STAND. COM. REP. NO. 2444
RE: S.B. No. 2976
Honorable Ronald D. Kouchi
President of the Senate
Twenty-Eighth State Legislature
Regular Session of 2016
State of Hawaii
Your Committees on Education and Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2976 entitled:
"A BILL FOR AN ACT RELATING TO LICENSING OF PRIVATE TRADE, VOCATIONAL, AND TECHNICAL SCHOOL,"
beg leave to report as follows:
The purpose and intent of this measure is to transfer the licensing and regulation program for private trade, vocational, and technical schools from the Department of Education to the Department of Commerce and Consumer Affairs.
Your Committees received testimony in support of this measure from the Department of Education and Office of the Auditor. Your Committees received testimony in opposition to this measure from the Department of Commerce and Consumer Affairs, Travel Institute of the Pacific, Hawaii Institute of Hair Design, Pacific Center for Awareness and Bodywork, and twelve individuals.
Your Committees find that the Department of Education currently has the responsibility to license and regulate trade, vocational, and technical schools. Section 302A-425, Hawaii Revised Statutes (HRS), prohibits any such school from operating prior to being licensed by the Department of Education. Act 57, Session Laws of Hawaii 1998, amended section 302A-425, HRS, to change its purpose from ensuring educational and instruction quality to also include consumer protection. Protecting the public from such harmful practices is often in the purview of the Department of Commerce and Consumer Affairs. For that reason, licensure and regulation of trade, vocational, and technical schools should be transferred to the Department of Commerce and Consumer Affairs. However, your Committees note that significant work remains to be done before the Department of Commerce and Consumer Affairs is ready to assume the responsibility of licensing and regulating these types of schools. Your Committees expect that the Department of Education and Department of Commerce and Consumer Affairs will cooperate to ensure that when the transfer occurs in 2018, it will proceed smoothly and without disruption to the public.
Your Committees have amended this measure by:
(1) Making the transfer effective as of July 1, 2018; and
(2) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.
As affirmed by the records of votes of the members of your Committees on Education and Commerce, Consumer Protection, and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2976, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2976, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committees on Education and Commerce, Consumer Protection, and Health,
ROSALYN H. BAKER, Chair
MICHELLE N. KIDANI, Chair