Alabama House Bill HB246 Latest Draft

                            HB246ENROLLED
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RBATYM-3
By Representatives Paschal, Hassell
RFD: Boards, Agencies and Commissions
First Read: 04-Apr-23
2023 Regular Session
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Enrolled, An Act,
Relating to the licensed practice of cosmetology; to
provide and adopt the Cosmetology Licensure Compact to allow
licensed cosmetologists to practice pursuant to a multistate
license among compact states in a limited manner; to provide
eligibility requirements for licensed cosmetologists to
practice cosmetology pursuant to the compact; to provide for a
coordinated licensure information system, joint
investigations, and disciplinary actions; to establish the
Cosmetology Licensure Compact Commission; to provide for the
membership, powers, duties, and rulemaking functions of the
commission; and to provide for oversight of the compact,
enforcement of the compact, default procedures, dispute
resolution, withdrawal of compact states, and amendments to
the compact.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Purpose.
(a) The purpose of this compact is to facilitate the
interstate practice and regulation of cosmetology with the
goal of improving public access to, and the safety of,
cosmetology services and reducing unnecessary burdens related
to cosmetology licensure. Through this compact, the member
states seek to establish a regulatory framework which provides
for a new multistate licensing program. Through this new
licensing program, the member states seek to provide increased
value and mobility to licensed cosmetologists in the member
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states, while ensuring the provision of safe, effective, and
reliable services to the public.
(b) This compact is designed to achieve the following
objectives, and the member states ratify the same intentions,
by subscribing to all of the following:
(1) Provide opportunities for interstate practice by
cosmetologists who meet uniform requirements for multistate
licensure.
(2) Enhance the abilities of member states to protect
public health and safety, and prevent fraud and unlicensed
activity within the profession.
(3) Ensure and encourage cooperation between member
states in the licensure and regulation of the practice of
cosmetology.
(4) Support relocating military members and their
spouses.
(5) Facilitate the exchange of information between
member states related to the licensure, investigation, and
discipline of the practice of cosmetology.
(6) Provide for the licensure and mobility of the
workforce in the profession, while addressing the shortage of
workers and lessening the associated burdens on the member
states.
Section 2. Definitions.
As used in this compact, and except as otherwise
provided, the following definitions shall govern the terms
herein:
(1) ACTIVE DUTY MILITARY MEMBER. Any individual in
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full-time duty status in the active unformed service Armed
Forces of the United States including members of the National
Guard and Reserve.
(2) ADVERSE ACTION. Any administrative, civil,
equitable, or criminal action permitted by a member state's
laws which is imposed by a state licensing authority or other
regulatory body against a cosmetologist, including actions
against an individual's license or authorization to practice,
such as revocation, suspension, probation, monitoring of the
licensee, limitation of the licensee's practice, or any other
encumbrance on a license affecting an individual's ability to
participate in the cosmetology industry, including the
issuance of a cease and desist order.
(3) ALTERNATIVE PROGRAM. A non-disciplinary monitoring
or prosecutorial diversion program approved by a member
state's state licensing authority.
(4) AUTHORIZATION TO PRACTICE. A legal authorization
associated with a multistate license permitting the practice
of cosmetology in that remote state, which shall be subject to
the enforcement jurisdiction of the state licensing authority
in that remote state.
(5) BACKGROUND CHECK. The submission of information for
an applicant for the purpose of obtaining that applicant's
criminal history record information, as further defined in 28
C.F.R. § 20.33, from the Federal Bureau of Investigation and
the agency responsible for retaining state criminal or
disciplinary history in the applicant's home state.
(6) CHARTER MEMBER STATE. Member states that have
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enacted legislation to adopt this compact where the
legislation predates the effective date of this compact as
defined in Section 13.
(7) COMMISSION. The government agency whose membership
consists of all states that have enacted this compact, which
is known as the Cosmetology Licensure Compact Commission, as
defined in Section 9, and which shall operate as an
instrumentality of the member states.
(8) COSMETOLOGIST. An individual licensed in his or her
home state to practice cosmetology.
(9) COSMETOLOGY, COSMETOLOGY SERVICES, and the PRACTICE
OF COSMETOLOGY. The care and services provided by a
cosmetologist as set forth in the member state's statutes and
rules in the state where the services are being provided.
(10) CURRENT SIGNIFICANT INVESTIGATIVE INFORMATION:
Either of the following:
a. Investigative information that a state licensing
authority, after an inquiry or investigation that complies
with a member state's due process requirements, has reason to
believe is not groundless and, if proved true, would indicate
a violation of that state's laws regarding fraud or the
practice of cosmetology.
b. Investigative information that indicates that a
licensee has engaged in fraud or represents an immediate
threat to public health and safety, regardless of whether the
licensee has been notified and had an opportunity to respond.
(11) DATA SYSTEM. A repository of information about
licensees including, but not limited to, license status,
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investigative information, and adverse actions.
(12) DISQUALIFYING EVENT. Any event which shall
disqualify an individual from holding a multistate license
under this compact, which the commission may by rule or order
specify.
(13) ENCUMBRANCE. A revocation or suspension of, or any
limitation on, the full and unrestricted practice of
cosmetology by a state licensing authority.
(14) EXECUTIVE COMMITTEE. A group of delegates elected
or appointed to act on behalf of, and within the powers
granted to them by, the commission.
(15) HOME STATE. The member state which is a licensee's
primary state of residence, and where that licensee holds an
active and unencumbered license to practice cosmetology.
(16) INVESTIGATIVE INFORMATION. Information, records,
or documents received or generated by a state licensing
authority pursuant to an investigation or other inquiry.
(17) JURSIPRUDENCE REQUIREMENT. The assessment of an
individual's knowledge of the laws and rules governing the
practice of cosmetology in a state.
(18) LICENSEE. An individual who currently holds a
license from a member state to practice as a cosmetologist.
(19) MEMBER STATE. Any state that has adopted this
compact.
(20) MULTISTATE LICENSE. A license issued by and
subject to the enforcement jurisdiction of the state licensing
authority in a licensee's home state, which authorizes the
practice of cosmetology in member states and includes
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authorizations to practice cosmetology in all remote states
pursuant to this compact. 
(21) REMOTE STATE. Any member state, other than the
licensee's home state.
(22) RULE. Any rule or regulation adopted by the
commission under this compact which has the force of law.
(23) SINGLE-STATE LICENSE. A cosmetology license issued
by a member state that authorizes practice of cosmetology only
within the issuing state and does not include any
authorization outside of the issuing state.
(24) STATE. A state, territory, or possession of the
United States and the District of Columbia.
(25) STATE LICENSING AUTHORITY. A member state's
regulatory body responsible for issuing cosmetology licenses
or otherwise overseeing the practice of cosmetology in that
state.
Section 3. Member state requirements.
(a) To be eligible to join this compact, and to
maintain eligibility as a member state, a state must do all of
the following:
(1) License and regulate cosmetology. 
(2) Have a mechanism or entity in place to receive and
investigate complaints about licensees practicing in that
state.
(3) Require that licensees within the state pass a
cosmetology competency examination prior to being licensed to
provide cosmetology services to the public in that state.
(4) Require that licensees satisfy educational or
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training requirements in cosmetology prior to being licensed
to provide cosmetology services to the public in that state.
(5) Implement procedures for considering one or more of
the following categories of information from applicants for
licensure: Criminal history; disciplinary history; or
background check. The procedures may include the submission of
information by applicants for the purpose of obtaining an
applicant's background check.
(6) Participate in the data system, including through
the use of unique identifying numbers.
(7) Share information related to adverse actions with
the commission and other member states, both through the data
system and otherwise.
(8) Notify the commission and other member states, in
compliance with the terms of the compact and rules of the
commission, of the existence of investigative information or
current significant investigative information in the state's
possession regarding a licensee practicing in that state.
(9) Comply with rules adopted by the commission to
administer the compact.
(10) Accept licensees from other member states as
established herein.
(b) Member states may charge a fee for granting a
license to practice cosmetology.
(c) Individuals not residing in a member state shall
continue to be able to apply for a member state's single-state
license as provided under the laws of each member state.
However, the single-state license granted to these individuals
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shall not be recognized as granting a multistate license to
provide services in any other member state.
(d) Nothing in this compact shall affect the
requirements established by a member state for the issuance of
a single-state license.
(e) A multistate license issued to a licensee by a home
state to a resident of that state shall be recognized by each
member state as authorizing a licensee to practice cosmetology
in each member state.
(f) At no point shall the commission have the power to
define the educational or professional requirements for a
license to practice cosmetology. The member states shall
retain sole jurisdiction over the provision of these
requirements.
Section 4. Multistate license.
(a) To be eligible to apply to his or her home state's
state licensing authority for an initial multistate license
under this compact, a licensee must hold an active and
unencumbered single-state license to practice cosmetology in
his or her home state.
(b) Upon the receipt of an application for a multistate
license, according to the rules of the commission, a member
state's state licensing authority shall ascertain whether the
applicant meets the requirements for a multistate license
under this compact.
(c) If an applicant meets the requirements for a
multistate license under this compact and any applicable rules
of the commission, the state licensing authority in receipt of
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the application, within a reasonable time, shall grant a
multistate license to that applicant, and inform all member
states of the grant of the multistate license.
(d) A multistate license to practice cosmetology issued
by a member state's state licensing authority shall be
recognized by each member state as authorizing the practice
thereof as though that licensee held a single-state license to
do so in each member state, subject to the restrictions
herein.
(e) A multistate license granted pursuant to this
compact may be effective for a definite period of time,
concurrent with the licensure renewal period in the home
state.
(f) To maintain a multistate license under this
compact, a licensee shall do all of the following:
(1) Agree to abide by the rules of the state licensing
authority, and the state scope of practice laws governing the
practice of cosmetology, of any member state in which the
licensee provides services.
(2) Pay all required fees related to the application
and process, and any other fees which the commission may by
rule require.
(3) Comply with any and all other requirements
regarding multistate licenses which the commission may by rule
provide.
(g) A licensee practicing in a member state is subject
to all scope of practice laws governing cosmetology services
in that state.
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(h) The practice of cosmetology under a multistate
license granted pursuant to this compact shall subject the
licensee to the jurisdiction of the state licensing authority,
the courts, and the laws of the member state in which the
cosmetology services are provided.
Section 5. Reissuance of a multistate license by a new
home state.
(a) A licensee may hold a multistate license, issued by
his or her home state, in only one member state at any given
time.
(b) If a licensee changes his or her home state by
moving between two member states:
(1) The licensee shall immediately apply for the
reissuance of his or her multistate license in his or her new
home state. The licensee shall pay all applicable fees and
notify the prior home state in accordance with the rules of
the commission.
