Hawaii: A Step-by-Step Guide to Obtain State Approval for a Private Postsecondary Institution

Licensing Agency

Hawaii Post-secondary Education Authorization Program (HPEAP) – Department of Commerce & Consumer Affairs (DCCA)

Degree-Granting Institutions

Process

Hawaii law (HRS Chapter 305J) requires any private college or university with a physical presence in the state to secure authorization from HPEAP before operating (unless qualifying for an exemption). The authorization process ensures that degree-granting institutions meet standards for accreditation and financial integrity. Below is a step-by-step overview:

1. Preliminary Inquiry & Eligibility – First, determine whether your institution falls under HPEAP oversight. Confirm that the school is accredited by an agency recognized by the U.S. Department of Education. (Institutional accreditation is mandatory for state authorization in Hawaii, except for certain religious colleges.) If your school is not yet accredited, you must comply with Hawaii’s separate requirements for unaccredited degree institutions (HRS 446E, overseen by the Office of Consumer Protection) and make progress toward accreditation before seeking provisional authorization. Schools that are publicly owned, part of the University of Hawaii system, or licensed by other state boards may be exempt (see State Exemptions at the end).
   
   
2. Pre-Application Consultation – HPEAP encourages a preliminary consultation once you’ve confirmed the need for authorization. Prospective institutions should email HPEAP with details of their plans: intended opening date, campus location in Hawaii, the degree programs to be offered, whether courses will be in-person or online, and whether the accrediting agency must approve the new location. This early communication helps clarify requirements and timelines. Allow at least 90 days for the formal application review process and do not enroll students at the Hawaii site until HPEAP approval is obtained.
   
   
3. Complete the Authorization Application – Obtain the official Application for Authorization of Private Colleges or Universities from HPEAP. Prepare all required information and attachments (see Checklist below). Key elements include documentation of ownership and governance, evidence of accreditation status, demonstration of financial integrity, and a projection of operations in Hawaii. New institutions must also secure a surety bond to protect student tuition (the bond amount is based on a reasonable estimate of maximum unearned prepaid tuition). HPEAP provides a bond form that must be completed and submitted along with a copy of the bond itself. If the institution has multiple branch campuses, a separate application may be needed for each accredited location.
   
   
4. Submit Application and Fees – Submit the completed application package to HPEAP along with the required authorization fee. (Hawaii’s fees for post-secondary authorization are substantial: currently $10,000 for small institutions with 100 or fewer students, and $19,000 for larger institutions. These fees are non-refundable and cover the initial review and complaint administration up to a certain threshold.) HPEAP will provide instructions for uploading the application PDF and supporting documents through a secure portal. Ensure that all required documents are included, as an incomplete application can delay the process.
   
   
5. HPEAP Review & Evaluation – HPEAP officials will examine the submission for completeness and compliance with state standards. During this review, they verify accreditation status, evaluate financial stability (including reviewing audited financial statements or composite scores if applicable), and confirm the surety bond coverage. HPEAP does not conduct an academic quality assessment (that is the role of accreditors), but it will ensure the institution meets all statutory requirements (such as having refund policies, proper disclosures, and no conflicting legal issues). If any portion of the application is deficient or unclear, HPEAP will notify the institution for clarification or additional information.
   
   
6. Approval and State Authorization – Upon satisfying all requirements, the institution will receive a State Authorization certificate from HPEAP. The authorization allows the school to operate in Hawaii and offer the approved degree programs at the specified location(s). Typically, an initial authorization is granted for a two-year period. Authorized schools must abide by any conditions of the approval and all relevant regulations. For example, institutions are expected to maintain accreditation in good standing, uphold their surety bond, and adhere to consumer protection rules.
   
   
7. Post-Approval Compliance – Once authorized, schools must remain in compliance with HPEAP regulations. Any material changes – such as a change in ownership, a new degree program, relocation of the campus, or a change in accreditation status – generally require prior notification to HPEAP (and in some cases an approved amendment to the authorization). HPEAP may request annual updates, such as proof of continued bond coverage by each January, and has authority to investigate complaints or violations. Schools are advised to maintain open communication with HPEAP and resolve any student complaints promptly via the prescribed process.
   
