to the department. for review pursuant to s in advance of that date. Note.-Former

Transcription

1 F.S CEMETERIES Ch. 497 veyed, or disposed of by the licensee, after obtaining written approval of the department, for use by the new owner for other purposes than as a cemetery. All of the human remains which have been previously interred therein shall first have been removed from the lands proposed to be sold, conveyed, or disposed of. Any and all titles, interests, or burial rights which may have been sold or contracted to be sold in lands which are the subject of the sale shall be conveyed to and revested in the licensee prior to consummation of any such sale, conveyance, or disposition. (3) A licensee may convey and transfer to a municipality or county its real and personal property, together with moneys deposited in trust funds pursuant to this chapter, provided the municipality or county will accept responsibility for maintenance thereof and prior written approval of the department is obtained. (4) The provisions of subsections (1) and (2) relating to a requirement for minimum acreage shall not apply to any cemetery company licensed by the department on or before July 1, 1965, which owns a total of less than 30 acres of land; however, no cemetery company shall dispose of any land without the prior written consent of the department. History.-s. 9, ch ; ss. 12, 35, ch ; s. 3, ch ; s. 1, ch ; s. 12, ch ; ss. 26, 39, 40, ch ; ss. 2, 3, ch 'Note.-Repealed effective October 1, 1990, by s. 2, ch , and scheduled for review pursuant to in advance of that date. Note.-Former ' Construction of mausoleums and belowground crypts; preconstruction trust fund; compliance requirement.- (!) A cemetery company shall start construction of that section of a mausoleum or bank of belowground crypts in which sales, contracts for sales, reservations for sales, or agreements for sales are being made within 4 years after the date of the first such sale or 50 percent of the mausoleum or belowground crypts have been sold and the purchase price has been received, whichever occurs first. The construction shall be completed within 5 years after the date of the first sale made. However, extensions for completion, not to exceed 1 year, may be granted by the department for good cause shown. If the units have not been completely constructed at the time of need or the time specified herein, all moneys paid shall be refunded upon request, plus interest earned thereon for that portion of the moneys deposited in the trust fund and an amount equal to the interest that would have been earned on that portion of the moneys that were not in trust. (2) A cemetery company which plans to offer for sale space in a section of a mausoleum or bank of belowground crypts prior to construction shall establish a preconstruction trust fund by written instrument. The preconstruction trust fund shall be administered by a corporate trustee and operated in conformity with s The preconstruction trust fund shall be separate from any other trust funds that may be required by this chapter. (3) Before a sale, contract for sale, reservation for sale, or agreement for sale in a mausoleum section or bank of belowground crypts may be made, the cemetery company shall compute the amount to be deposited to the preconstruction trust fund. The portion of 1401 each payment required to be deposited in the fund shall be computed by dividing the cost of the project plus 10 percent of the cost, as computed by a licensed contractor, engineer, or architect, by the number of crypts in the section or bank of belowground crypts, to ascertain the cost per unit. The unit cost shall be divided by the contract sales price of each unit to obtain the percentage of each payment which shall be required to be deposited in the preconstruction trust fund. Preconstruction trust fund payments shall be made within 30 days after receipt of payment by the cemetery company or its agent. (4) When the cemetery company delivers a completed crypt acceptable to the purchaser in lieu of the crypt purchased prior to construction, all sums deposited to the preconstruction trust fund for that purchaser shall be paid to the cemetery company. (5) Each cemetery company may negotiate, at the time of establishment of the preconstruction trust fund, a procedure for withdrawal of the escrowed funds as a part of the construction cost of the mausoleum section or bank of belowground crypts contemplated, subject to the approval of the department. Upon completion of the mausoleum section or bank of belowground crypts, the cemetery company shall certify completion to the trustee and shall be entitled to withdraw all funds deposited to the account thereof. (6) If the mausoleum section or bank of belowground crypts is not completed within the time limits set out in this section, the trustee shall contract for and cause the project to be completed and pay therefor from the trust funds deposited to the project's account paying any balance, less cost and expenses, to the cemetery company. (7) Within 105 days after the end of the fiscal year of the cemetery company, the trustee shall file a financial report of the preconstruction trust fund with the department. (8) lri lieu of the payments outlined hereunder to the preconstruction trust fund, the cemetery company may deliver to the department a performance bond in an amount and by a surety company acceptable to the department. History.-8. 7, ch ; 8. 3, ch ; 8. 1, ch ; ss. 27, 39, 40, ch ; , ch ; 88. 2, 3, ch 'Note.-Repealed effective October 1, 1990, by s. 2, ch , and scheduled Note.-Former ' Display of notice of regulation; civil penalties.- (1) Each cemetery company licensed pursuant to this chapter shall display in a place that is in clear and unobstructed public view a notice that the place of business is licensed and regulated by the Department of Banking and Finance and that any questions or complaints may be directed to the department. The notice shall be in a form specified by the department. (2) The department may levy a civil penalty of $50 for the failure of any licensee to comply with this section. History.-ss. 14, 40, ch ; ss. 2, 3, ch 'Note.-Repealed effective October 1, 1990, by s. 2, cb , and scheduled for review pursuant to in advance of tbst date. Note.-Former s

2 Ch. 497 CEMETERIES F.S Cemetery companies; authorized functions.- (1) Within the boundaries of the cemetery lands it owns, a cemetery company may perform the following functions: (a) The exclusive care and maintenance of the cemetery. (b) The exclusive interment, entombment, or inurnment of human remains, including the exclusive right to open, prepare for interment, and close all ground, mausoleum, and urn burials. (c) The exclusive initial preneed and at-need sale of interment or burial rights in earth, mausoleum, crypt, niche, or columbarium interment; however, nothing herein shall limit the right of a person owning interment or burial rights to sell those rights to third parties subject to the transfer of title by the cemetery company. (d) The adoption of bylaws regulating the activities conducted within its boundaries, provided that no funeral director licensed pursuant to chapter 470 shall be denied access to any cemetery to conduct a funeral for or supervise a disinterment of human remains. All bylaws provided for herein shall be subject to the approval of the department under the provisions of chapter 120 prior to becoming effective. The department shall not approve any bylaw which unreasonably restricts the use of interment or burial rights, which unreasonably restricts competition, or which unreasonably increases the cost to the owner of interment or burial rights in utilizing these rights. (e) The nonexclusive preneed and at-need sale of monuments, memorials, markers, burial vaults, urns, flower vases, floral arrangements, and other similar merchandise for use within the cemetery. (f) The nonexclusive cremation of human remains, subject to provisions of s (g) The entry into sales or management contracts with other persons. The cemetery company shall be responsible for the deposit of all moneys required by this part to be placed in a trust fund. (2) A full disclosure shall be made for all fees required for interment, entombment, or inurnment of human remains. (3) A cemetery company may adopt bylaws establishing minimum standards for burial merchandise or the installation thereof. History.-s. 8, ch ; ss. 16, 19, 40, ch ; ss. 2, 3, ch 'Note.-Repealed effective October 1, 1990, by s. 2, ch , and scheduled for review pursu,ant to s in advance of that date. Note.-Former s Records.-A record shall be kept of every burial in the cemetery of a cemetery company, showing the date of burial and the name of the person buried, together with lot, plot, and space in which the burial was made. All financial records of the licensee shall be available at the licensee's principal place of business in this state and shall be readily av-ailable at all reasonable times for examination by the department. History.-s. 9, ch ; s. 4, ch ; ss. 12, 35, ch ; s. 3, ch ; s. 1, ch ; ss. 15, 39, 40, ch ; ss. 2, 3, ch 'Note.-Repealed effective October 1, 1990, by s. 2, ch , and scheduled Note.-Former s Monuments and markers; maxi mum installation and maintenance fees.-no cemetery company shall charge a fee for the installation and maintenance of a marker or monument which exceeds the maximum fee set by the department. The department, by rule, shall set a maximum installation and maintenance fee which a cemetery company may charge. The fee shall be based on the actual cost to a cemetery company to install and maintain a marker or monument, but shall not exceed 50 cents per square inch. History.-ss. 19, 40, ch ; ss. 2, 3, ch 'Note.-Repealed effective October 1, 1990, by s. 2, ch , and scheduled N ote.-former s Solicitation.- (1) The department is authorized to adopt rules regulating the solicitation of sales of burial rights, merchandise, or services by licensees. (2) The department shall regulate such solicitation to protect the public from solicitation which is intimidating, overreaching, vexatious, fraudulent, or misleading; which utilizes undue influence; or which takes undue advantage of a person's ignorance or emotional vulnerability. (3) The department shall regulate any solicitation which comprises an uninvited invasion of personal privacy. It is the express finding of the Legislature that the public have a high expectation of privacy in their personal residences, and the department, by rule, may restrict the hours or otherwise regulate such solicitation in the personal residence of a person unless the solicitation has been previously and expressly requested by the person solicited. (4) Nothing in this act shall be construed to restrict the right of a person to lawfully advertise, use direct mail, or otherwise communicate in a manner not within the definition of solicitation or to solicit the business of anyone responding to such communication or otherwise initiating discussion of goods and services being offered. History.-s. 38, ch ; s. 409, ch ; s. 2, ch 'Note.-Repealed effective October 1, 1990, by s. 2, ch , and scheduled Note.-Former s Illegal tying arrangements.- (!) No person authorized to sell grave space shall tie the purchase of any grave space to the purchase of a marker or monument from or through the seller or any other designated person or corporation. (2) No program offering free burial rights shall be conditioned by any requirement to purchase additional burial rights or merchandise. Any program offering free burial rights shall comply with s History.-ss. 19, 32, 40, ch ; ss. 2, 3, ch 'Note.-Repealed effective October 1, 1990, by s. 2, ch , and scheduled Note.-Former s Disclosure of information to public. -If a licensee offers to provide burial merchandise or services to the public, he shall be subject to disciplinary action as provided in this chapter if he: (1) Fails to reasonably provide by telephone, upon request, accurate information regarding the retail prices of burial merchandise and services offered for sale by him or fails to disclose, in response to a general telephone inquiry about the licensee's offer-

3 F.S CEMETERIES Ch. 497 ings or prices, that price information is available over placed in trust must be identical to the percentage the telephone. which the payment received bears to the total cost of (2) Fails to fully disclose all of his available services and merchandise prior to the selection of burial (c) Any cemetery company which promises the the items and services. merchandise. The full disclosure required shall identify the prices of all services and merchandise provid at no cost shall, within 30 days after the end of the future delivery of such personal property or services ed by the licensee. calendar month in which the promise was made, deposit into a merchandise trust fund 110 percent of (3) Makes any false or misleading statements of the legal requirement as to the necessity of a casket the wholesale purchase price. or outer burial container. (d) Each initial deposit shall be identified by the History.-s. 37, ch ; s. 2, ch 'Note.-Repealed effective October 1, 1990, by s. 2, ch , and scheduled cemetery company by furnishing the trustee and the purchaser with the name of the purchaser, the Note.