STAND. COM. REP. NO. 821

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 Finance, 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 of exempt buildings and structures to provide proof of withholding taxes and proof of workers' compensation insurance of contractors they retain; and

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

The Chamber of Commerce Hawaii, HI Good Neighbor, and an individual submitted testimony in support of this measure. The Hawai‘i Association of REALTORS submitted testimony in opposition of this measure. The Department of Taxation, Department of Commerce and Consumer Affairs, Contractors License Board, and Subcontractors Association of Hawaii offered comments.

As affirmed by the record of votes of the members of your Committee on Finance 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 pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair