HB 1243 2003
1	CHAMBER ACTION
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6	The Committee on Business Regulation 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; changing the penalty for late
58	payment of a fee; amending s. 721.52, F.S.; redefining the
59	term "multisite timeshare plan" and defining the terms
60	"nonspecific multisite timeshare plan" and "specific
61	multisite timeshare plan"; amending s. 721.53, F.S.;
62	revising language with respect to subordination
63	instruments; amending s. 721.54, F.S.; correcting a cross
64	reference; amending s. 721.55, F.S.; providing reference
65	to filed rather than registered public offering
66	statements; providing reference to multisite timeshare
67	plans; amending s. 721.551, F.S.; providing for reference
68	to filed rather than registered public offering
69	statements; amending s. 721.552, F.S.; providing reference
70	to multistate timeshare plans; amending s. 721.56, F.S.;
71	providing reference to personal property timeshare plans;
72	amending s. 721.57, F.S.; revising language with respect
73	to timeshare estates in multisite timeshare plans;
74	amending s. 721.84, F.S.; revising language with respect
75	to appointment of a registered agent; amending ss. 721.96
76	and 721.97, F.S.; including reference to personal property
77	timeshare interests; amending ss. 475.011 and 718.103,
78	F.S.; correcting cross references; providing for
79	applicability; providing an effective date.
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81	Be It Enacted by the Legislature of the State of Florida:
82
83	Section 1. Subsections (1) and (5) of section 721.02,
84	Florida Statutes, are amended to read:
85	721.02 Purposes.--The purposes of this chapter are to:
86	(1) Give statutory recognition to real property timeshare
87	planstimesharing and personal property timeshare plans
88	timesharing in thisthestate.
89	(5) Recognize that the tourism industry in this state is a
90	vital part of the state's economy; that the sale, promotion, and
91	use of timeshare plans is an emerging, dynamic segment of the
92	tourism industry; that this segment of the tourism industry
93	continues to grow, both in volume of sales and in complexity and
94	variety of product structure; and that a uniform and consistent
95	method of regulation is necessary in order to safeguard
96	Florida's tourism industry and the state's economic well-being.
97	In order to protect the quality of Florida timeshare plans and
98	the consumers who purchase them, it is the intent of the
99	Legislature that this chapter be interpreted broadly in order to
100	encompass all forms of timeshare plans with a duration of at
101	least 3 years that are created with respect to accommodations
102	and facilities that are located in the state or that are offered
103	for sale in the state as provided herein, including, but not
104	limited to, condominiums, cooperatives, undivided interest
105	campgrounds, cruise ships, vessels, houseboats, and recreational
106	vehicles and other motor vehicles, and includingvacation clubs,
107	multisite vacation plans, and multiyear vacation and lodging
108	certificates.
109	Section 2. Paragraph (d) is added to subsection (1) of
110	section 721.03, Florida Statutes, and subsection (8) of said
111	section, is amended to read:
112	721.03 Scope of chapter.--
113	(1) This chapter applies to all timeshare plans consisting
114	of more than seven timeshare periods over a period of at least 3
115	years in which the accommodations and facilities, if any, are
116	located within this state or offered within this state; provided
117	that:
118	(d) For purposes of determining the term of the plan, the
119	period of any automatic renewals shall be included, except as
120	provided in s. 721.52(4)(b).
121	(8) With respect to any personal propertyaccommodation or
122	facility of a timeshare plan:which is situated upon
123	(a) This chapter applies only to personal property
124	timeshare plans that are offered in this state.,
125	(b)The division shall have the authority to adopt rules
126	interpreting and implementing the provisions of this chapter as
127	they apply to any personal property timeshare plan or anysuch
128	accommodation or facility that is part of a personal property
129	timeshare plan offered in this state, or as the provisions of
130	this chaptertheyapply to any other laws of this state, of the
131	several states, or of the United States, or of any other
132	jurisdiction, with respect to any personal property timeshare
133	plan or anysuch accommodation or facility that is part of a
134	personal property timeshare plan offered in this state.
135	(c) Any developer and any managing entity of a personal
136	property timeshare plan must submit to personal jurisdiction in
137	this state in a form satisfactory to the division at the time of
138	filing a public offering statement.
139	Section 3. Section 721.05, Florida Statutes, is amended to
140	read:
141	721.05 Definitions.--As used in this chapter, the term:
142	(1) "Accommodation" means any apartment,condominium or
143	cooperative unit, cabin, lodge, hotel or motel room, campground,
144	cruise ship cabin, houseboat or other vessel, recreational or
145	other motor vehicle, or anyor otherprivate or commercial
146	structure which is situated onreal or personal property and
147	designed for overnight occupancy or useby one or more
148	individuals. The term does not include an incidental benefit as
149	defined in this section.
150	(2) "Agreement for deed" means any written contract
151	utilized in the sale of timeshare estates which provides that
152	legal title will not be conveyed to the purchaser until the
153	contract price has been paid in full and the terms of payment of
154	which extend for a period in excess of 180 days after either the
155	date of execution of the contract or completion of construction,
156	whichever occurs later.
157	(3) “Agreement for transfer” means any written contract
158	utilized in the sale of personal property timeshare interests
159	which provides that legal title will not be transferred to the
160	purchaser until the contract price has been paid in full and the
161	terms of payment of which extend for a period in excess of 180
162	days after either the date of execution of the contract or
163	completion of construction, whichever occurs later.
164	(4)(3)"Assessment" means the share of funds required for
165	the payment of common expenses which is assessed from time to
166	time against each purchaser by the managing entity.
167	(5)(4)"Closing" means:
168	(a) For any plan selling timeshare estates, conveyance of
169	the legal or beneficial title to a timeshare estate as evidenced
170	by the delivery of a deed for conveyance of legal title, or
171	other instrument for conveyance of beneficial title, to the
172	purchaser or to the clerk of the court for recording or
173	conveyance of the equitable title to a timeshare estate as
174	evidenced by the irretrievable delivery of an agreement for deed
175	to the clerk of the court for recording.
176	(b) For any plan selling timeshare licenses or personal
177	property timeshare interests, the final execution and delivery
178	by all parties of the last document necessary for vesting in the
179	purchaser the full rights available under the plan.
180	(6)(5)"Common expenses" means:
181	(a) Those expenses, fees, or taxesproperly incurred for
182	the maintenance, operation, and repair of the accommodations or
183	facilities, or both, constituting the timeshare plan.
184	(b) Any other expenses, fees, or taxesdesignated as
185	common expenses in a timeshare instrument.
186	(c) Any past due and uncollected ad valorem taxes assessed
187	against a timeshare development pursuant to s. 192.037.
188	(7)(6)"Completion of construction" means:
189	(a)1. That a certificate of occupancy has been issued for
190	the entire building in which the timeshare unit being sold is
191	located, or for the improvement, or that the equivalent
192	authorization has been issued, by the governmental body having
193	jurisdiction; or
194	2. In a jurisdiction in which no certificate of occupancy
195	or equivalent authorization is issued, that the construction,
196	finishing, and equipping of the building or improvements
197	according to the plans and specifications have been
198	substantially completed; or
199	3. With respect to personal property timeshare plans, that
200	all accommodations have been manufactured or built and acquired
201	or leased by the developer, owners’ association, managing
202	entity, trustee, or other person for the use of purchasers as
203	set forth in the timeshare instrument;and
204	(b) That all accommodations and facilities of the
205	timeshare plan are available for use in a manner identical in
206	all material respects to the manner portrayed by the promotional
207	material, advertising, and filedregisteredpublic offering
208	statements.
209	(8)(7)"Conspicuous type" means:
210	(a) Type in upper and lower case letters two point sizes
211	larger than the largest nonconspicuous type, exclusive of
212	headings, on the page on which it appears but in at least 10-
213	point type; or
214	(b) Where the use of 10-point type would be impractical or
215	impossible with respect to a particular piece of written
216	advertising material, a different style of type or print may be
217	used, so long as the print remains conspicuous under the
218	circumstances.
219
220	Where conspicuous type is required, it must be separated on all
221	sides from other type and print. Conspicuous type may be
222	utilized in contracts for purchase or public offering statements
223	only where required by law or as authorized by the division.
224	(9)(8)"Contract" means any agreement conferring the
225	rights and obligations of a timeshare plan on the purchaser.
226	(10)(9)"Developer" includes:
227	(a) A "creating developer," which means any person who
228	creates the timeshare plan;
229	(b) A "successor developer," which means any person who
230	succeeds to the interest of the persons in this subsection by
231	sale, lease, assignment, mortgage, or other transfer, but the
232	term includes only those persons who offer timeshare interests
233	in the ordinary course of business; and
234	(c) A "concurrent developer," which means any person
235	acting concurrently with the persons in this subsection with the
236	purpose of offering timeshare interests in the ordinary course
237	of business.
238	(d) The term "developer" does not include:
239	1. An owner of a timeshare interest who has acquired the
240	timeshare interest for his or her own use and occupancy and who
241	later offers it for resale; provided that a rebuttable
242	presumption shall exist that an owner who has acquired more than
243	seven timeshare interests did not acquire them for his or her
244	own use and occupancy;
245	2. A managing entity, not otherwise a developer, that
246	offers, or engages a third party to offer on its behalf,
247	timeshare interests in a timeshare plan which it manages,
248	provided that such offer complies with the provisions of s.
249	721.065;
250	3. A person who owns or is conveyed, assigned, or
251	transferred more than seven timeshare interests and who
252	subsequently conveys, assigns, or transfers all acquired
253	timeshare interests to a single purchaser in a single
254	transaction, which transaction may occur in stages; or
255	4. A person who has acquired or has the right to acquire
256	more than seven timeshare interests from a developer or other
257	interestholder in connection with a loan, securitization,
258	conduit, or similar financing arrangement transaction and who
259	subsequently arranges for all or a portion of the timeshare
260	interests to be offered by one or more developers in the
261	ordinary course of business on their own behalves or on behalf
262	of such person.
263	(e) A successor or concurrent developer shall be exempt
264	from any liability inuring to a predecessor or concurrent
265	developer of the same timeshare plan, except as provided in s.
266	721.15(7), provided that this exemption shall not apply to any
267	of the successor or concurrent developer's responsibilities,
268	duties, or liabilities with respect to the timeshare plan that
269	accrue after the date the successor or concurrent developer
270	became a successor or concurrent developer, and provided that
271	such transfer does not constitute a fraudulent transfer. In
272	addition to other provisions of law, a transfer by a predecessor
273	developer to a successor or concurrent developer shall be deemed
274	fraudulent if the predecessor developer made the transfer:
275	1. With actual intent to hinder, delay, or defraud any
276	purchaser or the division; or
277	2. To a person that would constitute an insider under s.
278	726.102(7).
279	The provisions of this paragraph shall not be construed to
280	relieve any successor or concurrent developer from the
281	obligation to comply with the provisions of any applicable
282	timeshare instrument.
283	(11)(10)"Division" means the Division of Florida Land
284	Sales, Condominiums, and Mobile Homes of the Department of
285	Business and Professional Regulation.
286	(12)(11)"Enrolled" means paid membership in an exchange
287	program or membership in an exchange program evidenced by
288	written acceptance or confirmation of membership.
289	(13)(12)"Escrow account" means an account established
290	solely for the purposes set forth in this chapter with a
291	financial institution located within this state.
292	(14)(13)"Escrow agent" includes only:
293	(a) A savings and loan association, bank, trust company,
294	or other financial institution, any of which must be located in
295	this state and any of which must have a net worth in excess of
296	$5 million;
297	(b) An attorney who is a member of The Florida Bar or his
298	or her law firm;
299	(c) A real estate broker who is licensed pursuant to
300	chapter 475 or his or her brokerage firm; or
301	(d) A title insurance agent that is licensed pursuant to
302	s. 626.8417, a title insurance agency that is licensed pursuant
303	to s. 626.8418, or a title insurer authorized to transact
304	business in this state pursuant to s. 624.401.
305	(15)(14)"Exchange company" means any person owning or
306	operating, or owning and operating, an exchange program.
307	(16)(15)"Exchange program" means any method, arrangement,
308	or procedure for the voluntary exchange of the right to use and
309	occupy accommodations and facilities among purchasers. The term
310	does not include the assignment of the right to use and occupy
311	accommodations and facilities to purchasers pursuant to a
312	particular multisite timeshare plan's reservation system. Any
313	method, arrangement, or procedure that otherwise meets this
314	definition, wherein the purchaser's total contractual financial
315	obligation exceeds $3,000 per any individual, recurring
316	timeshare period, shall be regulated as a multisite timeshare
317	plan in accordance with part II.
318	(17)(16)"Facility" means any amenity, including any
319	structure, furnishing, fixture, equipment, service, improvement,
320	or real or personal property, improved or unimproved, other than
321	antheaccommodation of the timeshare plan, which is made
322	available to the purchasers of a timeshare plan. The term does
323	not include an incidental benefit as defined in this section.
324	(18) "Filed public offering statement" means a public
325	offering statement that has been filed with the division
326	pursuant to s. 721.07(5) or s. 721.55.
327	(19)(17)"Incidental benefit" means an accommodation,
328	product, service, discount, or other benefit which is offered to
329	a prospective purchaser of a timeshare plan or to a purchaser of
330	a timeshare plan prior to the expiration of his or her initial
331	10-day voidability period pursuant to s. 721.10; which is not an
332	exchange program as defined in subsection (16)(15); and which
333	complies with the provisions of s. 721.075. The term shall not
334	include an offer of the use of the accommodations and facilities
335	of the timeshare plan on a free or discounted one-time basis.
336	(20)(18)"Independent," for purposes of determining
337	eligibility of escrow agents and trustees pursuant to s.
338	721.03(7), means that:
339	(a) The escrow agent or trustee is not a relative, as
340	described in s. 112.3135(1)(d), or an employee of the developer,
341	seller, or managing entity, or of any officer, director,
342	affiliate, or subsidiary thereof.
343	(b) There is no financial relationship, other than the
344	payment of fiduciary fees or as otherwise provided in this
345	subsection, between the escrow agent or trustee and the
346	developer, seller, or managing entity, or any officer, director,
347	affiliate, or subsidiary thereof.
348	(c) Compensation paid by the developer to an escrow agent
349	or trustee for services rendered shall not be paid from funds in
350	the escrow or trust account unless and until the developer is
351	otherwise entitled to receive the disbursement of such funds
352	from the escrow or trust account pursuant to this chapter.
353	(d) A person shall not be disqualified to serve as an
354	escrow agent or a trustee solely because of the following:
355	1. A nonemployee, attorney-client relationship exists
356	between the developer and the escrow agent or trustee;
357	2. The escrow agent or trustee provides brokerage services
358	as defined by chapter 475 for the developer;
359	3. The escrow agent or trustee provides the developer with
360	routine banking services which do not include construction or
361	receivables financing or any other lending activities; or
362	4. The escrow agent or trustee performs closings for the
363	developer or seller or issues owner's or lender's title
364	insurance commitments or policies in connection with such
365	closings.
366	(21)(19)"Interestholder" means a developer, an owner of
367	the underlying fee or owner of the underlying personal property,
368	a mortgagee, judgment creditor, or other lienor, or any other
369	person having an interest in or lien or encumbrance against the
370	accommodations or facilities of the timeshare plan.
371	(22)(20)"Managing entity" means the person who operates
372	or maintains the timeshare plan pursuant to s. 721.13(1).
373	(23)(21)"Memorandum of agreement" means a written
374	document, in arecordable form sufficient to permit the document
375	to be recorded or otherwise filed in the appropriate public
376	records and to provide constructive notice of its contents under
377	applicable law, which includes the names of the seller and the
378	purchasers, a legal description of the timeshare property, or
379	other sufficient description for a personal property timeshare
380	plan,and all timeshare interests to be included in such
381	document, and a description of the type of timeshare interest
382	licensesold by the seller.
383	(24)(22)"Offer to sell," "offer for sale," "offered for
384	sale," or "offer" means the solicitation, advertisement, or
385	inducement, or any other method or attempt, to encourage any
386	person to acquire the opportunity to participate in a timeshare
387	plan.
388	(25)(23)"One-to-one purchaser to accommodation ratio"
389	means the ratio of the number of purchasers eligible to use the
390	accommodations of a timeshare plan on a given day to the number
391	of accommodations available for use within the plan on that day,
392	such that the total number of purchasers eligible to use the
393	accommodations of the timeshare plan during a given calendar
394	year never exceeds the total number of accommodations available
395	for use in the timeshare plan during that year. For purposes of
396	calculation under this subsection, each purchaser must be
397	counted at least once, and no individual timeshare unit may be
398	counted more than 365 times per calendar year (or more than 366
399	times per leap year). A purchaser who is delinquent in the
400	payment of timeshare plan assessments shall continue to be
401	considered eligible to use the accommodations of the timeshare
402	plan for purposes of this subsection notwithstanding any
403	application of s. 721.13(6).
404	(26)(24) "Owner of the underlying fee" or "owner of the
405	underlying personal property"means any person having an
406	interest in the real property or personal property comprising or
407	underlying the accommodations or facilities of athetimeshare
408	plan at or subsequent to the time of creation of the timeshare
409	plan.
410	(27)(25) "Owners' association" means antheassociation
411	made up of all owners of timeshare interests in a timeshare
412	plan, including developers and purchasers of suchatimeshare
413	plan who have purchased timeshare estates.
414	(28) "Personal property timeshare interest" means a right
415	to occupy an accommodation located on or in or comprised of
416	personal property that is not permanently affixed to real
417	property, whether or not coupled with a beneficial or ownership
418	interest in the accommodations or personal property.
419	(29)(26)"Public offering statement" means the written
420	materials describing a single-site timeshare plan or a multisite
421	timeshare plan, including a text and any exhibits attached
422	thereto as required by ss. 721.07, 721.55, and 721.551. The term
423	"public offering statement" shall refer to both a filed
424	registeredpublic offering statement and a purchaser public
425	offering statement.
426	(30)(27)"Purchaser" means any person, other than a
427	developer, who by means of a voluntary transfer acquires a legal
428	or equitable interest in a timeshare plan other than as security
429	for an obligation.
430	(31)(28)"Purchaser public offering statement" means that
431	portion of the filedregisteredpublic offering statement which
432	must be delivered to purchasers pursuant to s. 721.07(6) or s.
433	721.551.
434	(29) "Registered public offering statement" means a public
435	offering statement which has been filed with the division
436	pursuant to s. 721.07(5) or s. 721.55.
437	(32)(30)"Regulated short-term product" means a
438	contractual right, offered by the seller, to use accommodations
439	of a timeshare plan or other accommodations, provided that:
440	(a) The agreement to purchase the short-term right to use
441	is executed in this state on the same day that the prospective
442	purchaser receives an offer to acquire an interest in a
443	timeshare plan and does not execute a purchase contract, after
444	attending a sales presentation; and
445	(b) The acquisition of the right to use includes an
446	agreement that all or a portion of the consideration paid by the
447	prospective purchaser for the right to use will be applied to or
448	credited against the price of a future purchase of a timeshare
449	interest, or that the cost of a future purchase of a timeshare
450	interest will be fixed or locked in at a specified price.
451	(33)(31)"Seller" means any developer or any other person,
452	or any agent or employee thereof, who offers timeshare interests
453	in the ordinary course of business. The term "seller" does not
454	include:
455	(a) An owner of a timeshare interest who has acquired the
456	timeshare interest for his or her own use and occupancy and who
457	later offers it for resale; provided that a rebuttable
458	presumption shall exist that an owner who has acquired more than
459	seven timeshare interests did not acquire them for his or her
460	own use and occupancy;
461	(b) A managing entity, not otherwise a seller, that
462	offers, or engages a third party to offer on its behalf,
463	timeshare interests in a timeshare plan which it manages,
464	provided that such offer complies with the provisions of s.
465	721.065;
466	(c) A person who owns or is conveyed, assigned, or
467	transferred more than seven timeshare interests and who
468	subsequently conveys, assigns, or transfers all acquired
469	timeshare interests to a single purchaser in a single
470	transaction, which transaction may occur in stages; or
471	(d) A person who has acquired or has the right to acquire
472	more than seven timeshare interests from a developer or other
473	interestholder in connection with a loan, securitization,
474	conduit, or similar financing arrangement and who subsequently
475	arranges for all or a portion of the timeshare interests to be
476	offered by one or more developers in the ordinary course of
477	business on their own behalves or on behalf of such person.
478	(34)(32)"Timeshare estate" means a right to occupy a
479	timeshare unit, coupled with a freehold estate or an estate for
480	years with a future interest in a timeshare property or a
481	specified portion thereof. The term shall also mean an interest
482	in a condominium unit pursuant to s. 718.103, an interest in a
483	cooperative unit pursuant to s. 719.103, or an interest in a
484	trust that complies in all respects with the provisions of s.
485	721.08(2)(c)4.3., provided that the trust does not contain any
486	personal property timeshare interests. A timeshare estate is a
487	parcel of real property under the laws of this state.
488	(35)(33)"Timeshare instrument" means one or more
489	documents, by whatever name denominated, creating or governing
490	the operation of a timeshare plan.
491	(36)(34) "Timeshare interest" means a timeshare estate, a
492	personal property timeshare interest, or atimeshare license.
493	(37)(35)"Timeshare license" means a right to occupy a
494	timeshare unit, which right is not a personal property timeshare
495	neither coupled with a freehold interest or a timeshare, nor
496	coupled with an estate for years with a future interest, in a
497	timeshare property.
498	(38)(36)"Timeshare period" means the period or periods of
499	time when a purchaser of a timeshare interest is afforded the
500	opportunity to use the accommodations or facilities, or both,of
501	a timeshare plan.
502	(39)(37)"Timeshare plan" means any arrangement, plan,
503	scheme, or similar device, other than an exchange program,
504	whether by membership, agreement, tenancy in common, sale,
505	lease, deed, rental agreement, license, or right-to-use
506	agreement or by any other means, whereby a purchaser, for
507	consideration, receives ownership rights in or a right to use
508	accommodations, and facilities, if any, for a period of time
509	less than a full year during any given year, but not necessarily
510	for consecutive years. The term “timeshare plan” includes:
511	(a) A “personal property timeshare plan,” which means a
512	timeshare plan in which the accommodations are comprised of
513	personal property that is not permanently affixed to real
514	property; and
515	(b) A “real property timeshare plan,” which means a
516	timeshare plan in which the accommodations of the timeshare plan
517	are comprised of or permanently affixed to real property.
