Florida Senate - 2009 CS for CS for SB 714
By the Committees on General Government Appropriations; and
Regulated Industries; and Senators Jones, Fasano, and Ring
601-05035-09 2009714c2
1 A bill to be entitled
2 An act relating to condominiums; creating s. 627.714,
3 F.S.; requiring that coverage under a unit owner’s
4 policy for certain assessments include at least a
5 minimum amount of loss assessment coverage; requiring
6 that every property insurance policy to an individual
7 unit owner contain a specified provision; amending s.
8 718.111, F.S.; requiring that adequate property
9 insurance be based upon the replacement cost of the
10 property to be insured as determined by an independent
11 appraisal or update of a prior appraisal; requiring
12 that such replacement cost be determined at least once
13 within a specified period; providing means by which an
14 association may provide adequate property insurance;
15 providing that certain property insurance policies or
16 programs are not subject to review and approval by the
17 Office of Insurance Regulation; prohibiting such
18 coverage or program from existing beyond a specified
19 date; authorizing an association to consider
20 deductibles when determining an adequate amount of
21 property insurance; providing that failure to maintain
22 adequate property insurance constitutes a breach of
23 fiduciary duty by the members of the board of
24 directors of an association; revising the procedures
25 for the board to establish the amount of deductibles;
26 requiring that an association controlled by unit
27 owners operating as a residential condominium use its
28 best efforts to obtain and maintain adequate property
29 insurance to protect the association and certain
30 property; requiring that every property insurance
31 policy issued or renewed on or after a specified date
32 provide certain coverage; excluding certain items from
33 such requirement; providing that excluded items and
34 any insurance thereupon are the responsibility of the
35 unit owner; requiring that condominium unit owner’s
36 policies conform to certain provisions of state law;
37 deleting provisions relating to certain hazard and
38 casualty insurance policies; conforming provisions to
39 changes made by the act; amending s. 718.112, F.S.;
40 conforming cross-references; revising requirements for
41 the reappointment of certain board members; revising
42 board eligibility requirements; revising notice
43 requirements for board candidates; establishing
44 requirements for newly elected board members;
45 extending the period during which condominium common
46 areas do not have to be retrofitted with sprinkler
47 systems; providing that certain directors and officers
48 delinquent in the payment of any fee, fine, or regular
49 or special assessments shall be deemed to have
50 abandoned their office; providing an effective date.
51
52 Be It Enacted by the Legislature of the State of Florida:
53
54 Section 1. Section 627.714, Florida Statutes, is created to
55 read:
56 627.714 Residential condominium unit owner coverage; loss
57 assessment coverage required; excess coverage provision
58 required.—For policies issued or renewed on or after July 1,
59 2009, coverage under a unit owner’s residential property policy
60 shall include property loss assessment coverage of at least
61 $2,000 for all assessments made as a result of the same direct
62 loss to the property, regardless of the number of assessments,
63 owned by all members of the association collectively when such
64 loss is of the type of loss covered by the unit owner’s
65 residential property insurance policy, to which a deductible
66 shall apply of no more than $250 per direct property loss. If a
67 deductible was or will be applied to other property loss
68 sustained by the unit owner resulting from the same direct loss
69 to the property, no deductible shall apply to the loss
70 assessment coverage. Every individual unit owner’s residential
71 property policy must contain a provision stating that the
72 coverage afforded by such policy is excess coverage over the
73 amount recoverable under any other policy covering the same
74 property.
75 Section 2. Paragraphs (a), (b), (c), (d), (f), (g), (j),
76 and (n) of subsection (11) of section 718.111, Florida Statutes,
77 are amended to read:
78 718.111 The association.—
79 (11) INSURANCE.—In order to protect the safety, health, and
80 welfare of the people of the State of Florida and to ensure
81 consistency in the provision of insurance coverage to
82 condominiums and their unit owners, this subsection applies to
83 every residential condominium in the state, regardless of the
84 date of its declaration of condominium. It is the intent of the
85 Legislature to encourage lower or stable insurance premiums for
86 associations described in this subsection.
87 (a) Adequate property hazard insurance, regardless of any
88 requirement in the declaration of condominium for coverage by
89 the association for full insurable value, replacement cost, or
90 similar coverage, shall be based upon the replacement cost of
91 the property to be insured as determined by an independent
92 insurance appraisal or update of a prior appraisal. The
93 replacement cost full insurable value shall be determined at
94 least once every 36 months.
