STAND. COM. REP. NO.3137

Honolulu, Hawaii

, 2002

RE: H.B. No. 2832

H.D. 1

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 2832, H.D. 1, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to clarify the requirements for the provision of condominium public reports and time share disclosure statements to purchasers, and for time share sales presentation solicitations.

The American Resort Development Association and an individual testified in support of this measure. The Time Share Administrator testified in support of the amendments relating to section 514E-2.5, Hawaii Revised Statutes.

This measure is intended to clarify ambiguities that resulted from prior amendments to the condominium and time share laws. This measure clarifies that with regards to the sale of a time share interest that takes place in the State, the purchaser must be provided with the time share disclosure statement, but not the condominium public report, and that neither document need be provided if the offer or sale of time share interest is made outside of the State.

This measure also clarifies that acquisition agents and, their employees, and independent contractors working for acquisition agents, may solicit individuals to attend a time share sales presentation, without the necessity of a real estate license. The invitations may be made from a principal place of business, branch office, other real estate place of business, or booth, and a real estate licensee need not be present on the premises.

Your Committee has amended this measure by adding the language of S.B. 2890, S.D. 2. This additional language authorizes the operation of time sharing units on property located in counties with a population of over 500,000, on which the operation of an existing hotel is a valid non-conforming use under county ordinance, where the hotel has at least sixty units, and where forty per cent of the units upon completion of sale, are available for sale or rental as residential apartments.

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 H.B. No. 2832, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2832, H.D. 1, S.D. 2.

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

____________________________

RON MENOR, Chair