ANNUAL AUDIT/REVIEW FOR CONDO ASSOC.                                           H.B. 4355 (H-3):

                                                                                                      FLOOR SUMMARY

House Bill 4355 (Substitute H-3 as reported without amendment)

Sponsor:  Representative Paul Clemente

House Committee:  Regulatory Reform

Senate Committee:  Regulatory Reform

CONTENT

The bill would amend the Condominium Act to do the following:

-- Require an association of co-owners with more than $20,000 in annual revenue to have its books, records, and financial statements independently audited or reviewed by a certified public accountant.

-- Allow an association annually to opt out of that requirement by an affirmative vote of a majority of its members or by any means permitted under the association's bylaws.

-- Delete a provision that requires an association's books and records to be audited or reviewed annually by independent accountants, but specifies that those audits need not be certified.

-- Include financial statements in a provision requiring certain documents to be available for examination by co-owners and mortgagees.

MCL 559.157                                                           Legislative Analyst:  Patrick Affholter

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:  9-23-13                                                   Fiscal Analyst:  Dan O'Connor

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.