HB 1243 2003
1	A bill to be entitled
2	An act relating to timeshare plans; amending s. 721.02,
3	F.S.; revising language with respect to legislative
4	purpose under the Florida Vacation Plan and Timesharing
5	Act; amending s. 721.03, F.S.; revising language with
6	respect to the scope of the act to include reference to
7	personal property timeshare plans; amending s. 721.05,
8	F.S.; providing definitions; amending s. 721.06, F.S.;
9	revising language with respect to contracts for purchase
10	of timeshare interests to include provisions with respect
11	to personal property timeshare interests; amending s.
12	721.065, F.S.; revising language with respect to resale
13	purchase agreements to include reference to certain real
14	property and personal property timeshare plans; amending
15	s. 721.07, F.S.; revising language with respect to public
16	offering statements; amending s. 721.075, F.S.; revising
17	language with respect to incidental benefits, requiring
18	purchasers to execute a statement indicating the source of
19	the benefit; amending s. 721.08, F.S.; revising language
20	with respect to escrow accounts; amending s. 721.09, F.S.;
21	revising language with respect to reservation agreements;
22	amending s. 721.11, F.S.; revising language with respect
23	to advertising materials; correcting cross references;
24	amending s. 721.12, F.S.; providing for required
25	recordkeeping by the seller of a personal property
26	timeshare plan; amending s. 721.13, F.S.; revising
27	language with respect to management; amending s. 721.14,
28	F.S.; providing that a section of law governing the
29	discharge of the managing entity shall not apply with
30	respect to personal property timeshare plans; amending s.
31	721.15, F.S.; revising language with respect to
32	assessments for common expenses; amending s. 721.16, F.S.;
33	providing that a section of law governing certain liens
34	does not apply to personal property timeshare plans;
35	amending s. 721.17, F.S.; revising language with respect
36	to transfer of interest; amending s. 721.18, F.S.;
37	revising language with respect to exchange programs;
38	amending s. 721.19, F.S.; including reference to personal
39	property timeshare interests; amending s. 721.20, F.S.,
40	relating to licensing requirements; providing for the
41	application of certain provisions to personal property
42	timeshare plans; amending s. 721.24, F.S.; exempting
43	accommodations and facilities of personal property
44	timeshare plans from a provision of law governing
45	firesafety; amending s. 721.26, F.S.; revising language
46	with respect to regulation by the division; amending s.
47	721.27, F.S.; reducing an annual fee for each timeshare
48	unit in a timeshare plan; amending s. 721.52, F.S.;
49	redefining the term "multisite timeshare plan" and
50	defining the terms "nonspecific multisite timeshare plan"
51	and "specific multisite timeshare plan"; amending s.
52	721.53, F.S.; revising language with respect to
53	subordination instruments; amending s. 721.54, F.S.;
54	deleting a cross reference; amending s. 721.55, F.S.;
55	providing reference to filed rather than registered public
56	offering statements; providing reference to multisite
57	timeshare plans; amending s. 721.551, F.S.; providing for
58	reference to filed rather than registered public offering
59	statements; amending s. 721.552, F.S.; providing reference
60	to multistate timeshare plans; amending s. 721.56, F.S.;
61	providing reference to personal property timeshare plans;
62	amending s. 721.57, F.S.; revising language with respect
63	to timeshare estates in multisite timeshare plans;
64	amending s. 721.84, F.S.; revising language with respect
65	to appointment of a registered agent; amending ss. 721.96
66	and 721.97, F.S.; including reference to personal property
67	timeshare interests; providing an effective date.
68
69	Be It Enacted by the Legislature of the State of Florida:
70
71	Section 1. Subsections (1) and (5) of section 721.02,
72	Florida Statutes, are amended to read:
73	721.02 Purposes.--The purposes of this chapter are to:
74	(1) Give statutory recognition to real property timeshare
75	planstimesharing and personal property timeshare plans
76	timesharing in this thestate.
77	(5) Recognize that the tourism industry in this state is a
78	vital part of the state's economy; that the sale, promotion, and
79	use of timeshare plans is an emerging, dynamic segment of the
80	tourism industry; that this segment of the tourism industry
81	continues to grow, both in volume of sales and in complexity and
82	variety of product structure; and that a uniform and consistent
83	method of regulation is necessary in order to safeguard
84	Florida's tourism industry and the state's economic well-being.
85	In order to protect the quality of Florida timeshare plans and
86	the consumers who purchase them, it is the intent of the
87	Legislature that this chapter be interpreted broadly in order to
88	encompass all forms of timeshare plans with a duration of at
89	least 3 years that are created with respect to accommodations
90	and facilities that are located in the state or that are offered
91	for sale in the state as provided herein, including, but not
92	limited to, condominiums, cooperatives, undivided interest
93	campgrounds, cruise ships, vessels, houseboats, recreational
94	vehicles and other motor vehicles,vacation clubs, multisite
95	vacation plans, and multiyear vacation and lodging certificates.
96
97	Section 2. Paragraph (d) is added to subsection (1) of
98	section 721.03, Florida Statutes, and subsection (8) of said
99	section, is amended to read:
100	721.03 Scope of chapter.--
101	(1) This chapter applies to all timeshare plans consisting
102	of more than seven timeshare periods over a period of at least 3
103	years in which the accommodations and facilities, if any, are
104	located within this state or offered within this state; provided
105	that:
106	(d) For purposes of determining the term of the plan, the
107	period of any automatic renewals shall be included, except as
108	provided in s. 721.52(4)(b).
109	(8) With respect to any personal propertyaccommodation or
110	facility of a timeshare plan: which is situated upon
111	(a) This chapter applies only to personal property
112	timeshare plans that are offered in this state.,
113	(b)The division shall have the authority to adopt rules
114	interpreting and implementing the provisions of this chapter as
115	they apply to any personal property timeshare plan or anysuch
116	accommodation or facility that is part of a personal property
117	timeshare plan offered in this state, or as the provisions of
118	this chaptertheyapply to any other laws of this state, of the
119	several states, or of the United States, or of any other
120	jurisdiction with respect to any personal property timeshare
121	plan or anysuch accommodation or facility that is part of a
122	personal property timeshare plan offered in this state.
123	(c) Any developer and any managing entity of a personal
124	property timeshare plan must submit to personal jurisdiction in
125	this state in a form satisfactory to the division at the time of
126	filing a public offering statement.
127	Section 3. Section 721.05, Florida Statutes, is amended to
128	read:
129	721.05 Definitions.--As used in this chapter, the term:
130	(1) "Accommodation" means any apartment,condominium or
131	cooperative unit, cabin, lodge, hotel or motel room, campground,
132	cruise ship cabin, houseboat or other vessel, recreational or
133	other motor vehicle, or anyor otherprivate or commercial
134	structure which is situated on real or personal property and is
135	designed for overnight occupancy or useby one or more
136	individuals. The term does not include an incidental benefit as
137	defined in this section.
138	(2) "Agreement for deed" means any written contract
139	utilized in the sale of timeshare estates which provides that
140	legal title will not be conveyed to the purchaser until the
141	contract price has been paid in full and the terms of payment of
142	which extend for a period in excess of 180 days after either the
143	date of execution of the contract or completion of construction,
144	whichever occurs later.
145	(3) “Agreement for transfer” means any written contract
146	utilized in the sale of personal property timeshare interests
147	which provides that legal title will not be transferred to the
148	purchaser until the contract price has been paid in full and the
149	terms of payment of which extend for a period in excess of 180
150	days after either the date of execution of the contract or
151	completion of construction, whichever occurs later.
152	(4)(3)"Assessment" means the share of funds required for
153	the payment of common expenses which is assessed from time to
154	time against each purchaser by the managing entity.
155	(5)(4)"Closing" means:
156	(a) For any plan selling timeshare estates, conveyance of
157	the legal or beneficial title to a timeshare estate as evidenced
158	by the delivery of a deed for conveyance of legal title, or
159	other instrument for conveyance of beneficial title, to the
160	purchaser or to the clerk of the court for recording or
161	conveyance of the equitable title to a timeshare estate as
162	evidenced by the irretrievable delivery of an agreement for deed
163	to the clerk of the court for recording.
164	(b) For any plan selling timeshare licenses, the final
165	execution and delivery by all parties of the last document
166	necessary for vesting in the purchaser the full rights available
167	under the plan.
168	(6)(5)"Common expenses" means:
169	(a) Those expenses, fees, or taxesproperly incurred for
170	the maintenance, operation, and repair of the accommodations or
171	facilities, or both, constituting the timeshare plan.
172	(b) Any other expenses, fees, or taxesdesignated as
173	common expenses in a timeshare instrument.
174	(c) Any past due and uncollected ad valorem taxes assessed
175	against a timeshare development pursuant to s. 192.037.
176	(7)(6)"Completion of construction" means:
177	(a)1. That a certificate of occupancy has been issued for
178	the entire building in which the timeshare unit being sold is
179	located, or for the improvement, or that the equivalent
180	authorization has been issued, by the governmental body having
181	jurisdiction; or
182	2. In a jurisdiction in which no certificate of occupancy
183	or equivalent authorization is issued, that the construction,
184	finishing, and equipping of the building or improvements
185	according to the plans and specifications have been
186	substantially completed; or
187	3. With respect to personal property timeshare plans, that
188	all accommodations have been manufactured or built and acquired
189	or leased by the developer, owners’ association, managing
190	entity, trustee, or other person for the use of purchasers as
191	set forth in the timeshare instrument;and
192	(b) That all accommodations and facilities of the
193	timeshare plan are available for use in a manner identical in
194	all material respects to the manner portrayed by the promotional
195	material, advertising, and registered public offering
196	statements.
197	(8)(7)"Conspicuous type" means:
198	(a) Type in upper and lower case letters two point sizes
199	larger than the largest nonconspicuous type, exclusive of
200	headings, on the page on which it appears but in at least 10-
201	point type; or
202	(b) Where the use of 10-point type would be impractical or
203	impossible with respect to a particular piece of written
204	advertising material, a different style of type or print may be
205	used, so long as the print remains conspicuous under the
206	circumstances.
207
208	Where conspicuous type is required, it must be separated on all
209	sides from other type and print. Conspicuous type may be
210	utilized in contracts for purchase or public offering statements
211	only where required by law or as authorized by the division.
212	(9)(8)"Contract" means any agreement conferring the
213	rights and obligations of a timeshare plan on the purchaser.
214	(10)(9)"Developer" includes:
215	(a) A "creating developer," which means any person who
216	creates the timeshare plan;
217	(b) A "successor developer," which means any person who
218	succeeds to the interest of the persons in this subsection by
219	sale, lease, assignment, mortgage, or other transfer, but the
220	term includes only those persons who offer timeshare interests
221	in the ordinary course of business; and
222	(c) A "concurrent developer," which means any person
223	acting concurrently with the persons in this subsection with the
224	purpose of offering timeshare interests in the ordinary course
225	of business.
226	(d) The term "developer" does not include:
227	1. An owner of a timeshare interest who has acquired the
228	timeshare interest for his or her own use and occupancy and who
229	later offers it for resale; provided that a rebuttable
230	presumption shall exist that an owner who has acquired more than
231	seven timeshare interests did not acquire them for his or her
232	own use and occupancy;
233	2. A managing entity, not otherwise a developer, that
234	offers, or engages a third party to offer on its behalf,
235	timeshare interests in a timeshare plan which it manages,
236	provided that such offer complies with the provisions of s.
237	721.065;
238	3. A person who owns or is conveyed, assigned, or
239	transferred more than seven timeshare interests and who
240	subsequently conveys, assigns, or transfers all acquired
241	timeshare interests to a single purchaser in a single
242	transaction, which transaction may occur in stages; or
243	4. A person who has acquired or has the right to acquire
244	more than seven timeshare interests from a developer or other
245	interestholder in connection with a loan, securitization,
246	conduit, or similar financing arrangement transaction and who
247	subsequently arranges for all or a portion of the timeshare
248	interests to be offered by one or more developers in the
249	ordinary course of business on their own behalves or on behalf
250	of such person.
251	(e) A successor or concurrent developer shall be exempt
252	from any liability inuring to a predecessor or concurrent
253	developer of the same timeshare plan, except as provided in s.
254	721.15(7), provided that this exemption shall not apply to any
255	of the successor or concurrent developer's responsibilities,
256	duties, or liabilities with respect to the timeshare plan that
257	accrue after the date the successor or concurrent developer
258	became a successor or concurrent developer, and provided that
259	such transfer does not constitute a fraudulent transfer. In
260	addition to other provisions of law, a transfer by a predecessor
261	developer to a successor or concurrent developer shall be deemed
262	fraudulent if the predecessor developer made the transfer:
263	1. With actual intent to hinder, delay, or defraud any
264	purchaser or the division; or
265	2. To a person that would constitute an insider under s.
266	726.102(7).
267
268	The provisions of this paragraph shall not be construed to
269	relieve any successor or concurrent developer from the
270	obligation to comply with the provisions of any applicable
271	timeshare instrument.
272	(11)(10)"Division" means the Division of Florida Land
273	Sales, Condominiums, and Mobile Homes of the Department of
274	Business and Professional Regulation.
275	(12)(11)"Enrolled" means paid membership in an exchange
276	program or membership in an exchange program evidenced by
277	written acceptance or confirmation of membership.
278	(13)(12)"Escrow account" means an account established
279	solely for the purposes set forth in this chapter with a
280	financial institution located within this state.
281	(14)(13)"Escrow agent" includes only:
282	(a) A savings and loan association, bank, trust company,
283	or other financial institution, any of which must be located in
284	this state and any of which must have a net worth in excess of
285	$5 million;
286	(b) An attorney who is a member of The Florida Bar or his
287	or her law firm;
288	(c) A real estate broker who is licensed pursuant to
289	chapter 475 or his or her brokerage firm; or
290	(d) A title insurance agent that is licensed pursuant to
291	s. 626.8417, a title insurance agency that is licensed pursuant
292	to s. 626.8418, or a title insurer authorized to transact
293	business in this state pursuant to s. 624.401.
294	(15)(14)"Exchange company" means any person owning or
295	operating, or owning and operating, an exchange program.
296	(16)(15)"Exchange program" means any method, arrangement,
297	or procedure for the voluntary exchange of the right to use and
298	occupy accommodations and facilities among purchasers. The term
299	does not include the assignment of the right to use and occupy
300	accommodations and facilities to purchasers pursuant to a
301	particular multisite timeshare plan's reservation system. Any
302	method, arrangement, or procedure that otherwise meets this
303	definition, wherein the purchaser's total contractual financial
304	obligation exceeds $3,000 per any individual, recurring
305	timeshare period, shall be regulated as a multisite timeshare
306	plan in accordance with part II.
307	(17)(16)"Facility" means any amenity, including any
308	structure, furnishing, fixture, equipment, service, improvement,
309	or real or personal property, improved or unimproved, other than
310	the accommodation of the timeshare plan, which is made available
311	to the purchasers of a timeshare plan. The term does not include
312	an incidental benefit as defined in this section.
313	(18) "Filed public offering statement" means a public
314	offering statement that has been filed with the division
315	pursuant to s. 721.07(5) or s. 721.55.
316	(19)(17)"Incidental benefit" means an accommodation,
317	product, service, discount, or other benefit which is offered to
318	a prospective purchaser of a timeshare plan or to a purchaser of
319	a timeshare plan prior to the expiration of his or her initial
320	10-day voidability period pursuant to s. 721.10; which is not an
321	exchange program as defined in subsection (15); and which
322	complies with the provisions of s. 721.075. The term shall not
323	include an offer of the use of the accommodations and facilities
324	of the timeshare plan on a free or discounted one-time basis.
325	(20)(18)"Independent," for purposes of determining
326	eligibility of escrow agents and trustees pursuant to s.
327	721.03(7), means that:
328	(a) The escrow agent or trustee is not a relative, as
329	described in s. 112.3135(1)(d), or an employee of the developer,
330	seller, or managing entity, or of any officer, director,
331	affiliate, or subsidiary thereof.
332	(b) There is no financial relationship, other than the
333	payment of fiduciary fees or as otherwise provided in this
334	subsection, between the escrow agent or trustee and the
335	developer, seller, or managing entity, or any officer, director,
336	affiliate, or subsidiary thereof.
337	(c) Compensation paid by the developer to an escrow agent
338	or trustee for services rendered shall not be paid from funds in
339	the escrow or trust account unless and until the developer is
340	otherwise entitled to receive the disbursement of such funds
341	from the escrow or trust account pursuant to this chapter.
342	(d) A person shall not be disqualified to serve as an
343	escrow agent or a trustee solely because of the following:
344	1. A nonemployee, attorney-client relationship exists
345	between the developer and the escrow agent or trustee;
346	2. The escrow agent or trustee provides brokerage services
347	as defined by chapter 475 for the developer;
348	3. The escrow agent or trustee provides the developer with
349	routine banking services which do not include construction or
350	receivables financing or any other lending activities; or
351	4. The escrow agent or trustee performs closings for the
352	developer or seller or issues owner's or lender's title
353	insurance commitments or policies in connection with such
354	closings.
355	(21)(19)"Interestholder" means a developer, an owner of
356	the underlying fee or owner of the underlying property, a
357	mortgagee, judgment creditor, or other lienor, or any other
358	person having an interest in or lien or encumbrance against the
359	accommodations or facilities of the timeshare plan.
360	(22)(20)"Managing entity" means the person who operates
361	or maintains the timeshare plan pursuant to s. 721.13(1).
362	(23)(21)"Memorandum of agreement" means a written
363	document, in arecordable form sufficient to permit the document
364	to be recorded or otherwise filed in the appropriate public
365	records and to provide constructive notice of its contents under
366	applicable law, which includes the names of the seller and the
367	purchasers, a legal description of the timeshare property, or
368	other sufficient description for a personal property timeshare
369	plan, and all timeshare interests to be included in such
370	document, and a description of the type of timeshare license
371	sold by the seller.
372	(24)(22)"Offer to sell," "offer for sale," "offered for
373	sale," or "offer" means the solicitation, advertisement, or
374	inducement, or any other method or attempt, to encourage any
375	person to acquire the opportunity to participate in a timeshare
376	plan.
377	(25)(23)"One-to-one purchaser to accommodation ratio"
378	means the ratio of the number of purchasers eligible to use the
379	accommodations of a timeshare plan on a given day to the number
380	of accommodations available for use within the plan on that day,
381	such that the total number of purchasers eligible to use the
382	accommodations of the timeshare plan during a given calendar
383	year never exceeds the total number of accommodations available
384	for use in the timeshare plan during that year. For purposes of
385	calculation under this subsection, each purchaser must be
386	counted at least once, and no individual timeshare unit may be
387	counted more than 365 times per calendar year (or more than 366
388	times per leap year). A purchaser who is delinquent in the
389	payment of timeshare plan assessments shall continue to be
390	considered eligible to use the accommodations of the timeshare
391	plan for purposes of this subsection notwithstanding any
392	application of s. 721.13(6).
393	(26)(24) "Owner of the underlying fee" or "owner of the
394	underlying personal property"means any person having an
395	interest in the real property or personal property comprising or
396	underlying the accommodations or facilities of athetimeshare
397	plan at or subsequent to the time of creation of the timeshare
398	plan.
399	(27)(25) "Owners' association" means antheassociation
400	made up of all owners of timeshare interests in a timeshare
401	plan, including developers and purchasers of suchatimeshare
402	plan who have purchased timeshare estates.
403	(28) "Personal property timeshare interest" means a right
404	to occupy an accommodation located on or in or comprised of
405	personal property that is not permanently affixed to real
406	property, whether or not coupled with a beneficial or ownership
407	interest in the accommodations or personal property.
408	(29)(26)"Public offering statement" means the written
409	materials describing a single-site timeshare plan or a multisite
410	timeshare plan, including a text and any exhibits attached
411	thereto as required by ss. 721.07, 721.55, and 721.551. The term
412	"public offering statement" shall refer to both a filed
413	registeredpublic offering statement and a purchaser public
414	offering statement.
415	(30)(27)"Purchaser" means any person, other than a
416	developer, who by means of a voluntary transfer acquires a legal
417	or equitable interest in a timeshare plan other than as security
418	for an obligation.
419	(31)(28)"Purchaser public offering statement" means that
420	portion of the filedregisteredpublic offering statement which
421	must be delivered to purchasers pursuant to s. 721.07(6) or s.
422	721.551.
423	(29) "Registered public offering statement" means a public
424	offering statement which has been filed with the division
425	pursuant to s. 721.07(5) or s. 721.55.
426	(32)(30)"Regulated short-term product" means a
427	contractual right, offered by the seller, to use accommodations
428	of a timeshare plan or other accommodations, provided that:
429	(a) The agreement to purchase the short-term right to use
430	is executed in this state on the same day that the prospective
431	purchaser receives an offer to acquire an interest in a
432	timeshare plan and does not execute a purchase contract, after
433	attending a sales presentation; and
434	(b) The acquisition of the right to use includes an
435	agreement that all or a portion of the consideration paid by the
436	prospective purchaser for the right to use will be applied to or
437	credited against the price of a future purchase of a timeshare
438	interest, or that the cost of a future purchase of a timeshare
439	interest will be fixed or locked in at a specified price.
440	(33)(31)"Seller" means any developer or any other person,
441	or any agent or employee thereof, who offers timeshare interests
442	in the ordinary course of business. The term "seller" does not
443	include:
444	(a) An owner of a timeshare interest who has acquired the
445	timeshare interest for his or her own use and occupancy and who
446	later offers it for resale; provided that a rebuttable
447	presumption shall exist that an owner who has acquired more than
448	seven timeshare interests did not acquire them for his or her
449	own use and occupancy;
450	(b) A managing entity, not otherwise a seller, that
451	offers, or engages a third party to offer on its behalf,
452	timeshare interests in a timeshare plan which it manages,
453	provided that such offer complies with the provisions of s.
