Final Vote Scheduled on Owner-Builder Law Changes

A House-Senate conference committee has left virtually unchanged a bill that would require owner-builders to provide worker’s compensation insurance and withhold payroll taxes from those hired to help construct the home.

The only change the committee made this week was to change the effective date of the legislation to July 1, 2013.

A final vote on the measure is scheduled for Tuesday.

Senate Bill 1077 amends the part of state law that allows one to build their own home, as long as electrical and plumbing work is done by licensed subcontractors.

The bill introduced on behalf of Gov. Neil Abercrombie’s administration also requires that the holder of an owner-builder permit maintain pay records for other workers that are hired.

The measure has the support of numerous contractors, contractor associations and the sate Contractors License Board which testified that they believe it will reduce opportunities for unlicensed contractors.

It also has been endorsed by the Regulated Industries Complaints Office of the Department of Commerce and Consumer Affairs for the same reason. A RICO official said the bill would also help it enforce other laws dealing with building codes, occupational safety and health regulations and wage standards.