HB497 HD2

SECTION 1. The legislature finds that the Hawaii child nutrition programs is the state agency link between the United States Department of Agriculture Food and Nutrition Service and local program operators. The agency conducts audits, provides technical assistance, and disburses federal funds while ensuring the programs are managed according to federal requirements.

The legislature further finds that the Hawaii child nutrition programs has a critical role in ensuring the department of education reaches the programmatic goal established in Act 175, Session Laws of Hawaii 2021, to provide at least thirty per cent locally grown food in the State's public schools by 2030. However, additional resources and staff dedicated to farm-to-school connections are needed to ensure the department of education meets its "30 by 30" goal.

The legislature recognizes that the Hawaii child nutrition programs is an agency attached to the department of education under the board of education.

The purpose of this Act is to:

(1) Establish the Hawaii child nutrition programs as an agency in the department of agriculture; and

(2) Fund grant-based programs to be administered through the Hawaii child nutrition programs.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

hawaii child nutrition programs

§ -1 Definitions. As used in this chapter, "agency" means the Hawaii child nutrition programs agency.

§ -2 Hawaii child nutrition programs agency; purpose. (a) There is established within the department of agriculture for administrative purposes only, the Hawaii child nutrition programs agency. The agency shall serve as the state link between the United States Department of Agriculture Food and Nutrition Services and local program operators.

(b) The purpose of the Hawaii child nutrition programs agency is to conduct audits, provide technical assistance, disburse federal funds to local program operators, and administer and award grants to promote the purchasing of locally grown foods by all schools in the State participating in the United States Department of Agriculture child nutrition programs.

§ -3 Grants. (a) The agency shall administer a grant program to support the State's public schools by funding the initiatives described in subsection (c).

(b) Funding shall be used for the purposes described in subsection (c); provided that no more than two per cent of the funding received by the grantee shall be retained to be used for administration costs. Funding retained by project partners for data collection, outreach, and training shall not exceed one per cent for each project partner.

(1) The purchase of minimally processed local food products;

(2) Equipment to increase the use and preparation of minimally processed local foods in school meals;

(3) Professional development to educate children about good nutrition and farm-to-school connections; and

(4) Technical assistance to increase participation in federal child nutrition programs.

(d) Applications by private entities for grants shall be made to the department of agriculture and contain the information as shall be required by rules adopted by the department. At a minimum, the applicant shall:

(1) Be licensed or accredited, in accordance with federal, state, or county statutes, rules, or ordinances, to conduct the activities or provide the services for which a grant is awarded;

(2) Provide a detailed plan outlining the scope, objectives, and projected impact of the project or projects and a clear breakdown of how grant funds will be used;

(3) Agree to use state funds exclusively for the purposes described in subsection (c);

(4) Indicate the applicant's capability to properly use the grant for purposes described in subsection (c);

(5) Comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law;

(6) Agree not to use state funds for purposes of entertainment or perquisites;

(7) Comply with other requirements as the department of agriculture may prescribe;

(8) Comply with all applicable federal, state, and county statutes, rules, and ordinances;

(9) Agree to indemnify and save harmless the State of Hawaii and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided and procure sufficient insurance to provide this indemnification if requested to do so by the department of agriculture; and

(10) Agree to make available to the department of agriculture all records the applicant may have relating to the grant to allow state agencies to monitor the applicant's compliance with this section.

(e) In determining recipients for grants related to farm-to-school education and increasing participation in federal child nutrition programs, the agency shall give preference to grantees who propose educational activities that meet one or more of the following:

(1) Promotion of healthy food activities;

(2) Clear educational objectives;

(3) Involvement of parents or the community;

(4) Connect to a school or child care center's farm-to-school or farm-to-early-child-care procurement activities; and

(5) Marketing and promoting the program to increase pupil knowledge and consumption of Hawaii-grown products.

§ -4 Reports to the legislature. The agency shall submit a report to the legislature on the disbursement of funds awarded pursuant to section -3 no later than twenty days prior to the convening of each regular session."

SECTION 3. All employees of the Hawaii child nutrition programs who occupy civil service positions and whose functions are transferred to the department of agriculture by this Act shall retain their civil service status, whether permanent or temporary. Employees shall be transferred without loss of salary, seniority (except as prescribed by applicable collective bargaining agreements), retention points, prior service credit, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees possess the minimum qualifications and public employment requirements for the class or position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

Any employee who, prior to this Act, is exempt from civil service and is transferred as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act. An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act; provided that the employees possess legal and public employment requirements for the position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws.

SECTION 4. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of education relating to the functions transferred to the department of agriculture shall be transferred with the functions to which they relate.

SECTION 5. 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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to fund grants administered by the Hawaii child nutrition programs agency for the 2025-2026 school year.

The sums appropriated shall be expended by the department of agriculture for the purposes of this Act.

SECTION 6. This Act shall take effect on July 1, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	497
THIRTY-THIRD LEGISLATURE, 2025		H.D. 2
STATE OF HAWAII