Texas 2015 - 84th Regular

Texas House Bill HB2261 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	84R2880 PMO-F
2		-	By: Villalba H.B. No. 2261
	1	+	H.B. No. 2261
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to the transfer or termination of certain timeshare
8	6		interests.
9	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	8		SECTION 1. Section 221.003(b), Property Code, is amended to
11	9		read as follows:
12	10		(b) Timeshare properties located outside this state are
13	11		subject only to Subchapters C through H and J.
14	12		SECTION 2. Chapter 221, Property Code, is amended by adding
15	13		Subchapter J to read as follows:
16	14		SUBCHAPTER J. SERVICE AGREEMENTS TO TRANSFER OR TERMINATE A
17	15		TIMESHARE INTEREST
18	16		Sec. 221.101. TRANSFER OR TERMINATION OF TIMESHARE
19	17		INTEREST. In this subchapter:
20	18		(1) "Termination" with respect to a timeshare
21	19		interest:
22	20		(A) means:
23	21		(i) the release of contractual obligations
24	22		relating to a timeshare interest by the developer, association, or
25	23		managing entity; or
26		-	(ii) the invalidation of a timeshare
27		-	interest by a judgment or court order; and
	24	+	(ii) the invalidation, cancellation,
	25	+	nullification, or cessation of contractual obligations related to a
	26	+	timeshare interest by a judgment or court order; and
28	27		(B) does not include the cancellation of a
29	28		purchase contract governed by Subchapter E.
30	29		(2) "Transfer" with respect to a timeshare interest
31	30		means the conveyance of all or substantially all of a timeshare
32	31		interest.
33	32		Sec. 221.102. APPLICABILITY. (a) This subchapter applies
34	33		to a timeshare interest if the timeshare interest has been acquired
35	34		only for the purchaser's personal, family, or household use and:
36	35		(1) the timeshare interest is owned by a resident of
37	36		this state;
38	37		(2) the timeshare property is located in this state;
39	38		or
40	39		(3) the timeshare interest acquired is in a multisite
41	40		timeshare plan required to be registered under Subchapter C.
42	41		(b) Except as provided by Subsection (c), this subchapter
43	42		applies to a person who:
44	43		(1) is acting in the ordinary course of business; and
45	44		(2) directly or indirectly, regardless of whether
46	45		acting in person, by mail, by telephone, or by any mode of Internet
47	46		or electronic communication, offers or advertises an offer to
48	47		engage in, for consideration, the following activities:
49	48		(A) obtaining or attempting to obtain on behalf
50		-	of a timeshare interest owner:
51		-	(i) a release of the owner's timeshare
52		-	interest from any person, including the developer, association, or
53		-	managing entity; or
54		-	(ii) a judgment or court order invalidating
55		-	the owner's timeshare interest;
	49	+	of a timeshare interest owner a termination of contractual
	50	+	obligations relating to a timeshare interest;
56	51		(B) selling, renting, listing, or advertising a
57	52		timeshare interest on behalf of a timeshare interest owner;
58	53		(C) purchasing a timeshare interest from a
59	54		timeshare interest owner; or
60	55		(D) assisting in the transfer of an owner's
61	56		timeshare interest.
62	57		(c) This subchapter does not apply to:
63	58		(1) a license holder under Chapter 1101, Occupations
64	59		Code, acting as a broker, agent, or salesperson under that person's
65	60		license in connection with the transfer or termination of a
66	61		timeshare interest;
67	62		(2) a developer, association, or managing entity for a
68		-	timeshare interest to be transferred or terminated; or
	63	+	timeshare interest to be transferred or terminated or a third party
	64	+	acting at the specific request of the developer, association, or
	65	+	managing entity; or
69	66		(3) an attorney, title agent, title company, or escrow
70	67		company that:
71	68		(A) provides only closing, settlement, or other
72		-	~~specific~~ transaction services in connection with the transfer or
	69	+	comparable transaction services in connection with the transfer or
73	70		termination of a timeshare interest; and
74	71		(B) does not otherwise engage in activities
75	72		described by Subsection (b).
