Report Title:
Out-of-State Sales of Time Share Interests
Description:
Provides that chapter 514E, relating to time shares, does not apply to a sale outside the United States of an interest in a time share unit in Hawaii if the unit is part of a time share plan that was previously registered in Hawaii. (SD1)
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THE SENATE |
S.B. NO. |
2454 |
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TWENTY-THIRD LEGISLATURE, 2006 |
S.D. 1 |
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STATE OF HAWAII |
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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), with respect to a time share plan containing accommodations or facilities that are located in a currently registered Hawaii time share plan, which is promoted and offered for sale only 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 not subject the Hawaii units to blanket liens and provided further 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 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. 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."
(c) Time share interests that are part of a time share plan exempt under subsection (b) shall not be resold in the United States."
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.