454	721.065;
455	(c) A person who owns or is conveyed, assigned, or
456	transferred more than seven timeshare interests and who
457	subsequently conveys, assigns, or transfers all acquired
458	timeshare interests to a single purchaser in a single
459	transaction, which transaction may occur in stages; or
460	(d) A person who has acquired or has the right to acquire
461	more than seven timeshare interests from a developer or other
462	interestholder in connection with a loan, securitization,
463	conduit, or similar financing arrangement and who subsequently
464	arranges for all or a portion of the timeshare interests to be
465	offered by one or more developers in the ordinary course of
466	business on their own behalves or on behalf of such person.
467	(34)(32)"Timeshare estate" means a right to occupy a
468	timeshare unit, coupled with a freehold estate or an estate for
469	years with a future interest in a timeshare property or a
470	specified portion thereof. The term shall also mean an interest
471	in a condominium unit pursuant to s. 718.103, an interest in a
472	cooperative unit pursuant to s. 719.103, or an interest in a
473	trust that complies in all respects with the provisions of s.
474	721.08(2)(c)4., provided that the trust does not contain any
475	personal property timeshare interests. A timeshare estate is a
476	parcel of real property under the laws of this state 3.
477	(35)(33)"Timeshare instrument" means one or more
478	documents, by whatever name denominated, creating or governing
479	the operation of a timeshare plan.
480	(36)(34) "Timeshare interest" means a timeshare estate, a
481	personal property timeshare interest, or atimeshare license.
482	(37)(35)"Timeshare license" means a right to occupy a
483	timeshare unit, which right is not a personal property timeshare
484	neither coupled with a freehold interest or a timeshare, nor
485	coupled with an estate for years with a future interest, in a
486	timeshare property.
487	(38)(36)"Timeshare period" means the period or periods of
488	time when a purchaser of a timeshare interest is afforded the
489	opportunity to use the accommodations or facilities, or both,of
490	a timeshare plan.
491	(39)(37)"Timeshare plan" means any arrangement, plan,
492	scheme, or similar device, other than an exchange program,
493	whether by membership, agreement, tenancy in common, sale,
494	lease, deed, rental agreement, license, or right-to-use
495	agreement or by any other means, whereby a purchaser, for
496	consideration, receives ownership rights in or a right to use
497	accommodations, and facilities, if any, for a period of time
498	less than a full year during any given year, but not necessarily
499	for consecutive years. The term “timeshare plan” includes:
500	(a) A “personal property timeshare plan,” which means a
501	timeshare plan in which the accommodations are comprised of
502	personal property that is not permanently affixed to real
503	property; and
504	(b) A “real property timeshare plan,” which means a
505	timeshare plan in which the accommodations of the timeshare plan
506	are comprised of or permanently affixed to real property.
507	(40)(38)"Timeshare property" means one or more timeshare
508	units subject to the same timeshare instrument, together with
509	any other property or rights to property appurtenant to those
510	timeshare units. Notwithstanding anything to the contrary
511	contained in chapter 718 or chapter 719, the timeshare
512	instrument for a timeshare condominium or cooperative may
513	designate personal property, contractual rights, affiliation
514	agreements of component sites of vacation clubs, exchange
515	companies, or reservation systems, or any other agreements or
516	personal property, as common elements or limited common elements
517	of the timeshare condominium or cooperative.
518	(41)(39)"Timeshare unit" means an accommodation of a
519	timeshare plan which is divided into timeshare periods. Any
520	timeshare unit in which a door or doors connecting two or more
521	separate rooms are capable of being locked to create two or more
522	private dwellings shall only constitute one timeshare unit for
523	purposes of this chapter, unless the timeshare instrument
524	provides that timeshare interests may be separately conveyed in
525	such locked-off portions.
526	(40) "Vacation ownership plan" means any timeshare plan
527	consisting exclusively of timeshare estates.
528	(41) "Vacation plan" or "vacation membership plan" means
529	any timeshare plan consisting exclusively of timeshare licenses
530	or consisting of a combination of timeshare licenses and
531	timeshare estates.
532	Section 4. Section 721.06, Florida Statutes, is amended to
533	read:
534	721.06 Contracts for purchase of timeshare interests.--
535	(1) Each seller shall utilize and furnish each purchaser a
536	fully completed and executed copy of a contract pertaining to
537	the sale, which contract shall include the following
538	information:
539	(a) The actual date the contract is executed by each
540	party.
541	(b) The names and addresses of the developer and the
542	timeshare plan.
543	(c) The initial purchase price and any additional charges
544	to which the purchaser may be subject in connection with the
545	purchase of the timeshare interest, such as financing, or which
546	will be collected from the purchaser on or before closing, such
547	as the current year's annual assessment for common expenses.
548	(d)1. For real property timeshare plans, an estimate of
549	any anticipated annual assessment stated on an Anyannually
550	recurring basis for any use charges, fees, charge and the next
551	year's estimated annual assessment for common expenses, orand
552	for ad valorem taxes or, if an estimate for next year's
553	assessmentis unavailable, the current year's actual annual
554	assessment for any use charges, fees, common expenses, orand
555	forad valorem taxes.
556	2. For personal property timeshare plans, an estimate of
557	any anticipated annual assessment stated on an annually
558	recurring basis for any use charges, fees, common expenses, or
559	taxes or, if an estimate is unavailable, the current year's
560	actual annual assessment for any use charges, fees, common
561	expenses or taxes.
562	(e) The estimated date of completion of construction of
563	each accommodation or facility promised to be completed which is
564	not completed at the time the contract is executed and the
565	estimated date of closing.
566	(f) A brief description of the nature and duration of the
567	timeshare interest being sold, including whether any interest in
568	real property or personal propertyis being conveyed and the
569	specific number of years constituting the term of the timeshare
570	plan.
571	(g) Immediately prior to the space reserved in the
572	contract for the signature of the purchaser, in conspicuous
573	type, substantially the following statements:
574	1. If the purchaser will receive a personal property
575	timeshare interest: This personal property timeshare plan is
576	governed only by limited sections of the timeshare management
577	provisions of Florida law.
578	2.You may cancel this contract without any penalty or
579	obligation within 10 calendar days after the date you sign this
580	contract or the date on which you receive the last of all
581	documents required to be given to you pursuant to s. 721.07(6),
582	Florida Statutes. If you decide to cancel this contract, you
583	must notify the seller in writing of your intent to cancel. Your
584	notice of cancellation shall be effective upon the date sent and
585	shall be sent to ... (Name of Seller) ... at ... (Address of
586	Seller) .... Any attempt to obtain a waiver of your
587	cancellation right is void and of no effect. While you may
588	execute all closing documents in advance, the closing, as
589	evidenced by delivery of the deed or other document, before
590	expiration of your 10-day cancellation period, isprohibited.
591	(h) If a timeshare estate is being conveyed, the following
592	statement in conspicuous type:
593
594	For the purpose of ad valorem assessment, taxation and
595	special assessments, the managing entity will be considered the
596	taxpayer as your agent pursuant to section 192.037, Florida
597	Statutes.
598
599	(i) A statement that, in the event the purchaser cancels
600	the contract during a 10-day cancellation period, the developer
601	will refund to the purchaser the total amount of all payments
602	made by the purchaser under the contract, reduced by the
603	proportion of any contract benefits the purchaser has actually
604	received under the contract prior to the effective date of the
605	cancellation. The statement shall further provide that the
606	refund will be made within 20 days after receipt of notice of
607	cancellation or within 5 days after receipt of funds from the
608	purchaser's cleared check, whichever is later. A seller and a
609	purchaser shall agree in writing on a specific value for each
610	contract benefit received by the purchaser for purposes of this
611	paragraph. The term "contract benefit" shall not include
612	purchaser public offering statements or other documentation or
613	materials that must be furnished to a purchaser pursuant to
614	statute or rule.
615	(j) If the timeshare interest is being sold pursuant to an
616	agreement for deed or an agreement for transfer, a statement
617	that the signing of the agreement for deed or agreement for
618	transfer does not entitle the purchaser to receive the
619	conveyance or transfer of his or her timeshare estate or
620	personal property timeshare interesta deeduntil all payments
621	under the agreement have been made.
622	(k) Unless the developer is,at the time of offering the
623	plan, the owner in fee simple absoluteof the accommodations and
624	facilities of the timeshare plan, free and clear of all liens,
625	and encumbrances, and claims of other interestholders,a
626	statement that the developer is not the sole owner of the
627	underlying fee or owner of the underlying personal property or
628	that thesuch accommodations or facilities are subject to
629	withoutliens or encumbrances, which statement shall include:
630	1. The names and addresses of all interestholderspersons
631	or entities having an ownership interest or other interest in
632	the accommodations or facilities; and
633	2. The actual interest of the developer in the
634	accommodations or facilities. As an alternative to including the
635	statement in the purchase contract, a seller may include a
636	reference in the purchase contract to the location in the
637	purchaser public offering statement text of such information.
638	(l) If the purchaser will receive an interest in a
639	multisite timeshare plan pursuant to part II, a statement shall
640	be provided in conspicuous type in substantially the following
641	form:
642
643	The developer is required to provide the managing entity of
644	the multisite timeshare plan with a copy of the approved public
645	offering statement text and exhibits filed with the division and
646	any approved amendments thereto, and any other component site
647	documents as described in section 721.07 or section 721.55,
648	Florida Statutes, that are not required to be filed with the
649	division, to be maintained by the managing entity for inspection
650	as part of the books and records of the plan.
651
652	(m) The following statement in conspicuous type:
653
654	Any resale of this timeshare interest must be accompanied
655	by certain disclosures in accordance with section 721.065,
656	Florida Statutes.
657
658	(n) A description of any rights reserved by the developer
659	to alter or modify the offering prior to closing.
660	(2)(a)An agreement for deed shall be recorded by the
661	developer within 30 days after the day it is executed by the
662	purchaser. The developer shall pay all recording costs
663	associated therewith. A form copy of such instrument must be
664	filed with the division for review pursuant to s. 721.07.
665	(b) An agreement for transfer shall be filed with the
666	Secretary of State or other appropriate official responsible for
667	maintaining such records in the appropriate jurisdiction within
668	30 days after the day it is executed by the purchaser. The
669	developer shall pay all filing costs associated therewith. A
670	form copy of such instrument must be filed with the division for
671	review pursuant to s. 721.07.
672	(3) The escrow agent shall provide the developer with a
673	receipt for all purchaser funds or other property received by
674	the escrow agent from a seller.
675	Section 5. Paragraph (b) of subsection (2) of section
676	721.065, Florida Statutes, is amended to read:
677	721.065 Resale purchase agreements.--
678	(2) Any resale purchase agreement utilized by a person
679	described in subsection (1) must contain all of the following:
680	(b) One ofthe following statements in conspicuous type
681	located immediately prior to the disclosure required by
682	paragraph (c):
683	1. If the resale purchase agreement pertains to a real
684	property timeshare plan:
685
686	The current year's assessment for common expenses allocable to
687	the timeshare interest you are purchasing is $_____. This
688	assessment, which may be increased from time to time by the
689	managing entity of the timeshare plan, is payable in full each
690	year on or before __________. This assessment (includes/does not
691	include) yearly ad valorem real estate taxes, which (are/are
692	not) billed and collected separately. (If ad valorem real
693	property taxes are not included in the current year's assessment
694	for common expenses, the following statement must be included:
695	The most recent annual assessment for ad valorem real estate
696	taxes for the timeshare interest you are purchasing is $_____.)
697	(If there are any delinquent assessments for common expenses or
698	ad valorem taxes outstanding with respect to the timeshare
699	interest in question, the following statement must be included:
700	A delinquency in the amount of $_____ for unpaid common expenses
701	or ad valorem taxes currently exists with respect to the
702	timeshare interest you are purchasing, together with a per diem
703	charge of $_____ for interest and late charges.) For the purpose
704	of ad valorem assessment, taxation, and special assessments, the
705	managing entity will be considered the taxpayer as your agent
706	pursuant to section 192.037, Florida Statutes. Each owner is
707	personally liable for the payment of her or his assessments for
708	common expenses, and failure to timely pay these assessments may
709	result in restriction or loss of your use and/or ownership
710	rights.
711
712	There are many important documents relating to the timeshare
713	plan which you should review prior to purchasing a timeshare
714	interest, including the declaration of condominium or covenants
715	and restrictions; the owners'association articles and bylaws;
716	the current year's operating and reserve budgets; and any rules
717	and regulations affecting the use of timeshare plan
718	accommodations and facilities.
719	2. If the resale purchase agreement pertains to a personal
720	property timeshare plan:
721
722	The current year's assessment for any common expenses, use
723	charges, fees, or taxes allocable to the timeshare interest you
724	are purchasing is $_____. This assessment, which may be
725	increased from time to time by the managing entity of the
726	timeshare plan, is payable in full each year on or before
727	__________. (If there are any delinquent assessments for common
728	expenses, use charges, fees, or taxes outstanding with respect
729	to the timeshare interest in question, the following statement
730	must be included: A delinquency in the amount of $_____ for
731	unpaid common expenses, use charges, fees, or taxes currently
732	exists with respect to the timeshare interest you are
733	purchasing, together with a per diem charge of $_____ for
734	interest and late charges.) Each owner is personally liable for
735	the payment of her or his assessments for common expenses, and
736	failure to timely pay these assessments may result in
737	restriction or loss of your use and/or ownership rights.
738
739	There are many important documents relating to the timeshare
740	plan which you should review prior to purchasing a timeshare
741	interest, including any owners’ association articles and bylaws;
742	the current year's operating and reserve budgets; and any rules
743	and regulations affecting the use of timeshare plan
744	accommodations and facilities.
745
746	Section 6. Section 721.07, Florida Statutes, is amended to
747	read:
748	721.07 Public offering statement.--Prior to offering any
749	timeshare plan, the developer must submit a filedregistered
750	public offering statement to the division for approval as
751	prescribed by s. 721.03, s. 721.55, or this section. Until the
752	division approves such filing, any contract regarding the sale
753	of that timeshare plan is subject to cancellationvoidableby
754	the purchaser pursuant to s. 721.10.
755	(1) The division shall, upon receiving a filedregistered
756	public offering statement from a developer, mail to the
757	developer an acknowledgment of receipt. The failure of the
758	division to send such acknowledgment will not, however, relieve
759	the developer from the duty of complying with this section.
760	(2)(a) Within 45 days after receipt of a filedregistered
761	public offering statement which is subject only to this part and
762	is submitted in proper form as prescribed by rule, or within 120
763	days after receipt of a filedregisteredpublic offering
764	statement which is subject to part II and is submitted in proper
765	form as prescribed by rule, the division shall determine whether
766	the proposed filedregisteredpublic offering statement is
767	adequate to meet the requirements of this section and shall
768	notify the developer by mail that the division has either
769	approved the statement or found specified deficiencies in the
770	statement. If the division fails to approve the statement or
771	specify deficiencies in the statement within the period
772	specified in this paragraph, the filing will be deemed approved.
773	(b) If the developer fails to respond to any cited
774	deficiencies within 20 days after receipt of the division's
775	deficiency notice, the division may reject the filing.
776	Subsequent to such rejection, a new filing fee pursuant to
777	subsection (4) and a new division initial review period pursuant
778	to paragraph (a) shall apply to any refiling or further review
779	of the rejected filing.
780	(c) Within 20 days after receipt of the developer's timely
781	and complete response to any deficiency notice, the division
782	shall notify the developer by mail that the division has either
783	approved the filing, found additional specified deficiencies in
784	it, or determined that any previously specified deficiency has
785	not been corrected. If the division fails to approve or specify
786	additional deficiencies within 20 days after receipt of the
787	developer's timely and complete response, the filing will be
788	deemed approved.
789	(d) A developer shall have the authority to deliver to
790	purchasers any purchaser public offering statement that is not
791	yet approved by the division, provided that the following shall
792	apply:
793	1. At the time the developer delivers an unapproved
794	purchaser public offering statement to a purchaser pursuant to
795	this paragraph, the developer shall deliver a fully completed
796	and executed copy of the purchase contract required by s. 721.06
797	that contains the following statement in conspicuous type in
798	substantially the following form which shall replace the
799	statements required by s. 721.06(1)(g):
800
801	The developer is delivering to you a public offering statement
802	that has been filed with but not yet approved by the Division of
803	Florida Land Sales, Condominiums, and Mobile Homes. Any
804	revisions to the unapproved public offering statement you have
805	received must be delivered to you, but only if the revisions
806	materially alter or modify the offering in a manner adverse to
807	you. After the division approves the public offering statement,
808	you will receive notice of the approval from the developer and
809	the required revisions, if any.
810
811	Your statutory right to cancel this transaction without any
812	penalty or obligation expires 10 calendar days after the date
813	you signed your purchase contract or the date on which you
814	receive the last of all documents required to be given to you
815	pursuant to section 721.07(6), Florida Statutes, or 10 calendar
816	days after you receive revisions required to be delivered to
817	you, if any, whichever is later. If you decide to cancel this
818	contract, you must notify the seller in writing of your intent
819	to cancel. Your notice of cancellation shall be effective upon
820	the date sent and shall be sent to (Name of Seller) at (Address
821	of Seller). Any attempt to obtain a waiver of your cancellation
822	right is void and of no effect. While you may execute all
823	closing documents in advance, the closing, as evidenced by
824	delivery of the deed or other document, before expiration of
825	your 10-day cancellation period, is prohibited.
826
827	2. After receipt of approval from the division and prior
828	to closing, if any revisions made to the documents contained in
829	the purchaser public offering statement materially alter or
830	modify the offering in a manner adverse to a purchaser, the
831	developer shall send the purchaser such revisions together with
832	a notice containing a statement in conspicuous type in
833	substantially the following form:
834
835	The unapproved public offering statement previously delivered to
836	you, together with the enclosed revisions, has been approved by
837	the Division of Florida Land Sales, Condominiums, and Mobile
838	Homes. Accordingly, your cancellation right expires 10 calendar
839	days after you sign your purchase contract or 10 calendar days
840	after you receive these revisions, whichever is later. If you
841	have any questions regarding your cancellation rights, you may
842	contact the division at [insert division's current address].
843
844	3. After receipt of approval from the division and prior
845	to closing, if no revisions have been made to the documents
846	contained in the unapproved purchaser public offering statement,
847	or if such revisions do not materially alter or modify the
848	offering in a manner adverse to a purchaser, the developer shall
849	send the purchaser a notice containing a statement in
850	conspicuous type in substantially the following form:
851
852	The unapproved public offering statement previously delivered to
853	you has been approved by the Division of Florida Land Sales,
854	Condominiums, and Mobile Homes. Revisions made to the unapproved
855	public offering statement, if any, are either not required to be
856	delivered to you or are not deemed by the developer, in its
857	opinion, to materially alter or modify the offering in a manner
858	that is adverse to you. Accordingly, your cancellation right
859	expired 10 days after you signed your purchase contract. A
860	complete copy of the approved public offering statement is
861	available through the managing entity for inspection as part of
862	the books and records of the plan. If you have any questions
863	regarding your cancellation rights, you may contact the division
864	at [insert division's current address].
865	(3)(a)1. Any change to an approved public offering
866	statement filing shall be filed with the division for approval
867	as an amendment prior to becoming effective. The division shall
868	have 20 days after receipt of a proposed amendment to approve or
869	cite deficiencies in the proposed amendment. If the division
870	fails to act within 20 days, the amendment will be deemed
871	approved. If the proposed amendment adds a new component site to
872	an approved multisite timeshare plan, the division's initial
873	period in which to approve or cite deficiencies is 45 days. If
874	the developer fails to adequately respond to any deficiency
875	notice within 30 days, the division may reject the amendment.
876	Subsequent to such rejection, a new filing fee pursuant to
877	subsection (4) and a new division initial review period pursuant
878	to this paragraph shall apply to any refiling or further review
879	of the rejected amendment.
880	2. For filings only subject to this part, each approved
881	amendment to the approved purchaser public offering statement,
882	other than an amendment made only for the purpose of the
883	addition of a phase or phases to the timeshare plan in the
884	manner described in the timeshare instrument or any amendment
885	that does not materially alter or modify the offering in a
886	manner that is adverse to a purchaser, shall be delivered to a
887	purchaser no later than 10 days prior to closing. For filings
888	made under part II, each approved amendment to the multisite
889	timeshare plan purchaser public offering statement, other than
890	an amendment made only for the purpose of the addition,
891	substitution, or deletion of a component site pursuant to part
892	II or the addition of a phase or phases to a component site of a
893	multisite timeshare plan in the manner described in the
894	timeshare instrument or any amendment that does not materially
895	alter or modify the offering in a manner that is adverse to a
896	purchaser, shall be delivered to a purchaser no later than 10
897	days prior to closing.
898	3. Amendments made to a timeshare instrument for a
899	component site located in this state are not required to be
900	delivered to purchasers who do not receive a timeshare estate or
901	an interest in a specific multisite timeshare planlicensein
902	that component site. Amendments made to a timeshare instrument
903	for a component site not located in this state are not required
904	to be delivered to purchasers.
905	(b) At the time that any amendments required to be
906	delivered to purchasers, as provided in paragraph (a), are
907	delivered to purchasers, the developer shall provide to those
908	purchasers who have not closed a written statement that the
909	purchaser or lessee will have a 10-day voidability period.