518	(40)(38)"Timeshare property" means one or more timeshare
519	units subject to the same timeshare instrument, together with
520	any other property or rights to property appurtenant to those
521	timeshare units. Notwithstanding anything to the contrary
522	contained in chapter 718 or chapter 719, the timeshare
523	instrument for a timeshare condominium or cooperative may
524	designate personal property, contractual rights, affiliation
525	agreements of component sites of vacation clubs, exchange
526	companies, or reservation systems, or any other agreements or
527	personal property, as common elements or limited common elements
528	of the timeshare condominium or cooperative.
529	(41)(39)"Timeshare unit" means an accommodation of a
530	timeshare plan which is divided into timeshare periods. Any
531	timeshare unit in which a door or doors connecting two or more
532	separate rooms are capable of being locked to create two or more
533	private dwellings shall only constitute one timeshare unit for
534	purposes of this chapter, unless the timeshare instrument
535	provides that timeshare interests may be separately conveyed in
536	such locked-off portions.
537	(40) "Vacation ownership plan" means any timeshare plan
538	consisting exclusively of timeshare estates.
539	(41) "Vacation plan" or "vacation membership plan" means
540	any timeshare plan consisting exclusively of timeshare licenses
541	or consisting of a combination of timeshare licenses and
542	timeshare estates.
543	Section 4. Section 721.06, Florida Statutes, is amended to
544	read:
545	721.06 Contracts for purchase of timeshare interests.--
546	(1) Each seller shall utilize and furnish each purchaser a
547	fully completed and executed copy of a contract pertaining to
548	the sale, which contract shall include the following
549	information:
550	(a) The actual date the contract is executed by each
551	party.
552	(b) The names and addresses of the developer and the
553	timeshare plan.
554	(c) The initial purchase price and any additional charges
555	to which the purchaser may be subject in connection with the
556	purchase of the timeshare interest, such as financing, or which
557	will be collected from the purchaser on or before closing, such
558	as the current year's annual assessment for common expenses.
559	(d)1. For real property timeshare plans, an estimate of
560	any anticipated annual assessment stated on anAnyannually
561	recurring basis for any use charges, fees, charge and the next
562	year's estimated annual assessment for common expenses, orand
563	for ad valorem taxes or, if an estimate for next year's
564	assessmentis unavailable, the current year's actual annual
565	assessment for any use charges, fees, common expenses, orand
566	forad valorem taxes.
567	2. For personal property timeshare plans, an estimate of
568	any anticipated annual assessment stated on an annually
569	recurring basis for any use charges, fees, common expenses, or
570	taxes or, if an estimate is unavailable, the current year's
571	actual annual assessment for any use charges, fees, common
572	expenses, or taxes.
573	(e) The estimated date of completion of construction of
574	each accommodation or facility promised to be completed which is
575	not completed at the time the contract is executed and the
576	estimated date of closing.
577	(f) A brief description of the nature and duration of the
578	timeshare interest being sold, including whether any interest in
579	real property or personal propertyis being conveyed and the
580	specific number of years constituting the term of the timeshare
581	plan.
582	(g) Immediately prior to the space reserved in the
583	contract for the signature of the purchaser, in conspicuous
584	type, substantially the following statements:
585	1. If the purchaser will receive a personal property
586	timeshare interest: This personal property timeshare plan is
587	governed only by limited sections of the timeshare management
588	provisions of Florida law.
589	2. If the accommodations or facilities are located on or
590	in a documented vessel or foreign vessel as provided in s.
591	721.08(2)(c)3.e., the disclosure required by s.
592	721.08(2)(c)3.e.(IV).
593	3.You may cancel this contract without any penalty or
594	obligation within 10 calendar days after the date you sign this
595	contract or the date on which you receive the last of all
596	documents required to be given to you pursuant to section
597	721.07(6), Florida Statutes, whichever is later. If you decide
598	to cancel this contract, you must notify the seller in writing
599	of your intent to cancel. Your notice of cancellation shall be
600	effective upon the date sent and shall be sent to ... (Name of
601	Seller) ... at ... (Address of Seller) .... Any attempt to
602	obtain a waiver of your cancellation right is void and of no
603	effect. While you may execute all closing documents in advance,
604	the closing, as evidenced by delivery of the deed or other
605	document, before expiration of your 10-day cancellation period,
606	is prohibited.
607
608	(h) If a timeshare estate is being conveyed, the following
609	statement in conspicuous type:
610
611	For the purpose of ad valorem assessment, taxation and
612	special assessments, the managing entity will be considered the
613	taxpayer as your agent pursuant to section 192.037, Florida
614	Statutes.
615
616	(i) A statement that, in the event the purchaser cancels
617	the contract during a 10-day cancellation period, the developer
618	will refund to the purchaser the total amount of all payments
619	made by the purchaser under the contract, reduced by the
620	proportion of any contract benefits the purchaser has actually
621	received under the contract prior to the effective date of the
622	cancellation. The statement shall further provide that the
623	refund will be made within 20 days after receipt of notice of
624	cancellation or within 5 days after receipt of funds from the
625	purchaser's cleared check, whichever is later. A seller and a
626	purchaser shall agree in writing on a specific value for each
627	contract benefit received by the purchaser for purposes of this
628	paragraph. The term "contract benefit" shall not include
629	purchaser public offering statements or other documentation or
630	materials that must be furnished to a purchaser pursuant to
631	statute or rule.
632	(j) If the timeshare interest is being sold pursuant to an
633	agreement for deed or an agreement for transfer, a statement
634	that the signing of the agreement for deed or agreement for
635	transfer does not entitle the purchaser to receive the
636	conveyance or transfer of his or her timeshare estate or
637	personal property timeshare interesta deeduntil all payments
638	under the agreement have been made.
639	(k) Unless the developer is,at the time of offering the
640	plan, the owner in fee simple absoluteof the accommodations and
641	facilities of the timeshare plan, free and clear of all liens,
642	and encumbrances, and claims of other interestholders,a
643	statement that the developer is not the sole owner of the
644	underlying fee or owner of the underlying personal property or
645	that thesuch accommodations or facilities are subject to
646	withoutliens or encumbrances, which statement shall include:
647	1. The names and addresses of all other interestholders
648	persons or entities having an ownership interest or other
649	interest in the accommodations or facilities; and
650	2. The actual interest of the developer in the
651	accommodations or facilities. As an alternative to including the
652	statement in the purchase contract, a seller may include a
653	reference in the purchase contract to the location in the
654	purchaser public offering statement text of such information.
655	(l) If the purchaser will receive an interest in a
656	multisite timeshare plan pursuant to part II, a statement shall
657	be provided in conspicuous type in substantially the following
658	form:
659
660	The developer is required to provide the managing entity of
661	the multisite timeshare plan with a copy of the approved public
662	offering statement text and exhibits filed with the division and
663	any approved amendments thereto, and any other component site
664	documents as described in section 721.07 or section 721.55,
665	Florida Statutes, that are not required to be filed with the
666	division, to be maintained by the managing entity for inspection
667	as part of the books and records of the plan.
668
669	(m) The following statement in conspicuous type:
670
671	Any resale of this timeshare interest must be accompanied
672	by certain disclosures in accordance with section 721.065,
673	Florida Statutes.
674
675	(n) A description of any rights reserved by the developer
676	to alter or modify the offering prior to closing.
677	(2)(a)An agreement for deed shall be recorded by the
678	developer within 30 days after the day it is executed by the
679	purchaser. The developer shall pay all recording costs
680	associated therewith. A form copy of such instrument must be
681	filed with the division for review pursuant to s. 721.07.
682	(b) An agreement for transfer shall be filed with the
683	Secretary of State or other appropriate official responsible for
684	maintaining such records in the appropriate jurisdiction within
685	30 days after the day it is executed by the purchaser. The
686	developer shall pay all filing costs associated therewith. A
687	form copy of such instrument must be filed with the division for
688	review pursuant to s. 721.07.
689	(3) The escrow agent shall provide the developer with a
690	receipt for all purchaser funds or other property received by
691	the escrow agent from a seller.
692	Section 5. Paragraph (b) of subsection (2) of section
693	721.065, Florida Statutes, is amended to read:
694	721.065 Resale purchase agreements.--
695	(2) Any resale purchase agreement utilized by a person
696	described in subsection (1) must contain all of the following:
697	(b) One ofthe following statements in conspicuous type
698	located immediately prior to the disclosure required by
699	paragraph (c):
700	1. If the resale purchase agreement pertains to a real
701	property timeshare plan:
702
703	The current year's assessment for common expenses allocable to
704	the timeshare interest you are purchasing is $_____. This
705	assessment, which may be increased from time to time by the
706	managing entity of the timeshare plan, is payable in full each
707	year on or before __________. This assessment (includes/does not
708	include) yearly ad valorem real estate taxes, which (are/are
709	not) billed and collected separately. (If ad valorem real
710	property taxes are not included in the current year's assessment
711	for common expenses, the following statement must be included:
712	The most recent annual assessment for ad valorem real estate
713	taxes for the timeshare interest you are purchasing is $_____.)
714	(If there are any delinquent assessments for common expenses or
715	ad valorem taxes outstanding with respect to the timeshare
716	interest in question, the following statement must be included:
717	A delinquency in the amount of $_____ for unpaid common expenses
718	or ad valorem taxes currently exists with respect to the
719	timeshare interest you are purchasing, together with a per diem
720	charge of $_____ for interest and late charges.) For the purpose
721	of ad valorem assessment, taxation, and special assessments, the
722	managing entity will be considered the taxpayer as your agent
723	pursuant to section 192.037, Florida Statutes. Each owner is
724	personally liable for the payment of her or his assessments for
725	common expenses, and failure to timely pay these assessments may
726	result in restriction or loss of your use and/or ownership
727	rights.
728
729	There are many important documents relating to the timeshare
730	plan which you should review prior to purchasing a timeshare
731	interest, including the declaration of condominium or covenants
732	and restrictions; the owners'association articles and bylaws;
733	the current year's operating and reserve budgets; and any rules
734	and regulations affecting the use of timeshare plan
735	accommodations and facilities.
736
737	2. If the resale purchase agreement pertains to a personal
738	property timeshare plan:
739
740	The current year's assessment for any common expenses, use
741	charges, fees, or taxes allocable to the timeshare interest you
742	are purchasing is $_____. This assessment, which may be
743	increased from time to time by the managing entity of the
744	timeshare plan, is payable in full each year on or before
745	__________. (If there are any delinquent assessments for common
746	expenses, use charges, fees, or taxes outstanding with respect
747	to the timeshare interest in question, the following statement
748	must be included: A delinquency in the amount of $_____ for
749	unpaid common expenses, use charges, fees, or taxes currently
750	exists with respect to the timeshare interest you are
751	purchasing, together with a per diem charge of $_____ for
752	interest and late charges.) Each owner is personally liable for
753	the payment of her or his assessments for common expenses, and
754	failure to timely pay these assessments may result in
755	restriction or loss of your use and/or ownership rights.
756
757	There are many important documents relating to the timeshare
758	plan which you should review prior to purchasing a timeshare
759	interest, including any owners’ association articles and bylaws;
760	the current year's operating and reserve budgets; and any rules
761	and regulations affecting the use of timeshare plan
762	accommodations and facilities.
763	Section 6. Section 721.07, Florida Statutes, is amended to
764	read:
765	721.07 Public offering statement.--Prior to offering any
766	timeshare plan, the developer must submit a filedregistered
767	public offering statement to the division for approval as
768	prescribed by s. 721.03, s. 721.55, or this section. Until the
769	division approves such filing, any contract regarding the sale
770	of that timeshare plan is subject to cancellationvoidableby
771	the purchaser pursuant to s. 721.10.
772	(1) The division shall, upon receiving a filedregistered
773	public offering statement from a developer, mail to the
774	developer an acknowledgment of receipt. The failure of the
775	division to send such acknowledgment will not, however, relieve
776	the developer from the duty of complying with this section.
777	(2)(a) Within 45 days after receipt of a filedregistered
778	public offering statement which is subject only to this part and
779	is submitted in proper form as prescribed by rule, or within 120
780	days after receipt of a filedregisteredpublic offering
781	statement which is subject to part II and is submitted in proper
782	form as prescribed by rule, the division shall determine whether
783	the proposed filedregisteredpublic offering statement is
784	adequate to meet the requirements of this section and shall
785	notify the developer by mail that the division has either
786	approved the statement or found specified deficiencies in the
787	statement. If the division fails to approve the statement or
788	specify deficiencies in the statement within the period
789	specified in this paragraph, the filing will be deemed approved.
790	(b) If the developer fails to respond to any cited
791	deficiencies within 20 days after receipt of the division's
792	deficiency notice, the division may reject the filing.
793	Subsequent to such rejection, a new filing fee pursuant to
794	subsection (4) and a new division initial review period pursuant
795	to paragraph (a) shall apply to any refiling or further review
796	of the rejected filing.
797	(c) Within 20 days after receipt of the developer's timely
798	and complete response to any deficiency notice, the division
799	shall notify the developer by mail that the division has either
800	approved the filing, found additional specified deficiencies in
801	it, or determined that any previously specified deficiency has
802	not been corrected. If the division fails to approve or specify
803	additional deficiencies within 20 days after receipt of the
804	developer's timely and complete response, the filing will be
805	deemed approved.
806	(d) A developer shall have the authority to deliver to
807	purchasers any purchaser public offering statement that is not
808	yet approved by the division, provided that the following shall
809	apply:
810	1. At the time the developer delivers an unapproved
811	purchaser public offering statement to a purchaser pursuant to
812	this paragraph, the developer shall deliver a fully completed
813	and executed copy of the purchase contract required by s. 721.06
814	that contains the following statement in conspicuous type in
815	substantially the following form which shall replace the
816	statements required by s. 721.06(1)(g):
817
818	The developer is delivering to you a public offering statement
819	that has been filed with but not yet approved by the Division of
820	Florida Land Sales, Condominiums, and Mobile Homes. Any
821	revisions to the unapproved public offering statement you have
822	received must be delivered to you, but only if the revisions
823	materially alter or modify the offering in a manner adverse to
824	you. After the division approves the public offering statement,
825	you will receive notice of the approval from the developer and
826	the required revisions, if any.
827
828	Your statutory right to cancel this transaction without any
829	penalty or obligation expires 10 calendar days after the date
830	you signed your purchase contract or the date on which you
831	receive the last of all documents required to be given to you
832	pursuant to section 721.07(6), Florida Statutes, or10 calendar
833	days after you receive revisions required to be delivered to
834	you, if any, whichever is later. If you decide to cancel this
835	contract, you must notify the seller in writing of your intent
836	to cancel. Your notice of cancellation shall be effective upon
837	the date sent and shall be sent to (Name of Seller) at (Address
838	of Seller). Any attempt to obtain a waiver of your cancellation
839	right is void and of no effect. While you may execute all
840	closing documents in advance, the closing, as evidenced by
841	delivery of the deed or other document, before expiration of
842	your 10-day cancellation period, is prohibited.
843
844	2. After receipt of approval from the division and prior
845	to closing, if any revisions made to the documents contained in
846	the purchaser public offering statement materially alter or
847	modify the offering in a manner adverse to a purchaser, the
848	developer shall send the purchaser such revisions together with
849	a notice containing a statement in conspicuous type in
850	substantially the following form:
851
852	The unapproved public offering statement previously delivered to
853	you, together with the enclosed revisions, has been approved by
854	the Division of Florida Land Sales, Condominiums, and Mobile
855	Homes. Accordingly, your cancellation right expires 10 calendar
856	days after you sign your purchase contract or 10 calendar days
857	after you receive these revisions, whichever is later. If you
858	have any questions regarding your cancellation rights, you may
859	contact the division at [insert division's current address].
860
861	3. After receipt of approval from the division and prior
862	to closing, if no revisions have been made to the documents
863	contained in the unapproved purchaser public offering statement,
864	or if such revisions do not materially alter or modify the
865	offering in a manner adverse to a purchaser, the developer shall
866	send the purchaser a notice containing a statement in
867	conspicuous type in substantially the following form:
868
869	The unapproved public offering statement previously delivered to
870	you has been approved by the Division of Florida Land Sales,
871	Condominiums, and Mobile Homes. Revisions made to the unapproved
872	public offering statement, if any, are either not required to be
873	delivered to you or are not deemed by the developer, in its
874	opinion, to materially alter or modify the offering in a manner
875	that is adverse to you. Accordingly, your cancellation right
876	expired 10 days after you signed your purchase contract. A
877	complete copy of the approved public offering statement is
878	available through the managing entity for inspection as part of
879	the books and records of the plan. If you have any questions
880	regarding your cancellation rights, you may contact the division
881	at [insert division's current address].
882	(3)(a)1. Any change to an approved public offering
883	statement filing shall be filed with the division for approval
884	as an amendment prior to becoming effective. The division shall
885	have 20 days after receipt of a proposed amendment to approve or
886	cite deficiencies in the proposed amendment. If the division
887	fails to act within 20 days, the amendment will be deemed
888	approved. If the proposed amendment adds a new component site to
889	an approved multisite timeshare plan, the division's initial
890	period in which to approve or cite deficiencies is 45 days. If
891	the developer fails to adequately respond to any deficiency
892	notice within 30 days, the division may reject the amendment.
893	Subsequent to such rejection, a new filing fee pursuant to
894	subsection (4) and a new division initial review period pursuant
895	to this paragraph shall apply to any refiling or further review
896	of the rejected amendment.
897	2. For filings only subject to this part, each approved
898	amendment to the approved purchaser public offering statement,
899	other than an amendment made only for the purpose of the
900	addition of a phase or phases to the timeshare plan in the
901	manner described in the timeshare instrument or any amendment
902	that does not materially alter or modify the offering in a
903	manner that is adverse to a purchaser, shall be delivered to a
904	purchaser no later than 10 days prior to closing. For filings
905	made under part II, each approved amendment to the multisite
906	timeshare plan purchaser public offering statement, other than
907	an amendment made only for the purpose of the addition,
908	substitution, or deletion of a component site pursuant to part
909	II or the addition of a phase or phases to a component site of a
910	multisite timeshare plan in the manner described in the
911	timeshare instrument or any amendment that does not materially
912	alter or modify the offering in a manner that is adverse to a
913	purchaser, shall be delivered to a purchaser no later than 10
914	days prior to closing.
915	3. Amendments made to a timeshare instrument for a
916	component site located in this state are not required to be
917	delivered to purchasers who do not receive a timeshare estate or
918	an interest in a specific multisite timeshare planlicensein
919	that component site. Amendments made to a timeshare instrument
920	for a component site not located in this state are not required
921	to be delivered to purchasers.
922	(b) At the time that any amendments required to be
923	delivered to purchasers, as provided in paragraph (a), are
924	delivered to purchasers, the developer shall provide to those
925	purchasers who have not closed a written statement that the
926	purchaser or lessee will have a 10-day voidability period.
927	(4)(a) Upon the filing of a filedregisteredpublic
928	offering statement, the developer shall pay a filing fee of
929	$1.50$2for each 7 days of annual use availability in each
930	timeshare unit that may be offered as a part of the proposed
931	timeshare plan pursuant to the filing.
932	(b) Upon the filing of an amendment to an approved filed
933	registered public offering statement, other than an amendment
934	adding a phase to the timeshare plan, the developer shall pay a
935	filing fee of $100.
936	(5) Every filedregisteredpublic offering statement for a
937	timeshare plan which is not a multisite timeshare plan shall
938	contain the information required by this subsection. The
939	division is authorized to provide by rule the method by which a
940	developer must provide such information to the division.
941	(a) A cover page stating only:
942	1. The name of the timeshare plan; and
943	2. The following statement, in conspicuous type: This
944	public offering statement contains important matters to be
945	considered in acquiring a timeshare interest. The statements
946	contained in this public offering statement are only summary in
947	nature. A prospective purchaser should refer to all references,
948	accompanying exhibits, contract documents, and sales materials.
949	You should not rely upon oral representations as being correct.
950	Refer to this document and accompanying exhibits for correct
951	representations. The seller is prohibited from making any
952	representations other than those contained in the contract and
953	this public offering statement.
954	(b) A listing of all statements required to be in
955	conspicuous type in the public offering statement and in all
956	exhibits thereto.
957	(c) A separate index of the contents and exhibits of the
958	public offering statement.
959	(d) A text which shall include, where applicable, the
960	disclosures set forth in paragraphs (e)-(hh).
961	(e) A description of the timeshare plan, including, but
962	not limited to:
963	1. Its name and location.
964	2. An explanation of the form of timeshare ownership that
965	is being offered, including a statement as to whether any
966	interest in the underlying real property will be conveyed to the
967	purchaser. If the plan is being created or being sold on a
968	leasehold, a description of the material terms of the lease
969	shall be included. If the plan is a plan in which timeshare
970	estates or personal property timeshare interestsare sold as
971	interests in a trust pursuant to the requirements of this
972	chapter, a full and accurate description of the trust
973	arrangement and the trustee's duties shall be included. If the
974	plan is a personal property timeshare plan, a description of the
975	material terms of the arrangement for the ownership or use of
976	the personal property shall be included.
977	3. An explanation of the manner in which the apportionment
978	of common expenses and ownership of the common elements has been
979	determined.
980	4. If ownership or use of the timeshare plan is based on a
981	point system, a statement indicating the circumstances by which
982	the point values may change, the extent of such changes, and the
983	person or entity responsible for the changes.
984	5. If any of the accommodations or facilities are part of
985	a personal property timeshare plan in which the accommodations
986	or facilities are located on or in a documented vessel or
987	foreign vessel as provided in s. 721.08(2)(c)3.e., the
988	disclosure required by s. 721.08(2)(c)3.e.(IV).
989	(f) A description of the accommodations, including, but
990	not limited to:
991	1. The number of timeshare units in each building, the
992	total number of timeshare periods declared as part of the
993	timeshare plan and filed with the division, and the number of
994	bathrooms and bedrooms in each type of timeshare unit.
995	2. The latest date estimated for completion of
996	constructing, finishing, and equipping the timeshare units
997	declared as part of the timeshare plan and filed with the
998	division.
999	3. The estimated maximum number of units and timeshare
1000	periods that will use the accommodations and facilities. If the
1001	maximum number of timeshare units or timeshare periods will
1002	vary, a description of the basis for variation.
1003	4. The duration, in years, of the timeshare plan.
1004	5. If any of the accommodations are part of a personal
1005	property timeshare plan, the name, vehicle registration number,
1006	title certificate number, or any other identifying registration
1007	number assigned to the accommodation of a personal property
1008	timeshare plan by a state, federal, or international
1009	governmental agency.
