Senate Bill 0908

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    Florida Senate - 2000                                   SB 908

    By Senator Webster





    12-663A-00                                              See HB

  1                      A bill to be entitled

  2         An act relating to vacation and timeshare

  3         plans; amending s. 719.103, F.S.; providing for

  4         governance of a timeshare cooperative; defining

  5         the term "timeshare estate" for purposes of ch.

  6         719, F.S., the Cooperative Act; amending s.

  7         719.107, F.S.; providing for joint and several

  8         liability for payments of assessments and

  9         charges with respect to a timeshare unit;

10         amending s. 719.114, F.S.; providing for

11         assessing timeshare estates for purposes of ad

12         valorem taxes and special assessments; amending

13         s. 719.3026, F.S.; exempting certain contracts

14         from provisions governing products and

15         services; amending s. 719.401, F.S.; specifying

16         the term of the leasehold for a timeshare

17         cooperative; amending s. 719.503, F.S.;

18         requiring that certain additional disclosures

19         be made prior to the sale or transfer of a

20         timeshare estate; amending s. 719.504, F.S.;

21         requiring that the creation and sale of a

22         timeshare estate with respect to a cooperative

23         unit be disclosed in the prospectus or offering

24         circular; amending s. 721.03, F.S.; revising

25         provisions with respect to the scope of the

26         Florida Vacation Plan and Timesharing Act;

27         amending s. 721.05, F.S.; providing

28         definitions; amending s. 721.06, F.S.; revising

29         requirements with respect to contracts for the

30         purchase of timeshare interests; amending s.

31         721.065, F.S.; providing for resale listings;

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1         providing legislative intent; providing for the

  2         deposit of certain advance fees in a trust

  3         account; providing requirements with respect to

  4         resale; providing penalties; amending s.

  5         721.07, F.S.; revising provisions with respect

  6         to public offering statements; providing

  7         conditions for the delivery of a purchaser

  8         public offering statement which is not yet

  9         approved by the Division of Florida Land Sales,

10         Condominiums, and Mobile Homes of the

11         Department of Business and Professional

12         Regulation; amending s. 721.075, F.S.; revising

13         provisions with respect to incidental benefits;

14         amending s. 721.08, F.S.; revising provisions

15         with respect to escrow accounts; providing

16         additional criteria with respect to compliance

17         with certain conditions for the release of

18         escrow funds; providing requirements with

19         respect to unclaimed escrow funds; amending s.

20         721.09, F.S.; revising provisions with respect

21         to reservation agreements; amending s. 721.10,

22         F.S.; revising provisions with respect to

23         cancellation; amending s. 721.11, F.S.;

24         providing a filing fee with respect to

25         advertising materials filed with the division;

26         revising language with respect to advertising

27         materials; providing additional criteria for

28         advertising materials; amending s. 721.111,

29         F.S.; revising provisions with respect to prize

30         and gift promotional offers; amending s.

31         721.12, F.S., relating to recordkeeping by a

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1         seller; amending s. 721.13, F.S.; revising

  2         provisions with respect to management;

  3         providing additional powers of the board of

  4         administration of the owners' association;

  5         amending s. 721.14, F.S., relating to discharge

  6         of the managing entity; amending s. 721.15,

  7         F.S.; revising provisions with respect to

  8         assessments for common expenses; providing

  9         requirements with respect to insurance;

10         amending s. 721.16, F.S.; revising provisions

11         with respect to liens for overdue assessments

12         and liens for labor performed on, or materials

13         furnished to a timeshare unit; providing a lien

14         for certain damages done by a guest; amending

15         s. 721.17, F.S.; revising provisions with

16         respect to transfer of interest; amending s.

17         721.18, F.S., relating to exchange programs;

18         amending s. 721.19, F.S., relating to

19         provisions requiring the purchase or lease of

20         timeshare property by owners' associations or

21         purchasers; amending s. 721.20, F.S.; revising

22         provisions with respect to licensing

23         requirements; amending s. 721.21, F.S.,

24         relating to purchasers' remedies; amending s.

25         721.24, F.S.; revising provisions with respect

26         to firesafety; amending s. 721.26, F.S.;

27         revising provisions with respect to regulation

28         by the division; amending s. 721.27, F.S.;

29         revising provisions with respect to the annual

30         fee for each timeshare unit in the plan;

31         creating s. 721.29, F.S.; providing for the

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1         protection of purchasers' rights when recording

  2         is not available in certain jurisdictions;

  3         amending s. 721.51, F.S.; revising provisions

  4         with respect to legislative purpose and scope

  5         concerning vacation clubs; amending s. 721.52,

  6         F.S.; revising the definition of the term

  7         "multisite timeshare plan"; amending s. 721.53,

  8         F.S.; providing an additional piece of

  9         information that the developer may provide to

10         the division prior to offering an accommodation

11         or facility as a part of a multisite timeshare

12         plan; amending s. 721.55, F.S.; revising

13         provisions with respect to the public offering

14         statement for a multisite timeshare plan;

15         amending s. 721.551, F.S., relating to the

16         delivery of a multisite timeshare plan public

17         offering statement; amending s. 721.552, F.S.,

18         relating to additions, substitutions, or

19         deletions of component site accommodations or

20         facilities; amending s. 721.56, F.S.; revising

21         provisions with respect to the management of

22         multisite timeshare plans; amending s. 721.58,

23         F.S.; deleting an annual fee; amending s.

24         721.81, F.S.; revising legislative purpose with

25         respect to the Timeshare Lien Foreclosure Act;

26         amending s. 721.82, F.S.; revising the

27         definition of the term "assessment lien";

28         amending s. 721.84, F.S., relating to the

29         appointment of a resident agent; amending s.

30         721.85, F.S., relating to service to notice

31         address or on registered agent; amending s.

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1         721.86, F.S., including a cross-reference;

  2         amending s. 718.103, F.S.; conforming a

  3         cross-reference; providing severability;

  4         providing an effective date.

  5

  6  Be It Enacted by the Legislature of the State of Florida:

  7

  8         Section 1.  Subsection (21) of section 719.103, Florida

  9  Statutes, is amended, and present subsections (23), (24),

10  (25), and (26) are redesignated as subsections (24), (25),

11  (26), and (27), respectively, and a new subsection (23) is

12  added to that section, to read:

13         719.103  Definitions.--As used in this chapter:

14         (21)  "Residential cooperative" means a cooperative

15  consisting of cooperative units, any of which are intended for

16  use as a private residence. A cooperative is not a residential

17  cooperative if the use of the units is intended as primarily

18  commercial or industrial and not more than three units are

19  intended to be used for private residence, domicile, or

20  homestead, or if the units are intended to be used as housing

21  for maintenance, managerial, janitorial, or other operational

22  staff of the cooperative. If a cooperative is a residential

23  cooperative under this definition, but has units intended to

24  be commercial or industrial, then the cooperative is a

25  residential cooperative with respect to those units intended

26  for use as a private residence, domicile, or homestead, but

27  not a residential cooperative with respect to those units

28  intended for use commercially or industrially. With respect to

29  a timeshare cooperative, the timeshare instrument as defined

30  in s. 721.05 shall govern the intended use of each unit in the

31  cooperative.

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1         (23)  "Timeshare estate" means any interest in a unit

  2  under which the exclusive right of use, possession, or

  3  occupancy of the unit circulates among the various purchasers

  4  of a timeshare plan pursuant to chapter 721 on a recurring

  5  basis for a period of time.

  6         Section 2.  Subsection (1) of section 719.107, Florida

  7  Statutes, is amended to read:

  8         719.107  Common expenses; assessment.--

  9         (1)(a)  Common expenses include the expenses of the

10  operation, maintenance, repair, or replacement of the

11  cooperative property; costs of carrying out the powers and

12  duties of the association; and any other expense, whether or

13  not included in this paragraph, designated as common expense

14  by this chapter or the cooperative documents.

15         (b)  If so provided in the bylaws, the cost of a master

16  antenna television system or duly franchised cable television

17  service obtained pursuant to a bulk contract shall be deemed a

18  common expense, and if not obtained pursuant to a bulk

19  contract, such cost shall be considered common expense if it

20  is designated as such in a written contract between the board

21  of administration and the company providing the master

22  television antenna system or the cable television service.

23  The contract shall be for a term of not less than 2 years.

24         1.  Any contract made by the board after April 2, 1992,

25  for a community antenna system or duly franchised cable

26  television service may be canceled by a majority of the voting

27  interests present at the next regular or special meeting of

28  the association.  Any member may make a motion to cancel the

29  contract, but if no motion is made or if such motion fails to

30  obtain the required majority at the next regular or special

31  meeting, whichever is sooner, following the making of the

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1  contract, then such contract shall be deemed ratified for the

  2  term therein expressed.

  3         2.  Any such contract shall provide, and shall be

  4  deemed to provide if not expressly set forth, that any hearing

  5  impaired or legally blind unit owner who does not occupy the

  6  unit with a nonhearing impaired or sighted person may

  7  discontinue the service without incurring disconnect fees,

  8  penalties, or subsequent service charges, and as to such

  9  units, the owners shall not be required to pay any common

10  expenses charge related to such service.  If less than all

11  members of an association share the expenses of cable

12  television, the expense shall be shared equally by all

13  participating unit owners.  The association may use the

14  provisions of s. 719.108 to enforce payment of the shares of

15  such costs by the unit owners receiving cable television.

16         (c)  If any unpaid share of common expenses or

17  assessments is extinguished by foreclosure of a superior lien

18  or by a deed in lieu of foreclosure thereof, the unpaid share

19  of common expenses or assessments are common expenses

20  collectible from all the unit owners in the cooperative in

21  which the unit is located.

22         (d)  With respect to each timeshare unit, each owner of

23  a timeshare estate therein is jointly and severally liable for

24  the payment of all assessments and other charges levied

25  against or with respect to that unit pursuant to the

26  cooperative documents, except to the extent that the

27  cooperative documents provide to the contrary. This paragraph

28  does not apply to any unit that is not committed to a

29  timeshare plan.

30         Section 3.  Subsection (3) is added to section 719.114,

31  Florida Statutes, to read:

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1         719.114  Separate taxation of cooperative parcels;

  2  survival of contractual provisions after tax sale.--

  3         (3)  Cooperative property divided into timeshare

  4  estates shall be assessed for purposes of ad valorem taxes and

  5  special assessments as provided in s. 192.037.

  6         Section 4.  Section 719.3026, Florida Statutes, is

  7  amended to read:

  8         719.3026  Contracts for products and services; in

  9  writing; bids; exceptions.--Associations with less than 100

10  units may opt out of the provisions of this section if

11  two-thirds of the unit owners vote to do so, which opt-out may

12  be accomplished by a proxy specifically setting forth the

13  exception from this section.

14         (1)  All contracts as further described herein or any

15  contract that is not to be fully performed within 1 year after

16  the making thereof, for the purchase, lease, or renting of

17  materials or equipment to be used by the association in

18  accomplishing its purposes under this chapter, and all

19  contracts for the provision of services, shall be in writing.

20  If a contract for the purchase, lease, or renting of materials

21  or equipment, or for the provision of services, requires

22  payment by the association in an amount which in the aggregate

23  exceeds 5 percent of the association's budget, including

24  reserves, the association shall obtain competitive bids for

25  the materials, equipment, or services.  Nothing contained

26  herein shall be construed to require the association to accept

27  the lowest bid.

28         (2)(a)1.  Notwithstanding the foregoing, contracts with

29  employees of the association, and contracts for attorney,

30  accountant, architect, community association manager,

31  timeshare management firm, engineering, and landscape

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1  architect services shall not be subject to the provisions of

  2  this section.

  3         2.  A contract executed before January 1, 1992, and any

  4  renewal thereof, is not subject to the competitive bid

  5  requirements of this section. If a contract was awarded under

  6  the competitive bid procedures of this section, any renewal of

  7  that contract is not subject to such competitive bid

  8  requirements if the contract contains a provision that allows

  9  the board to cancel the contract on 30 days' notice.

10  Materials, equipment, or services provided to a cooperative

11  pursuant to a local government franchise agreement by a

12  franchise holder are not subject to the competitive bid

13  requirement.  A contract with a manager, if made by a

14  competitive bid, may be made for up to 3 years.  A condominium

15  whose declaration or bylaws provides for competitive bidding

16  for services may operate under the provisions of that

17  declaration or bylaws in lieu of this section if those

18  provisions are not less stringent than the requirements of

19  this section.

20         (b)  This section does not limit the ability of an

21  association to obtain needed products and services in an

22  emergency.

23         (c)  This section does not apply if the business entity

24  with which the association desires to enter into a contract is

25  the only source of supply within the county serving the

26  association.

27         Section 5.  Subsection (1) of section 719.401, Florida

28  Statutes, is amended to read:

29         719.401  Leaseholds.--

30         (1)  A cooperative may be created on lands held under

31  lease or may include recreational facilities or other common

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1  elements or commonly used facilities on a leasehold, if, on

  2  the date the first unit is conveyed by the developer to a bona

  3  fide purchaser, the lease has an unexpired term of at least 50

  4  years. However, if the cooperative constitutes a timeshare

  5  cooperative created pursuant to chapter 721, the lease must

  6  have an unexpired term of at least 30 years. If rent under the

  7  lease is payable by the association or by the unit owners, the

  8  lease shall include the following requirements:

  9         (a)  The leased land must be identified by a

10  description that is sufficient to pass title, and the leased

11  personal property must be identified by a general description

12  of the items of personal property and the approximate number

13  of each item of personal property that the developer is

14  committing to furnish for each room or other facility.  In the

15  alternative, the personal property may be identified by a

16  representation as to the minimum amount of expenditure that

17  will be made to purchase the personal property for the

18  facility.  Unless the lease is of a unit, the identification

19  of the land shall be supplemented by a survey showing the

20  relation of the leased land to the land included in the common

21  areas.  This provision shall not prohibit adding additional

22  land or personal property in accordance with the terms of the

23  lease, provided there is no increase in rent or material

24  increase in maintenance costs to the individual unit owner.

25         (b)  The lease shall not contain a reservation of the

26  right of possession or control of the leased property by the

27  lessor or any person other than unit owners or the

28  association, and shall not create rights to possession or use

29  of the leased property in any parties other than the

30  association or unit owners of the cooperative to be served by

31  the leased property, unless the reservations and rights

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1  created are conspicuously disclosed.  Any provision for use of

  2  the leased property by anyone other than unit owners of the

  3  cooperatives to be served by the leased property shall require

  4  the other users to pay a fair and reasonable share of the

  5  maintenance and repair obligations and other exactions due

  6  from users of the leased property.

  7         (c)  The lease shall state the minimum number of unit

  8  owners that will be required, directly or indirectly, to pay

  9  the rent under the lease and the maximum number of units that

10  will be served by the leased property.  The limitation of the

11  number of units to be served shall not preclude enlargement of

12  the facilities leased and an increase in their capacity, if

13  approved by the association operating the leased property

14  after unit owners other than the developer have assumed

15  control of the association.  This paragraph does not apply if

16  the lessor is the Government of the United States or the State

17  of Florida or any political subdivision thereof or any agency

18  or any political subdivision thereof.

19         (d)1.  In any action by the lessor to enforce a lien

20  for rent payable or in any action by the association or a unit

21  owner with respect to the obligations of the lessee or the

22  lessor under the lease, the unit owner or the association may

23  raise any issue or interpose any defenses, legal or equitable,

24  that he or she or it may have with respect to the lessor's

25  obligations under the lease.  If the unit owner or the

26  association initiates any action or interposes any defense

27  other than payment of rent under the lease, the unit owner or

28  the association shall, upon service of process upon the

29  lessor, pay into the registry of the court any allegedly

30  accrued rent and the rent which accrues during the pendency of

31  the proceeding, when due.  If the unit owner or the

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1  association fails to pay the rent into the registry of the

  2  court, it shall constitute an absolute waiver of the unit

  3  owner's or association's defenses other than payment, and the

  4  lessor shall be entitled to default. The unit owner or the

  5  association shall notify the lessor of any deposits.  When the

  6  unit owner or the association has deposited the required funds

  7  into the registry of the court, the lessor may apply to the

  8  court for disbursement of all or part of the funds shown to be

  9  necessary for the payment of taxes, mortgage payments,

10  maintenance and operating expenses, and other necessary

11  expenses incident to maintaining and equipping the leased

12  facilities or necessary for the payment of other expenses

13  arising out of personal hardship resulting from the loss of

14  rental income from the leased facilities.  The court, after an

15  evidentiary hearing, may award all or part of the funds on

16  deposit to the lessor for such purpose. The court shall

17  require the lessor to post bond or other security, as a

18  condition to the release of funds from the registry, when the

19  value of the leased land and improvements, apart from the

20  lease itself, is inadequate to fully secure the sum of

21  existing encumbrances on the leased property and the amounts

22  released from the court registry.

23         2.  When the association or unit owners have deposited

24  funds into the registry of the court pursuant to this

25  subsection, and the unit owners and association have otherwise

26  complied with their obligations under the lease or agreement,

27  other than paying rent into the registry of the court rather

28  than to the lessor, the lessor cannot hold the association or

29  unit owners in default on their rental payments nor may the

30  lessor file liens or initiate foreclosure proceedings against

31  unit owners.  If the lessor, in violation of this subsection,

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1  attempts such liens or foreclosures, then the lessor may be

  2  liable for damages plus attorney's fees and costs which the

  3  association or unit owners incurred in satisfying those liens

  4  or foreclosures.

  5         3.  Nothing in this paragraph shall affect litigation

  6  commenced prior to October 1, 1979.

  7         (e)  If the lease is of recreational facilities or

  8  other commonly used facilities that are not completed, rent

  9  shall not commence until some of the facilities are completed.

10  Until all of the facilities leased are completed, rent shall

11  be prorated and paid only for the completed facilities in the

12  proportion that the value of the completed facilities bears to

13  the estimated value, when completed, of all of the facilities

14  that are leased. The facilities shall be complete when they

15  have been constructed, finished, and equipped and are

16  available for use.

17         (f)1.  A lease of recreational or other commonly used

18  facilities entered into by the association or unit owners

19  prior to the time the control of the association is turned

20  over to unit owners other than the developer shall grant to

21  the lessee an option to purchase the leased property, payable

22  in cash on any anniversary date of the beginning of the lease

23  term after the 10th anniversary, at a price then determined by

24  agreement.  If there is no agreement as to the price, then the

25  price shall be determined by arbitration. This paragraph shall

26  be applied to contracts entered into on, before, or after

27  January 1, 1977, regardless of the duration of the lease.

28         2.  If the lessor wishes to sell his or her interest

29  and has received a bona fide offer to purchase it, the lessor

30  shall send the association and each unit owner a copy of the

31  executed offer. For 90 days following receipt of the offer by

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1  the association or unit owners, the association or unit owners

  2  have the option to purchase the interest on the terms and

  3  conditions in the offer. The option shall be exercised, if at

  4  all, by notice in writing given to the lessor within the

  5  90-day period.  If the association or unit owners do not

  6  exercise the option, the lessor shall have the right, for a

  7  period of 60 days after the 90-day period has expired, to

  8  complete the transaction described in the offer to purchase.

  9  If for any reason such transaction is not concluded within the

10  60 days, the offer shall have been abandoned, and the

11  provisions of this subsection shall be reimposed.

12         3.  The option shall be exercised upon approval by

13  owners of two-thirds of the units served by the leased

14  property.

15         4.  The provisions of this paragraph shall not apply to

16  a nonresidential cooperative and shall not apply if the lessor

17  is the Government of the United States or the State of Florida

18  or any political subdivision thereof or, in the case of an

19  underlying land lease, a person or entity which is not the

20  developer or directly or indirectly owned or controlled by the

21  developer and did not obtain, directly or indirectly,

22  ownership of the leased property from the developer.

23         (g)  The lease or a subordination agreement executed by

24  the lessor must provide either:

25         1.  That any lien which encumbers a unit for rent or

26  other moneys or exactions payable is subordinate to any

27  mortgage held by an institutional lender, or

28         2.  That, upon the foreclosure of any mortgage held by

29  an institutional lender or upon delivery of a deed in lieu of

30  foreclosure, the lien for the unit owner's share of the rent

31  or other exactions shall not be extinguished but shall be

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1  foreclosed and unenforceable against the mortgagee with

  2  respect to that unit's share of the rent and other exactions

  3  which mature or become due and payable on or before the date

  4  of the final judgment of foreclosure, in the event of

  5  foreclosure, or on or before the date of delivery of the deed

  6  in lieu of foreclosure.  The lien may, however, automatically

  7  and by operation of the lease or other instrument, reattach to

  8  the unit and secure the payment of the unit's proportionate

  9  share of the rent or other exactions coming due subsequent to

10  the date of final decree of foreclosure or the date of

11  delivery of the deed in lieu of foreclosure.

12

13  This paragraph does not apply if the lessor is the Government

14  of the United States or the State of Florida or any political

15  subdivision thereof or any agency or political subdivision

16  thereof.

17         Section 6.  Paragraph (a) of subsection (1) and

18  paragraph (b) of subsection (3) of section 719.503, Florida

19  Statutes, are amended to read:

20         719.503  Disclosure prior to sale.--

21         (1)  DEVELOPER DISCLOSURE.--

22         (a)  Contents of contracts.--Any contracts for the sale

23  of a unit or a lease thereof for an unexpired term of more

24  than 5 years shall contain:

25         1.  The following legend in conspicuous type: THIS

26  AGREEMENT IS VOIDABLE BY BUYER BY DELIVERING WRITTEN NOTICE OF

27  THE BUYER'S INTENTION TO CANCEL WITHIN 15 DAYS AFTER THE DATE

28  OF EXECUTION OF THIS AGREEMENT BY THE BUYER, AND RECEIPT BY

29  BUYER OF ALL OF THE ITEMS REQUIRED TO BE DELIVERED TO HIM OR

30  HER BY THE DEVELOPER UNDER SECTION 719.503, FLORIDA STATUTES.

31  THIS AGREEMENT IS ALSO VOIDABLE BY BUYER BY DELIVERING WRITTEN

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1  NOTICE OF THE BUYER'S INTENTION TO CANCEL WITHIN 15 DAYS AFTER

  2  THE DATE OF RECEIPT FROM THE DEVELOPER OF ANY AMENDMENT WHICH

  3  MATERIALLY ALTERS OR MODIFIES THE OFFERING IN A MANNER THAT IS

  4  ADVERSE TO THE BUYER.  ANY PURPORTED WAIVER OF THESE

  5  VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE

  6  TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15 DAYS AFTER

  7  THE BUYER HAS RECEIVED ALL OF THE ITEMS REQUIRED.  BUYER'S

  8  RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT CLOSING.

  9         2.  The following caveat in conspicuous type shall be

10  placed upon the first page of the contract:  ORAL

11  REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE

12  REPRESENTATIONS OF THE DEVELOPER.  FOR CORRECT

13  REPRESENTATIONS, REFERENCE SHOULD BE MADE TO THIS CONTRACT AND

14  THE DOCUMENTS REQUIRED BY SECTION 719.503, FLORIDA STATUTES,

15  TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE.

16         3.  If the unit has been occupied by someone other than

17  the buyer, a statement that the unit has been occupied.

18         4.  If the contract is for the sale or transfer of a

19  unit subject to a lease, the contract shall include as an

20  exhibit a copy of the executed lease and shall contain within

21  the text in conspicuous type:  THE UNIT IS SUBJECT TO A LEASE

22  (OR SUBLEASE).

23         5.  If the contract is for the lease of a unit for a

24  term of 5 years or more, the contract shall include as an

25  exhibit a copy of the proposed lease.

26         6.  If the contract is for the sale or lease of a unit

27  that is subject to a lien for rent payable under a lease of a

28  recreational facility or other common areas, the contract

29  shall contain within the text the following statement in

30  conspicuous type:  THIS CONTRACT IS FOR THE TRANSFER OF A UNIT

31  THAT IS SUBJECT TO A LIEN FOR RENT PAYABLE UNDER A LEASE OF

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  1  COMMON AREAS. FAILURE TO PAY RENT MAY RESULT IN FORECLOSURE OF

  2  THE LIEN.

  3         7.  The contract shall state the name and address of

  4  the escrow agent required by s. 719.202 and shall state that

  5  the purchaser may obtain a receipt for his or her deposit from

  6  the escrow agent, upon request.

  7         8.  If the contract is for the sale or transfer of a

  8  unit in a cooperative in which timeshare estates have been or

  9  may be created, the following text in conspicuous type:  UNITS

10  IN THIS COOPERATIVE ARE SUBJECT TO TIMESHARE ESTATES. The

11  contract for the sale of a timeshare estate must also contain,

12  in conspicuous type, the following:  FOR THE PURPOSE OF AD

13  VALOREM TAXES OR SPECIAL ASSESSMENTS LEVIED BY TAXING

14  AUTHORITIES AGAINST A TIMESHARE ESTATE, THE MANAGING ENTITY IS

15  GENERALLY CONSIDERED THE TAXPAYER UNDER FLORIDA LAW.  YOU HAVE

16  THE RIGHT TO CHALLENGE AN ASSESSMENT BY A TAXING AUTHORITY

17  RELATING TO YOUR TIMESHARE ESTATE PURSUANT TO THE PROVISIONS

18  OF CHAPTER 194, FLORIDA STATUTES.

19         (3)  OTHER DISCLOSURE.--

20         (b)  Sales brochures, if any, shall be provided to each

21  purchaser, and the following caveat in conspicuous type shall

22  be placed on the inside front cover or on the first page

23  containing text material of the sales brochure, or otherwise

24  conspicuously displayed:  ORAL REPRESENTATIONS CANNOT BE

25  RELIED UPON AS CORRECTLY STATING REPRESENTATIONS OF THE

26  DEVELOPER.  FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO

27  THIS BROCHURE AND TO THE DOCUMENTS REQUIRED BY SECTION

28  719.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A

29  BUYER OR LESSEE. If timeshare estates have been or may be

30  created with respect to any unit in the cooperative, the sales

31  brochure for sales of timeshare estates in such units must

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  1  contain the following statement in conspicuous type:  UNITS IN

  2  THIS COOPERATIVE ARE SUBJECT TO TIMESHARE ESTATES.

  3         Section 7.  Subsection (5) of section 719.504, Florida

  4  Statutes, is amended to read:

  5         719.504  Prospectus or offering circular.--Every

  6  developer of a residential cooperative which contains more

  7  than 20 residential units, or which is part of a group of

  8  residential cooperatives which will be served by property to

  9  be used in common by unit owners of more than 20 residential

10  units, shall prepare a prospectus or offering circular and

11  file it with the Division of Florida Land Sales, Condominiums,

12  and Mobile Homes prior to entering into an enforceable

13  contract of purchase and sale of any unit or lease of a unit

14  for more than 5 years and shall furnish a copy of the

15  prospectus or offering circular to each buyer.  In addition to

16  the prospectus or offering circular, each buyer shall be

17  furnished a separate page entitled "Frequently Asked Questions

18  and Answers," which must be in accordance with a format

19  approved by the division.  This page must, in readable

20  language:  inform prospective purchasers regarding their

21  voting rights and unit use restrictions, including

22  restrictions on the leasing of a unit; indicate whether and in

23  what amount the unit owners or the association is obligated to

24  pay rent or land use fees for recreational or other commonly

25  used facilities; contain a statement identifying that amount

26  of assessment which, pursuant to the budget, would be levied

27  upon each unit type, exclusive of any special assessments, and

28  which identifies the basis upon which assessments are levied,

29  whether monthly, quarterly, or otherwise; state and identify

30  any court cases in which the association is currently a party

31  of record in which the association may face liability in

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    12-663A-00                                              See HB




  1  excess of $100,000; and state whether membership in a

  2  recreational facilities association is mandatory and, if so,

  3  identify the fees currently charged per unit type.  The

  4  division shall by rule require such other disclosure as in its

  5  judgment will assist prospective purchasers. The prospectus or

  6  offering circular may include more than one cooperative,

  7  although not all such units are being offered for sale as of

  8  the date of the prospectus or offering circular.  The

  9  prospectus or offering circular must contain the following

10  information:

11         (5)(a)  A statement in conspicuous type describing

12  whether the cooperative is created and being sold as fee

13  simple interests or as leasehold interests.  If the

14  cooperative is created or being sold on a leasehold, the

15  location of the lease in the disclosure materials shall be

16  stated.

17         (b)  If timeshare estates are or may be created with

18  respect to any unit in the cooperative, a statement in

19  conspicuous type stating that timeshare estates are created

20  and being sold in such specified units in the cooperative.

21         Section 8.  Section 721.03, Florida Statutes, is

22  amended to read:

23         721.03  Scope of chapter.--

24         (1)  This chapter applies to all timeshare plans

25  consisting of more than seven timeshare periods over a period

26  of at least 3 years in which the accommodations and or

27  facilities, if any, are located within this state or offered

28  within this state; provided that:

29         (a)  With respect to a timeshare plan plans containing

30  accommodations or facilities located in this state which has

31  previously been filed with and approved by the division and

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    12-663A-00                                              See HB




  1  which is are offered for sale in other jurisdictions within

  2  the jurisdictional limits of the United States, that regulate

  3  the offering or sale of the timeshare plan in plans, such

  4  jurisdictions offers shall not be subject to the provisions of

  5  this chapter ss. 721.06, 721.08-721.12, and 721.20 to the

  6  extent that such activity is regulated in the other United

  7  States jurisdictions, but only after the division has received

  8  and accepted satisfactory evidence that the timeshare plan has

  9  been filed and accepted by the appropriate agency in the other

10  jurisdictions.  The director of the division shall also have

11  the discretion to require all or a portion of the disclosures

12  required by s. 721.07 or s. 721.55 to be made in connection

13  with offers made in the other United States jurisdictions.

14         (b)  With respect to a timeshare plan plans containing

15  accommodations or facilities located in this state which is

16  are offered for sale outside the jurisdictional limits of the

17  United States, such offer or sale offers shall be exempt from

18  the requirements of this chapter, provided that the developer

19  shall either file the timeshare plan with the division for

20  approval pursuant to this chapter, or pay an exemption

21  registration fee of $100 and file the following minimum

22  information pertaining to the timeshare plan with the division

23  for approval:

24         1.  The name and address of the timeshare plan.

25         2.  The name and address of the developer and seller,

26  if any.

27         3.  The location and a brief description of the

28  accommodations and facilities, if any, that are located in

29  this state.

30         4.  The number of timeshare interests and timeshare

31  periods to be offered.

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  1         5.  The term of the timeshare plan.

  2         6.  A copy of the timeshare instrument relating to the

  3  management and operation of accommodations and facilities, if

  4  any, that are located in this state.

  5         7.  A copy of the budget required by s. 721.07(5)(u) or

  6  s. 721.55(4)(h), as applicable.

  7         8.  A copy of the management agreement and any other

  8  contracts regarding management or operation of the

  9  accommodations and facilities, if any, that are located in

10  this state, and which have terms in excess of 1 year.

11         9.  A copy of the provision of the purchase contract to

12  be utilized in offering the timeshare plan containing so long

13  as the seller files the information required by s. 721.07 or

14  s. 721.55 with, and obtains the approval of, the division.

15  This exemption becomes effective upon the filing of such

16  information with the division, if approval is obtained within

17  6 months after the initial filing at which time the exemption

18  will expire unless the division stipulates otherwise or

19  approves the filing.  The fees set forth in s. 721.07(4) apply

20  to all filings made hereunder. Each purchase contract utilized

21  in any offer of a timeshare plan that occurs outside the

22  jurisdictional limits of the United States shall contain the

23  following disclosure in conspicuous type immediately above the

24  space provided for the purchaser's signature:

25

26  The offering of this timeshare plan outside the jurisdictional

27  limits of the United States of America is exempt from

28  regulation under Florida law, and any such purchase is not

29  protected by the State of Florida.  However, the management

30  and operation of any accommodations or facilities located in

31

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1  Florida is subject to Florida law and may give rise to

  2  enforcement action regardless of the location of any offer.

  3

  4  Purchaser should note that ...(name of developer or other

  5  person or entity)... at ...(address)... has a ...(describe

  6  developer's or other person's or entity's actual interest)...

