HB 0277 2004
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; correcting a cross
28	reference; amending s. 721.14, F.S.; providing that a
29	section of law governing the discharge of the managing
30	entity shall not apply with respect to personal property
31	timeshare plans; amending s. 721.15, F.S.; revising
32	language with respect to assessments for common expenses;
33	amending s. 721.16, F.S.; providing that a section of law
34	governing certain liens does not apply to personal
35	property timeshare plans; amending s. 721.17, F.S.;
36	revising language with respect to transfer of interest;
37	amending s. 721.18, F.S.; revising language with respect
38	to exchange programs; amending s. 721.19, F.S.; including
39	reference to personal property timeshare interests;
40	amending s. 721.20, F.S., relating to licensing
41	requirements; providing for the application of certain
42	provisions to personal property timeshare plans; amending
43	s. 721.24, F.S.; exempting accommodations and facilities
44	of personal property timeshare plans from a provision of
45	law governing firesafety; amending s. 721.26, F.S.;
46	revising language with respect to regulation by the
47	division; amending s. 721.52, F.S.; redefining the term
48	"multisite timeshare plan" and defining the terms
49	"nonspecific multisite timeshare plan" and "specific
50	multisite timeshare plan"; amending s. 721.53, F.S.;
51	revising language with respect to subordination
52	instruments; amending s. 721.54, F.S.; correcting a cross
53	reference; amending s. 721.55, F.S.; providing reference
54	to filed rather than registered public offering
55	statements; providing reference to multisite timeshare
56	plans; amending s. 721.551, F.S.; providing for reference
57	to filed rather than registered public offering
58	statements; amending s. 721.552, F.S.; providing reference
59	to multistate timeshare plans; amending s. 721.56, F.S.;
60	providing reference to personal property timeshare plans;
61	amending s. 721.57, F.S.; revising language with respect
62	to timeshare estates in multisite timeshare plans;
63	amending s. 721.84, F.S.; revising language with respect
64	to appointment of a registered agent; amending ss. 721.96
65	and 721.97, F.S.; including reference to personal property
66	timeshare interests; amending ss. 475.011 and 718.103,
67	F.S.; correcting cross references; providing for
68	applicability; providing an effective date.
69
70	Be It Enacted by the Legislature of the State of Florida:
71
72	Section 1. Subsections (1) and (5) of section 721.02,
73	Florida Statutes, are amended to read:
74	721.02 Purposes.--The purposes of this chapter are to:
75	(1) Give statutory recognition to real property timeshare
76	plans timesharing and personal property timeshare plans
77	timesharing in this thestate.
78	(5) Recognize that the tourism industry in this state is a
79	vital part of the state's economy; that the sale, promotion, and
80	use of timeshare plans is an emerging, dynamic segment of the
81	tourism industry; that this segment of the tourism industry
82	continues to grow, both in volume of sales and in complexity and
83	variety of product structure; and that a uniform and consistent
84	method of regulation is necessary in order to safeguard
85	Florida's tourism industry and the state's economic well-being.
86	In order to protect the quality of Florida timeshare plans and
87	the consumers who purchase them, it is the intent of the
88	Legislature that this chapter be interpreted broadly in order to
89	encompass all forms of timeshare plans with a duration of at
90	least 3 years that are created with respect to accommodations
91	and facilities that are located in the state or that are offered
92	for sale in the state as provided herein, including, but not
93	limited to, condominiums, cooperatives, undivided interest
94	campgrounds, cruise ships, vessels, houseboats, and recreational
95	vehicles and other motor vehicles, and includingvacation clubs,
96	multisite vacation plans, and multiyear vacation and lodging
97	certificates.
98	Section 2. Paragraph (d) is added to subsection (1) of
99	section 721.03, Florida Statutes, and subsection (8) of said
100	section, is amended to read:
101	721.03 Scope of chapter.--
102	(1) This chapter applies to all timeshare plans consisting
103	of more than seven timeshare periods over a period of at least 3
104	years in which the accommodations and facilities, if any, are
105	located within this state or offered within this state; provided
106	that:
107	(d) For purposes of determining the term of the plan, the
108	period of any automatic renewals shall be included, except as
109	provided in s. 721.52(4)(b).
110	(8) With respect to any personal property accommodation or
111	facility of a timeshare plan: which is situated upon
112	(a) This chapter applies only to personal property
113	timeshare plans that are offered in this state.,
114	(b)The division shall have the authority to adopt rules
115	interpreting and implementing the provisions of this chapter as
116	they apply to any personal property timeshare plan or any such
117	accommodation or facility that is part of a personal property
118	timeshare plan offered in this state, or as the provisions of
119	this chapter theyapply to any other laws of this state, of the
120	several states, or of the United States, or of any other
121	jurisdiction, with respect to any personal property timeshare
122	plan or any such accommodation or facility that is part of a
123	personal property timeshare plan offered in this state.
124	(c) Any developer and any managing entity of a personal
125	property timeshare plan must submit to personal jurisdiction in
126	this state in a form satisfactory to the division at the time of
127	filing a public offering statement.
128	Section 3. Section 721.05, Florida Statutes, is amended to
129	read:
130	721.05 Definitions.--As used in this chapter, the term:
131	(1) "Accommodation" means any apartment,condominium or
132	cooperative unit, cabin, lodge, hotel or motel room, campground,
133	cruise ship cabin, houseboat or other vessel, recreational or
134	other motor vehicle, or any or otherprivate or commercial
135	structure which is situated onreal or personal property and
136	designed for overnight occupancy or useby one or more
137	individuals. The term does not include an incidental benefit as
138	defined in this section.
139	(2) "Agreement for deed" means any written contract
140	utilized in the sale of timeshare estates which provides that
141	legal title will not be conveyed to the purchaser until the
142	contract price has been paid in full and the terms of payment of
143	which extend for a period in excess of 180 days after either the
144	date of execution of the contract or completion of construction,
145	whichever occurs later.
146	(3) “Agreement for transfer” means any written contract
147	utilized in the sale of personal property timeshare interests
148	which provides that legal title will not be transferred to the
149	purchaser until the contract price has been paid in full and the
150	terms of payment of which extend for a period in excess of 180
151	days after either the date of execution of the contract or
152	completion of construction, whichever occurs later.
153	(4)(3)"Assessment" means the share of funds required for
154	the payment of common expenses which is assessed from time to
155	time against each purchaser by the managing entity.
156	(5)(4)"Closing" means:
157	(a) For any plan selling timeshare estates, conveyance of
158	the legal or beneficial title to a timeshare estate as evidenced
159	by the delivery of a deed for conveyance of legal title, or
160	other instrument for conveyance of beneficial title, to the
161	purchaser or to the clerk of the court for recording or
162	conveyance of the equitable title to a timeshare estate as
163	evidenced by the irretrievable delivery of an agreement for deed
164	to the clerk of the court for recording.
165	(b) For any plan selling timeshare licenses or personal
166	property timeshare interests, the final execution and delivery
167	by all parties of the last document necessary for vesting in the
168	purchaser the full rights available under the plan.
169	(6)(5)"Common expenses" means:
170	(a) Those expenses, fees, or taxesproperly incurred for
171	the maintenance, operation, and repair of the accommodations or
172	facilities, or both, constituting the timeshare plan.
173	(b) Any other expenses, fees, or taxesdesignated as
174	common expenses in a timeshare instrument.
175	(c) Any past due and uncollected ad valorem taxes assessed
176	against a timeshare development pursuant to s. 192.037.
177	(7)(6)"Completion of construction" means:
178	(a)1. That a certificate of occupancy has been issued for
179	the entire building in which the timeshare unit being sold is
180	located, or for the improvement, or that the equivalent
181	authorization has been issued, by the governmental body having
182	jurisdiction; or
183	2. In a jurisdiction in which no certificate of occupancy
184	or equivalent authorization is issued, that the construction,
185	finishing, and equipping of the building or improvements
186	according to the plans and specifications have been
187	substantially completed; or
188	3. With respect to personal property timeshare plans, that
189	all accommodations have been manufactured or built and acquired
190	or leased by the developer, owners’ association, managing
191	entity, trustee, or other person for the use of purchasers as
192	set forth in the timeshare instrument;and
193	(b) That all accommodations and facilities of the
194	timeshare plan are available for use in a manner identical in
195	all material respects to the manner portrayed by the promotional
196	material, advertising, and filed registeredpublic offering
197	statements.
198	(8)(7)"Conspicuous type" means:
199	(a) Type in upper and lower case letters two point sizes
200	larger than the largest nonconspicuous type, exclusive of
201	headings, on the page on which it appears but in at least 10-
202	point type; or
203	(b) Where the use of 10-point type would be impractical or
204	impossible with respect to a particular piece of written
205	advertising material, a different style of type or print may be
206	used, so long as the print remains conspicuous under the
207	circumstances.
208
209	Where conspicuous type is required, it must be separated on all
210	sides from other type and print. Conspicuous type may be
211	utilized in contracts for purchase or public offering statements
212	only where required by law or as authorized by the division.
213	(9)(8)"Contract" means any agreement conferring the
214	rights and obligations of a timeshare plan on the purchaser.
215	(10)(9)"Developer" includes:
216	(a) A "creating developer," which means any person who
217	creates the timeshare plan;
218	(b) A "successor developer," which means any person who
219	succeeds to the interest of the persons in this subsection by
220	sale, lease, assignment, mortgage, or other transfer, but the
221	term includes only those persons who offer timeshare interests
222	in the ordinary course of business; and
223	(c) A "concurrent developer," which means any person
224	acting concurrently with the persons in this subsection with the
225	purpose of offering timeshare interests in the ordinary course
226	of business.
227	(d) The term "developer" does not include:
228	1. An owner of a timeshare interest who has acquired the
229	timeshare interest for his or her own use and occupancy and who
230	later offers it for resale; provided that a rebuttable
231	presumption shall exist that an owner who has acquired more than
232	seven timeshare interests did not acquire them for his or her
233	own use and occupancy;
234	2. A managing entity, not otherwise a developer, that
235	offers, or engages a third party to offer on its behalf,
236	timeshare interests in a timeshare plan which it manages,
237	provided that such offer complies with the provisions of s.
238	721.065;
239	3. A person who owns or is conveyed, assigned, or
240	transferred more than seven timeshare interests and who
241	subsequently conveys, assigns, or transfers all acquired
242	timeshare interests to a single purchaser in a single
243	transaction, which transaction may occur in stages; or
244	4. A person who has acquired or has the right to acquire
245	more than seven timeshare interests from a developer or other
246	interestholder in connection with a loan, securitization,
247	conduit, or similar financing arrangement transaction and who
248	subsequently arranges for all or a portion of the timeshare
249	interests to be offered by one or more developers in the
250	ordinary course of business on their own behalves or on behalf
251	of such person.
252	(e) A successor or concurrent developer shall be exempt
253	from any liability inuring to a predecessor or concurrent
254	developer of the same timeshare plan, except as provided in s.
255	721.15(7), provided that this exemption shall not apply to any
256	of the successor or concurrent developer's responsibilities,
257	duties, or liabilities with respect to the timeshare plan that
258	accrue after the date the successor or concurrent developer
259	became a successor or concurrent developer, and provided that
260	such transfer does not constitute a fraudulent transfer. In
261	addition to other provisions of law, a transfer by a predecessor
262	developer to a successor or concurrent developer shall be deemed
263	fraudulent if the predecessor developer made the transfer:
264	1. With actual intent to hinder, delay, or defraud any
265	purchaser or the division; or
266	2. To a person that would constitute an insider under s.
267	726.102(7).
268
269	The provisions of this paragraph shall not be construed to
270	relieve any successor or concurrent developer from the
271	obligation to comply with the provisions of any applicable
272	timeshare instrument.
273	(11)(10)"Division" means the Division of Florida Land
274	Sales, Condominiums, and Mobile Homes of the Department of
275	Business and Professional Regulation.
276	(12)(11)"Enrolled" means paid membership in an exchange
277	program or membership in an exchange program evidenced by
278	written acceptance or confirmation of membership.
279	(13)(12)"Escrow account" means an account established
280	solely for the purposes set forth in this chapter with a
281	financial institution located within this state.
282	(14)(13)"Escrow agent" includes only:
283	(a) A savings and loan association, bank, trust company,
284	or other financial institution, any of which must be located in
285	this state and any of which must have a net worth in excess of
286	$5 million;
287	(b) An attorney who is a member of The Florida Bar or his
288	or her law firm;
289	(c) A real estate broker who is licensed pursuant to
290	chapter 475 or his or her brokerage firm; or
291	(d) A title insurance agent that is licensed pursuant to
292	s. 626.8417, a title insurance agency that is licensed pursuant
293	to s. 626.8418, or a title insurer authorized to transact
294	business in this state pursuant to s. 624.401.
295	(15)(14)"Exchange company" means any person owning or
296	operating, or owning and operating, an exchange program.
297	(16)(15)"Exchange program" means any method, arrangement,
298	or procedure for the voluntary exchange of the right to use and
299	occupy accommodations and facilities among purchasers. The term
300	does not include the assignment of the right to use and occupy
301	accommodations and facilities to purchasers pursuant to a
302	particular multisite timeshare plan's reservation system. Any
303	method, arrangement, or procedure that otherwise meets this
304	definition, wherein the purchaser's total contractual financial
305	obligation exceeds $3,000 per any individual, recurring
306	timeshare period, shall be regulated as a multisite timeshare
307	plan in accordance with part II.
308	(17)(16)"Facility" means any amenity, including any
309	structure, furnishing, fixture, equipment, service, improvement,
310	or real or personal property, improved or unimproved, other than
311	an theaccommodation of the timeshare plan, which is made
312	available to the purchasers of a timeshare plan. The term does
313	not include an incidental benefit as defined in this section.
314	(18) "Filed public offering statement" means a public
315	offering statement that has been filed with the division
316	pursuant to s. 721.07(5) or s. 721.55.
317	(19)(17)"Incidental benefit" means an accommodation,
318	product, service, discount, or other benefit which is offered to
319	a prospective purchaser of a timeshare plan or to a purchaser of
320	a timeshare plan prior to the expiration of his or her initial
321	10-day voidability period pursuant to s. 721.10; which is not an
322	exchange program as defined in subsection (16) (15); and which
323	complies with the provisions of s. 721.075. The term shall not
324	include an offer of the use of the accommodations and facilities
325	of the timeshare plan on a free or discounted one-time basis.
326	(20)(18)"Independent," for purposes of determining
327	eligibility of escrow agents and trustees pursuant to s.
328	721.03(7), means that:
329	(a) The escrow agent or trustee is not a relative, as
330	described in s. 112.3135(1)(d), or an employee of the developer,
331	seller, or managing entity, or of any officer, director,
332	affiliate, or subsidiary thereof.
333	(b) There is no financial relationship, other than the
334	payment of fiduciary fees or as otherwise provided in this
335	subsection, between the escrow agent or trustee and the
336	developer, seller, or managing entity, or any officer, director,
337	affiliate, or subsidiary thereof.
338	(c) Compensation paid by the developer to an escrow agent
339	or trustee for services rendered shall not be paid from funds in
340	the escrow or trust account unless and until the developer is
341	otherwise entitled to receive the disbursement of such funds
342	from the escrow or trust account pursuant to this chapter.
343	(d) A person shall not be disqualified to serve as an
344	escrow agent or a trustee solely because of the following:
345	1. A nonemployee, attorney-client relationship exists
346	between the developer and the escrow agent or trustee;
347	2. The escrow agent or trustee provides brokerage services
348	as defined by chapter 475 for the developer;
349	3. The escrow agent or trustee provides the developer with
350	routine banking services which do not include construction or
351	receivables financing or any other lending activities; or
352	4. The escrow agent or trustee performs closings for the
353	developer or seller or issues owner's or lender's title
354	insurance commitments or policies in connection with such
355	closings.
356	(21)(19)"Interestholder" means a developer, an owner of
357	the underlying fee or owner of the underlying personal property,
358	a mortgagee, judgment creditor, or other lienor, or any other
359	person having an interest in or lien or encumbrance against the
360	accommodations or facilities of the timeshare plan.
361	(22)(20)"Managing entity" means the person who operates
362	or maintains the timeshare plan pursuant to s. 721.13(1).
363	(23)(21)"Memorandum of agreement" means a written
364	document, in a recordable form sufficient to permit the document
365	to be recorded or otherwise filed in the appropriate public
366	records and to provide constructive notice of its contents under
367	applicable law, which includes the names of the seller and the
368	purchasers, a legal description of the timeshare property or
369	other sufficient description for a personal property timeshare
370	plan,and all timeshare interests to be included in such
371	document, and a description of the type of timeshare interest
372	licensesold by the seller.
373	(24)(22)"Offer to sell," "offer for sale," "offered for
374	sale," or "offer" means the solicitation, advertisement, or
375	inducement, or any other method or attempt, to encourage any
376	person to acquire the opportunity to participate in a timeshare
377	plan.
378	(25)(23)"One-to-one purchaser to accommodation ratio"
379	means the ratio of the number of purchasers eligible to use the
380	accommodations of a timeshare plan on a given day to the number
381	of accommodations available for use within the plan on that day,
382	such that the total number of purchasers eligible to use the
383	accommodations of the timeshare plan during a given calendar
384	year never exceeds the total number of accommodations available
385	for use in the timeshare plan during that year. For purposes of
386	calculation under this subsection, each purchaser must be
387	counted at least once, and no individual timeshare unit may be
388	counted more than 365 times per calendar year (or more than 366
389	times per leap year). A purchaser who is delinquent in the
390	payment of timeshare plan assessments shall continue to be
391	considered eligible to use the accommodations of the timeshare
392	plan for purposes of this subsection notwithstanding any
393	application of s. 721.13(6).
394	(26)(24) "Owner of the underlying fee" or "owner of the
395	underlying personal property"means any person having an
396	interest in the real property or personal property comprising or
397	underlying the accommodations or facilities of a thetimeshare
398	plan at or subsequent to the time of creation of the timeshare
399	plan.
400	(27)(25) "Owners' association" means an theassociation
401	made up of all owners of timeshare interests in a timeshare
402	plan, including developers and purchasers of such atimeshare
403	plan who have purchased timeshare estates.
404	(28) "Personal property timeshare interest" means a right
405	to occupy an accommodation located on or in or comprised of
406	personal property that is not permanently affixed to real
407	property, whether or not coupled with a beneficial or ownership
408	interest in the accommodations or personal property.
409	(29)(26)"Public offering statement" means the written
410	materials describing a single-site timeshare plan or a multisite
411	timeshare plan, including a text and any exhibits attached
412	thereto as required by ss. 721.07, 721.55, and 721.551. The term
413	"public offering statement" shall refer to both a filed
414	registeredpublic offering statement and a purchaser public
415	offering statement.
416	(30)(27)"Purchaser" means any person, other than a
417	developer, who by means of a voluntary transfer acquires a legal
418	or equitable interest in a timeshare plan other than as security
419	for an obligation.
420	(31)(28)"Purchaser public offering statement" means that
421	portion of the filed registeredpublic offering statement which
422	must be delivered to purchasers pursuant to s. 721.07(6) or s.
423	721.551.
424	(29) "Registered public offering statement" means a public
425	offering statement which has been filed with the division
426	pursuant to s. 721.07(5) or s. 721.55.
427	(32)(30)"Regulated short-term product" means a
428	contractual right, offered by the seller, to use accommodations
429	of a timeshare plan or other accommodations, provided that:
430	(a) The agreement to purchase the short-term right to use
431	is executed in this state on the same day that the prospective
432	purchaser receives an offer to acquire an interest in a
433	timeshare plan and does not execute a purchase contract, after
434	attending a sales presentation; and
435	(b) The acquisition of the right to use includes an
436	agreement that all or a portion of the consideration paid by the
437	prospective purchaser for the right to use will be applied to or
438	credited against the price of a future purchase of a timeshare
439	interest, or that the cost of a future purchase of a timeshare
440	interest will be fixed or locked in at a specified price.
441	(33)(31)"Seller" means any developer or any other person,
442	or any agent or employee thereof, who offers timeshare interests
443	in the ordinary course of business. The term "seller" does not
444	include:
445	(a) An owner of a timeshare interest who has acquired the
446	timeshare interest for his or her own use and occupancy and who
447	later offers it for resale; provided that a rebuttable
448	presumption shall exist that an owner who has acquired more than
449	seven timeshare interests did not acquire them for his or her
450	own use and occupancy;
451	(b) A managing entity, not otherwise a seller, that
452	offers, or engages a third party to offer on its behalf,
453	timeshare interests in a timeshare plan which it manages,
454	provided that such offer complies with the provisions of s.
455	721.065;
456	(c) A person who owns or is conveyed, assigned, or
457	transferred more than seven timeshare interests and who
458	subsequently conveys, assigns, or transfers all acquired
459	timeshare interests to a single purchaser in a single
460	transaction, which transaction may occur in stages; or
461	(d) A person who has acquired or has the right to acquire
462	more than seven timeshare interests from a developer or other
463	interestholder in connection with a loan, securitization,
464	conduit, or similar financing arrangement and who subsequently
465	arranges for all or a portion of the timeshare interests to be
466	offered by one or more developers in the ordinary course of
467	business on their own behalves or on behalf of such person.
468	(34)(32)"Timeshare estate" means a right to occupy a
469	timeshare unit, coupled with a freehold estate or an estate for
470	years with a future interest in a timeshare property or a
471	specified portion thereof. The term shall also mean an interest
472	in a condominium unit pursuant to s. 718.103, an interest in a
473	cooperative unit pursuant to s. 719.103, or an interest in a
474	trust that complies in all respects with the provisions of s.
475	721.08(2)(c)4.3., provided that the trust does not contain any
476	personal property timeshare interests. A timeshare estate is a
477	parcel of real property under the laws of this state.
478	(35)(33)"Timeshare instrument" means one or more
479	documents, by whatever name denominated, creating or governing
480	the operation of a timeshare plan.
481	(36)(34) "Timeshare interest" means a timeshare estate, a
482	personal property timeshare interest, or atimeshare license.
483	(37)(35)"Timeshare license" means a right to occupy a
484	timeshare unit, which right is not a personal property timeshare
485	neither coupled with a freehold interest or a timeshare, nor
486	coupled with an estate for years with a future interest, in a
487	timeshare property.
488	(38)(36)"Timeshare period" means the period or periods of
489	time when a purchaser of a timeshare interest is afforded the
490	opportunity to use the accommodations or facilities, or both,of
491	a timeshare plan.