95 1. An association or group of associations may provide
96 adequate property hazard insurance through a self-insurance fund
97 that complies with the requirements of ss. 624.460-624.488.
98 2. The association may also provide adequate property
99 hazard insurance coverage for a group of no fewer than three
100 communities created and operating under this chapter, chapter
101 719, chapter 720, or chapter 721 by obtaining and maintaining
102 for such communities insurance coverage sufficient to cover an
103 amount equal to the probable maximum loss for the communities
104 for a 250-year windstorm event. Such probable maximum loss must
105 be determined through the use of a competent model that has been
106 accepted by the Florida Commission on Hurricane Loss Projection
107 Methodology. No policy or program providing such coverage shall
108 be issued or renewed after July 1, 2008, unless it has been
109 reviewed and approved by the Office of Insurance Regulation. The
110 review and approval shall include approval of the policy and
111 related forms pursuant to ss. 627.410 and 627.411, approval of
112 the rates pursuant to s. 627.062, a determination that the loss
113 model approved by the commission was accurately and
114 appropriately applied to the insured structures to determine the
115 250-year probable maximum loss, and a determination that
116 complete and accurate disclosure of all material provisions is
117 provided to condominium unit owners prior to execution of the
118 agreement by a condominium association. A property insurance
119 policy or program originally issued before January 1, 2000,
120 which has provided uninterrupted property insurance coverage and
121 provided coverage for a group of no fewer than three communities
122 is not subject to review and approval by the Office of Insurance
123 Regulation until renewed after July 1, 2009. Such coverage or
124 program may not exist beyond July 1, 2010.
125 3. When determining the adequate amount of property hazard
126 insurance coverage, the association may consider deductibles as
127 determined by this subsection.
128 (b) If an association is a developer-controlled
129 association, the association shall exercise its best efforts to
130 obtain and maintain insurance as described in paragraph (a).
131 Failure to obtain and maintain adequate property hazard
132 insurance during any period of developer control constitutes a
133 breach of fiduciary responsibility by the developer-appointed
134 members of the board of directors of the association, unless the
135 members can show that despite such failure, they have made their
136 best efforts to maintain the required coverage.
137 (c) Policies may include deductibles as determined by the
138 board.
139 1. The deductibles shall be consistent with industry
140 standards and prevailing practice for communities of similar
141 size and age, and having similar construction and facilities in
142 the locale where the condominium property is situated.
143 2. The deductibles may be based upon available funds,
144 including reserve accounts, or predetermined assessment
145 authority at the time the insurance is obtained.
146 3. The board shall establish the amount of deductibles
147 based upon the level of available funds and predetermined
148 assessment authority at a meeting of the board. Such meeting
149 shall be open to all unit owners in the manner set forth in s.
150 718.112(2)(e). The notice of such meeting must state the
151 proposed deductible and the available funds and the assessment
152 authority relied upon by the board and estimate any potential
153 assessment amount against each unit, if any. The meeting
154 described in this paragraph may be held in conjunction with a
155 meeting to consider the proposed budget or an amendment thereto.
156 (d) An association controlled by unit owners operating as a
157 residential condominium shall use its best efforts to obtain and
158 maintain adequate property insurance to protect the association,
159 the association property, the common elements, and the
160 condominium property that is required to be insured by the
161 association pursuant to this subsection.
162 (f) Every property hazard insurance policy issued or
163 renewed on or after January 1, 2009, for the purpose of
164 protecting the condominium shall provide primary coverage for:
165 1. All portions of the condominium property as originally
166 installed or replacement of like kind and quality, in accordance
167 with the original plans and specifications.
168 2. All alterations or additions made to the condominium
169 property or association property pursuant to s. 718.113(2).
170 3. The coverage shall exclude all personal property within the
171 unit or limited common elements, and floor, wall, and ceiling
172 coverings, electrical fixtures, appliances, water heaters, water
173 filters, built-in cabinets and countertops, and window
174 treatments, including curtains, drapes, blinds, hardware, and
175 similar window treatment components, or replacements of any of
176 the foregoing which are located within the boundaries of the
177 unit and serve only such unit. Such property and any insurance
178 thereupon shall be the responsibility of the unit owner.
179 (g) A condominium unit owner’s policy shall conform to the
180 requirements of s. 627.714. Every hazard insurance policy issued
181 or renewed on or after January 1, 2009, to an individual unit
182 owner must contain a provision stating that the coverage
183 afforded by such policy is excess coverage over the amount
184 recoverable under any other policy covering the same property.
