Bill Text: FL S0818 | 2017 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Timeshares
Spectrum: Bipartisan Bill
Status: (Passed) 2017-05-24 - Chapter No. 2017-22 [S0818 Detail]
Download: Florida-2017-S0818-Introduced.html
Bill Title: Timeshares
Spectrum: Bipartisan Bill
Status: (Passed) 2017-05-24 - Chapter No. 2017-22 [S0818 Detail]
Download: Florida-2017-S0818-Introduced.html
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: 81 721.125Extension orTermination 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 mayextend orterminate the term 85 of the timeshare plan at any time.If the term of a timeshare86plan is extended pursuant to this section, all rights,87privileges, duties, and obligations created under applicable law88or the timeshare instrument continue in full force to the same89extent as if the extended termination date of the timeshare plan90were 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 terminationor extensionvote 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 terminationor extensionis 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 terminationor 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 terminationor extensionvote 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.