HB 1396 - Relating to Cesspools

• Establishes a county cesspool conversion pilot program within the Department of Health to work with each county identifying priority areas to expand sewage systems or centralized treatment systems and connect individual properties to reduce cesspools, with county progress reports due before regular sessions in 2024, 2025, and 2026.

• Creates a cesspool conversion section within the Department of Health's wastewater branch with dedicated staff to manage state financing options, conduct public outreach, inform cesspool owners of conversion options, manage federal and state grants, and facilitate partnerships with counties and private organizations.

• Requires the Department of Health to retain qualified consultants to develop a comprehensive public outreach strategy and website educating homeowners about cesspool upgrade, conversion, and connection requirements and deadlines under Act 125 (2017 mandate to convert all cesspools by January 1, 2050).

• Establishes an income tax credit for taxable years after December 31, 2023, allowing taxpayers to claim up to $10,000 ($10,000 per residential dwelling for large capacity cesspools) for qualified expenses to upgrade, convert, or connect cesspools to approved wastewater systems or sewerage systems.

• Requires sellers of residential real property to disclose in mandatory disclosure statements whether the property contains a cesspool, the cesspool's priority level according to the Hawaii cesspool hazard assessment tool, and the date by which state law requires conversion.