REQUESTING THE DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS TO STUDY BARRIERS TO EXITING TIMESHARE OWNERSHIP IN HAWAII AND TO RECOMMEND CONSUMER PROTECTION MEASURES.

HR154

HOUSE OF REPRESENTATIVES

H.R. NO.

154

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

HOUSE RESOLUTION

REQUESTING THE DEPARTMENT OF COMMERCE AND CONSUMER
AFFAIRS TO STUDY BARRIERS TO EXITING TIMESHARE OWNERSHIP IN HAWAII AND TO
RECOMMEND CONSUMER PROTECTION MEASURES
.

WHEREAS, timeshare ownership
has long been marketed to residents and visitors as a means of securing
recurring vacation accommodations in Hawaii and is a significant segment of
Hawaii�s tourism and real estate economy; and

WHEREAS, many timeshare
purchasers enter into agreements that require ongoing maintenance fees and
contractual obligations that may continue indefinitely; and

WHEREAS, numerous timeshare
owners report significant difficulty exiting or transferring their timeshare
interests, even when they no longer wish to maintain ownership or are unable to
continue paying associated fees; and

WHEREAS, some owners seeking
to exit timeshare contracts have turned to third-party timeshare exit companies
that advertise assistance with timeshare resale or cancellation but charge
substantial upfront fees and frequently fail to successfully transfer or
terminate the ownership interest; and

WHEREAS, the Federal Trade
Commission and numerous state attorneys general have investigated and taken
enforcement actions against these third-party exit companies for deceptive and
unfair trade practices, including misrepresenting their ability to cancel
timeshare contracts and collecting fees while providing no meaningful services;
and

WHEREAS, Hawaii residents have
been harmed by such predatory practices, becoming trapped in a cycle of
financial loss� first by perpetual timeshare obligations they cannot exit, and
second by third party fees that yield no relief; and

WHEREAS, these circumstances
may result in financial hardship for consumers, particularly kupuna,
fixed-income households, and families facing unexpected life changes; and

WHEREAS, Hawaii law currently
provides a minimum rescission period during which a timeshare purchaser may
cancel a contract, but that period may be insufficient to protect consumers who
do not fully understand the long-term financial implications of their purchase
at the time of signing; and

WHEREAS, improving
transparency and consumer protections related to timeshare ownership, resale,
and exit options may help prevent financial harm and ensure that consumers are
fully informed before entering into long-term contractual obligations; and

WHEREAS, other states have
enacted timeshare-specific consumer protection measures, including requirements
that developers accept the return of timeshare interests under certain
conditions and that third-party exit service providers meet licensing and bonding
standards; and

WHEREAS, a comprehensive study
of timeshare exit practices, the regulation of timeshare exit companies, the
adequacy of current disclosure and rescission requirements, and the experiences
of Hawaii timeshare owners would provide the Legislature with the information
necessary to consider meaningful consumer protection legislation; and

WHEREAS, the Department of
Commerce and Consumer Affairs is responsible for protecting consumers and
regulating various professional and business activities in the State; now,
therefore,

����
BE IT
RESOLVED by the House of Representatives of the Thirty-third Legislature of the
State of Hawaii, Regular Session of 2026, that the Department of Commerce and
Consumer Affairs is requested to conduct a study on barriers to exiting
timeshare ownership in Hawai
ʻ
i
and to recommend consumer protection measures; and

����
BE IT FURTHER
RESOLVED that the study is requested to examine:

����
(1)
�
Consumer complaints related to timeshare
ownership, resale, and exit services in Hawaii;

����
(2)
�
Common contractual provisions that may make it
difficult for owners to terminate or transfer timeshare interests;

����
(3)
�
The business practices of companies that offer
services to assist owners in exiting timeshare contracts, including fee
structures and success rates;

����
(4)
�
Existing consumer protections under Hawaii law
and potential gaps in oversight or enforcement; and

����
(5)
�
Best practices adopted by other states to
protect timeshare owners and regulate the timeshare resale and exit assistance
industry; and

����
BE IT FURTHER
RESOLVED that the Department of Commerce and Consumer Affairs is requested to
submit a report of its findings and recommendations, including any proposed
legislation, to the Legislature no later than twenty days prior to the
convening of the Regular Session of 2027; and

����
BE IT FURTHER
RESOLVED that certified copies of this Resolution be transmitted to the
Director of the Department of Commerce and Consumer Affairs and the Executive
Director of the Office of Consumer Protection.

OFFERED BY:

_____________________________

Report Title:
�

Timeshare;
Exit; Barriers; Study; DCCA; Consumer Protection