THE SENATE

S.B. NO.

2567

TWENTY-NINTH LEGISLATURE, 2018

S.D. 2

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO CESSPOOLS.

 

 

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

 

     SECTION 1.  The legislature finds that public health and the quality of Hawaii's drinking water, streams, ground waters, and ocean are being harmed by water pollution from cesspools.  Hawaii has eighty-eight thousand cesspools that deposit approximately fifty-three million gallons of raw sewage directly into the groundwater every day.  Drinking water, public recreation, and the precious coral reefs, on which Hawaii's economy, shoreline, recreation, fisheries, and native species depend, are or may be harmed by such pollution.

     Upgrading cesspools can be expensive for homeowners, averaging $20,000, which presents a financial barrier to improving water quality.  The legislature finds that when a property with a cesspool or cesspools is being sold, the presence of a cesspool should be disclosed so that buyers and sellers can negotiate the payment of the upgrade costs as part of the sale, including through the use of any sales proceeds that may be available.

     The purpose of this Act is to improve the State's ability to control and reduce water pollution from cesspools by requiring property owners to upgrade cesspools by connecting to a sewer system or installing an individual wastewater system that complies with department of health rules, within a given period of time after the sale of the property, a time when homeowners generally have an ability to pay for the upgrades, as well as to require home sellers to disclose the presence of a known cesspool on the property.

     SECTION 2.  Chapter 342D, Hawaii Revised Statutes, is amended by adding two new sections to part IV to be appropriately designated and to read as follows:

     "§342D-A  Cesspool upgrades after sale of property.  (a)  Any owner of property containing a cesspool or cesspools located within a priority upgrade area and identified as priority level 1, 2, or 3, as determined by the department, shall, within       days after the sale of the property, upgrade the cesspool or cesspools by connecting to a sewer system or installing an individual wastewater system or systems that comply with department rules.

     (b)  The director may grant exemptions from the requirements of subsection (a) to property owners of cesspools that apply for an exemption and present documentation showing a legitimate reason that makes it infeasible to upgrade the cesspool.  For the purposes of this subsection, a legitimate reason shall include but not be limited to:

     (1)  Small lot size;

     (2)  Steep topography;

     (3)  Poor soils; or

     (4)  Accessibility issues.

     (c)  Any property containing a cesspool located in additional priority upgrade areas and identified as priority level 4, as determined by the department, shall be subject to subsection (a) upon determination by the director.

     (d)  Any realtor engaged in the purchase or sale of any property containing a cesspool shall advise the realtor's client as to the client's rights and responsibilities under this section and under any rulemaking conducted pursuant to this section.

     §342D-B  Cesspool outreach and assistance.  (a)  The director shall establish an outreach program to provide cesspool owners with information on cesspool upgrades, including connections to sewer systems and installation of individual wastewater systems, and on opportunities for financial assistance for cesspool upgrades.

     (b)  The outreach program does not relieve realtors of their duties under section 342D-A(d)."

     SECTION 3.  Section 508D-1, Hawaii Revised Statutes, is amended by amending the definition of "material fact" to read as follows:

     ""Material fact" means any fact, defect, or condition, past or present, that would be expected to measurably affect the value to a reasonable person of the residential real property being offered for sale.  The disclosure statement shall not be construed as a substitute for any expert inspection, professional advice, or warranty that the buyer may wish to obtain.  "Material fact" includes the fact that the residential real property contains a cesspool."

     SECTION 4.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 5.  In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

     SECTION 6.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on December 31, 2050.

 

 

 

Report Title:

Cesspool Upgrades; Sale of Property; Material Fact; Seller's Disclosure; Realtors

 

Description:

Requires cesspools located in priority upgrade areas and identified as priority level 1, 2, or 3 to be upgraded within an unspecified number of days after the sale of the property on which the cesspool is located.  Allows the Director of Health to issue exemptions.  Allows cesspools located in additional priority upgrade areas and identified as priority level 4 to be required to be upgraded within an unspecified number of days after the sale of the property on which the cesspool is located, upon determination of the Director of Health.  Designates the presence of a cesspool as a material fact for the purposes of a residential real property seller's mandatory disclosure.  Requires realtors to advise their clients with respect to the requirements of this Act.  Takes effect on 12/31/2050.  (SD2)

 

 

 

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