STAND. COM. REP. NO. 1150

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 252
                                        H.D. 3
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Education and Technology, to which was
referred H.B. No. 252, H.D. 3, entitled: 

     "A BILL FOR AN ACT RELATING TO DEGREE GRANTING
     INSTITUTIONS,"

begs leave to report as follows:

     The purpose of this measure is to prevent "diploma mills"
from issuing Hawaii degrees by prohibiting unaccredited
institutions from issuing degrees unless they comply with certain
standards.

     Testimony in support of this measure was submitted by the
University of Hawaii, the Department of Commerce and Consumer
Affairs, the Hawaii State Teachers Association, the Chamber of
Commerce of Hawaii, International University, the University of
Phoenix, and the University of Nations.  Testimony in support of
the intent of this measure was submitted by Kennedy-Western
University, Pacific Western University, and Greenwich University.

     Your Committee finds that the business of unaccredited
degree granting institutions operating under Hawaii laws is
burgeoning.  This measure will require stronger and clearer
disclosures regarding an institution's accreditation, prohibit
the issuance of certain types of degrees, create a mechanism for
service of process and require a level of physical presence in
order to operate.


 
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                                   STAND. COM. REP. NO. 1150
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     Your Committee has amended this measure to make it even more
effective in preventing "diploma mills" from issuing Hawaii
degrees by:

     (1)  Deleting the five year phase-in implementation of the
          requirements of this measure;

     (2)  Clarifying that no unaccredited institution shall issue
          degrees unless the institution has an office, at least
          one full-time employee, and at least twenty-five
          enrolled full-time students who are residents of
          Hawaii; and

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

     As affirmed by the record of votes of the members of your
Committee on Education and Technology that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 252, H.D. 3, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B.
No. 252, H.D. 3, S.D. 1, and be referred to the Committee on
Commerce and Consumer Protection.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Education and
                                   Technology,



                                   ______________________________
                                   DAVID Y. IGE, Chair

 
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