-Former s amount of the retail sales price, and the amount of money required to be deposited, together with a Receipts from sale of personal statement of or a copy of the contract for the personproperty or services; deposits into merchandise al property and services to be furnished by the cemetrust fund; refunds.- tery company. If the cemetery company is acting as (1) This section applies to all cemetery compa- trustee as provided for in paragraph (e), it shall nies licensed pursuant to this chapter that offer for maintain a schedule of all deposits made, by contract sale or sell personal property or services which may be used in a cemetery in connection with the burial of number, name of purchaser, and amount of deposit. human remains or the commemoration of the memo- The trustee may commingle the deposits in the merry of a deceased human being and also to any person chandise trust fund for purposes of the management in direct written contractual relationship with li- thereof and the investment of funds therein. censed cemetery companies. (e) The merchandise trust fund shall be operated (2) Except as hereinafter provided, no cemetery in conformity with s with respect to the nacompany shall directly or indirectly enter into a con- ture and character of the trustee. Alternatively, the tract for the sale of personal property or services, ex- merchandise trust fund shall be deposited in a savcluding burial or interment rights, which may be used ings account in the name of the cemetery company, in a cemetery in connection with disposing of human as trustee, with a bank, trust company, or savings remains, or commemorating the memory of a de- and loan association incorporated under and authorceased human being, if delivery of the personal prop- ized by the laws of this state or of the United States, erty or performance of the service is to be made more provided that such accounts shall be fully insured by than 120 days after receipt of final payment under the United States or an agency or instrumentality the contract of sale, except as provided in paragraph thereof. The provisions of chapter 660 shall not apply (3)(a); however, the entire amount required to be de- to such savings account. When the amount of the posited into the fund shall be paid within 7 years trust fund exceeds the amount that is insured by an from the date of any contract requiring such pay- agency of the Federal Government, the cemetery ment, regardless of whether all amounts have been company shall establish and transfer the trust fund received by the cemetery company. This shall in- to a trust company operating pursuant to chapter 660 elude, but not be limited to, the sale for future deliv- or with a state or national bank holding trust powers. ery of burial vaults, grave liners, urns, memorials, If a cemetery company elects to maintain a savings vases, foundations, memorial bases, and similar mer- account in its own name, as trustee, as provided herechandise and related services commonly sold or used in, it shall promptly notify the department in writing in cemeteries and interment fees but excluding burial of that fact and furnish any relevant information that or interment rights. the department may require. In addition to such no- (3)(a) Any cemetery company entering into a tice, the cemetery company shall also execute and decontract for the sale of such personal property or ser- liver to the bank, trust company, or savings and loan vices shall deposit into a merchandise trust fund 110 association in which the trust account is maintained percent of the wholesale purchase price of the per- a power of attorney and any other indemnification sonal property or services sold for future use or deliv- agreement that may be required by the bank, trust ery; the wholesale purchase price shall be determined company, or savings and loan association for the purat the time of initial deposit to the merchandise trust pose of authorizing payments or withdrawals from fund based upon cost determined by the department the trust account as a result of nondelivery or nonin accordance with subsection (4). The merchandise performance to a purchaser or his heirs, assigns, or trust fund shall be administered by a corporate trust- duly authorized representative as provided in paraee in accordance with a written trust instrument. graph (6)(b). The cemetery company shall also fur However, no nonprofit cemetery corporation which nish satisfactory evidence to the department that it has been incorporated and engaged in the cemetery has executed and delivered such instruments to the business prior to and continuously since 1915 and bank, trust company, or savings and loan association. which has current trust assets exceeding $2 million (4) The department shall publish annually a list shall be required to designate a corporate trustee. of the cost of the personal property or services affect- (b) The deposit shall be made within 30 days af- ed hereby, which shall be computed by the departter the end of the calendar month in which any pay- ment based upon its independent investigation and ment is received by the cemetery company. The per- which shall include the actual wholesale purchase centage of the 110 percent of the wholesale cost price plus 10 percent. All deposits required hereun- 1403

4 Ch.497 CEMETERIES F.S der shall be determined upon this annual computation by the department. tion and refund upon a showing by the purchaser of company and a purchaser shall be subject to cancella (5) In order to ensure that the proper deposits are any intentional violation of any provision of this act made to the trust fund, the department shall examine which relates to the negotiation, sale, or performance the status of the trust fund of each company on a semiannual basis for the first 2 years of the trust fund's existence. of the contract. If the cemetery company wishes to enforce such contract after receipt of such showing, it may request the department to determine the sufficiency (6)(a) The funds shall be held in trust, both as to of the showing. Upon cancellation, the pur principal and income earned thereon, and shall remain intact, except that the cost of the operation of this chapter a refund of the entire amount actually chaser may demand from a person authorized under the trust or the trust account authorized by paragraph (3)(e) may be deducted from the income within 30 days after receipt by the authorized person paid on such contract. Such refund shall be made earned thereon, until delivery of the merchandise is of the request for refund. The company may not cancel a contract unless the purchaser is in default. In made or the services are performed by the cemetery