HB189.DOC

SECTION 1. Chapter 305J, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§305J- Authorization to operate in the State; pilot schools. To operate in this State pursuant to this chapter, a pilot school shall be a private flight school that:

(1) Has a physical presence in the State;

(2) Is approved by the Federal Aviation Administration; and

(3) Offers an accredited professional pilot program that confers an advanced certificate for certified flight instructors."

SECTION 2. Section 305J-2, Hawaii Revised Statutes, is amended as follows:

1. By adding two new definitions to be appropriately inserted and to read:

""Institution" means a private college or university, seminary, religious training institution, or pilot school that is subject to this chapter, unless the context requires otherwise.

"Pilot school" means a pilot school as set forth in section 305J- ."

2. By amending the definition for "authorization" to read:

""Authorization" means the authorization granted to [~~a private college or university, seminary, or religious training~~] an institution as provided in this chapter and any applicable rules and policies. Authorization is not an endorsement by the department."

3. By amending the definition of "enrollment agreement" to read:

""Enrollment agreement" means the contract prepared by [~~a private college or university, seminary, or religious training~~] an institution that a student signs to indicate agreement to the terms of admission, delivery of instruction, and monetary terms as outlined in the [~~private college, university, seminary, or religious training~~] institution's student handbook or catalog."

4. By amending the definition of "governing board" to read:

""Governing board" means the elected or appointed group of persons that oversees and controls [~~a private college or~~ ~~university, seminary, or religious training~~] an institution."

SECTION 3. Section 305J-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) This chapter shall not apply to:

(1) Schools or educational programs conducted by firms, corporations, or persons for the training of their own employees;

(2) Apprenticeship or other training programs provided by labor unions to union members or applicants for union membership;

(3) Schools or educational programs that provide courses of instruction that do not lead to the conferring of a degree[;], except as provided in section 305J- ;

(4) Schools or educational programs that offer seminars, refresher courses, and programs of instruction sponsored by professional, business, or farming organizations or associations for their members or the employees of their members;

(5) Schools or educational programs that offer courses of instruction conducted by public school complex areas;

(6) Schools, courses of instruction, or courses of training that are offered by a vendor or the purchaser or prospective purchaser of the vendor's product when the objective of the school or course is to enable the purchaser or the purchaser's employees to gain the skills and knowledge necessary to use the product;

(7) Schools and educational programs conducted by religious entities that are owned, controlled, operated, and maintained by a religious organization lawfully operating as a nonprofit religious corporation and that award only religious degrees or certificates, including but not limited to a certificate of Talmudic studies, an associate of Biblical studies, a bachelor of religious studies, a master of divinity, or a doctor of divinity;

(8) Non-degree-granting post-secondary educational institutions licensed by any entity of the State or governed by any other chapter of the Hawaii Revised Statutes;

(9) Schools and educational programs that offer courses of instruction exclusively through online and distance education; and

(10) Unaccredited post-secondary educational institutions governed by chapter 446E."

SECTION 4. Section 305J-6, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

"(b) To administer this chapter, the department shall:

(1) Maintain a list of the [~~private colleges or universities, seminaries, and religious training~~] institutions that have been authorized and make this list available to the public;

(2) Maintain a list of the states with which the director has entered into a post-secondary education authorization reciprocity agreement and make this list available to the public; and

(3) Receive, arbitrate, investigate, and process complaints.

(c) In conducting an investigation, the department may physically inspect the [~~private college or university, seminary, or religious training~~] institution's facilities and records, and the institution shall have an affirmative duty to cooperate with requests from the department for information regarding any investigation or inspection."

SECTION 5. Section 305J-10, Hawaii Revised Statutes, is amended to read as follows:

"[[]§305J-10[]] Reauthorization. (a) A private college or university that is authorized pursuant to section 305J-8 and maintains its accreditation shall apply to the department for reauthorization every two years. A private college or university that has its accreditation reaffirmed without sanction and continues to demonstrate its compliance with section 305J-14, shall otherwise be presumed to be qualified for reauthorization under this chapter for a period of two years.

