CS for SB 818                              First Engrossed (ntc)
       
       
       
       
       
       
       
       
       2017818e1
       
    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, except as to any timeshare interest, timeshare
   57  unit, or other unit that is specifically subject to, or
   58  otherwise dedicated to, the multisite timeshare plan, does not
   59  include a developer; an owner of the underlying fee or owner of
   60  the underlying personal property; a mortgagee, judgment
   61  creditor, or other lienor; or any other person having an
   62  interest in or lien or encumbrance against a timeshare interest
   63  in such single-site timeshare plan, or an interest in or lien or
   64  encumbrance against a timeshare unit or other unit in such
   65  condominium or property regime. This paragraph is intended only
   66  as a clarification of existing law.
   67         Section 2. Subsection (11) is added to section 721.08,
   68  Florida Statutes, to read:
   69         721.08 Escrow accounts; nondisturbance instruments;
   70  alternate security arrangements; transfer of legal title.—
   71         (11) A timeshare instrument, declaration of condominium, or
   72  other instrument establishing or governing a component site
   73  property regime is not an encumbrance for purposes of this
   74  chapter and does not create a requirement for a nondisturbance
   75  and notice to creditors instrument for purposes of this section
   76  or a subordination and notice to creditors instrument for
   77  purposes of s. 721.53 from the managing entity, owners’
   78  association, or any other person. This subsection is intended
   79  only as a clarification of existing law.
   80         Section 3. Section 721.125, Florida Statutes, is amended to
   81  read:
   82         721.125 Extension or Termination of timeshare plans.—
   83         (1) Unless the timeshare instrument provides otherwise, the
   84  vote or written consent, or both, of 60 percent of all voting
   85  interests in a timeshare plan may extend or terminate the term
   86  of the timeshare plan at any time. If the term of a timeshare
   87  plan is extended pursuant to this section, all rights,
   88  privileges, duties, and obligations created under applicable law
   89  or the timeshare instrument continue in full force to the same
   90  extent as if the extended termination date of the timeshare plan
   91  were the original termination date of the timeshare plan. If a
   92  timeshare plan is terminated pursuant to this section, the
   93  termination has immediate effect pursuant to applicable law and
   94  the timeshare instrument as if the effective date of the
   95  termination were the original date of termination.
   96         (2) If a termination or extension vote or consent pursuant
   97  to subsection (1) is proposed for a component site of a
   98  multisite timeshare plan located in this state, the proposed
   99  termination or extension is effective only if the person
  100  authorized to make additions or substitutions of accommodations
  101  and facilities pursuant to the timeshare instrument also
  102  approves the termination or extension.
  103         (3)(a) If the timeshare property is managed by an owners’
  104  association that is separate from any underlying condominium,
  105  cooperative, or homeowners association, the termination of a
  106  timeshare plan does not change the corporate status of the
  107  owners’ association. The owners’ association continues to exist
  108  only for the purposes of concluding its affairs, prosecuting and
  109  defending actions by or against it, collecting and discharging
  110  obligations, disposing of and conveying its property, collecting
  111  and dividing its assets, and otherwise complying with this
  112  subsection.
  113         1. After termination of a timeshare plan, the board of
  114  administration of the owners’ association shall serve as the
  115  termination trustee, and in such fiduciary capacity may bring an
  116  action in partition on behalf of the tenants in common in each
  117  former timeshare property or sell the former timeshare property
  118  in any manner and to any person who is approved by a majority of
  119  all such tenants in common. The termination trustee also has all
  120  other powers reasonably necessary to effect the partition or
  121  sale of the former timeshare property, including the power to
  122  maintain the property during the pendency of any partition
  123  action or sale.
  124         2. All reasonable expenses incurred by the termination
  125  trustee relating to the performance of its duties pursuant to
  126  this subsection, including the reasonable fees of attorneys and
  127  other professionals, must be paid by the tenants in common of
  128  the former timeshare property subject to partition or sale,
  129  proportionate to their respective ownership interests.
