasonable rules adopted by the 1061 division. 1062 6. Unless otherwise provided in the bylaws, a vacancy 1063 occurring on the board before the expiration of a term may be 1064 filled by the affirmative vote of the majority of the remaining 1065 directors, even if the remaining directors constitute less than 1066 a quorum, or by the sole remaining director.

In the alternative, 1067 a board may hold an election to fill the vacancy, in which case 1068 the election procedures must conform to the requirements of 1069 subparagraph 1. unless the association has opted out of the 1070 statutory election process, in which case the bylaws of the 1071 association control. Unless otherwise provided in the bylaws, a 1072 board member appointed or elected under this subparagraph shall 1073

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 38 of 48 CODING: Words stricken are deletions; words underlined are additions. fill the vacancy for the unexpired term of the seat being 1074 filled. Filling vacancies created by recall is governed by 1075 paragraph (

f) and rules adopted by the division. 1076 1077 Notwithstanding subparagraphs (b)2. and (d)1., an association 1078 may, by the affirmative vote of a majority of the total voting 1079 interests, provide for a different voting and election procedure 1080 in its bylaws, which vote may be by a proxy specifically 1081 delineating the different voting and election procedures. The 1082 different voting and election procedures may provide for 1083 elections to be conducted by limited or general proxy. 1084 (

j) Annual budget.— 1085 1. The proposed annual budget of common expenses must shall 1086 be detailed and must shall show the amounts budgeted by accounts 1087 and expense classifications, including, if applicable, but not 1088 limited to, those expenses listed in s. 719.504(20).

The board 1089 of administration must shall adopt the annual budget at least 14 1090 days before prior to the start of the association’s fiscal year. 1091 If In the event that the board fails to timely adopt the annual 1092 budget a second time, it is shall be deemed a minor violation 1093 and the prior year’s budget shall continue in effect until a new 1094 budget is adopted. 1095 2. In addition to annual operating expenses, the budget 1096 must shall include reserve accounts for capital expenditures and 1097 deferred maintenance.

These accounts must shall include, but not 1098 be limited to, roof replacement, building painting, and pavement 1099 resurfacing, regardless of the amount of deferred maintenanc e 1100 expense or replacement cost, and for any other items for which 1101 the deferred maintenance expense or replacement cost exceeds 1102

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 39 of 48 CODING: Words stricken are deletions; words underlined are additions. $10,000. The amount to be reserved must shall be computed by 1103 means of a formula which is based upon estimated remaining 1104 useful life and estimated replacement cost or deferred 1105 maintenance expense of each reserve item. The association may 1106 adjust replacement reserve assessments annually to take into 1107 account any changes in estimates or extension of the useful life 1108 of a reserve item caused by deferred maintenance.

The 1109 association must maintain a separate reserve account exclusively 1110 for the maintenance and replacement of items recognized in the 1111 Life Safety Code. Life safety requirements include, but are not 1112 limited to, waterproofing measures; roof and balcony railing 1113 maintenance; and fire, mechanical, electrical, and structural 1114 standards. Reserve funds for other capital expenditures and 1115 deferred maintenance may not be comingled with the reserve funds 1116 for life safety expenditures and maintenance.

Every 2 years, the 1117 board must hire a licensed engineer or engineering firm 1118 qualified to do business in the state to conduct a reserve study 1119 of the property in order to ensure adequate funding of the 1120 association’s reserve accounts. The engineer or engi neering firm 1121 must conduct a reasonably competent and diligent visual 1122 inspection of the assessable areas of the major components that 1123 the association is obligated to repair, replace, restore, or 1124 maintain and provide an estimate of the components’ remaining 1125 useful life.

The board must provide a copy of the reserve study, 1126 along with a report or financial statement indicating the amount 1127 of money that is currently in the reserves, to the local 1128 authority having jurisdiction within 7 days after the board 1129 receives the completed report from the engineer or engineering 1130 firm. This paragraph shall not apply to any budget in which the 1131

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 40 of 48 CODING: Words stricken are deletions; words underlined are additions. members of an association have, at a duly called meeting of the 1132 association, determined for a fiscal year to provide no reserves 1133 or reserves less adequate than required by this subsection. 1134 However, prior to turnover of control of an association by a 1135 developer to unit owners other than a developer pursuant to s. 1136 719.301, the developer may vote to waive the reserves or reduce 1137 the funding of reserves for the first 2 years of the operation 1138 of the association after which time reserves may only be waived 1139 or reduced upon the vote of a majority of all nondeveloper 1140 voting interests voting in person or by limited proxy at a duly 1141 called meeting of the association.

