STAND. COM. REP. NO. 3384

Honolulu, Hawaii

RE: H.B. No. 2300

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Education, to which was referred H.B. No. 2300, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO DEPARTMENT OF EDUCATION PROCUREMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Adjust the applicability of Act 134, Session Laws of Hawaii 2025, to clarify the threshold for Department of Education procurement of local edible produce and packaged food products; and

(2) Prohibit the artificial division and parceling of Department of Education procurements of local edible produce and packaged food products.

Your Committee received testimony in support of this measure from the Department of Education, Hawaiʻi Farm Bureau, Local Food Coalition, and Agriculture Stewardship Hawaiʻi.

Your Committee received comments on this measure from the State Procurement Office.

Your Committee finds that Act 175, Session Laws of Hawaii 2021 (Act 175), established the Hawaii Farm to School Program within the Department of Education and requires that at least thirty percent of food served in public schools consist of locally sourced products by 2030. Under existing law, the Department of Education's food procurement model primarily relies on contracted distributors and suppliers who aggregate products from multiple local farmers and producers. As a result, many local products are incorporated into the school meal program through larger supply contracts rather than direct farm-level purchases. By providing targeted flexibility to support the implementation of Act 175 in circumstances where direct sourcing is appropriate, this measure offers a practical procurement tool for the Department of Education to meet its obligation to increase locally sourced food while preserving transparency and reducing administrative barriers.

Your Committee has amended this measure by:

(1) Amending the maximum value of exempt procurements of local edible produce and packaged food products from $250,000 to $200,000;

(2) Amending section 1 to reflect its amended purpose;

(3) Inserting an effective date of July 31, 2055, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

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 H.B. No. 2300, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2300, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Education,

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DONNA MERCADO KIM, Chair