Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 2454 entitled:

begs leave to report as follows:

The purpose of this measure is to provide that chapter 514E, Hawaii Revised Statutes, 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.

Testimony in support of this measure was submitted by Marriott International, Inc.; RCI, a subsidiary of the Cendant Vacation Network Group; and ARDA-Hawaii. Comments were submitted by the Department of Commerce and Consumer Affairs.

Your Committee finds that there is a similar measure moving through the House of Representatives at this time as House Bill No. 3238. Your Committee also notes that the Department of Commerce and Consumer Affairs, Marriott International, Inc., and RCI are in agreement that the parties affected by this measure would benefit from continued discussions.

Your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2454, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2454, S.D. 1, and be placed on the calendar for Third Reading.