REPORT TITLE:
Time Sharing Plans


DESCRIPTION:
Prohibits using promotional devices, prizes, and gifts to solicit
sales.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3089
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO TIME SHARING PLANS.


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

 1      SECTION 1.  Section 514E-11.1, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§514E-11.1  Deceptive trade practices.  It shall constitute
 
 4 an unfair or deceptive practice, within the meaning of chapter
 
 5 480, for any developer, acquisition agent, or sales agent of time
 
 6 share units or plans to:
 
 7      (1)  Use any promotional device, including but not limited
 
 8           to entertainment, prizes, gifts, food and drinks,
 
 9           games, or other inducements [without fully disclosing
 
10           that the device is being used] for the purpose of
 
11           soliciting sales of time share interests;
 
12      (2)  Offer a prospective purchaser a prize or gift, in
 
13           writing[,] or orally, as part of any time share
 
14           advertising or sales promotion plan, if in order to
 
15           claim the prize or gift, the prospective purchaser must
 
16           attend a sales presentation [unless the written
 
17           disclosure described in section 514E-11(3) is furnished
 
18           to the prospective purchaser at the time the
 
19           prospective purchaser is notified of the prize or gift;
 
20           provided that the written disclosure is written or
 

 
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                                     S.B. NO.           
                                                        
                                                        

 
 1           printed in a size equal to at least ten-point bold
 
 2           type];
 
 3      (3)  Fail to inform each purchaser orally and in writing, at
 
 4           the time the purchaser signs the contract of the
 
 5           purchaser's seven-day right to cancel or void the
 
 6           contract to purchase a time share interest in a time
 
 7           share plan or unit;
 
 8      (4)  Misrepresent in any manner the purchaser's right to
 
 9           cancel or void any contract to purchase a time share
 
10           interest in a time share plan or unit;
 
11      (5)  Include in any contract or document provisions
 
12           purporting to waive any right or benefit to which the
 
13           purchaser is entitled under this chapter;
 
14      (6)  Fail or refuse to honor any valid notice of
 
15           cancellation of the contract by the purchaser, and
 
16           within fifteen business days after receipt of such
 
17           notice, fail or refuse to refund all payments made
 
18           under the contract or sale; or fail or refuse to cancel
 
19           and return any negotiable instrument executed by the
 
20           buyer in connection with the contract or sale and take
 
21           any appropriate action to terminate promptly any
 
22           mortgage, lien, or other security interest created in
 
23           connection with the transaction;
 

 
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                                     S.B. NO.           
                                                        
                                                        

 
 1      (7)  Fail to include on promotional literature and other
 
 2           printed or written material the caption "THIS IS A TIME
 
 3           SHARING SALES PRESENTATION" (in capital letters of
 
 4           24-point bold type, or type as large as the largest
 
 5           printing or writing elsewhere in the material), under
 
 6           which must be printed (in type of the same size as the
 
 7           caption described above) the following:  "Any purchaser
 
 8           has, under the law, a seven-day right of rescission of
 
 9           any time sharing sales contract";
 
10      (8)  Misrepresent the amount of time or period of time the
 
11           time share unit will be available to any purchaser;
 
12      (9)  Misrepresent or deceptively represent the location or
 
13           locations of the offered time share unit;
 
14     (10)  Misrepresent the size, nature, extent, qualities, or
 
15           characteristics of the offered time share units;
 
16     (11)  Misrepresent the nature or extent of any services
 
17           incident to the time share unit;
 
18     (12)  Misrepresent the conditions under which a purchaser may
 
19           exchange the purchaser's occupancy rights to a time
 
20           share unit in one location for occupancy rights to a
 
21           time share unit in another location; or
 
22     (13)  [Fail to orally disclose during the initial oral
 
23           contact with a prospective purchaser that any] Offer
 

 
Page 4                                                     3089
                                     S.B. NO.           
                                                        
                                                        

 
 1           any promised entertainment, prizes, gifts, food and
 
 2           drinks, games, or other inducements that are being
 
 3           offered for the purpose of soliciting sales of time
 
 4           share interests in time share units or plans."
 
 5      SECTION 2.  Statutory material to be repealed is bracketed.
 
 6 New statutory material is underscored.
 
 7      SECTION 3.  This Act shall take effect upon its approval.
 
 8 
 
 9                       INTRODUCED BY:  ___________________________