*HB1135.3* Reprinted January 31, 2024 HOUSE BILL No. 1135 _____ DIGEST OF HB 1135 (Updated January 30, 2024 2:27 pm - DI 134) Citations Affected: IC 25-8; IC 25-43.5; IC 34-30. Synopsis: Cosmetology licensure and apprenticeships. Establishes a cosmetology apprenticeship program (program). Sets certain requirements for cosmetologists offering a program and apprentice cosmetologists enrolled in the program. Requires an applicant for a beauty culture instructor license to state that the applicant has completed at least 100 hours of methodology, but provides that the applicant is not required to complete any methodology in excess of 100 hours. Establishes the cosmetology licensure compact (compact). Provides the requirements states must follow in order to participate in the compact. Provides that a cosmetologist may practice in member states so long as the cosmetologist meets certain criteria. Establishes a governing commission and sets out its powers, duties, financing, and liability. Provides various mechanisms for the member states and the governing commission to regulate the interstate practice of cosmetology. Provides for various contingencies, including the process to effect, amend, enforce, withdraw from, or terminate the compact. Makes accreditation provisions for a cosmetology apprentice that transfers to a beauty culture school. Provides that the state board of cosmetology and barber examiners shall adopt rules to establish standards for the operation of cosmetology apprenticeship programs. Makes conforming changes. Effective: July 1, 2024. Wesco, Pfaff, Criswell, Miller D January 8, 2024, read first time and referred to Committee on Employment, Labor and Pensions. January 18, 2024, amended, reported — Do Pass. Referred to Committee on Ways and Means pursuant to Rule 127. January 25, 2024, amended, reported — Do Pass. January 30, 2024, read second time, amended, ordered engrossed. HB 1135—LS 6528/DI 153 Reprinted January 31, 2024 Second Regular Session of the 123rd General Assembly (2024) PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type. Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution. Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2023 Regular Session of the General Assembly. HOUSE BILL No. 1135 A BILL FOR AN ACT to amend the Indiana Code concerning professions and occupations. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 25-8-2-1.9 IS ADDED TO THE INDIANA CODE 2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 3 1, 2024]: Sec. 1.9. "Apprentice cosmetologist" means an individual 4 who is: 5 (1) learning cosmetology; and 6 (2) under the direction or immediate supervision of a 7 cosmetologist. 8 SECTION 2. IC 25-8-2-3.6 IS ADDED TO THE INDIANA CODE 9 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 10 1, 2024]: Sec. 3.6. "Certificate of registration" means a certificate 11 granted by the board that authorizes an individual to act as an 12 apprentice cosmetologist. 13 SECTION 3. IC 25-8-3-23, AS AMENDED BY P.L.158-2016, 14 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 15 JULY 1, 2024]: Sec. 23. (a) The board shall adopt rules under 16 IC 4-22-2 to: 17 (1) prescribe sanitary requirements for: HB 1135—LS 6528/DI 153 2 1 (A) beauty culture salons; and 2 (B) beauty culture schools; 3 (2) establish standards for the practice of cosmetology and the 4 operation of: 5 (A) beauty culture salons; and 6 (B) beauty culture schools; and 7 (C) apprenticeship programs; 8 (3) implement the licensing system under this article and provide 9 for a staggered renewal system for licenses; and 10 (4) establish requirements for beauty culture school uniforms for 11 students and instructors; and 12 (5) establish requirements for a holder of a certificate of 13 registration to sit for the examination described in 14 IC 25-8-9-3. 15 (b) The board shall adopt rules under IC 4-22-2 to specify whether 16 the definition set forth in IC 25-8-2-5 includes the use of a straight 17 razor. 18 (c) The board may adopt rules under IC 4-22-2 to establish the 19 following for the practice of cosmetology, barbering, electrology, 20 esthetics, or manicuring in a mobile salon: 21 (1) Sanitation standards. 22 (2) Safety requirements. 23 (3) Permanent address requirements at which the following are 24 located: 25 (A) Records of appointments. 26 (B) License numbers of employees. 27 (C) If applicable, the vehicle identification number of the 28 license holder's self-contained facility. 29 (4) Enforcement actions to ensure compliance with the 30 requirements under this article and all local laws and ordinances. 31 SECTION 4. IC 25-8-4-2.8 IS ADDED TO THE INDIANA CODE 32 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 33 1, 2024]: Sec. 2.8. (a) Only a cosmetologist may operate a 34 cosmetology apprenticeship program. 35 (b) A cosmetologist who wishes to operate a cosmetology 36 apprenticeship program must apply to the board. The application 37 must state the following: 38 (1) The cosmetologist's state cosmetology license number and 39 status. 40 (2) A statement that the cosmetologist has at least five (5) 41 years of salon experience. 42 (3) A statement that the cosmetologist has completed a one HB 1135—LS 6528/DI 153 3 1 hundred (100) hour methodology course. 2 (4) A statement that the cosmetologist has successfully passed 3 the state board approved methodology test. 4 (5) Any relevant certifications or awards obtained by the 5 cosmetologist. 6 (6) Any other information that the board considers relevant 7 for determining whether to place apprentices with the 8 cosmetologist. 9 (c) If a cosmetologist is approved by the board under subsection 10 (b), the cosmetologist must do the following with regard to an 11 apprentice cosmetologist enrolled in the program: 12 (1) Keep a daily attendance record and submit a copy of the 13 record to the board monthly. 14 (2) Ensure that the apprentice will not perform licensed 15 regulated work on the general public until after the 16 apprentice has received two hundred (200) hours of technical 17 training. 18 (3) Personally supervise the apprentice cosmetologist. 19 (4) Conduct all program supervision and training at the 20 cosmetologist's principal place of business. 21 (d) A cosmetology apprenticeship program may not require an 22 apprentice cosmetologist to attend more than forty (40) hours per 23 week. 24 (e) A cosmetologist may not train more than two (2) apprentices 25 at any time. Each cosmetologist establishment may not have more 26 than: 27 (1) six (6) apprentices at any time; or 28 (2) three (3) approved cosmetologist licensing apprentices at 29 any time. 30 (f) If a cosmetologist who operates a cosmetology apprentice 31 program changes the location of the cosmetologist's principal place 32 of business, the cosmetologist must notify the board of the change 33 and receive the board's approval to continue the program at the 34 new location. 35 (g) A cosmetology apprentice must complete one thousand five 36 hundred (1,500) hours of instruction and training which must be 37 completed in two (2) years. 38 (h) A cosmetology apprentice may: 39 (1) transfer to a beauty culture school; and 40 (2) use each one (1) hour of credit that the cosmetology 41 apprentice has earned prior to the transfer to the beauty 42 culture school as one-half (1/2) of an hour of credit at the HB 1135—LS 6528/DI 153 4 1 beauty culture school. 2 (i) A cosmetology apprenticeship program approval must be 3 renewed every five (5) years with the board. 4 SECTION 5. IC 25-8-4-7, AS AMENDED BY P.L.170-2013, 5 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 6 JULY 1, 2024]: Sec. 7. (a) Each applicant must pass a final practical 7 demonstration examination of the acts permitted by the license. The 8 applicant's beauty culture school following shall administer the final 9 practical demonstration examination: 10 (1) The applicant's beauty culture school. 11 (2) The applicant's cosmetology apprentice program 12 supervisor. 13 (b) The board shall conduct a written examination of the students 14 enrolled in beauty culture school or applicants for a beauty culture 15 professional license. The written examinations described in this 16 section: 17 (1) shall be conducted at the times and places determined by the 18 board; 19 (2) may be administered through computer based testing; 20 (3) may be conducted before graduation from beauty culture 21 school; and 22 (4) shall be conducted at times set by the board. 