CS/CS/HB 419

1	A bill to be entitled
2	An act relating to condominiums; creating s. 627.714,
3	F.S.; requiring coverage under a condominium unit owner's
4	residential property insurance policy to include a
5	specified amount of loss-assessment coverage; requiring
6	each policy to contain a provision stating that such
7	coverage is excess coverage; amending s. 718.111, F.S.;
8	requiring coverage for certain personal property to be the
9	responsibility of the condominium unit owner under certain
10	circumstances; revising board meeting notice requirements;
11	requiring insurance policies issued or renewed on or after
12	a specified date to conform to specified loss-assessment
13	coverage requirements; revising and deleting provisions
14	relating to hazard or casualty insurance coverage
15	requirements, to conform; deleting a provision requiring
16	condominium associations to request evidence of a
17	currently effective insurance policy from unit owners;
18	deleting a provision requiring the condominium association
19	to be an additional named insured and loss payee on all
20	casualty insurance policies issued to unit owners in the
21	condominium operated by the association; amending s.
22	718.112, F.S.; revising requirements for the reappointment
23	of certain board members; revising board eligibility
24	requirements; revising notice requirements for board
25	candidates; establishing requirements for newly elected
26	board members; extending a period in which condominium
27	common areas do not have to be retrofitted with sprinkler
28	systems; providing that certain directors and officers
29	delinquent in the payment of any fee, fine, or regular or
30	special assessments shall be deemed to have abandoned
31	their office; providing an effective date.
32
33	Be It Enacted by the Legislature of the State of Florida:
34
35	Section 1.  Section 627.714, Florida Statutes, is created
36	to read:
37	627.714  Condominium unit owner's coverage; loss-assessment
38	coverage required.--Coverage under a condominium unit owner's
39	residential property insurance policy shall include property
40	loss-assessment coverage of at least $2,000 per occurrence for
41	an assessment made as a result of a direct loss to the property
42	owned by all members of the association collectively when such
43	loss is the type of loss covered by the unit owner's residential
44	property insurance policy, up to the limit of liability in
45	effect at the time of the assessment. Every individual unit
46	owner's residential property insurance policy must contain a
47	provision stating that the coverage afforded by the policy is
48	excess coverage over the amount recoverable under any other
49	policy covering the same property.
50	Section 2.  Paragraphs (a), (b), (c), (d), (f), (g), (j),
51	and (n) of subsection (11) of section 718.111, Florida Statutes,
52	are amended to read:
53	718.111  The association.--
54	(11)  INSURANCE.--In order to protect the safety, health,
55	and welfare of the people of the State of Florida and to ensure
56	consistency in the provision of insurance coverage to
57	condominiums and their unit owners, this subsection applies to
58	every residential condominium in the state, regardless of the
59	date of its declaration of condominium. It is the intent of the
60	Legislature to encourage lower or stable insurance premiums for
61	associations described in this subsection.
62	(a)  Adequate property hazard insurance, regardless of any
63	requirement in the declaration of condominium for coverage by
64	the association for full insurable value, replacement cost, or
65	similar coverage, shall be based upon the replacement cost of
66	the property to be insured as determined by an independent
67	insurance appraisal or update of a prior appraisal. The
68	replacement cost full insurable value shall be determined at
69	least once every 36 months.
70	1.  An association or group of associations may provide
71	adequate property hazard insurance through a self-insurance fund
72	that complies with the requirements of ss. 624.460-624.488.
73	2.  The association may also provide adequate property
74	hazard insurance coverage for a group of no fewer than three
75	communities created and operating under this chapter, chapter
76	719, chapter 720, or chapter 721 by obtaining and maintaining
77	for such communities insurance coverage sufficient to cover an
78	amount equal to the probable maximum loss for the communities
79	for a 250-year windstorm event. Such probable maximum loss must
80	be determined through the use of a competent model that has been
81	accepted by the Florida Commission on Hurricane Loss Projection
82	Methodology. No policy or program providing such coverage shall
83	be issued or renewed after July 1, 2008, unless it has been
84	reviewed and approved by the Office of Insurance Regulation. The
85	review and approval shall include approval of the policy and
86	related forms pursuant to ss. 627.410 and 627.411, approval of
87	the rates pursuant to s. 627.062, a determination that the loss
88	model approved by the commission was accurately and
89	appropriately applied to the insured structures to determine the
90	250-year probable maximum loss, and a determination that
91	complete and accurate disclosure of all material provisions is
92	provided to condominium unit owners prior to execution of the
93	agreement by a condominium association.
