RELATING TO STATE WATER CODE PENALTIES.

SB2022

THE SENATE

S.B. NO.

2022

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO STATE WATER CODE PENALTIES
.

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

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SECTION 1.
�
The legislature finds that in 1987, the state
water code was adopted to protect the precious water resources of the
State.
�
To better enable the department
of land and natural resources and commission on water resource management to
carry out that mission, the legislature believes that the water code's
penalties and fines must be amended and increased to serve as an effective
deterrence to violators.

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The
legislature also believes that increasing potential fines for water code
violations will help:

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(1)
�
P
reserve water resources by ensuring
the sustainable management and conservation of limited water resources for
future generations, particularly in areas facing over-extraction or misuse;

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(2)
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Protect the ecosystems by safeguarding
wetlands, rivers, and aquifers that depend on healthy water systems to maintain
biodiversity and environmental balance;

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(3)
�
Promote public health and safety by
preventing contamination of drinking water supplies and reducing health risks
associated with waterborne diseases and pollutants;

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(4)
�
Promote climate change resilience by
regulating water usage and protecting vulnerable water sources to address
challenges posed by prolonged droughts, erratic rainfall, and rising sea
levels;

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(5)
�
Promote economic stability by helping
to avoid economic losses in agriculture, tourism, and other industries that
rely heavily on consistent and clean water supplies;

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(6)
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Promote equity and justice by ensuring
fair access to water resources for all, including marginalized communities that
may be disproportionately affected by water scarcity or poor water management;

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(7)
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Increase accountability for violations
to deter illegal activities such as unauthorized diversions, pollution, or
overuse of water resources by imposing stricter penalties and fines; and

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(8)
�
Increase compliance with federal and
state mandates to meet legal obligations under federal or state environmental
protection laws, ensuring alignment with broader water management and
conservation goals.

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Accordingly,
t
he purpose of this Act is to:

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(1)
�
Ensure that all violators of the state
water code are held accountable for their violations by adding a minimum
penalty and amending the maximum penalty, with scheduled incremental increases,
per violation of the state water code and clarifying what constitutes a
separate offense; and

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(2)
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Require the commission on water
resource management to consider certain factors when imposing penalties.

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SECTION
2
.
�
Section 174C-15, Hawaii Revised Statutes, is
amended to read as follows:

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"
�174C-15
�
Penalties and common law remedies.
�
(a)
�
The commission may enforce its rules and
orders adopted pursuant to this chapter by suit for injunction or for damages
or both.

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(b)
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Any person who [
violates any
]
:

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(1)
�
Violates
any
provision of this chapter[
, or any
]
;

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(2)
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Violates
any
rule adopted pursuant to this chapter[
, may
]
;

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(3)
�
Violates any order of the commission regarding the enforcement or
application of any provision of this chapter or rule adopted under this
chapter;

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(4)
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Fails to obtain a permit when a permit is required under this chapter;

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(5)
�
Fails to comply with permit conditions; or

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(6)
�
Fails to comply with standardized water audit requirements pursuant to
Act 169, Session Laws of Hawaii 2016,

shall

be subject to a fine imposed by the commission[
.
�
Such fine shall not exceed $5,000.
�
For a continuing offense, each day during
which the offense is committed is a separate violation.
]
, as provided
under subsection (c).
�
Each day that a violation exists or continues to exist may
be considered a separate offense.
�

Penalties for continuing violations shall be assessed from the earliest
known date of the violation.
�
The
earliest known date of a violation shall be determined by the commission by a
preponderance of the evidence; provided that if the earliest known date cannot
be determined by a preponderance of the evidence, penalties for continuing
violations shall be assessed from the earliest date the commission is made
aware of the violation.

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(c)
�
A fine imposed pursuant to this section shall
not be less than $50 and shall not exceed:

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(1)
�
$5,000 per violation; provided that
the commission has not fined the violator within the five years preceding the
violation; provided further that the violation does not cause harm to other
water users, the environment, or water source; or

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(2)
�
$25,000 per violation if the
commission has fined the violator within the five years preceding the violation
or the violation causes harm to other water users, the environment, or a water
source.

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(d)
�
When imposing a fine, the commission shall
consider
factors including:

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(1)
�
The nature, circumstances, extent, gravity, and history of the
violation and any prior violations;

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(2)
�
The economic benefit to the violator, or anticipated by the violator,
resulting from the violation;

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(3)
�
The opportunity for, difficulty of, and history of any corrective
action;

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(4)
�
The violator's good faith efforts to comply;

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(5)
�
The violator's degree of culpability;

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(6)
�
The quantity of water affected by the violation, including the
quantity of water unlawfully diverted, wasted, or contaminated;

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(7)
�
The potential or actual harm to other water users, the environment, or
water source caused by the violation; and

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(8)
�
Any other matters as justice may require.

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[
(c)
]
(e)

�
No provision of this chapter shall bar the
right of any injured person to seek other legal or equitable relief against a
violator of this chapter.

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[
(d)
]
(f)

�
Except as otherwise provided by law, the
commission or its authorized representative by proper delegation may set,
charge, and collect administrative fines [
or
]
; may
bring legal
action to recover administrative fees and costs as documented by receipts or
affidavit, including attorneys' fees and costs; [
or
]
and may

bring legal action to recover administrative fines, fees, and costs, including
attorneys' fees and costs, or payment for damages resulting from a violation of
this chapter or any rule adopted pursuant to this chapter.

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(g)
�
The maximum fine per violation pursuant to
subsection (c)(2) shall increase to:

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(1)
�
$30,000 beginning January 1, 2031;

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(2)
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$35,000 beginning January 1, 2036;

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(3)
�
$40,000 beginning January 1, 2041; and

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(4)
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$45,000
�
beginning January 1,
2046.
"

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SECTION 3.
�
This Act does
not affect rights and duties that matured, penalties that were incurred, and
proceedings that were begun before its effective date.

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SECTION 4.
�

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

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SECTION 5.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

State
Water Code; CWRM; Penalties

Description:

Adds a
minimum penalty and maximum penalty per violation of the State Water Code and
authorizes the Commission on Water Resource Management to consider each day
that a violation exists or continues to exist a separate offense.
�
Establishes factors the CWRM must consider
when determining the amount of the penalty.
�

Increases maximum fines every 5 years from 2031 to 2046.

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