If a meeting of the unit 1142 owners has been called to determine to provide no reserves, or 1143 reserves less adequate than required, and such result is not 1144 attained or a quorum is not attained, the reserves as included 1145 in the budget shall go into effect. 1146 3.

Reserve funds and any interest accruing thereon must 1147 shall remain in the reserve account or accounts, and may shall 1148 be used only for authorized reserve expenditures unless their 1149 use for other purposes is approved in advance by a vote of the 1150 majority of the voting interests, voting in person or by limited 1151 proxy at a duly called meeting of the association.

Before Prior 1152 to turnover of control of an association by a developer to unit 1153 owners other than the developer under s. 719.301, the developer 1154 may not vote to use reserves for purposes other than that for 1155 which they were intended without the approval of a majority of 1156 all nondeveloper voting interests, voting in person or by 1157 limited proxy at a duly called meeting of the association. 1158 (

n) Building construction, renovations, and inspections.—1159 The requirements for the construction and renovation of a 1160

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 41 of 48 CODING: Words stricken are deletions; words underlined are additions. residential cooperative building must comply with

chapter 553 1161 which pertains to building construction standards, including 1162 plumbing, electrical code, glass, manufactured buildings, 1163 accessibility for persons with disabilities, and the state 1164 minimum building code. An association must ensure compliance 1165 with the Florida Building Code. 1166 1. The board must hire a licensed structural engineer 1167 authorized to practice in the state to conduct an annual 1168 inspection of the association property and its buildings to 1169 ensure the structural stability of the property and buildings. 1170 2.

Upon a determination by the local authority having 1171 jurisdiction that a residential cooperative building is 20 years 1172 of age or older, the local authority having jurisdiction shall 1173 issue a notice of required recertification inspection to the 1174 association. 1175 3.

The board must hire a licensed architect or engineer 1176 authorized to practice in the state within 90 days after receipt 1177 of the notice of required recertification inspection to conduct 1178 an inspection to ensure the building’s structural and electrical 1179 systems are still safe and to provide a recertification report 1180 to the local authority having jurisdiction. A licensed architect 1181 or engineer may only undertake assignments in which he or she is 1182 qualified by training and experience in the specific technical 1183 field involved in the inspection. 1184 4.

A licensed architect or engineer shall conduct a 1185 structural recertification inspection of the building by 1186 analyzing, at a minimum, the: 1187 a. Foundation. 1188 b. Floor and roofing systems. 1189

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 42 of 48 CODING: Words stricken are deletions; words underlined are additions. c. Masonry bearing walls. 1190 d. Steel framing systems. 1191 e. Concrete framing systems. 1192 f. Windows. 1193 g. Wood framing. 1194 h. Loading. 1195 5. A licensed architect or engineer shall conduct an 1196 electrical recertification inspection of the building by 1197 analyzing, at a minimum, the: 1198 a. Electric services. 1199 b. Branch circuits. 1200 c. Conduit raceways. 1201 d. Gutters. 1202 e. Electrical panels. 1203 f. Grounding of equipment. 1204 g.

Service conductor and cables. 1205 h. Types of wiring methods. 1206 i. Feeder conductors. 1207 j. Parking illumination. 1208 6. The licensed architect or engineer must indicate the 1209 manner and type of inspection conducted that forms the basis of 1210 the recertification report and must describe any matters 1211 identified as needing remedial action. The report must bear the 1212 seal and signature of the certifying architect or engineer. The 1213 board must provide a copy of the report to the local authority 1214 having jurisdiction within 7 days after the board receives the 1215 completed report. 1216 7.a.

If the recertification report indicates that repairs 1217 or modifications are necessary, the board has 6 months after 1218

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 43 of 48 CODING: Words stricken are deletions; words underlined are additions. receipt of the recertification report in which to complete the 1219 indicated repairs or modifications, which must be executed in 1220 conformance with the Florida Building Code. Within 7 days after 1221 completion of the repairs or modifications, the board shall 1222 provide a completion report, under seal and signature of a 1223 licensed architect or engineer, to the local authority having 1224 jurisdiction affirming that the remedial action has been 1225 completed. 1226 b.