(b) A seminary or religious training institution authorized pursuant to section 305J-9 shall apply to the department for reauthorization every two years. A seminary or religious training institution that continues to meet the authorization requirements of this chapter shall otherwise be presumed to be qualified for reauthorization under this chapter for a period of two years.

(c) [~~Private colleges or universities, seminaries, and religious training institutions~~] A pilot school authorized pursuant to section 305J- shall apply to the department for reauthorization every two years. A pilot school that continues to meet the authorization requirements of this chapter shall otherwise be presumed to be qualified for reauthorization under this chapter for a period of two years.

(d) Institutions applying for reauthorization under this section shall pay the fees required pursuant to section 305J-18.

[~~(d)~~] (e) If [~~a private college or university, seminary, or religious training~~] an institution cannot demonstrate that it meets the authorization requirements of this chapter, the director shall deny the application for reauthorization. The director shall provide the [~~private college or university, seminary, or religious training~~] institution with written notification of the denial of the application for reauthorization and the basis for the denial. If, within six months of receiving notice that its application for reauthorization has been denied, the [~~private college or university, seminary, or religious training~~] institution corrects the action or condition upon which the denial was based, it may reapply for reauthorization. If the [~~private college or university, seminary, or religious training~~] institution does not correct the action or condition upon which the denial was based, it may submit a new application for authorization pursuant to section 305J-8 or 305J-9, whichever is applicable, once the action or condition has been corrected.

[~~(e)~~] (f) If a private college or university is under a sanction from its accrediting body at the time that it submits its application for reauthorization, the director may:

(1) Approve the private college or university's reauthorization; or

(2) Grant probationary approval of the private college or university's reauthorization; provided that if the private college or university is granted probationary reauthorization:

(A) The department shall provide the private college or university with written notice of its probationary status;

(B) The private college or university shall reapply for reauthorization on an annual basis until the accrediting body lifts its sanction; and

(C) The private college or university shall provide the department with an annual report on its progress toward removing the sanction."

SECTION 6. Section 305J-11, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

"(b) It shall be a violation of this chapter for [~~a private college or university, seminary, or religious training~~] an institution or its agent to:

(1) Make or cause to be made any statement or representation, oral, written, or visual, in connection with the offering of educational services if the [~~private college or university, seminary, or religious training~~] institution or its agent knows or reasonably should have known the statement or representation to be false, inaccurate, or materially misleading;

(2) Falsely represent or deceptively conceal, directly or by implication, through the use of a trade or business name, the fact that the institution is a private college or university, seminary, [or] religious training institution[;], or pilot school;

(3) Adopt a name, trade name, or trademark that represents falsely, directly or by implication, the quality, scope, nature, size, or integrity of the [~~private college or university, seminary, or religious training~~] institution or its educational services;

(4) Intentionally and materially represent falsely, directly or by implication, that students who successfully complete a course or program of instruction may transfer the credits earned to any institution of higher education;

(5) Intentionally and materially represent falsely, directly or by implication, in its promotional materials or in any other manner:

(A) Its size, location, facilities, or equipment;

(B) The number, educational experience, or qualifications of its faculty;

(D) The extent or nature of any accreditation received from any accrediting agency, body, or association;

(6) Provide prospective students with testimonials, endorsements, or other information that has the tendency to mislead or deceive prospective students or the public regarding its current practices;

(7) Designate or refer to its sales representatives by titles that imply that the sales representatives have training in academic counseling or advising if they do not; and

(8) Represent, directly or by implication, that it is authorized by the State or approved or accredited by an accrediting agency or body when it has not been authorized, approved, or accredited.

(c) Any [~~private college or university, seminary, or religious training~~] institution or its agent that violates this chapter may be subject to one or more of the following sanctions:

(1) A fine equal to a sum of not less than $500 or more than $10,000 for each violation. The penalties provided in this subsection are cumulative to the remedies or penalties available under all other laws of this State. Each day that a violation occurs shall be considered a separate violation;

(2) An order directing corrective action on the part of the institution;

(3) An order of restitution to one or more affected students;

(4) Revocation, suspension, probation, or conditions on the institution's authorization;

(5) An order relating to cessation of operations or alternate enrollment; or

(6) The payment of costs of investigation and legal action, irrespective of the outcome."

