HOUSE OF REPRESENTATIVES	H.B. NO.	1293
THIRTY-THIRD LEGISLATURE, 2025		H.D. 2
STATE OF HAWAII		S.D. 2

A BILL FOR AN ACT

RELATING TO DEPARTMENT OF EDUCATION PROCUREMENT.

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

SECTION 1. The legislature finds that as the largest department in the State with two hundred ninety-five schools and forty-two thousand salaried and part-time employees, the department of education must procure voluminous amounts of goods and services to run its operation. However, the department's small purchase procurement capacity is limited to under $25,000 per twelve-month period, positioning the department as the only state department to not receive an increase threshold of $100,000 for small purchase procurement.

The legislature further finds that the department of education is mandated to provide at least thirty per cent locally sourced foods to Hawaii's public schools by 2030. Increasing the department's small purchase procurement capacity for local edible produce and packaged food products will assist the department in fulfilling its mandate to provide locally sourced foods for the State's public schools.

The purpose of this Act is to temporarily adjust the department of education's small purchase procurement capacity by:

(1) Exempting purchases of local edible produce and packaged food products of less than $250,000 from the electronic procurement system requirement;

(2) Requiring no less than three written quotes for purchases of local edible produce and packaged food products of $           to less than $          ; and

(3) Requiring no less than two written quotes for purchases of local edible produce and packaged food products of $           to less than $           for certain schools in rural communities.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part V to be appropriately designated and to read as follows:

"§302A-    Local edible produce and packaged food products procurement; small purchases. Notwithstanding section 103D‑305(c) and any other law to the contrary, procurements of less than $250,000 for local edible produce and packaged food products for the department shall be exempt from the requirement to conduct procurements through an electronic system and shall instead be subject to no less than three written quotes for procurements of $ to less than $ ; provided that the department may allow for no less than two written quotes for procurements of $ to less than $ for local edible produce and packaged food products to supply schools in rural communities, as determined by the department; provided further that if the department is unable to receive the required number of written notifications as required by this section, written justification shall be provided and kept by the department."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $20,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 for the food services program shortfall, as requested in Governor's Message No. 9.

The sum appropriated shall be expended by the department of education for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2050, and shall be repealed on June 30, 2028.

Report Title:

DOE; Procurement; Small Purchases; Local Produce and Packaged Food Products; Written Quotes; Appropriation

Description:

Exempts Department of Education purchases of local edible produce and packaged food products less than $250,000 from the electronic procurement system requirement. Requires at least 3 written quotes for Department of Education purchases of local edible produce and packaged food products between certain amounts. Requires at least 2 written quotes for Department of Education purchases of local edible produce and packaged food products between certain amounts for certain schools in rural communities. Appropriates moneys. Sunsets 6/30/2028. Effective 7/1/2050. (SD2)

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