Z-1391.1  _______________________________________________

                          HOUSE BILL 2548

          _______________________________________________

State of Washington      53rd Legislature     1994 Regular Session

By Representatives Appelwick and Forner; by request of Department of Licensing

Read first time 01/17/94.  Referred to Committee on Judiciary.

Changing timeshares regulation.

    AN ACT Relating to timeshare regulation; amending RCW 64.36.010, 64.36.020, 64.36.030, 64.36.050, 64.36.140, 64.36.210, 64.36.220, 64.36.225, 64.36.230, 64.36.320, 64.36.330, and 64.34.020; prescribing penalties; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 64.36.010 and 1987 c 370 s 1 are each amended to read as follows:

    As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.

    (1) (("Advertisement" means any written, printed, audio, or visual communication which is published in whole or part to sell, offer to sell, or solicit an offer for a timeshare.

    (2))) "Affiliate of a promoter" means any person who controls, is controlled by, or is under the control of a promoter.

    (((3) "Commercial promotional programs" mean packaging or putting together advertising or promotional materials involving promises of gifts, prizes, awards, or other items of value to solicit prospective purchasers to purchase a product or commodity.

    (4) "Director" means the director of licensing.

    (5))) (2) "Interval" means that period of time when a timeshare owner is entitled to the possession and use of the timeshare unit.

    (((6))) (3) "Offer" means any inducement, solicitation, or attempt to encourage any person to acquire a timeshare.

    (((7))) (4) "Person" means a natural person, corporation, business trust, estate, trust, partnership, association, joint venture, or other legal or commercial entity.

    (((8))) (5) "Promoter" means any person directly or indirectly instrumental in organizing, wholly or in part, a timeshare offering.

    (((9))) (6) "Purchaser" means any person, other than a promoter, who by means of a voluntary transfer acquires a legal or equitable interest in a timeshare, other than as security for an obligation.

    (((10))) (7) "Sale" or "sell" includes every contract of sale of, contract to sell, or disposition of, a timeshare for value.

    (((11))) (8) "Timeshare" means a right to occupy a unit or any of several units during three or more separate time periods over a period of at least three years, including renewal options, whether or not coupled with an estate in land.

    (((12))) (9) "Timeshare expenses" means expenditures, fees, charges, or liabilities:  (a) Incurred with respect to the timeshares by or on behalf of all timeshare owners in one timeshare property; and (b) imposed on the timeshare units by the entity governing a project of which the timeshare property is a part, together with any allocations to reserves but excluding purchase money payable for timeshares.

    (((13))) (10) "Timeshare instrument" means one or more documents, by whatever name denominated, creating or regulating timeshares.

    (((14))) (11) "Timeshare owner" means a person who is an owner or co-owner of a timeshare.  If title to a timeshare is held in trust, "timeshare owner" means the beneficiary of the trust.

    (((15) "Timeshare salesperson" means any natural person who offers a timeshare unit for sale.

    (16))) (12) "Unit" means the real or personal property, or portion thereof, in which the timeshare exists and which is designated for separate use.

    Sec. 2.  RCW 64.36.020 and 1983 1st ex.s. c 22 s 2 are each amended to read as follows:

    (((1) A timeshare offering registration must be effective before any advertisement, solicitation of an offer, or any offer or sale of a timeshare may be made in this state.

    (2) An applicant shall apply for registration by filing with the director:

    (a) A copy of the disclosure document prepared in accordance with RCW 64.36.140 and signed by the applicant;

    (b) An application for registration prepared in accordance with RCW 64.36.030;

    (c) An irrevocable consent to service of process signed by the applicant;

    (d) The prescribed registration fee; and

    (e) Any other information the director may by rule require in the protection of the public interest.

    (3))) The ((registration)) requirements of this chapter do not apply to:

    (((a))) (1) An offer, sale, or transfer of not more than one timeshare in any twelve-month period;

    (((b))) (2) A gratuitous transfer of a timeshare;

    (((c))) (3) A sale under court order;

    (((d))) (4) A sale by a government or governmental agency;

    (((e))) (5) A sale by forfeiture, foreclosure, or deed in lieu of foreclosure; or

    (((f))) (6) A sale of a timeshare property or all timeshare units therein to any one purchaser.

