BILL ANALYSIS Ó
AB 905
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Date of Hearing: April 22, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
905 (Beth Gaines) - As Introduced February 26, 2015
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Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY: This bill authorizes a time-share developer, who
creates a time-share plan or is in the business of selling
time-share interests, to provide to a purchaser a mandated
public report or other disclosures in a digital format at the
discretion of the purchase. The bill also corrects a drafting
oversight from previous legislation regarding inspection and
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disclosure requirement exemptions.
FISCAL EFFECT:
Costs are minor and absorbable within existing California Bureau
of Real Estate (CalBRE) resources.
COMMENTS:
1)Purpose. According to the author, "California law requires a
number of disclosures to protect Californians who purchase
timeshares. However, in this modern and increasingly
paperless world, many consumers would prefer not to get these
sometimes bulky disclosures in paper form. [This bill] allows
the disclosures to be made electronically - at the discretion
of the purchaser."
2)Background. CalBRE, in addition to administering and
enforcing laws governing the sale of subdivided lots and
common interest developments, also administers and enforces
laws governing the sale of time-share interests. Time-share
interests in a time-share project, also known as a time-share
plan, sold in California, whether the plan is located in
California or outside the state, are subject to regulation
under The Vacation Ownership and Time-share Act of 2004
(time-share Act).
The time-share Act requires a Time-share Plan Conditional or
Final Public Report be issued and a copy given to each
purchaser prior to the execution of a sales contract for a
sale of a time-share. A copy of this report must also be
given to any member of the public who requests one. The
Time-share Final Plan Public Report is issued only after the
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developers comply with the provisions of all the applicable
laws and regulations. Existing law mandates that the
developer prepare the public report, and that the public
report include the specific disclosures as required by that
statute.
According to the author, a number of states allow electronic
disclosure of timeshare documents including: Arizona,
Arkansas, Florida, Illinois, Louisiana, Nevada, New York, and
Virginia. This bill proposes to allow the report to be
offered in writing (as in existing law) or in a digital format
at the discretion of the purchaser.
3)Prior Legislation. AB 2252 (Montanez), Chapter 697, Statutes
of 2004, enacted the "Vacation Ownership and Time-share Act of
2004," consolidated and revised the entire body of time-share
vacation property regulation, streamlined the regulatory
approval process, and added new consumer protections.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081
AB 905
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