STAND. COM. REP. NO. 1800

Honolulu, Hawaii

RE:    S.C.R. No. 75

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.C.R. No. 75, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE AUDITOR TO PERFORM A SUNRISE ANALYSIS OF THE REGULATION OF DESTINATION CLUBS AND THOSE WHO MARKET THEM,"

begs leave to report as follows:

The purpose of this Concurrent Resolution is to request the Auditor to perform a sunrise analysis of the regulation of destination clubs and those who market them.

     Your Committee received comments in support of this Concurrent Resolution from the Department of Commerce and Consumer Affairs and the Destination Club Association.

     Your Committee finds that destination clubs are a growing part of the travel and tourism industry in Hawaii.  Destination clubs offer members access to the club's portfolio of luxury properties in locations around the world, including Hawaii.  Currently, there are no specific regulatory statutes governing destination clubs in Hawaii. 

     Your Committee finds that in 2006, the Department of Commerce and Consumer Affairs convened a working group that included representatives of the destination club and timeshare industries and the Department, to discuss the creation of a regulatory framework for destination clubs.  Further, during the 2007 Regular Session of the Legislature, S.B. No. 697 was introduced, to regulate destination clubs and the marketing of destination clubs.  This Concurrent Resolution requests the Auditor to conduct a sunrise review in compliance with section 26H-6, Hawaii Revised Statutes, to determine whether regulation of destination clubs and those who market them is necessary.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 75, S.D. 1, and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair