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THE SENATE |
S.B. NO. |
3120 |
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THIRTY-THIRD LEGISLATURE, 2026 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO SCHOOL LICENSURE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
Various
audits and legislative assessments, including those conducted in 1997, 2002,
and subsequent years, consistently highlight the department of education's lack
of expertise, capacity, and alignment with consumer protection functions
necessary for effective oversight of private trade, vocational, and technical
schools. This gap in capability has
raised concerns about the adequacy of consumer protection measures and the
quality of education provided by these institutions.
In
response to these findings, recommendations have been made over the years to
transfer the responsibilities of private trade, vocational, and technical
schools out of the department of education.
The university of Hawaii is better suited to administer this program,
particularly the university of Hawaii community colleges. Given that the university of Hawaii community
colleges 2023-2029 strategic plan imperative 3 has a stated goal to
"Partner with industry stakeholders and community-based organizations to
be the premier training provider to meet the state's workforce needs in
sustainable ways" and that these professions include education,
healthcare, technology, and skilled trades; the university of Hawaii is better
equipped than the department of education with the requisite expertise to
oversee private trade, vocational, and technical schools.
Given
that the department of education's primary mission is to provide primary and
secondary education to students in grades kindergarten through twelfth grade,
the purpose of this Act is to transfer the licensing responsibilities of
private trade, vocational, and technical schools from the department of
education to the university of Hawaii.
SECTION 2. The Hawaii Revised Statutes is amended by
adding a new chapter to be appropriately designated and to read as follows:
"CHAPTER
LICENSURE OF PRIVATE TRADE,
VOCATIONAL, OR TECHNICAL SCHOOL
§ -1 Definitions. As used in this chapter, unless the context
clearly requires otherwise:
"Private trade, vocational, or technical school" means
an organization or corporation that provides instruction in any form or manner
in any trade, occupation, or vocation for a consideration, reward, or promise
of whatever nature, except:
(1) Schools
maintained, or classes conducted, by employers for their own employees where no
fee or tuition is charged;
(2) Courses of instruction given by
any fraternal society, benevolent order, or professional organization to its
members, which courses are not operated for profit;
(3) Classes conducted for less than
five students at one and the same time;
(4) Classes or courses of
instruction that are conducted for twenty or fewer class sessions during any
twelve-month period;
(5) Avocational, hobby,
recreation, or health classes or courses;
(6) Courses of instruction
on religious subjects given under the auspices of a religious organization; or
(7) Schools registered or
authorized by the department of commerce and consumer affairs
or by boards and commissions placed in the department
of commerce and consumer affairs for administrative
purposes.
"University" refers
to the university of Hawaii.
§ -2 Licensure of private trade, vocational, or
technical school. (a)
The university shall
license private trade, vocational, and technical schools as necessary for:
(1) Compliance with
federal regulations or accreditation requirements;
(2) Qualifying the private
trade, vocational, or technical school for federal, state, or private funding;
or
(3) Qualifying graduates
of the private trade, vocational, or technical school for professional
licensure.
The purpose of the licensing is to protect consumers against
practices by private trade, vocational, or technical schools that are false,
deceptive, misleading, or unfair.
(b) A private trade,
vocational, or technical school that requires licensure under subsection (a)
shall submit the following to the university in
such form as the university may direct:
(1) Proof that the school
is accredited by an accrediting commission of career schools and colleges,
accrediting council for continuing education and training, or an accrediting
bureau of health education schools; provided that in lieu of such
accreditation, the school may provide a letter from the relevant state,
federal, or other licensing authority demonstrating that the private trade,
vocational, or technical school's curriculum is sufficient to prepare a
graduate to qualify for professional licensure;
(2) Proof of current business
registration demonstrating
good standing;
(3) A copy of the school's
current general excise and tax license, including a current tax clearance; and
(4) Proof that the school
has secured a surety bond in the sum of $50,000, payable in a form satisfactory
to the university, to
provide indemnification to any student suffering a financial loss as a result
of the school not fulfilling its obligations under the terms of its license;
provided that the bonding requirement may be reduced at the discretion of the university.
(c) A private trade,
vocational, or technical school applying for initial licensure shall pay an
initial license fee of $_____ to the university
upon application for licensure under this section.
(d) Every two years
following the date of initial licensure, a private trade, vocational, or
technical school shall apply for a renewal license by:
(1) Submitting all documents
required under subsection (b), with updated information as appropriate;
(2) Submitting a list of
complaints officially filed within the past two years with any state or federal
government agency or directly with the school; and
(3) Paying a renewal
licensure fee of $_____.