492	(39)(37)"Timeshare plan" means any arrangement, plan,
493	scheme, or similar device, other than an exchange program,
494	whether by membership, agreement, tenancy in common, sale,
495	lease, deed, rental agreement, license, or right-to-use
496	agreement or by any other means, whereby a purchaser, for
497	consideration, receives ownership rights in or a right to use
498	accommodations, and facilities, if any, for a period of time
499	less than a full year during any given year, but not necessarily
500	for consecutive years. The term “timeshare plan” includes:
501	(a) A “personal property timeshare plan,” which means a
502	timeshare plan in which the accommodations are comprised of
503	personal property that is not permanently affixed to real
504	property; and
505	(b) A “real property timeshare plan,” which means a
506	timeshare plan in which the accommodations of the timeshare plan
507	are comprised of or permanently affixed to real property.
508	(40)(38)"Timeshare property" means one or more timeshare
509	units subject to the same timeshare instrument, together with
510	any other property or rights to property appurtenant to those
511	timeshare units. Notwithstanding anything to the contrary
512	contained in chapter 718 or chapter 719, the timeshare
513	instrument for a timeshare condominium or cooperative may
514	designate personal property, contractual rights, affiliation
515	agreements of component sites of vacation clubs, exchange
516	companies, or reservation systems, or any other agreements or
517	personal property, as common elements or limited common elements
518	of the timeshare condominium or cooperative.
519	(41)(39)"Timeshare unit" means an accommodation of a
520	timeshare plan which is divided into timeshare periods. Any
521	timeshare unit in which a door or doors connecting two or more
522	separate rooms are capable of being locked to create two or more
523	private dwellings shall only constitute one timeshare unit for
524	purposes of this chapter, unless the timeshare instrument
525	provides that timeshare interests may be separately conveyed in
526	such locked-off portions.
527	(40) "Vacation ownership plan" means any timeshare plan
528	consisting exclusively of timeshare estates.
529	(41) "Vacation plan" or "vacation membership plan" means
530	any timeshare plan consisting exclusively of timeshare licenses
531	or consisting of a combination of timeshare licenses and
532	timeshare estates.
533	Section 4. Section 721.06, Florida Statutes, is amended to
534	read:
535	721.06 Contracts for purchase of timeshare interests.--
536	(1) Each seller shall utilize and furnish each purchaser a
537	fully completed and executed copy of a contract pertaining to
538	the sale, which contract shall include the following
539	information:
540	(a) The actual date the contract is executed by each
541	party.
542	(b) The names and addresses of the developer and the
543	timeshare plan.
544	(c) The initial purchase price and any additional charges
545	to which the purchaser may be subject in connection with the
546	purchase of the timeshare interest, such as financing, or which
547	will be collected from the purchaser on or before closing, such
548	as the current year's annual assessment for common expenses.
549	(d)1. For real property timeshare plans, an estimate of
550	any anticipated annual assessment stated on an Anyannually
551	recurring basis for any use charges, fees, charge and the next
552	year's estimated annual assessment for common expenses, or and
553	for ad valorem taxes or, if an estimate for next year's
554	assessmentis unavailable, the current year's actual annual
555	assessment for any use charges, fees, common expenses, or and
556	forad valorem taxes.
557	2. For personal property timeshare plans, an estimate of
558	any anticipated annual assessment stated on an annually
559	recurring basis for any use charges, fees, common expenses, or
560	taxes or, if an estimate is unavailable, the current year's
561	actual annual assessment for any use charges, fees, common
562	expenses, or taxes.
563	(e) The estimated date of completion of construction of
564	each accommodation or facility promised to be completed which is
565	not completed at the time the contract is executed and the
566	estimated date of closing.
567	(f) A brief description of the nature and duration of the
568	timeshare interest being sold, including whether any interest in
569	real property or personal propertyis being conveyed and the
570	specific number of years constituting the term of the timeshare
571	plan.
572	(g) Immediately prior to the space reserved in the
573	contract for the signature of the purchaser, in conspicuous
574	type, substantially the following statements:
575	1. If the purchaser will receive a personal property
576	timeshare interest: This personal property timeshare plan is
577	governed only by limited sections of the timeshare management
578	provisions of Florida law.
579	2. If the accommodations or facilities are located on or
580	in a documented vessel or foreign vessel as provided in s.
581	721.08(2)(c)3.e., the disclosure required by s.
582	721.08(2)(c)3.e.(IV).
583	3.You may cancel this contract without any penalty or
584	obligation within 10 calendar days after the date you sign this
585	contract or the date on which you receive the last of all
586	documents required to be given to you pursuant to section
587	721.07(6), Florida Statutes, whichever is later. If you decide
588	to cancel this contract, you must notify the seller in writing
589	of your intent to cancel. Your notice of cancellation shall be
590	effective upon the date sent and shall be sent to ... (Name of
591	Seller) ... at ... (Address of Seller) .... Any attempt to
592	obtain a waiver of your cancellation right is void and of no
593	effect. While you may execute all closing documents in advance,
594	the closing, as evidenced by delivery of the deed or other
595	document, before expiration of your 10-day cancellation period,
596	is prohibited.
597
598	(h) If a timeshare estate is being conveyed, the following
599	statement in conspicuous type:
600
601	For the purpose of ad valorem assessment, taxation and
602	special assessments, the managing entity will be considered the
603	taxpayer as your agent pursuant to section 192.037, Florida
604	Statutes.
605
606	(i) A statement that, in the event the purchaser cancels
607	the contract during a 10-day cancellation period, the developer
608	will refund to the purchaser the total amount of all payments
609	made by the purchaser under the contract, reduced by the
610	proportion of any contract benefits the purchaser has actually
611	received under the contract prior to the effective date of the
612	cancellation. The statement shall further provide that the
613	refund will be made within 20 days after receipt of notice of
614	cancellation or within 5 days after receipt of funds from the
615	purchaser's cleared check, whichever is later. A seller and a
616	purchaser shall agree in writing on a specific value for each
617	contract benefit received by the purchaser for purposes of this
618	paragraph. The term "contract benefit" shall not include
619	purchaser public offering statements or other documentation or
620	materials that must be furnished to a purchaser pursuant to
621	statute or rule.
622	(j) If the timeshare interest is being sold pursuant to an
623	agreement for deed or an agreement for transfer, a statement
624	that the signing of the agreement for deed or agreement for
625	transfer does not entitle the purchaser to receive the
626	conveyance or transfer of his or her timeshare estate or
627	personal property timeshare interest a deeduntil all payments
628	under the agreement have been made.
629	(k) Unless the developer is,at the time of offering the
630	plan, the owner in fee simple absoluteof the accommodations and
631	facilities of the timeshare plan, free and clear of all liens,
632	and encumbrances, and claims of other interestholders,a
633	statement that the developer is not the sole owner of the
634	underlying fee or owner of the underlying personal property or
635	that the such accommodations or facilities are subject to
636	withoutliens or encumbrances, which statement shall include:
637	1. The names and addresses of all other interestholders
638	persons or entities having an ownership interest or other
639	interest in the accommodations or facilities; and
640	2. The actual interest of the developer in the
641	accommodations or facilities. As an alternative to including the
642	statement in the purchase contract, a seller may include a
643	reference in the purchase contract to the location in the
644	purchaser public offering statement text of such information.
645	(l) If the purchaser will receive an interest in a
646	multisite timeshare plan pursuant to part II, a statement shall
647	be provided in conspicuous type in substantially the following
648	form:
649
650	The developer is required to provide the managing entity of
651	the multisite timeshare plan with a copy of the approved public
652	offering statement text and exhibits filed with the division and
653	any approved amendments thereto, and any other component site
654	documents as described in section 721.07 or section 721.55,
655	Florida Statutes, that are not required to be filed with the
656	division, to be maintained by the managing entity for inspection
657	as part of the books and records of the plan.
658
659	(m) The following statement in conspicuous type:
660
661	Any resale of this timeshare interest must be accompanied
662	by certain disclosures in accordance with section 721.065,
663	Florida Statutes.
664
665	(n) A description of any rights reserved by the developer
666	to alter or modify the offering prior to closing.
667	(2)(a)An agreement for deed shall be recorded by the
668	developer within 30 days after the day it is executed by the
669	purchaser. The developer shall pay all recording costs
670	associated therewith. A form copy of such instrument must be
671	filed with the division for review pursuant to s. 721.07.
672	(b) An agreement for transfer shall be filed with the
673	appropriate official responsible for maintaining such records in
674	the appropriate jurisdiction within 30 days after the day it is
675	executed by the purchaser. The developer shall pay all filing
676	costs associated therewith. A form copy of such instrument must
677	be filed with the division for review pursuant to s. 721.07.
678	(3) The escrow agent shall provide the developer with a
679	receipt for all purchaser funds or other property received by
680	the escrow agent from a seller.
681	Section 5. Paragraph (b) of subsection (2) of section
682	721.065, Florida Statutes, is amended to read:
683	721.065 Resale purchase agreements.--
684	(2) Any resale purchase agreement utilized by a person
685	described in subsection (1) must contain all of the following:
686	(b) One ofthe following statements in conspicuous type
687	located immediately prior to the disclosure required by
688	paragraph (c):
689	1. If the resale purchase agreement pertains to a real
690	property timeshare plan:
691
692	The current year's assessment for common expenses allocable to
693	the timeshare interest you are purchasing is $_____. This
694	assessment, which may be increased from time to time by the
695	managing entity of the timeshare plan, is payable in full each
696	year on or before __________. This assessment (includes/does not
697	include) yearly ad valorem real estate taxes, which (are/are
698	not) billed and collected separately. (If ad valorem real
699	property taxes are not included in the current year's assessment
700	for common expenses, the following statement must be included:
701	The most recent annual assessment for ad valorem real estate
702	taxes for the timeshare interest you are purchasing is $_____.)
703	(If there are any delinquent assessments for common expenses or
704	ad valorem taxes outstanding with respect to the timeshare
705	interest in question, the following statement must be included:
706	A delinquency in the amount of $_____ for unpaid common expenses
707	or ad valorem taxes currently exists with respect to the
708	timeshare interest you are purchasing, together with a per diem
709	charge of $_____ for interest and late charges.) For the purpose
710	of ad valorem assessment, taxation, and special assessments, the
711	managing entity will be considered the taxpayer as your agent
712	pursuant to section 192.037, Florida Statutes. Each owner is
713	personally liable for the payment of her or his assessments for
714	common expenses, and failure to timely pay these assessments may
715	result in restriction or loss of your use and/or ownership
716	rights.
717
718	There are many important documents relating to the timeshare
719	plan which you should review prior to purchasing a timeshare
720	interest, including the declaration of condominium or covenants
721	and restrictions; the owners'association articles and bylaws;
722	the current year's operating and reserve budgets; and any rules
723	and regulations affecting the use of timeshare plan
724	accommodations and facilities.
725
726	2. If the resale purchase agreement pertains to a personal
727	property timeshare plan:
728
729	The current year's assessment for any common expenses, use
730	charges, fees, or taxes allocable to the timeshare interest you
731	are purchasing is $_____. This assessment, which may be
732	increased from time to time by the managing entity of the
733	timeshare plan, is payable in full each year on or before
734	__________. (If there are any delinquent assessments for common
735	expenses, use charges, fees, or taxes outstanding with respect
736	to the timeshare interest in question, the following statement
737	must be included: A delinquency in the amount of $_____ for
738	unpaid common expenses, use charges, fees, or taxes currently
739	exists with respect to the timeshare interest you are
740	purchasing, together with a per diem charge of $_____ for
741	interest and late charges.) Each owner is personally liable for
742	the payment of her or his assessments for common expenses, and
743	failure to timely pay these assessments may result in
744	restriction or loss of your use and/or ownership rights.
745
746	There are many important documents relating to the timeshare
747	plan which you should review prior to purchasing a timeshare
748	interest, including any owners’ association articles and bylaws;
749	the current year's operating and reserve budgets; and any rules
750	and regulations affecting the use of timeshare plan
751	accommodations and facilities.
752	Section 6. Section 721.07, Florida Statutes, is amended to
753	read:
754	721.07 Public offering statement.--Prior to offering any
755	timeshare plan, the developer must submit a filed registered
756	public offering statement to the division for approval as
757	prescribed by s. 721.03, s. 721.55, or this section. Until the
758	division approves such filing, any contract regarding the sale
759	of that timeshare plan is subject to cancellation voidableby
760	the purchaser pursuant to s. 721.10.
761	(1) The division shall, upon receiving a filed registered
762	public offering statement from a developer, mail to the
763	developer an acknowledgment of receipt. The failure of the
764	division to send such acknowledgment will not, however, relieve
765	the developer from the duty of complying with this section.
766	(2)(a) Within 45 days after receipt of a filed registered
767	public offering statement which is subject only to this part and
768	is submitted in proper form as prescribed by rule, or within 120
769	days after receipt of a filed registeredpublic offering
770	statement which is subject to part II and is submitted in proper
771	form as prescribed by rule, the division shall determine whether
772	the proposed filed registeredpublic offering statement is
773	adequate to meet the requirements of this section and shall
774	notify the developer by mail that the division has either
775	approved the statement or found specified deficiencies in the
776	statement. If the division fails to approve the statement or
777	specify deficiencies in the statement within the period
778	specified in this paragraph, the filing will be deemed approved.
779	(b) If the developer fails to respond to any cited
780	deficiencies within 20 days after receipt of the division's
781	deficiency notice, the division may reject the filing.
782	Subsequent to such rejection, a new filing fee pursuant to
783	subsection (4) and a new division initial review period pursuant
784	to paragraph (a) shall apply to any refiling or further review
785	of the rejected filing.
786	(c) Within 20 days after receipt of the developer's timely
787	and complete response to any deficiency notice, the division
788	shall notify the developer by mail that the division has either
789	approved the filing, found additional specified deficiencies in
790	it, or determined that any previously specified deficiency has
791	not been corrected. If the division fails to approve or specify
792	additional deficiencies within 20 days after receipt of the
793	developer's timely and complete response, the filing will be
794	deemed approved.
795	(d) A developer shall have the authority to deliver to
796	purchasers any purchaser public offering statement that is not
797	yet approved by the division, provided that the following shall
798	apply:
799	1. At the time the developer delivers an unapproved
800	purchaser public offering statement to a purchaser pursuant to
801	this paragraph, the developer shall deliver a fully completed
802	and executed copy of the purchase contract required by s. 721.06
803	that contains the following statement in conspicuous type in
804	substantially the following form which shall replace the
805	statements required by s. 721.06(1)(g):
806
807	The developer is delivering to you a public offering statement
808	that has been filed with but not yet approved by the Division of
809	Florida Land Sales, Condominiums, and Mobile Homes. Any
810	revisions to the unapproved public offering statement you have
811	received must be delivered to you, but only if the revisions
812	materially alter or modify the offering in a manner adverse to
813	you. After the division approves the public offering statement,
814	you will receive notice of the approval from the developer and
815	the required revisions, if any.
816
817	Your statutory right to cancel this transaction without any
818	penalty or obligation expires 10 calendar days after the date
819	you signed your purchase contract or the date on which you
820	receive the last of all documents required to be given to you
821	pursuant to section 721.07(6), Florida Statutes, or10 calendar
822	days after you receive revisions required to be delivered to
823	you, if any, whichever is later. If you decide to cancel this
824	contract, you must notify the seller in writing of your intent
825	to cancel. Your notice of cancellation shall be effective upon
826	the date sent and shall be sent to (Name of Seller) at (Address
827	of Seller). Any attempt to obtain a waiver of your cancellation
828	right is void and of no effect. While you may execute all
829	closing documents in advance, the closing, as evidenced by
830	delivery of the deed or other document, before expiration of
831	your 10-day cancellation period, is prohibited.
832
833	2. After receipt of approval from the division and prior
834	to closing, if any revisions made to the documents contained in
835	the purchaser public offering statement materially alter or
836	modify the offering in a manner adverse to a purchaser, the
837	developer shall send the purchaser such revisions together with
838	a notice containing a statement in conspicuous type in
839	substantially the following form:
840
841	The unapproved public offering statement previously delivered to
842	you, together with the enclosed revisions, has been approved by
843	the Division of Florida Land Sales, Condominiums, and Mobile
844	Homes. Accordingly, your cancellation right expires 10 calendar
845	days after you sign your purchase contract or 10 calendar days
846	after you receive these revisions, whichever is later. If you
847	have any questions regarding your cancellation rights, you may
848	contact the division at [insert division's current address].
849
850	3. After receipt of approval from the division and prior
851	to closing, if no revisions have been made to the documents
852	contained in the unapproved purchaser public offering statement,
853	or if such revisions do not materially alter or modify the
854	offering in a manner adverse to a purchaser, the developer shall
855	send the purchaser a notice containing a statement in
856	conspicuous type in substantially the following form:
857
858	The unapproved public offering statement previously delivered to
859	you has been approved by the Division of Florida Land Sales,
860	Condominiums, and Mobile Homes. Revisions made to the unapproved
861	public offering statement, if any, are either not required to be
862	delivered to you or are not deemed by the developer, in its
863	opinion, to materially alter or modify the offering in a manner
864	that is adverse to you. Accordingly, your cancellation right
865	expired 10 days after you signed your purchase contract. A
866	complete copy of the approved public offering statement is
867	available through the managing entity for inspection as part of
868	the books and records of the plan. If you have any questions
869	regarding your cancellation rights, you may contact the division
870	at [insert division's current address].
871	(3)(a)1. Any change to an approved public offering
872	statement filing shall be filed with the division for approval
873	as an amendment prior to becoming effective. The division shall
874	have 20 days after receipt of a proposed amendment to approve or
875	cite deficiencies in the proposed amendment. If the division
876	fails to act within 20 days, the amendment will be deemed
877	approved. If the proposed amendment adds a new component site to
878	an approved multisite timeshare plan, the division's initial
879	period in which to approve or cite deficiencies is 45 days. If
880	the developer fails to adequately respond to any deficiency
881	notice within 30 days, the division may reject the amendment.
882	Subsequent to such rejection, a new filing fee pursuant to
883	subsection (4) and a new division initial review period pursuant
884	to this paragraph shall apply to any refiling or further review
885	of the rejected amendment.
886	2. For filings only subject to this part, each approved
887	amendment to the approved purchaser public offering statement,
888	other than an amendment made only for the purpose of the
889	addition of a phase or phases to the timeshare plan in the
890	manner described in the timeshare instrument or any amendment
891	that does not materially alter or modify the offering in a
892	manner that is adverse to a purchaser, shall be delivered to a
893	purchaser no later than 10 days prior to closing. For filings
894	made under part II, each approved amendment to the multisite
895	timeshare plan purchaser public offering statement, other than
896	an amendment made only for the purpose of the addition,
897	substitution, or deletion of a component site pursuant to part
898	II or the addition of a phase or phases to a component site of a
899	multisite timeshare plan in the manner described in the
900	timeshare instrument or any amendment that does not materially
901	alter or modify the offering in a manner that is adverse to a
902	purchaser, shall be delivered to a purchaser no later than 10
903	days prior to closing.
904	3. Amendments made to a timeshare instrument for a
905	component site located in this state are not required to be
906	delivered to purchasers who do not receive a timeshare estate or
907	an interest in a specific multisite timeshare plan licensein
908	that component site. Amendments made to a timeshare instrument
909	for a component site not located in this state are not required
910	to be delivered to purchasers.
911	(b) At the time that any amendments required to be
912	delivered to purchasers, as provided in paragraph (a), are
913	delivered to purchasers, the developer shall provide to those
914	purchasers who have not closed a written statement that the
915	purchaser or lessee will have a 10-day voidability period.
916	(4)(a) Upon the filing of a filed registeredpublic
917	offering statement, the developer shall pay a filing fee of $2
918	for each 7 days of annual use availability in each timeshare
919	unit that may be offered as a part of the proposed timeshare
920	plan pursuant to the filing.
921	(b) Upon the filing of an amendment to an approved filed
922	registered public offering statement, other than an amendment
923	adding a phase to the timeshare plan, the developer shall pay a
924	filing fee of $100.
925	(5) Every filed registeredpublic offering statement for a
926	timeshare plan which is not a multisite timeshare plan shall
927	contain the information required by this subsection. The
928	division is authorized to provide by rule the method by which a
929	developer must provide such information to the division.
930	(a) A cover page stating only:
931	1. The name of the timeshare plan; and
932	2. The following statement, in conspicuous type: This
933	public offering statement contains important matters to be
934	considered in acquiring a timeshare interest. The statements
935	contained in this public offering statement are only summary in
936	nature. A prospective purchaser should refer to all references,
937	accompanying exhibits, contract documents, and sales materials.
938	You should not rely upon oral representations as being correct.
939	Refer to this document and accompanying exhibits for correct
940	representations. The seller is prohibited from making any
941	representations other than those contained in the contract and
942	this public offering statement.
943	(b) A listing of all statements required to be in
944	conspicuous type in the public offering statement and in all
945	exhibits thereto.
946	(c) A separate index of the contents and exhibits of the
947	public offering statement.
948	(d) A text which shall include, where applicable, the
949	disclosures set forth in paragraphs (e)-(hh).
950	(e) A description of the timeshare plan, including, but
951	not limited to:
952	1. Its name and location.
953	2. An explanation of the form of timeshare ownership that
954	is being offered, including a statement as to whether any
955	interest in the underlying real property will be conveyed to the
956	purchaser. If the plan is being created or being sold on a
957	leasehold, a description of the material terms of the lease
958	shall be included. If the plan is a plan in which timeshare
959	estates or personal property timeshare interestsare sold as
960	interests in a trust pursuant to the requirements of this
961	chapter, a full and accurate description of the trust
962	arrangement and the trustee's duties shall be included. If the
963	plan is a personal property timeshare plan, a description of the
964	material terms of the arrangement for the ownership or use of
965	the personal property shall be included.
966	3. An explanation of the manner in which the apportionment
967	of common expenses and ownership of the common elements has been
968	determined.
969	4. If ownership or use of the timeshare plan is based on a
970	point system, a statement indicating the circumstances by which
971	the point values may change, the extent of such changes, and the
972	person or entity responsible for the changes.
973	5. If any of the accommodations or facilities are part of
974	a personal property timeshare plan in which the accommodations
975	or facilities are located on or in a documented vessel or
976	foreign vessel as provided in s. 721.08(2)(c)3.e., the
977	disclosure required by s. 721.08(2)(c)3.e.(IV).
978	(f) A description of the accommodations, including, but
979	not limited to:
980	1. The number of timeshare units in each building, the
981	total number of timeshare periods declared as part of the
982	timeshare plan and filed with the division, and the number of
983	bathrooms and bedrooms in each type of timeshare unit.
984	2. The latest date estimated for completion of
985	constructing, finishing, and equipping the timeshare units
986	declared as part of the timeshare plan and filed with the
987	division.
988	3. The estimated maximum number of units and timeshare
989	periods that will use the accommodations and facilities. If the
990	maximum number of timeshare units or timeshare periods will
991	vary, a description of the basis for variation.
992	4. The duration, in years, of the timeshare plan.
993	5. If any of the accommodations are part of a personal
994	property timeshare plan, the name, vehicle registration number,
995	title certificate number, or any other identifying registration
996	number assigned to the accommodation of a personal property
997	timeshare plan by a state, federal, or international
998	governmental agency.
999	6. If any of the accommodations are part of a personal
1000	property timeshare plan, the fire detection system and fire
1001	safety equipment and description of method of compliance with
1002	any applicable firesafety or fire detection regulations.
1003	(g) A description of any thefacilities that will be used
1004	by purchasers of the plan, including, but not limited to:
1005	1. The intended purpose, if not apparent from the
1006	description.
1007	2. The estimated date when each facility will be available
1008	for use by the purchaser.
1009	3. A statement as to whether the facilities will be used
1010	exclusively by purchasers of the timeshare plan, and, if not, a
1011	statement as to whether the purchasers of the timeshare plan are
1012	required to pay any portion of the maintenance and expenses of
1013	such facilities.
1014	(h)1. If any facilities offered by the developer for use
1015	by purchasers are to be leased or have club memberships
1016	associated with them, other than participation in a vacation
1017	club, one of the following statements in conspicuous type: There
1018	is a lease associated with one or more facilities of the
1019	timeshare plan; or, There is a club membership associated with
1020	one or more facilities of the timeshare plan.
1021	2. If it is mandatory that purchasers pay fees, rent,
1022	dues, or other charges under a facilities lease or club
1023	membership for the use of the facilities, other than
1024	participation in a vacation club, the applicable statement in
1025	conspicuous type in substantially the following form:
1026	a. Membership in a facilities club is mandatory for
1027	purchasers;
1028	b. Purchasers or the owners'association(s) are required,
1029	as a condition of ownership, to be lessees under the facilities
1030	lease;
1031	c. Purchasers or the owners'association(s) are required
1032	to pay their share of the rent or costs and expenses of
1033	maintenance, management, upkeep, and replacement under the
1034	facilities lease (or the other instruments providing the
1035	facilities); or
1036	d. A similar statement of the nature of the organization
1037	or the manner in which the use rights are created, and that
1038	purchasers are required to pay.
1039
1040	Immediately following the applicable statement, a description of
1041	the lease or other instrument shall be stated, including a
1042	description of terms of the payment of rent or costs and
1043	expenses of maintenance, management, upkeep, and replacement of
1044	the facilities.
1045	3. If the purchasers are required to pay a use fee, or
1046	other payment for the use of the facilities, not including the
1047	rent or maintenance, management, upkeep, or replacement costs
1048	and expenses, the following statement in conspicuous type: The
1049	purchasers or the owners'association(s) must pay use fees for
1050	one or more facilities. Immediately following this statement, a
1051	description of the use fees shall be included.
1052	4. If any person other than the owners'association has
1053	the right to a lien on the timeshare interests to secure the
1054	payment of assessments, rent, or other exactions, a statement in
1055	conspicuous type in substantially the following form:
1056	a. There is a lien or lien right against each timeshare
1057	interest to secure the payment of rent and other exactions under
1058	the facilities lease. A purchaser's failure to make these
1059	payments may result in foreclosure of the lien; or
1060	b. There is a lien or lien right against each timeshare
1061	interest to secure the payment of assessments or other exactions
1062	coming due for the use, maintenance, upkeep, or repair of one or
1063	more facilities. A purchaser's failure to make these payments
1064	may result in foreclosure of the lien.
1065
1066	Immediately following the applicable statement, a description of
1067	the lien right shall be included.
1068	(i) If the developer or any other person has the right to
1069	increase or add to the facilities at any time after the
1070	establishment of the timeshare plan, without the consent of the
1071	purchasers or owners'association being required, a statement in
1072	conspicuous type in substantially the following form: Facilities
1073	may be expanded or added without consent of the purchasers or
1074	the owners'association(s). Immediately following this
1075	statement, a description of such reserved rights shall be
1076	included.
1077	(j)1. For a real property timeshare plan,an explanation
1078	of the status of the title to the real property underlying the
1079	timeshare plan, including a statement of the existence of any
1080	lien, defect, judgment, mortgage, or other encumbrance affecting
1081	the title to the property, and how such lien, defect, judgment,
1082	mortgage, or other encumbrance will be removed or satisfied
1083	prior to closing.
1084	2. For a personal property timeshare plan, an explanation
1085	of the status of title to the personal property underlying the
1086	timeshare plan, including a statement of the existence of any
1087	lien, defect, judgment, or other encumbrance affecting the title
1088	to the personal property, and how such lien, defect, judgment,
1089	or other encumbrance will be removed or satisfied prior to
1090	closing.
1091	(k) A description of any judgment against the developer,
1092	the managing entity, the owner of the underlying fee, or the
1093	owner of the underlying personal property fee, which judgment is
1094	material to the timeshare plan; the status of any pending suit
1095	to which the developer, the managing entity, the owner of the
1096	underlying fee, or the owner of the underlying personal property
1097	feeis a party, which suit is material to the timeshare plan;
1098	and any other suit which is material to the timeshare plan of
1099	which the developer, managing entity, the owner of the
1100	underlying fee, or the owner of the underlying personal property
1101	feehas actual knowledge. If no judgments or pending suits
1102	exist, there shall be a statement of such fact.
1103	(l) A description of all unusual and material
1104	circumstances, features, and characteristics of the real
1105	property or personal property underlying or comprising the
1106	timeshare plan.
1107	(m) A description of any financing to be offered to
1108	purchasers by the developer or any person or entity in which the
1109	developer has a financial interest, together with a disclosure
1110	that the description of such financing may be changed by the
1111	developer and that any change in the financing offered to
1112	prospective purchasers will not be deemed to be a material
1113	change.
1114	(n) A detailed explanation of any financial arrangements
1115	which have been provided for completion of all promised
1116	improvements.
1117	(o) The name and address of the managing entity; a
1118	statement whether the seller may change the managing entity or
1119	its control and, if so, the manner by which the seller may
1120	change the managing entity; a statement of the arrangements for
1121	management, maintenance, and operation of the accommodations and
1122	facilities and of other property that will serve the purchasers;
1123	and a description of the management arrangement and any
1124	contracts for these purposes having a term in excess of 1 year,
1125	including the names of the contracting parties, the term of the
1126	contract, the nature of the services included, and the
1127	compensation, stated for a month and for a year, and provisions
1128	for increases in the compensation. In the case of a personal
1129	property timeshare plan in which the accommodations or
1130	facilities are located on or in a documented vessel or foreign
1131	vessel as provided in s. 721.08(2)(c)3.e., a statement shall be
1132	included that describes the trustee’s or owners’ association’s
1133	access to the certificates of classification and that the
1134	certificate of classification will be made available to
1135	purchasers on request.
1136	(p) If any person other than the purchasers has the right
1137	to retain control of the board of administration of the owners'
1138	association, if any,for a period of time which may exceed 1
1139	year after the closing of the sale of a majority of the
1140	timeshare interests in that timeshare plan to persons other than
1141	successors or concurrent developers and the plan is one in which
1142	all purchasers automatically become members of the owners'
1143	association, a statement in conspicuous type in substantially
1144	the following form: The developer (or other person) has the
1145	right to retain control of the owners'association after a
1146	majority of the timeshare interests have been sold. Immediately
1147	following this statement, a description of the applicable
1148	transfer of control provisions of the timeshare plan shall be
1149	included.
1150	(q)1. If there are any restrictions upon the sale,
1151	transfer, conveyance, or leasing of a timeshare interest, a
1152	statement in conspicuous type in substantially the following
1153	form: The sale, lease, or transfer of timeshare interests is
1154	restricted or controlled. Immediately following this statement,
1155	a description of the nature of the restriction, limitation, or
1156	control on the sale, lease, or transfer of timeshare interests
1157	shall be included.
1158	2. The following statement in conspicuous type in
1159	substantially the following form: The purchase of a timeshare
1160	interest should be based upon its value as a vacation experience
1161	or for spending leisure time, and not considered for purposes of
1162	acquiring an appreciating investment or with an expectation that
1163	the timeshare interest may be resold.
1164	(r) If the timeshare plan is part of a phase project, a
1165	statement to that effect and a complete description of the
1166	phasing. Notwithstanding any provisions of s. 718.110 or s.
1167	719.1055, a developer may develop a timeshare condominium or a
1168	timeshare cooperative in phases if the original declaration of
1169	condominium or cooperative documents submitting the initial
1170	phase to condominium ownership or cooperative ownership or an
1171	amendment to the declaration of condominium or cooperative
1172	documents which has been approved by all of the unit owners and
1173	unit mortgagees provides for phasing. Notwithstanding any
1174	provisions of s. 718.403 or s. 719.403 to the contrary, the
1175	original declaration of condominium or cooperative documents, or
1176	an amendment to the declaration of condominium or cooperative
1177	documents adopted pursuant to this subsection, need only
1178	generally describe the developer's phasing plan and the land
1179	which may become part of the condominium or cooperative, and, in
1180	conjunction therewith, the developer may also reserve all rights
1181	to vary his or her phasing plan as to phase boundaries, plot
1182	plans and floor plans, timeshare unit types, timeshare unit
1183	sizes and timeshare unit type mixes, numbers of timeshare units,
1184	and facilities with respect to each subsequent phase. There
1185	shall be no time limit during which a developer of a timeshare
1186	condominium or timeshare cooperative must complete his or her
1187	phasing plan, and the developer shall not be required to notify
1188	owners of existing timeshare estates of his or her decision not
1189	to add one or more proposed phases.
1190	(s) A description of the material restrictions, if any, to
1191	be imposed on timeshare interests concerning the use of any of
1192	the accommodations or facilities, including statements as to
1193	whether there are restrictions upon children and pets or a
1194	reference to a copy of the documents containing the restrictions
1195	which shall be attached as an exhibit. If there are no
1196	restrictions, there shall be a statement of such fact.
1197	(t) If there is any land or personal propertythat is
1198	offered by the developer for use by the purchasers and which is
1199	neither owned by them nor leased to them, the owners'
1200	association, or any entity controlled by the purchasers, a
1201	statement describing the land or personal property, how it will
1202	serve the timeshare plan, and the nature and term of service.
1203	(u) An estimated operating budget for the timeshare plan
1204	and a schedule of the purchaser's expenses shall be attached as
1205	an exhibit and shall contain the following information:
1206	1. The estimated annual expenses of the timeshare plan
1207	collectible from purchasers by assessments. The estimated
1208	payments by the purchaser for assessments shall also be stated
1209	in the estimated amounts for the times when they will be due.
1210	Expenses shall also be shown for the shortest timeshare period
1211	offered for sale by the developer. If the timeshare plan
1212	provides for the offer and sale of units to be used on a
1213	nontimeshare basis, the estimated monthly and annual expenses of
1214	such units shall be set forth in a separate schedule.
1215	2. The estimated weekly, monthly, and annual expenses of
1216	the purchaser of each timeshare interest, other than assessments
1217	payable to the managing entity. Expenses which are personal to
1218	purchasers that are not uniformly incurred by all purchasers or
1219	that are not provided for or contemplated by the timeshare plan
1220	documents may be excluded from this estimate.
1221	3. The estimated items of expenses of the timeshare plan
1222	and the managing entity, except as excluded under subparagraph
1223	2., including, but not limited to, if applicable, the following
1224	items, which shall be stated either as management expenses
1225	collectible by assessments or as expenses of the purchaser
1226	payable to persons other than the managing entity:
1227	a. Expenses for the managing entity:
1228	(I) Administration of the managing entity.
1229	(II) Management fees.
1230	(III) Maintenance.
1231	(IV) Rent for facilities.
1232	(V) Taxes upon timeshare property.
1233	(VI) Taxes upon leased areas.
1234	(VII) Insurance.
1235	(VIII) Security provisions.
1236	(IX) Other expenses.
1237	(X) Operating capital.
1238	(XI) Reserves for deferred maintenance and reserves for
1239	capital expenditures, including:.
1240	(A) Reserves for deferred maintenance or capital
1241	expenditures of accommodations and facilities of a real property
1242	timeshare plan, if any.All reserves for any accommodations and
1243	facilities of real property timeshare planslocated in this
1244	state shall be calculated by a formula which is based upon
1245	estimated life and replacement cost of each reserve item.
1246	Reserves for deferred maintenance for such accommodations and
1247	facilities shall include accounts for roof replacement, building
1248	painting, pavement resurfacing, replacement of timeshare unit
1249	furnishings and equipment, and any other component, the useful
1250	life of which is less than the useful life of the overall
1251	structure. For any accommodations and facilities of real
1252	property timeshare planslocated outside of this state, the
1253	developer shall disclose the amount of reserves for deferred
1254	maintenance or capital expenditures required by the law of the
1255	situs state, if applicable, and maintained for such
1256	accommodations and facilities.
1257	(B) Reserves for deferred maintenance or capital
1258	expenditures of accommodations and facilities of a personal
1259	property timeshare plan, if any. If such reserves are
1260	maintained, the estimated operating budget shall disclose the
1261	methodology of how the reserves are calculated. If a personal
1262	property timeshare plan does not require reserves, the following
1263	statement, in conspicuous type, shall appear in both the budget
1264	and the public offering statement:
1265
1266	The estimated operating budget for this personal property
1267	timeshare plan does not include reserves for deferred
1268	maintenance or capital expenditures; each timeshare interest may
1269	be subject to substantial special assessments from time to time
1270	because no such reserves exist.
1271
1272	(XII) Fees payable to the division.
1273	b. Expenses for a purchaser:
1274	(I) Rent for the timeshare unit, if subject to a lease.
1275	(II) Rent payable by the purchaser directly to the lessor
1276	or agent under any lease for the use of facilities, which use
1277	and payment is a mandatory condition of ownership and is not
1278	included in the common expenses or assessments for common
1279	maintenance paid by the purchasers to the managing entity.
1280	4. The estimated amounts shall be stated for a period of
1281	at least 12 months and may distinguish between the period prior
1282	to the time that purchasers elect a majority of the board of
1283	administration and the period after that date.
1284	5. If the developer intends to guarantee the level of
1285	assessments, such guarantee must be based upon a good faith
1286	estimate of the revenues and expenses of the timeshare plan. The
1287	guarantee must include a description of the following:
1288	a. The specific time period measured in one or more
1289	calendar or fiscal years during which the guarantee will be in
1290	effect.
1291	b. A statement that the developer will pay all common
1292	expenses incurred in excess of the total revenues of the
1293	timeshare plan pursuant to s. 721.15(2) if the developer has
1294	excused himself or herself from the payment of assessments
1295	during the guarantee period.
1296	c. The level, expressed in total dollars, at which the
1297	developer guarantees the budget. If the developer has reserved
1298	the right to extend or increase the guarantee level pursuant to
1299	s. 721.15(2), a disclosure must be included to that effect.
1300	6. If the developer intends to provide a trust fund to
1301	defer or reduce the payment of annual assessments, a copy of the
1302	trust instrument shall be attached as an exhibit and shall
1303	include a description of such arrangement, including, but not
1304	limited to:
1305	a. The specific amount of such trust funds and the source
1306	of the funds.
1307	b. The name and address of the trustee.
1308	c. The investment methods permitted by the trust
1309	agreement.
1310	d. A statement in conspicuous type that the funds from the
1311	trust account may not cover all assessments and that there is no
1312	guarantee that purchasers will not have to pay assessments in
1313	the future.
1314	7. The budget of a phase timeshare plan may contain a note
1315	identifying the number of timeshare interests covered by the
1316	budget, indicating the number of timeshare interests, if any,
1317	estimated to be declared as part of the timeshare plan during
1318	that calendar year, and projecting the common expenses for the
1319	timeshare plan based upon the number of timeshare interests
1320	estimated to be declared as part of the timeshare plan during
1321	that calendar year.
1322	(v) A schedule of estimated closing expenses to be paid by
1323	a purchaser or lessee of a timeshare interest and a statement as
1324	to whether a title opinion or title insurance policy is
1325	available to the purchaser and, if so, at whose expense.
1326	(w) The identity of the developer and the chief operating
1327	officer or principal directing the creation and sale of the
1328	timeshare plan and a statement of the experience of each in this
1329	field or, if no experience, a statement of that fact.
1330	(x) A statement of the total financial obligation of the
1331	purchaser, including the purchase price and any additional
1332	charges to which the purchaser may be subject.
1333	(y) The name of any person who will or may have the right
1334	to alter, amend, or add to the charges to which the purchaser
1335	may be subject and the terms and conditions under which such
1336	alterations, amendments, or additions may be imposed.
1337	(z) A statement of the purchaser's right of cancellation
1338	of the purchase contract.
1339	(aa) A description of the insurance coverage provided for
1340	the timeshare plan.
1341	(bb) A statement as to whether the timeshare plan is
1342	participating in an exchange program and, if so, the name and
1343	address of the exchange company offering the exchange program.
1344	(cc) The existence of rules and regulations regarding any
1345	reservation features governing a purchaser's ability to make
1346	reservations for a timeshare period, including, if applicable, a
1347	conspicuous type disclaimer in substantially the following form:
1348
1349	The right to reserve a timeshare period is subject to rules and
1350	regulations of the timeshare plan reservation system.
1351
1352	(dd) If a developer is filing a timeshare plan that
1353	includes a timeshare instrument or component site document that
1354	was in conformance with the laws and rules in existence at the
1355	time the timeshare plan was created but does not conform to
1356	existing laws and rules that govern the timeshare plan and the
1357	developer does not have the authority or power to amend or
1358	change the timeshare instrument or component site document to
1359	conform to such existing laws or rules as directed by the
1360	division, a brief explanation of current law and the conflict
1361	with the timeshare instrument or component site document,
1362	preceded by disclaimer in conspicuous type in substantially the
1363	following form:
1364
1365	Florida law has been amended and certain provisions in [insert
1366	appropriate reference to timeshare instrument or component site
1367	document] that were in conformance with Florida law as it
1368	existed at the time the timeshare plan was created are not in
1369	conformance with current Florida law. These documents may only
1370	be amended by [insert appropriate reference to person or entity
1371	that has the right to amend or change the timeshare instrument
1372	or component site document]. The developer does not warrant that
1373	such documents are in technical compliance with all applicable
1374	Florida laws and regulations. All questions regarding amendment
1375	of these documents should be directed to [insert appropriate
1376	reference to person or entity that has the right to amend or
1377	change the timeshare instrument or component site document].
1378
1379	(ee) Any other information that a seller, with the
1380	approval of the division, desires to include in the public
1381	offering statement.
1382	(ff) Copies of the following documents and plans, to the
1383	extent they are applicable, shall be included as exhibits to the
1384	filed registeredpublic offering statement provided, if the
1385	timeshare plan has not been declared or createdat the time of
1386	the filing, the developer shall provide proposed documents:
1387	1. The declaration of condominium.
1388	2. The cooperative documents.
1389	3. The declaration of covenants and restrictions.
1390	4. The articles of incorporation creating the owners'
1391	association.
1392	5. The bylaws of the owners'association.
1393	6. Any Theground lease or other underlying lease of the
1394	real property associated with on which the timeshare plan is
1395	situated. In the case of a personal property timeshare plan, any
1396	lease of the personal property associated with the personal
1397	property timeshare plan.
1398	7. The management agreement and all maintenance and other
1399	contracts regarding the management and operation of the
1400	timeshare property which have terms in excess of 1 year.
1401	8. The estimated operating budget for the timeshare plan
1402	and the required schedule of purchasers' expenses.
1403	9. The floor plan of each type of accommodation and the
1404	plot plan showing the location of all accommodations and
1405	facilities declared as part of the timeshare plan and filed with
1406	the division.
1407	10. The lease for any facilities.
1408	11. A declaration of servitude of properties serving the
1409	accommodations and facilities, but not owned by purchasers or
1410	leased to them or the owners'association.
1411	12. Any documents required by s. 721.03(3)(e) as the
1412	result of the inclusion of a timeshare plan in the conversion of
1413	the building to condominium or cooperative ownership.
1414	13. The form of agreement for sale or lease of timeshare
1415	interests.
1416	14. The executed agreement for escrow of payments made to
1417	the developer prior to closing and the form of any agreement for
1418	escrow of ad valorem tax escrow payments, if any,to be made
1419	into an ad valorem tax escrow account pursuant to s. 192.037(6).
1420	15. The documents containing any restrictions on use of
1421	the property required by paragraph (s).
1422	16. A letter from the escrow agent or filing attorney
1423	confirming that the escrow agent and its officers, directors, or
1424	other partners are independent pursuant to the requirements of
1425	this chapter.
1426	17. Any nondisturbance and notice to creditors instrument
1427	required by s. 721.08.
1428	18. In the case of any personal property timeshare plan in
1429	which the accommodations and facilities are located on or in a
1430	documented vessel or foreign vessel as provided in s.
1431	721.08(2)(c)3.e., a copy of the certificate of ownership of such
1432	vessel and either a copy of the certificate of documentation or
1433	certificate of registry of such vessel.
1434	19. An executed affidavit given under oath by an attorney
1435	licensed to practice law in any jurisdiction in the United
1436	States stating that the attorney has researched the applicable
1437	laws of the jurisdiction in which governing law has been
1438	established and the laws of the jurisdiction in which the vessel
1439	is registered, and has found that the timeshare instrument
1440	complies with the provisions of s. 721.08(2)(c)3.e.(II)(C) and
1441	(III).
1442	20.16.Any other documents or instruments creating the
1443	timeshare plan.
1444	(gg) Such other information as is necessary to fairly,
1445	meaningfully, and effectively disclose all aspects of the
1446	timeshare plan, including, but not limited to, any disclosures
1447	made necessary by the operation of s. 721.03(8). However, if a
1448	developer has, in good faith, attempted to comply with the
1449	requirements of this section, and if, in fact, he or she has
1450	substantially complied with the disclosure requirements of this
1451	chapter, nonmaterial errors or omissions shall not be
1452	actionable.
1453	(hh) Notwithstanding the provisions of this subsection,
1454	the filed registeredpublic offering statement for a component
1455	site of a multisite timeshare plan filed pursuant to this
1456	subsection may contain cross-references to information contained
1457	in the related multisite timeshare plan filed registeredpublic
1458	offering statement filed pursuant to s. 721.55 in lieu of
1459	repeating such information.
