HOUSE BILL 24-1111 BY REPRESENTATIVE(S) Martinez and Wilson, Duran, Jodeh, Kipp, Lindsay, Lindstedt, Lukens, Marshall, Mauro, McCormick, Ricks, Snyder, Valdez, McCluskie; also SENATOR(S) Pelton B., Bridges, Buckner, Fields, Hansen, Kolker, Michaelson Jenet, Priola, Smallwood, Van Winkle. C ONCERNING THE ADOPTION OF THE COSMETOLOGY LICENSURE COMPACT , AND, IN CONNECTION THEREWITH, MAKING AN APPROPRIATION. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add part 49 to article 60 of title 24 as follows: PART 49 COSMETOLOGY LICENSURE COMPACT 24-60-4901. Compact approved and ratified. T HE GENERAL ASSEMBLY APPROVES AND RATIFIES , AND THE GOVERNOR SHALL ENTER INTO, A COMPACT ON BEHALF OF THE STATE OF COLORADO AND ANY OF THE UNITED STATES OR OTHER JURISDICTIONS LEGALLY JOINING IN THE COMPACT IN THE FORM SUBSTANTIALLY AS FOLLOWS : NOTE: This bill has been prepared for the signatures of the appropriate legislative officers and the Governor. To determine whether the Governor has signed the bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws. ________ Capital letters or bold & italic numbers indicate new material added to existing law; dashes through words or numbers indicate deletions from existing law and such material is not part of the act. ARTICLE 1 - PURPOSE T HE 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 STATES, WHILE ENSURING THE PROVISION OF SAFE , EFFECTIVE, AND RELIABLE SERVICES TO THE PUBLIC. T HIS COMPACT IS DESIGNED TO ACHIEVE THE FOLLOWING OBJECTIVES , AND THE MEMBER STATES HEREBY RATIFY THE SAME INTENTIONS BY SUBSCRIBING HERETO : A. P ROVIDE OPPORTUNITIES FOR INTERSTATE PRACTICE BY COSMETOLOGISTS WHO MEET UNIFORM REQUIREMENTS FOR MULTISTATE LICENSURE ; B. E NHANCE THE ABILITIES OF MEMBER STATES TO PROTECT PUBLIC HEALTH AND SAFETY AND PREVENT FRAUD AND UNLICENSED ACTIVITY WITHIN THE PROFESSION ; C. E NSURE AND ENCOURAGE COOPERATION BETWEEN MEMBER STATES IN THE LICENSURE AND REGULATION OF THE PRACTICE OF COSMETOLOGY; D. S UPPORT RELOCATING MILITARY MEMBERS AND THEIR SPOUSES ; E. F ACILITATE THE EXCHANGE OF INFORMATION BETWEEN MEMBER STATES RELATED TO THE LICENSURE , INVESTIGATION, AND DISCIPLINE OF THE PRACTICE OF COSMETOLOGY; F. P ROVIDE 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. PAGE 2-HOUSE BILL 24-1111 ARTICLE 2 - DEFINITIONS A S USED IN THIS COMPACT, AND EXCEPT AS OTHERWISE PROVIDED , THE FOLLOWING DEFINITIONS SHALL GOVERN THE TERMS HEREIN : A. "A CTIVE MILITARY MEMBER" MEANS ANY PERSON WITH FULL-TIME DUTY STATUS IN THE ARMED FORCES OF THE UNITED STATES, INCLUDING MEMBERS OF THE NATIONAL GUARD AND RESERVE. B. "A DVERSE ACTION" MEANS 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. C. "A LTERNATIVE PROGRAM" MEANS A NON-DISCIPLINARY MONITORING OR PROSECUTORIAL DIVERSION PROGRAM APPROVED BY A MEMBER STATE'S STATE LICENSING AUTHORITY. D. "A UTHORIZATION TO PRACTICE" MEANS A LEGAL AUTHORIZATION ASSOCIATED WITH A MULTISTATE LICENSE PERMITTING THE PRACTICE OF COSMETOLOGY IN THAT REMOTE STATE, WHICH IS SUBJECT TO THE ENFORCEMENT JURISDICTION OF THE STATE LICENSING AUTHORITY IN THAT REMOTE STATE. E. "B ACKGROUND CHECK" MEANS THE SUBMISSION OF INFORMATION FOR AN APPLICANT FOR THE PURPOSE OF OBTAINING THAT APPLICANT 'S CRIMINAL HISTORY RECORD INFORMATION , AS FURTHER DEFINED IN 28 CFR 20.3 (d), FROM THE FEDERAL BUREAU OF INVESTIGATION AND THE AGENCY RESPONSIBLE FOR RETAINING STATE CRIMINAL OR DISCIPLINARY HISTORY IN THE APPLICANT 'S HOME STATE. F. "C HARTER MEMBER STATE" MEANS MEMBER STATES THAT HAVE ENACTED LEGISLATION TO ADOPT THIS COMPACT WHERE SUCH PAGE 3-HOUSE BILL 24-1111 LEGISLATION PREDATES THE EFFECTIVE DATE OF THIS COMPACT AS DEFINED IN ARTICLE 13. G. "C OMMISSION" MEANS THE GOVERNMENT AGENCY IN WHICH MEMBERSHIP CONSISTS OF ALL STATES THAT HAVE ENACTED THIS COMPACT, WHICH IS KNOWN AS THE COSMETOLOGY LICENSURE COMPACT COMMISSION, AS DEFINED IN ARTICLE 9, AND WHICH SHALL OPERATE AS AN INSTRUMENTALITY OF THE MEMBER STATES. H. "C OSMETOLOGIST" MEANS AN INDIVIDUAL LICENSED IN THEIR HOME STATE TO PRACTICE COSMETOLOGY. I. "C OSMETOLOGY", "COSMETOLOGY SERVICES", AND THE "PRACTICE OF COSMETOLOGY" MEAN THE CARE AND SERVICES PROVIDED BY A COSMETOLOGIST AS SET FORTH IN THE MEMBER STATE'S STATUTES AND REGULATIONS IN THE STATE WHERE THE SERVICES ARE BEING PROVIDED . J. "C URRENT SIGNIFICANT INVESTIGATIVE INFORMATION" MEANS: 1. I NVESTIGATIVE 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; OR 2. 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 . K. "D ATA SYSTEM" MEANS A REPOSITORY OF INFORMATION ABOUT LICENSEES, INCLUDING, BUT NOT LIMITED TO, LICENSE STATUS, I NVESTIGATIVE INFORMATION, AND ADVERSE ACTIONS. L. "D ISQUALIFYING EVENT" MEANS ANY EVENT THAT DISQUALIFIES AN INDIVIDUAL FROM HOLDING A MULTISTATE LICENSE UNDER THIS PAGE 4-HOUSE BILL 24-1111 COMPACT, WHICH THE COMMISSION MAY BY RULE OR ORDER SPECIFY . M. "E NCUMBERED LICENSE" MEANS A LICENSE IN WHICH AN ADVERSE ACTION RESTRICTS THE PRACTICE OF COSMETOLOGY BY A LICENSEE, OR WHERE SAID ADVERSE ACTION HAS BEEN REPORTED TO THE COMMISSION. N. "E NCUMBRANCE" MEANS A REVOCATION OR SUSPENSION OF, OR ANY LIMITATION ON , THE FULL AND UNRESTRICTED PRACTICE OF COSMETOLOGY BY A STATE LICENSING AUTHORITY. O. "E XECUTIVE COMMITTEE" MEANS A GROUP OF DELEGATES ELECTED OR APPOINTED TO ACT ON BEHALF OF , AND WITHIN THE POWERS GRANTED TO THEM BY , THE COMMISSION. P. "H OME STATE" MEANS 