This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0429c.JDC
DATE: 1/30/2024
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 429 Timeshare Properties
SPONSOR(S): Robinson, W.
TIED BILLS: IDEN./SIM. BILLS: SB 756
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development
Subcommittee
13 Y, 0 N Thompson Anstead
2) Judiciary Committee 21 Y, 0 N Mawn Kramer
3) Commerce Committee
SUMMARY ANALYSIS
Chapter 721, F.S., the Florida Vacation Plan and Timesharing Act (Timeshare Act), administered by the Division of
Florida Condominiums, Timeshares, and Mobile Homes (DFCT) within the Department of Business and
Professional Regulation (DBPR), establishes requirements for the creation, sale, exchange, promotion, and
operation of timeshare plans, including requirements for full and fair disclosure to purchasers and prospective
purchasers.
The Timeshare Act authorizes the board of administration of any owners' association that operates a timeshare
condominium, or a timeshare cooperative, to make “material alterations” or “substantial additions” to
accommodations or facilities without the approval of the owners' association. However, current law does not
authorize the board of administration to “delete” accommodations or facilities without the owners’ association’s
approval.
The Timeshare Act requires the managing entity of a timeshare plan to provide an “assessment certificate” within 30
days after receiving a written request from a timeshare interest owner, an agent designated in writing by the
timeshare interest owner, or a person providing resale transfer services for a consumer timeshare reseller. The
assessment certificate must be signed by an officer or agent of the managing entity, be provided to the person
requesting the certificate, and state the amount of any assessment, transfer fee, or other moneys currently owed to
the managing entity or approved by the managing entity that will be due within the next 90 days. However,
condominium and cooperative association purchasers are authorized to request that the seller provide an “estoppel
certificate,” from the condominium or cooperative association, which must be provided within 10 days after receiving
a written request. An estoppel certificate certifies the amount of any total debt owed to the association for unpaid
monetary obligations by a unit or parcel owner as of a specified date, and provides other information about recurring
assessments and other monetary obligations.
Operators of public lodging establishments or public food service establishments are authorized to remove or refuse
to accommodate persons for offenses such as drug use or intoxication. The Timeshare Act does not give the
managing entity of a timeshare project these same rights.
HB 429 amends the Timeshare Act, as follows:
Authorizes the board of administration for a condominium or cooperative association to “delete”
accommodations or facilities without the approval of the members of the association.
Grants the managing entity of a timeshare project all of the same rights and remedies to remove and refuse
to accommodate that an operator of a public lodging establishment or public food service establishment has.
Requires the managing entity of a timeshare condominium or timeshare cooperative to provide the
assessment certificate required under the Timeshare Act in lieu of the estoppel certificate relating to
condominium and cooperative associations.
The bill does not appear to have a fiscal impact on state or local governments. The effective date of the bill is July 1,
2024.
STORAGE NAME: h0429c.JDC PAGE: 2
DATE: 1/30/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Florida Vacation Plan and Timesharing Act
A timeshare interest is a form of ownership of real and personal property.
1
In a timeshare, multiple
parties hold the right to use a condominium unit or a cooperative unit. Each owner of a timeshare
interest is allotted a period of time (typically one week) during which the owner has the exclusive right
to use the property.
Chapter 721, F.S., the Florida Vacation Plan and Timesharing Act (Timeshare Act), administered by the
Division of Florida Condominiums, Timeshares, and Mobile Homes (DFCT) within the Department of
Business and Professional Regulation (DBPR), is the chapter of Florida law that governs vacation
plans and timesharing in the state. The purpose of the Timeshare Act is to:
Recognize real and personal property timeshare plans in the state;
Establish procedures for the creation, sale, exchange, promotion and operation of timeshare
plans;
Provide full and fair disclosure to purchasers and prospective purchasers of timeshare plans;
Require every timeshare plan in the state to be subjected to the provisions of the chapter;
Require full and fair disclosure of terms, conditions, and services by resale service providers;
and
Recognize that a uniform and consistent method of regulation is necessary to safeguard
Florida's tourism industry and the state's economic well-being.
2
The Timeshare Act applies to all timeshare plans consisting of more than seven timeshare periods over
a period of at least three years when the accommodations and facilities are located or offered within
this state.
3
The Timeshare Act governs vacation plans and timesharing,
4
and multisite vacation and
timeshare plans that are also known as vacation clubs.