1460	(6) The division is authorized to prescribe by rule the
1461	form of the approved purchaser public offering statement that
1462	must be furnished by the developer to each purchaser. The form
1463	of the purchaser public offering statement must provide fair,
1464	meaningful, and effective disclosure of all aspects of the
1465	timeshare plan. For timeshare plans filed pursuant to this part,
1466	the developer shall furnish each purchaser with the following:
1467	(a) A copy of the purchaser public offering statement text
1468	in the form approved by the division for delivery to purchasers.
1469	(b) Copies of the exhibits required to be filed with the
1470	division pursuant to subparagraphs (5)(ff)1., 2., 4., 5., 8.,
1471	and 20. 16.
1472	(c) A receipt for timeshare plan documents and a list
1473	describing any exhibit to the filed registeredpublic offering
1474	statement filed with the division which is not delivered to the
1475	purchaser. The division is authorized to prescribe by rule the
1476	form of the receipt for timeshare plan documents and the
1477	description of exhibits list that must be furnished to the
1478	purchaser. The description of documents list utilized by a
1479	developer shall be filed with the division for review as part of
1480	the filed registeredpublic offering statement pursuant to this
1481	section. The developer shall be required to provide the managing
1482	entity with a copy of the approved filed registeredpublic
1483	offering statement and any approved amendments thereto to be
1484	maintained by the managing entity as part of the books and
1485	records of the timeshare plan pursuant to s. 721.13(3)(d).
1486	(d) Any other exhibit which the developer includes as part
1487	of the purchaser public offering statement, provided that the
1488	developer first files the exhibit with the division.
1489	(e) An executed copy of any document which the purchaser
1490	signs.
1491	(f) Each purchaser shall receive a fully executed paper
1492	copy of the purchase contract.
1493	Section 7. Paragraph (g) of subsection (1) of section
1494	721.075, Florida Statutes, is amended and paragraph (e) is added
1495	to subsection (2) of said section, to read:
1496	721.075 Incidental benefits.--Incidental benefits shall be
1497	offered only as provided in this section.
1498	(1) Accommodations, facilities, products, services,
1499	discounts, or other benefits which satisfy the requirements of
1500	this subsection shall be subject to the provisions of this
1501	section and exempt from the other provisions of this chapter
1502	which would otherwise apply to such accommodations or facilities
1503	if and only if:
1504	(g) The incidental benefit is filed with the division for
1505	reviewin conjunction with the filing of a timeshare plan or in
1506	connection with a previously filed timeshare plan.
1507	(2) Each purchaser shall execute a separate acknowledgment
1508	and disclosure statement with respect to all incidental
1509	benefits, which statement shall include the following
1510	information:
1511	(e) A statement indicating the source of the services,
1512	points, or other products that constitute the incidental
1513	benefit.
1514	Section 8. Section 721.08, Florida Statutes, is amended to
1515	read:
1516	721.08 Escrow accounts; nondisturbance instruments;
1517	alternate security arrangements; transfer of legal title.--
1518	(1) Prior to the filing of a registeredpublic offering
1519	statement with the division, all developers shall establish an
1520	escrow account with an escrow agent for the purpose of
1521	protecting the funds or other property of purchasers required to
1522	be escrowed by this section. An escrow agent shall maintain the
1523	accounts called for in this section only in such a manner as to
1524	be under the direct supervision and control of the escrow agent.
1525	The escrow agent shall have a fiduciary duty to each purchaser
1526	to maintain the escrow accounts in accordance with good
1527	accounting practices and to release the purchaser's funds or
1528	other property from escrow only in accordance with this chapter.
1529	The escrow agent shall retain all affidavits received pursuant
1530	to this section for a period of 5 years. Should the escrow agent
1531	receive conflicting demands for funds or otherproperty held in
1532	escrow, the escrow agent shall immediately notify the division
1533	of the dispute and either promptly submit the matter to
1534	arbitration or, by interpleader or otherwise, seek an
1535	adjudication of the matter by court.
1536	(2) One hundred percent of all funds or other property
1537	which is received from or on behalf of purchasers of the
1538	timeshare plan or timeshare interest prior to the occurrence of
1539	events required in this subsection shall be deposited pursuant
1540	to an escrow agreement approved by the division. The escrow
1541	agreement shall provide that the funds or otherproperty may be
1542	released from escrow only as follows:
1543	(a) Cancellation.--In the event a purchaser gives a valid
1544	notice of cancellation pursuant to s. 721.10 or is otherwise
1545	entitled to cancel the sale, the funds or otherproperty
1546	received from or on behalf of the purchaser, or the proceeds
1547	thereof, shall be returned to the purchaser. Such refund shall
1548	be made within 20 days after ofdemand therefor by the purchaser
1549	or within 5 days after receipt of funds from the purchaser's
1550	cleared check, whichever is later. If the purchaser has received
1551	benefits under the contract prior to the effective date of the
1552	cancellation, the funds or otherproperty to be returned to the
1553	purchaser may be reduced by the proportion of contract benefits
1554	actually received.
1555	(b) Purchaser's default.--Following expiration of the 10-
1556	day cancellation period, if the purchaser defaults in the
1557	performance of her or his obligations under the terms of the
1558	contract to purchase or such other agreement by which a seller
1559	sells the timeshare interest, the developer shall provide an
1560	affidavit to the escrow agent requesting release of the escrowed
1561	funds or otherproperty and shall provide a copy of such
1562	affidavit to the purchaser who has defaulted. The developer's
1563	affidavit, as required herein, shall include:
1564	1. A statement that the purchaser has defaulted and that
1565	the developer has not defaulted;
1566	2. A brief explanation of the nature of the default and
1567	the date of its occurrence;
1568	3. A statement that pursuant to the terms of the contract
1569	the developer is entitled to the funds held by the escrow agent;
1570	and
1571	4. A statement that the developer has not received from
1572	the purchaser any written notice of a dispute between the
1573	purchaser and developer or a claim by the purchaser to the
1574	escrow.
1575	(c) Compliance with conditions.--
1576	1. Timeshare licenses.--If the timeshare plan is one in
1577	which timeshare licenses are to be sold and no cancellation or
1578	default has occurred, the escrow agent may release the escrowed
1579	funds or other property to or on the order of the developerupon
1580	presentation of:
1581	a. An affidavit by the developer that all of the following
1582	conditions have been met:
1583	(I) Expiration of the cancellation period.
1584	(II) Completion of construction.
1585	(III) Closing.
1586	(IV) Either:
1587	(A) Execution, delivery,and recordation by each
1588	interestholder of the nondisturbance and notice to creditors
1589	instrument, as described in this section; or, alternatively,
1590	(B)Transfer by the developer of legal title to the
1591	subject accommodations and facilities, or all use rights
1592	therein, into to a trust satisfying the requirements of
1593	subparagraph 4. sub-subparagraph 3.b. and the execution,
1594	delivery,and recordation by each other interestholder of the
1595	nondisturbance and notice to creditors instrument, as described
1596	in this section.
1597	b. A certified copy of each therecorded nondisturbance
1598	and notice to creditors instrument that complies with subsection
1599	(3).
1600	c. One of the following:
1601	(I) A copy of a memorandum of agreement, as defined in s.
1602	721.05(21), together with satisfactory evidence that the
1603	original memorandum of agreement has been irretrievably
1604	delivered for recording to the appropriate official responsible
1605	for maintaining the public records in the county in which the
1606	subject accommodations and facilities are located. The original
1607	memorandum of agreement must be recorded within 180 days after
1608	the date on which the purchaser executed her or his purchase
1609	agreement.
1610	(II) A notice delivered for recording to the appropriate
1611	official responsible for maintaining the public records in each
1612	county in which the subject accommodations and facilities are
1613	located notifying all persons of the identity of an independent
1614	escrow agent or trustee satisfying the requirements of
1615	subparagraph 4. sub-subparagraph 3.b.that shall maintain
1616	separate books and records, in accordance with good accounting
1617	practices, for the timeshare plan in which timeshare licenses
1618	are to be sold. The books and records shall indicate each
1619	accommodation and facility that is subject to such a timeshare
1620	plan and each purchaser of a timeshare license in the timeshare
1621	plan.
1622	2. Timeshare estates.--If the timeshare plan is one in
1623	which timeshare estates are to be sold, other than interests in
1624	a trust pursuant to subparagraph 3.,and no cancellation or
1625	default has occurred, the escrow agent may release the escrowed
1626	funds or other property to or on the order of the developerupon
1627	presentation of:
1628	a. An affidavit by the developer that all of the following
1629	conditions have been met:
1630	(I) Expiration of the cancellation period.
1631	(II) Completion of construction.
1632	(III) Closing.
1633	b. If the timeshare estate is sold by agreement for deed,
1634	a certified copy of the recorded nondisturbance and notice to
1635	creditors instrument, as described in this section.
1636	c. Evidence that each accommodation and facility:
1637	(I) Is free and clear of the claims of any
1638	interestholders, other than the claims of interestholders that,
1639	through a recorded instrument, are irrevocably made subject to
1640	the timeshare instrument and the use rights of purchasers made
1641	available through the timeshare instrument;
1642	(II) Is the subject of a recorded nondisturbance and
1643	notice to creditors instrument that complies with subsection (3)
1644	and s. 721.17; or
1645	(III) Has been transferred into a trust satisfying the
1646	requirements of subparagraph 4.
1647	d. Evidence that the timeshare estate:
1648	(I)Is free and clear of the claims of any
1649	interestholders, other than the claims of interestholders that,
1650	through a recorded instrument, are irrevocably made subject to
1651	the timeshare instrument and the use rights of purchasers made
1652	available through the timeshare instrument;,or
1653	(II) Is that arethe subject of a recorded nondisturbance
1654	and notice to creditors instrument that complies with subsection
1655	(3) and s. 721.17.
1656	3. Personal property timeshare interests.--If the
1657	timeshare plan is one in which personal property timeshare
1658	interests estates are to be sold as interests in a trust that
1659	complies in all respects with the provisions of sub-subparagraph
1660	b.,and no cancellation or default has occurred, the escrow
1661	agent may release the escrowed funds or other property to or on
1662	the order of the developerupon presentation of:
1663	a. An affidavit by the developer that all of the following
1664	conditions have been met:
1665	(I) Expiration of the cancellation period.
1666	(II) Completion of construction.
1667	(III) Transfer of the subject accommodations and
1668	facilities, or all use rights therein, to the trust.
1669	(IV)Closing.
1670	b. If the personal property timeshare interest is sold by
1671	agreement for transfer, evidence that the agreement for transfer
1672	complies fully with s. 721.06 and this section.
1673	c. Evidence that one of the following has occurred:
1674	(I) 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 a trust satisfying the
1677	requirements of subparagraph 4.; or
1678	(II) Transfer by the owner of the underlying personal
1679	property of legal title to the subject accommodations and
1680	facilities or all use rights therein into an owners' association
1681	satisfying the requirements of subparagraph 5.
1682	d. Evidence of compliance with the provisions of
1683	subparagraph 6., if required.
1684	e. If a personal property timeshare plan is created with
1685	respect to accommodations and facilities that are located on or
1686	in an oceangoing vessel, including a “documented vessel” or a
1687	“foreign vessel,” as defined and governed by 46 U.S.C., chapter
1688	301:
1689	(I) In making the transfer required in sub-subparagraph
1690	c., the developer shall use as its transfer instrument a
1691	document that establishes and protects the continuance of the
1692	use rights in the subject accommodations and facilities in a
1693	manner that is enforceable by the trust or owners' association.
1694	(II) The transfer instrument shall comply fully with the
1695	provisions of this chapter, shall be part of the timeshare
1696	instrument, and shall contain specific provisions that:
1697	(A) Prohibit the vessel owner, the developer, any manager
1698	or operator of the vessel, the owners' association or the
1699	trustee, the managing entity, or any other person from incurring
1700	any liens against the vessel except for liens that are required
1701	for the operation and upkeep of the vessel, including liens for
1702	fuel expenditures, repairs, crews' wages, and salvage, and
1703	except as provided in sub-sub-subparagraphs 4.b.(III) and
1704	5.b.(III). All expenses, fees, and taxes properly incurred in
1705	connection with the creation, satisfaction, and discharge of any
1706	such permitted lien, or a prorated portion thereof if less than
1707	all of the accommodations on the vessel are subject to the
1708	timeshare plan, shall be common expenses of the timeshare plan.
1709	(B) Grant a lien against the vessel in favor of the
1710	owners' association or trustee to secure the full and faithful
1711	performance of the vessel owner and developer of all of their
1712	obligations to the purchasers.
1713	(C) Establish governing law in a jurisdiction that
1714	recognizes and will enforce the timeshare instrument and the
1715	laws of the jurisdiction of registry of the vessel.
1716	(D) Require that a description of the use rights of
1717	purchasers be posted and displayed on the vessel in a manner
1718	that will give notice of such rights to any party examining the
1719	vessel. This notice must identify the owners' association or
1720	trustee and include a statement disclosing the limitation on
1721	incurring liens against the vessel described in sub-sub-sub-
1722	subparagraph (A).
1723	(E) Include the nondisturbance and notice to creditors
1724	instrument for the vessel owner and any other interestholders.
1725	(F) The owners’ association created under subparagraph 5.
1726	or trustee created under subparagraph 4. shall have access to
1727	any certificates of classification in accordance with the
1728	timeshare instrument.
1729	(III) If the vessel is a foreign vessel, the vessel must
1730	be registered in a jurisdiction that permits a filing evidencing
1731	the use rights of purchasers in the subject accommodations and
1732	facilities, offers protection for such use rights against
1733	unfiled and inferior claims, and recognizes the document or
1734	instrument creating such use rights as a lien against the
1735	vessel.
1736	(IV) In addition to the disclosures required by s.
1737	721.07(5), the public offering statement and purchase contract
1738	must contain a disclosure in conspicuous type in substantially
1739	the following form:
1740
1741	The laws of the State of Florida govern the offering of this
1742	timeshare plan in this state. There are inherent risks in
1743	purchasing a timeshare interest in this timeshare plan because
1744	the accommodations and facilities of the timeshare plan are
1745	located on a vessel that will sail into international waters and
1746	into waters governed by many different jurisdictions. Therefore,
1747	the laws of the State of Florida cannot fully protect your
1748	purchase of an interest in this timeshare plan. Specifically,
1749	management and operational issues may need to be addressed in
1750	the jurisdiction in which the vessel is registered, which is
1751	________(insert jurisdiction in which vessel is registered).
1752	Concerns of purchasers may be sent to ____________(insert name
1753	of applicable regulatory agency and address).
1754	4. Trust.--
1755	a. If the subject accommodations or facilities, or all use
1756	rights therein, are to be transferred into a trust in order to
1757	comply with this paragraph, such transfer shall take place
1758	pursuant to this subparagraph.
1759	b.Prior to the transfer by each interestholder of the
1760	subject accommodations and facilities, or all use rights
1761	therein, to a trust, any lien or other encumbrance against such
1762	accommodations and facilities, or use rights therein, shall be
1763	made subject to a nondisturbance and notice to creditors
1764	instrument pursuant to subsection (3) as described in this
1765	section. No transfer pursuant to this subparagraph sub-
1766	subparagraphshall become effective until the trustee accepts
1767	such transfer and the responsibilities set forth herein. A trust
1768	established pursuant to this subparagraph sub-subparagraphshall
1769	comply with the following provisions:
1770	(I) The trustee shall be an individual or a business
1771	entity authorized and qualified to conduct trust business in
1772	this state. Any corporation authorized to do business in this
1773	state may act as trustee in connection with a timeshare plan
1774	pursuant to this chapter. The trustee must be independent from
1775	any developer or managing entity of the timeshare plan or any
1776	interestholder of any accommodation or facility of such plan.
1777	(II) The trust shall be irrevocable so long as any
1778	purchaser has a right to occupy any portion of the timeshare
1779	property pursuant to the timeshare plan.
1780	(III) The trustee shall not convey, hypothecate, mortgage,
1781	assign, lease, or otherwise transfer or encumber in any fashion
1782	any interest in or portion of the timeshare property with
1783	respect to which any purchaser has a right of use or occupancy
1784	unless the timeshare plan is terminated pursuant to the
1785	timeshare instrument, or such conveyance, hypothecation,
1786	mortgage, assignment, lease, transfer, or encumbrance is
1787	approved by a vote of two-thirds of all voting interests of the
1788	timeshare plan and such decision is declared by a court of
1789	competent jurisdiction to be in the best interests of the
1790	purchasers of the timeshare plan. The trustee shall notify the
1791	division in writing within 10 days after ofreceiving notice of
1792	the filing of any petition relating to obtaining such a court
1793	order. The division shall have standing to advise the court of
1794	the division's interpretation of the statute as it relates to
1795	the petition.
1796	(IV) All purchasers of the timeshare plan or the owners'
1797	association of the timeshare plan shall be the express
1798	beneficiaries of the trust. The trustee shall act as a fiduciary
1799	to the beneficiaries of the trust. The personal liability of the
1800	trustee shall be governed by s. 737.306. The agreement
1801	establishing the trust shall set forth the duties of the
1802	trustee. The trustee shall be required to furnish promptly to
1803	the division upon request a copy of the complete list of the
1804	names and addresses of the owners in the timeshare plan and a
1805	copy of any other books and records of the timeshare plan
1806	required to be maintained pursuant to s. 721.13 that are in the
1807	possession, custody, or control of the trustee. All expenses
1808	reasonably incurred by the trustee in the performance of its
1809	duties, together with any reasonable compensation of the
1810	trustee, shall be common expenses of the timeshare plan.
1811	(V) The trustee shall not resign upon less than 90 days'
1812	prior written notice to the managing entity and the division. No
1813	resignation shall become effective until a substitute trustee,
1814	approved by the division, is appointed by the managing entity
1815	and accepts the appointment.
1816	(VI) The documents establishing the trust arrangement
1817	shall constitute a part of the timeshare instrument.
1818	(VII) For trusts holding property in a timeshare plan
1819	located outside this state, the trust and trusteeholding such
1820	property shall be deemed in compliance with the requirements of
1821	this subparagraph if such trust and trustee are isauthorized
1822	and qualified to conduct trust business under the laws of such
1823	jurisdiction and the agreement or law governing such trust
1824	arrangement provides substantially similar protections for the
1825	purchaser as are required in this subparagraph for trusts
1826	holding property in a timeshare plan in this state.
1827	(VIII) The trustee shall have appointed a registered agent
1828	in this state for service of process. In the event such a
1829	registered agent is not appointed, service of process may be
1830	served pursuant to s. 721.265.
1831	5. Owners’ association.--
1832	a. If the subject accommodations or facilities, or all use
1833	rights therein, are to be transferred into an owners’
1834	association in order to comply with this paragraph, such
1835	transfer shall take place pursuant to this subparagraph.
1836	b. Prior to the transfer by each interestholder of the
1837	subject accommodations and facilities, or all use rights
1838	therein, to an owners’ association, any lien or other
1839	encumbrance against such accommodations and facilities, or use
1840	rights therein, shall be made subject to a nondisturbance and
1841	notice to creditors instrument pursuant to subsection (3). No
1842	transfer pursuant to this subparagraph shall become effective
1843	until the owners’ association accepts such transfer and the
1844	responsibilities set forth herein. An owners’ association
1845	established pursuant to this subparagraph shall comply with the
1846	following provisions:
1847	(I) The owners’ association shall be a business entity
1848	authorized and qualified to conduct business in this state.
1849	Control of the board of directors of the owners’ association
1850	must be independent from any developer or managing entity of the
1851	timeshare plan or any interestholder.
1852	(II) The bylaws of the owners’ association shall provide
1853	that the corporation may not be voluntarily dissolved without
1854	the unanimous vote of all owners of personal property timeshare
1855	interests so long as any purchaser has a right to occupy any
1856	portion of the timeshare property pursuant to the timeshare
1857	plan.
1858	(III) The owners’ association shall not convey,
1859	hypothecate, mortgage, assign, lease, or otherwise transfer or
1860	encumber in any fashion any interest in or portion of the
1861	timeshare property with respect to which any purchaser has a
1862	right of use or occupancy, unless the timeshare plan is
1863	terminated pursuant to the timeshare instrument, or unless such
1864	conveyance, hypothecation, mortgage, assignment, lease,
1865	transfer, or encumbrance is approved by a vote of two-thirds of
1866	all voting interests of the association and such decision is
1867	declared by a court of competent jurisdiction to be in the best
1868	interests of the purchasers of the timeshare plan. The owners’
1869	association shall notify the division in writing within 10 days
1870	after receiving notice of the filing of any petition relating to
1871	obtaining such a court order. The division shall have standing
1872	to advise the court of the division's interpretation of the
1873	statute as it relates to the petition.
1874	(IV) All purchasers of the timeshare plan shall be members
1875	of the owners' association and shall be entitled to vote on
1876	matters requiring a vote of the owners’ association as provided
1877	in this chapter or the timeshare instrument. The owners’
1878	association shall act as a fiduciary to the purchasers of the
1879	timeshare plan. The articles of incorporation establishing the
1880	owners’ association shall set forth the duties of the owners’
1881	association. All expenses reasonably incurred by the owners’
1882	association in the performance of its duties, together with any
1883	reasonable compensation of the officers or directors of the
1884	owners’ association, shall be common expenses of the timeshare
1885	plan.
1886	(V) The documents establishing the owners’ association
1887	shall constitute a part of the timeshare instrument.
1888	(VI) For owners’ associations holding property in a
1889	timeshare plan located outside this state, the owners’
1890	association holding such property shall be deemed in compliance
1891	with the requirements of this subparagraph if such owners’
1892	association is authorized and qualified to conduct owners’
1893	association business under the laws of such jurisdiction and the
1894	agreement or law governing such arrangement provides
1895	substantially similar protections for the purchaser as are
1896	required in this subparagraph for owners’ associations holding
1897	property in a timeshare plan in this state.
1898	(VII) The owners’ association shall have appointed a
1899	registered agent in this state for service of process. In the
1900	event such a registered agent cannot be located, service of
1901	process may be made pursuant to s. 721.265.
1902	6. Personal property subject to certificate of title.--If
1903	any personal property that is an accommodation or facility of a
1904	timeshare plan is subject to a certificate of title in this
1905	state pursuant to chapter 319 or chapter 328, the following
1906	notation must be made on such certificate of title pursuant to
1907	s. 319.27(1) or s. 328.15(1):
1908
1909	The further transfer or encumbrance of the property subject to
1910	this certificate of title, or any lien or encumbrance thereon,
1911	is subject to the requirements of section 721.17, Florida
1912	Statutes, and the transferee or lienor agrees to be bound by all
1913	of the obligations set forth therein.
