HB1893

SECTION 1. The legislature finds that Act 153, Session Laws of Hawaii 2022, established a cesspool compliance grant pilot project to assist property owners, including lessees on Hawaiian home lands, with upgrading, converting, or connecting a cesspool.

The purpose of this Act is to:

(1) Increase the cesspool compliance grant amount from $20,000 to $30,000 and update a reference to the University of Hawaii's Hawaii cesspool hazard assessment and prioritization tool; and

(2) Appropriate funds for the cesspool compliance pilot grant project for fiscal year 2024-2025 and to establish positions to implement the project.

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

"SECTION 2. (a) There is established in the department of health the cesspool compliance pilot grant project to assist property owners, including lessees on Hawaiian home lands, with upgrading, converting, or connecting a cesspool that, according to the department of health, meets the requirements of subsection (b). Specifically, the cesspool compliance pilot grant project shall assist property owners and lessees on Hawaiian home lands in meeting the costs of:

(1) Upgrading or converting cesspools that meet the requirements of subsection (b) to a director of health-approved wastewater system; or

(2) Connecting cesspools that meet the requirements of subsection (b) to a sewerage system.

(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 [~~2021~~] 2022 Hawaii cesspool 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.

(1) Owner of real property; or

(2) Lessee on Hawaiian home lands,

with a household income greater than one hundred forty per cent of the area median income as determined by the United States Department of Housing and Urban Development.

The owner's or lessee's household income shall be verified using the tax return of the most recent taxable year that is closed.

(d) The department of health shall grant awards on a first-come, first-served basis, subject to funding availability and the criteria set forth in subsections (b) and (e).

(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 and licensed contractor.

(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 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.

(g) The department of health may adopt rules as necessary to carry out the cesspool compliance pilot grant project; provided that the rules may allow third parties to claim a grant award on behalf of the owner of real property with a cesspool or lessee on Hawaiian home lands with a cesspool.

[(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 of 2024.]"

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 2024-2025 to implement the cesspool compliance pilot grant project established pursuant to Act 153, Session Laws of Hawaii 2022; provided that:

(1) The appropriation may be used to contract for services to establish and administer the project; and

(2) All moneys from the appropriation unencumbered as of June 30, 2026, shall lapse as of that date.

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 $151,000 or so much thereof as may be necessary for fiscal year 2024-2025 to establish one full-time equivalent (1.0 FTE) program specialist V position and one full-time equivalent (1.0 FTE) planner IV position to implement the cesspool compliance pilot grant project established pursuant to Act 153, Session Laws of Hawaii 2022, and perform other cesspool conversion-related work.

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

SECTION 5. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No. , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $5,151,000 or per cent. The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that:

(1) The appropriations made in this Act are necessary to serve the public interest; and

(2) The appropriations made in this Act meet the needs addressed by this Act.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1893
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII