House Bill 0593c2

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    Florida House of Representatives - 2000           CS/CS/HB 593

        By the Committees on General Government Appropriations,
    Real Property & Probate and Representatives Cantens, Goodlette
    and Greenstein




  1                      A bill to be entitled

  2         An act relating to vacation and timeshare

  3         plans; amending s. 719.103, F.S.; providing for

  4         governance of a timeshare cooperative; defining

  5         the term "timeshare estate" for purposes of ch.

  6         719, F.S., the Cooperative Act; amending s.

  7         719.107, F.S.; providing for joint and several

  8         liability for payments of assessments and

  9         charges with respect to a timeshare unit;

10         amending s. 719.114, F.S.; providing for

11         assessing timeshare estates for purposes of ad

12         valorem taxes and special assessments; amending

13         s. 719.3026, F.S.; exempting certain contracts

14         from provisions governing products and

15         services; amending s. 719.401, F.S.; specifying

16         the term of the leasehold for a timeshare

17         cooperative; amending s. 719.503, F.S.;

18         requiring that certain additional disclosures

19         be made prior to the sale or transfer of a

20         timeshare estate; amending s. 719.504, F.S.;

21         requiring that the creation and sale of a

22         timeshare estate with respect to a cooperative

23         unit be disclosed in the prospectus or offering

24         circular; amending s. 721.03, F.S.; revising

25         language with respect to the scope of the

26         Florida Vacation Plan and Timesharing Act;

27         amending s. 721.05, F.S.; providing

28         definitions; amending s. 721.06, F.S.; revising

29         requirements with respect to contracts for the

30         purchase of timeshare interests; amending s.

31         721.065, F.S.; providing for resale listings;

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  1         providing legislative intent; providing for the

  2         deposit of certain advance fees in a trust

  3         account; providing requirements with respect to

  4         resale; providing penalties; amending s.

  5         721.07, F.S.; revising language with respect to

  6         public offering statements; providing

  7         conditions for the delivery of a purchaser

  8         public offering statement which is not yet

  9         approved by the Division of Florida Land Sales,

10         Condominiums, and Mobile Homes of the

11         Department of Business and Professional

12         Regulation; amending s. 721.075, F.S.; revising

13         language with respect to incidental benefits;

14         amending s. 721.08, F.S.; revising language

15         with respect to escrow accounts; providing

16         additional criteria with respect to compliance

17         with certain conditions for the release of

18         escrow funds; providing requirements with

19         respect to unclaimed escrow funds; amending s.

20         721.09, F.S.; revising language with respect to

21         reservation agreements; amending s. 721.10,

22         F.S.; revising language with respect to

23         cancellation; amending s. 721.11, F.S.;

24         providing a filing fee with respect to

25         advertising materials filed with the division;

26         revising language with respect to advertising

27         materials; providing additional criteria for

28         advertising materials; amending s. 721.111,

29         F.S.; revising language with respect to prize

30         and gift promotional offers; amending s.

31         721.12, F.S., relating to recordkeeping by a

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  1         seller; amending s. 721.13, F.S.; revising

  2         language with respect to management; providing

  3         additional powers of the board of

  4         administration of the owners' association;

  5         amending s. 721.14, F.S., relating to discharge

  6         of the managing entity; amending s. 721.15,

  7         F.S.; revising language with respect to

  8         assessments for common expenses; providing

  9         requirements with respect to insurance;

10         amending s. 721.16, F.S.; revising language

11         with respect to liens for overdue assessments

12         and liens for labor performed on, or materials

13         furnished to a timeshare unit; providing a lien

14         for certain damages done by a guest; amending

15         s. 721.165, F.S.; providing penalties for

16         failure to obtain certain insurance; amending

17         s. 721.17, F.S.; revising language with respect

18         to transfer of interest; amending s. 721.18,

19         F.S., relating to exchange programs; amending

20         s. 721.19, F.S., relating to provisions

21         requiring the purchase or lease of timeshare

22         property by owners' associations or purchasers;

23         amending s. 721.20, F.S.; revising language

24         with respect to licensing requirements;

25         amending s. 721.21, F.S., relating to

26         purchasers' remedies; amending s. 721.24, F.S.;

27         revising language with respect to firesafety;

28         amending s. 721.26, F.S.; revising language

29         with respect to regulation by the division;

30         amending s. 721.27, F.S.; revising language

31         with respect to the annual fee for each

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  1         timeshare unit in the plan; creating s. 721.29,

  2         F.S.; providing for the protection of

  3         purchasers' rights when recording is not

  4         available in certain jurisdictions; amending s.

  5         721.51, F.S.; revising language with respect to

  6         legislative purpose and scope concerning

  7         vacation clubs; amending s. 721.52, F.S.;

  8         revising the definition of the term "multisite

  9         timeshare plan"; amending s. 721.53, F.S.;

10         providing an additional piece of information

11         which the developer may provide to the division

12         prior to offering an accommodation or facility

13         as a part of a multisite timeshare plan;

14         amending s. 721.55, F.S.; revising language

15         with respect to the public offering statement

16         for a multisite timeshare plan; amending s.

17         721.551, F.S., relating to the delivery of a

18         multisite timeshare plan public offering

19         statement; amending s. 721.552, F.S., relating

20         to additions, substitutions, or deletions of

21         component site accommodations or facilities;

22         repealing s. 721.553, F.S., relating to the

23         portrayal of proposed component sites; amending

24         s. 721.56, F.S.; revising language with respect

25         to the management of multisite timeshare plans;

26         amending s. 721.81, F.S.; revising legislative

27         purpose with respect to the Timeshare Lien

28         Foreclosure Act; amending s. 721.82, F.S.;

29         revising the definition of the term "assessment

30         lien"; amending s. 721.84, F.S., relating to

31         the appointment of a resident agent; amending

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  1         s. 721.85, F.S., relating to service to notice

  2         address or on registered agent; amending s.

  3         721.86, F.S., including a cross reference;

  4         amending s. 718.103, F.S.; correcting a cross

  5         reference; providing severability; providing an

  6         effective date.

  7

  8  Be It Enacted by the Legislature of the State of Florida:

  9

10         Section 1.  Subsection (21) of section 719.103, Florida

11  Statutes, is amended, and present subsections (23) through

12  (26) are renumbered as subsections (24) through (27),

13  respectively, and a new subsection (23) is added to said

14  section, to read:

15         719.103  Definitions.--As used in this chapter:

16         (21)  "Residential cooperative" means a cooperative

17  consisting of cooperative units, any of which are intended for

18  use as a private residence. A cooperative is not a residential

19  cooperative if the use of the units is intended as primarily

20  commercial or industrial and not more than three units are

21  intended to be used for private residence, domicile, or

22  homestead, or if the units are intended to be used as housing

23  for maintenance, managerial, janitorial, or other operational

24  staff of the cooperative. If a cooperative is a residential

25  cooperative under this definition, but has units intended to

26  be commercial or industrial, then the cooperative is a

27  residential cooperative with respect to those units intended

28  for use as a private residence, domicile, or homestead, but

29  not a residential cooperative with respect to those units

30  intended for use commercially or industrially. With respect to

31  a timeshare cooperative, the timeshare instrument as defined

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  1  in s. 721.05 shall govern the intended use of each unit in the

  2  cooperative.

  3         (23)  "Timeshare estate" means any interest in a unit

  4  under which the exclusive right of use, possession, or

  5  occupancy of the unit circulates among the various purchasers

  6  of a timeshare plan pursuant to chapter 721 on a recurring

  7  basis for a period of time.

  8         Section 2.  Subsection (1) of section 719.107, Florida

  9  Statutes, is amended to read:

10         719.107  Common expenses; assessment.--

11         (1)(a)  Common expenses include the expenses of the

12  operation, maintenance, repair, or replacement of the

13  cooperative property; costs of carrying out the powers and

14  duties of the association; and any other expense, whether or

15  not included in this paragraph, designated as common expense

16  by this chapter or the cooperative documents.

17         (b)  If so provided in the bylaws, the cost of a master

18  antenna television system or duly franchised cable television

19  service obtained pursuant to a bulk contract shall be deemed a

20  common expense, and if not obtained pursuant to a bulk

21  contract, such cost shall be considered common expense if it

22  is designated as such in a written contract between the board

23  of administration and the company providing the master

24  television antenna system or the cable television service.

25  The contract shall be for a term of not less than 2 years.

26         1.  Any contract made by the board after April 2, 1992,

27  for a community antenna system or duly franchised cable

28  television service may be canceled by a majority of the voting

29  interests present at the next regular or special meeting of

30  the association.  Any member may make a motion to cancel the

31  contract, but if no motion is made or if such motion fails to

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  1  obtain the required majority at the next regular or special

  2  meeting, whichever is sooner, following the making of the

  3  contract, then such contract shall be deemed ratified for the

  4  term therein expressed.

  5         2.  Any such contract shall provide, and shall be

  6  deemed to provide if not expressly set forth, that any hearing

  7  impaired or legally blind unit owner who does not occupy the

  8  unit with a nonhearing impaired or sighted person may

  9  discontinue the service without incurring disconnect fees,

10  penalties, or subsequent service charges, and as to such

11  units, the owners shall not be required to pay any common

12  expenses charge related to such service.  If less than all

13  members of an association share the expenses of cable

14  television, the expense shall be shared equally by all

15  participating unit owners.  The association may use the

16  provisions of s. 719.108 to enforce payment of the shares of

17  such costs by the unit owners receiving cable television.

18         (c)  If any unpaid share of common expenses or

19  assessments is extinguished by foreclosure of a superior lien

20  or by a deed in lieu of foreclosure thereof, the unpaid share

21  of common expenses or assessments are common expenses

22  collectible from all the unit owners in the cooperative in

23  which the unit is located.

24         (d)  With respect to each timeshare unit, each owner of

25  a timeshare estate therein is jointly and severally liable for

26  the payment of all assessments and other charges levied

27  against or with respect to that unit pursuant to the

28  cooperative documents, except to the extent that the

29  cooperative documents provide to the contrary. This paragraph

30  does not apply to any unit that is not committed to a

31  timeshare plan.

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  1         Section 3.  Subsection (3) is added to section 719.114,

  2  Florida Statutes, to read:

  3         719.114  Separate taxation of cooperative parcels;

  4  survival of contractual provisions after tax sale.--

  5         (3)  Cooperative property divided into timeshare

  6  estates shall be assessed for purposes of ad valorem taxes and

  7  special assessments as provided in s. 192.037.

  8         Section 4.  Section 719.3026, Florida Statutes, is

  9  amended to read:

10         719.3026  Contracts for products and services; in

11  writing; bids; exceptions.--Associations with less than 100

12  units may opt out of the provisions of this section if

13  two-thirds of the unit owners vote to do so, which opt-out may

14  be accomplished by a proxy specifically setting forth the

15  exception from this section.

16         (1)  All contracts as further described herein or any

17  contract that is not to be fully performed within 1 year after

18  the making thereof, for the purchase, lease, or renting of

19  materials or equipment to be used by the association in

20  accomplishing its purposes under this chapter, and all

21  contracts for the provision of services, shall be in writing.

22  If a contract for the purchase, lease, or renting of materials

23  or equipment, or for the provision of services, requires

24  payment by the association in an amount which in the aggregate

25  exceeds 5 percent of the association's budget, including

26  reserves, the association shall obtain competitive bids for

27  the materials, equipment, or services.  Nothing contained

28  herein shall be construed to require the association to accept

29  the lowest bid.

30         (2)(a)1.  Notwithstanding the foregoing, contracts with

31  employees of the association, and contracts for attorney,

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  1  accountant, architect, community association manager,

  2  timeshare management firm, engineering, and landscape

  3  architect services shall not be subject to the provisions of

  4  this section.

  5         2.  A contract executed before January 1, 1992, and any

  6  renewal thereof, is not subject to the competitive bid

  7  requirements of this section. If a contract was awarded under

  8  the competitive bid procedures of this section, any renewal of

  9  that contract is not subject to such competitive bid

10  requirements if the contract contains a provision that allows

11  the board to cancel the contract on 30 days' notice.

12  Materials, equipment, or services provided to a cooperative

13  pursuant to a local government franchise agreement by a

14  franchise holder are not subject to the competitive bid

15  requirement.  A contract with a manager, if made by a

16  competitive bid, may be made for up to 3 years.  A condominium

17  whose declaration or bylaws provides for competitive bidding

18  for services may operate under the provisions of that

19  declaration or bylaws in lieu of this section if those

20  provisions are not less stringent than the requirements of

21  this section.

22         (b)  This section does not limit the ability of an

23  association to obtain needed products and services in an

24  emergency.

25         (c)  This section does not apply if the business entity

26  with which the association desires to enter into a contract is

27  the only source of supply within the county serving the

28  association.

29         Section 5.  Subsection (1) of section 719.401, Florida

30  Statutes, is amended to read:

31         719.401  Leaseholds.--

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  1         (1)  A cooperative may be created on lands held under

  2  lease or may include recreational facilities or other common

  3  elements or commonly used facilities on a leasehold, if, on

  4  the date the first unit is conveyed by the developer to a bona

  5  fide purchaser, the lease has an unexpired term of at least 50

  6  years. However, if the cooperative constitutes a timeshare

  7  cooperative created pursuant to chapter 721, the lease must

  8  have an unexpired term of at least 30 years. If rent under the

  9  lease is payable by the association or by the unit owners, the

10  lease shall include the following requirements:

11         (a)  The leased land must be identified by a

12  description that is sufficient to pass title, and the leased

13  personal property must be identified by a general description

14  of the items of personal property and the approximate number

15  of each item of personal property that the developer is

16  committing to furnish for each room or other facility.  In the

17  alternative, the personal property may be identified by a

18  representation as to the minimum amount of expenditure that

19  will be made to purchase the personal property for the

20  facility.  Unless the lease is of a unit, the identification

21  of the land shall be supplemented by a survey showing the

22  relation of the leased land to the land included in the common

23  areas.  This provision shall not prohibit adding additional

24  land or personal property in accordance with the terms of the

25  lease, provided there is no increase in rent or material

26  increase in maintenance costs to the individual unit owner.

27         (b)  The lease shall not contain a reservation of the

28  right of possession or control of the leased property by the

29  lessor or any person other than unit owners or the

30  association, and shall not create rights to possession or use

31  of the leased property in any parties other than the

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  1  association or unit owners of the cooperative to be served by

  2  the leased property, unless the reservations and rights

  3  created are conspicuously disclosed.  Any provision for use of

  4  the leased property by anyone other than unit owners of the

  5  cooperatives to be served by the leased property shall require

  6  the other users to pay a fair and reasonable share of the

  7  maintenance and repair obligations and other exactions due

  8  from users of the leased property.

  9         (c)  The lease shall state the minimum number of unit

10  owners that will be required, directly or indirectly, to pay

11  the rent under the lease and the maximum number of units that

12  will be served by the leased property.  The limitation of the

13  number of units to be served shall not preclude enlargement of

14  the facilities leased and an increase in their capacity, if

15  approved by the association operating the leased property

16  after unit owners other than the developer have assumed

17  control of the association.  This paragraph does not apply if

18  the lessor is the Government of the United States or the State

19  of Florida or any political subdivision thereof or any agency

20  or any political subdivision thereof.

21         (d)1.  In any action by the lessor to enforce a lien

22  for rent payable or in any action by the association or a unit

23  owner with respect to the obligations of the lessee or the

24  lessor under the lease, the unit owner or the association may

25  raise any issue or interpose any defenses, legal or equitable,

26  that he or she or it may have with respect to the lessor's

27  obligations under the lease.  If the unit owner or the

28  association initiates any action or interposes any defense

29  other than payment of rent under the lease, the unit owner or

30  the association shall, upon service of process upon the

31  lessor, pay into the registry of the court any allegedly

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  1  accrued rent and the rent which accrues during the pendency of

  2  the proceeding, when due.  If the unit owner or the

  3  association fails to pay the rent into the registry of the

  4  court, it shall constitute an absolute waiver of the unit

  5  owner's or association's defenses other than payment, and the

  6  lessor shall be entitled to default. The unit owner or the

  7  association shall notify the lessor of any deposits.  When the

  8  unit owner or the association has deposited the required funds

  9  into the registry of the court, the lessor may apply to the

10  court for disbursement of all or part of the funds shown to be

11  necessary for the payment of taxes, mortgage payments,

12  maintenance and operating expenses, and other necessary

13  expenses incident to maintaining and equipping the leased

14  facilities or necessary for the payment of other expenses

15  arising out of personal hardship resulting from the loss of

16  rental income from the leased facilities.  The court, after an

17  evidentiary hearing, may award all or part of the funds on

18  deposit to the lessor for such purpose. The court shall

19  require the lessor to post bond or other security, as a

20  condition to the release of funds from the registry, when the

21  value of the leased land and improvements, apart from the

22  lease itself, is inadequate to fully secure the sum of

23  existing encumbrances on the leased property and the amounts

24  released from the court registry.

25         2.  When the association or unit owners have deposited

26  funds into the registry of the court pursuant to this

27  subsection, and the unit owners and association have otherwise

28  complied with their obligations under the lease or agreement,

29  other than paying rent into the registry of the court rather

30  than to the lessor, the lessor cannot hold the association or

31  unit owners in default on their rental payments nor may the

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  1  lessor file liens or initiate foreclosure proceedings against

  2  unit owners.  If the lessor, in violation of this subsection,

  3  attempts such liens or foreclosures, then the lessor may be

  4  liable for damages plus attorney's fees and costs which the

  5  association or unit owners incurred in satisfying those liens

  6  or foreclosures.

  7         3.  Nothing in this paragraph shall affect litigation

  8  commenced prior to October 1, 1979.

  9         (e)  If the lease is of recreational facilities or

10  other commonly used facilities that are not completed, rent

11  shall not commence until some of the facilities are completed.

12  Until all of the facilities leased are completed, rent shall

13  be prorated and paid only for the completed facilities in the

14  proportion that the value of the completed facilities bears to

15  the estimated value, when completed, of all of the facilities

16  that are leased. The facilities shall be complete when they

17  have been constructed, finished, and equipped and are

18  available for use.

19         (f)1.  A lease of recreational or other commonly used

20  facilities entered into by the association or unit owners

21  prior to the time the control of the association is turned

22  over to unit owners other than the developer shall grant to

23  the lessee an option to purchase the leased property, payable

24  in cash on any anniversary date of the beginning of the lease

25  term after the 10th anniversary, at a price then determined by

26  agreement.  If there is no agreement as to the price, then the

27  price shall be determined by arbitration. This paragraph shall

28  be applied to contracts entered into on, before, or after

29  January 1, 1977, regardless of the duration of the lease.

30         2.  If the lessor wishes to sell his or her interest

31  and has received a bona fide offer to purchase it, the lessor

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  1  shall send the association and each unit owner a copy of the

  2  executed offer. For 90 days following receipt of the offer by

  3  the association or unit owners, the association or unit owners

  4  have the option to purchase the interest on the terms and

  5  conditions in the offer. The option shall be exercised, if at

  6  all, by notice in writing given to the lessor within the

  7  90-day period.  If the association or unit owners do not

  8  exercise the option, the lessor shall have the right, for a

  9  period of 60 days after the 90-day period has expired, to

10  complete the transaction described in the offer to purchase.

11  If for any reason such transaction is not concluded within the

12  60 days, the offer shall have been abandoned, and the

13  provisions of this subsection shall be reimposed.

14         3.  The option shall be exercised upon approval by

15  owners of two-thirds of the units served by the leased

16  property.

17         4.  The provisions of this paragraph shall not apply to

18  a nonresidential cooperative and shall not apply if the lessor

19  is the Government of the United States or the State of Florida

20  or any political subdivision thereof or, in the case of an

21  underlying land lease, a person or entity which is not the

22  developer or directly or indirectly owned or controlled by the

23  developer and did not obtain, directly or indirectly,

24  ownership of the leased property from the developer.

25         (g)  The lease or a subordination agreement executed by

26  the lessor must provide either:

27         1.  That any lien which encumbers a unit for rent or

28  other moneys or exactions payable is subordinate to any

29  mortgage held by an institutional lender, or

30         2.  That, upon the foreclosure of any mortgage held by

31  an institutional lender or upon delivery of a deed in lieu of

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  1  foreclosure, the lien for the unit owner's share of the rent

  2  or other exactions shall not be extinguished but shall be

  3  foreclosed and unenforceable against the mortgagee with

  4  respect to that unit's share of the rent and other exactions

  5  which mature or become due and payable on or before the date

  6  of the final judgment of foreclosure, in the event of

  7  foreclosure, or on or before the date of delivery of the deed

  8  in lieu of foreclosure.  The lien may, however, automatically

  9  and by operation of the lease or other instrument, reattach to

10  the unit and secure the payment of the unit's proportionate

11  share of the rent or other exactions coming due subsequent to

12  the date of final decree of foreclosure or the date of

13  delivery of the deed in lieu of foreclosure.

14

15  This paragraph does not apply if the lessor is the Government

16  of the United States or the State of Florida or any political

17  subdivision thereof or any agency or political subdivision

18  thereof.

19         Section 6.  Paragraph (a) of subsection (1) and

20  paragraph (b) of subsection (3) of section 719.503, Florida

21  Statutes, are amended to read:

22         719.503  Disclosure prior to sale.--

23         (1)  DEVELOPER DISCLOSURE.--

24         (a)  Contents of contracts.--Any contracts for the sale

25  of a unit or a lease thereof for an unexpired term of more

26  than 5 years shall contain:

27         1.  The following legend in conspicuous type: THIS

28  AGREEMENT IS VOIDABLE BY BUYER BY DELIVERING WRITTEN NOTICE OF

29  THE BUYER'S INTENTION TO CANCEL WITHIN 15 DAYS AFTER THE DATE

30  OF EXECUTION OF THIS AGREEMENT BY THE BUYER, AND RECEIPT BY

31  BUYER OF ALL OF THE ITEMS REQUIRED TO BE DELIVERED TO HIM OR

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  1  HER BY THE DEVELOPER UNDER SECTION 719.503, FLORIDA STATUTES.

  2  THIS AGREEMENT IS ALSO VOIDABLE BY BUYER BY DELIVERING WRITTEN

  3  NOTICE OF THE BUYER'S INTENTION TO CANCEL WITHIN 15 DAYS AFTER

  4  THE DATE OF RECEIPT FROM THE DEVELOPER OF ANY AMENDMENT WHICH

  5  MATERIALLY ALTERS OR MODIFIES THE OFFERING IN A MANNER THAT IS

  6  ADVERSE TO THE BUYER.  ANY PURPORTED WAIVER OF THESE

  7  VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE

  8  TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15 DAYS AFTER

  9  THE BUYER HAS RECEIVED ALL OF THE ITEMS REQUIRED.  BUYER'S

10  RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT CLOSING.

11         2.  The following caveat in conspicuous type shall be

12  placed upon the first page of the contract:  ORAL

13  REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE

14  REPRESENTATIONS OF THE DEVELOPER.  FOR CORRECT

15  REPRESENTATIONS, REFERENCE SHOULD BE MADE TO THIS CONTRACT AND

16  THE DOCUMENTS REQUIRED BY SECTION 719.503, FLORIDA STATUTES,

17  TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE.

18         3.  If the unit has been occupied by someone other than

19  the buyer, a statement that the unit has been occupied.

20         4.  If the contract is for the sale or transfer of a

21  unit subject to a lease, the contract shall include as an

22  exhibit a copy of the executed lease and shall contain within

23  the text in conspicuous type:  THE UNIT IS SUBJECT TO A LEASE

24  (OR SUBLEASE).

25         5.  If the contract is for the lease of a unit for a

26  term of 5 years or more, the contract shall include as an

27  exhibit a copy of the proposed lease.

28         6.  If the contract is for the sale or lease of a unit

29  that is subject to a lien for rent payable under a lease of a

30  recreational facility or other common areas, the contract

31  shall contain within the text the following statement in

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  1  conspicuous type:  THIS CONTRACT IS FOR THE TRANSFER OF A UNIT

  2  THAT IS SUBJECT TO A LIEN FOR RENT PAYABLE UNDER A LEASE OF

  3  COMMON AREAS. FAILURE TO PAY RENT MAY RESULT IN FORECLOSURE OF

  4  THE LIEN.

  5         7.  The contract shall state the name and address of

  6  the escrow agent required by s. 719.202 and shall state that

  7  the purchaser may obtain a receipt for his or her deposit from

  8  the escrow agent, upon request.

  9         8.  If the contract is for the sale or transfer of a

10  unit in a cooperative in which timeshare estates have been or

11  may be created, the following text in conspicuous type:  UNITS

12  IN THIS COOPERATIVE ARE SUBJECT TO TIMESHARE ESTATES. The

13  contract for the sale of a timeshare estate must also contain,

14  in conspicuous type, the following:  FOR THE PURPOSE OF AD

15  VALOREM TAXES OR SPECIAL ASSESSMENTS LEVIED BY TAXING

16  AUTHORITIES AGAINST A TIMESHARE ESTATE, THE MANAGING ENTITY IS

17  GENERALLY CONSIDERED THE TAXPAYER UNDER FLORIDA LAW.  YOU HAVE

18  THE RIGHT TO CHALLENGE AN ASSESSMENT BY A TAXING AUTHORITY

19  RELATING TO YOUR TIMESHARE ESTATE PURSUANT TO THE PROVISIONS

20  OF CHAPTER 194, FLORIDA STATUTES.

21         (3)  OTHER DISCLOSURE.--

22         (b)  Sales brochures, if any, shall be provided to each

23  purchaser, and the following caveat in conspicuous type shall

24  be placed on the inside front cover or on the first page

25  containing text material of the sales brochure, or otherwise

26  conspicuously displayed:  ORAL REPRESENTATIONS CANNOT BE

27  RELIED UPON AS CORRECTLY STATING REPRESENTATIONS OF THE

28  DEVELOPER.  FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO

29  THIS BROCHURE AND TO THE DOCUMENTS REQUIRED BY SECTION

30  719.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A

31  BUYER OR LESSEE. If timeshare estates have been or may be

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  1  created with respect to any unit in the cooperative, the sales

  2  brochure for sales of timeshare estates in such units must

  3  contain the following statement in conspicuous type:  UNITS IN

  4  THIS COOPERATIVE ARE SUBJECT TO TIMESHARE ESTATES.

  5         Section 7.  Subsection (5) of section 719.504, Florida

  6  Statutes, is amended to read:

  7         719.504  Prospectus or offering circular.--Every

  8  developer of a residential cooperative which contains more

  9  than 20 residential units, or which is part of a group of

10  residential cooperatives which will be served by property to

11  be used in common by unit owners of more than 20 residential

12  units, shall prepare a prospectus or offering circular and

13  file it with the Division of Florida Land Sales, Condominiums,

14  and Mobile Homes prior to entering into an enforceable

15  contract of purchase and sale of any unit or lease of a unit

16  for more than 5 years and shall furnish a copy of the

17  prospectus or offering circular to each buyer.  In addition to

18  the prospectus or offering circular, each buyer shall be

19  furnished a separate page entitled "Frequently Asked Questions

20  and Answers," which must be in accordance with a format

21  approved by the division.  This page must, in readable

22  language:  inform prospective purchasers regarding their

23  voting rights and unit use restrictions, including

24  restrictions on the leasing of a unit; indicate whether and in

25  what amount the unit owners or the association is obligated to

26  pay rent or land use fees for recreational or other commonly

27  used facilities; contain a statement identifying that amount

28  of assessment which, pursuant to the budget, would be levied

29  upon each unit type, exclusive of any special assessments, and

30  which identifies the basis upon which assessments are levied,

31  whether monthly, quarterly, or otherwise; state and identify

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  1  any court cases in which the association is currently a party

  2  of record in which the association may face liability in

  3  excess of $100,000; and state whether membership in a

  4  recreational facilities association is mandatory and, if so,

  5  identify the fees currently charged per unit type.  The

  6  division shall by rule require such other disclosure as in its

  7  judgment will assist prospective purchasers. The prospectus or

  8  offering circular may include more than one cooperative,

  9  although not all such units are being offered for sale as of

10  the date of the prospectus or offering circular.  The

11  prospectus or offering circular must contain the following

12  information:

13         (5)(a)  A statement in conspicuous type describing

14  whether the cooperative is created and being sold as fee

15  simple interests or as leasehold interests.  If the

16  cooperative is created or being sold on a leasehold, the

17  location of the lease in the disclosure materials shall be

18  stated.

19         (b)  If timeshare estates are or may be created with

20  respect to any unit in the cooperative, a statement in

21  conspicuous type stating that timeshare estates are created

22  and being sold in such specified units in the cooperative.

23         Section 8.  Section 721.03, Florida Statutes, is

24  amended to read:

25         721.03  Scope of chapter.--

26         (1)  This chapter applies to all timeshare plans

27  consisting of more than seven timeshare periods over a period

28  of at least 3 years in which the accommodations and or

29  facilities, if any, are located within this state or offered

30  within this state; provided that:

31

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  1         (a)  With respect to a timeshare plan plans containing

  2  accommodations or facilities located in this state which has

  3  previously been filed with and approved by the division and

  4  which is are offered for sale in other jurisdictions within

  5  the jurisdictional limits of the United States, that regulate

  6  the offering or sale of the timeshare plan in plans, such

  7  jurisdictions offers shall not be subject to the provisions of

  8  this chapter ss. 721.06, 721.08-721.12, and 721.20 to the

  9  extent that such activity is regulated in the other United

10  States jurisdictions, but only after the division has received

11  and accepted satisfactory evidence that the timeshare plan has

12  been filed and accepted by the appropriate agency in the other

13  jurisdictions.  The director of the division shall also have

14  the discretion to require all or a portion of the disclosures

15  required by s. 721.07 or s. 721.55 to be made in connection

16  with offers made in the other United States jurisdictions.

17         (b)  With respect to a timeshare plan plans containing

18  accommodations or facilities located in this state which is

19  are offered for sale outside the jurisdictional limits of the

20  United States, such offer or sale offers shall be exempt from

21  the requirements of this chapter, provided that the developer

22  shall either file the timeshare plan with the division for

23  approval pursuant to this chapter, or pay an exemption

24  registration fee of $100 and file the following minimum

25  information pertaining to the timeshare plan with the division

26  for approval:

27         1.  The name and address of the timeshare plan.

28         2.  The name and address of the developer and seller,

29  if any.

30

31

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  1         3.  The location and a brief description of the

  2  accommodations and facilities, if any, that are located in

  3  this state.

  4         4.  The number of timeshare interests and timeshare

  5  periods to be offered.

  6         5.  The term of the timeshare plan.

  7         6.  A copy of the timeshare instrument relating to the

  8  management and operation of accommodations and facilities, if

  9  any, that are located in this state.

10         7.  A copy of the budget required by s. 721.07(5)(u) or

11  s. 721.55(4)(h)5., as applicable.

12         8.  A copy of the management agreement and any other

13  contracts regarding management or operation of the

14  accommodations and facilities, if any, that are located in

15  this state, and which have terms in excess of 1 year.

16         9.  A copy of the provision of the purchase contract to

17  be utilized in offering the timeshare plan containing so long

18  as the seller files the information required by s. 721.07 or

19  s. 721.55 with, and obtains the approval of, the division.

20  This exemption becomes effective upon the filing of such

21  information with the division, if approval is obtained within

22  6 months after the initial filing at which time the exemption

23  will expire unless the division stipulates otherwise or

24  approves the filing.  The fees set forth in s. 721.07(4) apply

25  to all filings made hereunder. Each purchase contract utilized

26  in any offer of a timeshare plan that occurs outside the

27  jurisdictional limits of the United States shall contain the

28  following disclosure in conspicuous type immediately above the

29  space provided for the purchaser's signature:

30

31

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  1  The offering of this timeshare plan outside the jurisdictional

  2  limits of the United States of America is exempt from

  3  regulation under Florida law, and any such purchase is not

  4  protected by the State of Florida.  However, the management

  5  and operation of any accommodations or facilities located in

  6  Florida is subject to Florida law and may give rise to

  7  enforcement action regardless of the location of any offer.

  8

  9  Purchaser should note that ...(name of developer or other

10  person or entity)... at ...(address)... has a ...(describe

11  developer's or other person's or entity's actual interest)...

