REPORT TITLE:
Trade School Regulation


DESCRIPTION:
Transfers responsibility for licensure and regulation of
acupuncture, barbering, cosmetology, massage, and real estate
schools from DOE to DCCA.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1238
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO PROFESSIONS AND OCCUPATIONS. 


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

 1      SECTION 1.  Licensure and regulation of private trade,
 
 2 vocational, or technical schools are currently the responsibility
 
 3 of the department of education (DOE) under sections 302A-424 to
 
 4 302A-428, Hawaii Revised Statutes.  According to the Auditor's
 
 5 report no. 97-17, the DOE "has failed to properly manage the
 
 6 licensing program."  The legislature finds that continued
 
 7 licensing and regulation of schools for acupuncture, barbering,
 
 8 cosmetology, massage, and real estate is warranted and that the
 
 9 responsibility should be transferred to the department of
 
10 commerce and consumer affairs which regulates the licensing of
 
11 practitioners in these fields.
 
12      The purpose of this Act is to require the department of
 
13 commerce and consumer affairs to license and regulate trade
 
14 schools for acupuncture, barbering, cosmetology, massage, and
 
15 real estate.
 
16      SECTION 2.  Section 436E-2, Hawaii Revised Statutes, is
 
17 amended by adding a new definition to be appropriately inserted
 
18 and to read as follows:
 
19      ""Acupuncture practitioner school" means any plan or method
 

 
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 1 used by any person, firm, organization, limited liability
 
 2 company, or corporation for giving instruction in any form or
 
 3 manner in the practice of acupuncture for which a license is
 
 4 required under this chapter, for a consideration, reward, or
 
 5 promise of any nature, including correspondence schools located
 
 6 within the State, except as follows:
 
 7      (1)  Schools maintained or classes conducted, by employers
 
 8           for their own employees if no fee or tuition is
 
 9           charged;
 
10      (2)  Courses of instruction given by a fraternal society,
 
11           benevolent order, or professional organization to its
 
12           members, which are not operated for profit;
 
13      (3)  Classes conducted for less than five students at one
 
14           time and the same time; or
 
15      (4)  Classes or courses of instruction that are conducted
 
16           for twenty or fewer class sessions during any twelve-
 
17           month period."
 
18      SECTION 3.  Chapter 436E, Hawaii Revised Statutes, is
 
19 amended by adding a new section to be appropriately designated
 
20 and to read as follows:
 
21      "§436E-    Licensing and regulation of acupuncture
 
22 practitioner schools.  (a)  No acupuncture practitioner school
 
23 shall operate in this State, in any manner, without having a
 
24 valid unrevoked license from the board.
 

 
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 1      (b)  The board shall adopt rules pursuant to chapter 91 to
 
 2 establish licensing requirements for acupuncture practitioner
 
 3 schools, including but not limited to forms, procedures, and
 
 4 fees.
 
 5      (c)  The board shall adopt rules pursuant to chapter 91 to
 
 6 establish licensing suspension and revocation requirements and
 
 7 procedures for acupuncture practitioner schools.
 
 8      (d)  Violation of this section shall be subject to penalties
 
 9 set forth under section 436-12."
 
10      SECTION 4.  Section 438-1, Hawaii Revised Statutes, is
 
11 amended by adding a new definition to be appropriately inserted
 
12 and to read as follows:
 
13      ""Barbering school" means any plan or method used by any
 
14 person, firm, organization, limited liability company, or
 
15 corporation for giving instruction in any form or manner in the
 
16 practice of barbering for which a license is required under this
 
17 chapter, for a consideration, reward, or promise of any nature,
 
18 including correspondence schools located within the State,
 
19 except as follows:
 
20      (1)  Schools maintained or classes conducted, by employers
 
21           for their own employees if no fee or tuition is
 
22           charged;
 

 
 
 
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 1      (2)  Courses of instruction given by a fraternal society,
 
 2           benevolent order, or professional organization to its
 
 3           members, which are not operated for profit;
 
 4      (3)  Classes conducted for less than five students at one
 
 5           time and the same time; or
 
 6      (4)  Classes or courses of instruction that are conducted
 
 7           for twenty or fewer class sessions during any twelve-
 
 8           month period."
 
 9      SECTION 5.  Chapter 438, Hawaii Revised Statutes, is amended
 
10 by adding a new section to be appropriately designated and to
 
11 read as follows:
 
12      "§438-    Licensing and regulation of barbering schools.
 
13 (a)  No barbering school shall operate in this State, in any
 
14 manner, without having a valid unrevoked license from the board.
 
15      (b)  The board shall adopt rules pursuant to chapter 91 to
 
16 establish licensing requirements for barbering schools, including
 
17 but not limited to forms, procedures, and fees.
 
