Bill Text: HI SB779 | 2024 | Regular Session | Introduced
Bill Title: Relating To Time Sharing Plans.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2023-12-11 - Carried over to 2024 Regular Session. [SB779 Detail]
Download: Hawaii-2024-SB779-Introduced.html
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THE SENATE |
S.B. NO. |
779 |
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THIRTY-SECOND LEGISLATURE, 2023 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to time sharing PLANS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
""Primary plan documents"
means the constituent documents of the time share plan, including any time
share declaration; any trust agreement; articles of incorporation and bylaws of
the association, if the association is a corporation; or the operating
agreement or similar organization document, if the association is a limited
liability company or other entity; the rules for reserving the use of the time
share units; and the rules and regulations governing the occupancy of the time
share units. "Primary plan
documents" does not include supplementary plan documents.
"Supplementary plan documents" means any declaration of annexation, active property declaration, notice of access, notice of conveyance, notice of activation, deed conveying property to the trustee of a time share plan or to the time share owners association, or other instruments submitting or committing property to the time share plan or removing property from the time share plan. To the extent that any such documents modify the terms and provisions of the time share plan as established in the existing primary plan documents, including but not limited to documents that establish a new class or category of time share interest that has rights that differ from existing time share interests in the time share plan, the documents constitute primary plan documents and shall not constitute supplementary plan documents."
SECTION 2. Section 514E-9, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Any offering of a time sharing plan to the public shall disclose:
(1) The name and address of the developer and of the time share units;
(2) The name and address of the plan manager, if any, and a description of the plan manager's responsibilities and authority;
(3) A description of the time share units, including the developer's schedule for completion of all buildings, units, and amenities and dates of availability;
(4) If the time share plan is located in a
condominium property regime, a description of the [project and] project,
and, if the purchaser will own an undivided interest in a fee or leasehold condominium
unit, a brief description of any pertinent provisions of the project
instruments;
(5) Any restraints on the transfer of the buyer's time share interest in the time share units or plan;
(6) Whether the time share plan is a time share ownership plan or a time share use plan, along with a description of the rights and responsibilities under said plan;
(7) A statement that there is a seven-calendar-day period of mutual rescission;
(8) A statement that pursuant to section 514E-11.3, every sale or transfer, made in violation of this chapter is voidable at the election of the purchaser;
(9) Notice of any material
liens, title defects or encumbrances on or affecting the title to the units
or plan; provided that the primary plan documents and supplementary plan
documents shall be listed; and provided further that the director may require
additional disclosures. For all other
liens, title defects or encumbrances, in lieu of listing these in the
disclosure statement, a reference may be made to a website by way of a link or
otherwise, where the items may be listed and thereby disclosed, and made available
for review;
(10) Notice of any pending or anticipated suits that are material to the time share units or plan, of which the developer has, or should have, knowledge;
(11) The total financial obligation of the purchaser, which shall consist of:
(A) A statement that the purchaser is obligated to pay the initial price stated in the purchaser's purchase agreement; and
(B) A list or description of any additional charges to which the purchaser may be subject;
(12) An estimate of the dues, maintenance fees, real property taxes, and similar periodic expenses, and the method or formula by which they are derived and apportioned;
(13) The disclosure statement under subsection (d), if applicable; and
(14) Other disclosures required by the director, as provided by rules adopted pursuant to chapter 91."
SECTION 3. Section 514E-10.5, Hawaii Revised Statutes, is amended to read as follows:
"§514E-10.5 Consultant review of
developer filing. The director may
contract with private consultants in connection with the review of the filing
required of time share developers pursuant to section 514E-10(a) and [[](e)[]]. The cost of contracting private consultants
shall be borne by the developer; provided that the consultant review required
under this section shall not affect the scope of the review under section
514E-27 that the director may request for filings that encompass alternative
arrangements for purchaser protection.
The consultant shall be asked to thoroughly review the filing for the
purpose of examining its compliance with the requirements of this chapter and
any rule adopted by the director, including the documentation and other provided
materials[.]; provided that in lieu of review of copies of all
encumbrances on title, the consultant shall accept a certification from the
developer that the time share interest being sold is free and clear of blanket
liens or other material encumbrances that may materially and adversely impact
utilization of the property by a purchaser, or if that is not the case,
identifying the blanket liens or other material encumbrances and either
specifying how those encumbrances will be addressed or what the impact of the
encumbrances may have on the purchaser.
Upon completing the review, the consultant shall provide a written
analysis of the filing and an opinion of the nature and extent to which it
complies with this chapter and adopted rules.
The director may adopt rules pursuant to chapter 91 to further delineate
the duties of the consultant in undertaking the review and analysis required
pursuant to this section."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Time Sharing Plans; Disclosure Statements; Encumbrances
Description:
Amends the information required to be in a time share disclosure statement, under certain circumstances. Requires developers to submit copies of supplementary plan documents of the time share plan. Allows for submission of certain documents in electronic form.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
