SB 2778: State Ethics Commission; Governor; Lieutenant Governor; Hawaii State Legislature; Executive Agencies; Securities; Trading; Acquisition; Ownership; Prohibited; Penalties; Fines

A BILL FOR AN ACT

RELATING TO ETHICS.

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

     SECTION 1.  Chapter 84, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part     .  placement of certain assets of officials of the legislature and their spouses and dependent children in blind trusts

     §84-A  Definitions.  As used in this part:

     "Blind trust" means a trust agreement where neither the trustor nor the beneficiaries have any control or influence over, or knowledge of, the assets in the trust, and which complies with the definition of "qualified blind trust" in the Ethics in Government Act of 1978(5 U.S.C. 13104(f)), as amended.

     "Commission" means the state ethics commission.

     "Commodity" has the same meaning as defined in section 127A-30.

     "Covered investment" means:

     (1)  An investment in a security, commodity, or future; and

     (2)  Any economic interest comparable to an interest described in paragraph (1) that is acquired through synthetic means, including the use of a derivative which includes an option, warrant, or other similar means.

"Covered investment" includes an investment or economic interest described in paragraphs (1) and (2) that is held directly or in which an individual has an indirect, beneficial, or economic interest through an investment fund; trust that is not a blind trust; employee benefit plan; or a deferred compensation plan, including a carried interest or other agreement tied to the performance of an investment, other than a fixed cash payment. "Covered investment" does not include a diversified mutual fund, including any holdings of a diversified mutual fund; a diversified exchange-traded fund, including any holdings of a diversified exchange-traded fund; a United States Treasury bill, note, or bond; compensation from the primary occupation of a spouse or dependent child of an official of the legislature; or any investment fund held in a federal, state, or county government employee retirement plan.

     "Current official" means an official who is in service as of June 30, 2026.

     "Dependent child" means a person who is younger than the age of nineteen and is a dependent, as defined in section 152 of the Internal Revenue Code of 1986, as amended, of an official of the legislature.

     "Diversified" means a fund, trust, or plan that does not have a stated policy of concentrating its investments in any industry, business, single country other than the United States, or bonds of a single state.

     "Future" means:

     (1)  A contract of sale for future delivery of a single security or of a narrow-based security index, including any interest therein or based on the value thereof; and

     (2)  Any other contract for the sale of a commodity for future delivery.

"Future" does not include any agreement, contract, or transaction excluded from title 7 United States Code section 2(c), (d), (f), or (g).

     "Initial property" means an asset or financial interest transferred to a blind trust by, or on behalf of, an interested party or a relative of an interested party, regardless of whether the asset or financial interest is transferred to the blind trust on or after the date of establishment of the blind trust.

     "Interested party" means a reporting individual or the spouse or minor dependent child of the reporting individual.

     "New official" means a person who begins service as an official on or after July 1, 2026.

     "Official" means the governor, lieutenant governor, officials of the legislature, and directors of the state departments and their deputies, regardless of the titles by which the foregoing persons are designated; provided that for the department of the attorney general, "official" means the attorney general and the first deputy attorney general.

     "Security" means any note; stock; treasury stock; security future; security-based swap; bond; debenture; certificate of interest or participation in any profit-sharing agreement or in any oil, gas, or other mineral royalty or lease; collateral-trust certificate; preorganization certificate or subscription; transferable share; investment contract; voting-trust certificate; certificate of deposit for a security; any put, call, straddle, option or privilege on any security, certificate of deposit, or group or index of securities, including any interest therein or based on the value thereof; any put, call, straddle, option, or privilege entered into a national securities exchange relating to foreign currency, or in general, any instrument commonly known as a security; or any certificate of interest or participation in, temporary or interim certificate for, receipt for, or warrant or right to subscribe to or purchase, any of the foregoing.  "Security" does not include currency or any note, draft, bill of exchange, or banker's acceptance that has a maturity at the time of issuance not more than nine months, exclusive of days of grace, or any renewal thereof the maturity of which is likewise limited.

