(a) The time-share instruments shall require the use of a managing entity for the time-share plan or component site pursuant to a written management agreement that shall include all of the following provisions:

1. (1) Delegation of authority to the managing entity to carry out the duties and obligations of the association or the developer to the time-share interest owners.
2. (2) Authority of the managing entity to use subagents, if applicable.
3. (3) A term of not more than five years with automatic renewals for successive three-year periods after expiration of the first term unless the association by the vote or written assent of a majority of the voting power residing in members other than the developer determines not to renew the contract and gives appropriate notice of that determination. However, in those time-share plans where the association is controlled by owners other than the developer, the management agreement shall not be subject to the term limitations set forth in this section, and any longer term shall not be grounds for denial of a public report, unless the longer term of the management contract is the result of the developer exercising control.
4. (4) Termination for cause at any time by the governing body of the association. If the single site time-share plan or the component site of a multisite time-share plan is located within the state, then that termination provision shall include a provision for arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association or another third-party arbitration organization selected by the parties and in accordance with Title 9 (commencing with Section 1280) of Part 3 of the Code of Civil Procedure if requested by or on behalf of the managing entity.
5. (5) Not less than 90 days’ written notice to the association of the intention of the managing entity to resign.
6. (6) Enumeration of the powers and duties of the managing entity in the operation of the time-share plan and the maintenance of the accommodations comprising the time-share plan.
7. (7) Compensation to be paid to the managing entity.
8. (8) Records to be maintained by the managing entity.
9. (9) A requirement that the managing entity provide a policy for fidelity insurance or bond for the activities of the managing entity, payable to the association that shall be in an amount no less than the sum of the largest amount of funds expected to be held or controlled by the managing entity at any time during the year, pursuant to the budget. The commissioner may provide a reduction in the insurance policy or bond amounts required by this paragraph.
10. (10) Errors and omissions insurance coverage for the managing entity, if available.
11. (11) Delineation of the authority of the managing entity and persons authorized by the managing entity to enter into accommodations of the time-share plan for the purpose of cleaning, maid service, maintenance and repair, including emergency repairs, and for the purpose of abating a nuisance or dangerous, unlawful, or prohibited activity being conducted in the accommodation.

12. (12) Description of the duties of the managing entity, including, but not limited to, the following:

    1. (A) Collection of all assessments as provided in the time-share instruments.
    2. (B) Maintenance of all books and records concerning the time-share plan.
    3. (C) Scheduling occupancy of accommodations, when purchasers are not entitled to use specific time-share periods, so that all purchasers will be provided the opportunity for use and possession of the accommodations of the time-share plan, that they have purchased.
    4. (D) Providing for the annual meeting of the association of owners.
    5. (E) Performing any other functions and duties related to the maintenance of the accommodations or that are required by the time-share instrument.