Government Affairs Update
March 27, 2009
THIS WEEK AT THE LEGISLATURE...
Governor Lingle Announces Her Plan to Balance the Budget
Governor Lingle’s plan includes cutting wages and benefits of state workers, pending collective bargaining, and utilizing federal monies for education. Read Derrick DePledge’s full article: Click here.
Retail Sales Tax Bill Deferred
HB1605, HD1 would have authorized each county to establish a retail sales tax on sales of tangible personal property.
HAR opposed this measure because it would increase the already high cost of living in Hawai‘i and it would incentivize Hawai‘i consumers to import items from the mainland through the Internet thereby discriminating against local merchants who must collect the tax.
The Committee deferred this measure.
Committee Utilizes HAR Suggestions for Domestic Violence Victims Bill
HB812, HD2, SD1 allows a tenant who is a victim of domestic violence to terminate the tenant's rental agreement.
The bill created ambiguities and may have created unintended consequences for the domestic violence victims, landlords, and tenants. HAR requested and suggested additional language to clarify the rights and responsibilities of the parties in a domestic violence situation. Our changes included: language to address specifics regarding termination of the contract; the procedure by which the tenant would vacate the premises; and the remaining tenant’s obligations.
Senator Baker, Chair, and members of the Committee on Consumer Protection agreed to incorporate HAR’s suggested language and passed the bill with amendments. HAR believes additional tweaks are necessary to protect landlords from potential unnecessary consequences.
Compromise Reached for Proposed Owner Builder Bill
SB205, SD1, HD1 increases period prohibiting sale or lease by owner-builder from 1 to 2 years and requires that an exemption from licensing requirements is given no more than once in 3 years.
The House Committee on Economic Revitalization, Business and Military Affairs amended this measure to reflect a compromise reached by HAR and BIA-Hawaii by:
(1) Returning to one year, the time within which the sale or lease of an owner-builder's property is prima facie evidence that the person does not qualify for the owner-builder exemption, and removing related amendments;
(2) Returning to two years, the time within which an owner-builder exemption claimed more than once by the same person, establishes a presumption that the claimant does not qualify for the owner-builder exemption; and
(3) Including in the disclosure statement that a county must provide to an applicant for an owner-builder permit, the requirement that the applicant's federal and Hawaii State tax identification numbers, federal and state tax clearances, and certificate of workers' compensation insurance be submitted with the permit application.
TOP INITIATIVES
Historic Preservation Act
HB520, HD1, SD1 repeals the entire Historic Preservation Act which requires archival quality photographs before any demolition, construction or alteration of a building 50 years or older.
It was returned to the House. Since it has amendments, the bill in its current form needs to be either accepted by the House or worked out through Conference Committee.
Retail Sales Tax Bill Deferred
SB1241, SD1 prohibits deed restrictions or covenants that require a transfer fee as a condition of a real estate transaction has received a hearing date. The bill is scheduled to be heard by JUD on Friday, March 27, 2009, at 2:00pm, in House conference room 325.