910	(4)(a) Upon the filing of a filedregisteredpublic
911	offering statement, the developer shall pay a filing fee of $2
912	for each 7 days of annual use availability in each timeshare
913	unit that may be offered as a part of the proposed timeshare
914	plan pursuant to the filing.
915	(b) Upon the filing of an amendment to an approved filed
916	registered public offering statement, other than an amendment
917	adding a phase to the timeshare plan, the developer shall pay a
918	filing fee of $100.
919	(5) Every filedregisteredpublic offering statement for a
920	timeshare plan which is not a multisite timeshare plan shall
921	contain the information required by this subsection. The
922	division is authorized to provide by rule the method by which a
923	developer must provide such information to the division.
924	(a) A cover page stating only:
925	1. The name of the timeshare plan; and
926	2. The following statement, in conspicuous type: This
927	public offering statement contains important matters to be
928	considered in acquiring a timeshare interest. The statements
929	contained in this public offering statement are only summary in
930	nature. A prospective purchaser should refer to all references,
931	accompanying exhibits, contract documents, and sales materials.
932	You should not rely upon oral representations as being correct.
933	Refer to this document and accompanying exhibits for correct
934	representations. The seller is prohibited from making any
935	representations other than those contained in the contract and
936	this public offering statement.
937	(b) A listing of all statements required to be in
938	conspicuous type in the public offering statement and in all
939	exhibits thereto.
940	(c) A separate index of the contents and exhibits of the
941	public offering statement.
942	(d) A text which shall include, where applicable, the
943	disclosures set forth in paragraphs (e)-(hh).
944	(e) A description of the timeshare plan, including, but
945	not limited to:
946	1. Its name and location.
947	2. An explanation of the form of timeshare ownership that
948	is being offered, including a statement as to whether any
949	interest in the underlying real property will be conveyed to the
950	purchaser. If the plan is being created or being sold on a
951	leasehold, a description of the material terms of the lease
952	shall be included. If the plan is a plan in which timeshare
953	estates or personal property timeshare interestsare sold as
954	interests in a trust pursuant to the requirements of this
955	chapter, a full and accurate description of the trust
956	arrangement and the trustee's duties shall be included. If the
957	plan is a personal property timeshare plan, a description of the
958	material terms of the arrangement for the ownership or use of
959	the personal property shall be included.
960	3. An explanation of the manner in which the apportionment
961	of common expenses and ownership of the common elements has been
962	determined.
963	4. If ownership or use of the timeshare plan is based on a
964	point system, a statement indicating the circumstances by which
965	the point values may change, the extent of such changes, and the
966	person or entity responsible for the changes.
967	(f) A description of the accommodations, including, but
968	not limited to:
969	1. The number of timeshare units in each building, the
970	total number of timeshare periods declared as part of the
971	timeshare plan and filed with the division, and the number of
972	bathrooms and bedrooms in each type of timeshare unit.
973	2. The latest date estimated for completion of
974	constructing, finishing, and equipping the timeshare units
975	declared as part of the timeshare plan and filed with the
976	division.
977	3. The estimated maximum number of units and timeshare
978	periods that will use the accommodations and facilities. If the
979	maximum number of timeshare units or timeshare periods will
980	vary, a description of the basis for variation.
981	4. The duration, in years, of the timeshare plan.
982	5. If any of the accommodations are part of a personal
983	property timeshare plan, the name, vehicle registration number,
984	title certificate number, or any other identifying registration
985	number assigned to the accommodation of a personal property
986	timeshare plan by a state, federal, or international
987	governmental agency.
988	6. If any of the accommodations are part of a personal
989	property timeshare plan, the fire detection system and fire
990	safety equipment and description of method of compliance with
991	any applicable firesafety or fire detection regulations.
992	(g) A description of anythefacilities that will be used
993	by purchasers of the plan, including, but not limited to:
994	1. The intended purpose, if not apparent from the
995	description.
996	2. The estimated date when each facility will be available
997	for use by the purchaser.
998	3. A statement as to whether the facilities will be used
999	exclusively by purchasers of the timeshare plan, and, if not, a
1000	statement as to whether the purchasers of the timeshare plan are
1001	required to pay any portion of the maintenance and expenses of
1002	such facilities.
1003	(h)1. If any facilities offered by the developer for use
1004	by purchasers are to be leased or have club memberships
1005	associated with them, other than participation in a vacation
1006	club, one of the following statements in conspicuous type: There
1007	is a lease associated with one or more facilities of the
1008	timeshare plan; or, There is a club membership associated with
1009	one or more facilities of the timeshare plan.
1010	2. If it is mandatory that purchasers pay fees, rent,
1011	dues, or other charges under a facilities lease or club
1012	membership for the use of the facilities, other than
1013	participation in a vacation club, the applicable statement in
1014	conspicuous type in substantially the following form:
1015	a. Membership in a facilities club is mandatory for
1016	purchasers;
1017	b. Purchasers or the owners'association(s) are required,
1018	as a condition of ownership, to be lessees under the facilities
1019	lease;
1020	c. Purchasers or the owners'association(s) are required
1021	to pay their share of the rent or costs and expenses of
1022	maintenance, management, upkeep, and replacement under the
1023	facilities lease (or the other instruments providing the
1024	facilities); or
1025	d. A similar statement of the nature of the organization
1026	or the manner in which the use rights are created, and that
1027	purchasers are required to pay.
1028
1029	Immediately following the applicable statement, a description of
1030	the lease or other instrument shall be stated, including a
1031	description of terms of the payment of rent or costs and
1032	expenses of maintenance, management, upkeep, and replacement of
1033	the facilities.
1034	3. If the purchasers are required to pay a use fee, or
1035	other payment for the use of the facilities, not including the
1036	rent or maintenance, management, upkeep, or replacement costs
1037	and expenses, the following statement in conspicuous type: The
1038	purchasers or the owners'association(s) must pay use fees for
1039	one or more facilities. Immediately following this statement, a
1040	description of the use fees shall be included.
1041	4. If any person other than the owners'association has
1042	the right to a lien on the timeshare interests to secure the
1043	payment of assessments, rent, or other exactions, a statement in
1044	conspicuous type in substantially the following form:
1045	a. There is a lien or lien right against each timeshare
1046	interest to secure the payment of rent and other exactions under
1047	the facilities lease. A purchaser's failure to make these
1048	payments may result in foreclosure of the lien; or
1049	b. There is a lien or lien right against each timeshare
1050	interest to secure the payment of assessments or other exactions
1051	coming due for the use, maintenance, upkeep, or repair of one or
1052	more facilities. A purchaser's failure to make these payments
1053	may result in foreclosure of the lien.
1054
1055	Immediately following the applicable statement, a description of
1056	the lien right shall be included.
1057	(i) If the developer or any other person has the right to
1058	increase or add to the facilities at any time after the
1059	establishment of the timeshare plan, without the consent of the
1060	purchasers or owners'association being required, a statement in
1061	conspicuous type in substantially the following form: Facilities
1062	may be expanded or added without consent of the purchasers or
1063	the owners'association(s). Immediately following this
1064	statement, a description of such reserved rights shall be
1065	included.
1066	(j)1. For a real property timeshare plan,an explanation
1067	of the status of the title to the real property underlying the
1068	timeshare plan, including a statement of the existence of any
1069	lien, defect, judgment, mortgage, or other encumbrance affecting
1070	the title to the property, and how such lien, defect, judgment,
1071	mortgage, or other encumbrance will be removed or satisfied
1072	prior to closing.
1073	2. For a personal property timeshare plan, an explanation
1074	of the status of title to the personal property underlying the
1075	timeshare plan, including a statement of the existence of any
1076	lien, defect, judgment, or other encumbrance affecting the title
1077	to the personal property, and how such lien, defect, judgment,
1078	or other encumbrance will be removed or satisfied prior to
1079	closing.
1080	(k) A description of any judgment against the developer,
1081	the managing entity, owner of the underlying fee,or owner of
1082	the underlying personal propertyfee, which judgment is material
1083	to the timeshare plan; the status of any pending suit to which
1084	the developer, the managing entity, owner of the underlying fee,
1085	or owner of the underlying personal propertyfeeis a party,
1086	which suit is material to the timeshare plan; and any other suit
1087	which is material to the timeshare plan of which the developer,
1088	managing entity, owner of the underlying fee,or owner of the
1089	underlying personal propertyfeehas actual knowledge. If no
1090	judgments or pending suits exist, there shall be a statement of
1091	such fact.
1092	(l) A description of all unusual and material
1093	circumstances, features, and characteristics of the real
1094	property or personal property underlying or comprising the
1095	timeshare plan.
1096	(m) A description of any financing to be offered to
1097	purchasers by the developer or any person or entity in which the
1098	developer has a financial interest, together with a disclosure
1099	that the description of such financing may be changed by the
1100	developer and that any change in the financing offered to
1101	prospective purchasers will not be deemed to be a material
1102	change.
1103	(n) A detailed explanation of any financial arrangements
1104	which have been provided for completion of all promised
1105	improvements.
1106	(o) The name and address of the managing entity; a
1107	statement whether the seller may change the managing entity or
1108	its control and, if so, the manner by which the seller may
1109	change the managing entity; a statement of the arrangements for
1110	management, maintenance, and operation of the accommodations and
1111	facilities and of other property that will serve the purchasers;
1112	and a description of the management arrangement and any
1113	contracts for these purposes having a term in excess of 1 year,
1114	including the names of the contracting parties, the term of the
1115	contract, the nature of the services included, and the
1116	compensation, stated for a month and for a year, and provisions
1117	for increases in the compensation.
1118	(p) If any person other than the purchasers has the right
1119	to retain control of the board of administration of the owners'
1120	association, if any,for a period of time which may exceed 1
1121	year after the closing of the sale of a majority of the
1122	timeshare interests in that timeshare plan to persons other than
1123	successors or concurrent developers and the plan is one in which
1124	all purchasers automatically become members of the owners'
1125	association, a statement in conspicuous type in substantially
1126	the following form: The developer (or other person) has the
1127	right to retain control of the owners'association after a
1128	majority of the timeshare interests have been sold. Immediately
1129	following this statement, a description of the applicable
1130	transfer of control provisions of the timeshare plan shall be
1131	included.
1132	(q)1. If there are any restrictions upon the sale,
1133	transfer, conveyance, or leasing of a timeshare interest, a
1134	statement in conspicuous type in substantially the following
1135	form: The sale, lease, or transfer of timeshare interests is
1136	restricted or controlled. Immediately following this statement,
1137	a description of the nature of the restriction, limitation, or
1138	control on the sale, lease, or transfer of timeshare interests
1139	shall be included.
1140	2. The following statement in conspicuous type in
1141	substantially the following form: The purchase of a timeshare
1142	interest should be based upon its value as a vacation experience
1143	or for spending leisure time, and not considered for purposes of
1144	acquiring an appreciating investment or with an expectation that
1145	the timeshare interest may be resold.
1146	(r) If the timeshare plan is part of a phase project, a
1147	statement to that effect and a complete description of the
1148	phasing. Notwithstanding any provisions of s. 718.110 or s.
1149	719.1055, a developer may develop a timeshare condominium or a
1150	timeshare cooperative in phases if the original declaration of
1151	condominium or cooperative documents submitting the initial
1152	phase to condominium ownership or cooperative ownership or an
1153	amendment to the declaration of condominium or cooperative
1154	documents which has been approved by all of the unit owners and
1155	unit mortgagees provides for phasing. Notwithstanding any
1156	provisions of s. 718.403 or s. 719.403 to the contrary, the
1157	original declaration of condominium or cooperative documents, or
1158	an amendment to the declaration of condominium or cooperative
1159	documents adopted pursuant to this subsection, need only
1160	generally describe the developer's phasing plan and the land
1161	which may become part of the condominium or cooperative, and, in
1162	conjunction therewith, the developer may also reserve all rights
1163	to vary his or her phasing plan as to phase boundaries, plot
1164	plans and floor plans, timeshare unit types, timeshare unit
1165	sizes and timeshare unit type mixes, numbers of timeshare units,
1166	and facilities with respect to each subsequent phase. There
1167	shall be no time limit during which a developer of a timeshare
1168	condominium or timeshare cooperative must complete his or her
1169	phasing plan, and the developer shall not be required to notify
1170	owners of existing timeshare estates of his or her decision not
1171	to add one or more proposed phases.
1172	(s) A description of the material restrictions, if any, to
1173	be imposed on timeshare interests concerning the use of any of
1174	the accommodations or facilities, including statements as to
1175	whether there are restrictions upon children and pets or a
1176	reference to a copy of the documents containing the restrictions
1177	which shall be attached as an exhibit. If there are no
1178	restrictions, there shall be a statement of such fact.
1179	(t) If there is any land or personal propertythat is
1180	offered by the developer for use by the purchasers and which is
1181	neither owned by them nor leased to them, the owners'
1182	association, or any entity controlled by the purchasers, a
1183	statement describing the land or personal property, how it will
1184	serve the timeshare plan, and the nature and term of service.
1185	(u) An estimated operating budget for the timeshare plan
1186	and a schedule of the purchaser's expenses shall be attached as
1187	an exhibit and shall contain the following information:
1188	1. The estimated annual expenses of the timeshare plan
1189	collectible from purchasers by assessments. The estimated
1190	payments by the purchaser for assessments shall also be stated
1191	in the estimated amounts for the times when they will be due.
1192	Expenses shall also be shown for the shortest timeshare period
1193	offered for sale by the developer. If the timeshare plan
1194	provides for the offer and sale of units to be used on a
1195	nontimeshare basis, the estimated monthly and annual expenses of
1196	such units shall be set forth in a separate schedule.
1197	2. The estimated weekly, monthly, and annual expenses of
1198	the purchaser of each timeshare interest, other than assessments
1199	payable to the managing entity. Expenses which are personal to
1200	purchasers that are not uniformly incurred by all purchasers or
1201	that are not provided for or contemplated by the timeshare plan
1202	documents may be excluded from this estimate.
1203	3. The estimated items of expenses of the timeshare plan
1204	and the managing entity, except as excluded under subparagraph
1205	2., including, but not limited to, if applicable, the following
1206	items, which shall be stated either as management expenses
1207	collectible by assessments or as expenses of the purchaser
1208	payable to persons other than the managing entity:
1209	a. Expenses for the managing entity:
1210	(I) Administration of the managing entity.
1211	(II) Management fees.
1212	(III) Maintenance.
1213	(IV) Rent for facilities.
1214	(V) Taxes upon timeshare property.
1215	(VI) Taxes upon leased areas.
1216	(VII) Insurance.
1217	(VIII) Security provisions.
1218	(IX) Other expenses.
1219	(X) Operating capital.
1220	(XI) Reserves for deferred maintenance and reserves for
1221	capital expenditures.
1222	(A) All reserves for any accommodations and facilities of
1223	real property timeshare planslocated in this state shall be
1224	calculated by a formula which is based upon estimated life and
1225	replacement cost of each reserve item. Reserves for deferred
1226	maintenance for such accommodations and facilities shall include
1227	accounts for roof replacement, building painting, pavement
1228	resurfacing, replacement of timeshare unit furnishings and
1229	equipment, and any other component, the useful life of which is
1230	less than the useful life of the overall structure. For any
1231	accommodations and facilities of real property timeshare plans
1232	located outside of this state, the developer shall disclose the
1233	amount of reserves for deferred maintenance or capital
1234	expenditures required by the law of the situs state, if
1235	applicable, and maintained for such accommodations and
1236	facilities.
1237	(B) Reserves for deferred maintenance or capital
1238	expenditures of accommodations and facilities of a personal
1239	property timeshare plan, if any. If such reserves are
1240	maintained, the estimated operating budget shall disclose the
1241	methodology of how the reserves are calculated. If a personal
1242	property timeshare plan does not require reserves, the following
1243	statement, in conspicuous type, shall appear in both the budget
1244	and the public offering statement:
1245
1246	The estimated operating budget for this personal property
1247	timeshare plan does not include reserves for deferred
1248	maintenance or capital expenditures; each timeshare interest may
1249	be subject to substantial special assessments from time to time
1250	because no such reserves exist.
1251
1252	(XII) Fees payable to the division.
1253	b. Expenses for a purchaser:
1254	(I) Rent for the timeshare unit, if subject to a lease.
1255	(II) Rent payable by the purchaser directly to the lessor
1256	or agent under any lease for the use of facilities, which use
1257	and payment is a mandatory condition of ownership and is not
1258	included in the common expenses or assessments for common
1259	maintenance paid by the purchasers to the managing entity.
1260	4. The estimated amounts shall be stated for a period of
1261	at least 12 months and may distinguish between the period prior
1262	to the time that purchasers elect a majority of the board of
1263	administration and the period after that date.
1264	5. If the developer intends to guarantee the level of
1265	assessments, such guarantee must be based upon a good faith
1266	estimate of the revenues and expenses of the timeshare plan. The
1267	guarantee must include a description of the following:
1268	a. The specific time period measured in one or more
1269	calendar or fiscal years during which the guarantee will be in
1270	effect.
1271	b. A statement that the developer will pay all common
1272	expenses incurred in excess of the total revenues of the
1273	timeshare plan pursuant to s. 721.15(2) if the developer has
1274	excused himself or herself from the payment of assessments
1275	during the guarantee period.
1276	c. The level, expressed in total dollars, at which the
1277	developer guarantees the budget. If the developer has reserved
1278	the right to extend or increase the guarantee level pursuant to
1279	s. 721.15(2), a disclosure must be included to that effect.
1280	6. If the developer intends to provide a trust fund to
1281	defer or reduce the payment of annual assessments, a copy of the
1282	trust instrument shall be attached as an exhibit and shall
1283	include a description of such arrangement, including, but not
1284	limited to:
1285	a. The specific amount of such trust funds and the source
1286	of the funds.
1287	b. The name and address of the trustee.
1288	c. The investment methods permitted by the trust
1289	agreement.
1290	d. A statement in conspicuous type that the funds from the
1291	trust account may not cover all assessments and that there is no
1292	guarantee that purchasers will not have to pay assessments in
1293	the future.
1294	7. The budget of a phase timeshare plan may contain a note
1295	identifying the number of timeshare interests covered by the
1296	budget, indicating the number of timeshare interests, if any,
1297	estimated to be declared as part of the timeshare plan during
1298	that calendar year, and projecting the common expenses for the
1299	timeshare plan based upon the number of timeshare interests
1300	estimated to be declared as part of the timeshare plan during
1301	that calendar year.
1302	(v) A schedule of estimated closing expenses to be paid by
1303	a purchaser or lessee of a timeshare interest and a statement as
1304	to whether a title opinion or title insurance policy is
1305	available to the purchaser and, if so, at whose expense.
1306	(w) The identity of the developer and the chief operating
1307	officer or principal directing the creation and sale of the
1308	timeshare plan and a statement of the experience of each in this
1309	field or, if no experience, a statement of that fact.
1310	(x) A statement of the total financial obligation of the
1311	purchaser, including the purchase price and any additional
1312	charges to which the purchaser may be subject.
1313	(y) The name of any person who will or may have the right
1314	to alter, amend, or add to the charges to which the purchaser
1315	may be subject and the terms and conditions under which such
1316	alterations, amendments, or additions may be imposed.
1317	(z) A statement of the purchaser's right of cancellation
1318	of the purchase contract.
1319	(aa) A description of the insurance coverage provided for
1320	the timeshare plan.
1321	(bb) A statement as to whether the timeshare plan is
1322	participating in an exchange program and, if so, the name and
1323	address of the exchange company offering the exchange program.
1324	(cc) The existence of rules and regulations regarding any
1325	reservation features governing a purchaser's ability to make
1326	reservations for a timeshare period, including, if applicable, a
1327	conspicuous type disclaimer in substantially the following form:
1328
1329	The right to reserve a timeshare period is subject to rules and
1330	regulations of the timeshare plan reservation system.
1331
1332	(dd) If a developer is filing a timeshare plan that
1333	includes a timeshare instrument or component site document that
1334	was in conformance with the laws and rules in existence at the
1335	time the timeshare plan was created but does not conform to
1336	existing laws and rules that govern the timeshare plan and the
1337	developer does not have the authority or power to amend or
1338	change the timeshare instrument or component site document to
1339	conform to such existing laws or rules as directed by the
1340	division, a brief explanation of current law and the conflict
1341	with the timeshare instrument or component site document,
1342	preceded by disclaimer in conspicuous type in substantially the
1343	following form:
1344
1345	Florida law has been amended and certain provisions in [insert
1346	appropriate reference to timeshare instrument or component site
1347	document] that were in conformance with Florida law as it
1348	existed at the time the timeshare plan was created are not in
1349	conformance with current Florida law. These documents may only
1350	be amended by [insert appropriate reference to person or entity
1351	that has the right to amend or change the timeshare instrument
1352	or component site document]. The developer does not warrant that
1353	such documents are in technical compliance with all applicable
1354	Florida laws and regulations. All questions regarding amendment
1355	of these documents should be directed to [insert appropriate
1356	reference to person or entity that has the right to amend or
1357	change the timeshare instrument or component site document].
1358
1359	(ee) Any other information that a seller, with the
1360	approval of the division, desires to include in the public
1361	offering statement.
1362	(ff) Copies of the following documents and plans, to the
1363	extent they are applicable, shall be included as exhibits to the
1364	filedregisteredpublic offering statement provided, if the
1365	timeshare plan has not been declared or createdat the time of
1366	the filing, the developer shall provide proposed documents:
1367	1. The declaration of condominium.
1368	2. The cooperative documents.
1369	3. The declaration of covenants and restrictions.
1370	4. The articles of incorporation creating the owners'
1371	association.
1372	5. The bylaws of the owners'association.
