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

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