     §84-B  Placement of certain assets in blind trusts; required; current officials; extensions.  (a)  Beginning August 1, 2026, each current official shall submit to the commission a certification that:

     (1)  Neither the official nor any spouse or dependent child of the official owns a covered investment; or

     (2)  If the official or spouse or dependent child of the official  owns a covered investment, the owner of the covered investment shall:

          (A)  Divest each covered investment owned by the official or any spouse or dependent child of the official; or

          (B)  Place each covered investment owned by the official or any spouse or dependent child of the official in a blind trust, including by the establishment of a blind trust if necessary; and

provided that an investment that achieves compliance with applicable environmental, social, and governance criteria shall not be considered to be a covered investment solely because of that compliance.

     (b)  Beginning October 1, 2026, each current official shall divest or place in a blind trust, or cause to be divested or placed in a blind trust, each covered investment owned by the official or a spouse or dependent child of the official; provided that the official or spouse or dependent child of the official shall be required to divest a covered investment only if:

     (1)  The official or spouse or dependent child of the official is unable to place the covered investment in a blind trust before July 1, 2027; and

     (2)  The official or spouse or dependent child of the official fails to obtain an extension pursuant to subsection (c).

     (c)  If a current official or spouse or dependent child of the official is unable to place a covered investment in a blind trust before October 1, 2026, the official or spouse or dependent child of the official may request an extension from the commission.  The commission may grant one or more extensions to the official or spouse or dependent child of the official; provided that:

     (1)  The total period of time covered by all extensions granted to the official or spouse or dependent child of the official for the covered investment shall not exceed one hundred eighty days; and

     (2)  The period covered by a single extension shall not exceed forty-five days.

     §84-C  New officials; covered interests; placement in blind trust; required; extensions.

     (a)  A new official shall submit to the commission within thirty days of the date that the person becomes an official of the legislature a certification that:

     (1)  Neither the official nor any spouse or dependent child of the official owns a covered investment; or

     (2)  If the new official or any spouse or dependent child of the official owns a covered investment, the owner of the covered investment shall:

          (A)  Divest each covered investment owned by the official or any spouse or dependent child of the official; or

          (B)  Place each covered investment owned by the official or any spouse or dependent child of the official in a blind trust, including by the establishment of a blind trust if necessary; and

     (b)  A new official shall divest or place in a blind trust, or cause to be divested or placed in a blind trust, each covered investment owned by the official or a spouse or dependent child of the official within one hundred twenty days of the date that the person becomes an official; provided that the current official or spouse or dependent child of the official shall be required to divest a covered investment only if:

     (1)  The official or spouse or dependent child of the official is unable to place the covered investment in a blind trust within the period described in this subsection; and

     (2)  The official or spouse or dependent child of the official fails to obtain an extension pursuant to subsection (c).

     (c)  If a new official or spouse or dependent child of the official is unable to place a covered investment in a blind trust within the period described in subsection (b), the official or spouse or dependent child of the official may request an extension from the commission.  The commission may grant one or more extensions to the official or spouse or dependent child of the official; provided that:

     (1)  The total period of time covered by all extensions granted to the official or spouse or dependent for the covered investment shall not exceed one hundred eighty days; and

     (2)  The period covered by a single extension shall not exceed forty-five days.

     §84-D  Acquisitions of covered interests during service; prohibited.  No official or any spouse or dependent child of an official shall acquire a covered investment during the official's term in office.

     §84‑E  Inheritance of covered interest; placement in blind trust; required; extensions.  (a)  An official or any spouse or dependent child of an official who inherits a covered investment shall divest or place the covered investment in a blind trust within one hundred twenty days from the date that the covered investment is inherited.

     (b)  If an official or a spouse or dependent child of an official is unable to divest or place a covered investment in a blind trust within the period described in subsection (a), the official or spouse or dependent child of the official may request an extension from the commission.  The commission may grant one or more extensions to the official or spouse or dependent child of the official; provided that:

     (1)  The total period of time covered by all extensions granted to the official or spouse or dependent child of the official for the covered investment shall not exceed one hundred eighty days; and

     (2)  The period covered by a single extension shall not exceed forty-five days.

     §84-F  Mingling of assets; blind trust.  Any spouse or dependent child of an official may place a covered investment in a blind trust established by the official.

