(a)
In connection with its review of the registration application of a time-share plan, the commissioner may make an examination of any time-share property submitted for registration pursuant to this chapter, and shall, unless there are grounds for denial, issue to the developer a public report authorizing the sale or lease in this state of the time-share interests within the time-share plan submitted pursuant to this chapter. The report shall contain the data obtained in accordance with Section 11234.
(b)
The commissioner may deny the issuance of the public report based on the applicant’s failure to comply with any of the provisions of this chapter or the regulations of the commissioner pertaining thereto, including, but not limited to, all of the following:
(1)
The sale or lease would constitute misrepresentation to, or deceit or fraud of, the purchasers or lessees.
(2)
Inability to deliver title or other interest contracted for.
(3)
Inability to demonstrate, in accordance with this chapter, that adequate financial arrangements have been made for all offsite improvements included in the offering.
(4)
Inability to demonstrate, in accordance with this chapter, that adequate financial
arrangements have been made for any community, recreational, or other facilities included in the offering.
(5)
Failure to make a showing that the parcels can be used for the purpose for which they are offered.
(6)
Failure to provide in the contract or other writing the use or uses for which the parcels are offered, together with any covenants or conditions relative thereto.
(c)
Any developer objecting to the denial of a public report may, within 30 days after receipt of the order of denial, file a written request for a hearing. The commissioner shall hold the hearing within 20 days thereafter unless the party requesting the hearing requests a postponement. If the hearing is not held within 20 days after request for a hearing is received plus the period of the postponement or if a proposed decision is not rendered
within 45 days after submission and an order adopting or rejecting the proposed decision is not issued within 15 days thereafter, the order of denial shall be rescinded and a public report issued.