SB 659: DOE; Procurement; Locally Sourced Products; Fresh Local Agricultural Products; Local Value-Added Processed, Agricultural, or Food Products; Exemption; Geographic Preference

A BILL FOR AN ACT

RELATING TO THE DEPARTMENT OF EDUCATION.

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

     SECTION 1.  Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to subpart C of part II to be appropriately designated and to read as follows:

     "§302A-     Procurement; locally sourced products; geographic preference; small purchases.  (a)  Notwithstanding section 103D-305(c) or any other law to the contrary, the department may procure fresh local agricultural products and local value-added, processed, agricultural, or food products of less than $           without using an electronic system; provided that for these procurements:

     (1)  No less than three written quotes shall be obtained for procurements of $           to less than $          ; provided further that the department may instead require no less than two written quotes for procurements of $           to less than $           for fresh local agricultural products and local value‑added processed, agricultural, or food products to supply schools in rural communities, as determined by the department;

     (2)  If the department is unable to receive the required number of quotes under paragraph (1), written justification shall be provided and kept by the department in the procurement file;

     (3)  All awards exceeding $           shall be posted electronically on the Hawaii awards and notice data system or successor system, or a similar department of education procurement platform;

     (4)  Offerors shall comply with section 103D-310(c); and

     (5)  The state procurement office may request data from the department to evaluate the efficacy of this section.

     (b)  The department shall establish guidelines with a county-level geographic preference for locally sourced products when procuring products.  The guidelines shall include the following provisions:

     (1)  The department shall award contracts for locally sourced products if the cost is no more than ten per cent higher than the lowest-priced out-of-state option; and

     (2)  The department may award contracts for locally sourced products if the cost is no more than fifteen per cent higher than the lowest-priced out-of-state option; provided that justification for the selection is documented.

     (c)  For the purposes of this section:

     "Fresh local agricultural products" has the same meaning as defined in section 302A-405.6.

     "Local value-added processed, agricultural, or food products" has the same meaning as defined in section 302A-405.6.

     "Locally sourced products" has the same meaning as defined in section 302A-405.6."

     SECTION 2.  Section 103D-104.5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§103D-104.5[]]  Agricultural products subject to this chapter[.]; exemptions.  [The] (a)  Except as provided in subsection (b), the following agricultural products shall be subject to this chapter:

     (1)  Fresh meats and produce; and

     (2)  Animals and plants.

     (b)  Procurements by the department of education of the agricultural products listed in subsection (a) shall be exempt from this chapter.

     (c)  Except for the exemptions under section 103D-102(b)[,] and subsection (b), no exemptions under this chapter shall apply to this section."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

DOE; Procurement; Locally Sourced Products; Fresh Local Agricultural Products; Local Value-Added Processed, Agricultural, or Food Products; Exemption; Geographic Preference

Description:

Exempts from the electronic procurement system the Department of Education's purchase of fresh local agricultural products and local value-added processed, agricultural, or food products not exceeding a certain amount, subject to certain requirements.  Requires the Department of Education to establish guidelines for determining a geographic preference for locally sourced products.  Exempts the Department of Education from the requirement that certain agricultural products are subject to the Hawaii Public Procurement Code.  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 THE DEPARTMENT OF EDUCATION.

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

     SECTION 1.  Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to subpart C of part II to be appropriately designated and to read as follows:

     "§302A-     Procurement; locally sourced products; geographic preference; small purchases.  (a)  Notwithstanding section 103D-305(c) or any other law to the contrary, the department may procure fresh local agricultural products and local value-added, processed, agricultural, or food products of less than $250,000 without using an electronic system; provided that for these procurements:

     (1)  No less than three written quotes shall be obtained for procurements of $25,000 to less than $250,000; provided further that the department may instead require no less than two written quotes for procurements of $25,000 to less than $250,000 for fresh local agricultural products and local value‑added processed, agricultural, or food products to supply schools in rural communities, as determined by the department;

     (2)  If the department is unable to receive the required number of quotes under paragraph (1), written justification shall be provided and kept by the department in the procurement file;

     (3)  All awards exceeding $2,500 shall be posted electronically on the Hawaii awards and notice data system (HANDS) or successor system, or a similar department of education procurement platform;

     (4)  Offerors shall comply with section 103D-310(c); and

     (5)  The state procurement officer may request data from the department to evaluate the efficacy of this section.

