STAND. COM. REP. NO. 879

Honolulu, Hawaii

RE: S.B. No. 1370

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1370, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CESSPOOLS,"

begs leave to report as follows:

The purpose and intent of this measure is to reduce the number of cesspools on Hawaiian home lands.

More specifically, this measure:

(1) Establishes a grant program and special fund to assist lessees on Hawaiian home lands with cesspool upgrade, conversion, or connection costs;

(2) Establishes that a recipient of a cesspool upgrade grant shall not be eligible for the cesspool upgrade, conversion, or connection income tax credit; and

(3) Appropriates moneys for the grant program.

Your Committee received written comments in support of this measure from the Department of Hawaiian Home Lands, Department of Health, Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii, One World One Water, and two individuals.

Your Committee received written comments on this measure from the Department of Budget and Finance, Department of Taxation, and Tax Foundation of Hawaii.

Your Committee finds that section 342D-72, Hawaii Revised Statutes, requires that every cesspool in the State, other than those exempted by the Director of Health, be either upgraded or converted to a septic system or aerobic treatment unit system or connected to a sewerage system prior to January 1, 2050. This measure is intended to provide financial assistance to lessees on Hawaiian home lands who might not otherwise be able to afford expensive cesspool upgrade, conversion, or connection costs.

Your Committee has amended this measure by:

(1) Deleting the provisions that establish and appropriate moneys to and from the special fund;

(2) Making a general fund appropriation to implement the grant program;

(3) Changing the appropriation to an unspecified amount; and

(4) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1370, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1370, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair