HI HB271

Provides short-term product buyers in Hawaii with a seven-day right to cancel contracts and receive a full refund of all amounts paid, with cancellation notice required to be sent by mail or facsimile to the seller.

Requires short-term product sellers to disclose in conspicuous type whether reservations are subject to availability, specific blackout dates if applicable, and that transient accommodations tax may apply to occupancy in Hawaii.

Allows developers to obtain release of 90 percent of time share purchasers' funds from escrow prior to closing after the seven-day cancellation period expires, provided the developer deposits a surety bond or irrevocable letter of credit with the escrow agent and director.

Establishes that surety bonds must be issued by a non-affiliated bonding company authorized in Hawaii and can be declared in default by the director or escrow agent if the developer fails to refund deposits as required by law.

Requires all time share sales contracts to specify a closing deadline not exceeding 24 months from contract signing, allowing purchasers to cancel if closing does not occur by the deadline, with provisions effective until July 1, 2020.