HB 0277

CS

CHAMBER ACTION

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

CODING: Words stricken are deletions; words underlined are additions.