H.B. 1396 Summary

• Establishes a county cesspool conversion pilot program within the Department of Health to work with each county identifying priority areas for expanding sewage systems or centralized treatment systems to eliminate cesspools, with counties required to report progress to the legislature by 2024, 2025, and 2026.

• Creates a cesspool conversion section within the Department of Health's wastewater branch to manage state financing options, public outreach, federal grants, and partnerships for statewide cesspool conversion efforts.

• Requires the Department of Health to retain consultants to develop comprehensive public outreach strategies and a website educating homeowners about cesspool conversion requirements, options, and deadlines under Act 125, which mandates all cesspools be upgraded, converted, or connected to sewerage systems by January 1, 2050.

• Re-establishes an income tax credit for taxable years beginning after December 31, 2023, allowing taxpayers up to $10,000 per qualified cesspool (or $10,000 per residential dwelling for large capacity cesspools) for costs of upgrading, converting, or connecting cesspools to approved wastewater or sewerage systems.

• Requires sellers of residential real property to disclose in mandatory disclosures whether a property contains a cesspool, its priority level according to the Hawaii cesspool hazard assessment tool, and the date by which the cesspool must be upgraded or converted by law (effective November 1, 2023).