Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 252
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Higher Education, to which was referred
H.B. No. 252 entitled: 


begs leave to report as follows:

     The purpose of this bill is to prohibit unaccredited
institutions from issuing degrees unless they comply with certain

     Testimony in support of this bill was received from the
Department of Commerce and Consumer Affairs, the University of
Phoenix, the University of the Nations, the University of
Professional Studies, and the Chamber of Commerce of Hawaii.
Your Committee received testimony in support of the intent of the
measure from the University of Hawaii and the State Post-
Secondary Education Commission.

     Your Committee finds that the number of unaccredited degree
granting institutions operating under Hawaii's lenient laws
continue to increase.  While there are legitimate unaccredited
institutions that provide sound educational services, there are
others that do not and are merely "diploma mills".  They operate
in Hawaii unchecked in their lack of providing educational
services.  The bill is designed to eliminate "diploma mills" by
requiring a service of process, physical presence, maintenance of
student information, disclosure and sanctions.

                                 STAND. COM. REP. NO. 51
                                 Page 2

     The bill has been amended by:

     (1)  Deleting the requirement that the Advisory Board use as
          a guide the "National Guide to Education Credits for
          Training Program" by the American Council of Education;

     (2)  Prohibiting any unaccredited institution from declaring
          when it is a candidate for accreditation; and

     (3)  Making technical, nonsubstantive changes for purposes
          of clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Higher Education that is attached to this report,
your Committee is in accord with the intent and purpose of H.B.
No. 252, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 252, H.D. 1, and
be referred to the Committee on Consumer Protection and Commerce.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Higher Education,

                                   DAVID MORIHARA, Chair