Florida Senate - 2017 SB 818
By Senator Hutson
7-00296A-17 2017818__
1 A bill to be entitled
2 An act relating to timeshares; amending s. 721.05,
3 F.S.; revising the definition of the term
4 “interestholder” to clarify that the term does not
5 include certain parties to a certain multisite
6 timeshare plan; amending s. 721.08, F.S.; clarifying
7 current law; providing that certain instruments are
8 not an encumbrance as they relate to certain vacation
9 and timeshare plans; amending s. 721.125, F.S.;
10 revising requirements for the termination of a
11 timeshare plan; providing that the termination of a
12 timeshare plan does not change the corporate status of
13 an owners’ association under certain circumstances;
14 providing that the owners’ association continues to
15 exist until certain affairs are concluded; requiring
16 the board of administration of the owners’ association
17 to serve as the termination trustee after termination
18 of a timeshare plan; providing powers of the
19 termination trustee; specifying that certain expenses
20 incurred by the termination trustee must be borne by
21 the tenants of a former timeshare property; requiring
22 the termination trustee to adopt certain procedures to
23 implement the partition or sale of a former timeshare
24 property; requiring a voting representative to be
25 designated under certain circumstances; specifying the
26 voting rights of the voting representative; conforming
27 provisions to changes made by the act; creating s.
28 725.1255, F.S.; providing legislative findings;
29 specifying the percentage of votes required to extend
30 the term of a timeshare plan under certain
31 circumstances; specifying what constitutes a quorum
32 under certain circumstances; specifying that a meeting
33 to extend a timeshare plan may be held at any time;
34 authorizing an owners’ association to determine if a
35 person or entity holding a voting interest is
36 ineligible to vote, subject to certain requirements;
37 specifying the maximum duration of validity of a
38 proxy; providing that a proxy for a vote is revocable
39 unless otherwise stated; specifying requirements for
40 certain extension votes to be effective; providing
41 applicability; providing an effective date.
42
43 Be It Enacted by the Legislature of the State of Florida:
44
45 Section 1. Subsection (21) of section 721.05, Florida
46 Statutes, is amended to read:
47 721.05 Definitions.—As used in this chapter, the term:
48 (21)(a) “Interestholder” means a developer, an owner of the
49 underlying fee or owner of the underlying personal property, a
50 mortgagee, judgment creditor, or other lienor, or any other
51 person having an interest in or lien or encumbrance against the
52 accommodations or facilities of the timeshare plan.
53 (b) With respect to a multisite timeshare plan governed by
54 part II which contains a component site that is also part of a
55 single-site timeshare plan or condominium or other property
56 regime, the term does not include a developer; an owner of the
57 underlying fee or owner of the underlying personal property; a
58 mortgagee, judgment creditor, or other lienor; or any other
59 person having an interest in or lien or encumbrance against a
60 timeshare interest in such single-site timeshare plan, or an
61 interest in or lien or encumbrance against a unit in such
62 condominium or property regime, except as to any timeshare
63 interest or unit that is specifically subject to, or otherwise
64 dedicated to, the multisite timeshare plan. This paragraph is
65 intended only as a clarification of existing law.
66 Section 2. Subsection (11) is added to section 721.08,
67 Florida Statutes, to read:
68 721.08 Escrow accounts; nondisturbance instruments;
69 alternate security arrangements; transfer of legal title.—
70 (11) A timeshare instrument, declaration of condominium, or
71 other instrument establishing or governing a component site
72 property regime is not an encumbrance for purposes of this
73 chapter and does not require a nondisturbance and notice to
74 creditors instrument for purposes of this section or a
75 subordination and notice to creditors instrument for purposes of
76 s. 721.53 from the managing entity, owners’ association, or any
77 other person. This subsection is intended only as a
78 clarification of existing law.
79 Section 3. Section 721.125, Florida Statutes, is amended to
80 read:
81 721.125 Extension or Termination of timeshare plans.—
82 (1) Unless the timeshare instrument provides otherwise, the
83 vote or written consent, or both, of 60 percent of all voting
84 interests in a timeshare plan may extend or terminate the term
85 of the timeshare plan at any time. If the term of a timeshare
86 plan is extended pursuant to this section, all rights,
87 privileges, duties, and obligations created under applicable law
88 or the timeshare instrument continue in full force to the same
89 extent as if the extended termination date of the timeshare plan
90 were the original termination date of the timeshare plan. If a
91 timeshare plan is terminated pursuant to this section, the
92 termination has immediate effect pursuant to applicable law and
93 the timeshare instrument as if the effective date of the
94 termination were the original date of termination.
95 (2) If a termination or extension vote or consent pursuant
96 to subsection (1) is proposed for a component site of a
97 multisite timeshare plan located in this state, the proposed
98 termination or extension is effective only if the person
99 authorized to make additions or substitutions of accommodations
100 and facilities pursuant to the timeshare instrument also
101 approves the termination or extension.
