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