HOUSE OF REPRESENTATIVES	H.B. NO.	2300
THIRTY-THIRD LEGISLATURE, 2026		H.D. 1
STATE OF HAWAII

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 Act 134, Session Laws of Hawaii 2025, provides a temporary adjustment, until its June 30, 2028, sunset date, to the department of education's small purchase procurement capacity by exempting purchases of local edible produce and packaged food products of less than $250,000 from the electronic procurement system requirement and instead requiring no less than three written quotes for those purchases.

The legislature also 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.

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 legislature notes, however, that to effectuate Act 134, Session Laws of Hawaii 2025, the department requires that new statutory language allow for small purchase procurement of more than $100,000 for local edible produce and packaged food products.

The purpose of this Act is to effectuate Act 134, Session Laws of Hawaii 2025, by:

(1) Exempting the procurement of local edible produce and packaged food products from the $100,000 threshold for the small purchase procurement method; and

(2) Prohibiting the artificial division and parceling of such procurements to be considered as small purchases.

SECTION 2. Section 302A-1317, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-1317[]] Local edible produce and packaged food products procurement; small purchases. (a) Notwithstanding section [103D-305(c)] 103D-305(a) and (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; provided 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.

(b) Notwithstanding section 103D-305(a), multiple expenditures for procurements of local edible produce and packaged food products made pursuant to this section shall not be created at the inception of a transaction or project so as to evade the requirements of chapter 103D; provided that procurement requirements shall not be artificially divided or parceled so as to constitute a small purchase."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 3000, and shall be repealed on June 30, 2028; provided that section 302A-1317 shall be reenacted in the form in which it read prior to the effective date of this Act.

Report Title:

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

Description:

Adjusts the applicability of Act 134, SLH 2025, to clarify the threshold for Department of Education procurement of local edible produce and packaged food products. Prohibits the artificial division and parceling of Department of Education procurements of local edible produce and packaged food products. Sunsets 6/30/2028. Effective 7/1/3000. (HD1)

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