CS/HB 61

1
A bill to be entitled
2An act relating to temporary accommodations; amending s.
3125.0104, F.S.; expanding authorized uses of tourist
4development tax revenues to include publicly owned
5convention center hotels and appurtenant facilities;
6amending ss. 125.0104, 125.0108, 212.03, and 212.0305,
7F.S.; revising application of provisions imposing certain
8taxes upon consideration paid for occupancy of certain
9timeshare resort products; providing application and
10construction; amending s. 624.605, F.S.; expanding the
11list of entities authorized to offer debt cancellation
12products for purposes of the definition of the term
13"casualty insurance" to include sellers of timeshare
14interests; amending s. 721.05, F.S.; revising a
15definition; amending s. 721.07, F.S.; specifying
16additional information required in certain public offering
17statements for timeshare plans; amending s. 721.20, F.S.;
18requiring resale service providers to provide certain fee
19or cost and listings information to timeshare interest
20owners; specifying that failure to disclose constitutes an
21unfair and deceptive trade practice; providing that
22certain contracts are void and purchasers are entitled to
23refunds of certain moneys; providing severability;
24providing an effective date.
25
26Be It Enacted by the Legislature of the State of Florida:
27
28     Section 1.  Paragraph (a) of subsection (3) and paragraph
29(a) of subsection (5) of section 125.0104, Florida Statutes, are
30amended to read:
31     125.0104  Tourist development tax; procedure for levying;
32authorized uses; referendum; enforcement.--
33     (3)  TAXABLE PRIVILEGES; EXEMPTIONS; LEVY; RATE.--
34     (a)1.  It is declared to be the intent of the Legislature
35that every person who rents, leases, or lets for consideration
36any living quarters or accommodations in any hotel, apartment
37hotel, motel, resort motel, apartment, apartment motel,
38roominghouse, mobile home park, recreational vehicle park, or
39condominium, or timeshare resort for a term of 6 months or less
40is exercising a privilege which is subject to taxation under
41this section, unless such person rents, leases, or lets for
42consideration any living quarters or accommodations which are
43exempt according to the provisions of chapter 212.
44     2.a.  Tax shall be due on the consideration paid for
45occupancy in the county pursuant to a regulated short-term
46product, as defined in s. 721.05, or occupancy in the county
47pursuant to a product that would be deemed a regulated short-
48term product if the agreement to purchase the short-term right
49were executed in this state. Such tax shall be collected on the
50last day of occupancy within the county unless such
51consideration is applied to the purchase of a timeshare estate.
52The occupancy of an accommodation of a timeshare resort pursuant
53to a timeshare plan, a multisite timeshare plan, or an exchange
54transaction in an exchange program, as defined in s. 721.05, by
55the owner of a timeshare interest or such owner's guest, which
56guest is not paying monetary consideration to the owner or to a
57third party for the benefit of the owner, is not a privilege
58subject to taxation under this section. A membership or
59transaction fee paid by a timeshare owner that does not provide
60the timeshare owner with the right to occupy any specific
61timeshare unit but merely provides the timeshare owner with the
62opportunity to exchange a timeshare interest through an exchange
63program is a service charge and not subject to taxation under
64this section.
65     b.  Consideration paid for the purchase of a timeshare
66license in a timeshare plan, as defined in s. 721.05, is rent
67subject to taxation under this section.
68     (5)  AUTHORIZED USES OF REVENUE.--
69     (a)  All tax revenues received pursuant to this section by
70a county imposing the tourist development tax shall be used by
71that county for the following purposes only:
72     1.  To acquire, construct, extend, enlarge, remodel,
73repair, improve, maintain, operate, or promote one or more
74publicly owned and operated convention centers, sports stadiums,
75sports arenas, coliseums, or auditoriums;, or museums that are
76publicly owned and operated or owned and operated by not-for-
77profit organizations and open to the public; or publicly owned
78convention center hotels and appurtenant facilities, including,
79but not limited to, walkways and meeting facilities, within the
80boundaries of the county or subcounty special taxing district in
81which the tax is levied. Tax revenues received pursuant to this
82section may also be used for promotion of zoological parks that
83are publicly owned and operated or owned and operated by not-
84for-profit organizations and open to the public. However, these
85purposes may be implemented through service contracts and leases
86with lessees with sufficient expertise or financial capability
87to operate such facilities;
88     2.  To promote and advertise tourism in the State of
89Florida and nationally and internationally; however, if tax
90revenues are expended for an activity, service, venue, or event,
91the activity, service, venue, or event shall have as one of its
92main purposes the attraction of tourists as evidenced by the
93promotion of the activity, service, venue, or event to tourists;
94     3.  To fund convention bureaus, tourist bureaus, tourist
95information centers, and news bureaus as county agencies or by
96contract with the chambers of commerce or similar associations
97in the county, which may include any indirect administrative
98costs for services performed by the county on behalf of the
99promotion agency; or
100     4.  To finance beach park facilities or beach improvement,
101maintenance, renourishment, restoration, and erosion control,
102including shoreline protection, enhancement, cleanup, or
103restoration of inland lakes and rivers to which there is public
104access as those uses relate to the physical preservation of the
105beach, shoreline, or inland lake or river. However, any funds
106identified by a county as the local matching source for beach
107renourishment, restoration, or erosion control projects included
108in the long-range budget plan of the state's Beach Management
109Plan, pursuant to s. 161.091, or funds contractually obligated
110by a county in the financial plan for a federally authorized
111shore protection project may not be used or loaned for any other
112purpose. In counties of less than 100,000 population, no more
113than 10 percent of the revenues from the tourist development tax
114may be used for beach park facilities.
115     Section 2.  Paragraph (b) of subsection (1) of section
116125.0108, Florida Statutes, is amended to read:
117     125.0108  Areas of critical state concern; tourist impact
118tax.--
119     (1)
120     (b)1.  It is declared to be the intent of the Legislature
121that every person who rents, leases, or lets for consideration
122any living quarters or accommodations in any hotel, apartment
123hotel, motel, resort motel, apartment, apartment motel,
124roominghouse, mobile home park, recreational vehicle park, or
125condominium, or timeshare resort for a term of 6 months or less,
126unless such establishment is exempt from the tax imposed by s.
127212.03, is exercising a taxable privilege on the proceeds
128therefrom under this section.
129     2.a.  Tax shall be due on the consideration paid for
130occupancy in the county pursuant to a regulated short-term
131product, as defined in s. 721.05, or occupancy in the county
132pursuant to a product that would be deemed a regulated short-
133term product if the agreement to purchase the short-term right
134were executed in this state. Such tax shall be collected on the
135last day of occupancy within the county unless such
136consideration is applied to the purchase of a timeshare estate.
137The occupancy of an accommodation of a timeshare resort pursuant
138to a timeshare plan, a multisite timeshare plan, or an exchange
139transaction in an exchange program, as defined in s. 721.05, by
140the owner of a timeshare interest or such owner's guest, which
141guest is not paying monetary consideration to the owner or to a
142third party for the benefit of the owner, is not a privilege
143subject to taxation under this section. A membership or
144transaction fee paid by a timeshare owner that does not provide
145the timeshare owner with the right to occupy any specific
146timeshare unit but merely provides the timeshare owner with the
147opportunity to exchange a timeshare interest through an exchange
148program is a service charge and not subject to taxation under
149this section.
150     b.  Consideration paid for the purchase of a timeshare
151license in a timeshare plan, as defined in s. 721.05, is rent
152subject to taxation under this section.
153     Section 3.  Subsection (1) of section 212.03, Florida
154Statutes, is amended to read:
155     212.03  Transient rentals tax; rate, procedure,
156enforcement, exemptions.--
157     (1)(a)  It is hereby declared to be the legislative intent
158that every person is exercising a taxable privilege who engages
159in the business of renting, leasing, letting, or granting a
160license to use any living quarters or sleeping or housekeeping
161accommodations in, from, or a part of, or in connection with any
162hotel, apartment house, roominghouse, or tourist or trailer
163camp, mobile home park, recreational vehicle park, condominium,
164or timeshare resort. However, any person who rents, leases,
165lets, or grants a license to others to use, occupy, or enter
166upon any living quarters or sleeping or housekeeping
167accommodations in any apartment house houses, roominghouse
168roominghouses, tourist camp camps, or trailer camp camps, mobile
169home park, recreational vehicle park, condominium, or timeshare
170resort and who exclusively enters into a bona fide written
171agreement for continuous residence for longer than 6 months in
172duration at such property is not exercising a taxable privilege.