company. Upon delivery of the merchandise or performance of the services, the cemetery company shall lar merchandise, or the portion of a contract that in addition, a contract for a casket, vault, or other simi certify same to the trustee, or to the department if cludes such a purchase subject to the trust requirements of this section, entered into between a ceme the funds are deposited in a trust account with the cemetery company as trustee. Upon certification, the tery company and a purchaser, shall be subject to amount of money on deposit to the credit of that particular contract, including principal and income the purchaser or the purchaser's agent. Such refund cancellation and a 70-percent refund upon request by earned thereon, shall be forthwith paid to the cemetery company, or the cemetery company may with cemetery company of the request for refund. shall be made within 30 days after receipt by the draw the amount from the trust account maintained (8) The trustee shall annually, within 105 days by it as trustee. The trustee may rely upon all such after the end of its fiscal year, file a financial report certifications herein required to be made and shall of the merchandise trust fund with the department, not be liable to anyone for such reliance. setting forth the principal thereof, the investments (b) If a cemetery company which has entered into and payments made, and the income earned and disbursed. The department may require the trustee to a contract for the sale of personal property or services and which has made the deposit to the merchandise make such additional financial reports as it may trust fund or trust account cannot or does not provide the personal property or perform the services tery company as trustee, the department may require deem necessary. If the account is held by the ceme called for by the contract after written request to do the bank, trust company, or savings and loan association in which the account is maintained to furnish so, the purchaser or his heirs or assigns or duly authorized representative shall have the right to provide written verification of the financial report required to such personal property or services and, having be submitted by the cemetery company. provided the property or services, shall be entitled to (9) The department shall from time to time, as it receive the deposit to the credit of that particular deems necessary, examine the business affairs of each contract. Written instruction to the trustee, or to the cemetery company which writes contracts for the sale bank, trust company, or savings and loan association of property or services. The examination shall be in which the account is maintained, by the cemetery made at the expense of the licensee. The written report of the examination shall be filed in the office of company directing the trustee or the bank, trust company, or savings and loan association to refund the department. A licensee which is being examined the amount of money on deposit, or an affidavit by shall produce all records of the company, including either the purchaser or one of his heirs or assigns or those records of the company held by the bank, trust his duly authorized representative, stating that he company, or savings and loan association in which has fully performed the contract and that the personal property or services were not provided because the (10) Any provision of any contract for the sale of the merchandise trust fund is maintained. cemetery company cannot perform, or refuses to perform, as provided in the contract, shall be sufficient herein contemplated under which the purchaser or the personal property or the performance of services authority for the trustee, bank, trust company, or beneficiary waives any of the provisions of this section shall be void. savings and loan association to refund the deposit moneys to the person submitting the affidavit. The (11) This section does not apply to persons holding a license or certificate under chapter 470 or chap trustee, bank, trust company, or savings and loan association shall not be held responsible for any refunds made on account of the cemetery company's thorized by such chapter. ter 639 when performing services or selling items au written direction or an affidavit submitted in accordance with this section. However, nothing herein conerty or the performance of services must state the (12) Each contract for the sale of personal proptained shall relieve the cemetery company from any type, size, and design of personal property and the liability for nonperformance of the contract terms. description of service to be delivered or performed. (c) If the cemetery company cannot deliver the (13) If an installment contract for the purchase of personal property sold because of a national emergency, the provisions of paragraph (b) shall not ap discounted to a third party, the entire amount due personal property or services is sold, transferred, or ply. the merchandise trust fund shall be payable no later (7) A contract entered into between a cemetery than 30 days following the close of the calendar 1404

5 F.S CEMETERIES Ch. 497 month in which the contract was sold, transferred, or discounted. History.-s. 6, ch ; s. 3, ch ; s. I, ch ; s. 11, ch ; , 39, 40, ch ; s. 411, ch ; 88. 2, 3, ch ; ss. 2, 3, ch 'Note.-Repealed effective October I, 1990, by s. 2, ch , and scheduled Expires October I, 1990, pursuant to s. 3, ch. 82-7, and is scheduled for review pursuant to s in advance of that date. N ote.-former s ' Financial report of company affairs.-each cemetery company shall annually submit a report of its financial condition to the department on forms provided by the department. However, the department may require any cemetery company to submit more frequent financial reports as the department deems necessary. The report shall be submitted within 105 days after the end of the fiscal year or within 105 days after receiving notice from the department that a financial report is required. Should the report not be received within the stipulated time, the department shall collect a penalty of $5 per day for each day of delinquency, except that, upon application to the department prior to the expiration of the 105 days, and for good cause shown, the department may grant a 60-day extension. History.-s. 16, ch ; s. I, ch ; ss. 12, 35, ch ; s. 3, ch ; s. I, ch ; ss. 24, 39, 40, ch ; 88. 2, 3, ch 'Note.-Repealed effective October I, 1990, by s. 2, ch , and scheduled Note.-Former s ' Penalties.