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. Q. "I NVESTIGATIVE INFORMATION" MEANS INFORMATION, RECORDS, OR DOCUMENTS RECEIVED OR GENERATED BY A STATE LICENSING AUTHORITY PURSUANT TO AN INVESTIGATION OR OTHER INQUIRY . R. "J URISPRUDENCE REQUIREMENT" MEANS THE ASSESSMENT OF AN INDIVIDUAL 'S KNOWLEDGE OF THE LAWS AND RULES GOVERNING THE PRACTICE OF COSMETOLOGY IN A STATE. S. "L ICENSEE" MEANS AN INDIVIDUAL WHO CURRENTLY HOLDS A LICENSE FROM A MEMBER STATE TO PRACTICE AS A COSMETOLOGIST. T. "M EMBER STATE" MEANS ANY STATE THAT HAS ADOPTED THIS COMPACT. U. "M ULTISTATE LICENSE" MEANS 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 AUTHORIZATIONS TO PRACTICE COSMETOLOGY IN ALL REMOTE PAGE 5-HOUSE BILL 24-1111 STATES PURSUANT TO THIS COMPACT. V. "R EMOTE STATE" MEANS ANY MEMBER STATE, OTHER THAN THE LICENSEE'S HOME STATE. W. "R ULE" MEANS ANY RULE OR REGULATION PROMULGATED BY THE COMMISSION UNDER THIS COMPACT WHICH HAS THE FORCE OF LAW . X. "S INGLE-STATE LICENSE" MEANS 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. Y. "S TATE" MEANS A STATE, TERRITORY, OR POSSESSION OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA. Z. "S TATE LICENSING AUTHORITY" MEANS A MEMBER STATE'S REGULATORY BODY RESPONSIBLE FOR ISSUING COSMETOLOGY LICENSES OR OTHERWISE OVERSEEING THE PRACTICE OF COSMETOLOGY IN THAT STATE. ARTICLE 3 - MEMBER STATE REQUIREMENTS A. T O BE ELIGIBLE TO JOIN THIS COMPACT AND TO MAINTAIN ELIGIBILITY AS A MEMBER STATE, A STATE MUST: 1. L ICENSE AND REGULATE COSMETOLOGY; 2. H AVE A MECHANISM OR ENTITY IN PLACE TO RECEIVE AND INVESTIGATE COMPLAINTS ABOUT LICENSEES PRACTICING IN THAT STATE; 3. R EQUIRE 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. R EQUIRE THAT LICENSEES SATISFY EDUCATIONAL OR TRAINING REQUIREMENTS IN COSMETOLOGY PRIOR TO BEING LICENSED TO PROVIDE COSMETOLOGY SERVICES TO THE PAGE 6-HOUSE BILL 24-1111 PUBLIC IN THAT STATE; 5. I MPLEMENT PROCEDURES FOR CONSIDERING ONE OR MORE OF THE FOLLOWING CATEGORIES OF INFORMATION FROM APPLICANTS FOR LICENSURE : CRIMINAL HISTORY , DISCIPLINARY HISTORY, OR BACKGROUND CHECK. SUCH PROCEDURES MAY INCLUDE THE SUBMISSION OF INFORMATION BY APPLICANTS FOR THE PURPOSE OF OBTAINING AN APPLICANT 'S BACKGROUND CHECK AS DEFINED HEREIN; 6. P ARTICIPATE IN THE DATA SYSTEM, INCLUDING THROUGH THE USE OF UNIQUE IDENTIFYING NUMBERS ; 7. S HARE INFORMATION RELATED TO ADVERSE ACTIONS WITH THE COMMISSION AND OTHER MEMBER STATES, BOTH THROUGH THE DATA SYSTEM AND OTHERWISE; 8. N OTIFY 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. C OMPLY WITH SUCH RULES AS MAY BE ENACTED BY THE COMMISSION TO ADMINISTER THE COMPACT; AND 10. ACCEPT LICENSEES FROM OTHER MEMBER STATES AS ESTABLISHED HEREIN . B. M EMBER STATES MAY CHARGE A FEE FOR GRANTING A LICENSE TO PRACTICE COSMETOLOGY. C. I NDIVIDUALS NOT RESIDING IN A MEMBER STATE MAY 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 SHALL NOT BE RECOGNIZED AS GRANTING A MULTISTATE LICENSE TO PROVIDE SERVICES IN ANY OTHER MEMBER STATE. PAGE 7-HOUSE BILL 24-1111 D. NOTHING IN THIS COMPACT AFFECTS 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. A T 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 . ARTICLE 4 - MULTISTATE LICENSE A. T O BE ELIGIBLE TO APPLY TO THEIR 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 THEIR HOME STATE. B. U PON 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. I F 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 THE APPLICATION SHALL , WITHIN A REASONABLE TIME , GRANT A MULTISTATE LICENSE TO THAT APPLICANT , AND INFORM ALL MEMBER STATES OF THE GRANT OF SAID 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 PAGE 8-HOUSE BILL 24-1111 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. T O MAINTAIN A MULTISTATE LICENSE UNDER THIS COMPACT, A LICENSEE MUST: 1. A GREE 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. P AY ALL REQUIRED FEES RELATED TO THE APPLICATION AND PROCESS , AND ANY OTHER FEES WHICH THE COMMISSION MAY BY RULE REQUIRE; AND 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. H. T HE PRACTICE OF COSMETOLOGY UNDER A MULTISTATE LICENSE GRANTED PURSUANT TO THIS COMPACT WILL 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. ARTICLE 5 - REISSUANCE OF A MULTISTATE LICENSE BY A NEW HOME STATE A. A LICENSEE MAY HOLD A MULTISTATE LICENSE, ISSUED BY THEIR HOME STATE, IN ONLY ONE MEMBER STATE AT ANY GIVEN TIME. B. I F A LICENSEE CHANGES THEIR HOME STATE BY MOVING BETWEEN TWO MEMBER STATES: PAGE 9-HOUSE BILL 24-1111 1. THE LICENSEE SHALL IMMEDIATELY APPLY FOR THE REISSUANCE OF THEIR MULTISTATE LICENSE IN THEIR 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. U PON 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 WILL BE DEACTIVATED AND ALL MEMBER STATES NOTIFIED IN ACCORDANCE WITH THE APPLICABLE RULES ADOPTED BY THE COMMISSION. 3. I F 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 REQUIREMENTS OF THE NEW HOME STATE. 