Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Education and Military Affairs and Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 1254 entitled:

beg leave to report as follows:

The purpose of this measure is to transfer jurisdiction of private trade, vocational, and trade schools from the Department of Education to the Department of Commerce and Consumer Affairs.

Testimony in support of the measure was submitted by the Department of Education.

Your Committees find that the Department of Education is not sufficiently equipped to adequately monitor the commercial aspect of vocational and trade schools, as these entities are essentially in business for profit. These types of schools function as retail businesses and thus consumers should be provided with consumer protection services. This measure will transfer the regulation of these schools to the more appropriate Department of Commerce and Consumer Affairs which contains the knowledge and expertise to ensure quality services will be provided by these businesses.

Upon further consideration, your Committees have amended this measure to:

As affirmed by the records of votes of the members of your Committees on Education and Military Affairs and Commerce, Consumer Protection, and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1254, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1254, S.D. 1, and be referred to the Committee on Ways and Means.