SECTIONS 11265-11275 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 11265-11275

11265. (a) For single site time-share plans and component sites of
a specific time-share interest multisite time-share plan, the
following requirements apply:
(1) Except as provided in paragraph (2), regular assessments to
defray the expenses of maintaining the time-share property and
operating the time-share plan shall be levied against each time-share
interest owner according to the ratio that the number of time-share
interests owned by a time-share interest owner assessed bears to the
total number of time-share interests subject to assessments. Regular
assessments levied by the association shall not exceed the amount
necessary to defray the estimated expenses for which the assessments
are levied.
(2) The assessment against each owner in the time-share plan may
be determined according to a formula or schedule under which
assessments against each time-share interest owner are equitably
apportioned in accordance with operational and maintenance costs
attributable to each time-share interest owner.
(3) A special assessment shall be levied upon the same basis as
that prescribed for the levying of regular assessments except in the
case where the special assessment is levied against a time-share
interest owner for the purpose of reimbursing the association for
costs incurred in bringing the time-share interest owner into
compliance with provisions of the governing instruments for the
time-share plan.
(4) All time-share interests in the time-share plan for which a
public report has been issued including those time-share interests
held by the developer of the time-share plan are interests subject to
the payment of regular and special assessments.
(5) The governing body of the association may be authorized by the
governing instruments to impose, without the vote or written assent
of the association, a regular annual assessment per time-share
interest that is as much as 20 percent greater than the regular
annual assessment for the immediately preceding fiscal year. An
annual assessment for each time-share interest that is more than 20
percent greater than the regular assessment per time-share interest
for the immediately preceding fiscal year may not be levied without
the vote or written assent of a majority of the voting power of the
association residing in members other than the developer. An increase
in the annual assessment attributable to an increase in real
property taxes against accommodations of the time-share property
shall be excluded in determining whether the annual assessment is
more than 20 percent greater than the regular assessment per interest
for the preceding fiscal year.
(6) Except as provided in this section, special assessments
against time-share interest owners in a time-share plan may not be
imposed without the vote or written assent of a majority of the
voting power of the association residing in members other than the
developer. The governing body of the association may be authorized by
the governing instruments to impose special assessments without the
vote or written assent of the association as follows:
(A) Special assessments against all time-share interest owners in
the time-share plan, other than a special assessment to restore or
rebuild because of damage or destruction to an accommodation, which
in the aggregate in any fiscal year do not exceed 5 percent of the
budgeted gross expenses of the association for that fiscal year.
(B) A special assessment for the repair or rebuilding of an
accommodation that does not exceed 10 percent of the budgeted gross
expenses of the association for the fiscal year in which the
assessment is levied.
(C) Special assessments against a time-share interest owner or
owners for the purpose of reimbursing the association for costs
incurred in bringing the time-share interest owner into compliance
with provisions of the governing instruments for the time-share plan.
(7) Regular assessments against all of the time-share interests in
an accommodation of the time-share plan shall commence on the same
date. Regular assessments shall commence on the first day of the
month following the closing of the escrow of the first sale of a
time-share interest in the time-share plan, but may be delayed to the
date of commencement of time-share interest owners' occupancy rights
in the accommodation or to a date that is not more than six months
later than the date of closing of the first sale involving a right to
use the accommodation, whichever occurs earlier in time.
(b) For single site time-share plans and component sites of a
multisite time-share plan located outside of the state the time-share
instruments shall include the subject matter set forth in paragraphs
(1) to (4), inclusive, of subdivision (a). The time-share
instruments shall be in compliance with the applicable laws of the
state or jurisdiction in which the time-share property or component
site is located, and if a conflict exists between the affirmative
standards of the laws of the situs state and the requirements set
forth in this section, the law of the situs state shall control. If
the time-share instruments provide for the matters contained in
paragraphs (1) to (4), inclusive, of subdivision (a), the time-share
instruments shall be deemed to be in compliance with the requirements
of paragraphs (1) to (4), inclusive, of subdivision (a) and this
subdivision and the developer shall not be required to make revisions
in order to comply with paragraphs (1) to (4), inclusive, of
subdivision (a) and this subdivision. If the maximum increase in
annual assessments for a time-share plan located outside of this
state is greater than the 20 percent set forth in paragraph (5) of
subdivision (a), the public report shall include the following
disclosure in conspicuous 14-point type:

YOUR ANNUAL ASSESSMENTS ARE NOT SUBJECT TO THE CALIFORNIA
LIMITATION OF A 20% ANNUAL INCREASE WITHOUT THE VOTE OF THE OWNERS
OTHER THAN THE DEVELOPER. YOUR ASSESSMENT MAY BE INCREASED BY AS MUCH
AS ____% PER YEAR.

