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THE SENATE |
S.C.R. NO. |
75 |
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TWENTY-FOURTH LEGISLATURE, 2007 |
S.D. 1 |
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STATE OF HAWAII |
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SENATE CONCURRENT
RESOLUTION
REQUESTING THE AUDITOR TO PERFORM A SUNRISE ANALYSIS OF THE REGULATION OF DESTINATION CLUBS AND THOSE WHO MARKET THEM.
WHEREAS, over the past few years, a new luxury vacation option, "destination clubs", has emerged, offering members a unique way to gain access to a private club's portfolio of fully furnished, luxury residences with an array of five-star services and amenities in locations around the world; and
WHEREAS, the destination club industry currently has more than a dozen clubs in operation; and
WHEREAS, the destination club industry provides numerous economic benefits for the State, producing thousands of member visits and infusing millions of dollars into the Hawaii economy each year; and
WHEREAS, there are fundamental differences between the unique business model and associated consumer protection issues of the destination club industry and others in the hospitality sector; and
WHEREAS, today there are no specific regulatory statutes governing destination clubs and those who market them; and
WHEREAS, since early 2006, destination clubs have been working with and receiving input from regulators, legal experts, and others in the hospitality industry in developing a regulatory scheme for destination clubs and those who market them; and
WHEREAS, a group of destination clubs and those who market them, whose members comprise approximately ninety per cent of the destination club industry, have actively participated with others in recent working session meetings convened by the Department of Commerce and Consumer Affairs in an effort to draft proposed legislation to regulate destination clubs and those who market them; and
WHEREAS, following the conclusion of the working session meetings that spanned over five months, the participating destination clubs have drafted proposed legislation to regulate destination clubs and those who market them for consideration by the Legislature; and
WHEREAS, section 26H-6, Hawaii Revised Statutes, first requires that any new regulatory measure governing a previously unregulated industry be referred to the Auditor for analysis; and
WHEREAS, the referral must be made by Concurrent Resolution that identifies the specific legislative bill to be analyzed; and
WHEREAS, S.B. No. 697, introduced during the Regular Session of 2007, proposes to regulate destination clubs and those who market them; now, therefore,
BE IT RESOLVED by the Senate of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2007, the House of Representatives concurring, that the Auditor is respectfully requested to conduct a sunrise review regarding the regulation of destination clubs and those who market them as proposed under S.B. No. 697; and
BE IT FURTHER RESOLVED that the Auditor is authorized to contact parties who were involved in initial meetings regarding regulation of destination clubs, including ARDA-Hawaii and the Department of Commerce and Consumer Affairs; and
BE IT FURTHER RESOLVED that the Auditor is requested to submit findings and recommendations not later than twenty days prior to the convening of the Regular Session of 2008; and
BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Auditor.
Destination clubs