(2) Upon receipt of an application to reissue a
multistate license, the new home state shall verify that the
multistate license is active, unencumbered, and eligible for
reissuance under the terms of the compact and the rules of the
commission. The multistate license issued by the prior home
state shall be deactivated and all member states notified in
accordance with the applicable rules adopted by the
commission.
(3) If required for initial licensure, the new home
state may require a background check as specified in the laws
of that state, or the compliance with any jurisprudence
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requirements of the new home state.
(4) Notwithstanding any other provision of this
compact, if a licensee does not meet the requirements set
forth in this compact for the reissuance of a multistate
license by the new home state, then the licensee shall be
subject to the new home state requirements for the issuance of
a single-state license in that state.
(c) If a licensee changes his or her primary state of
residence by moving from a member state to a non-member state,
or from a non-member state to a member state, then the
licensee shall be subject to the state requirements for the
issuance of a single-state license in the new home state.
(d) Nothing in this compact shall interfere with a
licensee's ability to hold a single-state license in multiple
states; however, for the purposes of this compact, a licensee
shall have only one home state, and only one multistate
license.
(e) Nothing in this compact shall interfere with the
requirements established by a member state for the issuance of
a single-state license.
Section 6. Authority of the compact commission and
member state licensing authorities.
(a) Nothing in this compact, nor any rule of the
commission, shall be construed to limit, restrict, or in any
way reduce the ability of a member state to enact and enforce
laws, regulations, or other rules related to the practice of
cosmetology in that state, where those laws, regulations, or
other rules are not inconsistent with this compact.
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(b) Insofar as practical, a member state's state
licensing authority shall cooperate with the commission and
with each entity exercising independent regulatory authority
over the practice of cosmetology according to this compact.
(c) Discipline shall be the sole responsibility of the
state in which cosmetology services are provided. Accordingly,
each member state's state licensing authority shall be
responsible for receiving complaints about individuals
practicing cosmetology in that state, and for communicating
all relevant investigative information about any adverse
action to the other member states through the data system in
addition to any other methods the commission may by rule
require.
Section 7. Adverse actions.
(a) A licensee's home state shall have exclusive power
to impose an adverse action against a licensee's multistate
license issued by the home state.
(b) A home state may take adverse action on a
multistate license based on the investigative information,
current significant investigative information, or adverse
action of a remote state.
(c) In addition to the powers conferred by state law,
each remote state's state licensing authority shall have the
power to do all of the following:
(1) Take adverse action against a licensee's
authorization to practice cosmetology through the multistate
license in that member state, provided that:
a. Only the licensee's home state shall have the power
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to take adverse action against the multistate license issued
by the home state; and
b. For the purposes of taking adverse action, the home
state's state licensing authority shall give the same priority
and effect to reported conduct received from a remote state as
it would if the conduct had occurred within the home state. In
so doing, the home state shall apply its own state laws to
determine the appropriate action.
(2) Issue cease and desist orders or impose an
encumbrance on a licensee's authorization to practice within
that member state.
(3) Complete any pending investigations of a licensee
who changes his or her primary state of residence during the
course of an investigation. The state licensing authority
shall also be empowered to report the results of an
investigation to the commission through the data system as
described herein.
(4) Issue subpoenas for both hearings and
investigations that require the attendance and testimony of
witnesses, as well as the production of evidence. Subpoenas
issued by a state licensing authority in a member state for
the attendance and testimony of witnesses or the production of
evidence from another member state shall be enforced in the
latter state by any court of competent jurisdiction, according
to the practice and procedure of that court applicable to
subpoenas issued in proceedings before the court. The issuing
state licensing authority shall pay any witness fees, travel
expenses, mileage, and other fees required by the service
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statutes of the state in which the witnesses or evidence are
located.
(5) If otherwise permitted by state law, recover from
the affected licensee the costs of investigations and
disposition of cases resulting from any adverse action taken
against that licensee.
(6) Take adverse action against the licensee's
authorization to practice in that state based on the factual
findings of another remote state.
(d) A licensee's home state shall complete any pending
investigation of a cosmetologist who changes his or her
primary state of residence during the course of the
investigation. The home state shall also have the authority to
take appropriate action and shall promptly report the
conclusions of the investigations to the data system.
(e) If an adverse action is taken by the home state
against a licensee's multistate license, the licensee's
authorization to practice in all other member states shall be
deactivated until all encumbrances have been removed from the
home state license. All home state disciplinary orders that
impose an adverse action against a licensee's multistate
license shall include a statement that the cosmetologist's
authorization to practice is deactivated in all member states
during the pendency of the order.
(f) Nothing in this compact shall override a member
state's authority to accept a licensee's participation in an
alternative program in lieu of adverse action. A licensee's
multistate license shall be suspended for the duration of the
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licensee's participation in any alternative program.
(g) Joint investigations.
(1) In addition to the authority granted to a member
state by its respective scope of practice laws or other
applicable state law, a member state may participate with
other member states in joint investigations of licensees. 
(2) Member states shall share any investigative,
litigation, or compliance materials in furtherance of any
joint or individual investigation initiated under the compact.
Section 8. Active duty military members and their
spouses.
Active dutymilitary personnel military members , or
their spouses, shall designate a home state where the
individual has a current license to practice cosmetology in
good standing. The individual may retain his or her home state
designation during any period of service when that individual
or his or her spouse is on active duty assignment.
Section 9. Establishment and operation of the
Cosmetology Licensure Compact Commission.
