HB 1243 2003
1	CHAMBER ACTION
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6	The Committee on Judiciary recommends the following:
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8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to timeshare plans; amending s. 721.02,
12	F.S.; revising language with respect to legislative
13	purpose under the Florida Vacation Plan and Timesharing
14	Act; amending s. 721.03, F.S.; revising language with
15	respect to the scope of the act to include reference to
16	personal property timeshare plans; amending s. 721.05,
17	F.S.; providing definitions; amending s. 721.06, F.S.;
18	revising language with respect to contracts for purchase
19	of timeshare interests to include provisions with respect
20	to personal property timeshare interests; amending s.
21	721.065, F.S.; revising language with respect to resale
22	purchase agreements to include reference to certain real
23	property and personal property timeshare plans; amending
24	s. 721.07, F.S.; revising language with respect to public
25	offering statements; amending s. 721.075, F.S.; revising
26	language with respect to incidental benefits, requiring
27	purchasers to execute a statement indicating the source of
28	the benefit; amending s. 721.08, F.S.; revising language
29	with respect to escrow accounts; amending s. 721.09, F.S.;
30	revising language with respect to reservation agreements;
31	amending s. 721.11, F.S.; revising language with respect
32	to advertising materials; correcting cross references;
33	amending s. 721.12, F.S.; providing for required
34	recordkeeping by the seller of a personal property
35	timeshare plan; amending s. 721.13, F.S.; revising
36	language with respect to management; amending s. 721.14,
37	F.S.; providing that a section of law governing the
38	discharge of the managing entity shall not apply with
39	respect to personal property timeshare plans; amending s.
40	721.15, F.S.; revising language with respect to
41	assessments for common expenses; amending s. 721.16, F.S.;
42	providing that a section of law governing certain liens
43	does not apply to personal property timeshare plans;
44	amending s. 721.17, F.S.; revising language with respect
45	to transfer of interest; amending s. 721.18, F.S.;
46	revising language with respect to exchange programs;
47	amending s. 721.19, F.S.; including reference to personal
48	property timeshare interests; amending s. 721.20, F.S.,
49	relating to licensing requirements; providing for the
50	application of certain provisions to personal property
51	timeshare plans; amending s. 721.24, F.S.; exempting
52	accommodations and facilities of personal property
53	timeshare plans from a provision of law governing
54	firesafety; amending s. 721.26, F.S.; revising language
55	with respect to regulation by the division; amending s.
56	721.27, F.S.; reducing an annual fee for each timeshare
57	unit in a timeshare plan; amending s. 721.52, F.S.;
58	redefining the term "multisite timeshare plan" and
59	defining the terms "nonspecific multisite timeshare plan"
60	and "specific multisite timeshare plan"; amending s.
61	721.53, F.S.; revising language with respect to
62	subordination instruments; amending s. 721.54, F.S.;
63	correcting a cross reference; amending s. 721.55, F.S.;
64	providing reference to filed rather than registered public
65	offering statements; providing reference to multisite
66	timeshare plans; amending s. 721.551, F.S.; providing for
67	reference to filed rather than registered public offering
68	statements; amending s. 721.552, F.S.; providing reference
69	to multistate timeshare plans; amending s. 721.56, F.S.;
70	providing reference to personal property timeshare plans;
71	amending s. 721.57, F.S.; revising language with respect
72	to timeshare estates in multisite timeshare plans;
73	amending s. 721.84, F.S.; revising language with respect
74	to appointment of a registered agent; amending ss. 721.96
75	and 721.97, F.S.; including reference to personal property
76	timeshare interests; amending ss. 475.011 and 718.103,
77	F.S.; correcting cross references; providing an effective
78	date.
79
80	Be It Enacted by the Legislature of the State of Florida:
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82	Section 1. Subsections (1) and (5) of section 721.02,
83	Florida Statutes, are amended to read:
84	721.02 Purposes.--The purposes of this chapter are to:
85	(1) Give statutory recognition to real property timeshare
86	planstimesharing and personal property timeshare plans
87	timesharing in thisthestate.
88	(5) Recognize that the tourism industry in this state is a
89	vital part of the state's economy; that the sale, promotion, and
90	use of timeshare plans is an emerging, dynamic segment of the
91	tourism industry; that this segment of the tourism industry
92	continues to grow, both in volume of sales and in complexity and
93	variety of product structure; and that a uniform and consistent
94	method of regulation is necessary in order to safeguard
95	Florida's tourism industry and the state's economic well-being.
96	In order to protect the quality of Florida timeshare plans and
97	the consumers who purchase them, it is the intent of the
98	Legislature that this chapter be interpreted broadly in order to
99	encompass all forms of timeshare plans with a duration of at
100	least 3 years that are created with respect to accommodations
101	and facilities that are located in the state or that are offered
102	for sale in the state as provided herein, including, but not
103	limited to, condominiums, cooperatives, undivided interest
104	campgrounds, cruise ships, vessels, houseboats, and recreational
105	vehicles and other motor vehicles, and includingvacation clubs,
106	multisite vacation plans, and multiyear vacation and lodging
107	certificates.
108	Section 2. Paragraph (d) is added to subsection (1) of
109	section 721.03, Florida Statutes, and subsection (8) of said
110	section, is amended to read:
111	721.03 Scope of chapter.--
112	(1) This chapter applies to all timeshare plans consisting
113	of more than seven timeshare periods over a period of at least 3
114	years in which the accommodations and facilities, if any, are
115	located within this state or offered within this state; provided
116	that:
117	(d) For purposes of determining the term of the plan, the
118	period of any automatic renewals shall be included, except as
119	provided in s. 721.52(4)(b).
120	(8) With respect to any personal propertyaccommodation or
121	facility of a timeshare plan:which is situated upon
122	(a) This chapter applies only to personal property
123	timeshare plans that are offered in this state.,
124	(b)The division shall have the authority to adopt rules
125	interpreting and implementing the provisions of this chapter as
126	they apply to any personal property timeshare plan or anysuch
127	accommodation or facility that is part of a personal property
128	timeshare plan offered in this state, or as the provisions of
129	this chaptertheyapply to any other laws of this state, of the
130	several states, or of the United States, or of any other
131	jurisdiction, with respect to any personal property timeshare
132	plan or anysuch accommodation or facility that is part of a
133	personal property timeshare plan offered in this state.
134	(c) Any developer and any managing entity of a personal
135	property timeshare plan must submit to personal jurisdiction in
136	this state in a form satisfactory to the division at the time of
137	filing a public offering statement.
138	Section 3. Section 721.05, Florida Statutes, is amended to
139	read:
140	721.05 Definitions.--As used in this chapter, the term:
141	(1) "Accommodation" means any apartment,condominium or
142	cooperative unit, cabin, lodge, hotel or motel room, campground,
143	cruise ship cabin, houseboat or other vessel, recreational or
144	other motor vehicle, or anyor otherprivate or commercial
145	structure which is situated onreal or personal property and
146	designed for overnight occupancy or useby one or more
147	individuals. The term does not include an incidental benefit as
148	defined in this section.
149	(2) "Agreement for deed" means any written contract
150	utilized in the sale of timeshare estates which provides that
151	legal title will not be conveyed to the purchaser until the
152	contract price has been paid in full and the terms of payment of
153	which extend for a period in excess of 180 days after either the
154	date of execution of the contract or completion of construction,
155	whichever occurs later.
156	(3) “Agreement for transfer” means any written contract
157	utilized in the sale of personal property timeshare interests
158	which provides that legal title will not be transferred to the
159	purchaser until the contract price has been paid in full and the
160	terms of payment of which extend for a period in excess of 180
161	days after either the date of execution of the contract or
162	completion of construction, whichever occurs later.
163	(4)(3)"Assessment" means the share of funds required for
164	the payment of common expenses which is assessed from time to
165	time against each purchaser by the managing entity.
166	(5)(4)"Closing" means:
167	(a) For any plan selling timeshare estates, conveyance of
168	the legal or beneficial title to a timeshare estate as evidenced
169	by the delivery of a deed for conveyance of legal title, or
170	other instrument for conveyance of beneficial title, to the
171	purchaser or to the clerk of the court for recording or
172	conveyance of the equitable title to a timeshare estate as
173	evidenced by the irretrievable delivery of an agreement for deed
174	to the clerk of the court for recording.
175	(b) For any plan selling timeshare licenses or personal
176	property timeshare interests, the final execution and delivery
177	by all parties of the last document necessary for vesting in the
178	purchaser the full rights available under the plan.
179	(6)(5)"Common expenses" means:
180	(a) Those expenses, fees, or taxesproperly incurred for
181	the maintenance, operation, and repair of the accommodations or
182	facilities, or both, constituting the timeshare plan.
183	(b) Any other expenses, fees, or taxesdesignated as
184	common expenses in a timeshare instrument.
185	(c) Any past due and uncollected ad valorem taxes assessed
186	against a timeshare development pursuant to s. 192.037.
187	(7)(6)"Completion of construction" means:
188	(a)1. That a certificate of occupancy has been issued for
189	the entire building in which the timeshare unit being sold is
190	located, or for the improvement, or that the equivalent
191	authorization has been issued, by the governmental body having
192	jurisdiction; or
193	2. In a jurisdiction in which no certificate of occupancy
194	or equivalent authorization is issued, that the construction,
195	finishing, and equipping of the building or improvements
196	according to the plans and specifications have been
197	substantially completed; or
198	3. With respect to personal property timeshare plans, that
199	all accommodations have been manufactured or built and acquired
200	or leased by the developer, owners’ association, managing
201	entity, trustee, or other person for the use of purchasers as
202	set forth in the timeshare instrument;and
203	(b) That all accommodations and facilities of the
204	timeshare plan are available for use in a manner identical in
205	all material respects to the manner portrayed by the promotional
206	material, advertising, and filedregisteredpublic offering
207	statements.
208	(8)(7)"Conspicuous type" means:
209	(a) Type in upper and lower case letters two point sizes
210	larger than the largest nonconspicuous type, exclusive of
211	headings, on the page on which it appears but in at least 10-
212	point type; or
213	(b) Where the use of 10-point type would be impractical or
214	impossible with respect to a particular piece of written
215	advertising material, a different style of type or print may be
216	used, so long as the print remains conspicuous under the
217	circumstances.
218
219	Where conspicuous type is required, it must be separated on all
220	sides from other type and print. Conspicuous type may be
221	utilized in contracts for purchase or public offering statements
222	only where required by law or as authorized by the division.
223	(9)(8)"Contract" means any agreement conferring the
224	rights and obligations of a timeshare plan on the purchaser.
225	(10)(9)"Developer" includes:
226	(a) A "creating developer," which means any person who
227	creates the timeshare plan;
228	(b) A "successor developer," which means any person who
229	succeeds to the interest of the persons in this subsection by
230	sale, lease, assignment, mortgage, or other transfer, but the
231	term includes only those persons who offer timeshare interests
232	in the ordinary course of business; and
233	(c) A "concurrent developer," which means any person
234	acting concurrently with the persons in this subsection with the
235	purpose of offering timeshare interests in the ordinary course
236	of business.
237	(d) The term "developer" does not include:
238	1. An owner of a timeshare interest who has acquired the
239	timeshare interest for his or her own use and occupancy and who
240	later offers it for resale; provided that a rebuttable
241	presumption shall exist that an owner who has acquired more than
242	seven timeshare interests did not acquire them for his or her
243	own use and occupancy;
244	2. A managing entity, not otherwise a developer, that
245	offers, or engages a third party to offer on its behalf,
246	timeshare interests in a timeshare plan which it manages,
247	provided that such offer complies with the provisions of s.
248	721.065;
249	3. A person who owns or is conveyed, assigned, or
250	transferred more than seven timeshare interests and who
251	subsequently conveys, assigns, or transfers all acquired
252	timeshare interests to a single purchaser in a single
253	transaction, which transaction may occur in stages; or
254	4. A person who has acquired or has the right to acquire
255	more than seven timeshare interests from a developer or other
256	interestholder in connection with a loan, securitization,
257	conduit, or similar financing arrangement transaction and who
258	subsequently arranges for all or a portion of the timeshare
259	interests to be offered by one or more developers in the
260	ordinary course of business on their own behalves or on behalf
261	of such person.
262	(e) A successor or concurrent developer shall be exempt
263	from any liability inuring to a predecessor or concurrent
264	developer of the same timeshare plan, except as provided in s.
265	721.15(7), provided that this exemption shall not apply to any
266	of the successor or concurrent developer's responsibilities,
267	duties, or liabilities with respect to the timeshare plan that
268	accrue after the date the successor or concurrent developer
269	became a successor or concurrent developer, and provided that
270	such transfer does not constitute a fraudulent transfer. In
271	addition to other provisions of law, a transfer by a predecessor
272	developer to a successor or concurrent developer shall be deemed
273	fraudulent if the predecessor developer made the transfer:
274	1. With actual intent to hinder, delay, or defraud any
275	purchaser or the division; or
276	2. To a person that would constitute an insider under s.
277	726.102(7).
278	The provisions of this paragraph shall not be construed to
279	relieve any successor or concurrent developer from the
280	obligation to comply with the provisions of any applicable
281	timeshare instrument.
282	(11)(10)"Division" means the Division of Florida Land
283	Sales, Condominiums, and Mobile Homes of the Department of
284	Business and Professional Regulation.
285	(12)(11)"Enrolled" means paid membership in an exchange
286	program or membership in an exchange program evidenced by
287	written acceptance or confirmation of membership.
288	(13)(12)"Escrow account" means an account established
289	solely for the purposes set forth in this chapter with a
290	financial institution located within this state.
291	(14)(13)"Escrow agent" includes only:
292	(a) A savings and loan association, bank, trust company,
293	or other financial institution, any of which must be located in
294	this state and any of which must have a net worth in excess of
295	$5 million;
296	(b) An attorney who is a member of The Florida Bar or his
297	or her law firm;
298	(c) A real estate broker who is licensed pursuant to
299	chapter 475 or his or her brokerage firm; or
300	(d) A title insurance agent that is licensed pursuant to
301	s. 626.8417, a title insurance agency that is licensed pursuant
302	to s. 626.8418, or a title insurer authorized to transact
303	business in this state pursuant to s. 624.401.
304	(15)(14)"Exchange company" means any person owning or
305	operating, or owning and operating, an exchange program.
306	(16)(15)"Exchange program" means any method, arrangement,
307	or procedure for the voluntary exchange of the right to use and
308	occupy accommodations and facilities among purchasers. The term
309	does not include the assignment of the right to use and occupy
310	accommodations and facilities to purchasers pursuant to a
311	particular multisite timeshare plan's reservation system. Any
312	method, arrangement, or procedure that otherwise meets this
313	definition, wherein the purchaser's total contractual financial
314	obligation exceeds $3,000 per any individual, recurring
315	timeshare period, shall be regulated as a multisite timeshare
316	plan in accordance with part II.
317	(17)(16)"Facility" means any amenity, including any
318	structure, furnishing, fixture, equipment, service, improvement,
319	or real or personal property, improved or unimproved, other than
320	antheaccommodation of the timeshare plan, which is made
321	available to the purchasers of a timeshare plan. The term does
322	not include an incidental benefit as defined in this section.
323	(18) "Filed public offering statement" means a public
324	offering statement that has been filed with the division
325	pursuant to s. 721.07(5) or s. 721.55.
326	(19)(17)"Incidental benefit" means an accommodation,
327	product, service, discount, or other benefit which is offered to
328	a prospective purchaser of a timeshare plan or to a purchaser of
329	a timeshare plan prior to the expiration of his or her initial
330	10-day voidability period pursuant to s. 721.10; which is not an
331	exchange program as defined in subsection (16)(15); and which
332	complies with the provisions of s. 721.075. The term shall not
333	include an offer of the use of the accommodations and facilities
334	of the timeshare plan on a free or discounted one-time basis.
335	(20)(18)"Independent," for purposes of determining
336	eligibility of escrow agents and trustees pursuant to s.
337	721.03(7), means that:
338	(a) The escrow agent or trustee is not a relative, as
339	described in s. 112.3135(1)(d), or an employee of the developer,
340	seller, or managing entity, or of any officer, director,
341	affiliate, or subsidiary thereof.
342	(b) There is no financial relationship, other than the
343	payment of fiduciary fees or as otherwise provided in this
344	subsection, between the escrow agent or trustee and the
345	developer, seller, or managing entity, or any officer, director,
346	affiliate, or subsidiary thereof.
347	(c) Compensation paid by the developer to an escrow agent
348	or trustee for services rendered shall not be paid from funds in
349	the escrow or trust account unless and until the developer is
350	otherwise entitled to receive the disbursement of such funds
351	from the escrow or trust account pursuant to this chapter.
352	(d) A person shall not be disqualified to serve as an
353	escrow agent or a trustee solely because of the following:
354	1. A nonemployee, attorney-client relationship exists
355	between the developer and the escrow agent or trustee;
356	2. The escrow agent or trustee provides brokerage services
357	as defined by chapter 475 for the developer;
358	3. The escrow agent or trustee provides the developer with
359	routine banking services which do not include construction or
360	receivables financing or any other lending activities; or
361	4. The escrow agent or trustee performs closings for the
362	developer or seller or issues owner's or lender's title
363	insurance commitments or policies in connection with such
364	closings.
365	(21)(19)"Interestholder" means a developer, an owner of
366	the underlying fee or owner of the underlying personal property,
367	a mortgagee, judgment creditor, or other lienor, or any other
368	person having an interest in or lien or encumbrance against the
369	accommodations or facilities of the timeshare plan.
370	(22)(20)"Managing entity" means the person who operates
371	or maintains the timeshare plan pursuant to s. 721.13(1).
372	(23)(21)"Memorandum of agreement" means a written
373	document, in arecordable form sufficient to permit the document
374	to be recorded or otherwise filed in the appropriate public
375	records and to provide constructive notice of its contents under
376	applicable law, which includes the names of the seller and the
377	purchasers, a legal description of the timeshare property, or
378	other sufficient description for a personal property timeshare
379	plan,and all timeshare interests to be included in such
380	document, and a description of the type of timeshare interest
381	licensesold by the seller.
382	(24)(22)"Offer to sell," "offer for sale," "offered for
383	sale," or "offer" means the solicitation, advertisement, or
384	inducement, or any other method or attempt, to encourage any
385	person to acquire the opportunity to participate in a timeshare
386	plan.
387	(25)(23)"One-to-one purchaser to accommodation ratio"
388	means the ratio of the number of purchasers eligible to use the
389	accommodations of a timeshare plan on a given day to the number
390	of accommodations available for use within the plan on that day,
391	such that the total number of purchasers eligible to use the
392	accommodations of the timeshare plan during a given calendar
393	year never exceeds the total number of accommodations available
394	for use in the timeshare plan during that year. For purposes of
395	calculation under this subsection, each purchaser must be
396	counted at least once, and no individual timeshare unit may be
397	counted more than 365 times per calendar year (or more than 366
398	times per leap year). A purchaser who is delinquent in the
399	payment of timeshare plan assessments shall continue to be
400	considered eligible to use the accommodations of the timeshare
401	plan for purposes of this subsection notwithstanding any
402	application of s. 721.13(6).
403	(26)(24) "Owner of the underlying fee" or "owner of the
404	underlying personal property"means any person having an
405	interest in the real property or personal property comprising or
406	underlying the accommodations or facilities of athetimeshare
407	plan at or subsequent to the time of creation of the timeshare
408	plan.
409	(27)(25) "Owners' association" means antheassociation
410	made up of all owners of timeshare interests in a timeshare
411	plan, including developers and purchasers of suchatimeshare
412	plan who have purchased timeshare estates.
413	(28) "Personal property timeshare interest" means a right
414	to occupy an accommodation located on or in or comprised of
415	personal property that is not permanently affixed to real
416	property, whether or not coupled with a beneficial or ownership
417	interest in the accommodations or personal property.
418	(29)(26)"Public offering statement" means the written
419	materials describing a single-site timeshare plan or a multisite
420	timeshare plan, including a text and any exhibits attached
421	thereto as required by ss. 721.07, 721.55, and 721.551. The term
422	"public offering statement" shall refer to both a filed
423	registeredpublic offering statement and a purchaser public
424	offering statement.
425	(30)(27)"Purchaser" means any person, other than a
426	developer, who by means of a voluntary transfer acquires a legal
427	or equitable interest in a timeshare plan other than as security
428	for an obligation.
429	(31)(28)"Purchaser public offering statement" means that
430	portion of the filedregisteredpublic offering statement which
431	must be delivered to purchasers pursuant to s. 721.07(6) or s.
432	721.551.
433	(29) "Registered public offering statement" means a public
434	offering statement which has been filed with the division
435	pursuant to s. 721.07(5) or s. 721.55.
436	(32)(30)"Regulated short-term product" means a
437	contractual right, offered by the seller, to use accommodations
438	of a timeshare plan or other accommodations, provided that:
439	(a) The agreement to purchase the short-term right to use
440	is executed in this state on the same day that the prospective
441	purchaser receives an offer to acquire an interest in a
442	timeshare plan and does not execute a purchase contract, after
443	attending a sales presentation; and
444	(b) The acquisition of the right to use includes an
445	agreement that all or a portion of the consideration paid by the
446	prospective purchaser for the right to use will be applied to or
447	credited against the price of a future purchase of a timeshare
448	interest, or that the cost of a future purchase of a timeshare
449	interest will be fixed or locked in at a specified price.
450	(33)(31)"Seller" means any developer or any other person,
451	or any agent or employee thereof, who offers timeshare interests
452	in the ordinary course of business. The term "seller" does not
453	include:
454	(a) An owner of a timeshare interest who has acquired the
455	timeshare interest for his or her own use and occupancy and who
456	later offers it for resale; provided that a rebuttable
457	presumption shall exist that an owner who has acquired more than
458	seven timeshare interests did not acquire them for his or her
459	own use and occupancy;
460	(b) A managing entity, not otherwise a seller, that
461	offers, or engages a third party to offer on its behalf,
462	timeshare interests in a timeshare plan which it manages,
463	provided that such offer complies with the provisions of s.
464	721.065;
465	(c) A person who owns or is conveyed, assigned, or
466	transferred more than seven timeshare interests and who
467	subsequently conveys, assigns, or transfers all acquired
468	timeshare interests to a single purchaser in a single
469	transaction, which transaction may occur in stages; or
470	(d) A person who has acquired or has the right to acquire
471	more than seven timeshare interests from a developer or other
472	interestholder in connection with a loan, securitization,
473	conduit, or similar financing arrangement and who subsequently
474	arranges for all or a portion of the timeshare interests to be
475	offered by one or more developers in the ordinary course of
476	business on their own behalves or on behalf of such person.