94	3.  When determining the adequate amount of property hazard
95	insurance coverage, the association may consider deductibles as
96	determined by this subsection.
97	(b)  If an association is a developer-controlled
98	association, the association shall exercise its best efforts to
99	obtain and maintain insurance as described in paragraph (a).
100	Failure to obtain and maintain adequate property hazard
101	insurance during any period of developer control constitutes a
102	breach of fiduciary responsibility by the developer-appointed
103	members of the board of directors of the association, unless the
104	members can show that despite such failure, they have made their
105	best efforts to maintain the required coverage.
106	(c)  Policies may include deductibles as determined by the
107	board.
108	1.  The deductibles shall be consistent with industry
109	standards and prevailing practice for communities of similar
110	size and age, and having similar construction and facilities in
111	the locale where the condominium property is situated.
112	2.  The deductibles may be based upon available funds,
113	including reserve accounts, or predetermined assessment
114	authority at the time the insurance is obtained.
115	3.  The board may shall establish the amount of deductibles
116	based upon the level of available funds and predetermined
117	assessment authority at a meeting of the board. Such meeting
118	shall be open to all unit owners in the manner set forth in s.
119	718.112(2)(e). The notice of such meeting must state the
120	proposed deductible and the available funds and the assessment
121	authority relied upon by the board and estimate any potential
122	assessment amount against each unit, if any. The meeting
123	described in this paragraph may be held in conjunction with a
124	meeting to consider the proposed budget or an amendment thereto.
125	(d)  An association controlled by unit owners operating as
126	a residential condominium shall use its best efforts to obtain
127	and maintain adequate property insurance to protect the
128	association, the association property, the common elements, and
129	the condominium property that is required to be insured by the
130	association pursuant to this subsection.
131	(f)  Every property hazard insurance policy issued or
132	renewed on or after January 1, 2009, for the purpose of
133	protecting the condominium shall provide primary coverage for:
134	1.  all portions of the condominium property as originally
135	installed or replacement of like kind and quality, in accordance
136	with the original plans and specifications, and.
137	2.  all alterations or additions made to the condominium
138	property or association property pursuant to s. 718.113(2).
139	3.  The coverage shall exclude all personal property within
140	the unit or limited common elements, and floor, wall, and
141	ceiling coverings, electrical fixtures, appliances, water
142	heaters, water filters, built-in cabinets and countertops, and
143	window treatments, including curtains, drapes, blinds, hardware,
144	and similar window treatment components, or replacements of any
145	of the foregoing that are located within the boundaries of the
146	unit. Such property and any insurance therefor shall be the
147	responsibility of the unit owner, if required by this
148	subsection.
149	(g)  A condominium unit owner's policy issued after October
150	1, 2009, shall conform to the requirements of s. 627.714. Every
151	hazard insurance policy issued or renewed on or after January 1,
152	2009, to an individual unit owner must contain a provision
153	stating that the coverage afforded by such policy is excess
154	coverage over the amount recoverable under any other policy
155	covering the same property. Such policies must include special
156	assessment coverage of no less than $2,000 per occurrence. An
157	insurance policy issued to an individual unit owner providing
158	such coverage does not provide rights of subrogation against the
159	condominium association operating the condominium in which such
160	individual's unit is located.
161	1.  All improvements or additions to the condominium
162	property that benefit fewer than all unit owners shall be
163	insured by the unit owner or owners having the use thereof, or
164	may be insured by the association at the cost and expense of the
165	unit owners having the use thereof.
166	2.  The association shall require each owner to provide
167	evidence of a currently effective policy of hazard and liability
168	insurance upon request, but not more than once per year. Upon
169	the failure of an owner to provide a certificate of insurance
170	issued by an insurer approved to write such insurance in this
171	state within 30 days after the date on which a written request
172	is delivered, the association may purchase a policy of insurance
173	on behalf of an owner. The cost of such a policy, together with
174	reconstruction costs undertaken by the association but which are
175	the responsibility of the unit owner, may be collected in the
176	manner provided for the collection of assessments in s. 718.116.