12  in the accommodations and facilities of the timeshare plan.

13

14         (c)  The exemption provided in paragraph (a) shall not

15  apply unless and until a claim of exemption from regulation

16  containing the information required by paragraph (a) and s.

17  721.51(3)(b) and accompanied by the fee required by s.

18  721.51(3)(b) is filed with and approved by the division. The

19  division may adopt rules designating those provisions of ss.

20  721.07 and 721.55 which need not be addressed in the filings

21  required in paragraph (b).

22         (c)(2)  All timeshare accommodations or facilities

23  which are located outside the state but offered for sale in

24  this state shall be governed by the following:

25         1.  The offering for sale in this state of timeshare

26  accommodations and facilities located outside the state is are

27  subject only to the provisions of ss. 721.01-721.12, 721.18,

28  721.20, 721.21, 721.26, and 721.28, and part II.

29         2.  The division shall not require a developer of All

30  timeshare accommodations or facilities located outside of this

31  state to make changes in any timeshare instrument to conform

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  1  to the provisions of s. 721.07 or s. 721.55. The division

  2  shall have the power to require disclosure of those provisions

  3  of the timeshare instrument that do not conform to s. 721.07

  4  or s. 721.55 as the director determines is necessary to

  5  fairly, meaningfully, and effectively disclose all aspects of

  6  the timeshare plan.

  7         3.  Except as provided in this subparagraph, the

  8  division shall have no authority to determine whether any

  9  person has complied with another state's laws or to disapprove

10  any filing out-of-state, timeshare instrument, or component

11  site document, based solely upon the lack or degree of

12  timeshare regulation in another state. The division may

13  require a developer to obtain and provide to the division

14  existing documentation relating to an out-of-state filing,

15  timeshare instrument, or component site document and prove

16  compliance of same with the laws of that state. In this

17  regard, the division may accept any evidence of the approval

18  or acceptance of any out-of-state filing, timeshare

19  instrument, or component site document by another state in

20  lieu of requiring a developer to file the out-of-state filing,

21  timeshare instrument, or component site document with the

22  division pursuant to this section, or the division may accept

23  an opinion letter from an attorney or law firm opining as to

24  the compliance of such out-of-state filing, timeshare

25  instrument, or component site document with the laws of

26  another state. The division may refuse to approve the

27  inclusion of any out-of-state filing, timeshare instrument, or

28  component site document as part of a public offering statement

29  based upon the inability of the developer to establish the

30  compliance of same with the laws of another state.

31

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  1         4.  The division is authorized to enter into an

  2  agreement with another state for the purpose of facilitating

  3  the processing of out-of-state timeshare instruments or other

  4  component site documents pursuant to this chapter and for the

  5  purpose of facilitating the referral of consumer complaints to

  6  the appropriate state.

  7         5.  Notwithstanding any other provision of this

  8  paragraph, the offer, in this state, of an additional interest

  9  to existing purchasers in the same timeshare plan or the same

10  component site of a multisite timeshare plan with

11  accommodations and facilities located outside of this state

12  shall not be which are located outside the state but offered

13  for sale in this state as part of a vacation club are also

14  subject to the provisions of this chapter if the offer

15  complies with the provisions of s. 721.11(4) part II.

16         (2)(3)  When a timeshare plan is subject to both the

17  provisions of this chapter and the provisions of chapter 718

18  or chapter 719, the plan shall meet the requirements of both

19  chapters unless exempted as provided in this section. The

20  division shall have the authority to adopt rules

21  differentiating between timeshare condominiums and

22  nontimeshare condominiums, and between timeshare cooperatives

23  and nontimeshare cooperatives, in the interpretation and

24  implementation of chapters 718 and 719, respectively. In the

25  event of a conflict between the provisions of this chapter and

26  the provisions of chapter 718 or chapter 719, the provisions

27  of this chapter shall prevail.

28         (3)(4)  A timeshare plan which is subject to the

29  provisions of chapter 718 or chapter 719, if fully in

30  compliance with the provisions of this chapter, is exempt from

31  the following:

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  1         (a)  Sections 718.202 and 719.202, relating to sales or

  2  reservation deposits prior to closing.

  3         (b)  Sections 718.502 and 719.502, relating to filing

  4  prior to sale or lease.

  5         (c)  Sections 718.503 and 719.503, relating to

  6  disclosure prior to sale.

  7         (d)  Sections 718.504 and 719.504, relating to

  8  prospectus or offering circular.

  9         (e)  Part VI of chapter 718 and part VI of chapter 719,

10  relating to conversion of existing improvements to the

11  condominium or cooperative form of ownership, respectively,

12  provided that a developer converting existing improvements to

13  a timeshare condominium or timeshare cooperative must comply

14  with ss. 718.606, 718.608, 718.61, and 718.62, or ss. 719.606,

15  719.608, 719.61, and 719.62, if applicable, and, if the

16  existing improvements received a certificate of occupancy more

17  than 18 months before such conversion, one of the following:

18         1.  The accommodations and facilities shall be

19  renovated and improved to a condition such that the remaining

20  useful life in years of the roof, plumbing, air-conditioning,

21  and any component of the structure which has a useful life

22  less than the useful life of the overall structure is equal to

23  the useful life of accommodations or facilities that would

24  exist if such accommodations and facilities were newly

25  constructed and not previously occupied.

26         2.  The developer shall fund reserve accounts for

27  capital expenditures and deferred maintenance for the roof,

28  plumbing, air-conditioning, and any component of the structure

29  the useful life of which is less than the useful life of the

30  overall structure. The reserve accounts shall be funded for

31  each component in an amount equal to the product of the

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  1  estimated current replacement cost of such component as of the

  2  date of such conversion (as disclosed and substantiated by a

  3  certificate under the seal of an architect or engineer

  4  authorized to practice in this state) multiplied by a

  5  fraction, the numerator of which shall be the remaining life

  6  of the component in years (as disclosed and substantiated by a

  7  certificate under the seal of an architect or engineer

  8  authorized to practice in this state) and the denominator of

  9  which shall be the total useful life of the component in years

10  (as disclosed and substantiated by a certificate under the

11  seal of an architect or engineer authorized to practice in

12  this state). Alternatively, the reserve accounts may be funded

13  for each component in an amount equal to the amount that,

14  except for the application of this subsection, would be

15  required to be maintained pursuant to s. 718.618(1) or s.

16  719.618(1). The developer shall fund the reserve accounts

17  contemplated in this subparagraph out of the proceeds of each

18  sale of a timeshare interest, on a pro rata basis, in an

19  amount not less than a percentage of the total amount to be

20  deposited in the reserve account equal to the percentage of

21  ownership allocable to the timeshare interest sold. When an

22  owners' association makes an expenditure of reserve account

23  funds before the developer has initially sold all timeshare

24  interests, the developer shall make a deposit in the reserve

25  account if the reserve account is insufficient to pay the

26  expenditure. Such deposit shall be at least equal to that

27  portion of the expenditure which would be charged against the

28  reserve account deposit that would have been made for any such

29  timeshare interest had the timeshare interest been initially

30  sold. When a developer deposits amounts in excess of the

31

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  1  minimum reserve account funding, later deposits may be reduced

  2  to the extent of the excess funding.

  3         3.  The developer shall provide each purchaser with a

  4  warranty of fitness and merchantability pursuant to s.

  5  718.618(6) or s. 719.618(6).

  6         (4)(5)  The treatment of timeshare estates for ad

  7  valorem tax purposes and special assessments shall be as

  8  prescribed in chapters 192 through 200.

  9         (5)(6)  Membership camping plans shall be subject to

10  the provisions of ss. 509.501-509.512 and not to the

11  provisions of this chapter.

12         (6)(7)  Unless otherwise provided herein, this chapter

13  shall not apply to the offering of any timeshare plan under

14  which the prospective purchaser's total financial obligation

15  will be $3,000 $1,500 or less during the entire term of the

16  plan.

17         (7)(8)  Every escrow agent or trustee required under

18  this chapter, or under chapter 192 as it relates to timeshare

19  plans, must be independent.

20         (8)(9)  With respect to any accommodation or facility

21  of a timeshare plan which is situated upon personal property,

22  the division shall have the authority to adopt rules

23  interpreting and implementing the provisions of this chapter

24  as they apply to such accommodation or facility, or as they

25  apply to any other laws of this state, of the several states,

26  or of the United States with respect to such accommodation or

27  facility.

28         (9)  Notwithstanding the provisions of any other law,

29  s. 687.03 shall govern with respect to the rate of interest

30  permitted for any loan, advance of money, line of credit,

31

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  1  forbearance to enforce the collection of any sum of money, or

  2  other obligation in connection with a timeshare license.

  3         (10)  A developer or seller may not offer any number of

  4  timeshare interests that would cause the total number of

  5  timeshare interests offered to exceed a one-to-one purchaser

  6  to accommodation ratio.

  7         Section 9.  Section 721.05, Florida Statutes, is

  8  amended to read:

  9         721.05  Definitions.--As used in this chapter, the

10  term:

11         (1)  "Accommodation" means any apartment, condominium

12  or cooperative unit, cabin, lodge, hotel or motel room,

13  campground, or other private or commercial structure which is

14  situated on real or personal property and designed for

15  occupancy or use by one or more individuals.  The term does

16  not include an incidental benefit as defined in this section.

17         (2)  "Agreement for deed" means any written contract

18  utilized in the sale of timeshare estates which provides that

19  legal title will not be conveyed to the purchaser until the

20  contract price has been paid in full and the terms of payment

21  of which extend for a period in excess of 180 days after

22  either the date of execution of the contract or completion of

23  construction, whichever occurs later.

24         (3)  "Assessment" means the share of funds required for

25  the payment of common expenses which is assessed from time to

26  time against each purchaser by the managing entity.

27         (4)  "Closing" means:

28         (a)  For any plan selling timeshare estates, conveyance

29  of the legal or beneficial title to a timeshare estate period

30  as evidenced by the delivery of a deed for conveyance of legal

31  title, or other instrument for conveyance of beneficial title,

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  1  to the purchaser or to the clerk of the court for recording or

  2  conveyance of the equitable title to a timeshare estate period

  3  as evidenced by the irretrievable delivery of an agreement for

  4  deed to the clerk of the court for recording.

  5         (b)  For any plan selling timeshare licenses, the final

  6  execution and delivery by all parties of the last document

  7  necessary for vesting in the purchaser the full rights

  8  available under the plan.

  9         (5)  "Common expenses" means:

10         (a)  Those expenses properly incurred for the

11  maintenance, operation, and repair of the accommodations or

12  facilities, or both, constituting the timeshare plan.

13         (b)  Any other expenses designated as common expenses

14  in a timeshare instrument.

15         (c)  Any past due and uncollected ad valorem taxes

16  assessed against a timeshare development pursuant to s.

17  192.037.

18         (6)  "Completion of construction" means:

19         (a)1.  That a certificate of occupancy has been issued

20  for the entire building in which the timeshare unit being sold

21  is located, or for the improvement, or that the equivalent

22  authorization has been issued, by the governmental body having

23  jurisdiction; or

24         2.  In a jurisdiction in which no certificate of

25  occupancy or equivalent authorization is issued, that the

26  construction, finishing, and equipping of the building or

27  improvements according to the plans and specifications have

28  been substantially completed; and

29         (b)  That all accommodations and facilities of the

30  timeshare plan are available for use in a manner identical in

31  all material respects to the manner portrayed by the

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  1  promotional material, advertising, and registered public

  2  offering statements filed with the division.

  3         (c)  Notwithstanding the provisions of paragraph (b), a

  4  seller of a timeshare plan that is not a multisite timeshare

  5  plan may portray possible accommodations or facilities to

  6  prospective purchasers in advertising material or a public

  7  offering statement filed with the division without such

  8  accommodations or facilities being available for use by

  9  purchasers so long as the advertising material or public

10  offering statement complies with the provisions of s.

11  721.11(4).

12         (d)  Notwithstanding the provisions of paragraph (b), a

13  developer of a timeshare plan that is not a multisite

14  timeshare plan may portray the general geographic location of

15  possible accommodations or facilities to prospective

16  purchasers by disseminating oral or written statements

17  regarding same to broadcast or print media with no obligation

18  on the developer's part to actually construct such

19  accommodations or facilities or to file such accommodations

20  and facilities with the division, but only so long as such

21  oral or written statements are not considered advertising

22  material pursuant to s. 721.11(3)(e).  For purposes of this

23  paragraph, the term "general geographic location" means the

24  boundaries of a state or country.

25         (e)  Notwithstanding the provisions of paragraph (b), a

26  seller of a multisite timeshare plan may portray possible

27  component sites to purchasers pursuant to s. 721.553.

28         (7)  "Conspicuous type" means:

29         (a)  Type in upper and lower case letters two point

30  sizes larger than the largest nonconspicuous type, exclusive

31

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  1  of headings, on the page on which it appears but in at least

  2  10-point type; or

  3         (b)  Where the use of 10-point type would be

  4  impractical or impossible with respect to a particular piece

  5  of written advertising material, then the division may approve

  6  the use of a different style of type or print may be used, so

  7  long as the print remains conspicuous under the circumstances.

  8

  9  Where conspicuous type is required, it must be separated on

10  all sides from other type and print.  Conspicuous type may be

11  utilized in contracts for purchase or public offering

12  statements only where required by law or as authorized by the

13  division.

14         (8)  "Contract" means any agreement conferring the

15  rights and obligations of a timeshare plan on the purchaser.

16         (9)  "Developer" includes:

17         (a)  A "creating developer," which means any person who

18  creates the timeshare plan;

19         (b)  A "successor developer," which means any person

20  who succeeds to the interest of the persons in this subsection

21  by sale, lease, assignment, mortgage, or other transfer, but

22  the term includes only those persons who offer timeshare

23  interests periods in the ordinary course of business; and

24         (c)  A "concurrent developer," which means any person

25  acting concurrently with the persons in this subsection with

26  the purpose of offering timeshare interests periods in the

27  ordinary course of business.

28         (d)  The term "developer" does not include:

29         1.  An owner of a timeshare interest period who has

30  acquired the timeshare interest period for his or her own use

31  and occupancy and who later offers it for resale; provided

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  1  that a rebuttable presumption shall exist that an owner who

  2  has acquired more than seven timeshare interests periods did

  3  not acquire them for his or her own use and occupancy;

  4         2.  A managing entity, that is not otherwise a

  5  developer, that offers, or engages a third party to offer on

  6  its behalf, timeshare interests of a timeshare plan in its own

  7  right and that offers timeshare periods for its own account in

  8  a timeshare plan which it manages, provided that such offer

  9  complies to existing purchasers of that timeshare plan, or a

10  managing entity which complies with the provisions of s.

11  721.065; or

12         3.  A person who owns or is conveyed, assigned, or

13  transferred more than seven timeshare interests periods from a

14  developer in a single voluntary or involuntary transaction and

15  who subsequently conveys, assigns, or transfers all acquired

16  of the timeshare interests periods received from the developer

17  to a single purchaser in a single transaction, which

18  transaction may occur in stages; or

19         4.  A person who has acquired or has the right to

20  acquire more than seven timeshare interests from a developer

21  or other interestholder in connection with a loan,

22  securitization, conduit, or similar financing arrangement

23  transaction and who subsequently arranges for all or a portion

24  of the timeshare interests to be offered by one or more

25  developers in the ordinary course of business on their own

26  behalves or on behalf of such person.

27         (e)  A successor or concurrent developer shall be

28  exempt from any liability inuring to a predecessor or

29  concurrent developer of the same timeshare plan, except as

30  provided in s. 721.15(7), provided that this exemption shall

31  not apply to any of the successor or concurrent developer's

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  1  responsibilities, duties, or liabilities with respect to the

  2  timeshare plan that accrue after the date the successor or

  3  concurrent developer became a successor or concurrent

  4  developer, and provided that such transfer does not constitute

  5  a fraudulent transfer. In addition to other provisions of law,

  6  a transfer by a predecessor developer to a successor or

  7  concurrent developer shall be deemed fraudulent if the

  8  predecessor developer made the transfer:

  9         1.  With actual intent to hinder, delay, or defraud any

10  purchaser or the division; or

11         2.  To a person that would constitute an insider under

12  s. 726.102(7).

13

14  The provisions of this paragraph shall not be construed to

15  relieve any successor or concurrent developer from the

16  obligation to comply with the provisions of any applicable

17  timeshare instrument.

18         (10)  "Division" means the Division of Florida Land

19  Sales, Condominiums, and Mobile Homes of the Department of

20  Business and Professional Regulation.

21         (11)  "Enrolled" means paid membership in an exchange

22  program or membership in an exchange program evidenced by

23  written acceptance or confirmation of membership.

24         (12)  "Escrow account" means an account established

25  solely for the purposes set forth in this chapter with a

26  financial institution located within this state.

27         (13)  "Escrow agent" includes only:

28         (a)  A savings and loan association, bank, trust

29  company, or other financial institution, any of which must be

30  located in this state and any of which must have a net worth

31  in excess of $5 million;

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  1         (b)  An attorney who is a member of The Florida Bar or

  2  his or her law firm, so long as the attorney or firm has posed

  3  a fidelity bond issued by a company authorized and licensed to

  4  do business in this state as surety in the amount of $50,000;

  5         (c)  A real estate broker who is licensed pursuant to

  6  chapter 475 or his or her brokerage firm, so long as the

  7  broker or firm has posted a fidelity bond issued by a company

  8  authorized and licensed to do business in this state as surety

  9  in the amount of $50,000; or

10         (d)  A title insurance agent that is licensed pursuant

11  to s. 626.8417, or a title insurance agency that is licensed

12  pursuant to s. 626.8418, or a title insurer authorized to

13  transact business in this state pursuant to s. 624.401 so long

14  as the agent or agency has posted a fidelity bond issued by a

15  company authorized and licensed to do business in this state

16  as surety in the amount of $50,000.

17

18  If an escrow agent is required to post a $50,000 fidelity bond

19  pursuant to this section, the escrow agent shall only be

20  required to post and maintain one such bond, regardless of the

21  number of escrow accounts maintained by that agent for any

22  number of developers, managing entities, or timeshare plans at

23  any given time.

24         (14)  "Exchange company" means any person owning or

25  operating, or owning and operating, an exchange program.

26         (15)  "Exchange program" means any method, arrangement,

27  or procedure for the voluntary exchange of the right to use

28  and occupy accommodations and facilities among purchasers. The

29  term does not include the assignment of the right to use and

30  occupy accommodations and facilities to purchasers pursuant to

31  a particular multisite timeshare plan's reservation system.

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  1  Any method, arrangement, or procedure that otherwise meets

  2  this definition, wherein the purchaser's total contractual

  3  financial obligation exceeds $3,000 per any individual,

  4  recurring timeshare period, shall be regulated as a multisite

  5  timeshare plan in accordance with part II.

  6         (16)  "Facility" means any amenity, including any

  7  structure, furnishing, fixture, equipment, service,

  8  improvement, or real or personal property, improved or

  9  unimproved, other than the accommodation of the timeshare

10  plan, which is made available to the purchasers of a timeshare

11  plan. The term does not include an incidental benefit as

12  defined in this section.

13         (17)  "Incidental benefit" means an accommodation,

14  product, service, discount, or other benefit which is offered

15  to a prospective purchaser of a timeshare plan or to a

16  purchaser of a timeshare plan prior to the expiration of his

17  or her initial 10-day voidability period pursuant to s.

18  721.10; which is not an exchange program as defined in

19  subsection (15); and which complies with the provisions of s.

20  721.075.  The term shall not include an offer of the use of

21  the accommodations and facilities of the timeshare plan on a

22  free or discounted one-time basis.

23         (18)  "Independent," for purposes of determining

24  eligibility of escrow agents and trustees pursuant to s.

25  721.03(7)(8), means that:

26         (a)  The escrow agent or trustee is not a relative, as

27  described in s. 112.3135(1)(d), or an employee of the

28  developer, seller, or managing entity, or of any officer,

29  director, affiliate, or subsidiary thereof.

30         (b)  There is no financial relationship, other than the

31  payment of fiduciary fees or as otherwise provided in this

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  1  subsection, between the escrow agent or trustee and the

  2  developer, seller, or managing entity, or any officer,

  3  director, affiliate, or subsidiary thereof.

  4         (c)  Compensation paid by the developer to an escrow

  5  agent or trustee for services rendered shall not be paid from

  6  funds in the escrow or trust account unless and until the

  7  developer is otherwise entitled to receive the disbursement of

  8  such funds from the escrow or trust account pursuant to this

  9  chapter.

10         (d)  A person shall not be disqualified to serve as an

11  escrow agent or a trustee solely because of the following:

12         1.  A nonemployee, attorney-client relationship exists

13  between the developer and the escrow agent or trustee;

14         2.  The escrow agent or trustee provides brokerage

15  services as defined by chapter 475 for the developer;

16         3.  The escrow agent or trustee provides the developer

17  with routine banking services which do not include

18  construction or receivables financing or any other lending

19  activities; or

20         4.  The escrow agent or trustee performs closings for

21  the developer or seller or issues owner's or lender's title

22  insurance commitments or policies in connection with such

23  closings.

24         (19)  "Interestholder" means a developer, an owner of

25  the underlying fee, a mortgagee, judgment creditor, or other

26  lienor, or any other person having an interest in or lien or

27  encumbrance against the accommodations or facilities of the

28  timeshare plan.

29         (20)  "Managing entity" means the person who operates

30  or maintains the timeshare plan pursuant to s. 721.13(1).

31

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  1         (21)  "Memorandum of agreement" means a written

  2  document, in recordable form, which includes the names of the

  3  purchaser and seller and the purchasers, a legal description

  4  of the timeshare property and all timeshare interests to be

  5  included in such document period, and a description of the

  6  type of timeshare license sold by the seller.

  7         (22)  "Offer to sell," "offer for sale," "offered for

  8  sale," or "offer" means the solicitation, advertisement, or

  9  inducement, or any other method or attempt, to encourage any

10  person to acquire the opportunity to participate in a

11  timeshare plan.

12         (23)  "One-to-one purchaser to accommodation ratio"

13  means the ratio of the number of purchasers eligible to use

14  the accommodations of a timeshare plan on a given day to the

15  number of accommodations available for use within the plan on

16  that day, such that the total number of purchasers eligible to

17  use the accommodations of the timeshare plan during a given

18  calendar year never exceeds the total number of accommodations

19  available for use in the timeshare plan during that year.  For

20  purposes of calculation under this subsection, each purchaser

21  must be counted at least once, and no individual timeshare

22  unit may be counted more than 365 times per calendar year (or

23  more than 366 times per leap year).  A purchaser who is

24  delinquent in the payment of timeshare plan assessments shall

25  continue to be considered eligible to use the accommodations

26  of the timeshare plan for purposes of this subsection

27  notwithstanding any application of s. 721.13(6).

28         (24)  "Owner of the underlying fee" means any person

29  having an interest in the real property underlying the

30  accommodations or facilities of the timeshare plan at or

31  subsequent to the time of creation of the timeshare plan or

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  1  any person who purchases 15 or more timeshare periods for

  2  resale in the ordinary course of business.

  3         (25)  "Owners' association" means the association made

  4  up of all purchasers of a timeshare plan who have purchased

  5  timeshare estates.

  6         (26)  "Public offering statement" means the written

  7  materials describing a single-site timeshare plan or a

  8  multisite timeshare plan, including a text and any exhibits

  9  attached thereto as required by ss. 721.07, 721.55, and

10  721.551. The term "public offering statement" shall refer to

11  both a registered public offering statement and a purchaser

12  public offering statement.

13         (27)(26)  "Purchaser" means any person, other than a

14  developer, who by means of a voluntary transfer acquires a

15  legal or equitable interest in a timeshare plan other than as

16  security for an obligation.

17         (28)  "Purchaser public offering statement" means that

18  portion of the registered public offering statement which must

19  be delivered to purchasers pursuant to s. 721.07(6) or s.

20  721.551.

21         (29)  "Registered public offering statement" means a

22  public offering statement which has been filed with the

23  division pursuant to s. 721.07(5) or s. 721.55.

24         (30)(27)  "Regulated short-term product" means a

25  contractual right, offered by the seller, to use

26  accommodations of a timeshare plan or other accommodations,

27  provided that:

28         (a)  The agreement to purchase the short-term right to

29  use is executed in this state on the same day that the

30  prospective purchaser receives an offer to acquire an interest

31

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  1  in a timeshare plan and does not execute a purchase contract,

  2  after attending a sales presentation; and

  3         (b)  The acquisition of the right to use includes an

  4  agreement that all or a portion of the consideration paid by

  5  the prospective purchaser for the right to use will be applied

  6  to or credited against the price of a future purchase of a

  7  timeshare interest, or that the cost of a future purchase of a

  8  timeshare interest will be fixed or locked in at a specified

  9  price.

10         (31)(28)  "Seller" means any developer or any other

11  person, or any agent or employee thereof, who offers timeshare

12  interests periods in the ordinary course of business.  The

13  term "seller" does not include:

14         (a)  An owner of a timeshare interest period who has

15  acquired the timeshare interest period for his or her own use

16  and occupancy and who later offers it for resale; provided

17  that a rebuttable presumption shall exist that an owner who

18  has acquired more than seven timeshare interests periods did

19  not acquire them for his or her own use and occupancy;

20         (b)  A managing entity, that is not otherwise a seller,

21  that offers, or engages a third party to offer on its behalf,

22  timeshare interests of a timeshare plan in its own right and

23  that offers timeshare periods for its own account in a

24  timeshare plan which it manages, provided that such offer

25  complies to existing purchasers of that timeshare plan, or a

26  managing entity which complies with the provisions of s.

27  721.065; or

28         (c)  A person who owns or is conveyed, assigned, or

29  transferred more than seven timeshare interests periods from a

30  developer in a single voluntary or involuntary transaction and

31  who subsequently conveys, assigns, or transfers all acquired

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  1  of the timeshare interests periods received from the developer

  2  to a single purchaser in a single transaction, which

  3  transaction may occur in stages; or

  4         (d)  A person who has acquired or has the right to

  5  acquire more than seven timeshare interests from a developer

  6  or other interestholder in connection with a loan,

  7  securitization, conduit, or similar financing arrangement and

  8  who subsequently arranges for all or a portion of the

  9  timeshare interests to be offered by one or more developers in

10  the ordinary course of business on their own behalves or on

11  behalf of such person.

12         (32)(29)  "Timeshare estate" means a right to occupy a

13  timeshare unit, coupled with a freehold estate or an estate

14  for years with a future interest in a timeshare property or a

15  specified portion thereof.  The term shall also mean an

16  interest in a condominium unit pursuant to s. 718.103, an

17  interest in a cooperative unit pursuant to s. 719.103, or an

18  interest in a trust that complies in all respects with the

19  provisions of s. 721.08(2)(c)3.

20         (33)(30)  "Timeshare instrument" means one or more

21  documents, by whatever name denominated, creating or governing

22  the operation of a timeshare plan.

23         (34)  "Timeshare interest" means a timeshare estate or

24  timeshare license.

25         (35)(31)  "Timeshare license" means a right to occupy a

26  timeshare unit, which right is neither coupled with a freehold

27  interest, nor coupled with an estate for years with a future

28  interest, in a timeshare property.

29         (36)(32)  "Timeshare period" means the period or

30  periods of time when a purchaser of a timeshare interest plan

31

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  1  is afforded the opportunity to use the accommodations or

  2  facilities, or both, of a timeshare plan.

  3         (37)(33)  "Timeshare plan" means any arrangement, plan,

  4  scheme, or similar device, other than an exchange program,

  5  whether by membership, agreement, tenancy in common, sale,

  6  lease, deed, rental agreement, license, or right-to-use

  7  agreement or by any other means, whereby a purchaser, for

  8  consideration, receives ownership rights in or a right to use

  9  accommodations, and facilities, if any, for a period of time

10  less than a full year during any given year, but not

11  necessarily for consecutive years.

12         (38)(34)  "Timeshare property" means one or more

13  timeshare units subject to the same timeshare instrument,

14  together with any other property or rights to property

15  appurtenant to those timeshare units. Notwithstanding anything

16  to the contrary contained in chapter 718 or chapter 719, the

17  timeshare instrument for a timeshare condominium or

18  cooperative may designate personal property, contractual

19  rights, affiliation agreements of component sites of vacation

20  clubs, exchange companies, or reservation systems, or any

21  other agreements or personal property, as common elements or

22  limited common elements of the timeshare condominium or

23  cooperative.

24         (39)(35)  "Timeshare unit" means an accommodation of a

25  timeshare plan which is divided into timeshare periods. Any

26  timeshare unit in which a door or doors connecting two or more

27  separate rooms are capable of being locked to create two or

28  more private dwellings shall only constitute one timeshare

29  unit for purposes of this chapter, unless the timeshare

30  instrument provides that timeshare interests may be separately

31  conveyed in such locked-off portions.

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  1         (40)(36)  "Vacation ownership plan" means any timeshare

  2  plan consisting exclusively of timeshare estates.

  3         (41)(37)  "Vacation plan" or "vacation membership plan"

  4  means any timeshare plan consisting exclusively of timeshare

  5  licenses or consisting of a combination of timeshare licenses

  6  and timeshare estates.

  7         Section 10.  Section 721.06, Florida Statutes, is

  8  amended to read:

  9         721.06  Contracts for purchase of timeshare interests

10  periods.--

11         (1)  Each seller shall utilize, and furnish each

12  purchaser a fully completed and executed copy of, a contract

13  pertaining to the sale, which contract shall include the

14  following information:

15         (a)  The actual date the contract is executed by each

16  party.

17         (b)  The names and addresses of the developer, any

18  owner of the underlying fee, and the timeshare plan.

19         (c)  The total financial obligation of the purchaser,

20  including the initial purchase price and any additional

21  charges to which the purchaser may be subject in connection

22  with the purchase of the timeshare interest, such as

23  financing, or which will be collected from the purchaser on or

24  before closing, such as the current year's annual assessment

25  for common expenses.

26         (d)  Any annually recurring use charge and the next

27  year's estimated annual assessment for common expenses and for

28  ad valorem taxes or, if an estimate for next year's assessment

29  is unavailable, the current year's actual annual assessment

30  for common expenses and for ad valorem taxes. reservation,

31  maintenance, management, and recreation charges.

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  1         (e)(d)  The estimated date of completion of

  2  construction of each accommodation or facility promised to be

  3  completed which is not completed at the time the contract is

  4  executed and the estimated date of closing.

  5         (f)(e)  A brief description of the nature and duration

  6  of the timeshare interest period being sold, including whether

  7  any interest in real property is being conveyed and the

  8  specific number of years constituting the term of the

  9  timeshare plan.

10         (g)(f)  Immediately prior to the space reserved in the

11  contract for the signature of the purchaser, in conspicuous

12  type, substantially the following statements:

13

14         You may cancel this contract without any penalty or

15  obligation within 10 calendar days after the date you sign

16  this contract, and within 10 calendar days after the date you

17  receive the approved public offering statement, whichever is

18  later.

19         If you decide to cancel this contract, you must notify

20  the seller developer in writing of your intent to cancel.

21  Your notice of cancellation shall be effective upon the date

22  sent and shall be sent to ...(Name of Seller Developer)... at

23  ...(Address of Seller Developer)....  Any attempt to obtain a

24  waiver of your cancellation right is void and of no effect

25  unlawful.  While you may execute all closing documents in

26  advance, the closing, as evidenced by delivery of the deed or

27  other document, before expiration of your 10-day cancellation

28  period, is prohibited.

29

30         (h)(g)  If a timeshare estate license is being

31  conveyed, the following statement in conspicuous type:

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  1

  2         You may also cancel this contract at any time after the

  3  accommodations or facilities are no longer available as

  4  provided in this contract and the public offering statement.