-Any officer or director, or person occupying similar status or performing similar functions, of a cemetery company which fails to make required deposits to any trust fund required by this chapter; any director, officer, agent, or employee of a cemetery company who makes any unlawful withdrawal of funds from any such account or who knowingly discloses to the department or an employee thereof any false report made pursuant to s ; or any person who willfully violates any of the provisions of this chapter is guilty of a felony of the third degree, punishable as provided in s , s , or s History.-s. 12, ch ; s. 556, ch ; s. 8, ch ; s. 3, cb ; s. 1, ch ; s. 13, ch ; , 39, 40, ch ; 88. 2, 3, ch 'Note.-Repealed effective October I, 1990, by s. 2, cb , and scheduled N ote.-former s ' Civil remedies.-any person may bring a civil action against a person or company violating the provisions of this chapter in the circuit court of the county in which the alleged violator resides or has his or its principal place of business or in the county wherein the alleged violation occurred. Upon adverse adjudication, the defendant shall be liable for actual damages or $500, whichever is greater. The court may, as provided by common law, award punitive damages and may provide such equitable relief as it deems proper or necessary, including enjoining the defendant from further violations of this act. History.-ss. 30, 40, ch ; ss. 2, 3, ch 'Note.-Repealed effective October I, 1990, by s. 2, ch , and scheduled Note.-Former s ' Attorney's fees.- (1) In any civil litigation resulting from a transaction involving a violation of this chapter, except as provided in s , the court may award to the prevailing party, after judgment in the trial court and exhaustion of any appeal, reasonable attorney's fees and costs from the nonprevailing party in an amount to be determined by the trial court. (2) Any award of attorney's fees or costs shall become a part of the judgment and shall be subject to execution as the law allows. (3) Subsections (1) and (2) shall not apply to any action initiated by the department. History.-s. 4, ch ; , 40, ch ; 88. 2, 3, ch ' Note.- Repealed effective October I, 1990, by s. 2, ch , and scheduled Note.-Former s ' Burial without regard to race or color.- (1) No cemetery company or other legal entity conducting or maintaining any public or private cemetery shall deny burial space to any person because of race or color. A cemetery company or other entity operating any cemetery may designate parts of cemeteries or burial grounds for the specific use of persons whose religious code requires isolation. Church cemeteries may limit burials to church members and their families. (2) Any cemetery company or other legal entity which violates the provisions of this section is guilty of a misdemeanor of the second degree, punishable as provided in s , and each violation of this section constitutes a separate offense. History.-s. 9, ch ; s. 3, ch ; s. 1, ch ; ss. 31, 39, 40, ch ; ss. 2, 3, ch 'Note.-Repealed effective October 1, 1990, by s. 2, ch , and scheduled Note.-Former s cf.-s Applicability of s ' Abandoned cemeteries.- (!) Notwithstanding any provision of law to the contrary, a county or municipality which has within its jurisdiction an abandoned cemetery may, after undertaking a diligent search to locate the owner of the cemetery, maintain the cemetery until the owner is located and, upon the production of receipts verifying the services performed, require the owner to reimburse the county or municipality for such services. (2) A county or municipality that has maintained a cemetery pursuant to the provisions of subsection (1) may maintain an action at law to recover an amount equal to the value of services rendered. History.-s. 7, ch ; ss. 33, 40, ch ; ss. 2, 3, ch 'Note.-Repealed etfective October I, 1990, by s. 2, ch , and scheduled Note.- Former s

6 Ch. 498 LAND SALES PRACTICES F.S Short title. Legislative intent. Definitions. General powers and duties. Offices. Employees of division. Seal and authentication of records. Advisory council; membership; functions. Fees. Florida Land Sales Trust Fund. Jurisdiction. Prohibitions on dispositions of interests in subdivided lands. Reservations. Exemptions. Application for registration. Notice of filing and registration. Inquiry and examination. Registration of subdivided lands. Advertising material. Public offering statement. Certain assurances or trust and escrow accounts required; reports required. Annual renewal. Registration and regulation of salesmen and brokers. Investigations. Suspension; revocation; civil penalties. Cease and desist orders. Notices to show cause. Reports of disciplinary action to Florida Real Estate Commission. Service of process. Penalties. Civil remedy. Saving clause. ' Short title.-this chapter may be cited as the "Florida Uniform Land Sales Practices Law." History.-s. 1, ch ; s. 1, ch ; s. 3, ch ; s. 1, ch ; ss. 1, 30, 32, ch ; ss. 2, 3, cb 'Note.-Repealed effective October 1, 1988, by s. 2, ch , and scheduled Note.- Former s CHAPTER498 LAND SALES PRACTICES the continued disclosure of such methods and their severe impact upon the land sales industry and upon the economic and political climate of the state, evidences a recognition of the probable detrimental effects of default by companies and persons engaged in the disposition of any interest in subdivided lands. (3) It is therefore the intent of the Legislature to provide safeguards regulating the financial operations entered into by companies and persons regulated under the provisions of the Florida Uniform Land Sales Practices Law, thus preventing unsound financing techniques which could detrimentally affect not only remote land purchasers, but also the land sales industry, the public, and the state's economic well-being. (4) This law is remedial as well as penal in purpose, and the remedial portions hereof shall be liberally construed to effectuate this purpose. History.-s. 17, ch ; ss. 2, 30, 32, ch ; ss. 2, 3, ch 'Note.-Repealed effective October 1, 1988, by s. 2, ch , and scheduled Note.-Former s ' Definitions.-As used in this chapter, unless the context otherwise requires: (1) "Active registration" means a registered subdivision, except a registration classified as inactive. (2) "Advertising" means the publication or causing to be published of any information offering for sale or for the purpose of causing or inducing any other person to purchase or to acquire an interest in the title to subdivided lands, including the land sales contract to be used and any photographs, drawings, or artist's representations of physical conditions or facilities on the property existing or to exist, by means of any: (a) Newspaper or periodical; (b) Radio or television broadcast; (c) Written, printed, or photographic matter produced by any duplicating process producing 10 copies or more; (d) Material used in connection with the disposition or offer of subdivided lands by radio, television, telephone, or any other electronic means; (e) Material used by subdividers or their agents, distributors, or any other persons to induce prospec ' Legislative intent.