To provide conditions for accepting a timeshare interest reservation deposit. Also, before gaining approval for the sale of incomplete projects, the bill requires timeshare promoters to provide evidence that the accommodations will be completed or that the purchaser's funds will be insured until the accommodations are complete. See also Companion SB 5492.   Official Text and Analysis.

By Representative Wood; and Steve Gano, American Resort Development Association. They testified that this bill is needed to refine the law on timeshares that the Legislature passed last year. These changes will bring Washington more in line with other states. Right now Washington law makes it very difficult for out-of-state companies to build projects in Washington, or sell timeshares to Washington consumers The timeshare industry is interested in consumer protection. If consumers are not confident that they are protected, they will not buy timeshare products and the industry will suffer..

By Paul Silver, Attorney General's Office; and Trudie Touchette and Randy Renfrow, DOL. They testified that there needs to be more consumer protection measures included in this bill. Timeshare projects should be registered with the Department before any type of interest is sold. Registration with the Department ensures that consumers get all the necessary information on a project. Informed consumers make better decisions. Consumers' money should be protected. They should get a full refund if something happens to a project or the terms of the deal change. Promoters should not be able to use consumer funds to finance new projects. This places all the risk on the consumer. If something goes wrong, there is no way for a consumer to get his or her money out of a partially completed project.

To delete proposed changes to timeshare interest reservations and authorizes the sale of fee simple timeshare interests in projects that are at least 20 percent complete after registration with the Department using current procedures. The substitute bill also requires that promotional materials indicate if an offering is in a project under construction and the last possible estimated completion date. Purchasers may request a full refund if the project is not completed either within two years of registering the project or on the expected completion date, or if the completed project is materially and adversely different from the offer.

Concerning timeshare interest reservation deposits.

Declaring that the timeshare must not be at least 20 percent complete in order for an irrevocable timeshare agreement to be signed. Instead of the requirement that a timeshare must be completed within two years, a purchaser must have the right to occupy the unit and use all contracted amenities within two years. The two-year period begins on the date the purchase agreement is signed, instead of the date of the initial offer to sell the timeshare interest. Provisions regarding trust accounts are deleted. Bonds must be equal to or greater than the amount that would otherwise be required to be placed into the escrow account. The amendment also provides that DOL will determine if and how funds will be distributed when an escrow agent receives conflicting demands for funds or property held in escrow.

(timeshares).