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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