Informing the Legislature that on June 8, 2026, the Governor signed the following bill into law: HB2300 HD1 SD1 CD1 (ACT 116).

2026 Regular Session

The act lets the Hawaii DOE buy local edible produce and packaged foods under $200,000 outside the electronic system with at least three written quotes, to boost local sourcing, un

Received.

#act116

Summary of GM 1216 (HB 2300, HD1, SD1, CD1) – Act 116 (Hawaii, 2026)

Purpose and intent

Enacts provisions to implement Act 134, Session Laws of Hawaii 2025, by adjusting how the Hawaii Department of Education (DOE) handles procurement for local edible produce and packaged food products.

Specifically aims to increase the DOE’s capacity to perform small purchases without using the electronic procurement system, to help meet a mandate for at least 30% locally sourced foods in Hawaii’s public schools by 2030.

The act sets a temporary framework with a sunset date of June 30, 2028.

Key provisions and changes

Exemption threshold and process:

DOE procurements of local edible produce and packaged food products under $200,000 are exempt from the electronic procurement system.
These procurements must use a process of not less than three written quotes.
If the DOE cannot obtain the required number of written quotes, the department must provide a written justification and keep it on file.

Prohibition on artificial breakdown:

Prohibits the artificial division or parceling of procurements to circumvent small-purchase requirements or the procurement process.
Ensures multiple expenditures for local produce/food are not created at the inception of a project to evade procurement rules.

Scope and applicability:

Applies specifically to local edible produce and packaged food products procured by the DOE.
The exemption applies to purchases less than $200,000; purchases above this threshold would remain subject to existing procurement rules.

Sunset and effectiveness:

The act takes effect upon approval.
It repeals on June 30, 2028, unless extended or modified by subsequent legislation.

Who is affected

Primary: Hawaii Department of Education, as the state’s largest department with numerous schools and employees, responsible for supplying food and other goods for school operations.

Suppliers and vendors of local edible produce and packaged food products who bid for DOE contracts through the three-quote process (for purchases under $200,000).

Students and public schools benefit from continued and potentially enhanced access to locally sourced foods as part of the state’s nutrition and local-food mandates.

Procedural and timeline aspects

Legislative context:

Builds on Act 134, Session Laws of Hawaii 2025, which temporarily adjusted DOE small-purchase procurement rules through June 30, 2028.

Effective date and sunset:

Effective upon the Governor’s approval (Act 116, signed June 8, 2026).
Repeals on June 30, 2028, unless further legislative action extends or modifies the provisions.

Oversight and compliance:

The department must maintain written justifications for any missed quote requirements.
Compliance records should be kept to demonstrate adherence and to defend against potential challenges regarding procurement practices.

Practical impact and considerations

Administrative relief for DOE: Allows faster, less formal procurement for small-value local food purchases, potentially improving the DOE’s ability to meet local sourcing goals.

Risk management: Maintains safeguards by requiring three written quotes and preventing artificial fragmentation of purchases; requires documentation when quotes are not obtained.

Sunset consideration: The temporary nature means the policy could be re-evaluated in 2028, with potential permanent changes depending on legislative action and future procurement needs.

If you want, I can compare these changes to prior procurement rules or summarize potential impacts on DOE budgeting and supplier engagement.