FINAL BILL REPORT

SHB 790

                                  C 370 L 87

BYHouse Committee on Judiciary (originally sponsored by Representatives Crane, Wineberry, P. King and Winsley)

Strengthening the laws regulating timeshares.

House Committe on Judiciary

Senate Committee on Judiciary and Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

Promoters of timeshares often offer inducements to people who tour their facilities.  The Timeshare Act does not provide penalties for a person who fails to fulfill a promise of gifts.

The Timeshare Act provides generally for regulation of the promoters and the management of timeshare facilities.  However, the act does not cover some aspects of timeshare promotion and sales.  Brokers licensed under the real estate broker statutes are not required to be licensed under the Timeshare Act and are not liable for violations under the act.  Individuals who own an interest in a promotion company are not personally liable for violation of the act. Additionally, the act creates ambiguity in some administrative procedures.

SUMMARY:

A promoter may not offer an award, prize or other item of value for attending a sales presentation for a timeshare or for touring a timeshare facility unless the promoter provides the director of the Department of Licensing with a security agreement which will assure performance of the promise.  A promoter who fails to fulfill a promise may be liable for treble the stated value of the gift, plus reasonable attorney fees.  An individual who owns 10 percent or more of a corporation or a general partnership may be held personally liable for violations of the Timeshare Act.

The director of the Department of Licensing may require an annual financial and membership disclosure from timeshare projects.  The director may exercise control over the timeshare project's budget.  In the event that a budget is found inadequate the director may appoint a consultant to prepare an alternative budget at the expense of the timeshare project.

The Department of Licensing and members of the timeshare project must be given access to membership lists.  A member may be excluded from the list if the member specifically requests omission.

A broker licensed under RCW 18.85 is not required to be licensed under the Timeshare Act as well.  However, such a broker is liable for violations of the Time Share Act in the same way as a person licensed under the Timeshare Act.

Violation of the Timeshare Act may result in an administrative or legal proceeding.  A person against whom an action is filed may be liable for administrative and legal costs, including attorney fees.

VOTES ON FINAL PASSAGE:

      House 94   0

      Senate    48     0 (Senate amended)

      House 94   0 (House concurred)

EFFECTIVE:July 26, 1987