STAND. COM. REP. NO. 1092

Honolulu, Hawaii

, 2005

RE: S.B. No. 971

S.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Tourism & Culture, to which was referred S.B. No. 971, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TIME SHARE,"

begs leave to report as follows:

The purpose of this bill is to improve the regulation of time shares by, among other things:

(1) Clarifying that required written disclosures for prospective time share purchasers who are offered a prize or gift as part of a time share advertising or promotion plan need only contain terms and conditions attached to the prize or gift that are material;

(2) Deleting exchange privileges and limitations from the list of items required in the written disclosures;

(3) Clarifying that the prohibition on receiving money or property from a purchaser or prospective purchaser prior to signing a time share purchase contract does not apply to money paid for a tourist activity or for any other product or service offered to induce attendance at a time share sales presentation;

(4) Amending existing signage requirements for time share booths by requiring signs to:

(A) Contain the words "time share" or "time sharing" in letters that are at least three, rather than three and one half, inches tall and in a color that contrasts with the background; and

(B) Be posted in only one location on or in the booth;

(5) Prohibiting the posting of anything near the required time share sign that would indicate that a time share booth is not being used for time share solicitation purposes;

(6) Exempting from the required signage requirements, time share booths located within a timeshare project subject to a time share plan; and

(7) Establishing that the violation of failure to disclose that a product or activity involves time share does not apply to a sign or banner.

The Department of Commerce and Consumer Affairs, PAHIO Resorts, Inc., and the American Resort Development Association -Hawaii Chapter supported this bill.

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 S.B. No. 971, S.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Consumer Protection & Commerce.

 

Respectfully submitted on behalf of the members of the Committee on Tourism & Culture,

 

____________________________

JERRY L. CHANG, Chair