STAND. COM. REP. NO. 31

Honolulu, Hawaii

, 2021

RE: H.B. No. 1218

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred H.B. No. 1218 entitled:

"A BILL FOR AN ACT RELATING TO HOME-BASED BUSINESSES,"

begs leave to report as follows:

The purpose of this measure is to prohibit planned community associations and condominium associations from banning home-based businesses, with certain exceptions.

Your Committee received testimony in support of this measure from one individual. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Department of Human Services.

Your Committee finds that due to the challenging economic climate in the State, many local businesses are struggling. Expanding home-based business opportunities to individuals living in planned communities and condominiums may encourage more small business activity in the State by providing these businesses an opportunity to reduce expenses and take advantage of certain tax deductions.

Your Committee recognizes certain considerations related to zoning ordinances and permits required to operate a business, including appropriate business registration requirements, and believes that these considerations merit further discussion by your Committee on Consumer Protection & Commerce.

Your Committee has amended this measure by changing the effective date to July 1, 2050, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1218, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1218, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Economic Development,

____________________________

SEAN QUINLAN, Chair