Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 2832 entitled:

begs leave to report as follows:

The purpose of this bill is to permit the Director of the Department of Commerce and Consumer Affairs (DCCA) by rule, to:

The American Resort Development Association of Hawaii and a concerned individual submitted testimony in support of this measure. DCCA supported this bill and suggested an amendment.

Your Committee finds that this bill would remedy an oversight in the law, which provides that an agent's employees may invite others to attend a time share presentation, yet makes no mention of independent contractors being able to do the same. Independent contractors are essentially employees of the agent and DCCA does not differentiate between the two for purposes of time share presentation invitations. This bill would revise the law to reflect this.

Under the law, the employees of an agent who is not a licensed broker, do not need a real estate license to invite others to time share presentations. This bill would clarify the law in cases where the agent is a licensed broker, by providing that this agent's employees also do not need a real estate license to invite others to time share presentations.

Furthermore, the law identifies the places from which invitations for time share presentations may be extended. These include a real estate "site office." The law no longer requires that site offices be registered and does not define what constitutes a site office. Instead, the administrative rules make reference to a "real estate place of business." Accordingly, this bill removes references to "site office." For further consistency with the rules, your Committee has amended this bill to replace all references to "real estate office" with "real estate place of business."

Your Committee has amended this bill by making technical, nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2832, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2832, H.D. 1, and be placed on the calendar for Third Reading.