SB 2601: SPO; Procurement; Penalties; Certification of Available Funds; Threshold Amount; Chief Procurement Officer; Positions; Appropriation

A BILL FOR AN ACT

RELATING TO PROCUREMENT.

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

     SECTION 1.  The legislature finds that all procurement activities should be conducted in a manner that ensures transparency, fiscal responsibility, and accountability.

     The legislature further finds that section 103D-309, Hawaii Revised Statutes, requires a certification that there are sufficient funds available to cover the cost of a contract before that contract becomes binding.  However, this section does not include a specific threshold of funds that must be available, nor does it adequately address the disposition of contract awards that exceed appropriated amounts.  The legislature therefore finds that this law should be amended to address these issues by establishing a threshold amount and requiring contracts that exceed that amount to be approved by the chief procurement officer.

     The legislature additionally finds that the existing requirement that the state procurement office administrator provide written attestation for recommendations and solicitations under section 103D-309, Hawaii Revised Statutes, is necessary to ensure proper oversight of state resources.  Accordingly, the legislature affirms this requirement.

     Therefore, the purpose of this Act is to promote transparency, fiscal responsibility, and fair procurement practices by:

     (1)  Amending criminal penalties under the Hawaii public procurement code to provide that a person who intentionally violates the code is subject to prosecution for a misdemeanor in cases of egregious violations of the code; and

     (2)  Ensuring that awarded contracts are supported by sufficient appropriations by requiring chief procurement officer approval for any contract that exceeds fifteen per cent of the amount of the available appropriation or balance of an appropriation before the contract becomes binding.

     SECTION 2.  Section 103D-106, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Any person who intentionally violates this chapter or any rules adopted pursuant to this chapter [shall be guilty of a misdemeanor and] shall be:

     (1)  Subject to removal from office;

     (2)  Liable to the State or the appropriate county for any sum paid by it in connection with the violation, and that sum, together with interest and costs, shall be recoverable by the State or county; [and]

     (3)  Subject to imposition of an administrative fine under subsection (b)[.]; and

     (4)  Subject to prosecution for a misdemeanor in cases of egregious violations of the procurement code."

     SECTION 3.  Section 103D-309, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Contracts awarded pursuant to section 103D-302, 103D‑303, or 103D-306, shall neither be binding nor have any force and effect of law unless the comptroller, the director of finance of a county, or the respective chief financial officers of the department of education, the judiciary, or the legislative branches of the State or county, as the case may be, endorses thereon a certificate that there is an appropriation or balance of an appropriation over and above all outstanding contracts, sufficient to cover the amount required by the contract; provided that [if]:

     (1)  If the contract is a multi-term contract, the comptroller, director of finance, or chief financial officer shall only be required to certify that there is an appropriation or balance of an appropriation over and above all outstanding contracts[,] that is sufficient to cover the amount required to be paid under the contract during the fiscal year or remaining portion of the fiscal year of each term of the multi‑year contract; [provided further that the]

     (2)  If the awarded contract amount exceeds fifteen per cent of the amount of the available appropriation or balance of an appropriation, the contract shall not become binding for the purposes of this section unless approved by the chief procurement officer; and

     (3)  The administrator of the state procurement office shall attest in writing to any recommendation or solicitations.

This section shall not apply to any contract under which the total amount to be paid to the contractor cannot be accurately estimated at the time the contract is to be awarded, or to any contract for which consideration is in kind or forbearance, or to any contract awarded pursuant to section 103D-306 that is a one-time payment through a purchase order."

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for the state procurement office to carry out the purposes of this Act, including the establishment and hiring of       permanent full-time equivalent (     FTE) positions.

     The sum appropriated shall be expended by the state procurement office for the purposes of this Act.

     SECTION 5.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 3000.

Report Title:

SPO; Procurement; Penalties; Certification of Available Funds; Threshold Amount; Chief Procurement Officer; Positions; Appropriation

Description:

Amends criminal penalties under the Hawaii Public Procurement Code by providing that a person who intentionally violates the code is subject to prosecution for a misdemeanor in cases of egregious violations of the Code.  Ensures that awarded contracts are supported by sufficient appropriations by requiring a contract amount that exceeds fifteen per cent of the amount of the appropriation or balance of an appropriation to be approved by the Chief Procurement Officer to become binding.  Establishes positions within the State Procurement Office.  Appropriates funds.  Effective 7/1/3000.  (HD1)

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 PROCUREMENT.

