Bill Text: HI HB1574 | 2022 | Regular Session | Introduced
Bill Title: Relating To Contractors.
Spectrum: Partisan Bill (Democrat 14-0)
Status: (Introduced - Dead) 2022-01-26 - Referred to LAT, CPC, FIN, referral sheet 1 [HB1574 Detail]
Download: Hawaii-2022-HB1574-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1574 |
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THIRTY-FIRST LEGISLATURE, 2022 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CONTRACTORS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 444, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§444- List of persons performing unlicensed work. The
department shall maintain and make public a list of persons found in violation of
section 444-9."
SECTION 2. Section 444-2.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) This chapter shall not apply to owners or lessees of property who build or improve residential or farm buildings or structures on property for their own use, or for use by their grandparents, parents, siblings, or children, and who do not offer the buildings or structures for sale or lease; provided that:
(1) To qualify for an
exemption under this section, the owner or lessee shall register for the
exemption as provided in section 444-9.1;
(2) The exemption under this section shall not apply to electrical or plumbing work that must be performed only by persons or entities licensed in accordance with this chapter, unless the owner or lessee of the property is licensed for such work under chapter 448E;
(3) An owner or a lessee exempted under
this section shall:
(A) Supervise the construction activity on the
exempt buildings or structures;
(B) Hire subcontractors appropriately licensed
under this chapter to perform any part of the construction activity for which a
license is required;
(C) Ensure that any electrical or plumbing work is
performed by persons and entities appropriately licensed under this chapter or
chapter 448E;
(D) Deduct Federal Insurance Contributions Act and
withholding taxes and provide workers' compensation insurance for persons
working on the construction activity who are not licensed under this chapter or
chapter 448E and who shall be considered employees of the owner or lessee; and
(E) Ensure that the construction activity complies
with all applicable laws, ordinances, building codes, and zoning regulations;
(4) [Until completion of the construction
activity, an] An owner or a lessee exempted under this
section shall [make available] submit the following [records for
immediate inspection upon request by] to the department:
(A) Before filing the building permit application
with the county:
(i) A copy of the building permit application[;], including the address of the property where the exempt
building or improvement activity is to occur, a description of the type of
building or improvement activity that is to occur, and the approximate dates of
construction;
[(B) A copy of the issued building permit;
(C) Copies] (ii) Whether any electrical or plumbing work is to
be performed and, if so, the name and license number of the person or entity who
will do the work and copies of all contracts with the names of all persons
who [performed or] are performing work on the exempt buildings and
structures[; and] and clearly identifying the work being performed by
each person;
(iii) A copy of the disclosure statement required
to be provided pursuant to section 444-9.1(c), which shall
be signed and notarized by the owner or lessee; and
(iv) A fee based on the value of the estimated value of work as follows:
Estimated Value Fee
Up to and including $50,000 $0
More than $50,000 to $100,000 $1,000
More than $100,000 to $250,000 $2,000
More than $250,000 to $500,000 $3,000
More than $500,000 to $1,000,000 $4,000
More than $1,000,000 $10,000;
provided
that the fee collected by the department shall be distributed to the county in which
the property is located; provided further that any fees collected shall be used
for the inspections of all properties with building permits issued to persons exempt
under this section; and
(B) Upon completion of the construction activity:
(i) An itemized listing of the general excise taxes
paid to all persons performing work on the exempt buildings and structures;
[(D)] (ii) Proof of payment to all persons contracted to
work on the exempt buildings and structures; [and]
(iii) A copy of the issued building permit; and
(iv) All amendments to any of the contracts submitted
pursuant to paragraph (A)(ii); and
(5) Upon completion of the construction activity, an owner or lessee exempted under this section shall keep and maintain the records identified in paragraph (4) for a period of three years from completion of the construction activity and shall make the records available for inspection within seven business days upon request by the department."
SECTION 3. Section 444-9.1, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c) The county shall provide applicants for the exemption under section 444-2.5 with a disclosure statement in substantially the following form:
"Disclosure Statement
State law requires construction to be done by licensed contractors. You have applied for a permit under an exemption to that law. The exemption provided in section 444-2.5, Hawaii Revised Statutes, allows you, as the owner or lessee of your property, to act as your own general contractor even though you do not have a license. You must supervise the construction yourself. You must also hire licensed subcontractors. The building must be for your own use and occupancy. It may not be built for sale or lease. If you sell or lease a building you have built yourself within one year after the construction is complete, the law will presume that you built it for sale or lease, which is a violation of the exemption, and you may be prosecuted for this. It is your responsibility to make sure that subcontractors hired by you have licenses required by state law and by county licensing ordinances. Electrical or plumbing work must be performed by contractors licensed under chapters 448E and 444, Hawaii Revised Statutes. Any person working on your building who is not licensed must be your employee which means that you must deduct F.I.C.A. and withholding taxes and provide workers' compensation for that employee, all as prescribed by law. Your construction must comply with all applicable laws, ordinances, building codes, and zoning regulations. If you violate section 444-2.5 or fail to comply with the requirements set forth in this disclosure statement, you may be fined $5,000 or forty per cent of the appraised value of the building as determined by the county tax appraiser, whichever is greater, for the first offense; and $10,000 or fifty per cent of the appraised value of the building as determined by the county tax appraiser, whichever is greater, for any subsequent offense."
The county shall not issue a building permit to the
owner-applicant until the applicant signs a statement that the applicant has
read and understands the disclosure form[.] and signs a form granting
the county written permission to enter the property for purposes of inspection."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2022.
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INTRODUCED BY: |
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Report Title:
Contractors; Unlicensed Violators; Owner-Builder Exemption; Required Documents; Fees
Description:
Requires DCCA to maintain and make public a list of persons that performed work without the required contractor license. Requires that certain documents be submitted to DCCA for projects being conducted pursuant to the owner-builder exemption of the contractor licensing law. Establishes fees based on the estimated value of the work to be performed by the owner-builder, to be used to pay for county building inspections. Requires owner-builders to provide written permission for a county to enter the property for inspection prior to a county issuing a building permit.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
