Date: 02/09/2012
Final
BILL SUMMARY for HB12-1116
HOUSE COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT
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02:19 PM -- House Bill 12-1116
Representative Murray, prime sponsor, presented House Bill 12-1116. The bill adds disclosure requirements to real estate transactions involving the resale of time share properties. Agreements to transfer time share resale interests must include a description of any residual interests retained by the seller, a list of costs for time share resale services, a statement regarding any other person who may use the time share after the interest has been transferred, and various other disclosures. Time share contracts and time share resale services covered by the bill do not include professionals (e.g., attorneys, escrow agents) providing certain transactional services or the developer or association managing a time share community according to an existing plan.
The bill creates a new cause of action under the Colorado Consumer Protection Act for deceptive trade practices. Deceptive trade practices occur when time share resale entities fail to provide disclosures as required by the bill. These time share resale entities may rely upon information provided by the owner, developer, or association managing the time share.
02:24 PM -- Jep Seman, representing the TCS Inc., testified against the bill. He talked about the exceptions from the definition of "time share resale entity"and asked the sponsor to consider including anyone who engages in criminal activity under the definition so they may be criminally prosecuted. A committee discussion ensued regarding the definition and the reasons for the exclusions.
02:30 PM -- Chris Stewart, representing the American Resort Development Association (ARDA) and the American Resort Development Association Resort Owners Coalition, testified in support of the bill. Representative Swalm asked why the current remedy for a violation is inadequate and whether other states have passed similar legislation. Mr. Stewart responded.
02:42 PM -- John Kassowitz, owner of a time share at Christie Lodge, testified in favor of the bill. He talked about his experience selling his time share to a company that ended up being a scam.
02:50 PM -- John Lee, representing the Christie Lodge HOA in Avon, testified in support of the bill. He showed a number of mailers that are sent to owners regarding selling their time shares. Mr. Lee said a person should not have to pay to sell an asset and believes that is fraudulent. Mr. Lee responded to questions from the committee.
03:04 PM -- David Waller, representing ARDA, testified in support of the bill. He responded to Mr. Seman's earlier concerns. Mr. Waller responded to questions from the committee. He explained what the Attorney General can do to enforce violations of deceptive trade practices under the bill.
03:19 PM
Representative Murray asked the committee to wait on amendments until the bill is brought back up at a later date. Representative Liston laid the bill over to allow the sponsor to work on amendments.