     (b)  The department shall establish guidelines with a county-level geographic preference for locally sourced products when procuring products.  The guidelines shall include the following provisions:

     (1)  The department shall award contracts for locally sourced products if the cost is not more than ten per cent higher than the lowest-priced out-of-state option; and

     (2)  The department may award contracts for locally sourced products if the cost is not more than fifteen per cent higher than the lowest-priced out-of-state option; provided that justification for the selection is documented.

     (c)  For the purposes of this section:

     "Fresh local agricultural products" has the same meaning as defined in section 302A-405.6.

     "Local value-added processed, agricultural, or food products" has the same meaning as defined in section 302A-405.6.

     "Locally sourced products" has the same meaning as defined in section 302A-405.6."

     SECTION 2.  Section 103D-104.5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§103D-104.5[]]  Agricultural products subject to this chapter[.]; exemptions.  (a)  [The] Except as provided in subsection (b), the following agricultural products shall be subject to this chapter:

     (1)  Fresh meats and produce; and

     (2)  Animals and plants.

     (b)  Procurements of the agricultural products listed in subsection (a) by the department of education shall be exempt from this chapter.

     (c)  Except for the exemptions under section 103D-102(b)[,] and subsection (b), no exemptions under this chapter shall apply to this section."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

DOE; Procurement; Locally Sourced Products; Fresh Local Agricultural Products; Local Value-Added Processed, Agricultural, or Food Products; Exemption; Geographic Preference

Description:

Exempts from the electronic procurement system the Department of Education's purchase of fresh local agricultural products and local value-added processed, agricultural, or food products not exceeding $250,000, subject to certain requirements.  Requires the Department of Education to establish guidelines for determining a geographic preference for locally sourced products.  Exempts the Department of Education from the requirement that certain agricultural products are subject to the Hawaii Public Procurement Code.  Effective 7/1/2050.  (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 THE DEPARTMENT OF EDUCATION.

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

     SECTION 1.  Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to subpart C of part II to be appropriately designated and to read as follows:

     "§302A-    Procurement; locally sourced products; geographic preference; small purchases.  (a)  Notwithstanding sections 103D-102 and 103D-305(c), or any other law to the contrary, the department may procure fresh local agricultural products and local value-added processed, agricultural, or food products of less than $100,000 without using an electronic procurement system; provided that the procurement shall be subject to the rules governing procurements of less than $25,000.

     (b)  The department shall establish guidelines with a geographic preference for locally sourced products when procuring products.

     (c)  For the purposes of this section:

     "Fresh local agricultural products" has the same meaning as defined in section 302A-405.6.

     "Local value-added processed, agricultural, or food products" has the same meaning as defined in section 302A-405.6.

     "Locally sourced products" has the same meaning as defined in section 302A-405.6."

     SECTION 2.  New statutory material is underscored.

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

Report Title:

DOE; Procurement; Locally Sourced Products; Fresh Local Agricultural Products; Local Value-Added Processed, Agricultural, or Food Products; Exemption; Geographic Preference

Description:

Exempts from the electronic procurement system the Department of Education's purchase of fresh local agricultural products and local value-added processed, agricultural, or food products not exceeding $100,000, subject to certain requirements.  Requires the Department of Education to establish guidelines for determining a geographic preference for locally sourced products.  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 department of education.

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

     SECTION 1.  Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part II, subpart C, to be appropriately designated and to read as follows:

     "§302A-    Procurement; locally sourced products; geographic preference; small purchases.  (a)  Notwithstanding sections 103D-102 and 103D-305(c), or any other law to the contrary, the department may procure fresh local agricultural products and local value-added processed, agricultural, or food products of less than $100,000 without using an electronic procurement system; provided that the procurement shall be subject to the rules governing procurements of less than $25,000.

     (b)  The department shall establish guidelines with a geographic preference for locally sourced products when procuring products.

     (c)  For the purposes of this section:

     "Fresh local agricultural products" has the same meaning as defined in section 302A-405.6.

     "Local value-added processed, agricultural, or food products" has the same meaning as defined in section 302A-405.6.

     "Locally sourced products" has the same meaning as defined in section 302A-405.6."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

Report Title:

DOE; Procurement; Locally Sourced Products; Fresh Local Agricultural Products; Local Value-Added Processed, Agricultural, or Food Products; Exemption; Geographic Preference

Description:

Exempts from the electronic procurement system the Department of Education's purchase of fresh local agricultural products and local value-added processed, agricultural, or food products not exceeding $100,000, subject to certain requirements.  Requires the Department of Education to establish guidelines for determining a geographic preference for locally sourced products.

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.  1406

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 659

      S.D. 2

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Agriculture & Food Systems, to which was referred S.B. No. 659, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF EDUCATION,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Exempt purchases of fresh local agricultural products and local value-added, processed, agricultural, or food products of less than a certain dollar amount from the electronic procurement system, subject to certain requirements;

     (2)  Require the Department of Education to establish guidelines for determining a county-level geographic preference for locally sourced products when procuring products; and

     (3)  Exempt the Department of Education from the requirement that certain agricultural products be subject to the Hawaii Public Procurement Code.

     Your Committee received testimony in support of this measure from the Department of Education; Department of Agriculture; City and County of Honolulu Office of Climate Change, Sustainability, and Resiliency; Local Food Coalition; Ulupono Initiative; Hawai‘i Farm Bureau; Hawai‘i Public Health Institute; and one individual.  Your Committee received comments on this measure from the State Procurement Office.

     Your Committee finds that increasing the procurement of locally sourced agricultural products for public schools is essential to strengthening Hawaii's farm to school efforts.  While section 302A-405.6, Hawaii Revised Statutes, mandates that at least thirty percent of school meals be sourced locally by 2030, existing procurement processes favor large, out-of-state suppliers, limiting opportunities for Hawaii's farmers and ranchers.  This measure streamlines the procurement process by adjusting small purchase thresholds, exempting certain purchases from the Hawaii Public Procurement Code, and requiring the establishment of guidelines for geographic preferences for local products, strengthening the State's commitment to long-term food sustainability and student nutrition.

     As affirmed by the record of votes of the members of your Committee on Agriculture & Food Systems that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 659, S.D. 2, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Agriculture & Food Systems,

STAND. COM. REP. NO.  1190

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 659

      S.D. 2

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Education, to which was referred S.B. No. 659, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF EDUCATION,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Exempt purchases of fresh local agricultural products and local value-added, processed, agricultural, or food products less than $250,000 from using an electronic system, subject to certain requirements;

     (2)  Require the Department of Education to establish guidelines for determining a county-level geographic preference for locally sourced products when procuring products; and

     (3)  Exempt the Department of Education from the requirement that certain agricultural products be subject to the Hawaii Public Procurement Code.

     Your Committee received testimony in support of this measure from the Department of Education; Department of Agriculture; City and County of Honolulu Office of Climate Change, Sustainability and Resiliency; Ulupono Initiative; Hawaiʻi Farm Bureau; Hawaiʻi Public Health Institute; Hawaiʻi Farmers Union; Food+ Policy Internship 2025; and one individual.  Your Committee received testimony in opposition to this measure from the State Procurement Office.

     Your Committee finds that the Department of Education is mandated to provide at least thirty percent locally sourced foods to the State's public schools by 2030.  Your Committee further finds that adjusting the Department of Education's small purchase procurement capacity will provide an additional tool to procure fresh local agricultural products and local value-added, processed, agricultural, or food products from local farmers and ranchers and assist the Department in fulfilling its mandate to provide locally sourced foods for the State's public schools.