- (1) It is expressly recognized by the Legislature tive purchasers to visit this state, particularly vacathat the disposition of any interest in subdivided tion certificates which involve a land sales presentalands has a vital impact on Florida's economy and tion by a subdivider or his agents; or that such land sales constitute a major industry with- (f) Billboards. in this state, employing many citizens, attracting (3) "Broker" means any person who is employed thousands of visitors and new residents, and contrib- or authorized by a subdivider to offer for disposition uting countless dollars to the total annual gross in- any interest in subdivided lands required to be regiscome of the state. The Legislature also recognizes tered pursuant to this chapter and who is responsible that the manner of conducting this type of business, for the supervision of salesmen who offer for disposiincluding sales, financing, advertising, and promo- tion any interest in subdivided lands. tional methods, is of direct concern not only to those (4) "Conviction" means any adjudication of guilt, engaged in the business but to the purchasers and a plea of guilty, a plea of nolo contendere, forfeiture public as well. of a bond when charged with a criminal offense pro- (2) The need to prohibit the use offalse, mislead- hibited by this chapter, or a finding of guilty for ing, and fraudulent methods in the conduct of dispo- which adjudication has been withheld for an offense sition of any interest in subdivided lands, as well as prohibited by this chapter. 1406

7 F.S LAND SALES PRACTICES Ch.498 (5) "Disposition" means any transaction involving any interest in subdivided lands which is entered into for profit, including any sale, resale, lease for more than 5 years, assignment, or award by lottery of any interest in subdivided lands. (6) "Division" means the Division of Florida Land Sales and Condominiums of the Department of Business Regulation. (7) "Inactive registration" means a subdivision that has demonstrated to the satisfaction of the division that all requirements under the registration are current and there is no ongoing sales program. (8) "Notice" means a communication in writing from the division executed by its director or other duly authorized officer. Notice to a subdivider shall be deemed complete when delivered to the subdivider's address currently on file with the division. (9) "Offer" includes every inducement, solicitation, or attempt to encourage a person to acquire any interest in subdivided lands, if undertaken for gain or profit. (10) "Order of registration" means the license issued by the division as evidence of the granting of registration status to a specified registrant for specified subdivided lands.. (11) "Person" means an individual,. corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership, or unincorporated association or two or more of any of the foregoing having a joint or common interest or any other legal or commercial entity. (12) "Purchaser" means a person who acquires, attempts to acquire, or succeeds to an interest in subdivided land. (13) "Registrant" means the person or persons specifically named in the order of registration. (14) "Registration" means the completion of all application requirements and the furnishing of all required exhibits to the satisfaction of the division. (15) "Salesman" means any person who is employed or authorized by a subdivider or broker to offer for disposition any interest in subdivided lands required to be registered pursuant to this chapter. (16) "Subdivider" means a person who owns any interest in subdivided lands or is engaged in the disposition of subdivided lands either directly or through the services of a broker or salesman. (17) "Subdivision" or "subdivided lands" means: (a) Any contiguous land which is divided or is proposed to be divided for the purpose of disposition into 50 or more lots, parcels, units, or interests; or (b) Any land, whether contiguous or not, which is divided or proposed to be divided into 50 or more lots, parcels, units, or interests which are offered as a part of a common promotional plan. History.-s. 2, ch ; s. 1, ch ~s. 2, ch ; ss. 16, 35, ch ; s. 1, ch ; s. 2, ch ; s. 1, ch ; s. 1, ch ; s. 131, ch ; s. 3, ch ; s. 3, ch ; s. 1, ch ; s. 1, ch ; s. 3, ch ; ss. 3, 30, 32, ch ; ss. 1, 21, ch ; s. 378, ch ; ss. 2, 3, ch ; s. 3, ch 'Note.-Repealed effective October 1, 1988, by s. 2, ch , and scheduled Note.-Former s (2) If it appears that a person has engaged or is about to engage in an act or practice constituting a violation of a provision of this chapter or a rule or order hereunder, the division, with or without prior administrative proceedings, may bring an action in the circuit court to enjoin the acts or practices and to enforce compliance with this chapter or any rule or order hereunder. Upon proper showing, injunctive relief or temporary restraining orders shall be granted, and a receiver or conservator may be appointed. The division is not required to post a bond in any court proceedings. (3) The division may intervene in any suit involving subdivided lands. In any suit by or against a subdivider involving subdivided lands, the subdivider shall promptly furnish the division a copy of the complaint and, if requested by the division, copies of all pleadings. (4) The division may: (a) Accept registrations, property reports, or similar disclosure documents filed in other states or with the Federal Government, notwithstanding the requirements of s ; but the division may suspend or revoke any registration under this chapter that includes any registration, property report, or similar disclosure document accepted under this subsection at such time as the registration, property report, or similar disclosure is suspended or revoked by the registering state or by the Federal Government; (b) Contract with agencies in this state or other jurisdictions to perform investigative functions; or (c) Accept grants-in-aid from any source. (5) The division shall cooperate with similar agencies in other jurisdictions to establish uniform filing procedures and forms, public offering statements, advertising standards, and rules and common administrative practices. (6) The division shall adopt uniform accounting methods, in accordance with generally accepted accounting principles as defined by the rules of the Board of Accountancy, to be used by all applicants for and holders of registrations of subdivided lands in the preparation of all financial statements, documents, information, and reports required by, and in the transaction of all activities regulated under, this chapter. History.