STAND. COM. REP. NO. 670

Honolulu, Hawaii

, 2005

RE: S.B. No. 1141

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Tourism and Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 1141 entitled:

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

beg leave to report as follows:

The purpose of this measure is to redefine "developer" in the time sharing plan law to exclude a person owning not more than twelve 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 to owner-occupants.

Testimony in support of this measure was submitted by one individual. Testimony in opposition to this measure were submitted by Cendant Timeshare Resort Group, Inc. and Fairfield Resorts, Inc. Comments on this measure were also submitted by the Department of Commerce and Consumer Affairs and the American Resort Development Association's Hawaii chapter.

Your Committees find that individuals and associations that own time share units in Hawaii sometimes have units that they cannot sell, do not want, or cannot afford, and subsequently sell these units to real estate brokers. Currently, a person is prohibited from purchasing a time share unit from an owner and re-selling it unless the person occupies the unit or registers with the State pursuant to section 237D-4. This measure will exempt a person who owns not more than twelve interests in a time share plan from the definition of developer, and those associations that take back their own inventory to be treated as re-sales and not require the same registration that is required of developers.

Your Committee amended this measure by altering the effective date to July 1, 2010 to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Tourism and Commerce, Consumer Protection, and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1141, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1141, S.D. 1, and be placed on the calendar for Third Reading.

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

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RON MENOR, Chair

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DONNA MERCADO KIM, Chair