Section 8-101-3 - General requirements(a) Application for the initial license to operate a school shall be made to the department upon forms provided for this purpose. An application form shall be completed and filed not less than ninety days before the opening date of a new school. The ninety-day requirement shall not apply to an application for a change in ownership of an existing school licensed by the department. The following shall accompany the application: (1) A complete statement of the training and experience of the principal which statement shall establish the principal's fitness to operate the school as proposed, using forms provided by the department;(2) Letters from at least three persons testifying to the character, ability, and competency of the principal to operate the school as proposed;(3) A bank reference of the applicant, a statement of the initial working capital of the school, a projected financial statement for its first six months of operation, and additional references as may be required by the department;(4) Certificate of clearance from the county building department, the State health department, and the county fire department;(5) Floor plan showing the location of offices, libraries, classrooms, laboratories, shops, restrooms, and other facilities, and the location of all major pieces of furniture, training equipment, windows, and doors;(6) A list of the equipment to be provided for each course;(7) An outline of the courses to be offered, including course title, objectives, curriculum content, and evaluation procedures;(8) A statement describing the standards and methods of instruction to be used;(9) A copy of student contract and enrollment forms;(10) A statement of the method and content of advertising and the media to be used;(11) A copy of the school catalogue or brochure;(12) A copy of the diploma or certificate to be awarded;(13) A schedule of all fees, tuition, and charges to be made;(14) A qualifications record for each member of the professional staff of the school using the forms provided by the department;(15) A surety bond in the sum of $50,000, payable in a form satisfactory to the department, to provide indemnification to any student who suffers loss as a result of the school not fulfilling its obligations under the terms of its license; provided that the bonding requirement may be reduced at the discretion of the department upon a showing by the school that the requirement is excessive and at no time do advance collections from students amount to $50,000; and provided further, that when a satisfactory showing is made, the bond requirement shall be reduced according to the following schedule: | Advance Collections | Minimum Bond |
| $0 - 1,999 | $1,000 |
| 2,000 - 5,999 | 5,000 |
| 6,000 - 11,999 | 10,000 |
| 12,000 - 17,999 | 15,000 |
| 18,000 - 23,999 | 20,000 |
| 24,000 - 29,999 | 25,000 |
| 30,000 - 34,999 | 30,000 |
| 35,000 - 39,999 | 35,000 |
| 40,000 - 44,999 | 40,000 |
| 45,000 - 49,999 | 45,000 |
(16) A license fee payable to the department;(17) A copy of the articles of incorporation or partnership and by laws filed with the State department of commerce and consumer affairs if applicable; and(18) Other additional information as may be required by the department.(b) A school shall not begin operation until a license has been granted and a copy of the State gross income license has been filed with the department representative.(c) A school shall not solicit students until it has been issued a license, except that a school in the process of obtaining a license may advertise; provided that the statement, "subject to completion of all licensing requirements," shall be a part of all advertising representations.(d) Initial licenses shall be granted from September 1 to August 31 for two years. Upon the submittal of a complete application, the department shall grant or deny an initial license within ninety days. If the department fails to grant or deny the initial license within ninety days, the application shall be deemed automatically approved for licensure. The license fee for an initial license shall be $100.(e) Renewal applications for licenses shall be submitted on the first of July immediately preceding the expiration of the license for which renewal is sought. Renewed licenses shall be effective for a term of two years, from the first of September of the year in which the renewal application was granted, through and including the thirty-first of August two years thereafter. Upon submittal of a complete renewal application, the department shall grant or deny alicense within sixty days, unless substantial changes to the school's facilities and/or operations have been made. In such cases, the department shall give the renewal applicant notice that in light of the substantial changes made to the school's facilities, or operations, or both, the renewal application will betreated as an initial application under subsection (a). If the department fails to grant or deny the renewed license within sixty days, the application shall be deemed automatically approved for the renewal of licensure. The license fee for renewals shall be $50 which shall be submitted with the renewal application. Licenses shall be renewed if a school has met all applicable requirements of the department. If a renewal application and license fee are not submitted by July 1, a late fee of $10 shall be charged.(f) Licenses shall be issued to the owner of a specific school and shall specify and be limited as follows: (1) Registered under a particular name;(2) At a designated location;(3) Under a certain management;(4) To teach specific trades or vocations; and(5) Not exceeding a specified maximum number of students occupying the facility at any one time. Any change in the conditions of paragraphs (1) through (5) shall be reported to and approved by the department prior to implementation. Upon submittal of a completed request for a change in the license, the department shall grant or deny the change within sixty days. If the department fails to grant or deny the requested change within sixty days, the change shall be automatically deemed approved. A $10 fee shall be submitted with an application for a license change.