477	(34)(32)"Timeshare estate" means a right to occupy a
478	timeshare unit, coupled with a freehold estate or an estate for
479	years with a future interest in a timeshare property or a
480	specified portion thereof. The term shall also mean an interest
481	in a condominium unit pursuant to s. 718.103, an interest in a
482	cooperative unit pursuant to s. 719.103, or an interest in a
483	trust that complies in all respects with the provisions of s.
484	721.08(2)(c)4.3., provided that the trust does not contain any
485	personal property timeshare interests. A timeshare estate is a
486	parcel of real property under the laws of this state.
487	(35)(33)"Timeshare instrument" means one or more
488	documents, by whatever name denominated, creating or governing
489	the operation of a timeshare plan.
490	(36)(34) "Timeshare interest" means a timeshare estate, a
491	personal property timeshare interest, or atimeshare license.
492	(37)(35)"Timeshare license" means a right to occupy a
493	timeshare unit, which right is not a personal property timeshare
494	neither coupled with a freehold interest or a timeshare, nor
495	coupled with an estate for years with a future interest, in a
496	timeshare property.
497	(38)(36)"Timeshare period" means the period or periods of
498	time when a purchaser of a timeshare interest is afforded the
499	opportunity to use the accommodations or facilities, or both,of
500	a timeshare plan.
501	(39)(37)"Timeshare plan" means any arrangement, plan,
502	scheme, or similar device, other than an exchange program,
503	whether by membership, agreement, tenancy in common, sale,
504	lease, deed, rental agreement, license, or right-to-use
505	agreement or by any other means, whereby a purchaser, for
506	consideration, receives ownership rights in or a right to use
507	accommodations, and facilities, if any, for a period of time
508	less than a full year during any given year, but not necessarily
509	for consecutive years. The term “timeshare plan” includes:
510	(a) A “personal property timeshare plan,” which means a
511	timeshare plan in which the accommodations are comprised of
512	personal property that is not permanently affixed to real
513	property; and
514	(b) A “real property timeshare plan,” which means a
515	timeshare plan in which the accommodations of the timeshare plan
516	are comprised of or permanently affixed to real property.
517	(40)(38)"Timeshare property" means one or more timeshare
518	units subject to the same timeshare instrument, together with
519	any other property or rights to property appurtenant to those
520	timeshare units. Notwithstanding anything to the contrary
521	contained in chapter 718 or chapter 719, the timeshare
522	instrument for a timeshare condominium or cooperative may
523	designate personal property, contractual rights, affiliation
524	agreements of component sites of vacation clubs, exchange
525	companies, or reservation systems, or any other agreements or
526	personal property, as common elements or limited common elements
527	of the timeshare condominium or cooperative.
528	(41)(39)"Timeshare unit" means an accommodation of a
529	timeshare plan which is divided into timeshare periods. Any
530	timeshare unit in which a door or doors connecting two or more
531	separate rooms are capable of being locked to create two or more
532	private dwellings shall only constitute one timeshare unit for
533	purposes of this chapter, unless the timeshare instrument
534	provides that timeshare interests may be separately conveyed in
535	such locked-off portions.
536	(40) "Vacation ownership plan" means any timeshare plan
537	consisting exclusively of timeshare estates.
538	(41) "Vacation plan" or "vacation membership plan" means
539	any timeshare plan consisting exclusively of timeshare licenses
540	or consisting of a combination of timeshare licenses and
541	timeshare estates.
542	Section 4. Section 721.06, Florida Statutes, is amended to
543	read:
544	721.06 Contracts for purchase of timeshare interests.--
545	(1) Each seller shall utilize and furnish each purchaser a
546	fully completed and executed copy of a contract pertaining to
547	the sale, which contract shall include the following
548	information:
549	(a) The actual date the contract is executed by each
550	party.
551	(b) The names and addresses of the developer and the
552	timeshare plan.
553	(c) The initial purchase price and any additional charges
554	to which the purchaser may be subject in connection with the
555	purchase of the timeshare interest, such as financing, or which
556	will be collected from the purchaser on or before closing, such
557	as the current year's annual assessment for common expenses.
558	(d)1. For real property timeshare plans, an estimate of
559	any anticipated annual assessment stated on anAnyannually
560	recurring basis for any use charges, fees, charge and the next
561	year's estimated annual assessment for common expenses, orand
562	for ad valorem taxes or, if an estimate for next year's
563	assessmentis unavailable, the current year's actual annual
564	assessment for any use charges, fees, common expenses, orand
565	forad valorem taxes.
566	2. For personal property timeshare plans, an estimate of
567	any anticipated annual assessment stated on an annually
568	recurring basis for any use charges, fees, common expenses, or
569	taxes or, if an estimate is unavailable, the current year's
570	actual annual assessment for any use charges, fees, common
571	expenses, or taxes.
572	(e) The estimated date of completion of construction of
573	each accommodation or facility promised to be completed which is
574	not completed at the time the contract is executed and the
575	estimated date of closing.
576	(f) A brief description of the nature and duration of the
577	timeshare interest being sold, including whether any interest in
578	real property or personal propertyis being conveyed and the
579	specific number of years constituting the term of the timeshare
580	plan.
581	(g) Immediately prior to the space reserved in the
582	contract for the signature of the purchaser, in conspicuous
583	type, substantially the following statements:
584	1. If the purchaser will receive a personal property
585	timeshare interest: This personal property timeshare plan is
586	governed only by limited sections of the timeshare management
587	provisions of Florida law.
588	2. If the accommodations or facilities are located on or
589	in a documented vessel or foreign vessel as provided in s.
590	721.08(2)(c)3.e., the disclosure required by s.
591	721.08(2)(c)3.e.(IV).
592	3.You may cancel this contract without any penalty or
593	obligation within 10 calendar days after the date you sign this
594	contract or the date on which you receive the last of all
595	documents required to be given to you pursuant to section
596	721.07(6), Florida Statutes, whichever is later. If you decide
597	to cancel this contract, you must notify the seller in writing
598	of your intent to cancel. Your notice of cancellation shall be
599	effective upon the date sent and shall be sent to ... (Name of
600	Seller) ... at ... (Address of Seller) .... Any attempt to
601	obtain a waiver of your cancellation right is void and of no
602	effect. While you may execute all closing documents in advance,
603	the closing, as evidenced by delivery of the deed or other
604	document, before expiration of your 10-day cancellation period,
605	is prohibited.
606
607	(h) If a timeshare estate is being conveyed, the following
608	statement in conspicuous type:
609
610	For the purpose of ad valorem assessment, taxation and
611	special assessments, the managing entity will be considered the
612	taxpayer as your agent pursuant to section 192.037, Florida
613	Statutes.
614
615	(i) A statement that, in the event the purchaser cancels
616	the contract during a 10-day cancellation period, the developer
617	will refund to the purchaser the total amount of all payments
618	made by the purchaser under the contract, reduced by the
619	proportion of any contract benefits the purchaser has actually
620	received under the contract prior to the effective date of the
621	cancellation. The statement shall further provide that the
622	refund will be made within 20 days after receipt of notice of
623	cancellation or within 5 days after receipt of funds from the
624	purchaser's cleared check, whichever is later. A seller and a
625	purchaser shall agree in writing on a specific value for each
626	contract benefit received by the purchaser for purposes of this
627	paragraph. The term "contract benefit" shall not include
628	purchaser public offering statements or other documentation or
629	materials that must be furnished to a purchaser pursuant to
630	statute or rule.
631	(j) If the timeshare interest is being sold pursuant to an
632	agreement for deed or an agreement for transfer, a statement
633	that the signing of the agreement for deed or agreement for
634	transfer does not entitle the purchaser to receive the
635	conveyance or transfer of his or her timeshare estate or
636	personal property timeshare interesta deeduntil all payments
637	under the agreement have been made.
638	(k) Unless the developer is,at the time of offering the
639	plan, the owner in fee simple absoluteof the accommodations and
640	facilities of the timeshare plan, free and clear of all liens,
641	and encumbrances, and claims of other interestholders,a
642	statement that the developer is not the sole owner of the
643	underlying fee or owner of the underlying personal property or
644	that thesuch accommodations or facilities are subject to
645	withoutliens or encumbrances, which statement shall include:
646	1. The names and addresses of all other interestholders
647	persons or entities having an ownership interest or other
648	interest in the accommodations or facilities; and
649	2. The actual interest of the developer in the
650	accommodations or facilities. As an alternative to including the
651	statement in the purchase contract, a seller may include a
652	reference in the purchase contract to the location in the
653	purchaser public offering statement text of such information.
654	(l) If the purchaser will receive an interest in a
655	multisite timeshare plan pursuant to part II, a statement shall
656	be provided in conspicuous type in substantially the following
657	form:
658
659	The developer is required to provide the managing entity of
660	the multisite timeshare plan with a copy of the approved public
661	offering statement text and exhibits filed with the division and
662	any approved amendments thereto, and any other component site
663	documents as described in section 721.07 or section 721.55,
664	Florida Statutes, that are not required to be filed with the
665	division, to be maintained by the managing entity for inspection
666	as part of the books and records of the plan.
667
668	(m) The following statement in conspicuous type:
669
670	Any resale of this timeshare interest must be accompanied
671	by certain disclosures in accordance with section 721.065,
672	Florida Statutes.
673
674	(n) A description of any rights reserved by the developer
675	to alter or modify the offering prior to closing.
676	(2)(a)An agreement for deed shall be recorded by the
677	developer within 30 days after the day it is executed by the
678	purchaser. The developer shall pay all recording costs
679	associated therewith. A form copy of such instrument must be
680	filed with the division for review pursuant to s. 721.07.
681	(b) An agreement for transfer shall be filed with the
682	Secretary of State or other appropriate official responsible for
683	maintaining such records in the appropriate jurisdiction within
684	30 days after the day it is executed by the purchaser. The
685	developer shall pay all filing costs associated therewith. A
686	form copy of such instrument must be filed with the division for
687	review pursuant to s. 721.07.
688	(3) The escrow agent shall provide the developer with a
689	receipt for all purchaser funds or other property received by
690	the escrow agent from a seller.
691	Section 5. Paragraph (b) of subsection (2) of section
692	721.065, Florida Statutes, is amended to read:
693	721.065 Resale purchase agreements.--
694	(2) Any resale purchase agreement utilized by a person
695	described in subsection (1) must contain all of the following:
696	(b) One ofthe following statements in conspicuous type
697	located immediately prior to the disclosure required by
698	paragraph (c):
699	1. If the resale purchase agreement pertains to a real
700	property timeshare plan:
701
702	The current year's assessment for common expenses allocable to
703	the timeshare interest you are purchasing is $_____. This
704	assessment, which may be increased from time to time by the
705	managing entity of the timeshare plan, is payable in full each
706	year on or before __________. This assessment (includes/does not
707	include) yearly ad valorem real estate taxes, which (are/are
708	not) billed and collected separately. (If ad valorem real
709	property taxes are not included in the current year's assessment
710	for common expenses, the following statement must be included:
711	The most recent annual assessment for ad valorem real estate
712	taxes for the timeshare interest you are purchasing is $_____.)
713	(If there are any delinquent assessments for common expenses or
714	ad valorem taxes outstanding with respect to the timeshare
715	interest in question, the following statement must be included:
716	A delinquency in the amount of $_____ for unpaid common expenses
717	or ad valorem taxes currently exists with respect to the
718	timeshare interest you are purchasing, together with a per diem
719	charge of $_____ for interest and late charges.) For the purpose
720	of ad valorem assessment, taxation, and special assessments, the
721	managing entity will be considered the taxpayer as your agent
722	pursuant to section 192.037, Florida Statutes. Each owner is
723	personally liable for the payment of her or his assessments for
724	common expenses, and failure to timely pay these assessments may
725	result in restriction or loss of your use and/or ownership
726	rights.
727
728	There are many important documents relating to the timeshare
729	plan which you should review prior to purchasing a timeshare
730	interest, including the declaration of condominium or covenants
731	and restrictions; the owners'association articles and bylaws;
732	the current year's operating and reserve budgets; and any rules
733	and regulations affecting the use of timeshare plan
734	accommodations and facilities.
735
736	2. If the resale purchase agreement pertains to a personal
737	property timeshare plan:
738
739	The current year's assessment for any common expenses, use
740	charges, fees, or taxes allocable to the timeshare interest you
741	are purchasing is $_____. This assessment, which may be
742	increased from time to time by the managing entity of the
743	timeshare plan, is payable in full each year on or before
744	__________. (If there are any delinquent assessments for common
745	expenses, use charges, fees, or taxes outstanding with respect
746	to the timeshare interest in question, the following statement
747	must be included: A delinquency in the amount of $_____ for
748	unpaid common expenses, use charges, fees, or taxes currently
749	exists with respect to the timeshare interest you are
750	purchasing, together with a per diem charge of $_____ for
751	interest and late charges.) Each owner is personally liable for
752	the payment of her or his assessments for common expenses, and
753	failure to timely pay these assessments may result in
754	restriction or loss of your use and/or ownership rights.
755
756	There are many important documents relating to the timeshare
757	plan which you should review prior to purchasing a timeshare
758	interest, including any owners’ association articles and bylaws;
759	the current year's operating and reserve budgets; and any rules
760	and regulations affecting the use of timeshare plan
761	accommodations and facilities.
762	Section 6. Section 721.07, Florida Statutes, is amended to
763	read:
764	721.07 Public offering statement.--Prior to offering any
765	timeshare plan, the developer must submit a filedregistered
766	public offering statement to the division for approval as
767	prescribed by s. 721.03, s. 721.55, or this section. Until the
768	division approves such filing, any contract regarding the sale
769	of that timeshare plan is subject to cancellationvoidableby
770	the purchaser pursuant to s. 721.10.
771	(1) The division shall, upon receiving a filedregistered
772	public offering statement from a developer, mail to the
773	developer an acknowledgment of receipt. The failure of the
774	division to send such acknowledgment will not, however, relieve
775	the developer from the duty of complying with this section.
776	(2)(a) Within 45 days after receipt of a filedregistered
777	public offering statement which is subject only to this part and
778	is submitted in proper form as prescribed by rule, or within 120
779	days after receipt of a filedregisteredpublic offering
780	statement which is subject to part II and is submitted in proper
781	form as prescribed by rule, the division shall determine whether
782	the proposed filedregisteredpublic offering statement is
783	adequate to meet the requirements of this section and shall
784	notify the developer by mail that the division has either
785	approved the statement or found specified deficiencies in the
786	statement. If the division fails to approve the statement or
787	specify deficiencies in the statement within the period
788	specified in this paragraph, the filing will be deemed approved.
789	(b) If the developer fails to respond to any cited
790	deficiencies within 20 days after receipt of the division's
791	deficiency notice, the division may reject the filing.
792	Subsequent to such rejection, a new filing fee pursuant to
793	subsection (4) and a new division initial review period pursuant
794	to paragraph (a) shall apply to any refiling or further review
795	of the rejected filing.
796	(c) Within 20 days after receipt of the developer's timely
797	and complete response to any deficiency notice, the division
798	shall notify the developer by mail that the division has either
799	approved the filing, found additional specified deficiencies in
800	it, or determined that any previously specified deficiency has
801	not been corrected. If the division fails to approve or specify
802	additional deficiencies within 20 days after receipt of the
803	developer's timely and complete response, the filing will be
804	deemed approved.
805	(d) A developer shall have the authority to deliver to
806	purchasers any purchaser public offering statement that is not
807	yet approved by the division, provided that the following shall
808	apply:
809	1. At the time the developer delivers an unapproved
810	purchaser public offering statement to a purchaser pursuant to
811	this paragraph, the developer shall deliver a fully completed
812	and executed copy of the purchase contract required by s. 721.06
813	that contains the following statement in conspicuous type in
814	substantially the following form which shall replace the
815	statements required by s. 721.06(1)(g):
816
817	The developer is delivering to you a public offering statement
818	that has been filed with but not yet approved by the Division of
819	Florida Land Sales, Condominiums, and Mobile Homes. Any
820	revisions to the unapproved public offering statement you have
821	received must be delivered to you, but only if the revisions
822	materially alter or modify the offering in a manner adverse to
823	you. After the division approves the public offering statement,
824	you will receive notice of the approval from the developer and
825	the required revisions, if any.
826
827	Your statutory right to cancel this transaction without any
828	penalty or obligation expires 10 calendar days after the date
829	you signed your purchase contract or the date on which you
830	receive the last of all documents required to be given to you
831	pursuant to section 721.07(6), Florida Statutes, or10 calendar
832	days after you receive revisions required to be delivered to
833	you, if any, whichever is later. If you decide to cancel this
834	contract, you must notify the seller in writing of your intent
835	to cancel. Your notice of cancellation shall be effective upon
836	the date sent and shall be sent to (Name of Seller) at (Address
837	of Seller). Any attempt to obtain a waiver of your cancellation
838	right is void and of no effect. While you may execute all
839	closing documents in advance, the closing, as evidenced by
840	delivery of the deed or other document, before expiration of
841	your 10-day cancellation period, is prohibited.
842
843	2. After receipt of approval from the division and prior
844	to closing, if any revisions made to the documents contained in
845	the purchaser public offering statement materially alter or
846	modify the offering in a manner adverse to a purchaser, the
847	developer shall send the purchaser such revisions together with
848	a notice containing a statement in conspicuous type in
849	substantially the following form:
850
851	The unapproved public offering statement previously delivered to
852	you, together with the enclosed revisions, has been approved by
853	the Division of Florida Land Sales, Condominiums, and Mobile
854	Homes. Accordingly, your cancellation right expires 10 calendar
855	days after you sign your purchase contract or 10 calendar days
856	after you receive these revisions, whichever is later. If you
857	have any questions regarding your cancellation rights, you may
858	contact the division at [insert division's current address].
859
860	3. After receipt of approval from the division and prior
861	to closing, if no revisions have been made to the documents
862	contained in the unapproved purchaser public offering statement,
863	or if such revisions do not materially alter or modify the
864	offering in a manner adverse to a purchaser, the developer shall
865	send the purchaser a notice containing a statement in
866	conspicuous type in substantially the following form:
867
868	The unapproved public offering statement previously delivered to
869	you has been approved by the Division of Florida Land Sales,
870	Condominiums, and Mobile Homes. Revisions made to the unapproved
871	public offering statement, if any, are either not required to be
872	delivered to you or are not deemed by the developer, in its
873	opinion, to materially alter or modify the offering in a manner
874	that is adverse to you. Accordingly, your cancellation right
875	expired 10 days after you signed your purchase contract. A
876	complete copy of the approved public offering statement is
877	available through the managing entity for inspection as part of
878	the books and records of the plan. If you have any questions
879	regarding your cancellation rights, you may contact the division
880	at [insert division's current address].
881	(3)(a)1. Any change to an approved public offering
882	statement filing shall be filed with the division for approval
883	as an amendment prior to becoming effective. The division shall
884	have 20 days after receipt of a proposed amendment to approve or
885	cite deficiencies in the proposed amendment. If the division
886	fails to act within 20 days, the amendment will be deemed
887	approved. If the proposed amendment adds a new component site to
888	an approved multisite timeshare plan, the division's initial
889	period in which to approve or cite deficiencies is 45 days. If
890	the developer fails to adequately respond to any deficiency
891	notice within 30 days, the division may reject the amendment.
892	Subsequent to such rejection, a new filing fee pursuant to
893	subsection (4) and a new division initial review period pursuant
894	to this paragraph shall apply to any refiling or further review
895	of the rejected amendment.
896	2. For filings only subject to this part, each approved
897	amendment to the approved purchaser public offering statement,
898	other than an amendment made only for the purpose of the
899	addition of a phase or phases to the timeshare plan in the
900	manner described in the timeshare instrument or any amendment
901	that does not materially alter or modify the offering in a
902	manner that is adverse to a purchaser, shall be delivered to a
903	purchaser no later than 10 days prior to closing. For filings
904	made under part II, each approved amendment to the multisite
905	timeshare plan purchaser public offering statement, other than
906	an amendment made only for the purpose of the addition,
907	substitution, or deletion of a component site pursuant to part
908	II or the addition of a phase or phases to a component site of a
909	multisite timeshare plan in the manner described in the
910	timeshare instrument or any amendment that does not materially
911	alter or modify the offering in a manner that is adverse to a
912	purchaser, shall be delivered to a purchaser no later than 10
913	days prior to closing.
914	3. Amendments made to a timeshare instrument for a
915	component site located in this state are not required to be
916	delivered to purchasers who do not receive a timeshare estate or
917	an interest in a specific multisite timeshare planlicensein
918	that component site. Amendments made to a timeshare instrument
919	for a component site not located in this state are not required
920	to be delivered to purchasers.
921	(b) At the time that any amendments required to be
922	delivered to purchasers, as provided in paragraph (a), are
923	delivered to purchasers, the developer shall provide to those
924	purchasers who have not closed a written statement that the
925	purchaser or lessee will have a 10-day voidability period.
926	(4)(a) Upon the filing of a filedregisteredpublic
927	offering statement, the developer shall pay a filing fee of $2
928	for each 7 days of annual use availability in each timeshare
929	unit that may be offered as a part of the proposed timeshare
930	plan pursuant to the filing.
931	(b) Upon the filing of an amendment to an approved filed
932	registered public offering statement, other than an amendment
933	adding a phase to the timeshare plan, the developer shall pay a
934	filing fee of $100.
935	(5) Every filedregisteredpublic offering statement for a
936	timeshare plan which is not a multisite timeshare plan shall
937	contain the information required by this subsection. The
938	division is authorized to provide by rule the method by which a
939	developer must provide such information to the division.
940	(a) A cover page stating only:
941	1. The name of the timeshare plan; and
942	2. The following statement, in conspicuous type: This
943	public offering statement contains important matters to be
944	considered in acquiring a timeshare interest. The statements
945	contained in this public offering statement are only summary in
946	nature. A prospective purchaser should refer to all references,
947	accompanying exhibits, contract documents, and sales materials.
948	You should not rely upon oral representations as being correct.
949	Refer to this document and accompanying exhibits for correct
950	representations. The seller is prohibited from making any
951	representations other than those contained in the contract and
952	this public offering statement.
953	(b) A listing of all statements required to be in
954	conspicuous type in the public offering statement and in all
955	exhibits thereto.
956	(c) A separate index of the contents and exhibits of the
957	public offering statement.
958	(d) A text which shall include, where applicable, the
959	disclosures set forth in paragraphs (e)-(hh).
960	(e) A description of the timeshare plan, including, but
961	not limited to:
962	1. Its name and location.
963	2. An explanation of the form of timeshare ownership that
964	is being offered, including a statement as to whether any
965	interest in the underlying real property will be conveyed to the
966	purchaser. If the plan is being created or being sold on a
967	leasehold, a description of the material terms of the lease
968	shall be included. If the plan is a plan in which timeshare
969	estates or personal property timeshare interestsare sold as
970	interests in a trust pursuant to the requirements of this
971	chapter, a full and accurate description of the trust
972	arrangement and the trustee's duties shall be included. If the
973	plan is a personal property timeshare plan, a description of the
974	material terms of the arrangement for the ownership or use of
975	the personal property shall be included.
976	3. An explanation of the manner in which the apportionment
977	of common expenses and ownership of the common elements has been
978	determined.
979	4. If ownership or use of the timeshare plan is based on a
980	point system, a statement indicating the circumstances by which
981	the point values may change, the extent of such changes, and the
982	person or entity responsible for the changes.
983	5. If any of the accommodations or facilities are part of
984	a personal property timeshare plan in which the accommodations
985	or facilities are located on or in a documented vessel or
986	foreign vessel as provided in s. 721.08(2)(c)3.e., the
987	disclosure required by s. 721.08(2)(c)3.e.(IV).
988	(f) A description of the accommodations, including, but
989	not limited to:
990	1. The number of timeshare units in each building, the
991	total number of timeshare periods declared as part of the
992	timeshare plan and filed with the division, and the number of
993	bathrooms and bedrooms in each type of timeshare unit.
994	2. The latest date estimated for completion of
995	constructing, finishing, and equipping the timeshare units
996	declared as part of the timeshare plan and filed with the
997	division.
998	3. The estimated maximum number of units and timeshare
999	periods that will use the accommodations and facilities. If the
1000	maximum number of timeshare units or timeshare periods will
1001	vary, a description of the basis for variation.
1002	4. The duration, in years, of the timeshare plan.
1003	5. If any of the accommodations are part of a personal
1004	property timeshare plan, the name, vehicle registration number,
1005	title certificate number, or any other identifying registration
1006	number assigned to the accommodation of a personal property
1007	timeshare plan by a state, federal, or international
1008	governmental agency.
1009	6. If any of the accommodations are part of a personal
1010	property timeshare plan, the fire detection system and fire
1011	safety equipment and description of method of compliance with
1012	any applicable firesafety or fire detection regulations.
1013	(g) A description of anythefacilities that will be used
1014	by purchasers of the plan, including, but not limited to:
1015	1. The intended purpose, if not apparent from the
1016	description.
1017	2. The estimated date when each facility will be available
1018	for use by the purchaser.
1019	3. A statement as to whether the facilities will be used
1020	exclusively by purchasers of the timeshare plan, and, if not, a
1021	statement as to whether the purchasers of the timeshare plan are
1022	required to pay any portion of the maintenance and expenses of
1023	such facilities.
1024	(h)1. If any facilities offered by the developer for use
1025	by purchasers are to be leased or have club memberships
1026	associated with them, other than participation in a vacation
1027	club, one of the following statements in conspicuous type: There
1028	is a lease associated with one or more facilities of the
1029	timeshare plan; or, There is a club membership associated with
1030	one or more facilities of the timeshare plan.
1031	2. If it is mandatory that purchasers pay fees, rent,
1032	dues, or other charges under a facilities lease or club
1033	membership for the use of the facilities, other than
1034	participation in a vacation club, the applicable statement in
1035	conspicuous type in substantially the following form:
1036	a. Membership in a facilities club is mandatory for
1037	purchasers;
1038	b. Purchasers or the owners'association(s) are required,
1039	as a condition of ownership, to be lessees under the facilities
1040	lease;
1041	c. Purchasers or the owners'association(s) are required
1042	to pay their share of the rent or costs and expenses of
1043	maintenance, management, upkeep, and replacement under the
1044	facilities lease (or the other instruments providing the
1045	facilities); or
1046	d. A similar statement of the nature of the organization
1047	or the manner in which the use rights are created, and that
1048	purchasers are required to pay.
1049
1050	Immediately following the applicable statement, a description of
1051	the lease or other instrument shall be stated, including a
1052	description of terms of the payment of rent or costs and
1053	expenses of maintenance, management, upkeep, and replacement of
1054	the facilities.
1055	3. If the purchasers are required to pay a use fee, or
1056	other payment for the use of the facilities, not including the
1057	rent or maintenance, management, upkeep, or replacement costs
1058	and expenses, the following statement in conspicuous type: The
1059	purchasers or the owners'association(s) must pay use fees for
1060	one or more facilities. Immediately following this statement, a
1061	description of the use fees shall be included.
1062	4. If any person other than the owners'association has
1063	the right to a lien on the timeshare interests to secure the
1064	payment of assessments, rent, or other exactions, a statement in
1065	conspicuous type in substantially the following form:
1066	a. There is a lien or lien right against each timeshare
1067	interest to secure the payment of rent and other exactions under
1068	the facilities lease. A purchaser's failure to make these
1069	payments may result in foreclosure of the lien; or
1070	b. There is a lien or lien right against each timeshare
1071	interest to secure the payment of assessments or other exactions
1072	coming due for the use, maintenance, upkeep, or repair of one or
1073	more facilities. A purchaser's failure to make these payments
1074	may result in foreclosure of the lien.
1075
1076	Immediately following the applicable statement, a description of
1077	the lien right shall be included.
1078	(i) If the developer or any other person has the right to
1079	increase or add to the facilities at any time after the
1080	establishment of the timeshare plan, without the consent of the
1081	purchasers or owners'association being required, a statement in
1082	conspicuous type in substantially the following form: Facilities
1083	may be expanded or added without consent of the purchasers or
1084	the owners'association(s). Immediately following this
1085	statement, a description of such reserved rights shall be
1086	included.
1087	(j)1. For a real property timeshare plan,an explanation
1088	of the status of the title to the real property underlying the
1089	timeshare plan, including a statement of the existence of any
1090	lien, defect, judgment, mortgage, or other encumbrance affecting
1091	the title to the property, and how such lien, defect, judgment,
1092	mortgage, or other encumbrance will be removed or satisfied
1093	prior to closing.
1094	2. For a personal property timeshare plan, an explanation
1095	of the status of title to the personal property underlying the
1096	timeshare plan, including a statement of the existence of any
1097	lien, defect, judgment, or other encumbrance affecting the title
1098	to the personal property, and how such lien, defect, judgment,
1099	or other encumbrance will be removed or satisfied prior to
1100	closing.
1101	(k) A description of any judgment against the developer,
1102	the managing entity, owner of the underlying fee,or owner of
1103	the underlying personal propertyfee, which judgment is material
1104	to the timeshare plan; the status of any pending suit to which
1105	the developer, the managing entity, owner of the underlying fee,
1106	or owner of the underlying personal propertyfeeis a party,
1107	which suit is material to the timeshare plan; and any other suit
1108	which is material to the timeshare plan of which the developer,
1109	managing entity, owner of the underlying fee,or owner of the
1110	underlying personal propertyfeehas actual knowledge. If no
1111	judgments or pending suits exist, there shall be a statement of
1112	such fact.
1113	(l) A description of all unusual and material
1114	circumstances, features, and characteristics of the real
1115	property or personal property underlying or comprising the
1116	timeshare plan.
1117	(m) A description of any financing to be offered to
1118	purchasers by the developer or any person or entity in which the
1119	developer has a financial interest, together with a disclosure
1120	that the description of such financing may be changed by the
1121	developer and that any change in the financing offered to
1122	prospective purchasers will not be deemed to be a material
1123	change.
1124	(n) A detailed explanation of any financial arrangements
1125	which have been provided for completion of all promised
1126	improvements.
1127	(o) The name and address of the managing entity; a
1128	statement whether the seller may change the managing entity or
1129	its control and, if so, the manner by which the seller may
1130	change the managing entity; a statement of the arrangements for
1131	management, maintenance, and operation of the accommodations and
1132	facilities and of other property that will serve the purchasers;
1133	and a description of the management arrangement and any
1134	contracts for these purposes having a term in excess of 1 year,
1135	including the names of the contracting parties, the term of the
1136	contract, the nature of the services included, and the
1137	compensation, stated for a month and for a year, and provisions
1138	for increases in the compensation. In the case of a personal
1139	property timeshare plan in which the accommodations or
1140	facilities are located on or in a documented vessel or foreign
1141	vessel as provided in s. 721.08(2)(c)3.e., a statement shall be
1142	included that describes the trustee’s or owners’ association’s
1143	access to the certificates of classification and that the
1144	certificate of classification will be made available to
1145	purchasers on request.
1146	(p) If any person other than the purchasers has the right
1147	to retain control of the board of administration of the owners'
1148	association, if any,for a period of time which may exceed 1
1149	year after the closing of the sale of a majority of the
1150	timeshare interests in that timeshare plan to persons other than
1151	successors or concurrent developers and the plan is one in which
1152	all purchasers automatically become members of the owners'
1153	association, a statement in conspicuous type in substantially
1154	the following form: The developer (or other person) has the
1155	right to retain control of the owners'association after a
1156	majority of the timeshare interests have been sold. Immediately
1157	following this statement, a description of the applicable
1158	transfer of control provisions of the timeshare plan shall be
1159	included.
1160	(q)1. If there are any restrictions upon the sale,
1161	transfer, conveyance, or leasing of a timeshare interest, a
1162	statement in conspicuous type in substantially the following
1163	form: The sale, lease, or transfer of timeshare interests is
1164	restricted or controlled. Immediately following this statement,
1165	a description of the nature of the restriction, limitation, or
1166	control on the sale, lease, or transfer of timeshare interests
1167	shall be included.
1168	2. The following statement in conspicuous type in
1169	substantially the following form: The purchase of a timeshare
1170	interest should be based upon its value as a vacation experience
1171	or for spending leisure time, and not considered for purposes of
1172	acquiring an appreciating investment or with an expectation that
1173	the timeshare interest may be resold.
1174	(r) If the timeshare plan is part of a phase project, a
1175	statement to that effect and a complete description of the
1176	phasing. Notwithstanding any provisions of s. 718.110 or s.
1177	719.1055, a developer may develop a timeshare condominium or a
1178	timeshare cooperative in phases if the original declaration of
1179	condominium or cooperative documents submitting the initial
1180	phase to condominium ownership or cooperative ownership or an
1181	amendment to the declaration of condominium or cooperative
1182	documents which has been approved by all of the unit owners and
1183	unit mortgagees provides for phasing. Notwithstanding any
1184	provisions of s. 718.403 or s. 719.403 to the contrary, the
1185	original declaration of condominium or cooperative documents, or
1186	an amendment to the declaration of condominium or cooperative
1187	documents adopted pursuant to this subsection, need only
1188	generally describe the developer's phasing plan and the land
1189	which may become part of the condominium or cooperative, and, in
1190	conjunction therewith, the developer may also reserve all rights
1191	to vary his or her phasing plan as to phase boundaries, plot
1192	plans and floor plans, timeshare unit types, timeshare unit
1193	sizes and timeshare unit type mixes, numbers of timeshare units,
1194	and facilities with respect to each subsequent phase. There
1195	shall be no time limit during which a developer of a timeshare
1196	condominium or timeshare cooperative must complete his or her
1197	phasing plan, and the developer shall not be required to notify
1198	owners of existing timeshare estates of his or her decision not
1199	to add one or more proposed phases.
1200	(s) A description of the material restrictions, if any, to
1201	be imposed on timeshare interests concerning the use of any of
1202	the accommodations or facilities, including statements as to
1203	whether there are restrictions upon children and pets or a
1204	reference to a copy of the documents containing the restrictions
1205	which shall be attached as an exhibit. If there are no
1206	restrictions, there shall be a statement of such fact.
1207	(t) If there is any land or personal propertythat is
1208	offered by the developer for use by the purchasers and which is
1209	neither owned by them nor leased to them, the owners'
1210	association, or any entity controlled by the purchasers, a
1211	statement describing the land or personal property, how it will
1212	serve the timeshare plan, and the nature and term of service.
1213	(u) An estimated operating budget for the timeshare plan
1214	and a schedule of the purchaser's expenses shall be attached as
1215	an exhibit and shall contain the following information:
1216	1. The estimated annual expenses of the timeshare plan
1217	collectible from purchasers by assessments. The estimated
1218	payments by the purchaser for assessments shall also be stated
1219	in the estimated amounts for the times when they will be due.
1220	Expenses shall also be shown for the shortest timeshare period
1221	offered for sale by the developer. If the timeshare plan
1222	provides for the offer and sale of units to be used on a
1223	nontimeshare basis, the estimated monthly and annual expenses of
1224	such units shall be set forth in a separate schedule.
1225	2. The estimated weekly, monthly, and annual expenses of
1226	the purchaser of each timeshare interest, other than assessments
1227	payable to the managing entity. Expenses which are personal to
1228	purchasers that are not uniformly incurred by all purchasers or
1229	that are not provided for or contemplated by the timeshare plan
1230	documents may be excluded from this estimate.
1231	3. The estimated items of expenses of the timeshare plan
1232	and the managing entity, except as excluded under subparagraph
1233	2., including, but not limited to, if applicable, the following
1234	items, which shall be stated either as management expenses
1235	collectible by assessments or as expenses of the purchaser
1236	payable to persons other than the managing entity:
1237	a. Expenses for the managing entity:
1238	(I) Administration of the managing entity.
1239	(II) Management fees.
1240	(III) Maintenance.
1241	(IV) Rent for facilities.
1242	(V) Taxes upon timeshare property.
1243	(VI) Taxes upon leased areas.
1244	(VII) Insurance.
1245	(VIII) Security provisions.
1246	(IX) Other expenses.
1247	(X) Operating capital.
1248	(XI) Reserves for deferred maintenance and reserves for
1249	capital expenditures.
1250	(A) All reserves for any accommodations and facilities of
1251	real property timeshare planslocated in this state shall be
1252	calculated by a formula which is based upon estimated life and
1253	replacement cost of each reserve item. Reserves for deferred
1254	maintenance for such accommodations and facilities shall include
1255	accounts for roof replacement, building painting, pavement
1256	resurfacing, replacement of timeshare unit furnishings and
1257	equipment, and any other component, the useful life of which is
1258	less than the useful life of the overall structure. For any
1259	accommodations and facilities of real property timeshare plans
1260	located outside of this state, the developer shall disclose the
1261	amount of reserves for deferred maintenance or capital
1262	expenditures required by the law of the situs state, if
1263	applicable, and maintained for such accommodations and
1264	facilities.
1265	(B) Reserves for deferred maintenance or capital
1266	expenditures of accommodations and facilities of a personal
1267	property timeshare plan, if any. If such reserves are
1268	maintained, the estimated operating budget shall disclose the
1269	methodology of how the reserves are calculated. If a personal
1270	property timeshare plan does not require reserves, the following
1271	statement, in conspicuous type, shall appear in both the budget
1272	and the public offering statement:
1273
1274	The estimated operating budget for this personal property
1275	timeshare plan does not include reserves for deferred
1276	maintenance or capital expenditures; each timeshare interest may
1277	be subject to substantial special assessments from time to time
1278	because no such reserves exist.
1279
1280	(XII) Fees payable to the division.
1281	b. Expenses for a purchaser:
1282	(I) Rent for the timeshare unit, if subject to a lease.
1283	(II) Rent payable by the purchaser directly to the lessor
1284	or agent under any lease for the use of facilities, which use
1285	and payment is a mandatory condition of ownership and is not
1286	included in the common expenses or assessments for common
1287	maintenance paid by the purchasers to the managing entity.
1288	4. The estimated amounts shall be stated for a period of
1289	at least 12 months and may distinguish between the period prior
1290	to the time that purchasers elect a majority of the board of
1291	administration and the period after that date.
1292	5. If the developer intends to guarantee the level of
1293	assessments, such guarantee must be based upon a good faith
1294	estimate of the revenues and expenses of the timeshare plan. The
1295	guarantee must include a description of the following:
1296	a. The specific time period measured in one or more
1297	calendar or fiscal years during which the guarantee will be in
1298	effect.
1299	b. A statement that the developer will pay all common
1300	expenses incurred in excess of the total revenues of the
1301	timeshare plan pursuant to s. 721.15(2) if the developer has
1302	excused himself or herself from the payment of assessments
1303	during the guarantee period.
1304	c. The level, expressed in total dollars, at which the
1305	developer guarantees the budget. If the developer has reserved
1306	the right to extend or increase the guarantee level pursuant to
1307	s. 721.15(2), a disclosure must be included to that effect.
1308	6. If the developer intends to provide a trust fund to
1309	defer or reduce the payment of annual assessments, a copy of the
1310	trust instrument shall be attached as an exhibit and shall
1311	include a description of such arrangement, including, but not
1312	limited to:
1313	a. The specific amount of such trust funds and the source
1314	of the funds.
1315	b. The name and address of the trustee.
1316	c. The investment methods permitted by the trust
1317	agreement.
1318	d. A statement in conspicuous type that the funds from the
1319	trust account may not cover all assessments and that there is no
1320	guarantee that purchasers will not have to pay assessments in
1321	the future.
1322	7. The budget of a phase timeshare plan may contain a note
1323	identifying the number of timeshare interests covered by the
1324	budget, indicating the number of timeshare interests, if any,
1325	estimated to be declared as part of the timeshare plan during
1326	that calendar year, and projecting the common expenses for the
1327	timeshare plan based upon the number of timeshare interests
1328	estimated to be declared as part of the timeshare plan during
1329	that calendar year.
1330	(v) A schedule of estimated closing expenses to be paid by
1331	a purchaser or lessee of a timeshare interest and a statement as
1332	to whether a title opinion or title insurance policy is
1333	available to the purchaser and, if so, at whose expense.
1334	(w) The identity of the developer and the chief operating
1335	officer or principal directing the creation and sale of the
1336	timeshare plan and a statement of the experience of each in this
1337	field or, if no experience, a statement of that fact.
1338	(x) A statement of the total financial obligation of the
1339	purchaser, including the purchase price and any additional
1340	charges to which the purchaser may be subject.
1341	(y) The name of any person who will or may have the right
1342	to alter, amend, or add to the charges to which the purchaser
1343	may be subject and the terms and conditions under which such
1344	alterations, amendments, or additions may be imposed.
1345	(z) A statement of the purchaser's right of cancellation
1346	of the purchase contract.
1347	(aa) A description of the insurance coverage provided for
1348	the timeshare plan.
1349	(bb) A statement as to whether the timeshare plan is
1350	participating in an exchange program and, if so, the name and
1351	address of the exchange company offering the exchange program.
1352	(cc) The existence of rules and regulations regarding any
1353	reservation features governing a purchaser's ability to make
1354	reservations for a timeshare period, including, if applicable, a
1355	conspicuous type disclaimer in substantially the following form:
1356
1357	The right to reserve a timeshare period is subject to rules and
1358	regulations of the timeshare plan reservation system.
1359
1360	(dd) If a developer is filing a timeshare plan that
1361	includes a timeshare instrument or component site document that
1362	was in conformance with the laws and rules in existence at the
1363	time the timeshare plan was created but does not conform to
1364	existing laws and rules that govern the timeshare plan and the
1365	developer does not have the authority or power to amend or
1366	change the timeshare instrument or component site document to
1367	conform to such existing laws or rules as directed by the
1368	division, a brief explanation of current law and the conflict
1369	with the timeshare instrument or component site document,
1370	preceded by disclaimer in conspicuous type in substantially the
1371	following form:
1372
1373	Florida law has been amended and certain provisions in [insert
1374	appropriate reference to timeshare instrument or component site
1375	document] that were in conformance with Florida law as it
1376	existed at the time the timeshare plan was created are not in
1377	conformance with current Florida law. These documents may only
1378	be amended by [insert appropriate reference to person or entity
1379	that has the right to amend or change the timeshare instrument
1380	or component site document]. The developer does not warrant that
1381	such documents are in technical compliance with all applicable
1382	Florida laws and regulations. All questions regarding amendment
1383	of these documents should be directed to [insert appropriate
1384	reference to person or entity that has the right to amend or
1385	change the timeshare instrument or component site document].
1386
1387	(ee) Any other information that a seller, with the
1388	approval of the division, desires to include in the public
1389	offering statement.
1390	(ff) Copies of the following documents and plans, to the
1391	extent they are applicable, shall be included as exhibits to the
1392	filedregisteredpublic offering statement provided, if the
1393	timeshare plan has not been declared or createdat the time of
1394	the filing, the developer shall provide proposed documents:
1395	1. The declaration of condominium.
1396	2. The cooperative documents.
1397	3. The declaration of covenants and restrictions.
1398	4. The articles of incorporation creating the owners'
1399	association.
1400	5. The bylaws of the owners'association.
1401	6. AnyTheground lease or other underlying lease of the
1402	real property associated withon which the timeshare plan is
1403	situated. In the case of a personal property timeshare plan, any
1404	lease of the personal property associated with the personal
1405	property timeshare plan.
1406	7. The management agreement and all maintenance and other
1407	contracts regarding the management and operation of the
1408	timeshare property which have terms in excess of 1 year.
1409	8. The estimated operating budget for the timeshare plan
1410	and the required schedule of purchasers' expenses.
1411	9. The floor plan of each type of accommodation and the
1412	plot plan showing the location of all accommodations and
1413	facilities declared as part of the timeshare plan and filed with
1414	the division.
1415	10. The lease for any facilities.
1416	11. A declaration of servitude of properties serving the
1417	accommodations and facilities, but not owned by purchasers or
1418	leased to them or the owners'association.
1419	12. Any documents required by s. 721.03(3)(e) as the
1420	result of the inclusion of a timeshare plan in the conversion of
1421	the building to condominium or cooperative ownership.
1422	13. The form of agreement for sale or lease of timeshare
1423	interests.
1424	14. The executed agreement for escrow of payments made to
1425	the developer prior to closing and the form of any agreement for
1426	escrow of ad valorem tax escrow payments, if any,to be made
1427	into an ad valorem tax escrow account pursuant to s. 192.037(6).
1428	15. The documents containing any restrictions on use of
1429	the property required by paragraph (s).
1430	16. A letter from the escrow agent or filing attorney
1431	confirming that the escrow agent and its officers, directors, or
1432	other partners are independent pursuant to the requirements of
1433	this chapter.
1434	17. Any nondisturbance and notice to creditors instrument
1435	required by s. 721.08.
1436	18. In the case of any personal property timeshare plan in
1437	which the accommodations and facilities are located on or in a
1438	documented vessel or foreign vessel as provided in s.
1439	721.08(2)(c)3.e., a copy of the certificate of ownership of such
1440	vessel and either a copy of the certificate of documentation or
1441	certificate of registry of such vessel.
