SB 2718: Department of Agriculture and Biosecurity; Food Hub Pilot Program; Appropriation

A BILL FOR AN ACT

RELATING TO THE FOOD HUB PILOT PROGRAM.

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

     SECTION 1.  The legislature finds that the State's overwhelming reliance on imported food poses a significant risk to the State's food security, economic stability, and community health.  The COVID-19 pandemic, combined with recent federal cuts to agricultural and nutrition programs, has revealed vulnerabilities in the State's food system, particularly for small farmers and low-income families.

     The legislature further finds that community-based food hubs, such as those supported under Act 313, Session Laws of Hawaii 2022, have demonstrated measurable success in strengthening local food networks by connecting the State's farmers directly to consumers, schools, and institutions. 

Despite recent federal funding losses, these organizations continue to build market access for local farmers and connect ulu-based foods to schools, hospitals, and consumers statewide.

     Accordingly, the purpose of this Act is to appropriate additional funds to for the continued implementation of the food hub pilot program.

     SECTION 2.  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 continued implementation of the food hub pilot program established pursuant to Act 313, Session Laws of Hawaii 2022, including the awarding of grant moneys to qualifying food hubs.

     The sum appropriated shall be expended by the department of agriculture and biosecurity for the purposes of this Act.

     SECTION 3.  This Act shall take effect on July 1, 2050.

Report Title:

Department of Agriculture and Biosecurity; Food Hub Pilot Program; Appropriation

Description:

Appropriates funds to the Food Hub Pilot Program.  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 the food hub pilot program.

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

     SECTION 1.  The legislature finds that the State's overwhelming reliance on imported food poses a significant risk to the State's food security, economic stability, and community health.  The COVID-19 pandemic, combined with recent federal cuts to agricultural and nutrition programs, has revealed vulnerabilities in the State's food system, particularly for small farmers and low-income families.

     The legislature further finds that community-based food hubs, such as those supported under Act 313, Session Laws of Hawaii 2022, have demonstrated measurable success in strengthening local food networks by connecting the State's farmers directly to consumers, schools, and institutions.  However, there remains a critical policy gap in integrating these food hubs with community health systems and public education institutions to promote not only access to food, but also long-term public health and nutrition outcomes.

     The legislature recognizes the success of local community‑based organizations that unite health care, education, and agriculture through place-based food operations.  These organizations demonstrate that food can be medicine, thereby improving community health while empowering local farmers and strengthening aina-based practices.  The legislature also finds that organizations that aggregate and distribute culturally significant crops, such as ulu, have become a cornerstone in local food system development.  Despite recent federal funding losses, these organizations continue to build market access for local farmers and connect ulu-based foods to schools, hospitals, and consumers statewide.

     The purpose of this Act is to:

     (1)  Require the department of education, department of health, department of corrections and rehabilitation, department of defense, and university of Hawaii to ensure that thirty per cent of the produce purchased by each department consists of fresh local agricultural products or local value-added, processed, agricultural, or food products by January 1, 2028;

     (2)  Require the department of agriculture and biosecurity to develop a nutrition- and aina-based program for integration into public school curricula;

     (3)  Expand access to Native Hawaiian crops by requiring the department of agriculture and biosecurity to partner with a local aggregator to support the aggregation and processing of Native Hawaiian staple crops; and

     (4)  Require the department of agriculture and biosecurity to prioritize an organization meeting certain requirements for grant funding.

     SECTION 2.  Section 27-8, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The department of education, department of health, department of corrections and rehabilitation, department of defense, and university of Hawaii system shall each ensure that a certain percentage of the food purchased for public schools, youth campuses, public hospitals, public prisons, and any purchases made directly by the university of Hawaii for use in its academic programs, as applicable, is fresh local agricultural products and local value-added, processed, agricultural, or food products, as follows:

     (1)  By January 1, 2025, fresh local agricultural products and local value-added, processed, agricultural, or food products shall constitute a minimum of ten per cent of the total food purchased during each calendar year, as measured by the per cent of total food cost; provided that the department of education shall be exempt from the requirements of this paragraph;

     (2)  By January 1, [2030,] 2028, fresh local agricultural products and local value-added, processed, agricultural, or food products shall constitute a minimum of [eighteen] thirty per cent of the total food purchased during each calendar year, as measured by the per cent of total food cost; [provided that the department of education shall be exempt from the requirements of this paragraph and instead shall be subject to the requirements in section 302A-405.6(a);