4. N OTWITHSTANDING 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 IS SUBJECT TO THE NEW HOME STATE REQUIREMENTS FOR THE ISSUANCE OF A SINGLE-STATE LICENSE IN THAT STATE. C. I F A LICENSEE CHANGES THEIR 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 IS SUBJECT TO THE STATE REQUIREMENTS FOR THE ISSUANCE OF A SINGLE-STATE LICENSE IN THE NEW HOME STATE. D. N OTHING IN THIS COMPACT INTERFERES 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. N OTHING IN THIS COMPACT INTERFERES WITH THE REQUIREMENTS PAGE 10-HOUSE BILL 24-1111 ESTABLISHED BY A MEMBER STATE FOR THE ISSUANCE OF A SINGLE-STATE LICENSE. ARTICLE 6 - AUTHORITY OF THE COMPACT COMMISSION AND MEMBER STATE LICENSING AUTHORITIES A. N OTHING IN THIS COMPACT, NOR ANY RULE OR REGULATION 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 LAWS, REGULATIONS, OR OTHER RULES ARE NOT INCONSISTENT WITH THE PROVISIONS OF THIS COMPACT. B. I NSOFAR 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 THE PROVISIONS OF THIS COMPACT. C. D ISCIPLINE 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 SUCH ADVERSE ACTION TO THE OTHER MEMBER STATES THROUGH THE DATA SYSTEM IN ADDITION TO ANY OTHER METHODS THE COMMISSION MAY BY RULE REQUIRE. ARTICLE 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 PAGE 11-HOUSE BILL 24-1111 A REMOTE STATE. C. I N ADDITION TO THE POWERS CONFERRED BY STATE LAW, EACH REMOTE STATE'S STATE LICENSING AUTHORITY SHALL HAVE THE POWER TO : 1. T AKE ADVERSE ACTION AGAINST A LICENSEE'S AUTHORIZATION TO PRACTICE COSMETOLOGY THROUGH THE MULTISTATE LICENSE IN THAT MEMBER STATE, PROVIDED THAT : a. O NLY THE LICENSEE'S HOME STATE SHALL HAVE THE POWER 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 SUCH 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. I SSUE CEASE AND DESIST ORDERS OR IMPOSE AN ENCUMBRANCE ON A LICENSEE'S AUTHORIZATION TO PRACTICE WITHIN THAT MEMBER STATE. 3. C OMPLETE ANY PENDING INVESTIGATIONS OF A LICENSEE WHO CHANGES THEIR PRIMARY STATE OF RESIDENCE DURING THE COURSE OF SUCH AN INVESTIGATION . THE STATE LICENSING AUTHORITY SHALL ALSO BE EMPOWERED TO REPORT THE RESULTS OF SUCH AN INVESTIGATION TO THE COMMISSION THROUGH THE DATA SYSTEM AS DESCRIBED HEREIN . 4. I SSUE SUBPOENAS FOR BOTH HEARINGS AND INVESTIGATIONS THAT REQUIRE THE ATTENDANCE AND TESTIMONY OF WITNESSES , AS WELL AS THE PRODUCTION OF EVIDENCE . PAGE 12-HOUSE BILL 24-1111 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 IT . THE ISSUING STATE LICENSING AUTHORITY SHALL PAY ANY WITNESS FEES , TRAVEL EXPENSES, MILEAGE, AND OTHER FEES REQUIRED BY THE SERVICE STATUTES OF THE STATE IN WHICH THE WITNESSES OR EVIDENCE ARE LOCATED . 5. I F 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. T AKE 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 (S) OF A COSMETOLOGIST WHO CHANGES THEIR PRIMARY STATE OF RESIDENCE DURING THE COURSE OF THE INVESTIGATION (S). THE HOME STATE SHALL ALSO HAVE THE AUTHORITY TO TAKE APPROPRIATE ACTION (S) AND SHALL PROMPTLY REPORT THE CONCLUSIONS OF THE INVESTIGATIONS TO THE DATA SYSTEM. E. I F 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. N OTHING IN THIS COMPACT OVERRIDES A MEMBER STATE'S PAGE 13-HOUSE BILL 24-1111 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 LICENSEE'S PARTICIPATION IN ANY ALTERNATIVE PROGRAM. G. J OINT 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. M EMBER STATES SHALL SHARE ANY INVESTIGATIVE , LITIGATION, OR COMPLIANCE MATERIALS IN FURTHERANCE OF ANY JOINT OR INDIVIDUAL INVESTIGATION INITIATED UNDER THE COMPACT. ARTICLE 8 - ACTIVE MILITARY MEMBERS AND THEIR SPOUSES A CTIVE 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 THEIR HOME STATE DESIGNATION DURING ANY PERIOD OF SERVICE WHEN THAT INDIVIDUAL OR THEIR SPOUSE IS ON ACTIVE DUTY ASSIGNMENT . ARTICLE 9 - ESTABLISHMENT AND OPERATION OF THE COSMETOLOGY LICENSURE COMPACT COMMISSION A. T HE COMPACT MEMBER STATES HEREBY CREATE AND ESTABLISH A JOINT GOVERNMENT AGENCY , THE MEMBERSHIP OF WHICH CONSISTS OF ALL MEMBER STATES THAT HAVE ENACTED THE COMPACT, KNOWN AS THE COSMETOLOGY LICENSURE COMPACT COMMISSION. T HE 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 ARTICLE 13. PAGE 14-HOUSE BILL 24-1111 B. M EMBERSHIP, VOTING, AND MEETINGS 1. EACH MEMBER STATE SHALL HAVE AND BE LIMITED TO ONE (1) DELEGATE SELECTED BY THAT MEMBER STATE'S STATE LICENSING AUTHORITY. 2. T HE DELEGATE SHALL BE AN ADMINISTRATOR OF THE STATE LICENSING AUTHORITY OF THE MEMBER STATE OR THEIR DESIGNEE . 3. T HE COMMISSION SHALL BY RULE OR BYLAW ESTABLISH A TERM OF OFFICE FOR DELEGATES AND MAY BY RULE OR BYLAW ESTABLISH TERM LIMITS . 4. T HE 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. E ACH DELEGATE SHALL BE ENTITLED TO ONE VOTE ON ALL MATTERS THAT ARE VOTED ON BY THE COMMISSION. 7. T HE 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. T HE COMMISSION SHALL HAVE THE FOLLOWING POWERS : 1. E STABLISH THE FISCAL YEAR OF THE COMMISSION; 2. E STABLISH CODE OF CONDUCT AND CONFLICT OF INTEREST POLICIES ; 3. A DOPT RULES AND BYLAWS; 4. M AINTAIN ITS FINANCIAL RECORDS IN ACCORDANCE WITH THE PAGE 15-HOUSE BILL 24-1111 BYLAWS; 5. M EET AND TAKE SUCH ACTIONS AS ARE CONSISTENT WITH THE PROVISIONS OF THIS COMPACT, THE COMMISSION'S RULES, AND THE BYLAWS; 6. I NITIATE 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 IS NOT AFFECTED ; 7. M AINTAIN 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. P URCHASE AND MAINTAIN INSURANCE AND BONDS ; 9. B ORROW, ACCEPT, OR CONTRACT FOR SERVICES OF PERSONNEL , INCLUDING, BUT NOT LIMITED TO, EMPLOYEES OF A MEMBER STATE; 10. C ONDUCT AN ANNUAL FINANCIAL REVIEW ; 11. H IRE EMPLOYEES, ELECT OR APPOINT OFFICERS , FIX COMPENSATION , DEFINE DUTIES, GRANT SUCH 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. A S 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 PAGE 16-HOUSE BILL 24-1111 JURISPRUDENCE REQUIREMENT IF THE MEMBER STATE IMPOSES SUCH A REQUIREMENT FOR THE GRANT OF A MULTISTATE LICENSE. 