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:
"[Underlined: §302A- ] [Underlined: Procurement; locally sourced products; geographic preference; small purchases.] [Underlined: (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:]
[Underlined: (1)] [Underlined: 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;]
[Underlined: (2)] [Underlined: 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;]
[Underlined: (3)] [Underlined: 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;]
[Underlined: (4)] [Underlined: Offerors shall comply with section 103D-310(c); and]
[Underlined: (5)] [Underlined: The state procurement officer may request data from the department to evaluate the efficacy of this section.]
[Underlined: (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:]
[Underlined: (1)] [Underlined: 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]
[Underlined: (2)] [Underlined: 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.]
[Underlined: (c) For the purposes of this section:]
[Underlined: "Fresh local agricultural products" has the same meaning as defined in section 302A-405.6.]
[Underlined: "Local value-added processed, agricultural, or food products" has the same meaning as defined in section 302A-405.6.]
[Underlined: "Locally sourced products" has the same meaning as defined in section 302A-405.6.]"[Underlined: ]
SECTION 2. Section 103D-104.5, Hawaii Revised Statutes, is amended to read as follows:
"[[Struck through: []]§103D-104.5[[Struck through: ]]] Agricultural products subject to this chapter[[Struck through: .]][Underlined: ; exemptions.] [Underlined: (a)] [[Struck through: The]] [Underlined: 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.
[Underlined: (b) Procurements of the agricultural products listed in subsection (a) by the department of education shall be exempt from this chapter.]
[Underlined: (c)] Except for the exemptions under section 103D-102(b)[[Struck through: ,]] [Underlined: 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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