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,

____________________________

JUSTIN H. WOODSON, Chair