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BILL: CS/S13 1178 Page 11 The board of a condominium association must approve a contract for services or other transactions by an affirmative vote of two-thirds of all other directors present. Current law does not have a comparable process for a CAM's or CAM firm's disclosure of a potential conflict of interest or the process for an association's affirmative acceptance or approval of such a conflict of interest. Effect of Proposed Changes The bill revises the following requirements for CAM and CAM firms under part VIII of ch. 468, F.S., which apply to all CAM and CAM firms engaged in community association management in condominium associations under ch. 718, F.S., cooperative associations under ch. 719, F.S., and homeowners' associations under ch. 720, F.S. The bill creates s. 468.4334(3), F.S., to require a CAM or CAM firm to return all community association records in his or her possession within 20 business days of termination of services agreement or a written request, whichever occurs first. The bill allows a CAM or CAM firm to retain records for up to 20 business days after the contract is terminated in order to complete an ending financial statement or report. If the association fails to provide the CAM or CAM firm access or retention to the accounting records, the CAM or CAM firm is relieved of any further responsibility or liability for preparation of the statement or report. If the CAM or CAM firm fails to timely return all of the official records within its possession to the community association, the successor CAM firm, the bill creates a rebuttable presumption that the CAM or CAM firm willfully failed to comply with this subsection. However, the bill also provides that a CAM or CAM firm that fails to timely return community association records is subject to suspension of its license under s. 468.436, F.S., and a civil penalty of $1,000 per day for up to 10 days, assessed beginning on the 21st day after termination of a contractual agreement to provide community association management services to the community association or receipt of a written request from the association for return of the records, whichever occurs first. The bill creates s. 468.4335, F.S., to provide additional conflict of interest disclosure requirements for CAMs and CAM firms and a process for associations to follow when approving contracts with a CAM or CAM firm, or a relative of a CAM, which may present a conflict of interest. The requirements are similar to those applicable to contracts between condominium associations and their officers and directors. The bill requires a CAM or CAM firm, including the directors, officers, persons with a financial interest in the CAM firm and relatives of such persons, to provide a written disclosure of any activity which may reasonably be construed by the board to be a conflict of interest. The bill creates a rebuttable presumption of an existing conflict of interest if a CAM or CAM firm, including directors, officers, persons with a financial interest in a CAM firm, or the relative of such persons: • Enters into a contract for goods or services with the association for other than community management services. 321