  7  in the accommodations and facilities of the timeshare plan.

  8

  9         (c)  The exemption provided in paragraph (a) shall not

10  apply unless and until a claim of exemption from regulation

11  containing the information required by paragraph (a) and s.

12  721.51(3)(b) and accompanied by the fee required by s.

13  721.51(3)(b) is filed with and approved by the division. The

14  division may adopt rules designating those provisions of ss.

15  721.07 and 721.55 which need not be addressed in the filings

16  required in paragraph (b).

17         (c)(2)  All timeshare accommodations or facilities

18  which are located outside the state but offered for sale in

19  this state shall be governed by the following:

20         1.  The offering for sale in this state of timeshare

21  accommodations and facilities located outside the state is are

22  subject only to the provisions of ss. 721.01-721.12, 721.18,

23  721.20, 721.21, 721.26, and 721.28, and part II.

24         2.  The division shall not require a developer of All

25  timeshare accommodations or facilities located outside of this

26  state to make changes in any timeshare instrument to conform

27  to the provisions of s. 721.07 or s. 721.55. The division

28  shall have the power to require disclosure of those provisions

29  of the timeshare instrument that do not conform to s. 721.07

30  or s. 721.55 as the director determines is necessary to

31

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  1  fairly, meaningfully, and effectively disclose all aspects of

  2  the timeshare plan.

  3         3.  Except as provided in this subparagraph, the

  4  division shall have no authority to determine whether any

  5  person has complied with another state's laws or to disapprove

  6  any out-of-state filing, timeshare instrument, or component

  7  site document, based solely upon the lack or degree of

  8  timeshare regulation in another state. The division may

  9  require a developer to obtain and provide to the division

10  existing documentation relating to an out-of-state filing,

11  timeshare instrument, or component site document and prove

12  compliance of same with the laws of that state. In this

13  regard, the division may accept any evidence of the approval

14  or acceptance of any out-of-state filing, timeshare

15  instrument, or component site document by another state in

16  lieu of requiring a developer to file the out-of-state filing,

17  timeshare instrument, or component site document with the

18  division pursuant to this section, or the division may accept

19  an opinion letter from an attorney or law firm opining as to

20  the compliance of such out-of-state filing, timeshare

21  instrument, or component site document with the laws of

22  another state. The division may refuse to approve the

23  inclusion of any out-of-state filing, timeshare instrument, or

24  component site document as part of a public offering statement

25  based upon the inability of the developer to establish the

26  compliance of same with the laws of another state.

27         4.  The division is authorized to enter into an

28  agreement with another state for the purpose of facilitating

29  the processing of out-of-state timeshare instruments or other

30  component site documents pursuant to this chapter and for the

31

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  1  purpose of facilitating the referral of consumer complaints to

  2  the appropriate state.

  3         5.  Notwithstanding any other provision of this

  4  paragraph, the offer, in this state, of an additional interest

  5  to existing purchasers in the same timeshare plan or the same

  6  component site of a multisite timeshare plan with

  7  accommodations and facilities located outside of this state

  8  shall not be which are located outside the state but offered

  9  for sale in this state as part of a vacation club are also

10  subject to the provisions of this chapter if the offer

11  complies with the provisions of s. 721.11(4) part II.

12         (2)(3)  When a timeshare plan is subject to both the

13  provisions of this chapter and the provisions of chapter 718

14  or chapter 719, the plan shall meet the requirements of both

15  chapters unless exempted as provided in this section. The

16  division shall have the authority to adopt rules

17  differentiating between timeshare condominiums and

18  nontimeshare condominiums, and between timeshare cooperatives

19  and nontimeshare cooperatives, in the interpretation and

20  implementation of chapters 718 and 719, respectively. In the

21  event of a conflict between the provisions of this chapter and

22  the provisions of chapter 718 or chapter 719, the provisions

23  of this chapter shall prevail.

24         (3)(4)  A timeshare plan which is subject to the

25  provisions of chapter 718 or chapter 719, if fully in

26  compliance with the provisions of this chapter, is exempt from

27  the following:

28         (a)  Sections 718.202 and 719.202, relating to sales or

29  reservation deposits prior to closing.

30         (b)  Sections 718.502 and 719.502, relating to filing

31  prior to sale or lease.

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  1         (c)  Sections 718.503 and 719.503, relating to

  2  disclosure prior to sale.

  3         (d)  Sections 718.504 and 719.504, relating to

  4  prospectus or offering circular.

  5         (e)  Part VI of chapter 718 and part VI of chapter 719,

  6  relating to conversion of existing improvements to the

  7  condominium or cooperative form of ownership, respectively,

  8  provided that a developer converting existing improvements to

  9  a timeshare condominium or timeshare cooperative must comply

10  with ss. 718.606, 718.608, 718.61, and 718.62, or ss. 719.606,

11  719.608, 719.61, and 719.62, if applicable, and, if the

12  existing improvements received a certificate of occupancy more

13  than 18 months before such conversion, one of the following:

14         1.  The accommodations and facilities shall be

15  renovated and improved to a condition such that the remaining

16  useful life in years of the roof, plumbing, air-conditioning,

17  and any component of the structure which has a useful life

18  less than the useful life of the overall structure is equal to

19  the useful life of accommodations or facilities that would

20  exist if such accommodations and facilities were newly

21  constructed and not previously occupied.

22         2.  The developer shall fund reserve accounts for

23  capital expenditures and deferred maintenance for the roof,

24  plumbing, air-conditioning, and any component of the structure

25  the useful life of which is less than the useful life of the

26  overall structure. The reserve accounts shall be funded for

27  each component in an amount equal to the product of the

28  estimated current replacement cost of such component (as

29  disclosed and substantiated by a certificate under the seal of

30  an architect or engineer authorized to practice in this state)

31  multiplied by a fraction, the numerator of which shall be the

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1  remaining life of the component in years (as disclosed and

  2  substantiated by a certificate under the seal of an architect

  3  or engineer authorized to practice in this state) and the

  4  denominator of which shall be the total useful life of the

  5  component in years (as disclosed and substantiated by a

  6  certificate under the seal of an architect or engineer

  7  authorized to practice in this state). Alternatively, the

  8  reserve accounts may be funded for each component in an amount

  9  equal to the amount that, except for the application of this

10  subsection, would be required to be maintained pursuant to s.

11  718.618(1) or s. 719.618(1). The developer shall fund the

12  reserve accounts contemplated in this subparagraph out of the

13  proceeds of each sale of a timeshare interest, on a pro rata

14  basis, in an amount not less than a percentage of the total

15  amount to be deposited in the reserve account equal to the

16  percentage of ownership allocable to the timeshare interest

17  sold.

18         3.  The developer shall provide each purchaser with a

19  warranty of fitness and merchantability pursuant to s.

20  718.618(6) or s. 719.618(6).

21         4.  The developer shall post a surety bond issued by a

22  company licensed to do business in this state in an amount

23  which would be equal to the total amount of all reserve

24  accounts required under subparagraph 2., payable to the

25  owners' association.

26         (4)(5)  The treatment of timeshare estates for ad

27  valorem tax purposes and special assessments shall be as

28  prescribed in chapters 192 through 200.

29         (5)(6)  Membership camping plans shall be subject to

30  the provisions of ss. 509.501-509.512 and not to the

31  provisions of this chapter.

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  1         (6)(7)  Unless otherwise provided herein, this chapter

  2  shall not apply to the offering of any timeshare plan under

  3  which the prospective purchaser's total financial obligation

  4  will be $3,000 $1,500 or less during the entire term of the

  5  plan.

  6         (7)(8)  Every escrow agent or trustee required under

  7  this chapter, or under chapter 192 as it relates to timeshare

  8  plans, must be independent.

  9         (8)(9)  With respect to any accommodation or facility

10  of a timeshare plan which is situated upon personal property,

11  the division shall have the authority to adopt rules

12  interpreting and implementing the provisions of this chapter

13  as they apply to such accommodation or facility, or as they

14  apply to any other laws of this state, of the several states,

15  or of the United States with respect to such accommodation or

16  facility.

17         (9)  Notwithstanding the provisions of any other law,

18  s. 687.03 shall govern with respect to the rate of interest

19  permitted for any loan, advance of money, line of credit,

20  forbearance to enforce the collection of any sum of money, or

21  other obligation in connection with a timeshare license.

22         (10)  A developer or seller may not offer any number of

23  timeshare interests that would cause the total number of

24  timeshare interests offered to exceed a one-to-one purchaser

25  to accommodation ratio.

26         Section 9.  Section 721.05, Florida Statutes, is

27  amended to read:

28         721.05  Definitions.--As used in this chapter, the

29  term:

30         (1)  "Accommodation" means any apartment, condominium

31  or cooperative unit, cabin, lodge, hotel or motel room,

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  1  campground, or other private or commercial structure which is

  2  situated on real or personal property and designed for

  3  occupancy or use by one or more individuals.  The term does

  4  not include an incidental benefit as defined in this section.

  5         (2)  "Agreement for deed" means any written contract

  6  utilized in the sale of timeshare estates which provides that

  7  legal title will not be conveyed to the purchaser until the

  8  contract price has been paid in full and the terms of payment

  9  of which extend for a period in excess of 180 days after

10  either the date of execution of the contract or completion of

11  construction, whichever occurs later.

12         (3)  "Assessment" means the share of funds required for

13  the payment of common expenses which is assessed from time to

14  time against each purchaser by the managing entity.

15         (4)  "Closing" means:

16         (a)  For any plan selling timeshare estates, conveyance

17  of the legal or beneficial title to a timeshare interest

18  period as evidenced by the delivery of a deed or other

19  instrument to the purchaser or to the clerk of the court for

20  recording or conveyance of the equitable title to a timeshare

21  interest period as evidenced by the irretrievable delivery of

22  an agreement for deed to the clerk of the court for recording.

23         (b)  For any plan selling timeshare licenses, the final

24  execution and delivery by all parties of the last document

25  necessary for vesting in the purchaser the full rights

26  available under the plan.

27         (5)  "Common expenses" means:

28         (a)  Those expenses properly incurred for the

29  maintenance, operation, and repair of the accommodations or

30  facilities, or both, constituting the timeshare plan.

31

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  1         (b)  Any other expenses designated as common expenses

  2  in a timeshare instrument.

  3         (c)  Any past due and uncollected ad valorem taxes

  4  assessed against a timeshare development pursuant to s.

  5  192.037.

  6         (6)  "Completion of construction" means:

  7         (a)1.  That a certificate of occupancy has been issued

  8  for the entire building in which the timeshare unit being sold

  9  is located, or for the improvement, or that the equivalent

10  authorization has been issued, by the governmental body having

11  jurisdiction; or

12         2.  In a jurisdiction in which no certificate of

13  occupancy or equivalent authorization is issued, that the

14  construction, finishing, and equipping of the building or

15  improvements according to the plans and specifications have

16  been substantially completed; and

17         (b)  That all accommodations and facilities of the

18  timeshare plan are available for use in a manner identical in

19  all material respects to the manner portrayed by the

20  promotional material, advertising, and registered public

21  offering statements filed with the division.

22         (c)  Notwithstanding the provisions of paragraph (b), a

23  seller of a timeshare plan that is not a multisite timeshare

24  plan may portray possible accommodations or facilities to

25  prospective purchasers in advertising material or a public

26  offering statement filed with the division without such

27  accommodations or facilities being available for use by

28  purchasers so long as the advertising material or public

29  offering statement complies with the provisions of s.

30  721.11(4).

31

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  1         (d)  Notwithstanding the provisions of paragraph (b), a

  2  developer of a timeshare plan that is not a multisite

  3  timeshare plan may portray the general geographic location of

  4  possible accommodations or facilities to prospective

  5  purchasers by disseminating oral or written statements

  6  regarding same to broadcast or print media with no obligation

  7  on the developer's part to actually construct such

  8  accommodations or facilities or to file such accommodations

  9  and facilities with the division, but only so long as such

10  oral or written statements are not considered advertising

11  material pursuant to s. 721.11(3)(e).  For purposes of this

12  paragraph, the term "general geographic location" means the

13  boundaries of a state or country.

14         (e)  Notwithstanding the provisions of paragraph (b), a

15  seller of a multisite timeshare plan may portray possible

16  component sites to purchasers pursuant to s. 721.553.

17         (7)  "Conspicuous type" means:

18         (a)  Type in upper and lower case letters two point

19  sizes larger than the largest nonconspicious type, exclusive

20  of headings, on the page on which it appears but in at least

21  10-point type; or

22         (b)  Where the use of 10-point type would be

23  impractical or impossible with respect to a particular piece

24  of written advertising material, then the division may approve

25  the use of a different style of type or print may be used, so

26  long as the print remains conspicuous under the circumstances.

27

28  Where conspicuous type is required, it must be separated on

29  all sides from other type and print.  Conspicuous type may be

30  utilized in contracts for purchase or public offering

31

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    12-663A-00                                              See HB




  1  statements only where required by law or as authorized by the

  2  division.

  3         (8)  "Contract" means any agreement conferring the

  4  rights and obligations of a timeshare plan on the purchaser.

  5         (9)  "Developer" includes:

  6         (a)  A "creating developer," which means any person who

  7  creates the timeshare plan;

  8         (b)  A "successor developer," which means any person

  9  who succeeds to the interest of the persons in this subsection

10  by sale, lease, assignment, mortgage, or other transfer, but

11  the term includes only those persons who offer timeshare

12  interests periods in the ordinary course of business; and

13         (c)  A "concurrent developer," which means any person

14  acting concurrently with the persons in this subsection with

15  the purpose of offering timeshare interests periods in the

16  ordinary course of business.

17         (d)  The term "developer" does not include:

18         1.  An owner of a timeshare interest period who has

19  acquired the timeshare interest period for his or her own use

20  and occupancy and who later offers it for resale; provided

21  that a rebuttable presumption shall exist that an owner who

22  has acquired more than seven timeshare interests periods did

23  not acquire them for his or her own use and occupancy;

24         2.  A managing entity that is not otherwise a developer

25  and that offers, or engages a third party to offer on its

26  behalf, timeshare interests of a timeshare plan in its own

27  right and that offers timeshare periods for its own account in

28  a timeshare plan which it manages, provided that such offer

29  complies to existing purchasers of that timeshare plan, or a

30  managing entity which complies with the provisions of s.

31  721.065; or

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  1         3.  A person who owns or is conveyed, assigned, or

  2  transferred more than seven timeshare interests periods from a

  3  developer in a single voluntary or involuntary transaction and

  4  who subsequently conveys, assigns, or transfers all acquired

  5  of the timeshare interests periods received from the developer

  6  to a single purchaser in a single transaction, which

  7  transaction may occur in stages; or

  8         4.  A person who has acquired or has the right to

  9  acquire more than seven timeshare interests from a developer

10  or other interestholder in connection with security under a

11  loan or a securitization transaction and who subsequently

12  arranges for all or a portion of the timeshare interests to be

13  offered by one or more developers in the ordinary course of

14  business on their own behalves or on behalf of such person.

15         (e)  A successor or concurrent developer shall be

16  exempt from any liability inuring to a predecessor or

17  concurrent developer of the same timeshare plan, provided that

18  this exemption shall not apply to any of the successor or

19  concurrent developer's responsibilities, duties, or

20  liabilities with respect to the timeshare plan that accrue

21  after the date the successor or concurrent developer became a

22  successor or concurrent developer, and provided that such

23  transfer does not constitute a fraudulent transfer. In

24  addition to other provisions of law, a transfer by a

25  predecessor developer to a successor or concurrent developer

26  shall be deemed fraudulent if the predecessor developer made

27  the transfer:

28         1.  With actual intent to hinder, delay, or defraud any

29  purchaser or the division; or

30         2.  To a person that would constitute an insider under

31  s. 726.102(7).

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  1

  2  The provisions of this paragraph shall not be construed to

  3  relieve any successor or concurrent developer from the

  4  obligation to comply with the provisions of any applicable

  5  timeshare instrument.

  6         (10)  "Division" means the Division of Florida Land

  7  Sales, Condominiums, and Mobile Homes of the Department of

  8  Business and Professional Regulation.

  9         (11)  "Enrolled" means paid membership in an exchange

10  program or membership in an exchange program evidenced by

11  written acceptance or confirmation of membership.

12         (12)  "Escrow account" means an account established

13  solely for the purposes set forth in this chapter with a

14  financial institution located within this state.

15         (13)  "Escrow agent" includes only:

16         (a)  A savings and loan association, bank, trust

17  company, or other financial institution, any of which must be

18  located in this state and any of which must have a net worth

19  in excess of $5 million;

20         (b)  An attorney who is a member of The Florida Bar or

21  his or her law firm, so long as the attorney or firm has

22  posted a fidelity bond issued by a company authorized and

23  licensed to do business in this state as surety in the amount

24  of $50,000;

25         (c)  A real estate broker who is licensed pursuant to

26  chapter 475 or his or her brokerage firm, so long as the

27  broker or firm has posted a fidelity bond issued by a company

28  authorized and licensed to do business in this state as surety

29  in the amount of $50,000; or

30         (d)  A title insurance agent that is licensed pursuant

31  to s. 626.8417 or a title insurance agency that is licensed

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  1  pursuant to s. 626.8418, so long as the agent or agency has

  2  posted a fidelity bond issued by a company authorized and

  3  licensed to do business in this state as surety in the amount

  4  of $50,000.

  5

  6  If an escrow agent is required to post a $50,000 fidelity bond

  7  pursuant to this subsection, the escrow agent shall only be

  8  required to post and maintain one such bond, regardless of the

  9  number of escrow accounts maintained by that agent for any

10  number of developers, managing entities, or timeshare plans at

11  any given time.

12         (14)  "Exchange company" means any person owning or

13  operating, or owning and operating, an exchange program.

14         (15)  "Exchange program" means any method, arrangement,

15  or procedure for the voluntary exchange of the right to use

16  and occupy accommodations and facilities among purchasers. The

17  term does not include the assignment of the right to use and

18  occupy accommodations and facilities to purchasers pursuant to

19  a particular multisite timeshare plan's reservation system.

20  Any method, arrangement, or procedure that otherwise meets

21  this definition, wherein the purchaser's total contractual

22  financial obligation exceeds $3,000 per any individual,

23  recurring timeshare period, shall be regulated as a multisite

24  timeshare plan in accordance with part II.

25         (16)  "Facility" means any amenity, including any

26  structure, furnishing, fixture, equipment, service,

27  improvement, or real or personal property, improved or

28  unimproved, other than the accommodation of the timeshare

29  plan, which is made available to the purchasers of a timeshare

30  plan. The term does not include an incidental benefit as

31  defined in this section.

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  1         (17)  "Incidental benefit" means an accommodation,

  2  product, service, discount, or other benefit which is offered

  3  to a prospective purchaser of a timeshare plan or to a

  4  purchaser of a timeshare plan prior to the expiration of his

  5  or her initial 10-day voidability period pursuant to s.

  6  721.10; which is not an exchange program as defined in

  7  subsection (15); and which complies with the provisions of s.

  8  721.075.  The term shall not include an offer of the use of

  9  the accommodations and facilities of the timeshare plan on a

10  free or discounted one-time basis.

11         (18)  "Independent," for purposes of determining

12  eligibility of escrow agents and trustees pursuant to s.

13  721.03(7)(8), means that:

14         (a)  The escrow agent or trustee is not a relative, as

15  described in s. 112.3135(1)(d), or an employee of the

16  developer, seller, or managing entity, or of any officer,

17  director, affiliate, or subsidiary thereof.

18         (b)  There is no financial relationship, other than the

19  payment of fiduciary fees or as otherwise provided in this

20  subsection, between the escrow agent or trustee and the

21  developer, seller, or managing entity, or any officer,

22  director, affiliate, or subsidiary thereof.

23         (c)  Compensation paid by the developer to an escrow

24  agent or trustee for services rendered shall not be paid from

25  funds in the escrow or trust account unless and until the

26  developer is otherwise entitled to receive the disbursement of

27  such funds from the escrow or trust account pursuant to this

28  chapter.

29         (d)  A person shall not be disqualified to serve as an

30  escrow agent or a trustee solely because of the following:

31

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  1         1.  A nonemployee, attorney-client relationship exists

  2  between the developer and the escrow agent or trustee;

  3         2.  The escrow agent or trustee provides brokerage

  4  services as defined by chapter 475 for the developer;

  5         3.  The escrow agent or trustee provides the developer

  6  with routine banking services which do not include

  7  construction or receivables financing or any other lending

  8  activities; or

  9         4.  The escrow agent or trustee performs closings for

10  the developer or seller or issues owner's or lender's title

11  insurance commitments or policies in connection with such

12  closings.

13         (19)  "Interestholder" means a developer, an owner of

14  the underlying fee, a mortgagee, judgment creditor, or other

15  lienor, or any other person having an interest in or lien or

16  encumbrance against the accommodations or facilities of the

17  timeshare plan.

18         (20)  "Managing entity" means the person who operates

19  or maintains the timeshare plan pursuant to s. 721.13(1).

20         (21)  "Memorandum of agreement" means a written

21  document, in recordable form, which includes the names of the

22  purchaser and seller and the purchasers, a legal description

23  of the timeshare property and all timeshare interests to be

24  included in such document period, and a description of the

25  type of timeshare license sold by the seller.

26         (22)  "Offer to sell," "offer for sale," "offered for

27  sale," or "offer" means the solicitation, advertisement, or

28  inducement, or any other method or attempt, to encourage any

29  person to acquire the opportunity to participate in a

30  timeshare plan.

31

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  1         (23)  "One-to-one purchaser to accommodation ratio"

  2  means the ratio of the number of purchasers eligible to use

  3  the accommodations of a timeshare plan on a given day to the

  4  number of accommodations available for use within the plan on

  5  that day, such that the total number of purchasers eligible to

  6  use the accommodations of the timeshare plan during a given

  7  calendar year never exceeds the total number of accommodations

  8  available for use in the timeshare plan during that year.  For

  9  purposes of calculation under this subsection, each purchaser

10  must be counted at least once, and no individual timeshare

11  unit may be counted more than 365 times per calendar year (or

12  more than 366 times per leap year).  A purchaser who is

13  delinquent in the payment of timeshare plan assessments shall

14  continue to be considered eligible to use the accommodations

15  of the timeshare plan for purposes of this subsection

16  notwithstanding any application of s. 721.13(6).

17         (24)  "Owner of the underlying fee" means any person

18  having an interest in the real property underlying the

19  accommodations or facilities of the timeshare plan at or

20  subsequent to the time of creation of the timeshare plan or

21  any person who purchases 15 or more timeshare periods for

22  resale in the ordinary course of business.

23         (25)  "Owners' association" means the association made

24  up of all purchasers of a timeshare plan who have purchased

25  timeshare estates.

26         (26)  "Public offering statement" means the written

27  materials describing a single-site timeshare plan or a

28  multisite timeshare plan, including a text and any exhibits

29  attached thereto as required by ss. 721.07, 721.55, and

30  721.551. The term "public offering statement" shall refer to

31

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  1  both a registered public offering statement and a purchaser

  2  public offering statement.

  3         (27)(26)  "Purchaser" means any person, other than a

  4  developer, who by means of a voluntary transfer acquires a

  5  legal or equitable interest in a timeshare plan other than as

  6  security for an obligation.

  7         (28)  "Purchaser public offering statement" means that

  8  portion of the registered public offering statement which must

  9  be delivered to purchasers pursuant to s. 721.07(6) or s.

10  721.551.

11         (29)  "Registered public offering statement" means a

12  public offering statement which has been filed with the

13  division pursuant to s. 721.07(5) or s. 721.55.

14         (30)(27)  "Regulated short-term product" means a

15  contractual right, offered by the seller, to use

16  accommodations of a timeshare plan or other accommodations,

17  provided that:

18         (a)  The agreement to purchase the short-term right to

19  use is executed in this state on the same day that the

20  prospective purchaser receives an offer to acquire an interest

21  in a timeshare plan and does not execute a purchase contract,

22  after attending a sales presentation; and

23         (b)  The acquisition of the right to use includes an

24  agreement that all or a portion of the consideration paid by

25  the prospective purchaser for the right to use will be applied

26  to or credited against the price of a future purchase of a

27  timeshare interest, or that the cost of a future purchase of a

28  timeshare interest will be fixed or locked in at a specified

29  price.

30         (31)(28)  "Seller" means any developer or any other

31  person, or any agent or employee thereof, who offers timeshare

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  1  interests periods in the ordinary course of business.  The

  2  term "seller" does not include:

  3         (a)  An owner of a timeshare interest period who has

  4  acquired the timeshare interest period for his or her own use

  5  and occupancy and who later offers it for resale; provided

  6  that a rebuttable presumption shall exist that an owner who

  7  has acquired more than seven timeshare interests periods did

  8  not acquire them for his or her own use and occupancy;

  9         (b)  A managing entity that is not otherwise a seller

10  and that offers, or engages a third party to offer on its

11  behalf, timeshare interests of a timeshare plan in its own

12  right and that offers timeshare periods for its own account in

13  a timeshare plan which it manages, provided that such offer

14  complies to existing purchasers of that timeshare plan, or a

15  managing entity which complies with the provisions of s.

16  721.065; or

17         (c)  A person who owns or is conveyed, assigned, or

18  transferred more than seven timeshare interests periods from a

19  developer in a single voluntary or involuntary transaction and

20  who subsequently conveys, assigns, or transfers all acquired

21  of the timeshare interests periods received from the developer

22  to a single purchaser in a single transaction, which

23  transaction may occur in stages; or

24         (d)  A person who has acquired or has the right to

25  acquire more than seven timeshare interests from a developer

26  or other interestholder in connection with security under a

27  loan or a securitization transaction and who subsequently

28  arranges for all or a portion of the timeshare interests to be

29  offered by one or more developers in the ordinary course of

30  business on their own behalves or on behalf of such person.

31

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  1         (32)(29)  "Timeshare estate" means a right to occupy a

  2  timeshare unit, coupled with a freehold estate or an estate

  3  for years with a future interest in a timeshare property or a

  4  specified portion thereof.  The term shall also mean an

  5  interest in a condominium unit pursuant to s. 718.103, an

  6  interest in a cooperative unit pursuant to s. 719.103, or an

  7  interest in a trust that complies in all respects with the

  8  provisions of s. 721.08(2)(c)3.

  9         (33)(30)  "Timeshare instrument" means one or more

10  documents, by whatever name denominated, creating or governing

11  the operation of a timeshare plan.

12         (34)  "Timeshare interest" means a timeshare estate or

13  timeshare license.

14         (35)(31)  "Timeshare license" means a right to occupy a

15  timeshare unit, which right is neither coupled with a freehold

16  interest, nor coupled with an estate for years with a future

17  interest, in a timeshare property.

18         (36)(32)  "Timeshare period" means the period or

19  periods of time when a purchaser of a timeshare interest plan

20  is afforded the opportunity to use the accommodations or

21  facilities, or both, of a timeshare plan.

22         (37)(33)  "Timeshare plan" means any arrangement, plan,

23  scheme, or similar device, other than an exchange program,

24  whether by membership, agreement, tenancy in common, sale,

25  lease, deed, rental agreement, license, or right-to-use

26  agreement or by any other means, whereby a purchaser, for

27  consideration, receives ownership rights in or a right to use

28  accommodations, and facilities, if any, for a period of time

29  less than a full year during any given year, but not

30  necessarily for consecutive years.

31

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  1         (38)(34)  "Timeshare property" means one or more

  2  timeshare units subject to the same timeshare instrument,

  3  together with any other property or rights to property

  4  appurtenant to those timeshare units. Notwithstanding anything

  5  to the contrary contained in chapter 718 or chapter 719, the

  6  timeshare instrument for a timeshare condominium or

  7  cooperative may designate personal property, contractual

  8  rights, affiliation agreements of component sites of vacation

  9  clubs, exchange companies, or reservation systems, or any

10  other agreements or personal property, as common elements or

11  limited common elements of the timeshare condominium or

12  cooperative.

13         (39)(35)  "Timeshare unit" means an accommodation of a

14  timeshare plan which is divided into timeshare periods. Any

15  timeshare unit in which a door or doors connecting two or more

16  separate rooms are capable of being locked to create two or

17  more private dwellings shall only constitute one timeshare

18  unit for purposes of this chapter, unless the timeshare

19  instrument provides that timeshare interests may be separately

20  conveyed in such locked-off portions.

21         (40)(36)  "Vacation ownership plan" means any timeshare

22  plan consisting exclusively of timeshare estates.

23         (41)(37)  "Vacation plan" or "vacation membership plan"

24  means any timeshare plan consisting exclusively of timeshare

25  licenses or consisting of a combination of timeshare licenses

26  and timeshare estates.

27         Section 10.  Section 721.06, Florida Statutes, is

28  amended to read:

29         721.06  Contracts for purchase of timeshare interests

30  periods.--

31

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  1         (1)  Each seller shall utilize, and furnish each

  2  purchaser a fully completed and executed copy of, a contract

  3  pertaining to the sale, which contract shall include the

  4  following information:

  5         (a)  The actual date the contract is executed by each

  6  party.

  7         (b)  The names and addresses of the developer, any

  8  owner of the underlying fee, and the timeshare plan.

  9         (c)  The total financial obligation of the purchaser,

10  including the initial purchase price and any additional

11  charges to which the purchaser may be subject in connection

12  with the purchase of the timeshare interest, such as

13  financing, or which will be collected from the purchaser on or

14  before closing, such as the current year's annual assessment

15  for common expenses.

16         (d)  Any annually recurring use charge and the next

17  year's estimated annual assessment for common expenses and for

18  ad valorem taxes or, if an estimate for next year's assessment

19  is unavailable, the current year's actual annual assessment

20  for common expenses and for ad valorem taxes. reservation,

21  maintenance, management, and recreation charges.

22         (e)(d)  The estimated date of completion of

23  construction of each accommodation or facility promised to be

24  completed which is not completed at the time the contract is

25  executed and the estimated date of closing.

26         (f)(e)  A brief description of the nature and duration

27  of the timeshare interest period being sold, including whether

28  any interest in real property is being conveyed and the

29  specific number of years constituting the term of the

30  timeshare plan.

31

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  1         (g)(f)  Immediately prior to the space reserved in the

  2  contract for the signature of the purchaser, in conspicuous

  3  type, substantially the following statements:

  4

  5         You may cancel this contract without any penalty or

  6  obligation within 10 calendar days after the date you sign

  7  this contract, and within 10 calendar days after the date you

  8  receive the approved public offering statement, whichever is

  9  later.

10         If you decide to cancel this contract, you must notify

11  the seller developer in writing of your intent to cancel.

12  Your notice of cancellation shall be effective upon the date

13  sent and shall be sent to ...(Name of Seller Developer)... at

14  ...(Address of Seller Developer)....  Any attempt to obtain a

15  waiver of your cancellation right is void and of no effect

16  unlawful.  While you may execute all closing documents in

17  advance, the closing, as evidenced by delivery of the deed or

18  other document, before expiration of your 10-day cancellation

19  period, is prohibited.

20

21         (h)(g)  If a timeshare estate license is being

22  conveyed, the following statement in conspicuous type:

23

24         You may also cancel this contract at any time after the

25  accommodations or facilities are no longer available as

26  provided in this contract and the public offering statement.

27

28         (h)  If a timeshare estate is being conveyed, the

29  following statement in conspicuous type:

30

31

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  1         For the purpose of ad valorem assessment, taxation and

  2  special assessments, the managing entity will be considered

  3  the taxpayer as your agent pursuant to section 192.037,

  4  Florida Statutes.

  5

  6         (i)  A statement that, in the event the purchaser

  7  cancels the contract during a 10-day cancellation period, the

  8  developer will refund to the purchaser the total amount of all

  9  payments made by the purchaser under the contract, reduced by

10  the proportion of any contract benefits the purchaser has

11  actually received under the contract prior to the effective

12  date of the cancellation.  The statement shall further provide

13  that the refund will be made within 20 days after receipt of

14  notice of cancellation or within 5 days after receipt of funds

15  from the purchaser's cleared check, whichever is later. A

16  seller and a purchaser shall agree in writing on a specific

17  value for each contract benefit received by the purchaser for

18  purposes of this paragraph. The term "contract benefit" shall

19  not include purchaser public offering statements or other

20  documentation or materials that must be furnished to a

21  purchaser pursuant to statute or rule.