185 Such policies must include special assessment coverage of no
186 less than $2,000 per occurrence. An insurance policy issued to
187 an individual unit owner providing such coverage does not
188 provide rights of subrogation against the condominium
189 association operating the condominium in which such individual’s
190 unit is located.
191 1. All improvements or additions to the condominium
192 property that benefit fewer than all unit owners shall be
193 insured by the unit owner or owners having the use thereof, or
194 may be insured by the association at the cost and expense of the
195 unit owners having the use thereof.
196 2. The association shall require each owner to provide
197 evidence of a currently effective policy of hazard and liability
198 insurance upon request, but not more than once per year. Upon
199 the failure of an owner to provide a certificate of insurance
200 issued by an insurer approved to write such insurance in this
201 state within 30 days after the date on which a written request
202 is delivered, the association may purchase a policy of insurance
203 on behalf of an owner. The cost of such a policy, together with
204 reconstruction costs undertaken by the association but which are
205 the responsibility of the unit owner, may be collected in the
206 manner provided for the collection of assessments in s. 718.116.
207 1.3. All reconstruction work after a property casualty loss
208 shall be undertaken by the association except as otherwise
209 authorized in this section. A unit owner may undertake
210 reconstruction work on portions of the unit with the prior
211 written consent of the board of administration. However, such
212 work may be conditioned upon the approval of the repair methods,
213 the qualifications of the proposed contractor, or the contract
214 that is used for that purpose. A unit owner shall obtain all
215 required governmental permits and approvals prior to commencing
216 reconstruction.
217 2.4. Unit owners are responsible for the cost of
218 reconstruction of any portions of the condominium property for
219 which the unit owner is required to carry property casualty
220 insurance, and any such reconstruction work undertaken by the
221 association shall be chargeable to the unit owner and
222 enforceable as an assessment pursuant to s. 718.116. The
223 association must be an additional named insured and loss payee
224 on all casualty insurance policies issued to unit owners in the
225 condominium operated by the association.
226 3.5. A multicondominium association may elect, by a
227 majority vote of the collective members of the condominiums
228 operated by the association, to operate such condominiums as a
229 single condominium for purposes of insurance matters, including,
230 but not limited to, the purchase of the property hazard
231 insurance required by this section and the apportionment of
232 deductibles and damages in excess of coverage. The election to
233 aggregate the treatment of insurance premiums, deductibles, and
234 excess damages constitutes an amendment to the declaration of
235 all condominiums operated by the association, and the costs of
236 insurance shall be stated in the association budget. The
237 amendments shall be recorded as required by s. 718.110.
238 (j) Any portion of the condominium property required to be
239 insured by the association against property casualty loss
240 pursuant to paragraph (f) which is damaged by casualty shall be
241 reconstructed, repaired, or replaced as necessary by the
242 association as a common expense. All property hazard insurance
243 deductibles, uninsured losses, and other damages in excess of
244 property hazard insurance coverage under the property hazard
245 insurance policies maintained by the association are a common
246 expense of the condominium, except that:
247 1. A unit owner is responsible for the costs of repair or
248 replacement of any portion of the condominium property not paid
249 by insurance proceeds, if such damage is caused by intentional
250 conduct, negligence, or failure to comply with the terms of the
251 declaration or the rules of the association by a unit owner, the
252 members of his or her family, unit occupants, tenants, guests,
253 or invitees, without compromise of the subrogation rights of any
254 insurer as set forth in paragraph (g).
255 2. The provisions of subparagraph 1. regarding the
256 financial responsibility of a unit owner for the costs of
257 repairing or replacing other portions of the condominium
258 property also apply to the costs of repair or replacement of
259 personal property of other unit owners or the association, as
260 well as other property, whether real or personal, which the unit
261 owners are required to insure under paragraph (g).
262 3. To the extent the cost of repair or reconstruction for
263 which the unit owner is responsible under this paragraph is
264 reimbursed to the association by insurance proceeds, and, to the
265 extent the association has collected the cost of such repair or
266 reconstruction from the unit owner, the association shall
267 reimburse the unit owner without the waiver of any rights of
268 subrogation.
