HI SB2279

Requires owner-builders using the exemption under Section 444-2.5, HRS to provide proof of withholding applicable taxes including Federal Insurance Contributions Act (FICA) and workers' compensation insurance to all persons contracted to work on exempt buildings and structures.

Adds new recordkeeping requirement (paragraph 4(E)) for owner-builders to maintain and produce upon request documentation proving withholding of taxes and provision of workers' compensation insurance for all contractors and subcontractors, including independent contractors.

Increases penalty thresholds in disclosure statement: first offense maximum penalty changed from 40% to 50% of construction value; subsequent offense increased from 50% to 60% of construction value, with penalties determined based on circumstances of each case.

Changes penalty calculation methodology to use "value of construction or improvement as indicated on the building permit application" instead of county tax appraiser appraisal.

Takes effect July 1, 2018.