  130         3. The termination trustee shall adopt reasonable
  131  procedures to implement the partition or sale of the former
  132  timeshare property and comply with the requirements of this
  133  subsection.
  134         (b) If a timeshare plan is terminated in a timeshare
  135  condominium or timeshare cooperative and the underlying
  136  condominium or cooperative is not simultaneously terminated, a
  137  majority of the tenants in common in each former timeshare unit
  138  present and voting in person or by proxy at a meeting of such
  139  tenants in common conducted by the termination trustee, or
  140  conducted by the board of administration of the condominium or
  141  cooperative association, if such association managed the former
  142  timeshare property, shall designate a voting representative for
  143  the unit and file a voting certificate with the condominium or
  144  cooperative association. The voting representative may vote on
  145  all matters at meetings of the condominium or cooperative
  146  association, including termination of the condominium or
  147  cooperative.
  148         (4)(3) This section applies only to a timeshare plan that
  149  has been in existence for at least 25 years as of the effective
  150  date of the termination or extension vote or consent required by
  151  subsection (1).
  152         Section 4. Section 721.1255, Florida Statutes, is created
  153  to read:
  154         721.1255 Extension of timeshare plans.—
  155         (1)(a) The Legislature finds that timeshare plans are
  156  created as authorized by statute. Most of the older timeshare
  157  properties located in this state are based on a condominium
  158  structure, and many of these older timeshare properties are
  159  approaching the termination dates set forth in their timeshare
  160  instruments.
  161         (b) The Legislature further finds that there are many older
  162  timeshare properties located in this state which have been well
  163  maintained over the years and continue to be financially
  164  supported, used, and enjoyed by their owners, exchangers,
  165  guests, renters, and others. In order to preserve the continued
  166  use, enjoyment, tax values, and overall viability of these
  167  timeshare properties, the Legislature further finds that the
  168  public policy of this state requires the creation of a statutory
  169  method to enable the owners of these timeshare properties to
  170  extend the terms of their timeshare plans, notwithstanding
  171  contrary provisions in their timeshare instruments which may
  172  create uncertainty for purchasers, prospective purchasers, and
  173  lenders, and which may discourage the ongoing maintenance,
  174  refurbishment, and improvement of these timeshare properties.
  175         (2)(a) Unless the timeshare instrument specifically
  176  provides a lower percentage, the vote or written consent, or
  177  both, of at least 66 percent of all eligible voting interests
  178  present in person or by proxy at a duly noticed, called, and
  179  constituted meeting of the owners’ association may, at any time,
  180  extend the term of the timeshare plan. If the term of a
  181  timeshare plan is extended pursuant to this section, all rights,
  182  privileges, duties, and obligations created under applicable law
  183  or the timeshare instrument continue in full force to the same
  184  extent as if the extended termination date of the timeshare plan
  185  were the original termination date of the timeshare plan.
  186         (b) Unless the timeshare instrument specifically provides
  187  for a lower quorum, the quorum for the owners’ association
  188  meeting described in paragraph (a) is 50 percent of all eligible
  189  voting interests in the timeshare plan.
  190         (c) The owners’ association meeting held pursuant to
  191  paragraph (a) may be held at any time before the termination of
  192  the timeshare plan.
  193         (d) The board of administration of the owners’ association
  194  may determine that any voting interest that is delinquent in the
  195  payment of more than 2 years of assessments is ineligible to
  196  vote on any extension of the timeshare plan unless such
  197  delinquency is paid in full before the vote.
  198         (e) A proxy for a vote to extend a timeshare plan pursuant
  199  to this section is valid for up to 3 years and is revocable
  200  unless the proxy states it is irrevocable.
  201         (3) If an extension vote or consent pursuant to this
  202  section is proposed for a component site of a multisite
  203  timeshare plan located in this state, the proposed extension is
  204  effective only if the person authorized to make additions or
  205  substitutions of accommodations and facilities pursuant to the
  206  timeshare instrument also approves the extension.
  207         Section 5. This act shall take effect upon becoming a law.