Assigned to RAGE & APPROP FOR COMMITTEE ARIZONA STATE SENATE Fifty-Seventh Legislature, First Regular Session REVISED FACT SHEET FOR S.B. 1117 barbering and cosmetology fund; enforcement Purpose Clarifies the authorized use of monies in the Barbering and Cosmetology Fund's (Fund's) separate account. States that the FY 2025 appropriation from the Fund to the Barbering and Cosmetology Board (Board) for enforcement matters is considered ongoing funding in future years. Background The Board enforces sanitary and safety requirements for salons and schools and for the practice of cosmetology, aesthetics, nail and eyelash technology and hairstyling. The duties of the Board include issuing licenses, administering and grading practical and written examinations and prescribing the minimal school curriculum requirements for cosmetologists, aestheticians, nail and eyelash technicians, hairstylists and school instructors (A.R.S. §§ 32-502 and 32-504). The Board is self-funded, depositing 15 percent of all monies from any source in possession of the Board in the state General Fund and the remaining 85 percent in the Fund until July 1, 2028. If a licensee or registrant violates the barbering and cosmetology statutes, the Board may assess the licensee or registrant with the Board's reasonable costs and expenses, including attorney fees, incurred in conducting the investigation and administrative hearing. All monies collected must be deposited into a separate account in the Fund. The Board may only use these monies to defray its expenses in connection with investigation-related training and education, disciplinary investigations and all costs related to administrative hearings. The separate account monies may be spent without legislative appropriation (A.R.S. §§ 32-505 and 35-573). In 2024, the Legislature appropriated $298,250 and four FTE positions from the Fund to the Board for enforcement of the barbering and cosmetology statutes. The appropriation was made non-lapsing (Laws 2024, Ch. 250). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Allows monies from the Fund's separate account to defray expenses in connection with the enforcement of barbering and cosmetology statutes, rather than only in connection with investigation-related training and education, disciplinary investigations and administrative hearings. FACT SHEET – Revised S.B. 1117 Page 2 2. States that the Legislature intends for the FY 2025 appropriation from the Fund to the Board for enforcement matters to be considered ongoing funding in future years. 3. Makes technical changes. 4. Becomes effective on the general effective date. Revisions • Corrects the appropriation year. Prepared by Senate Research February 10, 2025 JT/JRM/ci