Chop shops are illegal automobile garages that buy stolen cars, disassemble them, and sell the individual parts for a profit. Chop shops often disassemble a car within hours of purchasing it from the thief who stole it—making it difficult for the police and the rightful owner to find the stolen vehicle. Chop shops are often operated in residential garages and small commercial spaces to avoid detection, but are usually part of a large criminal network or organization.

It is a crime under federal law (18 U.S.C. § 2322) to knowingly own, operate, maintain, or control a chop shop. There are significant fines and penalties under federal law for operating a chop shop—up to 15 years imprisonment for a first conviction, with the maximum fine and imprisonment doubled for any subsequent conviction.

States also have criminal laws (located in the penal or criminal code or statutes) that prohibit the operation of a chop shop. An offender may be prosecuted under state chop shop laws in addition to a federal prosecution, or instead of a federal prosecution.

In Hawaii, operating a chop shop is illegal under both federal and state laws. Federally, 18 U.S.C. § 2322 criminalizes the ownership, operation, maintenance, or control of a chop shop, with penalties including up to 15 years of imprisonment for a first offense and potentially doubled penalties for subsequent offenses. Hawaii's state statutes also prohibit the operation of chop shops, aligning with federal law to address this form of criminal activity. These state laws are designed to combat the illicit trade of stolen vehicles and their parts, and they provide for separate penalties and charges that can be applied in addition to, or instead of, federal prosecution. Violators in Hawaii could face severe consequences under both jurisdictions, including fines, imprisonment, and other legal repercussions.