How Timesharing Legislation Evolved in the US.
Stephany A. Madsen
Senior Vice President - State Affairs
American Resort Development Association
Orlando, Florida
I. 1973-1980: So what is this thing called "timesharing?"
A. Subdivided land, Condominium,
Unfair and deceptive practice, Personal property?
B. A license, an easement?
C. Access to a computer?
D. Investment contract?
(1977 securities laws: Alaska, Georgia, Maine, Maryland, Michigan, Minnesota,
Missouri, Nevada, Ohio, Oklahoma, Oregon, Tennessee, Texas, Washington,
West Virginia).
E. 1977 timeshare laws or
amendments: Hawaii, Nebraska, South Carolina, New Hampshire (partial).
F. 1977 undecided: D.C.,
Kansas, Kentucky, North Carolina, North Dakota, Wyoming.
G. 1977 consumer protection/unfair
trade practices: Florida.
H. 1977 real estate: All
other states.
I. Industry approach:
state by state or federal preemption.
II. 1980 - 1985: All hell breaks loose!
A. 26 states introduce timeshare
legislation in 1983 alone.
B. Industry cooperates with
National Association of Real Estate License Law Officials on Model Timesharing
Act (1982).
C. National Conference of
Commissioners on Uniform State Laws proposes Model Timeshare Act.
D. Industry scrambles for
consistency and uniformity, but only the timeshare exchange companies come
close.
III. 1985 - 1990: The dust begins to settle.
A. The basic timeshare
law formula is established to protect consumers.
1. Disclosure on key elements of the offering.
2. Cooling-off (rescission) period of three to 15 days.
3. Assurances of completion of the property.
4. Marketing/advertising controls.
5. Standards for owners' associations (sometimes).
B. Industry
"shake-out" begins.
C . Revised timeshare
legislative provisions begin to appear.
IV. 1990 - Present: Evolution.
A. Some states begin
to look at reducing regulation (Georgia, Illinois, Louisiana, New York).
B. States update their
timeshare legislation (California, Florida).
C. States look at
new ways to tax timeshare ownership.
D. Timeshare product
evolves dramatically.
V. 1998 and Beyond: Growth.
A. Continue to refine/streamline
timeshare regulations.
B. Protect industry against
unfair taxation.
C. Look for opportunities
to enhance interstate marketing.
Resort Trades Profile of Stephany A. Madsen