1010	6. If any of the accommodations are part of a personal
1011	property timeshare plan, the fire detection system and fire
1012	safety equipment and description of method of compliance with
1013	any applicable firesafety or fire detection regulations.
1014	(g) A description of anythefacilities that will be used
1015	by purchasers of the plan, including, but not limited to:
1016	1. The intended purpose, if not apparent from the
1017	description.
1018	2. The estimated date when each facility will be available
1019	for use by the purchaser.
1020	3. A statement as to whether the facilities will be used
1021	exclusively by purchasers of the timeshare plan, and, if not, a
1022	statement as to whether the purchasers of the timeshare plan are
1023	required to pay any portion of the maintenance and expenses of
1024	such facilities.
1025	(h)1. If any facilities offered by the developer for use
1026	by purchasers are to be leased or have club memberships
1027	associated with them, other than participation in a vacation
1028	club, one of the following statements in conspicuous type: There
1029	is a lease associated with one or more facilities of the
1030	timeshare plan; or, There is a club membership associated with
1031	one or more facilities of the timeshare plan.
1032	2. If it is mandatory that purchasers pay fees, rent,
1033	dues, or other charges under a facilities lease or club
1034	membership for the use of the facilities, other than
1035	participation in a vacation club, the applicable statement in
1036	conspicuous type in substantially the following form:
1037	a. Membership in a facilities club is mandatory for
1038	purchasers;
1039	b. Purchasers or the owners'association(s) are required,
1040	as a condition of ownership, to be lessees under the facilities
1041	lease;
1042	c. Purchasers or the owners'association(s) are required
1043	to pay their share of the rent or costs and expenses of
1044	maintenance, management, upkeep, and replacement under the
1045	facilities lease (or the other instruments providing the
1046	facilities); or
1047	d. A similar statement of the nature of the organization
1048	or the manner in which the use rights are created, and that
1049	purchasers are required to pay.
1050
1051	Immediately following the applicable statement, a description of
1052	the lease or other instrument shall be stated, including a
1053	description of terms of the payment of rent or costs and
1054	expenses of maintenance, management, upkeep, and replacement of
1055	the facilities.
1056	3. If the purchasers are required to pay a use fee, or
1057	other payment for the use of the facilities, not including the
1058	rent or maintenance, management, upkeep, or replacement costs
1059	and expenses, the following statement in conspicuous type: The
1060	purchasers or the owners'association(s) must pay use fees for
1061	one or more facilities. Immediately following this statement, a
1062	description of the use fees shall be included.
1063	4. If any person other than the owners'association has
1064	the right to a lien on the timeshare interests to secure the
1065	payment of assessments, rent, or other exactions, a statement in
1066	conspicuous type in substantially the following form:
1067	a. There is a lien or lien right against each timeshare
1068	interest to secure the payment of rent and other exactions under
1069	the facilities lease. A purchaser's failure to make these
1070	payments may result in foreclosure of the lien; or
1071	b. There is a lien or lien right against each timeshare
1072	interest to secure the payment of assessments or other exactions
1073	coming due for the use, maintenance, upkeep, or repair of one or
1074	more facilities. A purchaser's failure to make these payments
1075	may result in foreclosure of the lien.
1076
1077	Immediately following the applicable statement, a description of
1078	the lien right shall be included.
1079	(i) If the developer or any other person has the right to
1080	increase or add to the facilities at any time after the
1081	establishment of the timeshare plan, without the consent of the
1082	purchasers or owners'association being required, a statement in
1083	conspicuous type in substantially the following form: Facilities
1084	may be expanded or added without consent of the purchasers or
1085	the owners'association(s). Immediately following this
1086	statement, a description of such reserved rights shall be
1087	included.
1088	(j)1. For a real property timeshare plan,an explanation
1089	of the status of the title to the real property underlying the
1090	timeshare plan, including a statement of the existence of any
1091	lien, defect, judgment, mortgage, or other encumbrance affecting
1092	the title to the property, and how such lien, defect, judgment,
1093	mortgage, or other encumbrance will be removed or satisfied
1094	prior to closing.
1095	2. For a personal property timeshare plan, an explanation
1096	of the status of title to the personal property underlying the
1097	timeshare plan, including a statement of the existence of any
1098	lien, defect, judgment, or other encumbrance affecting the title
1099	to the personal property, and how such lien, defect, judgment,
1100	or other encumbrance will be removed or satisfied prior to
1101	closing.
1102	(k) A description of any judgment against the developer,
1103	the managing entity, owner of the underlying fee,or owner of
1104	the underlying personal propertyfee, which judgment is material
1105	to the timeshare plan; the status of any pending suit to which
1106	the developer, the managing entity, owner of the underlying fee,
1107	or owner of the underlying personal propertyfeeis a party,
1108	which suit is material to the timeshare plan; and any other suit
1109	which is material to the timeshare plan of which the developer,
1110	managing entity, owner of the underlying fee,or owner of the
1111	underlying personal propertyfeehas actual knowledge. If no
1112	judgments or pending suits exist, there shall be a statement of
1113	such fact.
1114	(l) A description of all unusual and material
1115	circumstances, features, and characteristics of the real
1116	property or personal property underlying or comprising the
1117	timeshare plan.
1118	(m) A description of any financing to be offered to
1119	purchasers by the developer or any person or entity in which the
1120	developer has a financial interest, together with a disclosure
1121	that the description of such financing may be changed by the
1122	developer and that any change in the financing offered to
1123	prospective purchasers will not be deemed to be a material
1124	change.
1125	(n) A detailed explanation of any financial arrangements
1126	which have been provided for completion of all promised
1127	improvements.
1128	(o) The name and address of the managing entity; a
1129	statement whether the seller may change the managing entity or
1130	its control and, if so, the manner by which the seller may
1131	change the managing entity; a statement of the arrangements for
1132	management, maintenance, and operation of the accommodations and
1133	facilities and of other property that will serve the purchasers;
1134	and a description of the management arrangement and any
1135	contracts for these purposes having a term in excess of 1 year,
1136	including the names of the contracting parties, the term of the
1137	contract, the nature of the services included, and the
1138	compensation, stated for a month and for a year, and provisions
1139	for increases in the compensation. In the case of a personal
1140	property timeshare plan in which the accommodations or
1141	facilities are located on or in a documented vessel or foreign
1142	vessel as provided in s. 721.08(2)(c)3.e., a statement shall be
1143	included that describes the trustee’s or owners’ association’s
1144	access to the certificates of classification and that the
1145	certificate of classification will be made available to
1146	purchasers on request.
1147	(p) If any person other than the purchasers has the right
1148	to retain control of the board of administration of the owners'
1149	association, if any,for a period of time which may exceed 1
1150	year after the closing of the sale of a majority of the
1151	timeshare interests in that timeshare plan to persons other than
1152	successors or concurrent developers and the plan is one in which
1153	all purchasers automatically become members of the owners'
1154	association, a statement in conspicuous type in substantially
1155	the following form: The developer (or other person) has the
1156	right to retain control of the owners'association after a
1157	majority of the timeshare interests have been sold. Immediately
1158	following this statement, a description of the applicable
1159	transfer of control provisions of the timeshare plan shall be
1160	included.
1161	(q)1. If there are any restrictions upon the sale,
1162	transfer, conveyance, or leasing of a timeshare interest, a
1163	statement in conspicuous type in substantially the following
1164	form: The sale, lease, or transfer of timeshare interests is
1165	restricted or controlled. Immediately following this statement,
1166	a description of the nature of the restriction, limitation, or
1167	control on the sale, lease, or transfer of timeshare interests
1168	shall be included.
1169	2. The following statement in conspicuous type in
1170	substantially the following form: The purchase of a timeshare
1171	interest should be based upon its value as a vacation experience
1172	or for spending leisure time, and not considered for purposes of
1173	acquiring an appreciating investment or with an expectation that
1174	the timeshare interest may be resold.
1175	(r) If the timeshare plan is part of a phase project, a
1176	statement to that effect and a complete description of the
1177	phasing. Notwithstanding any provisions of s. 718.110 or s.
1178	719.1055, a developer may develop a timeshare condominium or a
1179	timeshare cooperative in phases if the original declaration of
1180	condominium or cooperative documents submitting the initial
1181	phase to condominium ownership or cooperative ownership or an
1182	amendment to the declaration of condominium or cooperative
1183	documents which has been approved by all of the unit owners and
1184	unit mortgagees provides for phasing. Notwithstanding any
1185	provisions of s. 718.403 or s. 719.403 to the contrary, the
1186	original declaration of condominium or cooperative documents, or
1187	an amendment to the declaration of condominium or cooperative
1188	documents adopted pursuant to this subsection, need only
1189	generally describe the developer's phasing plan and the land
1190	which may become part of the condominium or cooperative, and, in
1191	conjunction therewith, the developer may also reserve all rights
1192	to vary his or her phasing plan as to phase boundaries, plot
1193	plans and floor plans, timeshare unit types, timeshare unit
1194	sizes and timeshare unit type mixes, numbers of timeshare units,
1195	and facilities with respect to each subsequent phase. There
1196	shall be no time limit during which a developer of a timeshare
1197	condominium or timeshare cooperative must complete his or her
1198	phasing plan, and the developer shall not be required to notify
1199	owners of existing timeshare estates of his or her decision not
1200	to add one or more proposed phases.
1201	(s) A description of the material restrictions, if any, to
1202	be imposed on timeshare interests concerning the use of any of
1203	the accommodations or facilities, including statements as to
1204	whether there are restrictions upon children and pets or a
1205	reference to a copy of the documents containing the restrictions
1206	which shall be attached as an exhibit. If there are no
1207	restrictions, there shall be a statement of such fact.
1208	(t) If there is any land or personal propertythat is
1209	offered by the developer for use by the purchasers and which is
1210	neither owned by them nor leased to them, the owners'
1211	association, or any entity controlled by the purchasers, a
1212	statement describing the land or personal property, how it will
1213	serve the timeshare plan, and the nature and term of service.
1214	(u) An estimated operating budget for the timeshare plan
1215	and a schedule of the purchaser's expenses shall be attached as
1216	an exhibit and shall contain the following information:
1217	1. The estimated annual expenses of the timeshare plan
1218	collectible from purchasers by assessments. The estimated
1219	payments by the purchaser for assessments shall also be stated
1220	in the estimated amounts for the times when they will be due.
1221	Expenses shall also be shown for the shortest timeshare period
1222	offered for sale by the developer. If the timeshare plan
1223	provides for the offer and sale of units to be used on a
1224	nontimeshare basis, the estimated monthly and annual expenses of
1225	such units shall be set forth in a separate schedule.
1226	2. The estimated weekly, monthly, and annual expenses of
1227	the purchaser of each timeshare interest, other than assessments
1228	payable to the managing entity. Expenses which are personal to
1229	purchasers that are not uniformly incurred by all purchasers or
1230	that are not provided for or contemplated by the timeshare plan
1231	documents may be excluded from this estimate.
1232	3. The estimated items of expenses of the timeshare plan
1233	and the managing entity, except as excluded under subparagraph
1234	2., including, but not limited to, if applicable, the following
1235	items, which shall be stated either as management expenses
1236	collectible by assessments or as expenses of the purchaser
1237	payable to persons other than the managing entity:
1238	a. Expenses for the managing entity:
1239	(I) Administration of the managing entity.
1240	(II) Management fees.
1241	(III) Maintenance.
1242	(IV) Rent for facilities.
1243	(V) Taxes upon timeshare property.
1244	(VI) Taxes upon leased areas.
1245	(VII) Insurance.
1246	(VIII) Security provisions.
1247	(IX) Other expenses.
1248	(X) Operating capital.
1249	(XI) Reserves for deferred maintenance and reserves for
1250	capital expenditures.
1251	(A) All reserves for any accommodations and facilities of
1252	real property timeshare planslocated in this state shall be
1253	calculated by a formula which is based upon estimated life and
1254	replacement cost of each reserve item. Reserves for deferred
1255	maintenance for such accommodations and facilities shall include
1256	accounts for roof replacement, building painting, pavement
1257	resurfacing, replacement of timeshare unit furnishings and
1258	equipment, and any other component, the useful life of which is
1259	less than the useful life of the overall structure. For any
1260	accommodations and facilities of real property timeshare plans
1261	located outside of this state, the developer shall disclose the
1262	amount of reserves for deferred maintenance or capital
1263	expenditures required by the law of the situs state, if
1264	applicable, and maintained for such accommodations and
1265	facilities.
1266	(B) Reserves for deferred maintenance or capital
1267	expenditures of accommodations and facilities of a personal
1268	property timeshare plan, if any. If such reserves are
1269	maintained, the estimated operating budget shall disclose the
1270	methodology of how the reserves are calculated. If a personal
1271	property timeshare plan does not require reserves, the following
1272	statement, in conspicuous type, shall appear in both the budget
1273	and the public offering statement:
1274
1275	The estimated operating budget for this personal property
1276	timeshare plan does not include reserves for deferred
1277	maintenance or capital expenditures; each timeshare interest may
1278	be subject to substantial special assessments from time to time
1279	because no such reserves exist.
1280
1281	(XII) Fees payable to the division.
1282	b. Expenses for a purchaser:
1283	(I) Rent for the timeshare unit, if subject to a lease.
1284	(II) Rent payable by the purchaser directly to the lessor
1285	or agent under any lease for the use of facilities, which use
1286	and payment is a mandatory condition of ownership and is not
1287	included in the common expenses or assessments for common
1288	maintenance paid by the purchasers to the managing entity.
1289	4. The estimated amounts shall be stated for a period of
1290	at least 12 months and may distinguish between the period prior
1291	to the time that purchasers elect a majority of the board of
1292	administration and the period after that date.
1293	5. If the developer intends to guarantee the level of
1294	assessments, such guarantee must be based upon a good faith
1295	estimate of the revenues and expenses of the timeshare plan. The
1296	guarantee must include a description of the following:
1297	a. The specific time period measured in one or more
1298	calendar or fiscal years during which the guarantee will be in
1299	effect.
1300	b. A statement that the developer will pay all common
1301	expenses incurred in excess of the total revenues of the
1302	timeshare plan pursuant to s. 721.15(2) if the developer has
1303	excused himself or herself from the payment of assessments
1304	during the guarantee period.
1305	c. The level, expressed in total dollars, at which the
1306	developer guarantees the budget. If the developer has reserved
1307	the right to extend or increase the guarantee level pursuant to
1308	s. 721.15(2), a disclosure must be included to that effect.
1309	6. If the developer intends to provide a trust fund to
1310	defer or reduce the payment of annual assessments, a copy of the
1311	trust instrument shall be attached as an exhibit and shall
1312	include a description of such arrangement, including, but not
1313	limited to:
1314	a. The specific amount of such trust funds and the source
1315	of the funds.
1316	b. The name and address of the trustee.
1317	c. The investment methods permitted by the trust
1318	agreement.
1319	d. A statement in conspicuous type that the funds from the
1320	trust account may not cover all assessments and that there is no
1321	guarantee that purchasers will not have to pay assessments in
1322	the future.
1323	7. The budget of a phase timeshare plan may contain a note
1324	identifying the number of timeshare interests covered by the
1325	budget, indicating the number of timeshare interests, if any,
1326	estimated to be declared as part of the timeshare plan during
1327	that calendar year, and projecting the common expenses for the
1328	timeshare plan based upon the number of timeshare interests
1329	estimated to be declared as part of the timeshare plan during
1330	that calendar year.
1331	(v) A schedule of estimated closing expenses to be paid by
1332	a purchaser or lessee of a timeshare interest and a statement as
1333	to whether a title opinion or title insurance policy is
1334	available to the purchaser and, if so, at whose expense.
1335	(w) The identity of the developer and the chief operating
1336	officer or principal directing the creation and sale of the
1337	timeshare plan and a statement of the experience of each in this
1338	field or, if no experience, a statement of that fact.
1339	(x) A statement of the total financial obligation of the
1340	purchaser, including the purchase price and any additional
1341	charges to which the purchaser may be subject.
1342	(y) The name of any person who will or may have the right
1343	to alter, amend, or add to the charges to which the purchaser
1344	may be subject and the terms and conditions under which such
1345	alterations, amendments, or additions may be imposed.
1346	(z) A statement of the purchaser's right of cancellation
1347	of the purchase contract.
1348	(aa) A description of the insurance coverage provided for
1349	the timeshare plan.
1350	(bb) A statement as to whether the timeshare plan is
1351	participating in an exchange program and, if so, the name and
1352	address of the exchange company offering the exchange program.
1353	(cc) The existence of rules and regulations regarding any
1354	reservation features governing a purchaser's ability to make
1355	reservations for a timeshare period, including, if applicable, a
1356	conspicuous type disclaimer in substantially the following form:
1357
1358	The right to reserve a timeshare period is subject to rules and
1359	regulations of the timeshare plan reservation system.
1360
1361	(dd) If a developer is filing a timeshare plan that
1362	includes a timeshare instrument or component site document that
1363	was in conformance with the laws and rules in existence at the
1364	time the timeshare plan was created but does not conform to
1365	existing laws and rules that govern the timeshare plan and the
1366	developer does not have the authority or power to amend or
1367	change the timeshare instrument or component site document to
1368	conform to such existing laws or rules as directed by the
1369	division, a brief explanation of current law and the conflict
1370	with the timeshare instrument or component site document,
1371	preceded by disclaimer in conspicuous type in substantially the
1372	following form:
1373
1374	Florida law has been amended and certain provisions in [insert
1375	appropriate reference to timeshare instrument or component site
1376	document] that were in conformance with Florida law as it
1377	existed at the time the timeshare plan was created are not in
1378	conformance with current Florida law. These documents may only
1379	be amended by [insert appropriate reference to person or entity
1380	that has the right to amend or change the timeshare instrument
1381	or component site document]. The developer does not warrant that
1382	such documents are in technical compliance with all applicable
1383	Florida laws and regulations. All questions regarding amendment
1384	of these documents should be directed to [insert appropriate
1385	reference to person or entity that has the right to amend or
1386	change the timeshare instrument or component site document].
1387
1388	(ee) Any other information that a seller, with the
1389	approval of the division, desires to include in the public
1390	offering statement.
1391	(ff) Copies of the following documents and plans, to the
1392	extent they are applicable, shall be included as exhibits to the
1393	filedregisteredpublic offering statement provided, if the
1394	timeshare plan has not been declared or createdat the time of
1395	the filing, the developer shall provide proposed documents:
1396	1. The declaration of condominium.
1397	2. The cooperative documents.
1398	3. The declaration of covenants and restrictions.
1399	4. The articles of incorporation creating the owners'
1400	association.
1401	5. The bylaws of the owners'association.
1402	6. AnyTheground lease or other underlying lease of the
1403	real property associated withon which the timeshare plan is
1404	situated. In the case of a personal property timeshare plan, any
1405	lease of the personal property associated with the personal
1406	property timeshare plan.
1407	7. The management agreement and all maintenance and other
1408	contracts regarding the management and operation of the
1409	timeshare property which have terms in excess of 1 year.
1410	8. The estimated operating budget for the timeshare plan
1411	and the required schedule of purchasers' expenses.
1412	9. The floor plan of each type of accommodation and the
1413	plot plan showing the location of all accommodations and
1414	facilities declared as part of the timeshare plan and filed with
1415	the division.
1416	10. The lease for any facilities.
1417	11. A declaration of servitude of properties serving the
1418	accommodations and facilities, but not owned by purchasers or
1419	leased to them or the owners'association.
1420	12. Any documents required by s. 721.03(3)(e) as the
1421	result of the inclusion of a timeshare plan in the conversion of
1422	the building to condominium or cooperative ownership.
1423	13. The form of agreement for sale or lease of timeshare
1424	interests.
1425	14. The executed agreement for escrow of payments made to
1426	the developer prior to closing and the form of any agreement for
1427	escrow of ad valorem tax escrow payments, if any,to be made
1428	into an ad valorem tax escrow account pursuant to s. 192.037(6).
1429	15. The documents containing any restrictions on use of
1430	the property required by paragraph (s).
1431	16. A letter from the escrow agent or filing attorney
1432	confirming that the escrow agent and its officers, directors, or
1433	other partners are independent pursuant to the requirements of
1434	this chapter.
1435	17. Any nondisturbance and notice to creditors instrument
1436	required by s. 721.08.
1437	18. In the case of any personal property timeshare plan in
1438	which the accommodations and facilities are located on or in a
1439	documented vessel or foreign vessel as provided in s.
1440	721.08(2)(c)3.e., a copy of the certificate of ownership of such
1441	vessel and either a copy of the certificate of documentation or
1442	certificate of registry of such vessel.
1443	19. An executed affidavit given under oath by an attorney
1444	licensed to practice law in any jurisdiction in the United
1445	States stating that the attorney has researched the applicable
1446	laws of the jurisidiction in which governing law has been
1447	established and the laws of the jurisdiction in which the vessel
1448	is registered, and has found that the timeshare instrument
1449	complies with the provisions of s. 721.08(2)(c)3.e.(II)(C) and
1450	s. 721.08(2)(c)3.e.(III).
1451	20.16.Any other documents or instruments creating the
1452	timeshare plan.
1453	(gg) Such other information as is necessary to fairly,
1454	meaningfully, and effectively disclose all aspects of the
1455	timeshare plan, including, but not limited to, any disclosures
1456	made necessary by the operation of s. 721.03(8). However, if a
1457	developer has, in good faith, attempted to comply with the
1458	requirements of this section, and if, in fact, he or she has
1459	substantially complied with the disclosure requirements of this
1460	chapter, nonmaterial errors or omissions shall not be
1461	actionable.
1462	(hh) Notwithstanding the provisions of this subsection,
1463	the filedregisteredpublic offering statement for a component
1464	site of a multisite timeshare plan filed pursuant to this
1465	subsection may contain cross-references to information contained
1466	in the related multisite timeshare plan filedregisteredpublic
1467	offering statement filed pursuant to s. 721.55 in lieu of
1468	repeating such information.
1469	(6) The division is authorized to prescribe by rule the
1470	form of the approved purchaser public offering statement that
1471	must be furnished by the developer to each purchaser. The form
1472	of the purchaser public offering statement must provide fair,
1473	meaningful, and effective disclosure of all aspects of the
1474	timeshare plan. For timeshare plans filed pursuant to this part,
1475	the developer shall furnish each purchaser with the following:
1476	(a) A copy of the purchaser public offering statement text
1477	in the form approved by the division for delivery to purchasers.
1478	(b) Copies of the exhibits required to be filed with the
1479	division pursuant to subparagraphs (5)(ff)1., 2., 4., 5., 8.,
1480	and 20.16.