76	73		Sec. 221.103. GENERAL DISCLOSURES REQUIRED. A person
77	74		subject to this subchapter who enters into an agreement with a
78	75		timeshare interest owner to facilitate the transfer or termination
79	76		of a timeshare interest shall provide to the timeshare interest
80		-	owner the following written disclosures, as applicable:
	77	+	owner, before the third day before the date the timeshare interest
	78	+	owner enters into the agreement the following written disclosures,
	79	+	as applicable:
81	80		(1) the name, telephone number, and physical address
82	81		of the person providing services under the agreement and any
83	82		affiliate, agent, or third-party representative of that person;
84		-	(2) a description, legally sufficient for
	83	+	(2) if the person identified in Subdivision (1), or an
	84	+	affiliate, agent, or third-party representative of that person
	85	+	providing services under the agreement, is an attorney licensed to
	86	+	practice law in this state, a disclosure of whether the attorney
	87	+	will be providing services under the agreement and representing the
	88	+	timeshare interest owner in connection with the transfer or
	89	+	termination of the timeshare interest;
	90	+	(3) a description, legally sufficient for
85	91		identification, of the timeshare interest to be transferred or
86	92		terminated;
87		-	(3) a description of the method of transfer or
	93	+	(4) a description of the method of transfer or
88	94		termination or a copy of the instrument that will be used for
89	95		transferring or terminating the timeshare interest;
90		-	(4) a description of any interest the timeshare
	96	+	(5) a description of any interest the timeshare
91	97		interest owner retains after the transfer;
92		-	(5) a description of the scope of a power of attorney
	98	+	(6) a description of the scope of a power of attorney
93	99		or other delegation of authority, if any, that the timeshare
94	100		interest owner is required to give to complete the transfer of the
95	101		timeshare interest;
96		-	(6) an itemized statement of any amounts the timeshare
	102	+	(7) an itemized statement of any amounts the timeshare
97	103		owner is required to pay as consideration or reimbursement for
98	104		services provided in connection with the agreement;
99		-	(7) the name of each recipient of amounts described by
100		-	Subdivision (6);
101		-	(8) the estimated date for completing all services
	105	+	(8) the name of each recipient of amounts described by
	106	+	Subdivision (7);
	107	+	(9) the estimated date for completing all services
102	108		sufficient to transfer or terminate the timeshare interest; and
103		-	(9) a statement that, on completion of the transfer or
104		-	termination of the timeshare interest, the person will give ~~written~~
105		-	notice of the transfer or termination to:
	109	+	(10) a statement that, on completion of the transfer
	110	+	or termination of the timeshare interest, the person will give
	111	+	written notice of the transfer or termination to:
106	112		(A) the developer, association, or managing
107	113		entity, as applicable; and
108	114		(B) if applicable, the exchange company for the
109	115		timeshare interest.
110	116		Sec. 221.104. DISCLOSURE OF AUTHORIZED USE OF TIMESHARE
111	117		INTEREST. (a) A person subject to this subchapter who enters into
112	118		an agreement with a timeshare interest owner to facilitate the
113	119		transfer or termination of a timeshare interest shall disclose in
114	120		writing to the timeshare interest owner the name of any person,
115	121		other than the timeshare interest owner, who may occupy, rent,
116	122		exchange, or otherwise use the timeshare interest during the term
117	123		of the agreement.
118	124		(b) If a person is authorized to occupy, rent, exchange, or
119	125		otherwise use the timeshare interest during the term of the
120	126		agreement, the agreement must state the name of each person
121	127		receiving consideration for the occupation, rent, exchange, or use
122	128		of the timeshare interest.
123	129		Sec. 221.105. DISCLOSURES RELATING TO PAYMENT OF FEES FOR
124	130		TRANSFER SERVICES. A person subject to this subchapter who enters
125	131		into an agreement with a timeshare interest owner to facilitate the
126		-	transfer of the timeshare interest must disclose in ~~writing to the~~
127		-	timeshare interest owner that the timeshare interest ~~owner is not~~
128		-	required to pay any consideration or reimbursement ~~under the~~
129		-	agreement until the timeshare interest owner receives:
	132	+	transfer of the timeshare interest must conspicuously disclose in
	133	+	writing to the timeshare interest owner that the timeshare interest
	134	+	owner is not required to pay any consideration or reimbursement
	135	+	under the agreement until the timeshare interest owner receives:
130	136		(1) a written acknowledgement from the developer, the
131	137		association, or the managing entity that the person facilitating
132	138		the transfer under the agreement complied with all applicable
133		-	policies, if any, ~~governing the transfer of the timeshare interest;~~
134		-	and
	139	+	policies of the developer, association, or managing entity, if any,
	140	+	governing the transfer of the timeshare interest; and
135	141		(2) a copy of the instrument transferring the
136	142		timeshare interest, recorded, if required by applicable law, in the
137	143		real property records of the county in which the timeshare property
138	144		is located.
