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. 178 entitled:

begs leave to report as follows:

The purpose of this measure is to exempt time share projects from the supplementary public report, disclosure, and delivery of public report requirements applicable to condominium sales.

Your Committee received testimony in support of this measure from the Real Estate Commission, American Resort Development Association of Hawaii, Hilton Grand Vacations Club, Marriott International, Inc., and The Bay Club Ownership Resort, Inc.

Your Committee finds that current law requires duplicative disclosures for those time share projects that are also condominiums. This is confusing for both buyers and sellers, and the proposed measure would require only one disclosure statement for time share projects.

Your Committee has heard that the proposed language is unclear, however, with regard to other requirements under the law for condominium property regimes. Your Committee believes these concerns to be well taken. Your Committee has amended this measure to add language to section 514A-31, Hawaii Revised Statutes, requiring the developer of a time share plan located in a condominium project to register with the real estate commission, and to exempt the developer from the condominium public report and disclosure abstract requirements, if the time share is duly registered and meets disclosure requirements under Chapter 514E, Hawaii Revised Statutes. This will make it clear that the time share law prevails when both time share and condominium units are for sale in the same project.

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. 178, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 178, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection and Housing.