5
The term “timeshare plan” means any arrangement, plan, scheme, or similar device, other than an
exchange program, whether by membership, agreement, tenancy in common, sale, lease, deed, rental
agreement, license, or right-to-use agreement or by any other means, where a purchaser, for
consideration, receives ownership rights in or a right to use accommodations and facilities, if any, for a
period of time less than a full year during any given year, but not necessarily for consecutive years.
6
The term includes both personal property timeshare and real property timeshare plans.
7
A “timeshare unit” is an accommodation of a timeshare plan which is divided into timeshare periods or
a condominium unit in which timeshare estates have been created.
8
A “timeshare estate” is a right to occupy a timeshare unit, coupled with a freehold estate or an estate
for years with a future interest in a timeshare property or a specified portion thereof.
9
The term also
1
See s. 721.05(36), F.S.
2
S. 721.02, F.S.
3
S. 721.03, F.S.
4
Ch. 721, part I, F.S.
5
Ch. 721, part II, F.S.
6
S. 721.05(39), F.S.
7
S. 721.05(39)(a), F.S., defines a “personal property timeshare plan,” as a timeshare plan in which the accommodations are comprised
of personal property that is not permanently affixed to real property. Section 721.05(39)(b), F.S., defines a “real property timeshare
plan,” as a timeshare plan in which the accommodations of the timeshare plan are comprised of or permanently affixed to real
property.
8
See ss. 721.05(41) and 718.103(26), F.S.
9
S. 721.05(34), F.S. STORAGE NAME: h0429c.JDC PAGE: 3
DATE: 1/30/2024
includes an interest in a condominium unit, a cooperative unit, or a trust. Whether the term includes
both direct and indirect interests in trusts is not specified. An example of an indirect interest in a trust is
the interest of a trust beneficiary’s spouse or other dependent.
A “timeshare license” is the right to occupy a timeshare unit, which right is not a personal property
timeshare interest or a timeshare estate.
10
A “timeshare interest” is a timeshare estate, a personal property timeshare interest, or a timeshare
license.
11
Board of Administration
Each condominium, cooperative, and homeowners’ association is governed by a board of
administration elected by the association’s members or appointed by a developer prior to turnover of
the association. The board has those duties described in statute and in the association’s governing
documents, including association administration, policy development, and property maintenance.
12
A
board director also has a fiduciary responsibility to the association’s members and must use the highest
degree of good faith in placing the interests of the members above his or her own personal interests.
13
To ensure that a director is able to faithfully and competently exercise his or her duties, within 90 days
of being elected or appointed to the board, each newly elected or appointed director must:
Certify in writing that he or she has read the association’s governing documents; will work to
uphold the governing documents to the best of his or her ability; and will faithfully discharge his
or her fiduciary responsibility to the association’s members; or
Submit a certificate showing he or she satisfactorily completed the educational curriculum
administered by a DFCT-approved
14
education provider within one year before or 90 days after
his or her election or appointment date.
15
Application of the Condominium and Cooperative Acts
In addition to regulation under the Timeshare Act, a timeshare plan may also be subject to ch. 718, F.S.
(the Condominium Act) or ch. 719, F.S. (the Cooperative Act); where this is the case, the timeshare
plan must meet the requirements of all applicable chapters unless an exemption applies.
16
Specifically,
if a timeshare plan subject to either the Condominium Act or the Cooperative Act is fully compliant with
the Timeshare Act, the timeshare plan is exempt from certain provisions of the Condominium Act or the
Cooperative Act, including provisions relating to:
Sales or reservation deposits prior to closing;
Filing prior to sale or lease;
Disclosures prior to sale;
The prospectus or offering circular; and
Conversions to the condominium or cooperative form of ownership.
17
Timeshares Under the Condominium Act
10
S. 721.05(37), F.S.
11
S. 721.05(36), F.S.
12
See generally chs. 718, 719, and 720, F.S.; Florida DBPR, FAQs, http://www.myfloridalicense.com/DBPR/condominiums-and-
cooperatives/faqs/#1492784365590-e9ec1083-2ca1 (last visited Jan. 24, 2024).
13
Id.
14
A DFCT-approved provider must cover specified topics in its education program, which may include budgets; reserves; elections;
financial reporting; association operations; dispute resolution; and records maintenance. For a list of DFCT-approved education
providers, see http://www.myfloridalicense.com/dbpr/lsc/documents/CondoCOOPListofApprovedProviders2015.pdf (last visited Jan.
