Major Changes Proposed to Utah Timeshare and Camp Resort Act


Issue Brief

House Bill 91 was recently introduced in the Utah House of Representatives proposing, among other provisions, major changes to the Timeshare and Camp Resort Act.  Many of the provisions closely followed new rules enacted by the Utah Division of Real Estate in November 2010 which have caused concern among a number of ARDA members.  


The provisions of HB 91 create a number of problems for timeshare developers including creating uncertainty regarding when disclosure documents should be provided to prospective purchasers and limiting flexibility by strictly proscribing the form in which they must be provided without consideration for the preference of the consumer.  However, the most significant change would, as written, effectively prohibit the sale of products structured as trusts, cooperatives or similar entities.  The bill is expected to be heard in committee the week of February 6, 2011.

Position/Call to Action

Representatives for ARDA and ARDA ROC have met with the Utah Division of Real Estate and the bill sponsor to address concerns about timeshare changes in the bill.  A comprehensive review and update of the current statute could benefit the industry and timeshare owners and ongoing talks may lead to moving legislation in next year's session rather than this year.

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As a result of discussions with the bill's sponsor and the Division of Real Estate, the proposed Timeshare and Camp Resort Act changes have been removed from HB 91.  Representatives of ARDA and ARDA ROC will work with the Division to craft new legislation acceptable to all parties in anticipation of the 2012 legislative session.

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