HI HB103

Raises the contractor licensing exemption threshold from $1,000 to $2,000 for projects where aggregate contract price for labor, materials, taxes, and other costs does not exceed the threshold.

Allows unlicensed persons to perform construction work under $2,000 without requiring a contractor license, unless a building permit is required or the project is part of a larger operation.

Exemption does not apply if the work requires a building permit regardless of contract price, or if a larger project is artificially divided into smaller contracts to avoid licensing requirements.

Effective date: February 19, 2025.

Rationale: Legislature finds that housing costs in Hawaii have increased significantly since 1992, material costs have risen, and licensed contractor availability is limited, making the $1,000 exemption threshold outdated.