STAND. COM. REP. NO. 1460

Honolulu, Hawaii

, 2005

RE: H.B. No. 835

H.D. 2

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred H.B. No. 835, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TIME SHARING PLANS,"

begs leave to report as follows:

The purpose of this measure is to amend the time share laws relating to gift offer disclosures, acceptance of payment from a purchaser prior to the sale of a time share interest, and signage.

The Department of Commerce and Consumer Affairs, Pahio Resorts, Inc., and American Resort Development Association-Hawaii testified in support of this measure.

This measure clarifies and modifies the laws relating to prohibited and deceptive time share practices, as follows:

(1) Currently, the law requires a time share sales or acquisition agent who offers a gift or prize to promote a time share project to provide the prospective purchaser with a written disclosure of all terms and conditions attached to the gift and of certain details regarding the time share project. Under this measure, only material gift and prize terms and conditions would require disclosure, and exchange privileges and limitations related to the project would not require disclosure;

(2) The law currently prohibits the acceptance of money or other consideration from a purchaser prior to sale. This measure clarifies that the prohibition does not apply to payment received from a purchaser to participate in a tourist or promotional activity;

(3) Current signage requirements prohibit artwork and establish other restrictions related to letter size and styling and use of colors. This measure instead requires that signage contain the words "time share" or "time sharing" in three inch–tall letters that contrast in color from the background;

(4) Presently, time share signs are required to be permanently affixed to each side of the time share booth. This measure would permit signage to be posted on or in the time share booth, but bans any posting, upon, adjacent to, or in the sign that indicates the booth is not being used for time share solicitation purposes. Additionally, this measure provides that the signage requirements do not apply to a booth located within a time share project; and

(5) The time share law deems it a deceptive trade practice to fail to disclose in promotional and other written materials that the product or activity involves a time share. This measure clarifies that the disclosure requirement does not apply to signs and banners.

Your Committee finds that this measure provides adequate disclosures to tourists, hotel guests, and other prospective time share purchasers, while providing time share marketers with greater flexibility to promote their products.

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 H.B. No. 835, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Housing,

____________________________

RON MENOR, Chair