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

     SECTION 1.  The legislature finds that all procurement activities should be conducted in a manner that ensures transparency, fiscal responsibility, and accountability.

     The legislature further finds that section 103D-309, Hawaii Revised Statutes, requires a certification that there are sufficient funds available to cover the cost of a contract before that contract becomes binding.  However, this section does not include a specific threshold of funds that must be available, nor does it adequately address the disposition of contract awards that exceed appropriated amounts.  The legislature therefore finds that this law should be amended to address these issues by establishing a threshold amount and requiring contracts that exceed that amount to be approved by the chief procurement officer.

     The legislature additionally finds that the current requirement that the state procurement office administrator provide written attestation for recommendations and solicitations under section 103D-309, Hawaii Revised Statutes, is necessary to ensure proper oversight of state resources.  Accordingly, the legislature affirms this requirement.

     Therefore, the purpose of this Act is to promote transparency, fiscal responsibility, and fair procurement practices by:

     (1)  Ensuring that awarded contracts are supported by sufficient appropriations by requiring that an awarded contract amount not exceed ten per cent of the amount of the available appropriation or balance of an appropriation;

     (2)  Requiring a contract that exceeds the ten per cent threshold to be approved by the chief procurement officer to become binding; and

     (3)  Amending criminal penalties under the Hawaii public procurement code to provide that a person who intentionally violates the code is guilty of:

          (A)  A petty misdemeanor for the first offense; and

          (B)  A misdemeanor for any subsequent offense.

     SECTION 2.  Section 103D-106, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Any person who intentionally violates this chapter or any rules adopted pursuant to this chapter [shall be guilty of a misdemeanor and] shall be:

     (1)  Subject to removal from office;

     (2)  Liable to the State or the appropriate county for any sum paid by it in connection with the violation, and that sum, together with interest and costs, shall be recoverable by the State or county; [and]

     (3)  Subject to imposition of an administrative fine under subsection (b)[.]; and

     (4)  Guilty of:

          (A)  A petty misdemeanor for the first offense; and

          (B)  A misdemeanor for any subsequent offense."

     SECTION 3.  Section 103D-309, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Contracts awarded pursuant to section 103D-302, 103D‑303, or 103D-306, shall neither be binding nor have any force and effect of law unless the comptroller, the director of finance of a county, or the respective chief financial officers of the department of education, the judiciary, or the legislative branches of the State or county, as the case may be, endorses thereon a certificate that there is an appropriation or balance of an appropriation over and above all outstanding contracts, sufficient to cover the amount required by the contract; provided that [if]:

     (1)  The awarded contract amount does not exceed ten per cent of the amount of the available appropriation or balance of an appropriation; provided further that a contract that exceeds the ten per cent threshold shall require approval from the chief procurement officer to become binding for the purposes of this section; and

     (2)  If the contract is a multi-term contract, the comptroller, director of finance, or chief financial officer shall only be required to certify that there is an appropriation or balance of an appropriation over and above all outstanding contracts[,] that is sufficient to cover the amount required to be paid under the contract during the fiscal year or remaining portion of the fiscal year of each term of the multi‑year contract; [provided further that the] and

     (3)  The administrator of the state procurement office shall attest in writing to any recommendation or solicitations.

This section shall not apply to any contract under which the total amount to be paid to the contractor cannot be accurately estimated at the time the contract is to be awarded, or to any contract for which consideration is in kind or forbearance, or to any contract awarded pursuant to section 103D-306 that is a one-time payment through a purchase order."

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for the state procurement office to carry out the purposes of this Act, including the establishment and hiring of       permanent full-time equivalent (     FTE) positions.

     The sum appropriated shall be expended by the state procurement office for the purposes of this Act.

     SECTION 5.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2525.

Report Title:

SPO; Procurement; Certification of Available Funds; Threshold Amount; Chief Procurement Officer; Penalties; Appropriation; Positions

Description:

Ensures that awarded contracts are supported by sufficient appropriations by requiring that the contract amount does not exceed 10% of the amount of the appropriation or balance of an appropriation that is available to cover the cost of the contract.  Requires a contract that exceeds the 10% threshold to be approved by the Chief Procurement Officer.  Amends criminal penalties under the Hawaii Public Procurement Code by providing that a person who intentionally violates the code is guilty of a petty misdemeanor for the first offense and a misdemeanor for any subsequent offense.  Establishes positions within the State Procurement Office.  Appropriates funds.  Effective 7/1/2525.  (SD2)

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 PROCUREMENT.

