STAND. COM. REP. NO.42
Honolulu, Hawaii
, 2001
RE: H.B. No. 23
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Tourism and Culture, to which was referred H.B. No. 23 entitled:
"A BILL FOR AN ACT RELATING TO DECEPTIVE TRADE PRACTICES FOR TIME SHARE PLANS,"
begs leave to report as follows:
The purpose of this bill is to give the Director of Commerce and Consumer Affairs (Director) greater latitude in determining appropriate disclosures for time share promotional literature and other printed or written material by:
(1) Deleting the explicit disclosure content requirements for time share promotional literature and other printed or written material;
(2) Specifying that the seven-day right of rescission disclosure be located above the signature line of the sales contract or, if no sales contract is used, above the signature line of any agreement with the purchaser; and
(3) Giving the Director authority to adopt rules under the Administrative Procedure Law regarding disclosure for time share promotional literature and other written materials.
Supporting testimony was received from the Department of Commerce and Consumer Affairs (DCCA), the American Resort Development Association (ARDA), ARDA of Hawaii, Hilton Grand Vacations Club, and an employee of Resort Condominium International.
Your Committee has amended this bill by:
(1) Giving greater latitude to DCCA regarding time share disclosure requirements by specifying that it is an unfair or deceptive practice to fail to disclose in time share promotional material that the product or activity involves time share;
(2) Authorizing the Director to prescribe the nature of the disclosure by rule; and
(3) Making technical, nonsubstantive amendments for purposes of clarity and style.
As affirmed by the record of votes of the members of your Committee on Tourism and Culture that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 23, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 23, H.D. 1, and be referred to the Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs.
Respectfully submitted on behalf of the members of the Committee on Tourism and Culture,
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____________________________ JERRY CHANG, Chair |