15 U.S.C. § 1706 — Effective date of statements of record and

Page 1674 TITLE 15—COMMERCE AND TRADE § 1706 (Pub. L. 90–448, title XIV, § 1406, Aug. 1, 1968, 82 Stat. 592; Pub. L. 91–609, title IX, § 909, Dec. 31, 1970, 84 Stat. 1811; Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105.) Editorial Notes AMENDMENTS 2010—Pars. (11), (12). Pub. L. 111–203 substituted ‘‘Di- rector’’ for ‘‘Secretary’’. 1970—Par. (5). Pub. L. 91–609 required the statement of record to contain a statement of the existence of any unusual conditions relating to noise or safety which af- fect the subdivision and are known to the developer. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE Section effective upon the expiration of two hundred and seventy days after Aug. 1, 1968, see section 1423 of Pub. L. 90–448, set out as a note under section 1701 of this title. § 1706. Effective date of statements of record and amendments thereto (a) Thirtieth day after filing or such earlier date as determined by Director; consolidation of subsequent statement with earlier recording Except as hereinafter provided, the effective date of a statement of record, or any amend- ment thereto, shall be the thirtieth day after the filing thereof or such earlier date as the Di- rector may determine, having due regard to the public interest and the protection of purchasers. If any amendment to any such statement is filed prior to the effective date of the statement, the statement shall be deemed to have been filed when such amendment was filed; except that such an amendment filed with the consent of the Director, or filed pursuant to an order of the Di- rector, shall be treated as being filed as of the date of the filing of the statement of record. When a developer records additional lands to be offered for disposition, he may consolidate the subsequent statement of record with any earlier recording offering subdivided land for disposi- tion under the same promotional plan. At the time of consolidation the developer shall include in the consolidated statement of record any ma- terial changes in the information contained in the earlier statement. (b) Incomplete or inaccurate statements of record If it appears to the Director that a statement of record, or any amendment thereto, is on its face incomplete or inaccurate in any material respect, the Director shall so advise the devel- oper within a reasonable time after the filing of the statement or the amendment, but prior to the date the statement or amendment would otherwise be effective. Such notification shall serve to suspend the effective date of the state- ment or the amendment until thirty days after the developer files such additional information as the Director shall require. Any developer, upon receipt of such notice, may request a hear- ing, and such hearing shall be held within twen- ty days of receipt of such request by the Direc- tor. (c) Amendment of statement of record If, at any time subsequent to the effective date of a statement of record, a change shall occur affecting any material fact required to be contained in the statement, the developer shall promptly file an amendment thereto. Upon re- ceipt of any such amendment, the Director may, if he determines such action to be necessary or appropriate in the public interest or for the pro- tection of purchasers, suspend the statement of record until the amendment becomes effective. (d) Suspension of statement of record containing untrue statement or omission to state mate- rial fact; notice and hearing; termination of order of suspension If it appears to the Director at any time that a statement of record, which is in effect, in- cludes any untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading, the Director may, after notice, and after opportunity for hearing (at a time fixed by the Director) within fifteen days after such notice, issue an order suspending the statement of record. When such statement has been amended in accordance with such order, the Director shall so declare and thereupon the order shall cease to be effective. (e) Examination to determine issuance of order; access to records; order suspending state- ment of record upon failure to cooperate The Director is hereby empowered to make an examination in any case to determine whether an order should issue under subsection (d). In making such examination, the Director or any- one designated by him shall have access to and may demand the production of any books and papers of, and may administer oaths and affir- mations to and examine, the developer, any agents or any other person, in respect of any matter relevant to the examination. If the de- veloper or any agents shall fail to cooperate, or shall obstruct or refuse to permit the making of an examination, such conduct shall be proper ground for the issuance of an order suspending the statement of record. (f) Service of notices Any notice required under this section shall be sent to or served on the developer or his author- ized agent. (Pub. L. 90–448, title XIV, § 1407, Aug. 1, 1968, 82 Stat. 593; Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–203 substituted ‘‘Director’’ for ‘‘Sec- retary’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. Page 1675 TITLE 15—COMMERCE AND TRADE § 1708 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE Section effective upon the expiration of two hundred and seventy days after Aug. 1, 1968, see section 1423 of Pub. L. 90–448, set out as a note under section 1701 of this title. § 1707. Property report (a) Contents of report A property report relating to the lots in a sub- division shall contain such of the information contained in the statement of record, and any amendments thereto, as the Director may deem necessary, but need not include the documents referred to in paragraphs (7) to (11), inclusive, of section 1705 of this title. A property report shall also contain such other information as the Di- rector may by rules or regulations require as being necessary or appropriate in the public in- terest or for the protection of purchasers. (b) Promotional use The property report shall not be used for any promotional purposes before the statement of record becomes effective and then only if it is used in its entirety. No person may advertise or represent that the Director approves or rec- ommends the subdivision or the sale or lease of lots therein. No portion of the property report shall be underscored, italicized, or printed in larger or bolder type than the balance of the statement unless the Director requires or per- mits it. (Pub. L. 90–448, title XIV, § 1408, Aug. 1, 1968, 82 Stat. 594; Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–203 substituted ‘‘Director’’ for ‘‘Sec- retary’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE Section effective upon the expiration of two hundred and seventy days after Aug. 1, 1968, see section 1423 of Pub. L. 90–448, set out as a note under section 1701 of this title. § 1708. Certification of substantially equivalent State law (a) Criteria; request by State (1) A State shall be certified if the Director de- termines— (A) that, when taken as a whole, the laws and regulations of the State applicable to the sale or lease of lots not exempt under section 1702 of this title require the seller or lessor of such lots to disclose information which is at least substantially equivalent to the informa- tion required to be disclosed by section 1707 of this title; and (B) that the State’s administration of such laws and regulations provides, to the max- imum extent practicable, that such informa- tion is accurate. (2) In the case of any State which is not cer- tified under paragraph (1), such State shall be certified if the Director determines— (A) that, when taken as a whole, the laws and regulations of the State applicable to the sale or lease of lots not exempt under section 1702 of this title provide sufficient protection for purchasers and lessees with respect to the matters for which information is required to be disclosed by section 1707 of this title but which is not required to be disclosed by such State’s laws and regulations; and (B) that the State’s administration of such laws and regulations provides, to the max- imum extent practicable, that (i) information required to be disclosed by such laws and regu- lations is accurate, and (ii) sufficient protec- tion for purchasers and lessees is made avail- able with respect to the matters for which in- formation is not required to be disclosed. (3) Any State requesting certification must agree to accept a property report covering land located in another certified State but offered for sale or lease in the State requesting certifi- cation if the property report has been approved by the other certified State. Such property re- port shall be the only property report required by the State with respect to the sale or lease of such land. (b) Filing of State disclosure materials and re- lated documentation for purposes of Federal statement of record and property report re- quirements; acceptance by Director After the Director has certified a State under subsection (a), the Director shall accept for fil- ing under sections 1704 through 1707 of this title (and declare effective as the Federal statement of record and property report which shall be used in all States in which the lots are offered for sale or lease) disclosure materials found ac- ceptable, and any related documentation re- quired, by State authorities in connection with the sale or lease of lots located within the State. The Director may accept for such filing, and de- clare effective as the Federal statement of record and property report, such materials and documentation found acceptable by the State in connection with the sale or lease of lots located outside that State. Nothing in this subsection shall preclude the Director from exercising the authority conferred by subsections (d) and (e) of section 1706 of this title. (c) Notice to State upon failure to meet require- ments and remedial action necessary for cer- tification If a State fails to meet the standards for cer- tification pursuant to subsection (a), the Direc- tor shall notify the State in writing of the changes in State law, regulation, or administra- tion that are needed in order to obtain certifi- cation. (d) Periodic review of certified States’ laws, reg- ulations, and administration; withdrawal of certification The Director shall periodically review the laws and regulations, and the administration