13. A SSESS AND COLLECT FEES; 14. A CCEPT 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 AT ALL TIMES THE COMMISSION SHALL AVOID ANY APPEARANCE OF IMPROPRIETY OR CONFLICT OF INTEREST ; 15. L EASE, PURCHASE, RETAIN, OWN, HOLD, IMPROVE, OR USE ANY PROPERTY , REAL, PERSONAL, OR MIXED, OR ANY UNDIVIDED INTEREST THEREIN ; 16. S ELL, CONVEY, MORTGAGE, PLEDGE, LEASE, EXCHANGE, ABANDON, OR OTHERWISE DISPOSE OF ANY PROPERTY , REAL, PERSONAL, OR MIXED; 17. E STABLISH A BUDGET AND MAKE EXPENDITURES ; 18. B ORROW MONEY; 19. A PPOINT COMMITTEES, INCLUDING STANDING COMMITTEES , COMPOSED OF MEMBERS , STATE REGULATORS , STATE LEGISLATORS OR THEIR REPRESENTATIVES , CONSUMER REPRESENTATIVES , AND SUCH OTHER INTERESTED PERSONS AS MAY BE DESIGNATED IN THIS COMPACT AND THE BYLAWS ; 20. P ROVIDE AND RECEIVE INFORMATION FROM , AND COOPERATE WITH , LAW ENFORCEMENT AGENCIES ; 21. E LECT A CHAIR, VICE CHAIR, SECRETARY, TREASURER, AND SUCH OTHER OFFICERS OF THE COMMISSION AS PROVIDED IN THE COMMISSION'S BYLAWS; 22. E STABLISH AND ELECT AN EXECUTIVE COMMITTEE, INCLUDING A CHAIR AND A VICE CHAIR; PAGE 17-HOUSE BILL 24-1111 23. ADOPT AND PROVIDE TO THE MEMBER STATES AN ANNUAL REPORT ; 24. D ETERMINE 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; AND 25. PERFORM SUCH OTHER FUNCTIONS AS MAY BE NECESSARY OR APPROPRIATE TO ACHIEVE THE PURPOSES OF THIS COMPACT. D. T HE 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 : a. O VERSEEING THE DAY-TO-DAY ACTIVITIES OF THE ADMINISTRATION OF THE COMPACT INCLUDING COMPLIANCE WITH THE PROVISIONS OF THE COMPACT, THE COMMISSION'S RULES AND BYLAWS, AND OTHER SUCH DUTIES AS DEEMED NECESSARY ; b. R ECOMMENDING 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. E NSURING COMPACT ADMINISTRATION SERVICES ARE APPROPRIATELY PROVIDED , INCLUDING BY CONTRACT; d. P REPARING AND RECOMMENDING THE BUDGET ; e. M AINTAINING FINANCIAL RECORDS ON BEHALF OF THE COMMISSION; f. M ONITORING COMPACT COMPLIANCE OF MEMBER PAGE 18-HOUSE BILL 24-1111 STATES AND PROVIDING COMPLIANCE REPORTS TO THE COMMISSION; g. E STABLISHING ADDITIONAL COMMITTEES AS NECESSARY ; h. E XERCISING THE POWERS AND DUTIES OF THE COMMISSION 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 ; AND i. OTHER DUTIES AS PROVIDED IN THE RULES OR BYLAWS OF THE COMMISSION. 2. T HE EXECUTIVE COMMITTEE SHALL BE COMPOSED OF UP TO SEVEN VOTING MEMBERS : a. T HE 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; AND 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. T HE 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 ARTICLE. PAGE 19-HOUSE BILL 24-1111 3. THE COMMISSION MAY REMOVE ANY MEMBER OF THE EXECUTIVE COMMITTEE AS PROVIDED IN THE COMMISSION'S BYLAWS . 4. T HE EXECUTIVE COMMITTEE SHALL MEET AT LEAST ANNUALLY . a. A NNUAL EXECUTIVE COMMITTEE MEETINGS, AS WELL AS ANY EXECUTIVE COMMITTEE MEETING AT WHICH IT DOES NOT TAKE OR INTEND TO TAKE FORMAL ACTION ON A MATTER FOR 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 ARTICLE 9.F.4. b. T HE EXECUTIVE COMMITTEE SHALL GIVE FIVE BUSINESS DAYS ' ADVANCE NOTICE OF ITS PUBLIC MEETINGS , POSTED ON ITS WEBSITE AND AS DETERMINED BY THE EXECUTIVE COMMITTEE, TO PROVIDE NOTICE TO PERSONS WITH AN INTEREST IN THE PUBLIC MATTERS THE EXECUTIVE COMMITTEE INTENDS TO ADDRESS AT THOSE MEETINGS . 5. T HE EXECUTIVE COMMITTEE MAY HOLD AN EMERGENCY MEETING WHEN ACTING FOR THE COMMISSION TO: a. M EET AN IMMINENT THREAT TO PUBLIC HEALTH , SAFETY, OR WELFARE; b. P REVENT A LOSS OF COMMISSION OR MEMBER STATE FUNDS ; OR c. PROTECT PUBLIC HEALTH AND SAFETY . E. T HE COMMISSION SHALL ADOPT AND PROVIDE TO THE MEMBER STATES AN ANNUAL REPORT. F. M EETINGS OF THE COMMISSION PAGE 20-HOUSE BILL 24-1111 1. ALL MEETINGS OF THE COMMISSION THAT ARE NOT CLOSED PURSUANT TO ARTICLE 9.F.4 SHALL BE OPEN TO THE PUBLIC. N OTICE OF PUBLIC MEETINGS SHALL BE POSTED ON THE COMMISSION'S WEBSITE AT LEAST THIRTY (30) DAYS PRIOR TO THE PUBLIC MEETING . 2. N OTWITHSTANDING ARTICLE 9.F.1, THE COMMISSION MAY CONVENE AN EMERGENCY PUBLIC MEETING BY PROVIDING AT LEAST TWENTY -FOUR (24) HOURS' PRIOR NOTICE ON THE COMMISSION'S WEBSITE, AND ANY OTHER MEANS AS PROVIDED IN THE COMMISSION'S RULES, FOR ANY OF THE REASONS IT MAY DISPENSE WITH NOTICE OF PROPOSED RULEMAKING UNDER ARTICLE 11.L. THE COMMISSION'S LEGAL COUNSEL SHALL CERTIFY THAT ONE OF THE REASONS JUSTIFYING AN EMERGENCY PUBLIC MEETING HAS BEEN MET . 3. N OTICE 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. T HE COMMISSION MAY CONVENE IN A CLOSED , NON-PUBLIC MEETING FOR THE COMMISSION TO DISCUSS: a. N ON-COMPLIANCE OF A MEMBER STATE WITH ITS OBLIGATIONS UNDER THE COMPACT; b. T HE EMPLOYMENT, COMPENSATION, DISCIPLINE, OR OTHER MATTERS , PRACTICES, OR PROCEDURES RELATED TO SPECIFIC EMPLOYEES OR OTHER MATTERS RELATED TO THE COMMISSION'S INTERNAL PERSONNEL PRACTICES OR PROCEDURES ; c. C URRENT OR THREATENED DISCIPLINE OF A LICENSEE BY THE COMMISSION OR BY A MEMBER STATE'S LICENSING AUTHORITY; d. C URRENT, THREATENED , OR REASONABLY PAGE 21-HOUSE BILL 24-1111 ANTICIPATED LITIGATION; e. N EGOTIATION OF CONTRACTS FOR THE PURCHASE , LEASE, OR SALE OF GOODS, SERVICES, OR REAL ESTATE; f. A CCUSING ANY PERSON OF A CRIME OR FORMALLY CENSURING ANY PERSON ; g. T RADE SECRETS OR COMMERCIAL OR FINANCIAL INFORMATION THAT IS PRIVILEGED OR CONFIDENTIAL ; h. I NFORMATION OF A PERSONAL NATURE WHERE DISCLOSURE WOULD CONSTITUTE A CLEARLY UNWARRANTED INVASION OF PERSONAL PRIVACY ; i. I NVESTIGATIVE RECORDS COMPILED FOR LAW ENFORCEMENT PURPOSES ; j. I NFORMATION 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. L EGAL ADVICE; l. M ATTERS SPECIFICALLY EXEMPTED FROM DISCLOSURE TO THE PUBLIC BY FEDERAL OR MEMBER STATE LAW; OR m. OTHER MATTERS AS PROMULGATED BY THE COMMISSION BY RULE. 5. I F 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 SUCH REFERENCE SHALL BE RECORDED IN THE MINUTES . PAGE 22-HOUSE BILL 24-1111 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 SUCH 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. F INANCING OF THE COMMISSION 1. THE COMMISSION SHALL PAY, OR PROVIDE FOR THE PAYMENT OF , THE REASONABLE EXPENSES OF ITS ESTABLISHMENT , ORGANIZATION, AND ONGOING ACTIVITIES. 2. T HE COMMISSION MAY ACCEPT ANY AND ALL APPROPRIATE SOURCES OF REVENUE , DONATIONS, AND GRANTS OF MONEY, EQUIPMENT, SUPPLIES, MATERIALS, AND SERVICES. 3. T HE 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 MUST 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 PROMULGATE BY RULE. 4. T HE 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. T HE COMMISSION SHALL KEEP ACCURATE ACCOUNTS OF ALL PAGE 23-HOUSE BILL 24-1111 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. H. Q UALIFIED IMMUNITY, DEFENSE, AND INDEMNIFICATION 1. THE MEMBERS, OFFICERS, EXECUTIVE DIRECTOR, EMPLOYEES, AND REPRESENTATIVES OF THE COMMISSION ARE 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 PERSON 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 PARAGRAPH H.1. SHALL BE CONSTRUED TO PROTECT ANY SUCH PERSON FROM SUIT OR LIABILITY FOR ANY DAMAGE , LOSS, INJURY, OR LIABILITY CAUSED BY THE INTENTIONAL OR WILLFUL OR WANTON MISCONDUCT OF THAT PERSON . THE PROCUREMENT OF INSURANCE OF ANY TYPE BY THE COMMISSION DOES NOT IN ANY WAY COMPROMISE OR LIMIT THE IMMUNITY GRANTED HEREUNDER . 2. T HE 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 PERSON AGAINST WHOM THE CLAIM IS MADE HAD A REASONABLE PAGE 24-HOUSE BILL 24-1111 BASIS FOR BELIEVING OCCURRED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT , DUTIES, OR RESPONSIBILITIES; PROVIDED THAT NOTHING HEREIN SHALL BE CONSTRUED TO PROHIBIT THAT PERSON FROM RETAINING THEIR OWN COUNSEL AT THEIR OWN EXPENSE ; AND PROVIDED FURTHER, THAT THE ACTUAL OR ALLEGED ACT , ERROR, OR OMISSION DID NOT RESULT FROM THAT PERSON 'S INTENTIONAL OR WILLFUL OR WANTON MISCONDUCT . 3. T HE 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 PERSON ARISING OUT OF ANY ACTUAL OR ALLEGED ACT , ERROR, OR OMISSION THAT OCCURRED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT , DUTIES, OR RESPONSIBILITIES, OR THAT SUCH PERSON 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 PERSON . 4. N OTHING 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. N OTHING 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, C LAYTON ACT, OR ANY OTHER STATE OR FEDERAL ANTITRUST OR ANTICOMPETITIVE LAW OR REGULATION . 6. N OTHING IN THIS COMPACT SHALL BE CONSTRUED TO BE A WAIVER OF SOVEREIGN IMMUNITY BY THE MEMBER STATES OR BY THE COMMISSION. ARTICLE 10 - DATA SYSTEM PAGE 25-HOUSE BILL 24-1111 A. THE COMMISSION SHALL PROVIDE FOR THE DEVELOPMENT , MAINTENANCE, OPERATION, AND UTILIZATION OF A COORDINATED DATABASE AND REPORTING SYSTEM . B. T HE COMMISSION SHALL ASSIGN EACH APPLICANT FOR A MULTISTATE LICENSE A UNIQUE IDENTIFIER, AS DETERMINED BY THE RULES OF THE COMMISSION. C. N OTWITHSTANDING 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. I DENTIFYING INFORMATION; 2. L ICENSURE DATA; 3. A DVERSE ACTIONS AGAINST A LICENSE AND INFORMATION RELATED THERETO ; 4. N ON-CONFIDENTIAL INFORMATION RELATED TO ALTERNATIVE PROGRAM PARTICIPATION, THE BEGINNING AND ENDING DATES OF SUCH PARTICIPATION , AND OTHER INFORMATION RELATED TO SUCH PARTICIPATION ; 5. A NY DENIAL OF APPLICATION FOR LICENSURE , AND THE REASON (S) FOR SUCH DENIAL (EXCLUDING THE REPORTING OF ANY CRIMINAL HISTORY RECORD INFORMATION WHERE PROHIBITED BY LAW ); 6. T HE EXISTENCE OF INVESTIGATIVE INFORMATION; 7. T HE EXISTENCE OF CURRENT SIGNIFICANT INVESTIGATIVE INFORMATION; AND 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. PAGE 26-HOUSE BILL 24-1111 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 , 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. T HE EXISTENCE OF CURRENT SIGNIFICANT INVESTIGATIVE INFORMATION AND THE EXISTENCE OF INVESTIGATIVE INFORMATION PERTAINING TO A LICENSEE IN ANY MEMBER STATE WILL ONLY BE AVAILABLE TO OTHER MEMBER STATES. F. I T IS THE RESPONSIBILITY OF THE MEMBER STATES TO MONITOR THE DATABASE TO DETERMINE WHETHER ADVERSE ACTION HAS BEEN TAKEN AGAINST SUCH A LICENSEE OR LICENSE APPLICANT. ADVERSE ACTION INFORMATION PERTAINING TO A LICENSEE OR LICENSE APPLICANT IN ANY MEMBER STATE WILL BE AVAILABLE TO ANY OTHER MEMBER STATE. G. M EMBER 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. A NY 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. ARTICLE 11 - RULEMAKING A. T HE COMMISSION SHALL PROMULGATE REASONABLE RULES IN ORDER TO EFFECTIVELY AND EFFICIENTLY IMPLEMENT AND ADMINISTER THE PURPOSES AND PROVISIONS OF THE COMPACT. A RULE IS INVALID AND HAS NO FORCE OR EFFECT ONL Y 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 PAGE 27-HOUSE BILL 24-1111 APPLICABLE STANDARD OF REVIEW . B. T HE RULES OF THE COMMISSION HAVE THE FORCE OF LAW IN EACH MEMBER STATE, PROVIDED, HOWEVER, THAT 