SB 179 Hawaii Senate · 2025 Regular Session

RELATING TO REMEDIES.

Summary

Clarifies the applicability of the statute of repose for actions arising from construction defects. Clarifies the required contents of a notice of claim of construction defect served on a contractor. Amends the process and time frame for a claimant to accept a contractor's offer to settle or inspect and authorize the contractor to proceed with repairs. Limits the amount a claimant can recover if the claimant rejects a contractor's reasonable proposal for inspection or a reasonable offer to remedy. Clarifies the consequences of rejecting an offer of settlement. Effective 7/1/2050. (SD1)

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 13, 2025 Last action Feb 14, 2025

Maddy AI version diff · 1 comparison

What changed between versions

SB179 → SB179_SD1 · 6 edits

MODERATE

This bill updates Hawaii's construction defect laws to address the state's housing crisis by clarifying the statute of repose, standardizing how construction defect claims must be filed, and limiting damages for claimants who reject reasonable repair offers. The changes aim to reduce costly litigation, lower insurance premiums, and increase housing supply by creating a clearer, more predictable process for resolving construction disputes.

Scope change

The bill applies to all construction defect claims in Hawaii, including those involving contractors, subcontractors, and owners, with specific provisions for condominium associations and multi-unit properties.

REQUIREMENT

Clarified the statute of repose to apply uniformly to contract, tort, and statutory claims, and explicitly stated that fraudulent concealment is not a defense for the ten-year repose period.

Added mandatory notice requirements for construction defect claims, requiring claimants to provide specific details and evidence at least 90 days before filing a lawsuit.

Established a structured process where contractors must respond to claims within 30 days with either a settlement offer, inspection proposal, or statement that they will not proceed.

DEFINITION

Defined 'material violation' of a building code as requiring physical harm or significant damage, with exceptions for violations where permits were obtained and inspections passed.

ENFORCEMENT

Limited claimants' recovery to the reasonable value of repairs and monetary offers if they reject reasonable contractor proposals, and shifted costs to claimants who obtain less favorable judgments than settlement offers.

TIMELINE

Set the effective date of the new provisions to July 1, 2050.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 14, 2025

Committee

Reported from CPN (Stand. Com. Rep. No. 507) with recommendation of passage on Second Reading, as amended (SD 1) and referral to JDC.

upper

Feb 10, 2025

Upper · Passed

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 4 Aye(s): Senator(s) Keohokalole, McKelvey, Richards; Aye(s) with reservations: Senator(s) Fukunaga ; 1 No(es): Senator(s) Awa; and 0 Excused: none.

upper

Feb 6, 2025

Upper · Passed

The committee(s) on CPN has scheduled a public hearing on 02-10-25 9:35AM; Conference Room 229 & Videoconference.

upper

Jan 17, 2025

Committee

Referred to CPN, JDC.

upper

Jan 15, 2025

Introduced

Introduced and passed First Reading.

upper

Jan 13, 2025

Introduced

Pending Introduction.

upper

1 primary · 0 co-sponsors