STAND. COM. REP. NO. 1489

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 252
                                        H.D. 3
                                        S.D. 2




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

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 252, H.D. 3, S.D. 1, 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"
based in Hawaii from issuing degrees by prohibiting unaccredited
institutions from issuing degrees unless they comply with certain
standards.

     The Office of Consumer Protection, University of Phoenix,
International University of Professional Studies, Kennedy-Western
University, Pacific Western University and University of Nations
presented testimony in support of the measure.  Although not
present at the hearing, The University of Hawaii and the Chamber
of Commerce of Hawaii submitted testimony in support of the
measure.  Greenwich University testified in opposition to the
measure.

     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. 1489
                                   Page 2


     Your Committee has amended this measure to change the
effective date to ensure further discussion regarding issues
presented by unaccredited degree granting institutions.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 252, H.D. 3, S.D. 1, as amended herein, and
recommends that it pass Third Reading in the form attached hereto
as H.B. No. 252, H.D. 3, S.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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