24, 2024). 61B-19.001 and 61B-75.0051, F.A.C.
15
This requirement does not apply to the board of directors for a commercial condominium. Ss. 718.112(2)(d), 719.106(1)(d), and
720.3033(1)(a)-(c), F.S.
16
S. 721.03(2), F.S.
17
S. 721.03(3), F.S. STORAGE NAME: h0429c.JDC PAGE: 4
DATE: 1/30/2024
Timeshare estates may not be created with respect to any condominium unit except pursuant to
provisions in the declaration of condominium expressly permitting the creation of such estates.
18
A
declaration must, if timeshare estates will or may be created with respect to any condominium unit:
Provide a statement in conspicuous type declaring that timeshare estates will or may be
created with respect to units in the condominium; and
Define and describe in detail the degree, quantity, nature, and extent of the timeshare estates
that will or may be created.
19
Unless otherwise provided in the declaration as originally recorded, an amendment to the declaration
may not authorize a timeshare estate to be created in any condominium unit unless the record owner of
each condominium unit and of liens on each condominium unit join in the amendment’s execution.
20
Timeshares Under the Cooperative Act
Original cooperative documents
21
must describe whether or not timeshare estates will or may be
created with respect to any cooperative units and, if so, the degree, quantity, nature, and extent of such
estates, specifying the minimum duration of the recurring periods of rights of use, possession or
occupancy that may be established with respect to any unit.
22
Unless the creation of timeshare estates
in any cooperative unit is authorized by the original cooperative documents, an amendment adding
phases to a cooperative that authorizes the creation of timeshare estates in any unit of the additional
phase requires the execution or consent by all unit owners other than the developer.
23
Public Offering Statement
Prior to offering any timeshare plan, a developer must submit a public offering statement,
24
which must
include certain information and disclosures, to the DFCT.
25
Any amendment to an approved offering
statement must be filed with the DFCT for approval prior to becoming effective.
26
Extension or Termination of Timeshare Plans
The Timeshare Act provides a statutory default provision for timeshare instruments that have been in
existence for at least 25 years and are silent as to how the plan terminates or is extended. A vote or
written consent of 60 percent of all the voting interests in the timeshare plan is required to extend or
terminate the term of a timeshare plan.
27
If the term of a timeshare plan is extended, all rights, privileges, duties, and obligations created under
applicable law or the timeshare instrument continue in full force. If a timeshare plan is terminated, the
termination has immediate effect pursuant to applicable law and the timeshare instrument.
28
A termination, extension vote, or consent proposed for a component site of a multisite timeshare plan
located in this state is effective only if the person authorized to make additions or substitutions
approves.
29
18
The “declaration of condominium” is the instrument creating the condominium, as it is amended from time to time. Ss. 718.103(15)
and 718.1045, F.S.
19
S. 718.104(4)(o), F.S.
20
S. 718.110(8), F.S.
21
“Cooperative documents” means the documents: creating the cooperative; evidencing a unit owner’s membership or share in the
association; or recognizing a unit owner’s title or right of possession to his or her unit. S. 719.103(13), F.S.
22
S. 719.403(2)(f), F.S.
23
S. 719.403(6)(e), F.S.
24
“Public offering statement” means the written materials describing a single-site timeshare plan or a multisite timeshare plan,
including a text and any exhibits attached thereto as required by ss. 721.07, 721.55, and 721.551. S. 721.05(29), F.S.
25
Ss. 721.07 and 721.55, F.S.
26
S. 721.07(3)(a)1., F.S.
27
S. 721.125, F.S.
28
Id.
29
Id. STORAGE NAME: h0429c.JDC PAGE: 5
DATE: 1/30/2024
After termination of a timeshare plan, the board serves as the termination trustee. In that fiduciary
capacity, the board may bring a partition action on behalf of the tenants in common in each former
timeshare property, or may sell the former timeshare property in any manner and to any person
approved by a majority of all the tenants in common. The board also has all other powers reasonably
necessary to accomplish the partition or sale, including the power to maintain the property while the
partition action or sale is pending, and must adopt reasonable procedures to implement the partition or
sale and comply with statutory requirements.
30
All reasonable expenses incurred by the board relating
to the performance of its trustee duties, including reasonable fees of attorneys and other professionals,
must be paid by the tenants in common, in proportion to their respective ownership interests.