  5

  6         (h)  If a timeshare estate is being conveyed, the

  7  following statement in conspicuous type:

  8

  9         For the purpose of ad valorem assessment, taxation and

10  special assessments, the managing entity will be considered

11  the taxpayer as your agent pursuant to section 192.037,

12  Florida Statutes.

13

14         (i)  A statement that, in the event the purchaser

15  cancels the contract during a 10-day cancellation period, the

16  developer will refund to the purchaser the total amount of all

17  payments made by the purchaser under the contract, reduced by

18  the proportion of any contract benefits the purchaser has

19  actually received under the contract prior to the effective

20  date of the cancellation.  The statement shall further provide

21  that the refund will be made within 20 days after receipt of

22  notice of cancellation or within 5 days after receipt of funds

23  from the purchaser's cleared check, whichever is later. A

24  seller and a purchaser shall agree in writing on a specific

25  value for each contract benefit received by the purchaser for

26  purposes of this paragraph. The term "contract benefit" shall

27  not include purchaser public offering statements or other

28  documentation or materials that must be furnished to a

29  purchaser pursuant to statute or rule.

30         (j)  If the timeshare interest period is being sold

31  pursuant to an agreement for deed, a statement that the

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  1  signing of the agreement for deed does not entitle the

  2  purchaser to receive a deed until all payments under the

  3  agreement have been made.

  4         (k)  Unless the developer is at the time of offering

  5  the plan the owner in fee simple absolute of the

  6  accommodations and facilities of the timeshare plan, free and

  7  clear of all liens and encumbrances, a statement that the

  8  developer is not the sole owner of the underlying fee of such

  9  the accommodations or facilities without liens or

10  encumbrances, which statement shall include:

11         1.  The names and addresses of all persons or entities

12  having an ownership interest or other interest in the

13  accommodations or facilities; and

14         2.  The actual interest of the developer in the

15  accommodations or facilities. As an alternative to including

16  the statement in the purchase contract, a seller may include a

17  reference in the purchase contract to the location in the

18  purchaser public offering statement text of such information.

19         (l)  If the contract is for the sale or transfer of a

20  timeshare period in which the accommodations or facilities are

21  subject to a lease, the following statement within the text in

22  conspicuous type: This timeshare period is subject to a lease

23  (or sublease).  A copy of the executed lease shall be attached

24  as an exhibit.

25         (l)(m)  If the purchaser will receive an interest in a

26  multisite timeshare plan pursuant to part II, a the following

27  statement shall be provided in conspicuous type in

28  substantially the following form:

29

30         The developer is required to provide the managing

31  entity of the multisite timeshare plan (or multisite vacation

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  1  ownership plan or multisite vacation plan or vacation club)

  2  with a copy of the approved public offering statement text and

  3  exhibits filed with the division and any approved amendments

  4  thereto, and any other component site documents as described

  5  in section 721.07 or section 721.55, Florida Statutes, that

  6  are not required to be not filed with the division, to be

  7  maintained by the managing entity for inspection as part of

  8  the books and records of the plan.

  9

10         (m)(n)  The following statement in conspicuous type:

11

12         Any resale of this timeshare interest must be

13  accompanied by certain disclosures in accordance with section

14  721.065, Florida Statutes.

15

16         (n)  A description of any rights reserved by the

17  developer to alter or modify the offering prior to closing.

18         (2)  An agreement for deed shall be recorded by the

19  developer within 30 days after the day it is executed by the

20  purchaser.  The developer shall pay all recording costs

21  associated therewith.

22         (3)  The escrow agent shall provide the developer with

23  a receipt for all purchaser funds or other property received

24  by the escrow agent from a seller.

25         (4)  A developer may not offer any number of timeshare

26  estates or timeshare licenses that would cause the total

27  number of estates or licenses offered to exceed a one-to-one

28  purchaser to accommodation ratio.

29         Section 11.  Section 721.065, Florida Statutes, is

30  amended to read:

31         721.065  Resale purchase agreements.--

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  1         (1)  An owner who acquires a timeshare interest period

  2  for her or his own use and occupancy and later offers it for

  3  resale, or any agent of such person, must utilize a resale

  4  purchase agreement which complies with the provisions of

  5  subsection (2) to effectuate any resale of the timeshare

  6  interest period.  A managing entity, not otherwise a

  7  developer, that sells, or engages a third party to sell on its

  8  behalf, 50 or fewer timeshare interests which, for its own

  9  account, offers fewer than 20 timeshare periods in the

10  timeshare plan which it manages in a given calendar year to

11  persons who are not existing purchasers of that timeshare plan

12  may also use a resale purchase agreement which complies with

13  subsection (2) in lieu of complying with the provisions of ss.

14  721.06-721.12 and 721.20. A managing entity, not otherwise a

15  developer, that sells, or engages a third party to sell on its

16  behalf, timeshare interests in the timeshare plan which it

17  manages to persons who are existing purchasers of that

18  timeshare plan may also use a resale purchase agreement in

19  compliance with subsection (2) in lieu of complying with the

20  provisions of ss. 721.06-721.12 and 721.20. For purposes of

21  this subsection, a rebuttable presumption shall exist that an

22  owner who has acquired more than seven timeshare interests

23  periods did not acquire them for her or his own use and

24  occupancy.

25         (2)  Any resale purchase agreement utilized by a person

26  described in subsection (1) must contain all of the following:

27         (a)  The name and address of the timeshare plan and of

28  the managing entity of the timeshare plan.

29         (b)  The following statements in conspicuous type

30  located immediately prior to the disclosure required by

31  paragraph (c):

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  1

  2  The current year's assessment for common expenses allocable to

  3  the timeshare interest period you are purchasing is $.....

  4  This assessment, which may be increased from time to time by

  5  the managing entity of the timeshare plan, is payable in full

  6  each year on or before ......... This assessment

  7  (includes/does not include) yearly ad valorem real estate

  8  taxes, which (are/are not) billed and collected separately.

  9  (If ad valorem real property taxes are not included in the

10  current year's assessment for common expenses, the following

11  statement must be included:  The most recent annual assessment

12  for ad valorem real estate taxes for the timeshare interest

13  period you are purchasing is $.....) (If there are any

14  delinquent assessments for common expenses or ad valorem taxes

15  outstanding with respect to the timeshare interest period in

16  question, the following statement must be included:  A

17  delinquency in the amount of $.... for unpaid common expenses

18  or ad valorem taxes currently exists with respect to the

19  timeshare interest period you are purchasing, together with a

20  per diem charge of $.... for interest and late charges.) For

21  the purpose of ad valorem assessment, taxation, and special

22  assessments, the managing entity will be considered the

23  taxpayer as your agent pursuant to section 192.037, Florida

24  Statutes.  Each owner is personally liable for the payment of

25  her or his assessments for common expenses, and failure to

26  timely pay these assessments may result in restriction or loss

27  of your use and/or ownership rights.

28

29  There are many important documents relating to the timeshare

30  plan which you should review prior to purchasing a timeshare

31  interest period, including the declaration of condominium or

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  1  covenants and restrictions; the association articles and

  2  bylaws; the current year's operating and reserve budgets; and

  3  any rules and regulations affecting the use of timeshare plan

  4  accommodations and facilities.

  5

  6         (c)  The following statement in conspicuous type

  7  located immediately prior to the space in the contract

  8  reserved for the signature of the purchaser:

  9

10  You may cancel this contract without any penalty or obligation

11  within 10 days after the date you sign this contract. If you

12  decide to cancel this contract, you must notify the seller in

13  writing of your intent to cancel. Your notice of cancellation

14  shall be effective upon the date sent and shall be sent to the

15  seller at ...(address)....  Any attempt to obtain a waiver of

16  your cancellation right is void and of no effect.  While you

17  may execute all closing documents in advance, the closing, as

18  evidenced by delivery of the deed or other document, before

19  expiration of your 10-day cancellation period, is prohibited.

20

21         (d)  The year in which the purchaser will first be

22  entitled to occupancy of a timeshare period associated with

23  the timeshare interest that is the subject of the resale

24  purchase agreement.

25         (3)  If a resale purchase agreement utilized by a

26  person described in subsection (1) does not comply with the

27  provisions of subsection (2), the contract shall be voidable

28  at the option of the purchaser for a period of 1 year after

29  the date of closing.

30         Section 12.  Section 721.07, Florida Statutes, is

31  amended to read:

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  1         721.07  Public offering statement.--Prior to offering

  2  any timeshare plan, the developer must submit file a

  3  registered public offering statement to with the division for

  4  approval as prescribed by s. 721.03, s. 721.55, or this

  5  section.  Until the division approves such filing, any

  6  contract regarding the sale of that the timeshare plan which

  7  is the subject of the public offering statement is voidable by

  8  the purchaser.

  9         (1)  The division shall, upon receiving a registered

10  public offering statement from a developer, mail to the

11  developer an acknowledgment of receipt.  The failure of the

12  division to send such acknowledgment will not, however,

13  relieve the developer from the duty of complying with this

14  section.

15         (2)(a)  Within 45 days after receipt of a registered

16  public offering statement which is subject only to this part

17  and is submitted in proper form as prescribed by rule, or

18  within 120 days after receipt of a registered public offering

19  statement which is subject to part II and is submitted in

20  proper form as prescribed by rule, the division shall

21  determine whether the proposed registered public offering

22  statement is adequate to meet the requirements of this section

23  and shall notify the developer by mail that the division has

24  either approved the statement or found specified deficiencies

25  in the statement.  If the division fails to approve the

26  statement or specify deficiencies in the statement within the

27  period specified in this paragraph, the filing will be deemed

28  approved.

29         (b)  If the developer fails to respond to any cited

30  deficiencies within 20 days after receipt of the division's

31  deficiency notice, the division may reject the filing.

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  1  Subsequent to such rejection, a new filing fee pursuant to

  2  subsection (4) and a new division initial review period

  3  pursuant to paragraph (a) shall apply to any refiling or

  4  further review of the rejected filing.

  5         (c)  Within 20 days after receipt of the developer's

  6  timely and complete response to any deficiency notice, the

  7  division shall notify the developer by mail that the division

  8  has either approved the filing, found additional specified

  9  deficiencies in it, or determined that any previously

10  specified deficiency has not been corrected.  If the division

11  fails to approve or specify additional deficiencies within 20

12  days after receipt of the developer's timely and complete

13  response, the filing will be deemed approved.

14         (d)  A developer shall have the authority to deliver to

15  purchasers any purchaser public offering statement that is not

16  yet approved by the division, provided that the following

17  shall apply:

18         1.  At the time the developer delivers an unapproved

19  purchaser public offering statement to a purchaser pursuant to

20  this paragraph, the developer shall deliver a fully completed

21  and executed copy of the purchase contract required by s.

22  721.06 that contains the following statement in conspicuous

23  type in substantially the following form which shall replace

24  the statements required by s. 721.06(1)(g):

25

26  The developer is delivering to you a public offering statement

27  that has been filed with but not yet approved by the Division

28  of Florida Land Sales, Condominiums, and Mobile Homes. Any

29  revisions to the unapproved public offering statement you have

30  received must be delivered to you, but only if the revisions

31  materially alter or modify the offering in a manner adverse to

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  1  you. After the division approves the public offering

  2  statement, you will receive notice of the approval from the

  3  developer and the required revisions, if any.

  4

  5  Your statutory right to cancel this transaction without any

  6  penalty or obligation expires 10 calendar days after the date

  7  you signed your purchase contract or 10 calendar days after

  8  you receive revisions required to be delivered to you, if any,

  9  whichever is later.

10

11         2.  After receipt of approval from the division and

12  prior to closing, if any revisions made to the documents

13  contained in the purchaser public offering statement

14  materially alter or modify the offering in a manner adverse to

15  a purchaser, the developer shall send the purchaser such

16  revisions together with a notice containing a statement in

17  conspicuous type in substantially the following form:

18

19  The unapproved public offering statement previously delivered

20  to you, together with the enclosed revisions, has been

21  approved by the Division of Florida Land Sales, Condominiums,

22  and Mobile Homes. Accordingly, your cancellation right expires

23  10 calendar days after you sign your purchase contract or 10

24  calendar days after you receive these revisions, whichever is

25  later. If you have any questions regarding your cancellation

26  rights, you may contact the division at [insert division's

27  current address].

28

29         3.  After receipt of approval from the division and

30  prior to closing, if no revisions have been made to the

31  documents contained in the unapproved purchaser public

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  1  offering statement, or if such revisions do not materially

  2  alter or modify the offering in a manner adverse to a

  3  purchaser, the developer shall send the purchaser a notice

  4  containing a statement in conspicuous type in substantially

  5  the following form:

  6

  7  The unapproved public offering statement previously delivered

  8  to you has been approved by the Division of Florida Land

  9  Sales, Condominiums, and Mobile Homes. Revisions made to the

10  unapproved public offering statement, if any, are either not

11  required to be delivered to you or are not deemed by the

12  developer, in its opinion, to materially alter or modify the

13  offering in a manner that is adverse to you. Accordingly, your

14  cancellation right expired 10 days after you signed your

15  purchase contract. A complete copy of the approved public

16  offering statement is available through the managing entity

17  for inspection as part of the books and records of the plan.

18  If you have any questions regarding your cancellation rights,

19  you may contact the division at [insert division's current

20  address]. The division is authorized to enter into an

21  agreement with another state for the purpose of facilitating

22  the processing of out-of-state timeshare instruments or other

23  component site documents pursuant to subsection (5) or part II

24  and for the purpose of facilitating the referral of consumer

25  complaints to the appropriate state.

26

27         (e)  The division shall have no authority to determine

28  whether any person has complied with another state's laws or

29  to disapprove any filing, or out-of-state timeshare instrument

30  or component site document, based solely upon the lack or

31  degree of timeshare regulation in another state.  The division

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  1  may require a developer to obtain and provide to the division

  2  existing documentation certified by another state relating to

  3  an out-of-state filing, timeshare instrument, or component

  4  site document and attesting to the compliance of same with the

  5  laws of that state.  The division may accept evidence of the

  6  approval or acceptance of any out-of-state filing, timeshare

  7  instrument, or component site document by another state in

  8  lieu of requiring a developer to file the out-of-state filing,

  9  timeshare instrument, or component site document with the

10  division pursuant to this section.  The division may refuse to

11  approve the inclusion of any out-of-state filing, timeshare

12  instrument, or component site document as part of a public

13  offering statement based upon the inability of the developer

14  to establish the compliance of same with the laws of another

15  state.

16         (3)(a)1.  Any change to an approved public offering

17  statement filing shall be filed with the division for approval

18  as an amendment prior to becoming effective.  The division

19  shall have 20 days after receipt of a proposed amendment to

20  approve or cite deficiencies in the proposed amendment.  If

21  the division fails to act within 20 days, the amendment will

22  be deemed approved. If the proposed amendment adds a new

23  component site to an approved multisite timeshare plan, the

24  division's initial period in which to approve or cite

25  deficiencies is 45 days. If the developer fails to adequately

26  respond to any deficiency notice within 30 days, the division

27  may reject the amendment. Subsequent to such rejection, a new

28  filing fee pursuant to subsection (4) and a new division

29  initial review period pursuant to this paragraph shall apply

30  to any refiling or further review of the rejected amendment.

31

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  1         2.  For filings only subject to this part, each

  2  approved amendment to the approved purchaser public offering

  3  statement, other than an amendment made only for the purpose

  4  of the addition of a phase or phases to the timeshare plan in

  5  the manner described in the timeshare instrument or any

  6  amendment that does not materially alter or modify the

  7  offering in a manner that is adverse to a purchaser, shall be

  8  delivered to a purchaser no later than 10 days prior to

  9  closing. For filings made under part II, each approved

10  amendment to the multisite timeshare plan purchaser public

11  offering statement, other than an amendment made only for the

12  purpose of the addition, substitution, or deletion of a

13  component site pursuant to part II or the addition of a phase

14  or phases to a component site of a multisite timeshare plan in

15  the manner described in the timeshare instrument or any

16  amendment that does not materially alter or modify the

17  offering in a manner that is adverse to a purchaser, shall be

18  delivered to a purchaser no later than 10 days prior to

19  closing.

20         3.  Amendments made to a timeshare instrument for a

21  component site located in this state are not required to shall

22  only be delivered to those purchasers who do not will receive

23  a timeshare estate or a specific timeshare license in that

24  component site.  Amendments made to a timeshare instrument for

25  a component site not located in this state are not required to

26  be delivered to purchasers.

27         (b)  At the time that any amendments required to be

28  delivered to purchasers, as provided in paragraph (a), are

29  delivered to purchasers, the developer shall provide to those

30  purchasers who have not closed a written statement that if any

31  of such amendments materially alter or modify the offering in

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  1  a manner which is adverse to the purchaser, the purchaser or

  2  lessee will have a 10-day voidability period.

  3         (4)(a)  Upon the filing of a registered public offering

  4  statement, the developer shall pay a filing fee of $2 for each

  5  7 days of annual use availability in each timeshare unit that

  6  may be offered as a part of the proposed timeshare plan

  7  pursuant to the filing. Commencing January 1, 1995, the

  8  division may by rule increase the filing fee up to a maximum

  9  of $3 for each 7 days of annual use availability in each

10  timeshare unit that is offered as a part of the proposed

11  timeshare plan.

12         (b)  Upon the filing of an amendment to an approved

13  registered public offering statement, other than an amendment

14  adding a phase to the timeshare plan, the developer shall pay

15  a filing fee of $100.

16         (5)  Every registered public offering statement filed

17  with the division for a timeshare plan which is not a

18  multisite multistate timeshare plan shall contain the

19  information required by this subsection. The division is

20  authorized to provide by rule the method by which a developer

21  must provide such information to the division.

22         (a)  A cover page stating only:

23         1.  The name of the timeshare plan; and

24         2.  The following statement, in conspicuous type:  This

25  public offering statement contains important matters to be

26  considered in acquiring a timeshare interest period.  The

27  statements contained in this public offering statement herein

28  are only summary in nature. A prospective purchaser should

29  refer to all references, accompanying exhibits hereto,

30  contract documents, and sales materials.  You should not rely

31  upon oral representations as being correct.  Refer to this

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  1  document and accompanying exhibits for correct

  2  representations.  The seller is prohibited from making any

  3  representations other than those contained in the contract and

  4  this public offering statement.

  5         (b)  A listing of all statements required to be in

  6  conspicuous type in the public offering statement statements

  7  and in all exhibits thereto.

  8         (c)  A separate index of the contents and exhibits of

  9  the public offering statement.

10         (d)  A text, which shall include, where applicable, the

11  disclosures set forth in paragraphs (e)-(hh) and

12  cross-references to the location in the public offering

13  statement of each exhibit.

14         (e)  A description of the timeshare plan, including,

15  but not limited to:

16         1.  Its name and location.

17         2.  An explanation of the form of timeshare ownership

18  that is being offered, including a statement as to whether any

19  interest in the underlying real property will be conveyed to

20  the purchaser. If the plan is being created or being sold on a

21  leasehold, a description of the material terms of the lease

22  shall be included the location of the lease in the exhibits to

23  the public offering statement shall be stated. If the plan is

24  a plan in which timeshare estates are sold as interests in a

25  trust pursuant to the requirements of this chapter, a full and

26  accurate description of the trust arrangement and the

27  trustee's duties shall be included.

28         3.  An explanation of the manner in which the

29  apportionment of common expenses and ownership of the common

30  elements has been determined.

31

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  1         (f)  A description of the accommodations and

  2  facilities, including, but not limited to:

  3         1.  The number of timeshare buildings, the number of

  4  units in each building, the number of timeshare periods in

  5  each unit, the total number of timeshare periods declared as

  6  part of the timeshare plan and filed with the division, and

  7  being offered, the number of bathrooms and bedrooms in each

  8  type of timeshare unit, and the total number of units and unit

  9  weeks.

10         2.  The latest date estimated for completion of

11  constructing, finishing, and equipping the timeshare units

12  declared as part of the timeshare plan and filed with the

13  division.

14         3.  The estimated maximum number of units and timeshare

15  periods that will use the accommodations and facilities.  If

16  the maximum number of timeshare units or timeshare periods

17  will vary, a description of the basis for variation and the

18  minimum amount of dollars per timeshare period to be spent for

19  additional recreational facilities or for enlargement of such

20  facilities.  If the addition or enlargement of facilities will

21  result in a material increase of a purchaser's maintenance

22  expense or rental expense, the maximum increase and

23  limitations thereon shall be stated.

24         4.  A statement of whether the developer intends to

25  offer whole units in addition to timeshare units.

26         4.5.  The duration, in years, of the timeshare plan.

27         (g)  A description of the recreational and other

28  commonly used facilities that will be used only by purchasers

29  of the plan, including, but not limited to:

30

31

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  1         1.  The intended purpose, if not apparent from the

  2  description. Each room and its intended purposes, location

  3  capacity in numbers of people.

  4         2.  Each swimming pool and its general location,

  5  approximate size, depths, and capacity; its approximate deck

  6  size and capacity; and whether the pool is heated.

  7         3.  Each additional facility; the number of each such

  8  facility; and its approximate location, approximate size, and

  9  approximate capacity.

10         4.  A general description of the items of personal

11  property and the approximate numbers of each item of personal

12  property that the developer is committing to furnish for each

13  room or other facility or, in the alternative, a

14  representation as to the minimum amount of expenditure that

15  will be made to purchase the personal property for the

16  facility.

17         2.5.  The estimated date when each room or other

18  facility will be available for use by the purchaser.

19         6.  An identification of each room, accommodation, or

20  other facility to be used by purchasers that will not be owned

21  by the purchasers or the association.

22         7.  A reference to the location in the disclosure

23  materials of the lease or other agreements providing for the

24  use of those facilities.

25         8.  A description of the terms of the lease or other

26  agreement, including the length of its term; the rent payable,

27  directly or indirectly, by each purchaser; and the total rent

28  payable to the lessor, stated in weekly, monthly, and annual

29  amounts for the entire term of the lease; and a description of

30  any option to purchase the property under any such lease,

31  including the time the option may be exercised, the purchase

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  1  price or how it is to be determined, the manner of payment,

  2  and whether the option may be exercised for a purchaser's

  3  share or only as to the entire leased property.

  4         3.9.  A statement as to whether the facilities will

  5  developer may provide additional facilities not described

  6  above; the general locations and types of such facilities;

  7  improvements or changes that may be made; the approximate

  8  dollar amounts to be expended; and the estimated maximum

  9  additional common expense or cost to the individual purchaser

10  that may be charged during the first annual period of

11  operation of the modified or added facilities.

12         (h)  A description of the recreational and other

13  commonly used facilities which will not be used exclusively by

14  purchasers of the timeshare plan, and, if not, a statement as

15  to whether the purchasers of the timeshare plan are required

16  to pay and which require the payment of any portion of the

17  maintenance and expenses of such facilities., either directly

18  or indirectly, by the purchasers. The description shall

19  include, but not be limited to, the following:

20         1.  Each building or facility committed to be built.

21         2.  Facilities not committed to be built except under

22  certain conditions, and a statement of those conditions or

23  contingencies.

24         3.  As to each facility committed to be built, or which

25  will be committed to be built upon the happening of one of the

26  conditions in subparagraph 2., a statement as to whether it

27  will be owned by the purchasers having the use thereof or by

28  an association or other entity which will be controlled by the

29  purchasers, or others, and the location in the exhibits of the

30  lease or other document providing for use of those facilities.

31

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  1         4.  The year in which each facility will be available

  2  for use by the purchasers or, in the alternative, the maximum

  3  number of purchasers in the project at the time each of the

  4  facilities is committed to be completed.

  5         5.  A general description of the items of personal

  6  property and the approximate numbers of each item of personal

  7  property that the developer is committing to furnish for each

  8  room or other facility or, in the alternative, a

  9  representation as to the minimum amount of expenditure that

10  will be made to purchase the personal property for the

11  facility.

12         6.  If there are leases, descriptions thereof,

13  including the length of their terms, the rents payable, and

14  descriptions of any options to purchase.

15         (h)(i)1.  If any recreational facilities or other

16  facilities offered by the developer for use by purchasers are

17  to be leased or have club memberships membership associated

18  with them, other than participation in a vacation club, one of

19  the following statements in conspicuous type: There is a

20  recreational facilities lease associated with one or more

21  facilities of the this timeshare plan; or, There is a club

22  membership associated with one or more facilities of the this

23  timeshare plan.  There shall be a reference to the location in

24  the disclosure materials where the recreation lease or club

25  membership is described in detail.

26         2.  If it is mandatory that purchasers unit owners pay

27  fees, rent, dues, or other charges under a recreational

28  facilities lease or club membership for the use of the

29  facilities, other than participation in a vacation club, the

30  applicable statement in conspicuous type in substantially the

31  following form:

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  1         a.  Membership in a the recreational facilities club is

  2  mandatory for purchasers;

  3         b.  Purchasers or the association(s) are required, as a

  4  condition of ownership, to be lessees under the recreational

  5  facilities lease;

  6         c.  Purchasers or the association(s) are required to

  7  pay their share of the rent or costs and expenses of

  8  maintenance, management, upkeep, and replacement, rent, and

  9  fees under the recreational facilities lease (or the other

10  instruments providing the facilities); or

11         d.  A similar statement of the nature of the

12  organization or the manner in which the use rights are

13  created, and that purchasers are required to pay.

14

15  Immediately following the applicable statement a description

16  of the lease or other instrument shall be stated, including a

17  description of terms of the payment of rent or costs and

18  expenses of maintenance, management, upkeep, and replacement

19  of the facilities, the location in the disclosure materials

20  where the development is described in detail shall be stated.

21         3.  If the purchasers are required to pay a use If the

22  developer, or any other person other than the purchasers and

23  other persons having use rights in the facilities, reserves,

24  or is entitled to receive, any rent, fee, or other payment for

25  the use of the facilities, not including the rent or

26  maintenance, management, upkeep, or replacement costs and

27  expenses, the following statement in conspicuous type:  The

28  purchasers or the association(s) must pay rent or land use

29  fees for one or more recreational or other commonly used

30  facilities.  Immediately following this statement a

31  description of the use fees shall be included, the location in

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  1  the disclosure materials where the rent or land use fees are

  2  described in detail shall be stated.

  3         4.  If, in any recreation format, whether leasehold,

  4  club, or other, any person other than the association has the

  5  right to a lien on the timeshare interests periods to secure

  6  the payment of assessments, rent, or other exactions, a

  7  statement in conspicuous type in substantially the following

  8  form:

  9         a.  There is a lien or lien right against each

10  timeshare interest period to secure the payment of rent and

11  other exactions under the facilities recreation lease. A

12  purchaser's failure to make these payments may result in

13  foreclosure of the lien; or

14         b.  There is a lien or lien right against each

15  timeshare interest period to secure the payment of assessments

16  or other exactions coming due for the use, maintenance,

17  upkeep, or repair of one or more the recreational or commonly

18  used facilities.  A purchaser's failure to make these payments

19  may result in foreclosure of the lien.

20

21  Immediately following the applicable statement, a description

22  of the lien right shall be included the location in the

23  disclosure materials where the lien or lien right is described

24  in detail shall be stated.

25         (i)(j)  If the developer or any other person has the

26  right to increase or add to the recreational facilities at any

27  time after the establishment of the timeshare plan, without

28  the consent of the purchasers or association being required, a

29  statement in conspicuous type in substantially the following

30  form: Recreational Facilities may be expanded or added without

31  consent of the purchasers or the association(s). Immediately

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  1  following this statement, a description of the location in the

  2  disclosure materials where such reserved rights are described

  3  shall be included stated.

  4         (j)(k)  An explanation of the status of the title to

  5  the real property underlying the timeshare plan, including a

  6  statement of the existence of any lien, defect, judgment,

  7  mortgage, or other encumbrance affecting the title to the

  8  property, and how such lien, defect, judgment, mortgage, or

  9  other encumbrance will be removed or satisfied prior to

10  closing.

11         (k)(l)  A description of any judgment against the

12  developer, the managing entity, or owner of the underlying

13  fee, which judgment is material to the timeshare plan; the

14  status of any pending suit to which the developer, the

15  managing entity, or owner of the underlying fee is a party,

16  which suit is material to the timeshare plan; and any other

17  suit which is material to the timeshare plan of which the

18  developer, managing entity, or owner of the underlying fee has

19  actual knowledge.  If no judgments or pending suits exist,

20  there shall be a statement of such fact.

21         (l)(m)  A description of all unusual and material

22  circumstances, features, and characteristics of the real

23  property.

24         (m)(n)  A description of any financing to be offered to

25  purchasers by the developer or any person or entity in which

26  the developer has a financial interest, together with a

27  disclosure that the description of such financing may be

28  changed by the developer and that any change in the financing

29  offered to prospective purchasers will not be deemed to be a

30  material change.

31

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  1         (n)(o)  A detailed explanation of any financial

  2  arrangements which have been provided for completion of all

  3  promised improvements.

  4         (p)  A statement as to whether the plan of the

  5  developer includes a program of leasing units or timeshare

  6  periods rather than selling them, or leasing and selling them

  7  subject to such leases.  If so, there shall be a description

  8  of the plan, including the number and identification of the

  9  units and the provisions and term of the proposed leases, and

10  a statement in conspicuous type that:  The units (or timeshare

11  periods) may be transferred subject to a lease.

12         (o)(q)  The name and address of the managing entity; a

13  statement whether the seller may change the managing entity or

14  its control and, if so, the manner by which the seller may

15  change the managing entity; a statement of the arrangements

16  for management, maintenance, and operation of the

17  accommodations and facilities and of other property that will

18  serve the purchasers; and a description of the management

19  arrangement and any contracts for these purposes having a term

20  in excess of 1 year, including the names of the contracting

21  parties, the term of the contract, the nature of the services

22  included, and the compensation, stated for a month and for a

23  year, and provisions for increases in the compensation.

24  Copies of all described contracts shall be attached as

25  exhibits.

26         (p)(r)  If the developer, or any person other than the

27  purchasers purchaser, has the right to retain control of the

28  board of administration of the association for a period of

29  time which may exceed 1 year after the closing of the sale of

30  a majority of the timeshare interests units in that timeshare

31  plan to persons other than successors or concurrent developers

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  1  and the plan is one in which all purchasers automatically

  2  become members of the association, a statement in conspicuous

  3  type in substantially the following form: The developer (or

  4  other person) has the right to retain control of the

  5  association after a majority of the timeshare interests units

  6  have been sold. Immediately following this statement, a

  7  description of the applicable transfer of control provisions

  8  of the timeshare plan shall be included the location in the

  9  disclosure materials where this right to control is described

10  in detail shall be stated.

11         (q)(s)1.  If there are any restrictions upon the sale,

12  transfer, conveyance, or leasing of a timeshare interest

13  period, a statement in conspicuous type in substantially the

14  following form: The sale, lease, or transfer of timeshare

15  interests periods is restricted or controlled.  Immediately

16  following this statement, a description of the nature of the

17  location in the disclosure materials where the restriction,

18  limitation, or control on the sale, lease, or transfer of

19  timeshare interests periods is described in detail shall be

20  included stated.

21         2.  The following statement in conspicuous type in

22  substantially the following form: The purchase of a timeshare

23  interest period should be based upon its value as a vacation

24  experience or for spending leisure time, and not considered

25  for purposes of acquiring an appreciating investment or with

26  an expectation that the timeshare interest period may be

27  resold.

28         (r)(t)  If the timeshare plan is part of a phase

29  project, a statement to that effect and a complete description

30  of the phasing. Notwithstanding any provisions of s. 718.110

31  or s. 719.1055, a developer may develop a timeshare

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  1  condominium or a timeshare cooperative in phases if the

  2  original declaration of condominium or cooperative documents

  3  submitting the initial phase to condominium ownership or

  4  cooperative ownership or an amendment to the declaration of

  5  condominium or cooperative documents which has been approved

  6  by all of the unit owners and unit mortgagees provides for

  7  phasing. Notwithstanding any provisions of s. 718.403 or s.

  8  719.403 to the contrary, the original declaration of

  9  condominium or cooperative documents, or an amendment to the

10  declaration of condominium or cooperative documents adopted

11  pursuant to this subsection, need only generally describe the

12  developer's phasing plan and the land which may become part of

13  the condominium or cooperative, and, in conjunction therewith,

14  the developer may also reserve all rights to vary his or her

15  phasing plan as to phase boundaries, plot plans and floor

16  plans, timeshare unit types, timeshare unit sizes and

17  timeshare unit type mixes, numbers of timeshare units, and

18  recreational areas and facilities with respect to each

19  subsequent phase. There shall be no time limit during which a

20  developer of a timeshare condominium or timeshare cooperative

21  must complete his or her phasing plan, and the developer shall

22  not be required to notify owners of existing timeshare estates

23  of his or her decision not to add one or more proposed phases.