1373	6. AnyTheground lease or other underlying lease of the
1374	real property associated withon which the timeshare plan is
1375	situated. In the case of a personal property timeshare plan, any
1376	lease of the personal property associated with the personal
1377	property timeshare plan.
1378	7. The management agreement and all maintenance and other
1379	contracts regarding the management and operation of the
1380	timeshare property which have terms in excess of 1 year.
1381	8. The estimated operating budget for the timeshare plan
1382	and the required schedule of purchasers' expenses.
1383	9. The floor plan of each type of accommodation and the
1384	plot plan showing the location of all accommodations and
1385	facilities declared as part of the timeshare plan and filed with
1386	the division.
1387	10. The lease for any facilities.
1388	11. A declaration of servitude of properties serving the
1389	accommodations and facilities, but not owned by purchasers or
1390	leased to them or the owners'association.
1391	12. Any documents required by s. 721.03(3)(e) as the
1392	result of the inclusion of a timeshare plan in the conversion of
1393	the building to condominium or cooperative ownership.
1394	13. The form of agreement for sale or lease of timeshare
1395	interests.
1396	14. The executed agreement for escrow of payments made to
1397	the developer prior to closing and the form of any agreement for
1398	escrow of ad valorem tax escrow payments, if any,to be made
1399	into an ad valorem tax escrow account pursuant to s. 192.037(6).
1400	15. The documents containing any restrictions on use of
1401	the property required by paragraph (s).
1402	16. A letter from the escrow agent or filing attorney
1403	confirming that the escrow agent and its officers, directors, or
1404	other partners are independent pursuant to the requirements of
1405	this chapter.
1406	17.16.Any other documents or instruments creating the
1407	timeshare plan.
1408	(gg) Such other information as is necessary to fairly,
1409	meaningfully, and effectively disclose all aspects of the
1410	timeshare plan, including, but not limited to, any disclosures
1411	made necessary by the operation of s. 721.03(8). However, if a
1412	developer has, in good faith, attempted to comply with the
1413	requirements of this section, and if, in fact, he or she has
1414	substantially complied with the disclosure requirements of this
1415	chapter, nonmaterial errors or omissions shall not be
1416	actionable.
1417	(hh) Notwithstanding the provisions of this subsection,
1418	the filedregisteredpublic offering statement for a component
1419	site of a multisite timeshare plan filed pursuant to this
1420	subsection may contain cross-references to information contained
1421	in the related multisite timeshare plan filedregisteredpublic
1422	offering statement filed pursuant to s. 721.55 in lieu of
1423	repeating such information.
1424	(6) The division is authorized to prescribe by rule the
1425	form of the approved purchaser public offering statement that
1426	must be furnished by the developer to each purchaser. The form
1427	of the purchaser public offering statement must provide fair,
1428	meaningful, and effective disclosure of all aspects of the
1429	timeshare plan. For timeshare plans filed pursuant to this part,
1430	the developer shall furnish each purchaser with the following:
1431	(a) A copy of the purchaser public offering statement text
1432	in the form approved by the division for delivery to purchasers.
1433	(b) Copies of the exhibits required to be filed with the
1434	division pursuant to subparagraphs (5)(ff)1., 2., 4., 5., 8.,
1435	and 16.
1436	(c) A receipt for timeshare plan documents and a list
1437	describing any exhibit to the filedregisteredpublic offering
1438	statement filed with the division which is not delivered to the
1439	purchaser. The division is authorized to prescribe by rule the
1440	form of the receipt for timeshare plan documents and the
1441	description of exhibits list that must be furnished to the
1442	purchaser. The description of documents list utilized by a
1443	developer shall be filed with the division for review as part of
1444	the filedregisteredpublic offering statement pursuant to this
1445	section. The developer shall be required to provide the managing
1446	entity with a copy of the approved filedregisteredpublic
1447	offering statement and any approved amendments thereto to be
1448	maintained by the managing entity as part of the books and
1449	records of the timeshare plan pursuant to s. 721.13(3)(d).
1450	(d) Any other exhibit which the developer includes as part
1451	of the purchaser public offering statement, provided that the
1452	developer first files the exhibit with the division.
1453	(e) An executed copy of any document which the purchaser
1454	signs.
1455	(f) Each purchaser shall receive a fully executed paper
1456	copy of the purchase contract.
1457	Section 7. Paragraph (g) of subsection (1) of section
1458	721.075, Florida Statutes, is amended and paragraph (e) is added
1459	to subsection (2) of said section, to read:
1460	721.075 Incidental benefits.--Incidental benefits shall be
1461	offered only as provided in this section.
1462	(1) Accommodations, facilities, products, services,
1463	discounts, or other benefits which satisfy the requirements of
1464	this subsection shall be subject to the provisions of this
1465	section and exempt from the other provisions of this chapter
1466	which would otherwise apply to such accommodations or facilities
1467	if and only if:
1468	(g) The incidental benefit is filed with the division for
1469	reviewin conjunction with the filing of a timeshare plan or in
1470	connection with a previously filed timeshare plan.
1471	(2) Each purchaser shall execute a separate acknowledgment
1472	and disclosure statement with respect to all incidental
1473	benefits, which statement shall include the following
1474	information:
1475	(e) A statement indicating the source of the services,
1476	points, or other products that constitute the incidental
1477	benefit.
1478	Section 8. Section 721.08, Florida Statutes, is amended to
1479	read:
1480	721.08 Escrow accounts; nondisturbance instruments;
1481	alternate security arrangements; transfer of legal title.--
1482	(1) Prior to the filing of a registeredpublic offering
1483	statement with the division, all developers shall establish an
1484	escrow account with an escrow agent for the purpose of
1485	protecting the funds or other property of purchasers required to
1486	be escrowed by this section. An escrow agent shall maintain the
1487	accounts called for in this section only in such a manner as to
1488	be under the direct supervision and control of the escrow agent.
1489	The escrow agent shall have a fiduciary duty to each purchaser
1490	to maintain the escrow accounts in accordance with good
1491	accounting practices and to release the purchaser's funds or
1492	other property from escrow only in accordance with this chapter.
1493	The escrow agent shall retain all affidavits received pursuant
1494	to this section for a period of 5 years. Should the escrow agent
1495	receive conflicting demands for funds or otherproperty held in
1496	escrow, the escrow agent shall immediately notify the division
1497	of the dispute and either promptly submit the matter to
1498	arbitration or, by interpleader or otherwise, seek an
1499	adjudication of the matter by court.
1500	(2) One hundred percent of all funds or other property
1501	which is received from or on behalf of purchasers of the
1502	timeshare plan or timeshare interest prior to the occurrence of
1503	events required in this subsection shall be deposited pursuant
1504	to an escrow agreement approved by the division. The escrow
1505	agreement shall provide that the funds or otherproperty may be
1506	released from escrow only as follows:
1507	(a) Cancellation.--In the event a purchaser gives a valid
1508	notice of cancellation pursuant to s. 721.10 or is otherwise
1509	entitled to cancel the sale, the funds or property received from
1510	or on behalf of the purchaser, or the proceeds thereof, shall be
1511	returned to the purchaser. Such refund shall be made within 20
1512	days afterofdemand therefor by the purchaser or within 5 days
1513	after receipt of funds from the purchaser's cleared check,
1514	whichever is later. If the purchaser has received benefits under
1515	the contract prior to the effective date of the cancellation,
1516	the funds or otherproperty to be returned to the purchaser may
1517	be reduced by the proportion of contract benefits actually
1518	received.
1519	(b) Purchaser's default.--Following expiration of the 10-
1520	day cancellation period, if the purchaser defaults in the
1521	performance of her or his obligations under the terms of the
1522	contract to purchase or such other agreement by which a seller
1523	sells the timeshare interest, the developer shall provide an
1524	affidavit to the escrow agent requesting release of the escrowed
1525	funds or property and shall provide a copy of such affidavit to
1526	the purchaser who has defaulted. The developer's affidavit, as
1527	required herein, shall include:
1528	1. A statement that the purchaser has defaulted and that
1529	the developer has not defaulted;
1530	2. A brief explanation of the nature of the default and
1531	the date of its occurrence;
1532	3. A statement that pursuant to the terms of the contract
1533	the developer is entitled to the funds held by the escrow agent;
1534	and
1535	4. A statement that the developer has not received from
1536	the purchaser any written notice of a dispute between the
1537	purchaser and developer or a claim by the purchaser to the
1538	escrow.
1539	(c) Compliance with conditions.--
1540	1. Timeshare licenses.--If the timeshare plan is one in
1541	which timeshare licenses are to be sold and no cancellation or
1542	default has occurred, the escrow agent may release the escrowed
1543	funds or other property to or on the order of the developerupon
1544	presentation of:
1545	a. An affidavit by the developer that all of the following
1546	conditions have been met:
1547	(I) Expiration of the cancellation period.
1548	(II) Completion of construction.
1549	(III) Closing.
1550	(IV)(A)Either Execution, delivery,and recordation by
1551	each interestholder of the nondisturbance and notice to
1552	creditors instrument, as described in this section; or,
1553	alternatively,(B) Transfer by the developer of legal
1554	title to the subject accommodations and facilities, or all use
1555	rights therein, intoto a trust satisfying the requirements of
1556	subparagraph 4.sub-subparagraph 3.b. and the execution,
1557	delivery,and recordation by each other interestholder of the
1558	nondisturbance and notice to creditors instrument, as described
1559	in this section.
1560	b. A certified copy of eachtherecorded nondisturbance
1561	and notice to creditors instrument that complies with subsection
1562	(3).
1563	c. One of the following:
1564	(I) A copy of a memorandum of agreement, as defined in s.
1565	721.05(21), together with satisfactory evidence that the
1566	original memorandum of agreement has been irretrievably
1567	delivered for recording to the appropriate official responsible
1568	for maintaining the public records in the county in which the
1569	subject accommodations and facilities are located. The original
1570	memorandum of agreement must be recorded within 180 days after
1571	the date on which the purchaser executed her or his purchase
1572	agreement.
1573	(II) A notice delivered for recording to the appropriate
1574	official responsible for maintaining the public records in each
1575	county in which the subject accommodations and facilities are
1576	located notifying all persons of the identity of an independent
1577	escrow agent or trustee satisfying the requirements of
1578	subparagraph 4.sub-subparagraph 3.b.that shall maintain
1579	separate books and records, in accordance with good accounting
1580	practices, for the timeshare plan in which timeshare licenses
1581	are to be sold. The books and records shall indicate each
1582	accommodation and facility that is subject to such a timeshare
1583	plan and each purchaser of a timeshare license in the timeshare
1584	plan.
1585	2. TImeshare estates.--If the timeshare plan is one in
1586	which timeshare estates are to be sold, other than interests in
1587	a trust pursuant to subparagraph 3.,and no cancellation or
1588	default has occurred, the escrow agent may release the escrowed
1589	funds or other property to or on the order of the developerupon
1590	presentation of:
1591	a. An affidavit by the developer that all of the following
1592	conditions have been met:
1593	(I) Expiration of the cancellation period.
1594	(II) Completion of construction.
1595	(III) Closing.
1596	b. If the timeshare estate is sold by agreement for deed,
1597	a certified copy of the recorded nondisturbance and notice to
1598	creditors instrument, as described in this section.
1599	c. Evidence that each accommodation and facility:
1600	(I) Is free and clear of the claims of any
1601	interestholders, other than the claims of interestholders that,
1602	through a recorded instrument, are irrevocably made subject to
1603	the timeshare instrument and the use rights of purchasers made
1604	available through the timeshare instrument;
1605	(II) Is the subject of a recorded nondisturbance and
1606	notice to creditors instrument that complies with subsection (3)
1607	and s. 721.17; or
1608	(III) Has been transferred into a trust satisfying the
1609	requirements of subparagraph 4.
1610	d. Evidence that the timeshare estate:
1611	(I)Is free and clear of the claims of any
1612	interestholders, other than the claims of interestholders that,
1613	through a recorded instrument, are irrevocably made subject to
1614	the timeshare instrument and the use rights of purchasers made
1615	available through the timeshare instrument;,or
1616	(II) Isthat arethe subject of a recorded nondisturbance
1617	and notice to creditors instrument that complies with subsection
1618	(3) and s. 721.17(3).
1619	3. Personal property timeshare interests.--If the
1620	timeshare plan is one in which personal property timeshare
1621	interestsestates are to be sold as interests in a trust that
1622	complies in all respects with the provisions of sub-subparagraph
1623	b., and no cancellation or default has occurred, the escrow
1624	agent may release the escrowed funds or other property to or on
1625	the order of the developerupon presentation of:
1626	a. An affidavit by the developer that all of the following
1627	conditions have been met:
1628	(I) Expiration of the cancellation period.
1629	(II) Completion of construction.
1630	(III) Transfer of the subject accommodations and
1631	facilities, or all use rights therein, to the trust.
1632	(IV) Closing.
1633	b. If the personal property timeshare interest is sold by
1634	agreement for transfer, evidence that the agreement for transfer
1635	complies fully with s. 721.06 and this section.
1636	c.(I) Transfer by the owner of the underlying personal
1637	property of legal title to the subject accommodations and
1638	facilities or all use rights therein into a trust satisfying the
1639	requirements of subparagraph 4.; or
1640	(II) Transfer by the owner of the underlying personal
1641	property of legal title to the subject accommodations and
1642	facilities or all use rights therein into an owners’ association
1643	satisfying the requirements of subparagraph 5.
1644	d. Evidence of compliance with the provisions of
1645	subparagraph 6., if required.
1646	4. Trust.--
1647	a. If the subject accommodations or facilities, or all use
1648	rights therein, are to be transferred into a trust in order to
1649	comply with this paragraph, such transfer shall take place
1650	pursuant to this subparagraph.
1651	b.Prior to the transfer by each interestholder of the
1652	subject accommodations and facilities, or all use rights
1653	therein, to a trust, any lien or other encumbrance against such
1654	accommodations and facilities, or use rights therein, shall be
1655	made subject to a nondisturbance and notice to creditors
1656	instrument pursuant to subsection (3)as described in this
1657	section. No transfer pursuant to this subparagraphsub-
1658	subparagraphshall become effective until the trustee accepts
1659	such transfer and the responsibilities set forth herein. A trust
1660	established pursuant to this subparagraphsub-subparagraphshall
1661	comply with the following provisions:
1662	(I) The trustee shall be an individual or a business
1663	entity authorized and qualified to conduct trust business in
1664	this state. Any corporation authorized to do business in this
1665	state may act as trustee in connection with a timeshare plan
1666	pursuant to this chapter. The trustee must be independent from
1667	any developer or managing entity of the timeshare plan or any
1668	interestholder of any accommodation or facility of such plan.
1669	(II) The trust shall be irrevocable so long as any
1670	purchaser has a right to occupy any portion of the timeshare
1671	property pursuant to the timeshare plan.
1672	(III) The trustee shall not convey, hypothecate, mortgage,
1673	assign, lease, or otherwise transfer or encumber in any fashion
1674	any interest in or portion of the timeshare property with
1675	respect to which any purchaser has a right of use or occupancy
1676	unless the timeshare plan is terminated pursuant to the
1677	timeshare instrument, or such conveyance, hypothecation,
1678	mortgage, assignment, lease, transfer, or encumbrance is
1679	approved by a vote of two-thirds of all voting interests of the
1680	timeshare plan and such decision is declared by a court of
1681	competent jurisdiction to be in the best interests of the
1682	purchasers of the timeshare plan. The trustee shall notify the
1683	division in writing within 10 days afterofreceiving notice of
1684	the filing of any petition relating to obtaining such a court
1685	order. The division shall have standing to advise the court of
1686	the division's interpretation of the statute as it relates to
1687	the petition.
1688	(IV) All purchasers of the timeshare plan or the owners'
1689	association of the timeshare plan shall be the express
1690	beneficiaries of the trust. The trustee shall act as a fiduciary
1691	to the beneficiaries of the trust. The personal liability of the
1692	trustee shall be governed by s. 737.306. The agreement
1693	establishing the trust shall set forth the duties of the
1694	trustee. The trustee shall be required to furnish promptly to
1695	the division upon request a copy of the complete list of the
1696	names and addresses of the owners in the timeshare plan and a
1697	copy of any other books and records of the timeshare plan
1698	required to be maintained pursuant to s. 721.13 that are in the
1699	possession, custody, or control of the trustee. All expenses
1700	reasonably incurred by the trustee in the performance of its
1701	duties, together with any reasonable compensation of the
1702	trustee, shall be common expenses of the timeshare plan.
1703	(V) The trustee shall not resign upon less than 90 days'
1704	prior written notice to the managing entity and the division. No
1705	resignation shall become effective until a substitute trustee,
1706	approved by the division, is appointed by the managing entity
1707	and accepts the appointment.
1708	(VI) The documents establishing the trust arrangement
1709	shall constitute a part of the timeshare instrument.
1710	(VII) For trusts holding property in a timeshare plan
1711	located outside this state, the trust and trusteeholding such
1712	property shall be deemed in compliance with the requirements of
1713	this subparagraph if such trust and trustee areis authorized
1714	and qualified to conduct trust business under the laws of such
1715	jurisdiction and the agreement or law governing such trust
1716	arrangement provides substantially similar protections for the
1717	purchaser as are required in this subparagraph for trusts
1718	holding property in a timeshare plan in this state.
1719	(VIII) The trustee shall have appointed a registered agent
1720	in this state for service of process. In the event such a
1721	registered agent is not appointed, service of process may be
1722	served pursuant to s. 721.265.
1723	5. Owners’ association.--
1724	a. If the subject accommodations or facilities, or all use
1725	rights therein, are to be transferred into an owners’
1726	association in order to comply with this paragraph, such
1727	transfer shall take place pursuant to this subparagraph.
1728	b. Prior to the transfer by each interestholder of the
1729	subject accommodations and facilities, or all use rights
1730	therein, to an owners’ association, any lien or other
1731	encumbrance against such accommodations and facilities, or use
1732	rights therein, shall be made subject to a nondisturbance and
1733	notice to creditors instrument pursuant to subsection (3). No
1734	transfer pursuant to this subparagraph shall become effective
1735	until the owners’ association accepts such transfer and the
1736	responsibilities set forth herein. An owners’ association
1737	established pursuant to this subparagraph shall comply with the
1738	following provisions:
1739	(I) The owners’ association shall be a business entity
1740	authorized and qualified to conduct business in this state.
1741	Control of the board of directors of the owners’ association
1742	must be independent from any developer or managing entity of the
1743	timeshare plan or any interestholder.
1744	(II) The articles of incorporation of the owners’
1745	association shall provide that the corporation may not be
1746	voluntarily dissolved without the unanimous vote of all owners
1747	of personal property timeshare interests so long as any
1748	purchaser has a right to occupy any portion of the timeshare
1749	property pursuant to the timeshare plan.
1750	(III) The owners’ association shall not convey,
1751	hypothecate, mortgage, assign, lease, or otherwise transfer or
1752	encumber in any fashion any interest in or portion of the
1753	timeshare property with respect to which any purchaser has a
1754	right of use or occupancy unless the timeshare plan is
1755	terminated pursuant to the timeshare instrument, or such
1756	conveyance, hypothecation, mortgage, assignment, lease,
1757	transfer, or encumbrance is approved by a vote of two-thirds of
1758	all voting interests of the association and such decision is
1759	declared by a court of competent jurisdiction to be in the best
1760	interests of the purchasers of the timeshare plan. The owners’
1761	association shall notify the division in writing within 10 days
1762	after receiving notice of the filing of any petition relating to
1763	obtaining such a court order. The division shall have standing
1764	to advise the court of the division's interpretation of the
1765	statute as it relates to the petition.
1766	(IV) All purchasers of the timeshare plan shall be members
1767	of the owners' association and shall be entitled to vote on
1768	matters requiring a vote of the owners’ association as provided
1769	in this chapter or the timeshare instrument. The owners’
1770	association shall act as a fiduciary to the purchasers of the
1771	timeshare plan. The articles of incorporation establishing the
1772	owners’ association shall set forth the duties of the owners’
1773	association. All expenses reasonably incurred by the owners’
1774	association in the performance of its duties, together with any
1775	reasonable compensation of the officers or directors of the
1776	owners’ association, shall be common expenses of the timeshare
1777	plan.
1778	(V) The documents establishing the owners’ association
1779	shall constitute a part of the timeshare instrument.
1780	(VI) For owners’ associations holding property in a
1781	timeshare plan located outside this state, the owners’
1782	association holding such property shall be deemed in compliance
1783	with the requirements of this subparagraph if such owners’
1784	association is authorized and qualified to conduct owners’
1785	association business under the laws of such jurisdiction and the
1786	agreement or law governing such arrangement provides
1787	substantially similar protections for the purchaser as are
1788	required in this subparagraph for owners’ associations holding
1789	property in a timeshare plan in this state.
1790	(VII) The owners’ association shall have appointed a
1791	registered agent in this state for service of process. In the
1792	event such a registered agent is not appointed, service of
1793	process may be made pursuant to s. 721.265.
1794	6. Personal property subject to certificate of title.--If
1795	any personal property that is an accommodation or facility of a
1796	timeshare plan is subject to a certificate of title in this
1797	state pursuant to chapter 319 or chapter 328, the following
1798	notation must be made on such certificate of title pursuant to
1799	s. 319.27(1) or s. 328.15(1):
1800
1801	The further transfer or encumbrance of the property subject to
1802	this certificate of title, or any lien or encumbrance thereon,
1803	is subject to the requirements of section 721.17, Florida
1804	Statutes, and the transferee or lienor agrees to be bound by all
1805	of the obligations set forth therein.
1806
1807	7.4.If the developer has previously provided a certified
1808	copy of any document required by this paragraph, she or he may
1809	for all subsequent disbursements substitute a true and correct
1810	copy of the certified copy, provided no changes to the document
1811	have been made or are required to be made.
