Bill Text: FL S0818 | 2017 | Regular Session | Enrolled
Bill Title: Timeshares
Spectrum: Bipartisan Bill
Status: (Passed) 2017-05-24 - Chapter No. 2017-22 [S0818 Detail]
Download: Florida-2017-S0818-Enrolled.html
ENROLLED 2017 Legislature CS for SB 818, 1st Engrossed 2017818er 1 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: 82 721.125Extension orTermination 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 mayextend orterminate the term 86 of the timeshare plan at any time.If the term of a timeshare87plan is extended pursuant to this section, all rights,88privileges, duties, and obligations created under applicable law89or the timeshare instrument continue in full force to the same90extent as if the extended termination date of the timeshare plan91were 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 terminationor extensionvote 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 terminationor extensionis 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 terminationor 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 terminationor extensionvote 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.