-s. 4, ch ; s. 4, ch ; s. 2, ch ; s. 1, ch ; s. 2, ch ; s. 3, ch ; ss. 4, 5, ch ; s. 1, ch ; s. 1, ch ; s. 9, ch ; ss. 4, 30, 32, ch ; ss. 2, 21, ch ; ss. 2, 3, ch ; s. 3, ch 'Note.-Repealed effective October 1, 1988, by s. 2, ch , and scheduled Note.-Former s ' Offices.- (!) The executive offices of the division shall be established and maintained in Tallahassee. (2) The division may establish and maintain branch offices. History.-s. 6, ch ; s. 5, ch ; s. 2, ch ; s. 3, ch ; ss. 1, 7, ch ; s. 1, ch ; ss. 5, 30, 32, ch ; ss. 2, 3, ch 'Note.-Repealed effective October 1, 1988, by s. 2, ch , and scheduled Note.-Formers ' General powers and duties.- (1) The division may adopt, amend, or repeal reasonable rules pursuant to the Administrative Procedure Act ' Employees of division.-the division shall employ, and at its pleasure discharge, such attorneys, inspectors, clerks, and other employees as are deemed necessary and shall outline their duties

8 Ch. 498 LAND SALES PRACTICES F.S and fix their compensation. The amount of per diem and mileage and expense money paid to employees shall be as provided in s , except that the division shall establish by rule the standards for reimbursement of actual verified expenses incurred in connection with an inspection or examination of subdivided lands located outside of the state. History.-s. 8, ch ; s. 7, ch ; s. 2, ch ; s. 3, ch ; s. 1, ch ; 88. 6, 30, 32, ch ; 88. 2, 3, ch 'Note.-Repealed effective October 1, 1988, by s. 2, ch , and scheduled N ote.-former s ' Seal and authentication of records. -The division shall adopt a seal by which it shall authenticate its records. Copies of the records of the division, and certificates purporting to relate the facts contained in such records, when authenticated by such seal, shall be prima facie evidence thereof in all the courts of this state. History.-s. 9, ch ; s. 8, ch ; s. 2, ch ; s. 3, ch ; s. 1, ch ; 88. 7, 30, 32, ch ; 88. 2, 3, ch 'Note.-Repealed effective October 1, 1988, by s. 2, ch , and scheduled Note.-Former s ' Advisory council; membership; functions.- ( I) There is created an advisory council composed of seven members, of whom three members shall be citizens from the land development industry and four members shall be citizens representing the consumer public. Members of the advisory council shall be appointed by the Secretary of Business Regulation. The secretary shall appoint two members for terms of 1 year, two members for terms of 2 years, and three members for terms of 3 years. Thereafter, each member shall be appointed for a term of 4 years. A vacancy shall be filled for the remainder of the unexpired term. (2) Members of the council shall serve without compensation but shall be entitled to receive reimbursement for per diem and traveling expenses as provided in s (3) The council shall advise the division in land sales matters. (4) The council shall meet at the call of its chairman, at the request of a majority of its membership, at the request of the division, or at such times as may be prescribed by its rules. History.-s. 19, ch ; s. 4, ch ; s. 4, ch. 79-4; 88. 8, 30-32, ch ; 88. 1, 2, 3, ch ; 88. 2, 3, ch ; 88. 1, 4, ch 'Note.-Repealed effective October 1, 1988, by s. 2, ch , and scheduled Repealed effective Octoher 1, 1988, by s. 1, ch , and scheduled for review pursuant to s in advance of that date. Note.-Former s ' Fees.-The division shall charge fees as fpllows: (li A base fee of $450 per subdivision registration application plus a fee of $4 for each of the first 2,000 lots, parcels, units, or interests in the subdivision and a fee of $2 for each additional lot, parcel, unit, or interest. (2) Each registration shall be renewed annually as provided in s and shall be accompanied by the applicable fee. A penalty not to exceed $20 per day may be assessed for a delinquent renewal; and, in addition, the order of registration is suspended by 1408 operation of law after the loth day of delinquency until the renewal fee and penalty are received by the division. In no event shall the penalty fee exceed $400 per registration. Registrants shall pay a base fee of $300 for each renewal of a subdivision registration and shall pay the following additional fee for each undeeded lot in the registered subdivision: (a) Fifty cents per lot for the first 1,000 lots. (b) Twenty cents per lot for each lot in excess of 1,000. (c) The division may, by administrative rule pursuant to chapter 120, increase the fees provided in paragraphs (a) and (b). Such increase shall not cause either fee provided in paragraphs (a) and (b) to exceed 75 cents. (3) The division shall charge subdividers of out-of-state subdivisions disposed of or offered for disposition in this state an initial fee and an annual fee equal to the fees charged for subdivided lands located within the state. The application for registration required by s shall be accompanied by the initial fee, and when an inspection is to be made of subdivided lands situated outside the state and being disposed of or offered for disposition in this state, the application for registration shall also be accompanied by an amount equivalent to the cost of travel from Florida to the location of the subdivided lands and return, as estimated by the division, and by a further amount estimated to be necessary to cover the additional expenses of such inspection, as prescribed by s , for each day spent in the examination of the subdivided lands. Before acceptance of the registration, as provided in this law, the subdivider shall pay any other actual verified expenses incurred in such inspection and examination. (4) The division shall charge each subdivider who seeks an exemption under this chapter an initial fee of $200, plus $1 for each lot. The application for exemption shall be accompanied by the initial fee, and when a field inspection or examination is to be made relative to subdivided lands for which an exemption is sought, the subdivider shall also pay all actual verified expenses incurred in such inspection or examination as prescribed by s (5) The division shall charge each subdivider a fee of $200 for filing a material change, alteration, or modification of the offering pursuant to this chapter. (6) Each request for release of assurances established for improvements shall be accompanied by a $50 fee; the subdivider shall also pay all actual verified expenses for onsite inspections or examinations as prescribed by s (7) Each request for an exemption advisory opinion shall be accompanied by a $100 fee. (8) Each filing of advertising material submitted for approval, other than advertising material submitted as part of an initial registration or exemption of subdivided lands, shall be accompanied by a fee of $25. (9) Each salesman or broker required to be registered pursuant to this chapter shall pay an application fee of $25 and in the event of reissuance of a salesman's or broker's certificate shall pay an application fee of $25. (10) The division shall charge a subdivider $250

