HB 1163

A bill to be entitled
2An act relating to vacation and timeshare plans; amending
3s. 721.03, F.S.; authorizing a seller to offer timeshare
4interests in timeshare plans located outside of this state
5without filing a public offering statement for such out-
6of-state timeshare plan; providing criteria for such
7offers; amending s. 721.05, F.S.; revising the definition
8of the term "one-to-one purchaser to accommodation ratio";
9amending s. 721.07, F.S.; providing that the developer may
10deliver certain documents by means of certain alternative
11media; prescribing guidelines for the use of alternative
12media in the delivery of such documents; requiring certain
13alternative media to contain a disclosure statement;
14amending s. 721.13, F.S.; providing that timeshare
15condominium associations and timeshare cooperative
16associations are not subject to certain provisions
17relating to transfer of association control; amending s.
18721.165, F.S.; authorizing certain insurance to include
19reasonable deductibles as determined initially by the
20seller and thereafter by the managing entity; providing an
21effective date.
23Be It Enacted by the Legislature of the State of Florida:
25     Section 1.  Subsection (11) is added to section 721.03,
26Florida Statutes, to read:
27     721.03  Scope of chapter.--
28     (11)  A seller may offer timeshare interests in a timeshare
29plan located outside of this state without filing a public
30offering statement for such out-of-state timeshare plans
31pursuant to s. 721.07 or s. 721.55, provided all of the
32following criteria have been satisfied:
33     (a)  The seller shall provide a disclosure statement to
34each prospective purchaser of such out-of-state timeshare plan.
35The disclosure statement shall contain information that is
36substantively equivalent to the disclosures required to be
37provided for similar timeshare plans pursuant to s. 721.07 or s.
38721.55, whichever is applicable. The disclosure statement shall
39also include the exhibits that are required by s.
40721.07(5)(ff)1., 2., 3., 4., 5., 7., 8., and 20.
41     (b)  With respect to any offer for an out-of-state
42timeshare plan made pursuant to this subsection, the delivery by
43the seller to a prospective purchaser of the disclosure
44statement required by paragraph (a) shall be deemed to satisfy
45any requirement of this chapter regarding a public offering
46statement. The disclosure statement and any other required
47documents may be delivered by means of alternative media as
48otherwise permitted by this chapter.
49     (c)  The seller shall utilize and furnish to each purchaser
50of an out-of-state timeshare plan offered pursuant to this
51subsection a fully completed and executed copy of a purchase
52contract that contains the statement set forth in s.
53721.065(2)(c) in conspicuous type located immediately prior to
54the space in the contract reserved for the purchaser's
55signature. The contract shall also contain the initial purchase
56price and any additional charges to which the purchaser may be
57subject in connection with the purchase of the timeshare plan,
58such as financing, or that will be collected from the purchaser
59on or before closing, such as the current year's annual
60assessment for common expenses.
61     (d)  All purchase contracts for out-of-state timeshare
62plans offered pursuant to this subsection must also contain the
63following statements in conspicuous type:
65This timeshare plan has not been reviewed or approved by the
66State of Florida.
68The timeshare interest you are purchasing requires certain
69procedures to be followed in order for you to use your interest.
70These procedures may be different from those followed in other
71timeshare plans. You should read and understand these procedures
72prior to purchasing.
74     (e)1.  An out-of-state timeshare plan may only be offered
75pursuant to this subsection by the seller on behalf of:
76     a.  The developer of a timeshare plan that has been
77approved by the division within the preceding 7 years pursuant
78to s. 721.07 or s. 721.55, or concerning which an amendment by
79the developer has been approved by the division within the
80preceding 7 years, which timeshare plan has neither been
81terminated nor withdrawn; or
82     b.  A developer under common ownership or control with a
83developer described in sub-subparagraph a., provided that any
84common ownership shall constitute at least a 50-percent
85ownership interest.