SECTION 7. Section 305J-12, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (b) to read:

"(b) An institution's authorization shall be placed on probationary status without further action by the department in the event that:

(1) The institution is placed on probationary status by its accrediting agency, contemporaneous with the action of such agency;

(2) The institution's accrediting agency ceases to be recognized by the United States Department of Education; [or]

(3) In the case of a seminary or religious training institution, the seminary or religious training institution no longer meets the definition of such under this chapter[.]; or

(4) In the case of a pilot school, the pilot school no longer meets the definition of such under this chapter."

2. By amending subsection (e) to read:

"(e) [~~A private college or university, seminary, or religious training~~] An institution that is authorized pursuant to this chapter shall:

(1) Not make or cause to be made any oral, written, or visual statement or representation that violates section 305J-11(b);

(2) Provide the department with a copy of its enrollment agreement, if applicable, in accordance with its reauthorization schedule;

(3) Provide bona fide instruction, in accordance with the standards and criteria set by its accrediting body; and

(4) If its ownership changes, provide the department with any material information concerning the transaction at least thirty days prior to the transaction."

SECTION 8. Section 305J-13, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) If a private college or university, seminary, [or] religious training institution, or pilot school under the jurisdiction of the department ceases operating within the State, the institution, its owner, or the owner's designee, and its governing board shall be jointly and severally liable to deposit with the department the institution's educational records requested by the department in a form to be prescribed by the director.

(b) If the director determines that the records of [~~a private college or university, seminary, or religious training~~] an institution that ceases operating within the State are in danger of being destroyed, secreted, mislaid, or otherwise made unavailable to the department, the director may seek a court order authorizing the department to seize or take possession of the records and seek additional relief as may be appropriate."

SECTION 9. Section 305J-14, Hawaii Revised Statutes, is amended by amending subsection (j) to read as follows:

"(j) A seminary, [or] religious training institution, or pilot school shall not be subject to the requirements of this section."

SECTION 10. Section 305J-15, Hawaii Revised Statutes, is amended by amending subsection (h) to read as follows:

"(h) A seminary, [or] religious training institution, or pilot school shall not be subject to the requirements of this section."

SECTION 11. Section 305J-17, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) A student or former student of the University of Hawaii system, a private college or university, seminary, [or] religious training institution, or pilot school may file a complaint with the department concerning the institution at which the student is or was enrolled; provided that if a former student files a complaint, the complaint shall be filed within two years after the former student discontinued enrollment at the institution; provided that the [~~two year~~] two-year restriction on complaints shall not apply to complaints related to obtaining transcripts."

2. By amending subsections (c), (d) and (e) to read:

"(c) Nothing in this section shall give the department jurisdiction to consider complaints that infringe on the academic or religious freedom of, or question the curriculum content of, [~~a private college or university, seminary, or religious training~~] an institution.

(d) Upon receipt of a complaint pursuant to [[]subsection[]] (a) or (b), the department shall determine whether the complaint was properly filed. The complaint shall warrant investigation only after the student or former student has exhausted all administrative remedies available at the University of Hawaii system, private college or university, seminary, [or] religious training institution[;], or pilot school; provided that if the complaint involves a violation of state or federal criminal law, this requirement shall not apply. If a complaint warrants investigation, the department shall forward the complaint to the University of Hawaii system, private college or university, seminary, [or] religious training institution[.], or pilot school. The University of Hawaii system, private college or university, seminary, [or] religious training institution, or pilot school shall have thirty days to respond in writing to the complaint. During the thirty-day period, the University of Hawaii system, private college or university, seminary, [or] religious training institution, or pilot school, with the department's assistance, may attempt to resolve the complaint with the student. If the department determines at any time that the complaint no longer warrants investigation, the department shall dismiss the complaint.

(e) If a complaint is not resolved within the thirty-day period, the department may:

(1) Dismiss the complaint based on the response of the University of Hawaii system, private college or university, seminary, [or] religious training institution[;], or pilot school; or

(2) Investigate and, where appropriate, take disciplinary action in a manner consistent with chapter 91."

SECTION 12. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 13. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 14. This Act shall take effect on July 1, 2017.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	189
TWENTY-NINTH LEGISLATURE, 2017
STATE OF HAWAII