31
If a timeshare plan is terminated in a timeshare condominium or timeshare cooperative and the
underlying condominium or cooperative is not simultaneously terminated, a majority of the tenants in
common in each former timeshare unit present and voting in person or by proxy at a meeting of such
tenants in common conducted by the termination trustee, or conducted by the board of administration
of the condominium or cooperative association, if such association managed the former timeshare
property, are required to:
32
Designate a voting representative for the unit and file a voting certificate with the condominium
or cooperative association.
Allow the voting representative to vote on all matters at meetings of the condominium or
cooperative association, including termination of the condominium or cooperative.
Management of a Timeshare Plan
Current law requires the developer to provide a managing entity for each timeshare plan, which entity
may be the developer, a separate manager or management company, or an owners’ association.
33
Any
owner’s association must be created before the first closing of the sale of a timeshare interest.
34
However, with respect to a timeshare plan which is also regulated under chs. 718 or 719, F.S., or which
contains a mandatory owner’s association, the board is the timeshare plan’s managing entity.
35
The duties of a managing entity include:
Management and maintenance of all accommodations and facilities constituting the timeshare
plan;
Collection of all assessments for common expenses;
Providing an itemized annual budget to all purchasers;
Maintaining all books and records concerning the timeshare plan and making such books and
records reasonably available for inspection by any purchaser;
Arranging for an annual audit of the timeshare plan’s financial statement;
Scheduling timeshare unit occupancy in certain circumstances;
Performing any other functions and duties necessary to maintain the accommodations or
facilities; and
Entering into ad valorem tax escrow agreements before the receipt of any ad valorem tax
escrow payments under certain conditions.
Managing Entity
30
S. 721.125(3)(a)1., F.S.
31
S. 721.125(3)(a)2., F.S.
32
Id.
33
“Owners’ association” means an association made up of all owners of timeshare interests in a timeshare plan, including developers
and timeshare plan purchasers. Ss. 721.05(27) and 721.13, F.S.
34
S. 721.13(1)(a), F.S.
35
S. 721.13(1)(b), F.S. STORAGE NAME: h0429c.JDC PAGE: 6
DATE: 1/30/2024
The Timeshare Act requires the developer to provide a managing entity for each timeshare plan. The
managing entity operates or maintains the timeshare plan.
36
The managing entity may be the
developer, a separate manager or management firm, or an owners' association.
37
The duties of the managing entity include, but are not limited to:
38
Management and maintenance of all accommodations and facilities constituting the timeshare
plan.
Collection of all assessments for common expenses.
Providing annually to all purchasers an itemized annual budget that includes estimated
revenues and expenses.
Maintenance of books and records concerning the timeshare plan so that all such books and
records are reasonably available for inspection by any purchaser or their authorized agent.
Arranging for an annual audit of the financial statements of the timeshare plan by a certified
public accountant licensed by the Board of Accountancy of DBPR, in accordance with generally
accepted auditing standards as defined by the rules of the Board of Accountancy of DBPR.
Making available for inspection by the DFCT any books and records of the timeshare plan upon
the request of the DFCT.
Scheduling occupancy of the timeshare units, when purchasers are not entitled to use specific
timeshare periods, so that all purchasers will be provided the use and possession of the
accommodations and facilities of the timeshare plan which they have purchased.
Performing any other functions and duties which are necessary and proper to maintain the
accommodations or facilities, as provided in the contract and as advertised.
Entering into an ad valorem tax escrow agreement prior to the receipt of any ad valorem tax
escrow payments into the ad valorem tax escrow account, as long as an independent escrow
agent is required by s. 192.037, F.S., and submitting to the DFCT the statement of receipts and
disbursements regarding the ad valorem tax escrow account.
Managing Entity Emergency Powers
Florida law provides for the exercise of specified emergency powers by the boards of condominium,
cooperative, and homeowners’ associations in response to damage or injury caused by or anticipated
in connection with a declared state of emergency.