1812	8. In the event that use rights relating to an
1813	accommodation or facility are transferred into a trust pursuant
1814	to subparagraph 4. or into an owners’ association pursuant to
1815	subparagraph 5., all other interestholders, including the owner
1816	of the underlying fee or underlying personal property, must
1817	execute a nondisturbance and notice to creditors instrument
1818	pursuant to subsection (3).
1819	(d) Substitution of other assurances for escrowed funds or
1820	other property.-- Funds or other property escrowed as provided
1821	in this section may be released from escrow to or on the order
1822	of the developer upon acceptance by the director of the division
1823	of other assurances pursuant to subsection (5) as a substitute
1824	for such escrowed funds or other property. The amount of
1825	escrowed funds or other property that may be released pursuant
1826	to this paragraph shall be equal to or less than the face amount
1827	of the assurances accepted by the director from time to time.
1828	(3) NONDISTURBANCE AND NOTICE TO CREDITORS
1829	INSTRUMENT.--The nondisturbance and notice to creditors
1830	instrument, when required, shall be executed by each
1831	interestholder.
1832	(a)The instrument shall state that:
1833	1.(a)If the party seeking enforcement is not in default
1834	of its obligations, the instrument may be enforced by both the
1835	seller and any purchaser of the timeshare plan;
1836	2.(b)The instrument shall be effective as between the
1837	timeshare purchaser and interestholder despite any rejection or
1838	cancellation of the contract between the timeshare purchaser and
1839	developer as a result of bankruptcy proceedings of the
1840	developer; and
1841	3.(c) So long as a purchaser remains in good standing with
1842	respect to her or his obligations under the timeshare
1843	instrument, including making all payments to the managing entity
1844	required by the timeshare instrument with respect to the annual
1845	common expenses of the timesharethe interestholder has any
1846	interest in the accommodations, facilities, or plan, thenthe
1847	interestholder will fully honor all the rights of such purchaser
1848	relating to the subject accommodation or facility as reflected
1849	timeshare purchasers in and to the timeshare instrumentplan,
1850	will honor the purchasers' right to cancel their contracts and
1851	receive appropriate refunds, and will comply with all other
1852	requirements of this chapter and rules promulgated hereunder.
1853
1854	The instrument shall contain language sufficient to provide
1855	subsequent creditors of the developer and interestholders with
1856	notice of the existence of the timeshare plan and of the rights
1857	of purchasers and shall serve to protect the interest of the
1858	timeshare purchasers from any claims of subsequent creditors.
1859	(b) Real property timeshare plans.--For real property
1860	timeshare plans, the instrument shall be recorded in the public
1861	records of the county in which the subject accommodations or
1862	facilities are located.
1863	(c) Personal property timeshare plans.--For personal
1864	property timeshare plans, the instrument shall be included
1865	within or attached as an exhibit to a security agreement or
1866	other agreement executed by the interestholder. Constructive
1867	notice of such security agreement or other agreement shall be
1868	provided in the manner prescribed by chapter 679 or other
1869	applicable law.
1870	(d) A copy of the recordednondisturbance and notice to
1871	creditors instrument, when required, shall be provided to each
1872	timeshare purchaser at the time the purchase contract is
1873	executed.
1874	(4) In lieu of any escrow provisions required by this act,
1875	the director of the division shall have the discretion to permit
1876	deposit of the funds or other property in an escrow account as
1877	required by the jurisdiction in which the sale took place.
1878	(5)(a) In lieu of any escrows required by this section,
1879	the director of the division shall have the discretion to accept
1880	other assurances, including, but not limited to, a surety bond
1881	issued by a company authorized and licensed to do business in
1882	this state as surety or an irrevocable letter of credit in an
1883	amount equal to the escrow requirements of this section.
1884	(b) Notwithstanding anything in chapter 718 or chapter 719
1885	to the contrary, the director of the division shall have the
1886	discretion to accept other assurances pursuant to paragraph (a)
1887	in lieu of any requirement that completion of construction of
1888	one or more accommodations or facilities of a timeshare plan be
1889	accomplished prior to closing.
1890	(c) In lieu of a nondisturbance and notice to creditors
1891	instrument, when such an instrument is otherwise required by
1892	this section, the director of the division shall have the
1893	discretion to accept alternate means of protecting the
1894	continuing rights of purchasers in and to the subject
1895	accommodations or facilities of the timeshare plan as and for
1896	the term described in the timeshare instrument, and of providing
1897	effective constructive notice of such continuing purchaser
1898	rights to subsequent owners of the accommodations or facilities
1899	and to subsequent creditors of the affected interestholder.
1900	(6) An escrow agent holding funds escrowed pursuant to
1901	this section may invest such escrowed funds in securities of the
1902	United States Government, or any agency thereof, or in savings
1903	or time deposits in institutions insured by an agency of the
1904	United States Government. The right to receive the interest
1905	generated by any such investments shall be paid to the party to
1906	whom the escrowed funds or otherproperty are paid unless
1907	otherwise specified by contract.
1908	(7) Each escrow agent shall maintain separate books and
1909	records for each timeshare plan and shall maintain such books
1910	and records in accordance with good accounting practices.
1911	(8) An escrow agent holding escrowed funds pursuant to
1912	this chapter that have not been claimed for a period of 5 years
1913	after the date of deposit shall make at least one reasonable
1914	attempt to deliver such unclaimed funds to the purchaser who
1915	submitted such funds to escrow. In making such attempt, an
1916	escrow agent is entitled to rely on a purchaser's last known
1917	address as set forth in the books and records of the escrow
1918	agent and is not required to conduct any further search for the
1919	purchaser. If an escrow agent's attempt to deliver unclaimed
1920	funds to any purchaser is unsuccessful, the escrow agent may
1921	deliver such unclaimed funds to the division and the division
1922	shall deposit such unclaimed funds in the Division of Florida
1923	Land Sales, Condominiums, and Mobile Homes Trust Fund, 30 days
1924	after giving notice in a publication of general circulation in
1925	the county in which the timeshare property containing the
1926	purchaser's timeshare interest is located. The purchaser may
1927	claim the same at any time prior to the delivery of such funds
1928	to the division. After delivery of such funds to the division,
1929	the purchaser shall have no more rights to the unclaimed funds.
1930	The escrow agent shall not be liable for any claims from any
1931	party arising out of the escrow agent's delivery of the
1932	unclaimed funds to the division pursuant to this section.
1933	(9) For each transfer of the legal title to a timeshare
1934	estate by a developer, the developer shall deliver an instrument
1935	evidencing such transfer to the purchaser or to the clerk of the
1936	court for recording. For each transfer of the legal title to a
1937	personal property timeshare interest by a developer, the
1938	developer shall deliver an instrument evidencing such transfer
1939	to the purchaser subject to the provisions of this section.
1940	(10)(a)Any developer, seller, or escrow agent who
1941	intentionally fails to comply with the provisions of this
1942	section concerning the establishment of an escrow account,
1943	deposits of funds into escrow, and withdrawal therefrom is
1944	guilty of a felony of the third degree, punishable as provided
1945	in s. 775.082, s. 775.083, or s. 775.084, or the successor
1946	thereof. The failure to establish an escrow account or to place
1947	funds therein as required in this section is prima facie
1948	evidence of an intentional and purposeful violation of this
1949	section.
1950	(b) Any developer, interestholder, trustee, or officer or
1951	director of an owners’ association who intentionally fails to
1952	comply with the provisions of this section concerning the
1953	establishment of a trust or owners’ association, conveyances of
1954	property into the trust or owners’ association, and conveyances
1955	or encumbrances of trust or owners’ association property is
1956	guilty of a felony of the third degree, punishable as provided
1957	in s. 775.082, s. 775.083, or s. 775.084, or the successor
1958	thereof. The failure to establish a trust or owners’
1959	association, or to transfer property into the trust or owners’
1960	association, or the failure of a trustee or officer or director
1961	of an owners’ association to comply with the trust agreement,
1962	articles of incorporation, or bylaws with respect to conveyances
1963	or encumbrances of trust or owners’ association property, as
1964	required by this section, is prima facie evidence of an
1965	intentional and purposeful violation of this section.
1966	Section 9. Paragraph (a) of subsection (1) of section
1967	721.09, Florida Statutes, is amended to read:
1968	721.09 Reservation agreements; escrows.--
1969	(1)(a) Prior to filing the filedregisteredpublic
1970	offering statement with the division, a seller shall not offer a
1971	timeshare plan for sale but may accept reservation deposits and
1972	advertise the reservation deposit program upon approval by the
1973	division of a fully executed escrow agreement and reservation
1974	agreement properly filed with the division.
1975	Section 10. Paragraph (a) of subsection (1), paragraph (e)
1976	of subsection (6), and subsections (7), (8), and (9) of section
1977	721.11, Florida Statutes, are amended to read:
1978	721.11 Advertising materials; oral statements.--
1979	(1)(a) A developer may fileAll advertising material must
1980	be filed with the division for reviewby the developer prior to
1981	use. At the request of the developer, The division shall review
1982	anythe advertising material filed for review by the developer
1983	and notify the developer of any deficiencies within 10 days
1984	after the filing. If the developer corrects the deficiencies or
1985	if there are no deficiencies, the division shall notify the
1986	developer of its approval of the advertising materials.
1987	Notwithstanding anything to the contrary contained in this
1988	subsection, so long as the developer uses advertising materials
1989	approved by the division, following the developer's request for
1990	a review, the developer shall not be liable for any violation of
1991	this section or s. 721.111 with respect to such advertising
1992	materials.
1993	(6) Failure to provide cancellation rights or disclosures
1994	as required by this subsection in connection with the sale of a
1995	regulated short-term product constitutes misrepresentation in
1996	accordance with paragraph (4)(a). Any agreement relating to the
1997	sale of a regulated short-term product must be regulated as
1998	advertising material and is subject to the following:
1999	(e) If the seller provides the purchaser with the right to
2000	cancel the purchase of a regulated short-term product at any
2001	time up to 7 days prior to the purchaser's reserved use of the
2002	accommodations, but in no event less than 10 days, and if the
2003	seller refunds the total amount of all payments made by the
2004	purchaser reduced by the proportion of any benefits the
2005	purchaser has actually received prior to the effective date of
2006	the cancellation, the specific value of which has been agreed to
2007	between the purchaser and the seller, the short-term product
2008	offer shall be exempt from the requirements of paragraphs (b),
2009	(c), and (d). An agreement relating to the sale of the regulated
2010	short-term product made pursuant to this paragraph must contain
2011	a statement setting forth the cancellation and refund rights of
2012	the prospective purchaser in a manner that is consistent with
2013	this section and s. 721.10, including a description of the
2014	length of the cancellation right, a statement that the
2015	purchaser's intent to cancel must be in writing and sent to the
2016	seller at a specified address, a statement that the notice of
2017	cancellation is effective upon the date sent, and a statement
2018	that any attempt to waive the cancellation right is unlawful.
2019	The right of cancellation provided to the purchaser pursuant to
2020	this paragraph may not be waived by the prospective purchaser or
2021	by any other person on behalf of the prospective purchaser.
2022	Notice of cancellation must be given in the same manner
2023	prescribed for giving notice of cancellation pursuant to s.
2024	721.10(2). If the prospective purchaser gives a valid notice of
2025	cancellation, or is otherwise entitled to cancel the sale, the
2026	funds or otherproperty received from or on behalf of the
2027	prospective purchaser, or the proceeds thereof, shall be
2028	returned to the prospective purchaser. Such refund shall be made
2029	in the manner prescribed for refunds under s. 721.10.
2030	(7) Notwithstanding the provisions of s. 721.05(7)(6)(b),
2031	a seller may portray possible accommodations or facilities to
2032	prospective purchasers in advertising material, or a purchaser
2033	public offering statement, without such accommodations or
2034	facilities being available for use by purchasers so long as the
2035	advertising material or purchaser public offering statement
2036	complies with the provisions of subsection (4).
2037	(8) Notwithstanding the provisions of s. 721.05(7)(6)(b),
2038	a developer may portray possible accommodations or facilities to
2039	prospective purchasers by disseminating oral or written
2040	statements regarding same to broadcast or print media with no
2041	obligation on the developer's part to actually construct such
2042	accommodations or facilities or to file such accommodations or
2043	facilities with the division, but only so long as such oral or
2044	written statements are not considered advertising material
2045	pursuant to paragraph (3)(e).
2046	(9) Notwithstanding the provisions of s. 721.05(7)(6)(b),
2047	a seller of a multisite timeshare plan may portray a possible
2048	component site to prospective purchasers with no accommodations
2049	or facilities located at such component site being available for
2050	use by purchasers so long as the seller satisfies the following
2051	requirements:
2052	(a) A developer of a multisite timeshare plan may
2053	disseminate oral or written statements to broadcast or print
2054	media describing a possible component site with no obligation on
2055	the developer's part to actually add such component site to the
2056	multisite timeshare plan or to amend the developer's filing with
2057	the division, but only so long as such oral or written
2058	statements are not considered advertising material pursuant to
2059	paragraph (3)(e).
2060	(b) A seller may make representations to purchasers in
2061	advertising material or in a purchaser public offering statement
2062	regarding the possible accommodations and facilities of a
2063	possible component site without such accommodations or
2064	facilities being available for use by purchasers so long as the
2065	advertising material or purchaser public offering statement
2066	complies with the provisions of subsection (4).
2067	(c) In the event a seller makes any of the representations
2068	permitted by paragraph (b), the purchase agreement must contain
2069	the following conspicuous disclosure unless and until such time
2070	as the developer has committed itself in the timeshare
2071	instrument to adding the possible component site to the
2072	multisite timeshare plan, at which time the seller may portray
2073	the component site pursuant to the timeshare instrument without
2074	restriction:
2075
2076	[Description of possible component site] is only a possible
2077	component site which may never be added to the multisite
2078	timeshare plan (or multisite vacation ownership plan or
2079	multisite vacation plan or vacation club). Do not purchase an
2080	interest in the multisite timeshare plan (or multisite vacation
2081	ownership plan or multisite vacation plan or vacation club) in
2082	reliance upon the addition of this component site.
2083	(d) Notwithstanding anything contained in this chapter to
2084	the contrary, a developer or managing entity may communicate
2085	with existing purchasers regarding possible component sites
2086	without restriction, so long as all oral and written statements
2087	made to existing purchasers pursuant to this subsection comply
2088	with the provisions of subsection (4).
2089	(e) Any violation of this subsection by a developer,
2090	seller, or managing entity shall constitute a violation of this
2091	chapter. Any violation of this subsection with respect to a
2092	purchaser whose purchase has not yet closed shall be deemed to
2093	provide that purchaser with a new 10-day voidability period.
2094	Section 11. Subsection (1) of section 721.12, Florida
2095	Statutes, is amended to read:
2096	721.12 Recordkeeping by seller.--Each seller of a
2097	timeshare plan shall maintain among its business records the
2098	following:
2099	(1) A copy of each contract for the sale of a timeshare
2100	interest, which contract has not been canceled. If a timeshare
2101	estate is being sold, the seller is required to retain a copy of
2102	the contract only until a deed of conveyance, agreement for
2103	deed, or lease is recorded in the office of the clerk of the
2104	circuit court in the county wherein the plan is located. If a
2105	personal property timeshare plan is being sold, the seller is
2106	required to retain a copy of the contract only until a
2107	certificate of transfer, agreement for transfer, lease, or other
2108	instrument of transfer that fully complies with s. 721.08 is
2109	delivered to the purchaser.
2110	Section 12. Paragraphs (a) and (b) of subsection (1),
2111	paragraph (b) of subsection (2), paragraphs (c), (d), and (e) of
2112	subsection (3), paragraph (g) of subsection (6), and subsections
2113	(4) and (8) of section 721.13, Florida Statutes, are amended,
2114	subsection (9) is renumbered as subsection (10), and new
2115	subsections (9) and (11) are added to said section, to read:
2116	721.13 Management.--
2117	(1)(a) For each timeshare plan, the developer shall
2118	provide for a managing entity, which shall be either the
2119	developer, a separate manager or management firm, or an owners'
2120	association. Any owners' association shall be created prior to
2121	the first closingrecording of the timeshare interest
2122	instrument.
2123	(b)1. With respect to a timeshare plan which is also
2124	regulated under chapter 718 or chapter 719, or which contains a
2125	mandatory owners' association, the board of administration of
2126	the owners'association shall be considered the managing entity
2127	of the timeshare plan.
2128	2. During any period of time in which such association has
2129	entered into a contract with a manager or management firm to
2130	provide some or all of the management services to the timeshare
2131	plan, both the board of administration and the manager or
2132	management firm shall be considered the managing entity of the
2133	timeshare plan and shall be jointly and severally responsible
2134	for the faithful discharge of the duties of the managing entity.
2135	3. An owners' association which is the managing entity of
2136	a timeshare plan that includes condominium units or cooperative
2137	units shall not be considered a condominium association pursuant
2138	to the provisions of chapter 718 or a cooperative association
2139	pursuant to the provisions of chapter 719, unless such owners'
2140	association also operates the entire condominium pursuant to s.
2141	718.111 or the entire cooperative pursuant to s. 719.104.
2142	(2)
2143	(b) The managing entity shall invest the operating and
2144	reserve funds of the timeshare plan in accordance with s.
2145	518.11(1); however, the managing entity shall give safety of
2146	capital greater weight than production of income. In no event
2147	shall the managing entity invest timeshare plan funds with a
2148	developer or with any entity that is not independent of any
2149	developer or any managing entity within the meaning of s.
2150	721.05(20)(18), and in no event shall the managing entity
2151	invest timeshare plan funds in notes and mortgages related in
2152	any way to the timeshare plan.
2153	(3) The duties of the managing entity include, but are not
2154	limited to:
2155	(c)1. Providing each year to all purchasers an itemized
2156	annual budget which shall include all estimated revenues and
2157	expenses. The budget shall be in the form required by s.
2158	721.07(5)(u). The budgetandshall be the final budget adopted
2159	by the managing entity for the current fiscal year. The final
2160	adopted budget is not required to be delivered if the managing
2161	entity has previously delivered a proposed annual budget for the
2162	current fiscal year to purchasers in accordance with chapter 718
2163	or chapter 719, and the managing entity includes a description
2164	of any changes in the adopted budget with the assessment notice
2165	and a disclosure regarding the purchasers’ right to receive a
2166	copy of the adopted budget if desired.The budget shall contain,
2167	as a footnote or otherwise, any related party transaction
2168	disclosures or notes which appear in the audited financial
2169	statements of the managing entity for the previous budget year
2170	as required by paragraph (e). A copy of the final budget shall
2171	be filed with the division for reviewwithin 30 days after the
2172	beginning of each fiscal year together with a statement of the
2173	number of periods of 7-day annual use availability that exist
2174	within the timeshare plan, including those periods filed for
2175	sale by the developer but not yet committed to the timeshare
2176	plan, for which annual fees are required to be paid to the
2177	division under s. 721.27.
2178	2. Notwithstanding anything contained in chapter 718 or
2179	chapter 719 to the contrary, the board of administration of an
2180	owners' association which serves as the managing entity may from
2181	time to time reallocate reserves for deferred maintenance and
2182	capital expenditures required by s. 721.07(5)(u)3.a.(XI) from
2183	any deferred maintenance or capital expenditure reserve account
2184	to any other deferred maintenance or capital expenditure reserve
2185	account or accounts in its discretion without the consent of
2186	purchasers of the timeshare plan. Funds in any deferred
2187	maintenance or capital expenditure reserve account may not be
2188	transferred to any operating account without the consent of a
2189	majority of the purchasers of the timeshare plan. The managing
2190	entity may from time to time transfer excess funds in any
2191	operating account to any deferred maintenance or capital
2192	expenditure reserve account without the vote or approval of
2193	purchasers of the timeshare plan. In the event any amount of
2194	reserves for accommodations and facilities of a timeshare plan
2195	containing timeshare licenses exists at the end of the term of
2196	the timeshare plan, such reserves shall be refunded to
2197	purchasers on a pro rata basis.
2198	(d)1. Maintenance of all books and records concerning the
2199	timeshare plan so that all such books and records are reasonably
2200	available for inspection by any purchaser or the authorized
2201	agent of such purchaser. For purposes of this subparagraph, the
2202	books and records of the timeshare plan shall be considered
2203	"reasonably available" if copies of the requested portions are
2204	delivered to the purchaser or the purchaser's agent within 7
2205	days of the date the managing entity receives a written request
2206	for the records signed by the purchaser. The managing entity may
2207	charge the purchaser a reasonable fee for copying the requested
2208	information not to exceed 25 cents per page. However, any
2209	purchaser or agent of such purchaser shall be permitted to
2210	personally inspect and examine the books and records wherever
2211	located at any reasonable time, under reasonable conditions, and
2212	under the supervision of the custodian of those records. The
2213	custodian shall supply copies of the records where requested and
2214	upon payment of the copying fee. No fees other than those set
2215	forth in this section may be charged for the providing of,
2216	inspection, or examination of books and records. All books and
2217	financial records of the timeshare plan must be maintained in
2218	accordance with generally accepted accounting practices.
2219	2. If the books and records of the timeshare plan are not
2220	maintained on the premises of the accommodations and facilities
2221	of the timeshare plan, the managing entity shall inform the
2222	division in writing of the location of the books and records and
2223	the name and address of the person who acts as custodian of the
2224	books and records at that location. In the event that the
2225	location of the books and records changes, the managing entity
2226	shall notify the division of the change in location and the name
2227	and address of the new custodian within 30 days after ofthe
2228	date the books and records are moved. The purchasers shall be
2229	notified of the location of the books and records and the name
2230	and address of the custodian in the copy of the annual budget
2231	provided to them pursuant to paragraph (c).
2232	3. The division is authorized to adopt rules which specify
2233	those items and matters that shall be included in the books and
2234	records of the timeshare plan and which specify procedures to be
2235	followed in requesting and delivering copies of the books and
2236	records.
2237	4. Notwithstanding any provision of chapter 718 or chapter
2238	719 to the contrary, the managing entity may not furnish the
2239	name, address, or electronic mailaddress of any purchaser to
2240	any other purchaser or authorized agent thereof unless the
2241	purchaser whose name, and address, or electronic address isare
2242	requested first approves the disclosure in writing.
2243	(e) Arranging for an annual audit of the financial
2244	statements of the timeshare plan by a certified public
2245	accountant licensed by the Board of Accountancy of the
2246	Department of Business and Professional Regulation, in
2247	accordance with generally accepted auditing standards as defined
2248	by the rules of the Board of Accountancy of the Department of
2249	Business and Professional Regulation. The financial statements
2250	required by this section must be prepared on an accrual basis
2251	using fund accounting, and must be presented in accordance with
2252	generally accepted accounting principles. A copy of the audited
2253	financial statements must be filed with the division for review
2254	and forwarded to the board of directors and officers of the
2255	owners' association, if one exists, no later than 5 calendar
2256	months after the end of the timeshare plan's fiscal year. If no
2257	owners' association exists, each purchaser must be notified, no
2258	later than 5 months after the end of the timeshare plan's fiscal
2259	year, that a copy of the audited financial statements is
2260	available upon request to the managing entity. Notwithstanding
2261	any requirement of s. 718.111(13) or s. 719.104(4), the audited
2262	financial statements required by this section are the only
2263	annual financial reporting requirements for timeshare
2264	condominiums or timeshare cooperatives.
2265	(4) The managing entity shall maintain among its records
2266	and provide to the division upon request a complete list of the
2267	names and addresses of all purchasers and owners of timeshare
2268	units in the timeshare plan. The managing entity shall update
2269	this list no less frequently than quarterly. Pursuant to
2270	paragraph (3)(d), the managing entity may not publish this
2271	owner's list or provide a copy of it to any purchaser or to any
2272	third party other than the division. However, the managing
2273	entity shall to those persons listed on the owner's list
2274	materials provided by any purchaser, upon the written request of
2275	that purchaser, if the purpose of the mailing is to advance
2276	legitimate owners'association business, such as a proxy
2277	solicitation for any purpose, including the recall of one or
2278	more board members elected by the owners or the discharge of the
2279	manager or management firm. The use of any proxies solicited in
2280	this manner must comply with the provisions of the timeshare
2281	instrument and this chapter. A mailing requested for the purpose
2282	of advancing legitimate owners'association business shall occur
2283	within 30 days after receipt of a request from a purchaser. The
2284	board of administration of the association shall be responsible
2285	for determining the appropriateness of any mailing requested
2286	pursuant to this subsection. The purchaser who requests the
2287	mailing must reimburse the owners'association in advance for
2288	the owners'association's actual costs in performing the
2289	mailing. It shall be a violation of this chapter and, if
2290	applicable, of part VIII of chapter 468, for the board of
2291	administration or the manager or management firm to refuse to
2292	mail any material requested by the purchaser to be mailed,
2293	provided the sole purpose of the materials is to advance
2294	legitimate owners' association business. If the purpose of the
2295	mailing is a proxy solicitation to recall one or more board
2296	members elected by the owners or to discharge the manager or
2297	management firm and the managing entity does not mail the
2298	materials within 30 days after receipt of a request from a
2299	purchaser, the circuit court in the county where the timeshare
2300	plan is located may, upon application from the requesting
2301	purchaser, summarily order the mailing of the materials solely
2302	related to the recall of one or more board members elected by
2303	the owners or the discharge of the manager or management firm.
2304	The court shall dispose of an application on an expedited basis.
2305	In the event of such an order, the court may order the managing
2306	entity to pay the purchaser's costs, including attorney's fees
2307	reasonably incurred to enforce the purchaser's rights, unless
2308	the managing entity can prove it refused the mailing in good
2309	faith because of a reasonable basis for doubt about the
2310	legitimacy of the mailing.
2311	(6)
2312	(g) A managing entity shall have breached its fiduciary
2313	duty described in subsection (2) in the event it enforces the
2314	denial of use pursuant to paragraph (b) against any one
2315	purchaser or group of purchasers without similarly enforcing it
2316	against all purchasers, including all developers and owners of
2317	the underlying fee or underlying personal property; however, a
2318	managing entity shall not be required to solicit rentals
2319	pursuant to paragraph (f) for every delinquent purchaser. A
2320	managing entity shall also have breached its fiduciary duty in
2321	the event an error in the books and records of the timeshare
2322	plan results in a denial of use pursuant to this subsection of
2323	any purchaser who is not, in fact, delinquent. In addition to
2324	any remedies otherwise available to purchasers of the timeshare
2325	plan arising from such breaches of fiduciary duty, such breach
2326	shall also constitute a violation of this chapter. In addition,
2327	any purchaser receiving a notice of delinquency pursuant to
2328	paragraph (b), or any third party claiming under such purchaser
2329	pursuant to paragraph (b), may immediately bring an action for
2330	injunctive or declaratory relief against the managing entity
2331	seeking to have the notice invalidated on the grounds that the
2332	purchaser is not, in fact, delinquent, that the managing entity
2333	failed to follow the procedures prescribed by this section, or
2334	on any other available grounds. The prevailing party in any such
2335	action shall be entitled to recover his or her reasonable
2336	attorney's fees from the losing party.
2337	(8) Notwithstanding anything to the contrary in s.
2338	718.110, s. 718.113, s. 718.114, or s. 719.1055, the board of
2339	administration of any owners' association that operates a
2340	timeshare condominium pursuant to s. 718.111, or a timeshare
2341	cooperative pursuant to s. 719.104, shall have the power to make
2342	material alterations or substantial additions to the
2343	accommodations or facilities of such timeshare condominium or
2344	timeshare cooperative without the approval of the owners'
2345	association. However, if the timeshare condominium or timeshare
2346	cooperative contains any residential units that are not subject
2347	to the timeshare plan, such action by the board of
2348	administration must be approved by a majority of the owners of
2349	such residential units. Unless otherwise provided in the
2350	timeshare instrument as originally recorded, no such amendment
2351	may change the configuration or size of any accommodation in any
2352	material fashion, or change the proportion or percentage by
2353	which a member of the association shares the common expenses,
2354	unless the record owners of the affected units or timeshare
2355	interests and all record owners of liens on the affected units
2356	or timeshare interests join in the execution of the amendment.
2357	(9) All notices or other information sent by a board of
2358	administration of an owners’ association may be delivered to a
2359	purchaser by electronic mail, provided that the purchaser first
2360	consents electronically to the use of electronic mail for notice
2361	purposes in a manner that reasonably demonstrates that the
2362	purchaser has the ability to access the notice by electronic
2363	mail. Proxies or written consents on votes of any owners’
2364	association may be received by electronic mail, shall have legal
2365	effect, and may be utilized for votes of an owners’ association,
2366	provided that the electronic signature is authenticated through
2367	use of a password, cryptography software, or other reasonable
2368	means and that proof of such authentication is made available to
2369	the board of directors.
2370	(10)(9)Any failure of the managing entity to faithfully
2371	discharge the fiduciary duty to purchasers imposed by this
2372	section or to otherwise comply with the provisions of this
2373	section shall be a violation of this chapter and of part VIII of
2374	chapter 468.
2375	(11) Notwithstanding the other provisions of this section,
2376	personal property timeshare plans are only subject to the
2377	provisions of subsections (1)(a)-(d), (2)(a), (3)(a)-(h), (5),
2378	(6), (9), and (10).
2379	Section 13. Subsection (4) is added to section 721.14,
2380	Florida Statutes, to read:
2381	721.14 Discharge of managing entity.--
2382	(4) This section shall not apply to personal property
2383	timeshare plans.
2384	Section 14. Paragraph (c) of subsection (2) and subsection
2385	(7) of section 721.15, Florida Statutes, are amended, and
2386	subsection (10) is added to said section, to read:
2387	721.15 Assessments for common expenses.--
2388	(2)
2389	(c) For the purpose of calculating the obligation of a
2390	developer under a guarantee pursuant to paragraph (b),
2391	depreciation expenses related to real property shall be excluded
2392	from common expenses incurred during the guarantee period,
2393	except that for real property that is used for the production of
2394	fees, revenues, or other income, depreciation expenses shall be
2395	excluded only to the extent that they exceed the net income from
2396	the production of such fees, revenues, or other income.
2397	(7) A purchaser, regardless of how her or his timeshare
2398	estate,or timeshare license, or personal property timeshare
2399	interesthas been acquired, including a purchaser at a judicial
2400	sale, is personally liable for all assessments for common
2401	expenses which come due while the purchaser is the owner of such
2402	interest. A successor in interest is jointly and severally
2403	liable with her or his predecessor in interest for all unpaid
2404	assessments against such predecessor up to the time of transfer
2405	of the timeshare interest to such successor without prejudice to
2406	any right a successor in interest may have to recover from her
2407	or his predecessor in interest any amounts assessed against such
2408	predecessor and paid by such successor. The predecessor in
2409	interest shall provide the managing entity with a copy of the
2410	recorded deed of conveyance if the interest is a timeshare
2411	estate or a copy of the instrument of transfer if the interest
2412	is a timeshare license or personal property timeshare interest,
2413	containing the name and mailing address of the successor in
2414	interest within 15 days after the date of transfer. The managing
2415	entity shall not be liable to any person for any inaccuracy in
2416	the books and records of the timeshare plan arising from the
2417	failure of the predecessor in interest to timely and correctly
2418	notify the managing entity of the name and mailing address of
2419	the successor in interest.
2420	(10) This section shall not apply to personal property
2421	timeshare plans.
2422	Section 15. Subsection (6) is added to section 721.16,
2423	Florida Statutes, to read:
2424	721.16 Liens for overdue assessments; liens for labor
2425	performed on, or materials furnished to, a timeshare unit.--
2426	(6) This section shall not apply to personal property
2427	timeshare plans.
2428	Section 16. Section 721.17, Florida Statutes, is amended
2429	to read:
2430	721.17 Transfer of interest.--Except in the case of a
2431	timeshare plan subject to the provisions of chapter 718 or
2432	chapter 719, no developer, or owner of the underlying fee, or
2433	owner of the underlying personal propertyshall sell, lease,
2434	assign, mortgage, or otherwise transfer his or her interest in
2435	the accommodations and facilities of the timeshare plan except
2436	by an instrument evidencing the transfer recorded in the public
2437	records of the county in which such accommodations and
2438	facilities are located or, with respect to personal property
2439	timeshare plans, in full compliance with s. 721.08. The
2440	instrument shall be executed by both the transferor and
2441	transferee and shall state:
2442	(1) That its provisions are intended to protect the rights
2443	of all purchasers of the plan.
2444	(2) That its terms may be enforced by any prior or
2445	subsequent timeshare purchaser so long as that purchaser is not
2446	in default of his or her obligations.
2447	(3) That so long as a purchaser remains in good standing
2448	with respect to her or his obligations under the timeshare
2449	instrument, including making all payments to the managing entity
2450	required by the timeshare instrument with respect to the annual
2451	common expenses of the timeshare plan, the transferee shallwill
2452	fully honor allthe rights of such purchaser relating to the
2453	subject accommodation or facility as reflectedthe purchasers to
2454	occupy and usethe accommodations and facilities as provided in
2455	their original contracts and the timeshare instrument
2456	instruments.
2457	(4) That the transferee will fully honor all rights of
2458	timeshare purchasers to cancel their contracts and receive
2459	appropriate refunds.
2460	(5) That the obligations of the transferee under such
2461	instrument will continue to exist despite any cancellation or
2462	rejection of the contracts between the developer and purchaser
2463	arising out of bankruptcy proceedings.
2464
2465	Should any transfer of the interest of the developer,orowner
2466	of the underlying fee, or owner of the underlying propertyoccur
2467	in a manner which is not in compliance with this section, the
2468	terms set forth in this section shall be presumed to be a part
2469	of the transfer and shall be deemed to be included in the
2470	instrument of transfer. Notice shall be mailed to each purchaser
2471	of record within 30 days afterofthe transfer unless such
2472	transfer does not affect the purchaser's rights in or use of the
2473	timeshare plan. Persons who hold mortgages or lienson the
2474	property constituting a timeshare plan before the filed
2475	registeredpublic offering statement of such plan is approved by
2476	the division shall not be considered transferees for the
2477	purposes of this section.
2478	Section 17. Section 721.18, Florida Statutes, is amended
2479	to read:
2480	721.18 Exchange programs; filing of information and other
2481	materials; filing fees; unlawful acts in connection with an
2482	exchange program.--
2483	(1) If a purchaser is offered the opportunity to subscribe
2484	to an exchange program, the seller shall deliver to the
2485	purchaser, together with the purchaser public offering
2486	statement, and prior to the offering or execution of any
2487	contract between the purchaser and the company offering the
2488	exchange program, written information regarding such exchange
2489	program; or, if the exchange company is dealing directly with
2490	the purchaser, the exchange company shall deliver to the
2491	purchaser, prior to the initial offering or execution of any
2492	contract between the purchaser and the company offering the
2493	exchange program, written information regarding such exchange
2494	program. In either case, the purchaser shall certify in writing
2495	to the receipt of such information. Such information shall
2496	include, but is not limited to, the following information, the
2497	form and substance of which shall first be approved by the
2498	division in accordance with subsection (2):
2499	(a) The name and address of the exchange company.
2500	(b) The names of all officers, directors, and shareholders
2501	of the exchange company.
2502	(c) Whether the exchange company or any of its officers or
2503	directors has any legal or beneficial interest in any developer,
2504	seller, or managing entity for any timeshare plan participating
2505	in the exchange program and, if so, the name and location of the
2506	timeshare plan and the nature of the interest.
2507	(d) Unless otherwise stated, a statement that the
2508	purchaser's contract with the exchange company is a contract
2509	separate and distinct from the purchaser's contract with the
2510	seller of the timeshare plan.
2511	(e) Whether the purchaser's participation in the exchange
2512	program is dependent upon the continued affiliation of the
2513	timeshare plan with the exchange program.
2514	(f) A statement thatWhetherthe purchaser's participation
2515	in the exchange program is voluntary. This statement is not
2516	required to be given by the managing entity of a multisite
2517	timeshare plan to purchasers in the multisite timeshare plan.
2518	(g) A complete and accurate description of the terms and
2519	conditions of the purchaser's contractual relationship with the
2520	exchange program and the procedure by which changes thereto may
2521	be made.
2522	(h) A complete and accurate description of the procedure
2523	to qualify for and effectuate exchanges.
2524	(i) A complete and accurate description of all
2525	limitations, restrictions, or priorities employed in the
2526	operation of the exchange program, including, but not limited
2527	to, limitations on exchanges based on seasonality, timeshare
2528	unit size, or levels of occupancy, expressed in boldfaced type,
2529	and, in the event that such limitations, restrictions, or
2530	priorities are not uniformly applied by the exchange program, a
2531	clear description of the manner in which they are applied.
2532	(j) Whether exchanges are arranged on a space-available
2533	basis and whether any guarantees of fulfillment of specific
2534	requests for exchanges are made by the exchange program.
2535	(k) Whether and under what circumstances a purchaser, in
2536	dealing with the exchange program, may lose the use and
2537	occupancy of her or his timeshare period in any properly applied
2538	for exchange without her or his being provided with substitute
2539	accommodations by the exchange program.
2540	(l) The fees or range of fees for membership or
2541	participation by purchasers in the exchange program by
2542	purchasers, including any conversion or other fees payable to
2543	third parties, a statement whether any such fees may be altered
2544	by the exchange company, and the circumstances under which
2545	alterations may be made.
2546	(m) The name and address of the site of each accommodation
2547	or facility included in the timeshareplanplansparticipating
2548	in the exchange program.
2549	(n) The number of the timeshare units in each timeshare
2550	plan which are available for occupancy and which qualify for
2551	participation in the exchange program, expressed within the
2552	following numerical groupings: 1-5; 6-10; 11-20; 21-50; and 51
2553	and over.
2554	(o) The number of currently enrolled purchasers for each
2555	timeshare plan participating in the exchange program, expressed
2556	within the following numerical groupings: 1-100; 101-249; 250-
2557	499; 500-999; and 1,000 and over; and a statement of the
2558	criteria used to determine those purchasers who are currently
2559	enrolled with the exchange program.
2560	(p) The disposition made by the exchange company of
2561	timeshare periods deposited with the exchange program by
2562	purchasers enrolled in the exchange program and not used by the
2563	exchange company in effecting exchanges.
2564	(q) The following information, which shall be
2565	independently audited by a certified public accountant or
2566	accounting firm in accordance with the standards of the
2567	Accounting Standards Board of the American Institute of
2568	Certified Public Accountants and reported annually beginning no
2569	later than July 1, 1982:
2570	1. The number of purchasers currently enrolled in the
2571	exchange program.
2572	2. The number of accommodations and facilities that have
2573	current writtenaffiliation agreements with the exchange
2574	program.
2575	3. The percentage of confirmed exchanges, which is the
2576	number of exchanges confirmed by the exchange program divided by
2577	the number of exchanges properly applied for, together with a
2578	complete and accurate statement of the criteria used to
2579	determine whether an exchange request was properly applied for.
2580	4. The number of timeshare periods for which the exchange
2581	program has an outstanding obligation to provide an exchange to
2582	a purchaser who relinquished a timeshare period during the year
2583	in exchange for a timeshare period in any future year.
2584	5. The number of exchanges confirmed by the exchange
2585	program during the year.
2586	(r) A statement in boldfaced type to the effect that the
2587	percentage described in subparagraph (q)3. is a summary of the
2588	exchange requests entered with the exchange program in the
2589	period reported and that the percentage does not indicate the
2590	probabilities of a purchaser's being confirmed to any specific
2591	choice or range of choices.
2592	(2) Each exchange company offering an exchange program to
2593	purchasers in this state shall file with the division for review
2594	the information specified in subsection (1), together with any
2595	membership agreement and application between the purchaser and
2596	the exchange company,and the audit specified in subsection (1)
2597	on or before June 1 of each year. However, an exchange company
2598	shall make its initial filing at least 20 days prior to offering
2599	an exchange program to any purchaser in this state. Each filing
2600	shall be accompanied by an annual filing fee of $500. Within 20
2601	days afterofreceipt of such filing, the division shall
2602	determine whether the filing is adequate to meet the
2603	requirements of this section and shall notify the exchange
2604	company in writing that the division has either approved the
2605	filing or found specified deficiencies in the filing. If the
2606	division fails to respond within 20 days, the filing shall be
2607	deemed approved. The exchange company may correct the
2608	deficiencies; and, within 10 days after receipt of corrections
2609	from the exchange company, the division shall notify the
2610	exchange company in writing that the division has either
2611	approved the filing or found additional specified deficiencies
2612	in the filing. If the exchange company fails to adequately
2613	respond to any deficiency notice within 10 days, the division
2614	may reject the filing. Subsequent to such rejection, a new
2615	filing fee and a new division initial review period pursuant to
2616	this subsection shall apply to any refiling or further review of
2617	the rejected filing.
2618	(a) Any material change to an approved exchange company
2619	filing shall be filed with the division for approval as an
2620	amendment prior to becoming effective. Each amendment filing
2621	shall be accompanied by a filing fee of $100. The exchange
2622	company may correct the deficiencies; and, within 10 days after
2623	receipt of corrections from the exchange company, the division
2624	shall notify the exchange company in writing that the division
2625	has either approved the filing or found additional specified
2626	deficiencies in the filing. Each approved amendment to the
2627	approved exchange company filing, other than an amendment that
2628	does not materially alter or modify the exchange program in a
2629	manner that is adverse to a purchaser, as determined by the
2630	exchange company in its reasonable discretion, shall be
2631	delivered to each purchaser who has not closed. An approved
2632	exchange program filing is required to be updated with respect
2633	to added or deleted resorts only once each year, and such annual
2634	update shall not be deemed to be a material change to the
2635	filing.
2636	(b) If at any time the division determines that any of
2637	such information supplied by an exchange company fails to meet
2638	the requirements of this section, the division may undertake
2639	enforcement action against the exchange company in accordance
2640	with the provision of s. 721.26.
2641	(3) No developer shall have any liability with respect to
2642	any violation of this chapter arising out of the publication by
2643	the developer of information provided to it by an exchange
2644	company pursuant to this section. No exchange company shall have
2645	any liability with respect to any violation of this chapter
2646	arising out of the use by a developer of information relating to
2647	an exchange program other than that provided to the developer by
2648	the exchange company.
2649	(4) At the request of the exchange company, the division
2650	shall review anyaudio, written, or visual publications or
2651	materials relating to an exchange company or an exchange program
2652	shall be filed for review by the exchange company and shall
2653	notify the exchange company of any deficiencies within 10with
2654	the division within 3 days after the filingof their use. If the
2655	exchange company corrects the deficiencies or if there are no
2656	deficiencies, the division shall notify the exchange company of
2657	its approval of the advertising materials. If the exchange
2658	company fails to adequately respond to any deficiency notice
2659	within 10 days, the division may reject the advertising
2660	materials. Subsequent to such rejection, a new division initial
2661	review period pursuant to this subsection shall apply to any
2662	refiling or further review.
