SB 2022: State Water Code; CWRM; Penalties

A BILL FOR AN ACT

RELATING TO STATE WATER CODE PENALTIES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that, in 1987, the state water code was adopted to protect the precious water resources of the State.  To better enable the department of land and natural resources and commission on water resource management to carry out that mission, the legislature believes that the water code's penalties and fines must be amended and increased to serve as an effective deterrence to violators.

     The legislature also believes that increasing potential fines for water code violations will help:

     (1)  Preserve water resources by ensuring the sustainable management and conservation of limited water resources for future generations, particularly in areas facing over-extraction or misuse;

     (2)  Protect the ecosystems by safeguarding wetlands, rivers, and aquifers that depend on healthy water systems to maintain biodiversity and environmental balance;

     (3)  Promote public health and safety by preventing contamination of drinking water supplies and reducing health risks associated with waterborne diseases and pollutants;

     (4)  Promote climate change resilience by regulating water usage and protecting vulnerable water sources to address challenges posed by prolonged droughts, erratic rainfall, and rising sea levels;

     (5)  Promote economic stability by helping to avoid economic losses in agriculture, tourism, and other industries that rely heavily on consistent and clean water supplies;

     (6)  Promote equity and justice by ensuring fair access to water resources for all, including marginalized communities that may be disproportionately affected by water scarcity or poor water management;

     (7)  Increase accountability for violations to deter illegal activities, such as unauthorized diversions, pollution, or overuse of water resources, by imposing stricter penalties and fines; and

     (8)  Increase compliance with federal and state mandates to meet legal obligations under federal or state environmental protection laws, ensuring alignment with broader water management and conservation goals.

     Accordingly, the purpose of this Act is to:

     (1)  Ensure that all violators of the state water code are held accountable for their violations by adding a minimum penalty and amending the maximum penalty, with scheduled incremental increases, per violation of the state water code, and by clarifying what constitutes a separate offense; and

     (2)  Require the commission on water resource management to consider certain factors when imposing penalties.

     SECTION 2.  Section 174C-15, Hawaii Revised Statutes, is amended to read as follows:

     "§174C-15  Penalties and common law remedies.  (a)  The commission may enforce its rules and orders adopted pursuant to this chapter by suit for injunction or for damages or both.

     (b)  Any person who [violates any]:

     (1)  Violates any provision of this chapter[, or any];

     (2)  Violates any rule adopted pursuant to this chapter[, may];

     (3)  Violates any order of the commission regarding the enforcement or application of any provision of this chapter or rule adopted under this chapter;

     (4)  Fails to obtain a permit when a permit is required under this chapter;

     (5)  Fails to comply with permit conditions; or

     (6)  Fails to comply with standardized water audit requirements pursuant to Act 169, Session Laws of Hawaii 2016,

shall be subject to a fine imposed by the commission[.  Such fine shall not exceed $5,000.  For a continuing offense, each day during which the offense is committed is a separate violation.], as provided under subsection (c).  Each day that a violation exists or continues to exist may be considered a separate offense.  Penalties for continuing violations shall be assessed from the earliest known date of the violation.  The earliest known date of a violation shall be determined by the commission by a preponderance of the evidence; provided that if the earliest known date cannot be determined by a preponderance of the evidence, penalties for continuing violations shall be assessed from the earliest date the commission is made aware of the violation.

     (c)  A fine imposed pursuant to this section shall be not less than $           and shall not exceed:

     (1)  $           per violation; provided that the commission has not fined the violator within the five years preceding the violation; provided further that the violation does not cause harm to other water users, the environment, or water source; or

     (2)  $           per violation if the commission has fined the violator within the five years preceding the violation or the violation causes harm to other water users, the environment, or a water source.

     (d)  When imposing a fine, the commission shall consider factors including:

     (1)  The nature, circumstances, extent, gravity, and history of the violation and any prior violations;

     (2)  The economic benefit to the violator, or anticipated by the violator, resulting from the violation;

     (3)  The opportunity for, difficulty of, and history of any corrective action;

     (4)  The violator's good faith efforts to comply;

     (5)  The violator's degree of culpability;

     (6)  The quantity of water affected by the violation, including the quantity of water unlawfully diverted, wasted, or contaminated;

     (7)  The potential or actual harm to other water users, the environment, or water source caused by the violation; and

     (8)  Any other matters as justice may require.

     [(c)] (e)  No provision of this chapter shall bar the right of any injured person to seek other legal or equitable relief against a violator of this chapter.

