STAND. COM. REP. NO.1135-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2890

S.D. 2

H.D. 1




Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii


Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 2890, S.D. 2, H.D. 1, entitled:


begs leave to report as follows:

The purpose of this bill is to revitalize the Waikiki visitor industry by allowing hotels located on Waikiki property that has been subsequently rezoned for apartment use, to convert to time share ownership. Specifically, this bill:

(1) Allows time share units and plans on property in a county with a population in excess of 500,000 where an existing hotel is a valid nonconforming use under county ordinance; provided that the hotel has at least sixty units and forty percent are available for sale as residential apartments; and

(2) Exempts time share units from the provisions relating to the ownership of parking stalls under section 514A-14.5, Hawaii Revised Statutes.

The American Resort Development Association testified in support of this measure. The City and County of Honolulu testified in opposition to this measure. The Department of Commerce and Consumer Affairs submitted comments.

Your Committee finds that occupancy at time share resorts is consistently high, even during periods of crisis such as we have recently experienced. Your Committee finds that allowing Waikiki hotels on property zoned for apartment use to convert to time shares will strengthen and add a measure of stability to the State's economy.

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. 2890, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

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