22         (j)  If the timeshare interest period is being sold

23  pursuant to an agreement for deed, a statement that the

24  signing of the agreement for deed does not entitle the

25  purchaser to receive a deed until all payments under the

26  agreement have been made.

27         (k)  Unless the developer is at the time of offering

28  the plan the owner in fee simple absolute of the

29  accommodations and facilities of the timeshare plan, free and

30  clear of all liens and encumbrances, a statement that the

31  developer is not the sole owner of the underlying fee of such

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  1  the accommodations or facilities without liens or

  2  encumbrances, which statement shall include:

  3         1.  The names and addresses of all persons or entities

  4  having an ownership interest or other interest in the

  5  accommodations or facilities; and

  6         2.  The actual interest of the developer in the

  7  accommodations or facilities. As an alternative to including

  8  the statement in the purchase contract, a seller may include a

  9  reference to the location of such information in the purchaser

10  public offering statement text.

11         (l)  If the contract is for the sale or transfer of a

12  timeshare period in which the accommodations or facilities are

13  subject to a lease, the following statement within the text in

14  conspicuous type: This timeshare period is subject to a lease

15  (or sublease).  A copy of the executed lease shall be attached

16  as an exhibit.

17         (l)(m)  If the purchaser will receive an interest in a

18  multisite timeshare plan pursuant to part II, the following

19  statement shall be provided in conspicuous type in

20  substantially the following form:

21

22         The developer is required to provide the managing

23  entity of the multisite timeshare plan (or multisite vacation

24  ownership plan or multisite vacation plan or vacation club)

25  with a copy of the approved public offering statement text and

26  exhibits filed with the division and any approved amendments

27  thereto, and any other component site documents as described

28  in section 721.07 or section 721.55, Florida Statutes, that

29  are not required to be not filed with the division, to be

30  maintained by the managing entity for inspection as part of

31  the books and records of the plan.

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  1

  2         (m)(n)  The following statement in conspicuous type:

  3

  4         Any resale of this timeshare interest must be

  5  accompanied by certain disclosures in accordance with section

  6  721.065, Florida Statutes.

  7

  8         (n)  A description of any rights reserved by the

  9  developer to alter or modify the offering prior to closing.

10         (2)  An agreement for deed shall be recorded by the

11  developer within 30 days after the day it is executed by the

12  purchaser.  The developer shall pay all recording costs

13  associated therewith.

14         (3)  The escrow agent shall provide the developer with

15  a receipt for all purchaser funds or other property received

16  by the escrow agent from a seller.

17         (4)  A developer may not offer any number of timeshare

18  estates or timeshare licenses that would cause the total

19  number of estates or licenses offered to exceed a one-to-one

20  purchaser to accommodation ratio.

21         Section 11.  Section 721.065, Florida Statutes, is

22  amended to read:

23         721.065  Resale purchase agreements.--

24         (1)  An owner who acquires a timeshare interest period

25  for her or his own use and occupancy and later offers it for

26  resale, or any agent of such person, must utilize a resale

27  purchase agreement which complies with the provisions of

28  subsection (2) to effectuate any resale of the timeshare

29  interest period.  A managing entity that is not otherwise a

30  developer and that, for its own account, sells, or engages a

31  third party to sell on its behalf, 50 or fewer timeshare

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1  interests which, for its own account, offers fewer than 20

  2  timeshare periods in the timeshare plan which it manages in a

  3  given calendar year to persons who are not existing purchasers

  4  of that timeshare plan may also use a resale purchase

  5  agreement which complies with subsection (2) in lieu of

  6  complying with the provisions of ss. 721.06-721.12 and 721.20.

  7  A managing entity that is not otherwise a developer and that

  8  sells, or engages a third party to sell on its behalf,

  9  timeshare interests in the timeshare plan which it manages to

10  persons who are existing purchasers of that timeshare plan may

11  also use a resale purchase agreement in compliance with

12  subsection (2) in lieu of complying with the provisions of ss.

13  721.06-721.12 and 721.20. For purposes of this subsection, a

14  rebuttable presumption shall exist that an owner who has

15  acquired more than seven timeshare interests periods did not

16  acquire them for her or his own use and occupancy.

17         (2)  Any resale purchase agreement utilized by a person

18  described in subsection (1) must contain all of the following:

19         (a)  The name and address of the timeshare plan and of

20  the managing entity of the timeshare plan.

21         (b)  The following statements in conspicuous type

22  located immediately prior to the disclosure required by

23  paragraph (c):

24

25  The current year's assessment for common expenses allocable to

26  the timeshare interest period you are purchasing is $.....

27  This assessment, which may be increased from time to time by

28  the managing entity of the timeshare plan, is payable in full

29  each year on or before ......... This assessment

30  (includes/does not include) yearly ad valorem real estate

31  taxes, which (are/are not) billed and collected separately.

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1  (If ad valorem real property taxes are not included in the

  2  current year's assessment for common expenses, the following

  3  statement must be included:  The most recent annual assessment

  4  for ad valorem real estate taxes for the timeshare interest

  5  period you are purchasing is $.....) (If there are any

  6  delinquent assessments for common expenses or ad valorem taxes

  7  outstanding with respect to the timeshare interest period in

  8  question, the following statement must be included:  A

  9  delinquency in the amount of $.... for unpaid common expenses

10  or ad valorem taxes currently exists with respect to the

11  timeshare interest period you are purchasing, together with a

12  per diem charge of $.... for interest and late charges.) For

13  the purpose of ad valorem assessment, taxation, and special

14  assessments, the managing entity will be considered the

15  taxpayer as your agent pursuant to section 192.037, Florida

16  Statutes.  Each owner is personally liable for the payment of

17  her or his assessments for common expenses, and failure to

18  timely pay these assessments may result in restriction or loss

19  of your use and/or ownership rights.

20

21  There are many important documents relating to the timeshare

22  plan which you should review prior to purchasing a timeshare

23  interest period, including the declaration of condominium or

24  covenants and restrictions; the association articles and

25  bylaws; the current year's operating and reserve budgets; and

26  any rules and regulations affecting the use of timeshare plan

27  accommodations and facilities.

28

29         (c)  The following statement in conspicuous type

30  located immediately prior to the space in the contract

31  reserved for the signature of the purchaser:

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  1

  2  You may cancel this contract without any penalty or obligation

  3  within 10 days after the date you sign this contract. If you

  4  decide to cancel this contract, you must notify the seller in

  5  writing of your intent to cancel. Your notice of cancellation

  6  shall be effective upon the date sent and shall be sent to the

  7  seller at ...(address)....  Any attempt to obtain a waiver of

  8  your cancellation right is void and of no effect.  While you

  9  may execute all closing documents in advance, the closing, as

10  evidenced by delivery of the deed or other document, before

11  expiration of your 10-day cancellation period, is prohibited.

12

13         (d)  The year in which the purchaser will first be

14  entitled to occupancy of a timeshare period associated with

15  the timeshare interest that is the subject of the resale

16  purchase agreement.

17         (3)  If a resale purchase agreement utilized by a

18  person described in subsection (1) does not comply with the

19  provisions of subsection (2), the contract shall be voidable

20  at the option of the purchaser for a period of 1 year after

21  the date of closing.

22         Section 12.  Section 721.07, Florida Statutes, is

23  amended to read:

24         721.07  Public offering statement.--Prior to offering

25  any timeshare plan, the developer must submit file a

26  registered public offering statement to with the division for

27  approval as prescribed by s. 721.03, s. 721.55, or this

28  section.  Until the division approves such filing, any

29  contract regarding the sale of that the timeshare plan which

30  is the subject of the public offering statement is voidable by

31  the purchaser.

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1         (1)  The division shall, upon receiving a registered

  2  public offering statement from a developer, mail to the

  3  developer an acknowledgment of receipt.  The failure of the

  4  division to send such acknowledgment will not, however,

  5  relieve the developer from the duty of complying with this

  6  section.

  7         (2)(a)  Within 45 days after receipt of a registered

  8  public offering statement which is subject only to this part

  9  and is submitted in proper form as prescribed by rule, or

10  within 120 days after receipt of a registered public offering

11  statement which is subject to part II and is submitted in

12  proper form as prescribed by rule, the division shall

13  determine whether the proposed registered public offering

14  statement is adequate to meet the requirements of this section

15  and shall notify the developer by mail that the division has

16  either approved the statement or found specified deficiencies

17  in the statement.  If the division fails to approve the

18  statement or specify deficiencies in the statement within the

19  period specified in this paragraph, the filing will be deemed

20  approved.

21         (b)  If the developer fails to respond to any cited

22  deficiencies within 20 days after receipt of the division's

23  deficiency notice, the division may reject the filing.

24  Subsequent to such rejection, a new filing fee pursuant to

25  subsection (4) and a new division initial review period

26  pursuant to paragraph (a) shall apply to any refiling or

27  further review of the rejected filing.

28         (c)  Within 20 days after receipt of the developer's

29  timely and complete response to any deficiency notice, the

30  division shall notify the developer by mail that the division

31  has either approved the filing, found additional specified

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    Florida Senate - 2000                                   SB 908
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  1  deficiencies in it, or determined that any previously

  2  specified deficiency has not been corrected.  If the division

  3  fails to approve or specify additional deficiencies within 20

  4  days after receipt of the developer's timely and complete

  5  response, the filing will be deemed approved.

  6         (d)  A developer shall have the authority to deliver to

  7  purchasers any purchaser public offering statement that is not

  8  yet approved by the division, provided that the following

  9  shall apply:

10         1.  At the time the developer delivers an unapproved

11  purchaser public offering statement to a purchaser pursuant to

12  this paragraph, the developer shall deliver a fully completed

13  and executed copy of the purchase contract required by s.

14  721.06 that contains the following statement in conspicuous

15  type in substantially the following form which shall replace

16  the statements required by s. 721.06(1)(g):

17

18  The developer is delivering to you a public offering statement

19  that has been filed with but not yet approved by the Division

20  of Florida Land Sales, Condominiums, and Mobile Homes. Any

21  revisions to the unapproved public offering statement you have

22  received must be delivered to you, but only if the revisions

23  materially alter or modify the offering in a manner adverse to

24  you. After the division approves the public offering

25  statement, you will receive notice of the approval from the

26  developer and the required revisions, if any.

27

28  Your statutory right to cancel this transaction without any

29  penalty or obligation expires 10 calendar days after the date

30  you signed your purchase contract or after you receive

31

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    Florida Senate - 2000                                   SB 908
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  1  revisions required to be delivered to you, if any, whichever

  2  is later.

  3

  4         2.  After receipt of approval from the division and

  5  prior to closing, if any revisions made to the documents

  6  contained in the purchaser public offering statement

  7  materially alter or modify the offering in a manner adverse to

  8  a purchaser, the developer shall send the purchaser such

  9  revisions together with a notice containing a statement in

10  conspicuous type in substantially the following form:

11

12  The unapproved public offering statement previously delivered

13  to you, together with the enclosed revisions, has been

14  approved by the Division of Florida Land Sales, Condominiums,

15  and Mobile Homes. Accordingly, your cancellation right expires

16  10 days after you sign your purchase contract or you receive

17  these revisions, whichever is later. If you have any questions

18  regarding your cancellation rights, you may contact the

19  division at [insert division's current address].

20

21         3.  After receipt of approval from the division and

22  prior to closing, if no revisions have been made to the

23  documents contained in the unapproved purchaser public

24  offering statement, or if such revisions do not materially

25  alter or modify the offering in a manner adverse to a

26  purchaser, the developer shall send the purchaser a notice

27  containing a statement in conspicuous type in substantially

28  the following form:

29

30  The unapproved public offering statement previously delivered

31  to you has been approved by the Division of Florida Land

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    Florida Senate - 2000                                   SB 908
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  1  Sales, Condominiums, and Mobile Homes. Revisions made to the

  2  unapproved public offering statement, if any, are either not

  3  required to be delivered to you or are not deemed by the

  4  developer to materially alter or modify the offering in a

  5  manner that is adverse to you. Accordingly, your cancellation

  6  right expired 10 days after you signed your purchase contract.

  7  A complete copy of the approved public offering statement is

  8  available through the managing entity for inspection as part

  9  of the books and records of the plan. If you have any

10  questions regarding your cancellation rights, you may contact

11  the division at [insert division's current address]. The

12  division is authorized to enter into an agreement with another

13  state for the purpose of facilitating the processing of

14  out-of-state timeshare instruments or other component site

15  documents pursuant to subsection (5) or part II and for the

16  purpose of facilitating the referral of consumer complaints to

17  the appropriate state.

18

19         (e)  The division shall have no authority to determine

20  whether any person has complied with another state's laws or

21  to disapprove any filing, or out-of-state timeshare instrument

22  or component site document, based solely upon the lack or

23  degree of timeshare regulation in another state.  The division

24  may require a developer to obtain and provide to the division

25  existing documentation certified by another state relating to

26  an out-of-state filing, timeshare instrument, or component

27  site document and attesting to the compliance of same with the

28  laws of that state.  The division may accept evidence of the

29  approval or acceptance of any out-of-state filing, timeshare

30  instrument, or component site document by another state in

31  lieu of requiring a developer to file the out-of-state filing,

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  1  timeshare instrument, or component site document with the

  2  division pursuant to this section.  The division may refuse to

  3  approve the inclusion of any out-of-state filing, timeshare

  4  instrument, or component site document as part of a public

  5  offering statement based upon the inability of the developer

  6  to establish the compliance of same with the laws of another

  7  state.

  8         (3)(a)1.  Any change to an approved filing shall be

  9  filed with the division for approval as an amendment prior to

10  becoming effective.  The division shall have 20 days after

11  receipt of a proposed amendment to approve or cite

12  deficiencies in the proposed amendment.  If the division fails

13  to act within 20 days, the amendment will be deemed approved.

14  If the proposed amendment adds a new component site to an

15  approved multisite timeshare plan, the division's initial

16  period in which to approve or cite deficiencies is 45 days. If

17  the developer fails to adequately respond to any deficiency

18  notice within 30 days, the division may reject the amendment.

19  Subsequent to such rejection, a new filing fee pursuant to

20  subsection (4) and a new division initial review period

21  pursuant to this paragraph shall apply to any refiling or

22  further review of the rejected amendment.

23         2.  For filings only subject to this part, each

24  approved amendment to the approved purchaser public offering

25  statement, other than an amendment made only for the purpose

26  of the addition of a phase or phases to the timeshare plan in

27  the manner described in the timeshare instrument or any

28  amendment that does not materially alter or modify the

29  offering in a manner that is adverse to a purchaser, shall be

30  delivered to a purchaser no later than 10 days prior to

31  closing. For filings made under part II, each approved

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1  amendment to the multisite timeshare plan purchaser public

  2  offering statement, other than an amendment made only for the

  3  purpose of the addition, substitution, or deletion of a

  4  component site pursuant to part II or the addition of a phase

  5  or phases to a component site of a multisite timeshare plan in

  6  the manner described in the timeshare instrument or any

  7  amendment that does not materially alter or modify the

  8  offering in a manner that is adverse to a purchaser, shall be

  9  delivered to a purchaser no later than 10 days prior to

10  closing.

11         3.  Amendments made to a timeshare instrument for a

12  component site located in this state are not required to shall

13  only be delivered to those purchasers who do not will receive

14  a timeshare estate or a specific timeshare license in that

15  component site.  Amendments made to a timeshare instrument for

16  a component site not located in this state are not required to

17  be delivered to purchasers.

18         (b)  At the time that any amendments required to be

19  delivered to purchasers, as provided in paragraph (a), are

20  delivered to purchasers, the developer shall provide to those

21  purchasers who have not closed a written statement that if any

22  of such amendments materially alter or modify the offering in

23  a manner which is adverse to the purchaser, the purchaser or

24  lessee will have a 10-day voidability period.

25         (4)(a)  Upon the filing of a registered public offering

26  statement, the developer shall pay a filing fee of $2 for each

27  7 days of annual use availability in each timeshare unit that

28  may be offered as a part of the proposed timeshare plan

29  pursuant to the filing. Commencing January 1, 1995, the

30  division may by rule increase the filing fee up to a maximum

31  of $3 for each 7 days of annual use availability in each

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  1  timeshare unit that is offered as a part of the proposed

  2  timeshare plan.

  3         (b)  Upon the filing of an amendment to an approved

  4  registered public offering statement, other than an amendment

  5  adding a phase to the timeshare plan, the developer shall pay

  6  a filing fee of $100.

  7         (5)  Every registered public offering statement filed

  8  with the division for a timeshare plan which is not a

  9  multisite multistate timeshare plan shall contain the

10  information required by this subsection. The division is

11  authorized to provide by rule the method by which a developer

12  must provide such information to the division.

13         (a)  A cover page stating only:

14         1.  The name of the timeshare plan; and

15         2.  The following statement, in conspicuous type:  This

16  public offering statement contains important matters to be

17  considered in acquiring a timeshare interest period.  The

18  statements contained in this public offering statement herein

19  are only summary in nature. A prospective purchaser should

20  refer to all references, accompanying exhibits hereto,

21  contract documents, and sales materials.  You should not rely

22  upon oral representations as being correct.  Refer to this

23  document and accompanying exhibits for correct

24  representations.  The seller is prohibited from making any

25  representations other than those contained in the contract and

26  this public offering statement.

27         (b)  A listing of all statements required to be in

28  conspicuous type in the public offering statement statements

29  and in all exhibits thereto.

30         (c)  A separate index of the contents and exhibits of

31  the public offering statement.

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  1         (d)  A text, which shall include, where applicable, the

  2  disclosures set forth in paragraphs (e)-(hh) and

  3  cross-references to the location in the public offering

  4  statement of each exhibit.

  5         (e)  A description of the timeshare plan, including,

  6  but not limited to:

  7         1.  Its name and location.

  8         2.  An explanation of the form of timeshare ownership

  9  that is being offered, including a statement as to whether any

10  interest in the underlying real property will be conveyed to

11  the purchaser. If the plan is being created or being sold on a

12  leasehold, a description of the material terms of the lease

13  shall be included the location of the lease in the exhibits to

14  the public offering statement shall be stated.

15         3.  An explanation of the manner in which the

16  apportionment of common expenses and ownership of the common

17  elements has been determined.

18         (f)  A description of the accommodations and

19  facilities, including, but not limited to:

20         1.  The number of timeshare buildings, the number of

21  units in each building, the number of timeshare periods in

22  each unit, the total number of timeshare periods declared as

23  part of the timeshare plan and filed with the division, and

24  being offered, the number of bathrooms and bedrooms in each

25  type of timeshare unit, and the total number of units and unit

26  weeks.

27         2.  The latest date estimated for completion of

28  constructing, finishing, and equipping the timeshare units

29  declared as part of the timeshare plan and filed with the

30  division.

31

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  1         3.  The estimated maximum number of units and timeshare

  2  periods that will use the accommodations and facilities.  If

  3  the maximum number of timeshare units or timeshare periods

  4  will vary, a description of the basis for variation and the

  5  minimum amount of dollars per timeshare period to be spent for

  6  additional recreational facilities or for enlargement of such

  7  facilities.  If the addition or enlargement of facilities will

  8  result in a material increase of a purchaser's maintenance

  9  expense or rental expense, the maximum increase and

10  limitations thereon shall be stated.

11         4.  A statement of whether the developer intends to

12  offer whole units in addition to timeshare units.

13         4.5.  The duration, in years, of the timeshare plan.

14         (g)  A description of the recreational and other

15  commonly used facilities that will be used only by purchasers

16  of the plan, including, but not limited to:

17         1.  The intended purpose, if not apparent from the

18  description. Each room and its intended purposes, location

19  capacity in numbers of people.

20         2.  Each swimming pool and its general location,

21  approximate size, depths, and capacity; its approximate deck

22  size and capacity; and whether the pool is heated.

23         3.  Each additional facility; the number of each such

24  facility; and its approximate location, approximate size, and

25  approximate capacity.

26         4.  A general description of the items of personal

27  property and the approximate numbers of each item of personal

28  property that the developer is committing to furnish for each

29  room or other facility or, in the alternative, a

30  representation as to the minimum amount of expenditure that

31

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  1  will be made to purchase the personal property for the

  2  facility.

  3         2.5.  The estimated date when each room or other

  4  facility will be available for use by the purchaser.

  5         6.  An identification of each room, accommodation, or

  6  other facility to be used by purchasers that will not be owned

  7  by the purchasers or the association.

  8         7.  A reference to the location in the disclosure

  9  materials of the lease or other agreements providing for the

10  use of those facilities.

11         8.  A description of the terms of the lease or other

12  agreement, including the length of its term; the rent payable,

13  directly or indirectly, by each purchaser; and the total rent

14  payable to the lessor, stated in weekly, monthly, and annual

15  amounts for the entire term of the lease; and a description of

16  any option to purchase the property under any such lease,

17  including the time the option may be exercised, the purchase

18  price or how it is to be determined, the manner of payment,

19  and whether the option may be exercised for a purchaser's

20  share or only as to the entire leased property.

21         3.9.  A statement as to whether the facilities will

22  developer may provide additional facilities not described

23  above; the general locations and types of such facilities;

24  improvements or changes that may be made; the approximate

25  dollar amounts to be expended; and the estimated maximum

26  additional common expense or cost to the individual purchaser

27  that may be charged during the first annual period of

28  operation of the modified or added facilities.

29         (h)  A description of the recreational and other

30  commonly used facilities which will not be used exclusively by

31  purchasers of the timeshare plan, and, if not, a statement as

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  1  to whether the purchasers of the timeshare plan are required

  2  to pay and which require the payment of any portion of the

  3  maintenance and expenses of such facilities., either directly

  4  or indirectly, by the purchasers. The description shall

  5  include, but not be limited to, the following:

  6         1.  Each building or facility committed to be built.

  7         2.  Facilities not committed to be built except under

  8  certain conditions, and a statement of those conditions or

  9  contingencies.

10         3.  As to each facility committed to be built, or which

11  will be committed to be built upon the happening of one of the

12  conditions in subparagraph 2., a statement as to whether it

13  will be owned by the purchasers having the use thereof or by

14  an association or other entity which will be controlled by the

15  purchasers, or others, and the location in the exhibits of the

16  lease or other document providing for use of those facilities.

17         4.  The year in which each facility will be available

18  for use by the purchasers or, in the alternative, the maximum

19  number of purchasers in the project at the time each of the

20  facilities is committed to be completed.

21         5.  A general description of the items of personal

22  property and the approximate numbers of each item of personal

23  property that the developer is committing to furnish for each

24  room or other facility or, in the alternative, a

25  representation as to the minimum amount of expenditure that

26  will be made to purchase the personal property for the

27  facility.

28         6.  If there are leases, descriptions thereof,

29  including the length of their terms, the rents payable, and

30  descriptions of any options to purchase.

31

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  1         (h)(i)1.  If any recreational facilities or other

  2  facilities offered by the developer for use by purchasers are

  3  to be leased or have club memberships membership associated

  4  with them, other than participation in a vacation club, one of

  5  the following statements in conspicuous type: There is a

  6  recreational facilities lease associated with one or more

  7  facilities of the this timeshare plan; or, There is a club

  8  membership associated with one or more facilities of the this

  9  timeshare plan.  There shall be a reference to the location in

10  the disclosure materials where the recreation lease or club

11  membership is described in detail.

12         2.  If it is mandatory that purchasers unit owners pay

13  fees, rent, dues, or other charges under a recreational

14  facilities lease or club membership for the use of the

15  facilities, other than participation in a vacation club, the

16  applicable statement in conspicuous type in substantially the

17  following form:

18         a.  Membership in a the recreational facilities club is

19  mandatory for purchasers;

20         b.  Purchasers or the association(s) are required, as a

21  condition of ownership, to be lessees under the recreational

22  facilities lease;

23         c.  Purchasers or the association(s) are required to

24  pay their share of the rent or costs and expenses of

25  maintenance, management, upkeep, and replacement, rent, and

26  fees under the recreational facilities lease (or the other

27  instruments providing the facilities); or

28         d.  A similar statement of the nature of the

29  organization or the manner in which the use rights are

30  created, and that purchasers are required to pay.

31

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  1  Immediately following the applicable statement a description

  2  of the lease or other instrument shall be stated, including a

  3  description of terms of the payment of rent or costs and

  4  expenses of maintenance, management, upkeep, and replacement

  5  of the facilities, the location in the disclosure materials

  6  where the development is described in detail shall be stated.

  7         3.  If the purchasers are required to pay a use If the

  8  developer, or any other person other than the purchasers and

  9  other persons having use rights in the facilities, reserves,

10  or is entitled to receive, any rent, fee, or other payment for

11  the use of the facilities, not including the rent or

12  maintenance, management, upkeep, or replacement costs and

13  expenses, the following statement in conspicuous type:  The

14  purchasers or the association(s) must pay rent or land use

15  fees for one or more recreational or other commonly used

16  facilities.  Immediately following this statement a

17  description of the use fees shall be included, the location in

18  the disclosure materials where the rent or land use fees are

19  described in detail shall be stated.

20         4.  If, in any recreation format, whether leasehold,

21  club, or other, any person other than the association has the

22  right to a lien on the timeshare interests periods to secure

23  the payment of assessments, rent, or other exactions, a

24  statement in conspicuous type in substantially the following

25  form:

26         a.  There is a lien or lien right against each

27  timeshare interest period to secure the payment of rent and

28  other exactions under the facilities recreation lease. A

29  purchaser's failure to make these payments may result in

30  foreclosure of the lien; or

31

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1         b.  There is a lien or lien right against each

  2  timeshare interest period to secure the payment of assessments

  3  or other exactions coming due for the use, maintenance,

  4  upkeep, or repair of one or more the recreational or commonly

  5  used facilities.  A purchaser's failure to make these payments

  6  may result in foreclosure of the lien.

  7

  8  Immediately following the applicable statement, a description

  9  of the lien right shall be included the location in the

10  disclosure materials where the lien or lien right is described

11  in detail shall be stated.

12         (i)(j)  If the developer or any other person has the

13  right to increase or add to the recreational facilities at any

14  time after the establishment of the timeshare plan, without

15  the consent of the purchasers or association being required, a

16  statement in conspicuous type in substantially the following

17  form: Recreational Facilities may be expanded or added without

18  consent of the purchasers or the association(s). Immediately

19  following this statement, a description of the location in the

20  disclosure materials where such reserved rights are described

21  shall be included stated.

22         (j)(k)  An explanation of the status of the title to

23  the real property underlying the timeshare plan, including a

24  statement of the existence of any lien, defect, judgment,

25  mortgage, or other encumbrance affecting the title to the

26  property, and how such lien, defect, judgment, mortgage, or

27  other encumbrance will be removed or satisfied prior to

28  closing.

29         (k)(l)  A description of any judgment against the

30  developer, the managing entity, or owner of the underlying

31  fee, which judgment is material to the timeshare plan; the

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    Florida Senate - 2000                                   SB 908
    12-663A-00                                              See HB




  1  status of any pending suit to which the developer, the

  2  managing entity, or owner of the underlying fee is a party,

  3  which suit is material to the timeshare plan; and any other

  4  suit which is material to the timeshare plan of which the

  5  developer, managing entity, or owner of the underlying fee has

  6  actual knowledge.  If no judgments or pending suits exist,

  7  there shall be a statement of such fact.

  8         (l)(m)  A description of all unusual and material

  9  circumstances, features, and characteristics of the real

10  property.

11         (m)(n)  A description of any financing to be offered to

12  purchasers by the developer or any person or entity in which

13  the developer has a financial interest, together with a

14  disclosure that the description of such financing may be

15  changed by the developer and that any change in the financing

16  offered to prospective purchasers will not be deemed to be a

17  material change.

18         (n)(o)  A detailed explanation of any financial

19  arrangements which have been provided for completion of all

20  promised improvements.

21         (p)  A statement as to whether the plan of the

22  developer includes a program of leasing units or timeshare

23  periods rather than selling them, or leasing and selling them

24  subject to such leases.  If so, there shall be a description

25  of the plan, including the number and identification of the

26  units and the provisions and term of the proposed leases, and

27  a statement in conspicuous type that:  The units (or timeshare

28  periods) may be transferred subject to a lease.

29         (o)(q)  The name and address of the managing entity; a

30  statement whether the seller may change the managing entity or

31  its control and, if so, the manner by which the seller may

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    12-663A-00                                              See HB




  1  change the managing entity; a statement of the arrangements

  2  for management, maintenance, and operation of the

  3  accommodations and facilities and of other property that will

  4  serve the purchasers; and a description of the management

  5  arrangement and any contracts for these purposes having a term

  6  in excess of 1 year, including the names of the contracting

  7  parties, the term of the contract, the nature of the services

  8  included, and the compensation, stated for a month and for a

  9  year, and provisions for increases in the compensation.

10  Copies of all described contracts shall be attached as

11  exhibits.

12         (p)(r)  If the developer, or any person other than the

13  purchasers purchaser, has the right to retain control of the

14  board of administration of the association for a period of

15  time which may exceed 1 year after the closing of the sale of

16  a majority of the timeshare interests units in that timeshare

17  plan to persons other than successors or concurrent developers

18  and the plan is one in which all purchasers automatically

19  become members of the association, a statement in conspicuous

20  type in substantially the following form: The developer (or

21  other person) has the right to retain control of the

22  association after a majority of the timeshare interests units

23  have been sold. Immediately following this statement, a

24  description of the applicable transfer of control provisions

25  of the timeshare plan shall be included the location in the

26  disclosure materials where this right to control is described

27  in detail shall be stated.

28         (q)(s)1.  If there are any restrictions upon the sale,

29  transfer, conveyance, or leasing of a timeshare interest

30  period, a statement in conspicuous type in substantially the

31  following form: The sale, lease, or transfer of timeshare

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    12-663A-00                                              See HB




  1  interests periods is restricted or controlled.  Immediately

  2  following this statement, a description of the nature of the

  3  location in the disclosure materials where the restriction,

  4  limitation, or control on the sale, lease, or transfer of

  5  timeshare interests periods is described in detail shall be

  6  included stated.

  7         2.  The following statement in conspicuous type in

  8  substantially the following form: The purchase of a timeshare

  9  interest period should be based upon its value as a vacation

10  experience or for spending leisure time, and not considered

11  for purposes of acquiring an appreciating investment or with

12  an expectation that the timeshare interest period may be

13  resold.

14         (r)(t)  If the timeshare plan is part of a phase

15  project, a statement to that effect and a complete description

16  of the phasing. Notwithstanding any provisions of s. 718.110

17  or s. 719.1055, a developer may develop a timeshare

18  condominium or a timeshare cooperative in phases if the

19  original declaration of condominium or cooperative documents

20  submitting the initial phase to condominium ownership or

21  cooperative ownership or an amendment to the declaration of

22  condominium or cooperative documents which has been approved

23  by all of the unit owners and unit mortgagees provides for

24  phasing. Notwithstanding any provisions of s. 718.403 or s.

25  719.403 to the contrary, the original declaration of

26  condominium or cooperative documents, or an amendment to the

27  declaration of condominium or cooperative documents adopted

28  pursuant to this subsection, need only generally describe the

29  developer's phasing plan and the land which may become part of

30  the condominium or cooperative, and, in conjunction therewith,

31  the developer may also reserve all rights to vary his or her

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    12-663A-00                                              See HB




  1  phasing plan as to phase boundaries, plot plans and floor

  2  plans, timeshare unit types, timeshare unit sizes and

  3  timeshare unit type mixes, numbers of timeshare units, and

  4  recreational areas and facilities with respect to each

  5  subsequent phase. There shall be no time limit during which a

  6  developer of a timeshare condominium or timeshare cooperative

  7  must complete his or her phasing plan, and the developer shall

  8  not be required to notify owners of existing timeshare estates

  9  of his or her decision not to add one or more proposed phases.

