DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
SUBDIVISIONS
4 CCR 725-6

NOTICE OF PROPOSED PERMANENT RULEMAKING HEARING
December 2, 2014

CHAPTER 3:	TIMESHARE – ADDITIONAL INFORMATION AND DISCLOSURES

Pursuant to and in compliance with Title 12, Article 61 and Title 24, Article 4, C.R.S. as amended, notice of proposed rulemaking is hereby given, including notice to the Attorney General of the State of Colorado and to all persons who have requested to be advised of the intention of the Colorado Real Estate Commission (the “Commission”) to promulgate rules, or to amend, repeal or repeal and re-enact the present rules of the Commission.

STATEMENT OF BASIS

The statutory basis for the rules titled Rules and Regulations for Subdivision Developers is Part 4 of Title 12, Article 61, Colorado Revised Statutes, as amended.  

STATEMENT OF PURPOSE

The purpose of this rule is to effectuate the legislative directive to promulgate necessary and appropriate rules in conformity with the state statutes concerning Subdivisions.

SPECIFIC PURPOSE OF THIS RULEMAKING

The purpose of this rule is to amend or repeal existing rules with respect to additional information and disclosures for timeshare subdivisions and to ensure that subdivision developers are familiar with all current regulations.

Proposed New, Amended and Repealed Rules

[Deleted material is shown struck through; new material is shown ALL CAPS.] Rules, or portions of rules, which are unaffected are reproduced.  Readers are advised to obtain a copy of the complete rules of the Commission at www.dora.state.co.us/real-estate/.

CHAPTER 3:	TIMESHARE – ADDITIONAL INFORMATION AND DISCLOSURES

3.1	A DEVELOPER OF TIME SHARE MUST DISCLOSE TO THE PUBLIC WHETHER OR NOT A TIME SHARE PLAN INVOLVES AN EXCHANGE PROGRAM AND, IF SO, WILL DISCLOSE AND DELIVER TO PROSPECTIVE PURCHASERS, A SEPARATE WRITTEN DOCUMENT, WHICH MAY BE PROVIDED BY AN EXCHANGE COMPANY IF THE DOCUMENT DISCLOSES THE FOLLOWING INFORMATION:

A.	THE NAME AND THE BUSINESS ADDRESS OF THE EXCHANGE COMPANY;
B.	WHETHER THE PURCHASER’S CONTRACT WITH THE EXCHANGE PROGRAM IS SEPARATE AND DISTINCT FROM THE PURCHASER’S CONTRACT WITH THE DEVELOPER;
C.	WHETHER THE PURCHASER’S PARTICIPATION IN THE EXCHANGE PROGRAM IS DEPENDENT UPON THE DEVELOPER’S CONTINUED AFFILIATION WITH THE EXCHANGE PROGRAM;
D.	WHETHER OR NOT THE PURCHASER’S PARTICIPATION IN THE EXCHANGE PROGRAM IS VOLUNTARY;
E.	THE SPECIFIC TERMS AND CONDITIONS OF THE PURCHASER’S CONTRACTUAL RELATIONSHIP WITH THE EXCHANGE PROGRAM AND THE PROCEDURE BY WHICH CHANGES, IF ANY, MAY BE MADE IN THE TERMS AND CONDITIONS OF SUCH CONTRACTUAL RELATIONSHIP;
F.	THE PROCEDURE OF APPLYING FOR AND EFFECTING ANY CHANGES;
G.	A COMPLETE DESCRIPTION OF ALL LIMITATIONS, RESTRICTIONS, ACCRUAL RIGHTS, OR PRIORITIES EMPLOYED IN THE OPERATION OF THE EXCHANGE PROGRAM, INCLUDING BUT NOT LIMITED TO LIMITATIONS ON EXCHANGES BASED ON SEASONALITY, UNIT SIZE, OR LEVELS OF OCCUPANCY; AND IF THE LIMITATIONS, RESTRICTIONS OR PRIORITIES ARE NOT APPLIED UNIFORMLY BY THE EXCHANGE PROGRAM, A COMPLETE DESCRIPTION OF THE MANNER OF THEIR APPLICATION;
H.	WHETHER EXCHANGES ARE ARRANGED ON A SPACE-AVAILABLE BASIS OR WHETHER GUARANTEES OF FULFILLMENT OF SPECIFIC REQUESTS FOR EXCHANGES ARE MADE BY THE EXCHANGE COMPANY;
I.	WHETHER AND UNDER WHAT CONDITIONS A PURCHASER MAY, IN DEALING WITH THE EXCHANGE PROGRAM, LOSE THE USE AND OCCUPANCY OF THE TIME SHARE PERIOD IN ANY PROPERLY APPLIED FOR EXCHANGE WITHOUT BEING OFFERED SUBSTITUTE ACCOMMODATIONS BY THE EXCHANGE PROGRAM;
J.	THE FEES FOR PARTICIPATION IN THE EXCHANGE PROGRAM, AND WHETHER THE FEES MAY BE ALTERED AND THE METHOD OF ANY ALTERING; AND
K.	THE NAME AND LOCATION OF EACH ACCOMMODATION OR FACILITY, INCLUDING THE TIME SHARING PLANS PARTICIPATING IN THE EXCHANGE PROGRAM.

A hearing on the above subject matter will be held on Tuesday, December 2, 2014, at the Colorado Division of Real Estate, 1560 Broadway, Suite 1250-C, Denver, Colorado 80202 beginning at 9:00 a.m. 

Any interested person may participate in the rule making through submission of written data, views and arguments to the Division of Real Estate.  Persons are requested to submit data, views and arguments to the Division of Real Estate in writing no less than ten (10) days prior to the hearing date and time set forth above. However, all data, views and arguments submitted prior to or at the rulemaking hearing or prior to the closure of the rulemaking record (if different from the date and time of hearing), shall be considered.
Please be advised that the rule being considered is subject to further changes and modifications after public comment and formal hearing.