177	1.3.  All reconstruction work after a property casualty
178	loss shall be undertaken by the association except as otherwise
179	authorized in this section. A unit owner may undertake
180	reconstruction work on portions of the unit with the prior
181	written consent of the board of administration. However, such
182	work may be conditioned upon the approval of the repair methods,
183	the qualifications of the proposed contractor, or the contract
184	that is used for that purpose. A unit owner shall obtain all
185	required governmental permits and approvals prior to commencing
186	reconstruction.
187	2.4.  Unit owners are responsible for the cost of
188	reconstruction of any portions of the condominium property for
189	which the unit owner is required to carry property casualty
190	insurance, and any such reconstruction work undertaken by the
191	association shall be chargeable to the unit owner and
192	enforceable as an assessment pursuant to s. 718.116. The
193	association must be an additional named insured and loss payee
194	on all casualty insurance policies issued to unit owners in the
195	condominium operated by the association.
196	3.5.  A multicondominium association may elect, by a
197	majority vote of the collective members of the condominiums
198	operated by the association, to operate such condominiums as a
199	single condominium for purposes of insurance matters, including,
200	but not limited to, the purchase of the property hazard
201	insurance required by this section and the apportionment of
202	deductibles and damages in excess of coverage. The election to
203	aggregate the treatment of insurance premiums, deductibles, and
204	excess damages constitutes an amendment to the declaration of
205	all condominiums operated by the association, and the costs of
206	insurance shall be stated in the association budget. The
207	amendments shall be recorded as required by s. 718.110.
208	(j)  Any portion of the condominium property required to be
209	insured by the association against property casualty loss
210	pursuant to paragraph (f) which is damaged by casualty shall be
211	reconstructed, repaired, or replaced as necessary by the
212	association as a common expense. All property hazard insurance
213	deductibles, uninsured losses, and other damages in excess of
214	property hazard insurance coverage under the property hazard
215	insurance policies maintained by the association are a common
216	expense of the condominium, except that:
217	1.  A unit owner is responsible for the costs of repair or
218	replacement of any portion of the condominium property not paid
219	by insurance proceeds, if such damage is caused by intentional
220	conduct, negligence, or failure to comply with the terms of the
221	declaration or the rules of the association by a unit owner, the
222	members of his or her family, unit occupants, tenants, guests,
223	or invitees, without compromise of the subrogation rights of any
224	insurer as set forth in paragraph (g).
225	2.  The provisions of subparagraph 1. regarding the
226	financial responsibility of a unit owner for the costs of
227	repairing or replacing other portions of the condominium
228	property also apply to the costs of repair or replacement of
229	personal property of other unit owners or the association, as
230	well as other property, whether real or personal, which the unit
231	owners are required to insure under paragraph (g).
232	3.  To the extent the cost of repair or reconstruction for
233	which the unit owner is responsible under this paragraph is
234	reimbursed to the association by insurance proceeds, and, to the
235	extent the association has collected the cost of such repair or
236	reconstruction from the unit owner, the association shall
237	reimburse the unit owner without the waiver of any rights of
238	subrogation.
239	4.  The association is not obligated to pay for repair or
240	reconstruction or repairs of property casualty losses as a
241	common expense if the property casualty losses were known or
242	should have been known to a unit owner and were not reported to
243	the association until after the insurance claim of the
244	association for that property casualty was settled or resolved
245	with finality, or denied on the basis that it was untimely
246	filed.
247	(n)  The association is not obligated to pay for any
248	reconstruction or repair expenses due to property casualty loss
249	to any improvements installed by a current or former owner of
250	the unit or by the developer if the improvement benefits only
251	the unit for which it was installed and is not part of the
252	standard improvements installed by the developer on all units as
253	part of original construction, whether or not such improvement
254	is located within the unit. This paragraph does not relieve any
255	party of its obligations regarding recovery due under any
256	insurance implemented specifically for any such improvements.
