Committee requires sellers to disclose cesspool level on property‑sale forms, narrows bill to cesspools to avoid title issue

The committee passed HB 17‑49 HD1 on Feb. 12 with amendments requiring sellers to provide buyers with a wastewater/cesspool disclosure form and directing the Department of Health and the Real Estate Commission to develop a standardized form by Nov. 1, 2026.

Environmental and conservation groups urged clearer disclosure so buyers are informed about cesspools and the costs associated with required upgrades. Ted Nolan of the Hawaii Reef and Ocean Coalition asked the committee to ensure the disclosure distinguishes individual wastewater systems, large‑capacity cesspools and sewer connections so buyers are not surprised by upgrade obligations.

Attorney General’s office concerns and title issue: Joanna Yeh of the AG’s office advised that HD1 had broadened the bill’s subject from cesspools to all wastewater systems, potentially raising a single‑subject/title issue under the state constitution. The AG recommended reverting to the original cesspool‑focused language; the committee adopted UH’s proposed amendment to require disclosure of the level of cesspool(s) on the property and rolled back the broader wastewater language to address the title concern.

Realtor timing and forms: The Hawaii Association of Realtors said it is updating its seller disclosure form to incorporate the bill’s language and planned a May release of revised forms; members asked whether adding new details (for example, cesspool tier) would require re‑circulation of the forms and whether duplicate disclosures would cause confusion.

Committee action: The chair recommended adopting the UH amendment (add level of cesspool disclosure) and rolling back HD1’s broader wastewater language to address the title concern; the committee passed HB 17‑49 HD1 with those amendments.