May 27, 2008, Introduced by Senators BASHAM, ANDERSON, GARCIA and GLEASON and referred to the Committee on Economic Development and Regulatory Reform.
A bill to amend 1978 PA 59, entitled
"Condominium act,"
by amending section 54 (MCL 559.154), as amended by 2002 PA 283.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 54. (1) The bylaws shall contain provisions for the
designation
of persons a person to administer the affairs of the
condominium
project and shall require that those persons the person
keep books and records with a detailed account of the expenditures
and receipts affecting the condominium project and its
administration,
and which that specify the operating expenses of
the project.
(2) The bylaws shall provide that the person designated to
administer the affairs of the project shall be assessed as the
person in possession for any tangible personal property of the
project owned or possessed in common by the co-owners. Personal
property taxes based on that tangible personal property shall be
treated as expenses of administration.
(3) The bylaws shall contain specific provisions directing the
courses of action to be taken in the event of partial or complete
destruction of the building or buildings in the project.
(4) The bylaws shall provide that expenditures affecting the
administration of the project shall include costs incurred in the
satisfaction of any liability arising within, caused by, or
connected with, the common elements or the administration of the
condominium project, and that receipts affecting the administration
of the condominium project shall include all sums received as the
proceeds of, or pursuant to, a policy of insurance securing the
interest of the co-owners against liabilities or losses arising
within, caused by, or connected with the common elements or the
administration of the condominium project.
(5) The bylaws shall provide that the association of co-owners
shall
prepare and distribute to each owner co-owner at least once
each year a financial statement, the contents of which shall be
defined by the association of co-owners.
(6) The bylaws shall provide an indemnification clause for the
board of directors of the association of co-owners. The
indemnification
clause shall require that 10 days' notice , before
payment
under the clause, be given to the
co-owners before payment
is made under the clause. The indemnification clause shall exclude
indemnification for willful and wanton misconduct and for gross
negligence.
(7) The bylaws may allocate to each condominium unit a number
of votes in the association of co-owners proportionate to the
percentage of value appertaining to each condominium unit, or an
equal number of votes in the association of co-owners.
(8) The bylaws shall contain a provision providing that
arbitration
of disputes, claims, and grievances a dispute, claim,
or grievance arising out of or relating to the interpretation of
the application of the condominium document or arising out of
disputes
a dispute among or between co-owners shall be submitted to
arbitration and that the parties to the dispute, claim, or
grievance shall accept the arbitrator's decision as final and
binding, upon the election and written consent of the parties to
the
disputes, claims, or grievances dispute,
claim, or grievance
and upon written notice to the association. The commercial
arbitration rules of the American arbitration association are
applicable to any such arbitration.
(9) In the absence of the election and written consent of the
parties under subsection (8), neither a co-owner nor the
association is prohibited from petitioning a court of competent
jurisdiction
to resolve any a dispute, claim, or grievance.
(10)
The election by the parties to submit any a dispute,
claim, or grievance to arbitration prohibits the parties from
petitioning the courts regarding that dispute, claim, or grievance.
(11) Subsections (8), (9), and (10) apply only to condominium
projects
established on or after the effective date of the
amendatory
act that added this subsection May
9, 2002.
(12) The bylaws shall provide that co-owners may attend all
meetings of the board of directors of the association of co-owners
except as provided in subsection (15). The co-owners' right to
attend the meetings includes the right to speak on a designated
agenda item.
(13) The bylaws shall provide that, except in the case of an
emergency, written notice of a meeting of the board of directors of
the association of co-owners shall be posted in a conspicuous place
on the condominium property not less than 14 days before the
meeting. The notice shall include all agenda items for the meeting.
The notice of a meeting at which regular assessments against co-
owners will be considered shall contain a specific statement that
assessments will be considered and describe the nature of the
assessments.
(14) The bylaws shall provide that in the event of an
emergency requiring a meeting of the board of directors of the
association of co-owners without notice as required in this
section, the board of directors of the association of co-owners
shall provide the details of that emergency to the co-owners
present at the next regular meeting of the board of directors of
the association of co-owners.
(15) The board of directors of the association of co-owners
may meet in a closed session only for 1 or more of the following
purposes:
(a) To consider the dismissal, suspension, or disciplining of;
to hear complaints or charges brought against; or to consider a
periodic personnel evaluation of an officer, employee, staff
member, or individual agent, if the named person requests a closed
hearing. A person requesting a closed hearing may rescind the
request at any time, in which case the matter at issue shall be
considered only in open sessions.
(b) For strategy and negotiation sessions connected with the
negotiation of a collective bargaining agreement if either
negotiating party requests a closed hearing.
(c) To consult with its attorney regarding trial or settlement
strategy in connection with specific pending litigation, only if an
open meeting would have a detrimental financial effect on the
litigating or settlement position of the association of co-owners.
(d) To review the specific contents of an application for
employment if the candidate requests that the application remain
confidential. However, all interviews for employment shall be held
in open sessions.
(16) Subsections (12), (13), (14), and (15) shall apply only
to bylaws created on or after the effective date of the amendatory
act that added this subsection.