STAND. COM. REP. NO. 212

Honolulu, Hawaii

, 2005

RE: S.B. No. 971

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Tourism, to which was referred S.B. No. 971 entitled:

"A BILL FOR AN ACT RELATING TO TIME SHARE,"

begs leave to report as follows:

The purpose of this measure is to narrow gift and prize disclosure requirements for time shares.

In addition, this measure would allow time share booth signage to contain art and design elements; exclude booths in the time share project, or in a hotel owned or operated by the time share developer or affiliate from signage requirements; remove signs and banners from certain disclosure requirements; and exclude money paid for an activity, product, or service from prohibition on developer receipt of sums from prospective buyers.

Testimony in support of this measure was submitted by the Department of Commerce and Consumer Affairs, Marriott International, Inc., Pahio Resorts, American Resort Development Association-Hawaii, and Starwood Vacation Ownership. Testimony in opposition to this measure was submitted by Cendant Timeshare Resort Group.

Your Committee finds that hotel guests need to receive adequate disclosures regarding time share solicitations. Your Committee believes this measure will alert hotel guests of time share options when they are not owned or operated by the hotel owner or the hotel's affiliate contractor, yet allow those marketing time shares more freedom in their promotions.

Your Committee has adopted the amendment suggested by the Department of Commerce and Consumer Affairs to clarify language and provide for the types of signs or banners that are prohibited.

As affirmed by the record of votes of the members of your Committee on Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 971, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 971, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection, and Housing.

Respectfully submitted on behalf of the members of the Committee on Tourism,

____________________________

DONNA MERCADO KIM, Chair