   
8. Renewal (Re-Authorization) – State authorization is not indefinite. To continue operating legally, institutions must periodically renew their HPEAP authorization. The renewal (re-authorization) application will largely mirror the initial process, including an updated application form, submission of current documentation, and payment of the reauthorization fee (which is the same scale as the initial fee). HPEAP will typically send notifications when a renewal window is approaching. It is critical to apply for re-authorization before the current approval expires to avoid lapses in authorization. Schools on probation or other special status may be required to renew annually until issues are resolved, whereas others follow the standard multi-year cycle.
   
   

Checklist of Required Items

When applying for HPEAP authorization, be prepared to provide a comprehensive set of documents and information. The typical application will include:

• Completed HPEAP Application Form – The official form for initial authorization, filled out in full and signed by the appropriate institutional official.
  
  
• Proof of Accreditation – Documentation of current accreditation (accreditation certificate or letter) from a U.S. Department of Education-recognized accrediting agency. Include any scope of accreditation details showing Hawaii operations are covered. (Religious institutions exempt from accreditation must show evidence of their religious degree status.)
  
  
• Surety Bond Documentation – A completed HPEAP surety bond form along with a copy of the executed surety bond. The bond must be issued by a company authorized in Hawaii and cover an amount sufficient to protect prepaid tuition (with a minimum calculated based on the institution’s projected maximum student tuition liabilities).
  
  
• Corporate and Ownership Information – Articles of incorporation or organization, partnership agreements, or other formation documents for the school’s legal entity. Include a list of owners, governing board members, and officers. If nonprofit, attach proof of 501(c)(3) status. Any parent organization or corporate affiliates should be disclosed.
  
  
• Certificate of Good Standing – Evidence that the institution is registered to do business in Hawaii (certificate of authority from the DCCA Business Registration Division) and is in good standing. Out-of-state institutions need Hawaii-specific registration to establish a campus.
  
  
• Financial Statements – Recent audited financial statements (typically the past two years) demonstrating the institution’s financial stability. HPEAP uses these to assess financial integrity (schools accredited for 10+ years may submit alternative proof of long-term financial soundness). If the institution participates in Title IV federal student aid, compliance with U.S. Department of Education financial standards should be evident.
  
  
• Student Enrollment Agreement and Catalog – A copy of the enrollment agreement or contract that students will sign, and the current academic catalog or program brochure. These should detail tuition and fees, curriculum requirements, policies on refunds and withdrawals, grievance procedures, and other consumer information required by law.
  
  
• Program Information – Descriptions of each degree program to be offered in Hawaii, including program outlines, credit hours, and any professional licensure alignment (if applicable). If certain programs require additional state approval or lead to licensure (e.g. nursing, teaching), note any accreditation or approval by the relevant Hawaii board.
  
  
• Faculty Qualifications (if requested) – Although HPEAP defers to accreditors on faculty standards, you may need to provide a list of key instructional staff and their qualifications for the record.
  
  
• Physical Presence Details – Documentation of the Hawaii location: a copy of the lease or deed for the campus site, and evidence that the facility is suitable (zoning compliance, occupancy certificate, etc.). Physical presence is defined broadly (maintaining an administrative office, conducting instruction, or having a local address/phone all count), so the institution must show its specific local setup.
  
  
• Copies of Policies and Disclosures – This can include the institution’s policies on tuition refund, student conduct, admission requirements, attendance, and any other operational policies, especially if not already in the catalog. HPEAP wants to ensure that these meet minimum state standards (for instance, pro-rata refund policies for students who withdraw).
  
  
• Fee Payment Receipt – Proof of payment of the required application fee. Depending on HPEAP’s instructions, this might be an online payment confirmation or a check/money order. (As noted, the fee is sizable; ensure it’s correctly calculated based on your enrollment size.)
  
  

Note: All documents should be submitted in the format HPEAP specifies (often PDF). Maintain copies of everything. After approval, you will also need to keep student records and authorization documents accessible in Hawaii.