1481	(c) A receipt for timeshare plan documents and a list
1482	describing any exhibit to the filedregisteredpublic offering
1483	statement filed with the division which is not delivered to the
1484	purchaser. The division is authorized to prescribe by rule the
1485	form of the receipt for timeshare plan documents and the
1486	description of exhibits list that must be furnished to the
1487	purchaser. The description of documents list utilized by a
1488	developer shall be filed with the division for review as part of
1489	the filedregisteredpublic offering statement pursuant to this
1490	section. The developer shall be required to provide the managing
1491	entity with a copy of the approved filedregisteredpublic
1492	offering statement and any approved amendments thereto to be
1493	maintained by the managing entity as part of the books and
1494	records of the timeshare plan pursuant to s. 721.13(3)(d).
1495	(d) Any other exhibit which the developer includes as part
1496	of the purchaser public offering statement, provided that the
1497	developer first files the exhibit with the division.
1498	(e) An executed copy of any document which the purchaser
1499	signs.
1500	(f) Each purchaser shall receive a fully executed paper
1501	copy of the purchase contract.
1502	Section 7. Paragraph (g) of subsection (1) of section
1503	721.075, Florida Statutes, is amended and paragraph (e) is added
1504	to subsection (2) of said section, to read:
1505	721.075 Incidental benefits.--Incidental benefits shall be
1506	offered only as provided in this section.
1507	(1) Accommodations, facilities, products, services,
1508	discounts, or other benefits which satisfy the requirements of
1509	this subsection shall be subject to the provisions of this
1510	section and exempt from the other provisions of this chapter
1511	which would otherwise apply to such accommodations or facilities
1512	if and only if:
1513	(g) The incidental benefit is filed with the division for
1514	reviewin conjunction with the filing of a timeshare plan or in
1515	connection with a previously filed timeshare plan.
1516	(2) Each purchaser shall execute a separate acknowledgment
1517	and disclosure statement with respect to all incidental
1518	benefits, which statement shall include the following
1519	information:
1520	(e) A statement indicating the source of the services,
1521	points, or other products that constitute the incidental
1522	benefit.
1523	Section 8. Section 721.08, Florida Statutes, is amended to
1524	read:
1525	721.08 Escrow accounts; nondisturbance instruments;
1526	alternate security arrangements; transfer of legal title.--
1527	(1) Prior to the filing of a registeredpublic offering
1528	statement with the division, all developers shall establish an
1529	escrow account with an escrow agent for the purpose of
1530	protecting the funds or other property of purchasers required to
1531	be escrowed by this section. An escrow agent shall maintain the
1532	accounts called for in this section only in such a manner as to
1533	be under the direct supervision and control of the escrow agent.
1534	The escrow agent shall have a fiduciary duty to each purchaser
1535	to maintain the escrow accounts in accordance with good
1536	accounting practices and to release the purchaser's funds or
1537	other property from escrow only in accordance with this chapter.
1538	The escrow agent shall retain all affidavits received pursuant
1539	to this section for a period of 5 years. Should the escrow agent
1540	receive conflicting demands for funds or otherproperty held in
1541	escrow, the escrow agent shall immediately notify the division
1542	of the dispute and either promptly submit the matter to
1543	arbitration or, by interpleader or otherwise, seek an
1544	adjudication of the matter by court.
1545	(2) One hundred percent of all funds or other property
1546	which is received from or on behalf of purchasers of the
1547	timeshare plan or timeshare interest prior to the occurrence of
1548	events required in this subsection shall be deposited pursuant
1549	to an escrow agreement approved by the division. The escrow
1550	agreement shall provide that the funds or otherproperty may be
1551	released from escrow only as follows:
1552	(a) Cancellation.--In the event a purchaser gives a valid
1553	notice of cancellation pursuant to s. 721.10 or is otherwise
1554	entitled to cancel the sale, the funds or otherproperty
1555	received from or on behalf of the purchaser, or the proceeds
1556	thereof, shall be returned to the purchaser. Such refund shall
1557	be made within 20 days afterofdemand therefor by the purchaser
1558	or within 5 days after receipt of funds from the purchaser's
1559	cleared check, whichever is later. If the purchaser has received
1560	benefits under the contract prior to the effective date of the
1561	cancellation, the funds or otherproperty to be returned to the
1562	purchaser may be reduced by the proportion of contract benefits
1563	actually received.
1564	(b) Purchaser's default.--Following expiration of the 10-
1565	day cancellation period, if the purchaser defaults in the
1566	performance of her or his obligations under the terms of the
1567	contract to purchase or such other agreement by which a seller
1568	sells the timeshare interest, the developer shall provide an
1569	affidavit to the escrow agent requesting release of the escrowed
1570	funds or otherproperty and shall provide a copy of such
1571	affidavit to the purchaser who has defaulted. The developer's
1572	affidavit, as required herein, shall include:
1573	1. A statement that the purchaser has defaulted and that
1574	the developer has not defaulted;
1575	2. A brief explanation of the nature of the default and
1576	the date of its occurrence;
1577	3. A statement that pursuant to the terms of the contract
1578	the developer is entitled to the funds held by the escrow agent;
1579	and
1580	4. A statement that the developer has not received from
1581	the purchaser any written notice of a dispute between the
1582	purchaser and developer or a claim by the purchaser to the
1583	escrow.
1584	(c) Compliance with conditions.--
1585	1. Timeshare licenses.--If the timeshare plan is one in
1586	which timeshare licenses are to be sold and no cancellation or
1587	default has occurred, the escrow agent may release the escrowed
1588	funds or other property to or on the order of the developerupon
1589	presentation of:
1590	a. An affidavit by the developer that all of the following
1591	conditions have been met:
1592	(I) Expiration of the cancellation period.
1593	(II) Completion of construction.
1594	(III) Closing.
1595	(IV) Either:
1596	(A) Execution, delivery,and recordation by each
1597	interestholder of the nondisturbance and notice to creditors
1598	instrument, as described in this section; or, alternatively,
1599	(B)Transfer by the developer of legal title to the
1600	subject accommodations and facilities, or all use rights
1601	therein, intoto a trust satisfying the requirements of
1602	subparagraph 4.sub-subparagraph 3.b. and the execution,
1603	delivery,and recordation by each other interestholder of the
1604	nondisturbance and notice to creditors instrument, as described
1605	in this section.
1606	b. A certified copy of eachtherecorded nondisturbance
1607	and notice to creditors instrument that complies with subsection
1608	(3).
1609	c. One of the following:
1610	(I) A copy of a memorandum of agreement, as defined in s.
1611	721.05(21), together with satisfactory evidence that the
1612	original memorandum of agreement has been irretrievably
1613	delivered for recording to the appropriate official responsible
1614	for maintaining the public records in the county in which the
1615	subject accommodations and facilities are located. The original
1616	memorandum of agreement must be recorded within 180 days after
1617	the date on which the purchaser executed her or his purchase
1618	agreement.
1619	(II) A notice delivered for recording to the appropriate
1620	official responsible for maintaining the public records in each
1621	county in which the subject accommodations and facilities are
1622	located notifying all persons of the identity of an independent
1623	escrow agent or trustee satisfying the requirements of
1624	subparagraph 4.sub-subparagraph 3.b.that shall maintain
1625	separate books and records, in accordance with good accounting
1626	practices, for the timeshare plan in which timeshare licenses
1627	are to be sold. The books and records shall indicate each
1628	accommodation and facility that is subject to such a timeshare
1629	plan and each purchaser of a timeshare license in the timeshare
1630	plan.
1631	2. Timeshare estates.--If the timeshare plan is one in
1632	which timeshare estates are to be sold, other than interests in
1633	a trust pursuant to subparagraph 3.,and no cancellation or
1634	default has occurred, the escrow agent may release the escrowed
1635	funds or other property to or on the order of the developerupon
1636	presentation of:
1637	a. An affidavit by the developer that all of the following
1638	conditions have been met:
1639	(I) Expiration of the cancellation period.
1640	(II) Completion of construction.
1641	(III) Closing.
1642	b. If the timeshare estate is sold by agreement for deed,
1643	a certified copy of the recorded nondisturbance and notice to
1644	creditors instrument, as described in this section.
1645	c. Evidence that each accommodation and facility:
1646	(I) Is free and clear of the claims of any
1647	interestholders, other than the claims of interestholders that,
1648	through a recorded instrument, are irrevocably made subject to
1649	the timeshare instrument and the use rights of purchasers made
1650	available through the timeshare instrument;
1651	(II) Is the subject of a recorded nondisturbance and
1652	notice to creditors instrument that complies with subsection (3)
1653	and s. 721.17; or
1654	(III) Has been transferred into a trust satisfying the
1655	requirements of subparagraph 4.
1656	d. Evidence that the timeshare estate:
1657	(I)Is free and clear of the claims of any
1658	interestholders, other than the claims of interestholders that,
1659	through a recorded instrument, are irrevocably made subject to
1660	the timeshare instrument and the use rights of purchasers made
1661	available through the timeshare instrument;,or
1662	(II) Isthat arethe subject of a recorded nondisturbance
1663	and notice to creditors instrument that complies with subsection
1664	(3) and s. 721.17.
1665	3. Personal property timeshare interests.--If the
1666	timeshare plan is one in which personal property timeshare
1667	interestsestates are to be sold as interests in a trust that
1668	complies in all respects with the provisions of sub-subparagraph
1669	b.,and no cancellation or default has occurred, the escrow
1670	agent may release the escrowed funds or other property to or on
1671	the order of the developerupon presentation of:
1672	a. An affidavit by the developer that all of the following
1673	conditions have been met:
1674	(I) Expiration of the cancellation period.
1675	(II) Completion of construction.
1676	(III) Transfer of the subject accommodations and
1677	facilities, or all use rights therein, to the trust.
1678	(IV)Closing.
1679	b. If the personal property timeshare interest is sold by
1680	agreement for transfer, evidence that the agreement for transfer
1681	complies fully with s. 721.06 and this section.
1682	c. Evidence that one of the following has occurred:
1683	(I) Transfer by the owner of the underlying personal
1684	property of legal title to the subject accommodations and
1685	facilities or all use rights therein into a trust satisfying the
1686	requirements of subparagraph 4.; or
1687	(II) Transfer by the owner of the underlying personal
1688	property of legal title to the subject accommodations and
1689	facilities or all use rights therein into an owners' association
1690	satisfying the requirements of subparagraph 5.
1691	d. Evidence of compliance with the provisions of
1692	subparagraph 6., if required.
1693	e. If a personal property timeshare plan is created with
1694	respect to accommodations and facilities that are located on or
1695	in an ocean going vessel, including a “documented vessel” or
1696	“foreign vessel” as defined and governed by chapter 301 of Title
1697	46 of the United States Code:
1698	(I) In making the transfer required in sub-subparagraph
1699	c., the developer shall use as its transfer instrument a
1700	document that establishes and protects the continuance of the
1701	use rights in the subject accommodations and facilities in a
1702	manner that is enforceable by the trust or owners' association.
1703	(II) The transfer instrument shall comply fully with the
1704	provisions of this chapter, shall be part of the timeshare
1705	instrument, and shall contain specific provisions that:
1706	(A) Prohibit the vessel owner, the developer, any manager
1707	or operator of the vessel, the owners' association or the
1708	trustee, the managing entity, or any other person from incurring
1709	any liens against the vessel except for liens that are required
1710	for the operation and upkeep of the vessel, including liens for
1711	fuel expenditures, repairs, crews' wages, and salvage, and
1712	except as provided in sub-sub-subparagraphs 4.b.(III) and
1713	5.b.(III). All expenses, fees, and taxes properly incurred in
1714	connection with the creation, satisfaction, and discharge of any
1715	such permitted lien, or a prorated portion thereof if less than
1716	all of the accommodations on the vessel are subject to the
1717	timeshare plan, shall be common expenses of the timeshare plan.
1718	(B) Grant a lien against the vessel in favor of the
1719	owners' association or trustee to secure the full and faithful
1720	performance of the vessel owner and developer of all of their
1721	obligations to the purchasers.
1722	(C) Establish governing law in a jurisdiction that
1723	recognizes and will enforce the timeshare instrument and the
1724	laws of the jurisdiction of registry of the vessel.
1725	(D) Require that a description of the use rights of
1726	purchasers be posted and displayed on the vessel in a manner
1727	that will give notice of such rights to any party examining the
1728	vessel. This notice must identify the owners' association or
1729	trustee and include a statement disclosing the limitation on
1730	incurring liens against the vessel described in sub-sub-sub-
1731	subparagraph (A).
1732	(E) Include the nondisturbance and notice to creditors
1733	instrument for the vessel owner and any other interestholders.
1734	(F) The owners’ association created under subparagraph 5.
1735	or trustee created under subparagraph 6. shall have access to
1736	any certificates of classification in accordance with the
1737	timeshare instrument.
1738	(III) If the vessel is a foreign vessel, the vessel must
1739	be registered in a jurisdiction that permits a filing evidencing
1740	the use rights of purchasers in the subject accommodations and
1741	facilities, offers protection for such use rights against
1742	unfiled and inferior claims, and recognizes the document or
1743	instrument creating such use rights as a lien against the
1744	vessel.
1745	(IV) In addition to the disclosures required by s.
1746	721.07(5), the public offering statement and purchase contract
1747	must contain a disclosure in conspicuous type in substantially
1748	the following form:
1749
1750	The laws of the State of Florida govern the offering of this
1751	timeshare plan in this state. There are inherent risks in
1752	purchasing a timeshare interest in this timeshare plan because
1753	the accommodations and facilities of the timeshare plan are
1754	located on a vessel that will sail into international waters and
1755	into waters governed by many different jurisdictions. Therefore,
1756	the laws of the State of Florida cannot fully protect your
1757	purchase of an interest in this timeshare plan. Specifically,
1758	management and operational issues may need to be addressed in
1759	the jurisdiction in which the vessel is registered, which is
1760	________(insert jurisdiction in which vessel is required).
1761	Concerns of purchasers may be sent to ____________(insert name
1762	of applicable regulatory agency and address).
1763	4. Trust.--
1764	a. If the subject accommodations or facilities, or all use
1765	rights therein, are to be transferred into a trust in order to
1766	comply with this paragraph, such transfer shall take place
1767	pursuant to this subparagraph.
1768	b.Prior to the transfer by each interestholder of the
1769	subject accommodations and facilities, or all use rights
1770	therein, to a trust, any lien or other encumbrance against such
1771	accommodations and facilities, or use rights therein, shall be
1772	made subject to a nondisturbance and notice to creditors
1773	instrument pursuant to subsection (3)as described in this
1774	section. No transfer pursuant to this subparagraphsub-
1775	subparagraphshall become effective until the trustee accepts
1776	such transfer and the responsibilities set forth herein. A trust
1777	established pursuant to this subparagraphsub-subparagraphshall
1778	comply with the following provisions:
1779	(I) The trustee shall be an individual or a business
1780	entity authorized and qualified to conduct trust business in
1781	this state. Any corporation authorized to do business in this
1782	state may act as trustee in connection with a timeshare plan
1783	pursuant to this chapter. The trustee must be independent from
1784	any developer or managing entity of the timeshare plan or any
1785	interestholder of any accommodation or facility of such plan.
1786	(II) The trust shall be irrevocable so long as any
1787	purchaser has a right to occupy any portion of the timeshare
1788	property pursuant to the timeshare plan.
1789	(III) The trustee shall not convey, hypothecate, mortgage,
1790	assign, lease, or otherwise transfer or encumber in any fashion
1791	any interest in or portion of the timeshare property with
1792	respect to which any purchaser has a right of use or occupancy
1793	unless the timeshare plan is terminated pursuant to the
1794	timeshare instrument, or such conveyance, hypothecation,
1795	mortgage, assignment, lease, transfer, or encumbrance is
1796	approved by a vote of two-thirds of all voting interests of the
1797	timeshare plan and such decision is declared by a court of
1798	competent jurisdiction to be in the best interests of the
1799	purchasers of the timeshare plan. The trustee shall notify the
1800	division in writing within 10 days afterofreceiving notice of
1801	the filing of any petition relating to obtaining such a court
1802	order. The division shall have standing to advise the court of
1803	the division's interpretation of the statute as it relates to
1804	the petition.
1805	(IV) All purchasers of the timeshare plan or the owners'
1806	association of the timeshare plan shall be the express
1807	beneficiaries of the trust. The trustee shall act as a fiduciary
1808	to the beneficiaries of the trust. The personal liability of the
1809	trustee shall be governed by s. 737.306. The agreement
1810	establishing the trust shall set forth the duties of the
1811	trustee. The trustee shall be required to furnish promptly to
1812	the division upon request a copy of the complete list of the
1813	names and addresses of the owners in the timeshare plan and a
1814	copy of any other books and records of the timeshare plan
1815	required to be maintained pursuant to s. 721.13 that are in the
1816	possession, custody, or control of the trustee. All expenses
1817	reasonably incurred by the trustee in the performance of its
1818	duties, together with any reasonable compensation of the
1819	trustee, shall be common expenses of the timeshare plan.
1820	(V) The trustee shall not resign upon less than 90 days'
1821	prior written notice to the managing entity and the division. No
1822	resignation shall become effective until a substitute trustee,
1823	approved by the division, is appointed by the managing entity
1824	and accepts the appointment.
1825	(VI) The documents establishing the trust arrangement
1826	shall constitute a part of the timeshare instrument.
1827	(VII) For trusts holding property in a timeshare plan
1828	located outside this state, the trust and trusteeholding such
1829	property shall be deemed in compliance with the requirements of
1830	this subparagraph if such trust and trustee areisauthorized
1831	and qualified to conduct trust business under the laws of such
1832	jurisdiction and the agreement or law governing such trust
1833	arrangement provides substantially similar protections for the
1834	purchaser as are required in this subparagraph for trusts
1835	holding property in a timeshare plan in this state.
1836	(VIII) The trustee shall have appointed a registered agent
1837	in this state for service of process. In the event such a
1838	registered agent is not appointed, service of process may be
1839	served pursuant to s. 721.265.
1840	5. Owners’ association.--
1841	a. If the subject accommodations or facilities, or all use
1842	rights therein, are to be transferred into an owners’
1843	association in order to comply with this paragraph, such
1844	transfer shall take place pursuant to this subparagraph.
1845	b. Prior to the transfer by each interestholder of the
1846	subject accommodations and facilities, or all use rights
1847	therein, to an owners’ association, any lien or other
1848	encumbrance against such accommodations and facilities, or use
1849	rights therein, shall be made subject to a nondisturbance and
1850	notice to creditors instrument pursuant to subsection (3). No
1851	transfer pursuant to this subparagraph shall become effective
1852	until the owners’ association accepts such transfer and the
1853	responsibilities set forth herein. An owners’ association
1854	established pursuant to this subparagraph shall comply with the
1855	following provisions:
1856	(I) The owners’ association shall be a business entity
1857	authorized and qualified to conduct business in this state.
1858	Control of the board of directors of the owners’ association
1859	must be independent from any developer or managing entity of the
1860	timeshare plan or any interestholder.
1861	(II) The articles of incorporation of the owners’
1862	association shall provide that the corporation may not be
1863	voluntarily dissolved without the unanimous vote of all owners
1864	of personal property timeshare interests so long as any
1865	purchaser has a right to occupy any portion of the timeshare
1866	property pursuant to the timeshare plan.
1867	(III) The owners’ association shall not convey,
1868	hypothecate, mortgage, assign, lease, or otherwise transfer or
1869	encumber in any fashion any interest in or portion of the
1870	timeshare property with respect to which any purchaser has a
1871	right of use or occupancy unless the timeshare plan is
1872	terminated pursuant to the timeshare instrument, or such
1873	conveyance, hypothecation, mortgage, assignment, lease,
1874	transfer, or encumbrance is approved by a vote of two-thirds of
1875	all voting interests of the association and such decision is
1876	declared by a court of competent jurisdiction to be in the best
1877	interests of the purchasers of the timeshare plan. The owners’
1878	association shall notify the division in writing within 10 days
1879	after receiving notice of the filing of any petition relating to
1880	obtaining such a court order. The division shall have standing
1881	to advise the court of the division's interpretation of the
1882	statute as it relates to the petition.
1883	(IV) All purchasers of the timeshare plan shall be members
1884	of the owners' association and shall be entitled to vote on
1885	matters requiring a vote of the owners’ association as provided
1886	in this chapter or the timeshare instrument. The owners’
1887	association shall act as a fiduciary to the purchasers of the
1888	timeshare plan. The articles of incorporation establishing the
1889	owners’ association shall set forth the duties of the owners’
1890	association. All expenses reasonably incurred by the owners’
1891	association in the performance of its duties, together with any
1892	reasonable compensation of the officers or directors of the
1893	owners’ association, shall be common expenses of the timeshare
1894	plan.
1895	(V) The documents establishing the owners’ association
1896	shall constitute a part of the timeshare instrument.
1897	(VI) For owners’ associations holding property in a
1898	timeshare plan located outside this state, the owners’
1899	association holding such property shall be deemed in compliance
1900	with the requirements of this subparagraph if such owners’
1901	association is authorized and qualified to conduct owners’
1902	association business under the laws of such jurisdiction and the
1903	agreement or law governing such arrangement provides
1904	substantially similar protections for the purchaser as are
1905	required in this subparagraph for owners’ associations holding
1906	property in a timeshare plan in this state.
1907	(VII) The owners’ association shall have appointed a
1908	registered agent in this state for service of process. In the
1909	event such a registered agent is not appointed, service of
1910	process may be made pursuant to s. 721.265.
1911	6. Personal property subject to certificate of title.--If
1912	any personal property that is an accommodation or facility of a
1913	timeshare plan is subject to a certificate of title in this
1914	state pursuant to chapter 319 or chapter 328, the following
1915	notation must be made on such certificate of title pursuant to
1916	s. 319.27(1) or s. 328.15(1):
1917
1918	The further transfer or encumbrance of the property subject to
1919	this certificate of title, or any lien or encumbrance thereon,
1920	is subject to the requirements of section 721.17, Florida
1921	Statutes, and the transferee or lienor agrees to be bound by all
1922	of the obligations set forth therein.
1923
1924	7.4.If the developer has previously provided a certified
1925	copy of any document required by this paragraph, she or he may
1926	for all subsequent disbursements substitute a true and correct
1927	copy of the certified copy, provided no changes to the document
1928	have been made or are required to be made.
1929	8. In the event that use rights relating to an
1930	accommodation or facility are transferred into a trust pursuant
1931	to subparagraph 4. or into an owners’ association pursuant to
1932	subparagraph 5., all other interestholders, including the owner
1933	of the underlying fee or underlying personal property, must
1934	execute a nondisturbance and notice to creditors instrument
1935	pursuant to subsection (3).
