Proposed changes to Florida timeshare law are controversial. Listen to the radio Podcast!

Our Chief Correspondent, Jeff Weir, was recently interviewed in podcast by TimeSharing Today Radio... don't miss what he has to say about the new legislation in Florida that will affect timeshare owners... even those that live outside of the state:

http://66.242.134.60/express-05-2015.mp3

Update for Florida timeshare owners: the timeshare legislation, sponsored by the American Resort Development Association as a means of updating 30-year-old timeshare law, was working its way very quietly through the Florida Legislature until Greg Crist, CEO of the National Timeshare Owners Association, started questioning some of the bill's fine print. Over the past month, more critics have surfaced, including the Orlando Sentinel, which has written two critical articles about the legislation.

The debate focuses on three issues: a provision that allows HOAs or developers to exceed the 125 percent cap on annual increases in maintenance fees; and language that limits legal liability for developers if and when they make "non-material" errors in contracts and/or disclosures to buyers. The third major issue is a proposal that allows legacy resorts to terminate or extend their timeshare plans with a 60 percent majority vote.

Beyond the details, the overriding talking point is whether the new legislation really provides tangible benefits for owners. Legal groups who follow and sometimes sue developers say no while ARDA, which is very sensitive to criticism of the bill, say its updating provisions will benefit owners and developers without eroding any consumer protections that exist under current law. The House approved the bill Thursday. The Senate is due to take up the measure before May 1, when the Florida legislative session ends. If signed into law, the bill will take effect July 1.

Here is a link to a new opinion column on the legislation, filed by a self-styled timeshare insider, Inside the Gate. It's a generally good summary with opinions thrown in free of charge by the author, who remains informed but anonymous.

http://insidethegate.com/gatehouse/2015/04/florida-usa-timeshare-news-april-18-2015

If you have interest in contacting the National Timeshare Owners Association, which is quoted in the story, here is the contact information.

CEO Gregory G Crist National Timeshare Owners Association, Inc. 917 Lake Carrillon Dr, Suite 300 St. Petersburg, FL 33716

P: 727-502-6877 Ext 1004 greg@ntoassoc.com www.nationaltimeshareownersassoc.com

Here is a link to the latest analysis of the bill --- written in extreme legalese --- by a Florida state Senate fiscal committee staffer. If you can read this and understand it, readily, you may be fit for public office. In any case, this straightforward analysis lays out the bill fairly well. Unfortunately, it does NOT tell you what are the most important provisions. Owners will have to do additional research to sort out their priorities.

SB 932 Latest Revisions - http://www.flsenate.gov/Session/Bill/2015/0932/Analyses/2015s0932.pre.fp.PDF

For TimeSharing Today by Jeff Weir

U.S. developers are backing a Florida bill that would limit liability on disclosure violations and boost the cap on maintenance fees, while the National Timeshare Owners Association has raised a red flag, saying the changes reduce protections for consumers

The legislation was designed, initially, to help streamline regulations that developers claim are outdated and impractical. Now, thanks to the National Timeshare Owners Association's (NTOA) lobbying effort, the debate juxtaposes those claims against basic owner issues such as the disclosure requirements.

The legislation was proposed by Florida Rep. Eric Eisnaugle (R-Orlando) and Sen. Kelli Stargel (R-Lakeland). It would carve limits in the liability that developers would incur for failing to fully disclose the terms and rules of a timeshare at the time of purchase. The proposal also would raise the overall ceiling on owner maintenance fees by separating taxes and some common expenses from the annual 125-percent cap on increases in annual maintenance fees. In addition, the bill provides a method for older legacy resorts to terminate or extend their timeshare plans on a 60-percent majority vote of owners (as opposed to 100 percent). The 60-percent rule would only apply to resorts 25 years or older.

The timeshare legislation (HR453 and SB932) is supported by ARDA and major developers in Florida. Until recently, the bills were percolating quietly through various legislative committees. Then NTOA CEO Greg Crist started raising objections to technical legal changes that, in NTOA's view, would curtail timeshare owners' basic rights-including the right to rescind a contract based upon a developer's violations of disclosure rules.

The Orlando Sentinel published a thorough article on the legislation on March 12. Here is a link to the full story by reporter Sandra Pedicini:

http://www.orlandosentinel.com/business/os-timeshare-bill-20150312-story.html

"This is a developer-sponsored bill that strips away at consumer protection mechanisms," Crist told the Sentinel.

The flashpoint of the bill, for consumers and timeshare owners, is a provision that reduces developer liability for contract mistakes and disclosure violations-and thereby makes it harder for buyers to rescind a contract based upon developer errors or omissions. According to the legislation, when a developer generally complies with disclosure rules (but not completely), a "violation of this chapter shall not be actionable and does not give rise to any purchaser cancellation right."