Fees & Timelines

Timeline: Plan on the authorization process taking several months from start to finish. HPEAP recommends allowing a minimum of 90 days for review once a complete application is submitted. In practice, an initial completeness check might occur within a few weeks, followed by a detailed evaluation that could take 2–3 months or longer if issues arise. There is no fixed “deadline” or application window—HPEAP accepts applications on a rolling basis, and approvals are issued individually when requirements are met. It’s wise to engage with HPEAP early and build the timeline around accreditation steps and academic planning. Remember, you cannot legally advertise or enroll students at a new Hawaii site until the state authorization is granted.

Fees: The state authorization fees in Hawaii are significant and must be budgeted accordingly. For an initial application, the base fee is $10,000 for institutions with 100 or fewer students, and $19,000 for institutions above that size. This fee covers the authorization period (initial authorization and, by policy, includes up to 100 hours of HPEAP’s handling of student complaints). If an institution triggers extensive regulatory oversight (e.g., investigating numerous complaints beyond the included hours), HPEAP can assess additional charges at an hourly rate. Other potential fees include a $500 financial review fee (if the school’s finances require an updated analysis or bond recalculation mid-cycle) and fees around $1,000 for cases of probation or reinstatement of a suspended authorization. All fees are non-refundable and generally paid to DCCA.

Validity and Renewal: An initial authorization is typically valid for a two-year period (biennial). Before it lapses, the institution should file for re-authorization. The re-authorization fee is the same scale as the initial ($10,000/$19,000 depending on enrollment) and is due with the renewal application. HPEAP may send a reminder, but it is the school’s responsibility to track its authorization expiration and submit a renewal application on time. Renewal involves updating all critical information (particularly accreditation status, financial statements, enrollment data, and any changes in programs or leadership) to ensure the school continues to meet state standards. Approvals for renewals also occur on a rolling basis. If a school fails to renew, it must cease operations in Hawaii until authorization is obtained again.

In summary, prospective Hawaii institutions should factor in a few months for the approval process and budget for the substantial state fees. Once authorized, maintaining compliance and preparing timely renewals will ensure continuous approval to operate.

Agency Contact

HPEAP (Dept. of Commerce & Consumer Affairs)
Administrator: Bobbi Lum-Mew – Phone: 808-586-7327
Mailing Address: P.O. Box 541, Honolulu, HI 96809

Vocational and Career Schools

Process

Private post-secondary schools that do not grant degrees – such as trade schools, technical institutes, and career training programs – follow a separate state licensing process. In Hawaii, these institutions are regulated by the Hawaii Department of Education (HIDOE) under provisions of Hawaii’s Administrative Rules (Title 8, Chapter 101). The HIDOE offers a two-year Private Trade, Vocational, and Technical School license to qualifying schools. While the overall steps are analogous to those for degree-granting colleges, the requirements emphasize operational compliance and consumer protection rather than academic accreditation. Here is an outline of the process:

1. Determine Applicability – Verify that your school falls under HIDOE’s jurisdiction for private trade, vocational, or technical schools. Generally, if your institution offers occupational training or career education and is not awarding college degrees, you will need this HIDOE license. Some vocational programs are overseen by other state boards (for example, cosmetology or real estate courses have their own licensing), so ensure that HIDOE is the correct agency. Schools that are exclusively online and have no physical presence in Hawaii are not licensed by HIDOE; similarly, if training is very short-term or limited in enrollment, it may be exempt (see State Exemptions).
   
   
2. Meet Accreditation or Approval Criteria – To be licensed, a vocational school must demonstrate quality and viability. HIDOE requires that the school be accredited by a recognized accrediting commission or be approved by a relevant oversight body in its field. In practice, most private vocational schools seek accreditation from a U.S. Department of Education-recognized agency (such as ACCSC or an accreditor specific to technical education). Alternatively, a school can present a letter from a state or federal licensing authority attesting that its curriculum is sufficient to prepare students for professional licensure in that field (for example, a massage therapy program might use state Board of Massage approval in lieu of accreditation). Ensuring you have this accreditation or approval in place is a crucial early step before applying to HIDOE.
   
   
3. Prepare the License Application – Complete the Initial License Application for Private Trade, Vocational, or Technical (PTVT) Schools, available from the Hawaii DOE’s website. The application will require extensive information about the school’s programs, facilities, instructors, and policies. As you fill it out, assemble the required documentation (see Checklist below). Notably, HIDOE does not evaluate the specific curriculum content or instructional methods for quality – that is left to accrediting bodies – but the application will gather details to confirm the school’s scope of offerings and adherence to basic regulatory standards. Key components include a proposed catalog of courses, instructor lists, financial projections, and proof of compliance with health and safety regulations.
   
   
4. Obtain Supporting Clearances – Before submission, the school must secure certain clearances and proofs of compliance. This includes: a Hawaii State Vendor Compliance Certificate (showing the business has up-to-date status with tax, labor, and other state obligations), copies of building and fire inspections for the school’s facilities, and a surety bond affidavit. The vendor compliance certificate can be purchased online through a state portal and will verify that the school has no outstanding issues with the Department of Taxation, Department of Labor & Industrial Relations, DCCA, or the IRS. For facility safety, coordinate inspections as needed (County building occupancy permit and fire department inspection reports must indicate the site is approved for use as a school). The surety bond requirement is a fixed $50,000 bond to be posted in favor of the DOE – this bond protects student tuition in case the school closes or fails to fulfill its obligations.
   
   
5. Submit Application and Fee to HIDOE – Once all pieces are in place, submit the license application to the HIDOE Extended Learning Branch, which handles PTVT school licensing. Include all supporting documents and the required filing fee (see Fees & Timelines below for current amount). The submission process may involve sending physical copies or emailing the package, per the instructions on the application. Ensure the application is signed by the school’s owner or director and that every checklist item is attached. Missing items can delay processing or result in rejection of the application.
   
   
6. Department Review – The HIDOE will review the application for completeness and compliance. During this stage, officials verify the accreditation/approval status, confirm that the surety bond and liability insurance (if required) are in effect, and check that the school’s catalog and policies meet all legal requirements. They will also confirm the facility inspections and that all instructors have the necessary qualifications (and required health clearances, like TB certificates, if applicable). The Department does not judge the merits of the course content but will look for compliance with rules (for instance, that refund policies meet the minimum required by law, or that no misleading advertising is present). If problems are found, HIDOE may request corrections or additional information. Schools should be responsive to any inquiries to keep the process moving.
   
   
7. Licensing Decision – Upon approval, the HIDOE will issue a Private Trade, Vocational, or Technical School License. This license is valid for two academic years (typically running from September 1 of an odd-numbered year through August 31 of the next odd year, aligning with a biennial cycle). The license certificate will specify the school’s name, location, the authorized trades or programs, and any enrollment capacity limits. With this license, the school is legally authorized to operate and advertise as a licensed private vocational school in Hawaii. If the application is denied, the Department will provide reasons, and the school may have an opportunity to address deficiencies or appeal as provided by regulations.
   
   
8. Operation and Compliance – Once licensed, vocational schools must operate in accordance with the representations in their application and the state rules. Any significant change—such as moving to a new site, adding a new program/trade, increasing enrollment beyond the approved maximum, or changing ownership—requires notifying HIDOE and obtaining an approved license amendment. (For example, expanding program offerings to a new trade might entail submitting an addendum and possibly new instructor qualifications for that subject.) Licensed schools are also expected to keep student records, submit annual summary reports to the Department as requested, and adhere to all student protection provisions (e.g., proper tuition refund practices). Engaging in activities beyond the scope of the license can result in sanctions or revocation, so schools should seek approval for changes in advance.
   
   
9. Renewal – Licenses must be renewed every two years. In each odd-numbered year when licenses expire, HIDOE requires schools to file a License Renewal Application by the specified deadline (often mid-summer of the renewal year). The renewal process involves updating the school’s information, submitting any new accreditation certificates or compliance documents, and paying a renewal fee. The Department typically issues guidance each cycle (for instance, reminding schools of the renewal timeline and any updated requirements). Schools that have maintained compliance should expect a straightforward renewal, whereas those that had violations or complaints might face closer scrutiny. Failure to renew on time results in the automatic lapse of the license, after which the school must cease enrolling new students until a new license is obtained.
   