     [(d)] (f)  Except as otherwise provided by law, the commission or its authorized representative by proper delegation may set, charge, and collect administrative fines [or]; may bring legal action to recover administrative fees and costs as documented by receipts or affidavit, including attorneys' fees and costs; [or] and may bring legal action to recover administrative fines, fees, and costs, including attorneys' fees and costs, or payment for damages resulting from a violation of this chapter or any rule adopted pursuant to this chapter.

     (g)  The maximum fine per violation pursuant to subsection (c)(2) shall increase to:

     (1)  $           beginning January 1, 2031;

     (2)  $           beginning January 1, 2036;

     (3)  $           beginning January 1, 2041; and

     (4)  $           beginning January 1, 2046."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050.

Report Title:

State Water Code; CWRM; Penalties

Description:

Adds a minimum penalty and maximum penalty per violation of the State Water Code.  Authorizes the Commission on Water Resource Management to consider each day that a violation exists or continues to exist a separate offense.  Establishes factors the CWRM must consider when determining the amount of the penalty.  Increases maximum fines every 5 years from 2031 to 2046.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO STATE WATER CODE PENALTIES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that in 1987, the state water code was adopted to protect the precious water resources of the State.  To better enable the department of land and natural resources and commission on water resource management to carry out that mission, the legislature believes that the water code's penalties and fines must be amended and increased to serve as an effective deterrence to violators.

     The legislature also believes that increasing potential fines for water code violations will help:

     (1)  Preserve water resources by ensuring the sustainable management and conservation of limited water resources for future generations, particularly in areas facing over-extraction or misuse;

     (2)  Protect the ecosystems by safeguarding wetlands, rivers, and aquifers that depend on healthy water systems to maintain biodiversity and environmental balance;

     (3)  Promote public health and safety by preventing contamination of drinking water supplies and reducing health risks associated with waterborne diseases and pollutants;

     (4)  Promote climate change resilience by regulating water usage and protecting vulnerable water sources to address challenges posed by prolonged droughts, erratic rainfall, and rising sea levels;

     (5)  Promote economic stability by helping to avoid economic losses in agriculture, tourism, and other industries that rely heavily on consistent and clean water supplies;

     (6)  Promote equity and justice by ensuring fair access to water resources for all, including marginalized communities that may be disproportionately affected by water scarcity or poor water management;

     (7)  Increase accountability for violations to deter illegal activities such as unauthorized diversions, pollution, or overuse of water resources by imposing stricter penalties and fines; and

     (8)  Increase compliance with federal and state mandates to meet legal obligations under federal or state environmental protection laws, ensuring alignment with broader water management and conservation goals.

     Accordingly, the purpose of this Act is to:

     (1)  Ensure that all violators of the state water code are held accountable for their violations by adding a minimum penalty and amending the maximum penalty, with scheduled incremental increases, per violation of the state water code and clarifying what constitutes a separate offense; and

     (2)  Require the commission on water resource management to consider certain factors when imposing penalties.

     SECTION 2.  Section 174C-15, Hawaii Revised Statutes, is amended to read as follows:

     "§174C-15  Penalties and common law remedies.  (a)  The commission may enforce its rules and orders adopted pursuant to this chapter by suit for injunction or for damages or both.

     (b)  Any person who [violates any]:

     (1)  Violates any provision of this chapter[, or any];

     (2)  Violates any rule adopted pursuant to this chapter[, may];

     (3)  Violates any order of the commission regarding the enforcement or application of any provision of this chapter or rule adopted under this chapter;

     (4)  Fails to obtain a permit when a permit is required under this chapter;

     (5)  Fails to comply with permit conditions; or

     (6)  Fails to comply with standardized water audit requirements pursuant to Act 169, Session Laws of Hawaii 2016,

shall be subject to a fine imposed by the commission[.  Such fine shall not exceed $5,000.  For a continuing offense, each day during which the offense is committed is a separate violation.], as provided under subsection (c).  Each day that a violation exists or continues to exist may be considered a separate offense.  Penalties for continuing violations shall be assessed from the earliest known date of the violation.  The earliest known date of a violation shall be determined by the commission by a preponderance of the evidence; provided that if the earliest known date cannot be determined by a preponderance of the evidence, penalties for continuing violations shall be assessed from the earliest date the commission is made aware of the violation.

     (c)  A fine imposed pursuant to this section shall not be less than $50 and shall not exceed:

     (1)  $5,000 per violation; provided that the commission has not fined the violator within the five years preceding the violation; provided further that the violation does not cause harm to other water users, the environment, or water source; or

     (2)  $25,000 per violation if the commission has fined the violator within the five years preceding the violation or the violation causes harm to other water users, the environment, or a water source.