     §84-G  Separation from service; cooling-off period; required.  During the period beginning on the date on which a person becomes an official and ending on the date that is one hundred eighty days after the date on which the person ceases to serve as an official, the official and any spouse or dependent child of the official shall not:

     (1)  Dissolve any blind trust in which a covered investment has been placed pursuant to sections 84-B, 84-C, 84-E, and 84-F; or

     (2)  Except as provided in this part, control a covered investment.

     §84-H  Public reports; transparency.  The commission shall make available to the public on its website:

     (1)  A copy of:

          (A)  Each certification submitted to the commission under section 84-B(a) or 84-C(a);

          (B)  Each blind trust agreement of each official;

          (C)  Each notice and other documentation received by the commission under section 84-I; and

          (D)  Each notice, rule, and other documentation issued or adopted by the commission under sections 84-J and 84-K;

     (2)  A schedule of all assets placed in a blind trust by each official and interested party; and

     (3)  A description of each extension granted and each penalty imposed by the commission pursuant to this part.

     §84-I  Blind trusts; trustees; officials; requirements.  (a)  Each trustee of a blind trust established by an official shall submit to the official and the commission a written notice when the trustee:

     (1)  Learns that:

          (A)  An interested party has obtained knowledge of any trust property other than the initial property of the blind trust; or

          (B)  The value of the initial property of the blind trust is less than $          ; or

     (2)  Divests any initial property of the blind trust.

     (b)  Each official who is a beneficiary of a blind trust shall submit to the commission:

     (1)  A copy of the executed blind trust agreement no later than thirty days from the date of the execution;

     (2)  A list of each asset and each financial interest transferred to the blind trust by an interested party no later than thirty days from the date of the transfer;

     (3)  A copy of each notice received by the official under subsection (a) no later than thirty days from the date of its receipt;

     (4)  A written notice that an interested party has obtained knowledge of any holding of the blind trust no later than thirty days from the date on which the official discovered that the knowledge had been obtained; and

     (5)  A written notice of dissolution of the blind trust no later than thirty days from the date of its dissolution.

     §84-J  Enforcement; penalties.  (a)  The commission shall provide written notice, including for the potential imposition of civil penalties under subsection (b), to an official who fails to:

     (1)  Submit a certification to the commission pursuant to section 84-B(a) or 84-C(a) by the required deadline; or

     (2)  Place one or more covered interest owned by the official or any spouse or dependent child of the official in a blind trust by the required deadline.

     (b)  The commission shall impose a fine of $           on the official to whom a notice is provided under subsection (a) for each thirty-day period that the official fails to cure the failure, beginning on the date that the commission provides the notice.

     §84-K  Rules.  The commission shall adopt rules pursuant to chapter 91 to carry out the purposes of this part."

     SECTION 2.  In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

     SECTION 3.  This Act shall take effect on January 1, 2077.

Report Title:

State Ethics Commission; Governor; Lieutenant Governor; Hawaii State Legislature; Executive Agencies; Securities; Trading; Acquisition; Ownership; Prohibited; Penalties; Fines

Description:

Requires a Governor, Lieutenant Governor, member of the Legislature, department heads and their deputies, and any spouse or dependent child of a Governor, Lieutenant Governor, member of the Legislature, or department head and their deputies to place certain financial interests in a blind trust.  Prohibits a Governor, Lieutenant Governor, member of the Legislature, department head and their deputies, and any spouse or dependent child of a Governor, Lieutenant Governor, member of the Legislature, or department head and their deputies from acquiring certain financial interests during their term of service.  Effective 1/1/2077.  (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 ethics.

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

     SECTION 1.  Chapter 84, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part     .  placement of certain assets of officials of the legislature, spouses, and dependent children in blind trusts

     §84-A  Definitions.  As used in this part:

     "Blind trust" means a trust agreement where neither the trustor nor the beneficiaries have any control or influence over, or knowledge of, the assets in the trust, and which complies with the definition of "qualified blind trust" in the Ethics in Government Act of 1978, 5 U.S.C. App 4 101 et seq., as amended.