   

Checklist of Required Items

For a Hawaii private vocational school license application, gather the following key items (many are to be included as attachments or completed forms with the application):

• Initial License Application Form – The official HIDOE PTVT School License Application, filled out completely. This includes basic school information, ownership details, and a series of compliance checklists that must be initialed or answered by the applicant.
  
  
• Accreditation or Approval Letter – Proof of the school’s accreditation by an approved accrediting agency or an official letter from a relevant licensing/approval authority attesting to the adequacy of the curriculum. (If accreditation is pending, you should at least have documentation of candidacy or interim approval, though generally a license will not be issued without one of the two.)
  
  
• Surety Bond Affidavit and Bond – A notarized affidavit confirming a $50,000 surety bond is in effect for the licensing period, along with a copy of the bond certificate itself. The bond must list the Hawaii DOE as the obligee and cover the school for the full two-year term (ensuring funds are available for refunds if the school closes).
  
  
• Business Registration and Good Standing – A certificate of good standing from the DCCA Business Registration Division for the school’s legal entity. If the school is a Hawaii corporation or LLC, it should be current on filings; if it’s out-of-state, ensure it’s registered in Hawaii as a foreign entity.
  
  
• Tax Clearance – A current Hawai‘i Department of Taxation Tax Clearance Certificate, indicating that the business has filed and paid all applicable state taxes. (This is often obtained as part of the Vendor Compliance certificate.)
  
  
• Vendor Compliance Certificate – The consolidated online compliance certificate from Hawai‘i’s vendors system, showing status as “Compliant” with state tax, labor, and DCCA requirements. This single document simplifies verifying that the school has no outstanding delinquencies with key government agencies.
  
  
• School Catalog or Brochure – A detailed catalog for prospective students that includes all required disclosures. According to HIDOE guidelines, a compliant catalog should contain the school’s admissions policies, program descriptions, schedules, tuition and fees, refund policy, academic policies (grading, attendance, progress standards), support services, placement assistance (if offered), faculty/staff information, accreditation and licensure statements, complaint procedure, and other terms and conditions. The catalog can be a printed booklet or an online PDF, but a copy must be provided to the Department.
  
  
• Course List and Descriptions – An outline of each course or program offered. Many applications include forms where each distinct program (or “vocation”) is listed along with its duration (number of hours or weeks), objectives, and any credential awarded (certificate, diploma, etc.). If the school offers multiple programs, provide a synopsis of each.
  
  
• Instructor Qualifications – A roster of instructors and their qualifications for each course. In vocational schools, instructors should typically have expertise in the trade they are teaching (such as industry experience or licensure in that field). The application may require submission of instructor résumés or a summary of credentials. Additionally, instructors (and sometimes staff) must have current tuberculosis clearance certificates as required by state health regulations – be prepared to furnish proof of these health clearances.
  
  
• Facility Documentation – Evidence that the physical premises meets health and safety standards. Provide copies of the Health Department sanitation permit (if applicable for your facility), the Fire Department inspection report noting the maximum occupancy and compliance with fire code, and any Building Department occupancy permit or business zoning approval. Floor plans of the facility might be required to show classroom layout and capacity. All these ensure the location is safe and suitable for students.
  
  
• Financial and Administrative Statements – While not as detailed as for degree institutions, vocational schools may need to submit a projected budget or fiscal operations summary demonstrating they have the financial resources to operate for the license term. If the school offers federal financial aid or other funding, note that. Additionally, include an explanation of how student tuition is handled (e.g., if using a trust account or how refunds are secured – the bond covers most of this obligation).
  
  
• Enrollment Agreement (if used) – A copy of the contract or enrollment agreement that students must sign upon enrolling. This document is reviewed to ensure it aligns with the catalog (no conflicting refund terms, for example) and contains required notices (such as “this school is licensed by the Hawaii DOE” and how students can file complaints).
  
  
• Principal/Director Certification – If the application form requires it, include the designated school director’s personal information and a certification form. HIDOE may want the name of the “Principal” or head administrator responsible for daily operations. Changes in this role after licensing must be reported, so the initial person must be identified.
  