1914
1915	7.4.If the developer has previously provided a certified
1916	copy of any document required by this paragraph, she or he may
1917	for all subsequent disbursements substitute a true and correct
1918	copy of the certified copy, provided no changes to the document
1919	have been made or are required to be made.
1920	8. In the event that use rights relating to an
1921	accommodation or facility are transferred into a trust pursuant
1922	to subparagraph 4. or into an owners’ association pursuant to
1923	subparagraph 5., all other interestholders, including the owner
1924	of the underlying fee or underlying personal property, must
1925	execute a nondisturbance and notice to creditors instrument
1926	pursuant to subsection (3).
1927	(d) Substitution of other assurances for escrowed funds or
1928	other property.--Funds or other property escrowed as provided in
1929	this section may be released from escrow to or on the order of
1930	the developer upon acceptance by the director of the division of
1931	other assurances pursuant to subsection (5) as a substitute for
1932	such escrowed funds or other property. The amount of escrowed
1933	funds or other property that may be released pursuant to this
1934	paragraph shall be equal to or less than the face amount of the
1935	assurances accepted by the director from time to time.
1936	(3) NONDISTURBANCE AND NOTICE TO CREDITORS
1937	INSTRUMENT.--The nondisturbance and notice to creditors
1938	instrument, when required, shall be executed by each
1939	interestholder.
1940	(a)The instrument shall state that:
1941	1.(a)If the party seeking enforcement is not in default
1942	of its obligations, the instrument may be enforced by both the
1943	seller and any purchaser of the timeshare plan;
1944	2.(b)The instrument shall be effective as between the
1945	timeshare purchaser and interestholder despite any rejection or
1946	cancellation of the contract between the timeshare purchaser and
1947	developer as a result of bankruptcy proceedings of the
1948	developer; and
1949	3.(c) So long as a purchaser remains in good standing with
1950	respect to her or his obligations under the timeshare
1951	instrument, including making all payments to the managing entity
1952	required by the timeshare instrument with respect to the annual
1953	common expenses of the timeshare the interestholder has any
1954	interest in the accommodations, facilities, or plan, thenthe
1955	interestholder will fully honor all the rights of such purchaser
1956	relating to the subject accommodation or facility as reflected
1957	timeshare purchasers in and to the timeshare instrument plan,
1958	will honor the purchasers' right to cancel their contracts and
1959	receive appropriate refunds, and will comply with all other
1960	requirements of this chapter and rules promulgated hereunder.
1961
1962	The instrument shall contain language sufficient to provide
1963	subsequent creditors of the developer and interestholders with
1964	notice of the existence of the timeshare plan and of the rights
1965	of purchasers and shall serve to protect the interest of the
1966	timeshare purchasers from any claims of subsequent creditors.
1967	(b) Real property timeshare plans.--For real property
1968	timeshare plans, the instrument shall be recorded in the public
1969	records of the county in which the subject accommodations or
1970	facilities are located.
1971	(c) Personal property timeshare plans.--For personal
1972	property timeshare plans, the instrument shall be included
1973	within or attached as an exhibit to a security agreement or
1974	other agreement executed by the interestholder. Constructive
1975	notice of such security agreement or other agreement shall be
1976	filed in the manner prescribed by chapter 679 or other
1977	applicable law.
1978	(d) A copy of the recorded or filednondisturbance and
1979	notice to creditors instrument, when required, shall be provided
1980	to each timeshare purchaser at the time the purchase contract is
1981	executed.
1982	(4) In lieu of any escrow provisions required by this act,
1983	the director of the division shall have the discretion to permit
1984	deposit of the funds or other property in an escrow account as
1985	required by the jurisdiction in which the sale took place.
1986	(5)(a) In lieu of any escrows required by this section,
1987	the director of the division shall have the discretion to accept
1988	other assurances, including, but not limited to, a surety bond
1989	issued by a company authorized and licensed to do business in
1990	this state as surety or an irrevocable letter of credit in an
1991	amount equal to the escrow requirements of this section.
1992	(b) Notwithstanding anything in chapter 718 or chapter 719
1993	to the contrary, the director of the division shall have the
1994	discretion to accept other assurances pursuant to paragraph (a)
1995	in lieu of any requirement that completion of construction of
1996	one or more accommodations or facilities of a timeshare plan be
1997	accomplished prior to closing.
1998	(c) In lieu of a nondisturbance and notice to creditors
1999	instrument, when such an instrument is otherwise required by
2000	this section, the director of the division shall have the
2001	discretion to accept alternate means of protecting the
2002	continuing rights of purchasers in and to the subject
2003	accommodations or facilities of the timeshare plan as and for
2004	the term described in the timeshare instrument, and of providing
2005	effective constructive notice of such continuing purchaser
2006	rights to subsequent owners of the accommodations or facilities
2007	and to subsequent creditors of the affected interestholder.
2008	(d) In lieu of the requirements in s.
2009	721.08(2)(c)3.e.(III), the director of the division shall have
2010	the discretion to accept alternate means of protecting the use
2011	rights of purchasers in the subject accommodations and
2012	facilities of the timeshare plan against unfiled and inferior
2013	claims.
2014	(6) An escrow agent holding funds escrowed pursuant to
2015	this section may invest such escrowed funds in securities of the
2016	United States Government, or any agency thereof, or in savings
2017	or time deposits in institutions insured by an agency of the
2018	United States Government. The right to receive the interest
2019	generated by any such investments shall be paid to the party to
2020	whom the escrowed funds or otherproperty are paid unless
2021	otherwise specified by contract.
2022	(7) Each escrow agent shall maintain separate books and
2023	records for each timeshare plan and shall maintain such books
2024	and records in accordance with good accounting practices.
2025	(8) An escrow agent holding escrowed funds pursuant to
2026	this chapter that have not been claimed for a period of 5 years
2027	after the date of deposit shall make at least one reasonable
2028	attempt to deliver such unclaimed funds to the purchaser who
2029	submitted such funds to escrow. In making such attempt, an
2030	escrow agent is entitled to rely on a purchaser's last known
2031	address as set forth in the books and records of the escrow
2032	agent and is not required to conduct any further search for the
2033	purchaser. If an escrow agent's attempt to deliver unclaimed
2034	funds to any purchaser is unsuccessful, the escrow agent may
2035	deliver such unclaimed funds to the division and the division
2036	shall deposit such unclaimed funds in the Division of Florida
2037	Land Sales, Condominiums, and Mobile Homes Trust Fund, 30 days
2038	after giving notice in a publication of general circulation in
2039	the county in which the timeshare property containing the
2040	purchaser's timeshare interest is located. The purchaser may
2041	claim the same at any time prior to the delivery of such funds
2042	to the division. After delivery of such funds to the division,
2043	the purchaser shall have no more rights to the unclaimed funds.
2044	The escrow agent shall not be liable for any claims from any
2045	party arising out of the escrow agent's delivery of the
2046	unclaimed funds to the division pursuant to this section.
2047	(9) For each transfer of the legal title to a timeshare
2048	estate by a developer, the developer shall deliver an instrument
2049	evidencing such transfer to the purchaser or to a title
2050	insurance agent or the clerk of the court for recording. For
2051	each transfer of the legal title to a personal property
2052	timeshare interest by a developer, the developer shall deliver
2053	an instrument evidencing such transfer to the purchaser subject
2054	to the provisions of this section.
2055	(10)(a)Any developer, seller, or escrow agent who
2056	intentionally fails to comply with the provisions of this
2057	section concerning the establishment of an escrow account,
2058	deposits of funds into escrow, and withdrawal therefrom is
2059	guilty of a felony of the third degree, punishable as provided
2060	in s. 775.082, s. 775.083, or s. 775.084, or the successor
2061	thereof. The failure to establish an escrow account or to place
2062	funds therein as required in this section is prima facie
2063	evidence of an intentional and purposeful violation of this
2064	section.
2065	(b) Any developer, interestholder, trustee, or officer or
2066	director of an owners’ association who intentionally fails to
2067	comply with the provisions of this section concerning the
2068	establishment of a trust or owners’ association, conveyances of
2069	property into the trust or owners’ association, and conveyances
2070	or encumbrances of trust or owners’ association property is
2071	guilty of a felony of the third degree, punishable as provided
2072	in s. 775.082, s. 775.083, or s. 775.084, or the successor
2073	thereof. The failure to establish a trust or owners’
2074	association, or to transfer property into the trust or owners’
2075	association, or the failure of a trustee or officer or director
2076	of an owners’ association to comply with the trust agreement,
2077	articles of incorporation, or bylaws with respect to conveyances
2078	or encumbrances of trust or owners’ association property, as
2079	required by this section, is prima facie evidence of an
2080	intentional and purposeful violation of this section.
2081	Section 9. Paragraphs (a) and (d) of subsection (1),
2082	paragraph (c) of subsection (2), and paragraph (c) of subsection
2083	(3) of section 721.09, Florida Statutes, are amended to read:
2084	721.09 Reservation agreements; escrows.--
2085	(1)(a) Prior to filing the filed registeredpublic
2086	offering statement with the division, a seller shall not offer a
2087	timeshare plan for sale but may accept reservation deposits and
2088	advertise the reservation deposit program upon approval by the
2089	division of a fully executed escrow agreement and reservation
2090	agreement properly filed with the division.
2091	(d) A seller who has filed a reservation agreement and an
2092	escrow agreement under this section may advertise the
2093	reservation agreement program if the advertising material meets
2094	the following requirements:
2095	1. The seller complies with the provisions of s. 721.11
2096	with respect to such advertising material.
2097	2. The advertising material is limited to a general
2098	description of the proposed timeshare plan, including, but not
2099	limited to, a general description of the type, number, and size
2100	of accommodations and facilities and the name of the proposed
2101	timeshare plan.
2102	3. The advertising material contains a statement that the
2103	advertising material is being distributed in connection with an
2104	approved reservation agreement filing only and that the seller
2105	cannot offer an interest in the timeshare plan for sale until a
2106	filed registeredpublic offering statement has been filed with
2107	the division under this chapter.
2108	(2) Each executed reservation agreement shall be signed by
2109	the developer and shall contain the following:
2110	(c) A statement of the obligation of the developer to file
2111	a filed registeredpublic offering statement with the division
2112	prior to entering into binding contracts.
2113	(3)
2114	(c) The escrow agent may invest the escrowed funds in
2115	securities of the United States Government, or any agency
2116	thereof, or in savings or time deposits in institutions insured
2117	by an agency of the United States Government. The interest
2118	generated by any such investments shall be payable to the party
2119	entitled to receive the escrowed funds or otherproperty.
2120	Section 10. Paragraph (a) of subsection (1), paragraphs
2121	(b) and (e) of subsection (6), and subsections (7), (8), and (9)
2122	of section 721.11, Florida Statutes, are amended to read:
2123	721.11 Advertising materials; oral statements.--
2124	(1)(a) A developer may file All advertising material must
2125	be filed with the division for review by the developer prior to
2126	use. At the request of the developer, The division shall review
2127	any the advertising material filed for review by the developer
2128	and notify the developer of any deficiencies within 10 days
2129	after the filing. If the developer corrects the deficiencies or
2130	if there are no deficiencies, the division shall notify the
2131	developer of its approval of the advertising materials.
2132	Notwithstanding anything to the contrary contained in this
2133	subsection, so long as the developer uses advertising materials
2134	approved by the division, following the developer's request for
2135	a review, the developer shall not be liable for any violation of
2136	this section or s. 721.111 with respect to such advertising
2137	materials.
2138	(6) Failure to provide cancellation rights or disclosures
2139	as required by this subsection in connection with the sale of a
2140	regulated short-term product constitutes misrepresentation in
2141	accordance with paragraph (4)(a). Any agreement relating to the
2142	sale of a regulated short-term product must be regulated as
2143	advertising material and is subject to the following:
2144	(b) A purchaser of a regulated short-term product has the
2145	right to cancel the agreement until midnight of the 10th calendar
2146	day following the execution date of the agreement. The right of
2147	cancellation may not be waived by the prospective purchaser or
2148	by any other person on behalf of the prospective purchaser.
2149	Notice of cancellation must be given in the same manner
2150	prescribed for giving notice of cancellation under s. 721.10(2).
2151	If the prospective purchaser gives a valid notice of
2152	cancellation or is otherwise entitled to cancel the sale, the
2153	funds or otherproperty received from or on behalf of the
2154	prospective purchaser, or the proceeds thereof, must be returned
2155	to the prospective purchaser. Such refund must be made in the
2156	same manner prescribed for refunds under s. 721.10.
2157	(e) If the seller provides the purchaser with the right to
2158	cancel the purchase of a regulated short-term product at any
2159	time up to 7 days prior to the purchaser's reserved use of the
2160	accommodations, but in no event less than 10 days, and if the
2161	seller refunds the total amount of all payments made by the
2162	purchaser reduced by the proportion of any benefits the
2163	purchaser has actually received prior to the effective date of
2164	the cancellation, the specific value of which has been agreed to
2165	between the purchaser and the seller, the short-term product
2166	offer shall be exempt from the requirements of paragraphs (b),
2167	(c), and (d). An agreement relating to the sale of the regulated
2168	short-term product made pursuant to this paragraph must contain
2169	a statement setting forth the cancellation and refund rights of
2170	the prospective purchaser in a manner that is consistent with
2171	this section and s. 721.10, including a description of the
2172	length of the cancellation right, a statement that the
2173	purchaser's intent to cancel must be in writing and sent to the
2174	seller at a specified address, a statement that the notice of
2175	cancellation is effective upon the date sent, and a statement
2176	that any attempt to waive the cancellation right is unlawful.
2177	The right of cancellation provided to the purchaser pursuant to
2178	this paragraph may not be waived by the prospective purchaser or
2179	by any other person on behalf of the prospective purchaser.
2180	Notice of cancellation must be given in the same manner
2181	prescribed for giving notice of cancellation pursuant to s.
2182	721.10(2). If the prospective purchaser gives a valid notice of
2183	cancellation, or is otherwise entitled to cancel the sale, the
2184	funds or otherproperty received from or on behalf of the
2185	prospective purchaser, or the proceeds thereof, shall be
2186	returned to the prospective purchaser. Such refund shall be made
2187	in the manner prescribed for refunds under s. 721.10.
2188	(7) Notwithstanding the provisions of s. 721.05(7)(6)(b),
2189	a seller may portray possible accommodations or facilities to
2190	prospective purchasers in advertising material, or a purchaser
2191	public offering statement, without such accommodations or
2192	facilities being available for use by purchasers so long as the
2193	advertising material or purchaser public offering statement
2194	complies with the provisions of subsection (4).
2195	(8) Notwithstanding the provisions of s. 721.05(7)(6)(b),
2196	a developer may portray possible accommodations or facilities to
2197	prospective purchasers by disseminating oral or written
2198	statements regarding same to broadcast or print media with no
2199	obligation on the developer's part to actually construct such
2200	accommodations or facilities or to file such accommodations or
2201	facilities with the division, but only so long as such oral or
2202	written statements are not considered advertising material
2203	pursuant to paragraph (3)(e).
2204	(9) Notwithstanding the provisions of s. 721.05(7)(6)(b),
2205	a seller of a multisite timeshare plan may portray a possible
2206	component site to prospective purchasers with no accommodations
2207	or facilities located at such component site being available for
2208	use by purchasers so long as the seller satisfies the following
2209	requirements:
2210	(a) A developer of a multisite timeshare plan may
2211	disseminate oral or written statements to broadcast or print
2212	media describing a possible component site with no obligation on
2213	the developer's part to actually add such component site to the
2214	multisite timeshare plan or to amend the developer's filing with
2215	the division, but only so long as such oral or written
2216	statements are not considered advertising material pursuant to
2217	paragraph (3)(e).
2218	(b) A seller may make representations to purchasers in
2219	advertising material or in a purchaser public offering statement
2220	regarding the possible accommodations and facilities of a
2221	possible component site without such accommodations or
2222	facilities being available for use by purchasers so long as the
2223	advertising material or purchaser public offering statement
2224	complies with the provisions of subsection (4).
2225	(c) In the event a seller makes any of the representations
2226	permitted by paragraph (b), the purchase agreement must contain
2227	the following conspicuous disclosure unless and until such time
2228	as the developer has committed itself in the timeshare
2229	instrument to adding the possible component site to the
2230	multisite timeshare plan, at which time the seller may portray
2231	the component site pursuant to the timeshare instrument without
2232	restriction:
2233
2234	[Description of possible component site] is only a possible
2235	component site which may never be added to the multisite
2236	timeshare plan (or multisite vacation ownership plan or
2237	multisite vacation plan or vacation club). Do not purchase an
2238	interest in the multisite timeshare plan (or multisite vacation
2239	ownership plan or multisite vacation plan or vacation club) in
2240	reliance upon the addition of this component site.
2241	(d) Notwithstanding anything contained in this chapter to
2242	the contrary, a developer or managing entity may communicate
2243	with existing purchasers regarding possible component sites
2244	without restriction, so long as all oral and written statements
2245	made to existing purchasers pursuant to this subsection comply
2246	with the provisions of subsection (4).
2247	(e) Any violation of this subsection by a developer,
2248	seller, or managing entity shall constitute a violation of this
2249	chapter. Any violation of this subsection with respect to a
2250	purchaser whose purchase has not yet closed shall be deemed to
2251	provide that purchaser with a new 10-day voidability period.
2252	Section 11. Subsection (1) of section 721.12, Florida
2253	Statutes, is amended to read:
2254	721.12 Recordkeeping by seller.--Each seller of a
2255	timeshare plan shall maintain among its business records the
2256	following:
2257	(1) A copy of each contract for the sale of a timeshare
2258	interest, which contract has not been canceled. If a timeshare
2259	estate is being sold, the seller is required to retain a copy of
2260	the contract only until a deed of conveyance, agreement for
2261	deed, or lease is recorded in the office of the clerk of the
2262	circuit court in the county wherein the plan is located. If a
2263	personal property timeshare plan is being sold, the seller is
2264	required to retain a copy of the contract only until a
2265	certificate of transfer, agreement for transfer, lease, or other
2266	instrument of transfer that fully complies with s. 721.08 is
2267	delivered to the purchaser.
2268	Section 12. Paragraphs (a) and (b) of subsection (1),
2269	paragraph (b) of subsection (2), paragraphs (c), (d), and (e) of
2270	subsection (3), paragraph (g) of subsection (6), and subsections
2271	(4) and (8) of section 721.13, Florida Statutes, are amended,
2272	subsection (9) is renumbered as subsection (10), and new
2273	subsections (9) and (11) are added to said section, to read:
2274	721.13 Management.--
2275	(1)(a) For each timeshare plan, the developer shall
2276	provide for a managing entity, which shall be either the
2277	developer, a separate manager or management firm, or an owners'
2278	association. Any owners' association shall be created prior to
2279	the first closing recording of the sale of a timeshare interest
2280	instrument.
2281	(b)1. With respect to a timeshare plan which is also
2282	regulated under chapter 718 or chapter 719, or which contains a
2283	mandatory owners' association, the board of administration of
2284	the owners'association shall be considered the managing entity
2285	of the timeshare plan.
2286	2. During any period of time in which such owners’
2287	association has entered into a contract with a manager or
2288	management firm to provide some or all of the management
2289	services to the timeshare plan, both the board of administration
2290	and the manager or management firm shall be considered the
2291	managing entity of the timeshare plan and shall be jointly and
2292	severally responsible for the faithful discharge of the duties
2293	of the managing entity.
2294	3. An owners' association which is the managing entity of
2295	a timeshare plan that includes condominium units or cooperative
2296	units shall not be considered a condominium association pursuant
2297	to the provisions of chapter 718 or a cooperative association
2298	pursuant to the provisions of chapter 719, unless such owners'
2299	association also operates the entire condominium pursuant to s.
2300	718.111 or the entire cooperative pursuant to s. 719.104.
2301	(2)
2302	(b) The managing entity shall invest the operating and
2303	reserve funds of the timeshare plan in accordance with s.
2304	518.11(1); however, the managing entity shall give safety of
2305	capital greater weight than production of income. In no event
2306	shall the managing entity invest timeshare plan funds with a
2307	developer or with any entity that is not independent of any
2308	developer or any managing entity within the meaning of s.
2309	721.05(20)(18), and in no event shall the managing entity invest
2310	timeshare plan funds in notes and mortgages related in any way
2311	to the timeshare plan.
2312	(3) The duties of the managing entity include, but are not
2313	limited to:
2314	(c)1. Providing each year to all purchasers an itemized
2315	annual budget which shall include all estimated revenues and
2316	expenses. The budget shall be in the form required by s.
2317	721.07(5)(u). The budget andshall be the final budget adopted
2318	by the managing entity for the current fiscal year. The final
2319	adopted budget is not required to be delivered if the managing
2320	entity has previously delivered a proposed annual budget for the
2321	current fiscal year to purchasers in accordance with chapter 718
2322	or chapter 719 and the managing entity includes a description of
2323	any changes in the adopted budget with the assessment notice and
2324	a disclosure regarding the purchasers’ right to receive a copy
2325	of the adopted budget, if desired.The budget shall contain, as
2326	a footnote or otherwise, any related party transaction
2327	disclosures or notes which appear in the audited financial
2328	statements of the managing entity for the previous budget year
2329	as required by paragraph (e). A copy of the final budget shall
2330	be filed with the division for reviewwithin 30 days after the
2331	beginning of each fiscal year together with a statement of the
2332	number of periods of 7-day annual use availability that exist
2333	within the timeshare plan, including those periods filed for
2334	sale by the developer but not yet committed to the timeshare
2335	plan, for which annual fees are required to be paid to the
2336	division under s. 721.27.
2337	2. Notwithstanding anything contained in chapter 718 or
2338	chapter 719 to the contrary, the board of administration of an
2339	owners' association which serves as the managing entity may from
2340	time to time reallocate reserves for deferred maintenance and
2341	capital expenditures required by s. 721.07(5)(u)3.a.(XI) from
2342	any deferred maintenance or capital expenditure reserve account
2343	to any other deferred maintenance or capital expenditure reserve
2344	account or accounts in its discretion without the consent of
2345	purchasers of the timeshare plan. Funds in any deferred
2346	maintenance or capital expenditure reserve account may not be
2347	transferred to any operating account without the consent of a
2348	majority of the purchasers of the timeshare plan. The managing
2349	entity may from time to time transfer excess funds in any
2350	operating account to any deferred maintenance or capital
2351	expenditure reserve account without the vote or approval of
2352	purchasers of the timeshare plan. In the event any amount of
2353	reserves for accommodations and facilities of a timeshare plan
2354	containing timeshare licenses or personal property timeshare
2355	interests exists at the end of the term of the timeshare plan,
2356	such reserves shall be refunded to purchasers on a pro rata
2357	basis.
