Report Title:
Time Shares; Definition of "Developer" Clarified
Description:
Clarifies the definition of "developer" for time shares by excluding certain entities. (SB1141 HD1)
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THE SENATE |
S.B. NO. |
1141 |
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TWENTY-THIRD LEGISLATURE, 2005 |
S.D. 1 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
relating to time share PLANS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 514E-1, Hawaii Revised Statutes, is amended by amending the definition of "developer" to read as follows:
""Developer" means any person [, partnership, or corporation which] that creates a time sharing plan or is in the business of selling time share units. "Developer" does not include:
(1) A person who has acquired one or more time share interests for the person's own use and occupancy and later offers the time share interest for resale; provided that a rebuttable presumption shall exist that an owner who has acquired more than twelve time share interests did not acquire them for the owner's own use and occupancy;
(2) An association not otherwise a developer, that offers for sale, through its plan manager or a third party, time share interests transferred to the association through foreclosure, conveyance in lieu of foreclosure, cancellation for non-payment of assessments, or gratuitous transfer; and
(3) A licensed real estate broker who owns at any one time not more than twelve time share interests in a particular time share plan and later offers the time share interests for resale if:
(A) The time share interests are in a registered or previously registered time share plan and were not acquired from a person otherwise meeting the definition of a developer who, during the six- month period prior to conveying the time share interest to the licensed real estate broker, actively engaged in offering or selling such time share interest through advertising, promotional, or marketing efforts, whether within or outside the time share project itself, excluding public auctions pursuant to a foreclosure sale;
(B) The resale of the time share interests are subject to all laws and rules applicable to resale of time share interests, including chapter 16-106, Hawaii administrative rules, and any disclosure and registration requirements applicable to a resale agent, but excluding any registration provision requiring confirmation that the time share interests were purchased for the person's own occupancy; and
(C) While the time share interests are owned by the licensed real estate broker, the licensed real estate broker has not used or offered the time share interests as part of another time share plan, nor have the time share interests been submitted or incorporated into another time share plan, that would otherwise be subject to this chapter."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2005.