102 (3)(a) If the timeshare property is managed by an owners’
103 association that is separate from any underlying condominium,
104 cooperative, or homeowners’ association, the termination of a
105 timeshare plan does not change the corporate status of the
106 owners’ association. The owners’ association continues to exist
107 only for the purposes of concluding its affairs, prosecuting and
108 defending actions by or against it, collecting and discharging
109 obligations, disposing of and conveying its property, collecting
110 and dividing its assets, and otherwise complying with this
111 subsection.
112 1. After termination of a timeshare plan, the board of
113 administration of the owners’ association shall serve as the
114 termination trustee, and in such fiduciary capacity may bring an
115 action in partition on behalf of the tenants in common in each
116 former timeshare property or sell the former timeshare property
117 in any manner and to any person who is approved by a majority of
118 all such tenants in common. The termination trustee also has all
119 other powers reasonably necessary to effect the partition or
120 sale of the former timeshare property, including the power to
121 maintain the property during the pendency of any partition
122 action or sale.
123 2. All reasonable expenses incurred by the termination
124 trustee relating to the performance of its duties pursuant to
125 this subsection, including the reasonable fees of attorneys and
126 other professionals, must be paid by the tenants in common of
127 the former timeshare property subject to partition or sale,
128 proportionate to their respective ownership interests.
129 3. The termination trustee shall adopt reasonable
130 procedures to implement the partition or sale of the former
131 timeshare property and comply with the requirements of this
132 subsection.
133 (b) If a timeshare plan is terminated in a timeshare
134 condominium or timeshare cooperative and the underlying
135 condominium or cooperative is not simultaneously terminated, a
136 majority of the tenants in common in each former timeshare unit
137 present and voting in person or by proxy at a meeting of such
138 tenants in common conducted by the termination trustee, or
139 conducted by the board of administration of the condominium or
140 cooperative association, if such association managed the former
141 timeshare property, shall designate a voting representative for
142 the unit and file a voting certificate with the condominium or
143 cooperative association. The voting representative may vote on
144 all matters at meetings of the condominium or cooperative
145 association, including termination of the condominium or
146 cooperative.
147 (4)(3) This section applies only to a timeshare plan that
148 has been in existence for at least 25 years as of the effective
149 date of the termination or extension vote or consent required by
150 subsection (1).
151 Section 4. Section 721.1255, Florida Statutes, is created
152 to read:
153 721.1255 Extension of timeshare plans.—
154 (1)(a) The Legislature finds that timeshare plans are
155 created as authorized by statute. Most of the older timeshare
156 properties located in this state are based on a condominium
157 structure, and many of these older timeshare properties are
158 approaching the termination dates set forth in their timeshare
159 instruments.
160 (b) The Legislature further finds that there are many older
161 timeshare properties located in this state which have been well
162 maintained over the years and continue to be financially
163 supported, used, and enjoyed by their owners, exchangers,
164 guests, renters, and others. In order to preserve the continued
165 use, enjoyment, tax values, and overall viability of these
166 timeshare properties, the Legislature further finds that the
167 public policy of this state requires the creation of a statutory
168 method to enable the owners of these timeshare properties to
169 extend the terms of their timeshare plans, notwithstanding
170 contrary provisions in their timeshare instruments which may
171 create uncertainty for purchasers, prospective purchasers, and
172 lenders, and which may discourage the ongoing maintenance,
173 refurbishment, and improvement of these timeshare properties.
174 (2)(a) Unless the timeshare instrument specifically
175 provides a lower percentage, the vote or written consent, or
176 both, of at least 66 percent of all eligible voting interests
177 present in person or by proxy at a duly called and constituted
178 meeting of the owners’ association may, at any time, extend the
179 term of the timeshare plan. If the term of a timeshare plan is
180 extended pursuant to this section, all rights, privileges,
181 duties, and obligations created under applicable law or the
182 timeshare instrument continue in full force to the same extent
183 as if the extended termination date of the timeshare plan were
184 the original termination date of the timeshare plan.
185 (b) Unless the timeshare instrument specifically provides
186 for a lower quorum, the quorum for the owners’ association
187 meeting described in paragraph (a) is 50 percent of all eligible
188 voting interests in the timeshare plan.
189 (c) The owners’ association meeting described in paragraph
190 (a) may be held at any time.
191 (d) The board of administration of the owners’ association
192 may determine that any person or entity holding a voting
193 interest who is delinquent in the payment of more than 2 years
194 of assessments is ineligible to vote on any extension of the
195 timeshare plan unless the delinquency is paid in full before the
196 vote.
197 (e) A proxy for a vote to extend a timeshare plan pursuant
198 to this section may be valid for a period of up to 3 years and
199 is revocable unless it states that it is irrevocable.
200 (3) If an extension vote or consent pursuant to this
201 section is proposed for a component site of a multisite
202 timeshare plan located in this state, the proposed extension is
203 effective only if the person authorized to make additions or
204 substitutions of accommodations and facilities pursuant to the
205 timeshare instrument also approves the extension.
206 (4) This section applies to all timeshare properties
207 located in this state.
208 Section 5. This act shall take effect upon becoming a law.