STAND. COM. REP. NO. 696

Honolulu, Hawaii

, 2019

RE: H.B. No. 1154

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Labor & Public Employment, to which was referred H.B. No. 1154, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE OWNER-BUILDER EXEMPTION,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require owner-builders contracted to work on exempt buildings and structures to provide proof of withholding taxes and proof of workers' compensation insurance; and

(2) Increase the fines for failure to comply with the requirements of the owner-builder exemption law.

The Department of Commerce and Consumer Affairs' Regulated Industries Complaints Office, The Chamber of Commerce Hawaii, HI Good Neighbor, Building Industry Association of Hawaii, and an individual testified in support of this measure. Hawai‘i Association of REALTORS opposed this measure. The Department of Taxation, Contractors License Board, and Subcontractors Association of Hawaii provided comments on this measure.

As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1154, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

AARON LING JOHANSON, Chair