23 SECTION 6. IC 25-8-6-3, AS AMENDED BY P.L.170-2013, 24 SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 25 JULY 1, 2024]: Sec. 3. (a) The application described in section 2 of 26 this chapter must state that the applicant: 27 (1) is at least eighteen (18) years of age; 28 (2) has graduated from high school or received the equivalent of 29 a high school education; 30 (3) holds a cosmetologist, an electrologist, a manicurist, a barber, 31 or an esthetician license issued under this article; 32 (4) has completed the education and experience requirements, 33 subject to subsection (b) and the rules adopted by the board; 34 (5) has not committed an act for which the applicant could be 35 disciplined under IC 25-8-14; 36 (6) has received a satisfactory grade (as described in IC 25-8-4-9) 37 on an examination for instructor license applicants prescribed by 38 the board; and 39 (7) has paid the fee set forth in IC 25-8-13-4 for the issuance of a 40 license under this chapter. 41 (b) In addition to the requirements under subsection (a) and this 42 chapter, an applicant for a beauty culture instructor license must HB 1135—LS 6528/DI 153 5 1 state that the applicant has completed at least one hundred (100) 2 hours of methodology. An applicant for a beauty culture instructor 3 license is not required to complete any methodology in excess of 4 one hundred (100) hours. 5 SECTION 7. IC 25-8-9-3, AS AMENDED BY P.L.158-2016, 6 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 7 JULY 1, 2024]: Sec. 3. The application described in section 2 of this 8 chapter must state that the applicant: 9 (1) is at least seventeen (17) years of age; 10 (2) has successfully completed the tenth grade or received the 11 equivalent of tenth grade education; 12 (3) has graduated from a beauty culture school or completed a 13 board approved cosmetology apprenticeship program; 14 (4) has received a satisfactory grade (as defined by IC 25-8-4-9) 15 on an examination for cosmetologist license applicants prescribed 16 by the board; 17 (5) has not committed an act for which the applicant could be 18 disciplined under IC 25-8-14; and 19 (6) has paid the fee set forth in IC 25-8-13-7 for the issuance of a 20 license under this chapter. 21 SECTION 8. IC 25-8-9-4 IS AMENDED TO READ AS FOLLOWS 22 [EFFECTIVE JULY 1, 2024]: Sec. 4. The board may waive the 23 requirement for applicants under section 3(2) or 15(b)(1)(B) of this 24 chapter if: 25 (1) the applicant petitions the board for a waiver; and 26 (2) the board determines that the requirement would result in 27 extreme hardship to the applicant if enforced. 28 SECTION 9. IC 25-8-9-15 IS ADDED TO THE INDIANA CODE 29 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 30 1, 2024]: Sec. 15. (a) A person must obtain a certificate of 31 registration to act as an apprentice cosmetologist. 32 (b) A person who wishes to obtain a certificate of registration 33 must apply to the board. The application must: 34 (1) state that the applicant: 35 (A) is at least seventeen (17) years of age; 36 (B) has successfully completed the tenth grade or received 37 the equivalent of a tenth grade education; 38 (C) has not committed an act for which the applicant could 39 be disciplined under IC 25-8-14; and 40 (D) has paid the fee set forth in IC 25-8-13-7 for the 41 issuance of a certificate of registration under this chapter; 42 and HB 1135—LS 6528/DI 153 6 1 (2) contain a statement signed by a cosmetologist: 2 (A) that the applicant: 3 (i) is employed by the cosmetologist; and 4 (ii) will work under the direct and immediate personal 5 supervision of the cosmetologist; and 6 (B) that the cosmetologist operates a board approved 7 cosmetology apprenticeship program. 8 (c) A certificate of registration shall be in effect: 9 (1) for two (2) years; or 10 (2) until the holder is issued a cosmetologist license. 11 (d) A certificate of registration must be displayed according to 12 the requirements of IC 25-8-4-13. 13 (e) Except as provided in IC 25-8-13-7, a person may not be 14 charged a fee to participate in a cosmetology apprenticeship 15 program. 16 (f) An apprentice cosmetologist may perform services only: 17 (1) on the general public (as provided in IC 25-8-4-2.8(c)(2)); 18 (2) for which the apprentice cosmetologist has received 19 technical training; and 20 (3) under the direct and immediate supervision and 21 employment of a cosmetologist who has been approved by the 22 board under IC 25-8-4-2.8. 23 SECTION 10. IC 25-8-13-7, AS AMENDED BY P.L.177-2015, 24 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 25 JULY 1, 2024]: Sec. 7. (a) The board shall charge a fee established by 26 the board under IC 25-1-8-2 for providing an examination to an 27 applicant for a cosmetologist license. 28 (b) The board shall charge a fee established by the board under 29 IC 25-1-8-2 for issuing or renewing a cosmetologist license. 30 IC 25-1-2-6(e) applies to the issuance and renewal of a cosmetologist 31 license. 32 (c) The board shall charge a fee established under IC 25-1-8-6 for 33 reinstating a cosmetologist license. 34 (d) The board shall charge a fee established by the board under 35 IC 25-1-8-2 for issuing an Indiana cosmetologist license to a person 36 who holds a license from another jurisdiction that meets the 37 requirements set forth in IC 25-8-4-2. 38 (e) The board shall charge a fee established by the board under 39 IC 25-1-8-2 for issuing a certificate of registration to an apprentice 40 cosmetologist as set forth in IC 25-8-9-15. 41 SECTION 11. IC 25-43.5 IS ADDED TO THE INDIANA CODE 42 AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY HB 1135—LS 6528/DI 153 7 1 1, 2024]: 2 ARTICLE 43.5. COSMETOLOGY LICENSURE COMPACT 3 Chapter 1. Purpose 4 Sec. 1. The purpose of this compact is to facilitate the interstate 5 practice and regulation of cosmetology with the goal of improving 6 public access to, and the safety of, cosmetology services and 7 reducing unnecessary burdens related to cosmetology licensure. 8 Through this compact, the member states seek to establish a 9 regulatory framework which provides for a new multistate 10 licensing program. Through this new licensing program, the 11 member states seek to provide increased value and mobility to 12 licensed cosmetologists in the member states, while ensuring the 13 provision of safe, effective, and reliable services to the public. 14 Sec. 2. This compact is designed to achieve the following 15 objectives, and the member states hereby ratify the same intentions 16 by adopting this compact: 17 (1) Provide opportunities for interstate practice by 18 cosmetologists who meet uniform requirements for multistate 19 licensure. 20 (2) Enhance the abilities of member states to protect public 21 health and safety and prevent fraud and unlicensed activity 22 within the profession. 23 (3) Ensure and encourage cooperation between member states 24 in the licensure and regulation of the practice of cosmetology. 25 (4) Support relocating military members and their spouses. 26 (5) Facilitate the exchange of information between member 27 states related to the licensure, investigation, and discipline of 28 the practice of cosmetology. 29 (6) Provide for the licensure and mobility of the workforce in 30 the profession, while addressing the shortage of workers and 31 lessening the associated burdens on the member states. 32 Chapter 2. Definitions 33 Sec. 0.5. The definitions in this chapter apply throughout this 34 article, unless the context requires otherwise. 35 Sec. 1. "Active military member" means any person with 36 full-time duty status in the armed forces of the United States, 37 including members of the national guard and reserve. 38 Sec. 2. "Adverse action" means any administrative, civil, 39 equitable, or criminal action permitted by a member state's laws 40 which is imposed by a state licensing authority or other regulatory 41 body against a cosmetologist, including actions against an 42 individual's license or authorization to practice such as revocation, HB 1135—LS 6528/DI 153 8 1 suspension, probation, monitoring of the licensee, limitation of the 2 licensee's practice, or any other encumbrance on a license affecting 3 an individual's ability to participate in the cosmetology industry, 4 including the issuance of a cease and desist order. 5 Sec. 3. "Alternative program" means a nondisciplinary 6 monitoring or prosecutorial diversion program approved by a 7 member state's state licensing authority. 8 Sec. 4. "Authorization to practice" means a legal authorization 9 associated with a multistate license permitting the practice of 10 cosmetology in that remote state, which shall be subject to the 11 enforcement jurisdiction of the state licensing authority in that 12 remote state. 13 Sec. 5. "Background check" means the submission of 14 information for an applicant for the purpose of obtaining that 15 applicant's criminal history record information, as further defined 16 in 28 CFR 20.3(d), from the Federal Bureau of Investigation and 17 the agency responsible for retaining state criminal or disciplinary 18 history in the applicant's home state. 19 Sec. 6. "Charter member state" means a member state that has 20 enacted legislation to adopt this compact where such legislation 21 predates the effective date of this compact as defined in 22 IC 25-43.5-13. 