269 4. The association is not obligated to pay for repair or
270 reconstruction or repairs of property casualty losses as a
271 common expense if the property casualty losses were known or
272 should have been known to a unit owner and were not reported to
273 the association until after the insurance claim of the
274 association for that property casualty was settled or resolved
275 with finality, or denied on the basis that it was untimely
276 filed.
277 (n) The association is not obligated to pay for any
278 reconstruction or repair expenses due to property casualty loss
279 to any improvements installed by a current or former owner of
280 the unit or by the developer if the improvement benefits only
281 the unit for which it was installed and is not part of the
282 standard improvements installed by the developer on all units as
283 part of original construction, whether or not such improvement
284 is located within the unit. This paragraph does not relieve any
285 party of its obligations regarding recovery due under any
286 insurance implemented specifically for any such improvements.
287 Section 3. Paragraphs (b), (d), (l), and (n) of subsection
288 (2) of section 718.112, Florida Statutes, are amended to read:
289 718.112 Bylaws.—
290 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
291 following and, if they do not do so, shall be deemed to include
292 the following:
293 (b) Quorum; voting requirements; proxies.—
294 1. Unless a lower number is provided in the bylaws, the
295 percentage of voting interests required to constitute a quorum
296 at a meeting of the members shall be a majority of the voting
297 interests. Unless otherwise provided in this chapter or in the
298 declaration, articles of incorporation, or bylaws, and except as
299 provided in sub-subparagraph subparagraph (d)3.a., decisions
300 shall be made by owners of a majority of the voting interests
301 represented at a meeting at which a quorum is present.
302 2. Except as specifically otherwise provided herein, after
303 January 1, 1992, unit owners may not vote by general proxy, but
304 may vote by limited proxies substantially conforming to a
305 limited proxy form adopted by the division. No voting interest
306 or consent right allocated to a unit owned by the association
307 shall be exercised or considered for any purpose, whether for a
308 quorum, an election, or otherwise. Limited proxies and general
309 proxies may be used to establish a quorum. Limited proxies shall
310 be used for votes taken to waive or reduce reserves in
311 accordance with subparagraph (f)2.; for votes taken to waive the
312 financial reporting requirements of s. 718.111(13); for votes
313 taken to amend the declaration pursuant to s. 718.110; for votes
314 taken to amend the articles of incorporation or bylaws pursuant
315 to this section; and for any other matter for which this chapter
316 requires or permits a vote of the unit owners. Except as
317 provided in paragraph (d), after January 1, 1992, no proxy,
318 limited or general, shall be used in the election of board
319 members. General proxies may be used for other matters for which
320 limited proxies are not required, and may also be used in voting
321 for nonsubstantive changes to items for which a limited proxy is
322 required and given. Notwithstanding the provisions of this
323 subparagraph, unit owners may vote in person at unit owner
324 meetings. Nothing contained herein shall limit the use of
325 general proxies or require the use of limited proxies for any
326 agenda item or election at any meeting of a timeshare
327 condominium association.
328 3. Any proxy given shall be effective only for the specific
329 meeting for which originally given and any lawfully adjourned
330 meetings thereof. In no event shall any proxy be valid for a
331 period longer than 90 days after the date of the first meeting
332 for which it was given. Every proxy is revocable at any time at
333 the pleasure of the unit owner executing it.
334 4. A member of the board of administration or a committee
335 may submit in writing his or her agreement or disagreement with
336 any action taken at a meeting that the member did not attend.
337 This agreement or disagreement may not be used as a vote for or
338 against the action taken and may not be used for the purposes of
339 creating a quorum.
340 5. When any of the board or committee members meet by
341 telephone conference, those board or committee members attending
342 by telephone conference may be counted toward obtaining a quorum
343 and may vote by telephone. A telephone speaker must be used so
344 that the conversation of those board or committee members
345 attending by telephone may be heard by the board or committee
346 members attending in person as well as by any unit owners
347 present at a meeting.
348 (d) Unit owner meetings.—
349 1. There shall be an annual meeting of the unit owners held
350 at the location provided in the association bylaws and, if the
351 bylaws are silent as to the location, the meeting shall be held
352 within 45 miles of the condominium property. However, such
353 distance requirement does not apply to an association governing
354 a timeshare condominium. Unless the bylaws provide otherwise, a
355 vacancy on the board caused by the expiration of a director’s
356 term shall be filled by electing a new board member, and the
357 election shall be by secret ballot; however, if the number of
358 vacancies equals or exceeds the number of candidates, no
359 election is required. The terms of all members of the board
360 shall expire at the annual meeting and such board members may
361 stand for reelection unless otherwise permitted by the bylaws.
