STAND. COM. REP. NO.717
Honolulu, Hawaii
, 2001
RE: H.B. No. 22
H.D. 2
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. 22, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO TIME SHARING PLANS,"
begs leave to report as follows:
The purpose of this bill is to exclude employees or contractors of licensed real estate brokers, and of time share acquisition agents who are not licensed real estate brokers, from time share plan registration. This bill does so by amending the definition of "acquisition agent" in the time share law to exclude these employees or contractors, who accordingly no longer have to register as acquisition agents under the time share law.
The American Resort Development Association (ARDA), ARDA of Hawaii, Hilton Grand Vacations Club, and Pahio Resorts submitted testimony in support of the bill. The Department of Commerce and Consumer Affairs (DCCA) testified in support of the bill with suggested amendments.
Your Committee finds that this measure will remove unnecessary regulation without compromising consumer protection. The employees and contractors of time share acquisition agents and sales agents excluded from registration under this measure are known as "outside public contacts" (OPCs). The sole function of an OPC is to invite consumers to attend a time share presentation. The very few time share complaints filed each year compared to the total number of time share registrations does not justify continued registration of OPCs. In addition, OPCs will continue to be regulated by their employing acquisition agent or sales agents, who are responsible for the actions of their OPCs, and who are subject to DCCA disciplinary action.
Your Committee has adopted DCCA's suggested amendments, which:
(1) Include a clearer exclusion of OPCs from DCCA registration; and
(2) Conform the time share sales agent and acquisition agent licensing provisions more closely to actual DCCA administration of the time share program, including amendments that:
(A) Reflect that acquisition agents must maintain a bond under section 514E-10(b) and thus, like real estate brokers, may operate a booth, site office, or other place of business from which they invite others to attend time share sales presentations; and
(B) Prohibit an acquisition or sales agent whose real estate broker's license has been forfeited, suspended, revoked, terminated, or placed on inactive status, from acting as an acquisition agent or sales agent under the time share law.
Your Committee has made additional technical, nonsubstantive amendments for purposes of style, clarity, and consistency.
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. 22, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 22, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,
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____________________________ KENNETH T. HIRAKI, Chair |
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