    (((4) The director may by rule or order exempt any potential registrant from the requirements of this chapter if the director finds registration is unnecessary for the protection of the public interest.))

    Sec. 3.  RCW 64.36.030 and 1983 1st ex.s. c 22 s 4 are each amended to read as follows:

    The ((application for registration signed by the promoter shall contain the following information on a form prescribed by the director)) promoter shall maintain the following information in a form to be made available to a prospective purchaser upon request of the purchaser at each sales office:

    (1) The following financial statements showing the financial condition of the promoter and any affiliate:

    (a) A balance sheet ((as of a date within four months before the filing of the application for registration)) that is always within twelve months of being current; and

    (b) Statements of income, shareholders' equity, and material changes in financial position as of the end of the last fiscal year and for any period between the end of the last fiscal year and the date of the last balance sheet;

    (2) A projected budget for the timeshare project for two years after the offering being made, including but not limited to source of revenues and expenses of construction, development, management, maintenance, advertisement, operating reserves, interest, and any other necessary reserves;

    (3) A statement of the selling costs per unit and total sales costs for the project, including sales commissions, advertisement fees, and fees for promotional literature;

    (4) A description of the background of the promoters for the previous ten years, including information about the business experience of the promoter and any relevant criminal convictions, civil law suits, or administrative actions related to such promotion during that period; and

    (5) ((A statement disclosing any fees in excess of the stated price per unit to be charged to the purchasers, a description of their purpose, and the method of calculation;

    (6) A statement disclosing when and where the promoter or an affiliate has previously sold timeshares;

    (7) A statement of any liens, defects, or encumbrances on or affecting the title to the timeshare units;

    (8))) Copies of all timeshare instruments((; and

    (9) Any additional information to describe the risks which the director considers appropriate)).

    Sec. 4.  RCW 64.36.050 and 1987 c 370 s 3 are each amended to read as follows:

    (1) ((A timeshare offering is registered for a period of one year from the effective date of registration unless the director specifies a different period.

    (2) Registration of a timeshare offering may be renewed for additional periods of one year each, unless the director by rule specifies a different period, by filing a renewal application with the director no later than thirty days before the expiration of the period in subsection (1) of this section and paying the prescribed fees.  A renewal application shall contain any information the director requires to indicate any material changes in the information contained in the original application.

    (3))) If a material change in the condition of the promoter, the promoter's affiliates, the timeshare project, or the operation or management of the timeshare project occurs during any year, an amendment to the documents ((filed)) required to be made available under RCW 64.36.030 shall be ((filed, along with the prescribed fees,)) made as soon as reasonably possible and before any further sales occur.

    (((4))) (2) The promoter shall keep the information in the written disclosures reasonably current at all times by amending the ((registration)) disclosure document as required by RCW 64.36.140.  If the promoter fails to amend and keep current the written disclosures ((or the registrations)) in instances of material change, the ((director may require compliance under RCW 64.36.100 and assess penalties)) disclosure document is deemed not to be a current disclosure document, and a purchaser thereunder will retain cancellation rights as provided in RCW 64.36.150 until such time as the purchaser receives a current disclosure document.

    Sec. 5.  RCW 64.36.140 and 1983 1st ex.s. c 22 s 3 are each amended to read as follows:

    Any person who offers or sells a timeshare shall provide the prospective purchaser a written disclosure document before the prospective purchaser signs an agreement for the purchase of a timeshare.  The timeshare salesperson shall date and sign the disclosure document.  The disclosure document shall include:

    (1) The official name and address of the promoter, its parent or affiliates, and the names and addresses of the director and officers of each;

    (2) The location of the timeshare property;

    (3) A general description of the timeshare property and the timeshare units;

    (4) A list of all units offered by the promoter in the same project including:

    (a) The types, prices, and number of units;

    (b) Identification and location of units;

    (c) The types and durations of the timeshares;

    (d) The maximum number of units that may become part of the timeshare property; and

    (e) A statement of the maximum number of timeshares that may be created or a statement that there is no maximum.