10         (s)(u)  A description of the material restrictions, if

11  any, to be imposed on timeshare interests periods concerning

12  the use of any of the accommodations or facilities, including

13  statements as to whether there are restrictions upon children

14  and pets or a reference to, and references to the volumes and

15  pages of the timeshare plan documents where such restrictions

16  are found; or, if such restrictions are contained elsewhere,

17  then a copy of the documents containing the restrictions which

18  shall be attached as an exhibit.  If there are no

19  restrictions, there shall be a statement of such fact.

20         (t)(v)  If there is any land that is offered by the

21  developer for use by the purchasers and which is neither owned

22  by them nor leased to them, the association, or any entity

23  controlled by the purchasers, a statement describing the land,

24  how it will serve the timeshare plan, and the nature and term

25  of service.  Immediately following this statement, the

26  location in the disclosure materials where the declaration or

27  other instrument creating such servitude is found shall be

28  stated.

29         (w)  A description of the manner in which utility and

30  other services, including, but not limited to, sewage and

31  waste disposal, water supply, and storm drainage, will be

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    12-663A-00                                              See HB




  1  provided and the names of the persons or entities furnishing

  2  them.

  3         (u)(x)  An estimated operating budget for the timeshare

  4  plan and a schedule of the purchaser's expenses expense shall

  5  be attached as an exhibit and shall contain the following

  6  information:

  7         1.  The estimated annual expenses of the timeshare plan

  8  collectible from purchasers by assessments.  The estimated

  9  payments by the purchaser for assessments shall also be stated

10  in the estimated amounts for the times when they will be due.

11  Expenses shall also be shown for the shortest timeshare period

12  offered for sale by the developer.  If the timeshare plan

13  provides for the offer and sale of units to be used on a

14  nontimeshare basis, the estimated monthly and annual expenses

15  of such units shall be set forth in a separate schedule.

16         2.  The estimated weekly, monthly, and annual expenses

17  of the purchaser of each timeshare interest period, other than

18  assessments payable to the managing entity.  Expenses which

19  are personal to purchasers that are not uniformly incurred by

20  all purchasers or that are not provided for or contemplated by

21  the timeshare plan documents may be excluded from this

22  estimate.

23         3.  The estimated items of expenses of the timeshare

24  plan and the managing entity, except as excluded under

25  subparagraph 2., including, but not limited to, if applicable,

26  the following items, which shall be stated either as

27  management expenses collectible by assessments or as expenses

28  of the purchaser payable to persons other than the managing

29  entity:

30         a.  Expenses for the managing entity:

31         (I)  Administration of the managing entity.

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    12-663A-00                                              See HB




  1         (II)  Management fees.

  2         (III)  Maintenance.

  3         (IV)  Rent for recreational and other commonly used

  4  facilities.

  5         (V)  Taxes upon timeshare property.

  6         (VI)  Taxes upon leased areas.

  7         (VII)  Insurance.

  8         (VIII)  Security provisions.

  9         (IX)  Other expenses.

10         (X)  Operating capital.

11         (XI)  Reserves for deferred maintenance and reserves

12  for capital expenditures.  All reserves for any accommodations

13  and facilities located in this state shall be calculated by a

14  formula which is based upon estimated life and replacement

15  cost of each reserve item.  Reserves for deferred maintenance

16  for such accommodations and facilities shall include accounts

17  for roof replacement, building painting, pavement resurfacing,

18  replacement of timeshare unit furnishings and equipment, and

19  any other component, the useful life of which is less than the

20  useful life of the overall structure. For any accommodations

21  and facilities located outside of this state, the developer

22  shall disclose the amount of reserves for deferred maintenance

23  or capital expenditures required by the law of the situs

24  state, if applicable, and maintained for such accommodations

25  and facilities.

26         (XII)  Fees payable to the division.

27         b.  Expenses for a purchaser:

28         (I)  Rent for the timeshare unit, if subject to a

29  lease.

30         (II)  Rent payable by the purchaser directly to the

31  lessor or agent under any recreational lease or lease for the

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    12-663A-00                                              See HB




  1  use of commonly used facilities, which use and payment is a

  2  mandatory condition of ownership and is not included in the

  3  common expenses expense or assessments for common maintenance

  4  paid by the purchasers to the managing entity association.

  5         4.  The estimated amounts shall be stated for a period

  6  of at least 12 months and may distinguish between the period

  7  prior to the time that purchasers elect a majority of the

  8  board of administration and the period after that date.

  9         5.  If the developer intends to guarantee the level of

10  assessments, such guarantee must be based upon a good faith

11  estimate of the revenues and expenses of the timeshare plan.

12  The guarantee must include a description of the following:

13         a.  The specific time period measured in one or more

14  calendar or fiscal years during which the guarantee will be in

15  effect.

16         b.  A statement that the developer will pay all common

17  expenses incurred in excess of the total revenues of the

18  timeshare plan pursuant to s. 721.15(2) if the developer has

19  excused himself or herself from the payment of assessments

20  during the guarantee period.

21         c.  The level, expressed in total dollars, at which the

22  developer guarantees the budget.  If the developer has

23  reserved the right to extend or increase the guarantee level

24  pursuant to s. 721.15(2), a disclosure must be included to

25  that effect.

26         6.  If the developer intends to provide a trust fund to

27  defer or reduce the payment of annual assessments, a copy of

28  the trust instrument shall be attached as an exhibit and shall

29  include a description of such arrangement, including, but not

30  limited to:

31

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    12-663A-00                                              See HB




  1         a.  The specific amount of such trust funds and the

  2  source of the funds.

  3         b.  The name and address of the trustee.

  4         c.  The investment methods permitted by the trust

  5  agreement.

  6         d.  A statement in conspicuous type that the funds from

  7  the trust account may not cover all assessments and that there

  8  is no guarantee that purchasers will not have to pay

  9  assessments in the future.

10         7.  The budget shall be based either on the number of

11  timeshare interests declared as part of the timeshare plan as

12  of the beginning of the calendar year for which the budget is

13  promulgated or on the number of timeshare interests estimated

14  to be declared as part of the timeshare plan during the

15  calendar year for which that budget is promulgated. In any

16  event the budget shall contain a note identifying the number

17  of timeshare interests covered by the budget and indicating

18  the number of timeshare interests estimated to be declared as

19  part of the timeshare plan during that calendar year, if any.

20         (v)(y)  A schedule of estimated closing expenses to be

21  paid by a purchaser or lessee of a timeshare interest period

22  and a statement as to whether a title opinion or title

23  insurance policy is available to the purchaser and, if so, at

24  whose expense.

25         (w)(z)  The identity of the developer and the chief

26  operating officer or principal directing the creation and sale

27  of the timeshare plan and a statement of the experience of

28  each in this field or, if no experience, a statement of that

29  fact.

30

31

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    12-663A-00                                              See HB




  1         (aa)  A statement of any service, maintenance, or

  2  recreation contracts or leases that may be canceled by the

  3  purchasers.

  4         (x)(bb)  A statement of the total financial obligation

  5  of the purchaser, including the purchase price and any

  6  additional charges to which the purchaser may be subject.

  7         (y)(cc)  The name of any person who will or may have

  8  the right to alter, amend, or add to the charges to which the

  9  purchaser may be subject and the terms and conditions under

10  which such alterations, amendments, or additions may be

11  imposed.

12         (z)(dd)  A statement An explanation of the purchaser's

13  right of cancellation of the purchase contract.

14         (aa)(ee)  A description of the insurance coverage

15  provided for the timeshare plan benefit of the purchasers.

16         (bb)(ff)  A statement as to whether the timeshare plan

17  is participating in an exchange program and, if so, the name

18  and address of the exchange company offering the exchange

19  program.

20         (cc)  The existence of rules and regulations regarding

21  any reservation features governing a purchaser's ability to

22  make reservations for a timeshare period, including, if

23  applicable, a conspicuous type disclaimer in substantially the

24  following form:

25

26  The right to reserve a timeshare period is subject to rules

27  and regulations of the timeshare plan reservation system.

28

29         (dd)  If a developer is filing a timeshare plan that

30  includes a timeshare instrument or component site document

31  that was in conformance with the laws and rules in existence

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    12-663A-00                                              See HB




  1  at the time the timeshare plan was created but does not

  2  conform to existing laws and rules that govern the timeshare

  3  plan and the developer does not have the authority or power to

  4  amend or change the timeshare instrument or component site

  5  document to conform to such existing laws or rules as directed

  6  by the division, a brief explanation of current law and the

  7  conflict with the timeshare instrument or component site

  8  document, preceded by disclaimer in conspicuous type in

  9  substantially the following form:

10

11  Florida law has been amended and certain provisions in [insert

12  appropriate reference to timeshare instrument or component

13  site document] that were in conformance with Florida law as it

14  existed at the time the timeshare plan was created are not in

15  conformance with current Florida law. These documents may only

16  be amended by [insert appropriate reference to person or

17  entity that has the right to amend or change the timeshare

18  instrument or component site document]. The developer does not

19  warrant that such documents are in technical compliance with

20  all applicable Florida laws and regulations. All questions

21  regarding amendment of these documents should be directed to

22  [insert appropriate reference to person or entity that has the

23  right to amend or change the timeshare instrument or component

24  site document].

25

26         (ee)(gg)  Any other information that a the seller, with

27  the approval of the division, desires to include in the public

28  offering statement.

29         (ff)(hh)  Copies of the following documents and plans,

30  to the extent they are applicable, shall be included as

31  exhibits to the registered public offering statement provided,

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    12-663A-00                                              See HB




  1  if the timeshare plan has not been declared at the time of the

  2  filing, the developer may provide proposed documents:

  3         1.  The declaration of condominium, or the proposed

  4  declaration if the declaration has not been recorded.

  5         2.  The cooperative documents, or the proposed

  6  cooperative documents if the documents have not been recorded.

  7         3.  The declaration of covenants and restrictions, or

  8  proposed declaration if the declaration has not been recorded.

  9         4.  The articles of incorporation creating the

10  association.

11         5.  The bylaws of the association.

12         6.  The ground lease or other underlying lease of the

13  real property on which the timeshare plan is situated.

14         7.  The management agreement and all maintenance and

15  other contracts regarding the management and operation of the

16  timeshare property which have terms in excess of 1 year.

17         8.  The estimated operating budget for the timeshare

18  plan and the required schedule of purchasers' expenses.

19         9.  The floor plan of each type of accommodation and

20  the plot plan showing the location of all accommodations and

21  facilities declared as part of the timeshare plan and filed

22  with the division.

23         10.  The lease for any facilities. The lease of

24  recreational facilities and other facilities which will be

25  used only by purchasers of the timeshare plan.

26         11.  The lease of facilities used by purchasers and

27  others.

28         12.  The form of timeshare period lease, if the offer

29  is of a leasehold.

30

31

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    12-663A-00                                              See HB




  1         11.13.  A declaration of servitude of properties

  2  serving the accommodations and or facilities, but not owned by

  3  purchasers or leased to them or the association.

  4         12.14.  Any documents required by s. 721.03(3)(e) as

  5  the result of the inclusion of a timeshare plan in the

  6  conversion of building The statement of condition of the

  7  existing building or buildings, if the offering is of

  8  timeshare periods in an operation being converted to

  9  condominium or cooperative ownership.

10         15.  The statement of inspection for termite damage and

11  treatment of the existing improvements, if the timeshare

12  property is a conversion.

13         13.16.  The form of agreement for sale or lease of

14  timeshare interests periods.

15         14.17.  The executed agreement for escrow of payments

16  made to the developer prior to closing and the form of any

17  agreement for escrow of ad valorem tax escrow payments to be

18  made into an ad valorem tax escrow account pursuant to s.

19  192.037(6).

20         15.18.  The documents containing any restrictions on

21  use of the property required by paragraph (s) (u).

22         16. 19.  Any other documents or instruments creating

23  the timeshare plan.

24         20.  Any contract or lease to be signed by the

25  purchasers.

26         (gg)(ii)  Such other information as is necessary to

27  fairly, meaningfully, and effectively disclose all aspects of

28  the timeshare plan, including, but not limited to, any

29  disclosures made necessary by the operation of s.

30  721.03(8)(9). However, if a developer has, in good faith,

31  attempted to comply with the requirements of this section, and

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    12-663A-00                                              See HB




  1  if, in fact, he or she has substantially complied with the

  2  disclosure requirements of this chapter, nonmaterial errors or

  3  omissions shall not be actionable.

  4         (hh)(jj)  Notwithstanding the provisions of this

  5  subsection, the registered public offering statement for a

  6  component site of a multisite timeshare plan filed pursuant to

  7  this subsection may contain cross-references to information

  8  contained in the related multisite timeshare plan registered

  9  public offering statement filed pursuant to s. 721.55 in lieu

10  of repeating such information.

11         (6)  The division is authorized to prescribe by rule

12  the form of the approved purchaser public offering statement

13  that must be furnished by the developer to each purchaser.

14  The form of the purchaser public offering statement that is

15  furnished to purchasers must provide fair, meaningful, and

16  effective disclosure of all aspects of the timeshare plan. For

17  timeshare plans filed pursuant to this part, the developer

18  shall furnish each purchaser with the following:

19         (a)  A copy of the purchaser public offering statement

20  text in the form approved by the division for delivery to

21  purchasers.

22         (b)  Copies of the exhibits required to be filed with

23  the division pursuant to subparagraphs (5)(ff)(hh)1., 2., 4.,

24  5., 8., and 16 19.

25         (c)  A receipt for timeshare plan documents and a list

26  describing any exhibit to the registered public offering

27  statement filed with the division which is not delivered to

28  the purchaser.  The division is authorized to prescribe by

29  rule the form of the receipt for timeshare plan documents and

30  the description of exhibits list that must be furnished to the

31  purchaser.  The description of documents list utilized by a

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    12-663A-00                                              See HB




  1  developer shall be filed with the division for review as part

  2  of the registered public offering statement filing pursuant to

  3  this section.  The developer shall be required to provide the

  4  managing entity with a copy of the approved registered public

  5  offering statement text and exhibits filed with the division

  6  and any approved amendments thereto to be maintained by the

  7  managing entity as part of the books and records of the

  8  timeshare plan pursuant to s. 721.13(3)(d).

  9         (d)  Any other exhibit which the developer includes as

10  part of the purchaser public offering statement, provided that

11  the developer first files the exhibit with the division.

12         (e)  An executed copy of any document which the

13  purchaser signs.

14         (7)  For purposes of this section, descriptions shall

15  include locations, areas, capacities, numbers, volumes, or

16  sizes and may be stated as approximations or minimums.

17         Section 13.  Section 721.075, Florida Statutes, is

18  amended to read:

19         721.075  Incidental benefits.--Incidental benefits

20  shall be offered only as provided in this section.

21         (1)  Accommodations, facilities, products, services,

22  discounts, or other benefits which satisfy the requirements of

23  this subsection shall be subject to the provisions of this

24  section and exempt from the other provisions of this chapter

25  part which would otherwise apply to such accommodations or and

26  facilities if and only if:

27         (a)  The use of or participation in the incidental

28  benefit by the prospective purchaser is completely voluntary,

29  and payment of any fee or other cost associated with the

30  incidental benefit is required only upon such use or

31  participation.

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    12-663A-00                                              See HB




  1         (b)  No costs of acquisition, operation, maintenance,

  2  or repair of the incidental benefit are passed on to

  3  purchasers of the timeshare plan as common expenses of the

  4  timeshare plan or as common expenses of a component site of a

  5  multisite timeshare plan.

  6         (c)  The continued availability of the incidental

  7  benefit is not necessary in order for any accommodation or

  8  facility of the timeshare plan to be available for use by

  9  purchasers of the timeshare plan in a manner consistent in all

10  material respects with the manner portrayed by any promotional

11  material, advertising, or purchaser public offering statement.

12         (d)  The continued availability to purchasers of

13  timeshare plan accommodations on no greater than a one-to-one

14  purchaser to accommodation ratio is not dependent upon

15  continued availability of the incidental benefit.

16         (e)  The incidental benefit will continue to be

17  available in the manner represented to prospective purchasers

18  for no less than 6 months but less than 3 years or less after

19  the first date that the timeshare plan is available for use by

20  the purchaser.  The developer shall not be required to make

21  the incidental benefit available for longer than 18 months

22  after the date of purchase. Nothing herein shall prevent the

23  renewal or extension of the availability of an incidental

24  benefit.

25         (f)  The aggregate represented value of all incidental

26  benefits offered by a developer to a purchaser may not exceed

27  15 percent of the purchase price paid by the purchaser for his

28  or her timeshare interest period.

29         (g)  The incidental benefit is filed with the division

30  in conjunction with the filing of a timeshare plan or in

31  connection with a previously filed timeshare plan.

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    12-663A-00                                              See HB




  1         (2)  Each purchaser shall execute a separate

  2  acknowledgment and disclosure statement with respect to all

  3  incidental benefits, which statement shall include the

  4  following information:

  5         (a)  A fair description of the incidental benefit,

  6  including, but not limited to, the represented value of the

  7  benefit; any user fees or costs associated therewith; and any

  8  restrictions upon use or availability.

  9         (b)  A statement that use of or participation in the

10  incidental benefit by the prospective purchaser is completely

11  voluntary, and that payment of any fee or other cost

12  associated with the incidental benefit is required only upon

13  such use or participation.

14         (c)  A statement that the incidental benefit is not

15  assignable or otherwise transferable by the prospective

16  purchaser or purchaser.

17         (d)  The following disclosure in conspicuous type

18  immediately above the space for the purchaser's signature:

19

20         The [Describe incidental benefit[s] described in this

21  statement is [are] benefit is an incidental benefit offered to

22  prospective purchasers of the timeshare plan [or other

23  permitted reference pursuant to s. 721.11(5)(a)].  This

24  [These] benefit[s] is [are] benefit is available for your use

25  for a [some period minimum of 6 months but less than 3 years

26  or less] after the first date that the timeshare plan is

27  available for your use. The availability of the incidental

28  benefit[s] benefit may or may not be renewed or extended.  You

29  should not purchase an interest in the timeshare plan in

30  reliance upon the continued availability or renewal or

31  extension of this [these] benefit[s] benefit.

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    12-663A-00                                              See HB




  1

  2  The acknowledgment and disclosure statement for any each

  3  incidental benefit shall be filed with the division prior to

  4  use.  Each purchaser shall receive a copy of his or her

  5  executed acknowledgment and disclosure statement as a document

  6  required to be provided to him or her pursuant to s.

  7  721.10(1)(b).

  8         (3)(a)  In the event that an incidental benefit becomes

  9  unavailable to purchasers in the manner represented by the

10  developer in the acknowledgment and disclosure statement, the

11  developer shall pay the purchaser the greater of twice the

12  verifiable retail value or twice the represented value of the

13  unavailable incidental benefit in cash within 30 days of the

14  date that the unavailability of the incidental benefit was

15  made known to the developer unless the developer has reserved

16  a substitution right pursuant to paragraph (b) by making the

17  required disclosure in the acknowledgment and disclosure

18  statement and timely makes the substitution as required by

19  paragraph (b). The developer shall promptly notify the

20  division upon learning of the unavailability of any incidental

21  benefit.

22         (b)  If an incidental benefit becomes unavailable as a

23  result of events beyond the control of the developer, the

24  developer may reserve the right to substitute a replacement

25  incidental benefit of a type, quality, value, and term

26  reasonably similar to the unavailable incidental benefit. If

27  the developer reserves the right to substitute, the

28  acknowledgement and disclosure statement required pursuant to

29  paragraph (2)(a) shall contain the following conspicuous

30  disclosure by including the following language in the

31  disclosure required by paragraph (2)(d):

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    12-663A-00                                              See HB




  1

  2         In the event any [describe incidental benefit described

  3  in this statement benefit] becomes unavailable as a result of

  4  events beyond the control of the developer, the developer

  5  reserves the right to substitute a replacement incidental

  6  benefit of a type, quality, value, and term reasonably similar

  7  to the unavailable incidental benefit.

  8

  9  The substituted incidental benefit shall be delivered to the

10  purchaser within 30 days after the date that the

11  unavailability of the incidental benefit was made known to the

12  developer.

13         (4)  All purchaser remedies pursuant to s. 721.21 shall

14  be available for any violation of the provisions of this

15  section.

16         Section 14.  Section 721.08, Florida Statutes, is

17  amended to read:

18         721.08  Escrow accounts; nondisturbance instruments;

19  alternate security arrangements.--

20         (1)  Prior to the filing of a registered public

21  offering statement with the division, all developers shall

22  establish an escrow account with an escrow agent for the

23  purpose of protecting the funds or other property of

24  purchasers required to be escrowed by this section. An escrow

25  agent shall maintain the accounts called for in this section

26  only in such a manner as to be under the direct supervision

27  and control of the escrow agent.  The escrow agent shall have

28  a fiduciary duty to each purchaser to maintain the escrow

29  accounts in accordance with good accounting practices and to

30  release the purchaser's funds or other property from escrow

31  only in accordance with this chapter.  The escrow agent shall

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    12-663A-00                                              See HB




  1  retain all affidavits received pursuant to this section for a

  2  period of 5 years.  Should the escrow agent receive

  3  conflicting demands for funds or property held in escrow, the

  4  escrow agent shall immediately notify the division of the

  5  dispute and either promptly submit the matter to arbitration

  6  or, by interpleader or otherwise, seek an adjudication of the

  7  matter by court.

  8         (2)  One hundred percent of all funds or other property

  9  which is received from or on behalf of purchasers of the

10  timeshare plan or timeshare interest period prior to the

11  occurrence of events required in this subsection shall be

12  deposited pursuant to an escrow agreement approved by the

13  division.  The escrow agreement shall provide that the funds

14  or property may be released from escrow only as follows:

15         (a)  Cancellation.--In the event a purchaser gives a

16  valid notice of cancellation pursuant to s. 721.10 or is

17  otherwise entitled to cancel the sale, the funds or property

18  received from or on behalf of the purchaser, or the proceeds

19  thereof, shall be returned to the purchaser.  Such refund

20  shall be made within 20 days of demand therefor by the

21  purchaser or within 5 days after receipt of funds from the

22  purchaser's cleared check, whichever is later.  If the

23  purchaser has received benefits under the contract prior to

24  the effective date of the cancellation, the funds or property

25  to be returned to the purchaser may be reduced by the

26  proportion of contract benefits actually received.

27         (b)  Purchaser's default.--Following expiration of the

28  10-day cancellation period, if the purchaser defaults in the

29  performance of her or his obligations under the terms of the

30  contract to purchase or such other agreement by which a the

31  seller sells the timeshare interest period, the developer

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    12-663A-00                                              See HB




  1  shall provide an affidavit to the escrow agent requesting

  2  release of the escrowed funds or property and shall provide a

  3  copy of such affidavit to the purchaser who has defaulted.

  4  The developer's affidavit, as required herein, shall include:

  5         1.  A statement that the purchaser has defaulted and

  6  that the developer has not defaulted;

  7         2.  A brief explanation of the nature of the default

  8  and the date of its occurrence;

  9         3.  A statement that pursuant to the terms of the

10  contract the developer is entitled to the funds held by the

11  escrow agent; and

12         4.  A statement that the developer has not received

13  from the purchaser any written notice of a dispute between the

14  purchaser and developer or a claim by the purchaser to the

15  escrow.

16         (c)  Compliance with conditions.--

17         1.  If the timeshare plan is one in which timeshare

18  licenses are to be sold and no cancellation or default has

19  occurred, the escrow agent may release the escrowed funds or

20  property upon presentation of:

21         a.  An affidavit by the developer that all of the

22  following conditions have been met:

23         (I)  Expiration of the cancellation period.

24         (II)  Completion of construction.

25         (III)  Closing.

26         (IV)  Execution and recordation by each interestholder

27  of the nondisturbance and notice to creditors instrument, as

28  described in this section.

29         b.  A certified copy of the recorded nondisturbance and

30  notice to creditors instrument that complies with subsection

31  (3).

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    12-663A-00                                              See HB




  1         c.  One of the following:

  2         (I)  A copy of a memorandum of agreement, as defined in

  3  s. 721.05(21), together with satisfactory evidence that the

  4  original memorandum of agreement has been irretrievably

  5  delivered for recording to the appropriate official

  6  responsible for maintaining the public records in the county

  7  in which the subject accommodations and or facilities are

  8  located.  The original memorandum of agreement must be

  9  recorded within 180 days after the date on which the purchaser

10  executed her or his purchase agreement.

11         (II)  A notice delivered for recording to the

12  appropriate official responsible for maintaining the public

13  records in each county in which the subject accommodations and

14  facilities are located notifying all persons of the identity

15  of an independent escrow agent that shall maintain separate

16  books and records, in accordance with good accounting

17  practices, for the timeshare plan in which timeshare licenses

18  are to be sold. The books and records shall indicate each

19  accommodation and facility that is subject to such a timeshare

20  plan and each purchaser of a timeshare license in the

21  timeshare plan.

22         2.  If the timeshare plan is one in which timeshare

23  estates are to be sold, other than timeshare estates in a

24  trust pursuant to subparagraph 3., and no cancellation or

25  default has occurred, the escrow agent may release the

26  escrowed funds or property upon presentation of:

27         a.  An affidavit by the developer that all of the

28  following conditions have been met:

29         (I)  Expiration of the cancellation period.

30         (II)  Completion of construction.

31         (III)  Closing.

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    12-663A-00                                              See HB




  1         b.  If the timeshare estate is sold by agreement for

  2  deed, a certified copy of the recorded nondisturbance and

  3  notice to creditors instrument, as described in this section.

  4         c.  Evidence that the timeshare estate is free and

  5  clear of the claims of any interestholders, other than the

  6  claims of interestholders that, through a recorded instrument,

  7  are irrevocably made subject to the timeshare instrument and

  8  the use rights of purchasers made available through the

  9  timeshare instrument, or that are the subject of a recorded

10  nondisturbance and notice to creditors instrument that

11  complies with subsection (3).

12         3.  If the timeshare plan is one in which timeshare

13  estates are to be sold in a trust that complies in all

14  respects with the provisions of sub-subparagraph b., and no

15  cancellation or default has occurred, the escrow agent may

16  release the escrowed funds or property upon presentation of:

17         a.  An affidavit by the developer that all of the

18  following conditions have been met:

19         (I)  Expiration of the cancellation period.

20         (II)  Completion of construction.

21         (III)  Transfer of the subject accommodations and

22  facilities, or all use rights therein, to the trust.

23         (IV)  Closing.

24         b.  Prior to the transfer by each interestholder of the

25  subject accommodations, facilities, or all use rights therein

26  to a trust, any lien or other encumbrance against such

27  accommodations, facilities, or use rights shall be made

28  subject to a nondisturbance and notice to creditors instrument

29  as described in this section. The trustee of such trust shall

30  also constitute an interestholder and record a nondisturbance

31  and notice to creditors instrument with respect to all

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    12-663A-00                                              See HB




  1  accommodations, facilities, and use rights transferred to the

  2  trust. No transfer pursuant to this sub-subparagraph shall

  3  become effective until the trustee accepts such transfer and

  4  the responsibilities set forth herein. A trust established

  5  pursuant to this sub-subparagraph shall comply with the

  6  following provisions:

  7         (I)  The trustee shall be an individual or a business

  8  entity authorized and qualified to conduct trust business in

  9  this state. Any corporation authorized to do business in this

10  state may act as trustee in connection with a timeshare plan

11  pursuant to this chapter. The trustee must be independent from

12  any developer or managing entity of the timeshare plan or any

13  interestholder of any accommodation or facility of such plan.

14         (II)  The trust shall be irrevocable so long as any

15  purchaser has a right to occupy any portion of the timeshare

16  property.

17         (III)  The trustee shall not convey, hypothecate,

18  mortgage, assign, or otherwise transfer or encumber in any

19  fashion any portion of the timeshare property with respect to

20  which any purchaser has a right of use or occupancy unless the

21  timeshare plan is terminated pursuant to the timeshare

22  instrument.

23         (IV)  All purchasers of the timeshare plan and the

24  managing entity of the timeshare plan shall be express

25  beneficiaries of the trust. The trustee shall act as a

26  fiduciary to the beneficiaries of the trust. The personal

27  liability of the trustee shall be governed by s. 737.306. All

28  expenses reasonably incurred by the trustee in the performance

29  of its duties, together with any reasonable compensation of

30  the trustee, shall be common expenses of the timeshare plan.

31

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    12-663A-00                                              See HB




  1         (V)  The trustee shall not resign upon less than 30

  2  days' prior written notice to the managing entity and the

  3  division. No resignation shall become effective until a

  4  substitute trustee, approved by the division, is appointed by

  5  the managing entity and accepts the appointment.

  6         (VI)  The documents establishing the trust arrangement

  7  shall constitute a part of the timeshare instrument.

  8         4.  If the developer has previously provided a

  9  certified copy of any document required by this paragraph

10  section, she or he may for all subsequent disbursements

11  substitute a true and correct copy of the certified copy,

12  provided no changes to the document have been made or are

13  required to be made.

14         (3)  The nondisturbance and notice to creditors

15  instrument, when required, shall be executed by each

16  interestholder.  The instrument shall state that:

17         (a)  If the party seeking enforcement is not in default

18  of its obligations, the instrument may be enforced by both the

19  seller and any purchaser of the timeshare plan;

20         (b)  The instrument shall be effective as between the

21  timeshare purchaser and interestholder despite any rejection

22  or cancellation of the contract between the timeshare

23  purchaser and developer as a result of bankruptcy proceedings

24  of the developer; and

25         (c)  So long as the interestholder has any interest in

26  the accommodations, facilities, or plan, the interestholder

27  will fully honor all the rights of the timeshare purchasers in

28  and to the timeshare plan, will honor the purchasers' right to

29  cancel their contracts and receive appropriate refunds, and

30  will comply with all other requirements of this chapter and

31  rules promulgated hereunder.

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    12-663A-00                                              See HB




  1

  2  The instrument shall contain language sufficient to provide

  3  subsequent creditors of the developer and interestholders with

  4  notice of the existence of the timeshare plan and of the

  5  rights of purchasers and shall serve to protect the interest

  6  of the timeshare purchasers from any claims of subsequent

  7  creditors.  A copy of the recorded nondisturbance and notice

  8  to creditors instrument, when required, shall be provided to

  9  each timeshare purchaser at the time the purchase contract is

10  executed.

11         (4)  In lieu of any escrow provisions required by this

12  act, the director of the division shall have the discretion to

13  permit deposit of the funds or other property in an escrow

14  account as required by the jurisdiction in which the sale took

15  place.

16         (5)(a)  In lieu of any escrows required by this

17  section, the director of the division shall have the

18  discretion to accept other assurances, including, but not

19  limited to, a surety bond issued by a company authorized and

20  licensed to do business in this state as surety or an

21  irrevocable letter of credit in an amount equal to the escrow

22  requirements of this section.

23         (b)  Notwithstanding anything in chapter 718 or chapter

24  719 to the contrary, the director of the division shall have

25  the discretion to accept other assurances pursuant to

26  paragraph (a) in lieu of any requirement that completion of

27  construction of one or more accommodations or facilities of a

28  timeshare plan be accomplished prior to closing.

29         (6)  An escrow agent holding funds escrowed pursuant to

30  this section may invest such escrowed funds in securities of

31  the United States Government, or any agency thereof, or in

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    12-663A-00                                              See HB




  1  savings or time deposits in institutions insured by an agency

  2  of the United States Government.  The right to receive the

  3  interest generated by any such investments shall be paid to

  4  the party to whom the escrowed funds or property are paid

  5  unless otherwise specified by contract.

  6         (7)  Each escrow agent shall maintain separate books

  7  and records for each timeshare plan and shall maintain such

  8  books and records in accordance with good accounting

  9  practices.