(g) A change in the ownership status of a school shall void its current license and the new owner shall apply for a new license. If the owner is a partnership, a change in the partners shall be deemed a change in ownership. If the owner is a corporation, it shall be deemed a change in ownership if one of the following changes occur in the outstanding shares of capital stock in the corporation: (1) Fifty per cent or more of the outstanding shares change ownership; or(2) The change in ownership of any number of outstanding shares results in a transferee accumulating fifty per cent or more of the total outstanding shares.(h) If a school wishes to expand its educational offerings to include additional trades or vocations, or to increase its enrollment exceeding the limits of its current license, the school shall submit a written request for a revised license. The request shall be supported by all applicable information required by this section. A school shall not implement the proposed changes prior to receiving a revised license. Upon submittal of a completed request for a change in the license, the department shall grant or deny the change within ninety days. If the department fails to grant or deny the requested change within ninety days, the change shall be automatically deemed approved.(i) A licensed school shall limit its course offerings and activities to those approved by the department. A school shall not engage in any commercial business activity for financial gain that does not directly relate to and enhance the licensed program of instruction.(j) A school that ceases operations shall inform the department and surrender its license within thirty days after cessation of operations. The license shall be canceled automatically thirty days after cessation of operations unless a longer period of inactivity has been applied for in writing and approved by the department. Upon submittal of a request to extend its license, the department shall grant or deny the extension within thirty days. If the department fails to grant or deny the extension within thirty days, the extension shall be automatically deemed approved.(k) The department may require a new applicant for a license to provide acceptable evidence that there is a need for the training proposed and the training is not being adequately provided to meet the need. Failure of an applicant to provide acceptable evidence shall be grounds for denial of a license.(l) A school granted a license by the department shall keep on each student adequate records of personal data, student's previous training and experience, progress in the training program, grades, and other information as required by the department. The record shall be in a form as prescribed or accepted by the department. Records of courses taken by students shall be kept on file by the school for at least seven years and a permanent record of all graduates of courses of one year or more in length shall be maintained. A school ceasing to operate shall transfer its student records to the department.(m) A licensed school shall submit an annual report and other reports as requested by the department.(n) The school shall prepare and make available for distribution to prospective students and other interested persons, a brochure or catalogue setting forth essential information about the school and the courses of instruction it offers. The publication shall be updated periodically so that the information contained is current and accurate. Each brochure or catalogue shall include but not be limited to, the following information: (1) Name, address and telephone number of the school;(3) School's ownership and administrative officer;(4) School's calendar including starting and ending dates and school holidays;(5) Description of facilities and equipment;(6) Entrance requirements;(7) Schedule of all charges;(8) Course titles and objectives;(9) Course outlines or description;(10) Length of each course;(11) School's policy on granting credit for previous training or experience;(12) School's policy on attendance, absences and make-up;(13) School's policy on grading, reports of grades and standards required;(14) School's policy on student conduct;(15) School's policy on refund of tuition and other fees collected;(16) Student loans or financing plans; and(o) Upon completion of a course, a student shall be issued a certificate or diploma by the school, giving the name of the course and containing a statement that the student has satisfactorily completed the required work.(p) A school shall not operate at night unless an authorization is specifically provided in a license issued by the department.(q) A school shall prominently display its license on the school premises at all times and in plain view of students.(r) A licensed school shall make available a copy of this chapter to members of the staff, students, and to interested citizens upon request.[Eff 12/7/87; am and comp 3/5/01] (Auth: HRS §§ 302A-1112, 302A-427) (Imp: HRS §§ 91-13.5, 132-6, 237-9, 302A-425 thru 427)