(a) The compact member states hereby create and
establish a joint government agency whose membership consists
of all member states that have enacted the compact known as
the Cosmetology Licensure Compact Commission. The commission
is an instrumentality of the compact member states acting
jointly and not an instrumentality of any one state. The
commission shall come into existence on or after the effective
date of the compact as set forth in Section 13.
(b) Membership, voting, and meetings.
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(1) Each member state shall have and be limited to one
delegate selected by that member state's state licensing
authority.
(2) The delegate shall be an administrator of the state
licensing authority of the member state or his or her
designee.
(3) The commission shall by rule or bylaw establish a
term of office for delegates and may by rule or bylaw
establish term limits.
(4) The commission may recommend removal or suspension
of any delegate from office.
(5) A member state's state licensing authority shall
fill any vacancy of its delegate occurring on the commission
within 60 days of the vacancy.
(6) Each delegate shall be entitled to one vote on all
matters that are voted on by the commission.
(7) The commission shall meet at least once during each
calendar year. Additional meetings may be held as set forth in
the bylaws. The commission may meet by telecommunication,
video conference or other similar electronic means.
(c) The commission shall do all of the following:
(1) Establish the fiscal year of the commission.
(2) Establish code of conduct and conflict of interest
policies.
(3) Adopt rules and bylaws.
(4) Maintain its financial records in accordance with
the bylaws.
(5) Meet and take actions consistent with this compact,
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the commission's rules, and the bylaws.
(6) Initiate and conclude legal proceedings or actions
in the name of the commission; provided that the standing of
any state licensing authority to sue or be sued under
applicable law shall not be affected.
(7) Maintain and certify records and information
provided to a member state as the authenticated business
records of the commission, and designate an agent to do so on
the commission's behalf.
(8) Purchase and maintain insurance and bonds.
(9) Borrow, accept, or contract for services of
personnel including, but not limited to, employees of a member
state.
(10) Conduct an annual financial review.
(11) Hire employees, elect or appoint officers, fix
compensation, define duties, grant individuals appropriate
authority to carry out the purposes of the compact, and
establish the commission's personnel policies and programs
relating to conflicts of interest, qualifications of
personnel, and other related personnel matters.
(12) As set forth in the commission rules, charge a fee
to a licensee for the grant of a multistate license and
thereafter, as may be established by commission rule, charge
the licensee a multistate license renewal fee for each renewal
period. Nothing herein shall be construed to prevent a home
state from charging a licensee a fee for a multistate license
or renewals of a multistate license, or a fee for the
jurisprudence requirement if the member state imposes a
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requirement for the grant of a multistate license.
(13) Assess and collect fees.
(14) Accept any and all appropriate gifts, donations,
grants of money, other sources of revenue, equipment,
supplies, materials, and services, and receive, utilize, and
dispose of the same; provided that the commission shall avoid
any appearance of impropriety or conflict of interest.
(15) Lease, purchase, retain, own, hold, improve, or
use any property, real, personal, or mixed, or any undivided
interest therein.
(16) Sell, convey, mortgage, pledge, lease, exchange,
abandon, or otherwise dispose of any property real, personal,
or mixed.
(17) Establish a budget and make expenditures.
(18) Borrow money.
(19) Appoint committees, including standing committees,
composed of members, state regulators, state legislators or
their representatives, and consumer representatives, and other
interested individuals as may be designated in this compact
and the bylaws.
(20) Provide and receive information from, and
cooperate with, law enforcement agencies.
(21) Elect a chair, vice chair, secretary, treasurer,
and other officers of the commission as provided in the
commission's bylaws.
(22) Establish and elect an executive committee,
including a chair and a vice chair.
(23) Adopt and provide to the participating member
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states an annual report.
(24) Determine whether a state's adopted language is
materially different from the model compact language such that
the state would not qualify for participation in the compact.
(25) Perform other functions as may be necessary or
appropriate to achieve the purposes of this compact.
(d) The executive committee.
(1) The executive committee shall have the power to act
on behalf of the commission according to the terms of this
compact. The powers, duties, and responsibilities of the
executive committee shall include all of the following:
a. Overseeing the day-to-day activities of the
administration of the compact including compliance with the
compact, the commission's rules and bylaws, and other duties
as deemed necessary.
b. Recommending to the commission changes to the rules
or bylaws, changes to this compact legislation, fees charged
to compact member states, fees charged to licensees, and other
fees.
c. Ensuring compact administration services are
appropriately provided, including by contract.
d. Preparing and recommending the budget.
e. Maintaining financial records on behalf of the
commission.
f. Monitoring compact compliance of member states and
providing compliance reports to the commission.
g. Establishing additional committees as necessary.
h. Exercising the powers and duties of the commission
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during the interim between commission meetings, except for
adopting or amending rules, adopting or amending bylaws, and
exercising any other powers and duties expressly reserved to
the commission by rule or bylaw.
i. Other duties as provided in the rules or bylaws of
the commission.
(2) The executive committee shall be composed of up to
seven voting members:
a. The chair and vice chair of the commission and any
other members of the commission who serve on the executive
committee shall be voting members of the executive committee.
b. Other than the chair, vice chair, secretary, and
treasurer, the commission shall elect three voting members
from the current membership of the commission.
c. The commission may elect ex officio, nonvoting
members from a recognized national cosmetology professional
association as approved by the commission. The commission's
bylaws shall identify qualifying organizations and the manner
of appointment if the number of organizations seeking to
appoint an ex officio member exceeds the number of members
specified in this section.