362 In the event that the bylaws permit staggered terms of no more
363 than 2 years and upon approval of a majority of the total voting
364 interests, the association board members may serve 2-year
365 staggered terms. If the number no person is interested in or
366 demonstrates an intention to run for the position of a board
367 members member whose terms have term has expired according to
368 the provisions of this subparagraph exceeds the number of
369 eligible members showing interest in or demonstrating an
370 intention to run for the vacant positions, each such board
371 member whose term has expired shall become eligible for
372 reappointment be automatically reappointed to the board of
373 administration and need not stand for reelection. In a
374 condominium association of more than 10 units, coowners of a
375 unit may not serve as members of the board of directors at the
376 same time unless they own more than one unit and are not co
377 occupants of a unit. Any unit owner desiring to be a candidate
378 for board membership shall comply with sub-subparagraph
379 subparagraph 3.a. A person who has been suspended or removed by
380 the division under this chapter, or who is delinquent in the
381 payment of any fee, fine, or special or regular assessment as
382 provided in paragraph (n), is not eligible for board membership.
383 A person who has been convicted of any felony in this state or
384 in a United States District or Territorial Court, or who has
385 been convicted of any offense in another jurisdiction that would
386 be considered a felony if committed in this state, is not
387 eligible for board membership unless such felon’s civil rights
388 have been restored for a period of no less than 5 years as of
389 the date on which such person seeks election to the board. The
390 validity of an action by the board is not affected if it is
391 later determined that a member of the board is ineligible for
392 board membership due to having been convicted of a felony.
393 2. The bylaws shall provide the method of calling meetings
394 of unit owners, including annual meetings. Written notice, which
395 notice must include an agenda, shall be mailed, hand delivered,
396 or electronically transmitted to each unit owner at least 14
397 days prior to the annual meeting and shall be posted in a
398 conspicuous place on the condominium property at least 14
399 continuous days preceding the annual meeting. Upon notice to the
400 unit owners, the board shall by duly adopted rule designate a
401 specific location on the condominium property or association
402 property upon which all notices of unit owner meetings shall be
403 posted; however, if there is no condominium property or
404 association property upon which notices can be posted, this
405 requirement does not apply. In lieu of or in addition to the
406 physical posting of notice of any meeting of the unit owners on
407 the condominium property, the association may, by reasonable
408 rule, adopt a procedure for conspicuously posting and repeatedly
409 broadcasting the notice and the agenda on a closed-circuit cable
410 television system serving the condominium association. However,
411 if broadcast notice is used in lieu of a notice posted
412 physically on the condominium property, the notice and agenda
413 must be broadcast at least four times every broadcast hour of
414 each day that a posted notice is otherwise required under this
415 section. When broadcast notice is provided, the notice and
416 agenda must be broadcast in a manner and for a sufficient
417 continuous length of time so as to allow an average reader to
418 observe the notice and read and comprehend the entire content of
419 the notice and the agenda. Unless a unit owner waives in writing
420 the right to receive notice of the annual meeting, such notice
421 shall be hand delivered, mailed, or electronically transmitted
422 to each unit owner. Notice for meetings and notice for all other
423 purposes shall be mailed to each unit owner at the address last
424 furnished to the association by the unit owner, or hand
425 delivered to each unit owner. However, if a unit is owned by
426 more than one person, the association shall provide notice, for
427 meetings and all other purposes, to that one address which the
428 developer initially identifies for that purpose and thereafter
429 as one or more of the owners of the unit shall so advise the
430 association in writing, or if no address is given or the owners
431 of the unit do not agree, to the address provided on the deed of
432 record. An officer of the association, or the manager or other
433 person providing notice of the association meeting, shall
434 provide an affidavit or United States Postal Service certificate
435 of mailing, to be included in the official records of the
436 association affirming that the notice was mailed or hand
437 delivered, in accordance with this provision.
438 3.a. The members of the board shall be elected by written
439 ballot or voting machine. Proxies shall in no event be used in
440 electing the board, either in general elections or elections to
441 fill vacancies caused by recall, resignation, or otherwise,
442 unless otherwise provided in this chapter. Not less than 60 days
443 before a scheduled election, the association shall mail,
444 deliver, or electronically transmit, whether by separate
445 association mailing or included in another association mailing,
446 delivery, or transmission, including regularly published
447 newsletters, to each unit owner entitled to a vote, a first
448 notice of the date of the election along with a certification
449 form provided by the division attesting that he or she has read
450 and understands, to the best of his or her ability, the
451 governing documents of the association and the provisions of
452 this chapter and any applicable rules. Any unit owner or other
453 eligible person desiring to be a candidate for the board must
454 give written notice of intent to be a candidate to the
455 association not less than 40 days before a scheduled election.