1442	19. An executed affidavit given under oath by an attorney
1443	licensed to practice law in any jurisdiction in the United
1444	States stating that the attorney has researched the applicable
1445	laws of the jurisidiction in which governing law has been
1446	established and the laws of the jurisdiction in which the vessel
1447	is registered, and has found that the timeshare instrument
1448	complies with the provisions of s. 721.08(2)(c)3.e.(II)(C) and
1449	s. 721.08(2)(c)3.e.(III).
1450	20.16.Any other documents or instruments creating the
1451	timeshare plan.
1452	(gg) Such other information as is necessary to fairly,
1453	meaningfully, and effectively disclose all aspects of the
1454	timeshare plan, including, but not limited to, any disclosures
1455	made necessary by the operation of s. 721.03(8). However, if a
1456	developer has, in good faith, attempted to comply with the
1457	requirements of this section, and if, in fact, he or she has
1458	substantially complied with the disclosure requirements of this
1459	chapter, nonmaterial errors or omissions shall not be
1460	actionable.
1461	(hh) Notwithstanding the provisions of this subsection,
1462	the filedregisteredpublic offering statement for a component
1463	site of a multisite timeshare plan filed pursuant to this
1464	subsection may contain cross-references to information contained
1465	in the related multisite timeshare plan filedregisteredpublic
1466	offering statement filed pursuant to s. 721.55 in lieu of
1467	repeating such information.
1468	(6) The division is authorized to prescribe by rule the
1469	form of the approved purchaser public offering statement that
1470	must be furnished by the developer to each purchaser. The form
1471	of the purchaser public offering statement must provide fair,
1472	meaningful, and effective disclosure of all aspects of the
1473	timeshare plan. For timeshare plans filed pursuant to this part,
1474	the developer shall furnish each purchaser with the following:
1475	(a) A copy of the purchaser public offering statement text
1476	in the form approved by the division for delivery to purchasers.
1477	(b) Copies of the exhibits required to be filed with the
1478	division pursuant to subparagraphs (5)(ff)1., 2., 4., 5., 8.,
1479	and 20.16.
1480	(c) A receipt for timeshare plan documents and a list
1481	describing any exhibit to the filedregisteredpublic offering
1482	statement filed with the division which is not delivered to the
1483	purchaser. The division is authorized to prescribe by rule the
1484	form of the receipt for timeshare plan documents and the
1485	description of exhibits list that must be furnished to the
1486	purchaser. The description of documents list utilized by a
1487	developer shall be filed with the division for review as part of
1488	the filedregisteredpublic offering statement pursuant to this
1489	section. The developer shall be required to provide the managing
1490	entity with a copy of the approved filedregisteredpublic
1491	offering statement and any approved amendments thereto to be
1492	maintained by the managing entity as part of the books and
1493	records of the timeshare plan pursuant to s. 721.13(3)(d).
1494	(d) Any other exhibit which the developer includes as part
1495	of the purchaser public offering statement, provided that the
1496	developer first files the exhibit with the division.
1497	(e) An executed copy of any document which the purchaser
1498	signs.
1499	(f) Each purchaser shall receive a fully executed paper
1500	copy of the purchase contract.
1501	Section 7. Paragraph (g) of subsection (1) of section
1502	721.075, Florida Statutes, is amended and paragraph (e) is added
1503	to subsection (2) of said section, to read:
1504	721.075 Incidental benefits.--Incidental benefits shall be
1505	offered only as provided in this section.
1506	(1) Accommodations, facilities, products, services,
1507	discounts, or other benefits which satisfy the requirements of
1508	this subsection shall be subject to the provisions of this
1509	section and exempt from the other provisions of this chapter
1510	which would otherwise apply to such accommodations or facilities
1511	if and only if:
1512	(g) The incidental benefit is filed with the division for
1513	reviewin conjunction with the filing of a timeshare plan or in
1514	connection with a previously filed timeshare plan.
1515	(2) Each purchaser shall execute a separate acknowledgment
1516	and disclosure statement with respect to all incidental
1517	benefits, which statement shall include the following
1518	information:
1519	(e) A statement indicating the source of the services,
1520	points, or other products that constitute the incidental
1521	benefit.
1522	Section 8. Section 721.08, Florida Statutes, is amended to
1523	read:
1524	721.08 Escrow accounts; nondisturbance instruments;
1525	alternate security arrangements; transfer of legal title.--
1526	(1) Prior to the filing of a registeredpublic offering
1527	statement with the division, all developers shall establish an
1528	escrow account with an escrow agent for the purpose of
1529	protecting the funds or other property of purchasers required to
1530	be escrowed by this section. An escrow agent shall maintain the
1531	accounts called for in this section only in such a manner as to
1532	be under the direct supervision and control of the escrow agent.
1533	The escrow agent shall have a fiduciary duty to each purchaser
1534	to maintain the escrow accounts in accordance with good
1535	accounting practices and to release the purchaser's funds or
1536	other property from escrow only in accordance with this chapter.
1537	The escrow agent shall retain all affidavits received pursuant
1538	to this section for a period of 5 years. Should the escrow agent
1539	receive conflicting demands for funds or otherproperty held in
1540	escrow, the escrow agent shall immediately notify the division
1541	of the dispute and either promptly submit the matter to
1542	arbitration or, by interpleader or otherwise, seek an
1543	adjudication of the matter by court.
1544	(2) One hundred percent of all funds or other property
1545	which is received from or on behalf of purchasers of the
1546	timeshare plan or timeshare interest prior to the occurrence of
1547	events required in this subsection shall be deposited pursuant
1548	to an escrow agreement approved by the division. The escrow
1549	agreement shall provide that the funds or otherproperty may be
1550	released from escrow only as follows:
1551	(a) Cancellation.--In the event a purchaser gives a valid
1552	notice of cancellation pursuant to s. 721.10 or is otherwise
1553	entitled to cancel the sale, the funds or otherproperty
1554	received from or on behalf of the purchaser, or the proceeds
1555	thereof, shall be returned to the purchaser. Such refund shall
1556	be made within 20 days afterofdemand therefor by the purchaser
1557	or within 5 days after receipt of funds from the purchaser's
1558	cleared check, whichever is later. If the purchaser has received
1559	benefits under the contract prior to the effective date of the
1560	cancellation, the funds or otherproperty to be returned to the
1561	purchaser may be reduced by the proportion of contract benefits
1562	actually received.
1563	(b) Purchaser's default.--Following expiration of the 10-
1564	day cancellation period, if the purchaser defaults in the
1565	performance of her or his obligations under the terms of the
1566	contract to purchase or such other agreement by which a seller
1567	sells the timeshare interest, the developer shall provide an
1568	affidavit to the escrow agent requesting release of the escrowed
1569	funds or otherproperty and shall provide a copy of such
1570	affidavit to the purchaser who has defaulted. The developer's
1571	affidavit, as required herein, shall include:
1572	1. A statement that the purchaser has defaulted and that
1573	the developer has not defaulted;
1574	2. A brief explanation of the nature of the default and
1575	the date of its occurrence;
1576	3. A statement that pursuant to the terms of the contract
1577	the developer is entitled to the funds held by the escrow agent;
1578	and
1579	4. A statement that the developer has not received from
1580	the purchaser any written notice of a dispute between the
1581	purchaser and developer or a claim by the purchaser to the
1582	escrow.
1583	(c) Compliance with conditions.--
1584	1. Timeshare licenses.--If the timeshare plan is one in
1585	which timeshare licenses are to be sold and no cancellation or
1586	default has occurred, the escrow agent may release the escrowed
1587	funds or other property to or on the order of the developerupon
1588	presentation of:
1589	a. An affidavit by the developer that all of the following
1590	conditions have been met:
1591	(I) Expiration of the cancellation period.
1592	(II) Completion of construction.
1593	(III) Closing.
1594	(IV) Either:
1595	(A) Execution, delivery,and recordation by each
1596	interestholder of the nondisturbance and notice to creditors
1597	instrument, as described in this section; or, alternatively,
1598	(B)Transfer by the developer of legal title to the
1599	subject accommodations and facilities, or all use rights
1600	therein, intoto a trust satisfying the requirements of
1601	subparagraph 4.sub-subparagraph 3.b. and the execution,
1602	delivery,and recordation by each other interestholder of the
1603	nondisturbance and notice to creditors instrument, as described
1604	in this section.
1605	b. A certified copy of eachtherecorded nondisturbance
1606	and notice to creditors instrument that complies with subsection
1607	(3).
1608	c. One of the following:
1609	(I) A copy of a memorandum of agreement, as defined in s.
1610	721.05(21), together with satisfactory evidence that the
1611	original memorandum of agreement has been irretrievably
1612	delivered for recording to the appropriate official responsible
1613	for maintaining the public records in the county in which the
1614	subject accommodations and facilities are located. The original
1615	memorandum of agreement must be recorded within 180 days after
1616	the date on which the purchaser executed her or his purchase
1617	agreement.
1618	(II) A notice delivered for recording to the appropriate
1619	official responsible for maintaining the public records in each
1620	county in which the subject accommodations and facilities are
1621	located notifying all persons of the identity of an independent
1622	escrow agent or trustee satisfying the requirements of
1623	subparagraph 4.sub-subparagraph 3.b.that shall maintain
1624	separate books and records, in accordance with good accounting
1625	practices, for the timeshare plan in which timeshare licenses
1626	are to be sold. The books and records shall indicate each
1627	accommodation and facility that is subject to such a timeshare
1628	plan and each purchaser of a timeshare license in the timeshare
1629	plan.
1630	2. Timeshare estates.--If the timeshare plan is one in
1631	which timeshare estates are to be sold, other than interests in
1632	a trust pursuant to subparagraph 3.,and no cancellation or
1633	default has occurred, the escrow agent may release the escrowed
1634	funds or other property to or on the order of the developerupon
1635	presentation of:
1636	a. An affidavit by the developer that all of the following
1637	conditions have been met:
1638	(I) Expiration of the cancellation period.
1639	(II) Completion of construction.
1640	(III) Closing.
1641	b. If the timeshare estate is sold by agreement for deed,
1642	a certified copy of the recorded nondisturbance and notice to
1643	creditors instrument, as described in this section.
1644	c. Evidence that each accommodation and facility:
1645	(I) Is free and clear of the claims of any
1646	interestholders, other than the claims of interestholders that,
1647	through a recorded instrument, are irrevocably made subject to
1648	the timeshare instrument and the use rights of purchasers made
1649	available through the timeshare instrument;
1650	(II) Is the subject of a recorded nondisturbance and
1651	notice to creditors instrument that complies with subsection (3)
1652	and s. 721.17; or
1653	(III) Has been transferred into a trust satisfying the
1654	requirements of subparagraph 4.
1655	d. Evidence that the timeshare estate:
1656	(I)Is free and clear of the claims of any
1657	interestholders, other than the claims of interestholders that,
1658	through a recorded instrument, are irrevocably made subject to
1659	the timeshare instrument and the use rights of purchasers made
1660	available through the timeshare instrument;,or
1661	(II) Isthat arethe subject of a recorded nondisturbance
1662	and notice to creditors instrument that complies with subsection
1663	(3) and s. 721.17.
1664	3. Personal property timeshare interests.--If the
1665	timeshare plan is one in which personal property timeshare
1666	interestsestates are to be sold as interests in a trust that
1667	complies in all respects with the provisions of sub-subparagraph
1668	b.,and no cancellation or default has occurred, the escrow
1669	agent may release the escrowed funds or other property to or on
1670	the order of the developerupon presentation of:
1671	a. An affidavit by the developer that all of the following
1672	conditions have been met:
1673	(I) Expiration of the cancellation period.
1674	(II) Completion of construction.
1675	(III) Transfer of the subject accommodations and
1676	facilities, or all use rights therein, to the trust.
1677	(IV)Closing.
1678	b. If the personal property timeshare interest is sold by
1679	agreement for transfer, evidence that the agreement for transfer
1680	complies fully with s. 721.06 and this section.
1681	c. Evidence that one of the following has occurred:
1682	(I) Transfer by the owner of the underlying personal
1683	property of legal title to the subject accommodations and
1684	facilities or all use rights therein into a trust satisfying the
1685	requirements of subparagraph 4.; or
1686	(II) Transfer by the owner of the underlying personal
1687	property of legal title to the subject accommodations and
1688	facilities or all use rights therein into an owners' association
1689	satisfying the requirements of subparagraph 5.
1690	d. Evidence of compliance with the provisions of
1691	subparagraph 6., if required.
1692	e. If a personal property timeshare plan is created with
1693	respect to accommodations and facilities that are located on or
1694	in a "documented vessel" or "foreign vessel" as defined and
1695	governed by chapter 313 of Title 46 of the United States Code:
1696	(I) In making the transfer required in sub-subparagraph
1697	c., the developer shall use as its transfer instrument a
1698	document that establishes and protects the continuance of the
1699	use rights in the subject accommodations and facilities in a
1700	manner that is enforceable by the trust or owners' association.
1701	(II) The transfer instrument shall comply fully with the
1702	provisions of this chapter, shall be part of the timeshare
1703	instrument, and shall contain specific provisions that:
1704	(A) Prohibit the vessel owner, the developer, any manager
1705	or operator of the vessel, the owners' association or the
1706	trustee, the managing entity, or any other person from incurring
1707	any liens against the vessel except for liens that are required
1708	for the operation and upkeep of the vessel, including liens for
1709	fuel expenditures, repairs, crews' wages, and salvage, and
1710	except as provided in sub-sub-subparagraphs 4.b.(III) and
1711	5.b.(III). All expenses, fees, and taxes properly incurred in
1712	connection with the creation, satisfaction, and discharge of any
1713	such permitted lien, or a prorated portion thereof if less than
1714	all of the accommodations on the vessel are subject to the
1715	timeshare plan, shall be common expenses of the timeshare plan.
1716	(B) Grant a lien against the vessel in favor of the
1717	owners' association or trustee to secure the full and faithful
1718	performance of the vessel owner and developer of all of their
1719	obligations to the purchasers.
1720	(C) Establish governing law in a jurisdiction that
1721	recognizes and will enforce the timeshare instrument and the
1722	laws of the country of registry of the vessel.
1723	(D) Require that a description of the use rights of
1724	purchasers be posted and displayed on the vessel in a manner
1725	that will give notice of such rights to any party examining the
1726	vessel. This notice must identify the owners' association or
1727	trustee and include a statement disclosing the limitation on
1728	incurring liens against the vessel described in sub-sub-sub-
1729	subparagraph (A).
1730	(E) Include the nondisturbance and notice to creditors
1731	instrument for the vessel owner and any other interestholders.
1732	(F) The owners’ association created under subparagraph 5.
1733	or trustee created under subparagraph 6. shall have access to
1734	the certificates of classification in accordance with the
1735	timeshare instrument.
1736	(III) If the vessel is a foreign vessel, the vessel must
1737	be registered in a jurisdiction that permits a filing evidencing
1738	the use rights of purchasers in the subject accommodations and
1739	facilities, offers protection for such use rights against
1740	unfiled and inferior claims, and recognizes the document or
1741	instrument creating such use rights as a lien against the
1742	vessel.
1743	(IV) In addition to the disclosures required by s.
1744	721.07(5), the public offering statement and purchase contract
1745	must contain a disclosure in conspicuous type in substantially
1746	the following form:
1747
1748	The laws of the State of Florida govern the offering of this
1749	timeshare plan in this state. There are inherent risks in
1750	purchasing a timeshare interest in this timeshare plan because
1751	the accommodations and facilities of the timeshare plan are
1752	located on a vessel that will sail into international waters and
1753	into waters governed by many different jurisdictions. Therefore,
1754	the laws of the State of Florida cannot fully protect your
1755	purchase of an interest in this timeshare plan. Specifically,
1756	management and operational issues may need to be addressed in
1757	the jurisdiction in which the vessel is registered, which is
1758	________(insert jurisdiction in which vessel is required).
1759	Concerns of purchasers may be sent to ____________(insert name
1760	of applicable regulatory agency and address).
1761	4. Trust.--
1762	a. If the subject accommodations or facilities, or all use
1763	rights therein, are to be transferred into a trust in order to
1764	comply with this paragraph, such transfer shall take place
1765	pursuant to this subparagraph.
1766	b.Prior to the transfer by each interestholder of the
1767	subject accommodations and facilities, or all use rights
1768	therein, to a trust, any lien or other encumbrance against such
1769	accommodations and facilities, or use rights therein, shall be
1770	made subject to a nondisturbance and notice to creditors
1771	instrument pursuant to subsection (3)as described in this
1772	section. No transfer pursuant to this subparagraphsub-
1773	subparagraphshall become effective until the trustee accepts
1774	such transfer and the responsibilities set forth herein. A trust
1775	established pursuant to this subparagraphsub-subparagraphshall
1776	comply with the following provisions:
1777	(I) The trustee shall be an individual or a business
1778	entity authorized and qualified to conduct trust business in
1779	this state. Any corporation authorized to do business in this
1780	state may act as trustee in connection with a timeshare plan
1781	pursuant to this chapter. The trustee must be independent from
1782	any developer or managing entity of the timeshare plan or any
1783	interestholder of any accommodation or facility of such plan.
1784	(II) The trust shall be irrevocable so long as any
1785	purchaser has a right to occupy any portion of the timeshare
1786	property pursuant to the timeshare plan.
1787	(III) The trustee shall not convey, hypothecate, mortgage,
1788	assign, lease, or otherwise transfer or encumber in any fashion
1789	any interest in or portion of the timeshare property with
1790	respect to which any purchaser has a right of use or occupancy
1791	unless the timeshare plan is terminated pursuant to the
1792	timeshare instrument, or such conveyance, hypothecation,
1793	mortgage, assignment, lease, transfer, or encumbrance is
1794	approved by a vote of two-thirds of all voting interests of the
1795	timeshare plan and such decision is declared by a court of
1796	competent jurisdiction to be in the best interests of the
1797	purchasers of the timeshare plan. The trustee shall notify the
1798	division in writing within 10 days afterofreceiving notice of
1799	the filing of any petition relating to obtaining such a court
1800	order. The division shall have standing to advise the court of
1801	the division's interpretation of the statute as it relates to
1802	the petition.
1803	(IV) All purchasers of the timeshare plan or the owners'
1804	association of the timeshare plan shall be the express
1805	beneficiaries of the trust. The trustee shall act as a fiduciary
1806	to the beneficiaries of the trust. The personal liability of the
1807	trustee shall be governed by s. 737.306. The agreement
1808	establishing the trust shall set forth the duties of the
1809	trustee. The trustee shall be required to furnish promptly to
1810	the division upon request a copy of the complete list of the
1811	names and addresses of the owners in the timeshare plan and a
1812	copy of any other books and records of the timeshare plan
1813	required to be maintained pursuant to s. 721.13 that are in the
1814	possession, custody, or control of the trustee. All expenses
1815	reasonably incurred by the trustee in the performance of its
1816	duties, together with any reasonable compensation of the
1817	trustee, shall be common expenses of the timeshare plan.
1818	(V) The trustee shall not resign upon less than 90 days'
1819	prior written notice to the managing entity and the division. No
1820	resignation shall become effective until a substitute trustee,
1821	approved by the division, is appointed by the managing entity
1822	and accepts the appointment.
1823	(VI) The documents establishing the trust arrangement
1824	shall constitute a part of the timeshare instrument.
1825	(VII) For trusts holding property in a timeshare plan
1826	located outside this state, the trust and trusteeholding such
1827	property shall be deemed in compliance with the requirements of
1828	this subparagraph if such trust and trustee areisauthorized
1829	and qualified to conduct trust business under the laws of such
1830	jurisdiction and the agreement or law governing such trust
1831	arrangement provides substantially similar protections for the
1832	purchaser as are required in this subparagraph for trusts
1833	holding property in a timeshare plan in this state.
1834	(VIII) The trustee shall have appointed a registered agent
1835	in this state for service of process. In the event such a
1836	registered agent is not appointed, service of process may be
1837	served pursuant to s. 721.265.
1838	5. Owners’ association.--
1839	a. If the subject accommodations or facilities, or all use
1840	rights therein, are to be transferred into an owners’
1841	association in order to comply with this paragraph, such
1842	transfer shall take place pursuant to this subparagraph.
1843	b. Prior to the transfer by each interestholder of the
1844	subject accommodations and facilities, or all use rights
1845	therein, to an owners’ association, any lien or other
1846	encumbrance against such accommodations and facilities, or use
1847	rights therein, shall be made subject to a nondisturbance and
1848	notice to creditors instrument pursuant to subsection (3). No
1849	transfer pursuant to this subparagraph shall become effective
1850	until the owners’ association accepts such transfer and the
1851	responsibilities set forth herein. An owners’ association
1852	established pursuant to this subparagraph shall comply with the
1853	following provisions:
1854	(I) The owners’ association shall be a business entity
1855	authorized and qualified to conduct business in this state.
1856	Control of the board of directors of the owners’ association
1857	must be independent from any developer or managing entity of the
1858	timeshare plan or any interestholder.
1859	(II) The articles of incorporation of the owners’
1860	association shall provide that the corporation may not be
1861	voluntarily dissolved without the unanimous vote of all owners
1862	of personal property timeshare interests so long as any
1863	purchaser has a right to occupy any portion of the timeshare
1864	property pursuant to the timeshare plan.
1865	(III) The owners’ association shall not convey,
1866	hypothecate, mortgage, assign, lease, or otherwise transfer or
1867	encumber in any fashion any interest in or portion of the
1868	timeshare property with respect to which any purchaser has a
1869	right of use or occupancy unless the timeshare plan is
1870	terminated pursuant to the timeshare instrument, or such
1871	conveyance, hypothecation, mortgage, assignment, lease,
1872	transfer, or encumbrance is approved by a vote of two-thirds of
1873	all voting interests of the association and such decision is
1874	declared by a court of competent jurisdiction to be in the best
1875	interests of the purchasers of the timeshare plan. The owners’
1876	association shall notify the division in writing within 10 days
1877	after receiving notice of the filing of any petition relating to
1878	obtaining such a court order. The division shall have standing
1879	to advise the court of the division's interpretation of the
1880	statute as it relates to the petition.
1881	(IV) All purchasers of the timeshare plan shall be members
1882	of the owners' association and shall be entitled to vote on
1883	matters requiring a vote of the owners’ association as provided
1884	in this chapter or the timeshare instrument. The owners’
1885	association shall act as a fiduciary to the purchasers of the
1886	timeshare plan. The articles of incorporation establishing the
1887	owners’ association shall set forth the duties of the owners’
1888	association. All expenses reasonably incurred by the owners’
1889	association in the performance of its duties, together with any
1890	reasonable compensation of the officers or directors of the
1891	owners’ association, shall be common expenses of the timeshare
1892	plan.
1893	(V) The documents establishing the owners’ association
1894	shall constitute a part of the timeshare instrument.
