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