1936	(d) Substitution of other assurances for escrowed funds or
1937	other property.--Funds or other property escrowed as provided in
1938	this section may be released from escrow to or on the order of
1939	the developer upon acceptance by the director of the division of
1940	other assurances pursuant to subsection (5) as a substitute for
1941	such escrowed funds or other property. The amount of escrowed
1942	funds or other property that may be released pursuant to this
1943	paragraph shall be equal to or less than the face amount of the
1944	assurances accepted by the director from time to time.
1945	(3) NONDISTURBANCE AND NOTICE TO CREDITORS
1946	INSTRUMENT.--The nondisturbance and notice to creditors
1947	instrument, when required, shall be executed by each
1948	interestholder.
1949	(a)The instrument shall state that:
1950	1.(a)If the party seeking enforcement is not in default
1951	of its obligations, the instrument may be enforced by both the
1952	seller and any purchaser of the timeshare plan;
1953	2.(b)The instrument shall be effective as between the
1954	timeshare purchaser and interestholder despite any rejection or
1955	cancellation of the contract between the timeshare purchaser and
1956	developer as a result of bankruptcy proceedings of the
1957	developer; and
1958	3.(c) So long as a purchaser remains in good standing with
1959	respect to her or his obligations under the timeshare
1960	instrument, including making all payments to the managing entity
1961	required by the timeshare instrument with respect to the annual
1962	common expenses of the timesharethe interestholder has any
1963	interest in the accommodations, facilities, or plan, thenthe
1964	interestholder will fully honor all the rights of such purchaser
1965	relating to the subject accommodation or facility as reflected
1966	timeshare purchasers in and to the timeshare instrumentplan,
1967	will honor the purchasers' right to cancel their contracts and
1968	receive appropriate refunds, and will comply with all other
1969	requirements of this chapter and rules promulgated hereunder.
1970
1971	The instrument shall contain language sufficient to provide
1972	subsequent creditors of the developer and interestholders with
1973	notice of the existence of the timeshare plan and of the rights
1974	of purchasers and shall serve to protect the interest of the
1975	timeshare purchasers from any claims of subsequent creditors.
1976	(b) Real property timeshare plans.--For real property
1977	timeshare plans, the instrument shall be recorded in the public
1978	records of the county in which the subject accommodations or
1979	facilities are located.
1980	(c) Personal property timeshare plans.--For personal
1981	property timeshare plans, the instrument shall be included
1982	within or attached as an exhibit to a security agreement or
1983	other agreement executed by the interestholder. Constructive
1984	notice of such security agreement or other agreement shall be
1985	filed in the manner prescribed by chapter 679 or other
1986	applicable law.
1987	(d) A copy of the recorded or filednondisturbance and
1988	notice to creditors instrument, when required, shall be provided
1989	to each timeshare purchaser at the time the purchase contract is
1990	executed.
1991	(4) In lieu of any escrow provisions required by this act,
1992	the director of the division shall have the discretion to permit
1993	deposit of the funds or other property in an escrow account as
1994	required by the jurisdiction in which the sale took place.
1995	(5)(a) In lieu of any escrows required by this section,
1996	the director of the division shall have the discretion to accept
1997	other assurances, including, but not limited to, a surety bond
1998	issued by a company authorized and licensed to do business in
1999	this state as surety or an irrevocable letter of credit in an
2000	amount equal to the escrow requirements of this section.
2001	(b) Notwithstanding anything in chapter 718 or chapter 719
2002	to the contrary, the director of the division shall have the
2003	discretion to accept other assurances pursuant to paragraph (a)
2004	in lieu of any requirement that completion of construction of
2005	one or more accommodations or facilities of a timeshare plan be
2006	accomplished prior to closing.
2007	(c) In lieu of a nondisturbance and notice to creditors
2008	instrument, when such an instrument is otherwise required by
2009	this section, the director of the division shall have the
2010	discretion to accept alternate means of protecting the
2011	continuing rights of purchasers in and to the subject
2012	accommodations or facilities of the timeshare plan as and for
2013	the term described in the timeshare instrument, and of providing
2014	effective constructive notice of such continuing purchaser
2015	rights to subsequent owners of the accommodations or facilities
2016	and to subsequent creditors of the affected interestholder.
2017	(d) In lieu of the requirements in s.
2018	721.08(2)(c)3.e.(III), the director of the division shall have
2019	the discretion to accept alternate means of protecting the use
2020	rights of purchasers in the subject accommodations and
2021	facilities of the timeshare plan against unfiled and inferior
2022	claims.
2023	(6) An escrow agent holding funds escrowed pursuant to
2024	this section may invest such escrowed funds in securities of the
2025	United States Government, or any agency thereof, or in savings
2026	or time deposits in institutions insured by an agency of the
2027	United States Government. The right to receive the interest
2028	generated by any such investments shall be paid to the party to
2029	whom the escrowed funds or otherproperty are paid unless
2030	otherwise specified by contract.
2031	(7) Each escrow agent shall maintain separate books and
2032	records for each timeshare plan and shall maintain such books
2033	and records in accordance with good accounting practices.
2034	(8) An escrow agent holding escrowed funds pursuant to
2035	this chapter that have not been claimed for a period of 5 years
2036	after the date of deposit shall make at least one reasonable
2037	attempt to deliver such unclaimed funds to the purchaser who
2038	submitted such funds to escrow. In making such attempt, an
2039	escrow agent is entitled to rely on a purchaser's last known
2040	address as set forth in the books and records of the escrow
2041	agent and is not required to conduct any further search for the
2042	purchaser. If an escrow agent's attempt to deliver unclaimed
2043	funds to any purchaser is unsuccessful, the escrow agent may
2044	deliver such unclaimed funds to the division and the division
2045	shall deposit such unclaimed funds in the Division of Florida
2046	Land Sales, Condominiums, and Mobile Homes Trust Fund, 30 days
2047	after giving notice in a publication of general circulation in
2048	the county in which the timeshare property containing the
2049	purchaser's timeshare interest is located. The purchaser may
2050	claim the same at any time prior to the delivery of such funds
2051	to the division. After delivery of such funds to the division,
2052	the purchaser shall have no more rights to the unclaimed funds.
2053	The escrow agent shall not be liable for any claims from any
2054	party arising out of the escrow agent's delivery of the
2055	unclaimed funds to the division pursuant to this section.
2056	(9) For each transfer of the legal title to a timeshare
2057	estate by a developer, the developer shall deliver an instrument
2058	evidencing such transfer to the purchaser or to a title
2059	insurance agent or the clerk of the court for recording. For
2060	each transfer of the legal title to a personal property
2061	timeshare interest by a developer, the developer shall deliver
2062	an instrument evidencing such transfer to the purchaser subject
2063	to the provisions of this section.
2064	(10)(a)Any developer, seller, or escrow agent who
2065	intentionally fails to comply with the provisions of this
2066	section concerning the establishment of an escrow account,
2067	deposits of funds into escrow, and withdrawal therefrom is
2068	guilty of a felony of the third degree, punishable as provided
2069	in s. 775.082, s. 775.083, or s. 775.084, or the successor
2070	thereof. The failure to establish an escrow account or to place
2071	funds therein as required in this section is prima facie
2072	evidence of an intentional and purposeful violation of this
2073	section.
2074	(b) Any developer, interestholder, trustee, or officer or
2075	director of an owners’ association who intentionally fails to
2076	comply with the provisions of this section concerning the
2077	establishment of a trust or owners’ association, conveyances of
2078	property into the trust or owners’ association, and conveyances
2079	or encumbrances of trust or owners’ association property is
2080	guilty of a felony of the third degree, punishable as provided
2081	in s. 775.082, s. 775.083, or s. 775.084, or the successor
2082	thereof. The failure to establish a trust or owners’
2083	association, or to transfer property into the trust or owners’
2084	association, or the failure of a trustee or officer or director
2085	of an owners’ association to comply with the trust agreement,
2086	articles of incorporation, or bylaws with respect to conveyances
2087	or encumbrances of trust or owners’ association property, as
2088	required by this section, is prima facie evidence of an
2089	intentional and purposeful violation of this section.
2090	Section 9. Paragraphs (a) and (d) of subsection (1),
2091	paragraph (c) of subsection (2), and paragraph (c) of subsection
2092	(3) of section 721.09, Florida Statutes, are amended to read:
2093	721.09 Reservation agreements; escrows.--
2094	(1)(a) Prior to filing the filedregisteredpublic
2095	offering statement with the division, a seller shall not offer a
2096	timeshare plan for sale but may accept reservation deposits and
2097	advertise the reservation deposit program upon approval by the
2098	division of a fully executed escrow agreement and reservation
2099	agreement properly filed with the division.
2100	(d) A seller who has filed a reservation agreement and an
2101	escrow agreement under this section may advertise the
2102	reservation agreement program if the advertising material meets
2103	the following requirements:
2104	1. The seller complies with the provisions of s. 721.11
2105	with respect to such advertising material.
2106	2. The advertising material is limited to a general
2107	description of the proposed timeshare plan, including, but not
2108	limited to, a general description of the type, number, and size
2109	of accommodations and facilities and the name of the proposed
2110	timeshare plan.
2111	3. The advertising material contains a statement that the
2112	advertising material is being distributed in connection with an
2113	approved reservation agreement filing only and that the seller
2114	cannot offer an interest in the timeshare plan for sale until a
2115	filedregisteredpublic offering statement has been filed with
2116	the division under this chapter.
2117	(2) Each executed reservation agreement shall be signed by
2118	the developer and shall contain the following:
2119	(c) A statement of the obligation of the developer to file
2120	a filedregisteredpublic offering statement with the division
2121	prior to entering into binding contracts.
2122	(3)
2123	(c) The escrow agent may invest the escrowed funds in
2124	securities of the United States Government, or any agency
2125	thereof, or in savings or time deposits in institutions insured
2126	by an agency of the United States Government. The interest
2127	generated by any such investments shall be payable to the party
2128	entitled to receive the escrowed funds or otherproperty.
2129	Section 10. Paragraph (a) of subsection (1), paragraphs
2130	(b) and (e) of subsection (6), and subsections (7), (8), and (9)
2131	of section 721.11, Florida Statutes, are amended to read:
2132	721.11 Advertising materials; oral statements.--
2133	(1)(a) A developer may fileAll advertising material must
2134	be filed with the division for reviewby the developer prior to
2135	use. At the request of the developer, The division shall review
2136	anythe advertising material filed for review by the developer
2137	and notify the developer of any deficiencies within 10 days
2138	after the filing. If the developer corrects the deficiencies or
2139	if there are no deficiencies, the division shall notify the
2140	developer of its approval of the advertising materials.
2141	Notwithstanding anything to the contrary contained in this
2142	subsection, so long as the developer uses advertising materials
2143	approved by the division, following the developer's request for
2144	a review, the developer shall not be liable for any violation of
2145	this section or s. 721.111 with respect to such advertising
2146	materials.
2147	(6) Failure to provide cancellation rights or disclosures
2148	as required by this subsection in connection with the sale of a
2149	regulated short-term product constitutes misrepresentation in
2150	accordance with paragraph (4)(a). Any agreement relating to the
2151	sale of a regulated short-term product must be regulated as
2152	advertising material and is subject to the following:
2153	(b) A purchaser of a regulated short-term product has the
2154	right to cancel the agreement until midnight of the 10th calendar
2155	day following the execution date of the agreement. The right of
2156	cancellation may not be waived by the prospective purchaser or
2157	by any other person on behalf of the prospective purchaser.
2158	Notice of cancellation must be given in the same manner
2159	prescribed for giving notice of cancellation under s. 721.10(2).
2160	If the prospective purchaser gives a valid notice of
2161	cancellation or is otherwise entitled to cancel the sale, the
2162	funds or otherproperty received from or on behalf of the
2163	prospective purchaser, or the proceeds thereof, must be returned
2164	to the prospective purchaser. Such refund must be made in the
2165	same manner prescribed for refunds under s. 721.10.
2166	(e) If the seller provides the purchaser with the right to
2167	cancel the purchase of a regulated short-term product at any
2168	time up to 7 days prior to the purchaser's reserved use of the
2169	accommodations, but in no event less than 10 days, and if the
2170	seller refunds the total amount of all payments made by the
2171	purchaser reduced by the proportion of any benefits the
2172	purchaser has actually received prior to the effective date of
2173	the cancellation, the specific value of which has been agreed to
2174	between the purchaser and the seller, the short-term product
2175	offer shall be exempt from the requirements of paragraphs (b),
2176	(c), and (d). An agreement relating to the sale of the regulated
2177	short-term product made pursuant to this paragraph must contain
2178	a statement setting forth the cancellation and refund rights of
2179	the prospective purchaser in a manner that is consistent with
2180	this section and s. 721.10, including a description of the
2181	length of the cancellation right, a statement that the
2182	purchaser's intent to cancel must be in writing and sent to the
2183	seller at a specified address, a statement that the notice of
2184	cancellation is effective upon the date sent, and a statement
2185	that any attempt to waive the cancellation right is unlawful.
2186	The right of cancellation provided to the purchaser pursuant to
2187	this paragraph may not be waived by the prospective purchaser or
2188	by any other person on behalf of the prospective purchaser.
2189	Notice of cancellation must be given in the same manner
2190	prescribed for giving notice of cancellation pursuant to s.
2191	721.10(2). If the prospective purchaser gives a valid notice of
2192	cancellation, or is otherwise entitled to cancel the sale, the
2193	funds or otherproperty received from or on behalf of the
2194	prospective purchaser, or the proceeds thereof, shall be
2195	returned to the prospective purchaser. Such refund shall be made
2196	in the manner prescribed for refunds under s. 721.10.
2197	(7) Notwithstanding the provisions of s. 721.05(7)(6)(b),
2198	a seller may portray possible accommodations or facilities to
2199	prospective purchasers in advertising material, or a purchaser
2200	public offering statement, without such accommodations or
2201	facilities being available for use by purchasers so long as the
2202	advertising material or purchaser public offering statement
2203	complies with the provisions of subsection (4).
2204	(8) Notwithstanding the provisions of s. 721.05(7)(6)(b),
2205	a developer may portray possible accommodations or facilities to
2206	prospective purchasers by disseminating oral or written
2207	statements regarding same to broadcast or print media with no
2208	obligation on the developer's part to actually construct such
2209	accommodations or facilities or to file such accommodations or
2210	facilities with the division, but only so long as such oral or
2211	written statements are not considered advertising material
2212	pursuant to paragraph (3)(e).
2213	(9) Notwithstanding the provisions of s. 721.05(7)(6)(b),
2214	a seller of a multisite timeshare plan may portray a possible
2215	component site to prospective purchasers with no accommodations
2216	or facilities located at such component site being available for
2217	use by purchasers so long as the seller satisfies the following
2218	requirements:
2219	(a) A developer of a multisite timeshare plan may
2220	disseminate oral or written statements to broadcast or print
2221	media describing a possible component site with no obligation on
2222	the developer's part to actually add such component site to the
2223	multisite timeshare plan or to amend the developer's filing with
2224	the division, but only so long as such oral or written
2225	statements are not considered advertising material pursuant to
2226	paragraph (3)(e).
2227	(b) A seller may make representations to purchasers in
2228	advertising material or in a purchaser public offering statement
2229	regarding the possible accommodations and facilities of a
2230	possible component site without such accommodations or
2231	facilities being available for use by purchasers so long as the
2232	advertising material or purchaser public offering statement
2233	complies with the provisions of subsection (4).
2234	(c) In the event a seller makes any of the representations
2235	permitted by paragraph (b), the purchase agreement must contain
2236	the following conspicuous disclosure unless and until such time
2237	as the developer has committed itself in the timeshare
2238	instrument to adding the possible component site to the
2239	multisite timeshare plan, at which time the seller may portray
2240	the component site pursuant to the timeshare instrument without
2241	restriction:
2242
2243	[Description of possible component site] is only a possible
2244	component site which may never be added to the multisite
2245	timeshare plan (or multisite vacation ownership plan or
2246	multisite vacation plan or vacation club). Do not purchase an
2247	interest in the multisite timeshare plan (or multisite vacation
2248	ownership plan or multisite vacation plan or vacation club) in
2249	reliance upon the addition of this component site.
2250	(d) Notwithstanding anything contained in this chapter to
2251	the contrary, a developer or managing entity may communicate
2252	with existing purchasers regarding possible component sites
2253	without restriction, so long as all oral and written statements
2254	made to existing purchasers pursuant to this subsection comply
2255	with the provisions of subsection (4).
2256	(e) Any violation of this subsection by a developer,
2257	seller, or managing entity shall constitute a violation of this
2258	chapter. Any violation of this subsection with respect to a
2259	purchaser whose purchase has not yet closed shall be deemed to
2260	provide that purchaser with a new 10-day voidability period.
2261	Section 11. Subsection (1) of section 721.12, Florida
2262	Statutes, is amended to read:
2263	721.12 Recordkeeping by seller.--Each seller of a
2264	timeshare plan shall maintain among its business records the
2265	following:
2266	(1) A copy of each contract for the sale of a timeshare
2267	interest, which contract has not been canceled. If a timeshare
2268	estate is being sold, the seller is required to retain a copy of
2269	the contract only until a deed of conveyance, agreement for
2270	deed, or lease is recorded in the office of the clerk of the
2271	circuit court in the county wherein the plan is located. If a
2272	personal property timeshare plan is being sold, the seller is
2273	required to retain a copy of the contract only until a
2274	certificate of transfer, agreement for transfer, lease, or other
2275	instrument of transfer that fully complies with s. 721.08 is
2276	delivered to the purchaser.
2277	Section 12. Paragraphs (a) and (b) of subsection (1),
2278	paragraph (b) of subsection (2), paragraphs (c), (d), and (e) of
2279	subsection (3), paragraph (g) of subsection (6), and subsections
2280	(4) and (8) of section 721.13, Florida Statutes, are amended,
2281	subsection (9) is renumbered as subsection (10), and new
2282	subsections (9) and (11) are added to said section, to read:
2283	721.13 Management.--
2284	(1)(a) For each timeshare plan, the developer shall
2285	provide for a managing entity, which shall be either the
2286	developer, a separate manager or management firm, or an owners'
2287	association. Any owners' association shall be created prior to
2288	the first closingrecording of the sale of a timeshare interest
2289	instrument.
2290	(b)1. With respect to a timeshare plan which is also
2291	regulated under chapter 718 or chapter 719, or which contains a
2292	mandatory owners' association, the board of administration of
2293	the owners'association shall be considered the managing entity
2294	of the timeshare plan.
2295	2. During any period of time in which such owners’
2296	association has entered into a contract with a manager or
2297	management firm to provide some or all of the management
2298	services to the timeshare plan, both the board of administration
2299	and the manager or management firm shall be considered the
2300	managing entity of the timeshare plan and shall be jointly and
2301	severally responsible for the faithful discharge of the duties
2302	of the managing entity.
2303	3. An owners' association which is the managing entity of
2304	a timeshare plan that includes condominium units or cooperative
2305	units shall not be considered a condominium association pursuant
2306	to the provisions of chapter 718 or a cooperative association
2307	pursuant to the provisions of chapter 719, unless such owners'
2308	association also operates the entire condominium pursuant to s.
2309	718.111 or the entire cooperative pursuant to s. 719.104.
2310	(2)
2311	(b) The managing entity shall invest the operating and
2312	reserve funds of the timeshare plan in accordance with s.
2313	518.11(1); however, the managing entity shall give safety of
2314	capital greater weight than production of income. In no event
2315	shall the managing entity invest timeshare plan funds with a
2316	developer or with any entity that is not independent of any
2317	developer or any managing entity within the meaning of s.
2318	721.05(20)(18), and in no event shall the managing entity invest
2319	timeshare plan funds in notes and mortgages related in any way
2320	to the timeshare plan.
2321	(3) The duties of the managing entity include, but are not
2322	limited to:
2323	(c)1. Providing each year to all purchasers an itemized
2324	annual budget which shall include all estimated revenues and
2325	expenses. The budget shall be in the form required by s.
2326	721.07(5)(u). The budgetandshall be the final budget adopted
2327	by the managing entity for the current fiscal year. The final
2328	adopted budget is not required to be delivered if the managing
2329	entity has previously delivered a proposed annual budget for the
2330	current fiscal year to purchasers in accordance with chapter 718
2331	or chapter 719, and the managing entity includes a description
2332	of any changes in the adopted budget with the assessment notice
2333	and a disclosure regarding the purchasers’ right to receive a
2334	copy of the adopted budget if desired.The budget shall contain,
2335	as a footnote or otherwise, any related party transaction
2336	disclosures or notes which appear in the audited financial
2337	statements of the managing entity for the previous budget year
2338	as required by paragraph (e). A copy of the final budget shall
2339	be filed with the division for reviewwithin 30 days after the
2340	beginning of each fiscal year together with a statement of the
2341	number of periods of 7-day annual use availability that exist
2342	within the timeshare plan, including those periods filed for
2343	sale by the developer but not yet committed to the timeshare
2344	plan, for which annual fees are required to be paid to the
2345	division under s. 721.27.
2346	2. Notwithstanding anything contained in chapter 718 or
2347	chapter 719 to the contrary, the board of administration of an
2348	owners' association which serves as the managing entity may from
2349	time to time reallocate reserves for deferred maintenance and
2350	capital expenditures required by s. 721.07(5)(u)3.a.(XI) from
2351	any deferred maintenance or capital expenditure reserve account
2352	to any other deferred maintenance or capital expenditure reserve
2353	account or accounts in its discretion without the consent of
2354	purchasers of the timeshare plan. Funds in any deferred
2355	maintenance or capital expenditure reserve account may not be
2356	transferred to any operating account without the consent of a
2357	majority of the purchasers of the timeshare plan. The managing
2358	entity may from time to time transfer excess funds in any
2359	operating account to any deferred maintenance or capital
2360	expenditure reserve account without the vote or approval of
2361	purchasers of the timeshare plan. In the event any amount of
2362	reserves for accommodations and facilities of a timeshare plan
2363	containing timeshare licenses or personal property timeshare
2364	interests exists at the end of the term of the timeshare plan,
2365	such reserves shall be refunded to purchasers on a pro rata
2366	basis.
