October 16, 2019
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       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.
   52  Be It Enacted by the Legislature of the State of Florida:
   54         Section 1. Section 627.714, Florida Statutes, is created to
   55  read:
   56         627.714Residential 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.
  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.

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