STAND. COM. REP. NO. 3196

Honolulu, Hawaii

RE: H.B. No. 1946

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Economic Development and Tourism, to which was referred H.B. No. 1946, H.D. 2, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish that applications for registration renewal for time share developers, acquisition agents, plan managers, and exchange agents required by section 514E‑10, Hawaii Revised Statutes, shall be deemed approved thirty days after receipt of all required documents; and

(2) Establish that any amendment to a required time share plan registration shall be deemed approved by operation of law on the sixtieth day after the amendment is submitted to the Director of Commerce and Consumer Affairs, unless the Director issues a deficiency letter within that period.

Your Committee received testimony in support of this measure from Marriott Vacations Worldwide Corporation; Hilton Grand Vacations; American Resort Development Association-Hawaii; Travel + Leisure Co.; Kohala Coast Resort Association; 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, acquisitions agents, and exchange agents often experience significant delays in the approval of their required biennial time share registration renewal filings. These delays cause consumers to receive out-of-date disclosure statements, hindering consumer transparency, and create regulatory uncertainty for businesses in the time share industry, which accounts for approximately fifteen percent of the State's visitor lodging inventory and supports thousands of local jobs. This measure improves regulatory efficiency in a key sector of the State while maintaining strong consumer protections and transparency.

Your Committee acknowledges the concern raised in testimony by the Department of Commerce and Consumer Affairs that it needs thirty days to review the documents submitted for registration renewal applications required under section 514E-10, Hawaii Revised Statutes, and identify deficiencies, and that absent an exception when a deficiency notice is issued within this period, incomplete applications could be deemed approved by operation of law. Accordingly, amendments to this measure are necessary to address this concern.

Your Committee has amended this measure by:

(1) Specifying that applications for renewal of a registration required by section 514E-10, Hawaii Revised Statutes, shall be deemed approved thirty days after receipt of all required documents if the Director of Commerce and Consumer Affairs does not issue a deficiency letter detailing the specific deficiencies of the filing before the end of the thirtieth day;

(2) Amending section 1 to reflect its amended purpose; and

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

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

Respectfully submitted on behalf of the members of the Committee on Economic Development and Tourism,

________________________________

LYNN DECOITE, Chair