2358	(d)1. Maintenance of all books and records concerning the
2359	timeshare plan so that all such books and records are reasonably
2360	available for inspection by any purchaser or the authorized
2361	agent of such purchaser. For purposes of this subparagraph, the
2362	books and records of the timeshare plan shall be considered
2363	"reasonably available" if copies of the requested portions are
2364	delivered to the purchaser or the purchaser's agent within 7
2365	days after ofthe date the managing entity receives a written
2366	request for the records signed by the purchaser. The managing
2367	entity may charge the purchaser a reasonable fee for copying the
2368	requested information not to exceed 25 cents per page. However,
2369	any purchaser or agent of such purchaser shall be permitted to
2370	personally inspect and examine the books and records wherever
2371	located at any reasonable time, under reasonable conditions, and
2372	under the supervision of the custodian of those records. The
2373	custodian shall supply copies of the records where requested and
2374	upon payment of the copying fee. No fees other than those set
2375	forth in this section may be charged for the providing of,
2376	inspection, or examination of books and records. All books and
2377	financial records of the timeshare plan must be maintained in
2378	accordance with generally accepted accounting practices.
2379	2. If the books and records of the timeshare plan are not
2380	maintained on the premises of the accommodations and facilities
2381	of the timeshare plan, the managing entity shall inform the
2382	division in writing of the location of the books and records and
2383	the name and address of the person who acts as custodian of the
2384	books and records at that location. In the event that the
2385	location of the books and records changes, the managing entity
2386	shall notify the division of the change in location and the name
2387	and address of the new custodian within 30 days after ofthe
2388	date the books and records are moved. The purchasers shall be
2389	notified of the location of the books and records and the name
2390	and address of the custodian in the copy of the annual budget
2391	provided to them pursuant to paragraph (c).
2392	3. The division is authorized to adopt rules which specify
2393	those items and matters that shall be included in the books and
2394	records of the timeshare plan and which specify procedures to be
2395	followed in requesting and delivering copies of the books and
2396	records.
2397	4. Notwithstanding any provision of chapter 718 or chapter
2398	719 to the contrary, the managing entity may not furnish the
2399	name, address, or electronic mailaddress of any purchaser to
2400	any other purchaser or authorized agent thereof unless the
2401	purchaser whose name, and address, or electronic mail address is
2402	arerequested first approves the disclosure in writing.
2403	(e) Arranging for an annual audit of the financial
2404	statements of the timeshare plan by a certified public
2405	accountant licensed by the Board of Accountancy of the
2406	Department of Business and Professional Regulation, in
2407	accordance with generally accepted auditing standards as defined
2408	by the rules of the Board of Accountancy of the Department of
2409	Business and Professional Regulation. The financial statements
2410	required by this section must be prepared on an accrual basis
2411	using fund accounting, and must be presented in accordance with
2412	generally accepted accounting principles. A copy of the audited
2413	financial statements must be filed with the division for review
2414	and forwarded to the board of directors and officers of the
2415	owners' association, if one exists, no later than 5 calendar
2416	months after the end of the timeshare plan's fiscal year. If no
2417	owners' association exists, each purchaser must be notified, no
2418	later than 5 months after the end of the timeshare plan's fiscal
2419	year, that a copy of the audited financial statements is
2420	available upon request to the managing entity. Notwithstanding
2421	any requirement of s. 718.111(13) or s. 719.104(4), the audited
2422	financial statements required by this section are the only
2423	annual financial reporting requirements for timeshare
2424	condominiums or timeshare cooperatives.
2425	(4) The managing entity shall maintain among its records
2426	and provide to the division upon request a complete list of the
2427	names and addresses of all purchasers and owners of timeshare
2428	units in the timeshare plan. The managing entity shall update
2429	this list no less frequently than quarterly. Pursuant to
2430	paragraph (3)(d), the managing entity may not publish this
2431	owner's list or provide a copy of it to any purchaser or to any
2432	third party other than the division. However, the managing
2433	entity shall to those persons listed on the owner's list
2434	materials provided by any purchaser, upon the written request of
2435	that purchaser, if the purpose of the mailing is to advance
2436	legitimate owners'association business, such as a proxy
2437	solicitation for any purpose, including the recall of one or
2438	more board members elected by the owners or the discharge of the
2439	manager or management firm. The use of any proxies solicited in
2440	this manner must comply with the provisions of the timeshare
2441	instrument and this chapter. A mailing requested for the purpose
2442	of advancing legitimate owners'association business shall occur
2443	within 30 days after receipt of a request from a purchaser. The
2444	board of administration of the owners’association shall be
2445	responsible for determining the appropriateness of any mailing
2446	requested pursuant to this subsection. The purchaser who
2447	requests the mailing must reimburse the owners'association in
2448	advance for the owners'association's actual costs in performing
2449	the mailing. It shall be a violation of this chapter and, if
2450	applicable, of part VIII of chapter 468, for the board of
2451	administration or the manager or management firm to refuse to
2452	mail any material requested by the purchaser to be mailed,
2453	provided the sole purpose of the materials is to advance
2454	legitimate owners'association business. If the purpose of the
2455	mailing is a proxy solicitation to recall one or more board
2456	members elected by the owners or to discharge the manager or
2457	management firm and the managing entity does not mail the
2458	materials within 30 days after receipt of a request from a
2459	purchaser, the circuit court in the county where the timeshare
2460	plan is located may, upon application from the requesting
2461	purchaser, summarily order the mailing of the materials solely
2462	related to the recall of one or more board members elected by
2463	the owners or the discharge of the manager or management firm.
2464	The court shall dispose of an application on an expedited basis.
2465	In the event of such an order, the court may order the managing
2466	entity to pay the purchaser's costs, including attorney's fees
2467	reasonably incurred to enforce the purchaser's rights, unless
2468	the managing entity can prove it refused the mailing in good
2469	faith because of a reasonable basis for doubt about the
2470	legitimacy of the mailing.
2471	(6)
2472	(g) A managing entity shall have breached its fiduciary
2473	duty described in subsection (2) in the event it enforces the
2474	denial of use pursuant to paragraph (b) against any one
2475	purchaser or group of purchasers without similarly enforcing it
2476	against all purchasers, including all developers and owners of
2477	the underlying fee or underlying personal property; however, a
2478	managing entity shall not be required to solicit rentals
2479	pursuant to paragraph (f) for every delinquent purchaser. A
2480	managing entity shall also have breached its fiduciary duty in
2481	the event an error in the books and records of the timeshare
2482	plan results in a denial of use pursuant to this subsection of
2483	any purchaser who is not, in fact, delinquent. In addition to
2484	any remedies otherwise available to purchasers of the timeshare
2485	plan arising from such breaches of fiduciary duty, such breach
2486	shall also constitute a violation of this chapter. In addition,
2487	any purchaser receiving a notice of delinquency pursuant to
2488	paragraph (b), or any third party claiming under such purchaser
2489	pursuant to paragraph (b), may immediately bring an action for
2490	injunctive or declaratory relief against the managing entity
2491	seeking to have the notice invalidated on the grounds that the
2492	purchaser is not, in fact, delinquent, that the managing entity
2493	failed to follow the procedures prescribed by this section, or
2494	on any other available grounds. The prevailing party in any such
2495	action shall be entitled to recover his or her reasonable
2496	attorney's fees from the losing party.
2497	(8) Notwithstanding anything to the contrary in s.
2498	718.110, s. 718.113, s. 718.114, or s. 719.1055, the board of
2499	administration of any owners' association that operates a
2500	timeshare condominium pursuant to s. 718.111, or a timeshare
2501	cooperative pursuant to s. 719.104, shall have the power to make
2502	material alterations or substantial additions to the
2503	accommodations or facilities of such timeshare condominium or
2504	timeshare cooperative without the approval of the owners'
2505	association. However, if the timeshare condominium or timeshare
2506	cooperative contains any residential units that are not subject
2507	to the timeshare plan, such action by the board of
2508	administration must be approved by a majority of the owners of
2509	such residential units. Unless otherwise provided in the
2510	timeshare instrument as originally recorded, no such amendment
2511	may change the configuration or size of any accommodation in any
2512	material fashion, or change the proportion or percentage by
2513	which a member of the owners’association shares the common
2514	expenses, unless the record owners of the affected units or
2515	timeshare interests and all record owners of liens on the
2516	affected units or timeshare interests join in the execution of
2517	the amendment.
2518	(9) All notices or other information sent by a board of
2519	administration of an owners’ association may be delivered to a
2520	purchaser by electronic mail, provided that the purchaser first
2521	consents electronically to the use of electronic mail for notice
2522	purposes in a manner that reasonably demonstrates that the
2523	purchaser has the ability to access the notice by electronic
2524	mail. Proxies or written consents on votes of any owners’
2525	association may be received by electronic mail, shall have legal
2526	effect, and may be utilized for votes of an owners’ association,
2527	provided that the electronic signature is authenticated through
2528	use of a password, cryptography software, or other reasonable
2529	means and that proof of such authentication is made available to
2530	the board of directors.
2531	(10)(9)Any failure of the managing entity to faithfully
2532	discharge the fiduciary duty to purchasers imposed by this
2533	section or to otherwise comply with the provisions of this
2534	section shall be a violation of this chapter and of part VIII of
2535	chapter 468.
2536	(11) Notwithstanding the other provisions of this section,
2537	personal property timeshare plans are only subject to the
2538	provisions of subsections (1)(a)-(d), (2)(a), (3)(a)-(h), (5),
2539	(6), (9), and (10).
2540	Section 13. Subsection (4) is added to section 721.14,
2541	Florida Statutes, to read:
2542	721.14 Discharge of managing entity.--
2543	(4) This section shall not apply to personal property
2544	timeshare plans.
2545	Section 14. Paragraph (c) of subsection (2) of section
2546	721.15, Florida Statutes, is amended, and subsection (10) is
2547	added to said section, to read:
2548	721.15 Assessments for common expenses.--
2549	(2)
2550	(c) For the purpose of calculating the obligation of a
2551	developer under a guarantee pursuant to paragraph (b),
2552	depreciation expenses related to real property shall be excluded
2553	from common expenses incurred during the guarantee period,
2554	except that for real property that is used for the production of
2555	fees, revenues, or other income, depreciation expenses shall be
2556	excluded only to the extent that they exceed the net income from
2557	the production of such fees, revenues, or other income.
2558	(10) This section shall not apply to personal property
2559	timeshare plans.
2560	Section 15. Subsection (6) is added to section 721.16,
2561	Florida Statutes, to read:
2562	721.16 Liens for overdue assessments; liens for labor
2563	performed on, or materials furnished to, a timeshare unit.--
2564	(6) This section shall not apply to personal property
2565	timeshare plans.
2566	Section 16. Section 721.17, Florida Statutes, is amended
2567	to read:
2568	721.17 Transfer of interest.--Except in the case of a
2569	timeshare plan subject to the provisions of chapter 718 or
2570	chapter 719, no developer, or owner of the underlying fee, or
2571	owner of the underlying personal propertyshall sell, lease,
2572	assign, mortgage, or otherwise transfer his or her interest in
2573	the accommodations and facilities of the timeshare plan except
2574	by an instrument evidencing the transfer recorded in the public
2575	records of the county in which such accommodations and
2576	facilities are located or, with respect to personal property
2577	timeshare plans, in full compliance with s. 721.08. The
2578	instrument shall be executed by both the transferor and
2579	transferee and shall state:
2580	(1) That its provisions are intended to protect the rights
2581	of all purchasers of the plan.
2582	(2) That its terms may be enforced by any prior or
2583	subsequent timeshare purchaser so long as that purchaser is not
2584	in default of his or her obligations.
2585	(3) That so long as a purchaser remains in good standing
2586	with respect to her or his obligations under the timeshare
2587	instrument, including making all payments to the managing entity
2588	required by the timeshare instrument with respect to the annual
2589	common expenses of the timeshare plan, the transferee shall will
2590	fully honor all the rights of such purchaser relating to the
2591	subject accommodation or facility as reflected the purchasers to
2592	occupy and use the accommodations and facilities as provided in
2593	their original contracts and the timeshare instrument
2594	instruments.
2595	(4) That the transferee will fully honor all rights of
2596	timeshare purchasers to cancel their contracts and receive
2597	appropriate refunds.
2598	(5) That the obligations of the transferee under such
2599	instrument will continue to exist despite any cancellation or
2600	rejection of the contracts between the developer and purchaser
2601	arising out of bankruptcy proceedings.
2602
2603	Should any transfer of the interest of the developer, the or
2604	owner of the underlying fee, or the owner of the underlying
2605	propertyoccur in a manner which is not in compliance with this
2606	section, the terms set forth in this section shall be presumed
2607	to be a part of the transfer and shall be deemed to be included
2608	in the instrument of transfer. Notice shall be mailed to each
2609	purchaser of record within 30 days after ofthe transfer unless
2610	such transfer does not affect the purchaser's rights in or use
2611	of the timeshare plan. Persons who hold mortgages or lienson
2612	the property constituting a timeshare plan before the filed
2613	registeredpublic offering statement of such plan is approved by
2614	the division shall not be considered transferees for the
2615	purposes of this section.
2616	Section 17. Section 721.18, Florida Statutes, is amended
2617	to read:
2618	721.18 Exchange programs; filing of information and other
2619	materials; filing fees; unlawful acts in connection with an
2620	exchange program.--
2621	(1) If a purchaser is offered the opportunity to subscribe
2622	to an exchange program, the seller shall deliver to the
2623	purchaser, together with the purchaser public offering
2624	statement, and prior to the offering or execution of any
2625	contract between the purchaser and the company offering the
2626	exchange program, written information regarding such exchange
2627	program; or, if the exchange company is dealing directly with
2628	the purchaser, the exchange company shall deliver to the
2629	purchaser, prior to the initial offering or execution of any
2630	contract between the purchaser and the company offering the
2631	exchange program, written information regarding such exchange
2632	program. In either case, the purchaser shall certify in writing
2633	to the receipt of such information. Such information shall
2634	include, but is not limited to, the following information, the
2635	form and substance of which shall first be approved by the
2636	division in accordance with subsection (2):
2637	(a) The name and address of the exchange company.
2638	(b) The names of all officers, directors, and shareholders
2639	of the exchange company.
2640	(c) Whether the exchange company or any of its officers or
2641	directors has any legal or beneficial interest in any developer,
2642	seller, or managing entity for any timeshare plan participating
2643	in the exchange program and, if so, the name and location of the
2644	timeshare plan and the nature of the interest.
2645	(d) Unless otherwise stated, a statement that the
2646	purchaser's contract with the exchange company is a contract
2647	separate and distinct from the purchaser's contract with the
2648	seller of the timeshare plan.
2649	(e) Whether the purchaser's participation in the exchange
2650	program is dependent upon the continued affiliation of the
2651	timeshare plan with the exchange program.
2652	(f) A statement that Whetherthe purchaser's participation
2653	in the exchange program is voluntary. This statement is not
2654	required to be given by the seller or managing entity of a
2655	multisite timeshare plan to purchasers in the multisite
2656	timeshare plan.
2657	(g) A complete and accurate description of the terms and
2658	conditions of the purchaser's contractual relationship with the
2659	exchange program and the procedure by which changes thereto may
2660	be made.
2661	(h) A complete and accurate description of the procedure
2662	to qualify for and effectuate exchanges.
2663	(i) A complete and accurate description of all
2664	limitations, restrictions, or priorities employed in the
2665	operation of the exchange program, including, but not limited
2666	to, limitations on exchanges based on seasonality, timeshare
2667	unit size, or levels of occupancy, expressed in boldfaced type,
2668	and, in the event that such limitations, restrictions, or
2669	priorities are not uniformly applied by the exchange program, a
2670	clear description of the manner in which they are applied.
2671	(j) Whether exchanges are arranged on a space-available
2672	basis and whether any guarantees of fulfillment of specific
2673	requests for exchanges are made by the exchange program.
2674	(k) Whether and under what circumstances a purchaser, in
2675	dealing with the exchange program, may lose the use and
2676	occupancy of her or his timeshare period in any properly applied
2677	for exchange without her or his being provided with substitute
2678	accommodations by the exchange program.
2679	(l) The fees or range of fees for membership or
2680	participation by purchasers in the exchange program by
2681	purchasers, including any conversion or other fees payable to
2682	third parties, a statement whether any such fees may be altered
2683	by the exchange company, and the circumstances under which
2684	alterations may be made.
2685	(m) The name and address of the site of each accommodation
2686	or facility included in the timeshare plan plansparticipating
2687	in the exchange program.
2688	(n) The number of the timeshare units in each timeshare
2689	plan which are available for occupancy and which qualify for
2690	participation in the exchange program, expressed within the
2691	following numerical groupings: 1-5; 6-10; 11-20; 21-50; and 51
2692	and over.
2693	(o) The number of currently enrolled purchasers for each
2694	timeshare plan participating in the exchange program, expressed
2695	within the following numerical groupings: 1-100; 101-249; 250-
2696	499; 500-999; and 1,000 and over; and a statement of the
2697	criteria used to determine those purchasers who are currently
2698	enrolled with the exchange program.
2699	(p) The disposition made by the exchange company of
2700	timeshare periods deposited with the exchange program by
2701	purchasers enrolled in the exchange program and not used by the
2702	exchange company in effecting exchanges.
2703	(q) The following information, which shall be
2704	independently audited by a certified public accountant or
2705	accounting firm in accordance with the standards of the
2706	Accounting Standards Board of the American Institute of
2707	Certified Public Accountants and reported annually beginning no
2708	later than July 1, 1982:
2709	1. The number of purchasers currently enrolled in the
2710	exchange program.
2711	2. The number of accommodations and facilities that have
2712	current writtenaffiliation agreements with the exchange
2713	program.
2714	3. The percentage of confirmed exchanges, which is the
2715	number of exchanges confirmed by the exchange program divided by
2716	the number of exchanges properly applied for, together with a
2717	complete and accurate statement of the criteria used to
2718	determine whether an exchange request was properly applied for.
2719	4. The number of timeshare periods for which the exchange
2720	program has an outstanding obligation to provide an exchange to
2721	a purchaser who relinquished a timeshare period during the year
2722	in exchange for a timeshare period in any future year.
2723	5. The number of exchanges confirmed by the exchange
2724	program during the year.
2725	(r) A statement in boldfaced type to the effect that the
2726	percentage described in subparagraph (q)3. is a summary of the
2727	exchange requests entered with the exchange program in the
2728	period reported and that the percentage does not indicate the
2729	probabilities of a purchaser's being confirmed to any specific
2730	choice or range of choices.
2731	(2) Each exchange company offering an exchange program to
2732	purchasers in this state shall file with the division for review
2733	the information specified in subsection (1), together with any
2734	membership agreement and application between the purchaser and
2735	the exchange company,and the audit specified in subsection (1)
2736	on or before June 1 of each year. However, an exchange company
2737	shall make its initial filing at least 20 days prior to offering
2738	an exchange program to any purchaser in this state. Each filing
2739	shall be accompanied by an annual filing fee of $500. Within 20
2740	days after ofreceipt of such filing, the division shall
2741	determine whether the filing is adequate to meet the
2742	requirements of this section and shall notify the exchange
2743	company in writing that the division has either approved the
2744	filing or found specified deficiencies in the filing. If the
2745	division fails to respond within 20 days, the filing shall be
2746	deemed approved. The exchange company may correct the
2747	deficiencies; and, within 10 days after receipt of corrections
2748	from the exchange company, the division shall notify the
2749	exchange company in writing that the division has either
2750	approved the filing or found additional specified deficiencies
2751	in the filing. If the exchange company fails to adequately
2752	respond to any deficiency notice within 10 days, the division
2753	may reject the filing. Subsequent to such rejection, a new
2754	filing fee and a new division initial review period pursuant to
2755	this subsection shall apply to any refiling or further review of
2756	the rejected filing.
2757	(a) Any material change to an approved exchange company
2758	filing shall be filed with the division for approval as an
2759	amendment prior to becoming effective. Each amendment filing
2760	shall be accompanied by a filing fee of $100. The exchange
2761	company may correct the deficiencies; and, within 10 days after
2762	receipt of corrections from the exchange company, the division
2763	shall notify the exchange company in writing that the division
2764	has either approved the filing or found additional specified
2765	deficiencies in the filing. Each approved amendment to the
2766	approved exchange company filing, other than an amendment that
2767	does not materially alter or modify the exchange program in a
2768	manner that is adverse to a purchaser, as determined by the
2769	exchange company in its reasonable discretion, shall be
2770	delivered to each purchaser who has not closed. An approved
2771	exchange program filing is required to be updated with respect
2772	to added or deleted resorts only once each year, and such annual
2773	update shall not be deemed to be a material change to the
2774	filing.
2775	(b)If at any time the division determines that any of
2776	such information supplied by an exchange company fails to meet
2777	the requirements of this section, the division may undertake
2778	enforcement action against the exchange company in accordance
2779	with the provision of s. 721.26.
2780	(3) No developer shall have any liability with respect to
2781	any violation of this chapter arising out of the publication by
2782	the developer of information provided to it by an exchange
2783	company pursuant to this section. No exchange company shall have
2784	any liability with respect to any violation of this chapter
2785	arising out of the use by a developer of information relating to
2786	an exchange program other than that provided to the developer by
2787	the exchange company.
2788	(4) At the request of the exchange company, the division
2789	shall review anyaudio, written, or visual publications or
2790	materials relating to an exchange company or an exchange program
2791	shall be filed for review by the exchange company and shall
2792	notify the exchange company of any deficiencies within 10 with
2793	the division within 3 days after the filing of their use. If the
2794	exchange company corrects the deficiencies, or if there are no
2795	deficiencies, the division shall notify the exchange company of
2796	its approval of the advertising materials. If the exchange
2797	company fails to adequately respond to any deficiency notice
2798	within 10 days, the division may reject the advertising
2799	materials. Subsequent to such rejection, a new division initial
2800	review period pursuant to this subsection shall apply to any
2801	refiling or further review.
2802	(5) The failure of an exchange company to observe the
2803	requirements of this section, or the use of any unfair or
2804	deceptive act or practice in connection with the operation of an
2805	exchange program, is a violation of this chapter.