     (3)  By January 1, 2035, fresh local agricultural products and local value-added, processed, agricultural, or food products shall constitute a minimum of twenty-six per cent of the total food purchased during each calendar year, as measured by the per cent of total food cost; provided that the department of education shall be exempt from the requirements of this paragraph;]

    [(4)] (3)  By January 1, 2040, fresh local agricultural products and local value-added, processed, agricultural, or food products shall constitute a minimum of thirty-four per cent of the total food purchased during each calendar year, as measured by the per cent of total food cost;

    [(5)] (4)  By January 1, 2045, fresh local agricultural products and local value-added, processed, agricultural, or food products shall constitute a minimum of forty-two per cent of the total food purchased during each calendar year, as measured by the per cent of total food cost; and

    [(6)] (5)  By January 1, 2050, fresh local agricultural products and local value-added, processed, agricultural, or food products shall constitute a minimum of fifty per cent of the total food purchased during each calendar year, as measured by the per cent of total food cost."

     SECTION 3.  Section 302A-405.6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The department shall ensure that by January 1, [2030,] 2028, fresh local agricultural products and local value‑added processed, agricultural, or food products shall constitute a minimum of thirty per cent of the total food purchased during each calendar year, as measured by the per cent of total food cost."

     SECTION 4.  Act 313, Session Laws of Hawaii 2022, is amended by amending section 2 to read as follows:

     "SECTION 2.  (a)  There is established a five-year food hub pilot program, which shall be administered by the department of agriculture[.] and biosecurity.

     (b)  The food hub pilot program shall:

     (1)  Adopt the United States Department of Agriculture's working definition of "food hub", which means "a centrally located facility with a business management structure facilitating the aggregation, storage, processing, distribution, and/or marketing of locally/regionally produced food products"; [and]

     (2)  Award grant funding to qualified applicants for the construction of critical infrastructure to establish and expand food hubs in each of the counties, including:

          (A)  Construction or improvement of facilities for aggregation, washing, minimal processing, packaging, cold storage, and other value‑additions; and

          (B)  Provision of technical assistance to develop in‑state capacity to supply state institutions [and], community organizations, and other markets[.];

     (3)  Develop a nutrition- and aina-based education program for integration in public school curricula that utilizes locally sourced ingredients and teaches traditional food cultivation and preparation methods;

     (4)  Collect data on local procurement, community health, and economic outcomes; and

     (5)  Partner with a regional aggregator supporting local procurement to:

          (A)  Support aggregation, processing, and value-added production of ulu and other Native Hawaiian staple crops;

          (B)  Facilitate farm-to-school and farm-to-hospital procurement pipelines; and

          (C)  Expand access to fresh, local, and cultural significant foods across the island.

     (c)  The department of agriculture and biosecurity shall establish criteria for the award of initial start-up grant funding or subsequent expansion funding under the food hub pilot program, including the following provisions:

     (1)  Priority shall be given to [organizations]:

          (A)  An organization capable of leveraging existing infrastructure to demonstrate:

               (i)  The direct links between food hub distribution and health care and community wellness plans;

              (ii)  The educational benefits of integrating an aina-based learning program into a department of education school; and

             (iii)  The economic and social benefits of localized food systems for producers and consumers; and

          (B)  Organizations having demonstrated experience in aggregation, washing, minimal processing, packaging, cold storage, and other value‑additions for delivering local produce to local markets;

     (2)  Qualifying applicants shall include corporations, limited liability companies, partnerships, sole proprietorships, non-profit organizations, and agricultural cooperatives that meet necessary insurance requirements and provide a certificate of vendor compliance with Hawaii compliance express;

     (3)  Applicants seeking to establish a new food hub where none currently exist shall first secure a physical location for the food hub and draft a detailed plan for the food hub's operation, including activities in which the applicant intends to engage, such as serving as a marketplace for buying and selling, or providing certified kitchen space in which multiple farmers may share use of facilities for value-added product development; and

     (4)  Applicants shall explain their intended actions to increase access to locally produced food.

     (d)  The department of agriculture and biosecurity shall require that the receipt of grant funding pursuant to the food hub pilot program be conditioned upon the recipient's compliance with all applicable state and federal food safety laws, rules, and regulations, including the FDA Food Safety Modernization Act, P.L. 111-353, and that Act's provisions on supplier verification.