If the local authority having jurisdiction has reason to 1227 believe that the matters indicated in the recertification report 1228 as needing remedial action present a serious th reat to the 1229 public health, safety, or welfare, or are irreparable or 1230 irreversible, it may order a mandatory evacuation of the 1231 residential cooperative. 1232 8.

The local authority having jurisdiction shall issue a 1233 notice of violation if the board does not timely submit the 1234 completion report required under sub-subparagraph 7.a. and must 1235 establish a reasonable time period within which the board must 1236 correct the violation. If the board does not comply with the 1237 notice of violation within the timeframe specified, the local 1238 authority having jurisdiction shall issue the association a 1239 citation resulting in a fine not to exceed $500.

However, the 1240 local authority having jurisdiction may specify by ordinance a 1241 fine in an amount exceeding $500, but not exceeding $2,000 a 1242 day. The local authority having jurisdiction may issue a 1243 citation for each day that the association is in violation of 1244 this paragraph. 1245 9. Subsequent recertification inspections must be completed 1246 every 5 years thereafter. 1247

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 44 of 48 CODING: Words stricken are deletions; words underlined are additions.

Section 8. Paragraph (

b) of subsection (1) and paragraphs 1248 (

a) and (

c) of subsection (2) of

section 719.503, Florida 1249 Statutes, are amended to read: 1250 719.503 Disclosure prior to sale.— 1251

(1) DEVELOPER DISCLOSURE.— 1252 (

b) Copies of documents to be furnished to prospective 1253 buyer or lessee.—Until such time as the developer has furnished 1254 the documents listed below to a person who has entered into a 1255 contract to purchase a unit or lease it for more than 5 years, 1256 the contract may be voided by that person, entitling the person 1257 to a refund of any deposit together with interest thereon as 1258 provided in s. 719.202.

The contract may be terminated by 1259 written notice from the proposed buyer or lessee delivered to 1260 the developer within 15 days after the buyer or lessee receives 1261 all of the documents required by this section.

The developer may 1262 shall not close for 15 days after following the execution of the 1263 agreement and delivery of the documents to the buyer as 1264 evidenced by a receipt for documents signed by the buyer unless 1265 the buyer is informed in the 15-day voidability period and 1266 agrees to close before prior to the expiration of the 15 days. 1267 The developer shall retain in his or her records a separate 1268 signed agreement as proof of the buyer’s agreement to close 1269 before prior to the expiration of the said voidability period. 1270 The developer must retain such Said proof shall be retained for 1271 a period of 5 years after the date of the closing transaction. 1272 The documents to be delivered to the prospective buyer are the 1273 prospectus or disclosure statement with all exhibits, if the 1274 development is subject to the provisions of s. 719.504, or, if 1275 not, then copies of the following which are applicable: 1276

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 45 of 48 CODING: Words stricken are deletions; words underlined are additions. 1. The question and answer sheet described in s. 719.504, 1277 and cooperative documents, or the proposed cooperative documents 1278 if the documents have not been recorded, which shall include the 1279 certificate of a surveyor approximately representing the 1280 locations required by s. 719.104. 1281 2. The documents creating the association. 1282 3. The bylaws. 1283 4. The ground lease or other underlying lease of the 1284 cooperative. 1285 5.

The management contract, maintenance contract, and other 1286 contracts for management of the association and operation of the 1287 cooperative and facilities used by the unit owners having a 1288 service term in excess of 1 year, and any management contracts 1289 that are renewable. 1290 6. The estimated operating budget for the cooperative and a 1291

schedule of expenses for each type of unit, including fees 1292 assessed to a shareholder who has exclusive use of limited 1293 common areas, where such costs are shared only by those entitled 1294 to use such limited common areas. 1295 7. The lease of recreational and other facilities that will 1296 be used only by unit owners of the subject cooperative. 1297 8. The lease of recreational and other common areas that 1298 will be used by unit owners in common with unit owners of other 1299 cooperatives. 1300 9. The form of unit lease if the offer is of a leasehold. 1301 10.