     Your Committee has amended this measure by:

     (1)  Changing the procurement threshold amounts to unspecified amounts;

     (2)  Changing the effective date to July 1, 3000; and

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

     Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider:

     (1)  Less than $250,000 as the threshold for the Department of Education to procure fresh local agricultural products and local value-added, processed, agricultural, or food products without using an electronic system;

     (2)  Requiring no less than three written quotes for procurements for $25,000 to less than $250,000;

     (3)  Requiring no less than two written quotes for procurements of $25,000 to less than $250,000 for fresh local agricultural products and local value‑added processed, agricultural, or food products to supply schools in rural communities; and

     (4)  Requiring all awards exceeding $2,500 to be posted electronically on the Hawaii Awards and Notice Data System or successor system, or a similar Department of Education procurement platform.

     As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 659, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 659, S.D. 2, H.D. 1, and be referred to your Committee on Agriculture & Food Systems.

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

STAND. COM. REP. NO. 921

Honolulu, Hawaii

RE:    S.B. No. 659

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 659, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF EDUCATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to facilitate the purchase of fresh local agricultural and food products for public school students.

     Specifically, this measure:

     (1)  Exempts from the electronic procurement system the Department of Education's purchase of fresh local agricultural products and local value-added processed, agricultural, or food products not exceeding $100,000, subject to certain requirements; and

     (2)  Requires the Department of Education to establish guidelines for determining a geographic preference for locally sourced products.

     Your Committee received written comments in support of this measure from the Department of Education, Ulupono Initiative, Hawaii Farm Bureau, Hawaii Farmers Union, Hawaii Food+ Policy, North Shore Nutrition, Hoola Veteran Services, and numerous individuals.

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

     Your Committee finds that the State has established a goal to source at least thirty percent of school meals from local food sources by 2030.  Your Committee further finds that meeting this goal may be hindered by the complexities of the procurement process, which has historically favored large, out-of-state suppliers over local farmers.

     Your Committee has amended this measure by:

     (1)  Increasing from $100,000 to $250,000 the threshold value of purchases not subject to the electronic system;

     (2)  Requiring the Department of Education to obtain a certain number of written quotes for purchases of $25,000 to less than $250,000, and requiring the Department to obtain written justification if it is unable to receive the required number of written quotes;

     (3)  Requiring the posting of awards on the Hawaii Awards and Notice Data System or similar procurement platform;

     (4)  Authorizing the State Procurement Office to request data from the Department of Education;

     (5)  Clarifying that the guidelines for a geographic preference for locally sourced products is a county‑level preference;

     (6)  Requiring the geographic preference guidelines to include certain cost provisions; and

     (7)  Reinstating an exemption from the Hawaii Public Procurement Code applicable to the purchase of certain agricultural products by the Department of Education.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 659, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 659, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

STAND. COM. REP. NO. 434

Honolulu, Hawaii

RE:    S.B. No. 659

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committees on Education and Agriculture and Environment, to which was referred S.B. No. 659 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF EDUCATION,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Exempt from the electronic procurement system the Department of Education's purchase of fresh local agricultural products and local value-added processed, agricultural, or food products not exceeding $100,000, subject to certain requirements; and

     (2)  Require the Department of Education to establish guidelines for determining a geographic preference for locally sourced products.

     Your Committees received testimony in support of this measure from the Department of Education, Climate Protectors Hawaii, Ka Ohana O Na Pua, and one individual.

     Your Committees received comments on this measure from the Department of Agriculture and State Procurement Office.

     Your Committees find that alleviating certain requirements of the Hawaii Public Procurement Code regarding fresh local agricultural products and local value-added processed, agricultural, or food products will ensure the Department of Education can attain its goal of thirty percent of locally sourced food by 2030 in school meals.  Therefore, this measure provides fresh, nutritious, meals for students while supporting the State's agricultural industry.

     Your Committees have amended this measure by:

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

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

     As affirmed by the records of votes of the members of your Committees on Education and Agriculture and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 659, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 659, S.D. 1, and be referred to your Committee on Ways and Means.

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