257	Section 3.  Paragraphs (b), (d), (l), and (n) of subsection
258	(2) of section 718.112, Florida Statutes, are amended to read:
259	718.112  Bylaws.--
260	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
261	following and, if they do not do so, shall be deemed to include
262	the following:
263	(b)  Quorum; voting requirements; proxies.--
264	1.  Unless a lower number is provided in the bylaws, the
265	percentage of voting interests required to constitute a quorum
266	at a meeting of the members shall be a majority of the voting
267	interests. Unless otherwise provided in this chapter or in the
268	declaration, articles of incorporation, or bylaws, and except as
269	provided in sub-subparagraph subparagraph (d)3.a., decisions
270	shall be made by owners of a majority of the voting interests
271	represented at a meeting at which a quorum is present.
272	2.  Except as specifically otherwise provided herein, after
273	January 1, 1992, unit owners may not vote by general proxy, but
274	may vote by limited proxies substantially conforming to a
275	limited proxy form adopted by the division. No voting interest
276	or consent right allocated to a unit owned by the association
277	shall be exercised or considered for any purpose, whether for a
278	quorum, an election, or otherwise. Limited proxies and general
279	proxies may be used to establish a quorum. Limited proxies shall
280	be used for votes taken to waive or reduce reserves in
281	accordance with subparagraph (f)2.; for votes taken to waive the
282	financial reporting requirements of s. 718.111(13); for votes
283	taken to amend the declaration pursuant to s. 718.110; for votes
284	taken to amend the articles of incorporation or bylaws pursuant
285	to this section; and for any other matter for which this chapter
286	requires or permits a vote of the unit owners. Except as
287	provided in paragraph (d), after January 1, 1992, no proxy,
288	limited or general, shall be used in the election of board
289	members. General proxies may be used for other matters for which
290	limited proxies are not required, and may also be used in voting
291	for nonsubstantive changes to items for which a limited proxy is
292	required and given. Notwithstanding the provisions of this
293	subparagraph, unit owners may vote in person at unit owner
294	meetings. Nothing contained herein shall limit the use of
295	general proxies or require the use of limited proxies for any
296	agenda item or election at any meeting of a timeshare
297	condominium association.
298	3.  Any proxy given shall be effective only for the
299	specific meeting for which originally given and any lawfully
300	adjourned meetings thereof. In no event shall any proxy be valid
301	for a period longer than 90 days after the date of the first
302	meeting for which it was given. Every proxy is revocable at any
303	time at the pleasure of the unit owner executing it.
304	4.  A member of the board of administration or a committee
305	may submit in writing his or her agreement or disagreement with
306	any action taken at a meeting that the member did not attend.
307	This agreement or disagreement may not be used as a vote for or
308	against the action taken and may not be used for the purposes of
309	creating a quorum.
310	5.  When any of the board or committee members meet by
311	telephone conference, those board or committee members attending
312	by telephone conference may be counted toward obtaining a quorum
313	and may vote by telephone. A telephone speaker must be used so
314	that the conversation of those board or committee members
315	attending by telephone may be heard by the board or committee
316	members attending in person as well as by any unit owners
317	present at a meeting.
318	(d)  Unit owner meetings.--
319	1.  There shall be an annual meeting of the unit owners
320	held at the location provided in the association bylaws and, if
321	the bylaws are silent as to the location, the meeting shall be
322	held within 45 miles of the condominium property. However, such
323	distance requirement does not apply to an association governing
324	a timeshare condominium. Unless the bylaws provide otherwise, a
325	vacancy on the board caused by the expiration of a director's
326	term shall be filled by electing a new board member, and the
327	election shall be by secret ballot; however, if the number of
328	vacancies equals or exceeds the number of candidates, no
329	election is required. The terms of all members of the board
330	shall expire at the annual meeting and such board members may
331	stand for reelection unless otherwise permitted by the bylaws.
332	In the event that the bylaws permit staggered terms of no more
333	than 2 years and upon approval of a majority of the total voting
334	interests, the association board members may serve 2-year
335	staggered terms. If the number no person is interested in or
336	demonstrates an intention to run for the position of a board
337	members member whose terms have term has expired according to
338	the provisions of this subparagraph exceeds the number of
339	eligible members showing interest in or demonstrating an
340	intention to run for the vacant positions, each such board
341	member whose term has expired shall become eligible for
342	reappointment be automatically reappointed to the board of
343	administration and need not stand for reelection. In a
344	condominium association of more than 10 units, coowners or co-
345	occupants of a unit may not serve as members of the board of
346	directors at the same time unless they own more than one unit.