24         (s)(u)  A description of the material restrictions, if

25  any, to be imposed on timeshare interests periods concerning

26  the use of any of the accommodations or facilities, including

27  statements as to whether there are restrictions upon children

28  and pets or a reference to, and references to the volumes and

29  pages of the timeshare plan documents where such restrictions

30  are found; or, if such restrictions are contained elsewhere,

31  then a copy of the documents containing the restrictions which

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  1  shall be attached as an exhibit.  If there are no

  2  restrictions, there shall be a statement of such fact.

  3         (t)(v)  If there is any land that is offered by the

  4  developer for use by the purchasers and which is neither owned

  5  by them nor leased to them, the association, or any entity

  6  controlled by the purchasers, a statement describing the land,

  7  how it will serve the timeshare plan, and the nature and term

  8  of service.  Immediately following this statement, the

  9  location in the disclosure materials where the declaration or

10  other instrument creating such servitude is found shall be

11  stated.

12         (w)  A description of the manner in which utility and

13  other services, including, but not limited to, sewage and

14  waste disposal, water supply, and storm drainage, will be

15  provided and the names of the persons or entities furnishing

16  them.

17         (u)(x)  An estimated operating budget for the timeshare

18  plan and a schedule of the purchaser's expenses expense shall

19  be attached as an exhibit and shall contain the following

20  information:

21         1.  The estimated annual expenses of the timeshare plan

22  collectible from purchasers by assessments.  The estimated

23  payments by the purchaser for assessments shall also be stated

24  in the estimated amounts for the times when they will be due.

25  Expenses shall also be shown for the shortest timeshare period

26  offered for sale by the developer.  If the timeshare plan

27  provides for the offer and sale of units to be used on a

28  nontimeshare basis, the estimated monthly and annual expenses

29  of such units shall be set forth in a separate schedule.

30         2.  The estimated weekly, monthly, and annual expenses

31  of the purchaser of each timeshare interest period, other than

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  1  assessments payable to the managing entity.  Expenses which

  2  are personal to purchasers that are not uniformly incurred by

  3  all purchasers or that are not provided for or contemplated by

  4  the timeshare plan documents may be excluded from this

  5  estimate.

  6         3.  The estimated items of expenses of the timeshare

  7  plan and the managing entity, except as excluded under

  8  subparagraph 2., including, but not limited to, if applicable,

  9  the following items, which shall be stated either as

10  management expenses collectible by assessments or as expenses

11  of the purchaser payable to persons other than the managing

12  entity:

13         a.  Expenses for the managing entity:

14         (I)  Administration of the managing entity.

15         (II)  Management fees.

16         (III)  Maintenance.

17         (IV)  Rent for recreational and other commonly used

18  facilities.

19         (V)  Taxes upon timeshare property.

20         (VI)  Taxes upon leased areas.

21         (VII)  Insurance.

22         (VIII)  Security provisions.

23         (IX)  Other expenses.

24         (X)  Operating capital.

25         (XI)  Reserves for deferred maintenance and reserves

26  for capital expenditures.  All reserves for any accommodations

27  and facilities located in this state shall be calculated by a

28  formula which is based upon estimated life and replacement

29  cost of each reserve item.  Reserves for deferred maintenance

30  for such accommodations and facilities shall include accounts

31  for roof replacement, building painting, pavement resurfacing,

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  1  replacement of timeshare unit furnishings and equipment, and

  2  any other component, the useful life of which is less than the

  3  useful life of the overall structure. For any accommodations

  4  and facilities located outside of this state, the developer

  5  shall disclose the amount of reserves for deferred maintenance

  6  or capital expenditures required by the law of the situs

  7  state, if applicable, and maintained for such accommodations

  8  and facilities.

  9         (XII)  Fees payable to the division.

10         b.  Expenses for a purchaser:

11         (I)  Rent for the timeshare unit, if subject to a

12  lease.

13         (II)  Rent payable by the purchaser directly to the

14  lessor or agent under any recreational lease or lease for the

15  use of commonly used facilities, which use and payment is a

16  mandatory condition of ownership and is not included in the

17  common expenses expense or assessments for common maintenance

18  paid by the purchasers to the managing entity association.

19         4.  The estimated amounts shall be stated for a period

20  of at least 12 months and may distinguish between the period

21  prior to the time that purchasers elect a majority of the

22  board of administration and the period after that date.

23         5.  If the developer intends to guarantee the level of

24  assessments, such guarantee must be based upon a good faith

25  estimate of the revenues and expenses of the timeshare plan.

26  The guarantee must include a description of the following:

27         a.  The specific time period measured in one or more

28  calendar or fiscal years during which the guarantee will be in

29  effect.

30         b.  A statement that the developer will pay all common

31  expenses incurred in excess of the total revenues of the

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  1  timeshare plan pursuant to s. 721.15(2) if the developer has

  2  excused himself or herself from the payment of assessments

  3  during the guarantee period.

  4         c.  The level, expressed in total dollars, at which the

  5  developer guarantees the budget.  If the developer has

  6  reserved the right to extend or increase the guarantee level

  7  pursuant to s. 721.15(2), a disclosure must be included to

  8  that effect.

  9         6.  If the developer intends to provide a trust fund to

10  defer or reduce the payment of annual assessments, a copy of

11  the trust instrument shall be attached as an exhibit and shall

12  include a description of such arrangement, including, but not

13  limited to:

14         a.  The specific amount of such trust funds and the

15  source of the funds.

16         b.  The name and address of the trustee.

17         c.  The investment methods permitted by the trust

18  agreement.

19         d.  A statement in conspicuous type that the funds from

20  the trust account may not cover all assessments and that there

21  is no guarantee that purchasers will not have to pay

22  assessments in the future.

23         7.  The budget of a phase timeshare plan may contain a

24  note identifying the number of timeshare interests covered by

25  the budget, indicating the number of timeshare interests, if

26  any, estimated to be declared as part of the timeshare plan

27  during that calendar year, and projecting the common expenses

28  for the timeshare plan based upon the number of timeshare

29  interests estimated to be declared as part of the timeshare

30  plan during that calendar year.

31

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  1         (v)(y)  A schedule of estimated closing expenses to be

  2  paid by a purchaser or lessee of a timeshare interest period

  3  and a statement as to whether a title opinion or title

  4  insurance policy is available to the purchaser and, if so, at

  5  whose expense.

  6         (w)(z)  The identity of the developer and the chief

  7  operating officer or principal directing the creation and sale

  8  of the timeshare plan and a statement of the experience of

  9  each in this field or, if no experience, a statement of that

10  fact.

11         (aa)  A statement of any service, maintenance, or

12  recreation contracts or leases that may be canceled by the

13  purchasers.

14         (x)(bb)  A statement of the total financial obligation

15  of the purchaser, including the purchase price and any

16  additional charges to which the purchaser may be subject.

17         (y)(cc)  The name of any person who will or may have

18  the right to alter, amend, or add to the charges to which the

19  purchaser may be subject and the terms and conditions under

20  which such alterations, amendments, or additions may be

21  imposed.

22         (z)(dd)  A statement An explanation of the purchaser's

23  right of cancellation of the purchase contract.

24         (aa)(ee)  A description of the insurance coverage

25  provided for the timeshare plan benefit of the purchasers.

26         (bb)(ff)  A statement as to whether the timeshare plan

27  is participating in an exchange program and, if so, the name

28  and address of the exchange company offering the exchange

29  program.

30         (cc)  The existence of rules and regulations regarding

31  any reservation features governing a purchaser's ability to

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  1  make reservations for a timeshare period, including, if

  2  applicable, a conspicuous type disclaimer in substantially the

  3  following form:

  4

  5  The right to reserve a timeshare period is subject to rules

  6  and regulations of the timeshare plan reservation system.

  7

  8         (dd)  If a developer is filing a timeshare plan that

  9  includes a timeshare instrument or component site document

10  that was in conformance with the laws and rules in existence

11  at the time the timeshare plan was created but does not

12  conform to existing laws and rules that govern the timeshare

13  plan and the developer does not have the authority or power to

14  amend or change the timeshare instrument or component site

15  document to conform to such existing laws or rules as directed

16  by the division, a brief explanation of current law and the

17  conflict with the timeshare instrument or component site

18  document, preceded by disclaimer in conspicuous type in

19  substantially the following form:

20

21  Florida law has been amended and certain provisions in [insert

22  appropriate reference to timeshare instrument or component

23  site document] that were in conformance with Florida law as it

24  existed at the time the timeshare plan was created are not in

25  conformance with current Florida law. These documents may only

26  be amended by [insert appropriate reference to person or

27  entity that has the right to amend or change the timeshare

28  instrument or component site document]. The developer does not

29  warrant that such documents are in technical compliance with

30  all applicable Florida laws and regulations. All questions

31  regarding amendment of these documents should be directed to

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  1  [insert appropriate reference to person or entity that has the

  2  right to amend or change the timeshare instrument or component

  3  site document].

  4

  5         (ee)(gg)  Any other information that a the seller, with

  6  the approval of the division, desires to include in the public

  7  offering statement.

  8         (ff)(hh)  Copies of the following documents and plans,

  9  to the extent they are applicable, shall be included as

10  exhibits to the registered public offering statement provided,

11  if the timeshare plan has not been declared at the time of the

12  filing, the developer shall provide proposed documents:

13         1.  The declaration of condominium, or the proposed

14  declaration if the declaration has not been recorded.

15         2.  The cooperative documents, or the proposed

16  cooperative documents if the documents have not been recorded.

17         3.  The declaration of covenants and restrictions, or

18  proposed declaration if the declaration has not been recorded.

19         4.  The articles of incorporation creating the

20  association.

21         5.  The bylaws of the association.

22         6.  The ground lease or other underlying lease of the

23  real property on which the timeshare plan is situated.

24         7.  The management agreement and all maintenance and

25  other contracts regarding the management and operation of the

26  timeshare property which have terms in excess of 1 year.

27         8.  The estimated operating budget for the timeshare

28  plan and the required schedule of purchasers' expenses.

29         9.  The floor plan of each type of accommodation and

30  the plot plan showing the location of all accommodations and

31

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  1  facilities declared as part of the timeshare plan and filed

  2  with the division.

  3         10.  The lease for any facilities. The lease of

  4  recreational facilities and other facilities which will be

  5  used only by purchasers of the timeshare plan.

  6         11.  The lease of facilities used by purchasers and

  7  others.

  8         12.  The form of timeshare period lease, if the offer

  9  is of a leasehold.

10         11.13.  A declaration of servitude of properties

11  serving the accommodations and or facilities, but not owned by

12  purchasers or leased to them or the association.

13         12.14.  Any documents required by s. 721.03(3)(e) as

14  the result of the inclusion of a timeshare plan in the

15  conversion of building The statement of condition of the

16  existing building or buildings, if the offering is of

17  timeshare periods in an operation being converted to

18  condominium or cooperative ownership.

19         15.  The statement of inspection for termite damage and

20  treatment of the existing improvements, if the timeshare

21  property is a conversion.

22         13.16.  The form of agreement for sale or lease of

23  timeshare interests periods.

24         14.17.  The executed agreement for escrow of payments

25  made to the developer prior to closing and the form of any

26  agreement for escrow of ad valorem tax escrow payments to be

27  made into an ad valorem tax escrow account pursuant to s.

28  192.037(6).

29         15.18.  The documents containing any restrictions on

30  use of the property required by paragraph (s) (u).

31

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  1         16. 19.  Any other documents or instruments creating

  2  the timeshare plan.

  3         20.  Any contract or lease to be signed by the

  4  purchasers.

  5         (gg)(ii)  Such other information as is necessary to

  6  fairly, meaningfully, and effectively disclose all aspects of

  7  the timeshare plan, including, but not limited to, any

  8  disclosures made necessary by the operation of s.

  9  721.03(8)(9). However, if a developer has, in good faith,

10  attempted to comply with the requirements of this section, and

11  if, in fact, he or she has substantially complied with the

12  disclosure requirements of this chapter, nonmaterial errors or

13  omissions shall not be actionable.

14         (hh)(jj)  Notwithstanding the provisions of this

15  subsection, the registered public offering statement for a

16  component site of a multisite timeshare plan filed pursuant to

17  this subsection may contain cross-references to information

18  contained in the related multisite timeshare plan registered

19  public offering statement filed pursuant to s. 721.55 in lieu

20  of repeating such information.

21         (6)  The division is authorized to prescribe by rule

22  the form of the approved purchaser public offering statement

23  that must be furnished by the developer to each purchaser.

24  The form of the purchaser public offering statement that is

25  furnished to purchasers must provide fair, meaningful, and

26  effective disclosure of all aspects of the timeshare plan. For

27  timeshare plans filed pursuant to this part, the developer

28  shall furnish each purchaser with the following:

29         (a)  A copy of the purchaser public offering statement

30  text in the form approved by the division for delivery to

31  purchasers.

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  1         (b)  Copies of the exhibits required to be filed with

  2  the division pursuant to subparagraphs (5)(ff)(hh)1., 2., 4.,

  3  5., 8., and 16 19.

  4         (c)  A receipt for timeshare plan documents and a list

  5  describing any exhibit to the registered public offering

  6  statement filed with the division which is not delivered to

  7  the purchaser.  The division is authorized to prescribe by

  8  rule the form of the receipt for timeshare plan documents and

  9  the description of exhibits list that must be furnished to the

10  purchaser.  The description of documents list utilized by a

11  developer shall be filed with the division for review as part

12  of the registered public offering statement filing pursuant to

13  this section.  The developer shall be required to provide the

14  managing entity with a copy of the approved registered public

15  offering statement text and exhibits filed with the division

16  and any approved amendments thereto to be maintained by the

17  managing entity as part of the books and records of the

18  timeshare plan pursuant to s. 721.13(3)(d).

19         (d)  Any other exhibit which the developer includes as

20  part of the purchaser public offering statement, provided that

21  the developer first files the exhibit with the division.

22         (e)  An executed copy of any document which the

23  purchaser signs.

24         (7)  For purposes of this section, descriptions shall

25  include locations, areas, capacities, numbers, volumes, or

26  sizes and may be stated as approximations or minimums.

27         Section 13.  Section 721.075, Florida Statutes, is

28  amended to read:

29         721.075  Incidental benefits.--Incidental benefits

30  shall be offered only as provided in this section.

31

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  1         (1)  Accommodations, facilities, products, services,

  2  discounts, or other benefits which satisfy the requirements of

  3  this subsection shall be subject to the provisions of this

  4  section and exempt from the other provisions of this chapter

  5  part which would otherwise apply to such accommodations or and

  6  facilities if and only if:

  7         (a)  The use of or participation in the incidental

  8  benefit by the prospective purchaser is completely voluntary,

  9  and payment of any fee or other cost associated with the

10  incidental benefit is required only upon such use or

11  participation.

12         (b)  No costs of acquisition, operation, maintenance,

13  or repair of the incidental benefit are passed on to

14  purchasers of the timeshare plan as common expenses of the

15  timeshare plan or as common expenses of a component site of a

16  multisite timeshare plan.

17         (c)  The continued availability of the incidental

18  benefit is not necessary in order for any accommodation or

19  facility of the timeshare plan to be available for use by

20  purchasers of the timeshare plan in a manner consistent in all

21  material respects with the manner portrayed by any promotional

22  material, advertising, or purchaser public offering statement.

23         (d)  The continued availability to purchasers of

24  timeshare plan accommodations on no greater than a one-to-one

25  purchaser to accommodation ratio is not dependent upon

26  continued availability of the incidental benefit.

27         (e)  The incidental benefit will continue to be

28  available in the manner represented to prospective purchasers

29  for no less than 6 months but less than 3 years or less after

30  the first date that the timeshare plan is available for use by

31  the purchaser.  The developer shall not be required to make

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  1  the incidental benefit available for longer than 18 months

  2  after the date of purchase. Nothing herein shall prevent the

  3  renewal or extension of the availability of an incidental

  4  benefit.

  5         (f)  The aggregate represented value of all incidental

  6  benefits offered by a developer to a purchaser may not exceed

  7  15 percent of the purchase price paid by the purchaser for his

  8  or her timeshare interest period.

  9         (g)  The incidental benefit is filed with the division

10  in conjunction with the filing of a timeshare plan or in

11  connection with a previously filed timeshare plan.

12         (2)  Each purchaser shall execute a separate

13  acknowledgment and disclosure statement with respect to all

14  incidental benefits, which statement shall include the

15  following information:

16         (a)  A fair description of the incidental benefit,

17  including, but not limited to, the represented value of the

18  benefit; any user fees or costs associated therewith; and any

19  restrictions upon use or availability.

20         (b)  A statement that use of or participation in the

21  incidental benefit by the prospective purchaser is completely

22  voluntary, and that payment of any fee or other cost

23  associated with the incidental benefit is required only upon

24  such use or participation.

25         (c)  A statement that the incidental benefit is not

26  assignable or otherwise transferable by the prospective

27  purchaser or purchaser.

28         (d)  The following disclosure in conspicuous type

29  immediately above the space for the purchaser's signature:

30

31

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  1         The [Describe incidental benefit[s] described in this

  2  statement is [are] benefit is an incidental benefit offered to

  3  prospective purchasers of the timeshare plan [or other

  4  permitted reference pursuant to s. 721.11(5)(a)].  This

  5  [These] benefit[s] is [are] benefit is available for your use

  6  for a [some period minimum of 6 months but less than 3 years

  7  or less] after the first date that the timeshare plan is

  8  available for your use. The availability of the incidental

  9  benefit[s] benefit may or may not be renewed or extended.  You

10  should not purchase an interest in the timeshare plan in

11  reliance upon the continued availability or renewal or

12  extension of this [these] benefit[s] benefit.

13

14  The acknowledgment and disclosure statement for any each

15  incidental benefit shall be filed with the division prior to

16  use.  Each purchaser shall receive a copy of his or her

17  executed acknowledgment and disclosure statement as a document

18  required to be provided to him or her pursuant to s.

19  721.10(1)(b).

20         (3)(a)  In the event that an incidental benefit becomes

21  unavailable to purchasers in the manner represented by the

22  developer in the acknowledgment and disclosure statement, the

23  developer shall pay the purchaser the greater of twice the

24  verifiable retail value or twice the represented value of the

25  unavailable incidental benefit in cash within 30 days of the

26  date that the unavailability of the incidental benefit was

27  made known to the developer unless the developer has reserved

28  a substitution right pursuant to paragraph (b) by making the

29  required disclosure in the acknowledgment and disclosure

30  statement and timely makes the substitution as required by

31  paragraph (b). The developer shall promptly notify the

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  1  division upon learning of the unavailability of any incidental

  2  benefit.

  3         (b)  If an incidental benefit becomes unavailable as a

  4  result of events beyond the control of the developer, the

  5  developer may reserve the right to substitute a replacement

  6  incidental benefit of a type, quality, value, and term

  7  reasonably similar to the unavailable incidental benefit. If

  8  the developer reserves the right to substitute, the

  9  acknowledgement and disclosure statement required pursuant to

10  paragraph (2)(a) shall contain the following conspicuous

11  disclosure by including the following language in the

12  disclosure required by paragraph (2)(d):

13

14         In the event any [describe incidental benefit described

15  in this statement benefit] becomes unavailable as a result of

16  events beyond the control of the developer, the developer

17  reserves the right to substitute a replacement incidental

18  benefit of a type, quality, value, and term reasonably similar

19  to the unavailable incidental benefit.

20

21  The substituted incidental benefit shall be delivered to the

22  purchaser within 30 days after the date that the

23  unavailability of the incidental benefit was made known to the

24  developer.

25         (4)  All purchaser remedies pursuant to s. 721.21 shall

26  be available for any violation of the provisions of this

27  section.

28         Section 14.  Section 721.08, Florida Statutes, is

29  amended to read:

30         721.08  Escrow accounts; nondisturbance instruments;

31  alternate security arrangements; transfer of legal title.--

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  1         (1)  Prior to the filing of a registered public

  2  offering statement with the division, all developers shall

  3  establish an escrow account with an escrow agent for the

  4  purpose of protecting the funds or other property of

  5  purchasers required to be escrowed by this section. An escrow

  6  agent shall maintain the accounts called for in this section

  7  only in such a manner as to be under the direct supervision

  8  and control of the escrow agent.  The escrow agent shall have

  9  a fiduciary duty to each purchaser to maintain the escrow

10  accounts in accordance with good accounting practices and to

11  release the purchaser's funds or other property from escrow

12  only in accordance with this chapter.  The escrow agent shall

13  retain all affidavits received pursuant to this section for a

14  period of 5 years.  Should the escrow agent receive

15  conflicting demands for funds or property held in escrow, the

16  escrow agent shall immediately notify the division of the

17  dispute and either promptly submit the matter to arbitration

18  or, by interpleader or otherwise, seek an adjudication of the

19  matter by court.

20         (2)  One hundred percent of all funds or other property

21  which is received from or on behalf of purchasers of the

22  timeshare plan or timeshare interest period prior to the

23  occurrence of events required in this subsection shall be

24  deposited pursuant to an escrow agreement approved by the

25  division.  The escrow agreement shall provide that the funds

26  or property may be released from escrow only as follows:

27         (a)  Cancellation.--In the event a purchaser gives a

28  valid notice of cancellation pursuant to s. 721.10 or is

29  otherwise entitled to cancel the sale, the funds or property

30  received from or on behalf of the purchaser, or the proceeds

31  thereof, shall be returned to the purchaser.  Such refund

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  1  shall be made within 20 days of demand therefor by the

  2  purchaser or within 5 days after receipt of funds from the

  3  purchaser's cleared check, whichever is later.  If the

  4  purchaser has received benefits under the contract prior to

  5  the effective date of the cancellation, the funds or property

  6  to be returned to the purchaser may be reduced by the

  7  proportion of contract benefits actually received.

  8         (b)  Purchaser's default.--Following expiration of the

  9  10-day cancellation period, if the purchaser defaults in the

10  performance of her or his obligations under the terms of the

11  contract to purchase or such other agreement by which a the

12  seller sells the timeshare interest period, the developer

13  shall provide an affidavit to the escrow agent requesting

14  release of the escrowed funds or property and shall provide a

15  copy of such affidavit to the purchaser who has defaulted.

16  The developer's affidavit, as required herein, shall include:

17         1.  A statement that the purchaser has defaulted and

18  that the developer has not defaulted;

19         2.  A brief explanation of the nature of the default

20  and the date of its occurrence;

21         3.  A statement that pursuant to the terms of the

22  contract the developer is entitled to the funds held by the

23  escrow agent; and

24         4.  A statement that the developer has not received

25  from the purchaser any written notice of a dispute between the

26  purchaser and developer or a claim by the purchaser to the

27  escrow.

28         (c)  Compliance with conditions.--

29         1.  If the timeshare plan is one in which timeshare

30  licenses are to be sold and no cancellation or default has

31

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  1  occurred, the escrow agent may release the escrowed funds or

  2  property upon presentation of:

  3         a.  An affidavit by the developer that all of the

  4  following conditions have been met:

  5         (I)  Expiration of the cancellation period.

  6         (II)  Completion of construction.

  7         (III)  Closing.

  8         (IV)  Either execution and recordation by each

  9  interestholder of the nondisturbance and notice to creditors

10  instrument, as described in this section or, alternatively,

11  transfer by the developer of legal title to the subject

12  accommodations and facilities, or all use rights therein, to a

13  trust satisfying the requirements of sub-subparagraph 3.b. and

14  the execution and recordation by each other interestholder of

15  the nondisturbance and notice to creditors instrument, as

16  described in this section.

17         b.  A certified copy of the recorded nondisturbance and

18  notice to creditors instrument that complies with subsection

19  (3).

20         c.  One of the following:

21         (I)  A copy of a memorandum of agreement, as defined in

22  s. 721.05(21), together with satisfactory evidence that the

23  original memorandum of agreement has been irretrievably

24  delivered for recording to the appropriate official

25  responsible for maintaining the public records in the county

26  in which the subject accommodations and or facilities are

27  located.  The original memorandum of agreement must be

28  recorded within 180 days after the date on which the purchaser

29  executed her or his purchase agreement.

30         (II)  A notice delivered for recording to the

31  appropriate official responsible for maintaining the public

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  1  records in each county in which the subject accommodations and

  2  facilities are located notifying all persons of the identity

  3  of an independent escrow agent or trustee satisfying the

  4  requirements of sub-subparagraph 3.b. that shall maintain

  5  separate books and records, in accordance with good accounting

  6  practices, for the timeshare plan in which timeshare licenses

  7  are to be sold. The books and records shall indicate each

  8  accommodation and facility that is subject to such a timeshare

  9  plan and each purchaser of a timeshare license in the

10  timeshare plan.

11         2.  If the timeshare plan is one in which timeshare

12  estates are to be sold, other than interests in a trust

13  pursuant to subparagraph 3., and no cancellation or default

14  has occurred, the escrow agent may release the escrowed funds

15  or property upon presentation of:

16         a.  An affidavit by the developer that all of the

17  following conditions have been met:

18         (I)  Expiration of the cancellation period.

19         (II)  Completion of construction.

20         (III)  Closing.

21         b.  If the timeshare estate is sold by agreement for

22  deed, a certified copy of the recorded nondisturbance and

23  notice to creditors instrument, as described in this section.

24         c.  Evidence that the timeshare estate is free and

25  clear of the claims of any interestholders, other than the

26  claims of interestholders that, through a recorded instrument,

27  are irrevocably made subject to the timeshare instrument and

28  the use rights of purchasers made available through the

29  timeshare instrument, or that are the subject of a recorded

30  nondisturbance and notice to creditors instrument that

31  complies with subsection (3).

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  1         3.  If the timeshare plan is one in which timeshare

  2  estates are to be sold as interests in a trust that complies

  3  in all respects with the provisions of sub-subparagraph b.,

  4  and no cancellation or default has occurred, the escrow agent

  5  may release the escrowed funds or property upon presentation

  6  of:

  7         a.  An affidavit by the developer that all of the

  8  following conditions have been met:

  9         (I)  Expiration of the cancellation period.

10         (II)  Completion of construction.

11         (III)  Transfer of the subject accommodations and

12  facilities, or all use rights therein, to the trust.

13         (IV)  Closing.

14         b.  Prior to the transfer by each interestholder of the

15  subject accommodations and facilities, or all use rights

16  therein, to a trust, any lien or other encumbrance against

17  such accommodations and facilities, or use rights therein,

18  shall be made subject to a nondisturbance and notice to

19  creditors instrument as described in this section. No transfer

20  pursuant to this sub-subparagraph shall become effective until

21  the trustee accepts such transfer and the responsibilities set

22  forth herein. A trust established pursuant to this

23  sub-subparagraph shall comply with the following provisions:

24         (I)  The trustee shall be an individual or a business

25  entity authorized and qualified to conduct trust business in

26  this state. Any corporation authorized to do business in this

27  state may act as trustee in connection with a timeshare plan

28  pursuant to this chapter. The trustee must be independent from

29  any developer or managing entity of the timeshare plan or any

30  interestholder of any accommodation or facility of such plan.

31

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  1         (II)  The trust shall be irrevocable so long as any

  2  purchaser has a right to occupy any portion of the timeshare

  3  property pursuant to the timeshare plan.

  4         (III)  The trustee shall not convey, hypothecate,

  5  mortgage, assign, lease, or otherwise transfer or encumber in

  6  any fashion any interest in or portion of the timeshare

  7  property with respect to which any purchaser has a right of

  8  use or occupancy unless the timeshare plan is terminated

  9  pursuant to the timeshare instrument, or such conveyance,

10  hypothecation, mortgage, assignment, lease, transfer, or

11  encumbrance is approved by a vote of two-thirds of all voting

12  interests of the timeshare plan and such decision is declared

13  by a court of competent jurisdiction to be in the best

14  interests of the purchasers of the timeshare plan. The trustee

15  shall notify the division in writing within 10 days of

16  receiving notice of the filing of any petition relating to

17  obtaining such a court order. The division shall have standing

18  to advise the court of the division's interpretation of the

19  statute as it relates to the petition.

20         (IV)  All purchasers of the timeshare plan or the

21  owners' association of the timeshare plan shall be the express

22  beneficiaries of the trust. The trustee shall act as a

23  fiduciary to the beneficiaries of the trust. The personal

24  liability of the trustee shall be governed by s. 737.306. The

25  agreement establishing the trust shall set forth the duties of

26  the trustee. The trustee shall be required to furnish promptly

27  to the division upon request a copy of the complete list of

28  the names and addresses of the owners in the timeshare plan

29  and a copy of any other books and records of the timeshare

30  plan required to be maintained pursuant to s. 721.13 that are

31  in the possession, custody, or control of the trustee. All

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  1  expenses reasonably incurred by the trustee in the performance

  2  of its duties, together with any reasonable compensation of

  3  the trustee, shall be common expenses of the timeshare plan.

  4         (V)  The trustee shall not resign upon less than 90

  5  days prior written notice to the managing entity and the

  6  division. No resignation shall become effective until a

  7  substitute trustee, approved by the division, is appointed by

  8  the managing entity and accepts the appointment.

  9         (VI)  The documents establishing the trust arrangement

10  shall constitute a part of the timeshare instrument.

11         (VII)  For trusts holding property in a timeshare plan

12  located outside this state, the trust holding such property

13  shall be deemed in compliance with the requirements of this

14  subparagraph if such trust is authorized and qualified to

15  conduct trust business under the laws of such jurisdiction and

16  the agreement or law governing such trust arrangement provides

17  substantially similar protections for the purchaser as are

18  required in this subparagraph for trusts holding property in a

19  timeshare plan in this state.

20         (VIII)  The trustee shall have appointed a registered

21  agent in this state for service of process. In the event such

22  a registered agent is not appointed, service of process may be

23  served pursuant to s. 721.265.

24         4.  If the developer has previously provided a

25  certified copy of any document required by this paragraph

26  section, she or he may for all subsequent disbursements

27  substitute a true and correct copy of the certified copy,

28  provided no changes to the document have been made or are

29  required to be made.

30

31

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  1         (3)  The nondisturbance and notice to creditors

  2  instrument, when required, shall be executed by each

  3  interestholder.  The instrument shall state that:

  4         (a)  If the party seeking enforcement is not in default

  5  of its obligations, the instrument may be enforced by both the

  6  seller and any purchaser of the timeshare plan;

  7         (b)  The instrument shall be effective as between the

  8  timeshare purchaser and interestholder despite any rejection

  9  or cancellation of the contract between the timeshare

10  purchaser and developer as a result of bankruptcy proceedings

11  of the developer; and

12         (c)  So long as the interestholder has any interest in

13  the accommodations, facilities, or plan, the interestholder

14  will fully honor all the rights of the timeshare purchasers in

15  and to the timeshare plan, will honor the purchasers' right to

16  cancel their contracts and receive appropriate refunds, and

17  will comply with all other requirements of this chapter and

18  rules promulgated hereunder.

19

20  The instrument shall contain language sufficient to provide

21  subsequent creditors of the developer and interestholders with

22  notice of the existence of the timeshare plan and of the

23  rights of purchasers and shall serve to protect the interest

24  of the timeshare purchasers from any claims of subsequent

25  creditors.  A copy of the recorded nondisturbance and notice

26  to creditors instrument, when required, shall be provided to

27  each timeshare purchaser at the time the purchase contract is

28  executed.

29         (4)  In lieu of any escrow provisions required by this

30  act, the director of the division shall have the discretion to

31  permit deposit of the funds or other property in an escrow

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  1  account as required by the jurisdiction in which the sale took

  2  place.

  3         (5)(a)  In lieu of any escrows required by this

  4  section, the director of the division shall have the

  5  discretion to accept other assurances, including, but not

  6  limited to, a surety bond issued by a company authorized and

  7  licensed to do business in this state as surety or an

  8  irrevocable letter of credit in an amount equal to the escrow

  9  requirements of this section.

10         (b)  Notwithstanding anything in chapter 718 or chapter

11  719 to the contrary, the director of the division shall have

12  the discretion to accept other assurances pursuant to

13  paragraph (a) in lieu of any requirement that completion of

14  construction of one or more accommodations or facilities of a

15  timeshare plan be accomplished prior to closing.

16         (6)  An escrow agent holding funds escrowed pursuant to

17  this section may invest such escrowed funds in securities of

18  the United States Government, or any agency thereof, or in

19  savings or time deposits in institutions insured by an agency

20  of the United States Government.  The right to receive the

21  interest generated by any such investments shall be paid to

22  the party to whom the escrowed funds or property are paid

23  unless otherwise specified by contract.

24         (7)  Each escrow agent shall maintain separate books

25  and records for each timeshare plan and shall maintain such

26  books and records in accordance with good accounting

27  practices.

28         (8)  An escrow agent holding escrowed funds pursuant to

29  this chapter that have not been claimed for a period of 5

30  years after the date of deposit shall make at least one

31  reasonable attempt to deliver such unclaimed funds to the

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  1  purchaser who submitted such funds to escrow. In making such

  2  attempt, an escrow agent is entitled to rely on a purchaser's

  3  last known address as set forth in the books and records of

  4  the escrow agent and is not required to conduct any further

  5  search for the purchaser. If an escrow agent's attempt to

  6  deliver unclaimed funds to any purchaser is unsuccessful, the

  7  escrow agent may deliver such unclaimed funds to the division

  8  and the division shall deposit such unclaimed funds in the

  9  Division of Florida Land Sales, Condominiums, and Mobile Homes

10  Trust Fund, 30 days after giving notice in a publication of

11  general circulation in the county in which the timeshare

12  property containing the purchaser's timeshare interest is

13  located. The purchaser may claim the same at any time prior to

14  the delivery of such funds to the division. After delivery of

15  such funds to the division, the purchaser shall have no more

16  rights to the unclaimed funds. The escrow agent shall not be

17  liable for any claims from any party arising out of the escrow

18  agent's delivery of the unclaimed funds to the division

19  pursuant to this section.

20         (9)  For each transfer of the legal title to a

21  timeshare estate, the developer shall deliver an instrument

22  evidencing such transfer to the purchaser or to the clerk of

23  the court for recording.

24         (10)(8)  Any developer, seller, or escrow agent who

25  intentionally fails to comply with the provisions of this

26  section concerning the establishment of an escrow account,

27  deposits of funds into escrow, and withdrawal therefrom is

28  guilty of a felony of the third degree, punishable as provided

29  in s. 775.082, s. 775.083, or s. 775.084, or the successor

30  thereof. The failure to establish an escrow account or to

31  place funds therein as required in this section is prima facie

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  1  evidence of an intentional and purposeful violation of this

  2  section.

  3         Section 15.  Section 721.09, Florida Statutes, is

  4  amended to read:

  5         721.09  Reservation agreements; escrows.--

  6         (1)(a)  Prior to filing the registered public offering

  7  statement with the division, a seller shall not offer a

  8  timeshare plan for sale but may accept reservation deposits

  9  and advertise the reservation deposit program upon approval by

10  the division of a fully executed escrow agreement and

11  reservation agreement properly filed with the division.

12         (b)  Reservations shall not be taken on a timeshare

13  plan unless the seller has an ownership interest, or leasehold

14  interest, or legal option to purchase or lease of a duration

15  at least equal to the duration of the proposed timeshare plan,

16  in the land upon which the timeshare plan is to be developed.

17         (c)  If the timeshare plan subject to the reservation

18  agreement has not been filed with the division under s.

19  721.07(5) or s. 721.55 within 180 90 days after the date the

20  division approves the reservation agreement filing, the seller

21  must immediately cancel all outstanding reservation

22  agreements, refund all escrowed funds to prospective

23  purchasers, and discontinue accepting reservation deposits or

24  advertising the availability of reservation agreements.

25         (d)  A seller who has filed a reservation agreement and

26  an escrow agreement under this section may advertise the

27  reservation agreement program if the advertising material

28  meets the following requirements:

29         1.  The seller complies with the provisions of s.

30  721.11 with respect to such advertising material.

31

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  1         2.  The advertising material is limited to a general

  2  description of the proposed timeshare plan, including, but not

  3  limited to, a general description of the type, number, and

  4  size of accommodations and facilities and the name of the

  5  proposed timeshare plan.

  6         3.  The advertising material contains a statement that

  7  the advertising material is being distributed in connection

  8  with an approved reservation agreement filing only and that

  9  the seller cannot offer an interest in the timeshare plan for

10  sale until a registered public offering statement has been

11  filed with the division under this chapter.

12         (2)  Each executed reservation agreement shall be

13  signed by the developer and shall contain the following:

14         (a)  A statement that the escrow agent will grant a

15  prospective purchaser an immediate, unqualified refund of the

16  reservation deposit upon the written request of either the

17  purchaser or the seller directed to the escrow agent.

18         (b)  A statement that the escrow agent may not

19  otherwise release moneys unless a contract is signed by the

20  purchaser, authorizing the transfer of the escrowed

21  reservation deposit as a deposit on the purchase price.  Such

22  deposit shall then be subject to the requirements of s.

23  721.08.

24         (c)  A statement of the obligation of the developer to

25  file a registered public offering statement with the division

26  prior to entering into binding contracts.

27         (d)  A statement of the right of the purchaser to

28  receive the purchaser public offering statement required by

29  this chapter.

30         (e)  The name and address of the escrow agent and a

31  statement that the escrow agent will provide a receipt.

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  1         (f)  A statement that the seller assures that the

  2  purchase price represented in or pursuant to the reservation

  3  agreement will be the price in the contract for the purchase

  4  or that the price represented may be exceeded within a stated

  5  amount or percentage or a statement that no assurance is given

  6  as to the price in the contract for purchase.

  7         (3)(a)  The total amount paid for a reservation shall

  8  be deposited into a reservation escrow account.

  9         (b)  An escrow agent shall maintain the accounts called

10  for in this section only in such a manner as to be under the

11  direct supervision and control of the escrow agent.

12         (c)  The escrow agent may invest the escrowed funds in

13  securities of the United States Government, or any agency

14  thereof, or in savings or time deposits in institutions

15  insured by an agency of the United States Government. The

16  interest generated by any such investments shall be payable to

17  the party entitled to receive the escrowed funds or property.

18         (d)  The escrowed funds shall at all reasonable times

19  be available for withdrawal in full by the escrow agent.

20         (e)  Each escrow agent shall maintain separate books

21  and records for each timeshare plan and shall maintain such

22  books and records in accordance with good accounting

23  practices.

24         (f)  Any seller or escrow agent who intentionally fails

25  to comply with the provisions of this section regarding

26  deposit of funds in escrow and withdrawal therefrom is guilty

27  of a felony of the third degree, punishable as provided in s.

28  775.082, s. 775.083, or s. 775.084, or the successor of any of

29  such sections.  The failure to establish an escrow account or

30  to place funds therein as required in this section is prima

31

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  1  facie evidence of an intentional and purposeful violation of

  2  this section.

  3         Section 16.  Section 721.10, Florida Statutes, is

  4  amended to read:

  5         721.10  Cancellation.--

  6         (1)  A purchaser has the right to cancel the contract

  7  until midnight of the 10th calendar day following whichever of

  8  the following days occurs later:

  9         (a)  The execution date; or

10         (b)  The day on which the purchaser received the last

11  of all documents required to be provided to him or her,

12  including the notice required by s. 721.07(2)(d)2., if

13  applicable.

14

15  This right of cancellation may not be waived by any purchaser

16  or by any other person on behalf of the purchaser.

17  Furthermore, no closing may occur until the cancellation

18  period of the timeshare purchaser has expired.  Any attempt to

19  obtain a waiver of the cancellation right of the timeshare

20  purchaser, or to hold a closing prior to the expiration of the

21  cancellation period, is unlawful and such closing is voidable

22  at the option of the purchaser for a period of 1 year after

23  the expiration of the cancellation period.  However, nothing

24  in this section precludes the execution of documents in

25  advance of closing for delivery after expiration of the

26  cancellation period.

27         (2)  Any notice of cancellation shall be considered

28  given on the date postmarked if mailed, or when transmitted

29  from the place of origin if telegraphed, so long as the notice

30  is actually received by the developer or escrow agent. If

31  given by means of a writing transmitted other than by mail or

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  1  telegraph, the notice of cancellation shall be considered

  2  given at the time of delivery at the place of business of the

  3  developer.

  4         (3)  In the event of a timely preclosing cancellation,

  5  or in the event the plan is one in which timeshare licenses

  6  are sold and at any time the accommodations or facilities are

  7  no longer available, the developer shall honor the right of

  8  any purchaser to cancel the contract which granted the

  9  timeshare purchaser rights in and to the plan.  Upon such

10  cancellation, the developer shall refund to the purchaser the

11  total amount of all payments made by the purchaser under the

12  contract, reduced by the proportion of any contract benefits

13  the purchaser has actually received under the contract prior

14  to the effective date of the cancellation, as required by s.

15  721.06 which exceed the proportionate amount of benefits made

16  available under the plan, using the number of years of the

17  plan as portrayed in the timeshare instrument as the base for

18  plans of specific and limited duration, or using the fair

19  market rental value of such benefits for plans without

20  specific or limited duration. Such refund shall be made within

21  20 days of demand therefor by the purchaser or within 5 days

22  after receipt of funds from the purchaser's cleared check,

23  whichever is later. For purposes of this subsection, the term

24  "benefits made available under the plan" shall not include

25  public offering statements or other documentation or materials

26  that must be furnished to a purchaser pursuant to statute or

27  rule.

28         Section 17.  Section 721.11, Florida Statutes, is

29  amended to read:

30         721.11  Advertising materials; oral statements.--

31

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  1         (1)(a)  All Any advertising material must relating to a

  2  timeshare plan, including prize and gift promotional offers,

  3  shall be filed with the division by the developer 10 days

  4  prior to use. At the request of the developer, the division

  5  shall review the advertising material and notify the developer

  6  of any deficiencies within 10 days after the filing. If the

  7  developer corrects the deficiencies or if there are no

  8  deficiencies, the division shall notify the developer of its

  9  approval of the advertising materials. Notwithstanding

10  anything to the contrary contained in this subsection, so long

11  as the developer uses advertising materials approved by the

12  division, following the developer's request for a review, the

13  developer shall not be liable for any violation of this

14  section or s. 721.111 with respect to such advertising

15  materials.

16         (b)  All such advertising materials must be

17  substantially in compliance with this chapter and in full

18  compliance with the mandatory provisions of this chapter.  In

19  the event that any such material is not in substantial

20  compliance with this chapter, the division may file

21  administrative charges and an injunction against the developer

22  and exact such penalties or remedies as provided in s. 721.26,

23  or may require the developer to correct any the deficiency in

24  the materials by notifying the developer of the deficiency.;

25  and, If the developer fails to correct the deficiency after

26  such notification, the division may file administrative

27  charges against the developer and exact such penalties or

28  remedies as provided in s. 721.26.

29         (b)  The director of the division shall have the

30  discretion to accept other assurances from the developer to

31  assure the developer will comply with the provisions of this

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  1  chapter regarding all advertising materials, including prize

  2  and gift promotional offers, used by the developer.  Such

  3  assurances shall include, but not be limited to, a surety bond

  4  issued by a company authorized and licensed to do business in

  5  this state as surety or an irrevocable letter of credit in the

  6  amount of $10,000.  Upon the acceptance by the director of

  7  such assurances from the developer, the developer shall be

  8  entitled to file and use advertising materials, including

  9  prize and gift promotional offers, in accordance with

10  paragraph (c).  In the event the developer intends to file and

11  use any lodging or vacation certificates as advertising

12  material pursuant to paragraph (c), the director shall have

13  the discretion to increase the assurances to an amount deemed

14  sufficient by the director to fully secure the performance of

15  the certificate promoter, or to provide refunds to

16  certificateholders in the event of nonperformance by the

17  certificate promoter.  The purpose of such other assurances,

18  if accepted by the director, shall be to provide the division

19  with a source of funds to secure the developer's promise in

20  any prize and gift promotional offer to deliver the prize or

21  gift represented in such offer to any prospective purchaser

22  not receiving the represented prize or gift.

23         (c)  A developer from whom other assurances have been

24  accepted by the director of the division pursuant to paragraph

25  (b) shall file all advertising material, including prize and

26  gift promotional offers with the division at the time of use.

27  All such advertising materials must be substantially in

28  compliance with this chapter and in full compliance with the

29  mandatory provisions of this chapter.  In the event that any

30  such material is not in compliance with this chapter, the

31  division may require the developer to correct the deficiency

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  1  by notifying the developer of the deficiency; and, if the

  2  developer fails to correct the deficiency after receiving such

  3  notice, the division may file administrative charges against

  4  the developer and exact such penalties or remedies as provided

  5  in s. 721.26.  So long as the developer prepares and

  6  disseminates the advertising material in good faith, the

  7  division shall not penalize the developer for any deficiencies

  8  which the division determines to exist in any advertising

  9  material which the developer uses prior to receipt of a notice

10  of deficiency from the division regarding the advertising

11  material.  For purposes of this section, "good faith" shall

12  mean that the developer has reasonably attempted to comply

13  with the provisions of this chapter relating to advertising

14  material, and that any deficiency determined to exist by the

15  division is not material and adverse to a prospective

16  purchaser.

17         (2)  The term "advertising material" includes:

18         (a)  Any promotional brochure, pamphlet, advertisement,

19  or other material to be disseminated to the public in

20  connection with the sale of a timeshare plan.

21         (b)  A transcript of Any radio or television

22  advertisement.

23         (c)  Any lodging or vacation certificate.

24         (d)  A transcript of Any standard oral sales

25  presentation.

26         (e)  Any billboard or other sign posted on or off the

27  premises, except that such billboard or sign shall not be

28  required to contain the disclosure set forth in paragraph

29  (5)(a) or paragraph (5)(b), unless it relates to a prize and

30  gift promotional offer.  For purposes of this section, a

31  "sign" shall mean advertising which is affixed to real or

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  1  personal property and which is not disseminated by other than

  2  visual means to prospective purchasers.

  3         (f)  Any photograph, drawing, or artist's

  4  representation of accommodations or facilities of a timeshare

  5  plan which exists or which will or may exist.

  6         (g)  Any paid publication relating to a timeshare plan

  7  which exists or which will or may exist.

  8         (h)  Any other promotional device used, or statement

  9  related to a timeshare plan, including any prize and gift

10  promotional offer as described in s. 721.111.

11         (3)  The term "advertising material" does not include:

12         (a)  Any stockholder communication such as an annual

13  report or interim financial report, proxy material,

14  registration statement, securities prospectus, registration,

15  property report, or other material required to be delivered to

16  a prospective purchaser by an agency of any other state or the

17  Federal Government.

18         (b)  Any communication addressed to and relating to the

19  account of any person who has previously executed a contract

20  for the sale and purchase of a timeshare interest period in

21  the timeshare plan to which the communication relates, except

22  when directed to the sale of timeshare interests in a

23  different timeshare plan or in a different component site of a

24  multisite timeshare plan subject to part II additional

25  timeshare periods.

26         (c)  Any audio, written, or visual publication or

27  material relating to an exchange company or exchange program.

28         (d)  Any audio, written, or visual publication or

29  material relating to the promotion of the availability of any

30  accommodations or facilities, or both, for transient rental,

31  including any arrangement governed by part XI of chapter 559,

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  1  so long as a mandatory tour of a timeshare plan or attendance

  2  at a mandatory sales presentation is not a term or condition

  3  of the availability of such accommodations or facilities, or

  4  both, and so long as the failure of any transient renter to

  5  take a tour of a timeshare plan or attend a sales presentation

  6  does not result in the transient renter receiving less than

  7  what was promised to the transient renter in such materials

  8  any reduction in the level of services which would otherwise

  9  be available to such transient renter.

10         (e)  Any oral or written statement disseminated by a

11  developer to broadcast or print media, other than paid

12  advertising or promotional material, regarding plans for the

13  acquisition or development of timeshare property, including

14  possible accommodations or facilities of a timeshare plan

15  pursuant to subsection (7) or subsection (8), or possible

16  component sites of a multisite timeshare plan pursuant to

17  subsection (9) s. 721.553(1).  However, any rebroadcast or any

18  other dissemination of such oral statements to a prospective

19  purchaser by a seller in any manner, or any distribution of

20  copies of newspaper or magazine articles, press releases, or

21  any other dissemination of such written statements to a

22  prospective purchaser by a seller in any manner, shall

23  constitute advertising material.

24         (f)  Any promotional materials relating to a timeshare

25  plan that are not directed specifically at residents of this

26  state, regardless of whether such materials relate to

27  accommodations or facilities located in this state, provided

28  that such materials do not contain any statements that would

29  be in violation of subsection (4). For purposes of this

30  paragraph, a rebuttable presumption shall exist that

31  promotional materials are not directed specifically at

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  1  residents of this state if the materials include a disclaimer

  2  in substantially the following form:

  3

  4  This offer is not directed to residents in any state [or the

  5  offer is void in any states] in which a registration of the

  6  timeshare plan is required but in which registration

  7  requirements have not yet been met.

  8

  9         (g)  Any materials delivered to a purchaser after the

10  purchase contract is executed that are not delivered for the

11  purpose of soliciting the sale of a timeshare interest in a

12  different timeshare plan or a different component site in a

13  multisite timeshare plan subject to part II, provided that

14  such materials do not contain any statements that would be in

15  violation of subsection (4).

16         (h)  Any materials exclusively shown, displayed, or

17  presented in a sales center or during a sales presentation

18  provided that such materials do not contain any statements

19  that would be in violation of subsection (4) and that any

20  description of any facility that is not required to be built

21  or that has not been completed shall be conspicuously labeled

22  as "NEED NOT BE BUILT," "PROPOSED," or "UNDER CONSTRUCTION."

23  If the facility is labeled "NEED NOT BE BUILT" or "PROPOSED,"

24  the seller may indicate the estimated date that such facility

25  will be made part of the timeshare plan. If the facility is

26  labeled "UNDER CONSTRUCTION," the estimated date of completion

27  must be included.

28         (4)  No advertising or oral statement made by any

29  seller shall:

30

31

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  1         (a)  Misrepresent a fact or create a false or

  2  misleading impression regarding the timeshare plan or

  3  promotion thereof.

  4         (b)  Make a prediction of specific or immediate

  5  increases in the price or value of timeshare interests

  6  periods.

  7         (c)  Contain a statement concerning future price

  8  increases by a the seller which are nonspecific or not bona

  9  fide.

10         (d)  Contain any asterisk or other reference symbol as

11  a means of contradicting or substantially changing any

12  previously made statement or as a means of obscuring a

13  material fact.

14         (e)  Describe any facility improvement to the timeshare

15  plan that is not required to be built or that is uncompleted

16  unless the improvement is conspicuously labeled as "NEED NOT

17  BE BUILT," "PROPOSED," or "UNDER CONSTRUCTION." If the

18  facility is labeled "NEED NOT BE BUILT" or "PROPOSED," the

19  seller may indicate the estimated date that such facility will

20  be made part of the timeshare plan. If the facility is labeled

21  "UNDER CONSTRUCTION," the estimated date of completion must be

22  included with the date of promised completion clearly

23  indicated.

24         (f)  Misrepresent the size, nature, extent, qualities,

25  or characteristics of the offered accommodations or

26  facilities.

27         (g)  Misrepresent the amount or period of time during

28  which the accommodations or facilities will be available to

29  any purchaser.

30         (h)  Misrepresent the nature or extent of any

31  incidental benefit.

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  1         (i)  Make any misleading or deceptive representation

  2  with respect to the contents of the public offering statement

  3  and the contract or the rights, privileges, benefits, or

  4  obligations of the purchaser under the contract or this

  5  chapter.

  6         (j)  Misrepresent the conditions under which a

  7  purchaser may exchange the right to use accommodations or

  8  facilities in one location for the right to use accommodations

  9  or facilities in another location.

10         (k)  Misrepresent the availability of a resale or

11  rental program offered by or on behalf of the developer.

12         (l)  Contain an offer or inducement to purchase which

13  purports to be limited as to quantity or restricted as to time

14  unless the numerical quantity or time limit applicable to the

15  offer or inducement is clearly stated.

16         (m)  Imply that a facility is available for the

17  exclusive use of purchasers if the facility will actually be

18  shared by others or by the general public.

19         (n)  Purport to have resulted from a referral unless

20  the name of the person making the referral can be produced

21  upon demand of the division.

22         (o)  Misrepresent the source of the advertising or

23  statement by leading a prospective purchaser to believe that

24  the advertising material is mailed by a governmental or

25  official agency, credit bureau, bank, or attorney, if that is

26  not the case.

27         (p)  Misrepresent the value of any prize, gift, or

28  other item to be awarded in connection with any prize and gift

29  promotional offer, as described in s. 721.111, or any

30  incidental benefit.

31

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  1         (5)(a)  No written advertising material, including any

  2  lodging certificate, gift award, premium, discount, or display

  3  booth, may be utilized without each prospective purchaser

  4  being provided a disclosure one of the following disclosures

  5  in conspicuous type in substantially the following form:  This

  6  advertising material is being used for the purpose of

  7  soliciting sales of timeshare interests periods; or This

  8  advertising material is being used for the purpose of

  9  soliciting sales of a vacation (or vacation membership or

10  vacation ownership) plan. The division shall have the

11  discretion to approve the use of an alternate disclosure. The

12  conspicuous disclosure required in this subsection shall only

13  be required to be given to each prospective purchaser on one

14  piece of advertising for each advertising promotion or

15  marketing campaign, provided that if the promotion or campaign

16  contains terms and conditions, the conspicuous disclosure

17  required in this subsection shall be included on any piece

18  containing such terms and conditions. The conspicuous

19  disclosure required in this subsection shall be provided

20  before the purchaser is required to take any affirmative

21  action pursuant to the promotion. If the advertising material

22  containing the conspicuous disclosure is a display booth, the

23  disclosure required by this subsection must be conspicuously

24  displayed on or within the display booth. If a filing of a

25  timeshare plan containing accommodations and facilities

26  located outside of this state has been approved by the situs

27  jurisdiction and by the division, an alternate disclosure

28  consistent with that required by the situs jurisdiction, or by

29  such other jurisdiction or jurisdictions where the advertising

30  material will be used, may be utilized with the prior approval

31  of the director of the division so long as the alternate

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  1  disclosure is substantially similar to that required by this

  2  paragraph.

  3         (b)  This subsection does not apply to any advertising

  4  material which involves a project or development which

  5  includes sales of real estate or other commodities or services

  6  in addition to timeshare interests periods, including, but not

  7  limited to, lot sales, condominium or home sales, or the

  8  rental of resort accommodations. However, if the sale of

  9  timeshare interests periods, as compared with such other sales

10  or rentals, is the primary purpose of the advertising

11  material, a disclosure shall be made in conspicuous type that:

12  This advertising material is being used for the purpose of

13  soliciting the sale of ...(Disclosure shall include timeshare

14  interests periods and may include other types of sales)....

15  Factors which the division may consider in determining whether

16  the primary purpose of the advertising material is the sale of

17  timeshare interests periods include:

18         1.  The retail value of the timeshare interests periods

19  compared to the retail value of the other real estate,

20  commodities, or services being offered in the advertising

21  material.

22         2.  The amount of space devoted to the timeshare

23  portion of the project in the advertising material compared to

24  the amount of space devoted to other portions of the project,

25  including, but not limited to, printed material, photographs,

26  or drawings.

27         (6)  Failure to provide cancellation rights or

28  disclosures as required by this subsection in connection with

29  the sale of a regulated short-term product constitutes

30  misrepresentation in accordance with paragraph (4)(a). Any

31  agreement relating to the sale of a regulated short-term

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  1  product must be regulated as advertising material and is

  2  subject to the following:

  3         (a)  A standard form of any agreement relating to the

  4  sale of a regulated short-term product may must be filed 10

  5  days prior to use with the division as advertising material

  6  under this section. Each seller shall furnish each purchaser

  7  of a regulated short-term product with a fully completed and

  8  executed copy of the agreement at the time of execution.

  9         (b)  A purchaser of a regulated short-term product has

10  the right to cancel the agreement until midnight of the 10th

11  calendar day following the execution date of the agreement.

12  The right of cancellation may not be waived by the prospective

13  purchaser or by any other person on behalf of the prospective

14  purchaser. Notice of cancellation must be given in the same

15  manner prescribed for giving notice of cancellation under s.

16  721.10(2). If the prospective purchaser gives a valid notice

17  of cancellation or is otherwise entitled to cancel the sale,

18  the funds or property received from or on behalf of the

19  prospective purchaser, or the proceeds thereof, must be

20  returned to the prospective purchaser. Such refund must be

21  made in the same manner prescribed for refunds under s.

22  721.10.

23         (c)  An agreement for purchase of a regulated

24  short-term product must contain substantially the following

25  statements, given at the time the agreement is made:

26         1.  A statement that if the purchaser of a regulated

27  short-term product cancels the agreement during the 10-day

28  cancellation period, the seller will refund to the prospective

29  purchaser the total amount of all payments made by the

30  prospective purchaser under the agreement, reduced by the

31  proportion of any benefits the prospective purchaser has

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  1  actually received under the agreement prior to the effective

  2  date of the cancellation; and

  3         2.  A statement that the specific value for each

  4  benefit received by the prospective purchaser under the

  5  agreement will be as agreed to between the prospective

  6  purchaser and the seller.

  7         (d)  An agreement for purchase of a regulated

  8  short-term product must contain substantially the following

  9  statements in conspicuous type immediately above the space

10  reserved in the agreement for the signature of the prospective

11  purchaser:

12

13         You may cancel this agreement without any penalty or

14  obligation within 10 calendar days [or specify a longer time

15  period represented to the purchaser] after the date you sign

16  this agreement. If you decide to cancel this agreement, you

17  must notify the seller in writing of your intent to cancel.

18  Your notice of cancellation is effective upon the date sent

19  and must be sent to ...(Name of Seller)... at ...(Address of

20  Seller).... Any attempt to obtain a waiver of your

21  cancellation right is unlawful.

22         If you execute a purchase contract for a timeshare

23  interest period, section 721.08, Florida Statutes (escrow

24  accounts), will apply to any funds or other property received

25  from you or on your behalf. Section 721.10, Florida Statutes

26  (cancellation), will apply to the purchase and you will not be

27  entitled to a cancellation refund of the short-term product

28  [or specify an alternate refund policy under these

29  circumstances].

30

31

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  1         (e)  If the seller provides the purchaser with the

  2  right to cancel the purchase of a regulated short-term product

  3  at any time up to 7 days prior to the purchaser's reserved use

  4  of the accommodations, but in no event less than 10 days, and

  5  if the seller refunds the total amount of all payments made by

  6  the purchaser reduced by the proportion of any benefits the

  7  purchaser has actually received prior to the effective date of

  8  the cancellation, the specific value of which has been agreed

  9  to between the purchaser and the seller, the short-term

10  product offer shall be exempt from the requirements of

11  paragraphs (b), (c), and (d). An agreement relating to the

12  sale of the regulated short-term product made pursuant to this

13  paragraph must contain a statement setting forth the

14  cancellation and refund rights of the prospective purchaser in

15  a manner that is consistent with this section and s. 721.10,

16  including a description of the length of the cancellation

17  right, a statement that the purchaser's intent to cancel must

18  be in writing and sent to the seller at a specified address, a

19  statement that the notice of cancellation is effective upon

20  the date sent, and a statement that any attempt to waive the

21  cancellation right is unlawful. The right of cancellation

22  provided to the purchaser pursuant to this paragraph may not

23  be waived by the prospective purchaser or by any other person

24  on behalf of the prospective purchaser. Notice of cancellation

25  must be given in the same manner prescribed for giving notice

26  of cancellation pursuant to s. 721.10(2). If the prospective

27  purchaser gives a valid notice of cancellation, or is

28  otherwise entitled to cancel the sale, the funds or property

29  received from or on behalf of the prospective purchaser, or

30  the proceeds thereof, shall be returned to the prospective

31

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  1  purchaser. Such refund shall be made in the manner prescribed

  2  for refunds under s. 721.10.

  3         (7)  Notwithstanding the provisions of s. 721.05(6)(b),

  4  a seller may portray possible accommodations or facilities to

  5  prospective purchasers in advertising material, or a purchaser

  6  public offering statement, without such accommodations or

  7  facilities being available for use by purchasers so long as

  8  the advertising material or purchaser public offering

  9  statement complies with the provisions of subsection (4).

10         (8)  Notwithstanding the provisions of s. 721.05(6)(b),

11  a developer may portray possible accommodations or facilities

12  to prospective purchasers by disseminating oral or written

13  statements regarding same to broadcast or print media with no

14  obligation on the developer's part to actually construct such

15  accommodations or facilities or to file such accommodations or

16  facilities with the division, but only so long as such oral or

17  written statements are not considered advertising material

18  pursuant to paragraph (3)(e).

19         (9)  Notwithstanding the provisions of s. 721.05(6)(b),

20  a seller of a multisite timeshare plan may portray a possible

21  component site to prospective purchasers with no

22  accommodations or facilities located at such component site

23  being available for use by purchasers so long as the seller

24  satisfies the following requirements:

25         (a)  A developer of a multisite timeshare plan may

26  disseminate oral or written statements to broadcast or print

27  media describing a possible component site with no obligation

28  on the developer's part to actually add such component site to

29  the multisite timeshare plan or to amend the developer's

30  filing with the division, but only so long as such oral or

31

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  1  written statements are not considered advertising material

  2  pursuant to paragraph (3)(e).

  3         (b)  A seller may make representations to purchasers in

  4  advertising material or in a purchaser public offering

  5  statement regarding the possible accommodations and facilities

  6  of a possible component site without such accommodations or

  7  facilities being available for use by purchasers so long as

  8  the advertising material or purchaser public offering

  9  statement complies with the provisions of subsection (4).

10         (c)  In the event a seller makes any of the

11  representations permitted by paragraph (b), the purchase

12  agreement must contain the following conspicuous disclosure

13  unless and until such time as the developer has committed

14  itself in the timeshare instrument to adding the possible

15  component site to the multisite timeshare plan, at which time

16  the seller may portray the component site pursuant to the

17  timeshare instrument without restriction:

18

19  [Description of possible component site] is only a possible

20  component site which may never be added to the multisite

21  timeshare plan (or multisite vacation ownership plan or

22  multisite vacation plan or vacation club). Do not purchase an

23  interest in the multisite timeshare plan (or multisite

24  vacation ownership plan or multisite vacation plan or vacation

25  club) in reliance upon the addition of this component site.

26

27         (d)  Notwithstanding anything contained in this chapter

28  to the contrary, a developer or managing entity may

29  communicate with existing purchasers regarding possible

30  component sites without restriction, so long as all oral and

31

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  1  written statements made to existing purchasers pursuant to

  2  this subsection comply with the provisions of subsection (4).

  3         (e)  Any violation of this subsection by a developer,

  4  seller, or managing entity shall constitute a violation of

  5  this chapter. Any violation of this subsection with respect to

  6  a purchaser whose purchase has not yet closed shall be deemed

  7  to provide that purchaser with a new 10-day voidability

  8  period.

  9         Section 18.  Section 721.111, Florida Statutes, is

10  amended to read:

11         721.111  Prize and gift promotional offers.--

12         (1)  As used herein, the term "prize and gift

13  promotional offer" means any advertising material wherein a

14  prospective purchaser may receive goods or services other than

15  the timeshare plan itself, either free or at a discount,

16  including, but not limited to, the use of any prize, gift,

17  award, premium, or lodging or vacation certificate.

18         (2)  A game promotion, such as a contest of chance,

19  gift enterprise, or sweepstakes, in which the elements of

20  chance and prize are present may not be used in connection

21  with the offering or sale of timeshare interests periods,

22  except for drawings, as that term is defined in s.

23  849.0935(1)(a), in which no more than 10 prizes are promoted

24  and in which all promoted prizes are actually awarded.  All

25  such drawings must meet all requirements of this chapter and

26  of ss. 849.092 and 849.094(1), (2), and (7).

27         (3)  Any prize, gift, or other item offered pursuant to

28  a prize and gift promotional offer must be delivered to the

29  prospective purchaser on the day she or he appears to claim

30  it, whether or not she or he purchases a timeshare interest

31  period.

