STAND. COM. REP. NO. 631

Honolulu, Hawaii

, 2005

RE: S.B. No. 107

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 107 entitled:

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

begs leave to report as follows:

The purpose of this measure is to establish definitions for the terms "master development" and "person", and to clarify the definitions of "blanket lien", and "project" in the time share law.

The Department of Commerce and Consumer Affairs, Starwood Vacation Ownership, Marriott International, Inc., American Resort Development Association, Cendant Timeshare Resort Group, and Pahio Resorts testified in support of this measure.

This measure establishes additional definitions and amends existing definitions in the time share law to reflect industry practices. More specifically, this measure:

(1) Defines "master development" to mean a real estate development that consists of more than one project, including but not limited to a planned community association with one or more sub-associations;

(2) Establishes a standard definition of "person" that includes an individual and business entities in their various forms;

(3) Clarifies the definition of "blanket lien" to include a master lease, and to exclude taxes and assessments not yet due and payable, a lien for common expenses on an individual time share unit, a lease or conveyance document that demises a single condominium apartment, and trustee's fees not yet due and payable; and

(4) Redefines "project" to include an individual condominium project, two or more contiguous condominium projects that operate as a single project, an individual cooperative housing project, an individual subdivision of single-family homes, and an individual subdivision of townhomes, and to exclude a master development.

Your Committee finds that this measure will facilitate the development and administration of time share projects in the State.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 107 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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

____________________________

RON MENOR, Chair