1895	(VI) For owners’ associations holding property in a
1896	timeshare plan located outside this state, the owners’
1897	association holding such property shall be deemed in compliance
1898	with the requirements of this subparagraph if such owners’
1899	association is authorized and qualified to conduct owners’
1900	association business under the laws of such jurisdiction and the
1901	agreement or law governing such arrangement provides
1902	substantially similar protections for the purchaser as are
1903	required in this subparagraph for owners’ associations holding
1904	property in a timeshare plan in this state.
1905	(VII) The owners’ association shall have appointed a
1906	registered agent in this state for service of process. In the
1907	event such a registered agent is not appointed, service of
1908	process may be made pursuant to s. 721.265.
1909	6. Personal property subject to certificate of title.--If
1910	any personal property that is an accommodation or facility of a
1911	timeshare plan is subject to a certificate of title in this
1912	state pursuant to chapter 319 or chapter 328, the following
1913	notation must be made on such certificate of title pursuant to
1914	s. 319.27(1) or s. 328.15(1):
1915
1916	The further transfer or encumbrance of the property subject to
1917	this certificate of title, or any lien or encumbrance thereon,
1918	is subject to the requirements of section 721.17, Florida
1919	Statutes, and the transferee or lienor agrees to be bound by all
1920	of the obligations set forth therein.
1921
1922	7.4.If the developer has previously provided a certified
1923	copy of any document required by this paragraph, she or he may
1924	for all subsequent disbursements substitute a true and correct
1925	copy of the certified copy, provided no changes to the document
1926	have been made or are required to be made.
1927	8. In the event that use rights relating to an
1928	accommodation or facility are transferred into a trust pursuant
1929	to subparagraph 4. or into an owners’ association pursuant to
1930	subparagraph 5., all other interestholders, including the owner
1931	of the underlying fee or underlying personal property, must
1932	execute a nondisturbance and notice to creditors instrument
1933	pursuant to subsection (3).
1934	(d) Substitution of other assurances for escrowed funds or
1935	other property.--Funds or other property escrowed as provided in
1936	this section may be released from escrow to or on the order of
1937	the developer upon acceptance by the director of the division of
1938	other assurances pursuant to subsection (5) as a substitute for
1939	such escrowed funds or other property. The amount of escrowed
1940	funds or other property that may be released pursuant to this
1941	paragraph shall be equal to or less than the face amount of the
1942	assurances accepted by the director from time to time.
1943	(3) NONDISTURBANCE AND NOTICE TO CREDITORS
1944	INSTRUMENT.--The nondisturbance and notice to creditors
1945	instrument, when required, shall be executed by each
1946	interestholder.
1947	(a)The instrument shall state that:
1948	1.(a)If the party seeking enforcement is not in default
1949	of its obligations, the instrument may be enforced by both the
1950	seller and any purchaser of the timeshare plan;
1951	2.(b)The instrument shall be effective as between the
1952	timeshare purchaser and interestholder despite any rejection or
1953	cancellation of the contract between the timeshare purchaser and
1954	developer as a result of bankruptcy proceedings of the
1955	developer; and
1956	3.(c) So long as a purchaser remains in good standing with
1957	respect to her or his obligations under the timeshare
1958	instrument, including making all payments to the managing entity
1959	required by the timeshare instrument with respect to the annual
1960	common expenses of the timesharethe interestholder has any
1961	interest in the accommodations, facilities, or plan, thenthe
1962	interestholder will fully honor all the rights of such purchaser
1963	relating to the subject accommodation or facility as reflected
1964	timeshare purchasers in and to the timeshare instrumentplan,
1965	will honor the purchasers' right to cancel their contracts and
1966	receive appropriate refunds, and will comply with all other
1967	requirements of this chapter and rules promulgated hereunder.
1968
1969	The instrument shall contain language sufficient to provide
1970	subsequent creditors of the developer and interestholders with
1971	notice of the existence of the timeshare plan and of the rights
1972	of purchasers and shall serve to protect the interest of the
1973	timeshare purchasers from any claims of subsequent creditors.
1974	(b) Real property timeshare plans.--For real property
1975	timeshare plans, the instrument shall be recorded in the public
1976	records of the county in which the subject accommodations or
1977	facilities are located.
1978	(c) Personal property timeshare plans.--For personal
1979	property timeshare plans, the instrument shall be included
1980	within or attached as an exhibit to a security agreement or
1981	other agreement executed by the interestholder. Constructive
1982	notice of such security agreement or other agreement shall be
1983	filed in the manner prescribed by chapter 679 or other
1984	applicable law.
1985	(d) A copy of the recorded or filednondisturbance and
1986	notice to creditors instrument, when required, shall be provided
1987	to each timeshare purchaser at the time the purchase contract is
1988	executed.
1989	(4) In lieu of any escrow provisions required by this act,
1990	the director of the division shall have the discretion to permit
1991	deposit of the funds or other property in an escrow account as
1992	required by the jurisdiction in which the sale took place.
1993	(5)(a) In lieu of any escrows required by this section,
1994	the director of the division shall have the discretion to accept
1995	other assurances, including, but not limited to, a surety bond
1996	issued by a company authorized and licensed to do business in
1997	this state as surety or an irrevocable letter of credit in an
1998	amount equal to the escrow requirements of this section.
1999	(b) Notwithstanding anything in chapter 718 or chapter 719
2000	to the contrary, the director of the division shall have the
2001	discretion to accept other assurances pursuant to paragraph (a)
2002	in lieu of any requirement that completion of construction of
2003	one or more accommodations or facilities of a timeshare plan be
2004	accomplished prior to closing.
2005	(c) In lieu of a nondisturbance and notice to creditors
2006	instrument, when such an instrument is otherwise required by
2007	this section, the director of the division shall have the
2008	discretion to accept alternate means of protecting the
2009	continuing rights of purchasers in and to the subject
2010	accommodations or facilities of the timeshare plan as and for
2011	the term described in the timeshare instrument, and of providing
2012	effective constructive notice of such continuing purchaser
2013	rights to subsequent owners of the accommodations or facilities
2014	and to subsequent creditors of the affected interestholder.
2015	(6) An escrow agent holding funds escrowed pursuant to
2016	this section may invest such escrowed funds in securities of the
2017	United States Government, or any agency thereof, or in savings
2018	or time deposits in institutions insured by an agency of the
2019	United States Government. The right to receive the interest
2020	generated by any such investments shall be paid to the party to
2021	whom the escrowed funds or otherproperty are paid unless
2022	otherwise specified by contract.
2023	(7) Each escrow agent shall maintain separate books and
2024	records for each timeshare plan and shall maintain such books
2025	and records in accordance with good accounting practices.
2026	(8) An escrow agent holding escrowed funds pursuant to
2027	this chapter that have not been claimed for a period of 5 years
2028	after the date of deposit shall make at least one reasonable
2029	attempt to deliver such unclaimed funds to the purchaser who
2030	submitted such funds to escrow. In making such attempt, an
2031	escrow agent is entitled to rely on a purchaser's last known
2032	address as set forth in the books and records of the escrow
2033	agent and is not required to conduct any further search for the
2034	purchaser. If an escrow agent's attempt to deliver unclaimed
2035	funds to any purchaser is unsuccessful, the escrow agent may
2036	deliver such unclaimed funds to the division and the division
2037	shall deposit such unclaimed funds in the Division of Florida
2038	Land Sales, Condominiums, and Mobile Homes Trust Fund, 30 days
2039	after giving notice in a publication of general circulation in
2040	the county in which the timeshare property containing the
2041	purchaser's timeshare interest is located. The purchaser may
2042	claim the same at any time prior to the delivery of such funds
2043	to the division. After delivery of such funds to the division,
2044	the purchaser shall have no more rights to the unclaimed funds.
2045	The escrow agent shall not be liable for any claims from any
2046	party arising out of the escrow agent's delivery of the
2047	unclaimed funds to the division pursuant to this section.
2048	(9) For each transfer of the legal title to a timeshare
2049	estate by a developer, the developer shall deliver an instrument
2050	evidencing such transfer to the purchaser or to a title
2051	insurance agent or the clerk of the court for recording. For
2052	each transfer of the legal title to a personal property
2053	timeshare interest by a developer, the developer shall deliver
2054	an instrument evidencing such transfer to the purchaser subject
2055	to the provisions of this section.
2056	(10)(a)Any developer, seller, or escrow agent who
2057	intentionally fails to comply with the provisions of this
2058	section concerning the establishment of an escrow account,
2059	deposits of funds into escrow, and withdrawal therefrom is
2060	guilty of a felony of the third degree, punishable as provided
2061	in s. 775.082, s. 775.083, or s. 775.084, or the successor
2062	thereof. The failure to establish an escrow account or to place
2063	funds therein as required in this section is prima facie
2064	evidence of an intentional and purposeful violation of this
2065	section.
2066	(b) Any developer, interestholder, trustee, or officer or
2067	director of an owners’ association who intentionally fails to
2068	comply with the provisions of this section concerning the
2069	establishment of a trust or owners’ association, conveyances of
2070	property into the trust or owners’ association, and conveyances
2071	or encumbrances of trust or owners’ association property is
2072	guilty of a felony of the third degree, punishable as provided
2073	in s. 775.082, s. 775.083, or s. 775.084, or the successor
2074	thereof. The failure to establish a trust or owners’
2075	association, or to transfer property into the trust or owners’
2076	association, or the failure of a trustee or officer or director
2077	of an owners’ association to comply with the trust agreement,
2078	articles of incorporation, or bylaws with respect to conveyances
2079	or encumbrances of trust or owners’ association property, as
2080	required by this section, is prima facie evidence of an
2081	intentional and purposeful violation of this section.
2082	Section 9. Paragraphs (a) and (d) of subsection (1),
2083	paragraph (c) of subsection (2), and paragraph (c) of subsection
2084	(3) of section 721.09, Florida Statutes, are amended to read:
2085	721.09 Reservation agreements; escrows.--
2086	(1)(a) Prior to filing the filedregisteredpublic
2087	offering statement with the division, a seller shall not offer a
2088	timeshare plan for sale but may accept reservation deposits and
2089	advertise the reservation deposit program upon approval by the
2090	division of a fully executed escrow agreement and reservation
2091	agreement properly filed with the division.
2092	(d) A seller who has filed a reservation agreement and an
2093	escrow agreement under this section may advertise the
2094	reservation agreement program if the advertising material meets
2095	the following requirements:
2096	1. The seller complies with the provisions of s. 721.11
2097	with respect to such advertising material.
2098	2. The advertising material is limited to a general
2099	description of the proposed timeshare plan, including, but not
2100	limited to, a general description of the type, number, and size
2101	of accommodations and facilities and the name of the proposed
2102	timeshare plan.
2103	3. The advertising material contains a statement that the
2104	advertising material is being distributed in connection with an
2105	approved reservation agreement filing only and that the seller
2106	cannot offer an interest in the timeshare plan for sale until a
2107	filedregisteredpublic offering statement has been filed with
2108	the division under this chapter.
2109	(2) Each executed reservation agreement shall be signed by
2110	the developer and shall contain the following:
2111	(c) A statement of the obligation of the developer to file
2112	a filedregisteredpublic offering statement with the division
2113	prior to entering into binding contracts.
2114	(3)
2115	(c) The escrow agent may invest the escrowed funds in
2116	securities of the United States Government, or any agency
2117	thereof, or in savings or time deposits in institutions insured
2118	by an agency of the United States Government. The interest
2119	generated by any such investments shall be payable to the party
2120	entitled to receive the escrowed funds or otherproperty.
2121	Section 10. Paragraph (a) of subsection (1), paragraphs
2122	(b) and (e) of subsection (6), and subsections (7), (8), and (9)
2123	of section 721.11, Florida Statutes, are amended to read:
2124	721.11 Advertising materials; oral statements.--
2125	(1)(a) A developer may fileAll advertising material must
2126	be filed with the division for reviewby the developer prior to
2127	use. At the request of the developer, The division shall review
2128	anythe advertising material filed for review by the developer
2129	and notify the developer of any deficiencies within 10 days
2130	after the filing. If the developer corrects the deficiencies or
2131	if there are no deficiencies, the division shall notify the
2132	developer of its approval of the advertising materials.
2133	Notwithstanding anything to the contrary contained in this
2134	subsection, so long as the developer uses advertising materials
2135	approved by the division, following the developer's request for
2136	a review, the developer shall not be liable for any violation of
2137	this section or s. 721.111 with respect to such advertising
2138	materials.
2139	(6) Failure to provide cancellation rights or disclosures
2140	as required by this subsection in connection with the sale of a
2141	regulated short-term product constitutes misrepresentation in
2142	accordance with paragraph (4)(a). Any agreement relating to the
2143	sale of a regulated short-term product must be regulated as
2144	advertising material and is subject to the following:
2145	(b) A purchaser of a regulated short-term product has the
2146	right to cancel the agreement until midnight of the 10th calendar
2147	day following the execution date of the agreement. The right of
2148	cancellation may not be waived by the prospective purchaser or
2149	by any other person on behalf of the prospective purchaser.
2150	Notice of cancellation must be given in the same manner
2151	prescribed for giving notice of cancellation under s. 721.10(2).
2152	If the prospective purchaser gives a valid notice of
2153	cancellation or is otherwise entitled to cancel the sale, the
2154	funds or otherproperty received from or on behalf of the
2155	prospective purchaser, or the proceeds thereof, must be returned
2156	to the prospective purchaser. Such refund must be made in the
2157	same manner prescribed for refunds under s. 721.10.
2158	(e) If the seller provides the purchaser with the right to
2159	cancel the purchase of a regulated short-term product at any
2160	time up to 7 days prior to the purchaser's reserved use of the
2161	accommodations, but in no event less than 10 days, and if the
2162	seller refunds the total amount of all payments made by the
2163	purchaser reduced by the proportion of any benefits the
2164	purchaser has actually received prior to the effective date of
2165	the cancellation, the specific value of which has been agreed to
2166	between the purchaser and the seller, the short-term product
2167	offer shall be exempt from the requirements of paragraphs (b),
2168	(c), and (d). An agreement relating to the sale of the regulated
2169	short-term product made pursuant to this paragraph must contain
2170	a statement setting forth the cancellation and refund rights of
2171	the prospective purchaser in a manner that is consistent with
2172	this section and s. 721.10, including a description of the
2173	length of the cancellation right, a statement that the
2174	purchaser's intent to cancel must be in writing and sent to the
2175	seller at a specified address, a statement that the notice of
2176	cancellation is effective upon the date sent, and a statement
2177	that any attempt to waive the cancellation right is unlawful.
2178	The right of cancellation provided to the purchaser pursuant to
2179	this paragraph may not be waived by the prospective purchaser or
2180	by any other person on behalf of the prospective purchaser.
2181	Notice of cancellation must be given in the same manner
2182	prescribed for giving notice of cancellation pursuant to s.
2183	721.10(2). If the prospective purchaser gives a valid notice of
2184	cancellation, or is otherwise entitled to cancel the sale, the
2185	funds or otherproperty received from or on behalf of the
2186	prospective purchaser, or the proceeds thereof, shall be
2187	returned to the prospective purchaser. Such refund shall be made
2188	in the manner prescribed for refunds under s. 721.10.
2189	(7) Notwithstanding the provisions of s. 721.05(7)(6)(b),
2190	a seller may portray possible accommodations or facilities to
2191	prospective purchasers in advertising material, or a purchaser
2192	public offering statement, without such accommodations or
2193	facilities being available for use by purchasers so long as the
2194	advertising material or purchaser public offering statement
2195	complies with the provisions of subsection (4).
2196	(8) Notwithstanding the provisions of s. 721.05(7)(6)(b),
2197	a developer may portray possible accommodations or facilities to
2198	prospective purchasers by disseminating oral or written
2199	statements regarding same to broadcast or print media with no
2200	obligation on the developer's part to actually construct such
2201	accommodations or facilities or to file such accommodations or
2202	facilities with the division, but only so long as such oral or
2203	written statements are not considered advertising material
2204	pursuant to paragraph (3)(e).
2205	(9) Notwithstanding the provisions of s. 721.05(7)(6)(b),
2206	a seller of a multisite timeshare plan may portray a possible
2207	component site to prospective purchasers with no accommodations
2208	or facilities located at such component site being available for
2209	use by purchasers so long as the seller satisfies the following
2210	requirements:
2211	(a) A developer of a multisite timeshare plan may
2212	disseminate oral or written statements to broadcast or print
2213	media describing a possible component site with no obligation on
2214	the developer's part to actually add such component site to the
2215	multisite timeshare plan or to amend the developer's filing with
2216	the division, but only so long as such oral or written
2217	statements are not considered advertising material pursuant to
2218	paragraph (3)(e).
2219	(b) A seller may make representations to purchasers in
2220	advertising material or in a purchaser public offering statement
2221	regarding the possible accommodations and facilities of a
2222	possible component site without such accommodations or
2223	facilities being available for use by purchasers so long as the
2224	advertising material or purchaser public offering statement
2225	complies with the provisions of subsection (4).
2226	(c) In the event a seller makes any of the representations
2227	permitted by paragraph (b), the purchase agreement must contain
2228	the following conspicuous disclosure unless and until such time
2229	as the developer has committed itself in the timeshare
2230	instrument to adding the possible component site to the
2231	multisite timeshare plan, at which time the seller may portray
2232	the component site pursuant to the timeshare instrument without
2233	restriction:
2234
2235	[Description of possible component site] is only a possible
2236	component site which may never be added to the multisite
2237	timeshare plan (or multisite vacation ownership plan or
2238	multisite vacation plan or vacation club). Do not purchase an
2239	interest in the multisite timeshare plan (or multisite vacation
2240	ownership plan or multisite vacation plan or vacation club) in
2241	reliance upon the addition of this component site.
2242	(d) Notwithstanding anything contained in this chapter to
2243	the contrary, a developer or managing entity may communicate
2244	with existing purchasers regarding possible component sites
2245	without restriction, so long as all oral and written statements
2246	made to existing purchasers pursuant to this subsection comply
2247	with the provisions of subsection (4).
2248	(e) Any violation of this subsection by a developer,
2249	seller, or managing entity shall constitute a violation of this
2250	chapter. Any violation of this subsection with respect to a
2251	purchaser whose purchase has not yet closed shall be deemed to
2252	provide that purchaser with a new 10-day voidability period.
2253	Section 11. Subsection (1) of section 721.12, Florida
2254	Statutes, is amended to read:
2255	721.12 Recordkeeping by seller.--Each seller of a
2256	timeshare plan shall maintain among its business records the
2257	following:
2258	(1) A copy of each contract for the sale of a timeshare
2259	interest, which contract has not been canceled. If a timeshare
2260	estate is being sold, the seller is required to retain a copy of
2261	the contract only until a deed of conveyance, agreement for
2262	deed, or lease is recorded in the office of the clerk of the
2263	circuit court in the county wherein the plan is located. If a
2264	personal property timeshare plan is being sold, the seller is
2265	required to retain a copy of the contract only until a
2266	certificate of transfer, agreement for transfer, lease, or other
2267	instrument of transfer that fully complies with s. 721.08 is
2268	delivered to the purchaser.
2269	Section 12. Paragraphs (a) and (b) of subsection (1),
2270	paragraph (b) of subsection (2), paragraphs (c), (d), and (e) of
2271	subsection (3), paragraph (g) of subsection (6), and subsections
2272	(4) and (8) of section 721.13, Florida Statutes, are amended,
2273	subsection (9) is renumbered as subsection (10), and new
2274	subsections (9) and (11) are added to said section, to read:
2275	721.13 Management.--
2276	(1)(a) For each timeshare plan, the developer shall
2277	provide for a managing entity, which shall be either the
2278	developer, a separate manager or management firm, or an owners'
2279	association. Any owners' association shall be created prior to
2280	the first closingrecording of the sale of a timeshare interest
2281	instrument.
2282	(b)1. With respect to a timeshare plan which is also
2283	regulated under chapter 718 or chapter 719, or which contains a
2284	mandatory owners' association, the board of administration of
2285	the owners'association shall be considered the managing entity
2286	of the timeshare plan.
2287	2. During any period of time in which such owners’
2288	association has entered into a contract with a manager or
2289	management firm to provide some or all of the management
2290	services to the timeshare plan, both the board of administration
2291	and the manager or management firm shall be considered the
2292	managing entity of the timeshare plan and shall be jointly and
2293	severally responsible for the faithful discharge of the duties
2294	of the managing entity.
2295	3. An owners' association which is the managing entity of
2296	a timeshare plan that includes condominium units or cooperative
2297	units shall not be considered a condominium association pursuant
2298	to the provisions of chapter 718 or a cooperative association
2299	pursuant to the provisions of chapter 719, unless such owners'
2300	association also operates the entire condominium pursuant to s.
2301	718.111 or the entire cooperative pursuant to s. 719.104.
2302	(2)
2303	(b) The managing entity shall invest the operating and
2304	reserve funds of the timeshare plan in accordance with s.
2305	518.11(1); however, the managing entity shall give safety of
2306	capital greater weight than production of income. In no event
2307	shall the managing entity invest timeshare plan funds with a
2308	developer or with any entity that is not independent of any
2309	developer or any managing entity within the meaning of s.
2310	721.05(20)(18), and in no event shall the managing entity invest
2311	timeshare plan funds in notes and mortgages related in any way
2312	to the timeshare plan.
2313	(3) The duties of the managing entity include, but are not
2314	limited to:
2315	(c)1. Providing each year to all purchasers an itemized
2316	annual budget which shall include all estimated revenues and
2317	expenses. The budget shall be in the form required by s.
2318	721.07(5)(u). The budgetandshall be the final budget adopted
2319	by the managing entity for the current fiscal year. The final
2320	adopted budget is not required to be delivered if the managing
2321	entity has previously delivered a proposed annual budget for the
2322	current fiscal year to purchasers in accordance with chapter 718
2323	or chapter 719, and the managing entity includes a description
2324	of any changes in the adopted budget with the assessment notice
2325	and a disclosure regarding the purchasers’ right to receive a
2326	copy of the adopted budget if desired.The budget shall contain,
2327	as a footnote or otherwise, any related party transaction
2328	disclosures or notes which appear in the audited financial
2329	statements of the managing entity for the previous budget year
2330	as required by paragraph (e). A copy of the final budget shall
2331	be filed with the division for reviewwithin 30 days after the
2332	beginning of each fiscal year together with a statement of the
2333	number of periods of 7-day annual use availability that exist
2334	within the timeshare plan, including those periods filed for
2335	sale by the developer but not yet committed to the timeshare
2336	plan, for which annual fees are required to be paid to the
2337	division under s. 721.27.