     "Commission" means the state ethics commission.

     "Commodity" has the same meaning as defined in section 127A-30.

     "Covered investment" means:

     (1)  An investment in a security, a commodity, or a future; and

     (2)  Any economic interest comparable to an interest described in paragraph (1) that is acquired through synthetic means, including the use of a derivative which includes an option, warrant, or other similar means.

     "Covered investment" includes an investment or economic interest described in paragraphs (1) and (2) that is held directly or in which an individual has an indirect, beneficial, or economic interest through an investment fund; trust that is not a blind trust; employee benefit plan; or a deferred compensation plan, including a carried interest or other agreement tied to the performance of an investment, other than a fixed cash payment.

     "Covered investment" does not include a diversified mutual fund, including any holdings of a diversified mutual fund; a diversified exchange-traded fund, including any holdings of a diversified exchange-traded fund; a United States Treasury bill, note, or bond; compensation from the primary occupation of a spouse or dependent child of an official of the legislature; or any investment fund held in a federal, state, or county government employee retirement plan.

     "Current" means an official who is in service before July 1, 2026.

     "Dependent child" means a person who is younger than the age of nineteen and is a dependent, pursuant to section 152 of the Internal Revenue Code of 1986, as amended, of the official of the legislature.

     "Diversified" means a fund, trust, or plan that does not have a stated policy of concentrating its investments in any industry, business, single country other than the United Staes, or bonds of a single state.

     "Future" means:

     (1)  A contract of sale for future delivery of a single security or of a narrow-based security index, including any interest therein or based on the value of thereof; and

     (2)  Any other contract for the sale of a commodity for future delivery.

"Future" does not include any agreement, contract, or transaction excluded from 7 U.S.C. 1 et seq. sections 2(c), 2(d), 2(f), or 2(g).

     "Initial property" means an asset or financial interest transferred to a blind trust by, or on behalf of, an interested party or a relative of an interested party, regardless of whether the asset or financial interest is transferred to the blind trust on or after the date of establishment of the blind trust.

     "Interested party" means a reporting individual, the individual's spouse, and any minor dependent child.

     "New" means a person who is not a current official but begins service as an official after July 1, 2026.

     "Official" means the governor, lieutenant governor, officials of the legislature, and directors of the state departments and their deputies, regardless of the titles by which the foregoing persons are designated; provided that with respect to the department of the attorney general, the foregoing shall apply only to the attorney general and the first deputy attorney general.

     "Security" means any note; stock; treasury stock; security future; security-based swap, bond, debenture, certificate of interest or participation in any profit-sharing agreement or in any oil, gas, or other mineral royalty or lease; any collateral-trust certificate; preorganization certificate or subscription; transferable share; investment contract; voting-trust certificate; certificate of deposit for a security; any put, call, straddle, option or privilege on any security, certificate of deposit, or group or index of securities, including any interest therein or based on the value thereof; any put, call, straddle, option, or privilege entered into a national securities exchange relating to foreign currency, or in general, any instrument commonly known as a security; or any certificate of interest or participation in, temporary or interim certificate for, receipt for, or warrant or right to subscribe to or purchase, any of the foregoing.  "Security" does not include currency or any note, draft, bill of exchange, or banker's acceptance that has a maturity at the time of issuance not more than nine months, exclusive of days of grace, or any renewal thereof the maturity of which is likewise limited.

     §84-B  Placement of certain assets in blind trusts; required; current officials; extensions.  (a)  Beginning August 1, 2026, each current official shall submit to the commission a certification that:

     (1)  The official or spouse or dependent child of the official shall:

          (A)  Divest each covered investment owned by the official or any spouse or dependent child of the official; or

          (B)  Place each covered investment owned by the official or any spouse or dependent child of the official in a blind trust, including by the establishment of a blind trust if necessary; and

     (2)  Neither the official nor any spouse or dependent child of the official owns a covered investment;

provided that an investment that achieves compliance with applicable environmental, social, and governance criteria shall not be considered to be a covered investment solely because of that compliance.

