HI HB271

Provides seven-day cancellation rights for short-term product buyers in Hawaii with full refund of all consideration paid, with cancellation notice required to be sent by fax or mail within the seven-day period.

Requires short-term product sellers to disclose in conspicuous type information about reservation availability, blackout dates, and transient accommodations tax obligations to buyers.

Allows developers to release 90 percent of time share purchasers' funds from escrow prior to closing if the developer posts a surety bond or letter of credit that guarantees refunds to purchasers.

Establishes that short-term products do not constitute time share interests and defines short-term products as contracts providing one-time use allotments usable within three years with credit or application toward future time share purchases.

Requires sales contracts for time share interests to specify a closing deadline not exceeding 24 months (unless director approval obtained), with purchasers able to cancel if closing does not occur by the deadline.