2338	2. Notwithstanding anything contained in chapter 718 or
2339	chapter 719 to the contrary, the board of administration of an
2340	owners' association which serves as the managing entity may from
2341	time to time reallocate reserves for deferred maintenance and
2342	capital expenditures required by s. 721.07(5)(u)3.a.(XI) from
2343	any deferred maintenance or capital expenditure reserve account
2344	to any other deferred maintenance or capital expenditure reserve
2345	account or accounts in its discretion without the consent of
2346	purchasers of the timeshare plan. Funds in any deferred
2347	maintenance or capital expenditure reserve account may not be
2348	transferred to any operating account without the consent of a
2349	majority of the purchasers of the timeshare plan. The managing
2350	entity may from time to time transfer excess funds in any
2351	operating account to any deferred maintenance or capital
2352	expenditure reserve account without the vote or approval of
2353	purchasers of the timeshare plan. In the event any amount of
2354	reserves for accommodations and facilities of a timeshare plan
2355	containing timeshare licenses or personal property timeshare
2356	interests exists at the end of the term of the timeshare plan,
2357	such reserves shall be refunded to purchasers on a pro rata
2358	basis.
2359	(d)1. Maintenance of all books and records concerning the
2360	timeshare plan so that all such books and records are reasonably
2361	available for inspection by any purchaser or the authorized
2362	agent of such purchaser. For purposes of this subparagraph, the
2363	books and records of the timeshare plan shall be considered
2364	"reasonably available" if copies of the requested portions are
2365	delivered to the purchaser or the purchaser's agent within 7
2366	days afterofthe date the managing entity receives a written
2367	request for the records signed by the purchaser. The managing
2368	entity may charge the purchaser a reasonable fee for copying the
2369	requested information not to exceed 25 cents per page. However,
2370	any purchaser or agent of such purchaser shall be permitted to
2371	personally inspect and examine the books and records wherever
2372	located at any reasonable time, under reasonable conditions, and
2373	under the supervision of the custodian of those records. The
2374	custodian shall supply copies of the records where requested and
2375	upon payment of the copying fee. No fees other than those set
2376	forth in this section may be charged for the providing of,
2377	inspection, or examination of books and records. All books and
2378	financial records of the timeshare plan must be maintained in
2379	accordance with generally accepted accounting practices.
2380	2. If the books and records of the timeshare plan are not
2381	maintained on the premises of the accommodations and facilities
2382	of the timeshare plan, the managing entity shall inform the
2383	division in writing of the location of the books and records and
2384	the name and address of the person who acts as custodian of the
2385	books and records at that location. In the event that the
2386	location of the books and records changes, the managing entity
2387	shall notify the division of the change in location and the name
2388	and address of the new custodian within 30 days afterofthe
2389	date the books and records are moved. The purchasers shall be
2390	notified of the location of the books and records and the name
2391	and address of the custodian in the copy of the annual budget
2392	provided to them pursuant to paragraph (c).
2393	3. The division is authorized to adopt rules which specify
2394	those items and matters that shall be included in the books and
2395	records of the timeshare plan and which specify procedures to be
2396	followed in requesting and delivering copies of the books and
2397	records.
2398	4. Notwithstanding any provision of chapter 718 or chapter
2399	719 to the contrary, the managing entity may not furnish the
2400	name, address, or electronic mailaddress of any purchaser to
2401	any other purchaser or authorized agent thereof unless the
2402	purchaser whose name,and address, or electronic mail address is
2403	arerequested first approves the disclosure in writing.
2404	(e) Arranging for an annual audit of the financial
2405	statements of the timeshare plan by a certified public
2406	accountant licensed by the Board of Accountancy of the
2407	Department of Business and Professional Regulation, in
2408	accordance with generally accepted auditing standards as defined
2409	by the rules of the Board of Accountancy of the Department of
2410	Business and Professional Regulation. The financial statements
2411	required by this section must be prepared on an accrual basis
2412	using fund accounting, and must be presented in accordance with
2413	generally accepted accounting principles. A copy of the audited
2414	financial statements must be filed with the division for review
2415	and forwarded to the board of directors and officers of the
2416	owners' association, if one exists, no later than 5 calendar
2417	months after the end of the timeshare plan's fiscal year. If no
2418	owners' association exists, each purchaser must be notified, no
2419	later than 5 months after the end of the timeshare plan's fiscal
2420	year, that a copy of the audited financial statements is
2421	available upon request to the managing entity. Notwithstanding
2422	any requirement of s. 718.111(13) or s. 719.104(4), the audited
2423	financial statements required by this section are the only
2424	annual financial reporting requirements for timeshare
2425	condominiums or timeshare cooperatives.
2426	(4) The managing entity shall maintain among its records
2427	and provide to the division upon request a complete list of the
2428	names and addresses of all purchasers and owners of timeshare
2429	units in the timeshare plan. The managing entity shall update
2430	this list no less frequently than quarterly. Pursuant to
2431	paragraph (3)(d), the managing entity may not publish this
2432	owner's list or provide a copy of it to any purchaser or to any
2433	third party other than the division. However, the managing
2434	entity shall to those persons listed on the owner's list
2435	materials provided by any purchaser, upon the written request of
2436	that purchaser, if the purpose of the mailing is to advance
2437	legitimate owners'association business, such as a proxy
2438	solicitation for any purpose, including the recall of one or
2439	more board members elected by the owners or the discharge of the
2440	manager or management firm. The use of any proxies solicited in
2441	this manner must comply with the provisions of the timeshare
2442	instrument and this chapter. A mailing requested for the purpose
2443	of advancing legitimate owners'association business shall occur
2444	within 30 days after receipt of a request from a purchaser. The
2445	board of administration of the owners’association shall be
2446	responsible for determining the appropriateness of any mailing
2447	requested pursuant to this subsection. The purchaser who
2448	requests the mailing must reimburse the owners'association in
2449	advance for the owners'association's actual costs in performing
2450	the mailing. It shall be a violation of this chapter and, if
2451	applicable, of part VIII of chapter 468, for the board of
2452	administration or the manager or management firm to refuse to
2453	mail any material requested by the purchaser to be mailed,
2454	provided the sole purpose of the materials is to advance
2455	legitimate owners'association business. If the purpose of the
2456	mailing is a proxy solicitation to recall one or more board
2457	members elected by the owners or to discharge the manager or
2458	management firm and the managing entity does not mail the
2459	materials within 30 days after receipt of a request from a
2460	purchaser, the circuit court in the county where the timeshare
2461	plan is located may, upon application from the requesting
2462	purchaser, summarily order the mailing of the materials solely
2463	related to the recall of one or more board members elected by
2464	the owners or the discharge of the manager or management firm.
2465	The court shall dispose of an application on an expedited basis.
2466	In the event of such an order, the court may order the managing
2467	entity to pay the purchaser's costs, including attorney's fees
2468	reasonably incurred to enforce the purchaser's rights, unless
2469	the managing entity can prove it refused the mailing in good
2470	faith because of a reasonable basis for doubt about the
2471	legitimacy of the mailing.
2472	(6)
2473	(g) A managing entity shall have breached its fiduciary
2474	duty described in subsection (2) in the event it enforces the
2475	denial of use pursuant to paragraph (b) against any one
2476	purchaser or group of purchasers without similarly enforcing it
2477	against all purchasers, including all developers and owners of
2478	the underlying fee or underlying personal property; however, a
2479	managing entity shall not be required to solicit rentals
2480	pursuant to paragraph (f) for every delinquent purchaser. A
2481	managing entity shall also have breached its fiduciary duty in
2482	the event an error in the books and records of the timeshare
2483	plan results in a denial of use pursuant to this subsection of
2484	any purchaser who is not, in fact, delinquent. In addition to
2485	any remedies otherwise available to purchasers of the timeshare
2486	plan arising from such breaches of fiduciary duty, such breach
2487	shall also constitute a violation of this chapter. In addition,
2488	any purchaser receiving a notice of delinquency pursuant to
2489	paragraph (b), or any third party claiming under such purchaser
2490	pursuant to paragraph (b), may immediately bring an action for
2491	injunctive or declaratory relief against the managing entity
2492	seeking to have the notice invalidated on the grounds that the
2493	purchaser is not, in fact, delinquent, that the managing entity
2494	failed to follow the procedures prescribed by this section, or
2495	on any other available grounds. The prevailing party in any such
2496	action shall be entitled to recover his or her reasonable
2497	attorney's fees from the losing party.
2498	(8) Notwithstanding anything to the contrary in s.
2499	718.110, s. 718.113, s. 718.114, or s. 719.1055, the board of
2500	administration of any owners' association that operates a
2501	timeshare condominium pursuant to s. 718.111, or a timeshare
2502	cooperative pursuant to s. 719.104, shall have the power to make
2503	material alterations or substantial additions to the
2504	accommodations or facilities of such timeshare condominium or
2505	timeshare cooperative without the approval of the owners'
2506	association. However, if the timeshare condominium or timeshare
2507	cooperative contains any residential units that are not subject
2508	to the timeshare plan, such action by the board of
2509	administration must be approved by a majority of the owners of
2510	such residential units. Unless otherwise provided in the
2511	timeshare instrument as originally recorded, no such amendment
2512	may change the configuration or size of any accommodation in any
2513	material fashion, or change the proportion or percentage by
2514	which a member of the owners’association shares the common
2515	expenses, unless the record owners of the affected units or
2516	timeshare interests and all record owners of liens on the
2517	affected units or timeshare interests join in the execution of
2518	the amendment.
2519	(9) All notices or other information sent by a board of
2520	administration of an owners’ association may be delivered to a
2521	purchaser by electronic mail, provided that the purchaser first
2522	consents electronically to the use of electronic mail for notice
2523	purposes in a manner that reasonably demonstrates that the
2524	purchaser has the ability to access the notice by electronic
2525	mail. Proxies or written consents on votes of any owners’
2526	association may be received by electronic mail, shall have legal
2527	effect, and may be utilized for votes of an owners’ association,
2528	provided that the electronic signature is authenticated through
2529	use of a password, cryptography software, or other reasonable
2530	means and that proof of such authentication is made available to
2531	the board of directors.
2532	(10)(9)Any failure of the managing entity to faithfully
2533	discharge the fiduciary duty to purchasers imposed by this
2534	section or to otherwise comply with the provisions of this
2535	section shall be a violation of this chapter and of part VIII of
2536	chapter 468.
2537	(11) Notwithstanding the other provisions of this section,
2538	personal property timeshare plans are only subject to the
2539	provisions of subsections (1)(a)-(d), (2)(a), (3)(a)-(h), (5),
2540	(6), (9), and (10).
2541	Section 13. Subsection (4) is added to section 721.14,
2542	Florida Statutes, to read:
2543	721.14 Discharge of managing entity.--
2544	(4) This section shall not apply to personal property
2545	timeshare plans.
2546	Section 14. Paragraph (c) of subsection (2) of section
2547	721.15, Florida Statutes, is amended, and subsection (10) is
2548	added to said section, to read:
2549	721.15 Assessments for common expenses.--
2550	(2)
2551	(c) For the purpose of calculating the obligation of a
2552	developer under a guarantee pursuant to paragraph (b),
2553	depreciation expenses related to real property shall be excluded
2554	from common expenses incurred during the guarantee period,
2555	except that for real property that is used for the production of
2556	fees, revenues, or other income, depreciation expenses shall be
2557	excluded only to the extent that they exceed the net income from
2558	the production of such fees, revenues, or other income.
2559	(10) This section shall not apply to personal property
2560	timeshare plans.
2561	Section 15. Subsection (6) is added to section 721.16,
2562	Florida Statutes, to read:
2563	721.16 Liens for overdue assessments; liens for labor
2564	performed on, or materials furnished to, a timeshare unit.--
2565	(6) This section shall not apply to personal property
2566	timeshare plans.
2567	Section 16. Section 721.17, Florida Statutes, is amended
2568	to read:
2569	721.17 Transfer of interest.--Except in the case of a
2570	timeshare plan subject to the provisions of chapter 718 or
2571	chapter 719, no developer,or owner of the underlying fee, or
2572	owner of the underlying personal propertyshall sell, lease,
2573	assign, mortgage, or otherwise transfer his or her interest in
2574	the accommodations and facilities of the timeshare plan except
2575	by an instrument evidencing the transfer recorded in the public
2576	records of the county in which such accommodations and
2577	facilities are located, or, with respect to personal property
2578	timeshare plans, in full compliance with s. 721.08. The
2579	instrument shall be executed by both the transferor and
2580	transferee and shall state:
2581	(1) That its provisions are intended to protect the rights
2582	of all purchasers of the plan.
2583	(2) That its terms may be enforced by any prior or
2584	subsequent timeshare purchaser so long as that purchaser is not
2585	in default of his or her obligations.
2586	(3) That so long as a purchaser remains in good standing
2587	with respect to her or his obligations under the timeshare
2588	instrument, including making all payments to the managing entity
2589	required by the timeshare instrument with respect to the annual
2590	common expenses of the timeshare plan, the transferee shallwill
2591	fully honor allthe rights of such purchaser relating to the
2592	subject accommodation or facility as reflectedthe purchasers to
2593	occupy and use the accommodations and facilities as provided in
2594	their original contracts and the timeshare instrument
2595	instruments.
2596	(4) That the transferee will fully honor all rights of
2597	timeshare purchasers to cancel their contracts and receive
2598	appropriate refunds.
2599	(5) That the obligations of the transferee under such
2600	instrument will continue to exist despite any cancellation or
2601	rejection of the contracts between the developer and purchaser
2602	arising out of bankruptcy proceedings.
2603
2604	Should any transfer of the interest of the developer,orowner
2605	of the underlying fee, or owner of the underlying propertyoccur
2606	in a manner which is not in compliance with this section, the
2607	terms set forth in this section shall be presumed to be a part
2608	of the transfer and shall be deemed to be included in the
2609	instrument of transfer. Notice shall be mailed to each purchaser
2610	of record within 30 days afterofthe transfer unless such
2611	transfer does not affect the purchaser's rights in or use of the
2612	timeshare plan. Persons who hold mortgages or lienson the
2613	property constituting a timeshare plan before the filed
2614	registeredpublic offering statement of such plan is approved by
2615	the division shall not be considered transferees for the
2616	purposes of this section.
2617	Section 17. Section 721.18, Florida Statutes, is amended
2618	to read:
2619	721.18 Exchange programs; filing of information and other
2620	materials; filing fees; unlawful acts in connection with an
2621	exchange program.--
2622	(1) If a purchaser is offered the opportunity to subscribe
2623	to an exchange program, the seller shall deliver to the
2624	purchaser, together with the purchaser public offering
2625	statement, and prior to the offering or execution of any
2626	contract between the purchaser and the company offering the
2627	exchange program, written information regarding such exchange
2628	program; or, if the exchange company is dealing directly with
2629	the purchaser, the exchange company shall deliver to the
2630	purchaser, prior to the initial offering or execution of any
2631	contract between the purchaser and the company offering the
2632	exchange program, written information regarding such exchange
2633	program. In either case, the purchaser shall certify in writing
2634	to the receipt of such information. Such information shall
2635	include, but is not limited to, the following information, the
2636	form and substance of which shall first be approved by the
2637	division in accordance with subsection (2):
2638	(a) The name and address of the exchange company.
2639	(b) The names of all officers, directors, and shareholders
2640	of the exchange company.
2641	(c) Whether the exchange company or any of its officers or
2642	directors has any legal or beneficial interest in any developer,
2643	seller, or managing entity for any timeshare plan participating
2644	in the exchange program and, if so, the name and location of the
2645	timeshare plan and the nature of the interest.
2646	(d) Unless otherwise stated, a statement that the
2647	purchaser's contract with the exchange company is a contract
2648	separate and distinct from the purchaser's contract with the
2649	seller of the timeshare plan.
2650	(e) Whether the purchaser's participation in the exchange
2651	program is dependent upon the continued affiliation of the
2652	timeshare plan with the exchange program.
2653	(f) A statement thatWhetherthe purchaser's participation
2654	in the exchange program is voluntary. This statement is not
2655	required to be given by the seller or managing entity of a
2656	multisite timeshare plan to purchasers in the multisite
2657	timeshare plan.
2658	(g) A complete and accurate description of the terms and
2659	conditions of the purchaser's contractual relationship with the
2660	exchange program and the procedure by which changes thereto may
2661	be made.
2662	(h) A complete and accurate description of the procedure
2663	to qualify for and effectuate exchanges.
2664	(i) A complete and accurate description of all
2665	limitations, restrictions, or priorities employed in the
2666	operation of the exchange program, including, but not limited
2667	to, limitations on exchanges based on seasonality, timeshare
2668	unit size, or levels of occupancy, expressed in boldfaced type,
2669	and, in the event that such limitations, restrictions, or
2670	priorities are not uniformly applied by the exchange program, a
2671	clear description of the manner in which they are applied.
2672	(j) Whether exchanges are arranged on a space-available
2673	basis and whether any guarantees of fulfillment of specific
2674	requests for exchanges are made by the exchange program.
2675	(k) Whether and under what circumstances a purchaser, in
2676	dealing with the exchange program, may lose the use and
2677	occupancy of her or his timeshare period in any properly applied
2678	for exchange without her or his being provided with substitute
2679	accommodations by the exchange program.
2680	(l) The fees or range of fees for membership or
2681	participation by purchasers in the exchange program by
2682	purchasers, including any conversion or other fees payable to
2683	third parties, a statement whether any such fees may be altered
2684	by the exchange company, and the circumstances under which
2685	alterations may be made.
2686	(m) The name and address of the site of each accommodation
2687	or facility included in the timeshare planplansparticipating
2688	in the exchange program.
2689	(n) The number of the timeshare units in each timeshare
2690	plan which are available for occupancy and which qualify for
2691	participation in the exchange program, expressed within the
2692	following numerical groupings: 1-5; 6-10; 11-20; 21-50; and 51
2693	and over.
2694	(o) The number of currently enrolled purchasers for each
2695	timeshare plan participating in the exchange program, expressed
2696	within the following numerical groupings: 1-100; 101-249; 250-
2697	499; 500-999; and 1,000 and over; and a statement of the
2698	criteria used to determine those purchasers who are currently
2699	enrolled with the exchange program.
2700	(p) The disposition made by the exchange company of
2701	timeshare periods deposited with the exchange program by
2702	purchasers enrolled in the exchange program and not used by the
2703	exchange company in effecting exchanges.
2704	(q) The following information, which shall be
2705	independently audited by a certified public accountant or
2706	accounting firm in accordance with the standards of the
2707	Accounting Standards Board of the American Institute of
2708	Certified Public Accountants and reported annually beginning no
2709	later than July 1, 1982:
2710	1. The number of purchasers currently enrolled in the
2711	exchange program.
2712	2. The number of accommodations and facilities that have
2713	current writtenaffiliation agreements with the exchange
2714	program.
2715	3. The percentage of confirmed exchanges, which is the
2716	number of exchanges confirmed by the exchange program divided by
2717	the number of exchanges properly applied for, together with a
2718	complete and accurate statement of the criteria used to
2719	determine whether an exchange request was properly applied for.
2720	4. The number of timeshare periods for which the exchange
2721	program has an outstanding obligation to provide an exchange to
2722	a purchaser who relinquished a timeshare period during the year
2723	in exchange for a timeshare period in any future year.
2724	5. The number of exchanges confirmed by the exchange
2725	program during the year.
2726	(r) A statement in boldfaced type to the effect that the
2727	percentage described in subparagraph (q)3. is a summary of the
2728	exchange requests entered with the exchange program in the
2729	period reported and that the percentage does not indicate the
2730	probabilities of a purchaser's being confirmed to any specific
2731	choice or range of choices.
2732	(2) Each exchange company offering an exchange program to
2733	purchasers in this state shall file with the division for review
2734	the information specified in subsection (1), together with any
2735	membership agreement and application between the purchaser and
2736	the exchange company,and the audit specified in subsection (1)
2737	on or before June 1 of each year. However, an exchange company
2738	shall make its initial filing at least 20 days prior to offering
2739	an exchange program to any purchaser in this state. Each filing
2740	shall be accompanied by an annual filing fee of $500. Within 20
2741	days afterofreceipt of such filing, the division shall
2742	determine whether the filing is adequate to meet the
2743	requirements of this section and shall notify the exchange
2744	company in writing that the division has either approved the
2745	filing or found specified deficiencies in the filing. If the
2746	division fails to respond within 20 days, the filing shall be
2747	deemed approved. The exchange company may correct the
2748	deficiencies; and, within 10 days after receipt of corrections
2749	from the exchange company, the division shall notify the
2750	exchange company in writing that the division has either
2751	approved the filing or found additional specified deficiencies
2752	in the filing. If the exchange company fails to adequately
2753	respond to any deficiency notice within 10 days, the division
2754	may reject the filing. Subsequent to such rejection, a new
2755	filing fee and a new division initial review period pursuant to
2756	this subsection shall apply to any refiling or further review of
2757	the rejected filing.
2758	(a) Any material change to an approved exchange company
2759	filing shall be filed with the division for approval as an
2760	amendment prior to becoming effective. Each amendment filing
2761	shall be accompanied by a filing fee of $100. The exchange
2762	company may correct the deficiencies; and, within 10 days after
2763	receipt of corrections from the exchange company, the division
2764	shall notify the exchange company in writing that the division
2765	has either approved the filing or found additional specified
2766	deficiencies in the filing. Each approved amendment to the
2767	approved exchange company filing, other than an amendment that
2768	does not materially alter or modify the exchange program in a
2769	manner that is adverse to a purchaser, as determined by the
2770	exchange company in its reasonable discretion, shall be
2771	delivered to each purchaser who has not closed. An approved
2772	exchange program filing is required to be updated with respect
2773	to added or deleted resorts only once each year, and such annual
2774	update shall not be deemed to be a material change to the
2775	filing.
2776	(b)If at any time the division determines that any of
2777	such information supplied by an exchange company fails to meet
2778	the requirements of this section, the division may undertake
2779	enforcement action against the exchange company in accordance
2780	with the provision of s. 721.26.
2781	(3) No developer shall have any liability with respect to
2782	any violation of this chapter arising out of the publication by
2783	the developer of information provided to it by an exchange
2784	company pursuant to this section. No exchange company shall have
2785	any liability with respect to any violation of this chapter
2786	arising out of the use by a developer of information relating to
2787	an exchange program other than that provided to the developer by
2788	the exchange company.
2789	(4) At the request of the exchange company, the division
2790	shall review anyaudio, written, or visual publications or
2791	materials relating to an exchange company or an exchange program
2792	shall be filed for review by the exchange company and shall
2793	notify the exchange company of any deficiencies within 10with
2794	the division within 3 days after the filingof their use. If the
2795	exchange company corrects the deficiencies or if there are no
2796	deficiencies, the division shall notify the exchange company of
2797	its approval of the advertising materials. If the exchange
2798	company fails to adequately respond to any deficiency notice
2799	within 10 days, the division may reject the advertising
2800	materials. Subsequent to such rejection, a new division initial
2801	review period pursuant to this subsection shall apply to any
2802	refiling or further review.
2803	(5) The failure of an exchange company to observe the
2804	requirements of this section, or the use of any unfair or
2805	deceptive act or practice in connection with the operation of an
2806	exchange program, is a violation of this chapter.
2807	Section 18. Section 721.19, Florida Statutes, is amended
2808	to read:
2809	721.19 Provisions requiring purchase or lease of timeshare
2810	property by owners' association or purchasers; validity.--In any
2811	timeshare plan in which timeshare estates or personal property
2812	timeshare interestsare sold, no grant or reservation made by a
2813	declaration, lease, or other document, nor any contract made by
2814	the developer, managing entity, or owners' association, which
2815	requires the owners' association or purchasers to purchase or
2816	lease any portion of the timeshare property shall be valid
2817	unless approved by a majority of the purchasers other than the
2818	developer, after more than 50 percent of the timeshare periods
2819	have been sold.
2820	Section 19. Section 721.20, Florida Statutes, is amended
2821	to read:
2822	721.20 Licensing requirements; suspension or revocation of
2823	license; exceptions to applicability; collection of advance fees
2824	for listings unlawful.--
2825	(1) Any seller of a timeshare plan must be a licensed real
2826	estate salesperson, broker, or broker-salesperson as defined in
2827	s. 475.01, except as provided in s. 475.011.
2828	(2) Solicitors who engage only in the solicitation of
2829	prospective purchasers and any purchaser who refers no more than
2830	20 people to a developer per year or who otherwise provides
2831	testimonials on behalf of a developer are exempt from the
2832	provisions of chapter 475.
2833	(3) A solicitor who has violated the provisions of chapter
2834	468, chapter 718, chapter 719, this chapter, or the rules of the
2835	division governing timesharing shall be subject to the
2836	provisions of s. 721.26. Any developer or other person who
2837	supervises, directs, or engages the services of a solicitor
2838	shall be liable for any violation of the provisions of chapter
2839	468, chapter 718, chapter 719, this chapter, or the rules of the
2840	division governing timesharing committed by such solicitor.
2841	(4) County and municipal governments shall have the
2842	authority to adopt codes of conduct and regulations to govern
2843	solicitor activity conducted on public property, including
2844	providing for the imposition of penalties prescribed by a
2845	schedule of fines adopted by ordinance for violations of any
2846	such code of conduct or regulation. Any violation of any such
2847	adopted code of conduct or regulation shall not constitute a
2848	separate violation of this chapter. This subsection is not
2849	intended to restrict or invalidate any local code of conduct or
2850	regulation.
2851	(5) This section does not apply to those individuals who
2852	offer for sale only timeshare interests in timeshare property
2853	located outside this state and who do not engage in any sales
2854	activity within this state or to timeshare plans which are
2855	registered with the Securities and Exchange Commission. For the
2856	purposes of this section, both timeshare licenses and timeshare
2857	estates are considered to be interests in real property.
2858	(6) Notwithstanding the provisions of s. 475.452, it is
2859	unlawful for any broker, salesperson, or broker-salesperson to
2860	collect any advance fee for the listing of any timeshare estate
2861	or timeshare license.
2862	(7) It is unlawful for any broker, salesperson, or broker-
2863	salesperson to collect any advance fee for the listing of a
2864	personal property timeshare interest.
2865	(8) Subsections (1), (2), and (3) do not apply to persons
2866	who offer personal property timeshare plans.
2867	Section 20. Subsection (6) is added to section 721.24,
2868	Florida Statutes, to read:
2869	721.24 Firesafety.--
2870	(6) Accommodations and facilities of personal property
2871	timeshare plans shall be exempt from the requirements of this
2872	section.
2873	Section 21. Paragraphs (a), (d), and (e) of subsection (5)
2874	of section 721.26, Florida Statutes, are amended to read:
2875	721.26 Regulation by division.--The division has the power
2876	to enforce and ensure compliance with the provisions of this
2877	chapter, except for parts III and IV, using the powers provided
2878	in this chapter, as well as the powers prescribed in chapters
2879	498, 718, and 719. In performing its duties, the division shall
2880	have the following powers and duties:
2881	(5) Notwithstanding any remedies available to purchasers,
2882	if the division has reasonable cause to believe that a violation
2883	of this chapter, or of any division rule or order promulgated or
2884	issued pursuant to this chapter, has occurred, the division may
2885	institute enforcement proceedings in its own name against any
2886	regulated party, as such term is defined in this subsection:
2887	(a)1. "Regulated party," for purposes of this section,
2888	means any developer, exchange company, seller, managing entity,
2889	owners' association, owners' association director, owners'
2890	association officer, manager, management firm, escrow agent,
2891	trustee, any respective assignees or agents, or any other person
2892	having duties or obligations pursuant to this chapter.
2893	2. Any person who materially participates in any offer or
2894	disposition of any interest in, or the management or operation
2895	of, a timeshare plan in violation of this chapter or relevant
2896	rules involving fraud, deception, false pretenses,
2897	misrepresentation, or false advertising or the disbursement,
2898	concealment, or diversion of any funds or assets, which conduct
2899	adversely affects the interests of a purchaser, and which person
2900	directly or indirectly controls a regulated party or is a
2901	general partner, officer, director, agent, or employee of such
2902	regulated party, shall be jointly and severally liable under
2903	this subsection with such regulated party, unless such person
2904	did not know, and in the exercise of reasonable care could not
2905	have known, of the existence of the facts giving rise to the
2906	violation of this chapter. A right of contribution shall exist
2907	among jointly and severally liable persons pursuant to this
2908	paragraph.
2909	(d)1. The division may bring an action in circuit court
2910	for declaratory or injunctive relief or for other appropriate
2911	relief, including restitution.
2912	2. The division shall have broad authority and discretion
2913	to petition the circuit court to appoint a receiver with respect
2914	to any managing entity which fails to perform its duties and
2915	obligations under this chapter with respect to the operation of
2916	a timeshare plan. The circumstances giving rise to an
2917	appropriate petition for receivership under this subparagraph
2918	include, but are not limited to:
2919	a. Damage to or destruction of any of the accommodations
2920	or facilities of a timeshare plan, where the managing entity has
2921	failed to repair or reconstruct same.
2922	b. A breach of fiduciary duty by the managing entity,
2923	including, but not limited to, undisclosed self-dealing or
2924	failure to timely assess, collect, or disburse the common
2925	expenses of the timeshare plan.
2926	c. Failure of the managing entity to operate the timeshare
2927	plan in accordance with the timeshare instrument and this
2928	chapter.
2929
2930	If, under the circumstances, it appears that the events giving
2931	rise to the petition for receivership cannot be reasonably and
2932	timely corrected in a cost-effective manner consistent with the
2933	timeshare instrument, the receiver may petition the circuit
2934	court to implement such amendments or revisions to the timeshare
2935	instrument as may be necessary to enable the managing entity to
2936	resume effective operation of the timeshare plan, or to enter an
2937	order terminating the timeshare plan, or to enter such further
2938	orders regarding the disposition of the timeshare property as
2939	the court deems appropriate, including the disposition and sale
2940	of the timeshare property held by the owners'association or the
2941	purchasers. In the event of a receiver's sale, all rights,
2942	title, and interest held by the owners'association or any
2943	purchaser shall be extinguished and title shall vest in the
2944	buyer. This provision applies to timeshare estates, personal
2945	property timeshare interests,and timeshare licenses. All
2946	reasonable costs and fees of the receiver relating to the
2947	receivership shall become common expenses of the timeshare plan
2948	upon order of the court.
2949	3. The division may revoke its approval of any filing for
2950	any timeshare plan for which a petition for receivership has
2951	been filed pursuant to this paragraph.
2952	(e)1. The division may impose a penalty against any
2953	regulated party for a violation of this chapter or any rule
2954	adopted thereunder. A penalty may be imposed on the basis of
2955	each day of continuing violation, but in no event may the
2956	penalty for any offense exceed $10,000. All accounts collected
2957	shall be deposited with the Treasurer to the credit of the
2958	Division of Florida Land Sales, Condominiums, and Mobile Homes
2959	Trust Fund.
2960	2.a. If a regulated party fails to pay a penalty, the
2961	division shall thereupon issue an order directing that such
2962	regulated party cease and desist from further operation until
2963	such time as the penalty is paid; or the division may pursue
2964	enforcement of the penalty in a court of competent jurisdiction.
2965	b. If an owners'association or managing entity fails to
2966	pay a civil penalty, the division may pursue enforcement in a
2967	court of competent jurisdiction.
2968	Section 22. Section 721.27, Florida Statutes, is amended
2969	to read:
2970	721.27 Annual fee for each timeshare unit in plan.--On
2971	January 1 of each year, each managing entity of a timeshare plan
2972	located in this state shall collect as a common expense and pay
2973	to the division an annual fee of $1.50$2for each 7 days of
2974	annual use availability that exist within the timeshare plan at
2975	that time, subject to any limitations on the amount of such
2976	annual fee pursuant to s. 721.58. If any portion of the annual
2977	fee is not paid by March 1, the managing entity may be assessed
2978	a penalty pursuant to s. 721.26.
2979	Section 23. Section 721.52, Florida Statutes, is amended
2980	to read:
2981	721.52 Definitions.--As used in this chapter, the term:
2982	(1) "Applicable law" means the law of the jurisdiction
2983	where the accommodations and facilities referred to are located.
2984	(2) "Component site" means a specific geographic site
2985	where a portion of the accommodations and facilities of the
2986	multisite timeshare plan are located. If permitted under
2987	applicable law, separate phases operated as a single development
2988	located at a specific geographic site under common management
2989	shall be deemed a single component site for purposes of this
2990	part.
2991	(3) "Inventory" means the accommodations and facilities
2992	located at a particular component site or sites owned, leased,
2993	licensed, or otherwise acquired for use by a developer and
2994	offered as part of the multisite timeshare plan.
2995	(4) "Multisite timeshare plan" means any method,
2996	arrangement, or procedure with respect to which a purchaser
2997	obtains, by any means, a recurring right to use and occupy
2998	accommodations or facilities of more than one component site,
2999	only through use of a reservation system, whether or not the
3000	purchaser is able to elect to cease participating in the plan.
3001	However, the term "multisite timeshare plan" shall not include
3002	any method, arrangement, or procedure wherein:
3003	(a) The contractually specified maximum total financial
3004	obligation on the purchaser's part is $3,000 or less, during the
3005	entire term of the plan; or
3006	(b) The term is for a period of 3 years or less,
3007	regardless of the purchaser's contractually specified maximum
3008	total financial obligation, if any. For purposes of determining
3009	the term of such use and occupancy rights, the period of any
3010	optional renewals which a purchaser, in his or her sole
3011	discretion, may elect to exercise, whether or not for additional
3012	consideration, shall not be included. For purposes of
3013	determining the term of such use and occupancy rights, the
3014	period of any automatic renewals shall be included unless a
3015	purchaser has the right to terminate the membership at any time
3016	and receive a pro rata refund or the purchaser receives a notice
3017	no less than 30 days and no more than 60 days prior to the date
3018	of renewal informing the purchaser of the right to terminate at
3019	any time prior to the date of automatic renewal.
3020
3021	Multisite timeshare plan does not mean an exchange program as
3022	defined in s. 721.05. Timeshare estates may only be offered in a
3023	multisite timeshare plan pursuant to s. 721.57.
3024	(5) “Nonspecific multisite timeshare plan” means a
3025	multisite timeshare plan containing timeshare licenses or
3026	personal property timeshare interests, with respect to which a
3027	purchaser receives a right to use all of the accommodations and
3028	facilities, if any, of the multisite timeshare plan through the
3029	reservation system, but no specific right to use any particular
3030	accommodations and facilities for the remaining term of the
3031	multisite timeshare plan in the event that the reservation
3032	system is terminated for any reason prior to the expiration of
3033	the term of the multisite timeshare plan.
3034	(6)(5)"Reservation system" means the method, arrangement,
3035	or procedure by which a purchaser, in order to reserve the use
3036	and occupancy of any accommodation or facility of the multisite
3037	timeshare plan for one or more use periods, is required to
3038	compete with other purchasers in the same multisite timeshare
3039	plan regardless of whether such reservation system is operated
3040	and maintained by the multisite timeshare plan managing entity,
3041	an exchange company, or any other person. In the event that a
3042	purchaser is required to use an exchange program as the
3043	purchaser's principal means of obtaining the right to use and
3044	occupy a multisite timeshare plan's accommodations and
3045	facilities, such arrangement shall be deemed a reservation
3046	system. When an exchange company utilizes a mechanism for the
3047	exchange of use of timeshare periods among members of an
3048	exchange program, such utilization is not a reservation system
3049	of a multisite timeshare plan.
3050	(7) “Specific multisite timeshare plan” means a multisite
3051	timeshare plan containing timeshare licenses or personal
3052	property timeshare interests, with respect to which a purchaser
3053	receives a specific right to use accommodations and facilities,
3054	if any, at one component site of a multisite timeshare plan,
3055	together with use rights in the other accommodations and
3056	facilities of the multisite timeshare plan created by or
3057	acquired through the reservation system.
3058	(8)(6)"Vacation club" means a multisite timeshare plan.
3059	Section 24. Paragraph (a) of subsection (1) of section
3060	721.53, Florida Statutes, is amended and paragraph (f) is added
3061	to subsection (1) of said section, to read:
3062	721.53 Subordination instruments; alternate security
3063	arrangements.--
3064	(1) With respect to each accommodation or facility of a
3065	multisite timeshare plan, the developer shall provide the
3066	division with satisfactory evidence that one of the following
3067	has occurred with respect to each interestholder prior to
3068	offering the accommodation or facility as a part of the
3069	multisite timeshare plan:
3070	(a) The interestholder has executed and recorded a
3071	nondisturbance and notice to creditors instrument pursuant to s.
3072	721.08(2)(c).
3073	(f) With respect to any personal property accommodations
3074	or facilities, the developer and any other interestholder have
3075	complied fully with the applicable provisions of s. 721.08.
3076	Section 25. Section 721.54, Florida Statutes, is amended
3077	to read:
3078	721.54 Term of nonspecific multisite timeshare plans.--It
3079	shall be a violation of this part to represent to a purchaser of
3080	a nonspecific multisite timeshare plan as defined in s.
3081	721.52(5)721.552(4)that the term of the plan for that
3082	purchaser is longer than the shortest term of availability of
3083	any of the accommodations included within the plan at the time
3084	of purchase.
3085	Section 26. Section 721.55, Florida Statutes, is amended
3086	to read:
3087	721.55 Multisite timeshare plan public offering
3088	statement.--Each filedregisteredpublic offering statement for
3089	a multisite timeshare plan shall contain the information
3090	required by this section and shall comply with the provisions of
3091	s. 721.07, except as otherwise provided therein. The division is
3092	authorized to provide by rule the method by which a developer
3093	must provide such information to the division. Each multisite
3094	timeshare plan filedregisteredpublic offering statement shall
3095	contain the following information and disclosures:
3096	(1) A cover page containing:
3097	(a) The name of the multisite timeshare plan.
3098	(b) The following statement in conspicuous type:
3099
3100	This public offering statement contains important matters
3101	to be considered in acquiring an interest in a multisite
3102	timeshare plan (or multisite vacation ownership plan or
3103	multisite vacation plan or vacation club). The statements
3104	contained herein are only summary in nature. A prospective
3105	purchaser should refer to all references, accompanying exhibits,
3106	contract documents, and sales materials. The prospective
3107	purchaser should not rely upon oral representations as being
3108	correct and should refer to this document and accompanying
3109	exhibits for correct representations.
3110
3111	(2) A summary containing all statements required to be in
3112	conspicuous type in the public offering statement and in all
3113	exhibits thereto.
3114	(3) A separate index for the contents and exhibits of the
3115	public offering statement.
3116	(4) A text, which shall include, where applicable, the
3117	information and disclosures set forth in paragraphs (a)-(l).
3118	(a) A description of the multisite timeshare plan,
3119	including its term, legal structure, and form of ownership. For
3120	multisite timeshare plans in which the purchaser will receive a
3121	timeshare estate pursuant to s. 721.57 and foror a specific
3122	multisite timeshare planslicense as defined in s. 721.552(4),
3123	the description must also include the term of each component
3124	site within the multisite timeshare plan.
3125	(b) A description of the structure and ownership of the
3126	reservation system together with a disclosure of the entity
3127	responsible for the operation of the reservation system. The
3128	description shall include the financial terms of any lease of
3129	the reservation system, if applicable. The developer shall not
3130	be required to disclose the financial terms of any such lease if
3131	such lease is prepaid in full for the term of the multisite
3132	timeshare plan or to any extent that neither purchasers nor the
3133	managing entity will be required to make payments for the
3134	continued use of the system following default by the developer
3135	or termination of the managing entity.
3136	(c)1. A description of the manner in which the reservation
3137	system operates. The description shall include a disclosure in
3138	compliance with the demand balancing standard set forth in s.
3139	721.56(6) and shall describe the developer's efforts to comply
3140	with same in creating the reservation system. The description
3141	shall also include a summary of the rules and regulations
3142	governing access to and use of the reservation system.
3143	2. In lieu of describing the rules and regulations of the
3144	reservation system in the public offering statement text, the
3145	developer may attach the rules and regulations as a separate
3146	public offering statement exhibit, together with a cross-
3147	reference in the public offering statement text to such exhibit.
3148	(d) The existence of and an explanation regarding any
3149	priority reservation features that affect a purchaser's ability
3150	to make reservations for the use of a given accommodation or
3151	facility on a first come, first served basis, including, if
3152	applicable, the following statement in conspicuous type:
3153
3154	Component sites contained in the multisite timeshare plan
3155	(or multisite vacation ownership plan or multisite vacation plan
3156	or vacation club) are subject to priority reservation features
3157	which may affect your ability to obtain a reservation.
3158
3159	(e) A summary of the material rules and regulations, if
3160	any, other than the reservation system rules and regulations,
3161	affecting the purchaser's use of each accommodation and facility
3162	at each component site.
3163	(f) If the provisions of s. 721.552 and the timeshare
3164	instrument permit additions, substitutions, or deletions of
3165	accommodations or facilities, the public offering statement must
3166	include substantially the following information:
3167	1. Additions.--
3168	a. A description of the basis upon which new
3169	accommodations and facilities may be added to the multisite
3170	timeshare plan; by whom additions may be made; and the
3171	anticipated effect of the addition of new accommodations and
3172	facilities upon the reservation system, its priorities, its
3173	rules and regulations, and the availability of existing
3174	accommodations and facilities.
3175	b. The developer must disclose the existence of any cap on
3176	annual increases in common expenses of the multisite timeshare
3177	plan that would apply in the event that additional
3178	accommodations and facilities are made a part of the plan.
3179	c. The developer shall also disclose any extent to which
3180	the purchasers of the multisite timeshare plan will have the
3181	right to consent to any proposed additions; if the purchasers do
3182	not have the right to consent, the developer must include the
3183	following disclosure in conspicuous type:
3184
3185	Accommodations and facilities may be added to this
3186	multisite timeshare plan (or multisite vacation ownership plan
3187	or multisite vacation plan or vacation club) without the consent
3188	of the purchasers. The addition of accommodations and facilities
3189	to the plan may result in the addition of new purchasers who
3190	will compete with existing purchasers in making reservations for
3191	the use of available accommodations and facilities within the
3192	plan, and may also result in an increase in the annual
3193	assessment against purchasers for common expenses.
3194
3195	2. Substitutions.--
3196	a. A description of the basis upon which new
3197	accommodations and facilities may be substituted for existing
3198	accommodations and facilities of the multisite timeshare plan;
3199	by whom substitutions may be made; the basis upon which the
3200	determination may be made to cause such substitutions to occur;
3201	and any limitations upon the ability to cause substitutions to
3202	occur.
3203	b. The developer shall also disclose any extent to which
3204	purchasers will have the right to consent to any proposed
3205	substitutions; if the purchasers do not have the right to
3206	consent, the developer must include the following disclosure in
3207	conspicuous type:
3208
3209	New accommodations and facilities may be substituted for
3210	existing accommodations and facilities of this multisite
3211	timeshare plan (or multisite vacation ownership plan or
3212	multisite vacation plan or vacation club) without the consent of
3213	the purchasers. The replacement accommodations and facilities
3214	may be located at a different place or may be of a different
3215	type or quality than the replaced accommodations and facilities.
3216	The substitution of accommodations and facilities may also
3217	result in an increase in the annual assessment against
3218	purchasers for common expenses.
3219
3220	3. Deletions.--A description of any provision of the
3221	timeshare instrument governing deletion of accommodations or
3222	facilities from the multisite timeshare plan. If the timeshare
3223	instrument does not provide for business interruption insurance
3224	in the event of a casualty, or if it is unavailable, or if the
3225	instrument permits the developer, the managing entity, or the
3226	purchasers to elect not to reconstruct after casualty under
3227	certain circumstances or to secure replacement accommodations or
3228	facilities in lieu of reconstruction, the public offering
3229	statement must contain a disclosure that during the
3230	reconstruction, replacement, or acquisition period, or as a
3231	result of a decision not to reconstruct, purchasers of the plan
3232	may temporarily compete for available accommodations on a
3233	greater than one-to-one purchaser to accommodation ratio.
3234	(g) A description of the developer and the managing entity
3235	of the multisite timeshare plan, including:
3236	1. The identity of the developer; the developer's business
3237	address; the number of years of experience the developer has in
3238	the timeshare, hotel, motel, travel, resort, or leisure
3239	industries; and a description of any pending lawsuit or judgment
3240	against the developer which is material to the plan. If there
3241	are no such pending lawsuits or judgments, there shall be a
3242	statement to that effect.
3243	2. The identity of the managing entity of the multisite
3244	timeshare plan; the managing entity's business address; the
3245	number of years of experience the managing entity has in the
3246	timeshare, hotel, motel, travel, resort, or leisure industries;
3247	and a description of any lawsuit or judgment against the
3248	managing entity which is material to the plan. If there are no
3249	pending lawsuits or judgments, there shall be a statement to
3250	that effect. The description of the managing entity shall also
3251	include a description of the relationship among the managing
3252	entity of the multisite timeshare plan and the various component
3253	site managing entities.