10         (8)  An escrow agent holding escrowed funds pursuant to

11  this chapter which have not been claimed for a period of 5

12  years after the date of deposit shall make at least one

13  reasonable attempt to deliver such unclaimed funds to the

14  purchaser who submitted such funds to escrow. In making such

15  attempt, an escrow agent is entitled to rely on a purchaser's

16  last known address as set forth in the books and records of

17  the escrow agent and is not required to conduct any further

18  search for the purchaser. If an escrow agent's attempt to

19  deliver unclaimed funds to any purchaser is unsuccessful, the

20  escrow agent may deliver such unclaimed funds to the division

21  and the division shall deposit such unclaimed funds in the

22  Division of Florida Land Sales, Condominiums, and Mobile Homes

23  Trust Fund, 30 days after giving notice in a publication of

24  general circulation in the county in which the timeshare

25  property containing the purchaser's timeshare interest is

26  located. The purchaser may claim the same at any time prior to

27  the delivery of such funds to the division. After delivery of

28  such funds to the division, the purchaser shall have no more

29  rights to the unclaimed funds. The escrow agent shall not be

30  liable for any claims from any party arising out of the escrow

31

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    12-663A-00                                              See HB




  1  agent's delivery of the unclaimed funds to the division

  2  pursuant to this section.

  3         (9)  For each transfer of the legal title to a

  4  timeshare estate, the developer shall deliver an instrument

  5  evidencing such transfer to the purchaser or to the clerk of

  6  the court for recording.

  7         (10)(8)  Any developer, seller, or escrow agent who

  8  intentionally fails to comply with the provisions of this

  9  section concerning the establishment of an escrow account,

10  deposits of funds into escrow, and withdrawal therefrom is

11  guilty of a felony of the third degree, punishable as provided

12  in s. 775.082, s. 775.083, or s. 775.084, or the successor

13  thereof. The failure to establish an escrow account or to

14  place funds therein as required in this section is prima facie

15  evidence of an intentional and purposeful violation of this

16  section.

17         Section 15.  Section 721.09, Florida Statutes, is

18  amended to read:

19         721.09  Reservation agreements; escrows.--

20         (1)(a)  Prior to filing the registered public offering

21  statement with the division, a seller shall not offer a

22  timeshare plan for sale but may accept reservation deposits

23  and advertise the reservation deposit program upon approval by

24  the division of a fully executed escrow agreement and

25  reservation agreement properly filed with the division.

26         (b)  Reservations shall not be taken on a timeshare

27  plan unless the seller has an ownership interest, or leasehold

28  interest, or legal option to purchase or lease of a duration

29  at least equal to the duration of the proposed timeshare plan,

30  in the land upon which the timeshare plan is to be developed.

31

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    12-663A-00                                              See HB




  1         (c)  If the timeshare plan subject to the reservation

  2  agreement has not been filed with the division under s.

  3  721.07(5) or s. 721.55 within 90 days after the date the

  4  division approves the reservation agreement filing, the seller

  5  must immediately cancel all outstanding reservation

  6  agreements, refund all escrowed funds to prospective

  7  purchasers, and discontinue accepting reservation deposits or

  8  advertising the availability of reservation agreements.

  9         (d)  A seller who has filed a reservation agreement and

10  an escrow agreement under this section may advertise the

11  reservation agreement program if the advertising material

12  meets the following requirements:

13         1.  The seller complies with the provisions of s.

14  721.11 with respect to such advertising material.

15         2.  The advertising material is limited to a general

16  description of the proposed timeshare plan, including, but not

17  limited to, a general description of the type, number, and

18  size of accommodations and facilities and the name of the

19  proposed timeshare plan.

20         3.  The advertising material contains a statement that

21  the advertising material is being distributed in connection

22  with an approved reservation agreement filing only and that

23  the seller cannot offer an interest in the timeshare plan for

24  sale until a registered public offering statement has been

25  filed with the division under this chapter.

26         (2)  Each executed reservation agreement shall be

27  signed by the developer and shall contain the following:

28         (a)  A statement that the escrow agent will grant a

29  prospective purchaser an immediate, unqualified refund of the

30  reservation deposit upon the written request of either the

31  purchaser or the seller directed to the escrow agent.

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  1         (b)  A statement that the escrow agent may not

  2  otherwise release moneys unless a contract is signed by the

  3  purchaser, authorizing the transfer of the escrowed

  4  reservation deposit as a deposit on the purchase price.  Such

  5  deposit shall then be subject to the requirements of s.

  6  721.08.

  7         (c)  A statement of the obligation of the developer to

  8  file a registered public offering statement with the division

  9  prior to entering into binding contracts.

10         (d)  A statement of the right of the purchaser to

11  receive the purchaser public offering statement required by

12  this chapter.

13         (e)  The name and address of the escrow agent and a

14  statement that the escrow agent will provide a receipt.

15         (f)  A statement that the seller assures that the

16  purchase price represented in or pursuant to the reservation

17  agreement will be the price in the contract for the purchase

18  or that the price represented may be exceeded within a stated

19  amount or percentage or a statement that no assurance is given

20  as to the price in the contract for purchase.

21         (3)(a)  The total amount paid for a reservation shall

22  be deposited into a reservation escrow account.

23         (b)  An escrow agent shall maintain the accounts called

24  for in this section only in such a manner as to be under the

25  direct supervision and control of the escrow agent.

26         (c)  The escrow agent may invest the escrowed funds in

27  securities of the United States Government, or any agency

28  thereof, or in savings or time deposits in institutions

29  insured by an agency of the United States Government. The

30  interest generated by any such investments shall be payable to

31  the party entitled to receive the escrowed funds or property.

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  1         (d)  The escrowed funds shall at all reasonable times

  2  be available for withdrawal in full by the escrow agent.

  3         (e)  Each escrow agent shall maintain separate books

  4  and records for each timeshare plan and shall maintain such

  5  books and records in accordance with good accounting

  6  practices.

  7         (f)  Any seller or escrow agent who intentionally fails

  8  to comply with the provisions of this section regarding

  9  deposit of funds in escrow and withdrawal therefrom is guilty

10  of a felony of the third degree, punishable as provided in s.

11  775.082, s. 775.083, or s. 775.084, or the successor of any of

12  such sections.  The failure to establish an escrow account or

13  to place funds therein as required in this section is prima

14  facie evidence of an intentional and purposeful violation of

15  this section.

16         Section 16.  Section 721.10, Florida Statutes, is

17  amended to read:

18         721.10  Cancellation.--

19         (1)  A purchaser has the right to cancel the contract

20  until midnight of the 10th calendar day following whichever of

21  the following days occurs later:

22         (a)  The execution date; or

23         (b)  The day on which the purchaser received the last

24  of all documents required to be provided to him or her,

25  including the notice required by s. 721.07(2)(d)2., if

26  applicable.

27

28  This right of cancellation may not be waived by any purchaser

29  or by any other person on behalf of the purchaser.

30  Furthermore, no closing may occur until the cancellation

31  period of the timeshare purchaser has expired.  Any attempt to

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  1  obtain a waiver of the cancellation right of the timeshare

  2  purchaser, or to hold a closing prior to the expiration of the

  3  cancellation period, is unlawful and such closing is voidable

  4  at the option of the purchaser for a period of 1 year after

  5  the expiration of the cancellation period.  However, nothing

  6  in this section precludes the execution of documents in

  7  advance of closing for delivery after expiration of the

  8  cancellation period.

  9         (2)  Any notice of cancellation shall be considered

10  given on the date postmarked if mailed, or when transmitted

11  from the place of origin if telegraphed, so long as the notice

12  is actually received by the developer or escrow agent. If

13  given by means of a writing transmitted other than by mail or

14  telegraph, the notice of cancellation shall be considered

15  given at the time of delivery at the place of business of the

16  developer.

17         (3)  In the event of a timely preclosing cancellation,

18  or in the event the plan is one in which timeshare licenses

19  are sold and at any time the accommodations or facilities are

20  no longer available, the developer shall honor the right of

21  any purchaser to cancel the contract which granted the

22  timeshare purchaser rights in and to the plan.  Upon such

23  cancellation, the developer shall refund to the purchaser the

24  total amount of all payments made by the purchaser under the

25  contract, reduced by the proportion of any contract benefits

26  the purchaser has actually received under the contract prior

27  to the effective date of the cancellation, as required by s.

28  721.06 which exceed the proportionate amount of benefits made

29  available under the plan, using the number of years of the

30  plan as portrayed in the timeshare instrument as the base for

31  plans of specific and limited duration, or using the fair

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    12-663A-00                                              See HB




  1  market rental value of such benefits for plans without

  2  specific or limited duration. Such refund shall be made within

  3  20 days of demand therefor by the purchaser or within 5 days

  4  after receipt of funds from the purchaser's cleared check,

  5  whichever is later. For purposes of this subsection, the term

  6  "benefits made available under the plan" shall not include

  7  public offering statements or other documentation or materials

  8  that must be furnished to a purchaser pursuant to statute or

  9  rule.

10         Section 17.  Section 721.11, Florida Statutes, is

11  amended to read:

12         721.11  Advertising materials; oral statements.--

13         (1)(a)  All Any advertising material must relating to a

14  timeshare plan, including prize and gift promotional offers,

15  shall be filed with the division by the developer 10 days

16  prior to use. At the request of the developer, the division

17  shall review the advertising material and notify the developer

18  of any deficiencies within 10 days after the filing. If the

19  developer corrects the deficiencies or if there are no

20  deficiencies, the division shall notify the developer of its

21  approval of the advertising materials. Notwithstanding

22  anything to the contrary contained in this subsection, so long

23  as the developer uses advertising materials approved by the

24  division, following the developer's request for a review, the

25  developer shall not be liable for any violation of this

26  section or s. 721.111 with respect to such advertising

27  materials.

28         (b)  All such advertising materials must be

29  substantially in compliance with this chapter and in full

30  compliance with the mandatory provisions of this chapter.  In

31  the event that any such material is not in substantial

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    12-663A-00                                              See HB




  1  compliance with this chapter, the division may file

  2  administrative charges and an injunction against the developer

  3  and exact such penalties or remedies as provided in s. 721.26,

  4  or may require the developer to correct any the deficiency in

  5  the materials by notifying the developer of the deficiency.;

  6  and, If the developer fails to correct the deficiency after

  7  such notification, the division may file administrative

  8  charges against the developer and exact such penalties or

  9  remedies as provided in s. 721.26.

10         (b)  The director of the division shall have the

11  discretion to accept other assurances from the developer to

12  assure the developer will comply with the provisions of this

13  chapter regarding all advertising materials, including prize

14  and gift promotional offers, used by the developer.  Such

15  assurances shall include, but not be limited to, a surety bond

16  issued by a company authorized and licensed to do business in

17  this state as surety or an irrevocable letter of credit in the

18  amount of $10,000.  Upon the acceptance by the director of

19  such assurances from the developer, the developer shall be

20  entitled to file and use advertising materials, including

21  prize and gift promotional offers, in accordance with

22  paragraph (c).  In the event the developer intends to file and

23  use any lodging or vacation certificates as advertising

24  material pursuant to paragraph (c), the director shall have

25  the discretion to increase the assurances to an amount deemed

26  sufficient by the director to fully secure the performance of

27  the certificate promoter, or to provide refunds to

28  certificateholders in the event of nonperformance by the

29  certificate promoter.  The purpose of such other assurances,

30  if accepted by the director, shall be to provide the division

31  with a source of funds to secure the developer's promise in

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    12-663A-00                                              See HB




  1  any prize and gift promotional offer to deliver the prize or

  2  gift represented in such offer to any prospective purchaser

  3  not receiving the represented prize or gift.

  4         (c)  A developer from whom other assurances have been

  5  accepted by the director of the division pursuant to paragraph

  6  (b) shall file all advertising material, including prize and

  7  gift promotional offers with the division at the time of use.

  8  All such advertising materials must be substantially in

  9  compliance with this chapter and in full compliance with the

10  mandatory provisions of this chapter.  In the event that any

11  such material is not in compliance with this chapter, the

12  division may require the developer to correct the deficiency

13  by notifying the developer of the deficiency; and, if the

14  developer fails to correct the deficiency after receiving such

15  notice, the division may file administrative charges against

16  the developer and exact such penalties or remedies as provided

17  in s. 721.26.  So long as the developer prepares and

18  disseminates the advertising material in good faith, the

19  division shall not penalize the developer for any deficiencies

20  which the division determines to exist in any advertising

21  material which the developer uses prior to receipt of a notice

22  of deficiency from the division regarding the advertising

23  material.  For purposes of this section, "good faith" shall

24  mean that the developer has reasonably attempted to comply

25  with the provisions of this chapter relating to advertising

26  material, and that any deficiency determined to exist by the

27  division is not material and adverse to a prospective

28  purchaser.

29         (2)  The term "advertising material" includes:

30

31

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  1         (a)  Any promotional brochure, pamphlet, advertisement,

  2  or other material to be disseminated to the public in

  3  connection with the sale of a timeshare plan.

  4         (b)  A transcript of Any radio or television

  5  advertisement.

  6         (c)  Any lodging or vacation certificate.

  7         (d)  A transcript of Any standard oral sales

  8  presentation.

  9         (e)  Any billboard or other sign posted on or off the

10  premises, except that such billboard or sign shall not be

11  required to contain the disclosure set forth in paragraph

12  (5)(a) or paragraph (5)(b), unless it relates to a prize and

13  gift promotional offer.  For purposes of this section, a

14  "sign" shall mean advertising which is affixed to real or

15  personal property and which is not disseminated by other than

16  visual means to prospective purchasers.

17         (f)  Any photograph, drawing, or artist's

18  representation of accommodations or facilities of a timeshare

19  plan which exists or which will or may exist.

20         (g)  Any paid publication relating to a timeshare plan

21  which exists or which will or may exist.

22         (h)  Any other promotional device used, or statement

23  related to a timeshare plan, including any prize and gift

24  promotional offer as described in s. 721.111.

25         (3)  The term "advertising material" does not include:

26         (a)  Any stockholder communication such as an annual

27  report or interim financial report, proxy material,

28  registration statement, securities prospectus, registration,

29  property report, or other material required to be delivered to

30  a prospective purchaser by an agency of any other state or the

31  Federal Government.

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    12-663A-00                                              See HB




  1         (b)  Any communication addressed to and relating to the

  2  account of any person who has previously executed a contract

  3  for the sale and purchase of a timeshare interest period in

  4  the timeshare plan to which the communication relates, except

  5  when directed to the sale of timeshare interests in a

  6  different timeshare plan or in a different component site of a

  7  multisite timeshare plan subject to part II additional

  8  timeshare periods.

  9         (c)  Any audio, written, or visual publication or

10  material relating to an exchange company or exchange program.

11         (d)  Any audio, written, or visual publication or

12  material relating to the promotion of the availability of any

13  accommodations or facilities, or both, for transient rental,

14  including any arrangement governed by part XI of chapter 559,

15  so long as a mandatory tour of a timeshare plan or attendance

16  at a mandatory sales presentation is not a term or condition

17  of the availability of such accommodations or facilities, or

18  both, and so long as the failure of any transient renter to

19  take a tour of a timeshare plan or attend a sales presentation

20  does not result in the transient renter receiving less than

21  what was promised to the transient renter in such materials

22  any reduction in the level of services which would otherwise

23  be available to such transient renter.

24         (e)  Any oral or written statement disseminated by a

25  developer to broadcast or print media, other than paid

26  advertising or promotional material, regarding plans for the

27  acquisition or development of timeshare property, including

28  possible accommodations or facilities of a timeshare plan

29  pursuant to subsection (7) or subsection (8), or possible

30  component sites of a multisite timeshare plan pursuant to

31  subsection (9) s. 721.553(1).  However, any rebroadcast or any

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    12-663A-00                                              See HB




  1  other dissemination of such oral statements to a prospective

  2  purchaser by a seller in any manner, or any distribution of

  3  copies of newspaper or magazine articles, press releases, or

  4  any other dissemination of such written statements to a

  5  prospective purchaser by a seller in any manner, shall

  6  constitute advertising material.

  7         (f)  Any promotional materials relating to a timeshare

  8  plan that are not directed specifically at residents of this

  9  state, regardless of whether such materials relate to

10  accommodations or facilities located in this state, provided

11  that such materials do not contain any statements that would

12  be in violation of subsection (4). For purposes of this

13  paragraph, a rebuttable presumption exists that promotional

14  materials are not directed specifically at residents of this

15  state if the materials include a disclaimer in substantially

16  the following form:

17

18  This offer is not directed to residents in any state [or the

19  offer is void in any states] in which a registration of the

20  timeshare plan is required but in which registration

21  requirements have not yet been met.

22

23         (g)  Any materials delivered to a purchaser after the

24  purchase contract is executed that are not delivered for the

25  purpose of soliciting the sale of a timeshare interest in a

26  different timeshare plan or a different component site in a

27  multisite timeshare plan subject to part II.

28         (h)  Any materials shown, displayed, or presented in a

29  sales center or during a sales presentation provided that any

30  description of any facility that is not required to be built

31  or that has not been completed shall be conspicuously labeled

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    12-663A-00                                              See HB




  1  as "NEED NOT BE BUILT," "PROPOSED," or "UNDER CONSTRUCTION."

  2  If the facility is labeled "NEED NOT BE BUILT" or "PROPOSED,"

  3  the seller may indicate the estimated date that such facility

  4  will be made part of the timeshare plan. If the facility is

  5  labeled "UNDER CONSTRUCTION," the estimated date of completion

  6  must be included.

  7         (4)  No advertising or oral statement made by any

  8  seller shall:

  9         (a)  Misrepresent a fact or create a false or

10  misleading impression regarding the timeshare plan or

11  promotion thereof.

12         (b)  Make a prediction of specific or immediate

13  increases in the price or value of timeshare interests

14  periods.

15         (c)  Contain a statement concerning future price

16  increases by a the seller which are nonspecific or not bona

17  fide.

18         (d)  Contain any asterisk or other reference symbol as

19  a means of contradicting or substantially changing any

20  previously made statement or as a means of obscuring a

21  material fact.

22         (e)  Describe any facility improvement to the timeshare

23  plan that is not required to be built or that is uncompleted

24  unless the improvement is conspicuously labeled as "NEED NOT

25  BE BUILT," "PROPOSED," or "UNDER CONSTRUCTION." If the

26  facility is labeled "NEED NOT BE BUILT" or "PROPOSED," the

27  seller may indicate the estimated date that such facility will

28  be made part of the timeshare plan. If the facility is labeled

29  "UNDER CONSTRUCTION," the estimated date of completion must be

30  included with the date of promised completion clearly

31  indicated.

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    12-663A-00                                              See HB




  1         (f)  Misrepresent the size, nature, extent, qualities,

  2  or characteristics of the offered accommodations or

  3  facilities.

  4         (g)  Misrepresent the amount or period of time during

  5  which the accommodations or facilities will be available to

  6  any purchaser.

  7         (h)  Misrepresent the nature or extent of any

  8  incidental benefit.

  9         (i)  Make any misleading or deceptive representation

10  with respect to the contents of the public offering statement

11  and the contract or the rights, privileges, benefits, or

12  obligations of the purchaser under the contract or this

13  chapter.

14         (j)  Misrepresent the conditions under which a

15  purchaser may exchange the right to use accommodations or

16  facilities in one location for the right to use accommodations

17  or facilities in another location.

18         (k)  Misrepresent the availability of a resale or

19  rental program offered by or on behalf of the developer.

20         (l)  Contain an offer or inducement to purchase which

21  purports to be limited as to quantity or restricted as to time

22  unless the numerical quantity or time limit applicable to the

23  offer or inducement is clearly stated.

24         (m)  Imply that a facility is available for the

25  exclusive use of purchasers if the facility will actually be

26  shared by others or by the general public.

27         (n)  Purport to have resulted from a referral unless

28  the name of the person making the referral can be produced

29  upon demand of the division.

30         (o)  Misrepresent the source of the advertising or

31  statement by leading a prospective purchaser to believe that

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    12-663A-00                                              See HB




  1  the advertising material is mailed by a governmental or

  2  official agency, credit bureau, bank, or attorney, if that is

  3  not the case.

  4         (p)  Misrepresent the value of any prize, gift, or

  5  other item to be awarded in connection with any prize and gift

  6  promotional offer, as described in s. 721.111, or any

  7  incidental benefit.

  8         (5)(a)  No written advertising material, including any

  9  lodging certificate, gift award, premium, discount, or display

10  booth, may be utilized without each prospective purchaser

11  being provided a disclosure one of the following disclosures

12  in conspicuous type in substantially the following form:  This

13  advertising material is being used for the purpose of

14  soliciting sales of timeshare interests periods; or This

15  advertising material is being used for the purpose of

16  soliciting sales of a vacation (or vacation membership or

17  vacation ownership) plan. The division shall have the

18  discretion to approve the use of an alternate disclosure. The

19  conspicuous disclosure required in this subsection shall only

20  be required to be given to each prospective purchaser on one

21  piece of advertising for each advertising promotion or

22  marketing campaign, provided that if the promotion or campaign

23  contains terms and conditions, the conspicuous disclosure

24  required in this subsection shall be included on any piece

25  containing such terms and conditions. The conspicuous

26  disclosure required in this subsection shall be provided

27  before the purchaser is required to take any affirmative

28  action pursuant to the promotion. If the advertising material

29  containing the conspicuous disclosure is a display booth, the

30  disclosure required by this subsection must be conspicuously

31  displayed on or within the display booth. If a filing of a

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    12-663A-00                                              See HB




  1  timeshare plan containing accommodations and facilities

  2  located outside of this state has been approved by the situs

  3  jurisdiction and by the division, an alternate disclosure

  4  consistent with that required by the situs jurisdiction, or by

  5  such other jurisdiction or jurisdictions where the advertising

  6  material will be used, may be utilized with the prior approval

  7  of the director of the division so long as the alternate

  8  disclosure is substantially similar to that required by this

  9  paragraph.

10         (b)  This subsection does not apply to any advertising

11  material which involves a project or development which

12  includes sales of real estate or other commodities or services

13  in addition to timeshare interests periods, including, but not

14  limited to, lot sales, condominium or home sales, or the

15  rental of resort accommodations. However, if the sale of

16  timeshare interests periods, as compared with such other sales

17  or rentals, is the primary purpose of the advertising

18  material, a disclosure shall be made in conspicuous type that:

19  This advertising material is being used for the purpose of

20  soliciting the sale of ...(Disclosure shall include timeshare

21  interests periods and may include other types of sales)....

22  Factors which the division may consider in determining whether

23  the primary purpose of the advertising material is the sale of

24  timeshare interests periods include:

25         1.  The retail value of the timeshare interests periods

26  compared to the retail value of the other real estate,

27  commodities, or services being offered in the advertising

28  material.

29         2.  The amount of space devoted to the timeshare

30  portion of the project in the advertising material compared to

31  the amount of space devoted to other portions of the project,

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    12-663A-00                                              See HB




  1  including, but not limited to, printed material, photographs,

  2  or drawings.

  3         (6)  Failure to provide cancellation rights or

  4  disclosures as required by this subsection in connection with

  5  the sale of a regulated short-term product constitutes

  6  misrepresentation in accordance with paragraph (4)(a). Any

  7  agreement relating to the sale of a regulated short-term

  8  product must be regulated as advertising material and is

  9  subject to the following:

10         (a)  A standard form of any agreement relating to the

11  sale of a regulated short-term product may must be filed 10

12  days prior to use with the division as advertising material

13  under this section. Each seller shall furnish each purchaser

14  of a regulated short-term product with a fully completed and

15  executed copy of the agreement at the time of execution.

16         (b)  A purchaser of a regulated short-term product has

17  the right to cancel the agreement until midnight of the 10th

18  calendar day following the execution date of the agreement.

19  The right of cancellation may not be waived by the prospective

20  purchaser or by any other person on behalf of the prospective

21  purchaser. Notice of cancellation must be given in the same

22  manner prescribed for giving notice of cancellation under s.

23  721.10(2). If the prospective purchaser gives a valid notice

24  of cancellation or is otherwise entitled to cancel the sale,

25  the funds or property received from or on behalf of the

26  prospective purchaser, or the proceeds thereof, must be

27  returned to the prospective purchaser. Such refund must be

28  made in the same manner prescribed for refunds under s.

29  721.10.

30

31

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    12-663A-00                                              See HB




  1         (c)  An agreement for purchase of a regulated

  2  short-term product must contain substantially the following

  3  statements, given at the time the agreement is made:

  4         1.  A statement that if the purchaser of a regulated

  5  short-term product cancels the agreement during the 10-day

  6  cancellation period, the seller will refund to the prospective

  7  purchaser the total amount of all payments made by the

  8  prospective purchaser under the agreement, reduced by the

  9  proportion of any benefits the prospective purchaser has

10  actually received under the agreement prior to the effective

11  date of the cancellation; and

12         2.  A statement that the specific value for each

13  benefit received by the prospective purchaser under the

14  agreement will be as agreed to between the prospective

15  purchaser and the seller.

16         (d)  An agreement for purchase of a regulated

17  short-term product must contain substantially the following

18  statements in conspicuous type immediately above the space

19  reserved in the agreement for the signature of the prospective

20  purchaser:

21

22         You may cancel this agreement without any penalty or

23  obligation within 10 calendar days [or specify a longer time

24  period represented to the purchaser] after the date you sign

25  this agreement. If you decide to cancel this agreement, you

26  must notify the seller in writing of your intent to cancel.

27  Your notice of cancellation is effective upon the date sent

28  and must be sent to ...(Name of Seller)... at ...(Address of

29  Seller).... Any attempt to obtain a waiver of your

30  cancellation right is unlawful.

31

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    12-663A-00                                              See HB




  1         If you execute a purchase contract for a timeshare

  2  interest period, section 721.08, Florida Statutes (escrow

  3  accounts), will apply to any funds or other property received

  4  from you or on your behalf. Section 721.10, Florida Statutes

  5  (cancellation), will apply to the purchase and you will not be

  6  entitled to a cancellation refund of the short-term product

  7  [or specify an alternate refund policy under these

  8  circumstances].

  9

10         (e)  If the seller provides the purchaser with the

11  right to cancel the purchase of a regulated short-term product

12  at any time up to 7 days prior to the purchaser's reserved use

13  of the accommodations, but in no event less than 10 days, and

14  if the seller refunds the total amount of all payments made by

15  the purchaser reduced by the proportion of any benefits the

16  purchaser has actually received prior to the effective date of

17  the cancellation, the specific value of which has been agreed

18  to between the purchaser and the seller, the short-term

19  product offer shall be exempt from the requirements of

20  paragraphs (b), (c), and (d). An agreement relating to the

21  sale of the regulated short-term product made pursuant to this

22  paragraph must contain a statement setting forth the

23  cancellation and refund rights of the prospective purchaser in

24  a manner that is consistent with this section and s. 721.10,

25  including a description of the length of the cancellation

26  right, a statement that the purchaser's intent to cancel must

27  be in writing and sent to the seller at a specified address, a

28  statement that the notice of cancellation is effective upon

29  the date sent, and a statement that any attempt to waive the

30  cancellation right is unlawful. The right of cancellation

31  provided to the purchaser pursuant to this paragraph may not

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    12-663A-00                                              See HB




  1  be waived by the prospective purchaser or by any other person

  2  on behalf of the prospective purchaser. Notice of cancellation

  3  must be given in the same manner prescribed for giving notice

  4  of cancellation pursuant to s. 721.10(2). If the prospective

  5  purchaser gives a valid notice of cancellation, or is

  6  otherwise entitled to cancel the sale, the funds or property

  7  received from or on behalf of the prospective purchaser, or

  8  the proceeds thereof, shall be returned to the prospective

  9  purchaser. Such refund shall be made in the manner prescribed

10  for refunds under s. 721.10.

11         (7)  Notwithstanding the provisions of s. 721.05(6)(b),

12  a seller may portray possible accommodations or facilities to

13  prospective purchasers in advertising material, or a purchaser

14  public offering statement, without such accommodations or

15  facilities being available for use by purchasers so long as

16  the advertising material or purchaser public offering

17  statement complies with the provisions of subsection (4).

18         (8)  Notwithstanding the provisions of s. 721.05(6)(b),

19  a developer may portray possible accommodations or facilities

20  to prospective purchasers by disseminating oral or written

21  statements regarding same to broadcast or print media with no

22  obligation on the developer's part to actually construct such

23  accommodations or facilities or to file such accommodations or

24  facilities with the division, but only so long as such oral or

25  written statements are not considered advertising material

26  pursuant to paragraph (3)(e).

27         (9)  Notwithstanding the provisions of s. 721.05(6)(b),

28  a seller of a multisite timeshare plan may portray a possible

29  component site to prospective purchasers with no

30  accommodations or facilities located at such component site

31

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    12-663A-00                                              See HB




  1  being available for use by purchasers so long as the seller

  2  satisfies the following requirements:

  3         (a)  A developer of a multisite timeshare plan may

  4  disseminate oral or written statements to broadcast or print

  5  media describing a possible component site with no obligation

  6  on the developer's part to actually add such component site to

  7  the multisite timeshare plan or to amend the developer's

  8  filing with the division, but only so long as such oral or

  9  written statements are not considered advertising material

10  pursuant to paragraph (3)(e).

11         (b)  A seller may make representations to purchasers in

12  advertising material or in a purchaser public offering

13  statement regarding the possible accommodations and facilities

14  of a possible component site without such accommodations or

15  facilities being available for use by purchasers so long as

16  the advertising material or purchaser public offering

17  statement complies with the provisions of subsection (4).

18         (c)  In the event a seller makes any of the

19  representations permitted by paragraph (b), the purchase

20  agreement must contain the following conspicuous disclosure

21  unless and until such time as the developer has committed

22  itself in the timeshare instrument to adding the possible

23  component site to the multisite timeshare plan, at which time

24  the seller may portray the component site pursuant to the

25  timeshare instrument without restriction:

26

27  [Description of possible component site] is only a possible

28  component site which may never be added to the multisite

29  timeshare plan (or multisite vacation ownership plan or

30  multisite vacation plan or vacation club). Do not purchase an

31  interest in the multisite timeshare plan (or multisite

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    12-663A-00                                              See HB




  1  vacation ownership plan or multisite vacation plan or vacation

  2  club) in reliance upon the addition of this component site.

  3

  4         (d)  Notwithstanding anything contained in this chapter

  5  to the contrary, a developer or managing entity may

  6  communicate with existing purchasers regarding possible

  7  component sites without restriction, so long as all oral and

  8  written statements made to existing purchasers pursuant to

  9  this subsection comply with the provisions of subsection (4).

10         (e)  Any violation of this section by a developer,

11  seller, or managing entity shall constitute a violation of

12  this chapter. Any violation of this section with respect to a

13  purchaser whose purchase has not yet closed shall be deemed to

14  provide that purchaser with a new 10-day voidability period.

15         Section 18.  Section 721.111, Florida Statutes, is

16  amended to read:

17         721.111  Prize and gift promotional offers.--

18         (1)  As used herein, the term "prize and gift

19  promotional offer" means any advertising material wherein a

20  prospective purchaser may receive goods or services other than

21  the timeshare plan itself, either free or at a discount,

22  including, but not limited to, the use of any prize, gift,

23  award, premium, or lodging or vacation certificate.

24         (2)  A game promotion, such as a contest of chance,

25  gift enterprise, or sweepstakes, in which the elements of

26  chance and prize are present may not be used in connection

27  with the offering or sale of timeshare interests periods,

28  except for drawings, as that term is defined in s.

29  849.0935(1)(a), in which no more than 10 prizes are promoted

30  and in which all promoted prizes are actually awarded.  All

31

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  1  such drawings must meet all requirements of this chapter and

  2  of ss. 849.092 and 849.094(1), (2), and (7).

  3         (3)  Any prize, gift, or other item offered pursuant to

  4  a prize and gift promotional offer must be delivered to the

  5  prospective purchaser on the day she or he appears to claim

  6  it, whether or not she or he purchases a timeshare interest

  7  period.

  8         (4)  A separate filing for each prize and gift

  9  promotional offer to be used in the sale of timeshare

10  interests periods shall be made with the division if required

11  by and pursuant to s. 721.11(1).  One item of each prize or

12  gift, except cash, must be made available for inspection by

13  the division.

14         (5)  Each filing of a prize and gift promotional offer

15  with the division shall include, when applicable:

16         (a)  A copy of all advertising material to be used in

17  connection with the prize and gift promotional offer.

18         (b)  The name, address, and telephone number (including

19  area code) of the supplier or manufacturer from whom each type

20  or variety of prize, gift, or other item is obtained.

21         (c)  The manufacturer's model number or other

22  description of such item.

23         (d)  The information on which the developer relies in

24  determining the verifiable retail value, if the value is in

25  excess of $50.

