STAND. COM. REP. NO. 3208
RE: S.B. No. 2273
Honorable Ronald D. Kouchi
President of the Senate
Thirtieth State Legislature
Regular Session of 2020
State of Hawaii
Your Committee on Judiciary, to which was referred S.B. No. 2273, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO TIME SHARING,"
begs leave to report as follows:
(1) Require developers to provide a notice to purchasers of time share interests of any material change or pertinent change in the information in the current disclosure statement; and
(2) Provide purchasers of time share interests rescission rights for material changes made to the disclosure statement prior to closing.
Your Committee received testimony in support of this measure from the Kohala Coast Resort Association, American Resort Development Association–Hawaii, Marriott Vacations Worldwide Corporation, and two individuals. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs' Professional and Vocational Licensing Division.
Your Committee finds that existing law provides purchasers of condominiums with the right to rescind when material changes have been made to the condominium public reports after a sales contract becomes binding; however, there are no laws that provide purchasers of time share interests with rescission rights under similar circumstances. This measure grants similar protections enjoyed by condominium purchasers to time share purchasers.
Your Committee has amended this measure by:
(1) Specifying that in all cases other than new sales, the notice of change shall be provided by certified mail; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2273, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2273, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Judiciary,
KARL RHOADS, Chair