(3) The commission may remove any member of the
executive committee as provided in the commission's bylaws.
(4) The executive committee shall meet at least
annually.
a. Annual executive committee meetings, as well as any
executive committee meeting at which the executive committee
does not take or intend to take formal action on a matter for
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which a commission vote would otherwise be required, shall be
open to the public, except that the executive committee may
meet in a closed, non-public session of a public meeting when
dealing with any of the matters covered under subdivision (4)
of subsection (f).
b. The executive committee shall give five business
days' advance notice of its public meetings, posted on its
website and as determined to provide notice to individuals
with an interest in the public matters the executive committee
intends to address at those meetings.
(5) The executive committee may hold an emergency
meeting when acting for the commission to do any of the
following:
a. Meet an imminent threat to public health, safety, or
welfare.
b. Prevent a loss of commission or participating member
state funds.
c. Protect public health and safety.
(e) The commission shall adopt and provide to the
member states an annual report.
(f) Meetings of the commission.
(1) All meetings of the commission that are not closed
pursuant to subdivision (4) shall be open to the public.
Notice of public meetings shall be posted on the commission's
website at least 30 days prior to the public meeting.
(2) Notwithstanding subdivision (1), the commission may
convene an emergency public meeting by providing at least 24
hours' prior notice on the commission's website, and any other
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means as provided in the commission's rules, for any of the
reasons it may dispense with notice of proposed rulemaking
under subsection (l) of Section 11. The commission's legal
counsel shall certify that one of the reasons justifying an
emergency public meeting has been met.
(3) Notice of all commission meetings shall provide the
time, date, and location of the meeting, and if the meeting is
to be held or accessible via telecommunication, video
conference, or other electronic means, the notice shall
include the mechanism for access to the meeting.
(4) The commission may convene in a closed, non-public
meeting for the commission to discuss any of the following:
a. Non-compliance of a member state with its
obligations under the compact.
b. The employment, compensation, discipline, or other
matters, practices, or procedures related to specific
employees or other matters related to the commission's
internal personnel practices and procedures.
c. Current or threatened discipline of a licensee by
the commission or by a member state's licensing authority.
d. Current, threatened, or reasonably anticipated
litigation.
e. Negotiation of contracts for the purchase, lease, or
sale of goods, services, or real estate.
f. Accusing any individual of a crime or formally
censuring any individual.
g. Trade secrets or commercial or financial information
that is privileged or confidential.
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h. Information of a personal nature where disclosure
would constitute a clearly unwarranted invasion of personal
privacy.
i. Investigative records compiled for law enforcement
purposes.
j. Information related to any investigative reports
prepared by or on behalf of or for use of the commission or
other committee charged with responsibility of investigation
or determination of compliance issues pursuant to the compact.
k. Legal advice.
l. Matters specifically exempted from disclosure to the
public by federal or member state law.
m. Other matters as adopted by the commission by rule.
(5) If a meeting, or portion of a meeting, is closed,
the presiding officer shall state that the meeting will be
closed and reference each relevant exempting provision, and
the reference shall be recorded in the minutes.
(6) The commission shall keep minutes that fully and
clearly describe all matters discussed in a meeting and shall
provide a full and accurate summary of actions taken, and the
reasons therefore, including a description of the views
expressed. All documents considered in connection with an
action shall be identified in the minutes. All minutes and
documents of a closed meeting shall remain under seal, subject
to release only by a majority vote of the commission or order
of a court of competent jurisdiction.
(g) Financing of the commission.
(1) The commission shall pay, or provide for the
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payment of, the reasonable expenses of its establishment,
organization, and ongoing activities.
(2) The commission may accept any and all appropriate
sources of revenue, donations, and grants of money, equipment,
supplies, materials, and services.
(3) The commission may levy on and collect an annual
assessment from each member state and impose fees on licensees
of member states to whom it grants a multistate license to
cover the cost of the operations and activities of the
commission and its staff, which shall be in a total amount
sufficient to cover its annual budget as approved each year
for which revenue is not provided by other sources. The
aggregate annual assessment amount for member states shall be
allocated based upon a formula that the commission shall adopt
by rule.
(4) The commission shall not incur obligations of any
kind prior to securing the funds adequate to meet the same;
nor shall the commission pledge the credit of any member
states, except by and with the authority of the member state.
(5) The commission shall keep accurate accounts of all
receipts and disbursements. The receipts and disbursements of
the commission shall be subject to the financial review and
accounting procedures established under its bylaws. All
receipts and disbursements of funds handled by the commission
shall be subject to an annual financial review by a certified
or licensed public accountant, and the report of the financial
review shall be included in and become part of the annual
report of the commission.
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(h) Qualified immunity, defense, and indemnification.
(1) The members, officers, executive director,
employees, and representatives of the commission shall be
immune from suit and liability, both personally and in their
official capacity, for any claim for damage to or loss of
property or personal injury or other civil liability caused by
or arising out of any actual or alleged act, error, or
omission that occurred, or that the individual against whom
the claim is made had a reasonable basis for believing
occurred within the scope of commission employment, duties, or
responsibilities; provided that nothing in this subdivision
shall be construed to protect any individual from suit or
liability for any damage, loss, injury, or liability caused by
the intentional or willful or wanton misconduct of that
individual. The procurement of insurance of any type by the
commission shall not in any way compromise or limit the
immunity granted hereunder.
