Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Tourism and Intergovernmental Affairs, to which was referred H.B. No. 21 entitled:

begs leave to report as follows:

The purpose of this measure is to repeal the requirement that time share agents wear identification badges.

Testimony in support of this measure was received from American Resort Development Association, All Island Timeshare Resales, The Bay Club, Hilton Grand Vacations Club, and Pahio Resorts, Inc. The Department of Commerce and Consumer Affairs, Kauai Sea Tours, South Pacific Kayaks & Outfitters, and one individual submitted testimony in opposition.

Your Committee finds that the badge requirement for time share agents and their employees was enacted in 1997, in response to a growing number of complaints regarding overly aggressive time share marketing tactics, and the adverse impact of such activities on tourism.

Your Committee has heard that in the intervening years, the time share industry has worked to curb abuses by employees selling time share plans, and that self regulation is an adequate means of control. Your Committee has also heard that members of other industries are not required to wear identification badges, and this requirement stigmatizes the time share industry and the wearer.

While your Committee is supportive of the industry's self-regulatory measures, aggressive time share marketing remains an issue, particularly in areas with high numbers of visitors. Solicitation often includes the offer of incentives such as a luau and other meals, and it may be difficult to determine what is being sold.

Your Committee finds that the use of badges, or name tags, is not uncommon in other sales industries, and the use of badges can be a simple, consumer-friendly way for the person being solicited to identify the seller and make a decision on the activity.

Your Committee has amended this measure by retaining and amending the badge requirement to:

As affirmed by the record of votes of the members of your Committee on Tourism and Intergovernmental Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 21, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 21, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection and Housing.