139	145		Sec. 221.106. REQUIRED NOTICE FOR TRANSFER SERVICES. A
140	146		person subject to this subchapter who enters into an agreement with
141	147		a timeshare interest owner to facilitate the transfer of the
142	148		timeshare interest must provide to the timeshare interest owner a
143	149		statement printed in 14-point boldface type or 14-point uppercase
144	150		typewritten letters that reads substantially similar to the
145	151		following:
146	152		I (name of the person facilitating the transfer) WILL ACT IN
147	153		GOOD FAITH AND IN A COMMERCIALLY REASONABLE MANNER TO COMPLETE THE
148	154		TRANSFER OF OWNERSHIP OF YOUR TIMESHARE INTEREST NOT LATER THAN THE
149	155		180TH DAY AFTER THE DATE OF THIS AGREEMENT.
150	156		YOUR OBLIGATION TO PAY ALL COSTS AND FEES ASSOCIATED WITH
151	157		YOUR TIMESHARE INTEREST, INCLUDING ANY REGULAR OR SPECIAL
152	158		ASSESSMENTS OR REAL OR PERSONAL PROPERTY TAXES, DOES NOT CEASE BY
153	159		VIRTUE OF THE EXECUTION OF THIS AGREEMENT.
154	160		IF THE TRANSFER OF YOUR TIMESHARE INTEREST IS NOT COMPLETED
155	161		BEFORE THE 180TH DAY AFTER THE DATE OF THIS AGREEMENT, YOU WILL
156	162		CONTINUE TO BE RESPONSIBLE FOR THE PAYMENT OF ALL COSTS AND FEES
157	163		ASSOCIATED WITH YOUR TIMESHARE INTEREST, INCLUDING ANY REGULAR OR
158	164		SPECIAL ASSESSMENTS OR REAL OR PERSONAL PROPERTY TAXES.
159	165		Sec. 221.107. REQUIRED NOTICE FOR TERMINATION SERVICES. A
160	166		person subject to this subchapter who enters into an agreement with
161	167		a timeshare interest owner to facilitate the termination of the
162	168		timeshare interest must provide to the timeshare interest owner a
163	169		statement printed in 14-point boldface type or 14-point uppercase
164	170		typewritten letters that reads substantially similar to the
165	171		following:
166	172		I (name of the person facilitating the termination of the
167	173		timeshare interest) WILL ACT IN GOOD FAITH AND IN A COMMERCIALLY
168	174		REASONABLE MANNER TO COMPLETE THE TERMINATION OF YOUR TIMESHARE
169	175		INTEREST NOT LATER THAN THE 180TH DAY AFTER THE DATE OF THIS
170	176		AGREEMENT BY OBTAINING:
171	177		(1) A VALID AND ENFORCEABLE RELEASE FROM THE
172	178		DEVELOPER, ASSOCIATION, OR MANAGING ENTITY; OR
173	179		(2) A JUDGMENT OR COURT ORDER INVALIDATING THE
174	180		PURCHASE OR OWNERSHIP OF YOUR TIMESHARE INTEREST.
175	181		YOUR OBLIGATION TO PAY ALL COSTS AND FEES ASSOCIATED WITH
176	182		YOUR TIMESHARE INTEREST, INCLUDING ANY REGULAR OR SPECIAL
177	183		ASSESSMENTS OR REAL OR PERSONAL PROPERTY TAXES, DOES NOT CEASE BY
178	184		VIRTUE OF THE EXECUTION OF THIS AGREEMENT.
179	185		I CANNOT GUARANTEE THAT I WILL SUCCESSFULLY COMPLETE THE
180	186		TERMINATION OF YOUR TIMESHARE INTEREST. IF I FAIL TO COMPLETE THE
181	187		TERMINATION OF YOUR TIMESHARE INTEREST, YOU WILL CONTINUE TO BE
182	188		RESPONSIBLE FOR THE PAYMENT OF ALL COSTS AND FEES ASSOCIATED WITH
183	189		YOUR TIMESHARE INTEREST, INCLUDING ANY REGULAR OR SPECIAL
184	190		ASSESSMENTS OR REAL OR PERSONAL PROPERTY TAXES.
185	191		Sec. 221.108. RELIANCE. In making disclosures required by
186	192		this subchapter, a person facilitating the transfer or termination
187	193		of a timeshare interest may rely on written information provided by
188	194		the timeshare interest owner, the developer, the association, or
189	195		the managing entity.
190	196		Sec. 221.109. DUTY OF GOOD FAITH REGARDING TRANSFER OR
191	197		TERMINATION SERVICES. A person facilitating the transfer or
192	198		termination of a timeshare interest must act in good faith to
193	199		accomplish the transfer or termination not later than the 180th day
194	200		after the date the person enters into an agreement with the
195	201		timeshare interest owner.