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 ARE INEFFECTIVE IN THAT STATE TO THE EXTENT OF THE CONFLICT. C. T HE COMMISSION SHALL EXERCISE ITS RULEMAKING POWERS PURSUANT TO THE CRITERIA SET FORTH IN THIS ARTICLE AND THE RULES ADOPTED BECOME BINDING AS OF THE DATE SPECIFIED BY THE COMMISSION FOR EACH RULE. D. I F 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 (4) YEARS OF THE DATE OF ADOPTION OF THE RULE, THEN SUCH RULE HAS NO FURTHER FORCE AND EFFECT IN ANY MEMBER STATE OR TO ANY STATE APPLYING TO PARTICIPATE IN THE COMPACT. E. R ULES SHALL BE ADOPTED AT A REGULAR OR SPECIAL M EETING OF THE COMMISSION. F. P RIOR TO ADOPTION OF A PROPOSED RULE, THE COMMISSION SHALL HOLD A PUBLIC HEARING AND ALLOW PERSONS TO PROVIDE ORAL AND WRITTEN COMMENTS , DATA, FACTS, OPINIONS, AND ARGUMENTS. G. P RIOR TO ADOPTION OF A PROPOSED RULE BY THE COMMISSION, AND AT LEAST THIRTY (30) DAYS IN ADVANCE OF THE MEETING AT WHICH THE COMMISSION WILL HOLD A PUBLIC HEARING ON THE PROPOSED RULE, THE COMMISSION SHALL PROVIDE A NOTICE OF PROPOSED RULEMAKING : 1. O N THE WEBSITE OF THE COMMISSION OR OTHER PUBLICLY ACCESSIBLE PLATFORM ; 2. T O PERSONS WHO HAVE REQUESTED NOTICE OF THE PAGE 28-HOUSE BILL 24-1111 COMMISSION'S NOTICES OF PROPOSED RULEMAKING ; AND 3. IN SUCH OTHER WAY(S) AS THE COMMISSION MAY BY RULE SPECIFY . H. T HE NOTICE OF PROPOSED RULEMAKING SHALL INCLUDE : 1. T HE 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. I F THE HEARING IS HELD VIA TELECOMMUNICATION , VIDEO CONFERENCE , OR OTHER ELECTRONIC MEANS , THE MECHANISM FOR ACCESS TO THE HEARING IN THE NOTICE OF PROPOSED RULEMAKING ; 3. T HE TEXT OF THE PROPOSED RULE AND THE REASON THEREFOR ; 4. A REQUEST FOR COMMENTS ON THE PROPOSED RULE FROM ANY INTERESTED PERSON ; AND 5. THE MANNER IN WHICH INTERESTED PERSONS MAY SUBMIT WRITTEN COMMENTS . I. A LL HEARINGS WILL 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. N OTHING IN THIS ARTICLE 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 ARTICLE. K. T HE COMMISSION SHALL, BY MAJORITY VOTE OF ALL MEMBERS, TAKE FINAL ACTION ON THE PROPOSED RULE BASED ON THE RULEMAKING RECORD AND THE FULL TEXT OF THE RULE. PAGE 29-HOUSE BILL 24-1111 1. THE COMMISSION MAY ADOPT CHANGES TO THE PROPOSED RULE PROVIDED THE CHANGES DO NOT ENLARGE THE ORIGINAL PURPOSE OF THE PROPOSED RULE. 2. T HE 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. T HE COMMISSION SHALL DETERMINE A REASONABLE EFFECTIVE DATE FOR THE RULE. EXCEPT FOR AN EMERGENCY AS PROVIDED IN ARTICLE 11.L, THE EFFECTIVE DATE OF THE RULE SHALL BE NO SOONER THAN FORTY -FIVE (45) DAYS AFTER THE COMMISSION ISSUING THE NOTICE THAT IT ADOPTED OR AMENDED THE RULE. L. U PON DETERMINATION THAT AN EMERGENCY EXISTS , THE COMMISSION MAY CONSIDER AND ADOPT AN EMERGENCY RULE WITH FIVE (5) DAYS' NOTICE, WITH OPPORTUNITY TO COMMENT , PROVIDED THAT THE USUAL RULEMAKING PROCEDURES PROVIDED IN THE COMPACT AND IN THIS ARTICLE SHALL BE RETROACTIVELY APPLIED TO THE RULE AS SOON AS REASONABLY POSSIBLE , IN NO EVENT LATER THAN NINETY (90) DAYS AFTER THE EFFECTIVE DATE OF THE RULE. F OR THE PURPOSES OF THIS PROVISION, AN EMERGENCY RULE IS ONE THAT MUST BE ADOPTED IMMEDIATELY TO : 1. M EET AN IMMINENT THREAT TO PUBLIC HEALTH , SAFETY, OR WELFARE ; 2. P REVENT A LOSS OF COMMISSION OR MEMBER STATE FUNDS; 3. M EET A DEADLINE FOR THE PROMULGATION OF A RULE THAT IS ESTABLISHED BY FEDERAL LAW OR RULE ; OR 4. PROTECT PUBLIC HEALTH AND SAFETY . M. T HE COMMISSION OR AN AUTHORIZED COMMITTEE OF THE COMMISSION MAY DIRECT REVISIONS TO A PREVIOUSLY ADOPTED RULE FOR PURPOSES OF CORRECTING TYPOGRAPHICAL ERRORS , PAGE 30-HOUSE BILL 24-1111 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 IS SUBJECT TO CHALLENGE BY ANY PERSON FOR A PERIOD OF THIRTY (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 WILL TAKE EFFECT WITHOUT FURTHER ACTION . IF THE REVISION IS CHALLENGED, THE REVISION MAY NOT TAKE EFFECT WITHOUT THE APPROVAL OF THE COMMISSION. N. N O MEMBER STATE'S RULEMAKING REQUIREMENTS APPLY UNDER THIS COMPACT. ARTICLE 12 - OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT A. O VERSIGHT 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 THE COMPACT. 2. V ENUE 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 AFFECTS OR LIMITS THE SELECTION OR PROPRIETY OF VENUE IN ANY ACTION AGAINST A LICENSEE FOR PROFESSIONAL MALPRACTICE , MISCONDUCT, OR ANY SUCH SIMILAR MATTER. 3. T HE COMMISSION SHALL BE ENTITLED TO RECEIVE SERVICE OF PROCESS IN ANY PROCEEDING REGARDING THE ENFORCEMENT PAGE 31-HOUSE BILL 24-1111 OR INTERPRETATION OF THE COMPACT AND SHALL HAVE STANDING TO INTERVENE IN SUCH A PROCEEDING FOR ALL PURPOSES . FAILURE TO PROVIDE THE COMMISSION SERVICE OF PROCESS RENDERS A JUDGMENT OR ORDER VOID AS TO THE COMMISSION, THIS COMPACT, OR PROMULGATED RULES. B. D EFAULT, 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 PROMULGATED RULES, THE 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. T HE COMMISSION SHALL PROVIDE A COPY OF THE NOTICE OF DEFAULT TO THE OTHER MEMBER STATES. 3. I F 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. T ERMINATION 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. PAGE 32-HOUSE BILL 24-1111 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. U PON THE TERMINATION OF A STATE'S MEMBERSHIP FROM THIS COMPACT, THAT STATE SHALL IMMEDIATELY PROVIDE NOTICE TO ALL LICENSEES WHO HOLD A MULTISTATE LICENSE WITHIN THAT STATE OF SUCH TERMINATION. THE TERMINATED STATE SHALL CONTINUE TO RECOGNIZE ALL LICENSES GRANTED PURSUANT TO THIS COMPACT FOR A MINIMUM OF ONE HUNDRED EIGHTY (180) DAYS AFTER THE DATE OF SAID NOTICE OF TERMINATION . 