    (5) A description of any financing offered by the promoter;

    (6) A statement of ownership of all properties included in the timeshare offering including any liens or encumbrances affecting the property;

    (7) Copies of any agreements or leases to be signed by timeshare purchasers at closing and a copy of the timeshare instrument;

    (8) The identity of the managing entity and the manner, if any, whereby the promoter may change the managing entity;

    (9) A description of the selling costs both per unit and for the total project at the time the sale is made;

    (10) A statement disclosing any fees in excess of the stated price per unit to be charged to the purchasers, a description of their purpose, and the method of calculation;

(11) A statement disclosing when and where the promoter or its affiliate has previously sold timeshares;

    (((11))) (12) A description of the nature and purpose of all charges, dues, maintenance fees, and other expenses that may be assessed, including:

    (a) The current amounts assessed;

    (b) The method and formula for changes; and

    (c) The formula for payment of charges if all timeshares are not sold and a statement of who pays additional costs;

    (((12))) (13) A statement of any liens, defects, or encumbrances on or affecting the title to the timeshare units;

(14) Any services which the promoter provides or expenses the promoter pays which the promoter expects may become a timeshare expense at any subsequent time;

    (((13))) (15) A statement in bold face type on the cover page of the disclosure document and the cover page of the timeshare purchase agreement that within seven days after receipt of a disclosure document or the signing of the timeshare purchase agreement, whichever is later, a purchaser may cancel any agreement for the purchase of a timeshare from a promoter or a timeshare salesperson and that the cancellation must be in writing and be either hand delivered or mailed to the promoter or the promoter's agent;

    (((14))) (16) Any restraints on transfer of a timeshare or portion thereof;

    (((15))) (17) A description of the insurance coverage provided for the benefit of timeshare owners;

    (((16))) (18) A full and accurate disclosure of whether the timeshare owners are to be permitted or required to become members of or participate in any program for the exchange of property rights among themselves or with the timeshare owners of other timeshare units, or both, and a complete description of the program; and

    (((17) Any additional information the director finds necessary to fully inform prospective timeshare purchasers, including but not limited to information required by RCW 64.36.030)) (19) A listing of the documentation required to be made available under RCW 64.36.030 together with a statement disclosing the charges for requested copies of documents.  The charges must be reasonable.

    Sec. 6.  RCW 64.36.210 and 1983 1st ex.s. c 22 s 20 are each amended to read as follows:

    It is unlawful for any person in connection with the offer, sale, or lease of any timeshare in the state:

    (1) To make any untrue or misleading statement of a material fact, or to omit a material fact;

    (2) To employ any device, scheme, or artifice to defraud; or

    (3) To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person((;

    (4) To file, or cause to be filed, with the director any document which contains any untrue or misleading information; or

    (5) To violate any rule or order of the director)).

    Sec. 7.  RCW 64.36.220 and 1983 1st ex.s. c 22 s 21 are each amended to read as follows:

    (1) The attorney general, in the name of the state ((or the director)), may bring an action to enjoin any person from violating any provision of this chapter.  Upon a proper showing, the superior court shall grant a permanent or temporary injunction, restraining order, or writ of mandamus.  The court may make any additional orders or judgments which may be necessary to restore to any person any interest in any money or property, real or personal, which may have been acquired by means of any act prohibited or declared to be unlawful under this chapter.  The prevailing party may recover costs of the action, including a reasonable attorney's fee.

    (2) The superior court issuing an injunction shall retain jurisdiction.  Any person who violates the terms of an injunction shall pay a civil penalty of not more than twenty-five thousand dollars.

    (3) The attorney general, in the name of the state ((or the director)), may apply to the superior court to appoint a receiver or conservator for any person, or the assets of any person, who is subject to a ((cease and desist order,)) permanent or temporary injunction, restraining order, or writ of mandamus.

    (4) Any person who violates any provision of this chapter is subject to a civil penalty not to exceed two thousand dollars for each violation.  Civil penalties authorized by this subsection shall be imposed in a civil action brought by the attorney general and shall be deposited in the general fund of the state treasury.  Any action for recovery of a civil penalty shall be commenced within five years of the date of the alleged violation.

    Sec. 8.  RCW 64.36.225 and 1987 c 370 s 8 are each amended to read as follows:

    A ((registrant or applicant)) promoter against whom ((an administrative or)) a legal proceeding authorized under this chapter has been filed, shall be liable for and reimburse to the state of Washington by payment into the general fund, all ((administrative and)) legal costs, including ((attorney)) attorneys' fees, incurred ((by the department)) in issuing and conducting ((administrative or)) legal proceedings that result in a final legal ((or administrative)) determination of any type or degree, in favor of the department or the state of Washington.

    Sec. 9.  RCW 64.36.230 and 1983 1st ex.s. c 22 s 22 are each amended to read as follows:

    (1) ((Any person who violates RCW 64.36.020 is guilty of a gross misdemeanor punishable under chapter 9A.20 RCW.))  Any person who knowingly violates RCW ((64.36.020 or)) 64.36.210 is guilty of a class C felony punishable under chapter 9A.20 RCW.  No indictment or information for a felony may be returned under this chapter more than five years after the alleged violation.

    (2) The ((director may refer evidence concerning violations of this chapter to the)) attorney general or the proper prosecuting attorney ((who)) may((, with or without this reference,)) institute appropriate criminal proceedings.

    Sec. 10.  RCW 64.36.320 and 1991 c 227 s 10 are each amended to read as follows:

    (1) No person, including a promoter, may advertise, sell, contract for, solicit, arrange, or promise a free gift, an award, a prize, or other item of value in this state as a condition for attending a sales presentation, touring a facility, or performing other activities in connection with the offer or sale of a timeshare under this chapter, without first providing ((the director with)) a bond, letter of credit, cash depository, or other security arrangement that will assure performance by the promisor and delivery of the promised gift, award, sweepstakes, prize, or other item of value.

    (2) Promoters under this chapter shall be strictly liable for delivering promised gifts, prizes, awards, or other items of value offered or advertised in connection with the marketing of timeshares.

    (3) Persons promised but not receiving gifts, prizes, awards, or other items of consideration covered under this section, shall be entitled in any cause of action in the courts of this state in which their causes prevail, to be awarded treble the stated value of the gifts, prizes, or awards, court costs, and reasonable attorney fees.

    (4) ((The director may require that any fees or funds of any description collected from persons in advance, in connection with delivery by the promisor of gifts, prizes, awards, or other items of value covered under this section, be placed in a depository in this state, where they shall remain until performance by the promisor.

    (5) The director may require commercial promotional programs to be registered and require the provision of whatever information, including financial information, the department deems necessary for protection of purchasers.

    (6) Persons offering commercial promotional programs shall sign and present to the department a consent to service of process, in the manner required of promoters in this chapter.

    (7))) Registrants or their agents or other persons shall not take possession of promotional materials covered under this section and RCW 64.36.310, from recipients who have received the materials for attending a sales presentation or touring a project, unless the permission of the recipient is received and the recipient is provided with an accurate signed copy describing such promotional materials.  ((The department shall adopt rules enforcing this subsection.

    (8) Chapter 19.170 RCW applies to free gifts, awards, prizes, or other items of value regulated under this chapter.))

    Sec. 11.  RCW 64.36.330 and 1987 c 370 s 14 are each amended to read as follows:

    (1) Concerning any timeshare offered or sited in this state, it is unlawful and a violation of this chapter and chapter 19.86 RCW for any person, developer, promoter, operator, or other person in control of timeshares or the board of directors or appropriate officer of timeshares with such responsibilities, to fail to provide a member/owner of a timeshare with a membership list, including names, addresses, and lot, unit, or interval owned, under the following circumstances:

    (a) Upon demand or by rule or order of the director of the department, for whatever purpose deemed necessary to administer this chapter; or

    (b) ((Upon written request sent by certified mail being made by a member of the timeshare, to a declarant, promoter, or other person who has established and is yet in control of the timeshare;

    (c))) Upon written request sent by certified mail of a member of a timeshare to the board of directors or appropriate officer of the timeshare or an affiliated timeshare.

    (2) The board of directors of the timeshare may require that any applicant for a membership list((, other than the department,)) pay reasonable costs for providing the list and an affidavit that the applicant will not use and will be responsible for any use of the list for commercial purposes.