2367	(d)1. Maintenance of all books and records concerning the
2368	timeshare plan so that all such books and records are reasonably
2369	available for inspection by any purchaser or the authorized
2370	agent of such purchaser. For purposes of this subparagraph, the
2371	books and records of the timeshare plan shall be considered
2372	"reasonably available" if copies of the requested portions are
2373	delivered to the purchaser or the purchaser's agent within 7
2374	days afterofthe date the managing entity receives a written
2375	request for the records signed by the purchaser. The managing
2376	entity may charge the purchaser a reasonable fee for copying the
2377	requested information not to exceed 25 cents per page. However,
2378	any purchaser or agent of such purchaser shall be permitted to
2379	personally inspect and examine the books and records wherever
2380	located at any reasonable time, under reasonable conditions, and
2381	under the supervision of the custodian of those records. The
2382	custodian shall supply copies of the records where requested and
2383	upon payment of the copying fee. No fees other than those set
2384	forth in this section may be charged for the providing of,
2385	inspection, or examination of books and records. All books and
2386	financial records of the timeshare plan must be maintained in
2387	accordance with generally accepted accounting practices.
2388	2. If the books and records of the timeshare plan are not
2389	maintained on the premises of the accommodations and facilities
2390	of the timeshare plan, the managing entity shall inform the
2391	division in writing of the location of the books and records and
2392	the name and address of the person who acts as custodian of the
2393	books and records at that location. In the event that the
2394	location of the books and records changes, the managing entity
2395	shall notify the division of the change in location and the name
2396	and address of the new custodian within 30 days afterofthe
2397	date the books and records are moved. The purchasers shall be
2398	notified of the location of the books and records and the name
2399	and address of the custodian in the copy of the annual budget
2400	provided to them pursuant to paragraph (c).
2401	3. The division is authorized to adopt rules which specify
2402	those items and matters that shall be included in the books and
2403	records of the timeshare plan and which specify procedures to be
2404	followed in requesting and delivering copies of the books and
2405	records.
2406	4. Notwithstanding any provision of chapter 718 or chapter
2407	719 to the contrary, the managing entity may not furnish the
2408	name, address, or electronic mailaddress of any purchaser to
2409	any other purchaser or authorized agent thereof unless the
2410	purchaser whose name,and address, or electronic mail address is
2411	arerequested first approves the disclosure in writing.
2412	(e) Arranging for an annual audit of the financial
2413	statements of the timeshare plan by a certified public
2414	accountant licensed by the Board of Accountancy of the
2415	Department of Business and Professional Regulation, in
2416	accordance with generally accepted auditing standards as defined
2417	by the rules of the Board of Accountancy of the Department of
2418	Business and Professional Regulation. The financial statements
2419	required by this section must be prepared on an accrual basis
2420	using fund accounting, and must be presented in accordance with
2421	generally accepted accounting principles. A copy of the audited
2422	financial statements must be filed with the division for review
2423	and forwarded to the board of directors and officers of the
2424	owners' association, if one exists, no later than 5 calendar
2425	months after the end of the timeshare plan's fiscal year. If no
2426	owners' association exists, each purchaser must be notified, no
2427	later than 5 months after the end of the timeshare plan's fiscal
2428	year, that a copy of the audited financial statements is
2429	available upon request to the managing entity. Notwithstanding
2430	any requirement of s. 718.111(13) or s. 719.104(4), the audited
2431	financial statements required by this section are the only
2432	annual financial reporting requirements for timeshare
2433	condominiums or timeshare cooperatives.
2434	(4) The managing entity shall maintain among its records
2435	and provide to the division upon request a complete list of the
2436	names and addresses of all purchasers and owners of timeshare
2437	units in the timeshare plan. The managing entity shall update
2438	this list no less frequently than quarterly. Pursuant to
2439	paragraph (3)(d), the managing entity may not publish this
2440	owner's list or provide a copy of it to any purchaser or to any
2441	third party other than the division. However, the managing
2442	entity shall to those persons listed on the owner's list
2443	materials provided by any purchaser, upon the written request of
2444	that purchaser, if the purpose of the mailing is to advance
2445	legitimate owners'association business, such as a proxy
2446	solicitation for any purpose, including the recall of one or
2447	more board members elected by the owners or the discharge of the
2448	manager or management firm. The use of any proxies solicited in
2449	this manner must comply with the provisions of the timeshare
2450	instrument and this chapter. A mailing requested for the purpose
2451	of advancing legitimate owners'association business shall occur
2452	within 30 days after receipt of a request from a purchaser. The
2453	board of administration of the owners’association shall be
2454	responsible for determining the appropriateness of any mailing
2455	requested pursuant to this subsection. The purchaser who
2456	requests the mailing must reimburse the owners'association in
2457	advance for the owners'association's actual costs in performing
2458	the mailing. It shall be a violation of this chapter and, if
2459	applicable, of part VIII of chapter 468, for the board of
2460	administration or the manager or management firm to refuse to
2461	mail any material requested by the purchaser to be mailed,
2462	provided the sole purpose of the materials is to advance
2463	legitimate owners'association business. If the purpose of the
2464	mailing is a proxy solicitation to recall one or more board
2465	members elected by the owners or to discharge the manager or
2466	management firm and the managing entity does not mail the
2467	materials within 30 days after receipt of a request from a
2468	purchaser, the circuit court in the county where the timeshare
2469	plan is located may, upon application from the requesting
2470	purchaser, summarily order the mailing of the materials solely
2471	related to the recall of one or more board members elected by
2472	the owners or the discharge of the manager or management firm.
2473	The court shall dispose of an application on an expedited basis.
2474	In the event of such an order, the court may order the managing
2475	entity to pay the purchaser's costs, including attorney's fees
2476	reasonably incurred to enforce the purchaser's rights, unless
2477	the managing entity can prove it refused the mailing in good
2478	faith because of a reasonable basis for doubt about the
2479	legitimacy of the mailing.
2480	(6)
2481	(g) A managing entity shall have breached its fiduciary
2482	duty described in subsection (2) in the event it enforces the
2483	denial of use pursuant to paragraph (b) against any one
2484	purchaser or group of purchasers without similarly enforcing it
2485	against all purchasers, including all developers and owners of
2486	the underlying fee or underlying personal property; however, a
2487	managing entity shall not be required to solicit rentals
2488	pursuant to paragraph (f) for every delinquent purchaser. A
2489	managing entity shall also have breached its fiduciary duty in
2490	the event an error in the books and records of the timeshare
2491	plan results in a denial of use pursuant to this subsection of
2492	any purchaser who is not, in fact, delinquent. In addition to
2493	any remedies otherwise available to purchasers of the timeshare
2494	plan arising from such breaches of fiduciary duty, such breach
2495	shall also constitute a violation of this chapter. In addition,
2496	any purchaser receiving a notice of delinquency pursuant to
2497	paragraph (b), or any third party claiming under such purchaser
2498	pursuant to paragraph (b), may immediately bring an action for
2499	injunctive or declaratory relief against the managing entity
2500	seeking to have the notice invalidated on the grounds that the
2501	purchaser is not, in fact, delinquent, that the managing entity
2502	failed to follow the procedures prescribed by this section, or
2503	on any other available grounds. The prevailing party in any such
2504	action shall be entitled to recover his or her reasonable
2505	attorney's fees from the losing party.
2506	(8) Notwithstanding anything to the contrary in s.
2507	718.110, s. 718.113, s. 718.114, or s. 719.1055, the board of
2508	administration of any owners' association that operates a
2509	timeshare condominium pursuant to s. 718.111, or a timeshare
2510	cooperative pursuant to s. 719.104, shall have the power to make
2511	material alterations or substantial additions to the
2512	accommodations or facilities of such timeshare condominium or
2513	timeshare cooperative without the approval of the owners'
2514	association. However, if the timeshare condominium or timeshare
2515	cooperative contains any residential units that are not subject
2516	to the timeshare plan, such action by the board of
2517	administration must be approved by a majority of the owners of
2518	such residential units. Unless otherwise provided in the
2519	timeshare instrument as originally recorded, no such amendment
2520	may change the configuration or size of any accommodation in any
2521	material fashion, or change the proportion or percentage by
2522	which a member of the owners’association shares the common
2523	expenses, unless the record owners of the affected units or
2524	timeshare interests and all record owners of liens on the
2525	affected units or timeshare interests join in the execution of
2526	the amendment.
2527	(9) All notices or other information sent by a board of
2528	administration of an owners’ association may be delivered to a
2529	purchaser by electronic mail, provided that the purchaser first
2530	consents electronically to the use of electronic mail for notice
2531	purposes in a manner that reasonably demonstrates that the
2532	purchaser has the ability to access the notice by electronic
2533	mail. Proxies or written consents on votes of any owners’
2534	association may be received by electronic mail, shall have legal
2535	effect, and may be utilized for votes of an owners’ association,
2536	provided that the electronic signature is authenticated through
2537	use of a password, cryptography software, or other reasonable
2538	means and that proof of such authentication is made available to
2539	the board of directors.
2540	(10)(9)Any failure of the managing entity to faithfully
2541	discharge the fiduciary duty to purchasers imposed by this
2542	section or to otherwise comply with the provisions of this
2543	section shall be a violation of this chapter and of part VIII of
2544	chapter 468.
2545	(11) Notwithstanding the other provisions of this section,
2546	personal property timeshare plans are only subject to the
2547	provisions of subsections (1)(a)-(d), (2)(a), (3)(a)-(h), (5),
2548	(6), (9), and (10).
2549	Section 13. Subsection (4) is added to section 721.14,
2550	Florida Statutes, to read:
2551	721.14 Discharge of managing entity.--
2552	(4) This section shall not apply to personal property
2553	timeshare plans.
2554	Section 14. Paragraph (c) of subsection (2) of section
2555	721.15, Florida Statutes, is amended, and subsection (10) is
2556	added to said section, to read:
2557	721.15 Assessments for common expenses.--
2558	(2)
2559	(c) For the purpose of calculating the obligation of a
2560	developer under a guarantee pursuant to paragraph (b),
2561	depreciation expenses related to real property shall be excluded
2562	from common expenses incurred during the guarantee period,
2563	except that for real property that is used for the production of
2564	fees, revenues, or other income, depreciation expenses shall be
2565	excluded only to the extent that they exceed the net income from
2566	the production of such fees, revenues, or other income.
2567	(10) This section shall not apply to personal property
2568	timeshare plans.
2569	Section 15. Subsection (6) is added to section 721.16,
2570	Florida Statutes, to read:
2571	721.16 Liens for overdue assessments; liens for labor
2572	performed on, or materials furnished to, a timeshare unit.--
2573	(6) This section shall not apply to personal property
2574	timeshare plans.
2575	Section 16. Section 721.17, Florida Statutes, is amended
2576	to read:
2577	721.17 Transfer of interest.--Except in the case of a
2578	timeshare plan subject to the provisions of chapter 718 or
2579	chapter 719, no developer,or owner of the underlying fee, or
2580	owner of the underlying personal propertyshall sell, lease,
2581	assign, mortgage, or otherwise transfer his or her interest in
2582	the accommodations and facilities of the timeshare plan except
2583	by an instrument evidencing the transfer recorded in the public
2584	records of the county in which such accommodations and
2585	facilities are located, or, with respect to personal property
2586	timeshare plans, in full compliance with s. 721.08. The
2587	instrument shall be executed by both the transferor and
2588	transferee and shall state:
2589	(1) That its provisions are intended to protect the rights
2590	of all purchasers of the plan.
2591	(2) That its terms may be enforced by any prior or
2592	subsequent timeshare purchaser so long as that purchaser is not
2593	in default of his or her obligations.
2594	(3) That so long as a purchaser remains in good standing
2595	with respect to her or his obligations under the timeshare
2596	instrument, including making all payments to the managing entity
2597	required by the timeshare instrument with respect to the annual
2598	common expenses of the timeshare plan, the transferee shallwill
2599	fully honor allthe rights of such purchaser relating to the
2600	subject accommodation or facility as reflectedthe purchasers to
2601	occupy and use the accommodations and facilities as provided in
2602	their original contracts and the timeshare instrument
2603	instruments.
2604	(4) That the transferee will fully honor all rights of
2605	timeshare purchasers to cancel their contracts and receive
2606	appropriate refunds.
2607	(5) That the obligations of the transferee under such
2608	instrument will continue to exist despite any cancellation or
2609	rejection of the contracts between the developer and purchaser
2610	arising out of bankruptcy proceedings.
2611
2612	Should any transfer of the interest of the developer,orowner
2613	of the underlying fee, or owner of the underlying propertyoccur
2614	in a manner which is not in compliance with this section, the
2615	terms set forth in this section shall be presumed to be a part
2616	of the transfer and shall be deemed to be included in the
2617	instrument of transfer. Notice shall be mailed to each purchaser
2618	of record within 30 days afterofthe transfer unless such
2619	transfer does not affect the purchaser's rights in or use of the
2620	timeshare plan. Persons who hold mortgages or lienson the
2621	property constituting a timeshare plan before the filed
2622	registeredpublic offering statement of such plan is approved by
2623	the division shall not be considered transferees for the
2624	purposes of this section.
2625	Section 17. Section 721.18, Florida Statutes, is amended
2626	to read:
2627	721.18 Exchange programs; filing of information and other
2628	materials; filing fees; unlawful acts in connection with an
2629	exchange program.--
2630	(1) If a purchaser is offered the opportunity to subscribe
2631	to an exchange program, the seller shall deliver to the
2632	purchaser, together with the purchaser public offering
2633	statement, and prior to the offering or execution of any
2634	contract between the purchaser and the company offering the
2635	exchange program, written information regarding such exchange
2636	program; or, if the exchange company is dealing directly with
2637	the purchaser, the exchange company shall deliver to the
2638	purchaser, prior to the initial offering or execution of any
2639	contract between the purchaser and the company offering the
2640	exchange program, written information regarding such exchange
2641	program. In either case, the purchaser shall certify in writing
2642	to the receipt of such information. Such information shall
2643	include, but is not limited to, the following information, the
2644	form and substance of which shall first be approved by the
2645	division in accordance with subsection (2):
2646	(a) The name and address of the exchange company.
2647	(b) The names of all officers, directors, and shareholders
2648	of the exchange company.
2649	(c) Whether the exchange company or any of its officers or
2650	directors has any legal or beneficial interest in any developer,
2651	seller, or managing entity for any timeshare plan participating
2652	in the exchange program and, if so, the name and location of the
2653	timeshare plan and the nature of the interest.
2654	(d) Unless otherwise stated, a statement that the
2655	purchaser's contract with the exchange company is a contract
2656	separate and distinct from the purchaser's contract with the
2657	seller of the timeshare plan.
2658	(e) Whether the purchaser's participation in the exchange
2659	program is dependent upon the continued affiliation of the
2660	timeshare plan with the exchange program.
2661	(f) A statement thatWhetherthe purchaser's participation
2662	in the exchange program is voluntary. This statement is not
2663	required to be given by the seller or managing entity of a
2664	multisite timeshare plan to purchasers in the multisite
2665	timeshare plan.
2666	(g) A complete and accurate description of the terms and
2667	conditions of the purchaser's contractual relationship with the
2668	exchange program and the procedure by which changes thereto may
2669	be made.
2670	(h) A complete and accurate description of the procedure
2671	to qualify for and effectuate exchanges.
2672	(i) A complete and accurate description of all
2673	limitations, restrictions, or priorities employed in the
2674	operation of the exchange program, including, but not limited
2675	to, limitations on exchanges based on seasonality, timeshare
2676	unit size, or levels of occupancy, expressed in boldfaced type,
2677	and, in the event that such limitations, restrictions, or
2678	priorities are not uniformly applied by the exchange program, a
2679	clear description of the manner in which they are applied.
2680	(j) Whether exchanges are arranged on a space-available
2681	basis and whether any guarantees of fulfillment of specific
2682	requests for exchanges are made by the exchange program.
2683	(k) Whether and under what circumstances a purchaser, in
2684	dealing with the exchange program, may lose the use and
2685	occupancy of her or his timeshare period in any properly applied
2686	for exchange without her or his being provided with substitute
2687	accommodations by the exchange program.
2688	(l) The fees or range of fees for membership or
2689	participation by purchasers in the exchange program by
2690	purchasers, including any conversion or other fees payable to
2691	third parties, a statement whether any such fees may be altered
2692	by the exchange company, and the circumstances under which
2693	alterations may be made.
2694	(m) The name and address of the site of each accommodation
2695	or facility included in the timeshare planplansparticipating
2696	in the exchange program.
2697	(n) The number of the timeshare units in each timeshare
2698	plan which are available for occupancy and which qualify for
2699	participation in the exchange program, expressed within the
2700	following numerical groupings: 1-5; 6-10; 11-20; 21-50; and 51
2701	and over.
2702	(o) The number of currently enrolled purchasers for each
2703	timeshare plan participating in the exchange program, expressed
2704	within the following numerical groupings: 1-100; 101-249; 250-
2705	499; 500-999; and 1,000 and over; and a statement of the
2706	criteria used to determine those purchasers who are currently
2707	enrolled with the exchange program.
2708	(p) The disposition made by the exchange company of
2709	timeshare periods deposited with the exchange program by
2710	purchasers enrolled in the exchange program and not used by the
2711	exchange company in effecting exchanges.
2712	(q) The following information, which shall be
2713	independently audited by a certified public accountant or
2714	accounting firm in accordance with the standards of the
2715	Accounting Standards Board of the American Institute of
2716	Certified Public Accountants and reported annually beginning no
2717	later than July 1, 1982:
2718	1. The number of purchasers currently enrolled in the
2719	exchange program.
2720	2. The number of accommodations and facilities that have
2721	current writtenaffiliation agreements with the exchange
2722	program.
2723	3. The percentage of confirmed exchanges, which is the
2724	number of exchanges confirmed by the exchange program divided by
2725	the number of exchanges properly applied for, together with a
2726	complete and accurate statement of the criteria used to
2727	determine whether an exchange request was properly applied for.
2728	4. The number of timeshare periods for which the exchange
2729	program has an outstanding obligation to provide an exchange to
2730	a purchaser who relinquished a timeshare period during the year
2731	in exchange for a timeshare period in any future year.
2732	5. The number of exchanges confirmed by the exchange
2733	program during the year.
2734	(r) A statement in boldfaced type to the effect that the
2735	percentage described in subparagraph (q)3. is a summary of the
2736	exchange requests entered with the exchange program in the
2737	period reported and that the percentage does not indicate the
2738	probabilities of a purchaser's being confirmed to any specific
2739	choice or range of choices.
2740	(2) Each exchange company offering an exchange program to
2741	purchasers in this state shall file with the division for review
2742	the information specified in subsection (1), together with any
2743	membership agreement and application between the purchaser and
2744	the exchange company,and the audit specified in subsection (1)
2745	on or before June 1 of each year. However, an exchange company
2746	shall make its initial filing at least 20 days prior to offering
2747	an exchange program to any purchaser in this state. Each filing
2748	shall be accompanied by an annual filing fee of $500. Within 20
2749	days afterofreceipt of such filing, the division shall
2750	determine whether the filing is adequate to meet the
2751	requirements of this section and shall notify the exchange
2752	company in writing that the division has either approved the
2753	filing or found specified deficiencies in the filing. If the
2754	division fails to respond within 20 days, the filing shall be
2755	deemed approved. The exchange company may correct the
2756	deficiencies; and, within 10 days after receipt of corrections
2757	from the exchange company, the division shall notify the
2758	exchange company in writing that the division has either
2759	approved the filing or found additional specified deficiencies
2760	in the filing. If the exchange company fails to adequately
2761	respond to any deficiency notice within 10 days, the division
2762	may reject the filing. Subsequent to such rejection, a new
2763	filing fee and a new division initial review period pursuant to
2764	this subsection shall apply to any refiling or further review of
2765	the rejected filing.
2766	(a) Any material change to an approved exchange company
2767	filing shall be filed with the division for approval as an
2768	amendment prior to becoming effective. Each amendment filing
2769	shall be accompanied by a filing fee of $100. The exchange
2770	company may correct the deficiencies; and, within 10 days after
2771	receipt of corrections from the exchange company, the division
2772	shall notify the exchange company in writing that the division
2773	has either approved the filing or found additional specified
2774	deficiencies in the filing. Each approved amendment to the
2775	approved exchange company filing, other than an amendment that
2776	does not materially alter or modify the exchange program in a
2777	manner that is adverse to a purchaser, as determined by the
2778	exchange company in its reasonable discretion, shall be
2779	delivered to each purchaser who has not closed. An approved
2780	exchange program filing is required to be updated with respect
2781	to added or deleted resorts only once each year, and such annual
2782	update shall not be deemed to be a material change to the
2783	filing.
2784	(b)If at any time the division determines that any of
2785	such information supplied by an exchange company fails to meet
2786	the requirements of this section, the division may undertake
2787	enforcement action against the exchange company in accordance
2788	with the provision of s. 721.26.
2789	(3) No developer shall have any liability with respect to
2790	any violation of this chapter arising out of the publication by
2791	the developer of information provided to it by an exchange
2792	company pursuant to this section. No exchange company shall have
2793	any liability with respect to any violation of this chapter
2794	arising out of the use by a developer of information relating to
2795	an exchange program other than that provided to the developer by
2796	the exchange company.
2797	(4) At the request of the exchange company, the division
2798	shall review anyaudio, written, or visual publications or
2799	materials relating to an exchange company or an exchange program
2800	shall be filed for review by the exchange company and shall
2801	notify the exchange company of any deficiencies within 10with
2802	the division within 3 days after the filingof their use. If the
2803	exchange company corrects the deficiencies or if there are no
2804	deficiencies, the division shall notify the exchange company of
2805	its approval of the advertising materials. If the exchange
2806	company fails to adequately respond to any deficiency notice
2807	within 10 days, the division may reject the advertising
2808	materials. Subsequent to such rejection, a new division initial
2809	review period pursuant to this subsection shall apply to any
2810	refiling or further review.
2811	(5) The failure of an exchange company to observe the
2812	requirements of this section, or the use of any unfair or
2813	deceptive act or practice in connection with the operation of an
2814	exchange program, is a violation of this chapter.
2815	Section 18. Section 721.19, Florida Statutes, is amended
2816	to read:
2817	721.19 Provisions requiring purchase or lease of timeshare
2818	property by owners' association or purchasers; validity.--In any
2819	timeshare plan in which timeshare estates or personal property
2820	timeshare interestsare sold, no grant or reservation made by a
2821	declaration, lease, or other document, nor any contract made by
2822	the developer, managing entity, or owners' association, which
2823	requires the owners' association or purchasers to purchase or
2824	lease any portion of the timeshare property shall be valid
2825	unless approved by a majority of the purchasers other than the
2826	developer, after more than 50 percent of the timeshare periods
2827	have been sold.