7. T HE 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. T HE 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 SUCH LITIGATION , INCLUDING REASONABLE ATTORNEY 'S FEES. C. D ISPUTE 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. T HE COMMISSION SHALL PROMULGATE A RULE PROVIDING FOR BOTH MEDIATION AND BINDING DISPUTE RESOLUTION FOR DISPUTES AS APPROPRIATE . PAGE 33-HOUSE BILL 24-1111 D. ENFORCEMENT 1. THE COMMISSION, IN THE REASONABLE EXERCISE OF ITS DISCRETION , SHALL ENFORCE THE PROVISIONS OF THIS COMPACT AND THE COMMISSION'S RULES. 2. B Y MAJORITY VOTE AS PROVIDED BY COMMISSION RULE, 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 OFFICES TO ENFORCE COMPLIANCE WITH THE PROVISIONS OF THE COMPACT AND ITS PROMULGATED 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 SUCH LITIGATION , INCLUDING REASONABLE ATTORNEY 'S FEES. THE REMEDIES HEREIN ARE NOT 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 OFFICES TO ENFORCE COMPLIANCE WITH THE PROVISIONS OF THE COMPACT AND ITS PROMULGATED 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 SUCH LITIGATION , INCLUDING REASONABLE ATTORNEY 'S FEES. 4. N O INDIVIDUAL OR ENTITY OTHER THAN A MEMBER STATE MAY ENFORCE THIS COMPACT AGAINST THE COMMISSION. ARTICLE 13 - EFFECTIVE DATE, WITHDRAWAL, AND AMENDMENT A. T HE COMPACT COMES INTO EFFECT ON THE DATE ON WHICH THE PAGE 34-HOUSE BILL 24-1111 COMPACT STATUTE IS ENACTED INTO LAW IN THE SEVENTH MEMBER STATE. 1. O N OR AFTER THE EFFECTIVE DATE OF THE COMPACT, THE COMMISSION SHALL CONVENE AND REVIEW THE ENACTMENT OF EACH OF THE CHARTER MEMBER STATES TO DETERMINE IF THE STATUTE ENACTED BY EACH SUCH 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 IS ENTITLED TO THE DEFAULT PROCESS SET FORTH IN ARTICLE 12. b. I F ANY MEMBER STATE IS LATER FOUND TO BE IN DEFAULT , OR IS TERMINATED OR WITHDRAWS FROM THE COMPACT, THE COMMISSION REMAINS IN EXISTENCE AND THE COMPACT REMAINS IN EFFECT EVEN IF THE NUMBER OF MEMBER STATES SHOULD BE LESS THAN SEVEN (7). 2. M EMBER STATES ENACTING THE COMPACT SUBSEQUENT TO THE CHARTER MEMBER STATES ARE SUBJECT TO THE PROCESS SET FORTH IN ARTICLE 9.C.24 TO DETERMINE IF THEIR ENACTMENTS ARE MATERIALLY DIFFERENT FROM THE MODEL COMPACT STATUTE AND WHETHER THEY QUALIFY FOR PARTICIPATION IN THE COMPACT. 3. A LL 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. A NY STATE THAT JOINS THE COMPACT IS SUBJECT TO THE COMMISSION'S RULES AND BYLAWS AS THEY EXIST ON THE DATE ON WHICH THE COMPACT BECOMES LAW IN THAT STATE. PAGE 35-HOUSE BILL 24-1111 ANY RULE THAT HAS BEEN PREVIOUSLY ADOPTED BY THE COMMISSION HAS THE FULL FORCE AND EFFECT OF LAW ON THE DAY THE COMPACT BECOMES LAW IN THAT STATE. B. A NY 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 ONE HUNDRED EIGHTY (180) DAYS AFTER ENACTMENT OF THE REPEALING STATUTE . 2. W ITHDRAWAL DOES 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. U PON THE ENACTMENT OF A STATUTE WITHDRAWING FROM THIS COMPACT, A STATE SHALL IMMEDIATELY PROVIDE NOTICE OF SUCH WITHDRAWAL TO ALL LICENSEES WITHIN THAT STATE. NOTWITHSTANDING ANY SUBSEQUENT STATUTORY ENACTMENT TO THE CONTRARY , SUCH WITHDRAWING STATE SHALL CONTINUE TO RECOGNIZE ALL LICENSES GRANTED PURSUANT TO THIS COMPACT FOR A MINIMUM OF ONE HUNDRED EIGHTY (180) DAYS AFTER THE DATE OF SUCH NOTICE OF WITHDRAWAL . C. N OTHING 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 THE PROVISIONS OF THIS COMPACT. D. T HIS COMPACT MAY BE AMENDED BY THE MEMBER STATES. NO AMENDMENT TO THIS COMPACT BECOMES EFFECTIVE AND BINDING UPON ANY MEMBER STATE UNTIL IT IS ENACTED INTO THE LAWS OF ALL MEMBER STATES. ARTICLE 14 - CONSTRUCTION AND SEVERABILITY PAGE 36-HOUSE BILL 24-1111 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 PROMULGATION OF RULES SHALL NOT BE CONSTRUED TO LIMIT THE COMMISSION'S RULEMAKING AUTHORITY SOLELY FOR THOSE PURPOSES . B. T HE 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, OF A STATE SEEKING PARTICIPATION IN THE COMPACT, OR OF THE UNITED STATES, OR THE APPLICABILITY THEREOF TO ANY GOVERNMENT , AGENCY, PERSON, 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, PERSON, OR CIRCUMSTANCE SHALL NOT BE AFFECTED THEREBY . C. N OTWITHSTANDING ARTICLE 14.B, THE COMMISSION MAY DENY A STATE'S PARTICIPATION IN THE COMPACT OR, IN ACCORDANCE WITH THE REQUIREMENTS OF ARTICLE 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 IS HELD TO BE CONTRARY TO THE CONSTITUTION OF ANY MEMBER STATE, THE COMPACT REMAINS 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 . ARTICLE 15 - CONSISTENT EFFECT AND CONFLICT WITH OTHER STATE LAWS A. N OTHING HEREIN PREVENTS OR INHIBITS THE ENFORCEMENT OF ANY OTHER LAW OF A MEMBER STATE THAT IS NOT INCONSISTENT WITH THE COMPACT. B. A NY LAWS, STATUTES, REGULATIONS, OR OTHER LEGAL REQUIREMENTS IN A MEMBER STATE IN CONFLICT WITH THE PAGE 37-HOUSE BILL 24-1111 COMPACT ARE SUPERSEDED TO THE EXTENT OF THE CONFLICT . C. A LL PERMISSIBLE AGREEMENTS BETWEEN THE COMMISSION AND THE MEMBER STATES ARE BINDING IN ACCORDANCE WITH THEIR TERMS . 