26         (e)  The name, address, and telephone number (including

27  area code) of the promotional entity responsible for

28  overseeing and operating the prize and gift promotional offer.

29         (f)  The name and address of the registered agent in

30  this state of the promotional entity for service of process

31  purposes.

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  1         (g)  The number of anticipated recipients of each item

  2  of advertising material related to the prize and gift

  3  promotional offer.

  4         (g)(h)  Full disclosure of all pertinent information

  5  concerning the use of lodging or vacation certificates,

  6  including the terms and conditions of the campaign and the

  7  fact and extent of participation in such campaign by the

  8  developer.  The developer shall provide to the division, upon

  9  the request of the division, an affidavit, certification, or

10  other reasonable assurance division may require reasonable

11  assurances that the obligation incurred by a seller or the

12  seller's agent in a lodging certificate program can be met.

13         (6)  Each developer shall pay to the division a fee of

14  $100 for the filing of each prize and gift promotional offer,

15  at the time of filing. Those developers utilizing game

16  promotions in which the elements of chance and prize are

17  present shall pay an additional $400 fee at the time of filing

18  of the prize and gift promotional offer.  No additional fee

19  may be charged for the submission of corrected advertising

20  material related to a prize and gift promotional offer or for

21  the submission of additional material related to a prize and

22  gift promotional offer for which a prior filing has been made.

23         (6)(7)  All advertising material to be distributed in

24  connection with a prize and gift promotional offer shall

25  contain, in addition to the information required pursuant to

26  the provisions of s. 721.11, the following disclosures:

27         (a)  A description of the prize, gift, or other item

28  that the prospective purchaser will actually receive,

29  including, if the price is in excess of $50, the

30  manufacturer's suggested retail price or, if none is

31

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  1  available, the verifiable retail value. If the value is $50 or

  2  less, the description shall contain a statement of such.

  3         (b)  All rules, terms, requirements, and preconditions

  4  which must be fulfilled or met before a prospective purchaser

  5  may claim any prize, gift, or other item involved in the prize

  6  and gift promotional plan, including whether the prospective

  7  purchaser is required to attend a sales presentation in order

  8  to receive the prize, gift, or other item.

  9         (c)  The date upon which the offer expires.

10         (d)  If the number of prizes, gifts, or other items to

11  be awarded is limited, a statement of the number of items that

12  will be awarded.

13         (e)  The method by which prizes, gifts, or other items

14  are to be awarded.

15         (8)  All developers shall file with the division by

16  March 1st of each year the following information regarding

17  each prize and gift promotional offer used during the prior

18  calendar year:

19         (a)  The total number of each prize, gift, or other

20  item actually awarded or given away.

21         (b)  The name and address of each person who actually

22  received a prize, gift, or other item which had a verifiable

23  retail value or manufacturer's suggested retail price in

24  excess of $200. This regulation does not apply to recipients

25  of lodging or vacation certificates.

26         (7)(9)  All prizes, gifts, or other items represented

27  by the developer to be awarded in connection with any prize

28  and gift promotional offer shall be awarded by the date

29  referenced in the advertising material used in connection with

30  such offer.

31

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  1         Section 19.  Subsection (1) of section 721.12, Florida

  2  Statutes, is amended to read:

  3         721.12  Recordkeeping by seller.--Each seller of a

  4  timeshare plan shall maintain among its business records the

  5  following:

  6         (1)  A copy of each contract for the sale of a

  7  timeshare interest period, which contract has not been

  8  canceled.  If a timeshare estate is being sold, the seller is

  9  required to retain a copy of the contract only until a deed of

10  conveyance, agreement for deed, or lease is recorded in the

11  office of the clerk of the circuit court in the county wherein

12  the plan is located.

13         Section 20.  Section 721.13, Florida Statutes, is

14  amended to read:

15         721.13  Management.--

16         (1)(a)  For each Before the first sale of a timeshare

17  plan period, the developer shall create or provide for a

18  managing entity, which shall be either the developer, a

19  separate manager or management firm, or the board of

20  administration of an owners' association, or some combination

21  thereof. The owners' association shall be created prior to the

22  recording of the timeshare instrument.

23         (b)1.  With respect to a timeshare plan which is also

24  regulated under chapter 718 or chapter 719, or which contains

25  a mandatory owners' association, the board of administration

26  of the association shall be considered the managing entity of

27  the timeshare plan.

28         2.  During any period of time in which such association

29  has entered into a contract with a manager or management firm

30  to provide some or all of the management services to the

31  timeshare plan, both the board of administration and the

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  1  manager or management firm shall be considered the managing

  2  entity of the timeshare plan and shall be jointly and

  3  severally responsible for the faithful discharge of the duties

  4  of the managing entity.

  5         (c)  With respect to any timeshare plan other than one

  6  described in paragraph (b), any developer shall be considered

  7  the managing entity of the timeshare plan unless and until

  8  such developer clearly provides in the timeshare instrument

  9  that a different party will serve as managing entity, which

10  party has acknowledged in writing that it has accepted the

11  duties and obligations of serving as managing entity. In the

12  event such other party subsequently resigns or otherwise

13  ceases to perform its duties as managing entity, any developer

14  shall again be considered the managing entity until the

15  developer arranges for a new managing entity pursuant to this

16  paragraph.

17         (d)  In the event no one described in paragraph (b) or

18  paragraph (c) is operating and maintaining the timeshare plan,

19  anyone who operates or maintains the timeshare plan shall be

20  considered the managing entity of the timeshare plan.

21         (e)  Any managing entity performing community

22  association management must comply with part VIII of chapter

23  468.

24         (2)(a)  The managing entity shall act in the capacity

25  of a fiduciary to the purchasers of the timeshare plan. No

26  penalty imposed by the division pursuant to s. 721.26 against

27  any managing entity for breach of fiduciary duty shall be

28  assessed as a common expense of any timeshare plan.

29         (b)  The managing entity shall invest the operating and

30  reserve funds of the timeshare plan in accordance with s.

31  518.11(1); however, the managing entity shall give safety of

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  1  capital greater weight than production of income. In no event

  2  shall the managing entity invest timeshare plan funds with a

  3  developer or with any entity that is not independent of any

  4  developer or any managing entity within the meaning of s.

  5  721.05(18), and in no event shall the managing entity invest

  6  timeshare plan funds in notes and mortgages related in any way

  7  to the timeshare plan.

  8         (3)  The duties of the managing entity include, but are

  9  not limited to:

10         (a)  Management and maintenance of all accommodations

11  and facilities constituting the timeshare plan.

12         (b)  Collection of all assessments for common expenses.

13         (c)1.  Providing each year to all purchasers an

14  itemized annual budget which shall include all estimated

15  revenues and expenses. The budget shall be in the form

16  required by s. 721.07(5)(u)(x) and shall be the final budget

17  adopted by the managing entity for the current fiscal year.

18  The budget shall contain, as a footnote or otherwise, any

19  related party transaction disclosures or notes which appear in

20  the audited financial statements of the managing entity for

21  the previous budget year as required by paragraph (e). A copy

22  of the final budget shall be filed with the division within 30

23  days after the beginning of each fiscal year its adoption by

24  the managing entity together with a statement of the number of

25  periods of 7-day annual use availability that exist within the

26  timeshare plan, including those periods filed for sale by the

27  developer but not yet committed to the timeshare plan, for

28  which annual fees are required to be paid to the division

29  under s. 721.27.

30         2.  Notwithstanding anything contained in chapter 718

31  or chapter 719 to the contrary, the board of administration of

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  1  an owners' association which serves as the managing entity may

  2  from time to time reallocate reserves for deferred maintenance

  3  and capital expenditures required by s.

  4  721.07(5)(u)(x)3.a.(XI) from any deferred maintenance or

  5  capital expenditure reserve account to any other deferred

  6  maintenance or capital expenditure reserve account or accounts

  7  in its discretion without the consent of purchasers of the

  8  timeshare plan.  Funds in any deferred maintenance or capital

  9  expenditure reserve account may not be transferred to any

10  operating account without the consent of a majority of the

11  purchasers of the timeshare plan. The managing entity may from

12  time to time transfer excess funds in any operating account to

13  any deferred maintenance or capital expenditure reserve

14  account without the vote or approval of purchasers of the

15  timeshare plan.

16         (d)1.  Maintenance of all books and records concerning

17  the timeshare plan so that all such books and records are

18  reasonably available for inspection by any purchaser or the

19  authorized agent of such purchaser.  For purposes of this

20  subparagraph, the books and records of the timeshare plan

21  shall be considered "reasonably available" if copies of the

22  requested portions are delivered to the purchaser or the

23  purchaser's agent within 7 days of the date the managing

24  entity receives a written request for the records signed by

25  the purchaser.  The managing entity may charge the purchaser a

26  reasonable fee for copying the requested information not to

27  exceed 25 cents per page. However, any purchaser or agent of

28  such purchaser shall be permitted to personally inspect and

29  examine the books and records wherever located at any

30  reasonable time, under reasonable conditions, and under the

31  supervision of the custodian of those records.  The custodian

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  1  shall supply copies of the records where requested and upon

  2  payment of the copying fee. No fees other than those set forth

  3  in this section may be charged for the providing of,

  4  inspection, or examination of books and records. All books and

  5  financial records of the timeshare plan must be maintained in

  6  accordance with generally accepted accounting practices.

  7         2.  If the books and records of the timeshare plan are

  8  not maintained on the premises of the accommodations and

  9  facilities of the timeshare plan, the managing entity shall

10  inform the division in writing of the location of the books

11  and records and the name and address of the person who acts as

12  custodian of the books and records at that location.  In the

13  event that the location of the books and records changes, the

14  managing entity shall notify the division of the change in

15  location and the name and address of the new custodian within

16  30 days of the date the books and records are moved.  The

17  purchasers shall be notified of the location of the books and

18  records and the name and address of the custodian in the copy

19  of the annual budget provided to them pursuant to paragraph

20  (c).

21         3.  The division is authorized to adopt rules which

22  specify those items and matters that shall be included in the

23  books and records of the timeshare plan and which specify

24  procedures to be followed in requesting and delivering copies

25  of the books and records.

26         4.  Notwithstanding any provision of chapter 718 or

27  chapter 719 to the contrary, the managing entity may not

28  furnish the name or address of any purchaser to any other

29  purchaser or authorized agent thereof unless the purchaser

30  whose name and address are requested first approves the

31  disclosure in writing.

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  1         (e)  Arranging for an annual audit of the financial

  2  statements of the timeshare plan by a certified public

  3  accountant licensed by the Board of Accountancy of the

  4  Department of Business and Professional Regulation, in

  5  accordance with generally accepted auditing standards as

  6  defined by the rules of the Board of Accountancy of the

  7  Department of Business and Professional Regulation. The

  8  financial statements required by this section must be prepared

  9  on an accrual basis using fund accounting, and must be

10  presented in accordance with generally accepted accounting

11  principles. A copy of the audited financial statements must be

12  filed with the division and forwarded to the board of

13  directors and officers of the owners' association, if one

14  exists, no later than 5 calendar months after the end of the

15  timeshare plan's fiscal year. If no owners' association

16  exists, each purchaser must be notified, no later than 5

17  months after the end of the timeshare plan's fiscal year, that

18  a copy of the audited financial statements is available upon

19  request to the managing entity. Notwithstanding any

20  requirement of s. 718.111(13) or (14) or s. 719.104(4), the

21  audited financial statements required by this section are the

22  only annual financial reporting requirements for timeshare

23  condominiums.

24         (f)  Making available for inspection by the division

25  any books and records of the timeshare plan upon the request

26  of the division.  The division may enforce this paragraph by

27  making direct application to the circuit court.

28         (g)  Scheduling occupancy of the timeshare units, when

29  purchasers are not entitled to use specific timeshare periods,

30  so that all purchasers will be provided the use and possession

31

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  1  of the accommodations and facilities of the timeshare plan

  2  which they have purchased.

  3         (h)  Performing any other functions and duties which

  4  are necessary and proper to maintain the accommodations or

  5  facilities, as provided in the contract and as advertised.

  6         (i)1.  Entering into an ad valorem tax escrow agreement

  7  prior to the receipt of any ad valorem tax escrow payments

  8  into the ad valorem tax escrow account, as long as an

  9  independent escrow agent is required by s. 192.037(6)(e).

10         2.  Submitting to the division the statement of

11  receipts and disbursements regarding the ad valorem tax escrow

12  account as required by s. 192.037(6)(e). The statement of

13  receipts and disbursements must also include a statement

14  disclosing that all ad valorem taxes have been paid in full to

15  the tax collector through the current assessment year, or, if

16  all such ad valorem taxes have not been paid in full to the

17  tax collector, a statement disclosing those assessment years

18  for which there are outstanding ad valorem taxes due and the

19  total amount of all delinquent taxes, interest, and penalties

20  for each such assessment year as of the date of the statement

21  of receipts and disbursements.

22         (j)  Notwithstanding anything contained in chapter 718

23  or chapter 719 to the contrary, purchasers shall not have the

24  power to cancel contracts entered into by the managing entity

25  relating to a master or community antenna television system, a

26  franchised cable television service, or any similar paid

27  television programming service or bulk rate services

28  agreement.

29         (4)  The managing entity shall maintain among its

30  records and provide to the division upon request a complete

31  list of the names and addresses of all purchasers and owners

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  1  of timeshare units in the timeshare plan.  The managing entity

  2  shall update this list no less frequently than quarterly. The

  3  use of the managing entity's owners' list for the commercial

  4  benefit of any entity other than the association or managing

  5  entity shall be a violation of this chapter. Pursuant to

  6  paragraph (3)(d), the managing entity may not publish this

  7  owner's list or provide a copy of it to any purchaser or to

  8  any third party other than the division.  However, the

  9  managing entity shall initiate a mailing to those persons

10  listed on the owner's list upon the written request of any

11  purchaser if the purpose of the mailing is to advance

12  legitimate owners' association business, including, but not

13  limited to, such as a proxy solicitation for any purpose,

14  communications relating to including the recall of one or more

15  board members, communications relating to or the discharge of

16  the manager or management firm, communications relating to the

17  performance of the board of administration or the manager or

18  management firm, and other communications with purchasers of

19  timeshare interests in the timeshare plan relating to the

20  timeshare plan, provided that such communications are not

21  intended for the commercial benefit of any purchaser or any

22  entity other than the association or managing entity.  The use

23  of any proxies solicited in this manner must comply with the

24  provisions of the timeshare instrument and this chapter.  The

25  board of administration of the association shall be

26  responsible for determining the appropriateness of any mailing

27  requested pursuant to this subsection, and it shall be a

28  violation of this chapter and of part VIII of chapter 468 for

29  the board of administration or and/or the manager or

30  management firm to refuse to initiate any mailing requested

31  for the purpose of advancing legitimate owners' association

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  1  business. The purchaser who requests the mailing must

  2  reimburse the owners' association in advance for the owners'

  3  association's actual costs in performing the mailing.

  4         (5)  Any managing entity, or individual officer,

  5  director, employee, or agent thereof, who willfully

  6  misappropriates the property or funds of a timeshare plan

  7  commits a felony of the third degree, punishable as provided

  8  in s. 775.082, s. 775.083, or s. 775.084, or the successor

  9  thereof.

10         (6)(a)  The managing entity of any timeshare plan

11  located in this state, including, but not limited to, those

12  plans created with respect to a condominium pursuant to

13  chapter 718 or a cooperative pursuant to chapter 719, may deny

14  the use of the accommodations and facilities of the timeshare

15  plan, including the denial of the right to make a reservation

16  or the cancellation of a confirmed reservation for timeshare

17  periods in a floating reservation timeshare plan, to any

18  purchaser who is delinquent in the payment of any assessments

19  made by the managing entity against such purchaser for common

20  expenses or for ad valorem real estate taxes pursuant to this

21  chapter or pursuant to s. 192.037.  Such denial of use shall

22  also extend to those parties claiming under the delinquent

23  purchaser described in paragraphs (b) and (c).  For purposes

24  of this subsection, a purchaser shall be considered delinquent

25  in the payment of a given assessment only upon the expiration

26  of 60 days after the date the assessment is billed to the

27  purchaser or upon the expiration of 60 days after the date the

28  assessment is due, whichever is later. For purposes of this

29  subsection, an affiliated exchange program shall be any

30  exchange program which has a contractual relationship with the

31  creating developer or the managing entity of the timeshare

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  1  plan, or any exchange program that notifies the managing

  2  entity in writing that it has members that are purchasers of

  3  the timeshare plan, and the exchange companies operating such

  4  affiliated exchange programs shall be affiliated exchange

  5  companies.  Any denial of use for failure to pay assessments

  6  shall be implemented only pursuant to this subsection.

  7         (b)  A managing entity desiring to deny the use of the

  8  accommodations and facilities of the timeshare plan to a

  9  delinquent purchaser and to those claiming under the

10  purchaser, including his or her guests, lessees, and third

11  parties receiving use rights in the timeshare period in

12  question through a nonaffiliated exchange program, shall, no

13  less than 30 days after the date the assessment is due in

14  accordance with the timeshare instrument prior to the first

15  day of the purchaser's use period, notify the purchaser in

16  writing of the total amount of any delinquency which then

17  exists or which will exist as of the first day of such use

18  period, including any accrued interest and late charges

19  permitted to be imposed under the terms of the public offering

20  statement for the timeshare plan or by law and including a per

21  diem amount, if any, to account for further accrual of

22  interest and late charges between the stated effective date of

23  the notice and the first date of use.  The notice shall also

24  clearly state that the purchaser will not be permitted to use

25  his or her timeshare period, that the purchaser will not be

26  permitted to make a reservation in a floating reservation

27  system, or that any confirmed reservation may be cancelled, as

28  applicable, until the total amount of such delinquency is

29  satisfied in full or until the purchaser produces satisfactory

30  evidence that the delinquency does not exist.  The notice

31  shall be mailed to the purchaser at his or her last known

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  1  address as recorded in the books and records of the timeshare

  2  plan, and the notice shall be effective to bar the use of the

  3  purchaser and those claiming use rights under the purchaser,

  4  including his or her guests, lessees, and third parties

  5  receiving use rights in the timeshare period in question

  6  through a nonaffiliated exchange program, until such time as

  7  the purchaser is no longer delinquent. The notice shall not be

  8  effective to bar the use of third parties receiving use rights

  9  in the timeshare period in question through an affiliated

10  exchange program without the additional notice to the

11  affiliated exchange program required by paragraph (c).

12         (c)  In addition to giving notice to the delinquent

13  purchaser as required by paragraph (b), a managing entity

14  desiring to deny the use of the accommodations and facilities

15  of the timeshare plan to third parties receiving use rights in

16  the delinquent purchaser's timeshare period through any

17  affiliated exchange program shall notify the affiliated

18  exchange company in writing of the denial of use.  The receipt

19  of such written notice by the affiliated exchange company

20  shall be effective to bar the use of all third parties

21  claiming through the affiliated exchange program, and such

22  notice shall be binding upon the affiliated exchange company

23  and all third parties claiming through the affiliated exchange

24  program until such time as the affiliated exchange company

25  receives notice from the managing entity that the purchaser is

26  no longer delinquent. However, any third party claiming

27  through the affiliated exchange program who has received a

28  confirmed assignment of the delinquent purchaser's use rights

29  from the affiliated exchange company prior to the expiration

30  of 48 hours after the receipt by the affiliated exchange

31  company of such written notice from the managing entity shall

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  1  be permitted by the managing entity to use the accommodations

  2  and facilities of the timeshare plan to the same extent that

  3  he or she would be allowed to use such accommodations and

  4  facilities if the delinquent purchaser were not delinquent.

  5         (d)  Any costs reasonably incurred by the managing

  6  entity in connection with its compliance with the requirements

  7  of paragraphs (b) and (c), together with any costs reasonably

  8  incurred by an affiliated exchange company in connection with

  9  its compliance with the requirements of paragraph (c), may be

10  assessed by the managing entity against the delinquent

11  purchaser and collected in the same manner as if such costs

12  were common expenses of the timeshare plan allocable solely to

13  the delinquent purchaser. The costs incurred by the affiliated

14  exchange company shall be collected by the managing entity as

15  the agent for the affiliated exchange company.  In no event

16  shall the total costs to be assessed against the delinquent

17  purchaser pursuant to this paragraph at any one time exceed 5

18  percent of the total amount of delinquency contained in the

19  notice given to the delinquent purchaser pursuant to paragraph

20  (b) per timeshare period or $15 per timeshare period,

21  whichever is less.

22         (e)  An exchange company may elect to deny exchange

23  privileges to any member whose use of the accommodations and

24  facilities of the member's timeshare plan is denied pursuant

25  to paragraph (b), and no exchange program or exchange company

26  shall be liable to any of its members or third parties on

27  account of any such denial of exchange privileges.

28         (f)1.  Provided that the managing entity has properly

29  and timely given notice to a delinquent purchaser pursuant to

30  paragraph (b) and to any affiliated exchange program pursuant

31  to paragraph (c), the managing entity may give further notice

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  1  to the delinquent purchaser that it may intends to rent the

  2  delinquent purchaser's timeshare period, or any use rights

  3  appurtenant thereto, and will to apply the proceeds of such

  4  rental, net of any rental commissions, cleaning charges,

  5  travel agent commissions, or any other commercially reasonable

  6  charges reasonably and usually incurred by the managing entity

  7  in securing rentals, to the delinquent purchaser's account.

  8  Such further notice of intent to rent must be given at least

  9  30 days prior to the first day of the purchaser's use period,

10  and must be delivered to the purchaser in the manner required

11  for notices under paragraph (b).

12         2.  The notice of intent to rent, which may be included

13  in the notice required by paragraph (b), must state in

14  conspicuous type that:

15         a.  The managing entity's efforts to secure a rental

16  will not commence on a date certain, which date may not be

17  earlier than 10 days after the date of the notice of intent to

18  rent.

19         b.  Unless the purchaser satisfies the delinquency in

20  full, or unless the purchaser produces satisfactory evidence

21  that the delinquency does not exist pursuant to paragraph (b),

22  prior to the date designated in the notice for commencement of

23  rental solicitation by the managing entity, the purchaser will

24  be bound by the terms of any rental contract entered into by

25  the managing entity with respect to the purchaser's timeshare

26  period or appurtenant use rights.

27         c.  The purchaser will remain liable for any difference

28  between the amount of the delinquency and the net amount

29  produced by the rental contract and applied against the

30  delinquency pursuant to this paragraph, and the managing

31  entity shall not be required to provide any further notice to

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  1  the purchaser regarding any residual delinquency pursuant to

  2  this paragraph.

  3         3.  In securing a rental pursuant to this paragraph,

  4  the managing entity shall not be required to obtain the

  5  highest nightly rental rate available, nor any particular

  6  rental rate, and the managing entity shall not be required to

  7  rent the entire timeshare period; however, the managing entity

  8  must use reasonable efforts to secure a rental that is

  9  commensurate with other rentals of similar timeshare periods

10  or use rights generally secured at that time.

11         (g)  A managing entity shall have breached its

12  fiduciary duty described in subsection (2) in the event it

13  enforces the denial of use pursuant to paragraph (b) against

14  any one purchaser or group of purchasers without similarly

15  enforcing it against all purchasers, including all developers

16  and owners of the underlying fee; however, a managing entity

17  shall not be required to solicit rentals pursuant to paragraph

18  (f) for every delinquent purchaser.  A managing entity shall

19  also have breached its fiduciary duty in the event an error in

20  the books and records of the timeshare plan results in a

21  denial of use pursuant to this subsection of any purchaser who

22  is not, in fact, delinquent.  In addition to any remedies

23  otherwise available to purchasers of the timeshare plan

24  arising from such breaches of fiduciary duty, such breach

25  shall also constitute a violation of this chapter. In

26  addition, any purchaser receiving a notice of delinquency

27  pursuant to paragraph (b), or any third party claiming under

28  such purchaser pursuant to paragraph (b), may immediately

29  bring an action for injunctive or declaratory relief against

30  the managing entity seeking to have the notice invalidated on

31  the grounds that the purchaser is not, in fact, delinquent,

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  1  that the managing entity failed to follow the procedures

  2  prescribed by this section, or on any other available grounds.

  3  The prevailing party in any such action shall be entitled to

  4  recover his or her reasonable attorney's fees from the losing

  5  party.

  6         (7)  Unless the articles of incorporation, the bylaws,

  7  or the provisions of this chapter provide for a higher quorum

  8  requirement, the percentage of voting interests required to

  9  make decisions and to constitute a quorum at a meeting of the

10  members of a timeshare condominium or owners' association

11  shall be 15 percent of the voting interests.  If a quorum is

12  not present at any meeting of the owners' association at which

13  members of the board of administration are to be elected, the

14  meeting may be adjourned and reconvened within 90 days for the

15  sole purpose of electing members of the board of

16  administration, and the quorum for such adjourned meeting

17  shall be 15 percent of the voting interests.  This provision

18  shall apply notwithstanding any provision of chapter 718 or

19  chapter 719 to the contrary.

20         (8)  Notwithstanding anything to the contrary contained

21  in s. 718.110, s. 718.113, s. 718.114, or s. 719.1055, the

22  board of administration of the owners' association shall have

23  the power to make material alterations or substantial

24  additions to the accommodations or facilities of the timeshare

25  plan, without a vote of the members of the owners'

26  association. Unless otherwise provided in the timeshare

27  instrument as originally recorded, no such amendment may

28  change the configuration or size of any accommodation in any

29  material fashion, or change the proportion or percentage by

30  which the owner of a timeshare interest shares the common

31  expenses, unless the record owner of the affected timeshare

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  1  interests and all record owners of liens on the affected

  2  timeshare interests join in the execution of the amendment.

  3         (9)(8)  Any failure of the managing entity to

  4  faithfully discharge the fiduciary duty to purchasers imposed

  5  by this section or to otherwise comply with the provisions of

  6  this section shall be a violation of this chapter and of part

  7  VIII of chapter 468.

  8         Section 21.  Subsection (2) of section 721.14, Florida

  9  Statutes, is amended to read:

10         721.14  Discharge of managing entity.--

11         (2)  In the event the manager or management firm is

12  discharged, the board of administration of the owners'

13  association shall remain responsible for operating and

14  maintaining the timeshare plan pursuant to the timeshare

15  instrument and s. 721.13(1).  If the board of administration

16  fails to do so, any timeshare owner may apply to the circuit

17  court within the jurisdiction of which the accommodations and

18  facilities lie for the appointment of a receiver to manage the

19  affairs of the owners' association and the timeshare plan.  At

20  least 30 days before applying to the circuit court, the

21  timeshare owner shall mail to the owners' association and post

22  in a conspicuous place on the timeshare property a notice

23  describing the intended action.  If a receiver is appointed,

24  the owners' association shall be responsible as a common

25  expense of the timeshare plan, for payment of the salary and

26  expenses of the receiver, relating to the discharge of her or

27  his duties and obligations as receiver, together with the

28  receiver's court costs, and reasonable attorney's fees.  The

29  receiver shall have all powers and duties of a duly

30  constituted board of administration and shall serve until

31  discharged by the circuit court.

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  1         Section 22.  Section 721.15, Florida Statutes, is

  2  amended to read:

  3         721.15  Assessments for common expenses.--

  4         (1)(a)  Until a managing entity is created or provided

  5  pursuant to s. 721.13, the developer shall pay all common

  6  expenses. The timeshare instrument shall provide for the

  7  allocation of common expenses among all timeshare units or

  8  timeshare interests periods on a reasonable basis, including

  9  timeshare interests periods owned or not yet sold by the

10  developer. The timeshare instrument may provide that the

11  common expenses allocated may differ between those timeshare

12  units that are part of the timeshare plan and those units that

13  are not part of the timeshare plan; however, the different

14  proportion of expenses must be based upon reasonable

15  differences in the benefit provided to each. The timeshare

16  instrument shall allocate common expenses to timeshare

17  interests periods owned or not yet sold by the developer on

18  the same basis that common expenses are allocated to similar

19  or equivalent timeshare interests periods sold to purchasers.

20         (b)  Notwithstanding any provision of chapter 718 or

21  chapter 719 to the contrary, the allocation of total common

22  expenses for a condominium or a cooperative timeshare plan may

23  vary on any reasonable basis, including, but not limited to,

24  timeshare unit size, timeshare unit type, timeshare unit

25  location, specific identification, or a combination of these

26  factors, if the percentage interest in the common elements

27  attributable to each timeshare condominium parcel or timeshare

28  cooperative parcel equals the share of the total common

29  expenses allocable to that parcel. The share of a timeshare

30  interest in the common expenses allocable to the timeshare

31  condominium parcel or the timeshare cooperative parcel

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  1  containing such interest may vary on any reasonable basis,

  2  provided that the allocation of common expenses to timeshare

  3  interests owned or not yet sold by the developer is made on

  4  the same basis that common expenses are allocated to similar

  5  or equivalent timeshare interests sold to purchasers if the

  6  timeshare interest's share of its parcel's common expense

  7  allocation is equal to that timeshare interest's share of the

  8  percentage interest in common elements attributable to such

  9  parcel.

10         (2)(a)  After the creation or provision of a managing

11  entity, the managing entity shall make an annual assessment

12  against each purchaser for the payment of common expenses,

13  based on the projected annual budget, in the amount specified

14  by the contract between the seller and the purchaser or in the

15  timeshare instrument.

16         (b)  No owner of a timeshare interests period may be

17  excused from the payment of her or his share of the common

18  expenses unless all owners are likewise excused from payment,

19  except that the developer may be excused from the payment of

20  her or his share of the common expenses which would have been

21  assessed against her or his timeshare interests periods during

22  a stated period of time during which the developer has

23  guaranteed to each purchaser in the timeshare instrument, or

24  by agreement between the developer and a majority of the

25  owners of timeshare interests periods other than the

26  developer, that the assessment for common expenses imposed

27  upon the owners would not increase over a stated dollar

28  amount.  In the event of such a guarantee, the developer is

29  obligated to pay all common expenses incurred during the

30  guarantee period in excess of the total revenues of the

31  timeshare plan. Notwithstanding this limitation, if a

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  1  developer-controlled owners' association has maintained all

  2  insurance coverages required by s. 721.165, the common

  3  expenses incurred during the guarantee period resulting from a

  4  natural disaster or an act of God, which are not covered by

  5  insurance proceeds from the insurance maintained by the

  6  owners' association, may be assessed against all purchasers

  7  owning timeshare interests on the date of such natural

  8  disaster or act of God, and their successors and assigns,

  9  including the developer with respect to timeshare interests

10  owned by the developer. In the event of such an assessment,

11  all timeshare interests shall be assessed in accordance with

12  their ownership interest in the common elements as required by

13  paragraph (1)(a).

14         (c)  For the purpose of calculating the obligation of a

15  developer under a guarantee pursuant to paragraph (b),

16  depreciation expenses related to real property shall be

17  excluded from common expenses incurred during the guarantee

18  period.

19         (d)  A guarantee pursuant to paragraph (b) may provide

20  that the developer may extend or increase the guarantee for

21  one or more additional stated periods.

22         (3)  Delinquent assessments may bear interest at the

23  highest rate permitted by law or at some lesser rate

24  established by the managing entity. In addition to such

25  interest, the managing entity may charge an administrative

26  late fee in an amount not to exceed $25 for each delinquent

27  assessment. Provided that a purchaser has been advised in

28  writing at least 60 days prior to turning the matter over to a

29  collection agency that the purchaser may be liable for the

30  fees of the collection agency and a lien may result therefrom,

31  any costs of collection, including reasonable collection

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  1  agency fees and reasonable attorney's fees, incurred in the

  2  collection of a delinquent assessment shall be paid by the

  3  purchaser and shall be secured by a lien in favor of the

  4  managing entity upon the timeshare interest period with

  5  respect to which the delinquent assessment has been incurred.

  6         (4)  Unless otherwise specified in the contract between

  7  the seller and the purchaser, any common expenses benefiting

  8  fewer than all purchasers shall be assessed only against those

  9  purchasers benefited.

10         (5)  Any assessments for common expenses which have not

11  been spent for common expenses during the year for which such

12  assessments were made shall be shown as an item on the annual

13  budget.

14         (6)  Notwithstanding any contrary requirements of s.

15  718.112(2)(g) or s. 719.106(1)(g), for timeshare plans subject

16  to this chapter, assessments against purchasers need not be

17  made more frequently than annually.

18         (7)  A purchaser, regardless of how her or his

19  timeshare estate or timeshare license has been acquired,

20  including a purchaser at a judicial sale, is personally liable

21  for all assessments for common expenses which come due while

22  the purchaser is the owner of such interest.  A successor in

23  interest is jointly and severally liable with her or his

24  predecessor in interest for all unpaid assessments against

25  such predecessor up to the time of transfer of the timeshare

26  interest to such successor without prejudice to any right a

27  successor in interest may have to recover from her or his

28  predecessor in interest any amounts assessed against such

29  predecessor and paid by such successor.  The predecessor in

30  interest shall provide the managing entity with a copy of the

31  recorded deed of conveyance if the interest is a timeshare

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  1  estate or a copy of the instrument of transfer if the interest

  2  is a timeshare license, containing the name and mailing

  3  address of the successor in interest within 15 days after the

  4  date of transfer. The managing entity shall not be liable to

  5  any person for any inaccuracy in the books and records of the

  6  timeshare plan arising from the failure of the predecessor in

  7  interest to timely and correctly notify the managing entity of

  8  the name and mailing address of the successor in interest.

  9  Nothing in this subsection shall be construed to impair the

10  operation of s. 718.116 for timeshare condominiums.

11         (8)  Notwithstanding the provisions of subsection (7),

12  a first mortgagee or its successor or assignee who acquires

13  title to a timeshare interest as a result of the foreclosure

14  of the mortgage or by deed in lieu of foreclosure of the

15  mortgage shall be exempt from liability for all unpaid

16  assessments attributable to the timeshare interest or

17  chargeable to the previous owner which came due prior to

18  acquisition of title by the first mortgage.

19         (9)(8)(a)  Anything contained in chapter 718 or chapter

20  719 to the contrary notwithstanding, the managing entity of a

21  timeshare plan shall not commingle operating funds with

22  reserve funds; however, the managing entity may maintain

23  operating and reserve funds within a single account for a

24  period not to exceed 30 days after the date on which the

25  managing entity received payment of such funds.

26         (b)  Anything contained in chapter 718 or chapter 719

27  to the contrary notwithstanding, a managing entity which

28  serves as managing entity of more than one timeshare plan, or

29  of more than one component site pursuant to part II, shall not

30  commingle the common expense funds of any one timeshare plan

31  or component site with the common expense funds of any other

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  1  timeshare plan or component site.  However, the managing

  2  entity may maintain common expense funds of multiple timeshare

  3  plans or multiple component sites within a single account for

  4  a period not to exceed 30 days after the date on which the

  5  managing entity received payment of such funds.

  6         Section 23.  Section 721.16, Florida Statutes, is

  7  amended to read:

  8         721.16  Liens for overdue assessments; liens for labor

  9  performed on, or materials furnished to, a timeshare unit.--

10         (1)  The managing entity has a lien on a timeshare

11  interest period for any assessment levied against that

12  timeshare interest period from the date such assessment

13  becomes due.

14         (2)  The managing entity may bring an action in its

15  name to foreclose a lien for assessments in the manner a

16  mortgage of real property is foreclosed and may also bring an

17  action to recover a money judgment for the unpaid assessments

18  without waiving any claim of lien.  However, in the case of a

19  timeshare plan in which no interest in real property is

20  conveyed, the managing entity may bring an action under the

21  Uniform Commercial Code.

22         (3)  The lien is effective from the date of recording a

23  claim of lien in the public records of the county or counties

24  in which the accommodations and or facilities constituting the

25  timeshare plan are located. The claim of lien shall state the

26  name of the timeshare plan and identify the timeshare interest

27  period for which the lien is effective, state the name of the

28  purchaser, state the assessment amount due, and state the due

29  dates. Notwithstanding any provision of s. 718.116(5)(a) or s.

30  719.108(4) to the contrary, the lien is effective until

31  satisfied or until 5 years have expired after the date the

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  1  claim of lien is recorded unless, within that time, an action

  2  to enforce the lien is commenced pursuant to subsection (2).

  3  The claim of lien may include only assessments which are due

  4  when the claim is recorded.  A claim of lien shall be signed

  5  and acknowledged by an officer or agent of the managing

  6  entity.  Upon full payment, the person making the payment is

  7  entitled to receive a satisfaction of the lien.

  8         (4)  A judgment in any action or suit brought under

  9  this section shall include costs and reasonable attorney's

10  fees for the prevailing party.

11         (5)  Labor performed on a timeshare unit, or materials

12  furnished to a timeshare unit, shall not be the basis for the

13  filing of a lien pursuant to part I of chapter 713, the

14  Construction Lien Law, against the timeshare unit of any

15  timeshare-period owner not expressly consenting to or

16  requesting the labor or materials.

17         (6)  The managing entity has a lien on a timeshare

18  interest of any owner for the cost of any maintenance,

19  repairs, or replacement resulting from an act of such owner or

20  owner's guest that results in damage to the timeshare property

21  or facilities made available to the purchasers.

22         Section 24.  Section 721.17, Florida Statutes, is

23  amended to read:

24         721.17  Transfer of interest.--Except in the case of a

25  timeshare plan subject to the provisions of chapter 718 or

26  chapter 719, no developer or owner of the underlying fee shall

27  sell, lease, assign, mortgage, or otherwise transfer his or

28  her interest in the accommodations and or facilities of the

29  timeshare plan except by an instrument evidencing the transfer

30  recorded in the public records of the county in which such the

31  accommodations and or facilities are located.  The instrument

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  1  shall be executed by both the transferor and transferee and

  2  shall state:

  3         (1)  That its provisions are intended to protect the

  4  rights of all purchasers of the plan.

  5         (2)  That its terms may be enforced by any prior or

  6  subsequent timeshare purchaser so long as that purchaser is

  7  not in default of his or her obligations.

  8         (3)  That the transferee will fully honor the rights of

  9  the purchasers to occupy and use the accommodations and

10  facilities as provided in their original contracts and the

11  timeshare instruments.

12         (4)  That the transferee will fully honor all rights of

13  timeshare purchasers to cancel their contracts and receive

14  appropriate refunds.

15         (4)(5)  That the obligations of the transferee under

16  such instrument will continue to exist despite any

17  cancellation or rejection of the contracts between the

18  developer and purchaser arising out of bankruptcy proceedings.

19

20  Should any transfer of the interest of the developer or owner

21  of the underlying fee occur in a manner which is not in

22  compliance with this section, the terms set forth in this

23  section shall be presumed to be a part of the transfer and

24  shall be deemed to be included in the instrument of transfer.

25  Notice shall be mailed to each purchaser of record within 30

26  days of the transfer unless such transfer does not affect the

27  purchaser's rights in or use of the timeshare plan.  Persons

28  who hold mortgages on the property constituting a timeshare

29  plan before the filed public offering statement of such plan

30  is approved by the division shall not be considered

31  transferees for the purposes of this section.

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  1         Section 25.  Section 721.18, Florida Statutes, is

  2  amended to read:

  3         721.18  Exchange programs; filing of information and

  4  other materials; filing fees; unlawful acts in connection with

  5  an exchange program.--

  6         (1)  If a purchaser is offered the opportunity to

  7  subscribe to an exchange program, the seller shall deliver to

  8  the purchaser, together with the purchaser public offering

  9  statement, and prior to the offering or execution of any

10  contract between the purchaser and the company offering the

11  exchange program, written information regarding such exchange

12  program; or, if the exchange company is dealing directly with

13  the purchaser, the exchange company shall deliver to the

14  purchaser, prior to the initial offering or execution of any

15  contract between the purchaser and the company offering the

16  exchange program, written information regarding such exchange

17  program.  In either case, the purchaser shall certify in

18  writing to the receipt of such information.  Such information

19  shall include, but is not limited to, the following

20  information, the form and substance of which shall first be

21  approved by the division in accordance with subsection (2):

22         (a)  The name and address of the exchange company.

23         (b)  The names of all officers, directors, and

24  shareholders of the exchange company.

25         (c)  Whether the exchange company or any of its

26  officers or directors has any legal or beneficial interest in

27  any developer, seller, or managing entity for any timeshare

28  plan participating in the exchange program and, if so, the

29  name and location of the timeshare plan and the nature of the

30  interest.

31

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  1         (d)  Unless otherwise stated, a statement that the

  2  purchaser's contract with the exchange company is a contract

  3  separate and distinct from the purchaser's contract with the

  4  seller of the timeshare plan.

  5         (e)  Whether the purchaser's participation in the

  6  exchange program is dependent upon the continued affiliation

  7  of the timeshare plan with the exchange program.

  8         (f)  A statement that the purchaser's participation in

  9  the exchange program is voluntary.

10         (g)  A complete and accurate description of the terms

11  and conditions of the purchaser's contractual relationship

12  with the exchange program and the procedure by which changes

13  thereto may be made.

14         (h)  A complete and accurate description of the

15  procedure to qualify for and effectuate exchanges.

16         (i)  A complete and accurate description of all

17  limitations, restrictions, or priorities employed in the

18  operation of the exchange program, including, but not limited

19  to, limitations on exchanges based on seasonality, timeshare

20  unit size, or levels of occupancy, expressed in boldfaced

21  type, and, in the event that such limitations, restrictions,

22  or priorities are not uniformly applied by the exchange

23  program, a clear description of the manner in which they are

24  applied.

25         (j)  Whether exchanges are arranged on a

26  space-available basis and whether any guarantees of

27  fulfillment of specific requests for exchanges are made by the

28  exchange program.

29         (k)  Whether and under what circumstances a purchaser,

30  in dealing with the exchange program, may lose the use and

31  occupancy of her or his timeshare period in any properly

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  1  applied for exchange without her or his being provided with

  2  substitute accommodations by the exchange program.

  3         (l)  The fees or range of fees for participation by

  4  purchasers in the exchange program, a statement whether any

  5  such fees may be altered by the exchange company, and the

  6  circumstances under which alterations may be made.

  7         (m)  The name and address of the site of each

  8  accommodation or facility included in the timeshare plans

  9  participating in the exchange program.

10         (n)  The number of the timeshare units in each

11  timeshare plan which are available for occupancy and which

12  qualify for participation in the exchange program, expressed

13  within the following numerical groupings:  1-5; 6-10; 11-20;

14  21-50; and 51 and over.

15         (o)  The number of currently enrolled purchasers for

16  each timeshare plan participating in the exchange program,

17  expressed within the following numerical groupings:  1-100;

18  101-249; 250-499; 500-999; and 1,000 and over; and a statement

19  of the criteria used to determine those purchasers who are

20  currently enrolled with the exchange program.

21         (p)  The disposition made by the exchange company of

22  timeshare periods deposited with the exchange program by

23  purchasers enrolled in the exchange program and not used by

24  the exchange company in effecting exchanges.

25         (q)  The following information, which shall be

26  independently audited by a certified public accountant or

27  accounting firm in accordance with the standards of the

28  Accounting Standards Board of the American Institute of

29  Certified Public Accountants and reported annually beginning

30  no later than July 1, 1982:

31

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  1         1.  The number of purchasers currently enrolled in the

  2  exchange program.

  3         2.  The number of accommodations and facilities that

  4  have current affiliation agreements with the exchange program.

  5         3.  The percentage of confirmed exchanges, which is the

  6  number of exchanges confirmed by the exchange program divided

  7  by the number of exchanges properly applied for, together with

  8  a complete and accurate statement of the criteria used to

  9  determine whether an exchange request was properly applied

10  for.

11         4.  The number of timeshare periods for which the

12  exchange program has an outstanding obligation to provide an

13  exchange to a purchaser who relinquished a timeshare period

14  during the year in exchange for a timeshare period in any

15  future year.

16         5.  The number of exchanges confirmed by the exchange

17  program during the year.

18         (r)  A statement in boldfaced type to the effect that

19  the percentage described in subparagraph (q)3. is a summary of

20  the exchange requests entered with the exchange program in the

21  period reported and that the percentage does not indicate the

22  probabilities of a purchaser's being confirmed to any specific

23  choice or range of choices.

24         (2)  Each exchange company offering an exchange program

25  to purchasers in this state shall file the information

26  specified in subsection (1) and the audit specified in

27  subsection (1) on or before June 1 of each year. However, an

28  exchange company shall make its initial filing at least 20

29  days prior to offering an exchange program to any purchaser in

30  this state. Each filing shall be accompanied by an annual

31  filing fee of $500.  Within 20 days of receipt of such filing,

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  1  the division shall determine whether the filing is adequate to

  2  meet the requirements of this section and shall notify the

  3  exchange company in writing that the division has either

  4  approved the filing or found specified deficiencies in the

  5  filing. If the division fails to respond within 20 days, the

  6  filing shall be deemed approved. The exchange company may

  7  correct the deficiencies; and, within 10 days after receipt of

  8  corrections from the exchange company, the division shall

  9  notify the exchange company in writing that the division has

10  either approved the filing or found additional specified

11  deficiencies in the filing. If at any time the division

12  determines that any of such information supplied by an

13  exchange company fails to meet the requirements of this

14  section, the division may undertake enforcement action against

15  the exchange company in accordance with the provision of s.

16  721.26.

17         (3)  No developer shall have any liability with respect

18  to any violation of this chapter arising out of the

19  publication by the developer of information provided to it by

20  an exchange company pursuant to this section. No exchange

21  company shall have any liability with respect to any violation

22  of this chapter arising out of the use by a developer of

23  information relating to an exchange program other than that

24  provided to the developer by the exchange company.

25         (4)  Audio, written, or visual publications or

26  materials relating to an exchange company or an exchange

27  program shall be filed with the division within 3 days of

28  their use.

29         (4)(5)  The failure of an exchange company to observe

30  the requirements of this section, or the use of any unfair or

31

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  1  deceptive act or practice in connection with the operation of

  2  an exchange program, is a violation of this chapter.

  3         Section 26.  Section 721.19, Florida Statutes, is

  4  amended to read:

  5         721.19  Provisions requiring purchase or lease of

  6  timeshare property by owners' association or purchasers unit

  7  owners; validity.--In any timeshare plan in which timeshare

  8  estates are sold, no grant or reservation made by a

  9  declaration, lease, or other document, nor any contract made

10  by the developer, managing entity, or owners' association,

11  which requires the owners' association or purchasers unit

12  owners to purchase or lease any portion of the timeshare

13  property shall be valid unless approved by a majority of the

14  purchasers other than the developer, after more than 50

15  percent of the timeshare periods have been sold.

16         Section 27.  Section 721.20, Florida Statutes, is

17  amended to read:

18         721.20  Licensing requirements; suspension or

19  revocation of license; exceptions to applicability; collection

20  of advance fees for listings unlawful.--

21         (1)  Any seller of a timeshare plan must be a licensed

22  real estate salesperson, broker, or broker-salesperson as

23  defined in s. 475.01, except as provided in s. 475.011.

24         (2)  Solicitors licensed under the provisions of

25  paragraph (2)(a) who engage only in the solicitation of

26  prospective purchasers, and purchasers engaging in

27  solicitation activities as described in paragraph (2)(e), and

28  any purchaser who refers no more than 20 people to a developer

29  per year or who otherwise provides testimonials on behalf of a

30  developer are exempt from the provisions of chapter 475.

31

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  1         (2)(a)  Pursuant to rules adopted by the division, each

  2  off-premises solicitor or other person who engages in the

  3  solicitation of prospective purchasers of units in a timeshare

  4  plan must purchase a timeshare occupational license for a fee

  5  of $100.  The license shall be issued to the solicitor for a

  6  2-year period and shall expire on the second anniversary of

  7  the date of issuance.  Sellers of a timeshare plan who are

  8  licensed and in good standing under chapter 475 shall be

  9  exempt from licensure under this subsection upon filing proof

10  of such licensure and good standing with the division prior to

11  engaging in any solicitation activity.  However, the division

12  may deny, suspend, or revoke the exemption of such seller when

13  the license issued under chapter 475 has been suspended or

14  revoked.

15         (b)  It is unlawful for any person to solicit

16  prospective purchasers of a timeshare plan without first

17  having secured a timeshare occupational license and having

18  paid the occupational license fee; however, an applicant who

19  has completed and filed an application for a timeshare

20  occupational license and who has paid the required

21  occupational license fee may solicit prospective purchasers of

22  a timeshare plan pursuant to this section pending approval or

23  denial of his or her application by the division.

24         (c)  Prior to issuing an occupational license to an

25  applicant, the division shall receive an application, on forms

26  designed by the division, containing such pertinent background

27  information as is necessary to properly identify the

28  applicant; however, the fingerprinting of applicants is not

29  required.

30         (d)  The division may deny, suspend, or revoke any

31  occupational license when the applicant or holder thereof

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  1         (3)  A solicitor who has violated the provisions of

  2  chapter 468, chapter 718, chapter 719, this chapter, or the

  3  rules of the division governing timesharing, or when the

  4  holder of a license issued pursuant to chapter 475 has had his

  5  or her license suspended or revoked. If any occupational

  6  license expires by division rule while administrative charges

  7  are pending against the license, the proceedings against the

  8  license shall continue to conclusion as if the license were

  9  still in effect.  In addition to those remedies available

10  against the developer, the division may impose against an

11  applicant or licensed solicitor a civil fine of up to $500 in

12  addition to, or in lieu of, a suspension or revocation

13  provided for in this section for violation of the rules of the

14  division.

15         (e)  Any purchaser who refers no more than 20 people to

16  a developer per year or who otherwise provides testimonials on

17  behalf of a developer shall not shall be subject to licensure

18  under the provisions of paragraph (a). s. 721.26. Any

19  developer or other person who supervises, directs, or engages

20  the services of a solicitor shall be liable for any violation

21  committed by such solicitor.

22         (f)  The division may require up to 2 hours of

23  continuing education annually as a condition of renewal of an

24  occupational license.

25         (4)(3)  This section does not apply to those

26  individuals who offer for sale only timeshare interests

27  periods in timeshare property located outside this state and

28  who do not engage in any sales activity within this state or

29  to timeshare plans which are registered with the Securities

30  and Exchange Commission.  For the purposes of this section,

31

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  1  both timeshare licenses and timeshare estates are considered

  2  to be interests in real property.

  3         (5)(4)  Notwithstanding the provisions of s. 475.452,

  4  it is unlawful for any broker, salesperson, or

  5  broker-salesperson to collect any advance fee for the listing

  6  of any timeshare estate or timeshare license.

  7         Section 28.  Section 721.21, Florida Statutes, is

  8  amended to read:

  9         721.21  Purchasers' remedies.--An action for damages or

10  for injunctive or declaratory relief for a violation of this

11  chapter may be brought by any purchaser or owners' association

12  of purchasers against the developer, a seller, an escrow

13  agent, or the managing entity.  The prevailing party in any

14  such action, or in any action in which the purchaser claims a

15  right of voidability based upon either a closing before the

16  expiration of the cancellation period or an amendment which

17  materially alters or modifies the offering in a manner adverse

18  to the purchaser, may be entitled to reasonable attorney's

19  fees. Relief under this section does not exclude other

20  remedies provided by law.

21         Section 29.  Subsections (1) and (2) of section 721.24,

22  Florida Statutes, are amended to read:

23         721.24  Firesafety.--

24         (1)  Any:

25         (a)  Facility or accommodation of a timeshare plan, as

26  defined in this chapter, and chapter 718, or chapter 719,

27  which is of three stories or more and for which the

28  construction contract has been let after September 30, 1983,

29  with interior corridors which do not have direct access from

30  the timeshare unit to exterior means of egress, or

31

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  1         (b)  Building over 75 feet in height that has direct

  2  access from the timeshare unit to exterior means of egress and

  3  for which the construction contract has been let after

  4  September 30, 1983,

  5

  6  shall be equipped with an automatic sprinkler system installed

  7  in compliance with the provisions prescribed in the National

  8  Fire Protection Association publication NFPA No. 13 (1985),

  9  "Standards for the Installation of Sprinkler Systems."  The

10  sprinkler installation may be omitted in closets which are not

11  over 24 square feet in area and in bathrooms which are not

12  over 55 square feet in area, which closets and bathrooms are

13  located in timeshare units.  Each timeshare unit shall be

14  equipped with an approved listed single-station smoke detector

15  meeting the minimum requirements of NFPA-74 (1984), "Standards

16  for the Installation, Maintenance and Use of Household Fire

17  Warning Equipment," powered from the building electrical

18  service, notwithstanding the number of stories in the

19  structure, if the contract for construction is let after

20  September 30, 1983. Single-station smoke detection is not

21  required when a timeshare unit's smoke detectors are connected

22  to a central alarm system which also alarms locally.

23         (2)  Any timeshare unit of a timeshare plan, as defined

24  in this chapter, and chapter 718, or chapter 719 which is of

25  three stories or more and for which the construction contract

26  was let before October 1, 1983, shall be equipped with:

27         (a)  A system which complies with subsection (1); or

28         (b)  An approved sprinkler system for all interior

29  corridors, public areas, storage rooms, closets, kitchen

30  areas, and laundry rooms, less individual timeshare units, if

31  the following conditions are met:

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  1         1.  There is a minimum 1-hour separation between each

  2  timeshare unit and between each timeshare unit and a corridor.

  3         2.  The building is constructed of noncombustible

  4  materials.

  5         3.  The egress conditions meet the requirements of s.

  6  5-3 of the Life Safety Code, NFPA 101 (1985).

  7         4.  The building has a complete automatic fire

  8  detection system which meets the requirements of NFPA-72A

  9  (1987) and NFPA-72E (1984), including smoke detectors in each

10  timeshare unit individually annunciating to a panel at a

11  supervised location.

12         Section 30.  Paragraphs (a), (d), and (e) of subsection

13  (5) of section 721.26, Florida Statutes, are amended to read:

14         721.26  Regulation by division.--The division has the

15  power to enforce and ensure compliance with the provisions of

16  this chapter, except for parts III and IV, using the powers

17  provided in this chapter, as well as the powers prescribed in

18  chapters 498, 718, and 719. In performing its duties, the

19  division shall have the following powers and duties:

20         (5)  Notwithstanding any remedies available to

21  purchasers, if the division has reasonable cause to believe

22  that a violation of this chapter, or of any division rule or

23  order promulgated or issued pursuant to this chapter, has

24  occurred, the division may institute enforcement proceedings

25  in its own name against any regulated party, as such term is

26  defined in this subsection:

27         (a)1.  "Regulated party," for purposes of this section,

28  means any developer, exchange company, seller, managing

29  entity, owners' association, owners' association director,

30  owners' association officer, manager, management firm, escrow

31  agent, trustee, any respective assignees or agents, or any

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  1  other person having duties or obligations pursuant to this

  2  chapter.

  3         2.  Any person who materially participates in any offer

  4  or disposition of any interest in, or the management or

  5  operation of, a timeshare plan in violation of this chapter or

  6  relevant rules involving fraud, deception, false pretenses,

  7  misrepresentation, or false advertising or the disbursement,

  8  concealment, or diversion of any funds or assets, which

  9  conduct adversely affects the interests of a purchaser, and

10  which person directly or indirectly controls a regulated party

11  or is a general partner, officer, director, agent, or employee

12  of such regulated party, shall be jointly and severally liable

13  under this subsection with such regulated party, unless such

14  person did not know, and in the exercise of reasonable care

15  could not have known, of the existence of the facts giving

16  rise to the violation of this chapter.  A right of

17  contribution shall exist among jointly and severally liable

18  persons pursuant to this paragraph.

19         (d)1.  The division may bring an action in circuit

20  court for declaratory or injunctive relief or for other

21  appropriate relief, including restitution.

22         2.  The division shall have broad authority and

23  discretion to petition the circuit court to appoint a receiver

24  with respect to any managing entity which fails to perform its

25  duties and obligations under this chapter with respect to the

26  operation of a timeshare plan.  The circumstances giving rise

27  to an appropriate petition for receivership under this

28  subparagraph include, but are not limited to:

29         a.  Damage to or destruction of any of the

30  accommodations or facilities of a timeshare plan, where the

31  managing entity has failed to repair or reconstruct same.

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  1         b.  A breach of fiduciary duty by the managing entity,

  2  including, but not limited to, undisclosed self-dealing or

  3  failure to timely assess, collect, or disburse the common

  4  expenses of the timeshare plan.

  5         c.  Failure of the managing entity to operate the

  6  timeshare plan in accordance with the timeshare instrument and

  7  this chapter.

  8

  9  If, under the circumstances, it appears that the events giving

10  rise to the petition for receivership cannot be reasonably and

11  timely corrected in a cost-effective manner consistent with

12  the timeshare instrument, the receiver may petition the

13  circuit court to implement such amendments or revisions to the

14  timeshare instrument as may be necessary to enable the

15  managing entity to resume effective operation of the timeshare

16  plan, or to enter an order terminating the timeshare plan, or

17  to enter such further orders regarding the disposition of the

18  timeshare property as the court deems appropriate including

19  the disposition and sale of the timeshare property held by the

20  association or the purchasers. In the event of a receiver's

21  sale, all rights, title, and interest held by the association

22  or any purchaser shall be extinguished and title shall vest in

23  the buyer. This provision applies to timeshare estates and

24  timeshare licenses.  All reasonable costs and fees of the

25  receiver relating to the receivership shall become common

26  expenses of the timeshare plan upon order of the court.

27         3.  The division may revoke its approval of any filing

28  for any timeshare plan for which a petition for receivership

29  has been filed pursuant to this paragraph.

30         (e)1.  The division may impose a penalty against any

31  regulated party for a violation of this chapter or any rule

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  1  adopted thereunder.  A penalty may be imposed on the basis of

  2  each day of continuing violation, but in no event may the

  3  penalty for any offense exceed $10,000.  All accounts

  4  collected shall be deposited with the Treasurer to the credit

  5  of the Division of Florida Land Sales, Condominiums, and

  6  Mobile Homes Trust Fund.

  7         2.a.  If a regulated party fails to pay a penalty, the

  8  division shall thereupon issue an order directing that such

  9  regulated party cease and desist from further operation until

10  such time as the penalty is paid; or the division may pursue

11  enforcement of the penalty in a court of competent

12  jurisdiction.

13         b.  If an owners' association or managing entity fails

14  to pay a civil penalty, the division may pursue enforcement in

15  a court of competent jurisdiction.

16         Section 31.  Section 721.27, Florida Statutes, is

17  amended to read:

18         721.27  Annual fee for each timeshare unit period in

19  plan.--On January 1 of each year, each managing entity of a

20  timeshare plan located in this state shall collect as a common

21  expense and pay to the division an annual fee equal to the

22  aggregate filing fee calculated pursuant to s. 721.07(4)(a) or

23  s. 721.58, whichever is applicable, based upon the total

24  number of timeshare units or timeshare interests located in

25  this state periods of 7-day annual use availability that exist

26  within the timeshare plan at that time.  Each developer of a

27  phased timeshare plan shall remit to the managing entity that

28  portion of the annual fee that relates to those timeshare

29  units filed for sale by the developer but not yet declared as

30  part of the condominium or cooperative regime or otherwise

31  committed to the timeshare plan before January 1.  If any

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  1  portion of the annual fee is not paid by March 1, the managing

  2  entity may be assessed a penalty pursuant to s. 721.26 shall

  3  be assessed a late fee of 10 percent of the amount due or

  4  $250, whichever is greater.

  5         Section 32.  Section 721.29, Florida Statutes, is

  6  created to read:

  7         721.29  Recording.--If any timeshare plan

  8  accommodations or facilities are located in any jurisdiction

  9  that does not have recording laws or will not record any

10  document or instrument required to be recorded pursuant to

11  this chapter, the director shall have the discretion to accept

12  an alternative method of protecting purchasers' rights that

13  will be effective under the laws of the other jurisdiction.

14         Section 33.  Section 721.51, Florida Statutes, is

15  amended to read:

16         721.51  Legislative purpose; scope.--

17         (1)  The purpose of this part is to advance the

18  purposes of this chapter as set forth in s. 721.02 with

19  respect to multisite vacation and timeshare plans, also known

20  as vacation clubs.

21         (2)  All multisite timeshare plans shall be governed by

22  both part I and this part except where otherwise provided in

23  this part.  In the event of a conflict between the provisions

24  of part I and this part, the provisions of this part shall

25  prevail.

26         (3)(a)  A multisite timeshare plan which includes

27  accommodations located in this state, but which is offered

28  exclusively outside of the jurisdictional limits of the United

29  States shall be exempt from all other requirements of this

30  part if it complies with paragraph (b).

31

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  1         (b)  In order to claim exemption from regulation under

  2  this part pursuant to paragraph (a), the person claiming

  3  exemption shall register the following minimum information

  4  with the division pertaining to the multisite timeshare plan:

  5         1.  The name and address of the multisite timeshare

  6  plan;

  7         2.  The name and address of the developer or seller;

  8         3.  The location and a brief description of the

  9  accommodations and facilities of the multisite timeshare plan;

10         4.  The number of timeshare periods to be offered;

11         5.  The term of the multisite timeshare plan; and

12         6.  A copy of the form purchase contract to be utilized

13  in offering the multisite timeshare plan, which contract must

14  contain the disclosure required by paragraph (c).

15

16  The division is authorized to adopt rules requiring additional

17  information to be furnished to the division or in the purchase

18  contract in connection with the registration for exemption.

19  The initial exemption registration fee shall be $100; however,

20  the division may provide by rule for an exemption registration

21  fee of up to $500.  No person shall be entitled to claim

22  exemption pursuant to paragraph (a) until that person has

23  fully registered pursuant to this paragraph.

24         (c)  Each purchase contract utilized in offering a

25  multisite timeshare plan for which an exemption is claimed

26  pursuant to this subsection shall contain the following

27  disclosure in conspicuous type immediately above the space

28  provided for the purchaser's signature:

29

30         The offering of this timeshare plan outside the

31  jurisdictional limits of the United States of America is

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  1  exempt from regulation under Florida law, and any purchase

  2  resulting from such an offer is not protected by the State of

  3  Florida.  However, the management and operation of any

  4  accommodations or facilities located in Florida is subject to

  5  Florida law and may give rise to enforcement action regardless

  6  of the location of any offer.

  7         Section 34.  Subsection (4) of section 721.52, Florida

  8  Statutes, is amended to read:

  9         721.52  Definitions.--As used in this part, the term:

10         (4)  "Multisite timeshare plan" means any method,

11  arrangement, or procedure with respect to which a purchaser

12  obtains, by any means, a recurring right to use and occupy

13  accommodations or facilities of more than one component site,

14  only through use of a reservation system, whether or not the

15  purchaser is able to elect to cease participating in the plan.

16  However, the term "multisite timeshare plan" shall not include

17  any method, arrangement, or procedure wherein:

18         (a)  The contractually specified maximum total

19  financial obligation on the purchaser's part is $3,000 or

20  less, during the entire term of the plan $1,500 or less,

21  excluding the aggregate amount of any common expense

22  assessments and special assessments levied by an owners'

23  association or other person who is not an affiliate of the

24  seller or the developer, provided that any such assessment

25  obligations are fully described as accurately as possible in

26  the purchaser's purchase contract, but including all other

27  amounts paid by such purchaser for any purpose whatsoever,

28  regardless of the term of such use and occupancy rights; or

29         (b)  The term is for a period of 3 years or less,

30  regardless of the purchaser's contractually specified maximum

31  total financial obligation, if any.  For purposes of

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  1  determining the term of such use and occupancy rights, the

  2  period of any optional renewals which a purchaser, in his or

  3  her sole discretion, may elect to exercise, whether or not for

  4  additional consideration, shall be included.

  5

  6  Multisite timeshare plan does not mean an exchange program as

  7  defined in s. 721.05.  Timeshare estates may only be offered

  8  in a multisite timeshare plan pursuant to s. 721.57.