2828	Section 19. Section 721.20, Florida Statutes, is amended
2829	to read:
2830	721.20 Licensing requirements; suspension or revocation of
2831	license; exceptions to applicability; collection of advance fees
2832	for listings unlawful.--
2833	(1) Any seller of a timeshare plan must be a licensed real
2834	estate salesperson, broker, or broker-salesperson as defined in
2835	s. 475.01, except as provided in s. 475.011.
2836	(2) Solicitors who engage only in the solicitation of
2837	prospective purchasers and any purchaser who refers no more than
2838	20 people to a developer per year or who otherwise provides
2839	testimonials on behalf of a developer are exempt from the
2840	provisions of chapter 475.
2841	(3) A solicitor who has violated the provisions of chapter
2842	468, chapter 718, chapter 719, this chapter, or the rules of the
2843	division governing timesharing shall be subject to the
2844	provisions of s. 721.26. Any developer or other person who
2845	supervises, directs, or engages the services of a solicitor
2846	shall be liable for any violation of the provisions of chapter
2847	468, chapter 718, chapter 719, this chapter, or the rules of the
2848	division governing timesharing committed by such solicitor.
2849	(4) County and municipal governments shall have the
2850	authority to adopt codes of conduct and regulations to govern
2851	solicitor activity conducted on public property, including
2852	providing for the imposition of penalties prescribed by a
2853	schedule of fines adopted by ordinance for violations of any
2854	such code of conduct or regulation. Any violation of any such
2855	adopted code of conduct or regulation shall not constitute a
2856	separate violation of this chapter. This subsection is not
2857	intended to restrict or invalidate any local code of conduct or
2858	regulation.
2859	(5) This section does not apply to those individuals who
2860	offer for sale only timeshare interests in timeshare property
2861	located outside this state and who do not engage in any sales
2862	activity within this state or to timeshare plans which are
2863	registered with the Securities and Exchange Commission. For the
2864	purposes of this section, both timeshare licenses and timeshare
2865	estates are considered to be interests in real property.
2866	(6) Notwithstanding the provisions of s. 475.452, it is
2867	unlawful for any broker, salesperson, or broker-salesperson to
2868	collect any advance fee for the listing of any timeshare estate
2869	or timeshare license.
2870	(7) It is unlawful for any broker, salesperson, or broker-
2871	salesperson to collect any advance fee for the listing of a
2872	personal property timeshare interest.
2873	(8) Subsections (1), (2), and (3) do not apply to persons
2874	who offer personal property timeshare plans.
2875	Section 20. Subsection (6) is added to section 721.24,
2876	Florida Statutes, to read:
2877	721.24 Firesafety.--
2878	(6) Accommodations and facilities of personal property
2879	timeshare plans shall be exempt from the requirements of this
2880	section.
2881	Section 21. Paragraphs (a), (d), and (e) of subsection (5)
2882	of section 721.26, Florida Statutes, are amended to read:
2883	721.26 Regulation by division.--The division has the power
2884	to enforce and ensure compliance with the provisions of this
2885	chapter, except for parts III and IV, using the powers provided
2886	in this chapter, as well as the powers prescribed in chapters
2887	498, 718, and 719. In performing its duties, the division shall
2888	have the following powers and duties:
2889	(5) Notwithstanding any remedies available to purchasers,
2890	if the division has reasonable cause to believe that a violation
2891	of this chapter, or of any division rule or order promulgated or
2892	issued pursuant to this chapter, has occurred, the division may
2893	institute enforcement proceedings in its own name against any
2894	regulated party, as such term is defined in this subsection:
2895	(a)1. "Regulated party," for purposes of this section,
2896	means any developer, exchange company, seller, managing entity,
2897	owners' association, owners' association director, owners'
2898	association officer, manager, management firm, escrow agent,
2899	trustee, any respective assignees or agents, or any other person
2900	having duties or obligations pursuant to this chapter.
2901	2. Any person who materially participates in any offer or
2902	disposition of any interest in, or the management or operation
2903	of, a timeshare plan in violation of this chapter or relevant
2904	rules involving fraud, deception, false pretenses,
2905	misrepresentation, or false advertising or the disbursement,
2906	concealment, or diversion of any funds or assets, which conduct
2907	adversely affects the interests of a purchaser, and which person
2908	directly or indirectly controls a regulated party or is a
2909	general partner, officer, director, agent, or employee of such
2910	regulated party, shall be jointly and severally liable under
2911	this subsection with such regulated party, unless such person
2912	did not know, and in the exercise of reasonable care could not
2913	have known, of the existence of the facts giving rise to the
2914	violation of this chapter. A right of contribution shall exist
2915	among jointly and severally liable persons pursuant to this
2916	paragraph.
2917	(d)1. The division may bring an action in circuit court
2918	for declaratory or injunctive relief or for other appropriate
2919	relief, including restitution.
2920	2. The division shall have broad authority and discretion
2921	to petition the circuit court to appoint a receiver with respect
2922	to any managing entity which fails to perform its duties and
2923	obligations under this chapter with respect to the operation of
2924	a timeshare plan. The circumstances giving rise to an
2925	appropriate petition for receivership under this subparagraph
2926	include, but are not limited to:
2927	a. Damage to or destruction of any of the accommodations
2928	or facilities of a timeshare plan, where the managing entity has
2929	failed to repair or reconstruct same.
2930	b. A breach of fiduciary duty by the managing entity,
2931	including, but not limited to, undisclosed self-dealing or
2932	failure to timely assess, collect, or disburse the common
2933	expenses of the timeshare plan.
2934	c. Failure of the managing entity to operate the timeshare
2935	plan in accordance with the timeshare instrument and this
2936	chapter.
2937
2938	If, under the circumstances, it appears that the events giving
2939	rise to the petition for receivership cannot be reasonably and
2940	timely corrected in a cost-effective manner consistent with the
2941	timeshare instrument, the receiver may petition the circuit
2942	court to implement such amendments or revisions to the timeshare
2943	instrument as may be necessary to enable the managing entity to
2944	resume effective operation of the timeshare plan, or to enter an
2945	order terminating the timeshare plan, or to enter such further
2946	orders regarding the disposition of the timeshare property as
2947	the court deems appropriate, including the disposition and sale
2948	of the timeshare property held by the owners'association or the
2949	purchasers. In the event of a receiver's sale, all rights,
2950	title, and interest held by the owners'association or any
2951	purchaser shall be extinguished and title shall vest in the
2952	buyer. This provision applies to timeshare estates, personal
2953	property timeshare interests,and timeshare licenses. All
2954	reasonable costs and fees of the receiver relating to the
2955	receivership shall become common expenses of the timeshare plan
2956	upon order of the court.
2957	3. The division may revoke its approval of any filing for
2958	any timeshare plan for which a petition for receivership has
2959	been filed pursuant to this paragraph.
2960	(e)1. The division may impose a penalty against any
2961	regulated party for a violation of this chapter or any rule
2962	adopted thereunder. A penalty may be imposed on the basis of
2963	each day of continuing violation, but in no event may the
2964	penalty for any offense exceed $10,000. All accounts collected
2965	shall be deposited with the Treasurer to the credit of the
2966	Division of Florida Land Sales, Condominiums, and Mobile Homes
2967	Trust Fund.
2968	2.a. If a regulated party fails to pay a penalty, the
2969	division shall thereupon issue an order directing that such
2970	regulated party cease and desist from further operation until
2971	such time as the penalty is paid; or the division may pursue
2972	enforcement of the penalty in a court of competent jurisdiction.
2973	b. If an owners'association or managing entity fails to
2974	pay a civil penalty, the division may pursue enforcement in a
2975	court of competent jurisdiction.
2976	Section 22. Section 721.27, Florida Statutes, is amended
2977	to read:
2978	721.27 Annual fee for each timeshare unit in plan.--On
2979	January 1 of each year, each managing entity of a timeshare plan
2980	located in this state shall collect as a common expense and pay
2981	to the division an annual fee of $1.50$2for each 7 days of
2982	annual use availability that exist within the timeshare plan at
2983	that time, subject to any limitations on the amount of such
2984	annual fee pursuant to s. 721.58. If any portion of the annual
2985	fee is not paid by March 1, the managing entity shallmaybe
2986	assessed a late fee of 10 percent of the amount due or $250,
2987	whichever is greaterpenalty pursuant to s. 721.26.
2988	Section 23. Section 721.52, Florida Statutes, is amended
2989	to read:
2990	721.52 Definitions.--As used in this chapter, the term:
2991	(1) "Applicable law" means the law of the jurisdiction
2992	where the accommodations and facilities referred to are located.
2993	(2) "Component site" means a specific geographic site
2994	where a portion of the accommodations and facilities of the
2995	multisite timeshare plan are located. If permitted under
2996	applicable law, separate phases operated as a single development
2997	located at a specific geographic site under common management
2998	shall be deemed a single component site for purposes of this
2999	part.
3000	(3) "Inventory" means the accommodations and facilities
3001	located at a particular component site or sites owned, leased,
3002	licensed, or otherwise acquired for use by a developer and
3003	offered as part of the multisite timeshare plan.
3004	(4) "Multisite timeshare plan" means any method,
3005	arrangement, or procedure with respect to which a purchaser
3006	obtains, by any means, a recurring right to use and occupy
3007	accommodations or facilities of more than one component site,
3008	only through use of a reservation system, whether or not the
3009	purchaser is able to elect to cease participating in the plan.
3010	However, the term "multisite timeshare plan" shall not include
3011	any method, arrangement, or procedure wherein:
3012	(a) The contractually specified maximum total financial
3013	obligation on the purchaser's part is $3,000 or less, during the
3014	entire term of the plan; or
3015	(b) The term is for a period of 3 years or less,
3016	regardless of the purchaser's contractually specified maximum
3017	total financial obligation, if any. For purposes of determining
3018	the term of such use and occupancy rights, the period of any
3019	optional renewals which a purchaser, in his or her sole
3020	discretion, may elect to exercise, whether or not for additional
3021	consideration, shall not be included. For purposes of
3022	determining the term of such use and occupancy rights, the
3023	period of any automatic renewals shall be included unless a
3024	purchaser has the right to terminate the membership at any time
3025	and receive a pro rata refund or the purchaser receives a notice
3026	no less than 30 days and no more than 60 days prior to the date
3027	of renewal informing the purchaser of the right to terminate at
3028	any time prior to the date of automatic renewal.
3029
3030	Multisite timeshare plan does not mean an exchange program as
3031	defined in s. 721.05. Timeshare estates may only be offered in a
3032	multisite timeshare plan pursuant to s. 721.57.
3033	(5) “Nonspecific multisite timeshare plan” means a
3034	multisite timeshare plan containing timeshare licenses or
3035	personal property timeshare interests, with respect to which a
3036	purchaser receives a right to use all of the accommodations and
3037	facilities, if any, of the multisite timeshare plan through the
3038	reservation system, but no specific right to use any particular
3039	accommodations and facilities for the remaining term of the
3040	multisite timeshare plan in the event that the reservation
3041	system is terminated for any reason prior to the expiration of
3042	the term of the multisite timeshare plan.
3043	(6)(5)"Reservation system" means the method, arrangement,
3044	or procedure by which a purchaser, in order to reserve the use
3045	and occupancy of any accommodation or facility of the multisite
3046	timeshare plan for one or more use periods, is required to
3047	compete with other purchasers in the same multisite timeshare
3048	plan regardless of whether such reservation system is operated
3049	and maintained by the multisite timeshare plan managing entity,
3050	an exchange company, or any other person. In the event that a
3051	purchaser is required to use an exchange program as the
3052	purchaser's principal means of obtaining the right to use and
3053	occupy a multisite timeshare plan's accommodations and
3054	facilities, such arrangement shall be deemed a reservation
3055	system. When an exchange company utilizes a mechanism for the
3056	exchange of use of timeshare periods among members of an
3057	exchange program, such utilization is not a reservation system
3058	of a multisite timeshare plan.
3059	(7) “Specific multisite timeshare plan” means a multisite
3060	timeshare plan containing timeshare licenses or personal
3061	property timeshare interests, with respect to which a purchaser
3062	receives a specific right to use accommodations and facilities,
3063	if any, at one component site of a multisite timeshare plan,
3064	together with use rights in the other accommodations and
3065	facilities of the multisite timeshare plan created by or
3066	acquired through the reservation system.
3067	(8)(6)"Vacation club" means a multisite timeshare plan.
3068	Section 24. Paragraph (a) of subsection (1) of section
3069	721.53, Florida Statutes, is amended and paragraph (f) is added
3070	to subsection (1) of said section, to read:
3071	721.53 Subordination instruments; alternate security
3072	arrangements.--
3073	(1) With respect to each accommodation or facility of a
3074	multisite timeshare plan, the developer shall provide the
3075	division with satisfactory evidence that one of the following
3076	has occurred with respect to each interestholder prior to
3077	offering the accommodation or facility as a part of the
3078	multisite timeshare plan:
3079	(a) The interestholder has executed and recorded a
3080	nondisturbance and notice to creditors instrument pursuant to s.
3081	721.08(2)(c).
3082	(f) With respect to any personal property accommodations
3083	or facilities, the developer and any other interestholder have
3084	complied fully with the applicable provisions of s. 721.08.
3085	Section 25. Section 721.54, Florida Statutes, is amended
3086	to read:
3087	721.54 Term of nonspecific multisite timeshare plans.--It
3088	shall be a violation of this part to represent to a purchaser of
3089	a nonspecific multisite timeshare plan as defined in s.
3090	721.52(5)721.552(4)that the term of the plan for that
3091	purchaser is longer than the shortest term of availability of
3092	any of the accommodations included within the plan at the time
3093	of purchase.
3094	Section 26. Section 721.55, Florida Statutes, is amended
3095	to read:
3096	721.55 Multisite timeshare plan public offering
3097	statement.--Each filedregisteredpublic offering statement for
3098	a multisite timeshare plan shall contain the information
3099	required by this section and shall comply with the provisions of
3100	s. 721.07, except as otherwise provided therein. The division is
3101	authorized to provide by rule the method by which a developer
3102	must provide such information to the division. Each multisite
3103	timeshare plan filedregisteredpublic offering statement shall
3104	contain the following information and disclosures:
3105	(1) A cover page containing:
3106	(a) The name of the multisite timeshare plan.
3107	(b) The following statement in conspicuous type:
3108
3109	This public offering statement contains important matters
3110	to be considered in acquiring an interest in a multisite
3111	timeshare plan (or multisite vacation ownership plan or
3112	multisite vacation plan or vacation club). The statements
3113	contained herein are only summary in nature. A prospective
3114	purchaser should refer to all references, accompanying exhibits,
3115	contract documents, and sales materials. The prospective
3116	purchaser should not rely upon oral representations as being
3117	correct and should refer to this document and accompanying
3118	exhibits for correct representations.
3119
3120	(2) A summary containing all statements required to be in
3121	conspicuous type in the public offering statement and in all
3122	exhibits thereto.
3123	(3) A separate index for the contents and exhibits of the
3124	public offering statement.
3125	(4) A text, which shall include, where applicable, the
3126	information and disclosures set forth in paragraphs (a)-(l).
3127	(a) A description of the multisite timeshare plan,
3128	including its term, legal structure, and form of ownership. For
3129	multisite timeshare plans in which the purchaser will receive a
3130	timeshare estate pursuant to s. 721.57 and foror a specific
3131	multisite timeshare planslicense as defined in s. 721.552(4),
3132	the description must also include the term of each component
3133	site within the multisite timeshare plan.
3134	(b) A description of the structure and ownership of the
3135	reservation system together with a disclosure of the entity
3136	responsible for the operation of the reservation system. The
3137	description shall include the financial terms of any lease of
3138	the reservation system, if applicable. The developer shall not
3139	be required to disclose the financial terms of any such lease if
3140	such lease is prepaid in full for the term of the multisite
3141	timeshare plan or to any extent that neither purchasers nor the
3142	managing entity will be required to make payments for the
3143	continued use of the system following default by the developer
3144	or termination of the managing entity.
3145	(c)1. A description of the manner in which the reservation
3146	system operates. The description shall include a disclosure in
3147	compliance with the demand balancing standard set forth in s.
3148	721.56(6) and shall describe the developer's efforts to comply
3149	with same in creating the reservation system. The description
3150	shall also include a summary of the rules and regulations
3151	governing access to and use of the reservation system.
3152	2. In lieu of describing the rules and regulations of the
3153	reservation system in the public offering statement text, the
3154	developer may attach the rules and regulations as a separate
3155	public offering statement exhibit, together with a cross-
3156	reference in the public offering statement text to such exhibit.
3157	(d) The existence of and an explanation regarding any
3158	priority reservation features that affect a purchaser's ability
3159	to make reservations for the use of a given accommodation or
3160	facility on a first come, first served basis, including, if
3161	applicable, the following statement in conspicuous type:
3162
3163	Component sites contained in the multisite timeshare plan
3164	(or multisite vacation ownership plan or multisite vacation plan
3165	or vacation club) are subject to priority reservation features
3166	which may affect your ability to obtain a reservation.
3167
3168	(e) A summary of the material rules and regulations, if
3169	any, other than the reservation system rules and regulations,
3170	affecting the purchaser's use of each accommodation and facility
3171	at each component site.
3172	(f) If the provisions of s. 721.552 and the timeshare
3173	instrument permit additions, substitutions, or deletions of
3174	accommodations or facilities, the public offering statement must
3175	include substantially the following information:
3176	1. Additions.--
3177	a. A description of the basis upon which new
3178	accommodations and facilities may be added to the multisite
3179	timeshare plan; by whom additions may be made; and the
3180	anticipated effect of the addition of new accommodations and
3181	facilities upon the reservation system, its priorities, its
3182	rules and regulations, and the availability of existing
3183	accommodations and facilities.
3184	b. The developer must disclose the existence of any cap on
3185	annual increases in common expenses of the multisite timeshare
3186	plan that would apply in the event that additional
3187	accommodations and facilities are made a part of the plan.
3188	c. The developer shall also disclose any extent to which
3189	the purchasers of the multisite timeshare plan will have the
3190	right to consent to any proposed additions; if the purchasers do
3191	not have the right to consent, the developer must include the
3192	following disclosure in conspicuous type:
3193
3194	Accommodations and facilities may be added to this
3195	multisite timeshare plan (or multisite vacation ownership plan
3196	or multisite vacation plan or vacation club) without the consent
3197	of the purchasers. The addition of accommodations and facilities
3198	to the plan may result in the addition of new purchasers who
3199	will compete with existing purchasers in making reservations for
3200	the use of available accommodations and facilities within the
3201	plan, and may also result in an increase in the annual
3202	assessment against purchasers for common expenses.
3203
3204	2. Substitutions.--
3205	a. A description of the basis upon which new
3206	accommodations and facilities may be substituted for existing
3207	accommodations and facilities of the multisite timeshare plan;
3208	by whom substitutions may be made; the basis upon which the
3209	determination may be made to cause such substitutions to occur;
3210	and any limitations upon the ability to cause substitutions to
3211	occur.
3212	b. The developer shall also disclose any extent to which
3213	purchasers will have the right to consent to any proposed
3214	substitutions; if the purchasers do not have the right to
3215	consent, the developer must include the following disclosure in
3216	conspicuous type:
3217
3218	New accommodations and facilities may be substituted for
3219	existing accommodations and facilities of this multisite
3220	timeshare plan (or multisite vacation ownership plan or
3221	multisite vacation plan or vacation club) without the consent of
3222	the purchasers. The replacement accommodations and facilities
3223	may be located at a different place or may be of a different
3224	type or quality than the replaced accommodations and facilities.
3225	The substitution of accommodations and facilities may also
3226	result in an increase in the annual assessment against
3227	purchasers for common expenses.
3228
3229	3. Deletions.--A description of any provision of the
3230	timeshare instrument governing deletion of accommodations or
3231	facilities from the multisite timeshare plan. If the timeshare
3232	instrument does not provide for business interruption insurance
3233	in the event of a casualty, or if it is unavailable, or if the
3234	instrument permits the developer, the managing entity, or the
3235	purchasers to elect not to reconstruct after casualty under
3236	certain circumstances or to secure replacement accommodations or
3237	facilities in lieu of reconstruction, the public offering
3238	statement must contain a disclosure that during the
3239	reconstruction, replacement, or acquisition period, or as a
3240	result of a decision not to reconstruct, purchasers of the plan
3241	may temporarily compete for available accommodations on a
3242	greater than one-to-one purchaser to accommodation ratio.
3243	(g) A description of the developer and the managing entity
3244	of the multisite timeshare plan, including:
3245	1. The identity of the developer; the developer's business
3246	address; the number of years of experience the developer has in
3247	the timeshare, hotel, motel, travel, resort, or leisure
3248	industries; and a description of any pending lawsuit or judgment
3249	against the developer which is material to the plan. If there
3250	are no such pending lawsuits or judgments, there shall be a
3251	statement to that effect.
3252	2. The identity of the managing entity of the multisite
3253	timeshare plan; the managing entity's business address; the
3254	number of years of experience the managing entity has in the
3255	timeshare, hotel, motel, travel, resort, or leisure industries;
3256	and a description of any lawsuit or judgment against the
3257	managing entity which is material to the plan. If there are no
3258	pending lawsuits or judgments, there shall be a statement to
3259	that effect. The description of the managing entity shall also
3260	include a description of the relationship among the managing
3261	entity of the multisite timeshare plan and the various component
3262	site managing entities.
3263	(h) A description of the purchaser's liability for common
3264	expenses of the multisite timeshare plan, including the
3265	following:
3266	1. A description of the common expenses of the plan,
3267	including the method of allocation and assessment of such common
3268	expenses, whether component site common expenses and real estate
3269	taxes are included within the total common expense assessment of
3270	the multisite timeshare plan, and, if not, the manner in which
3271	timely payment of component site common expenses and real estate
3272	taxes shall be accomplished.
3273	2. A description of any cap imposed upon the level of
3274	common expenses payable by the purchaser. In no event shall the
3275	total common expense assessment for the multisite timeshare plan
3276	in a given calendar year exceed 125 percent of the total common
3277	expense assessment for the plan in the previous calendar year.
3278	3. A description of the entity responsible for the
3279	determination of the common expenses of the multisite timeshare
3280	plan, as well as any entity which may increase the level of
3281	common expenses assessed against the purchaser at the multisite
3282	timeshare plan level.
3283	4. A description of the method used to collect common
3284	expenses, including the entity responsible for such collections,
3285	and the lien rights of any entity for nonpayment of common
3286	expenses. If the common expenses of any component site are
3287	collected by the managing entity of the multisite timeshare
3288	plan, a statement to that effect together with the identity and
3289	address of the escrow agent required by s. 721.56(3).
