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. 176 entitled:

begs leave to report as follows:

The purpose of this measure is to repeal the requirement that time share agents wear identification badges while off premises and engaged in acquisition or sales activities.

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 the badge requirement was adopted in 1997, as part of a larger effort to regulate the time share industry in Hawaii. Your Committee has heard that since the passage of the original legislation, the time share industry has worked to improve its interactions with prospective purchasers, and continues to cooperate with the Department of Commerce and Consumer Affairs regarding complaints about time share agents.

Your Committee also heard that the time share industry is the only comparable industry whose agents are required to wear badges, and that the badges create a negative perception and hinder the agents in their ability to conduct their job.

Your Committee supports the intent of this measure and encourages the continued cooperation between the industry and the department to resolve any complaints regarding the activities of time share agents.

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. 176 and recommends that it pass Second Reading and be referred to the Committee on Commerce, Consumer Protection and Housing.