Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Tourism & Culture, to which was referred H.B. No. 3238 entitled:

begs leave to report as follows:

The purpose of this bill is to facilitate the sale of registered Hawaii time share plans in foreign countries by exempting the time share plan from the State's time share regulations if any of its time share units are sold in a foreign country.

Marriott International, Inc., and RCI supported this bill. ARDA-Hawaii supported the intent of this bill. The Professional and Vocational Licensing Division of the Department of Commerce and Consumer Affairs submitted comments.

Your Committee notes that concerns were raised regarding the lack of minimal consumer protection safeguards contained in this bill.

In light of these concerns, your Committee has amended this bill by deleting its contents and inserting provisions that provide greater transparency to DCCA for the benefit of Hawaii's consumers. This bill, as amended, exempts time share plans containing accommodations or facilities located in Hawaii that are offered for sale outside the United States from the requirements of the time sharing plans law; provided that the developer of the time share plan either:

As affirmed by the record of votes of the members of your Committee on Tourism & Culture that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 3238, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 3238, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.