STAND. COM. REP. NO.  1256

 

Honolulu, Hawaii

                , 2013

 

RE:   H.C.R. No. 105

      H.D. 1

 

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Sir:

 

     Your Committee on Higher Education, to which was referred H.C.R. No. 105 entitled:

 

"HOUSE CONCURRENT RESOLUTION REQUESTING THE AUDITOR TO CONDUCT A STUDY OF THE REGULATION OF UNACCREDITED DEGREE GRANTING INSTITUTIONS IN THE STATES,"

 

begs leave to report as follows:

 

     The purpose of this measure is to protect students in the state by requesting the Auditor to conduct a study of the regulation of unaccredited degree granting institutions in the state, which are currently governed under Chapter 446E, Hawaii Revised Statutes (Chapter 446E).

 

     The Office of Consumer Protection provided comments.

 

     Your Committee finds that the advent of the internet and the ability to conduct courses of study online has resulted in a concomitant increase in the number of unaccredited degree granting institutions attempting to do business in Hawaii.  The Department of Commerce and Consumer Affairs Office of Consumer Protection was given the authority under amendments to the original Chapter 446E to enforce provisions under sections 446E-3 and 446E-5, Hawaii Revised Statutes, as unfair or deceptive acts or practices. 

 


     Your Committee notes testimony, however, from the Office of Consumer Protection, that the current form of regulation has proven to be extremely time-consuming and labor-intensive.  For example, the Office of Consumer Protection has initiated over 497 enforcement actions relating to Chapter 446E violations.  As such, your Committee acknowledges the position of the Office of Consumer Protection that a study of this industry and alternative forms of regulation is appropriate.

 

     Your Committee has amended this measure by:

 

     (1)  Amending its title to read:  "REQUESTING THE OFFICE OF THE AUDITOR TO CONDUCT A SUNRISE REVIEW OF THE REGULATION OF UNACCREDITED DEGREE GRANTING INSTITUTIONS IN THE STATE";

 

     (2)  Requesting the Office of the Auditor to include proposed legislation in its report to the Legislature; and

 

     (3)  Making technical, nonsubstantive amendments for clarity, consistency, 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 concurs with the intent and purpose of H.C.R. No. 105, as amended herein, and recommends that it be referred to the Committee on Legislative Management in the form attached hereto as H.C.R. No. 105, H.D. 1.

 

 

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

 

 

 

 

____________________________

ISAAC W. CHOY, Chair