18      (c)  The board shall adopt rules pursuant to chapter 91 to
 
19 establish licensing suspension and revocation requirements and
 
20 procedures for barbering schools.
 
21      (d)  Violation of this section shall be subject to penalties
 
22 set forth under section 438-13."
 
23      SECTION 6.  Section 439-1, Hawaii Revised Statutes, is
 

 
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 1 amended by adding a new definition to be appropriately inserted
 
 2 and to read as follows:
 
 3      ""Beauty operator school" means any plan or method used by
 
 4 any person, firm, organization, limited liability company, or
 
 5 corporation for giving instruction in any form or manner in the
 
 6 practice of cosmetology for which a license is required under
 
 7 this chapter, for a consideration, reward, or promise of any
 
 8 nature, including correspondence schools located within the
 
 9 State, except as follows:
 
10      (1)  Schools maintained or classes conducted, by employers
 
11           for their own employees if no fee or tuition is
 
12           charged;
 
13      (2)  Courses of instruction given by a fraternal society,
 
14           benevolent order, or professional organization to its
 
15           members, which are not operated for profit;
 
16      (3)  Classes conducted for less than five students at one
 
17           time and the same time; or
 
18      (4)  Classes or courses of instruction that are conducted
 
19           for twenty or fewer class sessions during any twelve-
 
20           month period."
 
21      SECTION 7.  Chapter 439, Hawaii Revised Statutes, is amended
 
22 by adding a new section to be appropriately designated and to
 
23 read as follows:
 

 
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 1      "§439-    Licensing and regulation of beauty operator
 
 2 schools.  (a)  No beauty operator school shall operate in this
 
 3 State, in any manner, without having a valid unrevoked license
 
 4 from the board.
 
 5      (b)  The board shall adopt rules pursuant to chapter 91 to
 
 6 establish licensing requirements for beauty operator schools,
 
 7 including but not limited to forms, procedures, and fees.
 
 8      (c)  The board shall adopt rules pursuant to chapter 91 to
 
 9 establish licensing suspension and revocation requirements and
 
10 procedures for beauty operator schools.
 
11      (d)  Violation of this section shall be subject to penalties
 
12 set forth under section 439-22."
 
13      SECTION 8.  Section 452-1, Hawaii Revised Statutes, is
 
14 amended by adding a new definition to be appropriately inserted
 
15 and to read as follows:
 
16      ""Massage therapy school" means any plan or method used by
 
17 any person, firm, organization, limited liability company, or
 
18 corporation for giving instruction in any form or manner in the
 
19 practice of massage for which a license is required under this
 
20 chapter, for a consideration, reward, or promise of any nature,
 
21 including correspondence schools located within the State, except
 
22 as follows:
 
23      (1)  Schools maintained or classes conducted, by employers
 
24           for their own employees if no fee or tuition is
 

 
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 1           charged;
 
 2      (2)  Courses of instruction given by a fraternal society,
 
 3           benevolent order, or professional organization to its
 
 4           members, which are not operated for profit;
 
 5      (3)  Classes conducted for less than five students at one
 
 6           time and the same time; or
 
 7      (4)  Classes or courses of instruction that are conducted
 
 8           for twenty or fewer class sessions during any twelve-
 
 9           month period."
 
10      SECTION 9.  Chapter 452, Hawaii Revised Statutes, is amended
 
11 by adding a new section to be appropriately designated and to
 
12 read as follows:
 
13      "§452-    Licensing and regulation of massage therapy
 
14 schools.  (a)  No massage therapy school shall operate in this
 
15 State, in any manner, without having a valid unrevoked license
 
16 from the board.
 
17      (b)  The board shall adopt rules pursuant to chapter 91 to
 
18 establish licensing requirements for massage therapy schools,
 
19 including but not limited to forms, procedures, and fees.
 
20      (c)  The board shall adopt rules pursuant to chapter 91 to
 
21 establish licensing suspension and revocation requirements and
 
22 procedures for massage therapy schools.
 
23      (d)  Violation of this section shall be subject to penalties
 
24 set forth under section 452-19."
 

 
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 1      SECTION 10.  Section 467-1, Hawaii Revised Statutes, is
 
 2 amended by adding a new definition to be appropriately inserted
 
 3 and to read as follows:
 
 4      ""Real estate school" means any plan or method used by any
 
 5 person, firm, organization, limited liability company, or
 
 6 corporation for giving instruction in any form or manner in the
 
 7 practice of real estate broker or salesperson for which a license
 
 8 is required under this chapter, for a consideration, reward, or
 
 9 promise of any nature, including correspondence schools located
 
10 within the State, except as follows:
 
11      (1)  Schools maintained or classes conducted, by employers
 
12           for their own employees if no fee or tuition is
 
13           charged;
 
14      (2)  Courses of instruction given by a fraternal society,
 
15           benevolent order, or professional organization to its
 
16           members, which are not operated for profit;
 
17      (3)  Classes conducted for less than five students at one
 
18           time and the same time; or
 
19      (4)  Classes or courses of instruction that are conducted
 
20           for twenty or fewer class sessions during any twelve-
 
21           month period."
 