    (3) Upon request, a member's name shall be excluded from a membership list available to any person ((other than the director of licensing for purposes of administering statutes that are its responsibility)).  Such persons shall make their request for exclusion in writing by certified mail to the board of directors or the appropriate officer or director of the timeshare.

    (4) It is unlawful for any person to use a membership list obtained under this section or otherwise, for commercial purposes, unless written permission to do so has been received from the board of directors or appropriate officer of the timeshare.  Wilful use of a membership list for commercial purposes without such permission shall subject the violator to damages, costs, and reasonable attorneys' fees in any legal proceedings instituted by a member in which the member prevails alleging violation of this section.  Members may petition the courts of this state for orders restraining such commercial use.

    Sec. 12.  RCW 64.34.020 and 1992 c 220 s 2 are each amended to read as follows:

    In the declaration and bylaws, unless specifically provided otherwise or the context requires otherwise, and in this chapter:

    (1) "Affiliate of a declarant" means any person who controls, is controlled by, or is under common control with a declarant.  A person "controls" a declarant if the person:  (a) Is a general partner, officer, director, or employer of the declarant; (b) directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing, more than twenty percent of the voting interest in the declarant; (c) controls in any manner the election of a majority of the directors of the declarant; or (d) has contributed more than twenty percent of the capital of the declarant.  A person "is controlled by" a declarant if the declarant:  (i) Is a general partner, officer, director, or employer of the person; (ii) directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing, more than twenty percent of the voting interest in the person; (iii) controls in any manner the election of a majority of the directors of the person; or (iv) has contributed more than twenty percent of the capital of the person.  Control does not exist if the powers described in this subsection are held solely as security for an obligation and are not exercised.

    (2) "Allocated interests" means the undivided interest in the common elements, the common expense liability, and votes in the association allocated to each unit.

    (3) "Assessment" means all sums chargeable by the association against a unit including, without limitation:  (a) Regular and special assessments for common expenses, charges, and fines imposed by the association; (b) interest and late charges on any delinquent account; and (c) costs of collection, including reasonable attorneys' fees, incurred by the association in connection with the collection of a delinquent owner's account.

    (4) "Association" or "unit owners' association" means the unit owners' association organized under RCW 64.34.300.

    (5) "Board of directors" means the body, regardless of name, with primary authority to manage the affairs of the association.

    (6) "Common elements" means all portions of a condominium other than the units.

    (7) "Common expenses" means expenditures made by or financial liabilities of the association, together with any allocations to reserves.

    (8) "Common expense liability" means the liability for common expenses allocated to each unit pursuant to RCW 64.34.224.

    (9) "Condominium" means real property, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of those portions.  Real property is not a condominium unless the undivided interests in the common elements are vested in the unit owners, and unless a declaration and a survey map and plans have been recorded pursuant to this chapter.

    (10) "Conversion condominium" means a condominium (a) that at any time before creation of the condominium was lawfully occupied wholly or partially by a tenant or subtenant for residential purposes pursuant to a rental agreement, oral or written, express or implied, for which the tenant or subtenant had not received the notice described in (b) of this subsection; or (b) that, at any time within twelve months before the conveyance of, or acceptance of an agreement to convey, any unit therein other than to a declarant or any affiliate of a declarant, was lawfully occupied wholly or partially by a residential tenant of a declarant or an affiliate of a declarant and such tenant was not notified in writing, prior to lawfully occupying a unit or executing a rental agreement, whichever event first occurs, that the unit was part of a condominium and subject to sale.  "Conversion condominium" shall not include a condominium in which, before July 1, 1990, any unit therein had been conveyed or been made subject to an agreement to convey to any transferee other than a declarant or an affiliate of a declarant.

    (11) "Conveyance" means any transfer of the ownership of a unit, including a transfer by deed or by real estate contract and, with respect to a unit in a leasehold condominium, a transfer by lease or assignment thereof, but shall not include a transfer solely for security.

    (12) "Dealer" means a person who owns or has a right to acquire either six or more units in a condominium or fifty percent or more of the units in a condominium containing more than two units.

    (13) "Declarant" means any person or group of persons acting in concert who (a) executes as declarant a declaration as defined in subsection (15) of this section, or (b) reserves or succeeds to any special declarant right under the declaration.