     (b)  Beginning October 1, 2026, each current official shall divest or place in a blind trust each covered investment owned by the official or a spouse or dependent child of the official; provided that the official or spouse or dependent child of the official shall only be required to divest a covered investment if:

     (1)  The official or spouse or dependent child of the official is unable to place the covered investment in a blind trust before July 1, 2027; and

     (2)  The official or spouse or dependent child of the official fails to obtain an extension pursuant to subsection (c).

     (c)  If a current official or spouse or dependent child of the official is unable to place a covered investment in a blind trust before October 1, 2026, the official or spouse or dependent child of the official may request an extension from the commission.  The commission may grant one or more extensions to the official or spouse or dependent child of the official; provided that:

     (1)  The total period of time covered by all extensions granted to the official for the covered investment shall not exceed one hundred eighty days; and

     (2)  The period covered by a single extension shall not exceed forty-five days.

     §84-C  New officials; covered interests; placement in blind trust; required; extensions.

     (a)  A new official shall submit to the commission within thirty days of the date that the person becomes an official of the legislature a certification that:

     (1)  The new official or any spouse or dependent child of the official shall:

          (A)  Divest each covered investment owned by the official or any spouse or dependent child of the official; or

          (B)  Place each covered investment owned by the official or any spouse or dependent child of the official in a blind trust, including by the establishment of a blind trust if necessary; and

     (2)  Neither the official nor any spouse or dependent child of the official owns a covered investment.

     (b)  A new official shall divest or place in a blind trust each covered investment owned by the official or a spouse or dependent child of the official within one hundred twenty days of the date that the person becomes an official; provided that the current official or spouse or dependent child of the official shall only be required to divest a covered investment if:

     (1)  The official or spouse or dependent child of the official is unable to place the covered investment in a blind trust within the period described in subsection (b); and

     (2)  The official or spouse or dependent child of the official fails to obtain an extension pursuant to subsection (c).

     (c)  If a new official or spouse or dependent child of the official who is unable to place a covered investment in a blind trust within the period described in subsection (b), the official or spouse or dependent child of the official may request an extension from the commission.  The commission may grant one or more extensions to the official or spouse or dependent child of the official; provided that:

     (1)  The total period of time covered by all extensions granted to the official for the covered investment shall not exceed one hundred eighty days; and

     (2)  The period covered by a single extension shall not exceed forty-five days.

     §84-D  Acquisitions of covered interests during service; prohibited.  No official or any spouse or dependent child of the official shall acquire a covered investment during the official's term in office.

     §84‑E  Inheritance of covered interest; placement in blind trust; required; extensions.  (a)  An official or any spouse or dependent child of the official who inherits a covered investment shall divest or place the covered investment in a blind trust within one hundred twenty days from the date that the covered investment is inherited.

     (b)  If an official or a spouse or dependent child of the official is unable to place a covered investment in a blind trust within the period described in subsection (a), the official may request an extension from the commission.  The commission may grant one or more extensions to an official; provided that:

     (1)  The total period of time covered by all extensions granted to the official for the covered investment shall not exceed one hundred eighty days; and

     (2)  The period covered by a single extension shall not exceed forty-five days.

     §84-F  Mingling of assets.  Any spouse or dependent child of an official may place a covered investment in a blind trust established by the official.

     §84-G  Separation from service; cooling-off period; required.  During the period beginning on the date on which a person becomes an official and ending on the date that is one hundred eighty days after the date on which the person ceases to serve as an official the official, and any spouse or dependent child of the official shall not:

     (1)  Dissolve any blind trust in which a covered investment has been placed pursuant to sections 84-B, 84-C, 84-E, and 84-F.

     (2)  Except as provided in this part, control a covered investment.

     §84-H  Public reports; transparency.  The commission shall make available to the public on its website:

     (1)  A copy of:

          (A)  Each certification submitted to the ethics commission under sections 84-B(a) or 84-C(a);

          (B)  Each blind trust agreement of each official;

          (C)  Each notice and other documentation submitted to the commission under sections 84-I and 84-J; and

          (D)  Each notice, rule, and other documentation issued by the commission under sections 84-I and 84-J;

     (2)  A schedule of all assets placed in a blind trust by each official and interested party; and

     (3)  A description of each extension granted and each penalty imposed by the commission pursuant to this part.