  

Before submitting, double-check that each required item is included and properly labeled. HIDOE’s application packet often includes a checklist – use it to mark each item provided. Missing a piece (for instance, forgetting a fire inspection report or failing to sign the bond form) can lead to delays or a returned application.

Fees & Timelines

License Term: Hawaii’s private vocational school licenses are issued on a biennial cycle. All licenses expire on August 31 of every odd-numbered year. For example, if a license is issued effective September 1, 2023, it will expire August 31, 2025. Because of this fixed cycle, the timing of applications can be critical. Existing schools must renew by the summer of the expiration year. New schools applying mid-cycle may receive a license for the remainder of the current term (and then would renew in the next odd year). It’s advisable to contact HIDOE about timing if you are opening a school close to a renewal deadline.

Application Timeline: HIDOE’s Extended Learning Branch accepts new license applications on an ongoing basis, but processing times can vary. Generally, once you submit a complete application, you should anticipate a review period on the order of 1 to 2 months. Part of this time depends on scheduling inspections or clearing any outstanding compliance issues. The Department will aim to either approve or deny a license change (or initial issuance) within 60–90 days of a fully completed application, as stipulated by administrative rules. To avoid last-minute complications, plan ahead: gather inspections and clearances well in advance so your submission is not held up waiting for a fire marshal’s visit or a tax form. If you haven’t received a response after about two months, you can follow up with the Branch to check on the status.

Fees: The licensing fees for private trade schools in Hawaii have recently been updated to better support the oversight program. For the 2023–2025 cycle, the HIDOE set a filing fee of $2,000 for license renewals (this was a significant increase from older statutory fees, reflecting the broader scope of review now performed). It is expected that the initial license application fee is comparable (around $2,000), unless stated otherwise on the application form. Renewal fees in subsequent cycles may be subject to change by the Board of Education, but historically they have been in the few hundreds of dollars before the recent adjustment. Always refer to the latest application instructions for the exact fee amount. The fee must be paid to “Hawaii Department of Education,” typically via check or money order submitted with the application. Note that late renewals incur a small penalty (for example, $10 late charge if missed by the deadline, under past rules). Also, any request to amend a license (such as changing location or adding programs during the license term) may come with a minor processing fee (often $10 for a license change request).

All fees paid to HIDOE are generally non-refundable, even if a license is denied or if the school withdraws its application. However, the cost of compliance (like obtaining inspections, bond premiums, etc.) often exceeds the state’s fee itself, so budget accordingly. The surety bond, for instance, will have its own premium cost paid to the bonding company (depending on credit, this could be a few hundred dollars annually).

Scheduling: For renewals, HIDOE will usually announce the renewal application period and deadline (e.g., “Renewal applications and fees must be submitted by July 1, 2025”). They may send reminder notices to currently licensed schools. It is crucial to meet these deadlines to ensure continuous licensure. If you are a new applicant, you can apply at any time; if approved, your license’s expiration will align with the nearest cycle end. Keep in mind that until you have the license in hand, you should not advertise that you are “licensed” nor enroll paying students. Use the application time to finalize your curriculum and marketing, but wait for official approval to commence full operations.

Agency Contact

Hawaii Department of Education – Extended Learning Branch (Private Trade & Vocational Schools)
Phone: 808-784-6498
Email: ptvt@k12.hi.us
Mailing Address: P.O. Box 2360, Honolulu, HI 96804

State Exemptions

Not all educational institutions require authorization or licensure from the state. Hawaii law provides a number of exemptions for certain types of schools and instructional programs. If an institution falls into one of these categories, it may operate without a state license (though other laws still apply). Key exemptions include:

• Public Institutions – Schools that are part of the University of Hawaii system or other state or county-operated educational programs do not need HPEAP authorization or DOE licensure. (The University of Hawaii, for example, is explicitly exempt by statute from the HPEAP process.)
  
  
• Unaccredited Degree Schools (Under OCP) – Institutions that offer degrees without recognized accreditation are not authorized by HPEAP; instead, they are governed by HRS 446E under the Office of Consumer Protection. While not “exempt” in the sense of unregulated, they follow a different legal pathway and must comply with disclosure requirements rather than obtaining HPEAP approval.
  
  
• Religious Institutions – A college or school owned by a religious organization, which offers only religious instruction or degrees (e.g. theology degrees), can be exempt from HPEAP oversight. These institutions must truly limit themselves to religious education to qualify. Similarly, for vocational licensing, courses of instruction on religious subjects offered under a religious organization’s auspices are exempt from the DOE’s licensure requirement.
  
  
• Schools Licensed by Other State Entities – If a non-degree school is already licensed or authorized by another Hawaii state agency, it does not need a second license. For example, schools of cosmetology, barbering, real estate, or massage therapy are regulated by boards under DCCA and thus are exempt from HIDOE’s vocational school licensing. Likewise, certain professional programs fall outside HPEAP because they are covered elsewhere.
  
  
• Short-Term or Limited Audience Courses – Programs that are very short in duration or small in enrollment may be exempt. Hawaii’s rules specify that classes with fewer than five students at one time, or courses that run for no more than 20 sessions in a 12-month period, do not require a vocational school license. This exemption is meant for small, boutique classes or short workshops. Additionally, seminars, refresher courses, or training offered by professional, business, or farming organizations to their own members (and not open to the general public for profit) are exempt from licensing.
  
  
• Employer-Sponsored Training – Education or training programs conducted by an employer for its own employees, where no tuition is charged, do not need to be licensed. Many companies provide in-house training or professional development; as long as these programs are truly internal and not open to the public, they fall outside the licensing requirements.
  
  
• Purely Online Institutions with No Physical Presence – If a school offers courses exclusively via distance education and has no physical presence in Hawaii (no local site, no administrative office or staff in-state), it is not subject to HPEAP authorization. Note that having even a minimal physical presence (such as a local recruiting office or a single employee) could trigger the need for authorization, so this exemption strictly applies to completely out-of-state online providers. Online schools often voluntarily join the SARA network for operating in multiple states, but Hawaii’s HPEAP will not license them unless they set up a physical location in Hawaii.
  
  
• Other Specific Exemptions – Hawaii’s statutes and rules contain a few additional carve-outs, such as schools that offer programs only to specific closed groups (for instance, courses offered by a labor union for its members’ apprenticeship training are exempt), and any educational programs conducted by public school districts (community education programs through the K-12 system). Also, non-degree avocational or hobby classes (e.g., recreational cooking classes, dance studios, martial arts dojos) are generally exempt, since they are not vocational in nature.

Hawaii: Unaccredited Degree-Granting Institutions (HRS 446E Compliance Guide)

Regulatory Authority and Scope

Oversight Agency
Hawaii’s Department of Commerce and Consumer Affairs (DCCA) Office of Consumer Protection (OCP) is responsible for enforcing HRS Chapter 446E. Unlike many states, Hawaii does not issue licenses or approvals to unaccredited post-secondary schools; instead, HRS 446E sets strict conditions that unaccredited degree-granting institutions must follow to operate legally. An “unaccredited institution” is defined as any degree-granting school not accredited (and not even a candidate for accreditation) by at least one U.S. Department of Education-recognized accreditor.

Exempt Schools
Certain institutions are excluded from HRS 446E. These include schools offering only religious education to their members, employee training programs, schools that do not confer degrees, and any college or university that is fully accredited by a recognized agency. Accredited institutions with a physical presence in Hawaii fall under a separate law, HRS 305J, and the purview of HPEAP – the Hawaii Post-secondary Education Authorization Program, rather than Chapter 446E. Notably, even accredited schools must obtain professional accreditation to issue certain degrees – for example, law schools need American Bar Association approval to grant a J.D., and medical schools need Liaison Committee on Medical Education recognition for an M.D.

Compliance Requirements for Unaccredited Institutions

An unaccredited degree-granting institution must strictly comply with HRS 446E in order to operate in Hawaii. Key legal requirements include:

• Physical Presence in Hawaii
  The institution must establish a real presence in the state if it awards degrees from Hawaii. This means maintaining an office in Hawaii (a physical facility, not a P.O. box or mail drop), employing at least one Hawaii-based staff member (minimum 20 hours/week), and having at least 25 enrolled students residing in Hawaii each academic year. In short, no degrees can be issued unless the school has a bona fide Hawaii location with local operations. This provision prevents mere “diploma mills” with no local footprint.
  
