Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 18 entitled:

begs leave to report as follows:

The purpose of this bill is to exempt time shares located in Hawaii, but offered for sale outside of Hawaii, from the seven-day cancellation period and disclosure statement requirements under Hawaii's time share law. This bill thus allows the disclosure and recission requirements of the jurisdiction in which the time share sale occurs, to apply to the out-of-state sale.

Testimony in support of the bill was received from Hilton Grand Vacations Club, Pahio Resorts, the American Resort Development Association, and an attorney. The Professional and Vocational Licensing Division of the Department of Commerce and Consumer Affairs submitted testimony in opposition to this bill.

Your Committee finds that because of the nature of time share sales, time share projects in one state may be offered for sale in another state. By exempting time share sales conducted in another state from Hawaii's disclosure and recission requirements, this measure will streamline Hawaii's time share law and eliminate the possibility that consumers will be confronted with conflicting, confusing, and duplicative disclosure documents and recission rights.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 18 and recommends that it pass Third Reading.