(e) Complaints alleging
unfair or deceptive acts or practices by a private trade, vocational, or
technical school shall be filed with the appropriate branch of the university for review, investigation,
and appropriate recommendation for action, including appeals from action taken.
(f) Fees collected
pursuant to this section shall be deposited into the general fund.
(g) The university may adopt reasonable rules
relating to the implementation of this section and section -3.
§
-3 Suspension and revocation of
license; procedure. (a)
The university, after
notice and opportunity for a hearing, may suspend or revoke a license at any
time when, in the judgment of the university,
the licensee is not complying with section
-2 or the rules that may be adopted by the university. The notice of hearing shall be served
personally or sent to the licensee by registered or certified mail with return
receipt at the licensee's last known address.
(b) Notice of suspension
or revocation shall be served personally upon the licensee or sent to the
licensee by registered or certified mail with return receipt, and the licensee
shall forward the licensee's license at once to the university, and cease at once to
operate the private trade, vocational, or technical school.
(c) All proceedings shall
be subject to chapter 91."
SECTION 3. Section
302A-101, Hawaii Revised Statutes, is amended as follows:
(1) By amending the
definition of "license" to read as follows:
""License" means the
recognition granted by the Hawaii teacher standards board to an individual to
practice the profession of teaching. [This
definition shall not apply to the term "license" as it is used in
sections 302A-425 and 302A-426.]"
(2) By repealing the
definition of "private trade, vocational, or technical school."
[""Private trade, vocational, or technical
school" means an organization or corporation that provides instruction in
any form or manner in any trade, occupation, or vocation for a consideration,
reward, or promise of whatever nature, except:
(1) Schools
maintained, or classes conducted, by employers for their own employees where no
fee or tuition is charged;
(2) Courses
of instruction given by any fraternal society, benevolent order, or
professional organization to its members, which courses are not operated for
profit;
(3) Classes
conducted for less than five students at one and the same time;
(4) Classes or
courses of instruction that are conducted for twenty or fewer class sessions
during any twelve-month period;
(5) Avocational,
hobby, recreation, or health classes or courses;
(6) Courses of
instruction on religious subjects given under the auspices of a religious
organization; and
(7) Schools
registered or authorized by the department of commerce and consumer affairs or
by boards and commissions placed in the department of commerce and consumer
affairs for administrative purposes."]
SECTION 4. Section
302A-425, Hawaii Revised Statutes, is repealed.
["§302A-425
Licensure of private trade, vocational, or technical school. (a)
The department shall license private trade, vocational, and technical
schools as necessary for:
(1) Compliance
with federal regulations or accreditation requirements;
(2) Qualifying
the private trade, vocational, or technical school for federal, state, or
private funding; or
(3) Qualifying
graduates of the private trade, vocational, or technical school for
professional licensure.
The purpose of the licensing and regulation is to protect
consumers against practices by private trade, vocational, or technical schools
that are false, deceptive, misleading, or unfair. The department shall not be responsible for
review of curriculum or assurance of program quality for those private trade,
vocational, and technical schools whose curriculum or program falls outside of
the department's mission.
(b) A private
trade, vocational, or technical school that requires licensure under subsection
(a) shall submit the following to the department in such form as the department
may direct:
(1) Proof that
the school is accredited by an accrediting commission of career schools and
colleges, accrediting council for continuing education and training, or an
accrediting bureau of health education schools; provided that in lieu of such
accreditation, the school may provide a letter from the relevant state,
federal, or other licensing authority demonstrating that the private trade,
vocational, or technical school's curriculum is sufficient to prepare a
graduate to qualify for professional licensure;
(2) Proof
of current business registration demonstrating good standing;
(3) A copy of
the school's current general excise tax license, including a current tax
clearance; and
(4) Proof that
the school has secured a surety bond in the sum of $50,000, payable in a form
satisfactory to the department, to provide indemnification to any student
suffering a financial loss as a result of the school not fulfilling its
obligations under the terms of its license; provided that the bonding
requirement may be reduced at the discretion of the department.
(c) A private
trade, vocational, or technical school applying for initial licensure after
December 31, 2017, shall pay an initial license fee of $2,000 to the department
upon application for licensure under this section.
(d) Every two
years following the date of initial licensure, a private trade, vocational, or
technical school shall apply for a renewal license by:
(1) Submitting
all documents required under subsection (b), with updated information as
appropriate;
(2) Submitting a
list of complaints officially filed within the past two years with any state or
federal government agency or directly with the school; and
(3) For
any application for license renewal submitted after December 31, 2017, paying a
renewal licensure fee of $2,000.
(e) Complaints
alleging unfair or deceptive acts or practices by a private trade, vocational,
or technical school shall be filed with the appropriate branch of the
department of commerce and consumer affairs for review, investigation, and
appropriate recommendation for action, including appeals from action taken.
(f) Fees
collected pursuant to this section shall be deposited into the general fund.
(g) The
department may adopt reasonable rules relating to the implementation of this
section and section 302A-426."]
SECTION 5. Section
302A-426, Hawaii Revised Statutes, is repealed.
["§302A-426
Suspension and revocation of license; procedure. (a)
The department, after notice and opportunity for a hearing, may suspend
or revoke a license at any time when, in the judgment of the department, the
licensee is not complying with section 302A-425 or the rules that may be
adopted by the board. The notice of
hearing shall be served personally or sent to the licensee by registered or
certified mail with return receipt at the licensee's last known address.
(b) Notice of
suspension or revocation shall be served personally upon the licensee or sent
to the licensee by registered or certified mail with return receipt, and the
licensee shall forward the licensee's license at once to the department, and
cease at once to operate the private trade, vocational, or technical school.
(c) All proceedings
shall be subject to chapter 91."]
SECTION 6. All rights,
powers, functions, and duties previously performed by the department of
education under sections 302A-425 through 302A-426, Hawaii Revised Statutes,
are transferred to the university of Hawaii.
SECTION 7. All rules,
policies, procedures, guidelines, and other material adopted or developed by
the department of education to implement provisions of the Hawaii Revised
Statutes that are reenacted or made applicable to the university of Hawaii by this Act shall
remain in full force and effect until amended or repealed by the university
of Hawaii pursuant to chapter 91, Hawaii Revised
Statutes.
In the interim, every reference to the department of education
or the superintendent of education in those rules, policies, procedures, guidelines, and other material is
amended to refer to the university of Hawaii or the president of the university
of Hawaii, as appropriate.
SECTION 8. All deeds,
leases, contracts, loans, agreements, permits, or other documents executed or
entered into by or on behalf of the department of education pursuant to
sections 302A-425 through 302A-426, Hawaii Revised Statutes, shall remain in
full force and effect. Upon the
effective date of this Act, every reference to the department of education or
the superintendent of education therein shall be construed as reference to the university of Hawaii or the president of the university of Hawaii, as appropriate.
SECTION 9. All
appropriations, records, equipment, machines, files, supplies, contracts,
books, papers, documents, maps, and other personal property heretofore made,
used, acquired, or held by the department of education relating to the
functions transferred to the university of Hawaii shall be transferred with the functions to which they relate.
SECTION 10. All officers
and employees whose functions are transferred by this Act shall be transferred
with their functions and shall continue to perform their regular duties upon
their transfer, subject to the state personnel laws and this Act.
No officer or employee of the State having tenure shall suffer
any loss of salary, seniority, prior service credit, vacation, sick leave, or
other employee benefit or privilege as a consequence of this Act, and such
officer or employee may be transferred or appointed to a civil service position
without the necessity of examination; provided that the officer or employee
possesses the minimum qualifications for the position to which transferred or
appointed; and provided that subsequent changes in status may be made pursuant
to applicable civil service and compensation
laws.
An officer or employee of the State who does not have tenure and
who may be transferred or appointed to a civil service position as a
consequence of this Act shall become a civil service employee without the loss
of salary, seniority, prior service credit, vacation, sick leave, or other
employee benefits or privileges and without the necessity of examination;
provided that such officer or employee possesses the minimum qualifications for
the position to which transferred or appointed.
If an office or position held by an officer or employee having
tenure is abolished, the officer or employee shall not thereby be separated
from public employment, but shall remain in the employment of the State with
the same pay and classification and shall be transferred to some other office
or position for which the officer or employee is eligible under the personnel
laws of the State as determined by the head of the department or the governor.
SECTION 11. The
department of education and the university of Hawaii shall collaborate to implement the transfers and transitions required
under this Act with as little disruption as possible to ongoing duties,
responsibilities, and public services provided.
SECTION 12.
Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 13. This Act, upon its approval, shall take effect on July 1, 2026.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
Report Title:
Private Trade, Vocational, and Technical Schools; Licensing; DOE; UH
Description:
Transfers the licensing authority of private trade, vocational, and technical schools from the Department of Education to the University of Hawaii.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.