News & Information
Top Ten Legislative 2024 Session Highlights
June 23, 2024
- Colorado—This year, a bill, SB 33, was proposed in the Colorado General Assembly that would have classified all short-term rentals, including timeshare, as commercial property rather than residential. This would have raised the tax rate from less than 7% to more than 25%. ARDA partnered with various interests in the state to defeat that legislation this year. We secured additional wins for timeshare through HB 1233, which exempts timeshare associations from many of the problematic requirements created by the 2022 HOA bill, including the requirement that delinquency notices be delivered to the owner’s “unit.”
- Virginia – It was a busy year both offensively and defensively. We passed a bill, HB 124, allowing for the full or partial termination of a timeshare plan. On the defensive side we were able to defeat two harmful bills. HB 880/SB 341 would have essentially prohibited foreclosures on assessment liens in timeshare, as it would have required a total of $5,000 in accumulated unpaid assessments during a period of three years before a foreclosure could occur. HB 918 would have required the mandatory takeback of timeshare interests.
- Florida – This year, we passed HB 429, which adds flexibility for association boards in managing or removing facilities, clarifies that associations and managers should follow estoppel requirements in the Timeshare Act rather than the Condo Act, and explicitly extends Inn Keepers’ Rights to timeshares. This bill also transfers the responsibility for appointment of commissioners of deeds from the Governor’s office to the Secretary of State, which should improve the efficiency in that process. We were also able to exempt timeshares form certain requirements in HB 1021, the condo reform bill. We will be working next session to secure additional exemptions form this legislation.
- Tennessee – We defeated a bill (HB 2617/SB 2547) which would have legitimized unscrupulous exit company business practices. In the last week of session, a group supported by exit companies was able to slip this language into an unclaimed property bill, but our team identified this amendment and worked with key legislators to kill the bill. We anticipate that this issue will arise again and are keeping an eye on it for next session.
- Hawaii – The legislative session in Hawaii was a busy one, with many bills monitored by our team. Most of these were defensive efforts on behalf of the industry and owners to oppose increased taxes and fees. On the offensive side, we supported the Lieutenant Governor’s bill (HB 2481) to repeal the timeshare commissioner of deeds law, which passed. The relief efforts for the Maui fires have left budget shortfalls at the state and local levels, raising concerns that taxes on timeshares would be an easy target to make up for this. However, our meetings with local officials have successfully prevented real property tax increases on Maui timeshares, with the rate remaining at $14.60 per $1,000.
- South Carolina – At the beginning of the 2024 session, the SC Department of Consumer Affairs presented to the House Legislative Oversight Committee about some of their recent actions over the industries they regulate. We have taken the information and used it as an opportunity to continue to work with DCA to educate them on timeshare products, the common sources of issues, and to connect them with member companies when appropriate. The legislature considered a bill (S 835) which would have removed all of the state’s sales tax exemptions, including the exemption on timeshare interest sales and exchanges. This bill was defeated.
- Missouri – The 2024 Missouri legislative session ended May 17. While we did not have an offensive initiatives, there were several bills impacting homeowners’ associations, from which we secured exemptions for timeshare owners’ associations.
- Massachusetts – Massachusetts is still in session and we are continuing the effort to address the termination and extension of expiring timeshare plans in the Commonwealth. Our bill (S 2591) will put into place more achievable voting requirements for owners who would like to terminate or extend, and provide a process for managing the option the owners choose to pursue. It has passed the joint judiciary, and we are currently looking at options for other faster-moving bills, like the housing bill, to attach ours to.
- North Carolina – North Carolina is in a short session this summer and we are currently pursuing non-judicial foreclosure language in HB 1034. This bill would speed up the foreclosure process, saving owners associations time and money, while also reducing hassle for delinquent owners, most of whom do not contest foreclosure on their interests.
- New Hampshire – There have been many condo bills proposed that we are watching closely this session. We secured a timeshare exemption from one (HB 1229) affecting proxies for HOAs. ARDA met with the NH Attorney General last fall to discuss a change to JUS 1307.01(b) and JUS 1406.01(b) to allow for electronic disclosures. We will continue to advocate for this change. New Hampshire’s session ends on December 4th.