STAND. COM. REP. NO.495

Honolulu, Hawaii

, 2003

RE: S.B. No. 828

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Tourism, to which was referred S.B. No. 828 entitled:

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

begs leave to report as follows:

The purpose of this measure is to specify requirements for the size and display of signs advertising time shares from a booth, and to clearly exclude the payment of sums for a tourist activity or to offer a product or service as an inducement to attend a time share promotion as a prohibited practice.

Testimony in support of this measure was received from the American Resort Development Association, SVO Pacific, Inc., and Pahio Resorts. Comments were received from the Department of Commerce and Consumer Affairs.

This measure is intended to clarify existing law with respect to common and current practices in the selling of time shares. Your Committee finds that the sign requirements in time share booths should be simplified from the current minute detail requirements to a reasonable requirement of size and wording. Your Committee further finds that time share developers often make offers of products or services to prospective purchasers as an inducement to attend a time sharing presentation. While this practice is not prohibited, this measure would clarify the current law with regard to conflicting interpretations.

Your Committee has amended this measure by:

(1) Deleting reference to "interval ownership" and "vacation ownership" as used to sign requirements, as being superfluous with the amendment using "time share" and "time sharing";

(2) With regard to the sign requirements, clarifying the exemption for a booth that is located within a hotel owned or operated by the developer or affiliate of the time share plan; and

(3) Making technical, nonsubstantive amendments for clarity and style.

As affirmed by the record of votes of the members of your Committee on Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 828, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 828, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection and Housing.

Respectfully submitted on behalf of the members of the Committee on Tourism,

____________________________

DONNA MERCADO KIM, Chair