2806	Section 18. Section 721.19, Florida Statutes, is amended
2807	to read:
2808	721.19 Provisions requiring purchase or lease of timeshare
2809	property by owners' association or purchasers; validity.--In any
2810	timeshare plan in which timeshare estates or personal property
2811	timeshare interestsare sold, no grant or reservation made by a
2812	declaration, lease, or other document, nor any contract made by
2813	the developer, managing entity, or owners' association, which
2814	requires the owners' association or purchasers to purchase or
2815	lease any portion of the timeshare property shall be valid
2816	unless approved by a majority of the purchasers other than the
2817	developer, after more than 50 percent of the timeshare periods
2818	have been sold.
2819	Section 19. Section 721.20, Florida Statutes, is amended
2820	to read:
2821	721.20 Licensing requirements; suspension or revocation of
2822	license; exceptions to applicability; collection of advance fees
2823	for listings unlawful.--
2824	(1) Any seller of a timeshare plan must be a licensed real
2825	estate broker, broker associate, or sales associate as defined
2826	in s. 475.01, except as provided in s. 475.011.
2827	(2) Solicitors who engage only in the solicitation of
2828	prospective purchasers and any purchaser who refers no more than
2829	20 people to a developer per year or who otherwise provides
2830	testimonials on behalf of a developer are exempt from the
2831	provisions of chapter 475.
2832	(3) A solicitor who has violated the provisions of chapter
2833	468, chapter 718, chapter 719, this chapter, or the rules of the
2834	division governing timesharing shall be subject to the
2835	provisions of s. 721.26. Any developer or other person who
2836	supervises, directs, or engages the services of a solicitor
2837	shall be liable for any violation of the provisions of chapter
2838	468, chapter 718, chapter 719, this chapter, or the rules of the
2839	division governing timesharing committed by such solicitor.
2840	(4) County and municipal governments shall have the
2841	authority to adopt codes of conduct and regulations to govern
2842	solicitor activity conducted on public property, including
2843	providing for the imposition of penalties prescribed by a
2844	schedule of fines adopted by ordinance for violations of any
2845	such code of conduct or regulation. Any violation of any such
2846	adopted code of conduct or regulation shall not constitute a
2847	separate violation of this chapter. This subsection is not
2848	intended to restrict or invalidate any local code of conduct or
2849	regulation.
2850	(5) This section does not apply to those individuals who
2851	offer for sale only timeshare interests in timeshare property
2852	located outside this state and who do not engage in any sales
2853	activity within this state or to timeshare plans which are
2854	registered with the Securities and Exchange Commission. For the
2855	purposes of this section, both timeshare licenses and timeshare
2856	estates are considered to be interests in real property.
2857	(6) Notwithstanding the provisions of s. 475.452, it is
2858	unlawful for any real estate broker, broker associate, or sales
2859	associate to collect any advance fee for the listing of any
2860	timeshare estate or timeshare license.
2861	(7) It is unlawful for any broker, salesperson, or broker-
2862	salesperson to collect any advance fee for the listing of a
2863	personal property timeshare interest.
2864	(8) Subsections (1), (2), and (3) do not apply to persons
2865	who offer personal property timeshare plans.
2866	Section 20. Subsection (6) is added to section 721.24,
2867	Florida Statutes, to read:
2868	721.24 Firesafety.--
2869	(6) Accommodations and facilities of personal property
2870	timeshare plans shall be exempt from the requirements of this
2871	section.
2872	Section 21. Paragraphs (a), (d), and (e) of subsection (5)
2873	of section 721.26, Florida Statutes, are amended to read:
2874	721.26 Regulation by division.--The division has the power
2875	to enforce and ensure compliance with the provisions of this
2876	chapter, except for parts III and IV, using the powers provided
2877	in this chapter, as well as the powers prescribed in chapters
2878	498, 718, and 719. In performing its duties, the division shall
2879	have the following powers and duties:
2880	(5) Notwithstanding any remedies available to purchasers,
2881	if the division has reasonable cause to believe that a violation
2882	of this chapter, or of any division rule or order promulgated or
2883	issued pursuant to this chapter, has occurred, the division may
2884	institute enforcement proceedings in its own name against any
2885	regulated party, as such term is defined in this subsection:
2886	(a)1. "Regulated party," for purposes of this section,
2887	means any developer, exchange company, seller, managing entity,
2888	owners' association, owners' association director, owners'
2889	association officer, manager, management firm, escrow agent,
2890	trustee, any respective assignees or agents, or any other person
2891	having duties or obligations pursuant to this chapter.
2892	2. Any person who materially participates in any offer or
2893	disposition of any interest in, or the management or operation
2894	of, a timeshare plan in violation of this chapter or relevant
2895	rules involving fraud, deception, false pretenses,
2896	misrepresentation, or false advertising or the disbursement,
2897	concealment, or diversion of any funds or assets, which conduct
2898	adversely affects the interests of a purchaser, and which person
2899	directly or indirectly controls a regulated party or is a
2900	general partner, officer, director, agent, or employee of such
2901	regulated party, shall be jointly and severally liable under
2902	this subsection with such regulated party, unless such person
2903	did not know, and in the exercise of reasonable care could not
2904	have known, of the existence of the facts giving rise to the
2905	violation of this chapter. A right of contribution shall exist
2906	among jointly and severally liable persons pursuant to this
2907	paragraph.
2908	(d)1. The division may bring an action in circuit court
2909	for declaratory or injunctive relief or for other appropriate
2910	relief, including restitution.
2911	2. The division shall have broad authority and discretion
2912	to petition the circuit court to appoint a receiver with respect
2913	to any managing entity which fails to perform its duties and
2914	obligations under this chapter with respect to the operation of
2915	a timeshare plan. The circumstances giving rise to an
2916	appropriate petition for receivership under this subparagraph
2917	include, but are not limited to:
2918	a. Damage to or destruction of any of the accommodations
2919	or facilities of a timeshare plan, where the managing entity has
2920	failed to repair or reconstruct same.
2921	b. A breach of fiduciary duty by the managing entity,
2922	including, but not limited to, undisclosed self-dealing or
2923	failure to timely assess, collect, or disburse the common
2924	expenses of the timeshare plan.
2925	c. Failure of the managing entity to operate the timeshare
2926	plan in accordance with the timeshare instrument and this
2927	chapter.
2928
2929	If, under the circumstances, it appears that the events giving
2930	rise to the petition for receivership cannot be reasonably and
2931	timely corrected in a cost-effective manner consistent with the
2932	timeshare instrument, the receiver may petition the circuit
2933	court to implement such amendments or revisions to the timeshare
2934	instrument as may be necessary to enable the managing entity to
2935	resume effective operation of the timeshare plan, or to enter an
2936	order terminating the timeshare plan, or to enter such further
2937	orders regarding the disposition of the timeshare property as
2938	the court deems appropriate, including the disposition and sale
2939	of the timeshare property held by the owners'association or the
2940	purchasers. In the event of a receiver's sale, all rights,
2941	title, and interest held by the owners'association or any
2942	purchaser shall be extinguished and title shall vest in the
2943	buyer. This provision applies to timeshare estates, personal
2944	property timeshare interests,and timeshare licenses. All
2945	reasonable costs and fees of the receiver relating to the
2946	receivership shall become common expenses of the timeshare plan
2947	upon order of the court.
2948	3. The division may revoke its approval of any filing for
2949	any timeshare plan for which a petition for receivership has
2950	been filed pursuant to this paragraph.
2951	(e)1. The division may impose a penalty against any
2952	regulated party for a violation of this chapter or any rule
2953	adopted thereunder. A penalty may be imposed on the basis of
2954	each day of continuing violation, but in no event may the
2955	penalty for any offense exceed $10,000. All accounts collected
2956	shall be deposited with the Chief Financial Officer to the
2957	credit of the Division of Florida Land Sales, Condominiums, and
2958	Mobile Homes Trust Fund.
2959	2.a. If a regulated party fails to pay a penalty, the
2960	division shall thereupon issue an order directing that such
2961	regulated party cease and desist from further operation until
2962	such time as the penalty is paid; or the division may pursue
2963	enforcement of the penalty in a court of competent jurisdiction.
2964	b. If an owners'association or managing entity fails to
2965	pay a civil penalty, the division may pursue enforcement in a
2966	court of competent jurisdiction.
2967	Section 22. Section 721.52, Florida Statutes, is amended
2968	to read:
2969	721.52 Definitions.--As used in this chapter, the term:
2970	(1) "Applicable law" means the law of the jurisdiction
2971	where the accommodations and facilities referred to are located.
2972	(2) "Component site" means a specific geographic site
2973	where a portion of the accommodations and facilities of the
2974	multisite timeshare plan are located. If permitted under
2975	applicable law, separate phases operated as a single development
2976	located at a specific geographic site under common management
2977	shall be deemed a single component site for purposes of this
2978	part.
2979	(3) "Inventory" means the accommodations and facilities
2980	located at a particular component site or sites owned, leased,
2981	licensed, or otherwise acquired for use by a developer and
2982	offered as part of the multisite timeshare plan.
2983	(4) "Multisite timeshare plan" means any method,
2984	arrangement, or procedure with respect to which a purchaser
2985	obtains, by any means, a recurring right to use and occupy
2986	accommodations or facilities of more than one component site,
2987	only through use of a reservation system, whether or not the
2988	purchaser is able to elect to cease participating in the plan.
2989	However, the term "multisite timeshare plan" shall not include
2990	any method, arrangement, or procedure wherein:
2991	(a) The contractually specified maximum total financial
2992	obligation on the purchaser's part is $3,000 or less, during the
2993	entire term of the plan; or
2994	(b) The term is for a period of 3 years or less,
2995	regardless of the purchaser's contractually specified maximum
2996	total financial obligation, if any. For purposes of determining
2997	the term of such use and occupancy rights, the period of any
2998	optional renewals which a purchaser, in his or her sole
2999	discretion, may elect to exercise, whether or not for additional
3000	consideration, shall not be included. For purposes of
3001	determining the term of such use and occupancy rights, the
3002	period of any automatic renewals shall be included unless a
3003	purchaser has the right to terminate the membership at any time
3004	and receive a pro rata refund or the purchaser receives a notice
3005	no less than 30 days and no more than 60 days prior to the date
3006	of renewal informing the purchaser of the right to terminate at
3007	any time prior to the date of automatic renewal.
3008
3009	Multisite timeshare plan does not mean an exchange program as
3010	defined in s. 721.05. Timeshare estates may only be offered in a
3011	multisite timeshare plan pursuant to s. 721.57.
3012	(5) “Nonspecific multisite timeshare plan” means a
3013	multisite timeshare plan containing timeshare licenses or
3014	personal property timeshare interests, with respect to which a
3015	purchaser receives a right to use all of the accommodations and
3016	facilities, if any, of the multisite timeshare plan through the
3017	reservation system, but no specific right to use any particular
3018	accommodations and facilities for the remaining term of the
3019	multisite timeshare plan in the event that the reservation
3020	system is terminated for any reason prior to the expiration of
3021	the term of the multisite timeshare plan.
3022	(6)(5)"Reservation system" means the method, arrangement,
3023	or procedure by which a purchaser, in order to reserve the use
3024	and occupancy of any accommodation or facility of the multisite
3025	timeshare plan for one or more use periods, is required to
3026	compete with other purchasers in the same multisite timeshare
3027	plan regardless of whether such reservation system is operated
3028	and maintained by the multisite timeshare plan managing entity,
3029	an exchange company, or any other person. In the event that a
3030	purchaser is required to use an exchange program as the
3031	purchaser's principal means of obtaining the right to use and
3032	occupy a multisite timeshare plan's accommodations and
3033	facilities, such arrangement shall be deemed a reservation
3034	system. When an exchange company utilizes a mechanism for the
3035	exchange of use of timeshare periods among members of an
3036	exchange program, such utilization is not a reservation system
3037	of a multisite timeshare plan.
3038	(7) “Specific multisite timeshare plan” means a multisite
3039	timeshare plan containing timeshare licenses or personal
3040	property timeshare interests, with respect to which a purchaser
3041	receives a specific right to use accommodations and facilities,
3042	if any, at one component site of a multisite timeshare plan,
3043	together with use rights in the other accommodations and
3044	facilities of the multisite timeshare plan created by or
3045	acquired through the reservation system.
3046	(8)(6)"Vacation club" means a multisite timeshare plan.
3047	Section 23. Paragraph (a) of subsection (1) of section
3048	721.53, Florida Statutes, is amended, and paragraph (f) is added
3049	to said subsection, to read:
3050	721.53 Subordination instruments; alternate security
3051	arrangements.--
3052	(1) With respect to each accommodation or facility of a
3053	multisite timeshare plan, the developer shall provide the
3054	division with satisfactory evidence that one of the following
3055	has occurred with respect to each interestholder prior to
3056	offering the accommodation or facility as a part of the
3057	multisite timeshare plan:
3058	(a) The interestholder has executed and recorded a
3059	nondisturbance and notice to creditors instrument pursuant to s.
3060	721.08(2)(c).
3061	(f) With respect to any personal property accommodations
3062	or facilities, the developer and any other interestholder have
3063	complied fully with the applicable provisions of s. 721.08.
3064	Section 24. Section 721.54, Florida Statutes, is amended
3065	to read:
3066	721.54 Term of nonspecific multisite timeshare plans.--It
3067	shall be a violation of this part to represent to a purchaser of
3068	a nonspecific multisite timeshare plan as defined in s.
3069	721.52(5) 721.552(4)that the term of the plan for that
3070	purchaser is longer than the shortest term of availability of
3071	any of the accommodations included within the plan at the time
3072	of purchase.
3073	Section 25. Section 721.55, Florida Statutes, is amended
3074	to read:
3075	721.55 Multisite timeshare plan public offering
3076	statement.--Each filed registeredpublic offering statement for
3077	a multisite timeshare plan shall contain the information
3078	required by this section and shall comply with the provisions of
3079	s. 721.07, except as otherwise provided therein. The division is
3080	authorized to provide by rule the method by which a developer
3081	must provide such information to the division. Each multisite
3082	timeshare plan filed registeredpublic offering statement shall
3083	contain the following information and disclosures:
3084	(1) A cover page containing:
3085	(a) The name of the multisite timeshare plan.
3086	(b) The following statement in conspicuous type:
3087
3088	This public offering statement contains important matters
3089	to be considered in acquiring an interest in a multisite
3090	timeshare plan (or multisite vacation ownership plan or
3091	multisite vacation plan or vacation club). The statements
3092	contained herein are only summary in nature. A prospective
3093	purchaser should refer to all references, accompanying exhibits,
3094	contract documents, and sales materials. The prospective
3095	purchaser should not rely upon oral representations as being
3096	correct and should refer to this document and accompanying
3097	exhibits for correct representations.
3098
3099	(2) A summary containing all statements required to be in
3100	conspicuous type in the public offering statement and in all
3101	exhibits thereto.
3102	(3) A separate index for the contents and exhibits of the
3103	public offering statement.
3104	(4) A text, which shall include, where applicable, the
3105	information and disclosures set forth in paragraphs (a)-(l).
3106	(a) A description of the multisite timeshare plan,
3107	including its term, legal structure, and form of ownership. For
3108	multisite timeshare plans in which the purchaser will receive a
3109	timeshare estate pursuant to s. 721.57 and for or a specific
3110	multisite timeshare plans license as defined in s. 721.552(4),
3111	the description must also include the term of each component
3112	site within the multisite timeshare plan.
3113	(b) A description of the structure and ownership of the
3114	reservation system together with a disclosure of the entity
3115	responsible for the operation of the reservation system. The
3116	description shall include the financial terms of any lease of
3117	the reservation system, if applicable. The developer shall not
3118	be required to disclose the financial terms of any such lease if
3119	such lease is prepaid in full for the term of the multisite
3120	timeshare plan or to any extent that neither purchasers nor the
3121	managing entity will be required to make payments for the
3122	continued use of the system following default by the developer
3123	or termination of the managing entity.
3124	(c)1. A description of the manner in which the reservation
3125	system operates. The description shall include a disclosure in
3126	compliance with the demand balancing standard set forth in s.
3127	721.56(6) and shall describe the developer's efforts to comply
3128	with same in creating the reservation system. The description
3129	shall also include a summary of the rules and regulations
3130	governing access to and use of the reservation system.
3131	2. In lieu of describing the rules and regulations of the
3132	reservation system in the public offering statement text, the
3133	developer may attach the rules and regulations as a separate
3134	public offering statement exhibit, together with a cross-
3135	reference in the public offering statement text to such exhibit.
3136	(d) The existence of and an explanation regarding any
3137	priority reservation features that affect a purchaser's ability
3138	to make reservations for the use of a given accommodation or
3139	facility on a first come, first served basis, including, if
3140	applicable, the following statement in conspicuous type:
3141
3142	Component sites contained in the multisite timeshare plan
3143	(or multisite vacation ownership plan or multisite vacation plan
3144	or vacation club) are subject to priority reservation features
3145	which may affect your ability to obtain a reservation.
3146
3147	(e) A summary of the material rules and regulations, if
3148	any, other than the reservation system rules and regulations,
3149	affecting the purchaser's use of each accommodation and facility
3150	at each component site.
3151	(f) If the provisions of s. 721.552 and the timeshare
3152	instrument permit additions, substitutions, or deletions of
3153	accommodations or facilities, the public offering statement must
3154	include substantially the following information:
3155	1. Additions.--
3156	a. A description of the basis upon which new
3157	accommodations and facilities may be added to the multisite
3158	timeshare plan; by whom additions may be made; and the
3159	anticipated effect of the addition of new accommodations and
3160	facilities upon the reservation system, its priorities, its
3161	rules and regulations, and the availability of existing
3162	accommodations and facilities.
3163	b. The developer must disclose the existence of any cap on
3164	annual increases in common expenses of the multisite timeshare
3165	plan that would apply in the event that additional
3166	accommodations and facilities are made a part of the plan.
3167	c. The developer shall also disclose any extent to which
3168	the purchasers of the multisite timeshare plan will have the
3169	right to consent to any proposed additions; if the purchasers do
3170	not have the right to consent, the developer must include the
3171	following disclosure in conspicuous type:
3172
3173	Accommodations and facilities may be added to this
3174	multisite timeshare plan (or multisite vacation ownership plan
3175	or multisite vacation plan or vacation club) without the consent
3176	of the purchasers. The addition of accommodations and facilities
3177	to the plan may result in the addition of new purchasers who
3178	will compete with existing purchasers in making reservations for
3179	the use of available accommodations and facilities within the
3180	plan, and may also result in an increase in the annual
3181	assessment against purchasers for common expenses.
3182
3183	2. Substitutions.--
3184	a. A description of the basis upon which new
3185	accommodations and facilities may be substituted for existing
3186	accommodations and facilities of the multisite timeshare plan;
3187	by whom substitutions may be made; the basis upon which the
3188	determination may be made to cause such substitutions to occur;
3189	and any limitations upon the ability to cause substitutions to
3190	occur.
3191	b. The developer shall also disclose any extent to which
3192	purchasers will have the right to consent to any proposed
3193	substitutions; if the purchasers do not have the right to
3194	consent, the developer must include the following disclosure in
3195	conspicuous type:
3196
3197	New accommodations and facilities may be substituted for
3198	existing accommodations and facilities of this multisite
3199	timeshare plan (or multisite vacation ownership plan or
3200	multisite vacation plan or vacation club) without the consent of
3201	the purchasers. The replacement accommodations and facilities
3202	may be located at a different place or may be of a different
3203	type or quality than the replaced accommodations and facilities.
3204	The substitution of accommodations and facilities may also
3205	result in an increase in the annual assessment against
3206	purchasers for common expenses.
3207
3208	3. Deletions.--A description of any provision of the
3209	timeshare instrument governing deletion of accommodations or
3210	facilities from the multisite timeshare plan. If the timeshare
3211	instrument does not provide for business interruption insurance
3212	in the event of a casualty, or if it is unavailable, or if the
3213	instrument permits the developer, the managing entity, or the
3214	purchasers to elect not to reconstruct after casualty under
3215	certain circumstances or to secure replacement accommodations or
3216	facilities in lieu of reconstruction, the public offering
3217	statement must contain a disclosure that during the
3218	reconstruction, replacement, or acquisition period, or as a
3219	result of a decision not to reconstruct, purchasers of the plan
3220	may temporarily compete for available accommodations on a
3221	greater than one-to-one purchaser to accommodation ratio.
3222	(g) A description of the developer and the managing entity
3223	of the multisite timeshare plan, including:
3224	1. The identity of the developer; the developer's business
3225	address; the number of years of experience the developer has in
3226	the timeshare, hotel, motel, travel, resort, or leisure
3227	industries; and a description of any pending lawsuit or judgment
3228	against the developer which is material to the plan. If there
3229	are no such pending lawsuits or judgments, there shall be a
3230	statement to that effect.
3231	2. The identity of the managing entity of the multisite
3232	timeshare plan; the managing entity's business address; the
3233	number of years of experience the managing entity has in the
3234	timeshare, hotel, motel, travel, resort, or leisure industries;
3235	and a description of any lawsuit or judgment against the
3236	managing entity which is material to the plan. If there are no
3237	pending lawsuits or judgments, there shall be a statement to
3238	that effect. The description of the managing entity shall also
3239	include a description of the relationship among the managing
3240	entity of the multisite timeshare plan and the various component
3241	site managing entities.
3242	(h) A description of the purchaser's liability for common
3243	expenses of the multisite timeshare plan, including the
3244	following:
3245	1. A description of the common expenses of the plan,
3246	including the method of allocation and assessment of such common
3247	expenses, whether component site common expenses and real estate
3248	taxes are included within the total common expense assessment of
3249	the multisite timeshare plan, and, if not, the manner in which
3250	timely payment of component site common expenses and real estate
3251	taxes shall be accomplished.
3252	2. A description of any cap imposed upon the level of
3253	common expenses payable by the purchaser. In no event shall the
3254	total common expense assessment for the multisite timeshare plan
3255	in a given calendar year exceed 125 percent of the total common
3256	expense assessment for the plan in the previous calendar year.
3257	3. A description of the entity responsible for the
3258	determination of the common expenses of the multisite timeshare
3259	plan, as well as any entity which may increase the level of
3260	common expenses assessed against the purchaser at the multisite
3261	timeshare plan level.
3262	4. A description of the method used to collect common
3263	expenses, including the entity responsible for such collections,
3264	and the lien rights of any entity for nonpayment of common
3265	expenses. If the common expenses of any component site are
3266	collected by the managing entity of the multisite timeshare
3267	plan, a statement to that effect together with the identity and
3268	address of the escrow agent required by s. 721.56(3).
