CONFERENCE COMMITTEE REP. NO. 196-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 306

H.D. 2

S.D. 1

C.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madam and Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 306, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO STATE WATER CODE PENALTIES,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Establish a minimum fine and maximum fine per violation of the State Water Code and authorize the Commission on Water Resource Management (CWRM) to consider each day that a violation exists or continues to exist a separate offense;

(2) Establish factors the CWRM must consider when determining the amount of the penalty; and

(3) Increase maximum fines every five years from 2030 to 2045.

Your Committee on Conference has amended this measure by:

(1) Making it a violation of the State Water Code for a person to fail to maintain a natural stream channel under a person's ownership if the failure to maintain the channel causes an unreasonable and substantial physical obstruction of the natural flow of water, with certain exceptions;

(2) Establishing a period of time after receipt of written notice of certain violations of the State Water Code during which a violator may remedy the violation or enter into a corrective action plan with the CWRM;

(3) Amending the amount of the maximum fine for a violation; provided that CWRM has fined the violator within the five years preceding the violation and the violation causes harm to other water users, the environment, or the water source;

(4) Prohibiting the State from acquiring a fee simple interest in any artificial watercourse, including a canal or ditch, under certain circumstances but allowing the State to acquire a fee simple interest in the artificial watercourse if the Legislature provides prior approval by concurrent resolution;

(5) Deleting the provision that increases maximum fines every five years from 2030 to 2045;

(6) Changing its effective date to July 1, 2026; and

(7) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 306, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 306, H.D. 2, S.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ CHRIS LEE Chair	____________________________ MARK J. HASHEM Co-Chair
____________________________ KARL RHOADS Co-Chair	____________________________ DAVID A. TARNAS Co-Chair
____________________________ TROY N. HASHIMOTO Co-Chair	____________________________ DEE MORIKAWA Co-Chair