(c) For nonspecific time-share interest multisite time-share plans
the following requirements apply:
(1) Except as provided in paragraph (2), regular assessments to
defray the expenses of maintaining and operating the multisite
time-share plan shall be levied against each time-share interest
owner according to the ratio that the number of time-share interests
owned by a time-share interest owner assessed bears to the total
number of time-share interests subject to assessments.
(2) The assessment against each time-share interest owner in the
multisite time-share plan may be determined according to a formula or
schedule under which assessments against each time-share interest
owner are equitably apportioned in accordance with operational and
maintenance costs attributable to each time-share interest owner.
(3) A special assessment shall be levied upon the same basis as
that prescribed for the levying of regular assessments except in the
case where the special assessment is levied against a time-share
interest owner for the purpose of reimbursing the association for
costs incurred in bringing the time-share interest owner into
compliance with provisions of the governing instruments for the
time-share plan.
(4) All time-share interests in the multisite time-share plan for
which a public report has been issued including those time-share
interests held by the developer of the multisite time-share plan are
interests subject to the payment of regular and special assessments.

11265.1. (a) Regular and special assessments levied pursuant to the
time-share instrument are delinquent 30 days after they become due,
unless the time-share instrument provides a longer time period, in
which case the longer time period shall apply. If an assessment is
delinquent, the association may recover all of the following:
(1) Reasonable costs incurred in collecting the delinquent
assessment, including reasonable attorneys' fees.
(2) A late charge not exceeding 10 percent of the delinquent
assessment or ten dollars ($10), whichever is greater, unless the
time-share instrument specifies a late charge in a smaller amount, in
which case any late charge imposed shall not exceed the amount
specified in the governing instrument.
(3) Interest on all sums imposed in accordance with this section,
including the delinquent assessments, reasonable fees and costs of
collection, and reasonable attorneys' fees, at an annual interest
rate not to exceed 12 percent, commencing 30 days after the
assessment becomes due, unless the time-share instrument specifies
the recovery of interest at a lower rate, in which case, the lower
rate of interest shall apply.
(b) Regular assessments imposed or collected to perform the
obligations of an association under the governing documents of this
title shall be exempt from execution by a judgment creditor of the
association only to the extent necessary for the association to
perform essential services, such as paying for utilities and
insurance. In determining the appropriateness of an exemption, a
court shall ensure that only essential services are protected under
this subdivision. This exemption shall not apply to any consensual
pledges, liens, or encumbrances that have been approved by the owners
of the association, constituting a quorum, casting a majority of the
votes at a meeting or election of the association, or to any state
tax lien, or to any lien for labor or materials supplied to the
common area.
(c) The association shall provide notice by first-class mail to
the owners of the time-share interests of any increase in the regular
or special assessments of the association, not less than 30 days nor
more than 60 days prior to the increased assessment becoming due.
(d) Associations are hereby exempted from interest rate
limitations imposed by Article XV of the California Constitution,
subject to the limitations of this section.

11266. (a) An amendment of a provision of the declaration or other
document establishing the time-share plan may not be adopted without
the vote or written assent of at least 25 percent of the voting power
of the association residing in members other than the developer.
(b) An amendment of the articles of incorporation or association
may not be enacted without the vote or written assent of at least 25
percent of the governing body and 25 percent of the voting power of
the association residing in members other than the developer.
(c) An amendment of the bylaws of the association may not be
enacted without the vote or written assent of at least 10 percent of
the voting power of the association residing in members other than
the developer.
(d) An amendment to the rules and regulations of the association
may not be enacted without the vote or written assent of at least a
majority of the governing body of the association.
(e) The percentage of the voting power necessary to amend a
specific clause or provision in the time-share instrument, articles,
or bylaws shall not be less than the prescribed percentage of
affirmative votes or written assents required for action to be taken
under that clause.
(f) In addition to the restrictions upon the enactment of
amendments of the governing instruments set forth in this section,
the governing instruments may include provisions consistent with
subdivision (c) of Section 11269 whereby the vote of the developer
must be given effect in the amendatory process.
(g) For a single site time-share plan or a component site of a
specific time-share interest time-share plan or a nonspecific
time-share interest multisite time-share plan located outside this
state, that is being offered in this state, the public report shall
include the following disclosure in conspicuous 14-point type:

THE DECLARATION OR OTHER DOCUMENT ESTABLISHING THIS TIME-SHARE
PLAN MAY BE AMENDED BY A VOTE OF ____% OF THE MEMBERS OF THE
ASSOCIATION. THE BYLAWS OF THE ASSOCIATION MAY BE AMENDED BY A VOTE
OF ____% OF THE MEMBERS.

11267. (a) The time-share instruments shall require the employment
of a managing entity for the time-share plan or component site
pursuant to a written management agreement that shall include all of
the following provisions:
(1) Delegation of authority to the managing entity to carry out
the duties and obligations of the association or the developer to the
time-share interest owners.
(2) Authority of the managing entity to employ subagents, if
applicable.
(3) A term of not more than five years with automatic renewals for
successive three-year periods after expiration of the first term
unless the association by the vote or written assent of a majority of
the voting power residing in members other than the developer
determines not to renew the contract and gives appropriate notice of
that determination. However, in those time-share plans where the
association is controlled by owners other than the developer, the
management agreement shall not be subject to the term limitations set
forth in this section, and any longer term shall not be grounds for
denial of a public report, unless the longer term of the management
contract is the result of the developer exercising control.
(4) Termination for cause at any time by the governing body of the
association. If the single site time-share plan or the component
site of a multisite time-share plan is located within the state, then
that termination provision shall include a provision for arbitration
in accordance with the Commercial Arbitration Rules of the American
Arbitration Association if requested by or on behalf of the managing
entity.
(5) Not less than 90 days' written notice to the association of
the intention of the managing entity to resign.
(6) Enumeration of the powers and duties of the managing entity in
the operation of time-share plan and the maintenance of the
accommodations comprising the time-share plan.
(7) Compensation to be paid to the managing entity.
(8) Records to be maintained by the managing entity.
(9) A requirement that the managing entity provide a policy for
fidelity insurance or bond for the activities of the managing entity,
payable to the association, which shall be in an amount no less than
the sum of the largest amount of funds expected to be held or
controlled by the managing entity at any time during the year,
pursuant to the budget. The commissioner may provide a reduction in
the insurance policy or bond amounts required by this paragraph.
(10) Errors and omissions insurance coverage for the managing
entity, if available.
(11) Delineation of the authority of the managing entity and
persons authorized by the managing entity to enter into
accommodations of the time-share plan for the purpose of cleaning,
maid service, maintenance and repair including emergency repairs, and
for the purpose of abating a nuisance or dangerous, unlawful, or
prohibited activity being conducted in the accommodation.
(12) Description of the duties of the managing entity, including,
but not limited to, the following:
(A) Collection of all assessments as provided in the time-share
instruments.
(B) Maintenance of all books and records concerning the time-share
plan.
(C) Scheduling occupancy of accommodations, when purchasers are
not entitled to use specific time-share periods, so that all
purchasers will be provided the opportunity for use and possession of
the accommodations of the time-share plan, that they have purchased.
(D) Providing for the annual meeting of the association of owners.
(E) Performing any other functions and duties related to the
maintenance of the accommodations or that are required by the
time-share instrument.
(b) Any written management agreement in existence as of the
effective date of this chapter shall not be subject to the term
limitations set forth above.
(c) For single site time-share plans and component sites of a
multisite time-share plan located outside of the state, the
time-share instruments shall include the subject matter set forth in
subdivision (a). The time-share instruments shall be in compliance
with the applicable laws of the state or jurisdiction in which the
time-share property or component site is located, and if a conflict
exists between laws of the situs state and the requirements set forth
in this section, the law of the situs state shall control. If the
time-share instruments provide for the matters contained in
subdivision (a), the time-share instruments shall be deemed to be in
compliance with the requirements of subdivision (a) and the developer
shall not be required to make revisions in order to comply with
subdivision (a) and this subdivision.

11268. (a) Unless impracticable because of the number of members of
the association, their places of residence in relation to each
other, the international nature of the offering, or other factors,
provision shall be made for regular meetings of members of the
association of time-share interest owners. Ordinarily regular
meetings of members shall be scheduled not less frequently than once
each calendar year at a time and place to be fixed by the bylaws or
by resolution of the governing body. The first meeting of the
association shall be scheduled not later than one year after the
closing of the escrow for the first sale of a time-share interest in
the time-share plan or completion of construction, whichever shall
first occur.
(b) Provision shall be made for special meetings of the
association to be promptly called by the governing body upon either
of the following:
(1) The vote of a majority of the governing body.
(2) Receipt of a written request signed by members representing at
least 5 percent of the voting power of the association residing in
members other than the developer.
(c) Meetings of the association shall be held at a suitable
location that is readily accessible at reasonable cost to the largest
possible number of members.
(d) Written notice of regular and special meetings shall be given
to members by first-class mail. This notice shall be given not less
than 14 days and not more than 90 days before the scheduled date of
the meeting. The notice, whether for a regular or special meeting
shall specify the place, day, and hour of the meeting and a brief
statement of the matters which the governing body intends to present,
or believes that others will present, for action by the members.
(e) (1) The bylaws of the association shall establish the quorum
for a meeting of members at not less than 5 percent nor more than 33
1/3 percent, of the voting power of the association residing in
members other than the developer, represented in person or by proxy.
(2) In the absence of a quorum as prescribed by the bylaws, no
business shall be conducted and the presiding officer shall adjourn
the meeting sine die.
(3) If less than one-third of the total voting power of the
association is in attendance, in person or by proxy, at a regular or
special meeting of the association, only those matters of business,
the general nature of which was given in the notice of the meeting
may be voted upon by the members.
(f) Any action that may be taken at any regular or special meeting
of members may be taken without a meeting if the following
requirements are met:
(1) A written ballot is distributed to every member entitled to
vote setting forth the proposed action, providing an opportunity to
signify approval or disapproval of the proposal, and providing a
reasonable time for the members to return the ballot to the
association.
(2) The number of votes cast by ballot within the specified time
period equals or exceeds the quorum required to be present at a
meeting authorizing the action.
(3) The number of approvals of the action equals or exceeds the
number of votes required to approve the action at a meeting at which
the total number of votes cast was the same as the number of votes
cast by written ballot.
(4) The written ballot distributed to members of the association
affords an opportunity for the member to specify a choice between
approval and disapproval of each order of business proposed to be
acted upon by the association and further provides that the vote of
the members shall be cast in accordance with the choice specified.
(g) The bylaws of the association may provide that governing body
members may be elected by written ballot.
(h) A form of proxy may be distributed to each member to afford
him or her the opportunity to vote in absentia at a meeting of
members of the association provided that it meets the requirements
for a written ballot set forth in paragraph (4) of subdivision (f)
and includes the name or names of members who expect to be in
attendance in person at the meeting to whom the proxy is to be given
for the purpose of casting the vote to reflect the absent member's
vote as specified in the form of proxy.

11269. (a) A member of an association including associations that
provide for unequal assessments against members, shall be entitled to
one vote for each time-share interest owned.
(b) An association may have two classes of members for voting
purposes according to the following provisions:
(1) Each time-share interest owner other than the developer of the
time-share plan shall be a class A member. If a time-share interest
is owned by more than one person, each time-share interest owner
shall be a class A member, but only one vote may be cast for each
interest.
(2) The developer shall be the class B member and shall have one
vote for each time-share interest owned by him or her which has been
authorized to be offered for sale by the issuance of a public report.
(3) Class B membership shall be automatically converted to class A
membership, and class B membership shall thereafter cease to exist,
when the total outstanding votes held by the class B member falls
below 20 percent of the total voting power of the association.
(c) Except as otherwise expressly provided, no regulation which
requires the approval of a prescribed percentage of the voting power
residing in members other than the developer or a prescribed
percentage of the voting power of class A members, for action to be
taken by the association, is intended to preclude the developers from
casting votes attributable to the time-share interests which he or
she owns. Governing instruments may specify the following with
respect to approval of action by the membership of the association
other than an action to enforce an obligation of the developer:
(1) In those associations in which class A and class B memberships
exist, the vote or written assent of a prescribed percentage of the
class A voting power and the vote or written assent of the class B
member.
(2) In those associations in which a single class of voting
membership exists, either as originally established or after the
conversion of the class B membership to class A memberships, the vote
or written assent of a prescribed percentage of the total voting
power of the association and the vote or written assent of a
prescribed percentage of the voting power of members other than the
developer.