39
Such emergency powers include, unless prohibited
by other law or the association’s governing documents, the power to:
Conduct board meetings, elections, and membership meetings by telephone, real-time
videoconferencing, or similar real-time electronic or video communication with notice given as
practicable;
Cancel and reschedule any association meeting;
Name as assistant officers person who are not board directors;
Relocate the association’s principal office or designate alternative principal offices;
Enter into agreements with local governments to assist with debris removal;
Implement a disaster or emergency plan that may include, but is not limited to, shutting down or
off elevators; electricity; water, sewer, or security systems; or air conditioners;
Determine any portion of the association property is unavailable for entry or occupancy in
certain circumstances;
Require the evacuation of association property in certain circumstances;
Determine that association property can be safely inhabited, accessed, or occupied, in certain
circumstances;
Mitigate further damage, injury, or contagion;
Contract for items or services for which the owners are otherwise individually responsible, but
which are necessary to prevent further injury, contagion, or damage, and obtain reimbursement;
Levy special assessments without an owner vote; and
36
See s. 721.05(22), F.S., defining the term “managing entity.”
37
S. 721.13(1)(a), F.S.
38
S. 721.13(3), F.S.
39
Ss. 718.1265, 719.128, and 720.316, F.S. STORAGE NAME: h0429c.JDC PAGE: 7
DATE: 1/30/2024
Borrow money or pledge association assets as collateral to fund emergency repairs and carry
out association duties when operating funds are insufficient.
40
However, the Act does not provide comparable emergency powers for a timeshare plan’s managing
entity.
Material Alterations or Substantial Additions to Accommodations or Facilities
Notwithstanding anything to the contrary in s. 718.110, F.S.,
41
s. 718.113, F.S.,
42
s. 718.114, F.S.,
43
or
s. 719.1055, F.S.,
44
the board of administration of any owners' association that operates a timeshare
condominium pursuant to s. 718.111, F.S., or a timeshare cooperative pursuant to s. 719.104, F.S., has
the power to make material alterations or substantial additions to the accommodations
45
or facilities
46
of
such timeshare condominium or timeshare cooperative without the approval of the owners' association.
However, current law does not give the board of administration the authority to “delete”
accommodations or facilities without the approval of the owners’ association.
47
If the timeshare condominium or timeshare cooperative contains any residential units that are not
subject to the timeshare plan, the board of administration for the condominium or cooperative must
obtain the approval of a majority of the owners of such residential units before it can make any material
alterations or substantial additions to the accommodations or facilities of such timeshare condominium
or timeshare cooperative. However, unless otherwise provided in the timeshare instrument as originally
recorded, an amendment may not change the configuration or size of any accommodation in any
material fashion, or change the proportion or percentage by which a member of the owners' association
shares the common expenses, unless the record owners of the affected units or timeshare interests
and all record owners of liens on the affected units or timeshare interests join in the execution of the
amendment.
48
Assessment Certificates
Condominiums and Cooperatives
40
The powers to require association property evacuation and to contract for items or services for which the owners are otherwise
individually responsible are only held by condominium and cooperative associations.
41
S. 718.110, F.S., provides for the amending of a declaration of condominium and, in part, prohibits any amendment that materially
alters or substantially adds to the condominium property, unless all recorded unit owners and all record owners of liens join in and
approve the execution of the amendment.
42
Section 718.113., F.S., sets forth the responsibility of a condominium association to maintain the common elements of the
condominium and, in relevant part, prohibits any material alteration or substantial additions to the common elements or to real
property which is association property, except in a manner provided in the declaration as originally recorded or as amended under the
procedures provided in the declaration. However, if the declaration as originally recorded or as amended does not specify the
procedure for approval of material alterations or substantial additions, 75 percent of the total voting interests of the association must
approve the alterations or additions before the material alterations or substantial additions are commenced.
43
Section 718.114, F.S., authorizes condominium associations, with specified conditions, to “enter into agreements to acquire
leaseholds, memberships, and other possessory or use interests in lands or facilities such as country clubs, golf courses, marinas, and
other recreational facilities, regardless of whether the lands or facilities are contiguous to the lands of the condominium, if such lands
and facilities are intended to provide enjoyment, recreation, or other use or benefit to the unit owners.”
44
Section 719.1055, F.S., provides for the amendment of cooperative documents and, in part, prohibits any amendment that materially
alters or substantially adds to the cooperative property, unless all recorded unit owners and all record owners of liens join in and
approve the execution of the amendment.
45
“Accommodation” means any apartment, condominium or cooperative unit, cabin, lodge, hotel or motel room, campground, cruise
ship cabin, houseboat or other vessel, recreational or other motor vehicle, or any private or commercial structure which is real or
personal property and designed for overnight occupancy by one or more individuals. The term does not include an incidental benefit
as defined in this section. S. 721.05(1), F.S.
