To repeal reference to Rule 61B-38.001 in Rule 61B-41.003, F.A.C.

 

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION

Division of Florida Condominiums, Timeshares and Mobile Homes

RULE NO.:RULE TITLE:

61B-41.003Penalty Guidelines

PURPOSE AND EFFECT: To repeal reference to Rule 61B-38.001 in Rule 61B-41.003, F.A.C.

SUMMARY: The proposed rulemaking repeals reference to Rule 61B-38.001 in Rule 61B-41.003 F.A.C. as such rule is unnecessary or is duplicative of existing Florida law.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: the economic review conducted by the agency

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 721.26(6), FS.

LAW IMPLEMENTED: 721.26(6), FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Rikki Anderson, Government Analyst I, Division of Florida Condominiums, Timeshares, and Mobile Homes, 2601 Blair Stone Road, Tallahassee, Florida 32399-1030, [phone].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

61B-41.003 Penalty Guidelines.

The following penalty guidelines are established for each violation:

STATUTE/RULEGENERAL DESCRIPTIONPENALTY per

violation (Priors)

PART I VACATION PLANS AND TIMESHARING

§721.056;Developer's supervisory duties2,500(0), 3,500(1)

Rule chs.5,000(1+)

61B-37;

61B-39;

61B-40

§721.06; RulesPurchase contracts$2,500(0)

61B-39.002; 61B-39.003;$3,500(1)

61B-39.007$5,000(1+)

§721.06(4);One to one ratio$5,000

§721.065; RuleResale purchase contract$1,000(0)

61B-39.002$2,000(1)

$3,500(1+)

§721.07Public offering statement$5,000/POS-

rejection/

revocation

Use of unapproved$5,000(0)

Public Offering Statement$10,000(1+)

§721.07(6)Failure to deliver$10,000

§721.07(5)contents, maintenance$2,500/

Rules 61B-39.002;POS-rejection/

61B-39.003; 61B-39.004;revocation

61B-39.007; 61B-39.008;

61B-40.003; 61B-40.004;

61B-40.006; 61B-40.0061;

61B-40.0062

§721.075;Incidental benefits$1,000(0)

Rule 61B-39.007(6)(e)$2,000(1)

$3,000(1+)

§721.08;Escrow accounts;$5,000(0)

Rules 61B-39.003(4)(c);nondisturbance instruments;$7,500(1)

61B-39.005(5)(c);alternate security$10,000(1+)

61B-39.007(6)(e)arrangements

§721.09Reservation agreements;$1,000(0)

escrows$2,000(1)

$5,000(1+)

§721.10Cancellation; termination$5,000

$7,500

$10,000

§721.11(1), (5);Advertising materials and$3,500(0)

Rule 61B-37.004(3)disclosures$5,000(1)

$10,000(1+)

§721.11(4);Misrepresentations;$2,500(0)

Rule 61B-37.002inducements; referrals$5,000(1)

$10,000(1+)

§721.111; Promotional offers$3,500(0)

Rule 61B-37.004$5,000(1)

$10,000(1+)

§721.12Sellers' record keeping$1,000(0)

$2,000(1)

$5,000(1+)

§721.13; RulesManagement; CAM license;$1,000(0)

61B-40.003; 61B-40.004books & records;$2,000(1)

61B-40.005; 61B-40.006;lockout;quorum$5,000(1+)

Rule 61B-40.0061Reserve funding$2,000(0)

$3,500(1)

$5,000(1+)

§721.13(2)(a); &Fiduciary Duty as separate and$10,000

Rule 61B-40.004distinct from other violations

§721.13(3)(e); & RuleAnnual audit

61B-40.007failure to arrange$2,500(0)

$3,500(1)

$5,000(1+)

failure to file$2,500(0)

$3,500(1)

$5,000(1+)

§721.13(3)(f)Inspection of books$2,500

§§721.13(3)(i)Receipts and disbursements$1,000(0)

and$1,500(1)

192.037(6)(e)$2,000(1+)

§721.15; RulesAssessments; guarantees,$1,000 (0)

61B-40.004;common expenses; billing$2,000 (1)

61B-40.005;$5,000 (1+)

61B-40.006;

61B-40.0061;

61B-40.0062

Failure to pay Assessments

on Developer owned units$10,000

§721.15(8)Commingling$5,000

§721.165;Insurance$10,000

Rule 61B-39.007(6)(f)disclosure$1,000

§721.17Transfer of interest$5,000

§721.18(1)Exchange programs$5,000(0)

Failure to provide

written documents$10,000(1+)

§721.18(5)Unfair deceptive act or practice$5,000(0)

$10,000(1+)

§721.20(1)Broker licensing$5,000

§721.20(2);Solicitor licensing

Rule 61B-38.001incomplete applicationnotice (0)

rejection (1)

unlicensed activitysuspension/

denial/

$250 (minor/1st

offense)

violation of law, rule, orderdenial/suspension/

revocation/$500

(more than

one minor or

serious offense)

§721.20(4)Advance fees$10,000

§721.26(7)(a)Exchange Company$5,000(0)

Deceptive act or practice$10,000(1+)

§721.27Managing entity fees$1,000 in addition

to statutory late

fee

PART II VACATION CLUBS

§721.53; RuleSubordination instruments;$10,000

61B-39.003

61B-39.005(7)Security arrangements$3,000(0)

$5,000(1)

$10,000(1+)

§721.54Multisite term$5,000

§721.55Public Offering Statement$5,000/POS

rejection/

revocation

$5,000(0)

Use of unapproved$10,000(1+)

Public offering statement

§721.55;

Rules 61B-39.002;contents, maintenance$5,000

61B-39.005; 61B-39.007;

61B-39.008

§721.551; RulesFailure to deliver public

61B-39.002; 61B-39.006;offering statement$10,000

61B-39.007; 61B-39.008

§721.552;Change in component site$5,000

Rule 61B-39.007(9)accommodations & facilities

§721.552(1)(b), (2)(g)Fiduciary duty$10,000

§721.553;Portrayal of component sites$1,000(0)

$2,000(1)

$5,000(1+)

Rule 61B-37.002misrepresentations$2,500(0)

$3,500(1)

$5,000(1+)

§721.56(1), (2);Management$5,000/POS-

Rule 61B-39.005(5)(e)rejection/

revocation

§721.56(3);Escrow accounts$3,000(0)

$5,000(1)

$10,000(1+)

Rule 61B-39.007(6)(e)amendment disclosures$1,000

§721.56(5);Reservation system$5,000

Rule 61B-39.005(7)filing$2,500

§721.56(6);Developer duties$10,000

Rule 61B-39.005(7)filing$2,500

§721.57Multisite disclosures$5,000

§721.58(1)Filing feerejection

§721.58(2)Managing entity fees$1,000 in addition

to statutory late

fees

NOTE: The designation of (0) means no prior violations; (1) means one prior violation; and (1+) means more than one prior violation.

Specific Authority 721.26(6) FS. Law Implemented 721.26(5)(e) FS. History–New 2-4-98, Amended              .

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Kevin Stanfield, Director, Division of Florida Condominiums, Timeshares, and Mobile Homes, 2601 Blair Stone Rd., Tallahassee, Florida 32399-1030.

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Matilde Miller, Interim Secretary, Department of Business and Professional Regulation.

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: 6/21/2017

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: 05/09/2017