Any declaration of servitude of properties serving the 1302 cooperative but not owned by unit owners or leased to them or 1303 the association. 1304 11. If the development is to be built in phases or if the 1305

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 46 of 48 CODING: Words stricken are deletions; words underlined are additions. association is to manage more than one cooperative, a 1306 description of the plan of phase development or the arrangements 1307 for the association to manage two or more cooperatives. 1308 12. If the cooperative is a conversion of existing 1309 improvements, the statements and disclosure required by s. 1310 719.616. 1311 13. The form of agreement for sale or lease of units. 1312 14.

A copy of the floor plan of the unit and the plot plan 1313 showing the location of the residential buildings and the 1314 recreation and other common areas. 1315 15. A copy of all covenants and restrictions that which 1316 will affect the use of the property and which are not contained 1317 in the foregoing. 1318 16.

If the developer is required by state or local 1319 authorities to obtain acceptance or approval of any dock or 1320 marina facilities intended to serve the coopera tive, a copy of 1321 any such acceptance or approval acquired by the time of filing 1322 with the division pursuant to s. 719.502(1) or a statement that 1323 such acceptance or approval has not been acquired or received. 1324 17. Evidence demonstrating that the developer has an 1325 ownership, leasehold, or contractual interest in the land upon 1326 which the cooperative is to be developed. 1327 18.

A copy of the reserve study required under s. 1328 719.106(1)(j), along with a report or financial statement 1329 indicating the status of the reserves. 1330 19. A copy of the recertification report required under s. 1331 719.106(1)(n). 1332

(2) NONDEVELOPER DISCLOSURE.— 1333 (

a) Each unit owner who is not a developer as defined by 1334

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 47 of 48 CODING: Words stricken are deletions; words underlined are additions. this

chapter must comply with the provisions of this subsection 1335 before prior to the sale of his or her interest in the 1336 association. Each prospective purchaser who has entered into a 1337 contract for the purchase of an interest in a cooperative is 1338 entitled, at the seller’s expense, to a current copy of the 1339 articles of incorporation of the association, the bylaws, the 1340 and rules of the association, the reserve study and current 1341 status of the reserves required by s. 719.106(1)(j), the 1342 recertification report required by s. 719.106(1)(n), as well as 1343 a copy of the question and answer sheet as provided in s. 1344 719.504. 1345 (

c) Each contract entered into after July 1, 1992, for the 1346 resale of an interest in a cooperative must shall contain in 1347 conspicuous type either: 1348 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES 1349 THAT HE OR SHE BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE 1350 ARTICLES OF INCORPORATION OF THE ASSOCIATION, BYLAWS, RULES OF 1351 THE ASSOCIATION, THE RESERVE STUDY AND STATUS OF THE RESERVES, 1352 THE RECERTIFICATION STUDY, AND THE QUESTION AND ANSWER SHEET 1353 MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 1354 HOLIDAYS, BEFORE THE PRIOR TO EXECUTION OF THIS CONTRACT; or 1355 2.

A clause which states: THIS AGREEMENT IS VOIDABLE BY 1356 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO 1357 CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 1358 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE 1359 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE ARTICLES OF 1360 INCORPORATION, BYLAWS, AND RULES OF THE ASSOCIATION, THE RESERVE 1361 STUDY AND STATUS OF THE RESERVES, THE RECERTIFICATION STUDY, AND 1362 THE QUESTION AND ANSWER SHEET, IF SO REQUESTED IN WRITING. ANY 1363

Florida Senate - 2022 SB 1942 38-00161-22 20221942__ Page 48 of 48 CODING: Words stricken are deletions; words underlined are additions. PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO 1364 EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF 1365 NOT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 1366 HOLIDAYS, AFTER THE BUYER RECEIVES THE DOCUMENTS LISTED ABOVE 1367 ARTICLES OF INCORPORATION, BYLAWS, RULES, AND QUESTION AND 1368 ANSWER SHEET, IF REQUESTED IN WRITING.

BUYER’S RIGHT TO VOID 1369 THIS AGREEMENT SHALL TERMINATE AT CLOSING. 1370 1371 A contract that does not conform to the requirements of this 1372 paragraph is voidable at the option of the purchaser before 1373 prior to closing. 1374

Section 9. This act shall take effect July 1, 2022. 1375