     (e)  The department of agriculture and biosecurity shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, for the administration and operation of the food hub pilot program.

     (f)  The food hub pilot program under this section shall terminate on June 30, 2027.

     (g)  The department of agriculture and biosecurity shall submit a report on the progress and outcomes of the food hub pilot program to the legislature no later than twenty days prior to the convening of the regular session of 2027."

     SECTION 5.  There is appropriated out of the general revenues of the State of Hawaii the sum of $5,000,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the continued implementation of the food hub pilot program established pursuant to Act 313, Session Laws of Hawaii 2022, including the awarding of grant moneys to qualifying food hubs.

     The sum appropriated shall be expended by the department of agriculture and biosecurity for the purposes of this Act.

     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, 2026.

Report Title:

DAB; Procurement; Produce Contracts; Local Produce; Specifications; Food Hub Pilot Program; Grant Funding; Report; Appropriation

Description:

Beginning January 1, 2028, requires the Department of Education, Department of Health, Department of Corrections and Rehabilitation, Department of Defense, and University of Hawaii to ensure that thirty percent of the produce purchased by that department consists of fresh local agricultural products or local value-added, processed, agricultural, or food products.  Requires the Department of Agriculture and Biosecurity to develop a nutrition- and aina-based program for integration into public school curricular.  Requires DAB to partner with a regional aggregator to support the aggregation and processing of Native Hawaiian staple crops, facilitate procurement pipelines, and expand access to Native Hawaiian crops.  Requires DAB to prioritize grants for an organization that meets certain requirements.  Requires a report to the Legislature.  Appropriates funds.

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. 2680

Honolulu, Hawaii

RE:     S.B. No. 2718

        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 Agriculture and Environment and Government Operations, to which was referred S.B. No. 2718 entitled:

"A BILL FOR AN ACT RELATING TO THE FOOD HUB PILOT PROGRAM,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Beginning January 1, 2028, require the Department of Education, Department of Health, Department of Corrections and Rehabilitation, Department of Defense, and University of Hawaii to ensure that thirty percent of the produce purchased by each respective department consists of fresh local agricultural products or local value-added, processed, agricultural, or food products;

     (2)  Require the Department of Agriculture and Biosecurity to develop a nutrition- and aina-based program for integration into public school curricula;

     (3)  Require the Department of Agriculture and Biosecurity to partner with a regional aggregator to support the aggregation and processing of Native Hawaiian staple crops, facilitate procurement pipelines, and expand access to Native Hawaiian crops;

     (4)  Require the Department of Agriculture and Biosecurity to prioritize grants for an organization that meets certain requirements;

     (5)  Require a report to the Legislature; and

     (6)  Appropriate funds.

     Your Committees received testimony in support of this measure from the Department of Agriculture and Biosecurity, Hawaiʻi Farm Bureau, Hawaiʻi Food+ Policy, Hawaiʻi Alliance for Progressive Action, Restore the Commons, and six individuals.

     Your Committees received testimony in opposition to this measure from the Department of Corrections and Rehabilitation.

     Your Committees received comments on this measure from the Department of Education, Department of Health, and one individual.

     Your Committees find that previous legislative efforts aimed to strengthen local food networks by connecting the State's farmers directly to consumers, schools, and institutions.  The Food Hub Pilot Program has helped demonstrate the value of coordinated aggregation, processing, and distribution in connecting farmers with institutional buyers.  Therefore, this measure will further these efforts to create market pathways for the State's farmers.

     Your Committees have amended this measure by:

     (1)  Deleting language that would have amended procurement benchmarks for state agencies contracting for local agricultural products and expanded the Farm to Schools Meals Program;

     (2)  Inserting a blank appropriation amount;

     (3)  Amending section 1 to reflect its amended purpose;

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

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

Your Committees note that this measure, as amended, contains an unspecified appropriation amount.  Should your Committee on Ways and Means choose to deliberate on this measure, your Committees respectfully request that it consider inserting an appropriation amount of $5,000,000 to the Food Hub Pilot Program.

     As affirmed by the records of votes of the members of your Committees on Agriculture and Environment and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2718, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2718, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Agriculture and Environment and Government Operations,