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. 180, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to provide the Department of Commerce and Consumer Affairs (DCCA) with flexibility in determining appropriate disclosures for promotional literature and other printed material.

Your Committee received testimony in favor of this measure from the DCCA, Pahio Resorts, Dwyer, Imanaka, Schraff, Kudo, Meyer & Fujimoto, the Bay Club Ownership Resort, Inc., and All Islands Timeshare Resales.

Your Committee finds that as the timeshare marketing industry has matured through the years, it has shed the stigma of the so-called dirty tricks of the past. Today, timeshare marketers are proud to announce that they are in fact timeshare marketers and include information proclaiming such in their advertising and promotional material. Consumers who talk to timeshare marketers are aware of the timeshare affiliation. As such, it is unnecessary, extremely expensive, and burdensome to include additional, redundant disclosures on all advertising materials. No consumer purchases a timeshare interest without being made aware of exactly what they are purchasing and their rescission rights.

Your Committee adopted the recommendation of the DCCA to clarify the nature of the disclosure by adding that the statement be conspicuous.

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. 180, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 180, S.D. 2.