(2) The commission shall defend any member, officer,
executive director, employee, and representative of the
commission in any civil action seeking to impose liability
arising out of any actual or alleged act, error, or omission
that occurred within the scope of commission employment,
duties, or responsibilities, or as determined by the
commission that the individual against whom the claim is made
had a reasonable basis for believing occurred within the scope
of commission employment, duties, or responsibilities;
provided that nothing herein shall be construed to prohibit
that individual from retaining his or her own counsel at his
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or her own expense; and provided further, that the actual or
alleged act, error, or omission did not result from that
individual's intentional or willful or wanton misconduct.
(3) The commission shall indemnify and hold harmless
any member, officer, executive director, employee, and
representative of the commission for the amount of any
settlement or judgment obtained against that individual
arising out of any actual or alleged act, error, or omission
that occurred within the scope of commission employment,
duties, or responsibilities, or that the individual had a
reasonable basis for believing occurred within the scope of
commission employment, duties, or responsibilities, provided
that the actual or alleged act, error, or omission did not
result from the intentional or willful or wanton misconduct of
that individual.
(4) Nothing herein shall be construed as a limitation
on the liability of any licensee for professional malpractice
or misconduct, which shall be governed solely by any other
applicable state laws.
(5) Nothing in this compact shall be interpreted to
waive or otherwise abrogate a member state's state action
immunity or state action affirmative defense with respect to
antitrust claims under the Sherman Act, Clayton Act, or any
other state or federal antitrust or anticompetitive law or
regulation.
(6) Nothing in this compact shall be construed to be a
waiver of sovereign immunity by the member states or by the
commission.
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Section 10. Data system.
(a) The commission shall provide for the development,
maintenance, operation, and utilization of a coordinated
database and reporting system.
(b) The commission shall assign each applicant for a
multistate license a unique identifier, as determined by the
rules of the commission.
(c) Notwithstanding any other provision of state law to
the contrary, a member state shall submit a uniform data set
to the data system on all individuals to whom this compact is
applicable as required by the rules of the commission,
including:
(1) Identifying information.
(2) Licensure data.
(3) Adverse actions against a license and information
related thereto.
(4) Non-confidential information related to alternative
program participation, the beginning and ending dates of
participation, and other information related to participation.
(5) Any denial of application for licensure, and the
reasons for the denial, excluding the reporting of any
criminal history record information where prohibited by law.
(6) The existence of investigative information.
(7) The existence of current significant investigative
information.
(8) Other information that may facilitate the
administration of this compact or the protection of the
public, as determined by the rules of the commission.
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(d) The records and information provided to a member
state pursuant to this compact or through the data system,
when certified by the commission or an agent thereof, shall
constitute the authenticated business records of the
commission, and shall be entitled to any associated hearsay
exception in any relevant judicial, quasi-judicial, or
administrative proceedings in a member state.
(e) The existence of current significant investigative
information and the existence of investigative information
pertaining to a licensee in any member state shall only be
available to other member states.
(f) It is the responsibility of the member states to
monitor the database to determine whether adverse action has
been taken against a licensee or license applicant. Adverse
action information pertaining to a licensee or license
applicant in any member state shall be available to any other
member state.
(g) Member states contributing information to the data
system may designate information that may not be shared with
the public without the express permission of the contributing
state.
(h) Any information submitted to the data system that
is subsequently expunged pursuant to federal law or the laws
of the member state contributing the information shall be
removed from the data system.
Section 11. Rulemaking.
(a) The commission shall adopt reasonable rules in
order to effectively and efficiently implement and administer
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the purposes and provisions of this compact. A rule shall be
invalid and have no force or effect only if a court of
competent jurisdiction holds that the rule is invalid because
the commission exercised its rulemaking authority in a manner
that is beyond the scope and purposes of the compact, or the
powers granted hereunder, or based upon another applicable
standard of review.
(b) The rules of the commission shall have the force of
law in each member state. Where the rules of the commission
conflict with the laws of the member state that establish the
member state's scope of practice laws governing the practice
of cosmetology as held by a court of competent jurisdiction,
the rules of the commission shall be ineffective in that state
to the extent of the conflict.
(c) The commission shall exercise its rulemaking powers
pursuant to the criteria set forth in this section and the
rules adopted thereunder. Rules shall become binding as of the
date specified by the commission for each rule.
(d) If a majority of the legislatures of the member
states rejects a rule or portion of a rule, by enactment of a
statute or resolution in the same manner used to adopt the
compact within four years of the date of adoption of the rule,
then the rule shall have no further force and effect in any
member state or to any state applying to participate in the
compact.
(e) Rules shall be adopted at a regular or special
meeting of the commission.
(f) Prior to adoption of a proposed rule, the
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commission shall hold a public hearing and allow individuals
to provide oral and written comments, data, facts, opinions,
and arguments.
(g) Prior to adoption of a proposed rule by the
commission, and at least 30 days in advance of the meeting at
which the commission shall hold a public hearing on the
proposed rule, the commission shall provide a notice of
proposed rulemaking to all of the following:
(1) On the website of the commission or other publicly
accessible platform.
(2) To individuals who have requested notice of the
commission's notices of proposed rulemaking.
(3) In other ways as the commission may by rule
specify.
(h) The notice of proposed rulemaking shall include all
of the following:
(1) The time, date, and location of the public hearing
at which the commission will hear public comments on the
proposed rule and, if different, the time, date, and location
of the meeting where the commission will consider and vote on
the proposed rule.
(2) If the hearing is held via telecommunication, video
conference, or other electronic means, the commission shall
include the mechanism for access to the hearing in the notice
of proposed rulemaking.