2663	(5) The failure of an exchange company to observe the
2664	requirements of this section, or the use of any unfair or
2665	deceptive act or practice in connection with the operation of an
2666	exchange program, is a violation of this chapter.
2667	Section 18. Section 721.19, Florida Statutes, is amended
2668	to read:
2669	721.19 Provisions requiring purchase or lease of timeshare
2670	property by owners' association or purchasers; validity.--In any
2671	timeshare plan in which timeshare estates or personal property
2672	timeshare interestsare sold, no grant or reservation made by a
2673	declaration, lease, or other document, nor any contract made by
2674	the developer, managing entity, or owners' association, which
2675	requires the owners' association or purchasers to purchase or
2676	lease any portion of the timeshare property shall be valid
2677	unless approved by a majority of the purchasers other than the
2678	developer, after more than 50 percent of the timeshare periods
2679	have been sold.
2680	Section 19. Section 721.20, Florida Statutes, is amended
2681	to read:
2682	721.20 Licensing requirements; suspension or revocation of
2683	license; exceptions to applicability; collection of advance fees
2684	for listings unlawful.--
2685	(1) Any seller of a timeshare plan must be a licensed real
2686	estate salesperson, broker, or broker-salesperson as defined in
2687	s. 475.01, except as provided in s. 475.011.
2688	(2) Solicitors who engage only in the solicitation of
2689	prospective purchasers and any purchaser who refers no more than
2690	20 people to a developer per year or who otherwise provides
2691	testimonials on behalf of a developer are exempt from the
2692	provisions of chapter 475.
2693	(3) A solicitor who has violated the provisions of chapter
2694	468, chapter 718, chapter 719, this chapter, or the rules of the
2695	division governing timesharing shall be subject to the
2696	provisions of s. 721.26. Any developer or other person who
2697	supervises, directs, or engages the services of a solicitor
2698	shall be liable for any violation of the provisions of chapter
2699	468, chapter 718, chapter 719, this chapter, or the rules of the
2700	division governing timesharing committed by such solicitor.
2701	(4) County and municipal governments shall have the
2702	authority to adopt codes of conduct and regulations to govern
2703	solicitor activity conducted on public property, including
2704	providing for the imposition of penalties prescribed by a
2705	schedule of fines adopted by ordinance for violations of any
2706	such code of conduct or regulation. Any violation of any such
2707	adopted code of conduct or regulation shall not constitute a
2708	separate violation of this chapter. This subsection is not
2709	intended to restrict or invalidate any local code of conduct or
2710	regulation.
2711	(5) This section does not apply to those individuals who
2712	offer for sale only timeshare interests in timeshare property
2713	located outside this state and who do not engage in any sales
2714	activity within this state or to timeshare plans which are
2715	registered with the Securities and Exchange Commission. For the
2716	purposes of this section, both timeshare licenses and timeshare
2717	estates are considered to be interests in real property.
2718	(6) Notwithstanding the provisions of s. 475.452, it is
2719	unlawful for any broker, salesperson, or broker-salesperson to
2720	collect any advance fee for the listing of any timeshare estate
2721	or timeshare license.
2722	(7) It is unlawful for any broker, salesperson, or broker-
2723	salesperson to collect any advance fee for the listing of a
2724	personal property timeshare interest.
2725	(8) Subsections (1), (2), and (3) do not apply to persons
2726	who offer personal property timeshare plans.
2727	Section 20. Subsection (6) is added to section 721.24,
2728	Florida Statutes, to read:
2729	721.24 Firesafety.--
2730	(6) Accommodations and facilities of personal property
2731	timeshare plans shall be exempt from the requirements of this
2732	section.
2733	Section 21. Paragraphs (a), (d), and (e) of subsection (5)
2734	of section 721.26, Florida Statutes, are amended to read:
2735	721.26 Regulation by division.--The division has the power
2736	to enforce and ensure compliance with the provisions of this
2737	chapter, except for parts III and IV, using the powers provided
2738	in this chapter, as well as the powers prescribed in chapters
2739	498, 718, and 719. In performing its duties, the division shall
2740	have the following powers and duties:
2741	(5) Notwithstanding any remedies available to purchasers,
2742	if the division has reasonable cause to believe that a violation
2743	of this chapter, or of any division rule or order promulgated or
2744	issued pursuant to this chapter, has occurred, the division may
2745	institute enforcement proceedings in its own name against any
2746	regulated party, as such term is defined in this subsection:
2747	(a)1. "Regulated party," for purposes of this section,
2748	means any developer, exchange company, seller, managing entity,
2749	owners' association, owners' association director, owners'
2750	association officer, manager, management firm, escrow agent,
2751	trustee, any respective assignees or agents, or any other person
2752	having duties or obligations pursuant to this chapter.
2753	2. Any person who materially participates in any offer or
2754	disposition of any interest in, or the management or operation
2755	of, a timeshare plan in violation of this chapter or relevant
2756	rules involving fraud, deception, false pretenses,
2757	misrepresentation, or false advertising or the disbursement,
2758	concealment, or diversion of any funds or assets, which conduct
2759	adversely affects the interests of a purchaser, and which person
2760	directly or indirectly controls a regulated party or is a
2761	general partner, officer, director, agent, or employee of such
2762	regulated party, shall be jointly and severally liable under
2763	this subsection with such regulated party, unless such person
2764	did not know, and in the exercise of reasonable care could not
2765	have known, of the existence of the facts giving rise to the
2766	violation of this chapter. A right of contribution shall exist
2767	among jointly and severally liable persons pursuant to this
2768	paragraph.
2769	(d)1. The division may bring an action in circuit court
2770	for declaratory or injunctive relief or for other appropriate
2771	relief, including restitution.
2772	2. The division shall have broad authority and discretion
2773	to petition the circuit court to appoint a receiver with respect
2774	to any managing entity which fails to perform its duties and
2775	obligations under this chapter with respect to the operation of
2776	a timeshare plan. The circumstances giving rise to an
2777	appropriate petition for receivership under this subparagraph
2778	include, but are not limited to:
2779	a. Damage to or destruction of any of the accommodations
2780	or facilities of a timeshare plan, where the managing entity has
2781	failed to repair or reconstruct same.
2782	b. A breach of fiduciary duty by the managing entity,
2783	including, but not limited to, undisclosed self-dealing or
2784	failure to timely assess, collect, or disburse the common
2785	expenses of the timeshare plan.
2786	c. Failure of the managing entity to operate the timeshare
2787	plan in accordance with the timeshare instrument and this
2788	chapter.
2789
2790	If, under the circumstances, it appears that the events giving
2791	rise to the petition for receivership cannot be reasonably and
2792	timely corrected in a cost-effective manner consistent with the
2793	timeshare instrument, the receiver may petition the circuit
2794	court to implement such amendments or revisions to the timeshare
2795	instrument as may be necessary to enable the managing entity to
2796	resume effective operation of the timeshare plan, or to enter an
2797	order terminating the timeshare plan, or to enter such further
2798	orders regarding the disposition of the timeshare property as
2799	the court deems appropriate, including the disposition and sale
2800	of the timeshare property held by the owners'association or the
2801	purchasers. In the event of a receiver's sale, all rights,
2802	title, and interest held by the owners'association or any
2803	purchaser shall be extinguished and title shall vest in the
2804	buyer. This provision applies to timeshare estates, personal
2805	property timeshare interests,and timeshare licenses. All
2806	reasonable costs and fees of the receiver relating to the
2807	receivership shall become common expenses of the timeshare plan
2808	upon order of the court.
2809	3. The division may revoke its approval of any filing for
2810	any timeshare plan for which a petition for receivership has
2811	been filed pursuant to this paragraph.
2812	(e)1. The division may impose a penalty against any
2813	regulated party for a violation of this chapter or any rule
2814	adopted thereunder. A penalty may be imposed on the basis of
2815	each day of continuing violation, but in no event may the
2816	penalty for any offense exceed $10,000. All accounts collected
2817	shall be deposited with the Treasurer to the credit of the
2818	Division of Florida Land Sales, Condominiums, and Mobile Homes
2819	Trust Fund.
2820	2.a. If a regulated party fails to pay a penalty, the
2821	division shall thereupon issue an order directing that such
2822	regulated party cease and desist from further operation until
2823	such time as the penalty is paid; or the division may pursue
2824	enforcement of the penalty in a court of competent jurisdiction.
2825	b. If an owners'association or managing entity fails to
2826	pay a civil penalty, the division may pursue enforcement in a
2827	court of competent jurisdiction.
2828	Section 22. Section 721.27, Florida Statutes, is amended
2829	to read:
2830	721.27 Annual fee for each timeshare unit in plan.--On
2831	January 1 of each year, each managing entity of a timeshare plan
2832	located in this state shall collect as a common expense and pay
2833	to the division an annual fee of $1$2for each 7 days of annual
2834	use availability that exist within the timeshare plan at that
2835	time, subject to any limitations on the amount of such annual
2836	fee pursuant to s. 721.58. If any portion of the annual fee is
2837	not paid by March 1, the managing entity may be assessed a
2838	penalty pursuant to s. 721.26.
2839	Section 23. Section 721.52, Florida Statutes, is amended
2840	to read:
2841	721.52 Definitions.--As used in this chapter, the term:
2842	(1) "Applicable law" means the law of the jurisdiction
2843	where the accommodations and facilities referred to are located.
2844	(2) "Component site" means a specific geographic site
2845	where a portion of the accommodations and facilities of the
2846	multisite timeshare plan are located. If permitted under
2847	applicable law, separate phases operated as a single development
2848	located at a specific geographic site under common management
2849	shall be deemed a single component site for purposes of this
2850	part.
2851	(3) "Inventory" means the accommodations and facilities
2852	located at a particular component site or sites owned, leased,
2853	licensed, or otherwise acquired for use by a developer and
2854	offered as part of the multisite timeshare plan.
2855	(4) "Multisite timeshare plan" means any method,
2856	arrangement, or procedure with respect to which a purchaser
2857	obtains, by any means, a recurring right to use and occupy
2858	accommodations or facilities of more than one component site,
2859	only through use of a reservation system, whether or not the
2860	purchaser is able to elect to cease participating in the plan.
2861	However, the term "multisite timeshare plan" shall not include
2862	any method, arrangement, or procedure wherein:
2863	(a) The contractually specified maximum total financial
2864	obligation on the purchaser's part is $3,000 or less, during the
2865	entire term of the plan; or
2866	(b) The term is for a period of 3 years or less,
2867	regardless of the purchaser's contractually specified maximum
2868	total financial obligation, if any. For purposes of determining
2869	the term of such use and occupancy rights, the period of any
2870	optional renewals which a purchaser, in his or her sole
2871	discretion, may elect to exercise, whether or not for additional
2872	consideration, shall not be included. For purposes of
2873	determining the term of such use and occupancy rights, the
2874	period of any automatic renewals shall be included unless a
2875	purchaser has the right to terminate the membership at any time
2876	and receive a pro rata refund or the purchaser receives a notice
2877	no less than 30 days and no more than 60 days prior to the date
2878	of renewal informing the purchaser of the right to terminate at
2879	any time prior to the date of automatic renewal.
2880
2881	Multisite timeshare plan does not mean an exchange program as
2882	defined in s. 721.05. Timeshare estates may only be offered in a
2883	multisite timeshare plan pursuant to s. 721.57.
2884	(5) “Nonspecific multisite timeshare plan” means a
2885	multisite timeshare plan containing timeshare licenses or
2886	personal property timeshare interests, with respect to which a
2887	purchaser receives a right to use all of the accommodations and
2888	facilities, if any, of the multisite timeshare plan through the
2889	reservation system, but no specific right to use any particular
2890	accommodations and facilities for the remaining term of the
2891	multisite timeshare plan in the event that the reservation
2892	system is terminated for any reason prior to the expiration of
2893	the term of the multisite timeshare plan.
2894	(6)(5)"Reservation system" means the method, arrangement,
2895	or procedure by which a purchaser, in order to reserve the use
2896	and occupancy of any accommodation or facility of the multisite
2897	timeshare plan for one or more use periods, is required to
2898	compete with other purchasers in the same multisite timeshare
2899	plan regardless of whether such reservation system is operated
2900	and maintained by the multisite timeshare plan managing entity,
2901	an exchange company, or any other person. In the event that a
2902	purchaser is required to use an exchange program as the
2903	purchaser's principal means of obtaining the right to use and
2904	occupy a multisite timeshare plan's accommodations and
2905	facilities, such arrangement shall be deemed a reservation
2906	system. When an exchange company utilizes a mechanism for the
2907	exchange of use of timeshare periods among members of an
2908	exchange program, such utilization is not a reservation system
2909	of a multisite timeshare plan.
2910	(7) “Specific multisite timeshare plan” means a multisite
2911	timeshare plan containing timeshare licenses or personal
2912	property timeshare interests, with respect to which a purchaser
2913	receives a specific right to use accommodations and facilities,
2914	if any, at one component site of a multisite timeshare plan,
2915	together with use rights in the other accommodations and
2916	facilities of the multisite timeshare plan created by or
2917	acquired through the reservation system.
2918	(8)(6)"Vacation club" means a multisite timeshare plan.
2919	Section 24. Paragraph (a) of subsection (1) of section
2920	721.53, Florida Statutes, is amended and paragraph (f) is added
2921	to subsection (1) of said section, to read:
2922	721.53 Subordination instruments; alternate security
2923	arrangements.--
2924	(1) With respect to each accommodation or facility of a
2925	multisite timeshare plan, the developer shall provide the
2926	division with satisfactory evidence that one of the following
2927	has occurred with respect to each interestholder prior to
2928	offering the accommodation or facility as a part of the
2929	multisite timeshare plan:
2930	(a) The interestholder has executed and recorded a
2931	nondisturbance and notice to creditors instrument pursuant to s.
2932	721.08(2)(c).
2933	(f) With respect to any personal property accommodations
2934	or facilities, the developer and any other interestholder have
2935	complied fully with the applicable provisions of s. 721.08.
2936	Section 25. Section 721.54, Florida Statutes, is amended
2937	to read:
2938	721.54 Term of nonspecific multisite timeshare plans.--It
2939	shall be a violation of this part to represent to a purchaser of
2940	a nonspecific multisite timeshare plan as defined in s.
2941	721.552(4)that the term of the plan for that purchaser is
2942	longer than the shortest term of availability of any of the
2943	accommodations included within the plan at the time of purchase.
2944	Section 26. Section 721.55, Florida Statutes, is amended
2945	to read:
2946	721.55 Multisite timeshare plan public offering
2947	statement.--Each filedregisteredpublic offering statement for
2948	a multisite timeshare plan shall contain the information
2949	required by this section and shall comply with the provisions of
2950	s. 721.07, except as otherwise provided therein. The division is
2951	authorized to provide by rule the method by which a developer
2952	must provide such information to the division. Each multisite
2953	timeshare plan filedregisteredpublic offering statement shall
2954	contain the following information and disclosures:
2955	(1) A cover page containing:
2956	(a) The name of the multisite timeshare plan.
2957	(b) The following statement in conspicuous type:
2958
2959	This public offering statement contains important matters
2960	to be considered in acquiring an interest in a multisite
2961	timeshare plan (or multisite vacation ownership plan or
2962	multisite vacation plan or vacation club). The statements
2963	contained herein are only summary in nature. A prospective
2964	purchaser should refer to all references, accompanying exhibits,
2965	contract documents, and sales materials. The prospective
2966	purchaser should not rely upon oral representations as being
2967	correct and should refer to this document and accompanying
2968	exhibits for correct representations.
2969
2970	(2) A summary containing all statements required to be in
2971	conspicuous type in the public offering statement and in all
2972	exhibits thereto.
2973	(3) A separate index for the contents and exhibits of the
2974	public offering statement.
2975	(4) A text, which shall include, where applicable, the
2976	information and disclosures set forth in paragraphs (a)-(l).
2977	(a) A description of the multisite timeshare plan,
2978	including its term, legal structure, and form of ownership. For
2979	multisite timeshare plans in which the purchaser will receive a
2980	timeshare estate pursuant to s. 721.57 and foror a specific
2981	multistate timeshare planslicense as defined in s. 721.552(4),
2982	the description must also include the term of each component
2983	site within the multisite timeshare plan.
2984	(b) A description of the structure and ownership of the
2985	reservation system together with a disclosure of the entity
2986	responsible for the operation of the reservation system. The
2987	description shall include the financial terms of any lease of
2988	the reservation system, if applicable. The developer shall not
2989	be required to disclose the financial terms of any such lease if
2990	such lease is prepaid in full for the term of the multisite
2991	timeshare plan or to any extent that neither purchasers nor the
2992	managing entity will be required to make payments for the
2993	continued use of the system following default by the developer
2994	or termination of the managing entity.
2995	(c)1. A description of the manner in which the reservation
2996	system operates. The description shall include a disclosure in
2997	compliance with the demand balancing standard set forth in s.
2998	721.56(6) and shall describe the developer's efforts to comply
2999	with same in creating the reservation system. The description
3000	shall also include a summary of the rules and regulations
3001	governing access to and use of the reservation system.
3002	2. In lieu of describing the rules and regulations of the
3003	reservation system in the public offering statement text, the
3004	developer may attach the rules and regulations as a separate
3005	public offering statement exhibit, together with a cross-
3006	reference in the public offering statement text to such exhibit.
3007	(d) The existence of and an explanation regarding any
3008	priority reservation features that affect a purchaser's ability
3009	to make reservations for the use of a given accommodation or
3010	facility on a first come, first served basis, including, if
3011	applicable, the following statement in conspicuous type:
3012
3013	Component sites contained in the multisite timeshare plan
3014	(or multisite vacation ownership plan or multisite vacation plan
3015	or vacation club) are subject to priority reservation features
3016	which may affect your ability to obtain a reservation.
3017
3018	(e) A summary of the material rules and regulations, if
3019	any, other than the reservation system rules and regulations,
3020	affecting the purchaser's use of each accommodation and facility
3021	at each component site.
3022	(f) If the provisions of s. 721.552 and the timeshare
3023	instrument permit additions, substitutions, or deletions of
3024	accommodations or facilities, the public offering statement must
3025	include substantially the following information:
3026	1. Additions.--
3027	a. A description of the basis upon which new
3028	accommodations and facilities may be added to the multisite
3029	timeshare plan; by whom additions may be made; and the
3030	anticipated effect of the addition of new accommodations and
3031	facilities upon the reservation system, its priorities, its
3032	rules and regulations, and the availability of existing
3033	accommodations and facilities.
3034	b. The developer must disclose the existence of any cap on
3035	annual increases in common expenses of the multisite timeshare
3036	plan that would apply in the event that additional
3037	accommodations and facilities are made a part of the plan.
3038	c. The developer shall also disclose any extent to which
3039	the purchasers of the multisite timeshare plan will have the
3040	right to consent to any proposed additions; if the purchasers do
3041	not have the right to consent, the developer must include the
3042	following disclosure in conspicuous type:
3043
3044	Accommodations and facilities may be added to this
3045	multisite timeshare plan (or multisite vacation ownership plan
3046	or multisite vacation plan or vacation club) without the consent
3047	of the purchasers. The addition of accommodations and facilities
3048	to the plan may result in the addition of new purchasers who
3049	will compete with existing purchasers in making reservations for
3050	the use of available accommodations and facilities within the
3051	plan, and may also result in an increase in the annual
3052	assessment against purchasers for common expenses.
3053
3054	2. Substitutions.--
3055	a. A description of the basis upon which new
3056	accommodations and facilities may be substituted for existing
3057	accommodations and facilities of the multisite timeshare plan;
3058	by whom substitutions may be made; the basis upon which the
3059	determination may be made to cause such substitutions to occur;
3060	and any limitations upon the ability to cause substitutions to
3061	occur.
3062	b. The developer shall also disclose any extent to which
3063	purchasers will have the right to consent to any proposed
3064	substitutions; if the purchasers do not have the right to
3065	consent, the developer must include the following disclosure in
3066	conspicuous type:
3067
3068	New accommodations and facilities may be substituted for
3069	existing accommodations and facilities of this multisite
3070	timeshare plan (or multisite vacation ownership plan or
3071	multisite vacation plan or vacation club) without the consent of
3072	the purchasers. The replacement accommodations and facilities
3073	may be located at a different place or may be of a different
3074	type or quality than the replaced accommodations and facilities.
3075	The substitution of accommodations and facilities may also
3076	result in an increase in the annual assessment against
3077	purchasers for common expenses.
3078
3079	3. Deletions.--A description of any provision of the
3080	timeshare instrument governing deletion of accommodations or
3081	facilities from the multisite timeshare plan. If the timeshare
3082	instrument does not provide for business interruption insurance
3083	in the event of a casualty, or if it is unavailable, or if the
3084	instrument permits the developer, the managing entity, or the
3085	purchasers to elect not to reconstruct after casualty under
3086	certain circumstances or to secure replacement accommodations or
3087	facilities in lieu of reconstruction, the public offering
3088	statement must contain a disclosure that during the
3089	reconstruction, replacement, or acquisition period, or as a
3090	result of a decision not to reconstruct, purchasers of the plan
3091	may temporarily compete for available accommodations on a
3092	greater than one-to-one purchaser to accommodation ratio.
3093	(g) A description of the developer and the managing entity
3094	of the multisite timeshare plan, including:
3095	1. The identity of the developer; the developer's business
3096	address; the number of years of experience the developer has in
3097	the timeshare, hotel, motel, travel, resort, or leisure
3098	industries; and a description of any pending lawsuit or judgment
3099	against the developer which is material to the plan. If there
3100	are no such pending lawsuits or judgments, there shall be a
3101	statement to that effect.