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

     SECTION 1.  The legislature finds that all procurement activities should be conducted in a manner that ensures transparency, fiscal responsibility, and accountability.

     The legislature further finds that section 103D-309, Hawaii Revised Statutes, requires a certification that there are sufficient funds available to cover the cost of a contract before that contract becomes binding.  However, this section does not include a specific threshold of funds that must be available, nor does it adequately address the disposition of contract awards that exceed appropriated amounts.  The legislature therefore finds that this law should be amended to address these issues by establishing a threshold amount and requiring contracts that exceed that amount to be approved by the chief procurement officer.

     The legislature additionally finds that the current requirement that the state procurement office administrator provide written attestation for recommendations and solicitations under section 103D-309, Hawaii Revised Statutes, is necessary to ensure proper oversight of state resources.  Accordingly, the legislature affirms this requirement.

     Therefore, the purpose of this Act is to promote transparency, fiscal responsibility, and fair procurement practices by:

     (1)  Ensuring that awarded contracts are supported by sufficient appropriations by requiring that an awarded contract amount not exceed ten per cent of the amount of the available appropriation or balance of an appropriation;

     (2)  Requiring a contract that exceeds the ten per cent threshold to be approved by the chief procurement officer to become binding; and

     (3)  Limiting the application of criminal penalties under the Hawaii public procurement code to egregious violations of the code and rules adopted thereunder.

     SECTION 2.  Section 103D-106, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Any person who intentionally violates this chapter or any rules adopted pursuant to this chapter [shall be guilty of a misdemeanor and] shall be:

     (1)  Subject to removal from office;

     (2)  Liable to the State or the appropriate county for any sum paid by it in connection with the violation, and that sum, together with interest and costs, shall be recoverable by the State or county; [and]

     (3)  Subject to imposition of an administrative fine under subsection (b)[.]; and

     (4)  Subject to prosecution for a misdemeanor in cases of egregious violations."

     SECTION 3.  Section 103D-309, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Contracts awarded pursuant to section 103D-302, 103D‑303, or 103D-306, shall neither be binding nor have any force and effect of law unless the comptroller, the director of finance of a county, or the respective chief financial officers of the department of education, the judiciary, or the legislative branches of the State or county, as the case may be, endorses thereon a certificate that there is an appropriation or balance of an appropriation over and above all outstanding contracts, sufficient to cover the amount required by the contract; provided that [if]:

     (1)  The awarded contract amount does not exceed ten per cent of the amount of the available appropriation or balance of an appropriation; provided further that a contract that exceeds the ten per cent threshold shall require approval from the chief procurement officer to become binding for the purposes of this section; and

     (2)  If the contract is a multi-term contract, the comptroller, director of finance, or chief financial officer shall only be required to certify that there is an appropriation or balance of an appropriation over and above all outstanding contracts[,] that is sufficient to cover the amount required to be paid under the contract during the fiscal year or remaining portion of the fiscal year of each term of the multi‑year contract; [provided further that the] and

     (3)  The administrator of the state procurement office shall attest in writing to any recommendation or solicitations.

This section shall not apply to any contract under which the total amount to be paid to the contractor cannot be accurately estimated at the time the contract is to be awarded, or to any contract for which consideration is in kind or forbearance, or to any contract awarded pursuant to section 103D-306 that is a one-time payment through a purchase order."

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for the state procurement office to carry out the purposes of this Act, including the establishment and hiring of       permanent full-time equivalent (     FTE) positions.

     The sum appropriated shall be expended by the state procurement office for the purposes of this Act.

     SECTION 5.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2525.

Report Title:

SPO; Procurement; Certification of Available Funds; Threshold Amount; Chief Procurement Officer; Penalties; Appropriation; Positions

Description:

Ensures that awarded contracts are supported by sufficient appropriations by requiring that the contract amount does not exceed 10% of the amount of the appropriation or balance of an appropriation that is available to cover the cost of the contract.  Requires a contract that exceeds the 10% threshold to be approved by the Chief Procurement Officer.  Limits the application of criminal penalties under the Hawaii Public Procurement Code to egregious violations of the Code and any rules adopted thereunder.  Establishes positions within the State Procurement Office.  Appropriates funds.  Effective 7/1/2525.  (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 PROCUREMENT.

