Report Title:

Time Shares; "Developer" Defined

Description:

Redefines "developer" in the time share law to exclude a person owning not more than 12 time share interests who did not create the plan and offers it for resale, and an association employing a third party to sell its time share interests acquired for non-payment of assessments.

HOUSE OF REPRESENTATIVES

H.B. NO.

391

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to time share PLANS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 514E-1, Hawaii Revised Statutes, is amended by amending the definition of "developer" to read as follows:

""Developer" means any person [, partnership, or corporation which] that creates a time sharing plan or is in the business of selling time share units. "Developer" does not include:

(1) A person who owns at any one time not more than twelve time share interests in a particular time share plan if that person did not create the time share plan and offers it for resale; and

(2) An association not otherwise a developer, that engages a third party to offer on its behalf a time share interest in the time share plan for which it serves as an association; provided that this paragraph shall apply only to time share interests that are:

(A) Sold to persons who acquired them for their own use and occupancy; and

(B) Acquired by the association for non-payment of assessments, whether by foreclosure, conveyance in lieu of foreclosure, cancellation of membership agreement, or otherwise."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2005.

INTRODUCED BY:

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