11270. (a) The governing body shall consist of three directors for
an association that does not contemplate more than 100 members and
either five or seven directors for an association that contemplates
more than 100 members.
(b) (1) The first governing body shall consist of directors
appointed by the developer. These directors shall serve until the
first meeting of the association at which time an election of all of
the directors for the association shall be conducted.
(2) A special procedure shall be established by the governing
instruments to assure that at the first election of the governing
body, and at all times thereafter, at least one of the incumbent
directors has been elected solely by the votes of members other than
the developer.
(3) A director who has been elected to office solely by the votes
of the members of the association other than the developer may be
removed from the governing body prior to the expiration of his or her
term of office only by a vote of a prescribed percentage of the
voting power residing in members other than the developer.
(c) The terms of office of governing body members may be staggered
provided that no person may serve a term of more than three years
without standing for reelection.
(d) For board of director members serving at the appointment of
the developer, the developer may change the designated board member
without the need of any further consent by the association. However,
the term of the applicable director's seat on the governing body
shall not be affected by that change.

11271. (a) Regular meetings of the governing body of the
association shall be held as prescribed in the bylaws, but not less
frequently than annually.
(b) (1) Regular and special meetings of the governing body shall
be held in or near the location of the time-share plan unless a
meeting at another location would significantly reduce the cost to
the association or the inconvenience to directors.
(2) If the time and place of the regular meeting of the governing
body is not fixed by the governing instruments, notice of the time
and place of meeting shall be communicated in writing, including by
facsimile, electronic mail, or other form of written or electronic
communication, to directors not less than 14 days prior to the
meeting. However, that notice of a meeting is not required to be
given to any governing body member who has signed a waiver of notice
or a written consent to the holding of the meeting.
(c) (1) A special meeting of the governing body may be called by
written notice signed by any two members of the governing body.
(2) The notice of a special meeting shall specify the time and
place of the meeting and the nature of any special business to be
considered.
(3) Notice of a special meeting shall be communicated in writing,
including by facsimile, electronic mail, or other form of written or
electronic communication, to directors not less than 14 days prior to
the meeting. However, notice of the meeting is not required to be
given to any governing body member who signed a waiver of notice or a
written consent to the holding of the meeting.
(d) (1) Regular and special meetings of the governing body shall
be open to all members of the association provided that members who
are not on the governing body may not participate in any
deliberations or discussions unless expressly so authorized by the
governing body.
(2) The governing body may, with the approval of a majority of a
quorum of its members, adjourn a meeting and reconvene in executive
session to discuss and vote upon personnel matters, litigation in
which the association is or may become involved, and orders of
business of a similar nature. The nature of any and all business to
be considered in executive session shall first be announced in open
session.
(e) A bare majority of the total members of authorized members of
the governing body shall constitute a quorum for the conduct of
business.
(f) The governing instruments for the time-share plan shall
provide for reimbursement by the association for transportation
expenses incurred and reasonable per diem payments to governing body
members for attendance at regular and special meetings of the
governing body.

11272. (a) The following information concerning the time-share plan
shall be made available to all time-share interest owners in the
time-share plan:
(1) A proposed budget for each fiscal year consisting of the
information required by Section 11240 shall be distributed not less
than 15 days prior to the beginning of the fiscal year to which the
budget applies.
(2) An audit of the financial statements of the association by an
independent certified public accountant shall be performed each year
and shall be made available upon request by a time-share owner 120
days after the close of the fiscal year. The audited financial
statements shall be included in a report that includes all of the
following:
(A) A balance sheet as of the end of the fiscal year.
(B) An operating (income) statement for the fiscal year.
(C) A statement of the net changes in the financial position of
the time-share plan during the fiscal year.
(D) For any fiscal year in which the gross income to the
association exceeds seventy-five thousand dollars ($75,000), a copy
of the review of the annual report prepared in accordance with
generally accepted accounting principles.
(E) A list of the names and methods of contacting the members of
the governing body of the association.
(3) A list of the orders of business to be considered at the
annual meeting of members of the association shall be distributed not
less than 14 days prior to the meeting date. This list shall include
the name, address, and a brief biographical sketch if available of
each member of the association who is a candidate for election to the
governing body.
(b) In lieu of the distribution of the budget and report required
by subdivision (a), the governing body may elect to distribute a
summary of the budget and report to all time-share interest owners
along with a written notice that the budget and report is available
at the business office of the association or at another suitable
location within the boundaries of the development, and that copies
will be provided upon request and at the expense of the association.
If any time-share interest owner requests that a copy of the budget
and report required by subdivision (a) be provided to the time-share
interest owner, the association shall provide the copy to the
time-share interest owner by facsimile, electronic mail, or
first-class United States mail at the expense of the association and
delivered within 10 days. The written notice that is distributed to
each of the time-share interest owners shall be in conspicuous
14-point type on the front page of the summary of the budget and
report.
(c) Delivery of the information specified in subdivision (a) may
be combined where appropriate.
(d) For single site time-share plans and component sites of a
multisite time-share plan located outside of the state, the
association shall be subject to the provisions set forth in this
section. The association must be in compliance with the applicable
laws of the state or jurisdiction in which the time-share property or
component site is located, and if a conflict exists between laws of
the situs state and the requirements set forth in this section, the
law of the situs state shall control. If the association provides for
the dissemination of information provided for in this section, the
association shall be deemed to be in compliance with the requirements
of this section and neither the developer nor the association shall
be required to make revisions to the time-share instruments or budget
in order to comply with this section.

