HI HB2142

Removes the profitability requirement from financial integrity demonstrations for private colleges and universities, allowing institutions to show financial integrity through positive equity alone.

Requires private colleges and universities seeking authorization to maintain full accreditation without sanction from a US Department of Education-recognized accrediting body, operate an instructional facility in Hawaii, and provide audited annual financial statements.

Establishes a composite score requirement of at least 1.5 on equity, primary reserve, and net income ratios per 34 CFR 668.172 as a financial integrity standard.

Mandates that private colleges and universities meet or exceed pro rata refund policies required by the US Department of Education, or comply with their accrediting body's requirements if not participating in federal financial aid programs.

Repeals Hawaii Revised Statutes Section 304A-3153, which authorized the Commission on Higher Education to establish procedures for receiving and responding to complaints concerning institutions of higher education in the State.