RELATING TO THE FOOD HUB PILOT PROGRAM.

SB2718

THE SENATE

S.B. NO.

2718

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to the food hub pilot program
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION 1.
�
The
legislature finds that the State's overwhelming reliance on imported food poses
a significant risk to the State's food security, economic stability, and
community health.
�
The COVID-19 pandemic,
combined with recent federal cuts to agricultural and nutrition programs, has revealed
vulnerabilities in the State's food system, particularly for small farmers and
low-income families.

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The legislature further finds that
community-based food hubs, such as those supported under Act 313, Session Laws
of Hawaii 2022, have demonstrated measurable success in strengthening local
food networks by connecting the State's farmers directly to consumers, schools,
and institutions.
�
However, there remains
a critical policy gap in integrating these food hubs with community health
systems and public education institutions to promote not only access to food,
but also long-term public health and nutrition outcomes.

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The legislature recognizes the success of
local community‑based organizations that unite health care, education,
and agriculture through place-based food operations.
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These organizations demonstrate that food can
be medicine, thereby improving community health while empowering local farmers
and strengthening aina-based practices.
�

The legislature also finds that organizations that aggregate and
distribute culturally significant crops, such as ulu, have become a cornerstone
in local food system development.
�

Despite recent federal funding losses, these organizations continue to
build market access for local farmers and connect ulu-based foods to schools,
hospitals, and consumers statewide.

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The purpose of this Act is to:

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(1)
�
Require
the department of education, department of health, department of corrections
and rehabilitation, department of defense, and university of Hawaii to ensure
that thirty per cent of the produce purchased by each department consists of
fresh local agricultural products or local value-added, processed,
agricultural, or food products by January 1, 2028;

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(2)
�
Require
the department of agriculture and biosecurity to develop a nutrition- and
aina-based program for integration into public school curricula;

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(3)
�
Expand
access to Native Hawaiian crops by requiring the department of agriculture and
biosecurity to partner with a local aggregator to support the aggregation and
processing of Native Hawaiian staple crops; and

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(4)
�
Require
the department of agriculture and biosecurity to prioritize an organization
meeting certain requirements for grant funding.

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SECTION

2
.
�
Section 27-8,
Hawaii Revised Statutes, is amended by amending subsection (a) to read as
follows:

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"(a)
�

The department of education, department of health, department of
corrections and rehabilitation, department of defense, and university of Hawaii
system shall each ensure that a certain percentage of the
food

purchased for public schools, youth campuses, public hospitals, public prisons,
and any purchases made directly by the university of Hawaii for use in its
academic programs, as applicable, is fresh local agricultural products and
local value-added, processed, agricultural, or food products, as follows:

����
(1)
�
By January 1, 2025, fresh local
agricultural products and local value-added, processed, agricultural, or food
products shall constitute a minimum of ten per cent of the total
food

purchased during each calendar year, as measured by the per cent of total food
cost; provided that the department of education shall be exempt from the
requirements of this paragraph;

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(2)
�
By January 1, [
2030,
]
2028,

fresh local agricultural products and local value-added, processed,
agricultural, or food products shall constitute a minimum of [
eighteen
]
thirty

per cent of the total
food
purchased during each
calendar year, as measured by the per cent of total food cost; [
provided
that the department of education shall be exempt from the requirements of this
paragraph and instead shall be subject to the requirements in section
302A-405.6(a);

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(3)
�
By January 1, 2035, fresh local
agricultural products and local value-added, processed, agricultural, or food
products shall constitute a minimum of twenty-six per cent of the total
food

purchased during each calendar year, as measured by the per cent of total food
cost; provided that the department of education shall be exempt from the
requirements of this paragraph;
]

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[
(4)
]

(3)
�
By
January 1, 2040, fresh local agricultural products and local value-added,
processed, agricultural, or food products shall constitute a minimum of
thirty-four per cent of the total
food
purchased during each
calendar year, as measured by the per cent of total food cost;

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[
(5)
]

(4)
�
By
January 1, 2045, fresh local agricultural products and local value-added,
processed, agricultural, or food products shall constitute a minimum of
forty-two per cent of the total
food
purchased during each
calendar year, as measured by the per cent of total food cost; and

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[
(6)
]

(5)
�
By
January 1, 2050, fresh local agricultural products and local value-added,
processed, agricultural, or food products shall constitute a minimum of fifty
per cent of the total
food
purchased during each
calendar year, as measured by the per cent of total food cost."

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SECTION

3
.
�
Section
302A-405.6, Hawaii Revised Statutes, is amended by amending subsection (a) to
read as follows:

����
"(a)
�
The department shall ensure that b
y
January 1, [
2030,
]
2028,
fresh local agricultural products and
local value‑added processed, agricultural, or food products shall
constitute a minimum of thirty per cent of the total
food

purchased during each calendar year, as measured by the per cent of total food
cost."

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SECTION
4.
�
Act 313, Session Laws of Hawaii 2022,
is amended by amending section 2 to read as follows:

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"SECTION
2.
�
(a)
�

There is established a five-year food hub pilot program, which shall be
administered by the department of agriculture[
.
]
and biosecurity.