22      SECTION 11.  Chapter 467, Hawaii Revised Statutes, is
 
23 amended by adding a new section to be appropriately designated
 

 
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                                     S.B. NO.           1238
                                                        
                                                        

 
 1 and to read as follows:
 
 2      "§452-    Licensing and regulation of real estate schools.
 
 3 (a)  No real estate school shall operate in this State, in any
 
 4 manner, without having a valid unrevoked license from the board.
 
 5      (b)  The board shall adopt rules pursuant to chapter 91 to
 
 6 establish licensing requirements for real estate schools,
 
 7 including but not limited to forms, procedures, and fees.
 
 8      (c)  The board shall adopt rules pursuant to chapter 91 to
 
 9 establish licensing suspension and revocation requirements and
 
10 procedures for real estate schools.
 
11      (d)  Violation of this section shall be subject to penalties
 
12 set forth under section 467-26."
 
13      SECTION 12.  Section 302A-425, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "§302A-425  License required for private trade, vocational,
 
16 or technical school.  No private trade, vocational, or technical
 
17 school shall be operated by any person or persons, firm, or any
 
18 other private organization or corporation for the purpose of
 
19 teaching any trade, occupation, or vocation unless there is first
 
20 secured from the department a license issued in accordance with
 
21 sections 302A-424 to 302A-428 and in such form as the department
 
22 may direct[.]; provided that schools for acupuncture, barbering,
 
23 cosmetology, massage, and real estate shall be licensed and
 

 
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 1 regulated by the department of commerce and consumer affairs.
 
 2 The purpose of the licensing and regulation is to protect
 
 3 consumers against practices by private trade, vocational, or
 
 4 technical schools that are false, deceptive, misleading, or
 
 5 unfair, and to help ensure adequate educational quality at
 
 6 private trade, vocational, or technical schools."
 
 7      SECTION 13.  Section 436E-12, Hawaii Revised Statutes, is
 
 8 amended by amending subsection (a) to read as follows:
 
 9      "(a)  Any person except a person licensed under this chapter
 
10 who practices, treats, or instructs in any phase of acupuncture
 
11 or who operates an acupuncture practitioner school without a
 
12 license or permit, as appropriate, issued by the board, or uses
 
13 any word or title to induce the belief that they are engaged in
 
14 the practice of any type of acupuncture, shall be guilty of a
 
15 misdemeanor and subject to a fine of not less than $50 nor more
 
16 than $1,000 for each violation."
 
17      SECTION 14.  Section 438-13, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§438-13  Penalties.  Any person who practices barbering,
 
20 operates a barber shop, operates a barbering school, or acts in
 
21 any capacity wherein a license, apprentice permit, or temporary
 
22 permit is required, without a license, apprentice permit, or
 
23 temporary permit as provided in this chapter shall be fined not
 

 
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 1 more than $100, or imprisoned not more than six months, or both.
 
 2 Each day of violation shall be a separate offense."
 
 3      SECTION 15.  Section 439-22, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "§439-22  Penalty.  Any person who practices cosmetology,
 
 6 maintains a school or a beauty shop, operates a beauty operator
 
 7 school or acts in any capacity wherein a license is required,
 
 8 without a license as provided in this chapter, shall be fined not
 
 9 more than $100, or imprisoned not more than ninety days, or both.
 
10 Each and every day of violation shall be a separate offense."
 
11      SECTION 16.  Section 452-19, Hawaii Revised Statutes, is
 
12 amended by amending subsection (a) to read as follows:
 
13      "(a)  Any person who practices massage or maintains a
 
14 massage therapy establishment, or operates a massage therapy
 
15 school, or acts in any capacity wherein a license is required by
 
16 this chapter, without a license provided for in this chapter,
 
17 shall be guilty of a petty misdemeanor."                         
 
18      SECTION 17.  Section 467-26, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "§467-26  Penalty.  Any person or real estate school
 
21 violating this chapter shall be fined not more than $5,000 for
 
22 each violation."
 
23      SECTION 18.  Statutory material to be repealed is bracketed.
 

 
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 1 New statutory material is underscored.
 
 2      SECTION 19.  This Act shall take effect upon its approval.
 
 3 
 
 4                           INTRODUCED BY:  _______________________