Government Affairs Update
February 29, 2008
Friday, February 29 is a critical "decking deadline" whereby a bill must be passed out of the final committee for it to be considered for passage. Legislators will now debate and vote on all bills still viable before the legislative process continues with House bills crossing over to the Senate and Senate bills to the House. The legislature will now go through another round of hearings.
Refer to the testimonies section to see which bills are still alive and which are no longer viable for passage.
HIGHLIGHT A BILL
This week, GAC members testified on HB3107 that requires sellers to disclose whether a building or structure was built or improved under an owner-builder permit. We as REALTORS® are already doing his or her due diligence as noted in the Purchase Contract, C62-C64.
The Contractors Licensing Board, the General Contractors Association of Hawaii, Building Industry Association and the Subcontractors Association of Hawaii submitted testimony in support. In review of the General Contractors' testimony, HAR request the removal of Section 1 (provision to add disclosure to 508D) and references to "alteration, improvement, demolition, or repair of the building or structure." HAR testified expressing support for the intent of the bill to require disclosure; however, indicating that HAR had concerns with some of the provisions of the bill.
During the Q&A, Rep. Theilen asked the Contractors Licensing Board whether the provisions of the bill were too far-reaching and may require owner-builders that are doing a simple renovation. The Contractors Licensing Board responded that the bill does not change the fact that an owner builder that has applied for a permit is already prohibited by current law to sell the house within a year. Chair Waters asked them that in the process of giving and taking, would they be okay with bumping up the handyman's exemption. The Contractors License Board replied that they would have concerns because a lot of the work that contractors do falls under $1,000 and this bill is intended to ensure that unlicensed contracting work does not occur.
The role of REALTOR® is not to enforce the law and that REALTORS® have to depend on the seller to disclose truthfully. Although REALTORS® will disclose information that they know to be a fact, real estate licensees who violate 508D can be grounds for a lawsuit, which is an incentive for sellers to disclose material facts.
The committee will take the suggestion raised by the General Contractors Association of Hawaii, so that Section 1 of the bill will discuss construction or structural improvements by the owner-builder, and other activities (e.g., altering, improving, etc.) will be removed. Thus, disclosures must be made where the owner builds a whole house or makes a major structural improvement. The bill will have a defective date of 2112.
2008 ELECTION FEVER
The deadline for Hawaii candidates to file nomination papers for the 2008 election is Tuesday, July 22, 2008. If you want to know who will be running for the election, visit the Office of Election's website: http://hawaii.gov/elections/candidates/
Based on the latest report, February 29, 2008, Rep. Alex Sonson, D-35th (Pearl City, Waipahu) will vacate his House seat to vye for the Senate seat currently seated by Sen. Clarence Nishihara, D-18th (Waipahu, Pearl City, Crestview).
For the most current and detailed information on bills, go to http://www.capitol.hawaii.gov for bill status and descriptions.