Stargel, one of the bill's authors, said the exemption would only apply to "nonmaterial" technical mistakes, not major disclosure violations. In practice, she added, it would prevent timeshare owners from getting out of their contracts by citing minor flaws. Legal experts in the Florida Legislature, however, have already challenged Stargel's assertions. With no clear definition of the term "nonmaterial," they said, the breadth of the exemption is open to interpretation and litigation.

Another aspect of the bill that would impact owners-in their wallets-would allow operators of multi-site timeshares to exceed the cap on maintenance fees, as needed, to cover extraordinary expenses, emergencies, and taxes that are deemed to be out of their control. The current cap on maintenance-fee increases provides no flexibility for dealing with practical financial emergencies, the authors say.

A third leg of the bill may, in practice, have more impact than the other provisions. It applies to legacy timeshare resorts that are becoming economically untenable (due to many reasons, including their aging owner base and unpaid maintenance fees). Under the proposal, timeshare associations that have been in business for 25 years or more may vote to extend or terminate their plans-that is, put themselves out of business-on a vote of 60 percent of the owners.

This addresses a growing problem in states, such as Florida, where there are few practical ways to wind down resorts that, in other states, would simply be bulldozed. Many timeshare associations operate under current rules that require 100 percent owner approval to extend or end their timeshare resort.

The Florida legislative session wraps up May 1. New laws take effect July 1. People interested in learning more about the Florida timeshare bills, or voicing their concerns about their provisions, should contact their local legislators, NTOA, http://www.nationaltimeshareownersassoc.com/ and ARDA-ROC. www.arda-roc.org The full text of the House and Senate Bills can be viewed at:

Contact Florida State Legislators: http://www.house.gov/representatives/find/ http://www.flsenate.gov/senators/find

View the entire Florida House and Senate Bills http://www.flsenate.gov/Session/Bill/2015/0453/BillText/c2/PDF http://www.flsenate.gov/Session/Bill/2015/0932/BillText/Filed/PDF

To All Selected Timeshare Industry Leaders, Attached below is a copy of today's FTOG E-Newsletter, as sent to our membership, FYI. Frank Debar, Chairman Florida Timeshare Owners Group

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To FTOG Members,

I am forwarding to each FTOG member a copy of today's NTOA's Newsletter, which has further information dealing with the current proposals to change the Florida Timeshare Act. I sincerely hope that every member takes this information very seriously, as it will definitely, and negatively affect your ownership rights, as well as your overall costs associated with ownership, if passed, and approved by Gov. Rick Scott. Please notice the contact information for emailing Gov. Scott. You are now being asked, by me, to indicate to the Governor that you strongly oppose passage of this bill, and then give him your reasons. (Note the reasons provided within this newsletter). Can you do this within the next few days? Time is now of major importance. You may also indicate that you are a member of the Florida Timeshare Owners Group, which has recently gone on public record in opposition to the passage of these changes in our current Florida statutes, which currently regulate the timeshare industry. These proposed changes are clearly an attempt to remove the current consumer protections that are now afforded to all owners of Florida timeshares. I truly hope that each and every FTOG member will participate in this effort to protect not only your own individual timeshare property ownership, but also the protections afforded to all Florida timeshare owners, wherever they currently reside.

You may also consider copying me on your emails, as they are sent to Gov. Scott. Thank you! Frank Debar, Chairman Florida Timeshare Owners Group (941) 351-1384 Website: www.tsownersgroup.com

Here is the NTOA Newsletter: -------------------------------------------------- National Timeshare Owners Association April 2015 Newsletter #16 -------------------------------------------------- Calling All Timeshare Owners!!

A Call to Action:

About two months ago, the NTOA was advised that amendments to the Florida Timeshare Act had been filed by Florida Representative Eric Eisenaugle. According to the bills sponsor, the legislation was drafted to modernize the law to accommodate new timeshare programs and protect consumers. We reached out to ARDA-ROC who shared with us that they too, felt these amendments would be good for timeshare owners. Upon first read and review, we knew there was a problem and began asking more questions to various industry representatives, including the leadership of ARDA and ARDA-ROC as to why no information was published about these changes in advance. With no response, we then requested an independent analysis and were alarmed at its findings. (See Analysis)

The NTOA in its mission to protect and preserve the vacation ownership interests of all timeshare owners met with elected officials and testified about the damaging affects the new revisions could have on consumer protection in Florida as well as anyone purchasing a timeshare in that state. As a result, the media began to cover HB453/SB932 closer and the Orlando Sentinel published several articles regarding the timeshare bill (See Links or go to Google News: "Timeshare", for more information)

Your Help is Needed: Today the NTOA is participating in a coalition of timeshare owner groups from around the nation who have banded together to publicly oppose amendments to the Florida Timeshare Act as it is written. Our goal is to create dialogue, where there is currently none, slow down the process of implementing provisions which may have negative "unintended consequences" and ensure proper and fair changes are made with consumer input. (See press release 4/20/15)

We want our member/owners to understand that this legislation has national implications and can not be allowed to be implemented. We encourage you to go to our website under the legislation page and listen to a podcast conducted by TimeSharing Today Magazine as well as read the bill and articles that explain the issues in much more clear detail. Finally, if you agree that these changes are detrimental to your ownership rights, we ask that you write to Gov. Rick Scott and express that he VETO the timeshare bill.