     (d)  When imposing a fine, the commission shall consider factors including:

     (1)  The nature, circumstances, extent, gravity, and history of the violation and any prior violations;

     (2)  The economic benefit to the violator, or anticipated by the violator, resulting from the violation;

     (3)  The opportunity for, difficulty of, and history of any corrective action;

     (4)  The violator's good faith efforts to comply;

     (5)  The violator's degree of culpability;

     (6)  The quantity of water affected by the violation, including the quantity of water unlawfully diverted, wasted, or contaminated;

     (7)  The potential or actual harm to other water users, the environment, or water source caused by the violation; and

     (8)  Any other matters as justice may require.

     [(c)] (e)  No provision of this chapter shall bar the right of any injured person to seek other legal or equitable relief against a violator of this chapter.

     [(d)] (f)  Except as otherwise provided by law, the commission or its authorized representative by proper delegation may set, charge, and collect administrative fines [or]; may bring legal action to recover administrative fees and costs as documented by receipts or affidavit, including attorneys' fees and costs; [or] and may bring legal action to recover administrative fines, fees, and costs, including attorneys' fees and costs, or payment for damages resulting from a violation of this chapter or any rule adopted pursuant to this chapter.

     (g)  The maximum fine per violation pursuant to subsection (c)(2) shall increase to:

     (1)  $30,000 beginning January 1, 2031;

     (2)  $35,000 beginning January 1, 2036;

     (3)  $40,000 beginning January 1, 2041; and

     (4)  $45,000  beginning January 1, 2046."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

Report Title:

State Water Code; CWRM; Penalties

Description:

Adds a minimum penalty and maximum penalty per violation of the State Water Code and authorizes the Commission on Water Resource Management to consider each day that a violation exists or continues to exist a separate offense.  Establishes factors the CWRM must consider when determining the amount of the penalty.  Increases maximum fines every 5 years from 2031 to 2046.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 3033

Honolulu, Hawaii

RE:     S.B. No. 2022

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committees on Judiciary and Ways and Means, to which was referred S.B. No. 2022, S.D. 1, entitled:

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

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Add a minimum penalty and maximum penalty per violation of the State Water Code;

     (2)  Authorize the Commission on Water Resource Management to consider each day that a violation exists or continues to exist a separate offense;

     (3)  Establish factors that the Commission on Water Resource Management must consider when determining the amount of the penalty; and

     (4)  Increase maximum fines every five years from 2031 to 2046.

     Your Committees received testimony in support of this measure from the Department of Land and Natural Resources and Ulupono Initiative.

     Your Committees received comments on this measure from Agribusiness Development Corporation, Board of Water Supply of the City and County of Honolulu, and Office of the Mayor of the County of Maui.

     Your Committees find that the State Water Code was adopted to protect and preserve the State's irreplaceable water resources.  However, existing penalties do not accurately reflect the value of the State's water resources and do not effectively deter the exploitation and misuse of these resources.  This measure will impose more stringent fines and penalties on violators of the State Water Code, allowing the Commission on Water Resource Management to better protect the State's water resources.

     As affirmed by the records of votes of the members of your Committees on Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2022, S.D. 1, and recommend that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Ways and Means,

STAND. COM. REP. NO. 2506

Honolulu, Hawaii

RE:     S.B. No. 2022

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Water, Land, Culture and the Arts, to which was referred S.B. No. 2022 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Add a minimum penalty and maximum penalty per violation of the State Water Code;

     (2)  Authorize the Commission on Water Resource Management to consider each day that a violation exists or continues to exist as a separate offense;

     (3)  Establish factors the Commission on Water Resource Management must consider when determining the amount of the penalty; and

     (4)  Increase maximum fines every five years from 2031 to 2046.

     Your Committee received testimony in support of this measure from the Department of Land and Natural Resources, Ulupono Initiative, and one individual.

     Your Committee received comments on this measure from the Agribusiness Development Corporation and Honolulu Board of Water Supply.

     Your Committee finds that, to assist the Department of Land and Natural Resources and Commission on Water Resource Management in their mission to protect the State's water resources, the State Water Code's penalties and fines must be amended and increased to serve as an effective deterrence to violators.  This measure will therefore strengthen the State Water Code by enabling the Commission on Water Resource Management to better protect the State's water resources by imposing harsher fines and penalties on violators of the State Water Code.

Accordingly, your Committee has amended this measure by:

     (1)  Changing the amount of each fine specified in the measure to an unspecified amount;

     (2)  Inserting an effective date of July 1, 2050, to encourage further discussion;

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

     Your Committee notes that this measure, as amended, contains fines for unspecified amounts.  Should your Committee on Judiciary choose to deliberate on this measure, your Committee respectfully requests that it consider inserting appropriate amounts.

     As affirmed by the record of votes of the members of your Committee on Water, Land, Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2022, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2022, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Water, Land, Culture and the Arts,