46
“Facility” means any permanent amenity, including any structure, furnishing, fixture, equipment, service, improvement, or real or
personal property, improved or unimproved, other than an accommodation of the timeshare plan, which is made available to the
purchasers of a timeshare plan. The term does not include an incidental benefit as defined in this section. S. 721.05(17), F.S.
47
S. 721.13(8), F.S.
48
Id. STORAGE NAME: h0429c.JDC PAGE: 8
DATE: 1/30/2024
“Common expenses” are all expenses and assessments properly incurred by a condominium or
cooperative association.
49
An assessment is a unit or parcel owner’s share of the funds required for the payment of the
association’s common expenses.
50
A special assessment is any assessment levied against a unit or
parcel owner other than the assessment adopted in the annual budget.
51
Assessments that are unpaid may become a lien on the unit or parcel.
52
An owner is jointly and
severally liable with the previous owner for all unpaid assessments that come due up to the time of
transfer of title.
53
This liability is without prejudice to an owner’s right to recover from the previous owner
the amounts paid that were assessed during the time that the previous owner owned the property.
54
To protect against undisclosed financial obligations and to obtain title to the property free of any lien or
encumbrance in favor of the association, purchasers may request that the seller provide an estoppel
certificate, also known as an assessment certificate, from the condominium or cooperative association.
An estoppel certificate certifies the amount of any total debt owed to the association for unpaid
monetary obligations by a unit or parcel owner as of a specified date.
55
Within 10 days after receiving a written request for an estoppel certificate, the association is required to
provide an estoppel certificate signed by an officer or agent of the association stating all assessments
and other moneys owed to the association by the owner with respect to the unit or parcel. In addition to
specifying the amount of any debt owed to the association, an estoppel certificate must also include
specific information about the association and the property to be purchased, including the amount of
any regular periodic assessments or other fees.
56
Timeshares
A purchaser of a timeshare estate or timeshare license is personally liable for all assessments for
common expenses which come due while the purchaser is the owner of such interest.
57
A successor in
interest of a timeshare estate or timeshare license is jointly and severally liable with her or his
predecessor in interest for all unpaid assessments against such predecessor up to the time of transfer
of the timeshare interest to such successor, without prejudice to any right a successor in interest may
have to recover from her or his predecessor in interest any amounts assessed against such
predecessor and paid by such successor.
58
The managing entity of a timeshare plan must provide an assessment certificate within 30 days after
receiving a written request from:
A timeshare interest owner;
An agent designated in writing by the timeshare interest owner; or
A person providing resale transfer services for a consumer timeshare reseller.
The assessment certificate must, with respect to the designated consumer resale timeshare interest:
Be signed by an officer or agent of the managing entity;
Be provided to the person requesting the certificate;
State the amount of any assessment, transfer fee, or other moneys:
o Currently owed to the managing entity; and
49
Ss. 718.103(10) and 719.103(9), F.S., relating to condominium and cooperative associations, respectively.
50
Ss. 718.103(1) and 719.103(1), F.S., relating to condominium and cooperative associations, respectively.
51
Ss. 718.103(24) and 719.103(23), F.S., relating to condominium and cooperative associations, respectively.
52
Ss. 718.116(5) and 719.108(4), F.S., relating to condominium and cooperative associations, respectively.
53
Ss. 718.116(1)(a) and 719.108(1), F.S., relating to condominium and cooperative associations, respectively.
54
Id. The term “without prejudice” means “without loss of any rights; in a way that does not harm or cancel the legal rights or
privileges of a party.” BLACK’S LAW DICT IONARY 770 (10th ed. 2014).
55
Ss. 718.116(8) and 719.108(6), F.S., relating to condominium and cooperative associations, respectively.
56
Id.
57
S. 721.15(7), F.S.
58
Id. STORAGE NAME: h0429c.JDC PAGE: 9
DATE: 1/30/2024
o Approved by the managing entity that will be due within the next 90 days; and
Include any information contained in the books and records of the timeshare plan regarding the
legal description and use plan related to the designated consumer resale timeshare interest.
59
The managing entity may charge a fee not to exceed $150 for the preparation and delivery of the
certificate, and the amount of the fee must be included on the certificate.
60
Public Lodging Establishments and Public Food Service Establishments
The Division of Hotels and Restaurants (DHR) within DBPR is charged with enforcing the provisions of
ch. 509, F.S., relating to the regulation of public lodging establishments and public food service
establishments for the purpose of protecting the public health, safety, and welfare.