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

     SECTION 1.  The legislature finds that all procurement activities should be conducted in a manner that ensures transparency, fiscal responsibility, and accountability.

     The legislature further finds that section 103D-309, Hawaii Revised Statutes, requires a certification that there are sufficient funds available to cover the cost of a contract before that contract becomes binding.  However, this section does not include a specific threshold of funds that must be available, nor does it adequately address the disposition of contract awards that exceed appropriated amounts.  The legislature therefore finds that this law should be amended to address these issues by establishing a threshold amount and requiring contracts that exceed that amount to be approved by the chief procurement officer.

     The legislature finds that the current requirement that the state procurement office administrator provide written attestation for recommendations and solicitations under section 103D-309, Hawaii Revised Statutes, is necessary to ensure proper oversight of state resources.  Accordingly, the legislature affirms this requirement.

     The purpose of this Act is to promote transparency, fiscal responsibility, and fair procurement practices by:

     (1)  Ensuring that awarded contracts are supported by sufficient appropriations by requiring that an awarded contract amount not exceed ten per cent of the amount of the available appropriation or balance of an appropriation;

     (2)  Requiring a contract that exceeds the ten per cent threshold to be approved by the chief procurement officer to become binding; and

     (3)  Repealing criminal penalties in the Hawaii public procurement code, thereby requiring penalties to be imposed through administrative processes.

     SECTION 2.  Section 103D-106, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Any person who intentionally violates this chapter or any rules adopted pursuant to this chapter [shall be guilty of a misdemeanor and] shall be:

     (1)  Subject to removal from office;

     (2)  Liable to the State or the appropriate county for any sum paid by it in connection with the violation, and that sum, together with interest and costs, shall be recoverable by the State or county; and

     (3)  Subject to imposition of an administrative fine under subsection (b)."

     SECTION 3.  Section 103D-309, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Contracts awarded pursuant to section 103D-302, 103D-303, or 103D-306, shall neither be binding nor have any force and effect of law unless the comptroller, the director of finance of a county, or the respective chief financial officers of the department of education, the judiciary, or the legislative branches of the State or county, as the case may be, endorses thereon a certificate that there is an appropriation or balance of an appropriation over and above all outstanding contracts, sufficient to cover the amount required by the contract; provided that [if]:

     (1)  The awarded contract amount does not exceed ten per cent of the amount of the available appropriation or balance of an appropriation; provided further that a contract that exceeds this ten per cent threshold shall require approval from the chief procurement officer to become binding for the purposes of this section; and

     (2)  If the contract is a multi-term contract, the comptroller, director of finance, or chief financial officer shall only be required to certify that there is an appropriation or balance of an appropriation over and above all outstanding contracts[,] that is sufficient to cover the amount required to be paid under the contract during the fiscal year or remaining portion of the fiscal year of each term of the multi-year contract; [provided further that the] and

     (3)  The administrator of the state procurement office shall attest in writing to any recommendation or solicitations.

This section shall not apply to any contract under which the total amount to be paid to the contractor cannot be accurately estimated at the time the contract is to be awarded, or to any contract for which consideration is in kind or forbearance, or to any contract awarded pursuant to section 103D-306 that is a one-time payment through a purchase order."

     SECTION 4.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect upon its approval.

Report Title:

Procurement; Certification of Available Funds; Threshold Amount; Chief Procurement Officer; Penalties

Description:

Ensures that awarded contracts are supported by sufficient appropriations by requiring that the contract amount does not exceed 10% of the amount of the appropriation or balance of an appropriation that is available to cover the cost of the contract.  Requires a contract that exceeds the 10% threshold to be approved by the chief procurement officer.  Repeals criminal penalties in the Hawaii Public Procurement Code.

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. 2955

Honolulu, Hawaii

RE:     S.B. No. 2601

        S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committees on Ways and Means and Judiciary, to which was referred S.B. No. 2601, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

beg leave to report as follows:

     The purpose and intent of this measure is to ensure that procurement activities are conducted in a fiscally responsible manner.

     Specifically, this measure:

     (1)  Prohibits an awarded contract amount from exceeding ten percent of the amount of the available appropriation or balance of an appropriation;

     (2)  Requires any contract that exceeds the ten percent threshold in paragraph (1) to obtain approval from the chief procurement officer to become binding; and

     (3)  Limits the application of criminal penalties under the Hawaii Procurement Code to egregious violations.

