Regular Session 2015-2016 House Bill 0884 P.N. 1120

PRINTER'S NO. 1120

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

884

Session of

2015

INTRODUCED BY BRIGGS, V. BROWN, ROZZI, FREEMAN, KINSEY,

WHEATLEY, THOMAS, PASHINSKI, MILLARD, YOUNGBLOOD, COHEN AND

D. COSTA, APRIL 8, 2015

REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, APRIL 8, 2015

AN ACT

Amending Title 68 (Real and Personal Property) of the

Pennsylvania Consolidated Statutes, in protection of

cooperative interest purchasers, providing for special

protections for time shares.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Title 68 of the Pennsylvania Consolidated

Statutes is amended by adding a section to read:

§ 4407.1. Special protections for time shares.

(a) Variation by agreement.--Except as otherwise provided in

this chapter, the provisions of this chapter may not be varied

by agreement and rights conferred under this chapter may not be

waived. A declarant may not act under a power of attorney or use

any other device to evade the limitations or prohibitions of

this chapter or the declaration for a time share.

(b) Unconscionable contract.--

(1) If a court as a matter of law finds that any aspect

of a contract relating to the use or ownership of a time

share, any conduct directed against the purchaser by a party

to the contract or any result of the contract is

unconscionable, the court shall, in addition to the remedy

authorized in paragraph (4), either refuse to enforce the

contract against the purchaser or so limit the application of

any unconscionable aspect or conduct as to avoid any

unconscionable result.

(2) Without limiting the scope of paragraph (1), the

court may consider, among other things, any of the following

as pertinent to the issue of unconscionability:

(i) That those engaging in the practice know of the

inability of a party to receive benefits properly

anticipated from the time share and related goods or

services.

(ii) That there exists a gross disparity, at the

time of contracting, between the price of the time share

and related goods or services and their value as measured

by the price at which similar time shares or related

goods or services were readily obtainable or by other

tests of true value, except that a disparity between the

contract price and the value of the time share measured

by the price at which similar time shares were readily

obtainable in similar transactions does not, of itself,

render the contract unconscionable.

(iii) That the practice may enable one party to take

advantage of the inability of the other party reasonably

to protect the other party's interests by reason of

physical or mental infirmities, illiteracy or inability

to understand the language of the agreement, ignorance or

lack of education or similar factors.

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(iv) That the terms of the contract require a party

to waive legal rights.

(v) That the terms of the contract require a party

to unreasonably jeopardize money or property beyond the

money or property immediately at issue in the

transaction.

(vi) That the natural effect of the practice would

reasonably cause or aid in causing a party to

misunderstand the true nature of the contract or the

party's rights and duties under the contract.

(vii) That the writing purporting to evidence the

obligation of the party under the contract contains terms

or provisions or authorizes practices prohibited by law.

(viii) Definitions of unconscionability in statutes,

rules, regulations, rulings and decisions of legislative,

administrative or judicial bodies.

(3) Any charge or practice expressly permitted by this

chapter shall not in itself be construed as unconscionable.

Even though a practice or charge is authorized by this

chapter, the totality of a party's conduct may show that the

practice or charge is part of an unconscionable course of

conduct.

(4) In addition to the protections afforded in paragraph

(1), a party shall be entitled upon a finding of

unconscionability to recover from the person responsible for

the unconscionable conduct a remedy in accordance with law.

offering statement for a time share shall contain or fully and

accurately disclose all of the following in a cover sheet

bearing the title "Time-Share Disclosure Statement" and the name

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and principal business address of the developer and the

developer's agent, if any, the name and location of the time-

share property and the following three statements in boldface

type or capital letters no smaller than the largest type on the

page:

1. THESE ARE THE LEGAL DOCUMENTS COVERING YOUR RIGHTS AND

RESPONSIBILITIES AS A TIME-SHARE OWNER. IF YOU DO NOT UNDERSTAND

ANY PROVISIONS CONTAINED IN THEM, YOU SHOULD OBTAIN PROFESSIONAL

ADVICE.

2. THESE DISCLOSURE MATERIALS GIVEN TO YOU AS REQUIRED BY

LAW MAY BE RELIED UPON AS CORRECT AND BINDING. ORAL STATEMENTS

MAY NOT BE LEGALLY BINDING.

3. YOU MAY CANCEL IN WRITING ANY CONTRACT FOR THE PURCHASE

OF A TIME SHARE, WITHOUT ANY PENALTY OR OBLIGATION, WITHIN FIVE

BUSINESS DAYS FROM THE DATE YOU SIGN THE CONTRACT OR UNTIL FIVE

BUSINESS DAYS AFTER YOU RECEIVE THE TIME-SHARE DISCLOSURE

STATEMENT, WHICHEVER IS LATER. IF YOU SO CANCEL THE CONTRACT,

YOU ARE ENTITLED TO RECEIVE A FULL REFUND OF ANY DEPOSITS MADE,

EXCEPT, IF YOU HAVE USED OR OCCUPIED THE TIME-SHARE PROPERTY FOR

MORE THAN 12 HOURS, THE MANAGING ENTITY OR CAMPGROUND OPERATOR

MAY SUBTRACT FROM DEPOSITS MADE A REASONABLE CHARGE TO COVER THE

LENGTH OF STAY PLUS THE COST FOR DAMAGES TO THE TIME-SHARE

PROPERTY DIRECTLY ATTRIBUTABLE TO YOU OR ANY MEMBER OF YOUR

PARTY.

Section 2. This act shall take effect in 60 days.

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