Report Title:

Time Sharing

 

Description:

Redefines "acquisition agent" to exclude employees or contractors of licensed real estate brokers, and employees or contractors of acquisition agents who are not licensed real estate brokers. Stipulates that acquisition agents and sales agents are responsible for the actions of their employees or contractors. (HB22 HD1)

 

HOUSE OF REPRESENTATIVES

H.B. NO.

22

TWENTY-FIRST LEGISLATURE, 2001

H.D. 1

STATE OF HAWAII

  

 

A BILL FOR AN ACT

 

RELATING TO TIME SHARING PLANS.

 

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

SECTION 1. Section 514E-1, Hawaii Revised Statutes, is amended by amending the definition of "acquisition agent" to read:

""Acquisition agent" means any person, other than a developer or sales agent, who, for compensation, solicits or encourages others to attend a time share sales presentation or to contact a time share sales agent or developer[.]; unless those acts are performed as an employee or contractor of:

(1) A real estate broker who is licensed under chapter 467; or

(2) An acquisition agent who is not licensed as a real estate broker under chapter 467."

SECTION 2. Section 514E-2.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The director shall adopt rules and regulations limiting the activities of and governing sales agents and acquisition agents, whether or not such persons are also licensed under chapter 467. Such regulations:

(1) May authorize an acquisition agent who is not licensed under chapter 467 to invite others to attend a time share sales presentation or an entertainment function offered in connection therewith so long as such invitation is made from a principal place of business, branch office, site office or booth operated in accordance with state and county laws by a person licensed under chapter 467 as a real estate broker;

(2) May authorize an acquisition agent who is not licensed under chapter 467 to extend invitations from a booth without requiring the physical presence of a person licensed under chapter 467, provided that the acquisition agent remains in the booth at all times;

(3) Shall provide that any acquisition agent not licensed under chapter 467 shall be employed, either directly or as an independent contractor, by a sales agent or acquisition agent who in either case is licensed as a real estate broker under chapter 467;

(4) Shall provide that a real estate broker who employs, either directly or as an independent contractor, an acquisition agent who is not licensed under chapter 467 shall be responsible for the acts of such acquisition agent;

(5) Shall provide that acquisition agents and sales agents under this chapter shall be responsible for the actions of their employees and contractors;

[(5)] (6) Shall establish rules and conditions strictly regulating and, if legally permissible prohibiting telephone solicitation of guests in hotels; and

[(6)] (7) Shall establish such other rules as the director deems to be in the public interest."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.