§ 42-103ee — Application of Time Share Act and exemptions. Use of “vacation ownership” in advertisement and disclosures.

(a) Sections 42-103cc to 42-103ddd, inclusive, shall apply to the following: (1) Time share plans with accommodations or amenities in this state; (2) Time share plans without accommodations or amenities in this state, if those time share plans are sold or offered to be sold to any individual located within this state. Time share plans without accommodations or amenities in this state that are sold or offered to any individual located within this state are subject only to sections 42-103dd to 42-103ff , inclusive, subsection (d) of section 42-103hh , sections 42-103ii to 42-103xx , inclusive, and section 42-103bbb ; and (3) Exchange programs as specified in subdivision (16) of section 42-103dd . (b) Sections 42-103cc to 42-103ddd , inclusive, shall not apply to the offering of sale of the following: (1) Time share plans, whether or not an accommodation is located in this state, consisting of seven or fewer time share interests. Use of an exchange program by owners of time share interests to secure access to other accommodations shall not affect this exemption; (2) Time share plans, whether or not an accommodation is located in this state, the use of which extends over any period of three years or less; or (3) A time share interest, whether or not an accommodation is located in this state, under which the prospective purchaser's total financial obligation will be equal to or less than three thousand dollars during the term of ownership of the time share interest. (c) An offering or disposition is exempt from the provisions of sections 42-103cc to 42-103ddd , inclusive, if it is: (1) A gratuitous offering or disposition of a time share interest; (2) A disposition pursuant to a court order; (3) A disposition by a governmental agency; (4) A disposition by foreclosure or deed in lieu of foreclosure; (5) An offering or disposition by an association of its own time share interest acquired through foreclosure, deed in lieu of foreclosure or gratuitous transfer; (6) An offering or disposition of all time share interests in a time share plan to not more than five persons; (7) An offering or disposition of a time share interest in a time share property situated wholly outside this state under a contract executed wholly outside this state, if there has been no offering to the purchaser within this state; (8) An offering or disposition of a time share interest to a purchaser who is not a resident of this state under a contract executed wholly outside this state, if there has been no offering to the purchaser within this state; (9) The offering or disposition of a time share interest by a purchaser who acquired the interest for the purchaser's personal use; or (10) The offering or disposition of a rental of an accommodation for a period of three years or less. (d) An offering or disposition of a time share interest in a time share property located outside of this state to a purchaser who currently owns a time share interest from the same developer or from an affiliated entity under common ownership and control with the developer is exempt from the provisions of sections 42-103cc to 42-103ddd , inclusive, if: (1) The developer or affiliated entity has a time share plan currently registered with the department that was originally approved within the previous seven years from the date of the offer or disposition; and (2) The developer or affiliated entity making such offer or disposition: (A) Complies in all material respects with the provisions of section 42-103 ll , subsections (c) and (d) of section 42-103pp , section 42-103qq , subsection (q) of section 42-103ss , subdivision (2) of subsection (a) of section 42-103tt and subsections (b) to (d), inclusive, of section 42-103tt ; (B) Provides the purchaser with all time share disclosure documents required to be provided to purchasers as if the offer or disposition occurred in the state or jurisdiction where the time share property is located; (C) Includes a notice in the contract for purchase that is the same as or substantially similar to that required in subsection (a) of section 42-103qq and a right of rescission of not less than five days; (D) Provides the purchaser, either in the disclosure documents provided pursuant to this subdivision or in supplementary or additional materials, all of the following if the state or jurisdiction where the time share property is located does not require such disclosure documents: (i) A description of the type of time share plan offered, including the duration and operation of the plan; (ii) A description of the existing or proposed accommodations and amenities, including the type and number of time share interests in the accommodations expressed in use increments applicable to the time share plan, a categorization by numbers of bedrooms for each type of accommodation and, if the accommodations or amenities are proposed or incomplete, a schedule for commencement, completion and availability of the accommodations; (iii) A description of the method and timing for performing maintenance on the accommodations; (iv) Copies of the declaration, association articles of incorporation, association bylaws and association rules and regulations, if applicable; and (v) The current annual budget for the time share plan. (3) By making any offering or disposition pursuant to this subsection, the developer is deemed to consent to the jurisdiction of the Department of Consumer Protection in the event of a dispute with the purchaser in connection with the offering or disposition. (e) For the purposes of sections 42-103cc to 42-103ddd , inclusive, the term “vacation ownership” may be used synonymously for “time share” in advertisements or in disclosures regarding a time share interest or time share plan.

Legislative History

(P.A. 09-156, S. 3.) History: P.A. 09-156 effective January 1, 2010.