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 S.B. No. 174 entitled:

begs leave to report as follows:

The purpose of this measure is to exempt time share units located in Hawaii, but offered for sale outside of Hawaii, from being required to provide Hawaii's seven-day rescission period or a copy of Hawaii's disclosure statement.

Your Committee received testimony in support of this measure from American Resort Development Association of Hawaii, Hilton Grand Vacations Company, Marriott International, Inc., and The Bay Club Ownership Resort, Inc. The Department of Commerce and Consumer Affairs submitted testimony in opposition.

Your Committee finds that under current law, both Hawaii's rescission and disclosure requirements, as well as those of the jurisdiction where the sale of the time share unit takes place, may apply to the sale. This duplication can lead to conflicting requirements and confusion on the part of the purchasers.

Your Committee has heard that Hawaii's seven-day rescission period and disclosure requirements are more stringent than those of some jurisdictions and that the intent of the Hawaii law is to provide purchasers with sufficient time and information to make informed decisions.

Your Committee is supportive of the intent of these consumer protection measures. However, your Committee believes that it would be appropriate for the rescission and disclosure requirements adopted by other jurisdictions to apply to sales in those jurisdictions.

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 S.B. No. 174 and recommends that it pass Second Reading and be referred to the Committee on Commerce, Consumer Protection and Housing.