Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 1552, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to exclude time share plans from the definition of "planned community" and to exempt from the usury law time shares that have a specified cap on interest.

Testimony in support of this measure was received from the Department of Commerce and Consumer Affairs, American Resort Development Association, and Pahio Resorts, Inc.

This measure would exempt time share plans from the definition of "planned community" in the same manner that current law exempts condominiums and cooperative housing. The exemption from the interest and usury law is comparable to that of a first mortgage or lien on real property.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1552, H.D. 1, and recommends that it pass Third Reading.