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  1         (4)  A separate filing for each prize and gift

  2  promotional offer to be used in the sale of timeshare

  3  interests periods shall be made with the division pursuant to

  4  s. 721.11(1). The developer shall pay a $100 filing fee for

  5  each prize and gift promotional offer. One item of each prize

  6  or gift, except cash, must be made available for inspection by

  7  the division.

  8         (5)  Each filing of a prize and gift promotional offer

  9  with the division shall include, when applicable:

10         (a)  A copy of all advertising material to be used in

11  connection with the prize and gift promotional offer.

12         (b)  The name, address, and telephone number (including

13  area code) of the supplier or manufacturer from whom each type

14  or variety of prize, gift, or other item is obtained.

15         (c)  The manufacturer's model number or other

16  description of such item.

17         (d)  The information on which the developer relies in

18  determining the verifiable retail value, if the value is in

19  excess of $50.

20         (e)  The name, address, and telephone number (including

21  area code) of the promotional entity responsible for

22  overseeing and operating the prize and gift promotional offer.

23         (f)  The name and address of the registered agent in

24  this state of the promotional entity for service of process

25  purposes.

26         (g)  The number of anticipated recipients of each item

27  of advertising material related to the prize and gift

28  promotional offer.

29         (g)(h)  Full disclosure of all pertinent information

30  concerning the use of lodging or vacation certificates,

31  including the terms and conditions of the campaign and the

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  1  fact and extent of participation in such campaign by the

  2  developer.  The developer shall provide to the division, upon

  3  the request of the division, an affidavit, certification, or

  4  other reasonable evidence division may require reasonable

  5  assurances that the obligation incurred by a seller or the

  6  seller's agent in a lodging certificate program can be met.

  7         (6)  Each developer shall pay to the division a fee of

  8  $100 for the filing of each prize and gift promotional offer,

  9  at the time of filing. Those developers utilizing game

10  promotions in which the elements of chance and prize are

11  present shall pay an additional $400 fee at the time of filing

12  of the prize and gift promotional offer.  No additional fee

13  may be charged for the submission of corrected advertising

14  material related to a prize and gift promotional offer or for

15  the submission of additional material related to a prize and

16  gift promotional offer for which a prior filing has been made.

17         (6)(7)  All advertising material to be distributed in

18  connection with a prize and gift promotional offer shall

19  contain, in addition to the information required pursuant to

20  the provisions of s. 721.11, the following disclosures:

21         (a)  A description of the prize, gift, or other item

22  that the prospective purchaser will actually receive,

23  including, if the price is in excess of $50, the

24  manufacturer's suggested retail price or, if none is

25  available, the verifiable retail value. If the value is $50 or

26  less, the description shall contain a statement of such.

27         (b)  All rules, terms, requirements, and preconditions

28  which must be fulfilled or met before a prospective purchaser

29  may claim any prize, gift, or other item involved in the prize

30  and gift promotional plan, including whether the prospective

31

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  1  purchaser is required to attend a sales presentation in order

  2  to receive the prize, gift, or other item.

  3         (c)  The date upon which the offer expires.

  4         (d)  If the number of prizes, gifts, or other items to

  5  be awarded is limited, a statement of the number of items that

  6  will be awarded.

  7         (e)  The method by which prizes, gifts, or other items

  8  are to be awarded.

  9         (8)  All developers shall file with the division by

10  March 1st of each year the following information regarding

11  each prize and gift promotional offer used during the prior

12  calendar year:

13         (a)  The total number of each prize, gift, or other

14  item actually awarded or given away.

15         (b)  The name and address of each person who actually

16  received a prize, gift, or other item which had a verifiable

17  retail value or manufacturer's suggested retail price in

18  excess of $200. This regulation does not apply to recipients

19  of lodging or vacation certificates.

20         (7)(9)  All prizes, gifts, or other items represented

21  by the developer to be awarded in connection with any prize

22  and gift promotional offer shall be awarded by the date

23  referenced in the advertising material used in connection with

24  such offer.

25         Section 19.  Subsection (1) of section 721.12, Florida

26  Statutes, is amended to read:

27         721.12  Recordkeeping by seller.--Each seller of a

28  timeshare plan shall maintain among its business records the

29  following:

30         (1)  A copy of each contract for the sale of a

31  timeshare interest period, which contract has not been

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  1  canceled.  If a timeshare estate is being sold, the seller is

  2  required to retain a copy of the contract only until a deed of

  3  conveyance, agreement for deed, or lease is recorded in the

  4  office of the clerk of the circuit court in the county wherein

  5  the plan is located.

  6         Section 20.  Section 721.13, Florida Statutes, is

  7  amended to read:

  8         721.13  Management.--

  9         (1)(a)  For each Before the first sale of a timeshare

10  plan period, the developer shall create or provide for a

11  managing entity, which shall be either the developer, a

12  separate manager or management firm, or the board of

13  administration of an owners' association, or some combination

14  thereof. Any owners' association shall be created prior to the

15  recording of the timeshare instrument.

16         (b)1.  With respect to a timeshare plan which is also

17  regulated under chapter 718 or chapter 719, or which contains

18  a mandatory owners' association, the board of administration

19  of the association shall be considered the managing entity of

20  the timeshare plan.

21         2.  During any period of time in which such association

22  has entered into a contract with a manager or management firm

23  to provide some or all of the management services to the

24  timeshare plan, both the board of administration and the

25  manager or management firm shall be considered the managing

26  entity of the timeshare plan and shall be jointly and

27  severally responsible for the faithful discharge of the duties

28  of the managing entity.

29         3.  An owners' association which is the managing entity

30  of a timeshare plan that includes condominium units or

31  cooperative units shall not be considered a condominium

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  1  association pursuant to the provisions of chapter 718 or a

  2  cooperative association pursuant to the provisions of chapter

  3  719, unless such owners' association also operates the entire

  4  condominium pursuant to s. 718.111 or the entire cooperative

  5  pursuant to s. 719.104.

  6         (c)  With respect to any timeshare plan other than one

  7  described in paragraph (b), any developer shall be considered

  8  the managing entity of the timeshare plan unless and until

  9  such developer clearly provides in the timeshare instrument

10  that a different party will serve as managing entity, which

11  party has acknowledged in writing that it has accepted the

12  duties and obligations of serving as managing entity. In the

13  event such other party subsequently resigns or otherwise

14  ceases to perform its duties as managing entity, any developer

15  shall again be considered the managing entity until the

16  developer arranges for a new managing entity pursuant to this

17  paragraph.

18         (d)  In the event no one described in paragraph (b) or

19  paragraph (c) is operating and maintaining the timeshare plan,

20  anyone who operates or maintains the timeshare plan shall be

21  considered the managing entity of the timeshare plan.

22         (e)  Any managing entity performing community

23  association management must comply with part VIII of chapter

24  468.

25         (2)(a)  The managing entity shall act in the capacity

26  of a fiduciary to the purchasers of the timeshare plan. No

27  penalty imposed by the division pursuant to s. 721.26 against

28  any managing entity for breach of fiduciary duty shall be

29  assessed as a common expense of any timeshare plan.

30         (b)  The managing entity shall invest the operating and

31  reserve funds of the timeshare plan in accordance with s.

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  1  518.11(1); however, the managing entity shall give safety of

  2  capital greater weight than production of income. In no event

  3  shall the managing entity invest timeshare plan funds with a

  4  developer or with any entity that is not independent of any

  5  developer or any managing entity within the meaning of s.

  6  721.05(18), and in no event shall the managing entity invest

  7  timeshare plan funds in notes and mortgages related in any way

  8  to the timeshare plan.

  9         (3)  The duties of the managing entity include, but are

10  not limited to:

11         (a)  Management and maintenance of all accommodations

12  and facilities constituting the timeshare plan.

13         (b)  Collection of all assessments for common expenses.

14         (c)1.  Providing each year to all purchasers an

15  itemized annual budget which shall include all estimated

16  revenues and expenses. The budget shall be in the form

17  required by s. 721.07(5)(u)(x) and shall be the final budget

18  adopted by the managing entity for the current fiscal year.

19  The budget shall contain, as a footnote or otherwise, any

20  related party transaction disclosures or notes which appear in

21  the audited financial statements of the managing entity for

22  the previous budget year as required by paragraph (e). A copy

23  of the final budget shall be filed with the division within 30

24  days after the beginning of each fiscal year its adoption by

25  the managing entity together with a statement of the number of

26  periods of 7-day annual use availability that exist within the

27  timeshare plan, including those periods filed for sale by the

28  developer but not yet committed to the timeshare plan, for

29  which annual fees are required to be paid to the division

30  under s. 721.27.

31

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  1         2.  Notwithstanding anything contained in chapter 718

  2  or chapter 719 to the contrary, the board of administration of

  3  an owners' association which serves as the managing entity may

  4  from time to time reallocate reserves for deferred maintenance

  5  and capital expenditures required by s.

  6  721.07(5)(u)(x)3.a.(XI) from any deferred maintenance or

  7  capital expenditure reserve account to any other deferred

  8  maintenance or capital expenditure reserve account or accounts

  9  in its discretion without the consent of purchasers of the

10  timeshare plan.  Funds in any deferred maintenance or capital

11  expenditure reserve account may not be transferred to any

12  operating account without the consent of a majority of the

13  purchasers of the timeshare plan. The managing entity may from

14  time to time transfer excess funds in any operating account to

15  any deferred maintenance or capital expenditure reserve

16  account without the vote or approval of purchasers of the

17  timeshare plan.

18         (d)1.  Maintenance of all books and records concerning

19  the timeshare plan so that all such books and records are

20  reasonably available for inspection by any purchaser or the

21  authorized agent of such purchaser.  For purposes of this

22  subparagraph, the books and records of the timeshare plan

23  shall be considered "reasonably available" if copies of the

24  requested portions are delivered to the purchaser or the

25  purchaser's agent within 7 days of the date the managing

26  entity receives a written request for the records signed by

27  the purchaser.  The managing entity may charge the purchaser a

28  reasonable fee for copying the requested information not to

29  exceed 25 cents per page. However, any purchaser or agent of

30  such purchaser shall be permitted to personally inspect and

31  examine the books and records wherever located at any

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  1  reasonable time, under reasonable conditions, and under the

  2  supervision of the custodian of those records.  The custodian

  3  shall supply copies of the records where requested and upon

  4  payment of the copying fee. No fees other than those set forth

  5  in this section may be charged for the providing of,

  6  inspection, or examination of books and records. All books and

  7  financial records of the timeshare plan must be maintained in

  8  accordance with generally accepted accounting practices.

  9         2.  If the books and records of the timeshare plan are

10  not maintained on the premises of the accommodations and

11  facilities of the timeshare plan, the managing entity shall

12  inform the division in writing of the location of the books

13  and records and the name and address of the person who acts as

14  custodian of the books and records at that location.  In the

15  event that the location of the books and records changes, the

16  managing entity shall notify the division of the change in

17  location and the name and address of the new custodian within

18  30 days of the date the books and records are moved.  The

19  purchasers shall be notified of the location of the books and

20  records and the name and address of the custodian in the copy

21  of the annual budget provided to them pursuant to paragraph

22  (c).

23         3.  The division is authorized to adopt rules which

24  specify those items and matters that shall be included in the

25  books and records of the timeshare plan and which specify

26  procedures to be followed in requesting and delivering copies

27  of the books and records.

28         4.  Notwithstanding any provision of chapter 718 or

29  chapter 719 to the contrary, the managing entity may not

30  furnish the name or address of any purchaser to any other

31  purchaser or authorized agent thereof unless the purchaser

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  1  whose name and address are requested first approves the

  2  disclosure in writing.

  3         (e)  Arranging for an annual audit of the financial

  4  statements of the timeshare plan by a certified public

  5  accountant licensed by the Board of Accountancy of the

  6  Department of Business and Professional Regulation, in

  7  accordance with generally accepted auditing standards as

  8  defined by the rules of the Board of Accountancy of the

  9  Department of Business and Professional Regulation. The

10  financial statements required by this section must be prepared

11  on an accrual basis using fund accounting, and must be

12  presented in accordance with generally accepted accounting

13  principles. A copy of the audited financial statements must be

14  filed with the division and forwarded to the board of

15  directors and officers of the owners' association, if one

16  exists, no later than 5 calendar months after the end of the

17  timeshare plan's fiscal year. If no owners' association

18  exists, each purchaser must be notified, no later than 5

19  months after the end of the timeshare plan's fiscal year, that

20  a copy of the audited financial statements is available upon

21  request to the managing entity. Notwithstanding any

22  requirement of s. 718.111(13) or (14) or s. 719.104(4), the

23  audited financial statements required by this section are the

24  only annual financial reporting requirements for timeshare

25  condominiums or timeshare cooperatives.

26         (f)  Making available for inspection by the division

27  any books and records of the timeshare plan upon the request

28  of the division.  The division may enforce this paragraph by

29  making direct application to the circuit court.

30         (g)  Scheduling occupancy of the timeshare units, when

31  purchasers are not entitled to use specific timeshare periods,

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  1  so that all purchasers will be provided the use and possession

  2  of the accommodations and facilities of the timeshare plan

  3  which they have purchased.

  4         (h)  Performing any other functions and duties which

  5  are necessary and proper to maintain the accommodations or

  6  facilities, as provided in the contract and as advertised.

  7         (i)1.  Entering into an ad valorem tax escrow agreement

  8  prior to the receipt of any ad valorem tax escrow payments

  9  into the ad valorem tax escrow account, as long as an

10  independent escrow agent is required by s. 192.037.

11         2.  Submitting to the division the statement of

12  receipts and disbursements regarding the ad valorem tax escrow

13  account as required by s. 192.037(6)(e). The statement of

14  receipts and disbursements must also include a statement

15  disclosing that all ad valorem taxes have been paid in full to

16  the tax collector through the current assessment year, or, if

17  all such ad valorem taxes have not been paid in full to the

18  tax collector, a statement disclosing those assessment years

19  for which there are outstanding ad valorem taxes due and the

20  total amount of all delinquent taxes, interest, and penalties

21  for each such assessment year as of the date of the statement

22  of receipts and disbursements.

23         (j)  Notwithstanding anything contained in chapter 718

24  or chapter 719 to the contrary, purchasers shall not have the

25  power to cancel contracts entered into by the managing entity

26  relating to a master or community antenna television system, a

27  franchised cable television service, or any similar paid

28  television programming service or bulk rate services

29  agreement.

30         (4)  The managing entity shall maintain among its

31  records and provide to the division upon request a complete

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  1  list of the names and addresses of all purchasers and owners

  2  of timeshare units in the timeshare plan.  The managing entity

  3  shall update this list no less frequently than quarterly.

  4  Pursuant to paragraph (3)(d), the managing entity may not

  5  publish this owner's list or provide a copy of it to any

  6  purchaser or to any third party other than the division.

  7  However, the managing entity shall initiate a mailing to those

  8  persons listed on the owner's list materials provided by any

  9  purchaser, upon the written request of that any purchaser, if

10  the purpose of the mailing is to advance legitimate

11  association business, such as a proxy solicitation for any

12  purpose, including the recall of one or more board members

13  elected by the owners or the discharge of the manager or

14  management firm.  The use of any proxies solicited in this

15  manner must comply with the provisions of the timeshare

16  instrument and this chapter. A mailing requested for the

17  purpose of advancing legitimate association business shall

18  occur within 30 days after receipt of a request from a

19  purchaser. The board of administration of the association

20  shall be responsible for determining the appropriateness of

21  any mailing requested pursuant to this subsection, and it

22  shall be a violation of this chapter and of part VIII of

23  chapter 468 for the board of administration and/or the manager

24  or management firm to refuse to initiate any mailing requested

25  for the purpose of advancing legitimate association business.

26  The purchaser who requests the mailing must reimburse the

27  association in advance for the association's actual costs in

28  performing the mailing. It shall be a violation of this

29  chapter and, if applicable, of pt. VIII of chapter 468, for

30  the board of administration or the manager or management firm

31  to refuse to mail any material requested by the purchaser to

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  1  be mailed, provided the sole purpose of the materials is to

  2  advance legitimate association business. If the purpose of the

  3  mailing is a proxy solicitation to recall one or more board

  4  members elected by the owners or to discharge the manager or

  5  management firm and the managing entity does not mail the

  6  materials within 30 days after receipt of a request from a

  7  purchaser, the circuit court in the county where the timeshare

  8  plan is located may, upon application from the requesting

  9  purchaser, summarily order the mailing of the materials solely

10  related to the recall of one or more board members elected by

11  the owners or the discharge of the manager or management firm.

12  The court shall dispose of an application on an expedited

13  basis. In the event of such an order, the court may order the

14  managing entity to pay the purchaser's costs, including

15  attorney's fees reasonably incurred to enforce the purchaser's

16  rights, unless the managing entity can prove it refused the

17  mailing in good faith because of a reasonable basis for doubt

18  about the legitimacy of the mailing.

19         (5)  Any managing entity, or individual officer,

20  director, employee, or agent thereof, who willfully

21  misappropriates the property or funds of a timeshare plan

22  commits a felony of the third degree, punishable as provided

23  in s. 775.082, s. 775.083, or s. 775.084, or the successor

24  thereof.

25         (6)(a)  The managing entity of any timeshare plan

26  located in this state, including, but not limited to, those

27  plans created with respect to a condominium pursuant to

28  chapter 718 or a cooperative pursuant to chapter 719, may deny

29  the use of the accommodations and facilities of the timeshare

30  plan, including the denial of the right to make a reservation

31  or the cancellation of a confirmed reservation for timeshare

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  1  periods in a floating reservation timeshare plan, to any

  2  purchaser who is delinquent in the payment of any assessments

  3  made by the managing entity against such purchaser for common

  4  expenses or for ad valorem real estate taxes pursuant to this

  5  chapter or pursuant to s. 192.037.  Such denial of use shall

  6  also extend to those parties claiming under the delinquent

  7  purchaser described in paragraphs (b) and (c).  For purposes

  8  of this subsection, a purchaser shall be considered delinquent

  9  in the payment of a given assessment only upon the expiration

10  of 60 days after the date the assessment is billed to the

11  purchaser or upon the expiration of 60 days after the date the

12  assessment is due, whichever is later. For purposes of this

13  subsection, an affiliated exchange program shall be any

14  exchange program which has a contractual relationship with the

15  creating developer or the managing entity of the timeshare

16  plan, or any exchange program that notifies the managing

17  entity in writing that it has members that are purchasers of

18  the timeshare plan, and the exchange companies operating such

19  affiliated exchange programs shall be affiliated exchange

20  companies.  Any denial of use for failure to pay assessments

21  shall be implemented only pursuant to this subsection.

22         (b)  A managing entity desiring to deny the use of the

23  accommodations and facilities of the timeshare plan to a

24  delinquent purchaser and to those claiming under the

25  purchaser, including his or her guests, lessees, and third

26  parties receiving use rights in the timeshare period in

27  question through a nonaffiliated exchange program, shall, no

28  less than 30 days after the date the assessment is due in

29  accordance with the timeshare instrument prior to the first

30  day of the purchaser's use period, notify the purchaser in

31  writing of the total amount of any delinquency which then

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  1  exists or which will exist as of the first day of such use

  2  period, including any accrued interest and late charges

  3  permitted to be imposed under the terms of the public offering

  4  statement for the timeshare plan or by law and including a per

  5  diem amount, if any, to account for further accrual of

  6  interest and late charges between the stated effective date of

  7  the notice and the first date of use.  The notice shall also

  8  clearly state that the purchaser will not be permitted to use

  9  his or her timeshare period, that the purchaser will not be

10  permitted to make a reservation in the timeshare plan's

11  reservation system, or that any confirmed reservation may be

12  cancelled, as applicable, until the total amount of such

13  delinquency is satisfied in full or until the purchaser

14  produces satisfactory evidence that the delinquency does not

15  exist.  The notice shall be mailed to the purchaser at his or

16  her last known address as recorded in the books and records of

17  the timeshare plan, and the notice shall be effective to bar

18  the use of the purchaser and those claiming use rights under

19  the purchaser, including his or her guests, lessees, and third

20  parties receiving use rights in the timeshare period in

21  question through a nonaffiliated exchange program, until such

22  time as the purchaser is no longer delinquent. The notice

23  shall not be effective to bar the use of third parties

24  receiving use rights in the timeshare period in question

25  through an affiliated exchange program without the additional

26  notice to the affiliated exchange program required by

27  paragraph (c).

28         (c)  In addition to giving notice to the delinquent

29  purchaser as required by paragraph (b), a managing entity

30  desiring to deny the use of the accommodations and facilities

31  of the timeshare plan to third parties receiving use rights in

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  1  the delinquent purchaser's timeshare period through any

  2  affiliated exchange program shall notify the affiliated

  3  exchange company in writing of the denial of use.  The receipt

  4  of such written notice by the affiliated exchange company

  5  shall be effective to bar the use of all third parties

  6  claiming through the affiliated exchange program, and such

  7  notice shall be binding upon the affiliated exchange company

  8  and all third parties claiming through the affiliated exchange

  9  program until such time as the affiliated exchange company

10  receives notice from the managing entity that the purchaser is

11  no longer delinquent. However, any third party claiming

12  through the affiliated exchange program who has received a

13  confirmed assignment of the delinquent purchaser's use rights

14  from the affiliated exchange company prior to the expiration

15  of 48 hours after the receipt by the affiliated exchange

16  company of such written notice from the managing entity shall

17  be permitted by the managing entity to use the accommodations

18  and facilities of the timeshare plan to the same extent that

19  he or she would be allowed to use such accommodations and

20  facilities if the delinquent purchaser were not delinquent.

21         (d)  Any costs reasonably incurred by the managing

22  entity in connection with its compliance with the requirements

23  of paragraphs (b) and (c), together with any costs reasonably

24  incurred by an affiliated exchange company in connection with

25  its compliance with the requirements of paragraph (c), may be

26  assessed by the managing entity against the delinquent

27  purchaser and collected in the same manner as if such costs

28  were common expenses of the timeshare plan allocable solely to

29  the delinquent purchaser. The costs incurred by the affiliated

30  exchange company shall be collected by the managing entity as

31  the agent for the affiliated exchange company.  In no event

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  1  shall the total costs to be assessed against the delinquent

  2  purchaser pursuant to this paragraph at any one time exceed 5

  3  percent of the total amount of delinquency contained in the

  4  notice given to the delinquent purchaser pursuant to paragraph

  5  (b) per timeshare period or $15 per timeshare period,

  6  whichever is less.

  7         (e)  An exchange company may elect to deny exchange

  8  privileges to any member whose use of the accommodations and

  9  facilities of the member's timeshare plan is denied pursuant

10  to paragraph (b), and no exchange program or exchange company

11  shall be liable to any of its members or third parties on

12  account of any such denial of exchange privileges.

13         (f)1.  Provided that the managing entity has properly

14  and timely given notice to a delinquent purchaser pursuant to

15  paragraph (b) and to any affiliated exchange program pursuant

16  to paragraph (c), the managing entity may give further notice

17  to the delinquent purchaser that it may intends to rent the

18  delinquent purchaser's timeshare period, or any use rights

19  appurtenant thereto, and will to apply the proceeds of such

20  rental, net of any rental commissions, cleaning charges,

21  travel agent commissions, or any other commercially reasonable

22  charges reasonably and usually incurred by the managing entity

23  in securing rentals, to the delinquent purchaser's account.

24  Such further notice of intent to rent must be given at least

25  30 days prior to the first day of the purchaser's use period,

26  and must be delivered to the purchaser in the manner required

27  for notices under paragraph (b).

28         2.  The notice of intent to rent, which may be included

29  in the notice required by paragraph (b), must state in

30  conspicuous type that:

31

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  1         a.  The managing entity's efforts to secure a rental

  2  will not commence on a date certain, which date may not be

  3  earlier than 10 days after the date of the notice of intent to

  4  rent.

  5         b.  Unless the purchaser satisfies the delinquency in

  6  full, or unless the purchaser produces satisfactory evidence

  7  that the delinquency does not exist pursuant to paragraph (b),

  8  prior to the date designated in the notice for commencement of

  9  rental solicitation by the managing entity, the purchaser will

10  be bound by the terms of any rental contract entered into by

11  the managing entity with respect to the purchaser's timeshare

12  period or appurtenant use rights.

13         c.  The purchaser will remain liable for any difference

14  between the amount of the delinquency and the net amount

15  produced by the rental contract and applied against the

16  delinquency pursuant to this paragraph, and the managing

17  entity shall not be required to provide any further notice to

18  the purchaser regarding any residual delinquency pursuant to

19  this paragraph.

20         3.  In securing a rental pursuant to this paragraph,

21  the managing entity shall not be required to obtain the

22  highest nightly rental rate available, nor any particular

23  rental rate, and the managing entity shall not be required to

24  rent the entire timeshare period; however, the managing entity

25  must use reasonable efforts to secure a rental that is

26  commensurate with other rentals of similar timeshare periods

27  or use rights generally secured at that time.

28         (g)  A managing entity shall have breached its

29  fiduciary duty described in subsection (2) in the event it

30  enforces the denial of use pursuant to paragraph (b) against

31  any one purchaser or group of purchasers without similarly

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  1  enforcing it against all purchasers, including all developers

  2  and owners of the underlying fee; however, a managing entity

  3  shall not be required to solicit rentals pursuant to paragraph

  4  (f) for every delinquent purchaser.  A managing entity shall

  5  also have breached its fiduciary duty in the event an error in

  6  the books and records of the timeshare plan results in a

  7  denial of use pursuant to this subsection of any purchaser who

  8  is not, in fact, delinquent.  In addition to any remedies

  9  otherwise available to purchasers of the timeshare plan

10  arising from such breaches of fiduciary duty, such breach

11  shall also constitute a violation of this chapter. In

12  addition, any purchaser receiving a notice of delinquency

13  pursuant to paragraph (b), or any third party claiming under

14  such purchaser pursuant to paragraph (b), may immediately

15  bring an action for injunctive or declaratory relief against

16  the managing entity seeking to have the notice invalidated on

17  the grounds that the purchaser is not, in fact, delinquent,

18  that the managing entity failed to follow the procedures

19  prescribed by this section, or on any other available grounds.

20  The prevailing party in any such action shall be entitled to

21  recover his or her reasonable attorney's fees from the losing

22  party.

23         (7)  Unless the articles of incorporation, the bylaws,

24  or the provisions of this chapter provide for a higher quorum

25  requirement, the percentage of voting interests required to

26  make decisions and to constitute a quorum at a meeting of the

27  members of a timeshare condominium or owners' association

28  shall be 15 percent of the voting interests.  If a quorum is

29  not present at any meeting of the owners' association at which

30  members of the board of administration are to be elected, the

31  meeting may be adjourned and reconvened within 90 days for the

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  1  sole purpose of electing members of the board of

  2  administration, and the quorum for such adjourned meeting

  3  shall be 15 percent of the voting interests.  This provision

  4  shall apply notwithstanding any provision of chapter 718 or

  5  chapter 719 to the contrary.

  6         (8)  Notwithstanding anything to the contrary in s.

  7  718.110, s. 718.113, s. 718.114, or s. 719.1055, the board of

  8  administration of any owners' association that operates a

  9  timeshare condominium pursuant to s. 718.111, or a timeshare

10  cooperative pursuant to s. 719.104, shall have the power to

11  make material alterations or substantial additions to the

12  accommodations or facilities of such timeshare condominium or

13  timeshare cooperative without the approval of the association.

14  However, if the timeshare condominium or timeshare cooperative

15  contains any residential units that are not subject to the

16  timeshare plan, such action by the board of administration

17  must be approved by a majority of the owners of such

18  residential units.  Unless otherwise provided in the timeshare

19  instrument as originally recorded, no such amendment may

20  change the configuration or size of any accommodation in any

21  material fashion, or change the proportion or percentage by

22  which a member of the association shares the common expenses,

23  unless the record owners of the affected units or timeshare

24  interests and all record owners of liens on the affected units

25  or timeshare interests join in the execution of the amendment.

26         (9)(8)  Any failure of the managing entity to

27  faithfully discharge the fiduciary duty to purchasers imposed

28  by this section or to otherwise comply with the provisions of

29  this section shall be a violation of this chapter and of part

30  VIII of chapter 468.

31

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  1         Section 21.  Subsection (2) of section 721.14, Florida

  2  Statutes, is amended to read:

  3         721.14  Discharge of managing entity.--

  4         (2)  In the event the manager or management firm is

  5  discharged, the board of administration of the owners'

  6  association shall remain responsible for operating and

  7  maintaining the timeshare plan pursuant to the timeshare

  8  instrument and s. 721.13(1).  If the board of administration

  9  fails to do so, any timeshare owner may apply to the circuit

10  court within the jurisdiction of which the accommodations and

11  facilities lie for the appointment of a receiver to manage the

12  affairs of the owners' association and the timeshare plan.  At

13  least 30 days before applying to the circuit court, the

14  timeshare owner shall mail to the owners' association and post

15  in a conspicuous place on the timeshare property a notice

16  describing the intended action.  If a receiver is appointed,

17  the owners' association shall be responsible as a common

18  expense of the timeshare plan, for payment of the salary and

19  expenses of the receiver, relating to the discharge of her or

20  his duties and obligations as receiver, together with the

21  receiver's court costs, and reasonable attorney's fees.  The

22  receiver shall have all powers and duties of a duly

23  constituted board of administration and shall serve until

24  discharged by the circuit court.

25         Section 22.  Section 721.15, Florida Statutes, is

26  amended to read:

27         721.15  Assessments for common expenses.--

28         (1)(a)  Until a managing entity is created or provided

29  pursuant to s. 721.13, the developer shall pay all common

30  expenses. The timeshare instrument shall provide for the

31  allocation of common expenses among all timeshare units or

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  1  timeshare interests periods on a reasonable basis, including

  2  timeshare interests periods owned or not yet sold by the

  3  developer. The timeshare instrument may provide that the

  4  common expenses allocated may differ between those timeshare

  5  units that are part of the timeshare plan and those units that

  6  are not part of the timeshare plan; however, the different

  7  proportion of expenses must be based upon reasonable

  8  differences in the benefit provided to each. The timeshare

  9  instrument shall allocate common expenses to timeshare

10  interests periods owned or not yet sold by the developer on

11  the same basis that common expenses are allocated to similar

12  or equivalent timeshare interests periods sold to purchasers.

13         (b)  Notwithstanding any provision of chapter 718 or

14  chapter 719 to the contrary, the allocation of total common

15  expenses for a condominium or a cooperative timeshare plan may

16  vary on any reasonable basis, including, but not limited to,

17  timeshare unit size, timeshare unit type, timeshare unit

18  location, specific identification, or a combination of these

19  factors, if the percentage interest in the common elements

20  attributable to each timeshare condominium parcel or timeshare

21  cooperative parcel equals the share of the total common

22  expenses allocable to that parcel. The share of a timeshare

23  interest in the common expenses allocable to the timeshare

24  condominium parcel or the timeshare cooperative parcel

25  containing such interest may vary on any reasonable basis if

26  the timeshare interest's share of its parcel's common expense

27  allocation is equal to that timeshare interest's share of the

28  percentage interest in common elements attributable to such

29  parcel.

30         (2)(a)  After the creation or provision of a managing

31  entity, the managing entity shall make an annual assessment

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  1  against each purchaser for the payment of common expenses,

  2  based on the projected annual budget, in the amount specified

  3  by the contract between the seller and the purchaser or in the

  4  timeshare instrument.

  5         (b)  No owner of a timeshare interests period may be

  6  excused from the payment of her or his share of the common

  7  expenses unless all owners are likewise excused from payment,

  8  except that the developer may be excused from the payment of

  9  her or his share of the common expenses which would have been

10  assessed against her or his timeshare interests periods during

11  a stated period of time during which the developer has

12  guaranteed to each purchaser in the timeshare instrument, or

13  by agreement between the developer and a majority of the

14  owners of timeshare interests periods other than the

15  developer, that the assessment for common expenses imposed

16  upon the owners would not increase over a stated dollar

17  amount.  In the event of such a guarantee, the developer is

18  obligated to pay all common expenses incurred during the

19  guarantee period in excess of the total revenues of the

20  timeshare plan. Notwithstanding this limitation, if a

21  developer-controlled owners' association has maintained all

22  insurance coverages required by s. 721.165, the common

23  expenses incurred during the guarantee period resulting from a

24  natural disaster or an act of God, which are not covered by

25  insurance proceeds from the insurance maintained by the

26  owners' association, may be assessed against all purchasers

27  owning timeshare interests on the date of such natural

28  disaster or act of God, and their successors and assigns,

29  including the developer with respect to timeshare interests

30  owned by the developer. In the event of such an assessment,

31

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  1  all timeshare interests shall be assessed in accordance with

  2  their ownership interest as required by paragraph (1)(a).