173For the exercise of such taxable privilege, a tax is hereby
174levied in an amount equal to 6 percent of and on the total
175rental charged for such living quarters or sleeping or
176housekeeping accommodations by the person charging or collecting
177the rental. Such tax shall apply to hotels, apartment houses,
178roominghouses, or tourist or trailer camps, mobile home parks,
179recreational vehicle parks, condominiums, or timeshare resorts,
180whether or not these facilities have there is in connection with
181any of the same any dining rooms, cafes, or other places where
182meals or lunches are sold or served to guests.
183     (b)1.  Tax shall be due on the consideration paid for
184occupancy in the county pursuant to a regulated short-term
185product, as defined in s. 721.05, or occupancy in the county
186pursuant to a product that would be deemed a regulated short-
187term product if the agreement to purchase the short-term right
188were executed in this state. Such tax shall be collected on the
189last day of occupancy within the county unless such
190consideration is applied to the purchase of a timeshare estate.
191The occupancy of an accommodation of a timeshare resort pursuant
192to a timeshare plan, a multisite timeshare plan, or an exchange
193transaction in an exchange program, as defined in s. 721.05, by
194the owner of a timeshare interest or such owner's guest, which
195guest is not paying monetary consideration to the owner or to a
196third party for the benefit of the owner, is not a privilege
197subject to taxation under this section. A membership or
198transaction fee paid by a timeshare owner that does not provide
199the timeshare owner with the right to occupy any specific
200timeshare unit but merely provides the timeshare owner with the
201opportunity to exchange a timeshare interest through an exchange
202program is a service charge and not subject to taxation under
203this section.
204     2.  Consideration paid for the purchase of a timeshare
205license in a timeshare plan, as defined in s. 721.05, is rent
206subject to taxation under this section.
207     Section 4.  Paragraph (a) of subsection (3) of section
208212.0305, Florida Statutes, is amended to read:
209     212.0305  Convention development taxes; intent;
210administration; authorization; use of proceeds.--
211     (3)  APPLICATION; ADMINISTRATION; PENALTIES.--
212     (a)1.  The convention development tax on transient rentals
213imposed by the governing body of any county authorized to so
214levy shall apply to the amount of any payment made by any person
215to rent, lease, or use for a period of 6 months or less any
216living quarters or accommodations in a hotel, apartment hotel,
217motel, resort motel, apartment, apartment motel, roominghouse,
218tourist or trailer camp, mobile home park, recreational vehicle
219park, or condominium, or timeshare resort. When receipt of
220consideration is by way of property other than money, the tax
221shall be levied and imposed on the fair market value of such
222nonmonetary consideration. Any payment made by a person to rent,
223lease, or use any living quarters or accommodations which are
224exempt from the tax imposed under s. 212.03 shall likewise be
225exempt from any tax imposed under this section.
226     2.a.  Tax shall be due on the consideration paid for
227occupancy in the county pursuant to a regulated short-term
228product, as defined in s. 721.05, or occupancy in the county
229pursuant to a product that would be deemed a regulated short-
230term product if the agreement to purchase the short-term right
231were executed in this state. Such tax shall be collected on the
232last day of occupancy within the county unless such
233consideration is applied to the purchase of a timeshare estate.
234The occupancy of an accommodation of a timeshare resort pursuant
235to a timeshare plan, a multisite timeshare plan, or an exchange
236transaction in an exchange program, as defined in s. 721.05, by
237the owner of a timeshare interest or such owner's guest, which
238guest is not paying monetary consideration to the owner or to a
239third party for the benefit of the owner, is not a privilege
240subject to taxation under this section. A membership or
241transaction fee paid by a timeshare owner that does not provide
242the timeshare owner with the right to occupy any specific
243timeshare unit but merely provides the timeshare owner with the
244opportunity to exchange a timeshare interest through an exchange
245program is a service charge and not subject to taxation under
246this section.
247     b.  Consideration paid for the purchase of a timeshare
248license in a timeshare plan, as defined in s. 721.05, is rent
249subject to taxation under this section.
250     Section 5.  The amendments to sections 125.0104, 125.0108,
251212.03, and 212.0305, Florida Statutes, made by this act are
252intended to be clarifying and remedial in nature and do not
253provide a basis for assessments of tax, or refunds of tax, for
254periods prior to July 1, 2009.
