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GM 1421

Informing the Legislature that on July 9, 2025, the Governor signed the following bill into law: HB420 HD3 SD2 CD1 (ACT 308).

2025 Regular Session

Act 308 establishes a 10-year limit for construction defect claims, requiring homeowners to notify contractors 90 days before suing, impacting both parties' rights and responsibilities.

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Bill Summary · GM 1421

Summary of GM 1421 - Informing the Legislature of Act 308

Bill Information:
- Bill Number: GM 1421
- Title: Informing the Legislature that on July 9, 2025, the Governor signed the following bill into law: HB420 HD3 SD2 CD1 (ACT 308).
- Status: Received
- Introduced: July 09, 2025
- Classification: Proclamation
- Subject: Act 308

Purpose and Intent

GM 1421 serves as a formal notification to the Hawaii State Legislature that the Governor has signed House Bill 420 (HB 420) into law, which is designated as Act 308. The primary intent of this legislation is to amend existing statutes related to construction defects and the limitations on actions for damages arising from construction-related issues.

Key Provisions of Act 308

Act 308 introduces several significant changes to the Hawaii Revised Statutes, particularly focusing on the following areas:

  1. Limitation of Actions for Construction-Related Damages:

    • Statute of Limitations: The bill amends Section 657-8 to establish a ten-year statute of repose for actions related to construction defects. This means that any legal action for damages must be initiated within ten years of the completion of the construction improvement.
    • Clarification of "Date of Completion": The bill defines "date of completion" as the time when substantial completion of the improvement occurs or when the improvement is abandoned.

  2. Notice of Claim for Construction Defects:

    • Pre-Filing Requirement: Under Section 672E-3, claimants must provide contractors with a written notice of claim detailing the construction defect at least 90 days before filing a lawsuit. This notice must include specific information about the defect and any evidence, such as photographs or testing results.
    • Opportunity to Repair: The bill outlines a process for contractors to respond to claims, including the option to settle or inspect the alleged defect.

  3. Rejection of Claims:

    • Section 672E-4 establishes procedures for contractors to formally reject claims, including timelines for responses and the requirement to offer solutions, such as monetary compensation or repairs.

Affected Parties

  • Contractors and Subcontractors: The legislation impacts contractors by imposing requirements for responding to claims and providing them with opportunities to address defects before litigation.
  • Homeowners and Property Owners: Individuals seeking to file claims for construction defects will need to adhere to the new notice requirements and timelines established by the bill.

Procedural Aspects

  • Effective Date: The bill was signed into law on July 9, 2025, and is now in effect.
  • Legislative Process: GM 1421 was received by the legislature on the same date it was signed, indicating the completion of the legislative process for this bill.

Conclusion

GM 1421 serves as an important communication from the Governor to the Hawaii State Legislature regarding the enactment of Act 308, which modifies existing laws related to construction defects and the associated legal processes. The changes aim to clarify the rights and responsibilities of contractors and property owners in the context of construction-related claims.

Compiled from official sources — confirm details with the bill’s official record.

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