     §84-I  Blind trusts; trustees; officials; requirements.  (a)  Each trustee of a blind trust established by an official shall submit to the official and the commission a written notice when the trustee:

     (1)  Learns that:

          (A)  An interested party has obtained knowledge of any trust property other than the initial property of the blind trust; or

          (B)  The value of the initial property of the blind trust is less than $          ; or

     (2)  Divests any initial property of the blind trust.

     (b)  Each official who is a beneficiary of a blind trust shall submit to the commission:

     (1)  A copy of the executed blind trust agreement no later than thirty days from the date of the execution;

     (2)  A list of each asset and each financial interest transferred to the blind trust by an interested party no later than thirty days from the date of the transfer;

     (3)  A copy of each notice submitted to the official under subsection (a) no later than thirty days from the date of its receipt;

     (4)  A written notice that an interested party has obtained knowledge of any holding of the blind trust no later than thirty days from the date on which the official discovered that the knowledge had been obtained; and

     (5)  A written notice of dissolution of the blind trust no later than thirty days from the date of its dissolution.

     §84-J  Enforcement; penalties.  (a)  The commission shall provide written notice, including for the potential of civil penalties under subsection (b), to an official who fails to:

     (1)  Submit a certification to the commission pursuant to sections 84-B(a) and 84-C(a) by the required deadline; or

     (2)  Place one or more covered interest owned by the official or any spouse or dependent child of the official in a blind trust by the required deadline.

     (b)  The commission shall impose a fine of $           on the official to whom a notice is provided under subsection (a) every thirty days from the date that the commission provided the notice.

     §84-K  Rules.  The commission shall adopt rules pursuant to chapter 91 to carry out the purposes of this part."

     SECTION 2.  In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

     SECTION 3.  This Act shall take effect on July 1, 2026.

Report Title:

State Ethics Commission; Governor; Lieutenant Governor; Hawaii State Legislature; Executive Agencies; Securities; Trading; Acquisition; Ownership; Prohibited; Penalties; Fines

Description:

Requires a Governor, Lieutenant Governor, member of the Legislature, department heads and their deputies, and any spouse or dependent child of a Governor, Lieutenant Governor, member of the Legislature, or department head and their deputies to place certain financial interests in a blind trust.  Prohibits a Governor, Lieutenant Governor, member of the Legislature, department head and their deputies, and any spouse or dependent child of a Governor, Lieutenant Governor, member of the Legislature, or department head and their deputies from acquiring certain financial interests during their term of service.

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. 2315

Honolulu, Hawaii

RE:     S.B. No. 2778

        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 Labor and Technology, to which was referred S.B. No. 2778 entitled:

"A BILL FOR AN ACT RELATING TO ETHICS,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Require a Governor, Lieutenant Governor, member of the Legislature, department heads and their deputies, and any spouse or dependent child of a Governor, Lieutenant Governor, member of the Legislature, or department head and their deputies to place certain financial interests in a blind trust; and

     (2)  Prohibit a Governor, Lieutenant Governor, member of the Legislature, department head and their deputies, and any spouse or dependent child of a Governor, Lieutenant Governor, member of the Legislature, or department head and their deputies from acquiring certain financial interests during their term of service.

     Your Committee received testimony in support of this measure from the League of Women Voters of Hawaii and four individuals.

     Your Committee received comments on this measure from the Hawai'i State Ethics Commission.

     Your Committee finds that this measure is modeled after federal legislation known as the "Ban Congressional Stock Trading Act," which requires Members of Congress and their families to place covered investments into qualified blind trusts.  Your Committee further finds that requiring certain state officials to place covered investments in blind trusts would strengthen public confidence in government decision-making and reduce the risk of actual or perceived self-dealing.  This measure will promote transparency, integrity, and public trust in state government by creating a clearer separation between personal financial interests and official duties, while recognizing the need for careful implementation and coordination with existing ethics laws.

     Your Committee has amended this measure by:

     (1)  Inserting an effective date of January 1, 2077, to encourage further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2778, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2778, 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 Labor and Technology,