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Public lodging establishments are classified as a hotel, motel, non-transient apartment, transient
apartment, bed and breakfast inn, timeshare project, or vacation rental.
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A “timeshare project” is
defined as “a timeshare property, as defined in ch. 721, F.S., that is located in this state and that is also
a transient public lodging establishment.”
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The term “public lodging establishments” includes transient and non-transient public lodging
establishments.
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The principal differences between transient and non-transient public lodging
establishments are the number of times that the establishments are rented in a calendar year and the
duration of the rentals.
Specifically, a “transient public lodging establishment” is defined as:
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…any unit, group of units, dwelling, building, or group of buildings within a single
complex of buildings which is rented to guests more than three times in a calendar
year for periods of less than 30 days or 1 calendar month, whichever is less, or
which is advertised or held out to the public as a place regularly rented to guests.
(emphasis added)
A “non-transient public lodging establishment” is defined as:
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…any unit, group of units, dwelling, building, or group of buildings within a single
complex of buildings which is rented to guests for periods of at least 30 days or 1
calendar month, whichever is less, or which is advertised or held out to the public as
a place regularly rented to guests for periods of at least 30 days or 1 calendar
month. (emphasis added)
Removal or Refusal to Accommodate
Operators of public lodging establishments or public food service establishments are authorized to
remove persons from their establishments, and to have a law enforcement officer remove persons from
their establishments, as follows:
Operators may remove or cause to be removed a person, including any guest of the
establishment who, while on the premises of the establishment:
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o Illegally possesses or deals in controlled substances as defined in ch. 893, F.S.;
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Id.
60
Id.
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S. 509.032(1), F.S.
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See s. 509.013(4)(b), F.S., which exempts the several types of establishments from the definition of “public lodging establishment.”
S. 509.242(1), F.S.
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S. 509.242(1)(g), F.S.
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S. 509.013(4)(a), F.S.
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S. 509.013(4)(a)1., F.S.
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S. 509.013(4)(a)2., F.S.
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S. 509.141, F.S. STORAGE NAME: h0429c.JDC PAGE: 10
DATE: 1/30/2024
o Is intoxicated, profane, lewd, or brawling;
o Indulges in any language or conduct which disturbs the peace and comfort of other
guests or which injures the reputation, dignity, or standing of the establishment;
o Fails to check out by the time agreed upon in writing by the guest and public lodging
establishment at check-in unless an extension of time is agreed to by the public lodging
establishment and guest prior to checkout;
o Fails to make payment for food, beverages, or services; or
o In the opinion of the operator, is a person the continued entertainment of whom would
be detrimental to the establishment.
Operators may refuse accommodations or service to any person who:
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o Displays intoxication, profanity, lewdness, or brawling;
o Indulges in language or conduct such as to disturb the peace or comfort of other guests;
o Engages in illegal or disorderly conduct;
o Illegally possesses or deals in controlled substances as defined in ch. 893, F.S.; or
o Constitutes a nuisance.
Operators may take into custody and detain a person in a reasonable manner and for a
reasonable time if:
o The operator has probable cause to believe that the person was engaging in disorderly
conduct in violation of s. 877.03, F.S.,
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on the premises of the licensed establishment;
and
o Such conduct was creating a threat to the life or safety of the person or others.
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Law enforcement officers or operators may take a person into custody on the premises
and detain such person in a reasonable manner and for a reasonable period of time if:
o They have probable cause to believe that theft of personal property belonging to such
establishment has been committed by a person; and
o The officer or operator can recover such property or the reasonable value thereof by
taking the person into custody for the purpose of attempting to affect such recovery or
for prosecution.
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S. 509.142, F.S.
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Section 877.03, F.S., provides that a person is guilty of a misdemeanor of the second degree if they commit “such acts as are of a
nature to corrupt the public morals, or outrage the sense of public decency, or affect the peace and quiet of persons who may witness
them, or engages in brawling or fighting, or engages in such conduct as to constitute a breach of the peace or disorderly conduct.”
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S. 509.143, F.S.
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S. 509.162, F.S. STORAGE NAME: h0429c.JDC PAGE: 11
DATE: 1/30/2024
Effect of Proposed Changes
Material Alterations, Additions, and Deletions to Accommodations or Facilities
HB 429 expands the scope of 721.13, F.S., from applying to the board of administration for a timeshare
condominium or timeshare cooperative to the board of administration for any timeshare plan, thus
allowing the board of any other form of timeshare to make material alterations or substantial additions
to the timeshare’s accommodations or facilities without the owners’ association’s approval.