  3         (c)  For the purpose of calculating the obligation of a

  4  developer under a guarantee pursuant to paragraph (b),

  5  depreciation expenses related to real property shall be

  6  excluded from common expenses incurred during the guarantee

  7  period.

  8         (d)  A guarantee pursuant to paragraph (b) may provide

  9  that the developer may extend or increase the guarantee for

10  one or more additional stated periods.

11         (3)  Delinquent assessments may bear interest at the

12  highest rate permitted by law or at some lesser rate

13  established by the managing entity. In addition to such

14  interest, the managing entity may charge an administrative

15  late fee in an amount not to exceed $25 for each delinquent

16  assessment. Provided that a purchaser has been advised in

17  writing at least 60 days prior to turning the matter over to a

18  collection agency that the purchaser may be liable for the

19  fees of the collection agency and a lien may result therefrom,

20  any costs of collection, including reasonable collection

21  agency fees and reasonable attorney's fees, incurred in the

22  collection of a delinquent assessment shall be paid by the

23  purchaser and shall be secured by a lien in favor of the

24  managing entity upon the timeshare interest period with

25  respect to which the delinquent assessment has been incurred.

26         (4)  Unless otherwise specified in the contract between

27  the seller and the purchaser, any common expenses benefiting

28  fewer than all purchasers shall be assessed only against those

29  purchasers benefited.

30         (5)  Any assessments for common expenses which have not

31  been spent for common expenses during the year for which such

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  1  assessments were made shall be shown as an item on the annual

  2  budget.

  3         (6)  Notwithstanding any contrary requirements of s.

  4  718.112(2)(g) or s. 719.106(1)(g), for timeshare plans subject

  5  to this chapter, assessments against purchasers need not be

  6  made more frequently than annually.

  7         (7)  A purchaser, regardless of how her or his

  8  timeshare estate or timeshare license has been acquired,

  9  including a purchaser at a judicial sale, is personally liable

10  for all assessments for common expenses which come due while

11  the purchaser is the owner of such interest.  A successor in

12  interest is jointly and severally liable with her or his

13  predecessor in interest for all unpaid assessments against

14  such predecessor up to the time of transfer of the timeshare

15  interest to such successor without prejudice to any right a

16  successor in interest may have to recover from her or his

17  predecessor in interest any amounts assessed against such

18  predecessor and paid by such successor.  The predecessor in

19  interest shall provide the managing entity with a copy of the

20  recorded deed of conveyance if the interest is a timeshare

21  estate or a copy of the instrument of transfer if the interest

22  is a timeshare license, containing the name and mailing

23  address of the successor in interest within 15 days after the

24  date of transfer. The managing entity shall not be liable to

25  any person for any inaccuracy in the books and records of the

26  timeshare plan arising from the failure of the predecessor in

27  interest to timely and correctly notify the managing entity of

28  the name and mailing address of the successor in interest.

29  Nothing in this subsection shall be construed to impair the

30  operation of s. 718.116 for timeshare condominiums.

31

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  1         (8)  Notwithstanding the provisions of subsection (7),

  2  a first mortgagee or its successor or assignee who acquires

  3  title to a timeshare interest as a result of the foreclosure

  4  of the mortgage or by deed in lieu of foreclosure of the

  5  mortgage shall be exempt from liability for all unpaid

  6  assessments attributable to the timeshare interest or

  7  chargeable to the previous owner which came due prior to

  8  acquisition of title by the first mortgagee.

  9         (9)(8)(a)  Anything contained in chapter 718 or chapter

10  719 to the contrary notwithstanding, the managing entity of a

11  timeshare plan shall not commingle operating funds with

12  reserve funds; however, the managing entity may maintain

13  operating and reserve funds within a single account for a

14  period not to exceed 30 days after the date on which the

15  managing entity received payment of such funds.

16         (b)  Anything contained in chapter 718 or chapter 719

17  to the contrary notwithstanding, a managing entity which

18  serves as managing entity of more than one timeshare plan, or

19  of more than one component site pursuant to part II, shall not

20  commingle the common expense funds of any one timeshare plan

21  or component site with the common expense funds of any other

22  timeshare plan or component site.  However, the managing

23  entity may maintain common expense funds of multiple timeshare

24  plans or multiple component sites within a single account for

25  a period not to exceed 30 days after the date on which the

26  managing entity received payment of such funds.

27         Section 23.  Section 721.16, Florida Statutes, is

28  amended to read:

29         721.16  Liens for overdue assessments; liens for labor

30  performed on, or materials furnished to, a timeshare unit.--

31

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  1         (1)  The managing entity has a lien on a timeshare

  2  interest period for any assessment levied against that

  3  timeshare interest period from the date such assessment

  4  becomes due. The managing entity also has a lien on a

  5  timeshare interest of any purchaser for the cost of any

  6  maintenance, repairs, or replacement resulting from an act of

  7  such purchaser or purchaser's guest that results in damage to

  8  the timeshare property or facilities made available to the

  9  purchasers.

10         (2)  The managing entity may bring an action in its

11  name to foreclose a lien under subsection (1) for assessments

12  in the manner a mortgage of real property is foreclosed and

13  may also bring an action to recover a money judgment for the

14  unpaid assessments without waiving any claim of lien.

15  However, in the case of a timeshare plan in which no interest

16  in real property is conveyed, the managing entity may bring an

17  action under the Uniform Commercial Code.

18         (3)  The lien is effective from the date of recording a

19  claim of lien in the public records of the county or counties

20  in which the accommodations and or facilities constituting the

21  timeshare plan are located. The claim of lien shall state the

22  name of the timeshare plan and identify the timeshare interest

23  period for which the lien is effective, state the name of the

24  purchaser, state the assessment amount due, and state the due

25  dates. Notwithstanding any provision of s. 718.116(5)(a) or s.

26  719.108(4) to the contrary, the lien is effective until

27  satisfied or until 5 years have expired after the date the

28  claim of lien is recorded unless, within that time, an action

29  to enforce the lien is commenced pursuant to subsection (2). A

30  The claim of lien for assessments may include only assessments

31  which are due when the claim is recorded.  A claim of lien

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  1  shall be signed and acknowledged by an officer or agent of the

  2  managing entity.  Upon full payment, the person making the

  3  payment is entitled to receive a satisfaction of the lien.

  4         (4)  A judgment in any action or suit brought under

  5  this section shall include costs and reasonable attorney's

  6  fees for the prevailing party.

  7         (5)  Labor performed on a timeshare unit, or materials

  8  furnished to a timeshare unit, shall not be the basis for the

  9  filing of a lien pursuant to part I of chapter 713, the

10  Construction Lien Law, against the timeshare unit of any

11  timeshare-period owner not expressly consenting to or

12  requesting the labor or materials.

13         Section 24.  Subsection (1) of section 721.165, Florida

14  Statutes, is amended to read:

15         721.165  Insurance.--

16         (1)  The seller, initially, and thereafter the managing

17  entity, shall be responsible for obtaining insurance to

18  protect the accommodations and facilities of the timeshare

19  plan in an amount equal to the replacement cost of such

20  accommodations and facilities. Failure to obtain and maintain

21  the insurance required by this subsection during any period of

22  developer control of the managing entity shall constitute a

23  breach of s. 721.13(2)(a) by the managing entity, unless the

24  managing entity can show that, despite such failure, it

25  exercised due diligence to obtain and maintain the insurance

26  required by this subsection.

27         Section 25.  Section 721.17, Florida Statutes, is

28  amended to read:

29         721.17  Transfer of interest.--Except in the case of a

30  timeshare plan subject to the provisions of chapter 718 or

31  chapter 719, no developer or owner of the underlying fee shall

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  1  sell, lease, assign, mortgage, or otherwise transfer his or

  2  her interest in the accommodations and or facilities of the

  3  timeshare plan except by an instrument evidencing the transfer

  4  recorded in the public records of the county in which such the

  5  accommodations and or facilities are located.  The instrument

  6  shall be executed by both the transferor and transferee and

  7  shall state:

  8         (1)  That its provisions are intended to protect the

  9  rights of all purchasers of the plan.

10         (2)  That its terms may be enforced by any prior or

11  subsequent timeshare purchaser so long as that purchaser is

12  not in default of his or her obligations.

13         (3)  That the transferee will fully honor the rights of

14  the purchasers to occupy and use the accommodations and

15  facilities as provided in their original contracts and the

16  timeshare instruments.

17         (4)  That the transferee will fully honor all rights of

18  timeshare purchasers to cancel their contracts and receive

19  appropriate refunds.

20         (5)  That the obligations of the transferee under such

21  instrument will continue to exist despite any cancellation or

22  rejection of the contracts between the developer and purchaser

23  arising out of bankruptcy proceedings.

24

25  Should any transfer of the interest of the developer or owner

26  of the underlying fee occur in a manner which is not in

27  compliance with this section, the terms set forth in this

28  section shall be presumed to be a part of the transfer and

29  shall be deemed to be included in the instrument of transfer.

30  Notice shall be mailed to each purchaser of record within 30

31  days of the transfer unless such transfer does not affect the

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  1  purchaser's rights in or use of the timeshare plan.  Persons

  2  who hold mortgages on the property constituting a timeshare

  3  plan before the registered public offering statement of such

  4  plan is approved by the division shall not be considered

  5  transferees for the purposes of this section.

  6         Section 26.  Subsection (1) of section 721.18, Florida

  7  Statutes, is amended to read:

  8         721.18  Exchange programs; filing of information and

  9  other materials; filing fees; unlawful acts in connection with

10  an exchange program.--

11         (1)  If a purchaser is offered the opportunity to

12  subscribe to an exchange program, the seller shall deliver to

13  the purchaser, together with the purchaser public offering

14  statement, and prior to the offering or execution of any

15  contract between the purchaser and the company offering the

16  exchange program, written information regarding such exchange

17  program; or, if the exchange company is dealing directly with

18  the purchaser, the exchange company shall deliver to the

19  purchaser, prior to the initial offering or execution of any

20  contract between the purchaser and the company offering the

21  exchange program, written information regarding such exchange

22  program.  In either case, the purchaser shall certify in

23  writing to the receipt of such information.  Such information

24  shall include, but is not limited to, the following

25  information, the form and substance of which shall first be

26  approved by the division in accordance with subsection (2):

27         (a)  The name and address of the exchange company.

28         (b)  The names of all officers, directors, and

29  shareholders of the exchange company.

30         (c)  Whether the exchange company or any of its

31  officers or directors has any legal or beneficial interest in

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  1  any developer, seller, or managing entity for any timeshare

  2  plan participating in the exchange program and, if so, the

  3  name and location of the timeshare plan and the nature of the

  4  interest.

  5         (d)  Unless otherwise stated, a statement that the

  6  purchaser's contract with the exchange company is a contract

  7  separate and distinct from the purchaser's contract with the

  8  seller of the timeshare plan.

  9         (e)  Whether the purchaser's participation in the

10  exchange program is dependent upon the continued affiliation

11  of the timeshare plan with the exchange program.

12         (f)  Whether A statement that the purchaser's

13  participation in the exchange program is voluntary.

14         (g)  A complete and accurate description of the terms

15  and conditions of the purchaser's contractual relationship

16  with the exchange program and the procedure by which changes

17  thereto may be made.

18         (h)  A complete and accurate description of the

19  procedure to qualify for and effectuate exchanges.

20         (i)  A complete and accurate description of all

21  limitations, restrictions, or priorities employed in the

22  operation of the exchange program, including, but not limited

23  to, limitations on exchanges based on seasonality, timeshare

24  unit size, or levels of occupancy, expressed in boldfaced

25  type, and, in the event that such limitations, restrictions,

26  or priorities are not uniformly applied by the exchange

27  program, a clear description of the manner in which they are

28  applied.

29         (j)  Whether exchanges are arranged on a

30  space-available basis and whether any guarantees of

31

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  1  fulfillment of specific requests for exchanges are made by the

  2  exchange program.

  3         (k)  Whether and under what circumstances a purchaser,

  4  in dealing with the exchange program, may lose the use and

  5  occupancy of her or his timeshare period in any properly

  6  applied for exchange without her or his being provided with

  7  substitute accommodations by the exchange program.

  8         (l)  The fees or range of fees for participation by

  9  purchasers in the exchange program, a statement whether any

10  such fees may be altered by the exchange company, and the

11  circumstances under which alterations may be made.

12         (m)  The name and address of the site of each

13  accommodation or facility included in the timeshare plans

14  participating in the exchange program.

15         (n)  The number of the timeshare units in each

16  timeshare plan which are available for occupancy and which

17  qualify for participation in the exchange program, expressed

18  within the following numerical groupings:  1-5; 6-10; 11-20;

19  21-50; and 51 and over.

20         (o)  The number of currently enrolled purchasers for

21  each timeshare plan participating in the exchange program,

22  expressed within the following numerical groupings:  1-100;

23  101-249; 250-499; 500-999; and 1,000 and over; and a statement

24  of the criteria used to determine those purchasers who are

25  currently enrolled with the exchange program.

26         (p)  The disposition made by the exchange company of

27  timeshare periods deposited with the exchange program by

28  purchasers enrolled in the exchange program and not used by

29  the exchange company in effecting exchanges.

30         (q)  The following information, which shall be

31  independently audited by a certified public accountant or

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  1  accounting firm in accordance with the standards of the

  2  Accounting Standards Board of the American Institute of

  3  Certified Public Accountants and reported annually beginning

  4  no later than July 1, 1982:

  5         1.  The number of purchasers currently enrolled in the

  6  exchange program.

  7         2.  The number of accommodations and facilities that

  8  have current affiliation agreements with the exchange program.

  9         3.  The percentage of confirmed exchanges, which is the

10  number of exchanges confirmed by the exchange program divided

11  by the number of exchanges properly applied for, together with

12  a complete and accurate statement of the criteria used to

13  determine whether an exchange request was properly applied

14  for.

15         4.  The number of timeshare periods for which the

16  exchange program has an outstanding obligation to provide an

17  exchange to a purchaser who relinquished a timeshare period

18  during the year in exchange for a timeshare period in any

19  future year.

20         5.  The number of exchanges confirmed by the exchange

21  program during the year.

22         (r)  A statement in boldfaced type to the effect that

23  the percentage described in subparagraph (q)3. is a summary of

24  the exchange requests entered with the exchange program in the

25  period reported and that the percentage does not indicate the

26  probabilities of a purchaser's being confirmed to any specific

27  choice or range of choices.

28         Section 27.  Section 721.19, Florida Statutes, is

29  amended to read:

30         721.19  Provisions requiring purchase or lease of

31  timeshare property by owners' association or purchasers unit

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  1  owners; validity.--In any timeshare plan in which timeshare

  2  estates are sold, no grant or reservation made by a

  3  declaration, lease, or other document, nor any contract made

  4  by the developer, managing entity, or owners' association,

  5  which requires the owners' association or purchasers unit

  6  owners to purchase or lease any portion of the timeshare

  7  property shall be valid unless approved by a majority of the

  8  purchasers other than the developer, after more than 50

  9  percent of the timeshare periods have been sold.

10         Section 28.  Section 721.20, Florida Statutes, is

11  amended to read:

12         721.20  Licensing requirements; suspension or

13  revocation of license; exceptions to applicability; collection

14  of advance fees for listings unlawful.--

15         (1)  Any seller of a timeshare plan must be a licensed

16  real estate salesperson, broker, or broker-salesperson as

17  defined in s. 475.01, except as provided in s. 475.011.

18         (2)  Solicitors licensed under the provisions of

19  paragraph (2)(a) who engage only in the solicitation of

20  prospective purchasers, and purchasers engaging in

21  solicitation activities as described in paragraph (2)(e), and

22  any purchaser who refers no more than 20 people to a developer

23  per year or who otherwise provides testimonials on behalf of a

24  developer are exempt from the provisions of chapter 475.

25         (2)(a)  Pursuant to rules adopted by the division, each

26  off-premises solicitor or other person who engages in the

27  solicitation of prospective purchasers of units in a timeshare

28  plan must purchase a timeshare occupational license for a fee

29  of $100.  The license shall be issued to the solicitor for a

30  2-year period and shall expire on the second anniversary of

31  the date of issuance.  Sellers of a timeshare plan who are

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  1  licensed and in good standing under chapter 475 shall be

  2  exempt from licensure under this subsection upon filing proof

  3  of such licensure and good standing with the division prior to

  4  engaging in any solicitation activity.  However, the division

  5  may deny, suspend, or revoke the exemption of such seller when

  6  the license issued under chapter 475 has been suspended or

  7  revoked.

  8         (b)  It is unlawful for any person to solicit

  9  prospective purchasers of a timeshare plan without first

10  having secured a timeshare occupational license and having

11  paid the occupational license fee; however, an applicant who

12  has completed and filed an application for a timeshare

13  occupational license and who has paid the required

14  occupational license fee may solicit prospective purchasers of

15  a timeshare plan pursuant to this section pending approval or

16  denial of his or her application by the division.

17         (c)  Prior to issuing an occupational license to an

18  applicant, the division shall receive an application, on forms

19  designed by the division, containing such pertinent background

20  information as is necessary to properly identify the

21  applicant; however, the fingerprinting of applicants is not

22  required.

23         (d)  The division may deny, suspend, or revoke any

24  occupational license when the applicant or holder thereof

25         (3)  A solicitor who has violated the provisions of

26  chapter 468, chapter 718, chapter 719, this chapter, or the

27  rules of the division governing timesharing, or when the

28  holder of a license issued pursuant to chapter 475 has had his

29  or her license suspended or revoked. If any occupational

30  license expires by division rule while administrative charges

31  are pending against the license, the proceedings against the

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  1  license shall continue to conclusion as if the license were

  2  still in effect.  In addition to those remedies available

  3  against the developer, the division may impose against an

  4  applicant or licensed solicitor a civil fine of up to $500 in

  5  addition to, or in lieu of, a suspension or revocation

  6  provided for in this section for violation of the rules of the

  7  division.

  8         (e)  Any purchaser who refers no more than 20 people to

  9  a developer per year or who otherwise provides testimonials on

10  behalf of a developer shall not shall be subject to licensure

11  under the provisions of paragraph (a). s. 721.26. Any

12  developer or other person who supervises, directs, or engages

13  the services of a solicitor shall be liable for any violation

14  of the provisions of chapter 468, chapter 718, chapter 719,

15  this chapter, or the rules of the division governing

16  timesharing committed by such solicitor.

17         (f)  The division may require up to 2 hours of

18  continuing education annually as a condition of renewal of an

19  occupational license.

20         (4)  County and municipal governments shall have the

21  authority to adopt codes of conduct and regulations to govern

22  solicitor activity conducted on public property, including

23  providing for the imposition of penalties prescribed by a

24  schedule of fines adopted by ordinance for violations of any

25  such code of conduct or regulation. Any violation of any such

26  adopted code of conduct or regulation shall not constitute a

27  separate violation of this chapter. This subsection is not

28  intended to restrict or invalidate any local code of conduct

29  or regulation.

30         (5)(3)  This section does not apply to those

31  individuals who offer for sale only timeshare interests

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  1  periods in timeshare property located outside this state and

  2  who do not engage in any sales activity within this state or

  3  to timeshare plans which are registered with the Securities

  4  and Exchange Commission.  For the purposes of this section,

  5  both timeshare licenses and timeshare estates are considered

  6  to be interests in real property.

  7         (6)(4)  Notwithstanding the provisions of s. 475.452,

  8  it is unlawful for any broker, salesperson, or

  9  broker-salesperson to collect any advance fee for the listing

10  of any timeshare estate or timeshare license.

11         Section 29.  Section 721.21, Florida Statutes, is

12  amended to read:

13         721.21  Purchasers' remedies.--An action for damages or

14  for injunctive or declaratory relief for a violation of this

15  chapter may be brought by any purchaser or owners' association

16  of purchasers against the developer, a seller, an escrow

17  agent, or the managing entity.  The prevailing party in any

18  such action, or in any action in which the purchaser claims a

19  right of voidability based upon either a closing before the

20  expiration of the cancellation period or an amendment which

21  materially alters or modifies the offering in a manner adverse

22  to the purchaser, may be entitled to reasonable attorney's

23  fees. Relief under this section does not exclude other

24  remedies provided by law.

25         Section 30.  Paragraph (a) of subsection (1) and

26  subsection (2) of section 721.24, Florida Statutes, are

27  amended to read:

28         721.24  Firesafety.--

29         (1)  Any:

30         (a)  Facility or accommodation of a timeshare plan, as

31  defined in this chapter, and chapter 718, or chapter 719,

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  1  which is of three stories or more and for which the

  2  construction contract has been let after September 30, 1983,

  3  with interior corridors which do not have direct access from

  4  the timeshare unit to exterior means of egress, or

  5

  6  shall be equipped with an automatic sprinkler system installed

  7  in compliance with the provisions prescribed in the National

  8  Fire Protection Association publication NFPA No. 13 (1985),

  9  "Standards for the Installation of Sprinkler Systems."  The

10  sprinkler installation may be omitted in closets which are not

11  over 24 square feet in area and in bathrooms which are not

12  over 55 square feet in area, which closets and bathrooms are

13  located in timeshare units.  Each timeshare unit shall be

14  equipped with an approved listed single-station smoke detector

15  meeting the minimum requirements of NFPA-74 (1984), "Standards

16  for the Installation, Maintenance and Use of Household Fire

17  Warning Equipment," powered from the building electrical

18  service, notwithstanding the number of stories in the

19  structure, if the contract for construction is let after

20  September 30, 1983. Single-station smoke detection is not

21  required when a timeshare unit's smoke detectors are connected

22  to a central alarm system which also alarms locally.

23         (2)  Any timeshare unit of a timeshare plan, as defined

24  in this chapter, and chapter 718, or chapter 719 which is of

25  three stories or more and for which the construction contract

26  was let before October 1, 1983, shall be equipped with:

27         (a)  A system which complies with subsection (1); or

28         (b)  An approved sprinkler system for all interior

29  corridors, public areas, storage rooms, closets, kitchen

30  areas, and laundry rooms, less individual timeshare units, if

31  the following conditions are met:

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  1         1.  There is a minimum 1-hour separation between each

  2  timeshare unit and between each timeshare unit and a corridor.

  3         2.  The building is constructed of noncombustible

  4  materials.

  5         3.  The egress conditions meet the requirements of s.

  6  5-3 of the Life Safety Code, NFPA 101 (1985).

  7         4.  The building has a complete automatic fire

  8  detection system which meets the requirements of NFPA-72A

  9  (1987) and NFPA-72E (1984), including smoke detectors in each

10  timeshare unit individually annunciating to a panel at a

11  supervised location.

12         Section 31.  Paragraphs (a), (d), and (e) of subsection

13  (5) of section 721.26, Florida Statutes, are amended to read:

14         721.26  Regulation by division.--The division has the

15  power to enforce and ensure compliance with the provisions of

16  this chapter, except for parts III and IV, using the powers

17  provided in this chapter, as well as the powers prescribed in

18  chapters 498, 718, and 719. In performing its duties, the

19  division shall have the following powers and duties:

20         (5)  Notwithstanding any remedies available to

21  purchasers, if the division has reasonable cause to believe

22  that a violation of this chapter, or of any division rule or

23  order promulgated or issued pursuant to this chapter, has

24  occurred, the division may institute enforcement proceedings

25  in its own name against any regulated party, as such term is

26  defined in this subsection:

27         (a)1.  "Regulated party," for purposes of this section,

28  means any developer, exchange company, seller, managing

29  entity, association, association director, association

30  officer, manager, management firm, escrow agent, trustee, any

31

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  1  respective assignees or agents, or any other person having

  2  duties or obligations pursuant to this chapter.

  3         2.  Any person who materially participates in any offer

  4  or disposition of any interest in, or the management or

  5  operation of, a timeshare plan in violation of this chapter or

  6  relevant rules involving fraud, deception, false pretenses,

  7  misrepresentation, or false advertising or the disbursement,

  8  concealment, or diversion of any funds or assets, which

  9  conduct adversely affects the interests of a purchaser, and

10  which person directly or indirectly controls a regulated party

11  or is a general partner, officer, director, agent, or employee

12  of such regulated party, shall be jointly and severally liable

13  under this subsection with such regulated party, unless such

14  person did not know, and in the exercise of reasonable care

15  could not have known, of the existence of the facts giving

16  rise to the violation of this chapter.  A right of

17  contribution shall exist among jointly and severally liable

18  persons pursuant to this paragraph.

19         (d)1.  The division may bring an action in circuit

20  court for declaratory or injunctive relief or for other

21  appropriate relief, including restitution.

22         2.  The division shall have broad authority and

23  discretion to petition the circuit court to appoint a receiver

24  with respect to any managing entity which fails to perform its

25  duties and obligations under this chapter with respect to the

26  operation of a timeshare plan.  The circumstances giving rise

27  to an appropriate petition for receivership under this

28  subparagraph include, but are not limited to:

29         a.  Damage to or destruction of any of the

30  accommodations or facilities of a timeshare plan, where the

31  managing entity has failed to repair or reconstruct same.

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  1         b.  A breach of fiduciary duty by the managing entity,

  2  including, but not limited to, undisclosed self-dealing or

  3  failure to timely assess, collect, or disburse the common

  4  expenses of the timeshare plan.

  5         c.  Failure of the managing entity to operate the

  6  timeshare plan in accordance with the timeshare instrument and

  7  this chapter.

  8

  9  If, under the circumstances, it appears that the events giving

10  rise to the petition for receivership cannot be reasonably and

11  timely corrected in a cost-effective manner consistent with

12  the timeshare instrument, the receiver may petition the

13  circuit court to implement such amendments or revisions to the

14  timeshare instrument as may be necessary to enable the

15  managing entity to resume effective operation of the timeshare

16  plan, or to enter an order terminating the timeshare plan, or

17  to enter such further orders regarding the disposition of the

18  timeshare property as the court deems appropriate including

19  the disposition and sale of the timeshare property held by the

20  association or the purchasers. In the event of a receiver's

21  sale, all rights, title, and interest held by the association

22  or any purchaser shall be extinguished and title shall vest in

23  the buyer. This provision applies to timeshare estates and

24  timeshare licenses.  All reasonable costs and fees of the

25  receiver relating to the receivership shall become common

26  expenses of the timeshare plan upon order of the court.

27         3.  The division may revoke its approval of any filing

28  for any timeshare plan for which a petition for receivership

29  has been filed pursuant to this paragraph.

30         (e)1.  The division may impose a penalty against any

31  regulated party for a violation of this chapter or any rule

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  1  adopted thereunder.  A penalty may be imposed on the basis of

  2  each day of continuing violation, but in no event may the

  3  penalty for any offense exceed $10,000.  All accounts

  4  collected shall be deposited with the Treasurer to the credit

  5  of the Division of Florida Land Sales, Condominiums, and

  6  Mobile Homes Trust Fund.

  7         2.a.  If a regulated party fails to pay a penalty, the

  8  division shall thereupon issue an order directing that such

  9  regulated party cease and desist from further operation until

10  such time as the penalty is paid; or the division may pursue

11  enforcement of the penalty in a court of competent

12  jurisdiction.

13         b.  If an association or managing entity fails to pay a

14  civil penalty, the division may pursue enforcement in a court

15  of competent jurisdiction.

16         Section 32.  Section 721.27, Florida Statutes, is

17  amended to read:

18         721.27  Annual fee for each timeshare unit period in

19  plan.--On January 1 of each year, each managing entity of a

20  timeshare plan located in this state shall collect as a common

21  expense and pay to the division an annual fee of $2 for each 7

22  days of equal to the aggregate filing fee calculated pursuant

23  to s. 721.07(4)(a) or s. 721.58, whichever is applicable,

24  based upon the total number of periods of 7-day annual use

25  availability that exist within the timeshare plan at that

26  time, subject to any limitations on the amount of such annual

27  fee pursuant to s. 721.58.  Each developer of a phased

28  timeshare plan shall remit to the managing entity that portion

29  of the annual fee that relates to those timeshare units filed

30  for sale by the developer but not yet declared as part of the

31  condominium or cooperative regime or otherwise committed to

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  1  the timeshare plan before January 1. If any portion of the

  2  annual fee is not paid by March 1, the managing entity may be

  3  assessed a penalty pursuant to s. 721.26 shall be assessed a

  4  late fee of 10 percent of the amount due or $250, whichever is

  5  greater.

  6         Section 33.  Section 721.29, Florida Statutes, is

  7  created to read:

  8         721.29  Recording.--If any timeshare plan

  9  accommodations or facilities are located in any jurisdiction

10  that does not have recording laws or will not record any

11  document or instrument required to be recorded pursuant to

12  this chapter, the division shall have the discretion to accept

13  an alternative method of protecting purchasers' rights that

14  will be effective under the laws of that other jurisdiction.

15         Section 34.  Section 721.51, Florida Statutes, is

16  amended to read:

17         721.51  Legislative purpose; scope.--

18         (1)  The purpose of this part is to advance the

19  purposes of this chapter as set forth in s. 721.02 with

20  respect to multisite vacation and timeshare plans, also known

21  as vacation clubs.

22         (2)  All multisite timeshare plans shall be governed by

23  both part I and this part except where otherwise provided in

24  this part.  In the event of a conflict between the provisions

25  of part I and this part, the provisions of this part shall

26  prevail.

27         (3)(a)  A multisite timeshare plan which includes

28  accommodations located in this state, but which is offered

29  exclusively outside of the jurisdictional limits of the United

30  States shall be exempt from all other requirements of this

31  part if it complies with paragraph (b).

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  1         (b)  In order to claim exemption from regulation under

  2  this part pursuant to paragraph (a), the person claiming

  3  exemption shall register the following minimum information

  4  with the division pertaining to the multisite timeshare plan:

  5         1.  The name and address of the multisite timeshare

  6  plan;

  7         2.  The name and address of the developer or seller;

  8         3.  The location and a brief description of the

  9  accommodations and facilities of the multisite timeshare plan;

10         4.  The number of timeshare periods to be offered;

11         5.  The term of the multisite timeshare plan; and

12         6.  A copy of the form purchase contract to be utilized

13  in offering the multisite timeshare plan, which contract must

14  contain the disclosure required by paragraph (c).

15

16  The division is authorized to adopt rules requiring additional

17  information to be furnished to the division or in the purchase

18  contract in connection with the registration for exemption.

19  The initial exemption registration fee shall be $100; however,

20  the division may provide by rule for an exemption registration

21  fee of up to $500.  No person shall be entitled to claim

22  exemption pursuant to paragraph (a) until that person has

23  fully registered pursuant to this paragraph.

24         (c)  Each purchase contract utilized in offering a

25  multisite timeshare plan for which an exemption is claimed

26  pursuant to this subsection shall contain the following

27  disclosure in conspicuous type immediately above the space

28  provided for the purchaser's signature:

29

30         The offering of this timeshare plan outside the

31  jurisdictional limits of the United States of America is

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  1  exempt from regulation under Florida law, and any purchase

  2  resulting from such an offer is not protected by the State of

  3  Florida.  However, the management and operation of any

  4  accommodations or facilities located in Florida is subject to

  5  Florida law and may give rise to enforcement action regardless

  6  of the location of any offer.

  7         Section 35.  Paragraph (a) of subsection (4) of section

  8  721.52, Florida Statutes, is amended to read:

  9         721.52  Definitions.--As used in this chapter part, the

10  term:

11         (4)  "Multisite timeshare plan" means any method,

12  arrangement, or procedure with respect to which a purchaser

13  obtains, by any means, a recurring right to use and occupy

14  accommodations or facilities of more than one component site,

15  only through use of a reservation system, whether or not the

16  purchaser is able to elect to cease participating in the plan.