23 Sec. 7. "Commission" means the government agency whose 24 membership consists of all states that have enacted this compact, 25 which is known as the cosmetology licensure compact commission, 26 as defined in IC 25-43.5-9, and which shall operate as an 27 instrumentality of the member states. 28 Sec. 8. "Cosmetologist" means an individual licensed in their 29 home state to practice cosmetology. 30 Sec. 9. "Cosmetology", "cosmetology services", and the 31 "practice of cosmetology" mean the care and services provided by 32 a cosmetologist as set forth in the member state's statutes and 33 regulations in the state where the services are being provided. 34 Sec. 10. "Current significant investigative information" means 35 investigative information that: 36 (1) a state licensing authority, after an inquiry or investigation 37 that complies with a member state's due process 38 requirements, has reason to believe is not groundless and, if 39 proved true, would indicate a violation of that state's laws 40 regarding fraud or the practice of cosmetology; or 41 (2) indicates that a licensee has engaged in fraud or represents 42 an immediate threat to public health and safety, regardless of HB 1135—LS 6528/DI 153 9 1 whether the licensee has been notified and had an opportunity 2 to respond. 3 Sec. 11. "Data system" means a repository of information about 4 licensees, including, but not limited to, license status, investigative 5 information, and adverse actions. 6 Sec. 12. "Disqualifying event" means any event which shall 7 disqualify an individual from holding a multistate license under 8 this compact, which the commission may by rule or order specify. 9 Sec. 13. "Encumbered license" means a license in which an 10 adverse action restricts the practice of cosmetology by a licensee, 11 or where the adverse action has been reported to the commission. 12 Sec. 14. "Encumbrance" means a revocation or suspension of, 13 or any limitation on, the full and unrestricted practice of 14 cosmetology by a state licensing authority. 15 Sec. 15. "Executive committee" means a group of delegates 16 elected or appointed to act on behalf of, and within the powers 17 granted to them by, the commission. 18 Sec. 16. "Home state" means the member state which is a 19 licensee's primary state of residence, and where that licensee holds 20 an active and unencumbered license to practice cosmetology. 21 Sec. 17. "Investigative information" means information, 22 records, or documents received or generated by a state licensing 23 authority pursuant to an investigation or other inquiry. 24 Sec. 18. "Jurisprudence requirement" means the assessment of 25 an individual's knowledge of the laws and rules governing the 26 practice of cosmetology in a state. 27 Sec. 19. "Licensee" means an individual who currently holds a 28 license from a member state to practice as a cosmetologist. 29 Sec. 20. "Member state" means any state that has adopted this 30 compact. 31 Sec. 21. "Multistate license" means a license issued by and 32 subject to the enforcement jurisdiction of the state licensing 33 authority in a licensee's home state, which authorizes the practice 34 of cosmetology in member states and includes authorizations to 35 practice cosmetology in all remote states pursuant to this compact. 36 Sec. 22. "Remote state" means any member state, other than the 37 licensee's home state. 38 Sec. 23. "Rule" means any rule or regulation promulgated by 39 the commission under this compact which has the force of law. 40 Sec. 24. "Single-state license" means a cosmetology license 41 issued by a member state that authorizes practice of cosmetology 42 only within the issuing state and does not include any authorization HB 1135—LS 6528/DI 153 10 1 outside of the issuing state. 2 Sec. 25. "State" means a state, territory, or possession of the 3 United States and the District of Columbia. 4 Sec. 26. "State licensing authority" means a member state's 5 regulatory body responsible for issuing cosmetology licenses or 6 otherwise overseeing the practice of cosmetology in that state. 7 Chapter 3. Member State Requirements 8 Sec. 1. To be eligible to join this compact, and to maintain 9 eligibility as a member state, a state must: 10 (1) license and regulate cosmetology; 11 (2) have a mechanism or entity in place to receive and 12 investigate complaints about licensees practicing in that state; 13 (3) require that licensees within the state pass a cosmetology 14 competency examination prior to being licensed to provide 15 cosmetology services to the public in that state; 16 (4) require that licensees satisfy educational or training 17 requirements in cosmetology prior to being licensed to 18 provide cosmetology services to the public in that state; 19 (5) implement procedures for considering one (1) or more of 20 the following categories of information from applicants for 21 licensure: criminal history; disciplinary history; or 22 background check. Such procedures may include the 23 submission of information by applicants for the purpose of 24 obtaining an applicant's background check as defined in this 25 article; 26 (6) participate in the data system, including through the use 27 of unique identifying numbers; 28 (7) share information related to adverse actions with the 29 commission and other member states, both through the data 30 system and otherwise; 31 (8) notify the commission and other member states, in 32 compliance with the terms of the compact and rules of the 33 commission, of the existence of investigative information or 34 current significant investigative information in the state's 35 possession regarding a licensee practicing in that state; 36 (9) comply with rules enacted by the commission to 37 administer the compact; and 38 (10) accept licensees from other member states as established 39 in this article. 40 Sec. 2. Member states may charge a fee for granting a license to 41 practice cosmetology. 42 Sec. 3. Individuals not residing in a member state shall continue HB 1135—LS 6528/DI 153 11 1 to be able to apply for a member state's single-state license as 2 provided under the laws of each member state. However, the 3 single-state license granted to these individuals shall not be 4 recognized as granting a multistate license to provide services in 5 any other member state. 6 Sec. 4. Nothing in this compact shall affect the requirements 7 established by a member state for the issuance of a single-state 8 license. 9 Sec. 5. A multistate license issued to a licensee by a home state 10 to a resident of that state shall be recognized by each member state 11 as authorizing a licensee to practice cosmetology in each member 12 state. 13 Sec. 6. At no point shall the commission have the power to 14 define the educational or professional requirements for a license to 15 practice cosmetology. The member states shall retain sole 16 jurisdiction over the provision of these requirements. 17 Chapter 4. Multistate License 18 Sec. 1. To be eligible to apply to their home state's state licensing 19 authority for an initial multistate license under this compact, a 20 licensee must hold an active and unencumbered single-state license 21 to practice cosmetology in their home state. 22 Sec. 2. Upon the receipt of an application for a multistate 23 license, according to the rules of the commission, a member state's 24 state licensing authority shall ascertain whether the applicant 25 meets the requirements for a multistate license under this compact. 26 Sec. 3. If an applicant meets the requirements for a multistate 27 license under this compact and any applicable rules of the 28 commission, the state licensing authority in receipt of the 29 application shall, within a reasonable time, grant a multistate 30 license to that applicant, and inform all member states of the grant 31 of the multistate license. 32 Sec. 4. A multistate license to practice cosmetology issued by a 33 member state's state licensing authority shall be recognized by 34 each member state as authorizing the practice of cosmetology as 35 though that licensee held a single-state license to do so in each 36 member state, subject to the restrictions in this article. 37 Sec. 5. A multistate license granted pursuant to this compact 38 may be effective for a definite period of time, concurrent with the 39 licensure renewal period in the home state. 40 Sec. 6. To maintain a multistate license under this compact, a 41 licensee must: 42 (1) agree to abide by the rules of the state licensing authority, HB 1135—LS 6528/DI 153 12 1 and the state scope of practice laws governing the practice of 2 cosmetology, of any member state in which the licensee 3 provides services; 4 (2) pay all required fees related to the application and process, 5 and any other fees which the commission may by rule require; 6 and 7 (3) comply with any and all other requirements regarding 8 multistate licenses which the commission may by rule provide. 