STAND. COM. REP. NO. 2871

Honolulu, Hawaii

RE:    H.B. No. 2142

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Higher Education, to which was referred H.B. No. 2142 entitled:

"A BILL FOR AN ACT RELATING TO POST-SECONDARY EDUCATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Repeal the requirement that a private college or university show that it maintains profitability as a means of demonstrating financial integrity to the Department of Commerce and Consumer Affairs at the time of its application for authorization; and

     (2)  Repeal section 304A-3153, Hawaii Revised Statutes, relating to procedures for complaints to the University of Hawaii concerning institutions of higher learning in the State.

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs and University of Hawai‘i System.

     Your Committee finds that Act 180, Session Laws of Hawaii 2013, identified the Department of Commerce and Consumer Affairs as the state entity that would perform the regulatory functions of authorizing post-secondary institutions and handling complaints against such institutions.  Your Committee also finds that it is neither uncommon nor inappropriate for a school to have financial statements that do not reflect profitability in every year that it has been in operation.  Since schools may incur a loss in any particular year but still maintain positive equity, your Committee finds that the deletion of the demonstration of profitability requirement, as proposed in this measure, is appropriate.  This measure adds greater clarity to what is required of private colleges and universities with regard to demonstrating financial integrity when applying for authorization and minimizes redundancy in the Hawaii Revised Statutes.

     As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2142, and recommends that it pass Second Reading and be referred to the Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committee on Higher Education,

____________________________

BRIAN T. TANIGUCHI, Chair