STAND. COM. REP. NO. 421

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1238
                                        S.D. 1




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

Sir:

     Your Committees on Commerce and Consumer Protection and
Education and Technology, to which was referred S.B. No. 1238
entitled: 

     "A BILL FOR AN ACT RELATING TO PROFESSIONS AND OCCUPATIONS,"

beg leave to report as follows:

     The purpose of this measure is to transfer to the Department
of Commerce and Consumer Affairs the responsibility for the
licensing and regulation of schools for acupuncture, barbering,
cosmetology, massage, and real estate.

     The Department of Education (DOE) presented testimony in
support of the measure's intent.  The Department of Commerce and
Consumer Affairs (DCCA) presented testimony in opposition to the
measure and proposed amendments.  An individual not present at
the hearing submitted written testimony on the measure.

     Currently, the DOE has jurisdiction over the licensing and
regulation of private trade, vocational, or technical schools,
subject to certain exceptions.  This measure proposes to
establish responsibility for the licensing and regulation of
acupuncture, barbering, cosmetology, massage, and real estate
with the respective profession's licensing body within the DCCA.

     Your Committees find that certain provisions in this measure
are flawed or redundant for the following reasons:


 
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     (1)  Effective September 1, 2000, only acupuncture schools
          accredited by the Accreditation Commission for
          Acupuncture and Oriental Medicine will be recognized by
          the Board of Acupuncture and the Board's recognition of
          DOE-licensed trade schools will become obsolete.  Since
          DOE licensure will no longer be necessary, a transfer
          of the oversight for licensing acupuncture schools to
          the Board of Acupuncture is similarly unnecessary;

     (2)  The DCCA, through the Real Estate Commission, already
          licenses and regulates real estate schools; and

     (3)  The DCCA, through the Board of Barbering and
          Cosmetology, already licenses and regulates cosmetology
          schools.

     Upon careful consideration of all the testimony presented,
your Committees have amended this measure by:
     
     (1)  Deleting from the purpose section (section 1) and
          section 12 of this measure relating to the licensing of
          private trade schools, references to acupuncture,
          cosmetology, and real estate;

     (2)  Deleting sections 2 and 3 of this measure relating to
          the licensing and regulation of acupuncture
          practitioner schools; 

     (3)  Deleting sections 6 and 7 of this measure relating to
          the licensing and regulation of beauty operator
          schools;

     (4)  Deleting sections 10 and 11 of this measure relating to
          the licensing and regulation of real estate schools; 

     (5)  Deleting section 13 of this measure which makes the
          unlicensed operation of an acupuncture practitioner
          school a misdemeanor;

     (6)  Deleting section 15 of this measure which establishes
          penalties for the unlicensed operation of a beauty
          operator school;

     (7)  Deleting section 17 of this measure which establishes a
          penalty for a violation of chapter 467, Hawaii Revised
          Statutes, by a real estate school; 

     (8)  Requiring the DCCA to conduct an assessment on the need
          for the regulation of barbering and massage therapy

 
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          schools, and the resources and legislation required to
          implement regulation, and to report its findings to the
          2000 Legislature;

     (9)  Extending the effective date for licensing and
          regulating massage and barbering schools to January 1,
          2001, with the rest of the bill effective upon
          approval; and 

    (10)  Making technical, nonsubstantive amendments.  

     As affirmed by the records of votes of the members of your
Committees on Commerce and Consumer Protection and Education and
Technology that are attached to this report, your Committees are
in accord with the intent and purpose of S.B. No. 1238, as
amended herein, and recommend that it pass Second Reading in the
form attached hereto as S.B. No. 1238, S.D. 1, and be referred to
the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Commerce and
                                   Consumer Protection and
                                   Education and Technology,



____________________________       ______________________________
DAVID Y. IGE, Chair                BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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