STAND. COM. REP. NO. 1045-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1946

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1946, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO REGISTRATION OF TIME SHARES,"

begs leave to report as follows:

The purpose of this measure is to provide, for time share registration applications, that:

(1) Application renewals shall be deemed approved upon delivery;

(2) Certain amendments to time share plans are to be approved by operation of law on the forty-fifth day after the amendment is submitted unless the Director of Commerce and Consumer Affairs issues a deficiency letter; and

(3) The Director is to provide a letter, upon request, confirming that an amendment has been approved, whether by action of the Director or by operation of law.

Your Committee received testimony in support of this measure from the Kohala Coast Resort Association; Travel + Leisure Co.; Hilton Grand Vacations; American Resort Development Association – Hawaii; Marriott Vacations Worldwide Corporation; and one individual. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs.

Your Committee finds that resort developers, plan managers, and exchange agents are required to submit time share registration renewal filings on a biennial basis, yet applicants frequently experience significant delays, often waiting years for the required renewals to be approved. The delay in approving routine renewals and amendments results in consumers receiving Hawaii disclosure statements that do not contain the most current information. This measure will allow for greater administrative efficiency without diminishing consumer protections.

Your Committee has amended this measure by:

(1) Clarifying that applications for renewal shall be deemed approved thirty days after receipt of all required documents, rather than upon delivery of the application;

(2) Deleting language requiring an application for renewal to include amendments to program documents and disclosure statements;

(3) Extending the period for the automatic approval of applications for amendments, other than amendments to add or remove time share inventory, if a deficiency letter is not issued from forty-five days to sixty days; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1946, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1946, H.D. 2.

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

____________________________

SCOT Z. MATAYOSHI, Chair