Bill > SB417

This bill addresses the issue of unlicensed contractors operating during or within five years after a national or state emergency by establishing a class B felony for such activities. The legislation aims to combat "storm chasers" - fraudulent contractors who exploit homeowners in the aftermath of natural disasters by performing substandard repairs or scamming residents. The bill specifically amends Hawaii Revised Statutes Section 444-10.6 to create stricter penalties for unlicensed contractors working in areas with declared emergencies, upgrading the punishment from a potential fine and up to one year in prison to a class B felony. The legislative findings highlight the significant financial impact of post-disaster fraud, citing Federal Trade Commission data showing nearly 70,000 home repair fraud cases in 2021 and estimates from the National Insurance Crime Bureau that approximately 10% of catastrophe-related insurance payouts are lost to fraudulent contractors. By introducing this heightened legal consequence, the bill seeks to deter predatory contracting practices, protect vulnerable homeowners, and maintain the integrity of disaster recovery efforts, with particular relevance to ongoing rebuilding efforts in areas like Lahaina. The law is set to take effect on July 1, 2050, and will not impact rights, penalties, or proceedings that existed prior to its implementation.

Business and Industry, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=417&year=2026