(3) The text of the proposed rule and the reason
therefor.
(4) A request for comments on the proposed rule from
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any interested individual.
(5) The manner in which interested individuals may
submit written comments.
(i) All hearings shall be recorded. A copy of the
recording and all written comments and documents received by
the commission in response to the proposed rule shall be
available to the public.
(j) Nothing in this section shall be construed as
requiring a separate hearing on each rule. Rules may be
grouped for the convenience of the commission at hearings
required by this section.
(k) The commission, by majority vote of all members,
shall take final action on the proposed rule based on the
rulemaking record and the full text of the rule.
(1) The commission may adopt changes to the proposed
rule provided the changes do not enlarge the original purpose
of the proposed rule.
(2) The commission shall provide an explanation of the
reasons for substantive changes made to the proposed rule as
well as reasons for substantive changes not made that were
recommended by commenters.
(3) The commission shall determine a reasonable
effective date for the rule. Except for an emergency as
provided in subsection (l), the effective date of the rule
shall be no sooner than 45 days after the commission issuing
the notice that it adopted or amended the rule.
(l) Upon determination that an emergency exists, the
commission may consider and adopt an emergency rule with five
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days' notice, with opportunity to comment, provided that the
usual rulemaking procedures provided in this compact and in
this section shall be retroactively applied to the rule as
soon as reasonably possible, in no event later than 90 days
after the effective date of the rule. For the purposes of this
subsection, an emergency rule is one that shall be adopted
immediately to do any of the following:
(1) Meet an imminent threat to public health, safety,
or welfare.
(2) Prevent a loss of commission or member state funds.
(3) Meet a deadline for the adoption of a rule that is
established by federal law or rule.
(4) Protect public health and safety.
(m) The commission or an authorized committee of the
commission may direct revisions to a previously adopted rule
for purposes of correcting typographical errors, errors in
format, errors in consistency, or grammatical errors. Public
notice of any revisions shall be posted on the website of the
commission. The revision shall be subject to challenge by any
individual for a period of 30 days after posting. The revision
may be challenged only on grounds that the revision results in
a material change to a rule. A challenge shall be made in
writing and delivered to the commission prior to the end of
the notice period. If no challenge is made, the revision shall
take effect without further action. If the revision is
challenged, the revision may not take effect without the
approval of the commission.
(n) No member state's rulemaking requirements shall
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apply under this compact.
Section 12. Oversight, dispute resolution, and
enforcement.
(a) Oversight.
(1) The executive and judicial branches of state
government in each member state shall enforce this compact and
take all actions necessary and appropriate to implement this
compact.
(2) Venue is proper and judicial proceedings by or
against the commission shall be brought solely and exclusively
in a court of competent jurisdiction where the principal
office of the commission is located. The commission may waive
venue and jurisdictional defenses to the extent it adopts or
consents to participate in alternative dispute resolution
proceedings. Nothing herein shall affect or limit the
selection or propriety of venue in any action against a
licensee for professional malpractice, misconduct or any
similar matter.
(3) The commission may receive service of process in
any proceeding regarding the enforcement or interpretation of
the compact and shall have standing to intervene in any
proceeding for all purposes. Failure to provide the commission
service of process shall render a judgment or order void as to
the commission, this compact, or adopted rules.
(b) Default, technical assistance, and termination.
(1) If the commission determines that a member state
has defaulted in the performance of its obligations or
responsibilities under this compact or the adopted rules, the
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commission shall provide written notice to the defaulting
state. The notice of default shall describe the default, the
proposed means of curing the default, and any other action
that the commission may take, and shall offer training and
specific technical assistance regarding the default.
(2) The commission shall provide a copy of the notice
of default to the other member states.
(3) If a state in default fails to cure the default,
the defaulting state may be terminated from the compact upon
an affirmative vote of a majority of the delegates of the
member states, and all rights, privileges and benefits
conferred on that state by this compact may be terminated on
the effective date of termination. A cure of the default does
not relieve the offending state of obligations or liabilities
incurred during the period of default.
(4) Termination of membership in the compact shall be
imposed only after all other means of securing compliance have
been exhausted. Notice of intent to suspend or terminate shall
be given by the commission to the governor, the majority and
minority leaders of the defaulting state's legislature, the
defaulting state's state licensing authority and each of the
member states' state licensing authority.
(5) A state that has been terminated is responsible for
all assessments, obligations, and liabilities incurred through
the effective date of termination, including obligations that
extend beyond the effective date of termination.
(6) Upon the termination of a state's membership from
this compact, that state shall immediately provide notice to
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all licensees who hold a multistate license within that state
of the termination. The terminated state shall continue to
recognize all licenses granted pursuant to this compact for a
minimum of 180 days after the date of the notice of
termination.
(7) The commission shall not bear any costs related to
a state that is found to be in default or that has been
terminated from the compact, unless agreed upon in writing
between the commission and the defaulting state.
(8) The defaulting state may appeal the action of the
commission by petitioning the United States District Court for
the District of Columbia or the federal district where the
commission has its principal offices. The prevailing party
shall be awarded all costs of the litigation, including
reasonable attorney's fees.
(c) Dispute resolution.
(1) Upon request by a member state, the commission
shall attempt to resolve disputes related to the compact that
arise among member states and between member and non-member
states.
(2) The commission shall adopt a rule providing for
both mediation and binding dispute resolution for disputes as
appropriate.