24-60-4902. Construction of terms. (1) A S USED IN THIS PART 49, UNLESS THE CONTEXT OTHERWISE REQUIRES : (a) "L ICENSEE" MEANS, WITH RESPECT TO COLORADO, A COSMETOLOGIST HOLDING AN UNRESTRICTED LICENSE ISSUED BY THE DIRECTOR OF THE DIVISION OF PROFESSIONS AND OCCUPATIONS IN THE DEPARTMENT OF REGULATORY AGENCIES PURSUANT TO ARTICLE 105 OF TITLE 12. (b) "S TATE LICENSING AUTHORITY " MEANS, WITH RESPECT TO COLORADO, THE DIRECTOR OF THE DIVISION OF PROFESSIONS AND OCCUPATIONS CREATED IN THE DEPARTMENT OF REGULATORY AGENCIES PURSUANT TO SECTION 12-20-103. 24-60-4903. Notice to revisor of statutes - effective date of compact. T HIS ARTICLE 49 WILL TAKE EFFECT ON THE DATE THE COMPACT IS ENACTED INTO LAW IN THE SEVENTH COMPACT STATE . THE DIRECTOR OF THE DIVISION OF PROFESSIONS AND OCCUPATIONS IN THE DEPARTMENT OF REGULATORY AGENCIES SHALL NOTIFY THE REVISOR OF STATUTES IN WRITING WHEN THE CONDITION SPECIFIED IN THIS SECTION HAS OCCURRED BY E -MAILING THE NOTICE TO REVISOROFSTATUTES .GA@COLEG.GOV. THIS PART 49 TAKES EFFECT UPON THE DATE IDENTIFIED IN THE NOTICE THAT THE COMPACT IS ENACTED INTO LAW IN THE SEVENTH COMPACT STATE OR UPON THE DATE OF THE NOTICE TO THE REVISOR OF STATUTES IF THE NOTICE DOES NOT SPECIFY A DIFFERENT DATE . SECTION 2. In Colorado Revised Statutes, add 12-105-125.5 as follows: 12-105-125.5. Interstate compact for cosmetologists - powers and duties - rules - definitions. (1) A S USED IN THIS SECTION: (a) "A DVERSE ACTION" HAS THE MEANING SET FORTH IN ARTICLE 2 OF SECTION 24-60-4901. PAGE 38-HOUSE BILL 24-1111 (b) "BACKGROUND CHECK" HAS THE MEANING SET FORTH IN ARTICLE 2 OF SECTION 24-60-4901. (c) "C OMMISSION" MEANS THE COSMETOLOGY LICENSURE COMPACT COMMISSION ESTABLISHED IN ARTICLE 9 OF SECTION 24-60-4901. (d) "C OMPACT" MEANS THE COSMETOLOGY LICENSURE COMPACT AUTHORIZED IN PART 49 OF ARTICLE 60 OF TITLE 24. (e) "C URRENT SIGNIFICANT INVESTIGATIVE INFORMATION " HAS THE MEANING SET FORTH IN ARTICLE 2 OF SECTION 24-60-4901. (f) "D ATA SYSTEM" HAS THE MEANING SET FORTH IN ARTICLE 2 OF SECTION 24-60-4901. (g) "I NVESTIGATIVE INFORMATION" HAS THE MEANING SET FORTH IN ARTICLE 2 OF SECTION 24-60-4901. (h) "M EMBER STATE" MEANS A STATE THAT HAS ENACTED THE COMPACT . (i) "M ULTISTATE LICENSE" HAS THE MEANING SET FORTH IN ARTICLE 2 OF SECTION 24-60-4901. (2) I N ADDITION TO ANY POWERS AND DUTIES SPECIFIED IN THE COMPACT FOR MEMBER STATES , THE DIRECTOR HAS THE FOLLOWING POWERS AND DUTIES WITH REGARD TO THE COMPACT : (a) T O FACILITATE COLORADO'S PARTICIPATION IN THE COMPACT; (b) T O COMPLY WITH THE RULES OF THE COMMISSION ; (c) T O PROMULGATE RULES IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24 AS NECESSARY FOR THE IMPLEMENTATION , ADMINISTRATION, AND ENFORCEMENT OF THE COMPACT ; (d) T O SERVE, OR TO DESIGNATE ANOTHER INDIVIDUAL TO SERVE , AS A DELEGATE ON AND ATTEND M EETINGS OF THE COMMISSION IN ACCORDANCE WITH THE TERMS OF THE COMPACT ; PAGE 39-HOUSE BILL 24-1111 (e) TO NOTIFY THE COMMISSION, IN COMPLIANCE WITH THE TERMS OF THE COMPACT AND COMMISSION RULES , OF ANY ADVERSE ACTION OR THE AVAILABILITY OF INVESTIGATIVE INFORMATION , INCLUDING CURRENT SIGNIFICANT INVESTIGATIVE INFORMATION , REGARDING A LICENSEE; (f) T O IMPLEMENT PROCEDURES FOR CONSIDERING ONE OR MORE OF THE FOLLOWING CATEGORIES OF INFORMATION FROM APPLICANTS FOR LICENSURE : CRIMINAL HISTORY, DISCIPLINARY HISTORY, OR BACKGROUND CHECK ; (g) T O GRANT A MULTISTATE LICENSE TO A LICENSEE IN ACCORDANCE WITH THE TERMS OF THE COMPACT AND TO CHARGE A FEE TO INDIVIDUALS APPLYING FOR THE MULTISTATE LICENSE ; (h) T O PARTICIPATE FULLY IN THE DATA SYSTEM CONSISTENT WITH THE COMPACT REQUIREMENTS AND THE RULES OF THE COMMISSION ; AND (i) TO APPROVE PAYMENT OF ASSESSMENTS LEVIED BY THE COMMISSION TO COVER THE COST OF OPERATIONS AND ACTIVITIES OF THE COMMISSION AND ITS STAFF . SECTION 3. Appropriation. (1) For the 2024-25 state fiscal year, $104,620 is appropriated to the department of regulatory agencies for use by the division of professions and occupations. This appropriation is from the division of professions and occupations cash fund created in section 12-20-105 (3), C.R.S. To implement this act, the division may use this appropriation as follows: (a) $61,670 for personal services, which amount is based on an assumption that the division will require an additional 1.0 FTE; (b) $7,950 for operating expenses; and (c) $35,000 for the purchase of information technology services. (2) For the 2024-25 state fiscal year, $35,000 is appropriated to the office of the governor for use by the office of information technology. This appropriation is from reappropriated funds received from the department of regulatory agencies under subsection (1)(c) of this section. To implement this act, the office may use this appropriation to provide information PAGE 40-HOUSE BILL 24-1111 technology services for the department of regulatory agencies. SECTION 4. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in PAGE 41-HOUSE BILL 24-1111 November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor. ____________________________ ____________________________ Julie McCluskie Steve Fenberg SPEAKER OF THE HOUSE PRESIDENT OF OF REPRESENTATIVES THE SENATE ____________________________ ____________________________ Robin Jones Cindi L. Markwell CHIEF CLERK OF THE HOUSE SECRETARY OF OF REPRESENTATIVES THE SENATE APPROVED________________________________________ (Date and Time) _________________________________________ Jared S. Polis GOVERNOR OF THE STATE OF COLORADO PAGE 42-HOUSE BILL 24-1111