STAND. COM. REP. NO. 2078-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2601

S.D. 2

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Finance, to which was referred S.B. No. 2601, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Amend 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;

(2) Ensure that awarded contracts are supported by sufficient appropriations by providing that if a contract amount exceeds fifteen percent of an available balance of an appropriation, the contract will not be binding unless approved by the Chief Procurement Officer; and

(3) Appropriate funds for the State Procurement Office to carry out this measure, including for positions.

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

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2601, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

CHRIS TODD, Chair