3269	5. If the purchaser will receive an interest ina
3270	nonspecific multisite timeshare plan license as defined in s.
3271	721.552(4), a statement that a multisite timeshare plan budget
3272	is attached to the public offering statement as an exhibit
3273	pursuant to paragraph (7)(c). The multisite timeshare plan
3274	budget shall comply with the provisions of s. 721.07(5)(u).
3275	6. If the developer intends to guarantee the level of
3276	assessments for the multisite timeshare plan, such guarantee
3277	must be based upon a good faith estimate of the revenues and
3278	expenses of the multisite timeshare plan. The guarantee must
3279	include a description of the following:
3280	a. The specific time period, measured in one or more
3281	calendar or fiscal years, during which the guarantee will be in
3282	effect.
3283	b. A statement that the developer will pay all common
3284	expenses incurred in excess of the total revenues of the
3285	multisite timeshare plan, if the developer is to be excused from
3286	the payment of assessments during the guarantee period.
3287	c. The level, expressed in total dollars, at which the
3288	developer guarantees the assessments. If the developer has
3289	reserved the right to extend or increase the guarantee level, a
3290	disclosure must be included to that effect.
3291	7. If required under applicable law, the developer shall
3292	also disclose the following matters for each component site:
3293	a. Any limitation upon annual increases in common
3294	expenses;
3295	b. The existence of any bad debt or working capital
3296	reserve; and
3297	c. The existence of any replacement or deferred
3298	maintenance reserve.
3299	(i) If there are any restrictions upon the sale, transfer,
3300	conveyance, or leasing of an interest in a multisite timeshare
3301	plan, a description of the restrictions together with a
3302	statement in conspicuous type in substantially the following
3303	form:
3304
3305	The sale, lease, or transfer of interests in this multisite
3306	timeshare plan is restricted or controlled.
3307
3308	(j) The following statement in conspicuous type in
3309	substantially the following form:
3310
3311	The purchase of an interest in a multisite timeshare plan
3312	(or multisite vacation ownership plan or multisite vacation plan
3313	or vacation club) should be based upon its value as a vacation
3314	experience or for spending leisure time, and not considered for
3315	purposes of acquiring an appreciating investment or with an
3316	expectation that the interest may be resold.
3317
3318	(k) If the multisite timeshare plan provides purchasers
3319	with the opportunity to participate in an exchange program, a
3320	description of the name and address of the exchange company and
3321	the method by which a purchaser accesses the exchange program.
3322	In lieu of this requirement, the public offering statement text
3323	may contain a cross-reference to other provisions in the public
3324	offering statement or in an exhibit containing this information.
3325	(l) A description of each component site, which
3326	description may be disclosed in a written, graphic, tabular, or
3327	other form approved by the division. The description of each
3328	component site shall include the following information:
3329	1. The name and address of each component site.
3330	2. The number of accommodations, timeshare interests, and
3331	timeshare periods, expressed in periods of 7-day use
3332	availability, committed to the multisite timeshare plan and
3333	available for use by purchasers.
3334	3. Each type of accommodation in terms of the number of
3335	bedrooms, bathrooms, sleeping capacity, and whether or not the
3336	accommodation contains a full kitchen. For purposes of this
3337	description, a full kitchen shall mean a kitchen having a
3338	minimum of a dishwasher, range, sink, oven, and refrigerator.
3339	4. A description of facilities available for use by the
3340	purchaser at each component site, including the following:
3341	a. The intended use of the facility, if not apparent from
3342	the description.
3343	b. Any user fees associated with a purchaser's use of the
3344	facility.
3345	5. A cross-reference to the location in the public
3346	offering statement of the description of any priority
3347	reservation features which may affect a purchaser's ability to
3348	obtain a reservation in the component site.
3349	(5) Such other information as the division determines is
3350	necessary to fairly, meaningfully, and effectively disclose all
3351	aspects of the multisite timeshare plan, including, but not
3352	limited to, any disclosures made necessary by the operation of
3353	s. 721.03(8). However, if a developer has, in good faith,
3354	attempted to comply with the requirements of this section, and
3355	if, in fact, the developer has substantially complied with the
3356	disclosure requirements of this chapter, nonmaterial errors or
3357	omissions shall not be actionable.
3358	(6) Any other information that the developer, with the
3359	approval of the division, desires to include in the public
3360	offering statement text.
3361	(7) The following documents shall be included as exhibits
3362	to the filed registeredpublic offering statement, if
3363	applicable:
3364	(a) The timeshare instrument.
3365	(b) The reservation system rules and regulations.
3366	(c) The multisite timeshare plan budget pursuant to
3367	subparagraph (4)(h)5.
3368	(d) Any document containing the material rules and
3369	regulations described in paragraph (4)(e).
3370	(e) Any contract, agreement, or other document through
3371	which component sites are affiliated with the multisite
3372	timeshare plan.
3373	(f) Any escrow agreement required pursuant to s. 721.08 or
3374	s. 721.56(3).
3375	(g) The form agreement for sale or lease of an interest in
3376	the multisite timeshare plan.
3377	(h) The form receipt for multisite timeshare plan
3378	documents required to be given to the purchaser pursuant to s.
3379	721.551(2)(b).
3380	(i) The description of documents list required to be given
3381	to the purchaser by s. 721.551(2)(b).
3382	(j) The component site managing entity affidavit or
3383	statement required by s. 721.56(1).
3384	(k) Any subordination instrument required by s. 721.53.
3385	(l)1. If the multisite timeshare plan contains any
3386	component sites located in this state, the information required
3387	by s. 721.07(5) pertaining to each such component site unless
3388	exempt pursuant to s. 721.03.
3389	2. If the purchaser will receive a timeshare estate
3390	pursuant to s. 721.57, or an interest in a specific multisite
3391	timeshare plan, license as defined in s. 721.552(4)in a
3392	component site located outside of this state but which is
3393	offered in this state, the information required by s. 721.07(5)
3394	pertaining to that component site,;provided, however, that the
3395	provisions of s. 721.07(5)(u) shall only require disclosure of
3396	information related to the estimated budget for the timeshare
3397	plan and purchaser's expenses as required by the jurisdiction in
3398	which the component site is located.
3399	(8)(a) A timeshare plan containing only one component site
3400	must be filed with the division as a multisite timeshare plan if
3401	the timeshare instrument reserves the right for the developer to
3402	add future component sites. However, if the developer fails to
3403	add at least one additional component site to a timeshare plan
3404	described in this paragraph within 3 years after the date the
3405	plan is initially filed with the division, the multisite filing
3406	for such plan shall thereupon terminate, and the developer may
3407	not thereafter offer any further interests in such plan unless
3408	and until he or she refiles such plan with the division pursuant
3409	to this chapter.
3410	(b) The public offering statement for any timeshare plan
3411	described in paragraph (a) must include the following disclosure
3412	in conspicuous type:
3413
3414	This timeshare plan has been filed as a multisite timeshare
3415	plan (or multisite vacation ownership plan or multisite vacation
3416	plan or vacation club); however, this plan currently contains
3417	only one component site. The developer is not required to add
3418	any additional component sites to the plan. Do not purchase an
3419	interest in this plan in reliance upon the addition of any other
3420	component sites.
3421	Section 26. Paragraphs (b), (c), and (f) of subsection (2)
3422	of section 721.551, Florida Statutes, are amended to read:
3423	721.551 Delivery of multisite timeshare plan purchaser
3424	public offering statement.--
3425	(2) The developer shall furnish each purchaser with the
3426	following:
3427	(b) A receipt for multisite timeshare plan documents and a
3428	list describing any exhibit to the filed registeredpublic
3429	offering statement which is not delivered to the purchaser. The
3430	division is authorized to prescribe by rule the form of the
3431	receipt for multisite timeshare plan documents and the
3432	description of exhibits list that must be furnished to the
3433	purchaser pursuant to this section.
3434	(c) If the purchaser will receive a timeshare estate
3435	pursuant to s. 721.57, or an interest in a specific multisite
3436	timeshare plan, license as defined in s. 721.552(4)in a
3437	component site located in this state, the developer shall also
3438	furnish the purchaser with the information required to be
3439	delivered pursuant to s. 721.07(6)(a) and (b) for the component
3440	site in which the purchaser will receive an estate or interest
3441	in a specific multisite timeshare plan license.
3442	(f) The developer shall be required to provide the
3443	managing entity of the multisite timeshare plan with a copy of
3444	the approved filed registeredpublic offering statement and any
3445	approved amendments thereto to be maintained by the managing
3446	entity as part of the books and records of the timeshare plan
3447	pursuant to s. 721.13(3)(d).
3448	Section 27. Paragraph (a) of subsection (2), paragraph (c)
3449	of subsection (3), and subsections (4) and (5) of section
3450	721.552, Florida Statutes, are amended to read:
3451	721.552 Additions, substitutions, or deletions of
3452	component site accommodations or facilities; purchaser remedies
3453	for violations.--Additions, substitutions, or deletions of
3454	component site accommodations or facilities may be made only in
3455	accordance with the following:
3456	(2) SUBSTITUTIONS.--
3457	(a) Substitutions are available only for nonspecific
3458	multisite timeshare license plans as defined in subsection (4).
3459	Specific multisite timeshare license plans or as defined in
3460	subsection (4) andplans offering timeshare estates pursuant to
3461	s. 721.57 may not contain an accommodation substitution right.
3462	(3) DELETIONS.--
3463	(c) Automatic deletion.--The timeshare instrument may
3464	provide that a component site will be automatically deleted upon
3465	the expiration of its term in a timeshare planother than a
3466	nonspecific multisite timeshare licenseplan or as otherwise
3467	provided in the timeshare instrument. However, the timeshare
3468	instrument must also provide that in the event a component site
3469	is deleted from the plan in this manner, a sufficient number of
3470	purchasers of the plan will also be deleted so as to maintain no
3471	greater than a one-to-one purchaser to accommodation ratio.
3472	(4) SPECIFIC AND NONSPECIFIC TIMESHARE LICENSES.--For
3473	purposes of this chapter, a specific timeshare license means one
3474	with respect to which a purchaser receives a specific right to
3475	use accommodations and facilities, if any, at one component site
3476	of a multisite timeshare plan, together with use rights in the
3477	other accommodations and facilities of the multisite timeshare
3478	plan created by or acquired through the reservation system. For
3479	purposes of this chapter, a nonspecific timeshare license means
3480	one with respect to which a purchaser receives a right to use
3481	all of the accommodations and facilities, if any, of a multisite
3482	timeshare plan through the reservation system, but no specific
3483	right to use any particular accommodations and facilities for
3484	the remaining term of the multisite timeshare plan in the event
3485	that the reservation system is terminated for any reason prior
3486	to the expiration of the term of the multisite timeshare plan.
3487	(4)(5)VIOLATIONS; PURCHASER REMEDIES.--All purchaser
3488	remedies pursuant to s. 721.21 shall be available for any
3489	violation of the provisions of this section.
3490	Section 28. Subsections (4) and (5) of section 721.56,
3491	Florida Statutes, are amended to read:
3492	721.56 Management of multisite timeshare plans;
3493	reservation systems; demand balancing.--
3494	(4) The managing entity of a multisite timeshare plan
3495	shall comply fully with the requirements of s. 721.13, subject
3496	to the provisions of s. 721.13(11) for personal property
3497	timeshare plans; however, with respect to a given component
3498	site, the managing entity of the multisite timeshare plan shall
3499	not be responsible for compliance as the managing entity of that
3500	component site unless the managing entity of the multisite
3501	timeshare plan is also the managing entity of that component
3502	site. Unless the timeshare instrument provides otherwise, the
3503	operator of the reservation system is the managing entity of a
3504	multisite timeshare plan.
3505	(5)(a)1. The reservation system is a facility of any
3506	nonspecific timeshare license multisite timeshare plan as
3507	defined in s. 721.552(4). The reservation system is not a
3508	facility of any specific timeshare licensemultisite timeshare
3509	plan as defined in s. 721.552(4), nor is it a facility of any
3510	multisite timeshare plan in which timeshare estates are offered
3511	pursuant to s. 721.57.
3512	2. The reservation system of any multisite timeshare plan
3513	shall include any computer software and hardware employed for
3514	the purpose of enabling or facilitating the operation of the
3515	reservation system. Nothing contained in this part shall
3516	preclude a manager or management firm that is serving as
3517	managing entity of a multisite timeshare plan from providing in
3518	its contract with the purchasers or owners' association of the
3519	multisite timeshare plan or in the timeshare instrument that the
3520	manager or management firm owns the reservation system and that
3521	the managing entity shall continue to own the reservation system
3522	in the event the purchasers discharge the managing entity
3523	pursuant to s. 721.14.
3524	(b) In the event of a termination of a managing entity of
3525	a nonspecific license multisite timeshare plan as defined in s.
3526	721.552(4), which managing entity owns the reservation system,
3527	irrespective of whether the termination is voluntary or
3528	involuntary and irrespective of the cause of such termination,
3529	in addition to any other remedies available to purchasers in
3530	this part, the terminated managing entity shall, prior to such
3531	termination, establish a trust meeting the criteria set forth in
3532	this paragraph. It is the intent of the Legislature that this
3533	trust arrangement provide for an adequate period of continued
3534	operation of the reservation system of the multisite timeshare
3535	plan, during which period the new managing entity shall make
3536	provision for the acquisition of a substitute reservation
3537	system.
3538	1. The trust shall be established with an independent
3539	trustee. Both the terminated managing entity and the new
3540	managing entity shall attempt to agree on an acceptable trustee.
3541	In the event they cannot agree on an acceptable trustee, they
3542	shall each designate a nominee, and the two nominees shall
3543	select the trustee.
3544	2. The terminated managing entity shall take all steps
3545	necessary to enable the trustee or the trustee's designee to
3546	operate the reservation system in the same manner as provided in
3547	the timeshare instrument and the public offering statement. The
3548	trustee may, but shall not be required to, contract with the
3549	terminated managing entity for the continued operation of the
3550	reservation system. In the event the trustee elects to contract
3551	with the terminated managing entity, that managing entity shall
3552	be required to operate the reservation system and shall be
3553	entitled to payment for that service. The payment shall in no
3554	event exceed the amount previously paid to the terminated
3555	managing entity for operation of the reservation system.
3556	3. The trust shall remain in effect for a period of no
3557	longer than 1 year following the date of termination of the
3558	managing entity.
3559	4. Nothing contained in this subsection shall abrogate or
3560	otherwise interfere with any proprietary rights in the
3561	reservation system that have been reserved by the discharged
3562	managing entity, in its management contract or otherwise, so
3563	long as such proprietary rights are not asserted in a manner
3564	that would prevent the continued operation of the reservation
3565	system as contemplated in this subsection.
3566	(c) In the event of a termination of a managing entity of
3567	a timeshare estate or specific license multisite timeshare plan
3568	as defined in s. 721.552(4), which managing entity owns the
3569	reservation system, irrespective of whether the termination is
3570	voluntary or involuntary and irrespective of the cause of such
3571	termination, in addition to any other remedies available to
3572	purchasers in this part, the terminated managing entity shall,
3573	prior to such termination, promptly transfer to each component
3574	site managing entity all relevant data contained in the
3575	reservation system with respect to that component site,
3576	including, but not limited to:
3577	1. The names, addresses, and reservation status of
3578	component site accommodations.
3579	2. The names and addresses of all purchasers of timeshare
3580	interests at that component site.
3581	3. All outstanding confirmed reservations and reservation
3582	requests for that component site.
3583	4. Such other component site records and information as
3584	are necessary, in the reasonable discretion of the component
3585	site managing entity, to permit the uninterrupted operation and
3586	administration of the component site, provided that a given
3587	component site managing entity shall not be entitled to any
3588	information regarding other component sites or regarding the
3589	terminated multisite timeshare plan managing entity.
3590
3591	All reasonable costs incurred by the terminated managing entity
3592	in effecting the transfer of information required by this
3593	paragraph shall be reimbursed to the terminated managing entity
3594	on a pro rata basis by each component site, and the amount of
3595	such reimbursement shall constitute a common expense of each
3596	component site.
3597	Section 29. Subsection (2) of section 721.57, Florida
3598	Statutes, is amended to read:
3599	721.57 Offering of timeshare estates in multisite
3600	timeshare plans; required provisions in the timeshare
3601	instrument.--
3602	(2) The timeshare instrument of a multisite timeshare plan
3603	in which timeshare estates are offered, other than a trust
3604	meeting the requirements of s. 721.08,must contain or provide
3605	for all of the following matters:
3606	(a) The purchaser will receive a timeshare estate as
3607	defined in s. 721.05 in one of the component sites of the
3608	multisite timeshare plan. The use rights in the other component
3609	sites of the multisite timeshare plan shall be made available to
3610	the purchaser through the reservation system pursuant to the
3611	timeshare instrument.
3612	(b) In the event that the reservation system is terminated
3613	or otherwise becomes unavailable for any reason prior to the
3614	expiration of the term of the multisite timeshare plan:
3615	1. The purchaser will be able to continue to use the
3616	accommodations and facilities of the component site in which she
3617	or he has been conveyed a timeshare estate in the manner
3618	described in the timeshare instrument for the remaining term of
3619	the timeshare estate; and
3620	2. Any use rights in that component site which had
3621	previously been made available through the reservation system to
3622	purchasers of the multisite timeshare plan who were not offered
3623	a timeshare estate at that component site will terminate when
3624	the reservation system is terminated or otherwise becomes
3625	unavailable for any reason.
3626	Section 30. Subsection (6) of section 721.84, Florida
3627	Statutes, is amended to read:
3628	721.84 Appointment of a registered agent; duties.--
3629	(6) Unless otherwise provided in this section, a
3630	registered agent in receipt of any notice or other document
3631	addressed from the lienholder to the obligor in care of the
3632	registered agent at the registered office must mail, by first
3633	class mail if the obligor's address is within the United States,
3634	and by international air mail if the obligor's address is
3635	outside the United States, with postage fees prepaid, such
3636	notice or documents to the obligor at the obligor's last
3637	designated address within 5 days after ofreceipt.
3638	Section 31. Section 721.96, Florida Statutes, is amended
3639	to read:
3640	721.96 Purpose.--The purpose of this part is to provide
3641	for the appointment of commissioners of deeds to take
3642	acknowledgments, proofs of execution, and oaths outside the
3643	United States in connection with the execution of any deed,
3644	mortgage, deed of trust, contract, power of attorney, or any
3645	other agreement, instrument or writing concerning, relating to,
3646	or to be used or recorded in connection with a timeshare estate,
3647	personal property timeshare interest,timeshare license, any
3648	property subject to a timeshare plan, or the operation of a
3649	timeshare plan located within this state.
3650	Section 32. Subsection (1) of section 721.97, Florida
3651	Statutes, is amended to read:
3652	721.97 Timeshare commissioner of deeds.--
3653	(1) The Governor may appoint commissioners of deeds to
3654	take acknowledgments, proofs of execution, or oaths in any
3655	foreign country. The term of office is 4 years. Commissioners of
3656	deeds shall have authority to take acknowledgments, proofs of
3657	execution, and oaths in connection with the execution of any
3658	deed, mortgage, deed of trust, contract, power of attorney, or
3659	any other writing to be used or recorded in connection with a
3660	timeshare estate, personal property timeshare interest,
3661	timeshare license, any property subject to a timeshare plan, or
3662	the operation of a timeshare plan located within this state;
3663	provided such instrument or writing is executed outside the
3664	United States. Such acknowledgments, proofs of execution, and
3665	oaths must be taken or made in the manner directed by the laws
3666	of this state, including but not limited to s. 117.05(4),
3667	(5)(a), and (6), Florida Statutes 1997, and certified by a
3668	commissioner of deeds. The certification must be endorsed on or
3669	annexed to the instrument or writing aforesaid and has the same
3670	effect as if made or taken by a notary public licensed in this
3671	state.
3672	Section 33. Paragraph (b) of subsection (8) of section
3673	475.011, Florida Statutes, is amended to read:
3674	475.011 Exemptions.--This part does not apply to:
3675	(8)
3676	(b) An exchange company, as that term is defined by s.
3677	721.05(15)(14), but only to the extent that the exchange company
3678	is engaged in exchange program activities as described in and is
3679	in compliance with s. 721.18.
3680	Section 34. Subsection (23) of section 718.103, Florida
3681	Statutes, is amended to read:
3682	718.103 Definitions.--As used in this chapter, the term:
3683	(23) "Residential condominium" means a condominium
3684	consisting of two or more units, any of which are intended for
3685	use as a private temporary or permanent residence, except that a
3686	condominium is not a residential condominium if the use for
3687	which the units are intended is primarily commercial or
3688	industrial and not more than three units are intended to be used
3689	for private residence, and are intended to be used as housing
3690	for maintenance, managerial, janitorial, or other operational
3691	staff of the condominium. With respect to a condominium that is
3692	not a timeshare condominium, a residential unit includes a unit
3693	intended as a private temporary or permanent residence as well
3694	as a unit not intended for commercial or industrial use. With
3695	respect to a timeshare condominium, the timeshare instrument as
3696	defined in s. 721.05(35)(33)shall govern the intended use of
3697	each unit in the condominium. If a condominium is a residential
3698	condominium but contains units intended to be used for
3699	commercial or industrial purposes, then, with respect to those
3700	units which are not intended for or used as private residences,
3701	the condominium is not a residential condominium. A condominium
3702	which contains both commercial and residential units is a mixed-
3703	use condominium and is subject to the requirements of s.
3704	718.404.
3705	Section 35. This act shall take effect upon becoming a
3706	law; however, with respect to any timeshare plan or exchange
3707	program filing approved by the division prior to the date this
3708	act becomes a law, the amendments to s. 721.06(1)(g)2., s.
3709	721.07(2)(d)1. and (5)(e)4., s. 721.075(2)(e), or s.
3710	721.18(1)(l) and (m), Florida Statutes, shall not apply to such
3711	filing until the earlier of January 1, 2004, or the date that
3712	any amendments to such filing are made subsequent to the date
3713	this act becomes a law. With respect to any timeshare plan
3714	filing approved by the division prior to the date this act
3715	becomes a law, the amendment to s. 721.08(3)(a), Florida
3716	Statutes, shall not apply to the nondisturbance and notice to
3717	creditors instrument required by s. 721.08, Florida Statutes,
3718	unless and only to the extent that the developer otherwise
3719	voluntarily complies with all or a portion of such provisions.
3720