SCR121

Report Title:

Schools; Licensing

THE SENATE	S.C.R. NO.	121
TWENTY-FIRST LEGISLATURE, 2001
STATE OF HAWAII

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SENATE CONCURRENT

RESOLUTION

 

REQUESTING A STUDY ON THE LICENSING OF PRIVATE TRADE, VOCATIONAL OR TECHNICAL SCHOOLS.

 

WHEREAS, all private trade, vocational, or technical schools are required to be licensed by the Department of Education under section 302A-425, Hawaii Revised Statutes; and

WHEREAS, the purpose of licensing and regulation is to protect consumers against practices by private trade, vocational, or technical schools that are false, deceptive, misleading, or unfair; and

WHEREAS, the Department of Education does not have the content expertise to determine whether a school’s curriculum meets individual licensure requirements and must defer to the Department of Commerce and Consumer Affair’s respective board or commission for that expertise and approval; and

WHEREAS, regulated industries under the auspices of the Department of Commerce and Consumer Affair’s respective board or commission presently regulate the licensure of individuals desiring to enter into the industry; and

WHEREAS, dual regulation is unnecessary, especially in light of the State’s present financial situation; and

WHEREAS, currently, schools of Real Estate and Cosmetology are regulated by their respective boards under the Department of Commerce and Consumer Affairs and not by the Department of Education; and

WHEREAS, both the Department of Education and the Department of Commerce and Consumer Affair’s Board of Massage regulate schools and workshops offered by the massage profession; and

WHEREAS, when two agencies regulate one profession, such as massage, it causes confusion and allows some schools to circumvent the need for obtaining a license; and

WHEREAS, the Auditor in 1997 (Report No. 97-17) recommended to the Legislature that the function of licensing massage schools should be placed in a more appropriate agency; and

WHEREAS, the Department of Education’s primary mission is the education and support of K-12 students; and

WHEREAS, the Department of Education does not have the authority or legal expertise to regulate private trade, vocational, or technical schools; and

WHEREAS, the function of licensing private trade, vocational, or technical schools is not directly funded by the Legislature; and

WHEREAS, there have been recent attempts to make government functions more self-sufficient; and

WHEREAS, surety bonds for student indemnification are becoming more expensive and difficult to obtain by the schools; and

WHEREAS, there are questions regarding the need for governmental intervention through license practices; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-First Legislature of the State of Hawaii, Regular Session of 2001, the House of Representatives concurring, that the Auditor is requested to conduct a study to:

(1) Investigate potential State liability and other issues to determine whether the State should continue the licensure of private, vocational, technical, or trade schools, and assess the potential impact to the State if such regulation were to be repealed; and

(2) Recommend alternative strategies (such as transferring licensure to a more appropriate state agency or making licensure self-sufficient), determine their economic impact, and suggest potential means of implementation; and

(3) Investigate, assess the economic impact of, and recommend alternative means of student indemnification (such as tuition recovery alternatives to surety bonds that are presently required);

and

BE IT FURTHER RESOLVED that the Auditor shall submit a report of its findings and recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2002; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor, Chairperson of the Board of Education, Superintendent of Education, and Director of Commerce and Consumer Affairs.

 

 

	OFFERED BY:	_____________________________