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 S.B. No. 174 entitled:

begs leave to report as follows:

The purpose of this measure is to avoid disclosure and rescission under Hawaii law where a time share interest in a Hawaii project is offered for sale in another jurisdiction.

Your Committee received testimony in favor of this measure from Pahio Resorts, Inc., Dwyer, Imanaka, Schraff, Kudo, Meyer & Fujimoto, and the Bay Club Ownership Resort, Inc. Your Committee received testimony opposing this measure from the Department of Commerce and Consumer Affairs.

Your Committee finds that because of the nature of time sharing sales whereby projects in a particular state may be offered for sale in another state, this measure seeks to clarify that the sales laws of the jurisdiction in which the sale occurs will apply, but that Hawaii's sales and rescission laws would not apply. To the extent that a particular potential buyer does not travel to Hawaii, and to the extent that no sales activity occurs in Hawaii, it seems inappropriate that Hawaii's law should apply.

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 S.B. No. 174 and recommends that it pass Third Reading.