Reso 2024-3630 - Laserfiche WebLink

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BILL: CS/SB 1178 Page 2 • Requires official records to be provided to the unit owner at no charge if the Division of Condominium, Timeshares, and Mobile Homes (division) subpoenas records an association has failed to timely provide in response to a unit owner's written request. • Requires associations to maintain additional financial records (e.g., invoices and other documentation that substantiates any receipt or expenditure) to be maintained by a condominium association for inspection by association members as official records. • Permits associations to fulfill records requests by directing unit owners to the records that are posted on the association's website. • Requires associations to respond to a records request with a checklist of all records provided. The bill provides the following criminal penalties related to condominium associations: • Third degree felony for an officer, director, or manager of a condominium association to knowingly solicit, offer to accept, or accept anything or service of value or kickback; • First degree misdemeanor for knowingly or intentionally defacing or destroying required accounting records or knowingly and intentionally failing to create or maintain required accounting records, with the intent of causing harm to the association or one or more of its members; • Second degree misdemeanor for any director or member of the board or association to knowingly, willfully, and "repeatedly" violate (two or more violations within a 12 -month period) any specified requirements relating to inspection and copying of official records of an association; and • Third degree felony to willfully and knowingly refuse to release or otherwise produce association records, with the intent to avoid or escape detection, arrest, trial, or punishment for the commission of a crime, or to assist another person with such avoidance or escape. In addition, the bill provides that a person commits theft by use of a debit card, if the person uses a debit card issued in the name of, or billed directly to, an association for any expense that is not a lawful obligation of the association. The bill provides that officers and directors charged with a criminal violation created in the bill are deemed removed from office and a vacancy declared. Regarding condominium association budgets, financial reporting, and reserves, the bill: • Revises the term "deferred maintenance" to "planned maintenance." • Prohibits associations from reducing the required type of financial statement (compiled, reviewed, or audited financial statements) for consecutive years. • Provides for the investing of reserve funds by authorizing condominium associations, including multicondominium associations, to invest reserve funds and provides relevant procedures and requirements associations must follow when investing reserve funds, including limits on the types or permissible investments, record keeping requirements, and requiring the use of an independent investment adviser. • Revises reserve maintenance requirements to: o Allows an extension of the deadline for completion of a structural integrity reserve study (SIRS) if the condominium or cooperative association has entered into a contract for the performance of the study and the study cannot reasonably be performed or completed by 312