86     2.  An out-of-state timeshare plan may only be offered
87pursuant to this subsection to a person who already owns a
88timeshare interest in a timeshare plan filed by a developer
89described in subparagraph 1.
90     (f)1.  Except as provided in ss. 721.06, 721.065, 721.07,
91721.27, 721.55, and 721.58, any out-of-state timeshare plan
92offered pursuant to this subsection must meet all requirements
93of this chapter. The out-of-state timeshare plan shall also be
94eligible for any exemptions provided by this chapter.
95     2.  Any escrow account required to be established by s.
96721.08 for any out-of-state timeshare plan offered under this
97subsection may be maintained in the situs jurisdiction.
98     (g)  Any seller of an out-of-state timeshare plan offered
99pursuant to this subsection shall be required to provide notice
100of such plan to the division on a form prescribed by the
101division, along with payment of a one-time fee not to exceed
102$1,000 per filing.
103     Section 2.  Subsection (25) of section 721.05, Florida
104Statutes, is amended to read:
105     721.05  Definitions.--As used in this chapter, the term:
106     (25)  "One-to-one purchaser to accommodation ratio" means
107the ratio of the number of purchasers eligible to use the
108accommodations of a timeshare plan on a given day to the number
109of accommodations available for use within the plan on that day,
110such that the total number of purchasers eligible to use the
111accommodations of the timeshare plan during any 12-month period
112a given calendar year never exceeds the total number of
113accommodations available for use in the timeshare plan during
114that 12-month period year. For purposes of calculation under
115this subsection, each purchaser must be counted at least once,
116and no individual timeshare unit may be counted more than 365
117times per 12-month period calendar year (or more than 366 times
118per leap year). A purchaser who is delinquent in the payment of
119timeshare plan assessments shall continue to be considered
120eligible to use the accommodations of the timeshare plan for
121purposes of this subsection notwithstanding any application of
122s. 721.13(6).
123     Section 3.  Paragraph (f) of subsection (6) of section
124721.07, Florida Statutes, is amended, and subsection (7) is
125added to that section, to read:
126     721.07  Public offering statement.--Prior to offering any
127timeshare plan, the developer must submit a filed public
128offering statement to the division for approval as prescribed by
129s. 721.03, s. 721.55, or this section. Until the division
130approves such filing, any contract regarding the sale of that
131timeshare plan is subject to cancellation by the purchaser
132pursuant to s. 721.10.
133     (6)  The division is authorized to prescribe by rule the
134form of the approved purchaser public offering statement that
135must be furnished by the developer to each purchaser. The form
136of the purchaser public offering statement must provide fair,
137meaningful, and effective disclosure of all aspects of the
138timeshare plan. For timeshare plans filed pursuant to this part,
139the developer shall furnish each purchaser with the following:
140     (f)  Each purchaser shall receive a fully executed paper
141copy of the purchase contract.
142     (7)(a)  A developer may provide a purchaser with the option
143of receiving through alternative media, in any commercially
144acceptable format, any document required by this chapter to be
145delivered to a purchaser in lieu of delivering a paper copy of
146such document to the purchaser. The purchaser's choice of the
147document format shall be set forth in writing on a separate form
148that shall also disclose the system requirements necessary to
149view the alternative media and shall be signed by the purchaser.
150The form shall also state that the purchaser should not select
151alternative media unless the alternative media can be viewed by
152the purchaser prior to expiration of the 10-day cancellation
153period. The alternative media disclosure statement shall be
154listed on the receipt for timeshare documents pursuant to a form
155prescribed by the division.
156     (b)  If a portion, but not all, of such documents is
157delivered to a purchaser through the use of alternative media,
158the developer shall identify which information appears in the
159alternative media and which information is being delivered in
160paper format in the applicable table of contents and in the
161receipt for timeshare documents.
162     (c)  If a purchase contract is delivered by alternative
163media pursuant to this subsection, such alternative media shall
164contain substantially the following statement located on the
165outside of any compact disc or other alternative media jacket,
166sleeve, or other container:
168You may cancel your contract without any penalty or obligation
169within 10 calendar days after you sign the contract or the date
170you receive the last of all documents required to be delivered
171to you. Refer to your purchase contract for more details.
173The division is authorized to prescribe by rule the prominent
174location where the statement shall be located.
175     (d)  The order and content of a purchaser public offering
176statement or a multisite purchaser public offering statement
177delivered through alternative media shall comply with rules
178adopted or issued by the division.
179     (e)  Prior to delivery of the purchaser public offering
180statement through alternative media, the developer must submit
181to the division a copy of the purchaser public offering
182statement in the alternative media format proposed to be used by
183the developer together with an executed certificate, using forms
184prescribed by the division, certifying that the portion of the
185purchaser public offering statement delivered through the
186proposed alternative media format is an accurate representation
187of, and, where practical, identical to, the corresponding
188portion of the written purchaser public offering statement.
189     (f)  The alternative media format used to display the
190purchaser public offering statement may also contain materials
191in addition to the purchaser public offering statement,
192including advertising materials. In the event that the
193alternative media contains materials other than the purchaser
194public offering statement, the location of the purchaser public
195offering statement in the alternative media must be specifically
196and prominently identified in the alternative media and easily
197accessed by the purchaser.
198     (g)  If the developer subsequently amends the written
199purchaser public offering statement, the alternative media
200purchaser public offering statement must also be amended to
201conform to such amendment, and the developer shall file with the
202division an executed certificate, using forms prescribed by the
203division, certifying that the portions of the purchaser public
204offering statement set forth in alternative media format are
205identical to the corresponding portions of the written purchaser
206public offering statement, as amended. Alternatively, the
207developer may provide paper copies of the amendments to the
209     Section 4.  Paragraph (b) of subsection (1) of section
210721.13, Florida Statutes, is amended to read:
211     721.13  Management.--
212     (1)
213     (b)1.  With respect to a timeshare plan which is also
214regulated under chapter 718 or chapter 719, or which contains a
215mandatory owners' association, the board of administration of
216the owners' association shall be considered the managing entity
217of the timeshare plan.
218     2.  During any period of time in which such owners'
219association has entered into a contract with a manager or
220management firm to provide some or all of the management
221services to the timeshare plan, both the board of administration
222and the manager or management firm shall be considered the
223managing entity of the timeshare plan and shall be jointly and
224severally responsible for the faithful discharge of the duties
225of the managing entity.
226     3.  An owners' association which is the managing entity of
227a timeshare plan that includes condominium units or cooperative
228units shall not be considered a condominium association pursuant
229to the provisions of chapter 718 or a cooperative association
230pursuant to the provisions of chapter 719, unless such owners'
231association also operates the entire condominium pursuant to s.
232718.111 or the entire cooperative pursuant to s. 719.104.
233     4.  Notwithstanding anything to the contrary contained in
234chapter 718 or chapter 719, timeshare condominium associations
235and timeshare cooperative associations are not subject to the
236provisions of s. 718.301 or s. 719.301.
237     Section 5.  Subsection (1) of section 721.165, Florida
238Statutes, is amended to read:
239     721.165  Insurance.--
240     (1)  The seller, initially, and thereafter the managing
241entity, shall be responsible for obtaining insurance to protect
242the accommodations and facilities of the timeshare plan in an
243amount equal to the replacement cost of such accommodations and
244facilities. Any insurance, regardless of any requirement in the
245timeshare instrument for coverage for "full insurable value,"
246"replacement cost," or the like, may include reasonable
247deductibles as determined initially by the seller and thereafter
248by the managing entity. Failure to obtain and maintain the
249insurance required by this subsection during any period of
250developer control of the managing entity shall constitute a
251breach of s. 721.13(2)(a) by the managing entity, unless the
252managing entity can show that, despite such failure, it
253exercised due diligence to obtain and maintain the insurance
254required by this subsection.
255     Section 6.  This act shall take effect July 1, 2006.

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