Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 1141, S.D. 1, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to remove unnecessary time share regulation by clarifying the definition of "developer," currently defined as a person that creates a time sharing plan or is in the business of selling time share units, to exclude:

Your Committee received testimony in support of this measure from American Resort Development Association Hawaii Chapter. The Acting Time Share Administrator of the Department of Commerce and Consumer Affairs supported the intent of this measure.

Your Committee finds that the law requiring the registration of a time share "developer," while intended for the original developer of a time share resort, applies to anyone who sells a time share interest. For example, the term would include a time share association that acquires time share intervals through foreclosures or cancellation of memberships from current owners, and real estate brokers who acquire intervals from current owners and then sell them to other persons.

Your Committee finds that the regulatory concerns raised by developer time share sales are not raised by the types of transactions excluded by this bill. Your Committee agrees that a narrowing of the applicability of developer registration requirements is necessary to avoid discouraging or preventing these legitimate time share sales transactions from occurring.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1141, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1141, S.D. 1, H.D. 2.