17  However, the term "multisite timeshare plan" shall not include

18  any method, arrangement, or procedure wherein:

19         (a)  The contractually specified maximum total

20  financial obligation on the purchaser's part is $3,000 or

21  less, during the entire term of the plan $1,500 or less,

22  excluding the aggregate amount of any common expense

23  assessments and special assessments levied by an owners'

24  association or other person who is not an affiliate of the

25  seller or the developer, provided that any such assessment

26  obligations are fully described as accurately as possible in

27  the purchaser's purchase contract, but including all other

28  amounts paid by such purchaser for any purpose whatsoever,

29  regardless of the term of such use and occupancy rights; or

30

31

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  1  Multisite timeshare plan does not mean an exchange program as

  2  defined in s. 721.05.  Timeshare estates may only be offered

  3  in a multisite timeshare plan pursuant to s. 721.57.

  4         Section 36.  Paragraph (e) is added to subsection (1)

  5  of section 721.53, Florida Statutes, to read:

  6         721.53  Subordination instruments; alternate security

  7  arrangements.--

  8         (1)  With respect to each accommodation or facility of

  9  a multisite timeshare plan, the developer shall provide the

10  division with satisfactory evidence that one of the following

11  has occurred with respect to each interestholder prior to

12  offering the accommodation or facility as a part of the

13  multisite timeshare plan:

14         (e)  The interestholder has transferred the subject

15  accommodation or facility or all use rights therein to a trust

16  that complies with this paragraph. Prior to such transfer, any

17  lien or other encumbrance against such accommodation or

18  facility shall be made subject to a nondisturbance and notice

19  to creditors instrument pursuant to paragraph (a) or a

20  subordination and notice to creditors instrument pursuant to

21  paragraph (b). No transfer pursuant to this paragraph shall

22  become effective until the trust accepts such transfer and the

23  responsibilities set forth herein. A trust established

24  pursuant to this paragraph shall comply with the following

25  provisions:

26         1.  The trustee shall be an individual or a business

27  entity authorized and qualified to conduct trust business in

28  this state. Any corporation authorized to do business in this

29  state may act as trustee in connection with a timeshare plan

30  pursuant to this chapter. The trustee must be independent from

31  any developer or managing entity of the timeshare plan or any

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  1  interestholder of any accommodation or facility of such plan.

  2  The same trustee may hold the accommodations and facilities,

  3  or use rights therein, for one or more of the component sites

  4  of the timeshare plan.

  5         2.  The trust shall be irrevocable so long as any

  6  purchaser has a right to occupy any portion of the timeshare

  7  property pursuant to the timeshare plan.

  8         3.  The trustee shall not convey, hypothecate,

  9  mortgage, assign, lease, or otherwise transfer or encumber in

10  any fashion any interests in or portion of the timeshare

11  property with respect to which any purchaser has a right of

12  use or occupancy unless the timeshare plan is terminated

13  pursuant to the timeshare instrument, or the timeshare

14  property held in trust is deleted from a multisite timeshare

15  plan pursuant to s. 721.552(3), or such conveyance,

16  hypothecation, mortgage, assignment, lease, transfer, or

17  encumbrance is approved by vote of two-thirds of all voting

18  interests of the timeshare plan and such decision is declared

19  by a court of competent jurisdiction to be in the best

20  interests of the purchasers of the timeshare plan.

21         4.  All purchasers of the timeshare plan or the owners'

22  association of the timeshare plan shall be express

23  beneficiaries of the trust. The trustee shall act as a

24  fiduciary to the beneficiaries of the trust. The personal

25  liability of the trustee shall be governed by s. 737.306. The

26  agreement establishing the trust shall set forth the duties of

27  the trustee. The trustee shall be required to furnish promptly

28  to the division upon request a copy of the complete list of

29  the names and addresses of the owners in the timeshare plan

30  and a copy of any other books and records of the timeshare

31  plan required to be maintained pursuant to s. 721.13 that are

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  1  in the possession of the trustee. All expenses reasonably

  2  incurred by the trustee in the performance of its duties,

  3  together with any reasonable compensation of the trustee,

  4  shall be common expenses of the timeshare plan.

  5         5.  The trustee shall not resign upon less than 90 days

  6  prior written notice to the managing entity and the division.

  7  No resignation shall become effective until a substitute

  8  trustee, approved by the division, is appointed by the

  9  managing entity and accepts the appointment.

10         6.  The documents establishing the trust arrangement

11  shall constitute a part of the timeshare instrument.

12         7.  For trusts holding property in component sites

13  located outside this state, the trust holding such property

14  shall be deemed in compliance with the requirements of this

15  paragraph, if such trust is authorized and qualified to

16  conduct trust business under the laws of such jurisdiction and

17  the agreement or law governing such trust arrangement provides

18  substantially similar protections for the purchaser as are

19  required in this paragraph for trusts holding property in a

20  component site located in this state.

21         8.  The trustee shall have appointed a registered agent

22  in this state for service of process. In the event such a

23  registered agent is not appointed, service of process may be

24  served pursuant to s. 721.265.

25         Section 37.  Section 721.55, Florida Statutes, is

26  amended to read:

27         721.55  Multisite timeshare plan public offering

28  statement.--Each registered public offering statement filed

29  with the division for a multisite timeshare plan shall contain

30  the information required by this section and shall comply with

31  the provisions of s. 721.07, except as otherwise provided

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  1  therein. The division is authorized to provide by rule the

  2  method by which a developer must provide such information to

  3  the division.  Each multisite timeshare plan registered public

  4  offering statement shall contain the following information and

  5  disclosures:

  6         (1)  A cover page containing:

  7         (a)  The name of the multisite timeshare plan.

  8         (b)  The following statement in conspicuous type:

  9

10         This public offering statement contains important

11  matters to be considered in acquiring an interest in a

12  multisite timeshare plan (or multisite vacation ownership plan

13  or multisite vacation plan or vacation club).  The statements

14  contained herein are only summary in nature.  A prospective

15  purchaser should refer to all references, accompanying

16  exhibits hereto, contract documents, and sales materials.  The

17  prospective purchaser should not rely upon oral

18  representations as being correct and should refer to this

19  document and accompanying exhibits for correct

20  representations.

21

22         (2)  A summary containing all statements required to be

23  in conspicuous type in the public offering statement and in

24  all exhibits thereto.

25         (3)  A separate index for the contents and exhibits of

26  the public offering statement.

27         (4)  A text, which shall include, where applicable, the

28  information and disclosures set forth in paragraphs (a)-(l)

29  below together with cross-references to the location in the

30  public offering statement of each exhibit, if applicable.

31

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  1         (a)  A description of the multisite timeshare plan,

  2  including its term, legal structure, and form of ownership.

  3  For multisite timeshare plans in which the purchaser will

  4  receive a timeshare estate pursuant to s. 721.57 or a specific

  5  timeshare license as defined in s. 721.552(4), the description

  6  must also include the term of each component site within the

  7  multisite timeshare plan.

  8         (b)  A description of the structure and ownership of

  9  the reservation system together with a disclosure of the

10  entity responsible for the operation of the reservation

11  system.  The description shall include the financial terms of

12  any lease of the reservation system, if applicable.  The

13  developer shall not be required to disclose the financial

14  terms of any such lease if such lease is prepaid in full for

15  the term of the multisite timeshare plan or to any extent that

16  neither purchasers nor the managing entity will be required to

17  make payments for the continued use of the system following

18  default by the developer or termination of the managing

19  entity.

20         (c)1.  A description of the manner in which the

21  reservation system operates.  The description shall include a

22  disclosure in compliance with the demand balancing standard

23  set forth in s. 721.56(6) and shall describe the developer's

24  efforts to comply with same in creating the reservation

25  system. The description shall also include a summary of the

26  rules and regulations governing access to and use of the

27  reservation system.

28         2.  In lieu of describing the rules and regulations of

29  the reservation system in the public offering statement text,

30  the developer may attach the rules and regulations as a

31  separate public offering statement exhibit, together with a

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  1  cross-reference in the public offering statement text to such

  2  exhibit.

  3         3.  For each component site for which occupancy

  4  information is available, the developer shall disclose the

  5  average level of occupancy calculated by category of quarter

  6  or season for the calendar year including the date 2 years

  7  prior to the date on which the multisite timeshare plan is

  8  first offered.  Every 2 years such averages must be revised

  9  and updated. In lieu of providing such information in the

10  public offering statement text, the developer may provide the

11  information in a public offering statement exhibit, together

12  with a cross-reference in the public offering statement text

13  to such exhibit.

14         (d)  The existence of and an explanation regarding any

15  priority reservation features that affect a purchaser's

16  ability to make reservations for the use of a given

17  accommodation or facility on a first come, first served basis,

18  including, if applicable, the following statement in

19  conspicuous type:

20

21         Component sites contained in the multisite timeshare

22  plan (or multisite vacation ownership plan or multisite

23  vacation plan or vacation club) are subject to priority

24  reservation features which may affect your ability to obtain a

25  reservation.

26

27         (e)  A summary of the material rules and regulations,

28  if any, other than the reservation system rules and

29  regulations, affecting the purchaser's use of each

30  accommodation and facility at each component site.

31

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  1         (f)  If the provisions of s. 721.552 and the timeshare

  2  instrument permit additions, substitutions, or deletions of

  3  accommodations or facilities, the public offering statement

  4  must include substantially the following information:

  5         1.  Additions.--

  6         a.  A description of the basis upon which new

  7  accommodations and facilities may be added to the multisite

  8  timeshare plan; by whom additions may be made; and the

  9  anticipated effect of the addition of new accommodations and

10  facilities upon the reservation system, its priorities, its

11  rules and regulations, and the availability of existing

12  accommodations and facilities.

13         b.  The developer must disclose the existence of any

14  cap on annual increases in common expenses of the multisite

15  timeshare plan that would apply in the event that additional

16  accommodations and facilities are made a part of the plan.

17         c.  The developer shall also disclose any extent to

18  which the purchasers of the multisite timeshare plan will have

19  the right to consent to any proposed additions; if the

20  purchasers do not have the right to consent, the developer

21  must include the following disclosure in conspicuous type:

22

23         Accommodations and facilities may be added to this

24  multisite timeshare plan (or multisite vacation ownership plan

25  or multisite vacation plan or vacation club) without the

26  consent of the purchasers.  The addition of accommodations and

27  facilities to the plan may result in the addition of new

28  purchasers who will compete with existing purchasers in making

29  reservations for the use of available accommodations and

30  facilities within the plan, and may also result in an increase

31

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  1  in the annual assessment against purchasers for common

  2  expenses.

  3

  4         2.  Substitutions.--

  5         a.  A description of the basis upon which new

  6  accommodations and facilities may be substituted for existing

  7  accommodations and facilities of the multisite timeshare plan;

  8  by whom substitutions may be made; the basis upon which the

  9  determination may be made to cause such substitutions to

10  occur; and any limitations upon the ability to cause

11  substitutions to occur.

12         b.  The developer shall also disclose any extent to

13  which purchasers will have the right to consent to any

14  proposed substitutions; if the purchasers do not have the

15  right to consent, the developer must include the following

16  disclosure in conspicuous type:

17

18         New accommodations and facilities may be substituted

19  for existing accommodations and facilities of this multisite

20  timeshare plan (or multisite vacation ownership plan or

21  multisite vacation plan or vacation club) without the consent

22  of the purchasers.  The replacement accommodations and

23  facilities may be located at a different place or may be of a

24  different type or quality than the replaced accommodations and

25  facilities.  The substitution of accommodations and facilities

26  may also result in an increase in the annual assessment

27  against purchasers for common expenses.

28

29         3.  Deletions.--A description of any provision of the

30  timeshare instrument governing deletion of accommodations or

31  and facilities from the multisite timeshare plan.  If the

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  1  timeshare instrument does not provide for business

  2  interruption insurance in the event of a casualty, or if it is

  3  unavailable, or if the instrument permits the developer, the

  4  managing entity, or the purchasers to elect not to reconstruct

  5  after casualty under certain circumstances or to secure

  6  replacement accommodations or facilities in lieu of

  7  reconstruction, the public offering statement must contain a

  8  disclosure that during the reconstruction, replacement, or

  9  acquisition period, or as a result of a decision not to

10  reconstruct, purchasers of the plan may temporarily compete

11  for available accommodations on a greater than one-to-one

12  purchaser to accommodation ratio.

13         (g)  A description of the developer and the managing

14  entity of the multisite timeshare plan, including:

15         1.  The identity of the developer; the developer's

16  business address; the number of years of experience the

17  developer has in the timeshare, hotel, motel, travel, resort,

18  or leisure industries; and a description of any pending

19  lawsuit or judgment against the developer which is material to

20  the plan.  If there are no such pending lawsuits or judgments,

21  there shall be a statement to that effect.

22         2.  The identity of the managing entity of the

23  multisite timeshare plan; the managing entity's business

24  address; the number of years of experience the managing entity

25  has in the timeshare, hotel, motel, travel, resort, or leisure

26  industries; and a description of any lawsuit or judgment

27  against the managing entity which is material to the plan.  If

28  there are no pending lawsuits or judgments, there shall be a

29  statement to that effect.  The description of the managing

30  entity shall also include a description of the relationship

31

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  1  among the managing entity of the multisite timeshare plan and

  2  the various component site managing entities.

  3         (h)  A description of the purchaser's liability for

  4  common expenses of the multisite timeshare plan, including the

  5  following:

  6         1.  A description of the common expenses of the plan,

  7  including the method of allocation and assessment of such

  8  common expenses, whether component site common expenses and

  9  real estate taxes are included within the total common expense

10  assessment of the multisite timeshare plan, and, if not, the

11  manner in which timely payment of component site common

12  expenses and real estate taxes shall be accomplished.

13         2.  A description of any cap imposed upon the level of

14  common expenses payable by the purchaser.  In no event shall

15  the total common expense assessment for the multisite

16  timeshare plan in a given calendar year exceed 125 percent of

17  the total common expense assessment for the plan in the

18  previous calendar year.

19         3.  A description of the entity responsible for the

20  determination of the common expenses of the multisite

21  timeshare plan, as well as any entity which may increase the

22  level of common expenses assessed against the purchaser at the

23  multisite timeshare plan level.

24         4.  A description of the method used to collect common

25  expenses, including the entity responsible for such

26  collections, and the lien rights of any entity for nonpayment

27  of common expenses.  If the common expenses of any component

28  site are collected by the managing entity of the multisite

29  timeshare plan, a statement to that effect together with the

30  identity and address of the escrow agent required by s.

31  721.56(3).

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  1         5.  If the purchaser will receive a nonspecific

  2  timeshare license as defined in s. 721.552(4), a statement

  3  that a multisite timeshare plan budget is attached to the

  4  public offering statement as an exhibit pursuant to paragraph

  5  (7)(c).  The multisite timeshare plan budget shall comply with

  6  the provisions of s. 721.07(5)(u)(x).

  7         6.  If the developer intends to guarantee the level of

  8  assessments for the multisite timeshare plan, such guarantee

  9  must be based upon a good faith estimate of the revenues and

10  expenses of the multisite timeshare plan. The guarantee must

11  include a description of the following:

12         a.  The specific time period, measured in one or more

13  calendar or fiscal years, during which the guarantee will be

14  in effect.

15         b.  A statement that the developer will pay all common

16  expenses incurred in excess of the total revenues of the

17  multisite timeshare plan, if the developer is to be excused

18  from the payment of assessments during the guarantee period.

19         c.  The level, expressed in total dollars, at which the

20  developer guarantees the assessments.  If the developer has

21  reserved the right to extend or increase the guarantee level,

22  a disclosure must be included to that effect.

23         7.  If As required under applicable law, the developer

24  shall also disclose the following matters for each component

25  site:

26         a.  Any limitation upon annual increases in common

27  expenses;

28         b.  The existence of any bad debt or working capital

29  reserve; and

30         c.  The existence of any replacement or deferred

31  maintenance reserve.

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  1         (i)  If there are any restrictions upon the sale,

  2  transfer, conveyance, or leasing of an interest in a multisite

  3  timeshare plan, a description of the restrictions together

  4  with a statement in conspicuous type in substantially the

  5  following form:

  6

  7         The sale, lease, or transfer of interests in this

  8  multisite timeshare plan is restricted or controlled.

  9

10         (j)  The following statement in conspicuous type in

11  substantially the following form:

12

13         The purchase of an interest in a multisite timeshare

14  plan (or multisite vacation ownership plan or multisite

15  vacation plan or vacation club) should be based upon its value

16  as a vacation experience or for spending leisure time, and not

17  considered for purposes of acquiring an appreciating

18  investment or with an expectation that the interest may be

19  resold.

20

21         (k)  If the multisite timeshare plan provides

22  purchasers with the opportunity to participate in an exchange

23  program, a description of the name and address of the exchange

24  company and the method by which a purchaser accesses the

25  exchange program.  In lieu of this requirement, the public

26  offering statement text may contain a cross-reference to other

27  provisions in the public offering statement or in an exhibit

28  containing this information.

29         (l)  A description of each component site, which

30  description may be disclosed in a written, graphic, tabular,

31

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  1  or other form approved by the division.  The description of

  2  each component site shall include the following information:

  3         1.  The name and address of each component site.

  4         2.  The number of accommodations, timeshare interests,

  5  and timeshare periods, expressed in periods of 7-day use

  6  availability, committed to the multisite timeshare plan and

  7  available for use by purchasers.

  8         3.  Each type of accommodation in terms of the number

  9  of bedrooms, bathrooms, sleeping capacity, and whether or not

10  the accommodation contains a full kitchen.  For purposes of

11  this description, a full kitchen shall mean a kitchen having a

12  minimum of a dishwasher, range, sink, oven, and refrigerator.

13         4.  A description of facilities available for use by

14  the purchaser at each component site, including the following:

15         a.  The intended use of the facility, if not apparent

16  from the description.

17         b.  The capacity of the facility in terms of the number

18  of people who can use it at any one time.

19         c.  If the facility is a swimming pool, a statement as

20  to whether or not the pool is heated.

21         b.d.  Any user fees associated with a purchaser's use

22  of the facility.

23         5.  A cross-reference to the location in the public

24  offering statement of the description of any priority

25  reservation features which may affect a purchaser's ability to

26  obtain a reservation in the component site.

27         (5)  Such other information as the division determines

28  is necessary to fairly, meaningfully, and effectively disclose

29  all aspects of the multisite timeshare plan, including, but

30  not limited to, any disclosures made necessary by the

31  operation of s. 721.03(8)(9).  However, if a developer has, in

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  1  good faith, attempted to comply with the requirements of this

  2  section, and if, in fact, the developer has substantially

  3  complied with the disclosure requirements of this chapter,

  4  nonmaterial errors or omissions shall not be actionable.

  5         (6)  Any other information that the developer, with the

  6  approval of the division, desires to include in the public

  7  offering statement text.

  8         (7)  The following documents shall be included as

  9  exhibits to the registered public offering statement filed

10  with the division, if applicable:

11         (a)  The timeshare instrument.

12         (b)  The reservation system rules and regulations.

13         (c)  The multisite timeshare plan budget pursuant to

14  subparagraph (4)(h)5.

15         (d)  Any document containing the material rules and

16  regulations described in paragraph (4)(e).

17         (e)  Any contract, agreement, or other document through

18  which component sites are affiliated with the multisite

19  timeshare plan.

20         (f)  Any escrow agreement required pursuant to s.

21  721.08 or s. 721.56(3).

22         (g)  The form agreement for sale or lease of an

23  interest in the multisite timeshare plan.

24         (h)  The form receipt for multisite timeshare plan

25  documents required to be given to the purchaser pursuant to s.

26  721.551(2)(b).

27         (i)  The description of documents list required to be

28  given to the purchaser by s. 721.551(2)(b).

29         (j)  The component site managing entity affidavit or

30  statement required by s. 721.56(1).

31

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  1         (k)  Any subordination instrument required by s.

  2  721.53.

  3         (l)1.  If the multisite timeshare plan contains any

  4  component sites located in this state, the information

  5  required by s. 721.07(5) pertaining to each such component

  6  site unless exempt pursuant to s. 721.03.

  7         2.  If the purchaser will receive a timeshare estate

  8  pursuant to s. 721.57 or a specific timeshare license as

  9  defined in s. 721.552(4) in a component site located outside

10  of this state but which is offered in this state, the

11  information required by s. 721.07(5) pertaining to that

12  component site provided, however, that the provisions of s.

13  721.07(5)(u) shall only require disclosure of information

14  related to the estimated budget for the timeshare plan and

15  purchaser's expenses as required by the jurisdiction in which

16  the component site is located.

17         (8)(a)  A timeshare plan containing only one component

18  site must be filed with the division as a multisite timeshare

19  plan if the timeshare instrument reserves the right for the

20  developer to add future component sites. However, if the

21  developer fails to add at least one additional component site

22  to a timeshare plan described in this paragraph within 3 years

23  after the date the plan is initially filed with the division,

24  the multisite filing for such plan shall thereupon terminate,

25  and the developer may not thereafter offer any further

26  interests in such plan unless and until he or she refiles such

27  plan with the division pursuant to this chapter.

28         (b)  The public offering statement for any timeshare

29  plan described in paragraph (a) must include the following

30  disclosure in conspicuous type:

31

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  1         This timeshare plan has been filed as a multisite

  2  timeshare plan (or multisite vacation ownership plan or

  3  multisite vacation plan or vacation club); however, this plan

  4  currently contains only one component site.  The developer is

  5  not required to add any additional component sites to the

  6  plan. Do not purchase an interest in this plan in reliance

  7  upon the addition of any other component sites.

  8         Section 38.  Subsection (2) of section 721.551, Florida

  9  Statutes, is amended to read:

10         721.551  Delivery of multisite timeshare plan purchaser

11  public offering statement.--

12         (2)  The developer shall furnish each purchaser with

13  the following:

14         (a)  A copy of the approved multisite timeshare plan

15  public offering statement text filed with the division

16  containing the information required by s. 721.55(1)-(6).

17         (b)  A receipt for multisite timeshare plan documents

18  and a list describing any exhibit to the registered public

19  offering statement filed with the division which is not

20  delivered to the purchaser. The division is authorized to

21  prescribe by rule the form of the receipt for multisite

22  timeshare plan documents and the description of exhibits list

23  that must be furnished to the purchaser pursuant to this

24  section.

25         (c)  If the purchaser will receive a timeshare estate

26  pursuant to s. 721.57 or a specific timeshare license as

27  defined in s. 721.552(4) in a component site located in this

28  state, the developer shall also furnish the purchaser with the

29  information required to be delivered pursuant to s.

30  721.07(6)(a) and (b) for the component site in which the

31  purchaser will receive an estate or license.

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  1         (d)  Any other exhibit that the developer elects to

  2  include as part of the purchaser public offering statement to

  3  be furnished to purchasers, provided that the developer first

  4  files the exhibit with the division.

  5         (e)  An executed copy of any document which the

  6  purchaser signs.

  7         (f)  The developer shall be required to provide the

  8  managing entity of the multisite timeshare plan with a copy of

  9  the approved registered public offering statement text and

10  exhibits filed with the division and any approved amendments

11  thereto to be maintained by the managing entity as part of the

12  books and records of the timeshare plan pursuant to s.

13  721.13(3)(d).

14         Section 39.  Paragraph (a) of subsection (3) of section

15  721.552, Florida Statutes, is amended to read:

16         721.552  Additions, substitutions, or deletions of

17  component site accommodations or facilities; purchaser

18  remedies for violations.--Additions, substitutions, or

19  deletions of component site accommodations or facilities may

20  be made only in accordance with the following:

21         (3)  DELETIONS.--

22         (a)  Deletion by casualty.--

23         1.  Pursuant to s. 721.165, the timeshare instrument

24  creating the multisite timeshare plan must provide for

25  casualty insurance for the accommodations and facilities of

26  the multisite timeshare plan in an amount equal to the

27  replacement cost of such the accommodations or facilities.

28  The timeshare instrument must also provide that in the event

29  of a casualty that results in accommodations or facilities

30  being unavailable for use by purchasers, the managing entity

31

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  1  shall notify all affected purchasers of such unavailability of

  2  use within 30 days after the event of casualty.

  3         2.  The timeshare instrument must also provide for the

  4  application of any insurance proceeds arising from a casualty

  5  to either the replacement or acquisition of additional similar

  6  accommodations or facilities or to the removal of purchasers

  7  from the multisite timeshare plan so that purchasers will not

  8  be competing for available accommodations on a greater than

  9  one-to-one purchaser to accommodation ratio.

10         3.  If the timeshare instrument does not provide for

11  business interruption insurance, or if it is unavailable, or

12  if the instrument permits the developer, the managing entity,

13  or the purchasers to elect not to reconstruct after casualty

14  under certain circumstances or to secure replacement

15  accommodations or facilities in lieu of reconstruction,

16  purchasers of the plan may temporarily compete for available

17  accommodations on a greater than one-to-one purchaser to

18  accommodation ratio.  The decision whether or not to

19  reconstruct shall be made as promptly as possible under the

20  circumstances.

21         4.  Any replacement of accommodations or facilities

22  pursuant to this paragraph shall be made upon the same basis

23  as required for substitution as set forth in subparagraph

24  (2)(b)2.

25         Section 40.  Section 721.553, Florida Statutes, is

26  repealed.

27         Section 41.  Subsection (2) and paragraphs (a) and (c)

28  of subsection (5) of section 721.56, Florida Statutes, are

29  amended to read:

30         721.56  Management of multisite timeshare plans;

31  reservation systems; demand balancing.--

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  1         (2)  In the event that the developer files an affidavit

  2  or other evidence with the division pursuant to subsection (1)

  3  and subsequently determines that the status of the component

  4  site has materially changed such that any portion of the

  5  affidavit or other evidence is consequently materially

  6  changed, the developer shall immediately notify the division

  7  of the change. In any event, the affidavit required by

  8  subsection (1) shall be renewed at least annually.

  9         (5)(a)1.  The reservation system is a facility of any

10  nonspecific timeshare license multisite timeshare plan as

11  defined in s. 721.552(4).  The reservation system is not a

12  facility of any specific timeshare license multisite timeshare

13  plan as defined in s. 721.552(4), nor is it a facility of any

14  multisite timeshare plan in which timeshare estates are

15  offered pursuant to s. 721.57.

16         2.  The reservation system of any multisite timeshare

17  plan shall include any computer software and hardware employed

18  for the purpose of enabling or facilitating the operation of

19  the reservation system. Nothing contained in this part shall

20  preclude a manager or management firm company that is serving

21  as managing entity of a multisite timeshare plan from

22  providing in its contract with the purchasers or owners'

23  association of the multisite timeshare plan or in the

24  timeshare instrument that the manager or management firm

25  company owns the reservation system and that the managing

26  entity shall continue to own the reservation system in the

27  event the purchasers discharge the managing entity pursuant to

28  s. 721.14.

29         (c)  In the event of a termination of a managing entity

30  of a timeshare estate or specific license multisite timeshare

31  plan as defined in s. 721.552(4), which managing entity owns

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  1  the reservation system, irrespective of whether the

  2  termination is voluntary or involuntary and irrespective of

  3  the cause of such termination, in addition to any other

  4  remedies available to purchasers in this part, the terminated

  5  managing entity shall, prior to such termination, promptly

  6  transfer to each component site managing entity all relevant

  7  data contained in the reservation system with respect to that

  8  component site, including, but not limited to:

  9         1.  The names, addresses, and reservation status of

10  component site accommodations.

11         2.  The names and addresses of all purchasers of

12  timeshare interests periods at that component site.

13         3.  All outstanding confirmed reservations and

14  reservation requests for that component site.

15         4.  Such other component site records and information

16  as are necessary, in the reasonable discretion of the

17  component site managing entity, to permit the uninterrupted

18  operation and administration of the component site, provided

19  that a given component site managing entity shall not be

20  entitled to any information regarding other component sites or

21  regarding the terminated multisite timeshare plan managing

22  entity.

23

24  All reasonable costs incurred by the terminated managing

25  entity in effecting the transfer of information required by

26  this paragraph shall be reimbursed to the terminated managing

27  entity on a pro rata basis by each component site, and the

28  amount of such reimbursement shall constitute a common expense

29  of each component site.

30         Section 42.  Subsection (3) of section 721.81, Florida

31  Statutes, is amended to read:

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  1         721.81  Legislative purpose.--The purposes of this part

  2  are to:

  3         (3)  Recognize the need to assist vacation ownership

  4  resort owners' associations and mortgagees by simplifying and

  5  expediting the process of foreclosure of assessment liens and

  6  mortgage liens against timeshare estates.

  7         Section 43.  Paragraph (a) of subsection (1) of section

  8  721.82, Florida Statutes, is amended to read:

  9         721.82  Definitions.--As used in this part, the term:

10         (1)  "Assessment lien" means:

11         (a)  A lien for delinquent assessments as provided in

12  ss. 721.16, and 718.116, and 719.108 as to timeshare

13  condominiums; or

14         Section 44.  Paragraph (b) of subsection (5) of section

15  721.84, Florida Statutes, is amended to read:

16         721.84  Appointment of a registered agent; duties.--

17         (5)  A registered agent may resign his or her agency

18  appointment for any obligor for which he or she serves as

19  registered agent, provided that:

20         (b)  A successor registered agent is appointed and such

21  successor registered agent executes an acceptance of

22  appointment as successor registered agent and satisfies all of

23  the requirements of subsection (1). The resigning registered

24  agent may designate the successor registered agent; however,

25  if the resigning registered agent fails to designate a

26  successor registered agent or the designated successor

27  registered agent fails to accept, the successor registered

28  agent for the affected obligors may be designated by the

29  mortgagee as to the mortgage lien and by the owners'

30  association of the timeshare plan as to the assessment lien;

31  and

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  1         Section 45.  Subsection (2) of section 721.85, Florida

  2  Statutes, is amended to read:

  3         721.85  Service to notice address or on registered

  4  agent.--

  5         (2)  The current owner and the mortgagor of a timeshare

  6  estate must promptly notify the owners' association of the

  7  timeshare plan and the mortgagee of any change of address.

  8         Section 46.  Subsection (1) of section 721.86, Florida

  9  Statutes, is amended to read:

10         721.86  Miscellaneous provisions.--

11         (1)  The procedures in this part must be given effect

12  in the context of any foreclosure proceedings against

13  timeshare estates governed by this chapter, chapter 702, or

14  chapter 718, or chapter 719.

15         Section 47.  Subsection (22) of section 718.103,

16  Florida Statutes, is amended to read:

17         718.103  Definitions.--As used in this chapter, the

18  term:

19         (22)  "Residential condominium" means a condominium

20  consisting of condominium units, any of which are intended for

21  use as a private temporary or permanent residence, except that

22  a condominium is not a residential condominium if the use for

23  which the units are intended is primarily commercial or

24  industrial and not more than three units are intended to be

25  used for private residence, and are intended to be used as

26  housing for maintenance, managerial, janitorial, or other

27  operational staff of the condominium. With respect to a

28  condominium that is not a timeshare condominium, a residential

29  unit includes a unit intended as a private temporary or

30  permanent residence as well as a unit not intended for

31  commercial or industrial use. With respect to a timeshare

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  1  condominium, the timeshare instrument as defined in s.

  2  721.05(33)(30) shall govern the intended use of each unit in

  3  the condominium. If a condominium is a residential condominium

  4  but contains units intended to be used for commercial or

  5  industrial purposes, then, with respect to those units which

  6  are not intended for or used as private residences, the

  7  condominium is not a residential condominium.  A condominium

  8  which contains both commercial and residential units is a

  9  mixed-use condominium subject to the requirements of s.

10  718.404.

11         Section 48.  If any provision of this act or the

12  application thereof to any person or circumstance is held

13  invalid, the invalidity does not affect other provisions or

14  applications of the act which can be given effect without the

15  invalid provision or application, and to this end the

16  provisions of this act are declared severable.

17         Section 49.  This act shall take effect upon becoming a

18  law; however, all documents filed and approved in accordance

19  with chapter 721, Florida Statutes, prior to the effective

20  date of this act, or any amendments to such documents made

21  subsequent to the date this act becomes a law that are

22  otherwise in compliance with chapter 721, Florida Statutes,

23  prior to the effective date of this act, shall be deemed to be

24  in compliance with the filing requirements of chapter 721,

25  Florida Statutes.

26

27

28

29

30

31

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