The bill also authorizes the board of administration for any timeshare plan to “delete” accommodations
or facilities without the approval of the owners’ association’s members.
Removal and Refusal to Accommodate
The bill gives the managing entity or manager of a timeshare project the same rights and remedies of
an operator of any public lodging establishment or public food service establishment, as set forth in ss.
509.141, 509.142, 509.143, and 509.162, F.S., including the right to remove and the right to refuse to
accommodate. The bill also entitles such persons to have a law enforcement officer take any action,
including arrest or removal from the timeshare property, against any purchaser, including a deeded
owner, or a guest or invitee thereof, who engages in conduct described in those sections or conduct
that violates the timeshare instrument.
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Assessment Certificates
The bill requires the managing entity of a timeshare condominium or timeshare cooperative to provide
the assessment certificate required under s. 721.15, F.S., in lieu of the estoppel certificate required by
s. 718.116(8), F.S., or s. 719.108(6), F.S., relating to condominium and cooperative associations,
respectively.
B. SECTION DIRECTORY:
Section 1: Amends s. 721.13, F.S., relating to management.
Section 2: Amends s. 721.15, F.S., relating to assessments for common expenses.
Section 3: Provides an effective date of July 1, 2024.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
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Section 721.05(35), F.S., defines the term “timeshare instrument” to mean one or more of the documents, by whatever name
denominated, creating or governing the operation of a timeshare plan. STORAGE NAME: h0429c.JDC PAGE: 12
DATE: 1/30/2024
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Authorizing the board of administration for a timeshare plan to “delete” accommodations or facilities
without the approval of the members of the owners’ association may help alleviate costs to the
association and its members, such as costs for labor and insurance associated with maintaining old or
underutilized facilities. However, this may have a negative fiscal impact on the private sector to the
extent that the deletion of any accommodations or facilities decreases the value of a timeshare interest.
Authorizing the managing entity of a timeshare project to have the same rights and remedies, regarding
removal and refusal to accommodate, of an operator of a public lodging establishment or public food
service establishment may have a positive economic impact on the private sector to the extent that the
exercise of such authority reduces undesirable or illegal behavior or increases the public health and
safety of the area, which in turn increases the value of a timeshare interest. However, the exercise of
such authority may have a negative fiscal impact on the private sector to the extent it deprives the
owner of a timeshare interest the right to fully utilize his or her interest and, therefore, receive a return
on his or her investment.
FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
Article I, section 10, of the Florida Constitution provides, in relevant part, that “[n]o . . . law impairing
the obligation of contracts shall be passed.” This provision empowers the courts to strike down laws
that retroactively burden or alter contractual relations.
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Not all contractual impairments warrant
overturning an otherwise valid law; thus, state statutes that impair contractual obligations are
measured on a sliding scale of scrutiny, where the degree of contractual impairment permitted is
delineated by the importance of the governmental interests advanced.
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The court, in Pomponio v.
Claridge of Pompano Condo., Inc.,
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enumerated several factors it might weigh when making such
determinations:
a. Whether the law was enacted to deal with a broad economic or social problem;
b. Whether the law operates in an area that was already subject to state regulation at
the time the contract was entered into; and
c. Whether the effect on the contractual relationship is temporary; not severe, permanent,
immediate, and retroactive.
The bill may modify the terms of or rights under existing contracts entered into by timeshare interest
owners. To the extent that any such modifications impair the existing contracts, a court might find the
offending provision inapplicable as to that contract.
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In re Advisory Op. to the Governor, 509 So.2d 292 (Fla. 1987); Daytona Beach Racing & Recreational Facilities Dist. v. Volusia
Cnty., 372 So.2d 419 (Fla. 1979); Dewberry v. Auto Owners Ins. Co., 363 So.2d 1077 (Fla. 1978).
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Yellow Cab Co. of Dade Cnty. v. Dade Cnty., 412 So.2d 395 (Fla. 3d DCA 1982).
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378 So.2d 774 (Fla. 1980).
STORAGE NAME: h0429c.JDC PAGE: 13
DATE: 1/30/2024
B. RULE-MAKING AUTHORITY:
The bill does not appear to create the need for additional rulemaking authority.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES