Report Title:
Time Share Units; Out-of-State Sales
Description:
Exempts time share plans, containing accommodations or facilities located in Hawaii, that are offered for sale outside the U.S. from Hawaii's time sharing plans law, provided that the developer of the time share plan meets certain filing requirements. (HB3238 HD1)
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
3238 |
|
TWENTY-THIRD LEGISLATURE, 2006 |
H.D. 1 |
|
|
STATE OF HAWAII |
||
|
|
A BILL FOR AN ACT
RELATING TO OUT-OF-STATE SALES OF TIME SHARE INTERESTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 514E-30, Hawaii Revised Statutes, is amended to read as follows:
"§514E-30 Scope of chapter. This chapter applies to the offer and sale in Hawaii of time share interests in time share units located in Hawaii. If time share units are located outside of Hawaii, but any offer or sale is made within the State, this chapter, except for sections 514E-3, 514E-4, 514E-5, 514E-6, 514E-7, and 514E-14, shall apply. As to the offer and sale outside of Hawaii of time share [interest] interests in a time share plan [which] that includes time share units located in Hawaii, this chapter, except for sections 514E-2.5, 514E-8, 514E-9, 514E-10(b) and (c), 514E-11, and 514E-11.1 shall apply.
Notwithstanding the foregoing, with respect to a time share plan containing accommodations or facilities located in Hawaii which is offered for sale outside the jurisdictional limits of the United States, such offer or sale shall be exempt from the requirements of this chapter; provided that the developer shall either file the time share plan with the director for approval pursuant to this chapter or pay an exemption registration fee of $100 and file the following minimum information pertaining to the time share plan with the director for approval:
(1) The name and address of the time share plan;
(2) The name and address of the developer and seller, if any;
(3) The location and a brief description of the accommodations and facilities, if any, that are located in Hawaii;
(4) The number of time share interests and duration to be offered;
(5) The term of the time share plan;
(6) A copy of the time share instrument relating to the management and operation of accommodations and facilities, if any, that are located in Hawaii;
(7) A copy of the budget required by section 514E-9;
(8) A copy of the management agreement and any other contracts regarding management or operation of the accommodations and facilities, if any, that are located in Hawaii, and which have terms in excess of one year; and
(9) A copy of the provision of the contract to purchase an interest in a time share plan to be utilized in offering the time share plan containing the following disclosure in conspicuous type immediately above the space provided for the purchaser's signature:
'The offering of this time share plan outside the jurisdictional limits of the United State of America is exempt from regulation under Hawaii law, and any such purchase is not protected by the laws of the State of Hawaii. The management and operation of any accommodations or facilities located in Hawaii, however, is subject to Hawaii law and may give rise to an enforcement action regardless of where the offer was made.'"
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.