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:
SECTION 1. 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. 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. However, although certain property owners may be eligible for grant funding, it may not be sufficient to cover all upgrade or conversion costs. The legislature also finds that the appropriation under Act 153 lapsed as of June 30, 2024.
The purpose of this Act is to:
(1) Increase the maximum grant amount for the cesspool compliance pilot grant project; and
(2) Appropriate funds for the cesspool compliance pilot grant project.
SECTION 2. Act 153, Session Laws of Hawaii 2022, is amended by amending section 2 as follows:
1. By amending subsection (b) to read:
"(b) 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:
(1) The cesspool is located in an area identified as priority level 1 or 2 in the University of Hawaii's [[Struck through: 2021]] [Underlined: 2022] Hawaii cesspool [[Struck through: hazard assessment and]] prioritization tool;
(2) The owner or lessee provides the department with the tax return required by this section; and
(3) An application, the form of which shall be decided by the department, is submitted and deemed completed by the department of health."
2. By amending subsections (e) and (f) to read:
"(e) The owner or lessee shall provide the department of health with the following before a grant may be awarded:
(1) Design plans prepared by a licensed engineer for a wastewater system that complies with chapter 11-62, Hawaii Administrative Rules;
(2) 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;
(3) A copy of an approval to use letter of the wastewater system issued by the director of health; and
(4) Receipts of payment made to the licensed engineer [[Struck through: and]][Underlined: ,] licensed contractor[[Struck through: .]][Underlined: , and wastewater and plumbing supply companies registered with the department of commerce and consumer affairs.]
(f) The department of health shall grant awards not to exceed [[Struck through: $20,000]] [Underlined: $30,000] based on receipts of payment submitted under subsection (e)(4); provided that [[Struck through: cesspools]] [Underlined: 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. 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."
3. By amending subsection (h) to read:
"(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 [[Struck through: session]] [Underlined: sessions] of 2024[[Struck through: .]] [Underlined: and 2027.]"
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.
The sum appropriated shall be expended by the department of health for the purposes of this Act.
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.
The sum appropriated shall be expended by the department of health for the purposes of this Act.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. 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. Appropriates funds.
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