(d) Enforcement.
(1) The commission, in the reasonable exercise of its
discretion, shall enforce this compact and the commission's
rules.
(2) By majority vote as provided by commission rule,
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the commission may initiate legal action against a member
state in default in the United States District Court for the
District of Columbia or the federal district where the
commission has its principal office to enforce compliance with
this compact and its adopted rules. The relief sought may
include both injunctive relief and damages. In the event
judicial enforcement is necessary, the prevailing party shall
be awarded all costs of the litigation, including reasonable
attorney's fees. The remedies herein shall not be the
exclusive remedies of the commission. The commission may
pursue any other remedies available under federal or the
defaulting member state's law.
(3) A member state may initiate legal action against
the commission in the United States District Court for the
District of Columbia or the federal district where the
commission has its principal office to enforce compliance with
this compact and its adopted rules. The relief sought may
include both injunctive relief and damages. In the event
judicial enforcement is necessary, the prevailing party shall
be awarded all costs of the litigation, including reasonable
attorney's fees.
(4) No individual or entity other than a member state
may enforce this compact against the commission.
Section 13. Effective date, withdrawal, and amendment.
(a) The compact shall come into effect on the date on
which the compact statute is enacted into law in the seventh
member state.
(1) On or after the effective date of the compact, the
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commission shall convene and review the enactment of each of
the charter member states to determine if the statute enacted
by each charter member state is materially different than the
model compact statute.
a. A charter member state whose enactment is found to
be materially different from the model compact statute shall
be entitled to the default process set forth in Section 12.
b. If any member state is later found to be in default,
or is terminated or withdraws from the compact, the commission
shall remain in existence and the compact shall remain in
effect even if the number of member states should be less than
seven.
(2) Member states enacting the compact subsequent to
the charter member states shall be subject to the process set
forth in subdivision (c)(24) of Section 9 to determine if
their enactments are materially different from the model
compact statute and whether they qualify for participation in
the compact.
(3) All actions taken for the benefit of the commission
or in furtherance of the purposes of the administration of the
compact prior to the effective date of the compact or the
commission coming into existence shall be considered to be
actions of the commission unless specifically repudiated by
the commission.
(4) Any state that joins the compact shall be subject
to the commission's rules and bylaws as they exist on the date
on which the compact becomes law in that state. Any rule that
has been previously adopted by the commission shall have the
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full force and effect of law on the day the compact becomes
law in that state.
(b) Any member state may withdraw from this compact by
enacting a statute repealing that state's enactment of the
compact.
(1) A member state's withdrawal shall not take effect
until 180 days after enactment of the repealing statute.
(2) Withdrawal shall not affect the continuing
requirement of the withdrawing state's state licensing
authority to comply with the investigative and adverse action
reporting requirements of this compact prior to the effective
date of withdrawal.
(3) Upon the enactment of a statute withdrawing from
this compact, a state shall immediately provide notice of the
withdrawal to all licensees within that state. Notwithstanding
any subsequent statutory enactment to the contrary, the
withdrawing state shall continue to recognize all licenses
granted pursuant to this compact for a minimum of 180 days
after the date of notice of withdrawal.
(c) Nothing contained in this compact shall be
construed to invalidate or prevent any licensure agreement or
other cooperative arrangement between a member state and a
non-member state that does not conflict with this compact.
(d) This compact may be amended by the member states.
No amendment to this compact shall become effective and
binding upon any member state until it is enacted into the
laws of all member states.
Section 14. Construction and severability.
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Page 39
(a) This compact and the commission's rulemaking
authority shall be liberally construed so as to effectuate the
purposes, and the implementation and administration of the
compact. Provisions of the compact expressly authorizing or
requiring the adoption of rules shall not be construed to
limit the commission's rulemaking authority solely for those
purposes.
(b) The provisions of this compact shall be severable
and if any phrase, clause, sentence, or provision of this
compact is held by a court of competent jurisdiction to be
contrary to the constitution of any member state, a state
seeking participation in the compact, or of the United States,
or the applicability thereof to any government, agency,
individual, or circumstance is held to be unconstitutional by
a court of competent jurisdiction, the validity of the
remainder of this compact and the applicability thereof to any
other government, agency, individual, or circumstance shall
not be affected thereby.
(c) Notwithstanding subsection (b), the commission may
deny a state's participation in the compact or, in accordance
with the requirements of Section 12, terminate a member
state's participation in the compact, if it determines that a
constitutional requirement of a member state is a material
departure from the compact. Otherwise, if this compact shall
be held to be contrary to the constitution of any member
state, the compact shall remain in full force and effect as to
the remaining member states and in full force and effect as to
the member state affected as to all severable matters.
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Section 15. Consistent effect and conflict with other
state laws.
(a) Nothing herein shall prevent or inhibit the
enforcement of any other law of a member state that is not
inconsistent with this compact.
(b) Any laws, statutes, regulations, or other legal
requirements in a member state in conflict with this compact
are superseded to the extent of the conflict.
(c) All permissible agreements between the commission
and the member states are binding in accordance with their
terms.
Section 16. This act shall become effective on the
first day of the third month following its passage and
approval by the Governor, or its otherwise becoming law.
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Page 41
________________________________________________
Speaker of the House of Representatives
________________________________________________
President and Presiding Officer of the Senate
House of Representatives
I hereby certify that the within Act originated in and
was passed by the House 25-May-23, as amended.
John Treadwell
Clerk
Senate          06-Jun-23                    Passed
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