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