347	Any unit owner desiring to be a candidate for board membership
348	shall comply with sub-subparagraph subparagraph 3.a. A person
349	who has been suspended or removed by the division under this
350	chapter, or who is delinquent in the payment of any fee, fine,
351	or special or regular assessment as provided in paragraph (n),
352	is not eligible for board membership. A person who has been
353	convicted of any felony in this state or in a United States
354	District or Territorial Court, or who has been convicted of any
355	offense in another jurisdiction that would be considered a
356	felony if committed in this state, is not eligible for board
357	membership unless such felon's civil rights have been restored
358	for a period of no less than 5 years as of the date on which
359	such person seeks election to the board. The validity of an
360	action by the board is not affected if it is later determined
361	that a member of the board is ineligible for board membership
362	due to having been convicted of a felony.
363	2.  The bylaws shall provide the method of calling meetings
364	of unit owners, including annual meetings. Written notice, which
365	notice must include an agenda, shall be mailed, hand delivered,
366	or electronically transmitted to each unit owner at least 14
367	days prior to the annual meeting and shall be posted in a
368	conspicuous place on the condominium property at least 14
369	continuous days preceding the annual meeting. Upon notice to the
370	unit owners, the board shall by duly adopted rule designate a
371	specific location on the condominium property or association
372	property upon which all notices of unit owner meetings shall be
373	posted; however, if there is no condominium property or
374	association property upon which notices can be posted, this
375	requirement does not apply. In lieu of or in addition to the
376	physical posting of notice of any meeting of the unit owners on
377	the condominium property, the association may, by reasonable
378	rule, adopt a procedure for conspicuously posting and repeatedly
379	broadcasting the notice and the agenda on a closed-circuit cable
380	television system serving the condominium association. However,
381	if broadcast notice is used in lieu of a notice posted
382	physically on the condominium property, the notice and agenda
383	must be broadcast at least four times every broadcast hour of
384	each day that a posted notice is otherwise required under this
385	section. When broadcast notice is provided, the notice and
386	agenda must be broadcast in a manner and for a sufficient
387	continuous length of time so as to allow an average reader to
388	observe the notice and read and comprehend the entire content of
389	the notice and the agenda. Unless a unit owner waives in writing
390	the right to receive notice of the annual meeting, such notice
391	shall be hand delivered, mailed, or electronically transmitted
392	to each unit owner. Notice for meetings and notice for all other
393	purposes shall be mailed to each unit owner at the address last
394	furnished to the association by the unit owner, or hand
395	delivered to each unit owner. However, if a unit is owned by
396	more than one person, the association shall provide notice, for
397	meetings and all other purposes, to that one address which the
398	developer initially identifies for that purpose and thereafter
399	as one or more of the owners of the unit shall so advise the
400	association in writing, or if no address is given or the owners
401	of the unit do not agree, to the address provided on the deed of
402	record. An officer of the association, or the manager or other
403	person providing notice of the association meeting, shall
404	provide an affidavit or United States Postal Service certificate
405	of mailing, to be included in the official records of the
406	association affirming that the notice was mailed or hand
407	delivered, in accordance with this provision.
408	3.a.  The members of the board shall be elected by written
409	ballot or voting machine. Proxies shall in no event be used in
410	electing the board, either in general elections or elections to
411	fill vacancies caused by recall, resignation, or otherwise,
412	unless otherwise provided in this chapter. Not less than 60 days
413	before a scheduled election, the association shall mail,
414	deliver, or electronically transmit, whether by separate
415	association mailing or included in another association mailing,
416	delivery, or transmission, including regularly published
417	newsletters, to each unit owner entitled to a vote, a first
418	notice of the date of the election along with a certification
419	form provided by the division attesting that he or she has read
420	and understands, to the best of his or her ability, the
421	governing documents of the association and the provisions of
422	this chapter and any applicable rules. Any unit owner or other
423	eligible person desiring to be a candidate for the board must
424	give written notice of intent to be a candidate to the
425	association not less than 40 days before a scheduled election.
