The Texas Real Estate Commission (TREC) proposes amendments to §543.1, concerning Registration, §543.2, concerning Amendments, §543.3, concerning Fees, §543.4, concerning Forms, §543.5, concerning Violations, §546.6, concerning Complaints and Disciplinary Proceedings, and proposes new §543.7, concerning Contract Requirements, §543.8, concerning Disclosure Requirements, §543.9, concerning Exemptions, §543.10, concerning Escrow Requirements, and §543.11, concerning Maintenance of Registration.

The amendments and new rules are proposed to implement revisions to the Texas Timeshare Act, Chapter 221, Texas Property Code enacted during the 79th Legislative Session, Regular Session, by House Bill 1045. The amendments are also proposed in connection with TREC's on-going review of its rules. The amendments are intended to conform the sections to the language used in other TREC rules, and adopt by reference revised and new forms to be used by timeshare developers when registering a timeshare property, amending a registration, obtaining authorization to conduct pre-sales of timeshares, and registering under an abbreviated registration process under limited circumstances.

The modifications to the existing rules, among other things, revise the registration form to verify the content of the timeshare disclosure statement that a developer must provide to a purchaser prior to the sale of a timeshare interest; verify required purchase contract provisions, including the purchaser's rescission period, processing of purchaser refunds, and disclosure of the rescission period in the purchase contract; and verify that a developer provides a statement to the purchaser that, on an annual basis, the sum of the nights that purchasers are entitled to use the accommodations does not exceed the number of nights the accommodations are available for use by the purchasers.

The proposed rules adopt by reference a new application for a pre-sale registration form which a developer may use if authorized by TREC to conduct presales prior to completion of registration if the application is administratively complete and if the developer otherwise complies with specific statutory requirements. The proposed rules adopt by referenced a new form to be used in an abbreviated registration process for out-of-state developers who are appropriately registered in another U.S. jurisdiction and provide certain documentation to TREC. The proposed rules and revisions to the existing amendment form clarify when amendments to a timeshare plan registration must be filed. The proposed amendments to the rules revise the fee provisions that are applicable for each type of registration and clarify TREC's powers to conduct hearings, initiate disciplinary actions and assess administrative penalties.

Loretta R. DeHay, general counsel, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for the state as a result of enforcing or administering the sections. There are no anticipated fiscal implications for units of local government. There is no anticipated impact on small businesses, micro businesses or local or state employment as a result of implementing the sections.

Ms. DeHay also has determined that for each year of the first five years the sections as proposed are in effect the public benefit anticipated as a result of enforcing the sections will be clarity in the implementation of the statutory requirements for licensing to assist interested person in the application process. The anticipated economic cost to persons who are required to comply with the proposed revisions and new rules is the registration fee, which varies depending on the number of timeshare interests in the timeshare plan, not to exceed $3,500; and the amendment fee not to exceed $2,000.

Comments on the proposal may be submitted to Loretta R. DeHay, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

The amendments and new sections are proposed under the Texas Government Code, §221.024, which authorizes the Texas Real Estate Commission to prescribe and publish forms and adopt rules necessary to carry out the provisions of The Texas Timeshare Act.

The statute affected by this proposal is the Texas Government Code, Chapter 221.