STAND. COM. REP. NO. 2960

Honolulu, Hawaii

RE: S.B. No. 2049

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2049 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Amend the information required to be in a time share disclosure statement, under certain circumstances;

(2) Amend the information required to be on a developer registration renewal application;

(3) Expand the information that developers are not required to include on a developer registration renewal application;

(4) Limit the copies of documents developers are required to submit in a developer registration renewal application;

(5) Require developers to submit copies of supplementary plan documents of the time share plan; and

(6) Allow for submission of certain documents in electronic form.

Your Committee received testimony in support of this measure from Marriot Vacations Worldwide Corporation. Your Committee received testimony in opposition to this measure from UNITE HERE Local 5 Hawaii. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and the American Resort Development Association Hawai‘i.

Your Committee finds that time share developers are required to submit disclosure statements to the Department of Commerce and Consumer Affairs, some of which can exceed one hundred pages for multi-site time share plans. Changes to existing requirements of what should be included are needed, as certain developers are continually adding hundreds of individual intervals into the time share plan, and documentation for each interval can be voluminous. This measure incorporates consensus language between stakeholders and the Department of Commerce and Consumer Affairs and will help save filing space, while also allowing the Department of Commerce and Consumer Affairs to see that the developer is properly recording the required documents and granting appropriate discretion to require copies of any supplementary documents it determines necessary for its review.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2049, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2049, S.D. 1, and be placed on the calendar for Third Reading.

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

________________________________

ROSALYN H. BAKER, Chair