Honolulu, Hawaiʻi – Governor Josh Green, M.D., concluded the bill signing season today, highlighting new measures focused on addressing some of Hawaiʻi’s most persistent challenges: effective remediation for construction defect claims and essential funding for critical nonprofit organizations affected by federal funding reductions.
“Today represents the full scope of what policymaking is all about,” said Governor Green. “Sometimes, it takes many sessions to pass legislation and show foresight for long-term change. Other times, it is about the flexibility to pivot quickly when urgent challenges arise. Signing these two bills reflect both ends of that spectrum and truly demonstrates the best of what this bill signing period stands for.”
HB 420 (Act 308): Streamlining Construction Defect Remedies
A recent report from the University of Hawaiʻi Economic Research Organization (UHERO) indicates a surge in litigation related to construction defect claims, leading to costly and time-consuming delays in housing projects across the state. These delays contribute to housing limbo for many and drive up housing costs, impacting the entire state’s housing pipeline. House Bill 420 (Act 308) amends the Contractor Repair Act and Statute of Repose to address what are described as exploitative litigation practices hindering Hawaiʻi’s housing market.
HB 420 aims to streamline and improve the efficiency of the Hawaiʻi Contractor Repair Act, encouraging its proper utilization in lieu of litigation. Amendments to the act provide defined timelines and processes for notice of claims between claimants and contractors, including the acceptance or rejection of settlement offers or authorized repairs. The measure also establishes standardized requirements for construction defect claims to ensure contractors receive sufficient evidence to address the matter promptly.
The bill further establishes clear timelines for inspections, testing, and mediation, providing homeowners and contractors with a comprehensive roadmap for remedies. Complementing these procedural improvements, the bill includes provisions to deter unnecessary litigation by clarifying the 10-year statute of repose, which applies to all actions, including contracts, torts, or statutory claims. It also specifies that lawsuits cannot be pre-filed more than six months before the litigation or repose period ends.
Senator Jarrett Keohokalole (Senate District 24 – Oʻahu), Chair of the Senate Commerce and Consumer Protection Committee, stated, “HB 420 is a meaningful step forward for Hawai‘i’s communities because it helps with the process of getting homes repaired and built faster, without getting caught up in long, costly lawsuits.” Representative Lisa Marten also emphasized that “HB 420 is about restoring balance and fairness to the construction defect process,” protecting both homeowners and builders. Tracy Tonaki, D.R. Horton Hawaiʻi Division President, speaking on behalf of Housing No Kākou, thanked Governor Green, saying the legislation “brings critical reform to the Contractor Repair Act by prioritizing cooperation and timely resolution over costly and prolonged litigation.”
SB 933 (Act 310): Supporting Hawaiʻi’s Nonprofit Sector
Senate Bill 933 (Act 310) is a targeted measure designed to support Hawaiʻi’s vital nonprofit sector. Many valuable nonprofits providing essential community services—such as child care, housing services, and healthcare—face significant reductions in funding due to a recent federal funding freeze.
To help offset these losses, SB 933 appropriates $50 million for fiscal year 2026 to fund grants-in-aid for non-profit organizations across Hawaiʻi. The Office of Community Services (OCS), within the Department of Labor and Industrial Relations, will oversee the selection and distribution of these grant awards.
“It is not fair that organizations dedicated to supporting the people of Hawai‘i are being forced to scale back due to federal funding cuts,” said Governor Green. “This state funding is a critical lifeline — not just for the nonprofits themselves, but for the individuals and families who depend on the essential services they provide everyday. We are stepping in to ensure our communities do not lose access to the care and support they need.”
A selection committee will be established to evaluate applications from non-profit organizations that can demonstrate a termination or reduction of funding, or whose beneficiaries have been adversely impacted by the changes in federal funding. The measure also establishes temporary full-time positions within OCS to assist with grant distribution and authorizes OCS to contract with Aloha United Way, Inc. for administrative support in distributing awards.
Michelle Bartell, President & CEO of Aloha United Way, stated, “This investment is more than just funding—it’s a vote of confidence in Hawai‘i’s nonprofit sector.” Senator Troy Hashimoto (Senate District 5 – Maui) and Representative Daniel Holt echoed these sentiments, emphasizing the bill’s role in protecting essential services.
The complete list of bills signed today also includes HB 431 (ACT 309) relating to Housing.