  
• Service of Process (Agent Requirement)
  Any unaccredited institution with a presence in Hawaii must appoint an in-state agent for service of process and notify the DCCA of the agent’s name, address, and telephone number. This registered agent is the school’s official contact for any legal notices. If a school fails to designate or maintain an agent, the law permits legal service via certified mail to the institution’s last known address. Compliance tip: Submit the Hawaii agent information to DCCA before enrolling students, and keep it updated to avoid default service by mail.
  
  
• Mandatory Disclosures in All Materials
  Every catalog, program brochure, website, advertisement, and enrollment contract must clearly disclose that the institution is not accredited by any U.S.-recognized accrediting agency. The required disclosure wording is set by law. It must state, for example: “School Name is NOT ACCREDITED by an agency recognized by the U.S. Secretary of Education,” followed by a consumer warning that many licensing boards, colleges, and employers may not recognize unaccredited degrees. The statute mandates that this disclaimer appear in font size at least as large as the largest text on the page (excluding the school’s name/logo) and be presented prominently so that readers notice it. If the school provides any information about accreditation – even mentioning an unrecognized or future accreditation – then the official “NOT ACCREDITED” disclaimer must be repeated on every page where such information appears (immediately before or after the accreditation reference). For brief media like a small newspaper ad, a shortened disclosure “NOT ACCREDITED by an agency recognized by the U.S. DOE” is allowed, provided it is in bold type as large as any other text in the ad.
  
  
• Student Enrollment Agreements
  The same accreditation disclosure must be included in all contracts or enrollment agreements that students sign. Prospective students should see upfront that the school lacks recognized accreditation. The law effectively ensures no student can enroll without acknowledging the unaccredited status.
  
  
• Advertising and Website Claims
  All marketing must be truthful about the school’s status. HRS 446E strictly prohibits any suggestion that the State of Hawaii licenses, approves, or regulates the school. Unaccredited colleges cannot use Hawaii’s state seal or any language implying official sanction. They also cannot advertise or imply “pending accreditation” in an attempt to reassure students. Any statement that the institution has “applied for accreditation” or is in the process of accreditation is illegal under this law. The school either is accredited or it isn’t – if it isn’t, it must plainly say so and cannot mislead students with future hopes.
  
  
• Prohibited Degree Programs
  Certain degrees cannot be offered at all by an unaccredited institution in Hawaii. Law degrees (Juris Doctor, LL.M.) may only be issued if the school is accredited by the American Bar Association. Similarly, Doctor of Medicine (M.D.) degrees require Liaison Committee on Medical Education (LCME) accreditation. An unaccredited school must not award medical or law degrees – doing so is explicitly forbidden by HRS 446E.
  
  
• Tuition Collection Restrictions
  It is unlawful for an unaccredited institution operating in or from Hawaii to collect any tuition or fees from students unless all requirements of Chapter 446E are met. In other words, if a school is not in full compliance (e.g. fails to make the required disclosures or lacks a Hawaii office), it cannot lawfully charge or accept student tuition. This rule covers not just schools physically in Hawaii but also any institution with a presence in the state – including online programs enrolling Hawaii residents. Presence is defined broadly to include offering courses or maintaining an address in Hawaii, which OCP interprets to cover online education directed at Hawaii students. Schools that violate this provision may be ordered to refund tuition as part of enforcement actions.
  
  
• Recordkeeping
  Unaccredited institutions must maintain detailed student and academic records as a consumer protection measure. HRS 446E-2 requires keeping accurate records of student enrollments, courses taken, fees paid, and “matriculation” (degree completion) rates. These records must be retained for a minimum of five years and be made available to the DCCA/OCP upon request or subpoena. The school should be prepared for OCP compliance audits – failure to produce records is a serious violation. It is wise to organize admissions, academic, and financial records from the outset to meet this obligation.

For personalized guidance on navigating the authorization process for your private post secondary institution in Hawaii, reach out to Expert Education Consultants (EEC) at +19252089037 or email sandra@experteduconsult.com