     Your Committees received written comments on this measure from the State Procurement Office.

     Your Committees find that section 103D-309, Hawaii Revised Statutes, requires a certification that sufficient funds are available to cover the cost of a contract before the contract becomes binding, but does not include a specific threshold of funds that must be available.  Your Committees believe that establishing a specific threshold will promote fiscal responsibility and accountability in public procurement.

     Your Committees have amended this measure by:

     (1)  Deleting language that would have limited criminal penalties to egregious violations of the Hawaii Public Procurement Code; and

     (2)  Providing instead that persons who intentionally violate the Hawaii Public Procurement Code shall be guilty of:

          (A)  A petty misdemeanor for the first offense; and

          (B)  A misdemeanor for any subsequent offense.

     As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2601, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 2601, S.D. 2.

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

STAND. COM. REP. NO. 2472

Honolulu, Hawaii

RE:     S.B. No. 2601

        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 Government Operations, to which was referred S.B. No. 2601 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Ensure that awarded contracts are supported by sufficient appropriations by requiring that the contract amount does not exceed ten percent of the amount of the appropriation or balance of an appropriation that is available to cover the cost of the contract;

     (2)  Require a contract that exceeds the ten percent threshold to be approved by the Chief Procurement Officer; and

     (3)  Repeal criminal penalties in the Hawaii Public Procurement Code.

     Your Committee received comments on this measure from the State Procurement Office.

     Your Committee finds that the Hawaii Public Procurement Code, specifically, section 103D-309, Hawaii Revised Statutes, promotes fiscal responsibility and effectively prevents the over-obligation of appropriated funds by requiring certification that sufficient appropriated funds are available to cover the payments under a contract before that contract is awarded through competitive sealed bidding.  However, your Committee further finds that this section does not specify a threshold for the funds that must be available or adequately address the disposition of contract awards that exceed appropriated amounts.  This measure addresses both concerns by setting the threshold at ten percent of the amount or balance of the appropriation and requiring the Chief Procurement Officer to approve any contract that exceeds the threshold, while also repealing criminal penalties in the Hawaii Public Procurement Code. 

     Your Committee acknowledges the concern raised in testimony by the State Procurement Office that repealing criminal penalties in the Hawaii Public Procurement Code may create uncertainty regarding how, when, and to whom the penalties will be assessed through the administrative processes.  Your Committee received testimony from the State Procurement Office expressing concern that implementing this measure as introduced may be difficult because requiring review of contracts with cost overruns of ten percent or more could produce a voluminous workload.  Your Committee finds that, although the State Procurement Office indicated it could manage these duties if the threshold were increased to fifteen percent or more, doing so could narrow the scope of oversight to a smaller subset of contracts than the Legislature intended.  Accordingly, your Committee recommends that your Committee on Ways and Means, should it choose to deliberate on this measure, consider including a general fund appropriation and an additional full-time equivalent (FTE) position to support implementation of this measure while maintaining the ten percent overrun threshold. 

     Your Committee also notes the State Procurement Office's comments that the existence of the misdemeanor provision reinforces the seriousness of compliance with the Hawaii Public Procurement Code and serves as an important deterrent to intentional, egregious violators.  Therefore, amendments to this measure are necessary to address these comments.

     Accordingly, your Committee has amended this measure by:

     (1)  Clarifying that any person who violates the Hawaii Public Procurement Code or any rules adopted thereunder is subject to prosecution for a misdemeanor in cases of egregious violations;

     (2)  Inserting a blank appropriation amount for the State Procurement Office to carry out the purpose of the measure, including the establishment and hiring of an unspecified number of positions;

     (3)  Inserting an effective date of July 1, 2525, to encourage further discussion; and

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

     Your Committee notes that this measure, as amended, contains an appropriation for an unspecified amount and an unspecified amount of full-time equivalent positions.  Should your Committees on Ways and Means and Judiciary choose to deliberate on this measure, your Committee respectfully requests that they consider inserting an appropriate amount and number for the appropriation and positions.

     As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2601, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2601, S.D. 1, and be referred to your Committees on Ways and Means and Judiciary.

Respectfully submitted on behalf of the members of the Committee on Government Operations,