Report Title:
Trade, Vocational, Technical Schools; Regulation
Description:
Authorizes the department of education to license private, trade, vocational, and technical schools. Establishes a revolving fund into which moneys collected from the licensing of trade, vocational, and technical schools are to be deposited. Delineates exception to licensure. Establishes a Tuition Recovery Fund. (HB607 HD1)
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
607 |
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TWENTY-FIRST LEGISLATURE, 2001 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO EDUCATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 302A, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:
"§302A- License fees; revolving fund. (a) Fees for licensure shall be imposed on private trade, vocational, or technical schools subject to regulation, provided that the aggregate amount of the fees shall not be less than the full cost of administering the licensure program. All fees collected shall be paid to the department.
(b) There is established with the department, a revolving fund into which all moneys collected in the form of fees, appropriations, or fines shall be deposited. The revolving fund shall be administered by the department and used for the administration of the licensing program.
(c) The department shall have the authority to expend funds from the revolving fund for all costs associated with the administration of the licensing program.
"§302A- Tuition Recovery Fund; payments by schools; effect of failure to pay; claims. (a) The tuition recovery fund is established to protect students when a private trade, vocational, or technical school ceases to provide educational services, and to pay administrative expenses incurred in the administration of the licensing function. Interest earned by the account shall be credited to the account.
(b) The superintendent shall maintain and administer the fund and the board shall adopt rules and procedures for the administration and maintenance of the fund, including requirements relating to contributions to and claims against the fund.
(c) Each private trade, vocational, or technical school shall pay to the tuition recovery fund an initial capitalization deposit in amounts and within time limits pursuant to rules established by the board. Thereafter, each school shall make installment payments based on a matrix adopted by rule of the board. In establishing the amount and frequency of payments, the board may consider the enrollment and financial condition of each school and other factors that the board considers appropriate. The superintendent may deny, suspend, or revoke the license of a school that fails to make payments or fails to conform to other requirements of this section or rules adopted by the board under this section.
(d) The superintendent shall deposit moneys received under this section into the tuition recovery fund.
(e) The superintendent may disburse moneys from the fund in conformance with rules established by the board. Moneys from the fund may only be distributed for tuition recovery purposes, and to reimburse the superintendent for costs incurred in administering and maintaining the fund."
SECTION 2. Section 302A-101, Hawaii Revised Statutes, is amended by amending the definition of "Private trade, vocational, or technical school" to read as follows:
""Private trade, vocational, or technical school" means any plan or method used by any person or persons, firm, or any other organization or corporation for giving instruction in any form or manner in any trade, occupation, or vocation for a consideration, reward, or promise of whatever nature, including correspondence schools located within the State, except as follows:
(1) Schools maintained, or classes conducted, by employers for their own employees where no fee or tuition is charged;
(2) Courses of instruction given by any fraternal society, benevolent order, or professional organization to its members, which courses are not operated for profit;
(3) Flying schools qualified under the Federal Aviation Administration;
[(4) Classes conducted for less than five students at one and the same time;
(5) Classes or courses of instruction that are conducted for twenty or fewer class sessions during any twelve-month period;
(6) Avocational, hobby, recreation, or health classes or courses;]
(4) Schools maintained or classes conducted by a business that offers training to its customers in the use of equipment, skills, or concepts it sells as a means to promote its products;
(5) Schools or training solely avocational or recreational in nature;
(6) Schools that the superintendent determines are adequately regulated by other means, including, but not limited to, accreditation by and accrediting agency recognized by the United States Department of Education;
(7) Courses of instruction on religious subjects given under the auspices of a religious organization; and
[(8) Schools registered by the department of commerce and consumer affairs or by boards and commissions placed in the department of commerce and consumer affairs for administrative purposes.]
(8) All schools regulated by a board or commission within the department of commerce and consumer affairs whose curriculum and instruction leads to individual licensure within a regulated industry."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.