RELATING TO CESSPOOL CONVERSIONS.

HB1816

HOUSE OF REPRESENTATIVES

H.B. NO.

1816

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to cesspool conversions
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION
1.
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The legislature finds that all
cesspools are required to be upgraded or converted to a wastewater system
approved by the director of health or connected to a sewerage system by 2050.
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The legislature further finds that Act 153,
Session Laws of Hawaii 2022, established a cesspool compliance pilot grant
project to assist certain low- and moderate-income property owners, including
lessees on Hawaiian home lands, with the costs of upgrading or converting
cesspools.
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However, although certain
property owners may be eligible for grant funding, it may not be sufficient to
cover all upgrade or conversion costs.
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The legislature also finds that the appropriation under Act 153 lapsed
as of June 30, 2024.

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The
purpose of this Act is to:

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(1)
�
Increase the maximum grant amount for the
cesspool compliance pilot grant project; and

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(2)
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Appropriate funds for the cesspool compliance
pilot grant project.

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SECTION
2.
�
Act 153, Session Laws of Hawaii 2022,
is amended by amending section 2 as follows:

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1.
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By amending subsection (b) to read:

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"(b)
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The department of health shall not grant
awards to any owner of real property with a cesspool or lessee on Hawaiian home
lands with a cesspool unless:

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(1)
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The cesspool is located in an area identified
as priority level 1 or 2 in the University of Hawaii's [
2021
]
2022

Hawaii cesspool [
hazard assessment and
] prioritization tool;

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(2)
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The owner or lessee provides the department
with the tax return required by this section; and

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(3)
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An application, the form of which shall be
decided by the department, is submitted and deemed completed by the department
of health."

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2.
�
By amending subsections (e) and (f) to read:

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"(e)
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The owner or lessee shall provide the
department of health with the following before a grant may be awarded:

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(1)
�
Design plans prepared by a licensed engineer
for a wastewater system that complies with chapter 11-62, Hawaii Administrative
Rules;

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(2)
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A licensed engineer's final construction
inspection report with photos and as built plans and certification that the
system was constructed in accordance with the design plans approved by the
director of health;

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(3)
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A copy of an approval to use letter of the
wastewater system issued by the director of health; and

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(4)
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Receipts of payment made to the licensed
engineer [
and
]
,
licensed contractor[
.
]
, and wastewater
and plumbing supply companies registered with the department of commerce and
consumer affairs.

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(f)
�
The department of health shall grant awards
not to exceed [
$20,000
]
$30,000
based on receipts of payment
submitted under subsection (e)(4); provided that [
cesspools
]
property
owners that have previously received a grant award under this Act to upgrade or
convert cesspools to a director of health-approved wastewater system shall be
eligible for additional grant awards under this Act in an amount not to exceed
$30,000 for the same cesspool.
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Cesspools

that have been upgraded or converted to a director of health-approved
wastewater system before the passing of this Act shall not be eligible for this
grant."

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3.
�
By amending subsection (h) to read:

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"(h)
�
The department of health shall submit to the
legislature a report on the pilot grant project, including any findings and
recommendations, and any proposed legislation, no later than twenty days prior
to the convening of the regular [
session
]
sessions
of 2024[
.
]

and 2027.
"

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SECTION
3.
�
There is appropriated out of the
general revenues of the State of Hawaii the sum of $5,000,000 or so much
thereof as may be necessary for fiscal year 2026-2027 to fund the cesspool
compliance pilot grant project.

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The sum
appropriated shall be expended by the department of health for the purposes of
this Act.

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SECTION
4.
�
There is appropriated out of the
general revenues of the State of Hawaii the sum of $174,366 or so much thereof
as may be necessary for fiscal year 2026-2027 for to establish two full-time
equivalent (2.0 FTE) permanent positions within the department of health for
the purposes of this Act.

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The sum
appropriated shall be expended by the department of health for the purposes of
this Act.

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SECTION
5.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.

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SECTION 6.
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This Act shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

Cesspool
Compliance Pilot Grant Project; Appropriations

Description:

Increases
the maximum grant amount for the Cesspool Compliance Pilot Grant Project.
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Appropriates funds.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.