  9         Section 35.  Paragraph (e) is added to subsection (1)

10  of section 721.53, Florida Statutes, to read:

11         721.53  Subordination instruments; alternate security

12  arrangements.--

13         (1)  With respect to each accommodation or facility of

14  a multisite timeshare plan, the developer shall provide the

15  division with satisfactory evidence that one of the following

16  has occurred with respect to each interestholder prior to

17  offering the accommodation or facility as a part of the

18  multisite timeshare plan:

19         (e)  The interestholder has transferred the subject

20  accommodation or facility or all use rights therein to a trust

21  that complies with this paragraph. Prior to such transfer, any

22  lien or other encumbrance against such accommodation or

23  facility shall be made subject to a nondisturbance and notice

24  to creditors instrument pursuant to paragraph (a) or a

25  subordination and notice to creditors instrument pursuant to

26  paragraph (b). No transfer pursuant to this paragraph shall

27  become effective until the trust accepts such transfer and the

28  responsibilities set forth herein. A trust established

29  pursuant to this paragraph shall comply with the following

30  provisions:

31

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  1         1.  The trustee shall be an individual or a business

  2  entity authorized and qualified to conduct trust business in

  3  this state. Any corporation authorized to do business in this

  4  state may act as trustee in connection with a timeshare plan

  5  pursuant to this chapter. The trustee must be independent from

  6  any developer or managing entity of the timeshare plan or any

  7  interestholder of any accommodation or facility of such plan.

  8         2.  The trust shall be irrevocable so long as any

  9  purchaser has a right to occupy any portion of the timeshare

10  property.

11         3.  The trustee shall not convey, hypothecate,

12  mortgage, assign, or otherwise transfer or encumber in any

13  fashion any portion of the timeshare property with respect to

14  which any purchaser has a right of use or occupancy unless the

15  timeshare plan is terminated pursuant to the timeshare

16  instrument, or the timeshare property held in trust is deleted

17  from a multisite timeshare plan pursuant to s. 721.552(3), or

18  a majority of the total purchasers of the timeshare plan

19  approved such conveyance, hypothecation, mortgage, assignment,

20  transfer, or encumbrance.

21         4.  All purchasers of the timeshare plan and the

22  managing entity of the timeshare plan shall be express

23  beneficiaries of the trust. The trustee shall act as a

24  fiduciary to the beneficiaries of the trust. The personal

25  liability of the trustee shall be governed by s. 737.306. All

26  expenses reasonably incurred by the trustee in the performance

27  of its duties, together with any reasonable compensation of

28  the trustee, shall be common expenses of the timeshare plan.

29         5.  The trustee shall not resign upon less than 30

30  days' prior written notice to the managing entity and the

31  division. No resignation shall become effective until a

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  1  substitute trustee, approved by the division, is appointed by

  2  the managing entity and accepts the appointment.

  3         6.  The documents establishing the trust arrangement

  4  shall constitute a part of the timeshare instrument.

  5         7.  The trustee shall constitute an interestholder.

  6         Section 36.  Section 721.55, Florida Statutes, is

  7  amended to read:

  8         721.55  Multisite timeshare plan public offering

  9  statement.--Each filed public offering statement filed with

10  the division for a multisite timeshare plan shall contain the

11  information required by this section and shall comply with the

12  provisions of s. 721.07.  The division is authorized to

13  provide by rule the method by which a developer must provide

14  such information to the division.  Each multisite timeshare

15  plan filed public offering statement shall contain the

16  following information and disclosures:

17         (1)  A cover page containing:

18         (a)  The name of the multisite timeshare plan.

19         (b)  The following statement in conspicuous type:

20

21         This public offering statement contains important

22  matters to be considered in acquiring an interest in a

23  multisite timeshare plan (or multisite vacation ownership plan

24  or multisite vacation plan or vacation club).  The statements

25  contained herein are only summary in nature.  A prospective

26  purchaser should refer to all references, accompanying

27  exhibits hereto, contract documents, and sales materials.  The

28  prospective purchaser should not rely upon oral

29  representations as being correct and should refer to this

30  document and accompanying exhibits for correct

31  representations.

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  1

  2         (2)  A summary containing all statements required to be

  3  in conspicuous type in the public offering statement and in

  4  all exhibits thereto.

  5         (3)  A separate index for the contents and exhibits of

  6  the public offering statement.

  7         (4)  A text, which shall include, where applicable, the

  8  information and disclosures set forth in paragraphs (a)-(l)

  9  below together with cross-references to the location in the

10  public offering statement of each exhibit, if applicable.

11         (a)  A description of the multisite timeshare plan,

12  including its term, legal structure, and form of ownership.

13  For multisite timeshare plans in which the purchaser will

14  receive a timeshare estate pursuant to s. 721.57 or a specific

15  timeshare license as defined in s. 721.552(4), the description

16  must also include the term of each component site within the

17  multisite timeshare plan.

18         (b)  A description of the structure and ownership of

19  the reservation system together with a disclosure of the

20  entity responsible for the operation of the reservation

21  system.  The description shall include the financial terms of

22  any lease of the reservation system, if applicable.  The

23  developer shall not be required to disclose the financial

24  terms of any such lease if such lease is prepaid in full for

25  the term of the multisite timeshare plan or to any extent that

26  neither purchasers nor the managing entity will be required to

27  make payments for the continued use of the system following

28  default by the developer or termination of the managing

29  entity.

30         (c)1.  A description of the manner in which the

31  reservation system operates.  The description shall include a

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  1  disclosure in compliance with the demand balancing standard

  2  set forth in s. 721.56(6) and shall describe the developer's

  3  efforts to comply with same in creating the reservation

  4  system. The description shall also include a summary of the

  5  rules and regulations governing access to and use of the

  6  reservation system.

  7         2.  In lieu of describing the rules and regulations of

  8  the reservation system in the public offering statement text,

  9  the developer may attach the rules and regulations as a

10  separate public offering statement exhibit, together with a

11  cross-reference in the public offering statement text to such

12  exhibit.

13         3.  For each component site for which occupancy

14  information is available, the developer shall disclose the

15  average level of occupancy calculated by category of quarter

16  or season for the calendar year including the date 2 years

17  prior to the date on which the multisite timeshare plan is

18  first offered.  Every 2 years such averages must be revised

19  and updated. In lieu of providing such information in the

20  public offering statement text, the developer may provide the

21  information in a public offering statement exhibit, together

22  with a cross-reference in the public offering statement text

23  to such exhibit.

24         (d)  The existence of and an explanation regarding any

25  priority reservation features that affect a purchaser's

26  ability to make reservations for the use of a given

27  accommodation or facility on a first come, first served basis,

28  including, if applicable, the following statement in

29  conspicuous type:

30

31

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  1         Component sites contained in the multisite timeshare

  2  plan (or multisite vacation ownership plan or multisite

  3  vacation plan or vacation club) are subject to priority

  4  reservation features which may affect your ability to obtain a

  5  reservation.

  6

  7         (e)  A summary of the material rules and regulations,

  8  if any, other than the reservation system rules and

  9  regulations, affecting the purchaser's use of each

10  accommodation and facility at each component site.

11         (f)  If the provisions of s. 721.552 and the timeshare

12  instrument permit additions, substitutions, or deletions of

13  accommodations or facilities, the public offering statement

14  must include substantially the following information:

15         1.  Additions.--

16         a.  A description of the basis upon which new

17  accommodations and facilities may be added to the multisite

18  timeshare plan; by whom additions may be made; and the

19  anticipated effect of the addition of new accommodations and

20  facilities upon the reservation system, its priorities, its

21  rules and regulations, and the availability of existing

22  accommodations and facilities.

23         b.  The developer must disclose the existence of any

24  cap on annual increases in common expenses of the multisite

25  timeshare plan that would apply in the event that additional

26  accommodations and facilities are made a part of the plan.

27         c.  The developer shall also disclose any extent to

28  which the purchasers of the multisite timeshare plan will have

29  the right to consent to any proposed additions; if the

30  purchasers do not have the right to consent, the developer

31  must include the following disclosure in conspicuous type:

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  1

  2         Accommodations and facilities may be added to this

  3  multisite timeshare plan (or multisite vacation ownership plan

  4  or multisite vacation plan or vacation club) without the

  5  consent of the purchasers.  The addition of accommodations and

  6  facilities to the plan may result in the addition of new

  7  purchasers who will compete with existing purchasers in making

  8  reservations for the use of available accommodations and

  9  facilities within the plan, and may also result in an increase

10  in the annual assessment against purchasers for common

11  expenses.

12

13         2.  Substitutions.--

14         a.  A description of the basis upon which new

15  accommodations and facilities may be substituted for existing

16  accommodations and facilities of the multisite timeshare plan;

17  by whom substitutions may be made; the basis upon which the

18  determination may be made to cause such substitutions to

19  occur; and any limitations upon the ability to cause

20  substitutions to occur.

21         b.  The developer shall also disclose any extent to

22  which purchasers will have the right to consent to any

23  proposed substitutions; if the purchasers do not have the

24  right to consent, the developer must include the following

25  disclosure in conspicuous type:

26

27         New accommodations and facilities may be substituted

28  for existing accommodations and facilities of this multisite

29  timeshare plan (or multisite vacation ownership plan or

30  multisite vacation plan or vacation club) without the consent

31  of the purchasers.  The replacement accommodations and

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  1  facilities may be located at a different place or may be of a

  2  different type or quality than the replaced accommodations and

  3  facilities.  The substitution of accommodations and facilities

  4  may also result in an increase in the annual assessment

  5  against purchasers for common expenses.

  6

  7         3.  Deletions.--A description of any provision of the

  8  timeshare instrument governing deletion of accommodations or

  9  and facilities from the multisite timeshare plan.  If the

10  timeshare instrument does not provide for business

11  interruption insurance in the event of a casualty, or if it is

12  unavailable, or if the instrument permits the developer, the

13  managing entity, or the purchasers to elect not to reconstruct

14  after casualty under certain circumstances or to secure

15  replacement accommodations or facilities in lieu of

16  reconstruction, the public offering statement must contain a

17  disclosure that during the reconstruction, replacement, or

18  acquisition period, or as a result of a decision not to

19  reconstruct, purchasers of the plan may temporarily compete

20  for available accommodations on a greater than one-to-one

21  purchaser to accommodation ratio.

22         (g)  A description of the developer and the managing

23  entity of the multisite timeshare plan, including:

24         1.  The identity of the developer; the developer's

25  business address; the number of years of experience the

26  developer has in the timeshare, hotel, motel, travel, resort,

27  or leisure industries; and a description of any pending

28  lawsuit or judgment against the developer which is material to

29  the plan.  If there are no such pending lawsuits or judgments,

30  there shall be a statement to that effect.

31

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  1         2.  The identity of the managing entity of the

  2  multisite timeshare plan; the managing entity's business

  3  address; the number of years of experience the managing entity

  4  has in the timeshare, hotel, motel, travel, resort, or leisure

  5  industries; and a description of any lawsuit or judgment

  6  against the managing entity which is material to the plan.  If

  7  there are no pending lawsuits or judgments, there shall be a

  8  statement to that effect.  The description of the managing

  9  entity shall also include a description of the relationship

10  among the managing entity of the multisite timeshare plan and

11  the various component site managing entities.

12         (h)  A description of the purchaser's liability for

13  common expenses of the multisite timeshare plan, including the

14  following:

15         1.  A description of the common expenses of the plan,

16  including the method of allocation and assessment of such

17  common expenses, whether component site common expenses and

18  real estate taxes are included within the total common expense

19  assessment of the multisite timeshare plan, and, if not, the

20  manner in which timely payment of component site common

21  expenses and real estate taxes shall be accomplished.

22         2.  A description of any cap imposed upon the level of

23  common expenses payable by the purchaser.  In no event shall

24  the total common expense assessment for the multisite

25  timeshare plan in a given calendar year exceed 125 percent of

26  the total common expense assessment for the plan in the

27  previous calendar year.

28         3.  A description of the entity responsible for the

29  determination of the common expenses of the multisite

30  timeshare plan, as well as any entity which may increase the

31

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  1  level of common expenses assessed against the purchaser at the

  2  multisite timeshare plan level.

  3         4.  A description of the method used to collect common

  4  expenses, including the entity responsible for such

  5  collections, and the lien rights of any entity for nonpayment

  6  of common expenses.  If the common expenses of any component

  7  site are collected by the managing entity of the multisite

  8  timeshare plan, a statement to that effect together with the

  9  identity and address of the escrow agent required by s.

10  721.56(3).

11         5.  If the purchaser will receive a nonspecific

12  timeshare license as defined in s. 721.552(4), a statement

13  that a multisite timeshare plan budget is attached to the

14  public offering statement as an exhibit pursuant to paragraph

15  (7)(c).  The multisite timeshare plan budget shall comply with

16  the provisions of s. 721.07(5)(u)(x).

17         6.  If the developer intends to guarantee the level of

18  assessments for the multisite timeshare plan, such guarantee

19  must be based upon a good faith estimate of the revenues and

20  expenses of the multisite timeshare plan. The guarantee must

21  include a description of the following:

22         a.  The specific time period, measured in one or more

23  calendar or fiscal years, during which the guarantee will be

24  in effect.

25         b.  A statement that the developer will pay all common

26  expenses incurred in excess of the total revenues of the

27  multisite timeshare plan, if the developer is to be excused

28  from the payment of assessments during the guarantee period.

29         c.  The level, expressed in total dollars, at which the

30  developer guarantees the assessments.  If the developer has

31

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  1  reserved the right to extend or increase the guarantee level,

  2  a disclosure must be included to that effect.

  3         7.  If As required under applicable law, the developer

  4  shall also disclose the following matters for each component

  5  site:

  6         a.  Any limitation upon annual increases in common

  7  expenses;

  8         b.  The existence of any bad debt or working capital

  9  reserve; and

10         c.  The existence of any replacement or deferred

11  maintenance reserve.

12         (i)  If there are any restrictions upon the sale,

13  transfer, conveyance, or leasing of an interest in a multisite

14  timeshare plan, a description of the restrictions together

15  with a statement in conspicuous type in substantially the

16  following form:

17

18         The sale, lease, or transfer of interests in this

19  multisite timeshare plan is restricted or controlled.

20

21         (j)  The following statement in conspicuous type in

22  substantially the following form:

23

24         The purchase of an interest in a multisite timeshare

25  plan (or multisite vacation ownership plan or multisite

26  vacation plan or vacation club) should be based upon its value

27  as a vacation experience or for spending leisure time, and not

28  considered for purposes of acquiring an appreciating

29  investment or with an expectation that the interest may be

30  resold.

31

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  1         (k)  If the multisite timeshare plan provides

  2  purchasers with the opportunity to participate in an exchange

  3  program, a description of the name and address of the exchange

  4  company and the method by which a purchaser accesses the

  5  exchange program.  In lieu of this requirement, the public

  6  offering statement text may contain a cross-reference to other

  7  provisions in the public offering statement or in an exhibit

  8  containing this information.

  9         (l)  A description of each component site, which

10  description may be disclosed in a written, graphic, tabular,

11  or other form approved by the division.  The description of

12  each component site shall include the following information:

13         1.  The name and address of each component site.

14         2.  The number of accommodations, timeshare interests,

15  and timeshare periods, expressed in periods of 7-day use

16  availability, committed to the multisite timeshare plan and

17  available for use by purchasers.

18         3.  Each type of accommodation in terms of the number

19  of bedrooms, bathrooms, sleeping capacity, and whether or not

20  the accommodation contains a full kitchen.  For purposes of

21  this description, a full kitchen shall mean a kitchen having a

22  minimum of a dishwasher, range, sink, oven, and refrigerator.

23         4.  A description of facilities available for use by

24  the purchaser at each component site, including the following:

25         a.  The intended use of the facility, if not apparent

26  from the description.

27         b.  The capacity of the facility in terms of the number

28  of people who can use it at any one time.

29         c.  If the facility is a swimming pool, a statement as

30  to whether or not the pool is heated.

31

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  1         b.d.  Any user fees associated with a purchaser's use

  2  of the facility.

  3         5.  A cross-reference to the location in the public

  4  offering statement of the description of any priority

  5  reservation features which may affect a purchaser's ability to

  6  obtain a reservation in the component site.

  7         (5)  Such other information as the division determines

  8  is necessary to fairly, meaningfully, and effectively disclose

  9  all aspects of the multisite timeshare plan, including, but

10  not limited to, any disclosures made necessary by the

11  operation of s. 721.03(8)(9).  However, if a developer has, in

12  good faith, attempted to comply with the requirements of this

13  section, and if, in fact, the developer has substantially

14  complied with the disclosure requirements of this chapter,

15  nonmaterial errors or omissions shall not be actionable.

16         (6)  Any other information that the developer, with the

17  approval of the division, desires to include in the public

18  offering statement text.

19         (7)  The following documents shall be included as

20  exhibits to the filed public offering statement filed with the

21  division, if applicable:

22         (a)  The timeshare instrument.

23         (b)  The reservation system rules and regulations.

24         (c)  The multisite timeshare plan budget pursuant to

25  subparagraph (4)(h)5.

26         (d)  Any document containing the material rules and

27  regulations described in paragraph (4)(e).

28         (e)  Any contract, agreement, or other document through

29  which component sites are affiliated with the multisite

30  timeshare plan.

31

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  1         (f)  Any escrow agreement required pursuant to s.

  2  721.08 or s. 721.56(3).

  3         (g)  The form agreement for sale or lease of an

  4  interest in the multisite timeshare plan.

  5         (h)  The form receipt for multisite timeshare plan

  6  documents required to be given to the purchaser pursuant to s.

  7  721.551(2)(b).

  8         (i)  The description of documents list required to be

  9  given to the purchaser by s. 721.551(2)(b).

10         (j)  The component site managing entity affidavit or

11  statement required by s. 721.56(1).

12         (k)  Any subordination instrument required by s.

13  721.53.

14         (l)1.  If the multisite timeshare plan contains any

15  component sites located in this state, the information

16  required by s. 721.07(5) pertaining to each such component

17  site unless exempt pursuant to s. 721.03.

18         2.  If the purchaser will receive a timeshare estate

19  pursuant to s. 721.57 or a specific timeshare license as

20  defined in s. 721.552(4) in a component site located outside

21  of this state but which is offered in this state, the

22  information required by s. 721.07(5) pertaining to that

23  component site provided, however, that the provisions of s.

24  721.07(5)(u) shall only require disclosure of information

25  related to the estimated budget for the timeshare plan and

26  purchaser's expenses as required by the jurisdiction in which

27  the component site is located.

28         (8)(a)  A timeshare plan containing only one component

29  site must be filed with the division as a multisite timeshare

30  plan if the timeshare instrument reserves the right for the

31  developer to add future component sites. However, if the

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  1  developer fails to add at least one additional component site

  2  to a timeshare plan described in this paragraph within 3 years

  3  after the date the plan is initially filed with the division,

  4  the multisite filing for such plan shall thereupon terminate,

  5  and the developer may not thereafter offer any further

  6  interests in such plan unless and until he or she refiles such

  7  plan with the division pursuant to this chapter.

  8         (b)  The public offering statement for any timeshare

  9  plan described in paragraph (a) must include the following

10  disclosure in conspicuous type:

11

12         This timeshare plan has been filed as a multisite

13  timeshare plan (or multisite vacation ownership plan or

14  multisite vacation plan or vacation club); however, this plan

15  currently contains only one component site.  The developer is

16  not required to add any additional component sites to the

17  plan. Do not purchase an interest in this plan in reliance

18  upon the addition of any other component sites.

19         Section 37.  Subsection (2) of section 721.551, Florida

20  Statutes, is amended to read:

21         721.551  Delivery of multisite timeshare plan public

22  offering statement.--

23         (2)  The developer shall furnish each purchaser with

24  the following:

25         (a)  A copy of the approved multisite timeshare plan

26  public offering statement text filed with the division

27  containing the information required by s. 721.55(1)-(6).

28         (b)  A receipt for multisite timeshare plan documents

29  and a list describing any exhibit to the filed public offering

30  statement filed with the division which is not delivered to

31  the purchaser. The division is authorized to prescribe by rule

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  1  the form of the receipt for multisite timeshare plan documents

  2  and the description of exhibits list that must be furnished to

  3  the purchaser pursuant to this section.

  4         (c)  If the purchaser will receive a timeshare estate

  5  pursuant to s. 721.57 or a specific timeshare license as

  6  defined in s. 721.552(4) in a component site located in this

  7  state, the developer shall also furnish the purchaser with the

  8  information required to be delivered pursuant to s.

  9  721.07(6)(a) and (b) for the component site in which the

10  purchaser will receive an estate or license.

11         (d)  Any other exhibit that the developer elects to

12  include as part of the purchasers public offering statement to

13  be furnished to purchasers, provided that the developer first

14  files the exhibit with the division.

15         (e)  An executed copy of any document which the

16  purchaser signs.

17         (f)  The developer shall be required to provide the

18  managing entity of the multisite timeshare plan with a copy of

19  the approved filed public offering statement text and exhibits

20  filed with the division and any approved amendments thereto to

21  be maintained by the managing entity as part of the books and

22  records of the timeshare plan pursuant to s. 721.13(3)(d).

23         Section 38.  Paragraph (a) of subsection (3) of section

24  721.552, Florida Statutes, is amended to read:

25         721.552  Additions, substitutions, or deletions of

26  component site accommodations or facilities; purchaser

27  remedies for violations.--Additions, substitutions, or

28  deletions of component site accommodations or facilities may

29  be made only in accordance with the following:

30         (3)  DELETIONS.--

31         (a)  Deletion by casualty.--

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  1         1.  Pursuant to s. 721.165, the timeshare instrument

  2  creating the multisite timeshare plan must provide for

  3  casualty insurance for the accommodations and facilities of

  4  the multisite timeshare plan in an amount equal to the

  5  replacement cost of such the accommodations or facilities.

  6  The timeshare instrument must also provide that in the event

  7  of a casualty that results in accommodations or facilities

  8  being unavailable for use by purchasers, the managing entity

  9  shall notify all affected purchasers of such unavailability of

10  use within 30 days after the event of casualty.

11         2.  The timeshare instrument must also provide for the

12  application of any insurance proceeds arising from a casualty

13  to either the replacement or acquisition of additional similar

14  accommodations or facilities or to the removal of purchasers

15  from the multisite timeshare plan so that purchasers will not

16  be competing for available accommodations on a greater than

17  one-to-one purchaser to accommodation ratio.

18         3.  If the timeshare instrument does not provide for

19  business interruption insurance, or if it is unavailable, or

20  if the instrument permits the developer, the managing entity,

21  or the purchasers to elect not to reconstruct after casualty

22  under certain circumstances or to secure replacement

23  accommodations or facilities in lieu of reconstruction,

24  purchasers of the plan may temporarily compete for available

25  accommodations on a greater than one-to-one purchaser to

26  accommodation ratio.  The decision whether or not to

27  reconstruct shall be made as promptly as possible under the

28  circumstances.

29         4.  Any replacement of accommodations or facilities

30  pursuant to this paragraph shall be made upon the same basis

31

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  1  as required for substitution as set forth in subparagraph

  2  (2)(b)2.

  3         Section 39.  Subsection (2) and paragraphs (a) and (c)

  4  of subsection (5) of section 721.56, Florida Statutes, are

  5  amended to read:

  6         721.56  Management of multisite timeshare plans;

  7  reservation systems; demand balancing.--

  8         (2)  In the event that the developer files an affidavit

  9  or other evidence with the division pursuant to subsection (1)

10  and subsequently determines that the status of the component

11  site has materially changed such that any portion of the

12  affidavit or other evidence is consequently materially

13  changed, the developer shall immediately notify the division

14  of the change. In any event, the affidavit required by

15  subsection (1) shall be renewed at least annually.

16         (5)(a)1.  The reservation system is a facility of any

17  nonspecific timeshare license multisite timeshare plan as

18  defined in s. 721.552(4).  The reservation system is not a

19  facility of any specific timeshare license multisite timeshare

20  plan as defined in s. 721.552(4), nor is it a facility of any

21  multisite timeshare plan in which timeshare estates are

22  offered pursuant to s. 721.57.

23         2.  The reservation system of any multisite timeshare

24  plan shall include any computer software and hardware employed

25  for the purpose of enabling or facilitating the operation of

26  the reservation system. Nothing contained in this part shall

27  preclude a manager or management firm company that is serving

28  as managing entity of a multisite timeshare plan from

29  providing in its contract with the purchasers or owners'

30  association of the multisite timeshare plan or in the

31  timeshare instrument that the manager or management firm

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    12-663A-00                                              See HB




  1  company owns the reservation system and that the managing

  2  entity shall continue to own the reservation system in the

  3  event the purchasers discharge the managing entity pursuant to

  4  s. 721.14.

  5         (c)  In the event of a termination of a managing entity

  6  of a timeshare estate or specific license multisite timeshare

  7  plan as defined in s. 721.552(4), which managing entity owns

  8  the reservation system, irrespective of whether the

  9  termination is voluntary or involuntary and irrespective of

10  the cause of such termination, in addition to any other

11  remedies available to purchasers in this part, the terminated

12  managing entity shall, prior to such termination, promptly

13  transfer to each component site managing entity all relevant

14  data contained in the reservation system with respect to that

15  component site, including, but not limited to:

16         1.  The names, addresses, and reservation status of

17  component site accommodations.

18         2.  The names and addresses of all purchasers of

19  timeshare interests periods at that component site.

20         3.  All outstanding confirmed reservations and

21  reservation requests for that component site.

22         4.  Such other component site records and information

23  as are necessary, in the reasonable discretion of the

24  component site managing entity, to permit the uninterrupted

25  operation and administration of the component site, provided

26  that a given component site managing entity shall not be

27  entitled to any information regarding other component sites or

28  regarding the terminated multisite timeshare plan managing

29  entity.

30

31

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  1  All reasonable costs incurred by the terminated managing

  2  entity in effecting the transfer of information required by

  3  this paragraph shall be reimbursed to the terminated managing

  4  entity on a pro rata basis by each component site, and the

  5  amount of such reimbursement shall constitute a common expense

  6  of each component site.

  7         Section 40.  Section 721.58, Florida Statutes, is

  8  amended to read:

  9         721.58  Filing fee; annual fee.--

10         (1)  The developer of the multisite timeshare plan

11  shall pay the filing fee required by s. 721.07(4)(a); however,

12  the maximum amount of such filing fee shall be $25,000 or the

13  total filing fee due with respect to the timeshare units in

14  the multisite timeshare plan that are located in this state

15  pursuant to s. 721.07(4)(a), whichever is greater.

16         (2)  The managing entity of the multisite timeshare

17  plan shall pay the annual fee required by s. 721.27; provided,

18  however, that the maximum amount of such annual fee shall be

19  $25,000 or the total annual fee due with respect to the

20  timeshare units in the multisite timeshare plan that are

21  located in this state calculated pursuant to s. 721.07(4)(a),

22  whichever is greater.

23         Section 41.  Subsection (3) of section 721.81, Florida

24  Statutes, is amended to read:

25         721.81  Legislative purpose.--The purposes of this part

26  are to:

27         (3)  Recognize the need to assist vacation ownership

28  resort owners' associations and mortgagees by simplifying and

29  expediting the process of foreclosure of assessment liens and

30  mortgage liens against timeshare estates.

31

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  1         Section 42.  Subsection (1) of section 721.82, Florida

  2  Statutes, is amended to read:

  3         721.82  Definitions.--As used in this part, the term:

  4         (1)  "Assessment lien" means:

  5         (a)  A lien for delinquent assessments as provided in

  6  ss. 721.16, and 718.116, and 719.108 as to timeshare

  7  condominiums; or

  8         (b)  A lien for unpaid taxes and special assessments as

  9  provided in s. 192.037(8).

10         Section 43.  Subsection (5) of section 721.84, Florida

11  Statutes, is amended to read:

12         721.84  Appointment of a registered agent; duties.--

13         (5)  A registered agent may resign his or her agency

14  appointment for any obligor for which he or she serves as

15  registered agent, provided that:

16         (a)  The resigning registered agent executes a written

17  statement of resignation that identifies himself or herself

18  and the street address of his or her registered office, and

19  identifies the obligors affected by his or her resignation;

20         (b)  A successor registered agent is appointed and such

21  successor registered agent executes an acceptance of

22  appointment as successor registered agent and satisfies all of

23  the requirements of subsection (1). The resigning registered

24  agent may designate the successor registered agent; however,

25  if the resigning registered agent fails to designate a

26  successor registered agent or the designated successor

27  registered agent fails to accept, the successor registered

28  agent for the affected obligors may be designated by the

29  mortgagee as to the mortgage lien and by the owners'

30  association of the timeshare plan as to the assessment lien;

31  and

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  1         (c)  Copies of the statement of resignation and

  2  acceptance of appointment as successor registered agent are

  3  promptly mailed to the affected obligors at the obligors' last

  4  designated address shown on the records of the resigning

  5  registered agent and to the affected lienholders. The agency

  6  and registered office of the resigning registered agent are

  7  terminated and the agency and registered office of the

  8  successor registered agent are effective as of the 10th day

  9  after the date on which the statement of resignation and

10  acceptance of appointment as successor registered agent are

11  received by the lienholder, unless a longer period is provided

12  in the statement of resignation and acceptance of appointment

13  as successor registered agent.

14         Section 44.  Subsection (2) of section 721.85, Florida

15  Statutes, is amended to read:

16         721.85  Service to notice address or on registered

17  agent.--

18         (2)  The current owner and the mortgagor of a timeshare

19  estate must promptly notify the owners' association of the

20  timeshare plan and the mortgagee of any change of address.

21         Section 45.  Subsection (1) of section 721.86, Florida

22  Statutes, is amended to read:

23         721.86  Miscellaneous provisions.--

24         (1)  The procedures in this part must be given effect

25  in the context of any foreclosure proceedings against

26  timeshare estates governed by this chapter, chapter 702, or

27  chapter 718, or chapter 719.

28         Section 46.  Subsection (22) of section 718.103,

29  Florida Statutes, is amended to read:

30         718.103  Definitions.--As used in this chapter, the

31  term:

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  1         (22)  "Residential condominium" means a condominium

  2  consisting of condominium units, any of which are intended for

  3  use as a private temporary or permanent residence, except that

  4  a condominium is not a residential condominium if the use for

  5  which the units are intended is primarily commercial or

  6  industrial and not more than three units are intended to be

  7  used for private residence, and are intended to be used as

  8  housing for maintenance, managerial, janitorial, or other

  9  operational staff of the condominium. With respect to a

10  condominium that is not a timeshare condominium, a residential

11  unit includes a unit intended as a private temporary or

12  permanent residence as well as a unit not intended for

13  commercial or industrial use. With respect to a timeshare

14  condominium, the timeshare instrument as defined in s.

15  721.05(33)(30) shall govern the intended use of each unit in

16  the condominium. If a condominium is a residential condominium

17  but contains units intended to be used for commercial or

18  industrial purposes, then, with respect to those units which

19  are not intended for or used as private residences, the

20  condominium is not a residential condominium.  A condominium

21  which contains both commercial and residential units is a

22  mixed-use condominium subject to the requirements of s.

23  718.404.

24         Section 47.  If any provision of this act or the

25  application thereof to any person or circumstance is held

26  invalid, the invalidity does not affect other provisions or

27  applications of the act which can be given effect without the

28  invalid provision or application, and to this end the

29  provisions of this act are declared severable.

30         Section 48.  This act shall take effect upon becoming a

31  law; however, all documents filed and approved in accordance

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  1  with chapter 721, Florida Statutes, prior to the effective

  2  date of this act, or any amendments to such documents made

  3  subsequent to the date this act becomes a law that are

  4  otherwise in compliance with that chapter prior to the

  5  effective date of this act, shall be deemed to be in

  6  compliance with the filing requirements of this act.

  7

  8            *****************************************

  9                       LEGISLATIVE SUMMARY

10
      Revises certain provisions governing timeshare
11    cooperatives in ch. 719, F.S., to conform to similar
      provisions governing timeshare condominiums in ch. 718,
12    F.S. Generally revises the provisions of the Florida
      Vacation Plan and Timesharing Act, which includes the
13    McAllister Act, the Timeshare Lien Foreclosure Act, and
      provisions relating to commissioners of deeds. Provides
14    consistent language throughout ch. 721, F.S. (See bill
      for details.)
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