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 DOE , the official text

HOUSE OF REPRESENTATIVES

H.B. NO.

2300

THIRTY-THIRD LEGISLATURE, 2026

H.D. 1

STATE OF HAWAII

S.D. 1

C.D. 1

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-six 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
department of education purchases of local edible produce and packaged food
products less than $200,000 from the electronic procurement system; 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] $200,000
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 upon its approval,

and shall be
repealed on June 30, 2028.