EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 119A of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 7, inclusive, of this act.

1-3 Sec. 2. "Time share resale" means the sale or transfer of a time

1-4 share that was previously sold to a purchaser.

1-5 Sec. 3. "Time share resale broker" means a person who:

1-6 1. Is registered as a time share resale broker pursuant to the

1-7 provisions of this chapter; and

1-8 2. Lists, advertises for sale, solicits prospective purchasers of,

1-9 promotes or sells 12 or more time shares that were previously sold.

1-10 3. The term does not include:

1-11 (a) A person who has purchased fewer than 12 time shares and who

1-12 later sells or offers to sell one or more of those time shares; or

1-13 (b) A project broker who resells or offers to resell a time share in a

1-14 project as an agent for a developer who holds a permit for the project.

1-15 Sec. 4. 1. A person who wishes to resell time shares:

2-1 (a) Must be licensed as a real estate broker pursuant to the provisions

2-2 of chapter 645 of NRS; and

2-3 (b) Shall register as a time share resale broker with the division by

2-4 completing a form for registration provided by the division and paying

2-5 the fee for registration to the administrator.

2-6 2. A time share resale broker shall renew his registration with the

2-7 division annually on a form provided by the division and pay the fee for

2-8 renewal of the registration to the administrator.

2-9 Sec. 5. 1. An agreement for a time share resale between a time

2-10 share resale broker and an owner must:

2-11 (a) Be in writing; and

2-12 (b) Contain a disclosure that sets forth:

2-13 (1) Whether the time share resale broker or any other person may

2-14 use the time share during the period before the time share is resold;

2-15 (2) Whether the time share resale broker or any other person may

2-16 rent the use of the time share during the period before the time share is

2-17 resold;

2-18 (3) The name of any person who will receive any rents or profits

2-19 generated from the use of the time share during the period before the

2-20 time share is resold; and

2-21 (4) A detailed description of any relationship between the time

2-22 share resale broker and any other person who receives any benefit from

2-23 the use of the time share.

2-24 2. Except as otherwise provided in subsection 3, a time share resale

2-25 broker shall provide a fully executed copy of the written agreement

2-26 described in subsection 1 to the owner on the date that the owner signs

2-27 the agreement.

2-28 3. If an agreement described in subsection 1 is entered into by means

2-29 of a telephone or other oral communication, the time share resale broker

2-30 shall make the disclosures required pursuant to paragraph (b) of

2-31 subsection 1 by telephone or other oral communication before accepting

2-32 anything of value from the owner. A time share resale broker shall

2-33 provide a copy of the written agreement to the owner for his signature

2-34 within 10 days after the date that the oral agreement was made.

2-35 Sec. 6. In addition to the provisions of NRS 645.322 to 645.324,

2-36 inclusive, a time share resale broker who charges or collects an advance

2-37 fee shall place 80 percent of that fee into his trust account. If the time

2-38 share resale broker closes escrow on the time share resale, he shall be

2-39 deemed to have earned the advance fee. If the listing of the time share

2-40 expires before the time share resale broker closes escrow on the time

2-41 share resale, he must return the money held in the trust account to the

2-42 owner of the time share within 10 days after the date of the expiration of

2-43 the listing.

3-1 Sec. 7. 1. Before a purchaser signs any contract to purchase a time

3-2 share that is offered for resale, a time share resale broker shall disclose

3-3 by a written document separate from the contract to purchase a time

3-4 share:

3-5 (a) The period during which the purchaser may use the time share;

3-6 (b) A legal description of the interest in the time share;

3-7 (c) The earliest date that the prospective purchaser may use the time

3-8 share;

3-9 (d) The name, address and telephone number of the agent managing

3-10 the time-share project;

3-11 (e) The place where the documents of formation of the association

3-12 and documents governing the time-share project may be obtained;

3-13 (f) The amount of the annual assessment of the association of the

3-14 time share for the current fiscal year, if any;

3-15 (g) Whether all assessments against the time share are paid in full,

3-16 and the consequences of failure to pay any assessment; and

3-17 (h) Whether participation in any program for the exchange of

3-18 occupancy rights among time-share owners or with the owners of time

3-19 shares in other time-share properties is mandatory.

3-20 2. The administrator shall adopt regulations prescribing the form

3-21 and contents of the disclosure statement described in this section.

3-22 Sec. 8. NRS 119A.010 is hereby amended to read as follows:

3-23 119A.010 As used in this chapter, unless the context otherwise

3-26 them in those sections.

3-27 Sec. 9. NRS 119A.360 is hereby amended to read as follows:

3-28 119A.360 1. The division shall collect the following fees at such

3-41 For renewal of registration of time share resale broker 500

4-1 2. Each developer shall pay an additional fee for each time

4-2 share he sells in a time-share project over 50 pursuant to the

4-3 following schedule:

4-4 Amount to be

4-5 Number of time shares paid per time share

4-6 51—250 $5.00

4-7 251—500 4.00

4-8 501—750 3.00

4-9 751—1500 2.50

4-10 over 1500 1.00

4-11 3. Except for the fees relating to the registration of a representative, the

4-12 administrator may reduce the fees established by this section if the

4-13 reduction is equitable in relation to the costs of carrying out the provisions

4-14 of this chapter.

4-15 Sec. 10. NRS 119A.370 is hereby amended to read as follows:

4-16 119A.370 1. A time share must not be advertised or offered for sale

4-31 application is filed.

4-32 Sec. 11. NRS 119A.680 is hereby amended to read as follows:

4-33 119A.680 1. It is unlawful for any person to engage in the business

4-41 misdemeanor.

5-1 Sec. 12. The amendatory provisions of this act do not apply to

5-2 offenses that were committed before July 1, 1999.

5-3 Sec. 13. This act becomes effective on July 1, 1999.