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(b)
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The food hub pilot program shall:

����
(1)
�
Adopt the United States Department of
Agriculture's working definition of "food hub", which means "a
centrally located facility with a business management structure facilitating
the aggregation, storage, processing, distribution, and/or marketing of
locally/regionally produced food products"; [
and
]

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(2)
�
Award grant funding to qualified
applicants for the construction of critical infrastructure to establish and
expand food hubs in each of the counties, including:

���������
(A)
�
Construction or improvement of
facilities for aggregation, washing, minimal processing, packaging, cold
storage, and other value‑additions; and

���������
(B)
�
Provision of technical assistance to
develop in‑state capacity to supply state institutions [
and
]
,
community organizations, and
other markets[
.
]
;

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(3)
�
Develop a nutrition- and aina-based
education program for integration in public school curricula that utilizes
locally sourced ingredients and teaches traditional food cultivation and
preparation methods;

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(4)
�
Collect data on local procurement,
community health, and economic outcomes; and

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(5)
�
Partner with a regional aggregator
supporting local procurement to:

���������
(A)
�
Support aggregation, processing, and
value-added production of ulu and other Native Hawaiian staple crops;

���������
(B)
�
Facilitate farm-to-school and
farm-to-hospital procurement pipelines; and

���������
(C)
�
Expand access to fresh, local, and
cultural significant foods across the island.

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(c)
�
The department of agriculture
and
biosecurity
shall establish criteria for the award of initial start-up
grant funding or subsequent expansion funding under the food hub pilot program,
including the following provisions:

����
(1)
�
Priority shall be given to [
organizations
]
:

���������
(A)
�
An organization capable of
leveraging existing infrastructure to demonstrate:

��������������
(i)
�
The direct links between food hub
distribution and health care and community wellness plans;

�������������
(ii)
�
The educational benefits of
integrating an aina-based learning program into a department of education
school; and

������������
(iii)
�
The economic and social benefits of
localized food systems for producers and consumers; and

���������
(B)
�
Organizations
having
demonstrated experience in aggregation, washing, minimal processing, packaging,
cold storage, and other value‑additions for delivering local produce to
local markets;

����
(2)
�
Qualifying applicants shall include
corporations, limited liability companies, partnerships, sole proprietorships,
non-profit organizations, and agricultural cooperatives that meet necessary
insurance requirements and provide a certificate of vendor compliance with
Hawaii compliance express;

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(3)
�
Applicants seeking to establish a new
food hub where none currently exist shall first secure a physical location for
the food hub and draft a detailed plan for the food hub's operation, including
activities in which the applicant intends to engage, such as serving as a
marketplace for buying and selling, or providing certified kitchen space in
which multiple farmers may share use of facilities for value-added product
development; and

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(4)
�
Applicants shall explain their intended
actions to increase access to locally produced food.

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(d)
�
The department of agriculture
and
biosecurity
shall require that the receipt of grant funding pursuant to the
food hub pilot program be conditioned upon the recipient's compliance with all
applicable state and federal food safety laws, rules, and regulations,
including the FDA Food Safety Modernization Act, P.L. 111-353, and that Act's
provisions on supplier verification.

����
(e)
�
The department of agriculture
and
biosecurity
shall adopt rules pursuant to chapter 91, Hawaii Revised
Statutes, for the administration and operation of the food hub pilot program.

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(f)
�
The food hub pilot program under this section
shall terminate on June 30, 2027.

����
(g)
�

The department of agriculture and biosecurity shall submit a report on
the progress and outcomes of the food hub pilot program to the legislature no
later than twenty days prior to the convening of the regular session of 2027.
"

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SECTION
5.
�
There is appropriated out of the
general revenues of the State of Hawaii the sum of $5,000,000 or so much
thereof as may be necessary for fiscal year 2026-2027 for the continued
implementation of the food hub pilot program established pursuant to Act 313,
Session Laws of Hawaii 2022, including the awarding of grant moneys to
qualifying food hubs.

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The
sum appropriated shall be expended by the department of agriculture and
biosecurity for the purposes of this Act.

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SECTION
6.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

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SECTION
7.
�
This Act shall take effect on July 1,
2026.

INTRODUCED BY:

_____________________________

Report Title:

DAB; Procurement;
Produce Contracts; Local Produce; Specifications; Food Hub Pilot Program; Grant
Funding; Report; Appropriation

Description:

Beginning
January 1, 2028, requires the Department of Education, Department of Health,
Department of Corrections and Rehabilitation, Department of Defense, and
University of Hawaii to ensure that thirty percent of the produce purchased by
that department consists of fresh local agricultural products or local
value-added, processed, agricultural, or food products.
�
Requires the Department of Agriculture and
Biosecurity to develop a nutrition- and aina-based program for integration into
public school curricular.
�
Requires DAB
to partner with a regional aggregator to support the aggregation and processing
of Native Hawaiian staple crops, facilitate procurement pipelines, and expand
access to Native Hawaiian crops.
�

Requires DAB to prioritize grants for an organization that meets certain
requirements.
�
Requires a report to the
Legislature.
�
Appropriates funds.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.