3254	(h) A description of the purchaser's liability for common
3255	expenses of the multisite timeshare plan, including the
3256	following:
3257	1. A description of the common expenses of the plan,
3258	including the method of allocation and assessment of such common
3259	expenses, whether component site common expenses and real estate
3260	taxes are included within the total common expense assessment of
3261	the multisite timeshare plan, and, if not, the manner in which
3262	timely payment of component site common expenses and real estate
3263	taxes shall be accomplished.
3264	2. A description of any cap imposed upon the level of
3265	common expenses payable by the purchaser. In no event shall the
3266	total common expense assessment for the multisite timeshare plan
3267	in a given calendar year exceed 125 percent of the total common
3268	expense assessment for the plan in the previous calendar year.
3269	3. A description of the entity responsible for the
3270	determination of the common expenses of the multisite timeshare
3271	plan, as well as any entity which may increase the level of
3272	common expenses assessed against the purchaser at the multisite
3273	timeshare plan level.
3274	4. A description of the method used to collect common
3275	expenses, including the entity responsible for such collections,
3276	and the lien rights of any entity for nonpayment of common
3277	expenses. If the common expenses of any component site are
3278	collected by the managing entity of the multisite timeshare
3279	plan, a statement to that effect together with the identity and
3280	address of the escrow agent required by s. 721.56(3).
3281	5. If the purchaser will receive an interest ina
3282	nonspecific multisite timeshare planlicense as defined in s.
3283	721.552(4), a statement that a multisite timeshare plan budget
3284	is attached to the public offering statement as an exhibit
3285	pursuant to paragraph (7)(c). The multisite timeshare plan
3286	budget shall comply with the provisions of s. 721.07(5)(u).
3287	6. If the developer intends to guarantee the level of
3288	assessments for the multisite timeshare plan, such guarantee
3289	must be based upon a good faith estimate of the revenues and
3290	expenses of the multisite timeshare plan. The guarantee must
3291	include a description of the following:
3292	a. The specific time period, measured in one or more
3293	calendar or fiscal years, during which the guarantee will be in
3294	effect.
3295	b. A statement that the developer will pay all common
3296	expenses incurred in excess of the total revenues of the
3297	multisite timeshare plan, if the developer is to be excused from
3298	the payment of assessments during the guarantee period.
3299	c. The level, expressed in total dollars, at which the
3300	developer guarantees the assessments. If the developer has
3301	reserved the right to extend or increase the guarantee level, a
3302	disclosure must be included to that effect.
3303	7. If required under applicable law, the developer shall
3304	also disclose the following matters for each component site:
3305	a. Any limitation upon annual increases in common
3306	expenses;
3307	b. The existence of any bad debt or working capital
3308	reserve; and
3309	c. The existence of any replacement or deferred
3310	maintenance reserve.
3311	(i) If there are any restrictions upon the sale, transfer,
3312	conveyance, or leasing of an interest in a multisite timeshare
3313	plan, a description of the restrictions together with a
3314	statement in conspicuous type in substantially the following
3315	form:
3316
3317	The sale, lease, or transfer of interests in this multisite
3318	timeshare plan is restricted or controlled.
3319
3320	(j) The following statement in conspicuous type in
3321	substantially the following form:
3322
3323	The purchase of an interest in a multisite timeshare plan
3324	(or multisite vacation ownership plan or multisite vacation plan
3325	or vacation club) should be based upon its value as a vacation
3326	experience or for spending leisure time, and not considered for
3327	purposes of acquiring an appreciating investment or with an
3328	expectation that the interest may be resold.
3329
3330	(k) If the multisite timeshare plan provides purchasers
3331	with the opportunity to participate in an exchange program, a
3332	description of the name and address of the exchange company and
3333	the method by which a purchaser accesses the exchange program.
3334	In lieu of this requirement, the public offering statement text
3335	may contain a cross-reference to other provisions in the public
3336	offering statement or in an exhibit containing this information.
3337	(l) A description of each component site, which
3338	description may be disclosed in a written, graphic, tabular, or
3339	other form approved by the division. The description of each
3340	component site shall include the following information:
3341	1. The name and address of each component site.
3342	2. The number of accommodations, timeshare interests, and
3343	timeshare periods, expressed in periods of 7-day use
3344	availability, committed to the multisite timeshare plan and
3345	available for use by purchasers.
3346	3. Each type of accommodation in terms of the number of
3347	bedrooms, bathrooms, sleeping capacity, and whether or not the
3348	accommodation contains a full kitchen. For purposes of this
3349	description, a full kitchen shall mean a kitchen having a
3350	minimum of a dishwasher, range, sink, oven, and refrigerator.
3351	4. A description of facilities available for use by the
3352	purchaser at each component site, including the following:
3353	a. The intended use of the facility, if not apparent from
3354	the description.
3355	b. Any user fees associated with a purchaser's use of the
3356	facility.
3357	5. A cross-reference to the location in the public
3358	offering statement of the description of any priority
3359	reservation features which may affect a purchaser's ability to
3360	obtain a reservation in the component site.
3361	(5) Such other information as the division determines is
3362	necessary to fairly, meaningfully, and effectively disclose all
3363	aspects of the multisite timeshare plan, including, but not
3364	limited to, any disclosures made necessary by the operation of
3365	s. 721.03(8). However, if a developer has, in good faith,
3366	attempted to comply with the requirements of this section, and
3367	if, in fact, the developer has substantially complied with the
3368	disclosure requirements of this chapter, nonmaterial errors or
3369	omissions shall not be actionable.
3370	(6) Any other information that the developer, with the
3371	approval of the division, desires to include in the public
3372	offering statement text.
3373	(7) The following documents shall be included as exhibits
3374	to the filedregisteredpublic offering statement, if
3375	applicable:
3376	(a) The timeshare instrument.
3377	(b) The reservation system rules and regulations.
3378	(c) The multisite timeshare plan budget pursuant to
3379	subparagraph (4)(h)5.
3380	(d) Any document containing the material rules and
3381	regulations described in paragraph (4)(e).
3382	(e) Any contract, agreement, or other document through
3383	which component sites are affiliated with the multisite
3384	timeshare plan.
3385	(f) Any escrow agreement required pursuant to s. 721.08 or
3386	s. 721.56(3).
3387	(g) The form agreement for sale or lease of an interest in
3388	the multisite timeshare plan.
3389	(h) The form receipt for multisite timeshare plan
3390	documents required to be given to the purchaser pursuant to s.
3391	721.551(2)(b).
3392	(i) The description of documents list required to be given
3393	to the purchaser by s. 721.551(2)(b).
3394	(j) The component site managing entity affidavit or
3395	statement required by s. 721.56(1).
3396	(k) Any subordination instrument required by s. 721.53.
3397	(l)1. If the multisite timeshare plan contains any
3398	component sites located in this state, the information required
3399	by s. 721.07(5) pertaining to each such component site unless
3400	exempt pursuant to s. 721.03.
3401	2. If the purchaser will receive a timeshare estate
3402	pursuant to s. 721.57, or an interest in a specific
3403	multisitetimeshare plan,license as defined in s. 721.552(4)in
3404	a component site located outside of this state but which is
3405	offered in this state, the information required by s. 721.07(5)
3406	pertaining to that component site,;provided, however, that the
3407	provisions of s. 721.07(5)(u) shall only require disclosure of
3408	information related to the estimated budget for the timeshare
3409	plan and purchaser's expenses as required by the jurisdiction in
3410	which the component site is located.
3411	(8)(a) A timeshare plan containing only one component site
3412	must be filed with the division as a multisite timeshare plan if
3413	the timeshare instrument reserves the right for the developer to
3414	add future component sites. However, if the developer fails to
3415	add at least one additional component site to a timeshare plan
3416	described in this paragraph within 3 years after the date the
3417	plan is initially filed with the division, the multisite filing
3418	for such plan shall thereupon terminate, and the developer may
3419	not thereafter offer any further interests in such plan unless
3420	and until he or she refiles such plan with the division pursuant
3421	to this chapter.
3422	(b) The public offering statement for any timeshare plan
3423	described in paragraph (a) must include the following disclosure
3424	in conspicuous type:
3425
3426	This timeshare plan has been filed as a multisite timeshare
3427	plan (or multisite vacation ownership plan or multisite vacation
3428	plan or vacation club); however, this plan currently contains
3429	only one component site. The developer is not required to add
3430	any additional component sites to the plan. Do not purchase an
3431	interest in this plan in reliance upon the addition of any other
3432	component sites.
3433	Section 27. Paragraphs (b), (c), and (f) of subsection (2)
3434	of section 721.551, Florida Statutes, are amended to read:
3435	721.551 Delivery of multisite timeshare plan purchaser
3436	public offering statement.--
3437	(2) The developer shall furnish each purchaser with the
3438	following:
3439	(b) A receipt for multisite timeshare plan documents and a
3440	list describing any exhibit to the filedregisteredpublic
3441	offering statement which is not delivered to the purchaser. The
3442	division is authorized to prescribe by rule the form of the
3443	receipt for multisite timeshare plan documents and the
3444	description of exhibits list that must be furnished to the
3445	purchaser pursuant to this section.
3446	(c) If the purchaser will receive a timeshare estate
3447	pursuant to s. 721.57, or an interest in a specific multisite
3448	timeshare plan,license as defined in s. 721.552(4)in a
3449	component site located in this state, the developer shall also
3450	furnish the purchaser with the information required to be
3451	delivered pursuant to s. 721.07(6)(a) and (b) for the component
3452	site in which the purchaser will receive an estate or interest
3453	in a specific multisite timeshare planlicense.
3454	(f) The developer shall be required to provide the
3455	managing entity of the multisite timeshare plan with a copy of
3456	the approved filedregisteredpublic offering statement and any
3457	approved amendments thereto to be maintained by the managing
3458	entity as part of the books and records of the timeshare plan
3459	pursuant to s. 721.13(3)(d).
3460	Section 28. Paragraph (a) of subsection (2), paragraph (c)
3461	of subsection (3), and subsections (4) and (5) of section
3462	721.552, Florida Statutes, are amended to read:
3463	721.552 Additions, substitutions, or deletions of
3464	component site accommodations or facilities; purchaser remedies
3465	for violations.--Additions, substitutions, or deletions of
3466	component site accommodations or facilities may be made only in
3467	accordance with the following:
3468	(2) SUBSTITUTIONS.--
3469	(a) Substitutions are available only for nonspecific
3470	multisite timeshare license plans as defined in subsection (4).
3471	Specific multisite timeshare license plans oras defined in
3472	subsection (4) andplans offering timeshare estates pursuant to
3473	s. 721.57 may not contain an accommodation substitution right.
3474	(3) DELETIONS.--
3475	(c) Automatic deletion.--The timeshare instrument may
3476	provide that a component site will be automatically deleted upon
3477	the expiration of its term in a timeshare planother than a
3478	nonspecific multisite timesharelicenseplan or as otherwise
3479	provided in the timeshare instrument. However, the timeshare
3480	instrument must also provide that in the event a component site
3481	is deleted from the plan in this manner, a sufficient number of
3482	purchasers of the plan will also be deleted so as to maintain no
3483	greater than a one-to-one purchaser to accommodation ratio.
3484	(4) SPECIFIC AND NONSPECIFIC TIMESHARE LICENSES.--For
3485	purposes of this chapter, a specific timeshare license means one
3486	with respect to which a purchaser receives a specific right to
3487	use accommodations and facilities, if any, at one component site
3488	of a multisite timeshare plan, together with use rights in the
3489	other accommodations and facilities of the multisite timeshare
3490	plan created by or acquired through the reservation system. For
3491	purposes of this chapter, a nonspecific timeshare license means
3492	one with respect to which a purchaser receives a right to use
3493	all of the accommodations and facilities, if any, of a multisite
3494	timeshare plan through the reservation system, but no specific
3495	right to use any particular accommodations and facilities for
3496	the remaining term of the multisite timeshare plan in the event
3497	that the reservation system is terminated for any reason prior
3498	to the expiration of the term of the multisite timeshare plan.
3499	(4)(5)VIOLATIONS; PURCHASER REMEDIES.--All purchaser
3500	remedies pursuant to s. 721.21 shall be available for any
3501	violation of the provisions of this section.
3502	Section 29. Subsections (4) and (5) of section 721.56,
3503	Florida Statutes, are amended to read:
3504	721.56 Management of multisite timeshare plans;
3505	reservation systems; demand balancing.--
3506	(4) The managing entity of a multisite timeshare plan
3507	shall comply fully with the requirements of s. 721.13, subject
3508	to the provisions of s. 721.13(11) for personal property
3509	timeshare plans; however, with respect to a given component
3510	site, the managing entity of the multisite timeshare plan shall
3511	not be responsible for compliance as the managing entity of that
3512	component site unless the managing entity of the multisite
3513	timeshare plan is also the managing entity of that component
3514	site. Unless the timeshare instrument provides otherwise, the
3515	operator of the reservation system is the managing entity of a
3516	multisite timeshare plan.
3517	(5)(a)1. The reservation system is a facility of any
3518	nonspecific timeshare license multisite timeshare plan as
3519	defined in s. 721.552(4). The reservation system is not a
3520	facility of any specific timeshare licensemultisite timeshare
3521	plan as defined in s. 721.552(4), nor is it a facility of any
3522	multisite timeshare plan in which timeshare estates are offered
3523	pursuant to s. 721.57.
3524	2. The reservation system of any multisite timeshare plan
3525	shall include any computer software and hardware employed for
3526	the purpose of enabling or facilitating the operation of the
3527	reservation system. Nothing contained in this part shall
3528	preclude a manager or management firm that is serving as
3529	managing entity of a multisite timeshare plan from providing in
3530	its contract with the purchasers or owners' association of the
3531	multisite timeshare plan or in the timeshare instrument that the
3532	manager or management firm owns the reservation system and that
3533	the managing entity shall continue to own the reservation system
3534	in the event the purchasers discharge the managing entity
3535	pursuant to s. 721.14.
3536	(b) In the event of a termination of a managing entity of
3537	a nonspecific license multisite timeshare plan as defined in s.
3538	721.552(4), which managing entity owns the reservation system,
3539	irrespective of whether the termination is voluntary or
3540	involuntary and irrespective of the cause of such termination,
3541	in addition to any other remedies available to purchasers in
3542	this part, the terminated managing entity shall, prior to such
3543	termination, establish a trust meeting the criteria set forth in
3544	this paragraph. It is the intent of the Legislature that this
3545	trust arrangement provide for an adequate period of continued
3546	operation of the reservation system of the multisite timeshare
3547	plan, during which period the new managing entity shall make
3548	provision for the acquisition of a substitute reservation
3549	system.
3550	1. The trust shall be established with an independent
3551	trustee. Both the terminated managing entity and the new
3552	managing entity shall attempt to agree on an acceptable trustee.
3553	In the event they cannot agree on an acceptable trustee, they
3554	shall each designate a nominee, and the two nominees shall
3555	select the trustee.
3556	2. The terminated managing entity shall take all steps
3557	necessary to enable the trustee or the trustee's designee to
3558	operate the reservation system in the same manner as provided in
3559	the timeshare instrument and the public offering statement. The
3560	trustee may, but shall not be required to, contract with the
3561	terminated managing entity for the continued operation of the
3562	reservation system. In the event the trustee elects to contract
3563	with the terminated managing entity, that managing entity shall
3564	be required to operate the reservation system and shall be
3565	entitled to payment for that service. The payment shall in no
3566	event exceed the amount previously paid to the terminated
3567	managing entity for operation of the reservation system.
3568	3. The trust shall remain in effect for a period of no
3569	longer than 1 year following the date of termination of the
3570	managing entity.
3571	4. Nothing contained in this subsection shall abrogate or
3572	otherwise interfere with any proprietary rights in the
3573	reservation system that have been reserved by the discharged
3574	managing entity, in its management contract or otherwise, so
3575	long as such proprietary rights are not asserted in a manner
3576	that would prevent the continued operation of the reservation
3577	system as contemplated in this subsection.
3578	(c) In the event of a termination of a managing entity of
3579	a timeshare estate or specific license multisite timeshare plan
3580	as defined in s. 721.552(4), which managing entity owns the
3581	reservation system, irrespective of whether the termination is
3582	voluntary or involuntary and irrespective of the cause of such
3583	termination, in addition to any other remedies available to
3584	purchasers in this part, the terminated managing entity shall,
3585	prior to such termination, promptly transfer to each component
3586	site managing entity all relevant data contained in the
3587	reservation system with respect to that component site,
3588	including, but not limited to:
3589	1. The names, addresses, and reservation status of
3590	component site accommodations.
3591	2. The names and addresses of all purchasers of timeshare
3592	interests at that component site.
3593	3. All outstanding confirmed reservations and reservation
3594	requests for that component site.
3595	4. Such other component site records and information as
3596	are necessary, in the reasonable discretion of the component
3597	site managing entity, to permit the uninterrupted operation and
3598	administration of the component site, provided that a given
3599	component site managing entity shall not be entitled to any
3600	information regarding other component sites or regarding the
3601	terminated multisite timeshare plan managing entity.
3602
3603	All reasonable costs incurred by the terminated managing entity
3604	in effecting the transfer of information required by this
3605	paragraph shall be reimbursed to the terminated managing entity
3606	on a pro rata basis by each component site, and the amount of
3607	such reimbursement shall constitute a common expense of each
3608	component site.
3609	Section 30. Subsection (2) of section 721.57, Florida
3610	Statutes, is amended to read:
3611	721.57 Offering of timeshare estates in multisite
3612	timeshare plans; required provisions in the timeshare
3613	instrument.--
3614	(2) The timeshare instrument of a multisite timeshare plan
3615	in which timeshare estates are offered, other than a trust
3616	meeting the requirements of s. 721.08,must contain or provide
3617	for all of the following matters:
3618	(a) The purchaser will receive a timeshare estate as
3619	defined in s. 721.05 in one of the component sites of the
3620	multisite timeshare plan. The use rights in the other component
3621	sites of the multisite timeshare plan shall be made available to
3622	the purchaser through the reservation system pursuant to the
3623	timeshare instrument.
3624	(b) In the event that the reservation system is terminated
3625	or otherwise becomes unavailable for any reason prior to the
3626	expiration of the term of the multisite timeshare plan:
3627	1. The purchaser will be able to continue to use the
3628	accommodations and facilities of the component site in which she
3629	or he has been conveyed a timeshare estate in the manner
3630	described in the timeshare instrument for the remaining term of
3631	the timeshare estate; and
3632	2. Any use rights in that component site which had
3633	previously been made available through the reservation system to
3634	purchasers of the multisite timeshare plan who were not offered
3635	a timeshare estate at that component site will terminate when
3636	the reservation system is terminated or otherwise becomes
3637	unavailable for any reason.
3638	Section 31. Subsection (6) of section 721.84, Florida
3639	Statutes, is amended to read:
3640	721.84 Appointment of a registered agent; duties.--
3641	(6) Unless otherwise provided in this section, a
3642	registered agent in receipt of any notice or other document
3643	addressed from the lienholder to the obligor in care of the
3644	registered agent at the registered office must mail, by first
3645	class mail if the obligor's address is within the United States,
3646	and by international air mail if the obligor's address is
3647	outside the United States, with postage fees prepaid, such
3648	notice or documents to the obligor at the obligor's last
3649	designated address within 5 days afterofreceipt.
3650	Section 32. Section 721.96, Florida Statutes, is amended
3651	to read:
3652	721.96 Purpose.--The purpose of this part is to provide
3653	for the appointment of commissioners of deeds to take
3654	acknowledgments, proofs of execution, and oaths outside the
3655	United States in connection with the execution of any deed,
3656	mortgage, deed of trust, contract, power of attorney, or any
3657	other agreement, instrument or writing concerning, relating to,
3658	or to be used or recorded in connection with a timeshare estate,
3659	personal property timeshare interest,timeshare license, any
3660	property subject to a timeshare plan, or the operation of a
3661	timeshare plan located within this state.
3662	Section 33. Subsection (1) of section 721.97, Florida
3663	Statutes, is amended to read:
3664	721.97 Timeshare commissioner of deeds.--
3665	(1) The Governor may appoint commissioners of deeds to
3666	take acknowledgments, proofs of execution, or oaths in any
3667	foreign country. The term of office is 4 years. Commissioners of
3668	deeds shall have authority to take acknowledgments, proofs of
3669	execution, and oaths in connection with the execution of any
3670	deed, mortgage, deed of trust, contract, power of attorney, or
3671	any other writing to be used or recorded in connection with a
3672	timeshare estate, personal property timeshare interest,
3673	timeshare license, any property subject to a timeshare plan, or
3674	the operation of a timeshare plan located within this state;
3675	provided such instrument or writing is executed outside the
3676	United States. Such acknowledgments, proofs of execution, and
3677	oaths must be taken or made in the manner directed by the laws
3678	of this state, including but not limited to s. 117.05(4),
3679	(5)(a), and (6), Florida Statutes 1997, and certified by a
3680	commissioner of deeds. The certification must be endorsed on or
3681	annexed to the instrument or writing aforesaid and has the same
3682	effect as if made or taken by a notary public licensed in this
3683	state.
3684	Section 34. Paragraph (b) of subsection (8) of section
3685	475.011, Florida Statutes, is amended to read:
3686	475.011 Exemptions.--This part does not apply to:
3687	(8)
3688	(b) An exchange company, as that term is defined by s.
3689	721.05(15)(14), but only to the extent that the exchange company
3690	is engaged in exchange program activities as described in and is
3691	in compliance with s. 721.18.
3692	Section 35. Subsection (23) of section 718.103, Florida
3693	Statutes, is amended to read:
3694	718.103 Definitions.--As used in this chapter, the term:
3695	(23) "Residential condominium" means a condominium
3696	consisting of two or more units, any of which are intended for
3697	use as a private temporary or permanent residence, except that a
3698	condominium is not a residential condominium if the use for
3699	which the units are intended is primarily commercial or
3700	industrial and not more than three units are intended to be used
3701	for private residence, and are intended to be used as housing
3702	for maintenance, managerial, janitorial, or other operational
3703	staff of the condominium. With respect to a condominium that is
3704	not a timeshare condominium, a residential unit includes a unit
3705	intended as a private temporary or permanent residence as well
3706	as a unit not intended for commercial or industrial use. With
3707	respect to a timeshare condominium, the timeshare instrument as
3708	defined in s. 721.05(35)(33)shall govern the intended use of
3709	each unit in the condominium. If a condominium is a residential
3710	condominium but contains units intended to be used for
3711	commercial or industrial purposes, then, with respect to those
3712	units which are not intended for or used as private residences,
3713	the condominium is not a residential condominium. A condominium
3714	which contains both commercial and residential units is a mixed-
3715	use condominium and is subject to the requirements of s.
3716	718.404.
3717	Section 36. This act shall take effect upon becoming a
3718	law.