REPORT TITLE:
Time Shares


DESCRIPTION:
Exempts private clubs from time share laws.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2577
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO TIME SHARES. 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Private clubs that provide lodging for its
 
 2 members are subject to the State's time sharing laws due to over-
 
 3 inclusive definitions within the law.  The problem is that
 
 4 private clubs are completely different when compared to time
 
 5 shares.  Private clubs may offer a wide range of services of
 
 6 which lodging may only be a small part whereas the sole purpose
 
 7 of a time share is to offer lodging.
 
 8      The purpose of this Act is to distinguish private clubs from
 
 9 time shares and exclude private clubs from Hawaii's time sharing
 
10 laws.
 
11      SECTION 2.  Section 514E-1, Hawaii Revised Statutes, is
 
12 amended by adding a new definition to be appropriately inserted
 
13 and to read as follows:
 
14      ""Private club" means any association or organization owned
 
15 and operated by its members that is organized not solely for the
 
16 purpose of offering lodging."
 
17      SECTION 3.  Section 514E-30, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "�514E-30  Scope of chapter[.]; exemptions.  (a)  This
 

 
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                                     S.B. NO.           2577
                                                        
                                                        

 
 1 chapter applies to the offer and sale in Hawaii of time share
 
 2 interests in time share units located in Hawaii.  If time share
 
 3 units are located outside of Hawaii, but any offer or sale is
 
 4 made within the State, this chapter, except for sections 514E-3,
 
 5 514E-4, 514E-5, 514E-6, 514E-7, and 514E-14, shall apply.  As to
 
 6 the offer and sale outside of Hawaii of time share interest in a
 
 7 time share plan which includes time share units located in
 
 8 Hawaii, this chapter, except for sections 514E-2.5, 514E-10(b)
 
 9 and (c), 514E-11, and 514E-11.1 shall apply.
 
10      (b)  This chapter shall not apply to any private club."
 
11      SECTION 4.  Statutory material to be repealed is bracketed.
 
12 New statutory material is underscored.
 
13      SECTION 5.  This Act shall take effect upon its approval.
 
14 
 
15                       INTRODUCED BY:  ___________________________