SRC-LBB S.B. 1647 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1647
By: Staples
Business & Commerce
3/28/2003
As Filed


DIGEST AND PURPOSE 
 
Timeshare transactions include the sale, exchange, option, lease, or
rental of a timeshare interest. Most developers of timeshare properties
use standardized contract forms, closing documents, and disclosure
documents for the transfer of timeshare interests in their timeshare
resorts.  As proposed, S.B. 1647 authorizes a timeshare developer to
charge a fee for completion of the forms and clarifies that the completion
and the charging of a fee by the developer will not constitute the
unauthorized or illegal practice of law if the contract or document has
been accepted by the Texas Real Estate Commission for use in the
particular type of transaction involved, or prepared by a Texas attorney
for such purpose. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 221D, Property Code, by adding Section 221.036,
as follows: 

Sec.  221.036.  DEVELOPER PREPARATION AND COMPLETION OF DOCUMENTS.  (a)
Authorizes a developer to charge a reasonable fee for completion of a
contract form, closing document, or disclosure document required for the
sale, exchange, option, lease, or rental of a timeshare interest. 

(b)  Provides that the action of a developer under Subsection (a) does not
constitute the unauthorized or illegal practice of law in this state if
the contract or document has been accepted by the Texas Real Estate
Commission or prepared by an attorney licensed to practice law in this
state for use in the particular type of transaction involved. 

SECTION 2.  Effective date:  upon passage or September 1, 2003.