11273. (a) The books of account, minutes of members and governing
body meetings, and all other records of the time-share plan
maintained by the association or the managing entity shall be made
available for inspection and copying by any member, or by his or her
duly appointed representative, at any reasonable time for a purpose
reasonably related to membership in the association.
(b) The records shall be made available for inspection at the
office where the records are maintained. Upon receipt of an
authenticated written request from a member along with the fee
prescribed by the governing body to defray the costs of reproduction,
the managing entity or other custodian of records of the association
or the time-share plan shall prepare and transmit to the member a
copy of any and all records requested.
(c) The governing body shall establish reasonable rules with
respect to all of the following:
(1) Notice to be given to the managing entity or other custodian
of the records by the member desiring to make the inspection or to
obtain copies.
(2) Hours and days of the week when a personal inspection of the
records may be made.
(3) Payment of the cost of reproducing copies of records requested
by a member.
(d) Every governing body member shall have the absolute right at
any time to inspect all books, records, and documents of the
association and all real and personal properties owned and controlled
by the association.
(e) The association shall maintain among its records a complete
list of the names and addresses of all owners of time-share interests
in the time-share plan. The association shall update this list no
less frequently than every six months. Unless otherwise provided in
the time-share instruments, the association may not publish this
owner's list or provide a copy of it to any time-share interest owner
or to any third party or use or sell the list for commercial
purposes.
(f) For single site time-share plans and component sites of a
multisite time-share plan located outside of the state, the
association shall be subject to the provisions set forth in this
section. The association must be in compliance with the applicable
laws of the state or jurisdiction in which the time-share property or
component site is located, and if a conflict exists between laws of
the situs state and the requirements set forth in this section, the
law of the situs state shall control. If the association and the
time-share instruments provide for the matters contained in this
section, the association shall be deemed to be in compliance with the
requirements of this section and neither the developer nor the
association shall be required to make revisions to the time-share
instruments in order to comply with the section.

