HI HB846

Raises the contractor licensing exemption threshold from $1,500 to $2,500 for projects where the aggregate contract price for labor and materials falls below that amount

Exemption does not apply to projects requiring a building permit, regardless of cost, or to work that is part of a larger project being divided to evade licensing requirements

Addresses Hawaii's shortage of licensed contractors, noting that many contractors prefer jobs exceeding $10,000, making it difficult for homeowners to complete small-scale repairs

Responds to rising construction costs, with single-family residence construction costs increasing 3.9% between 2023-2024 and cumulative inflation of nearly 20% since 2021

Compares Hawaii's low threshold to other states: Alabama and Delaware set exemptions at $50,000, North Dakota at $40,000, and North Carolina at $30,000