STAND. COM. REP. NO. 521

Honolulu, Hawaii

RE:    S.B. No. 205

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 205, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO OWNER-BUILDERS,"

begs leave to report as follows:

     The purpose of this measure is to clarify the exemption from licensure by the contractors licensing board for owner-builders by increasing the period prohibiting sale, limiting the number of exemptions granted to an owner-builder, and clarifying violation provisions.

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs and the Subcontractors Association of Hawaii.  Testimony in opposition to this measure was received from Hawaii Association of Realtors.  Testimony with comments on this measure was received from the Contractors Licensing Board.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that this measure will enhance enforcement of laws prohibiting unlicensed construction and contracting activity.  Your Committee finds that property owners should be allowed to perform work on their own property.  However, your Committee believes that this measure is necessary to deter owner-builders or subcontractors from avoiding safety, payroll, and tax responsibilities by abusing the owner-builder permit process.

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 205, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

____________________________

ROSALYN H. BAKER, Chair