Bill Text: FL S0796 | 2015 | Regular Session | Introduced


Bill Title: Financial Reporting

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-05-01 - Died on Calendar [S0796 Detail]

Download: Florida-2015-S0796-Introduced.html
       Florida Senate - 2015                                     SB 796
       
       
        
       By Senator Evers
       
       
       
       
       
       2-00735-15                                             2015796__
    1                        A bill to be entitled                      
    2         An act relating to financial reporting; amending ss.
    3         718.111, 719.104, and 720.303, F.S.; deleting
    4         provisions with respect to the preparation by certain
    5         condominium associations, cooperative associations,
    6         and homeowners’ associations of annual reports of cash
    7         receipts and expenditures in lieu of certain financial
    8         statements; providing an effective date.
    9          
   10  Be It Enacted by the Legislature of the State of Florida:
   11  
   12         Section 1. Paragraph (b) of subsection (13) of section
   13  718.111, Florida Statutes, is amended to read:
   14         718.111 The association.—
   15         (13) FINANCIAL REPORTING.—Within 90 days after the end of
   16  the fiscal year, or annually on a date provided in the bylaws,
   17  the association shall prepare and complete, or contract for the
   18  preparation and completion of, a financial report for the
   19  preceding fiscal year. Within 21 days after the final financial
   20  report is completed by the association or received from the
   21  third party, but not later than 120 days after the end of the
   22  fiscal year or other date as provided in the bylaws, the
   23  association shall mail to each unit owner at the address last
   24  furnished to the association by the unit owner, or hand deliver
   25  to each unit owner, a copy of the financial report or a notice
   26  that a copy of the financial report will be mailed or hand
   27  delivered to the unit owner, without charge, upon receipt of a
   28  written request from the unit owner. The division shall adopt
   29  rules setting forth uniform accounting principles and standards
   30  to be used by all associations and addressing the financial
   31  reporting requirements for multicondominium associations. The
   32  rules must include, but not be limited to, standards for
   33  presenting a summary of association reserves, including a good
   34  faith estimate disclosing the annual amount of reserve funds
   35  that would be necessary for the association to fully fund
   36  reserves for each reserve item based on the straight-line
   37  accounting method. This disclosure is not applicable to reserves
   38  funded via the pooling method. In adopting such rules, the
   39  division shall consider the number of members and annual
   40  revenues of an association. Financial reports shall be prepared
   41  as follows:
   42         (b)1. An association with total annual revenues of less
   43  than $150,000 shall prepare a report of cash receipts and
   44  expenditures.
   45         2. An association that operates fewer than 50 units,
   46  regardless of the association’s annual revenues, shall prepare a
   47  report of cash receipts and expenditures in lieu of financial
   48  statements required by paragraph (a).
   49         2.3. A report of cash receipts and disbursements must
   50  disclose the amount of receipts by accounts and receipt
   51  classifications and the amount of expenses by accounts and
   52  expense classifications, including, but not limited to, the
   53  following, as applicable: costs for security, professional and
   54  management fees and expenses, taxes, costs for recreation
   55  facilities, expenses for refuse collection and utility services,
   56  expenses for lawn care, costs for building maintenance and
   57  repair, insurance costs, administration and salary expenses, and
   58  reserves accumulated and expended for capital expenditures,
   59  deferred maintenance, and any other category for which the
   60  association maintains reserves.
   61         Section 2. Paragraph (c) of subsection (4) of section
   62  719.104, Florida Statutes, is amended to read:
   63         719.104 Cooperatives; access to units; records; financial
   64  reports; assessments; purchase of leases.—
   65         (4) FINANCIAL REPORT.—
   66         (c)1. An association with total annual revenues of less
   67  than $150,000 shall prepare a report of cash receipts and
   68  expenditures.
   69         2. An association in a community of fewer than 50 units,
   70  regardless of the association’s annual revenues, shall prepare a
   71  report of cash receipts and expenditures in lieu of the
   72  financial statements required by paragraph (b), unless the
   73  declaration or other recorded governing documents provide
   74  otherwise.
   75         2.3. A report of cash receipts and expenditures must
   76  disclose the amount of receipts by accounts and receipt
   77  classifications and the amount of expenses by accounts and
   78  expense classifications, including the following, as applicable:
   79  costs for security, professional, and management fees and
   80  expenses; taxes; costs for recreation facilities; expenses for
   81  refuse collection and utility services; expenses for lawn care;
   82  costs for building maintenance and repair; insurance costs;
   83  administration and salary expenses; and reserves, if maintained
   84  by the association.
   85         Section 3. Paragraph (b) of subsection (7) of section
   86  720.303, Florida Statutes, is amended to read:
   87         720.303 Association powers and duties; meetings of board;
   88  official records; budgets; financial reporting; association
   89  funds; recalls.—
   90         (7) FINANCIAL REPORTING.—Within 90 days after the end of
   91  the fiscal year, or annually on the date provided in the bylaws,
   92  the association shall prepare and complete, or contract with a
   93  third party for the preparation and completion of, a financial
   94  report for the preceding fiscal year. Within 21 days after the
   95  final financial report is completed by the association or
   96  received from the third party, but not later than 120 days after
   97  the end of the fiscal year or other date as provided in the
   98  bylaws, the association shall, within the time limits set forth
   99  in subsection (5), provide each member with a copy of the annual
  100  financial report or a written notice that a copy of the
  101  financial report is available upon request at no charge to the
  102  member. Financial reports shall be prepared as follows:
  103         (b)1. An association with total annual revenues of less
  104  than $150,000 shall prepare a report of cash receipts and
  105  expenditures.
  106         2. An association in a community of fewer than 50 parcels,
  107  regardless of the association’s annual revenues, may prepare a
  108  report of cash receipts and expenditures in lieu of financial
  109  statements required by paragraph (a) unless the governing
  110  documents provide otherwise.
  111         2.3. A report of cash receipts and disbursement must
  112  disclose the amount of receipts by accounts and receipt
  113  classifications and the amount of expenses by accounts and
  114  expense classifications, including, but not limited to, the
  115  following, as applicable: costs for security, professional, and
  116  management fees and expenses; taxes; costs for recreation
  117  facilities; expenses for refuse collection and utility services;
  118  expenses for lawn care; costs for building maintenance and
  119  repair; insurance costs; administration and salary expenses; and
  120  reserves if maintained by the association.
  121         Section 4. This act shall take effect July 1, 2015.

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