REPORT TITLE: 
Contractors; exemptions
DESCRIPTION:
Amends section 444-2 to increase the contractors' exemption from
$1,000 to $3,500.

 
HB HMIA 2000-13
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2866
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     A BILL FOR AN ACT

RELATING TO CONTRACTORS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:


 1      SECTION 1.  Section 444-2, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§444-2 Exemptions.  This chapter shall not apply to:
 
 4      (1)  Officers and employees of the United States, the State,
 
 5           or any county while in the performance of their
 
 6           governmental duties;
 
 7      (2)  Any person acting as a receiver, trustee in bankruptcy,
 
 8           personal representative, or any other person acting
 
 9           under any order or authorization of any court;
 
10      (3)  A person who sells or installs any finished products,
 
11           materials, or articles of merchandise that are not
 
12           actually fabricated into and do not become a permanent
 
13           fixed part of the structure, or to the construction,
 
14           alteration, improvement, or repair of personal
 
15           property;
 
16      (4)  Any project or operation for which the aggregate
 
17           contract price for labor, materials, taxes, and all
 
18           other items is not more than [$1,000] $3,500.  This
 
19           exemption shall not apply in any case where a building
 

 
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 1           permit is required regardless of the aggregate contract
 
 2           price, nor where the undertaking is only a part of a
 
 3           larger or major project or operation, whether
 
 4           undertaken by the same or a different contractor or in
 
 5           which a division of the project or operation is made in
 
 6           contracts of amounts not more than [$1,000] $3,500 for
 
 7           the purpose of evading this chapter or otherwise;
 
 8      (5)  A registered architect or professional engineer acting
 
 9           solely in the person's professional capacity;
 
10      (6)  Any person who engages in the activities regulated in
 
11           this chapter as an employee with wages as the person's
 
12           sole compensation;
 
13      (7)  Owners or lessees of property who build or improve
 
14           residential, farm, industrial, or commercial buildings
 
15           or structures on property for their own use, or for use
 
16           by their grandparents, parents, siblings, or children
 
17           and who do not offer the buildings or structures for
 
18           sale or lease; provided that this exemption shall not
 
19           apply to electrical or plumbing work that must be
 
20           performed only by persons or entities licensed under
 
21           this chapter, or to the owner or lessee of the property
 
22           if the owner or lessee is licensed under chapter 448E.
 
23           In all actions brought under this paragraph, proof of
 

 
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 1           the sale or lease, or offering for sale or lease, of
 
 2           the structure not more than one year after completion
 
 3           is prima facie evidence that the construction or
 
 4           improvement of the structure was undertaken for the
 
 5           purpose of sale or lease; provided that this provision
 
 6           shall not apply to residential properties sold or
 
 7           leased to employees of the owner or lessee; provided
 
 8           further that in order to qualify for this exemption the
 
 9           owner or lessee must register for the exemptions as
 
10           provided in section 444-9.1.  Any owner or lessee of
 
11           property found to have violated this paragraph shall
 
12           not be permitted to engage in any activities pursuant
 
13           to this paragraph or to register under section 444-9.1
 
14           for a period of three years.  There is a presumption
 
15           that an owner or lessee has violated this section, when
 
16           the owner or lessee obtains an exemption from the
 
17           licensing requirements of section 444-9 more than once
 
18           in two years;
 
19      (8)  Any joint venture if all members thereof hold licenses
 
20           issued under this chapter;
 
21      (9)  Any project or operation where it is determined by the
 
22           board that less than ten persons are qualified to
 
23           perform the work in question and that the work does not
 

 
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 1           pose a potential danger to public health, safety, and
 
 2           welfare; or
 
 3     (10)  Any public works project that requires additional
 
 4           qualifications beyond those established by the
 
 5           licensing law and which is deemed necessary and in the
 
 6           public interest by the contracting agency."
 
 7      SECTION 2.  Statutory material to be repealed is bracketed.
 
 8 New statutory material is underscored.
 
 9      SECTION 3.  This Act shall take effect upon its approval.
 
10 
 
11 
 
12                         INTRODUCED BY:___________________________
 

 
HB HMIA 2000-13