HB1200 Summary

• Establishes a new state post-secondary education commission within the Department of Commerce and Consumer Affairs to authorize private colleges, universities, seminaries, and religious training institutions operating in Hawaii, replacing the previous commission under the University of Hawaii.

• Creates an authorization framework for private post-secondary institutions requiring institutional accreditation, surety bonds (unless financial integrity standards are met), and compliance with federal Title IV Higher Education Act requirements.

• Authorizes the commission to deny, suspend, revoke, or condition authorizations for violations including fraudulent advertising, loss of accreditation, criminal activity, and failure to maintain financial integrity or student protections.

• Requires authorized institutions to maintain surety bonds covering prepaid tuition, provide alternative enrollment for students if the institution closes, and establish complaint procedures for students; establishes the post-secondary education authorization subaccount within the compliance resolution fund.

• Appropriates funds to the Department of Commerce and Consumer Affairs for fiscal years 2013-2014 and 2014-2015 to implement the new authorization program, including four full-time positions; Part II provisions regarding unaccredited institutions take effect July 1, 2015.