3102	2. The identity of the managing entity of the multisite
3103	timeshare plan; the managing entity's business address; the
3104	number of years of experience the managing entity has in the
3105	timeshare, hotel, motel, travel, resort, or leisure industries;
3106	and a description of any lawsuit or judgment against the
3107	managing entity which is material to the plan. If there are no
3108	pending lawsuits or judgments, there shall be a statement to
3109	that effect. The description of the managing entity shall also
3110	include a description of the relationship among the managing
3111	entity of the multisite timeshare plan and the various component
3112	site managing entities.
3113	(h) A description of the purchaser's liability for common
3114	expenses of the multisite timeshare plan, including the
3115	following:
3116	1. A description of the common expenses of the plan,
3117	including the method of allocation and assessment of such common
3118	expenses, whether component site common expenses and real estate
3119	taxes are included within the total common expense assessment of
3120	the multisite timeshare plan, and, if not, the manner in which
3121	timely payment of component site common expenses and real estate
3122	taxes shall be accomplished.
3123	2. A description of any cap imposed upon the level of
3124	common expenses payable by the purchaser. In no event shall the
3125	total common expense assessment for the multisite timeshare plan
3126	in a given calendar year exceed 125 percent of the total common
3127	expense assessment for the plan in the previous calendar year.
3128	3. A description of the entity responsible for the
3129	determination of the common expenses of the multisite timeshare
3130	plan, as well as any entity which may increase the level of
3131	common expenses assessed against the purchaser at the multisite
3132	timeshare plan level.
3133	4. A description of the method used to collect common
3134	expenses, including the entity responsible for such collections,
3135	and the lien rights of any entity for nonpayment of common
3136	expenses. If the common expenses of any component site are
3137	collected by the managing entity of the multisite timeshare
3138	plan, a statement to that effect together with the identity and
3139	address of the escrow agent required by s. 721.56(3).
3140	5. If the purchaser will receive an interest ina
3141	nonspecific multistate timeshare planlicense as defined in s.
3142	721.552(4), a statement that a multisite timeshare plan budget
3143	is attached to the public offering statement as an exhibit
3144	pursuant to paragraph (7)(c). The multisite timeshare plan
3145	budget shall comply with the provisions of s. 721.07(5)(u).
3146	6. If the developer intends to guarantee the level of
3147	assessments for the multisite timeshare plan, such guarantee
3148	must be based upon a good faith estimate of the revenues and
3149	expenses of the multisite timeshare plan. The guarantee must
3150	include a description of the following:
3151	a. The specific time period, measured in one or more
3152	calendar or fiscal years, during which the guarantee will be in
3153	effect.
3154	b. A statement that the developer will pay all common
3155	expenses incurred in excess of the total revenues of the
3156	multisite timeshare plan, if the developer is to be excused from
3157	the payment of assessments during the guarantee period.
3158	c. The level, expressed in total dollars, at which the
3159	developer guarantees the assessments. If the developer has
3160	reserved the right to extend or increase the guarantee level, a
3161	disclosure must be included to that effect.
3162	7. If required under applicable law, the developer shall
3163	also disclose the following matters for each component site:
3164	a. Any limitation upon annual increases in common
3165	expenses;
3166	b. The existence of any bad debt or working capital
3167	reserve; and
3168	c. The existence of any replacement or deferred
3169	maintenance reserve.
3170	(i) If there are any restrictions upon the sale, transfer,
3171	conveyance, or leasing of an interest in a multisite timeshare
3172	plan, a description of the restrictions together with a
3173	statement in conspicuous type in substantially the following
3174	form:
3175
3176	The sale, lease, or transfer of interests in this multisite
3177	timeshare plan is restricted or controlled.
3178
3179	(j) The following statement in conspicuous type in
3180	substantially the following form:
3181
3182	The purchase of an interest in a multisite timeshare plan
3183	(or multisite vacation ownership plan or multisite vacation plan
3184	or vacation club) should be based upon its value as a vacation
3185	experience or for spending leisure time, and not considered for
3186	purposes of acquiring an appreciating investment or with an
3187	expectation that the interest may be resold.
3188
3189	(k) If the multisite timeshare plan provides purchasers
3190	with the opportunity to participate in an exchange program, a
3191	description of the name and address of the exchange company and
3192	the method by which a purchaser accesses the exchange program.
3193	In lieu of this requirement, the public offering statement text
3194	may contain a cross-reference to other provisions in the public
3195	offering statement or in an exhibit containing this information.
3196	(l) A description of each component site, which
3197	description may be disclosed in a written, graphic, tabular, or
3198	other form approved by the division. The description of each
3199	component site shall include the following information:
3200	1. The name and address of each component site.
3201	2. The number of accommodations, timeshare interests, and
3202	timeshare periods, expressed in periods of 7-day use
3203	availability, committed to the multisite timeshare plan and
3204	available for use by purchasers.
3205	3. Each type of accommodation in terms of the number of
3206	bedrooms, bathrooms, sleeping capacity, and whether or not the
3207	accommodation contains a full kitchen. For purposes of this
3208	description, a full kitchen shall mean a kitchen having a
3209	minimum of a dishwasher, range, sink, oven, and refrigerator.
3210	4. A description of facilities available for use by the
3211	purchaser at each component site, including the following:
3212	a. The intended use of the facility, if not apparent from
3213	the description.
3214	b. Any user fees associated with a purchaser's use of the
3215	facility.
3216	5. A cross-reference to the location in the public
3217	offering statement of the description of any priority
3218	reservation features which may affect a purchaser's ability to
3219	obtain a reservation in the component site.
3220	(5) Such other information as the division determines is
3221	necessary to fairly, meaningfully, and effectively disclose all
3222	aspects of the multisite timeshare plan, including, but not
3223	limited to, any disclosures made necessary by the operation of
3224	s. 721.03(8). However, if a developer has, in good faith,
3225	attempted to comply with the requirements of this section, and
3226	if, in fact, the developer has substantially complied with the
3227	disclosure requirements of this chapter, nonmaterial errors or
3228	omissions shall not be actionable.
3229	(6) Any other information that the developer, with the
3230	approval of the division, desires to include in the public
3231	offering statement text.
3232	(7) The following documents shall be included as exhibits
3233	to the registered public offering statement, if applicable:
3234	(a) The timeshare instrument.
3235	(b) The reservation system rules and regulations.
3236	(c) The multisite timeshare plan budget pursuant to
3237	subparagraph (4)(h)5.
3238	(d) Any document containing the material rules and
3239	regulations described in paragraph (4)(e).
3240	(e) Any contract, agreement, or other document through
3241	which component sites are affiliated with the multisite
3242	timeshare plan.
3243	(f) Any escrow agreement required pursuant to s. 721.08 or
3244	s. 721.56(3).
3245	(g) The form agreement for sale or lease of an interest in
3246	the multisite timeshare plan.
3247	(h) The form receipt for multisite timeshare plan
3248	documents required to be given to the purchaser pursuant to s.
3249	721.551(2)(b).
3250	(i) The description of documents list required to be given
3251	to the purchaser by s. 721.551(2)(b).
3252	(j) The component site managing entity affidavit or
3253	statement required by s. 721.56(1).
3254	(k) Any subordination instrument required by s. 721.53.
3255	(l)1. If the multisite timeshare plan contains any
3256	component sites located in this state, the information required
3257	by s. 721.07(5) pertaining to each such component site unless
3258	exempt pursuant to s. 721.03.
3259	2. If the purchaser will receive a timeshare estate
3260	pursuant to s. 721.57, or an interest in a specific multistate
3261	timeshare plan,license as defined in s. 721.552(4)in a
3262	component site located outside of this state but which is
3263	offered in this state, the information required by s. 721.07(5)
3264	pertaining to that component site,;provided, however, that the
3265	provisions of s. 721.07(5)(u) shall only require disclosure of
3266	information related to the estimated budget for the timeshare
3267	plan and purchaser's expenses as required by the jurisdiction in
3268	which the component site is located.
3269	(8)(a) A timeshare plan containing only one component site
3270	must be filed with the division as a multisite timeshare plan if
3271	the timeshare instrument reserves the right for the developer to
3272	add future component sites. However, if the developer fails to
3273	add at least one additional component site to a timeshare plan
3274	described in this paragraph within 3 years after the date the
3275	plan is initially filed with the division, the multisite filing
3276	for such plan shall thereupon terminate, and the developer may
3277	not thereafter offer any further interests in such plan unless
3278	and until he or she refiles such plan with the division pursuant
3279	to this chapter.
3280	(b) The public offering statement for any timeshare plan
3281	described in paragraph (a) must include the following disclosure
3282	in conspicuous type:
3283
3284	This timeshare plan has been filed as a multisite timeshare
3285	plan (or multisite vacation ownership plan or multisite vacation
3286	plan or vacation club); however, this plan currently contains
3287	only one component site. The developer is not required to add
3288	any additional component sites to the plan. Do not purchase an
3289	interest in this plan in reliance upon the addition of any other
3290	component sites.
3291	Section 27. Paragraphs (b), (c), and (f) of subsection (2)
3292	of section 721.551, Florida Statutes, are amended to read:
3293	721.551 Delivery of multisite timeshare plan purchaser
3294	public offering statement.--
3295	(2) The developer shall furnish each purchaser with the
3296	following:
3297	(b) A receipt for multisite timeshare plan documents and a
3298	list describing any exhibit to the filedregisteredpublic
3299	offering statement which is not delivered to the purchaser. The
3300	division is authorized to prescribe by rule the form of the
3301	receipt for multisite timeshare plan documents and the
3302	description of exhibits list that must be furnished to the
3303	purchaser pursuant to this section.
3304	(c) If the purchaser will receive a timeshare estate
3305	pursuant to s. 721.57, or an interest in a specific multistate
3306	timeshare plan,license as defined in s. 721.552(4)in a
3307	component site located in this state, the developer shall also
3308	furnish the purchaser with the information required to be
3309	delivered pursuant to s. 721.07(6)(a) and (b) for the component
3310	site in which the purchaser will receive an estate or interest
3311	in a specific multistate timeshare planlicense.
3312	(f) The developer shall be required to provide the
3313	managing entity of the multisite timeshare plan with a copy of
3314	the approved filedregisteredpublic offering statement and any
3315	approved amendments thereto to be maintained by the managing
3316	entity as part of the books and records of the timeshare plan
3317	pursuant to s. 721.13(3)(d).
3318	Section 28. Paragraph (a) of subsection (2), paragraph (c)
3319	of subsection (3), and subsections (4) and (5) of section
3320	721.552, Florida Statutes, are amended to read:
3321	721.552 Additions, substitutions, or deletions of
3322	component site accommodations or facilities; purchaser remedies
3323	for violations.--Additions, substitutions, or deletions of
3324	component site accommodations or facilities may be made only in
3325	accordance with the following:
3326	(2) SUBSTITUTIONS.--
3327	(a) Substitutions are available only for nonspecific
3328	multistate timeshare license plans as defined in subsection (4).
3329	Specific multistate timeshare license plans oras defined in
3330	subsection (4) andplans offering timeshare estates pursuant to
3331	s. 721.57 may not contain an accommodation substitution right.
3332	(3) DELETIONS.--
3333	(c) Automatic deletion.--The timeshare instrument may
3334	provide that a component site will be automatically deleted upon
3335	the expiration of its term in a timeshare planother than a
3336	nonspecific multistate timesharelicenseplan or as otherwise
3337	provided in the timeshare instrument. However, the timeshare
3338	instrument must also provide that in the event a component site
3339	is deleted from the plan in this manner, a sufficient number of
3340	purchasers of the plan will also be deleted so as to maintain no
3341	greater than a one-to-one purchaser to accommodation ratio.
3342	(4) SPECIFIC AND NONSPECIFIC TIMESHARE LICENSES.--For
3343	purposes of this chapter, a specific timeshare license means one
3344	with respect to which a purchaser receives a specific right to
3345	use accommodations and facilities, if any, at one component site
3346	of a multisite timeshare plan, together with use rights in the
3347	other accommodations and facilities of the multisite timeshare
3348	plan created by or acquired through the reservation system. For
3349	purposes of this chapter, a nonspecific timeshare license means
3350	one with respect to which a purchaser receives a right to use
3351	all of the accommodations and facilities, if any, of a multisite
3352	timeshare plan through the reservation system, but no specific
3353	right to use any particular accommodations and facilities for
3354	the remaining term of the multisite timeshare plan in the event
3355	that the reservation system is terminated for any reason prior
3356	to the expiration of the term of the multisite timeshare plan.
3357	(4)(5)VIOLATIONS; PURCHASER REMEDIES.--All purchaser
3358	remedies pursuant to s. 721.21 shall be available for any
3359	violation of the provisions of this section.
3360	Section 29. Subsections (4) and (5) of section 721.56,
3361	Florida Statutes, are amended to read:
3362	721.56 Management of multisite timeshare plans;
3363	reservation systems; demand balancing.--
3364	(4) The managing entity of a multisite timeshare plan
3365	shall comply fully with the requirements of s. 721.13, subject
3366	to the provisions of s. 721.13(11) for personal property
3367	timeshare plans; however, with respect to a given component
3368	site, the managing entity of the multisite timeshare plan shall
3369	not be responsible for compliance as the managing entity of that
3370	component site unless the managing entity of the multisite
3371	timeshare plan is also the managing entity of that component
3372	site. Unless the timeshare instrument provides otherwise, the
3373	operator of the reservation system is the managing entity of a
3374	multisite timeshare plan.
3375	(5)(a)1. The reservation system is a facility of any
3376	nonspecific timeshare license multisite timeshare plan as
3377	defined in s. 721.552(4). The reservation system is not a
3378	facility of any specific timeshare licensemultisite timeshare
3379	plan as defined in s. 721.552(4), nor is it a facility of any
3380	multisite timeshare plan in which timeshare estates are offered
3381	pursuant to s. 721.57.
3382	2. The reservation system of any multisite timeshare plan
3383	shall include any computer software and hardware employed for
3384	the purpose of enabling or facilitating the operation of the
3385	reservation system. Nothing contained in this part shall
3386	preclude a manager or management firm that is serving as
3387	managing entity of a multisite timeshare plan from providing in
3388	its contract with the purchasers or owners' association of the
3389	multisite timeshare plan or in the timeshare instrument that the
3390	manager or management firm owns the reservation system and that
3391	the managing entity shall continue to own the reservation system
3392	in the event the purchasers discharge the managing entity
3393	pursuant to s. 721.14.
3394	(b) In the event of a termination of a managing entity of
3395	a nonspecific license multisite timeshare plan as defined in s.
3396	721.552(4), which managing entity owns the reservation system,
3397	irrespective of whether the termination is voluntary or
3398	involuntary and irrespective of the cause of such termination,
3399	in addition to any other remedies available to purchasers in
3400	this part, the terminated managing entity shall, prior to such
3401	termination, establish a trust meeting the criteria set forth in
3402	this paragraph. It is the intent of the Legislature that this
3403	trust arrangement provide for an adequate period of continued
3404	operation of the reservation system of the multisite timeshare
3405	plan, during which period the new managing entity shall make
3406	provision for the acquisition of a substitute reservation
3407	system.
3408	1. The trust shall be established with an independent
3409	trustee. Both the terminated managing entity and the new
3410	managing entity shall attempt to agree on an acceptable trustee.
3411	In the event they cannot agree on an acceptable trustee, they
3412	shall each designate a nominee, and the two nominees shall
3413	select the trustee.
3414	2. The terminated managing entity shall take all steps
3415	necessary to enable the trustee or the trustee's designee to
3416	operate the reservation system in the same manner as provided in
3417	the timeshare instrument and the public offering statement. The
3418	trustee may, but shall not be required to, contract with the
3419	terminated managing entity for the continued operation of the
3420	reservation system. In the event the trustee elects to contract
3421	with the terminated managing entity, that managing entity shall
3422	be required to operate the reservation system and shall be
3423	entitled to payment for that service. The payment shall in no
3424	event exceed the amount previously paid to the terminated
3425	managing entity for operation of the reservation system.
3426	3. The trust shall remain in effect for a period of no
3427	longer than 1 year following the date of termination of the
3428	managing entity.
3429	4. Nothing contained in this subsection shall abrogate or
3430	otherwise interfere with any proprietary rights in the
3431	reservation system that have been reserved by the discharged
3432	managing entity, in its management contract or otherwise, so
3433	long as such proprietary rights are not asserted in a manner
3434	that would prevent the continued operation of the reservation
3435	system as contemplated in this subsection.
3436	(c) In the event of a termination of a managing entity of
3437	a timeshare estate or specific license multisite timeshare plan
3438	as defined in s. 721.552(4), which managing entity owns the
3439	reservation system, irrespective of whether the termination is
3440	voluntary or involuntary and irrespective of the cause of such
3441	termination, in addition to any other remedies available to
3442	purchasers in this part, the terminated managing entity shall,
3443	prior to such termination, promptly transfer to each component
3444	site managing entity all relevant data contained in the
3445	reservation system with respect to that component site,
3446	including, but not limited to:
3447	1. The names, addresses, and reservation status of
3448	component site accommodations.
3449	2. The names and addresses of all purchasers of timeshare
3450	interests at that component site.
3451	3. All outstanding confirmed reservations and reservation
3452	requests for that component site.
3453	4. Such other component site records and information as
3454	are necessary, in the reasonable discretion of the component
3455	site managing entity, to permit the uninterrupted operation and
3456	administration of the component site, provided that a given
3457	component site managing entity shall not be entitled to any
3458	information regarding other component sites or regarding the
3459	terminated multisite timeshare plan managing entity.
3460
3461	All reasonable costs incurred by the terminated managing entity
3462	in effecting the transfer of information required by this
3463	paragraph shall be reimbursed to the terminated managing entity
3464	on a pro rata basis by each component site, and the amount of
3465	such reimbursement shall constitute a common expense of each
3466	component site.
3467	Section 30. Subsection (2) of section 721.57, Florida
3468	Statutes, is amended to read:
3469	721.57 Offering of timeshare estates in multisite
3470	timeshare plans; required provisions in the timeshare
3471	instrument.--
3472	(2) The timeshare instrument of a multisite timeshare plan
3473	in which timeshare estates are offered, other than a trust
3474	meeting the requirements of s. 721.08,must contain or provide
3475	for all of the following matters:
3476	(a) The purchaser will receive a timeshare estate as
3477	defined in s. 721.05 in one of the component sites of the
3478	multisite timeshare plan. The use rights in the other component
3479	sites of the multisite timeshare plan shall be made available to
3480	the purchaser through the reservation system pursuant to the
3481	timeshare instrument.
3482	(b) In the event that the reservation system is terminated
3483	or otherwise becomes unavailable for any reason prior to the
3484	expiration of the term of the multisite timeshare plan:
3485	1. The purchaser will be able to continue to use the
3486	accommodations and facilities of the component site in which she
3487	or he has been conveyed a timeshare estate in the manner
3488	described in the timeshare instrument for the remaining term of
3489	the timeshare estate; and
3490	2. Any use rights in that component site which had
3491	previously been made available through the reservation system to
3492	purchasers of the multisite timeshare plan who were not offered
3493	a timeshare estate at that component site will terminate when
3494	the reservation system is terminated or otherwise becomes
3495	unavailable for any reason.
3496	Section 31. Subsection (6) of section 721.84, Florida
3497	Statutes, is amended to read:
3498	721.84 Appointment of a registered agent; duties.--
3499	(6) Unless otherwise provided in this section, a
3500	registered agent in receipt of any notice or other document
3501	addressed from the lienholder to the obligor in care of the
3502	registered agent at the registered office must mail, by first
3503	class mail if the obligor's address is within the United States,
3504	and by international air mail if the obligor's address is
3505	outside the United States, with postage fees prepaid, such
3506	notice or documents to the obligor at the obligor's last
3507	designated address within 5 days afterofreceipt.
3508	Section 32. Section 721.96, Florida Statutes, is amended
3509	to read:
3510	721.96 Purpose.--The purpose of this part is to provide
3511	for the appointment of commissioners of deeds to take
3512	acknowledgments, proofs of execution, and oaths outside the
3513	United States in connection with the execution of any deed,
3514	mortgage, deed of trust, contract, power of attorney, or any
3515	other agreement, instrument or writing concerning, relating to,
3516	or to be used or recorded in connection with a timeshare estate,
3517	personal property timeshare interest,timeshare license, any
3518	property subject to a timeshare plan, or the operation of a
3519	timeshare plan located within this state.
3520	Section 33. Subsection (1) of section 721.97, Florida
3521	Statutes, is amended to read:
3522	721.97 Timeshare commissioner of deeds.--
3523	(1) The Governor may appoint commissioners of deeds to
3524	take acknowledgments, proofs of execution, or oaths in any
3525	foreign country. The term of office is 4 years. Commissioners of
3526	deeds shall have authority to take acknowledgments, proofs of
3527	execution, and oaths in connection with the execution of any
3528	deed, mortgage, deed of trust, contract, power of attorney, or
3529	any other writing to be used or recorded in connection with a
3530	timeshare estate, personal property timeshare interest,
3531	timeshare license, any property subject to a timeshare plan, or
3532	the operation of a timeshare plan located within this state;
3533	provided such instrument or writing is executed outside the
3534	United States. Such acknowledgments, proofs of execution, and
3535	oaths must be taken or made in the manner directed by the laws
3536	of this state, including but not limited to s. 117.05(4),
3537	(5)(a), and (6), Florida Statutes 1997, and certified by a
3538	commissioner of deeds. The certification must be endorsed on or
3539	annexed to the instrument or writing aforesaid and has the same
3540	effect as if made or taken by a notary public licensed in this
3541	state.
3542	Section 34. This act shall take effect upon becoming a
3543	law.