255     Section 6.  Paragraph (r) of subsection (1) of section
256624.605, Florida Statutes, is amended to read:
257     624.605  "Casualty insurance" defined.--
258     (1)  "Casualty insurance" includes:
259     (r)  Insurance for debt cancellation products.--Insurance
260that a creditor may purchase against the risk of financial loss
261from the use of debt cancellation products with consumer loans
262or leases or retail installment contracts. Insurance for debt
263cancellation products is not liability insurance but shall be
264considered credit insurance only for the purposes of s.
265631.52(4).
266     1.  For purposes of this paragraph, the term "debt
267cancellation products" means loan, lease, or retail installment
268contract terms, or modifications to loan, lease, or retail
269installment contracts, under which a creditor agrees to cancel
270or suspend all or part of a customer's obligation to make
271payments upon the occurrence of specified events and includes,
272but is not limited to, debt cancellation contracts, debt
273suspension agreements, and guaranteed asset protection
274contracts. However, the term "debt cancellation products" does
275not include title insurance as defined in s. 624.608.
276     2.  Debt cancellation products may be offered by financial
277institutions, as defined in s. 655.005(1)(h), insured depository
278institutions as defined in 12 U.S.C. s. 1813(c), and
279subsidiaries of such institutions, as provided in the financial
280institutions codes; by sellers as defined in s. 721.05, or by
281the parents, subsidiaries, or affiliated entities of sellers, in
282connection with the sale of timeshare interests;, or by other
283business entities as may be specifically authorized by law, and
284such products shall not constitute insurance for purposes of the
285Florida Insurance Code.
286     Section 7.  Subsection (17) of section 721.05, Florida
287Statutes, is amended to read:
288     721.05  Definitions.--As used in this chapter, the term:
289     (17)  "Facility" means any permanent amenity, including any
290structure, furnishing, fixture, equipment, service, improvement,
291or real or personal property, improved or unimproved, other than
292an accommodation of the timeshare plan, which is made available
293to the purchasers of a timeshare plan. The term does not include
294an incidental benefit as defined in this section.
295     Section 8.  Paragraph (ii) is added to subsection (5) of
296section 721.07, Florida Statutes, to read:
297     721.07  Public offering statement.--Prior to offering any
298timeshare plan, the developer must submit a filed public
299offering statement to the division for approval as prescribed by
300s. 721.03, s. 721.55, or this section. Until the division
301approves such filing, any contract regarding the sale of that
302timeshare plan is subject to cancellation by the purchaser
303pursuant to s. 721.10.
304     (5)  Every filed public offering statement for a timeshare
305plan which is not a multisite timeshare plan shall contain the
306information required by this subsection. The division is
307authorized to provide by rule the method by which a developer
308must provide such information to the division.
309     (ii)  A statement that the owner's obligation to pay
310assessments continues for as long as he or she owns the
311timeshare interest and that when a person inherits a timeshare
312interest, that person is responsible for paying those
313assessments.
314     Section 9.  Subsection (9) is added to section 721.20,
315Florida Statutes, to read:
316     721.20  Licensing requirements; suspension or revocation of
317license; exceptions to applicability; collection of advance fees
318for listings unlawful.--
319     (9)(a)  Prior to listing or advertising a timeshare
320interest for resale, a resale service provider shall provide to
321the timeshare interest owner a description of any fees or costs
322relating to the advertising, listing, or sale of the timeshare
323interest that the timeshare interest owner, or any other person,
324must pay to the resale service provider or any third party, when
325such fees or costs are due, and the ratio or percentage of the
326number of listings of timeshare interests for sale versus the
327number of timeshare interests sold by the resale service
328provider for each of the previous 2 calendar years.
329     (b)  Failure to disclose this information in writing
330constitutes an unfair and deceptive trade practice pursuant to
331chapter 501. Any contract entered into in violation of this
332subsection is void and the purchaser is entitled to a full
333refund of any moneys paid to the resale service provider.
334     Section 10.  If any provision of this act or the
335application thereof to any person or circumstance is held
336invalid, the invalidity does not affect other provisions or
337applications of the act which can be given effect without the
338invalid provision or application, and to this end the provisions
339of this act are declared severable.
340     Section 11.  This act shall take effect July 1, 2009.


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