SB2454 HD1

Report Title:

Out-of-State Sales of Time Share Interests

Description:

Exempts a time share plan, containing time share interests or units that are part of a currently registered Hawaii time share plan, which is offered for sale outside the U.S. from the time sharing law, provided that certain conditions are met. (SB2454 HD1)

THE SENATE	S.B. NO.	2454
TWENTY-THIRD LEGISLATURE, 2006		S.D. 1
STATE OF HAWAII		H.D. 1

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. (a) 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 in the United States, but outside of Hawaii of time share [~~interest~~] interests in a time share plan which 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.

(b) Notwithstanding subsection (a), a foreign time share plan shall be exempt from the requirements of this chapter; provided that the developer shall not subject the time share interests or units located in Hawaii to blanket liens; and provided further that the developer shall either file the foreign 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 foreign time share plan;

(2) The name and address of the developer and seller of

the foreign time share plan, if any;

(3) The name and registration number of the time share plan located in Hawaii; and

(4) The duration of the foreign time share plan.

(c) Time share interests that are part of a time share plan exempt under subsection (b) shall not be resold in the United States.

(d) The contract to purchase an interest in a foreign time share plan shall contain 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 STATES OF AMERICA IS EXEMPT FROM REGULATION UNDER HAWAII LAW, AND ANY SUCH PURCHASE IS NOT PROTECTED BY THE LAWS OF THE STATE OF HAWAII. NO RESALE OF INTERESTS IN THIS TIME SHARE PLAN MAY BE MADE BY ANY PERSON WITHIN THE JURISDICTIONAL LIMITS OF THE UNITED STATES OF AMERICA. 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."

(e) For purposes of this section:

"Foreign time share plan" means a time share plan, containing time share interests or units that are part of a currently registered Hawaii time share plan, which is promoted and offered for sale solely outside the jurisdictional limits of the United States of America."

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, 2050.