    (14) "Declarant control" means the right of the declarant or persons designated by the declarant to appoint and remove officers and members of the board of directors, or to veto or approve a proposed action of the board or association, pursuant to RCW 64.34.308 (4) or (5).

    (15) "Declaration" means the document, however denominated, that creates a condominium by setting forth the information required by RCW 64.34.216 and any amendments to that document.

    (16) "Development rights" means any right or combination of rights reserved by a declarant in the declaration to:  (a) Add real property or improvements to a condominium; (b) create units, common elements, or limited common elements within real property included or added to a condominium; (c) subdivide units or convert units into common elements; (d) withdraw real property from a condominium; or (e) reallocate limited common elements with respect to units that have not been conveyed by the declarant.

    (17) "Dispose" or "disposition" means a voluntary transfer or conveyance to a purchaser or lessee of any legal or equitable interest in a unit, but does not include the transfer or release of a security interest.

    (18) "Eligible mortgagee" means the holder of a mortgage on a unit that has filed with the secretary of the association a written request that it be given copies of notices of any action by the association that requires the consent of mortgagees.

    (19) "Foreclosure" means a forfeiture or judicial or nonjudicial foreclosure of a mortgage or a deed in lieu thereof.

    (20) "Identifying number" means the designation of each unit in a condominium.

    (21) "Leasehold condominium" means a condominium in which all or a portion of the real property is subject to a lease, the expiration or termination of which will terminate the condominium or reduce its size.

    (22) "Limited common element" means a portion of the common elements allocated by the declaration or by operation of RCW 64.34.204 (2) or (4) for the exclusive use of one or more but fewer than all of the units.

    (23) "Master association" means an organization described in RCW 64.34.276, whether or not it is also an association described in RCW 64.34.300.

    (24) "Mortgage" means a mortgage, deed of trust or real estate contract.

    (25) "Person" means a natural person, corporation, partnership, limited partnership, trust, governmental subdivision or agency, or other legal entity.

    (26) "Purchaser" means any person, other than a declarant or a dealer, who by means of a disposition acquires a legal or equitable interest in a unit other than (a) a leasehold interest, including renewal options, of less than twenty years at the time of creation of the unit, or (b) as security for an obligation.

    (27) "Real property" means any fee, leasehold or other estate or interest in, over, or under land, including structures, fixtures, and other improvements thereon and easements, rights and interests appurtenant thereto which by custom, usage, or law pass with a conveyance of land although not described in the contract of sale or instrument of conveyance.  "Real property" includes parcels, with or without upper or lower boundaries, and spaces that may be filled with air or water.

    (28) "Residential purposes" means use for dwelling or recreational purposes, or both.

    (29) "Special declarant rights" means rights reserved for the benefit of a declarant to:  (a) Complete improvements indicated on survey maps and plans filed with the declaration under RCW 64.34.232; (b) exercise any development right under RCW 64.34.236; (c) maintain sales offices, management offices, signs advertising the condominium, and models under RCW 64.34.256; (d) use easements through the common elements for the purpose of making improvements within the condominium or within real property which may be added to the condominium under RCW 64.34.260; (e) make the condominium part of a larger condominium or a development under RCW 64.34.280; (f) make the condominium subject to a master association under RCW 64.34.276; or (g) appoint or remove any officer of the association or any master association or any member of the board of directors, or to veto or approve a proposed action of the board or association, during any period of declarant control under RCW 64.34.308(4).

    (30) "Timeshare" shall have the meaning specified in the timeshare act, RCW 64.36.010(((11))).

    (31) "Unit" means a physical portion of the condominium designated for separate ownership, the boundaries of which are described pursuant to RCW 64.34.216(1)(d).  "Separate ownership" includes leasing a unit in a leasehold condominium under a lease that expires contemporaneously with any lease, the expiration or termination of which will remove the unit from the condominium.

    (32) "Unit owner" means a declarant or other person who owns a unit or leases a unit in a leasehold condominium under a lease that expires simultaneously with any lease, the expiration or termination of which will remove the unit from the condominium, but does not include a person who has an interest in a unit solely as security for an obligation.  "Unit owner" means the vendee, not the vendor, of a unit under a real estate contract.

NEW SECTION. Sec. 13.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect May 1, 1994.

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