More to come!

Gregory Crist Chairman and CEO

Executive Office of Governor Rick Scott 400 S Monroe St Tallahassee, FL 32399 (850) 488-7146 Email the Gov. - CLICK HERE

Listen to the PODCAST - CLICK HERE

Below are links to the bill and articles helping to bring awareness to these actions.

1. FLORIDA BILL HB453 / SB932

2. Florida bill to loosen cap on timeshare fees draws critics

3. Florida bill aims to weaken timeshare protections

As the Florida legislative session heads toward a closing deadline May 1, advocates for timeshare owners are trying to put pressure on lawmakers and Gov. Rick Scott to scuttle a developer bill sponsored by the American Resort Development Association. In the latest development, the National Timeshare Owners Association and Florida Timeshare Owners Group joined forces on a petition campaign asking Gov. Scott to veto the bill. Here is the petition, which is being sent on behalf of all timeshare owners in Florida, as well as out-of-state residents who bought timeshares in Florida. The petition sponsors, NTOA and FTOG, are actively seeking signatures from owners. If interested, check out the petition on NTOA's website, which is listed below.

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Dear Governor Rick Scott, On behalf of all Florida timeshare owners, and future buyers, we respectfully urge you to veto SB932, a developer-sponsored bill that was drafted without input from owners and consumer protection groups. While perhaps well intentioned, the bill contains many flaws that erode owner legal rights and, worst of all, includes and expands vague language that will simply have to be litigated down the line. The bill, in short, needs to be amended to provide clarity and equity for both owners and developers on several key issues: public disclosure, contract litigation, timeshare trusts, legacy resorts and maintenance fees. As it stands, the bill before you is a one-sided effort by the development community to rewrite state law to match their current marketing efforts. Example: The bill allows developers to unilaterally decide what constitutes “compliance” and “materiality” with regard to mistakes and omissions in contracts. The bill also restricts owners’ ability to challenge the legality of their contract after the 10-day rescission period required by current law. As you know, developers already hold all of the cards in timeshare transactions; Potential buyers are subjected to verbal high-pressure sales tactics that, under current law, are not actionable. Developers provide buyers with long and complicated contracts that are very difficult to read much less understand, and which are written to protect the developer. Beyond that, most timeshare developers don’t even offer, to this day, programs that will allow longtime Florida owners with medical or financial hardship to get OUT of their timeshare contracts while their mandatory maintenance fees continue to increase. SB 932, if enacted, would give developers even more leverage over the owner community --- and the fact is, they don’t need it. There is no emergency that requires passage of this bill. Action: Please send it back to the Legislature with a veto message that says, “Give me a fair and straightforward bill that balances the needs of owners and developers.”

-- Thank you,

Gregory G Crist CEO

National Timeshare Owners Association, Inc. 917 Lake Carrillon Dr, Suite 300 St. Petersburg, FL 33716

P: 727-502-6877 Ext 1004 greg@ntoassoc.com www.nationaltimeshareownersassoc.com

There is NOTHING in this bill that protects owners. How stupid do you think people are? I am in total opposition to this, and can't believe someone is trying to sneak something through that is potentially SO destructive, once again, towards the "little people," - the consumers. It is unbelievable that anyone would try to fool the general public on this. Or actually, maybe not, since that has become the norm these days. As a SC resident who owns a time share in Florida, I am OUTRAGED. This f'ing bill benefits ONLY developers and corporations and will potentially screw owners bigtime. WHY am I not surprised? You politicians just SUCK, and I'm so sick of the BS you try to pull on us. It is neverending. Don't you ever get TIRED of working so hard to screw normal, hardworking people?

During last week of legislative session in Florida, the Senate approved the House timeshare bill authored by Eisnaugle, without amendments. Which means that Eisnaugle's bill is now on the way to Gov. Rick Scott's desk for signature or veto. Given how easily the bill passed through both houses, it would be a sharp surprise for Scott to veto it. However, owner groups are still bombarding Scott's office with requests that he veto the bill in order to force a broader discussion among owner groups, such as NTOA, FTOG and RedWeek, and the developer/HOA community. Stay tuned.