11274. (a) The association shall not be authorized to cause the
absolute forfeiture of a time-share interest owner's right, title, or
interest in the time-share plan on account of the time-share
interest owner's failure to comply with provisions of the time-share
instrument or the rules and regulations for the time-share plan
except pursuant to either of the following:
(1) The judgment of a court or the decision of an arbitrator as
provided in the time-share instrument.
(2) A foreclosure or sale under a power of sale for the failure of
a time-share interest owner to pay assessments duly levied by the
association.
(b) The time-share instrument may authorize the governing body of
the association, or the managing entity acting on behalf of the
governing body, to suspend a time-share interest owner's right to the
occupancy of an accommodation, and all related rights and privileges
as a time-share interest owner of a time-share interest in the
time-share plan, during the period of time that the time-share
interest owner is delinquent in the payment of regular or special
assessments or other charges duly levied by the association. The
time-share interest owner shall be given written notice of the
suspension of his or her rights and privileges immediately after the
decision to suspend has been made.
(c) The time-share instrument may authorize the association to
impose a monetary penalty to suspend a time-share interest owner's
right to use an accommodation or other facility that is part of the
time-share plan or to take other disciplinary action that is
appropriate, short of the forfeiture of the time-share interest owner'
s right, title, and interest in the time-share plan, for violations
of the provisions of the time-share instrument and of the rules and
regulations for operation of the time-share plan by the time-share
interest owner, his or her guests or persons under his or her
control, including, but not limited to, all of the following:
(1) Failure to vacate an accommodation upon expiration of the
time-share interest owner's use period.
(2) Damage to an accommodation or any other real or personal
property that is part of the time-share plan.
(3) Permitting a time-share interest to be subject to a lien,
other than the lien of nondelinquent real property taxes or
assessments, claim, or charge that could result in the sale of
time-share interests of other time-share interest owners.
(4) Creating a disturbance that interferes with the use and
enjoyment of facilities of the time-share plan by other time-share
interest owners.
(d) Before disciplinary action authorized under subdivision (c)
can be imposed by the association, the time-share interest owner
against whom the action is proposed to be taken shall be given
30-days prior written notice and the opportunity to present a written
or oral defense to the charges.
(1) The governing body of the association shall decide whether the
time-share interest owner's defense shall be oral or written.
(2) The time-share interest owner shall be notified of the
decision of the governing body of the association before disciplinary
action is taken.
(e) The association may delegate to the managing entity, the power
and authority to carry out disciplinary actions duly imposed by the
governing body.
(f) For single site time-share plans and component sites of
specific time-share interest multisite time-share plans and
nonspecific time-share interest multisite time-share plans located
outside this state, and offered for sale in this state, the public
report shall contain the following disclosure in conspicuous 14-point
type:

THIS TIME SHARE PLAN MAY NOT BE SUBJECT TO THE SAME PROTECTIONS
AGAINST FORFEITURE AND FORECLOSURE AS PROVIDED BY CALIFORNIA LAW. YOU
SHOULD BECOME FAMILIAR WITH THE PROCEDURES PROVIDED BY THE LAWS OF
THE STATE IN WHICH THE TIME-SHARE PLAN IS LOCATED.

11275. (a) Any contractual provision or other provision in the
time-share instruments implemented after July 1, 2005, setting forth
terms, conditions, and procedures for resolution of a dispute or
claim between a time-share interest owner and a developer, or any
provision in the time-share instruments implemented after July 1,
2005, setting forth terms, conditions, and procedures for resolution
of a dispute of a claim between an association and the developer,
shall, at a minimum, provide that the dispute or claim resolution
process, proceeding, hearing, or trial be conducted in accordance
with the following rules:
(1) For the developer to advance the fees necessary to initiate
the dispute or claim resolution process, with the costs and fees,
including ongoing costs and fees, if any, to be paid as agreed by the
parties and if they cannot agree then the costs and fees are to be
paid as determined by the person or persons presiding at the dispute
or claim resolution proceeding or hearing.
(2) For a neutral or impartial person to administer and preside
over the claim or dispute resolution process.
(3) For the appointment or selection, as designation, or
assignment of the person to administer and preside over the claim or
dispute resolution process within a specific period of time, which in
no event shall be more than 60 days from initiation of the claim or
dispute resolution process or hearing. The person appointed,
selected, designated, or assigned to preside may be challenged for
bias.
(4) For the venue of the claim or dispute resolution process to be
in the county where the time-share is located unless the parties
agree to some other location.
(5) For the prompt and timely commencement of the claim or dispute
resolution process. When the contract provisions provide for a
specific type of claim or dispute resolution process, the process
shall be deemed to be promptly and timely commenced if it is to be
commenced in accordance with the rules applicable to that process. If
the rules do not specify a date by which the proceeding or hearing
is required to commence, then commencement shall be by a date agreed
upon by the parties, and if they cannot agree, a date shall be
determined by the person presiding over the dispute resolution
process.
(6) For the claim or dispute resolution process to be conducted in
accordance with rules and procedures that are reasonable and fair to
the parties.
(7) For the prompt and timely conclusion of the claim or dispute
resolution process, including the issuance of any decision or ruling
following the proceeding or hearing.
(8) For the person presiding at the claim or dispute resolution
process to be authorized to provide all recognized remedies available
in law or equity for any cause of action that is the basis of the
proceeding or hearing. The parties may authorize the limitation or
prohibition of punitive damages.
(b) A copy of the rules applicable to the claim or dispute
resolution process shall be submitted as part of the application for
a public report.
(c) If the claim or dispute resolution process provides or allows
for a judicial remedy in accordance with the laws of this state, it
shall be presumed that the proceeding or hearing satisfies the
provisions of subdivision (a).