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 is registered

1-6 as a time share resale broker pursuant to the provisions of this chapter.

1-7 Sec. 4. 1. An agreement for a time share resale entered into by an

1-8 owner and a person who resells a time share must:

1-9 (a) Be in writing; and

1-10 (b) Contain a disclosure that sets forth:

1-11 (1) Whether any person other than the purchaser may use the time

1-12 share during the period before the time share is resold;

1-13 (2) Whether any person other than the purchaser may rent the use

1-14 of the time share during the period before the time share is resold;

2-1 (3) The name of any person who will receive any rents or profits

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

2-3 time share is resold; and

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

2-5 who resells the time share and any other person who receives any benefit

2-6 from the use of the time share.

2-7 2. A person who resells a time share shall provide a fully executed

2-8 copy of the written agreement described in subsection 1 to the owner on

2-9 the date that the owner signs the agreement.

2-10 3. A person who resells a time share shall make the disclosures

2-11 required pursuant to paragraph (b) of subsection 1 before accepting

2-12 anything of value from the owner.

2-13 Sec. 5. 1. Before a purchaser signs any contract to purchase a time

2-14 share that is offered for resale, the person who is reselling the time share

2-15 shall disclose by a written document separate from the contract to

2-16 purchase a time share:

2-17 (a) The period during which the purchaser may use the time share;

2-18 (b) A legal description of the interest in the time share;

2-19 (c) The earliest date that the prospective purchaser may use the time

2-20 share;

2-21 (d) The name, address and telephone number of the agent managing

2-22 the time-share project;

2-23 (e) The place where the documents of formation of the association

2-24 and documents governing the time-share project may be obtained;

2-25 (f) The amount of the annual assessment of the association of the

2-26 time share for the current fiscal year, if any;

2-27 (g) Whether all assessments against the time share are paid in full,

2-28 and the consequences of failure to pay any assessment;

2-29 (h) Whether participation in any program for the exchange of

2-30 occupancy rights among time-share owners or with the owners of time

2-31 shares in other time-share properties is mandatory; and

2-32 (i) Any other information required to be disclosed pursuant to the

2-33 regulations adopted by the administrator pursuant to subsection 2.

2-34 2. The administrator shall adopt regulations prescribing the form

2-35 and contents of the disclosure statement described in this section.

2-36 Sec. 6. 1. A person who wishes to list, advertise for resale, solicit

2-37 prospective purchasers of, promote or resell 12 or more time shares that

2-38 were previously sold must:

2-39 (a) Be licensed as a real estate broker pursuant to the provisions of

2-40 chapter 645 of NRS; and

2-41 (b) Register as a time share resale broker with the division by

2-42 completing a form for registration provided by the division and paying

2-43 the fee for registration to the administrator.

3-1 2. A time share resale broker shall renew his registration with the

3-2 division annually on a form provided by the division and pay the fee for

3-3 renewal of the registration to the administrator.

3-4 3. Unless the method of resales of time shares is made to evade the

3-5 provisions of this chapter, a person is not required to register as a time

3-6 share resale broker if the person:

3-7 (a) Has acquired fewer than 12 time shares and who later resells or

3-8 offers to resell one or more of those time shares; or

3-9 (b) Is a project broker who resells or offers to resell a time share in a

3-10 project as an agent for a developer who holds a permit for the project.

3-11 Sec. 7. In addition to the provisions of NRS 645.322, 645.323 and

3-12 645.324, a time share resale broker who charges or collects an advance

3-13 fee shall place 80 percent of that fee into his trust account. If the time

3-14 share resale broker closes escrow on the time share resale, he shall be

3-15 deemed to have earned the advance fee. If the listing of the time share

3-16 expires before the time share resale broker closes escrow on the time

3-17 share resale, he must return the money held in the trust account to the

3-18 owner of the time share within 10 days after the date of the expiration of

3-19 the listing.

3-20 Sec. 8. NRS 119A.010 is hereby amended to read as follows:

3-21 119A.010 As used in this chapter, unless the context otherwise

3-24 them in those sections.

3-25 Sec. 9. NRS 119A.360 is hereby amended to read as follows:

3-26 119A.360 1. The division shall collect the following fees at such

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

4-2 sells in a time-share project over 50 pursuant to the following schedule:

4-3 Amount to be

4-4 Number of time shares paid per time share

4-5 51—250 $5.00

4-6 251—500 4.00

4-7 501—750 3.00

4-8 751—1500 2.50

4-9 over 1500 1.00

4-10 3. Except for the fees relating to the registration of a representative, the

4-11 administrator may reduce the fees established by this section if the

4-12 reduction is equitable in relation to the costs of carrying out the provisions

4-13 of this chapter.

4-14 Sec. 10. NRS 119A.370 is hereby amended to read as follows:

4-15 119A.370 1. A time share must not be advertised or offered for sale

4-30 application is filed.

4-31 Sec. 11. NRS 119A.680 is hereby amended to read as follows:

4-32 119A.680 1. It is unlawful for any person to engage in the business

4-40 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.