456 Together with the written notice and agenda as set forth in
457 subparagraph 2., the association shall mail, deliver, or
458 electronically transmit a second notice of the election to all
459 unit owners entitled to vote therein, together with a ballot
460 which shall list all candidates. Upon request of a candidate,
461 the association shall include an information sheet, no larger
462 than 8 1/2 inches by 11 inches, which must be furnished by the
463 candidate not less than 35 days before the election, shall along
464 with the signed certification form provided for in this
465 subparagraph, to be included with the mailing, delivery, or
466 transmission of the ballot, with the costs of mailing, delivery,
467 or electronic transmission and copying to be borne by the
468 association. The association is not liable for the contents of
469 the information sheets prepared by the candidates. In order to
470 reduce costs, the association may print or duplicate the
471 information sheets on both sides of the paper. The division
472 shall by rule establish voting procedures consistent with the
473 provisions contained herein, including rules establishing
474 procedures for giving notice by electronic transmission and
475 rules providing for the secrecy of ballots. Elections shall be
476 decided by a plurality of those ballots cast. There shall be no
477 quorum requirement; however, at least 20 percent of the eligible
478 voters must cast a ballot in order to have a valid election of
479 members of the board. No unit owner shall permit any other
480 person to vote his or her ballot, and any such ballots
481 improperly cast shall be deemed invalid, provided any unit owner
482 who violates this provision may be fined by the association in
483 accordance with s. 718.303. A unit owner who needs assistance in
484 casting the ballot for the reasons stated in s. 101.051 may
485 obtain assistance in casting the ballot. The regular election
486 shall occur on the date of the annual meeting. The provisions of
487 this sub-subparagraph subparagraph shall not apply to timeshare
488 condominium associations. Notwithstanding the provisions of this
489 sub-subparagraph subparagraph, an election is not required
490 unless more candidates file notices of intent to run or are
491 nominated than board vacancies exist.
492 b. Within 90 days after being elected to the board, each
493 newly elected director shall certify in writing to the secretary
494 of the association that he or she has read the association’s
495 declarations of covenants and restrictions, articles of
496 incorporation, bylaws, and current written policies; that he or
497 she will work to uphold such documents and policies to the best
498 of his or her ability; and that he or she will faithfully
499 discharge his or her fiduciary responsibility to the
500 association’s members. In lieu of this written certification,
501 the newly elected director may submit a certificate of
502 satisfactory completion of the educational curriculum
503 administered by a division-approved condominium education
504 provider. Failure to timely file the written certification or
505 educational certificate automatically disqualifies the director
506 from service on the board. The secretary shall cause the
507 association to retain a director’s written certification or
508 educational certificate for inspection by the members for 5
509 years after a director’s election. Failure to have such written
510 certification or educational certificate on file does not affect
511 the validity of any appropriate action.
512 4. Any approval by unit owners called for by this chapter
513 or the applicable declaration or bylaws, including, but not
514 limited to, the approval requirement in s. 718.111(8), shall be
515 made at a duly noticed meeting of unit owners and shall be
516 subject to all requirements of this chapter or the applicable
517 condominium documents relating to unit owner decisionmaking,
518 except that unit owners may take action by written agreement,
519 without meetings, on matters for which action by written
520 agreement without meetings is expressly allowed by the
521 applicable bylaws or declaration or any statute that provides
522 for such action.
523 5. Unit owners may waive notice of specific meetings if
524 allowed by the applicable bylaws or declaration or any statute.
525 If authorized by the bylaws, notice of meetings of the board of
526 administration, unit owner meetings, except unit owner meetings
527 called to recall board members under paragraph (j), and
528 committee meetings may be given by electronic transmission to
529 unit owners who consent to receive notice by electronic
530 transmission.
531 6. Unit owners shall have the right to participate in
532 meetings of unit owners with reference to all designated agenda
533 items. However, the association may adopt reasonable rules
534 governing the frequency, duration, and manner of unit owner
535 participation.
