Timeshare Trouble

The word "timeshare" has a history that should make politicians, especially Florida's, stop, look and listen before changing any of the rules. The Legislature did hardly any of that before voting to exempt registered travel clubs from the timesharing laws, failing even to notify the agency that enforces them. That could spell bad news not only for some potential travel club customers, but for condominium owners who thought they were protected against short-term rentals of neighboring units. The poor process and the questionable outcomes deserve a veto by Gov. Jeb Bush.

The legislation, CS for SB 1520, originated as a noncontroversial package of changes sought by the Department of Agriculture and Consumer Services. Early in the process, lobbyists for a posh travel club run by Steve Case, the former America Online chairman, had it amended to say that timesharing regulation would not apply to a travel club that does not offer its members an ownership interest or a fixed right to use a particular property. Although there was no objection from the Agriculture Department, which regulates travel clubs, no one seemed to care how this would erode the authority of the Department of Business and Professional Regulation, which polices the timeshare industry. The timeshare industry took alarm only on the session's last day.

The timeshare lobby, which includes such heavy political hitters as Marriott, Hilton and Walt Disney World, is now urging Bush to veto the bill. So is Orange County Mayor Richard Crotty, a former legislator, who wrote the governor that "deregulating in such a haphazard way is against the interests of the consumer and threatens our economy." Some of that clamor may be more competitive than altruistic, but there is also a strong concern that corrupt speculators who were run out of Florida's timeshare industry years ago could find their way back in through a door the Legislature intended only for reputable companies with wealthy clients. The timeshare laws are far more strict and comprehensive, especially as to financial security, than those applying to the travel industry.

The "travel club" lobby also makes no secret that the bill would give them a way around laws and regulations that inhibit condominium developers from selling units to timeshare promoters. Legislators who gave no thought to that should expect to hear from the condo associations.

Though it admits to concern, the Department of Business and Professional Regulation maintains that any problems with the legislation could be corrected next year. But no one should take for granted what the Legislature might do. As nothing else in SB 1520 appears to be urgent, the governor's wiser choice would be to veto it.