SB2026

SECTION 1. Chapter 514E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§514E- Existing owner purchase exemptions. (a) Notwithstanding any other provision of this chapter, the offer or sale, in this State, of an additional interest in a time share plan to an existing purchaser in the same time share plan shall not be subject to the provisions of this chapter if:

(1) The purchaser has the right to cancel the purchase contract within seven days after the execution of the contract to purchase;

(2) The purchaser is provided the time share disclosure documents the purchaser would have received if the purchase had occurred in the state or jurisdiction where they initially purchased the time share interest; and

(3) The developer or an affiliated entity of the developer has a time share plan currently registered with the department; provided that the registration was originally approved or amended within seven years from the date of the offer or disposition, and the registration has been neither terminated nor withdrawn.

(b) Notwithstanding any other provision of this chapter, the offer or sale by a developer, in this State, of a time share interest in a time share plan located outside of Hawaii to an individual who currently owns a time share interest that was purchased from that developer, or from an affiliated entity of that developer, shall be exempt from the registration requirement and this chapter provided that:

(1) The developer shall provide the purchaser with all time share disclosure documents required to be provided to purchasers as if the offer occurred in the state or jurisdiction where the time share plan is located;

(2) The contract for purchase shall include a notice that is the same as or similar to the rescission notice required pursuant to section 514E-9(a)(7) and the rescission period shall be at least seven days;

(3) The offer shall be subject to sections 514E-11 and 514E-11.1;

(4) The developer shall provide the purchaser, in writing, either in the disclosure documents or otherwise, all of the following:

(A) A description of the type of time share plan offered, including the duration and operation of the time share plan;

(B) A description of the existing or proposed accommodations and amenities in the time share plan;

(D) If applicable, copies of the declaration, association articles of incorporation, association bylaws and association rules and regulations; and

(E) The current annual budget for the time share plan; and

(5) The developer or an affiliated entity has a time share plan currently registered with the department; provided that the registration was originally approved or amended within seven years from the date of the offer or disposition, and the registration has been neither terminated nor withdrawn.

"Affiliated entity" means a person or other entity under common ownership with the developer.

"Common ownership" means at least fifty per cent ownership interest."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2026
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII