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Legislature advances one‑time temporary business‑license plan to open rental units; debate centers on inspections and waivers
Summary
Bill 125‑38 COR, which would allow Department of Revenue and Taxation to issue a one‑time temporary business license for dwelling units that pass a certified inspection, was placed on the third‑reading file after extended debate on inspection standards, agency clearances and exceptions for government delays.
Bill 125‑38 COR, intended to expand housing availability by authorizing one‑time temporary business licenses for dwelling units that meet specified inspection requirements, was moved to the third‑reading file after prolonged floor debate and multiple amendments. The measure would let the Department of Revenue and Taxation (DRT) issue a temporary license valid for up to one year to property owners who obtain a certified home‑inspector’s suitability‑for‑occupancy certification and who are current on required taxes and clearances.
Why it matters: Sponsors said the bill aims to increase housing supply quickly by allowing eligible homes, accessory dwelling units and qualifying residential units to be rented while owners complete full business‑license requirements. Supporters argued the measure could help homeowners avoid foreclosure and expand inventory; opponents and some senators pressed for safeguards so that waivers do not bypass public‑safety or tax clearances.
Key provisions and floor discussion: The amended bill requires inspection by a home inspector licensed by the Government of Guam or by a HUD‑certified inspector when units will house tenants receiving federal housing assistance. The measure restricts DRT from issuing a temporary license to applicants with outstanding tax liabilities and makes the license nontransferable and valid for a single year. The markup removed a prior mandatory issuance requirement and clarified that DRT “may” issue a temporary license.
Floor debate focused on several recurring issues: whether the bill would waive other Government of Guam clearances (Real Property Tax, Fire Department, others) and whether DPW should retain oversight or be kept informed about non‑DPW inspectors. Senators amended the bill on the floor to restore DPW involvement by allowing “DPW or DPW‑authorized” inspectors and to change wording from “clearances” to “inspections” in contested lines; one attempted amendment to remove a provision allowing extensions for delays caused by government agencies failed. Committee chairs and the author said the markup process added safeguards including a 14‑day remediation period for violations and exceptions for unavoidable delays such as natural disasters or probate.
Outcome and next steps: The author moved to place the bill in the third‑reading file; the motion was ordered with no objections. Floor action also added several cosponsors. The bill will return for a third‑reading vote and could require follow‑up coordination with DPW, GHURA, HUD, DRT and other agencies for implementation and enforcement.
Context and limits: The article paraphrases floor debate and the committee‑markup changes described on the record. It does not interpret how federal housing authorities or the military will accept temporary authorizations, nor does it claim the statute will solve Guam’s housing supply challenges; those outcomes were described aspirationally by supporters on the floor.