536 7. Any unit owner may tape record or videotape a meeting of
537 the unit owners subject to reasonable rules adopted by the
538 division.
539 8. Unless otherwise provided in the bylaws, any vacancy
540 occurring on the board before the expiration of a term may be
541 filled by the affirmative vote of the majority of the remaining
542 directors, even if the remaining directors constitute less than
543 a quorum, or by the sole remaining director. In the alternative,
544 a board may hold an election to fill the vacancy, in which case
545 the election procedures must conform to the requirements of sub
546 subparagraph subparagraph 3.a. unless the association governs 10
547 units or fewer less and has opted out of the statutory election
548 process, in which case the bylaws of the association control.
549 Unless otherwise provided in the bylaws, a board member
550 appointed or elected under this section shall fill the vacancy
551 for the unexpired term of the seat being filled. Filling
552 vacancies created by recall is governed by paragraph (j) and
553 rules adopted by the division.
554
555 Notwithstanding subparagraph subparagraphs (b)2. and sub
556 subparagraph (d)3.a., an association of 10 or fewer units may,
557 by the affirmative vote of a majority of the total voting
558 interests, provide for different voting and election procedures
559 in its bylaws, which vote may be by a proxy specifically
560 delineating the different voting and election procedures. The
561 different voting and election procedures may provide for
562 elections to be conducted by limited or general proxy.
563 (l) Certificate of compliance.—There shall be a provision
564 that a certificate of compliance from a licensed electrical
565 contractor or electrician may be accepted by the association’s
566 board as evidence of compliance of the condominium units with
567 the applicable fire and life safety code. Notwithstanding the
568 provisions of chapter 633 or of any other code, statute,
569 ordinance, administrative rule, or regulation, or any
570 interpretation of the foregoing, an association, condominium, or
571 unit owner is not obligated to retrofit the common elements or
572 units of a residential condominium with a fire sprinkler system
573 or other engineered lifesafety system in a building that has
574 been certified for occupancy by the applicable governmental
575 entity, if the unit owners have voted to forego such
576 retrofitting and engineered lifesafety system by the affirmative
577 vote of two-thirds of all voting interests in the affected
578 condominium. However, a condominium association may not vote to
579 forego the retrofitting with a fire sprinkler system of common
580 areas in a high-rise building. For purposes of this subsection,
581 the term “high-rise building” means a building that is greater
582 than 75 feet in height where the building height is measured
583 from the lowest level of fire department access to the floor of
584 the highest occupiable story. For purposes of this subsection,
585 the term “common areas” means any enclosed hallway, corridor,
586 lobby, stairwell, or entryway. In no event shall the local
587 authority having jurisdiction require completion of retrofitting
588 of common areas with a sprinkler system before the end of 2025
589 2014.
590 1. A vote to forego retrofitting may be obtained by limited
591 proxy or by a ballot personally cast at a duly called membership
592 meeting, or by execution of a written consent by the member, and
593 shall be effective upon the recording of a certificate attesting
594 to such vote in the public records of the county where the
595 condominium is located. The association shall mail, hand
596 deliver, or electronically transmit to each unit owner written
597 notice at least 14 days prior to such membership meeting in
598 which the vote to forego retrofitting of the required fire
599 sprinkler system is to take place. Within 30 days after the
600 association’s opt-out vote, notice of the results of the opt-out
601 vote shall be mailed, hand delivered, or electronically
602 transmitted to all unit owners. Evidence of compliance with this
603 30-day notice shall be made by an affidavit executed by the
604 person providing the notice and filed among the official records
605 of the association. After such notice is provided to each owner,
606 a copy of such notice shall be provided by the current owner to
607 a new owner prior to closing and shall be provided by a unit
608 owner to a renter prior to signing a lease.
609 2. As part of the information collected annually from
610 condominiums, the division shall require condominium
611 associations to report the membership vote and recording of a
612 certificate under this subsection and, if retrofitting has been
613 undertaken, the per-unit cost of such work. The division shall
614 annually report to the Division of State Fire Marshal of the
615 Department of Financial Services the number of condominiums that
616 have elected to forego retrofitting.
617 (n) Director or officer delinquencies.—A director or
618 officer more than 90 days delinquent in the payment of any fee,
619 fine, or regular or special assessments shall be deemed to have
620 abandoned the office, creating a vacancy in the office to be
621 filled according to law.
622 Section 4. This act shall take effect upon becoming a law.
623