196	202		Sec. 221.110. DECEPTIVE TRADE PRACTICES. A person subject
197	203		to this subchapter commits a false, misleading, or deceptive act or
198	204		practice within the meaning of Sections 17.46(a) and (b), Business &
199	205		Commerce Code, by engaging in any of the following acts:
200	206		(1) failing to disclose information as required by
201	207		this subchapter;
202	208		(2) making false or misleading statements concerning:
203	209		(A) the existence of an offer related to the
204	210		purchase or rent of a timeshare interest;
205	211		(B) the likelihood of the completion or the time
206	212		necessary to complete any sale, rental, transfer, or termination of
207	213		a timeshare interest;
208	214		(C) the value of a timeshare interest;
209	215		(D) the current or future costs, including
210	216		assessments, maintenance fees, or taxes, of owning a timeshare
211	217		interest;
212	218		(E) the method by which or source from which a
213	219		timeshare interest owner's name, address, telephone number, or
214	220		other contact information was obtained;
215	221		(F) the identity of the person providing services
216	222		to facilitate the transfer or termination of a timeshare interest
217	223		or any affiliate, agent, or third-party representative of that
218	224		person;
219	225		(G) the terms and conditions under which services
220	226		to facilitate a transfer or termination of a timeshare interest are
221	227		offered;
222	228		(H) the willingness of a developer, association,
223	229		or managing entity to:
224	230		(i) agree to the transfer or termination of
225	231		a timeshare interest; or
226	232		(ii) execute instruments necessary to
227	233		transfer or terminate the timeshare interest; or
228	234		(I) the manner in which consideration or
229	235		reimbursements paid by a timeshare interest owner will be used or
230		-	applied; or
	236	+	applied;
231	237		(3) encouraging or inducing a timeshare interest owner
232	238		to stop paying the developer, the association, or the managing
233		-	entity in violation of a contract with the developer, the
234		-	association, or the managing entity before the completion of a
235		-	transfer or termination.
	239	+	entity in violation of a contract with or any other legally
	240	+	enforceable obligation to the developer, the association, or the
	241	+	managing entity before the completion of a transfer or termination;
	242	+	or
	243	+	(4) receiving or collecting consideration for or
	244	+	reimbursement related to the facilitation of the transfer of a
	245	+	timeshare interest before the timeshare interest owner receives the
	246	+	documents described by Sections 221.105(1) and (2).
236	247		Sec. 221.111. SUPERVISORY DUTIES. (a) The person who
237	248		enters into an agreement to facilitate the transfer or termination
238	249		of a timeshare interest shall supervise, manage, and control all
239	250		aspects of the services provided under the agreement.
240	251		(b) Any violation of this subchapter that occurs during the
241	252		provision of services is considered a violation by the person who
242	253		enters into the agreement and any affiliate, agent, or third-party
243	254		representative of that person.
244	255		(c) Section 221.035 does not apply to a person providing
245	256		services under this subchapter.
246	257		SECTION 3. (a) The disclosure and notice requirements
247	258		provided by Subchapter J, Chapter 221, Property Code, as added by
248	259		this Act, apply only to an agreement to facilitate the transfer or
249	260		termination of a timeshare interest entered into on or after the
250	261		effective date of this Act. An agreement to facilitate the transfer
251	262		or termination of a timeshare interest entered into before the
252	263		effective date of this Act is governed by the law as it existed
253	264		immediately before the effective date of this Act, and that law is
254	265		continued in effect for that purpose.
255	266		(b) Section 221.110, Property Code, as added by this Act,
256	267		applies only to conduct that occurs on or after the effective date
257	268		of this Act. Conduct that occurs before the effective date of this
258	269		Act is governed by the law as it existed when the conduct occurred,
259	270		and the former law is continued in effect for that purpose.
260	271		SECTION 4. This Act takes effect September 1, 2015.
	272	+	______________________________ ______________________________
	273	+	President of the Senate Speaker of the House
	274	+	I certify that H.B. No. 2261 was passed by the House on April
	275	+	30, 2015, by the following vote: Yeas 134, Nays 5, 2 present, not
	276	+	voting; and that the House concurred in Senate amendments to H.B.
	277	+	No. 2261 on May 21, 2015, by the following vote: Yeas 141, Nays 1,
	278	+	1 present, not voting.
	279	+	______________________________
	280	+	Chief Clerk of the House
	281	+	I certify that H.B. No. 2261 was passed by the Senate, with
	282	+	amendments, on May 20, 2015, by the following vote: Yeas 31, Nays
	283	+	0.
	284	+	______________________________
	285	+	Secretary of the Senate
	286	+	APPROVED: __________________
	287	+	Date
	288	+	__________________
	289	+	Governor