THE SENATE

S.B. NO.

659

THIRTY-THIRD LEGISLATURE, 2025

S.D. 2

STATE OF HAWAII

 

 

 

 

 

 

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)

 

 

 

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