Report Title:

Trade Schools

Description:

Transfers from the department of education to the department of commerce and consumer affairs regulatory jurisdiction over trade schools.

HOUSE OF REPRESENTATIVES

H.B. NO.

1618

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO PRIVATE TRADE, VOCATIONAL, OR TECHNICAL SCHOOLS.

 

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

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

private trade, vocational, or technical schools

§ -1 Definitions. As used in this chapter, the following terms have the following meanings unless the context indicates otherwise:

"Department" means the department of commerce and consumer affairs.

"Director" means the director of commerce and consumer affairs.

"Private trade, vocational, or technical school" means any plan or method used by any person or persons, firm, or any other organization or corporation for giving instruction in any form or manner in any trade, occupation, or vocation for a consideration, reward, or promise of whatever nature, including correspondence schools located within the State. The term does not include "public schools" defined in section 302A-101.

§ -2 Regulation of other schools and classes. The department, at its discretion, may regulate private trade, vocational, or technical school.

§ -3 License required for private trade, vocational, or technical school. No private trade, vocational, or technical school shall be operated by any person or persons, firm, or any other private organization or corporation for the purpose of teaching any trade, occupation, or vocation unless there is first secured from the department a license issued in accordance with this chapter and in such form as the department may direct. 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.

§ -4 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 this chapter or the rules that may be adopted by the director. 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.

§ -5 Powers of department. No license shall be issued under this chapter until the department has approved the method and content of the advertising, the standards and the methods of instruction, and the equipment provided. The department may consult with trade or vocational experts as to the equipment provided and the standards and methods of instruction offered. The department may adopt reasonable rules under chapter 91 relating to the enforcement of this chapter.

§ -6 Penalty. Any person, firm, or corporation that violates any provision of this chapter shall be guilty of a misdemeanor, but shall be subject to a maximum fine of not more than $100 or imprisonment for not more than ninety days, or both."

SECTION 2. Section 302A-101, Hawaii Revised Statutes, is amended by deleting the definition of "private trade, vocational, or technical school".

[""Private trade, vocational, or technical school" means any plan or method used by any person or persons, firm, or any other organization or corporation for giving instruction in any form or manner in any trade, occupation, or vocation for a consideration, reward, or promise of whatever nature, including correspondence schools located within the State, except as follows:

(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) Flying schools qualified under the Federal Aviation Administration;

(4) Classes conducted for less than five students at one and the same time;

(5) Classes or courses of instruction that are conducted for twenty or fewer class sessions during any twelve-month period;

(6) Avocational, hobby, recreation, or health classes or courses;

(7) Courses of instruction on religious subjects given under the auspices of a religious organization; and

(8) Schools registered 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 3. Section 302A-424, Hawaii Revised Statutes, is repealed.

["[§302A-424] Regulation of other schools and classes. The department, at its discretion, may regulate schools, classes, or courses excepted from the definition of "private trade, vocational, or technical school"."]

SECTION 4. Section 302A-425, Hawaii Revised Statutes, is repealed.

["§302A-425 License required for private trade, vocational, or technical school. No private trade, vocational, or technical school shall be operated by any person or persons, firm, or any other private organization or corporation for the purpose of teaching any trade, occupation, or vocation unless there is first secured from the department a license issued in accordance with sections 302A-424 to 302A-428 and in such form as the department may direct. 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, and to help ensure adequate educational quality at private trade, vocational, or technical schools."]

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 sections 302A-424 to 302A-428 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. Section 302A-427, Hawaii Revised Statutes, is repealed.

["[§302A-427] Powers of department. No license shall be issued under sections 302A-424 to 302A-428 until the department has approved the method and content of the advertising, the standards and the methods of instruction, and the equipment provided. The department may consult with trade or vocational experts as to the equipment provided and the standards and methods of instruction offered. The department may adopt reasonable rules relating to the enforcement of sections 302A-424 to 302A-428."]

SECTION 7. Section 302A-428, Hawaii Revised Statutes, is repealed.

["[§302A-428] Penalty. Any person, firm, or corporation that violates sections 302A-424 to 302A-428 shall be guilty of a misdemeanor, but shall be subject to a maximum fine of not more than $100 or imprisonment for not more than ninety days, or both."]

SECTION 8. All rights, powers, functions, and duties of the department of education relating to the licensing of private trade, vocational, or technical schools are transferred to the department of commerce and consumer affairs. 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 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 department of commerce and consumer affairs shall be transferred with the functions to which they relate.

SECTION 10. All rules, policies, procedures, guidelines, and other material adopted or developed by the department of education to implement provisions of the Hawaii Revised Statutes which are reenacted or made applicable to the department of commerce and consumer affairs by this Act, shall remain in full force and effect until amended or repealed by the department of commerce and consumer affairs pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the department of education or superintendent of education in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of commerce and consumer affairs or the director of commerce and consumer affairs as appropriate.

SECTION 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 12. This Act shall take effect on July 1, 2005.

INTRODUCED BY:

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