3290	5. If the purchaser will receive an interest ina
3291	nonspecific multisite timeshare planlicense as defined in s.
3292	721.552(4), a statement that a multisite timeshare plan budget
3293	is attached to the public offering statement as an exhibit
3294	pursuant to paragraph (7)(c). The multisite timeshare plan
3295	budget shall comply with the provisions of s. 721.07(5)(u).
3296	6. If the developer intends to guarantee the level of
3297	assessments for the multisite timeshare plan, such guarantee
3298	must be based upon a good faith estimate of the revenues and
3299	expenses of the multisite timeshare plan. The guarantee must
3300	include a description of the following:
3301	a. The specific time period, measured in one or more
3302	calendar or fiscal years, during which the guarantee will be in
3303	effect.
3304	b. A statement that the developer will pay all common
3305	expenses incurred in excess of the total revenues of the
3306	multisite timeshare plan, if the developer is to be excused from
3307	the payment of assessments during the guarantee period.
3308	c. The level, expressed in total dollars, at which the
3309	developer guarantees the assessments. If the developer has
3310	reserved the right to extend or increase the guarantee level, a
3311	disclosure must be included to that effect.
3312	7. If required under applicable law, the developer shall
3313	also disclose the following matters for each component site:
3314	a. Any limitation upon annual increases in common
3315	expenses;
3316	b. The existence of any bad debt or working capital
3317	reserve; and
3318	c. The existence of any replacement or deferred
3319	maintenance reserve.
3320	(i) If there are any restrictions upon the sale, transfer,
3321	conveyance, or leasing of an interest in a multisite timeshare
3322	plan, a description of the restrictions together with a
3323	statement in conspicuous type in substantially the following
3324	form:
3325
3326	The sale, lease, or transfer of interests in this multisite
3327	timeshare plan is restricted or controlled.
3328
3329	(j) The following statement in conspicuous type in
3330	substantially the following form:
3331
3332	The purchase of an interest in a multisite timeshare plan
3333	(or multisite vacation ownership plan or multisite vacation plan
3334	or vacation club) should be based upon its value as a vacation
3335	experience or for spending leisure time, and not considered for
3336	purposes of acquiring an appreciating investment or with an
3337	expectation that the interest may be resold.
3338
3339	(k) If the multisite timeshare plan provides purchasers
3340	with the opportunity to participate in an exchange program, a
3341	description of the name and address of the exchange company and
3342	the method by which a purchaser accesses the exchange program.
3343	In lieu of this requirement, the public offering statement text
3344	may contain a cross-reference to other provisions in the public
3345	offering statement or in an exhibit containing this information.
3346	(l) A description of each component site, which
3347	description may be disclosed in a written, graphic, tabular, or
3348	other form approved by the division. The description of each
3349	component site shall include the following information:
3350	1. The name and address of each component site.
3351	2. The number of accommodations, timeshare interests, and
3352	timeshare periods, expressed in periods of 7-day use
3353	availability, committed to the multisite timeshare plan and
3354	available for use by purchasers.
3355	3. Each type of accommodation in terms of the number of
3356	bedrooms, bathrooms, sleeping capacity, and whether or not the
3357	accommodation contains a full kitchen. For purposes of this
3358	description, a full kitchen shall mean a kitchen having a
3359	minimum of a dishwasher, range, sink, oven, and refrigerator.
3360	4. A description of facilities available for use by the
3361	purchaser at each component site, including the following:
3362	a. The intended use of the facility, if not apparent from
3363	the description.
3364	b. Any user fees associated with a purchaser's use of the
3365	facility.
3366	5. A cross-reference to the location in the public
3367	offering statement of the description of any priority
3368	reservation features which may affect a purchaser's ability to
3369	obtain a reservation in the component site.
3370	(5) Such other information as the division determines is
3371	necessary to fairly, meaningfully, and effectively disclose all
3372	aspects of the multisite timeshare plan, including, but not
3373	limited to, any disclosures made necessary by the operation of
3374	s. 721.03(8). However, if a developer has, in good faith,
3375	attempted to comply with the requirements of this section, and
3376	if, in fact, the developer has substantially complied with the
3377	disclosure requirements of this chapter, nonmaterial errors or
3378	omissions shall not be actionable.
3379	(6) Any other information that the developer, with the
3380	approval of the division, desires to include in the public
3381	offering statement text.
3382	(7) The following documents shall be included as exhibits
3383	to the filedregisteredpublic offering statement, if
3384	applicable:
3385	(a) The timeshare instrument.
3386	(b) The reservation system rules and regulations.
3387	(c) The multisite timeshare plan budget pursuant to
3388	subparagraph (4)(h)5.
3389	(d) Any document containing the material rules and
3390	regulations described in paragraph (4)(e).
3391	(e) Any contract, agreement, or other document through
3392	which component sites are affiliated with the multisite
3393	timeshare plan.
3394	(f) Any escrow agreement required pursuant to s. 721.08 or
3395	s. 721.56(3).
3396	(g) The form agreement for sale or lease of an interest in
3397	the multisite timeshare plan.
3398	(h) The form receipt for multisite timeshare plan
3399	documents required to be given to the purchaser pursuant to s.
3400	721.551(2)(b).
3401	(i) The description of documents list required to be given
3402	to the purchaser by s. 721.551(2)(b).
3403	(j) The component site managing entity affidavit or
3404	statement required by s. 721.56(1).
3405	(k) Any subordination instrument required by s. 721.53.
3406	(l)1. If the multisite timeshare plan contains any
3407	component sites located in this state, the information required
3408	by s. 721.07(5) pertaining to each such component site unless
3409	exempt pursuant to s. 721.03.
3410	2. If the purchaser will receive a timeshare estate
3411	pursuant to s. 721.57, or an interest in a specific multisite
3412	timeshare plan,license as defined in s. 721.552(4)in a
3413	component site located outside of this state but which is
3414	offered in this state, the information required by s. 721.07(5)
3415	pertaining to that component site,;provided, however, that the
3416	provisions of s. 721.07(5)(u) shall only require disclosure of
3417	information related to the estimated budget for the timeshare
3418	plan and purchaser's expenses as required by the jurisdiction in
3419	which the component site is located.
3420	(8)(a) A timeshare plan containing only one component site
3421	must be filed with the division as a multisite timeshare plan if
3422	the timeshare instrument reserves the right for the developer to
3423	add future component sites. However, if the developer fails to
3424	add at least one additional component site to a timeshare plan
3425	described in this paragraph within 3 years after the date the
3426	plan is initially filed with the division, the multisite filing
3427	for such plan shall thereupon terminate, and the developer may
3428	not thereafter offer any further interests in such plan unless
3429	and until he or she refiles such plan with the division pursuant
3430	to this chapter.
3431	(b) The public offering statement for any timeshare plan
3432	described in paragraph (a) must include the following disclosure
3433	in conspicuous type:
3434
3435	This timeshare plan has been filed as a multisite timeshare
3436	plan (or multisite vacation ownership plan or multisite vacation
3437	plan or vacation club); however, this plan currently contains
3438	only one component site. The developer is not required to add
3439	any additional component sites to the plan. Do not purchase an
3440	interest in this plan in reliance upon the addition of any other
3441	component sites.
3442	Section 27. Paragraphs (b), (c), and (f) of subsection (2)
3443	of section 721.551, Florida Statutes, are amended to read:
3444	721.551 Delivery of multisite timeshare plan purchaser
3445	public offering statement.--
3446	(2) The developer shall furnish each purchaser with the
3447	following:
3448	(b) A receipt for multisite timeshare plan documents and a
3449	list describing any exhibit to the filedregisteredpublic
3450	offering statement which is not delivered to the purchaser. The
3451	division is authorized to prescribe by rule the form of the
3452	receipt for multisite timeshare plan documents and the
3453	description of exhibits list that must be furnished to the
3454	purchaser pursuant to this section.
3455	(c) If the purchaser will receive a timeshare estate
3456	pursuant to s. 721.57, or an interest in a specific multisite
3457	timeshare plan,license as defined in s. 721.552(4)in a
3458	component site located in this state, the developer shall also
3459	furnish the purchaser with the information required to be
3460	delivered pursuant to s. 721.07(6)(a) and (b) for the component
3461	site in which the purchaser will receive an estate or interest
3462	in a specific multisite timeshare planlicense.
3463	(f) The developer shall be required to provide the
3464	managing entity of the multisite timeshare plan with a copy of
3465	the approved filedregisteredpublic offering statement and any
3466	approved amendments thereto to be maintained by the managing
3467	entity as part of the books and records of the timeshare plan
3468	pursuant to s. 721.13(3)(d).
3469	Section 28. Paragraph (a) of subsection (2), paragraph (c)
3470	of subsection (3), and subsections (4) and (5) of section
3471	721.552, Florida Statutes, are amended to read:
3472	721.552 Additions, substitutions, or deletions of
3473	component site accommodations or facilities; purchaser remedies
3474	for violations.--Additions, substitutions, or deletions of
3475	component site accommodations or facilities may be made only in
3476	accordance with the following:
3477	(2) SUBSTITUTIONS.--
3478	(a) Substitutions are available only for nonspecific
3479	multisite timeshare license plans as defined in subsection (4).
3480	Specific multisite timeshare license plans oras defined in
3481	subsection (4) andplans offering timeshare estates pursuant to
3482	s. 721.57 may not contain an accommodation substitution right.
3483	(3) DELETIONS.--
3484	(c) Automatic deletion.--The timeshare instrument may
3485	provide that a component site will be automatically deleted upon
3486	the expiration of its term in a timeshare planother than a
3487	nonspecific multisite timesharelicenseplan or as otherwise
3488	provided in the timeshare instrument. However, the timeshare
3489	instrument must also provide that in the event a component site
3490	is deleted from the plan in this manner, a sufficient number of
3491	purchasers of the plan will also be deleted so as to maintain no
3492	greater than a one-to-one purchaser to accommodation ratio.
3493	(4) SPECIFIC AND NONSPECIFIC TIMESHARE LICENSES.--For
3494	purposes of this chapter, a specific timeshare license means one
3495	with respect to which a purchaser receives a specific right to
3496	use accommodations and facilities, if any, at one component site
3497	of a multisite timeshare plan, together with use rights in the
3498	other accommodations and facilities of the multisite timeshare
3499	plan created by or acquired through the reservation system. For
3500	purposes of this chapter, a nonspecific timeshare license means
3501	one with respect to which a purchaser receives a right to use
3502	all of the accommodations and facilities, if any, of a multisite
3503	timeshare plan through the reservation system, but no specific
3504	right to use any particular accommodations and facilities for
3505	the remaining term of the multisite timeshare plan in the event
3506	that the reservation system is terminated for any reason prior
3507	to the expiration of the term of the multisite timeshare plan.
3508	(4)(5)VIOLATIONS; PURCHASER REMEDIES.--All purchaser
3509	remedies pursuant to s. 721.21 shall be available for any
3510	violation of the provisions of this section.
3511	Section 29. Subsections (4) and (5) of section 721.56,
3512	Florida Statutes, are amended to read:
3513	721.56 Management of multisite timeshare plans;
3514	reservation systems; demand balancing.--
3515	(4) The managing entity of a multisite timeshare plan
3516	shall comply fully with the requirements of s. 721.13, subject
3517	to the provisions of s. 721.13(11) for personal property
3518	timeshare plans; however, with respect to a given component
3519	site, the managing entity of the multisite timeshare plan shall
3520	not be responsible for compliance as the managing entity of that
3521	component site unless the managing entity of the multisite
3522	timeshare plan is also the managing entity of that component
3523	site. Unless the timeshare instrument provides otherwise, the
3524	operator of the reservation system is the managing entity of a
3525	multisite timeshare plan.
3526	(5)(a)1. The reservation system is a facility of any
3527	nonspecific timeshare license multisite timeshare plan as
3528	defined in s. 721.552(4). The reservation system is not a
3529	facility of any specific timeshare licensemultisite timeshare
3530	plan as defined in s. 721.552(4), nor is it a facility of any
3531	multisite timeshare plan in which timeshare estates are offered
3532	pursuant to s. 721.57.
3533	2. The reservation system of any multisite timeshare plan
3534	shall include any computer software and hardware employed for
3535	the purpose of enabling or facilitating the operation of the
3536	reservation system. Nothing contained in this part shall
3537	preclude a manager or management firm that is serving as
3538	managing entity of a multisite timeshare plan from providing in
3539	its contract with the purchasers or owners' association of the
3540	multisite timeshare plan or in the timeshare instrument that the
3541	manager or management firm owns the reservation system and that
3542	the managing entity shall continue to own the reservation system
3543	in the event the purchasers discharge the managing entity
3544	pursuant to s. 721.14.
3545	(b) In the event of a termination of a managing entity of
3546	a nonspecific license multisite timeshare plan as defined in s.
3547	721.552(4), which managing entity owns the reservation system,
3548	irrespective of whether the termination is voluntary or
3549	involuntary and irrespective of the cause of such termination,
3550	in addition to any other remedies available to purchasers in
3551	this part, the terminated managing entity shall, prior to such
3552	termination, establish a trust meeting the criteria set forth in
3553	this paragraph. It is the intent of the Legislature that this
3554	trust arrangement provide for an adequate period of continued
3555	operation of the reservation system of the multisite timeshare
3556	plan, during which period the new managing entity shall make
3557	provision for the acquisition of a substitute reservation
3558	system.
3559	1. The trust shall be established with an independent
3560	trustee. Both the terminated managing entity and the new
3561	managing entity shall attempt to agree on an acceptable trustee.
3562	In the event they cannot agree on an acceptable trustee, they
3563	shall each designate a nominee, and the two nominees shall
3564	select the trustee.
3565	2. The terminated managing entity shall take all steps
3566	necessary to enable the trustee or the trustee's designee to
3567	operate the reservation system in the same manner as provided in
3568	the timeshare instrument and the public offering statement. The
3569	trustee may, but shall not be required to, contract with the
3570	terminated managing entity for the continued operation of the
3571	reservation system. In the event the trustee elects to contract
3572	with the terminated managing entity, that managing entity shall
3573	be required to operate the reservation system and shall be
3574	entitled to payment for that service. The payment shall in no
3575	event exceed the amount previously paid to the terminated
3576	managing entity for operation of the reservation system.
3577	3. The trust shall remain in effect for a period of no
3578	longer than 1 year following the date of termination of the
3579	managing entity.
3580	4. Nothing contained in this subsection shall abrogate or
3581	otherwise interfere with any proprietary rights in the
3582	reservation system that have been reserved by the discharged
3583	managing entity, in its management contract or otherwise, so
3584	long as such proprietary rights are not asserted in a manner
3585	that would prevent the continued operation of the reservation
3586	system as contemplated in this subsection.
3587	(c) In the event of a termination of a managing entity of
3588	a timeshare estate or specific license multisite timeshare plan
3589	as defined in s. 721.552(4), which managing entity owns the
3590	reservation system, irrespective of whether the termination is
3591	voluntary or involuntary and irrespective of the cause of such
3592	termination, in addition to any other remedies available to
3593	purchasers in this part, the terminated managing entity shall,
3594	prior to such termination, promptly transfer to each component
3595	site managing entity all relevant data contained in the
3596	reservation system with respect to that component site,
3597	including, but not limited to:
3598	1. The names, addresses, and reservation status of
3599	component site accommodations.
3600	2. The names and addresses of all purchasers of timeshare
3601	interests at that component site.
3602	3. All outstanding confirmed reservations and reservation
3603	requests for that component site.
3604	4. Such other component site records and information as
3605	are necessary, in the reasonable discretion of the component
3606	site managing entity, to permit the uninterrupted operation and
3607	administration of the component site, provided that a given
3608	component site managing entity shall not be entitled to any
3609	information regarding other component sites or regarding the
3610	terminated multisite timeshare plan managing entity.
3611
3612	All reasonable costs incurred by the terminated managing entity
3613	in effecting the transfer of information required by this
3614	paragraph shall be reimbursed to the terminated managing entity
3615	on a pro rata basis by each component site, and the amount of
3616	such reimbursement shall constitute a common expense of each
3617	component site.
3618	Section 30. Subsection (2) of section 721.57, Florida
3619	Statutes, is amended to read:
3620	721.57 Offering of timeshare estates in multisite
3621	timeshare plans; required provisions in the timeshare
3622	instrument.--
3623	(2) The timeshare instrument of a multisite timeshare plan
3624	in which timeshare estates are offered, other than a trust
3625	meeting the requirements of s. 721.08,must contain or provide
3626	for all of the following matters:
3627	(a) The purchaser will receive a timeshare estate as
3628	defined in s. 721.05 in one of the component sites of the
3629	multisite timeshare plan. The use rights in the other component
3630	sites of the multisite timeshare plan shall be made available to
3631	the purchaser through the reservation system pursuant to the
3632	timeshare instrument.
3633	(b) In the event that the reservation system is terminated
3634	or otherwise becomes unavailable for any reason prior to the
3635	expiration of the term of the multisite timeshare plan:
3636	1. The purchaser will be able to continue to use the
3637	accommodations and facilities of the component site in which she
3638	or he has been conveyed a timeshare estate in the manner
3639	described in the timeshare instrument for the remaining term of
3640	the timeshare estate; and
3641	2. Any use rights in that component site which had
3642	previously been made available through the reservation system to
3643	purchasers of the multisite timeshare plan who were not offered
3644	a timeshare estate at that component site will terminate when
3645	the reservation system is terminated or otherwise becomes
3646	unavailable for any reason.
3647	Section 31. Subsection (6) of section 721.84, Florida
3648	Statutes, is amended to read:
3649	721.84 Appointment of a registered agent; duties.--
3650	(6) Unless otherwise provided in this section, a
3651	registered agent in receipt of any notice or other document
3652	addressed from the lienholder to the obligor in care of the
3653	registered agent at the registered office must mail, by first
3654	class mail if the obligor's address is within the United States,
3655	and by international air mail if the obligor's address is
3656	outside the United States, with postage fees prepaid, such
3657	notice or documents to the obligor at the obligor's last
3658	designated address within 5 days afterofreceipt.
3659	Section 32. Section 721.96, Florida Statutes, is amended
3660	to read:
3661	721.96 Purpose.--The purpose of this part is to provide
3662	for the appointment of commissioners of deeds to take
3663	acknowledgments, proofs of execution, and oaths outside the
3664	United States in connection with the execution of any deed,
3665	mortgage, deed of trust, contract, power of attorney, or any
3666	other agreement, instrument or writing concerning, relating to,
3667	or to be used or recorded in connection with a timeshare estate,
3668	personal property timeshare interest,timeshare license, any
3669	property subject to a timeshare plan, or the operation of a
3670	timeshare plan located within this state.
3671	Section 33. Subsection (1) of section 721.97, Florida
3672	Statutes, is amended to read:
3673	721.97 Timeshare commissioner of deeds.--
3674	(1) The Governor may appoint commissioners of deeds to
3675	take acknowledgments, proofs of execution, or oaths in any
3676	foreign country. The term of office is 4 years. Commissioners of
3677	deeds shall have authority to take acknowledgments, proofs of
3678	execution, and oaths in connection with the execution of any
3679	deed, mortgage, deed of trust, contract, power of attorney, or
3680	any other writing to be used or recorded in connection with a
3681	timeshare estate, personal property timeshare interest,
3682	timeshare license, any property subject to a timeshare plan, or
3683	the operation of a timeshare plan located within this state;
3684	provided such instrument or writing is executed outside the
3685	United States. Such acknowledgments, proofs of execution, and
3686	oaths must be taken or made in the manner directed by the laws
3687	of this state, including but not limited to s. 117.05(4),
3688	(5)(a), and (6), Florida Statutes 1997, and certified by a
3689	commissioner of deeds. The certification must be endorsed on or
3690	annexed to the instrument or writing aforesaid and has the same
3691	effect as if made or taken by a notary public licensed in this
3692	state.
3693	Section 34. Paragraph (b) of subsection (8) of section
3694	475.011, Florida Statutes, is amended to read:
3695	475.011 Exemptions.--This part does not apply to:
3696	(8)
3697	(b) An exchange company, as that term is defined by s.
3698	721.05(15)(14), but only to the extent that the exchange company
3699	is engaged in exchange program activities as described in and is
3700	in compliance with s. 721.18.
3701	Section 35. Subsection (23) of section 718.103, Florida
3702	Statutes, is amended to read:
3703	718.103 Definitions.--As used in this chapter, the term:
3704	(23) "Residential condominium" means a condominium
3705	consisting of two or more units, any of which are intended for
3706	use as a private temporary or permanent residence, except that a
3707	condominium is not a residential condominium if the use for
3708	which the units are intended is primarily commercial or
3709	industrial and not more than three units are intended to be used
3710	for private residence, and are intended to be used as housing
3711	for maintenance, managerial, janitorial, or other operational
3712	staff of the condominium. With respect to a condominium that is
3713	not a timeshare condominium, a residential unit includes a unit
3714	intended as a private temporary or permanent residence as well
3715	as a unit not intended for commercial or industrial use. With
3716	respect to a timeshare condominium, the timeshare instrument as
3717	defined in s. 721.05(35)(33)shall govern the intended use of
3718	each unit in the condominium. If a condominium is a residential
3719	condominium but contains units intended to be used for
3720	commercial or industrial purposes, then, with respect to those
3721	units which are not intended for or used as private residences,
3722	the condominium is not a residential condominium. A condominium
3723	which contains both commercial and residential units is a mixed-
3724	use condominium and is subject to the requirements of s.
3725	718.404.
3726	Section 36. This act shall take effect upon becoming a
3727	law; however, with respect to any timeshare plan or exchange
3728	program filing approved by the division prior to the date this
3729	act becomes a law, the amendments to s. 721.06(1)(g)2., ss.
3730	721.07(2)(d)1. and (5)(e)4., s. 721.075(2)(e), ss. 721.18(1)(l)
3731	and (m), or s. 721.27, Florida Statutes, shall not apply to such
3732	filing until the earlier of January 1, 2004 or the date that any
3733	amendments to such filing are made subsequent to the date this
3734	act becomes a law. With respect to any timeshare plan filing
3735	approved by the division prior to the date this act becomes a
3736	law, the amendment to s. 721.08(3)(a), Florida Statutes, shall
3737	not apply to the nondisturbance and notice to creditors
3738	instrument required by s. 721.08, Florida Statutes, unless and
3739	only to the extent that the developer otherwise voluntarily
3740	complies with all or a portion of such provisions.