STAND. COM. REP. NO.  1102-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 2481

      S.D. 1

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 2481, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to modernize Hawaii's time share law by:

     (1)  Eliminating the requirement that a manager of a foreign time share plan register in Hawaii as a time share plan manager;

     (2)  Requiring that information regarding the non-registration of the manager of a foreign time share plan be included in the disclosure statement for the offering of a foreign time share plan;

     (3)  Specifying the types of nonprofit or not-for-profit entities that an association of time share plan owners may be organized as; and

     (4)  Making housekeeping amendments.

Starwood Vacation Ownership, Wyndham Vacation Ownership, and American Resort Development Association Hawaii testified in support of this measure.  The Department of Commerce and Consumer Affairs Professional and Vocational Licensing Division provided comments.

Your Committee has amended this measure by making technical amendments to the purpose section of the measure for clarification purposes.  Specifically, purpose section references to "foreign time share plans" have been replaced with references to "time share plans located outside of Hawaii."

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2481, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2481, S.D. 1, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ANGUS L.K. McKELVEY, Chair