HI SB223

Requires building licenses for private developments valued at $195,000 or greater to include tax clearances from the Hawaii Department of Taxation and Internal Revenue Service for the building contractor and all subcontractors.

Building licenses issued under this requirement are valid for two years, provided tax clearances were obtained and submitted with the application.

Requires assignees of contracts for private developments valued at $195,000 or greater to obtain a bulk sales certificate or tax clearance before assignment can be approved.

Requires state and county contracting officers to withhold final inspection of private developments valued at $195,000 or greater if the building license expires, until updated tax clearances dated no earlier than 45 days prior are received.

Exempts contractors or subcontractors in good standing under an installment payment plan with the Department of Taxation or Internal Revenue Service from these requirements.

Establishes penalties of up to $1,000 fine or one year imprisonment for governmental officers or employees who intentionally or knowingly violate this section.

Effective January 1, 2022 and repeals December 31, 2026.