426	Together with the written notice and agenda as set forth in
427	subparagraph 2., the association shall mail, deliver, or
428	electronically transmit a second notice of the election to all
429	unit owners entitled to vote therein, together with a ballot
430	which shall list all candidates. Upon request of a candidate,
431	the association shall include an information sheet, no larger
432	than 8 1/2 81/2 inches by 11 inches, which must be furnished by
433	the candidate not less than 35 days before the election, shall
434	along with the signed certification form provided for in this
435	subparagraph, to be included with the mailing, delivery, or
436	transmission of the ballot, with the costs of mailing, delivery,
437	or electronic transmission and copying to be borne by the
438	association. The association is not liable for the contents of
439	the information sheets prepared by the candidates. In order to
440	reduce costs, the association may print or duplicate the
441	information sheets on both sides of the paper. The division
442	shall by rule establish voting procedures consistent with the
443	provisions contained herein, including rules establishing
444	procedures for giving notice by electronic transmission and
445	rules providing for the secrecy of ballots. Elections shall be
446	decided by a plurality of those ballots cast. There shall be no
447	quorum requirement; however, at least 20 percent of the eligible
448	voters must cast a ballot in order to have a valid election of
449	members of the board. No unit owner shall permit any other
450	person to vote his or her ballot, and any such ballots
451	improperly cast shall be deemed invalid, provided any unit owner
452	who violates this provision may be fined by the association in
453	accordance with s. 718.303. A unit owner who needs assistance in
454	casting the ballot for the reasons stated in s. 101.051 may
455	obtain assistance in casting the ballot. The regular election
456	shall occur on the date of the annual meeting. The provisions of
457	this sub-subparagraph subparagraph shall not apply to timeshare
458	condominium associations. Notwithstanding the provisions of this
459	sub-subparagraph subparagraph, an election is not required
460	unless more candidates file notices of intent to run or are
461	nominated than board vacancies exist.
462	b.  Within 90 days after being elected to the board, each
463	newly elected director shall certify in writing to the secretary
464	of the association that he or she has read the association's
465	declarations of covenants and restrictions, articles of
466	incorporation, bylaws, and current written policies; that he or
467	she will work to uphold such documents and policies to the best
468	of his or her ability; and that he or she will faithfully
469	discharge his or her fiduciary responsibility to the
470	association's members. In lieu of this written certification,
471	the newly elected director may submit a certificate of
472	satisfactory completion of the educational curriculum
473	administered by a division-approved condominium education
474	provider. Failure to timely file the written certification or
475	educational certificate automatically disqualifies the director
476	from service on the board. The secretary shall cause the
477	association to retain a director's written certification or
478	educational certificate for inspection by the members for 5
479	years after a director's election. Failure to have such written
480	certification or educational certificate on file does not affect
481	the validity of any appropriate action.
482	4.  Any approval by unit owners called for by this chapter
483	or the applicable declaration or bylaws, including, but not
484	limited to, the approval requirement in s. 718.111(8), shall be
485	made at a duly noticed meeting of unit owners and shall be
486	subject to all requirements of this chapter or the applicable
487	condominium documents relating to unit owner decisionmaking,
488	except that unit owners may take action by written agreement,
489	without meetings, on matters for which action by written
490	agreement without meetings is expressly allowed by the
491	applicable bylaws or declaration or any statute that provides
492	for such action.
493	5.  Unit owners may waive notice of specific meetings if
494	allowed by the applicable bylaws or declaration or any statute.
495	If authorized by the bylaws, notice of meetings of the board of
496	administration, unit owner meetings, except unit owner meetings
497	called to recall board members under paragraph (j), and
498	committee meetings may be given by electronic transmission to
499	unit owners who consent to receive notice by electronic
500	transmission.
501	6.  Unit owners shall have the right to participate in
502	meetings of unit owners with reference to all designated agenda
503	items. However, the association may adopt reasonable rules
504	governing the frequency, duration, and manner of unit owner
505	participation.
506	7.  Any unit owner may tape record or videotape a meeting
507	of the unit owners subject to reasonable rules adopted by the
508	division.
509	8.  Unless otherwise provided in the bylaws, any vacancy
510	occurring on the board before the expiration of a term may be
511	filled by the affirmative vote of the majority of the remaining
512	directors, even if the remaining directors constitute less than
513	a quorum, or by the sole remaining director. In the alternative,
514	a board may hold an election to fill the vacancy, in which case
515	the election procedures must conform to the requirements of sub-
516	subparagraph subparagraph 3.a. unless the association governs 10
517	units or fewer less and has opted out of the statutory election
518	process, in which case the bylaws of the association control.
519	Unless otherwise provided in the bylaws, a board member
520	appointed or elected under this section shall fill the vacancy
521	for the unexpired term of the seat being filled. Filling
522	vacancies created by recall is governed by paragraph (j) and
523	rules adopted by the division.
524
525	Notwithstanding subparagraph subparagraphs (b)2. and sub-
526	subparagraph (d)3.a., an association of 10 or fewer units may,
527	by the affirmative vote of a majority of the total voting
528	interests, provide for different voting and election procedures
529	in its bylaws, which vote may be by a proxy specifically
530	delineating the different voting and election procedures. The
531	different voting and election procedures may provide for
532	elections to be conducted by limited or general proxy.
533	(l)  Certificate of compliance.--There shall be a provision
534	that a certificate of compliance from a licensed electrical
535	contractor or electrician may be accepted by the association's
536	board as evidence of compliance of the condominium units with
537	the applicable fire and life safety code. Notwithstanding the
538	provisions of chapter 633 or of any other code, statute,
539	ordinance, administrative rule, or regulation, or any
540	interpretation of the foregoing, an association, condominium, or
541	unit owner is not obligated to retrofit the common elements or
542	units of a residential condominium with a fire sprinkler system
543	or other engineered lifesafety system in a building that has
544	been certified for occupancy by the applicable governmental
545	entity, if the unit owners have voted to forego such
546	retrofitting and engineered lifesafety system by the affirmative
547	vote of two-thirds of all voting interests in the affected
548	condominium. However, a condominium association may not vote to
549	forego the retrofitting with a fire sprinkler system of common
550	areas in a high-rise building. For purposes of this subsection,
551	the term "high-rise building" means a building that is greater
552	than 75 feet in height where the building height is measured
553	from the lowest level of fire department access to the floor of
554	the highest occupiable story. For purposes of this subsection,
555	the term "common areas" means any enclosed hallway, corridor,
556	lobby, stairwell, or entryway. In no event shall the local
557	authority having jurisdiction require completion of retrofitting
558	of common areas with a sprinkler system before the end of 2025
559	2014.
560	1.  A vote to forego retrofitting may be obtained by
561	limited proxy or by a ballot personally cast at a duly called
562	membership meeting, or by execution of a written consent by the
563	member, and shall be effective upon the recording of a
564	certificate attesting to such vote in the public records of the
565	county where the condominium is located. The association shall
566	mail, hand deliver, or electronically transmit to each unit
567	owner written notice at least 14 days prior to such membership
568	meeting in which the vote to forego retrofitting of the required
569	fire sprinkler system is to take place. Within 30 days after the
570	association's opt-out vote, notice of the results of the opt-out
571	vote shall be mailed, hand delivered, or electronically
572	transmitted to all unit owners. Evidence of compliance with this
573	30-day notice shall be made by an affidavit executed by the
574	person providing the notice and filed among the official records
575	of the association. After such notice is provided to each owner,
576	a copy of such notice shall be provided by the current owner to
577	a new owner prior to closing and shall be provided by a unit
578	owner to a renter prior to signing a lease.
579	2.  As part of the information collected annually from
580	condominiums, the division shall require condominium
581	associations to report the membership vote and recording of a
582	certificate under this subsection and, if retrofitting has been
583	undertaken, the per-unit cost of such work. The division shall
584	annually report to the Division of State Fire Marshal of the
585	Department of Financial Services the number of condominiums that
586	have elected to forego retrofitting.
587	(n)  Director or officer delinquencies.--A director or
588	officer more than 90 days delinquent in the payment of any fee,
589	fine, or regular or special assessments shall be deemed to have
590	abandoned the office, creating a vacancy in the office to be
591	filled according to law.
592	Section 4.  This act shall take effect July 1, 2009.

CODING: Words stricken are deletions; words underlined are additions.