STAND. COM. REP. NO1301

Honolulu, Hawaii

, 2001

RE: S.B. No. 174

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 174 entitled:

"A BILL FOR AN ACT RELATING TO TIME SHARING PLANS,"

begs leave to report as follows:

The purpose of this bill is to exempt the sales of Hawaii time share units that take place outside of Hawaii from the Hawaii time share laws relating to cancellation rights and disclosure statements.

The American Resort Development Association of Hawaii, Hilton Grand Vacations Club, Pahio Resorts, Interval International, and the Lawai Beach Resort, submitted testimony in support of this bill. The Department of Commerce and Consumer Affairs, Professional and Vocational Licensing Division, submitted testimony in opposition to this measure.

Your Committee finds that because of the nature of time sharing sales, whereby, projects in a particular state may be offered for sale in another state, this measure seeks to clarify that the sales laws of the jurisdiction in which the sales occur will apply with certain exceptions. To the extent that a particular potential buyer does not travel to Hawaii, and to the extent that no sales activity occurs in Hawaii, it seems inappropriate that Hawaii's law should apply.

 

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 174 and recommends that it pass Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,

____________________________

KENNETH T. HIRAKI, Chair