9 F.S LAND SALES PRACTICES Ch. 498 for filing a reservation program pursuant to s (11) The division may contract with any subdivider or others for reasonable charges for any extra or special service pertaining to any registration or application for registration. (12) The division shall charge a subdivider $250 for filing a no-action letter request pursuant to s (6). History.-s. 13, ch ; s. 12, ch ; s. 3, ch ; s. 2, ch ; s. 3, ch ; s. 1, ch ; s. 5, ch ; ss. 9, 30, 32, ch ; ss. 3, 21, ch ; ss. 2, 3, ch ; ss. 1, 3, ch ; s. 3, ch 'Note.-Repealed effective October 1, 1968, by s. 2, ch , and scheduled Expires October 1, 1988, pursuant to s. 3, ch , and is scheduled for review pursuant to s in advance of that date. Note.-Former s Florida Land Sales Trust Fund. -There is created within the State Treasury the Florida Land Sales Trust Fund to be used for the administration and operation of this chapter by the division. All funds collected by the division and any amount paid for a license, fee, or penalty under this chapter shall be deposited in the State Treasury to the credit of the trust fund created by this section. The Florida Land Sales Trust Fund shall be subject to the service charge imposed pursuant to chapter 215. History.-ss. 10, 32, ch ; ss. 2, 7, ch ; ss. 2, 3, ch ; s. 3, ch ; s. 21, ch 'Note.-Repealed effective October 1, 1988, by s. 2, ch , and scheduled cf.-ss , Service charge deduction for cost of general government paid from General Revenue Fund Jurisdiction.-Dispositions of subdivided lands are subject to this chapter, and the circuit courts of this state have jurisdiction in claims or causes of action arising under this law, if: (1) The subdivided lands offered for disposition are located in this state. (2) The subdivider's principal office or any salesman or broker representing the subdivider is located in this state. (3) The offer or disposition of any interest in subdivided lands is made in this state, whether or not the offeror or offeree is then present in this state, if the offer originates within this state or is directed by the offeror to a person or place in this state and received by the person or at the place to which it is directed. History.-s. 24, ch ; s. 3, ch ; s. 1, ch ; ss. 11, 30, 32, ch ; ss. 2, 3, ch 'Note.-Repealed effective October 1, 1968, by s. 2, ch , and scheduled Note.-Former s The division may establish, by rule, refund and solic itation forms and require the registrant to retain same in its official records for a prescribed period of time to evidence compliance with the requirements of this subsection Prohibitions on dispositions of interests in subdivided lands.-unless the subdivided lands are exempt or the transaction is exempt pursuant to s : (1) No person may offer or dispose of, or participate in an offer or disposition of, any interest in subdivided lands located in this state, nor may any person offer or dispose of, or participate in an offer or disposition of, any interest in subdivided lands located without this state to persons in this state, nor may any person within this state offer or dispose of, or participate within this state in an offer or disposition of, any interest in subdivided lands located without this state to persons located without this state, unless such person has a valid order of registration therefor. (2) No person may dispose of, or participate in the disposition of, any interest in subdivided lands unless a current public offering statement is delivered to the purchaser prior to the disposition, the purchaser is afforded a reasonable opportunity to examine the public offering statement prior to the disposition, and the contract and public offering statement used contain a provision which authorizes the purchaser to cancel the agreement without cause until midnight of the seventh day after execution by the purchaser. (3) When the principal solicitation of the disposition is by long distance telephone, no person may dispose of, or participate in the disposition of, any interest in subdivided lands which are required to be registered pursuant to this chapter unless: (a) The prospective purchaser is given an unconditional 30-day refund privilege extending from the time the fully executed agreement to purchase is received by the purchaser; (b) The subdivider includes such unconditional refund privilege in the agreement to purchase and in the public offering statement; (c) The subdivider furnishes the prospective purchaser with a copy of a synopsis or summary of the sales script, which synopsis or summary has been approved by the division, and a current public offering statement, either by mail or personal delivery, prior to the execution of the agreement to purchase and the purchaser certifies in writing to the receipt thereof; and 1409 (d) One of the following actions takes place subsequent to the solicitation of the disposition by long distance telephone: 1. The prospective purchaser personally inspects the property prior to the execution of the agreement to purchase and so certifies in writing; or 2. The prospective purchaser executes an agreement to purchase that contains express provisions to the effect that the purchaser or purchaser's agent has 6 months from the date the fully executed agreement to purchase is received by the purchaser in which to take a subdivider-guided personal inspection of the subdivided lands, and, at that time, if the purchaser is not satisfied with his purchase and the agreement to purchase is not in default, the purchaser may request in writing a refund of all moneys paid in under the agreement for purchase, and shall be entitled to such refund, even though the aforesaid 30-day period has expired. The agreement to purchase shall also provide that the subdivider must make available a guided personal inspection of the subdivision upon request by the purchaser and that the purchaser may request, and shall be entitled to, the refund if the subdivider fails to make the inspection available. The documents mailed or delivered in accordance with this paragraph shall be governed by s (4).