9 Sec. 7. A licensee practicing in a member state is subject to all 10 scope of practice laws governing cosmetology services in that state. 11 Sec. 8. The practice of cosmetology under a multistate license 12 granted pursuant to this compact will subject the licensee to the 13 jurisdiction of the state licensing authority, the courts, and the laws 14 of the member state in which the cosmetology services are 15 provided. 16 Chapter 5. Reissuance of a Multistate License by a New Home 17 State 18 Sec. 1. A licensee may hold a multistate license, issued by their 19 home state, in only one (1) member state at any given time. 20 Sec. 2. If a licensee changes their home state by moving between 21 two (2) member states, the following apply: 22 (1) The licensee shall immediately apply for the reissuance of 23 their multistate license in their new home state. The licensee 24 shall pay all applicable fees and notify the prior home state in 25 accordance with the rules of the commission. 26 (2) Upon receipt of an application to reissue a multistate 27 license, the new home state shall verify that the multistate 28 license is active, unencumbered, and eligible for reissuance 29 under the terms of the compact and the rules of the 30 commission. The multistate license issued by the prior home 31 state will be deactivated and all member states notified in 32 accordance with the applicable rules adopted by the 33 commission. 34 (3) If required for initial licensure, the new home state may 35 require a background check as specified in the laws of that 36 state or the compliance with any jurisprudence requirements 37 of the new home state. 38 (4) Notwithstanding any other provision of this compact, if a 39 licensee does not meet the requirements set forth in this 40 compact for the reissuance of a multistate license by the new 41 home state, then the licensee shall be subject to the new home 42 state requirements for the issuance of a single-state license in HB 1135—LS 6528/DI 153 13 1 that state. 2 Sec. 3. If a licensee changes their primary state of residence by 3 moving from a member state to a nonmember state, or from a 4 nonmember state to a member state, then the licensee shall be 5 subject to the state requirements for the issuance of a single-state 6 license in the new home state. 7 Sec. 4. Nothing in this compact shall interfere with a licensee's 8 ability to hold a single-state license in multiple states. However, for 9 the purposes of this compact, a licensee shall have only one (1) 10 home state and only one (1) multistate license. 11 Sec. 5. Nothing in this compact shall interfere with the 12 requirements established by a member state for the issuance of a 13 single-state license. 14 Chapter 6. Authority of the Compact Commission and Member 15 State Licensing Authorities 16 Sec. 1. Nothing in this compact, nor any rule or regulation of the 17 commission, shall be construed to limit, restrict, or in any way 18 reduce the ability of a member state to enact and enforce laws, 19 regulations, or other rules related to the practice of cosmetology in 20 that state, where those laws, regulations, or other rules are not 21 inconsistent with the provisions of this compact. 22 Sec. 2. Insofar as practical, a member state's state licensing 23 authority shall cooperate with the commission and with each entity 24 exercising independent regulatory authority over the practice of 25 cosmetology according to the provisions of this compact. 26 Sec. 3. Discipline shall be the sole responsibility of the state in 27 which cosmetology services are provided. Accordingly, each 28 member state's state licensing authority shall be responsible for 29 receiving complaints about individuals practicing cosmetology in 30 that state and for communicating all relevant investigative 31 information about any such adverse action to the other member 32 states through the data system in addition to any other methods the 33 commission may by rule require. 34 Chapter 7. Adverse Actions 35 Sec. 1. A licensee's home state shall have exclusive power to 36 impose an adverse action against a licensee's multistate license 37 issued by the home state. 38 Sec. 2. A home state may take adverse action on a multistate 39 license based on the investigative information, current significant 40 investigative information, or adverse action of a remote state. 41 Sec. 3. In addition to the powers conferred by state law, each 42 remote state's state licensing authority shall have the power to do HB 1135—LS 6528/DI 153 14 1 the following: 2 (1) Take adverse action against a licensee's authorization to 3 practice cosmetology through the multistate license in that 4 member state, provided that: 5 (A) only the licensee's home state shall have the power to 6 take adverse action against the multistate license issued by 7 the home state; and 8 (B) for the purposes of taking adverse action, the home 9 state's state licensing authority shall give the same priority 10 and effect to reported conduct received from a remote 11 state as the home state would if such conduct had occurred 12 within the home state. In so doing, the home state shall 13 apply its own state laws to determine the appropriate 14 action. 15 (2) Issue cease and desist orders or impose an encumbrance 16 on a licensee's authorization to practice within that member 17 state. 18 (3) Complete any pending investigations of a licensee who 19 changes their primary state of residence during the course of 20 such an investigation. The state licensing authority shall also 21 be empowered to report the results of such an investigation to 22 the commission through the data system as described in this 23 article. 24 (4) Issue subpoenas for both hearings and investigations that 25 require the attendance and testimony of witnesses, as well as 26 the production of evidence. Subpoenas issued by a state 27 licensing authority in a member state for the attendance and 28 testimony of witnesses or the production of evidence from 29 another member state shall be enforced in the latter state by 30 any court of competent jurisdiction, according to the practice 31 and procedure of that court applicable to subpoenas issued in 32 proceedings before it. The issuing state licensing authority 33 shall pay any witness fees, travel expenses, mileage, and other 34 fees required by the service statutes of the state in which the 35 witnesses or evidence are located. 36 (5) If otherwise permitted by state law, recover from the 37 affected licensee the costs of investigations and disposition of 38 cases resulting from any adverse action taken against that 39 licensee. 40 (6) Take adverse action against the licensee's authorization to 41 practice in that state based on the factual findings of another 42 remote state. HB 1135—LS 6528/DI 153 15 1 Sec. 4. A licensee's home state shall complete any pending 2 investigation of a cosmetologist who changes their primary state of 3 residence during the course of the investigation. The home state 4 shall also have the authority to take appropriate action and shall 5 promptly report the conclusions of the investigations to the data 6 system. 7 Sec. 5. If an adverse action is taken by the home state against a 8 licensee's multistate license, the licensee's authorization to practice 9 in all other member states shall be deactivated until all 10 encumbrances have been removed from the home state license. All 11 home state disciplinary orders that impose an adverse action 12 against a licensee's multistate license shall include a statement that 13 the cosmetologist's authorization to practice is deactivated in all 14 member states during the pendency of the order. 15 Sec. 6. Nothing in this compact shall override a member state's 16 authority to accept a licensee's participation in an alternative 17 program in lieu of adverse action. A licensee's multistate license 18 shall be suspended for the duration of the licensee's participation 19 in any alternative program. 20 Sec. 7. (a) In addition to the authority granted to a member state 21 by its respective scope of practice laws or other applicable state 22 law, a member state may participate with other member states in 23 joint investigations of licensees. 24 (b) Member states shall share any investigative, litigation, or 25 compliance materials in furtherance of any joint or individual 26 investigation initiated under the compact. 27 Chapter 8. Active Military Members and Their Spouses 28 Sec. 1. Active military members, or their spouses, shall 29 designate a home state where the individual has a current license 30 to practice cosmetology in good standing. The individual may 31 retain their home state designation during any period of service 32 when that individual or their spouse is on active duty assignment. 33 Chapter 9. Establishment and Operation of the Cosmetology 34 Licensure Compact Commission 35 Sec. 1. The compact member states create and establish a joint 36 government agency whose membership consists of all member 37 states that have enacted the compact known as the cosmetology 38 licensure compact commission. The commission is an 39 instrumentality of the compact member states acting jointly and 40 not an instrumentality of any one (1) state. The commission shall 41 come into existence on or after the effective date of the compact as 42 set forth in IC 25-43.5-13. HB 1135—LS 6528/DI 153 16 1 Sec. 2. (a) Each member state shall have and be limited to one 2 (1) delegate selected by that member state's state licensing 3 authority. 4 (b) The delegate shall be an administrator of the state licensing 5 authority of the member state or their designee. 6 (c) The commission shall by rule or bylaw establish a term of 7 office for delegates and may by rule or bylaw establish term limits. 8 (d) The commission may recommend removal or suspension of 9 any delegate from office. 10 (e) A member state's state licensing authority shall fill any 11 vacancy of its delegate occurring on the commission within sixty 12 (60) days of the vacancy. 13 (f) Each delegate shall be entitled to one (1) vote on all matters 14 that are voted on by the commission. 15 (g) The commission shall meet at least once during each 16 calendar year. Additional meetings may be held as set forth in the 17 bylaws. The commission may meet by telecommunication, video 18 conference, or other similar electronic means. 19 Sec. 3. The commission shall have the following powers: 20 (1) Establish the fiscal year of the commission. 21 (2) Establish code of conduct and conflict of interest policies. 22 (3) Adopt rules and bylaws. 23 (4) Maintain its financial records in accordance with the 24 bylaws. 25 (5) Meet and take such actions as are consistent with the 26 provisions of this compact, the commission's rules, and the 27 bylaws. 28 (6) Initiate and conclude legal proceedings or actions in the 29 name of the commission, provided that the standing of any 30 state licensing authority to sue or be sued under applicable 31 law shall not be affected. 32 (7) Maintain and certify records and information provided to 33 a member state as the authenticated business records of the 34 commission, and designate an agent to do so on the 35 commission's behalf. 36 (8) Purchase and maintain insurance and bonds. 37 (9) Borrow, accept, or contract for services of personnel, 38 including, but not limited to, employees of a member state. 39 (10) Conduct an annual financial review. 40 (11) Hire employees, elect or appoint officers, fix 41 compensation, define duties, grant such individuals 42 appropriate authority to carry out the purposes of the HB 1135—LS 6528/DI 153 17 1 compact, and establish the commission's personnel policies 2 and programs relating to conflicts of interest, qualifications 3 of personnel, and other related personnel matters. 4 (12) As set forth in the commission rules, charge a fee to a 5 licensee for the grant of a multistate license and thereafter, as 6 may be established by commission rule, charge the licensee a 7 multistate license renewal fee for each renewal period. 8 Nothing in this article shall be construed to prevent a home 9 state from charging a licensee a fee for a multistate license or 10 renewals of a multistate license, or a fee for the jurisprudence 11 requirement if the member state imposes such a requirement 12 for the grant of a multistate license. 13 (13) Assess and collect fees. 14 (14) Accept any and all appropriate gifts, donations, grants of 15 money, other sources of revenue, equipment, supplies, 16 materials, and services, and receive, utilize, and dispose of the 17 items or services. At all times the commission shall avoid any 18 appearance of impropriety or conflict of interest when 19 accepting, receiving, utilizing, or disposing of the items or 20 services. 21 (15) Lease, purchase, retain, own, hold, improve, or use any 22 property, real, personal, or mixed, or any undivided interest 23 in the property. 24 (16) Sell, convey, mortgage, pledge, lease, exchange, abandon, 25 or otherwise dispose of any property real, personal, or mixed. 26 (17) Establish a budget and make expenditures. 27 (18) Borrow money. 28 (19) Appoint committees, including standing committees, 29 composed of members, state regulators, state legislators or 30 their representatives, and consumer representatives, and 31 other interested persons designated in this compact and the 32 bylaws. 33 (20) Provide and receive information from, and cooperate 34 with, law enforcement agencies. 35 (21) Elect a chair, vice chair, secretary, and treasurer and 36 other officers of the commission as provided in the 37 commission's bylaws. 38 (22) Establish and elect an executive committee, including a 39 chair and a vice chair. 40 (23) Adopt and provide to the member states an annual 41 report. 42 (24) Determine whether a state's adopted language is HB 1135—LS 6528/DI 153 18 1 materially different from the model compact language such 2 that the state would not qualify for participation in the 3 compact. 4 (25) Perform other functions necessary or appropriate to 5 achieve the purposes of this compact. 6 Sec. 4. (a) The executive committee shall have the power to act 7 on behalf of the commission according to the terms of this compact. 8 The powers, duties, and responsibilities of the executive committee 9 shall include: 10 (1) overseeing the day-to-day activities of the administration 11 of the compact including compliance with the provisions of 12 the compact, the commission's rules and bylaws, and other 13 duties deemed necessary; 14 (2) recommending to the commission changes to the rules or 15 bylaws, changes to this compact legislation, fees charged to 16 compact member states, fees charged to licensees, and other 17 fees; 18 (3) ensuring compact administration services are 19 appropriately provided, including by contract; 20 (4) preparing and recommending the budget; 21 (5) maintaining financial records on behalf of the commission; 22 (6) monitoring compact compliance of member states and 23 providing compliance reports to the commission; 24 (7) establishing additional committees as necessary; 25 (8) exercising the powers and duties of the commission during 26 the interim between commission meetings, except for adopting 27 or amending rules, adopting or amending bylaws, and 28 exercising any other powers and duties expressly reserved to 29 the commission by rule or bylaw; and 30 (9) other duties as provided in the rules or bylaws of the 31 commission. 32 (b) The executive committee shall be composed of up to seven (7) 33 voting members as follows: 34 (1) The chair and vice chair of the commission and any other 35 members of the commission who serve on the executive 36 committee shall be voting members of the executive 37 committee; and 38 (2) Other than the chair, vice chair, secretary, and treasurer, 39 the commission shall elect three (3) voting members from the 40 current membership of the commission. 41 (3) The commission may elect ex officio, nonvoting members 42 from a recognized national cosmetology professional HB 1135—LS 6528/DI 153 19 1 association as approved by the commission. The commission's 2 bylaws shall identify qualifying organizations and the manner 3 of appointment if the number of organizations seeking to 4 appoint an ex officio member exceeds the number of members 5 specified in this chapter. 6 (c) The commission may remove any member of the executive 7 committee as provided in the commission's bylaws. 8 Sec. 5. (a) The executive committee shall meet at least annually. 9 (b) Annual executive committee meetings, as well as any 10 executive committee meeting at which it does not take or intend to 11 take formal action on a matter for which a commission vote would 12 otherwise be required, shall be open to the public, except that the 13 executive committee may meet in a closed, nonpublic session of a 14 public meeting when dealing with any of the matters covered under 15 section 7(d) of this chapter. 16 (c) The executive committee shall give five (5) business days 17 advance notice of its public meetings, posted on its website and as 18 determined to provide notice to persons with an interest in the 19 public matters the executive committee intends to address at those 20 meetings. 21 (d) The executive committee may hold an emergency meeting 22 when acting for the commission to: 23 (1) meet an imminent threat to public health, safety, or 24 welfare; 25 (2) prevent a loss of commission or member state funds; or 26 (3) protect public health and safety. 27 Sec. 6. The commission shall adopt and provide to the member 28 states an annual report. 29 Sec. 7. (a) All meetings of the commission that are not closed 30 pursuant to this section shall be open to the public. Notice of public 31 meetings shall be posted on the commission's website at least thirty 32 (30) days prior to the public meeting. 33 (b) Notwithstanding subsection (a), the commission may 34 convene an emergency public meeting by providing at least 35 twenty-four (24) hours prior notice on the commission's website, 36 and any other means as provided in the commission's rules, for any 37 of the reasons it may dispense with notice of proposed rulemaking 38 under IC 25-43.5-11-4. The commission's legal counsel shall certify 39 that one (1) of the reasons justifying an emergency public meeting 40 has been met. 41 (c) Notice of all commission meetings shall provide the time, 42 date, and location of the meeting, and if the meeting is to be held or HB 1135—LS 6528/DI 153 20 1 accessible via telecommunication, video conference, or other 2 electronic means, the notice shall include the mechanism for access 3 to the meeting. 4 (d) The commission may convene in a closed, nonpublic meeting 5 for the commission to discuss: 6 (1) noncompliance of a member state with its obligations 7 under the compact; 8 (2) the employment, compensation, discipline or other 9 matters, practices, or procedures related to specific employees 10 or other matters related to the commission's internal 11 personnel practices and procedures; 12 (3) current or threatened discipline of a licensee by the 13 commission or by a member state's licensing authority; 14 (4) current, threatened, or reasonably anticipated litigation; 15 (5) negotiation of contracts for the purchase, lease, or sale of 16 goods, services, or real estate; 17 (6) accusing any person of a crime or formally censuring any 18 person; 19 (7) trade secrets or commercial or financial information that 20 is privileged or confidential; 21 (8) information of a personal nature where disclosure would 22 constitute a clearly unwarranted invasion of personal privacy; 23 (9) investigative records compiled for law enforcement 24 purposes; 25 (10) information related to any investigative reports prepared 26 by or on behalf of or for use of the commission or other 27 committee charged with responsibility of investigation or 28 determination of compliance issues pursuant to the compact; 29 (11) legal advice; 30 (12) matters specifically exempted from disclosure to the 31 public by federal or member state law; or 32 (13) other matters as promulgated by the commission by rule. 33 (e) If a meeting, or portion of a meeting, is closed, the presiding 34 officer shall state that the meeting will be closed and reference each 35 relevant exempting provision, and such reference shall be recorded 36 in the minutes. 37 (f) The commission shall keep minutes that fully and clearly 38 describe all matters discussed in a meeting and shall provide a full 39 and accurate summary of actions taken, and the reasons therefore, 40 including a description of the views expressed. All documents 41 considered in connection with an action shall be identified in the 42 minutes. All minutes and documents of a closed meeting shall HB 1135—LS 6528/DI 153 21 1 remain under seal, subject to release only by a majority vote of the 2 commission or order of a court of competent jurisdiction. 3 Sec. 8. (a) The commission shall pay, or provide for the payment 4 of, the reasonable expenses of its establishment, organization, and 5 ongoing activities. 6 (b) The commission may accept any and all appropriate sources 7 of revenue, donations, and grants of money, equipment, supplies, 8 materials, and services. 9 (c) The commission may levy on and collect an annual 10 assessment from each member state and impose fees on licensees 11 of member states to whom it grants a multistate license to cover the 12 cost of the operations and activities of the commission and its staff, 13 which must be in a total amount sufficient to cover its annual 14 budget as approved each year for which revenue is not provided by 15 other sources. The aggregate annual assessment amount for 16 member states shall be allocated based upon a formula that the 17 commission shall promulgate by rule. 18 (d) The commission shall not incur obligations of any kind prior 19 to securing the funds adequate to meet the obligations; nor shall 20 the commission pledge the credit of any member states, except by 21 and with the authority of the member state. 22 (e) The commission shall keep accurate accounts of all receipts 23 and disbursements. The receipts and disbursements of the 24 commission shall be subject to the financial review and accounting 25 procedures established under its bylaws. All receipts and 26 disbursements of funds handled by the commission shall be subject 27 to an annual financial review by a certified or licensed public 28 accountant, and the report of the financial review shall be included 29 in and become part of the annual report of the commission. 30 Sec. 9. (a) The members, officers, executive director, employees, 31 and representatives of the commission shall be immune from suit 32 and liability, both personally and in their official capacity, for any 33 claim for damage to or loss of property or personal injury or other 34 civil liability caused by or arising out of any actual or alleged act, 35 error, or omission that occurred, or that the person against whom 36 the claim is made had a reasonable basis for believing occurred 37 within the scope of commission employment, duties, or 38 responsibilities; provided that nothing in this subsection shall be 39 construed to protect any such person from suit or liability for any 40 damage, loss, injury, or liability caused by the intentional or willful 41 or wanton misconduct of that person. The procurement of 42 insurance of any type by the commission shall not in any way HB 1135—LS 6528/DI 153 22 1 compromise or limit the immunity granted under this section. 2 (b) The commission shall defend any member, officer, executive 3 director, employee, and representative of the commission in any 4 civil action seeking to impose liability arising out of any actual or 5 alleged act, error, or omission that occurred within the scope of 6 commission employment, duties, or responsibilities, or as 7 determined by the commission that the person against whom the 8 claim is made had a reasonable basis for believing occurred within 9 the scope of commission employment, duties, or responsibilities; 10 provided that nothing in this subsection shall be construed to 11 prohibit that person from retaining their own counsel at their own 12 expense; and provided further, that the actual or alleged act, error, 13 or omission did not result from that person's intentional or willful 14 or wanton misconduct. 15 (c) The commission shall indemnify and hold harmless any 16 member, officer, executive director, employee, and representative 17 of the commission for the amount of any settlement or judgment 18 obtained against that person arising out of any actual or alleged 19 act, error, or omission that occurred within the scope of 20 commission employment, duties, or responsibilities, or that such 21 person had a reasonable basis for believing occurred within the 22 scope of commission employment, duties, or responsibilities, 23 provided that the actual or alleged act, error, or omission did not 24 result from the intentional or willful or wanton misconduct of that 25 person. 26 (d) Nothing in this article shall be construed as a limitation on 27 the liability of any licensee for professional malpractice or 28 misconduct, which shall be governed solely by any other applicable 29 state laws. 30 (e) Nothing in this compact shall be interpreted to waive or 31 otherwise abrogate a member state's state action immunity or state 32 action affirmative defense with respect to antitrust claims under 33 the Sherman Act (15 U.S.C. 1 et seq.), Clayton Act (15 U.S.C. 12 et 34 seq.), or any other state or federal antitrust or anticompetitive law 35 or regulation. 36 (f) Nothing in this compact shall be construed to be a waiver of 37 sovereign immunity by the member states or by the commission. 38 Chapter 10. Data System 39 Sec. 1. The commission shall provide for the development, 40 maintenance, operation, and utilization of a coordinated database 41 and reporting system. 42 Sec. 2. The commission shall assign each applicant for a HB 1135—LS 6528/DI 153 23 1 multistate license a unique identifier, as determined by the rules of 2 the commission. 3 Sec. 3. Notwithstanding any other provision of state law to the 4 contrary, a member state shall submit a uniform data set to the 5 data system on all individuals to whom this compact is applicable 6 as required by the rules of the commission, including: 7 (1) identifying information; 8 (2) licensure data; 9 (3) adverse actions against a license and information related 10 to the adverse actions; 11 (4) nonconfidential information related to alternative 12 program participation, the beginning and ending dates of such 13 participation, and other information related to such 14 participation; 15 (5) any denial of application for licensure, and the reason for 16 such denial (excluding the reporting of any criminal history 17 record information where prohibited by law); 18 (6) the existence of investigative information; 19 (7) the existence of current significant investigative 20 information; and 21 (8) other information that may facilitate the administration of 22 this compact or the protection of the public, as determined by 23 the rules of the commission. 24 Sec. 4. The records and information provided to a member state 25 pursuant to this compact or through the data system, when 26 certified by the commission or an agent thereof, shall constitute the 27 authenticated business records of the commission, and shall be 28 entitled to any associated hearsay exception in any relevant 29 judicial, quasi-judicial, or administrative proceedings in a member 30 state. 31 Sec. 5. The existence of current significant investigative 32 information and the existence of investigative information 33 pertaining to a licensee in any member state will only be available 34 to other member states. 35 Sec. 6. It is the responsibility of the member states to monitor 36 the database to determine whether adverse action has been taken 37 against such a licensee or license applicant. Adverse action 38 information pertaining to a licensee or license applicant in any 39 member state will be available to any other member state. 40 Sec. 7. Member states contributing information to the data 41 system may designate information that may not be shared with the 42 public without the express permission of the contributing state. HB 1135—LS 6528/DI 153 24 1 Sec. 8. Any information submitted to the data system that is 2 subsequently expunged pursuant to federal law or the laws of the 3 member state contributing the information shall be removed from 4 the data system. 5 Chapter 11. Rulemaking 6 Sec. 1. (a) The commission shall promulgate reasonable rules in 7 order to effectively and efficiently implement and administer the 8 purposes and provisions of the compact. A rule shall be invalid and 9 have no force or effect only if a court of competent jurisdiction 10 holds that the rule is invalid because the commission exercised its 11 rulemaking authority in a manner that is beyond the scope and 12 purposes of the compact, or the powers granted under the compact, 13 or based upon another applicable standard of review. 14 (b) The rules of the commission shall have the force of law in 15 each member state, provided however that where the rules of the 16 commission conflict with the laws of the member state that 17 establish the member state's scope of practice laws governing the 18 practice of cosmetology as held by a court of competent 19 jurisdiction, the rules of the commission shall be ineffective in that 20 state to the extent of the conflict. 21 (c) The commission shall exercise its rulemaking powers 22 pursuant to the criteria set forth in this chapter and the rules 23 adopted under this chapter. Rules shall become binding as of the 24 date specified by the commission for each rule. 25 (d) If a majority of the legislatures of the member states rejects 26 a rule or portion of a rule, by enactment of a statute or resolution 27 in the same manner used to adopt the compact within four (4) 28 years of the date of adoption of the rule, then such rule shall have 29 no further force and effect in any member state or to any state 30 applying to participate in the compact. 31 Sec. 2. (a) Rules shall be adopted at a regular or special meeting 32 of the commission. 33 (b) Prior to adoption of a proposed rule, the commission shall 34 hold a public hearing and allow persons to provide oral and 35 written comments, data, facts, opinions, and arguments. 36 (c) Prior to adoption of a proposed rule by the commission, and 37 at least thirty (30) days in advance of the meeting at which the 38 commission will hold a public hearing on the proposed rule, the 39 commission shall provide a notice of proposed rulemaking: 40 (1) on the website of the commission or other publicly 41 accessible platform; 42 (2) to persons who have requested notice of the commission's HB 1135—LS 6528/DI 153 25 1 notices of proposed rulemaking; and 2 (3) in such other way as the commission may by rule specify. 3 (d) The notice of proposed rulemaking shall include: 4 (1) the time, date, and location of the public hearing at which 5 the commission will hear public comments on the proposed 6 rule and, if different, the time, date, and location of the 7 meeting where the commission will consider and vote on the 8 proposed rule; 9 (2) if the hearing is held via telecommunication, video 10 conference, or other electronic means, the commission shall 11 include the mechanism for access to the hearing in the notice 12 of proposed rulemaking; 13 (3) the text of the proposed rule and the reason for the 14 proposed rule; 15 (4) a request for comments on the proposed rule from any 16 interested person; and 17 (5) the manner in which interested persons may submit 18 written comments. 19 (e) All hearings will be recorded. A copy of the recording and all 20 written comments and documents received by the commission in 21 response to the proposed rule shall be available to the public. 22 Sec. 3. (a) Nothing in this chapter shall be construed as 23 requiring a separate hearing on each rule. Rules may be grouped 24 for the convenience of the commission at hearings required by this 25 chapter. 26 (b) The commission shall, by majority vote of all members, take 27 final action on the proposed rule based on the rulemaking record 28 and the full text of the rule. 29 (c) The commission may adopt changes to the proposed rule 30 provided the changes do not enlarge the original purpose of the 31 proposed rule. 32 (d) The commission shall provide an explanation of the reasons 33 for substantive changes made to the proposed rule as well as 34 reasons for substantive changes not made that were recommended 35 by commenters. 36 (e) The commission shall determine a reasonable effective date 37 for the rule. Except for an emergency as provided in section 4 of 38 this chapter, the effective date of the rule shall be no earlier than 39 forty-five (45) days after the commission issuing the notice that it 40 adopted or amended the rule. 41 Sec. 4. Upon determination that an emergency exists, the 42 commission may consider and adopt an emergency rule with five HB 1135—LS 6528/DI 153 26 1 (5) days notice, with opportunity to comment, provided that the 2 usual rulemaking procedures provided in the compact and in this 3 chapter shall be retroactively applied to the rule as soon as 4 reasonably possible, in no event later than ninety (90) days after 5 the effective date of the rule. For the purposes of this provision, an 6 emergency rule is one that must be adopted immediately to: 7 (1) meet an imminent threat to public health, safety, or 8 welfare; 9 (2) prevent a loss of commission or member state funds; 10 (3) meet a deadline for the promulgation of a rule that is 11 established by federal law or rule; or 12 (4) protect public health and safety. 13 Sec. 5. The commission or an authorized committee of the 14 commission may direct revisions to a previously adopted rule for 15 purposes of correcting typographical errors, errors in format, 16 errors in consistency, or grammatical errors. Public notice of any 17 revisions shall be posted on the website of the commission. The 18 revision shall be subject to challenge by any person for a period of 19 thirty (30) days after posting. The revision may be challenged only 20 on grounds that the revision results in a material change to a rule. 21 A challenge shall be made in writing and delivered to the 22 commission prior to the end of the notice period. If no challenge is 23 made, the revision will take effect without further action. If the 24 revision is challenged, the revision may not take effect without the 25 approval of the commission. 26 Sec. 6. No member state's rulemaking requirements shall apply 27 under this compact. 28 Chapter 12. Oversight, Dispute Resolution, and Enforcement 29 Sec. 1. (a) The executive and judicial branches of state 30 government in each member state shall enforce this compact and 31 take all actions necessary and appropriate to implement the 32 compact. 33 (b) Venue is proper and judicial proceedings by or against the 34 commission shall be brought solely and exclusively in a court of 35 competent jurisdiction where the principal office of the commission 36 is located. The commission may waive venue and jurisdictional 37 defenses to the extent it adopts or consents to participate in 38 alternative dispute resolution proceedings. Nothing in this 39 subsection shall affect or limit the selection or propriety of venue 40 in any action against a licensee for professional malpractice, 41 misconduct or any such similar matter. 42 (c) The commission shall be entitled to receive service of process HB 1135—LS 6528/DI 153 27 1 in any proceeding regarding the enforcement or interpretation of 2 the compact and shall have standing to intervene in such a 3 proceeding for all purposes. Failure to provide the commission 4 service of process shall render a judgment or order void as to the 5 commission, this compact, or promulgated rules. 6 Sec. 2. (a) If the commission determines that a member state has 7 defaulted in the performance of its obligations or responsibilities 8 under this compact or the promulgated rules, the commission shall 9 provide written notice to the defaulting state. The notice of default 10 shall describe the default, the proposed means of curing the 11 default, and any other action that the commission may take, and 12 shall offer training and specific technical assistance regarding the 13 default. 14 (b) The commission shall provide a copy of the notice of default 15 to the other member states. 16 (c) If a state in default fails to cure the default, the defaulting 17 state may be terminated from the compact upon an affirmative 18 vote of a majority of the delegates of the member states, and all 19 rights, privileges, and benefits conferred on that state by this 20 compact may be terminated on the effective date of termination. A 21 cure of the default does not relieve the offending state of 22 obligations or liabilities incurred during the period of default. 23 (d) Termination of membership in the compact shall be imposed 24 only after all other means of securing compliance have been 25 exhausted. Notice of intent to suspend or terminate shall be given 26 by the commission to the governor, the majority and minority 27 leaders of the defaulting state's legislature, the defaulting state's 28 state licensing authority, and each of the member states' state 29 licensing authority. 30 (e) A state that has been terminated is responsible for all 31 assessments, obligations, and liabilities incurred through the 32 effective date of termination, including obligations that extend 33 beyond the effective date of termination. 34 (f) Upon the termination of a state's membership from this 35 compact, that state shall immediately provide notice to all licensees 36 who hold a multistate license within that state of such termination. 37 The terminated state shall continue to recognize all licenses 38 granted pursuant to this compact for a minimum of one hundred 39 eighty (180) days after the date of the notice of termination. 40 (g) The commission shall not bear any costs related to a state 41 that is found to be in default or that has been terminated from the 42 compact, unless agreed upon in writing between the commission HB 1135—LS 6528/DI 153 28 1 and the defaulting state. 2 (h) The defaulting state may appeal the action of the commission 3 by petitioning the United States District Court for the District of 4 Columbia or the federal district where the commission has its 5 principal offices. The prevailing party shall be awarded all costs of 6 such litigation, including reasonable attorney's fees. 7 Sec. 3. (a) Upon request by a member state, the commission 8 shall attempt to resolve disputes related to the compact that arise 9 among member states and between member and nonmember 10 states. 11 (b) The commission shall promulgate a rule providing for both 12 mediation and binding dispute resolution for disputes as 13 appropriate. 14 Sec. 4. (a) The commission, in the reasonable exercise of its 15 discretion, shall enforce the provisions of this compact and the 16 commission's rules. 17 (b) By majority vote as provided by commission rule, the 18 commission may initiate legal action against a member state in 19 default in the United States District Court for the District of 20 Columbia or the federal district where the commission has its 21 principal offices to enforce compliance with the provisions of the 22 compact and its promulgated rules. The relief sought may include 23 both injunctive relief and damages. In the event judicial 24 enforcement is necessary, the prevailing party shall be awarded all 25 costs of such litigation, including reasonable attorney's fees. The 26 remedies in this section shall not be the exclusive remedies of the 27 commission. The commission may pursue any other remedies 28 available under federal or the defaulting member state's law. 29 (c) A member state may initiate legal action against the 30 commission in the United States District Court for the District of 31 Columbia or the federal district where the commission has its 32 principal offices to enforce compliance with the provisions of the 33 compact and its promulgated rules. The relief sought may include 34 both injunctive relief and damages. In the event judicial 35 enforcement is necessary, the prevailing party shall be awarded all 36 costs of such litigation, including reasonable attorney's fees. 37 (d) No individual or entity other than a member state may 38 enforce this compact against the commission. 39 Chapter 13. Effective Date, Withdrawal, and Amendment 40 Sec. 1. The compact shall come into effect on the date on which 41 the compact statute is enacted into law in the seventh member 42 state. HB 1135—LS 6528/DI 153 29 1 Sec. 2. (a) On or after the effective date of the compact, the 2 commission shall convene and review the enactment of each of the 3 charter member states to determine if the statute enacted by each 4 such charter member state is materially different than the model 5 compact statute. 6 (b) A charter member state whose enactment is found to be 7 materially different from the model compact statute shall be 8 entitled to the default process set forth in IC 25-43.5-12. 9 (c) If any member state is later found to be in default, or is 10 terminated or withdraws from the compact, the commission shall 11 remain in existence and the compact shall remain in effect even if 12 the number of member states should be less than seven (7). 13 (d) Member states enacting the compact subsequent to the 14 charter member states shall be subject to the process set forth in 15 IC 25-43.5-9-3(24) to determine if their enactments are materially 16 different from the model compact statute and whether they qualify 17 for participation in the compact. 18 (e) All actions taken for the benefit of the commission or in 19 furtherance of the purposes of the administration of the compact 20 prior to the effective date of the compact or the commission coming 21 into existence shall be considered to be actions of the commission 22 unless specifically repudiated by the commission. 23 (f) Any state that joins the compact shall be subject to the 24 commission's rules and bylaws as they exist on the date on which 25 the compact becomes law in that state. Any rule that has been 26 previously adopted by the commission shall have the full force and 27 effect of law on the day the compact becomes law in that state. 28 Sec. 3. (a) Any member state may withdraw from this compact 29 by enacting a statute repealing that state's enactment of the 30 compact. 31 (b) A member state's withdrawal shall not take effect until one 32 hundred eighty (180) days after enactment of the repealing statute. 33 (c) Withdrawal shall not affect the continuing requirement of 34 the withdrawing state's state licensing authority to comply with the 35 investigative and adverse action reporting requirements of this 36 compact prior to the effective date of withdrawal. 37 (d) Upon the enactment of a statute withdrawing from this 38 compact, a state shall immediately provide notice of such 39 withdrawal to all licensees within that state. Notwithstanding any 40 subsequent statutory enactment to the contrary, the withdrawing 41 state shall continue to recognize all licenses granted pursuant to 42 this compact for a minimum of one hundred eighty (180) days after HB 1135—LS 6528/DI 153 30 1 the date of the notice of withdrawal. 2 Sec. 4. Nothing contained in this compact shall be construed to 3 invalidate or prevent any licensure agreement or other cooperative 4 arrangement between a member state and a nonmember state that 5 does not conflict with the provisions of this compact. 6 Sec. 5. This compact may be amended by the member states. No 7 amendment to this compact shall become effective and binding 8 upon any member state until it is enacted into the laws of all 9 member states. 10 Chapter 14. Construction and Severability 11 Sec. 1. The compact and the commission's rulemaking authority 12 shall be liberally construed so as to effectuate the purposes, and the 13 implementation and administration of the compact. Provisions of 14 the compact expressly authorizing or requiring the promulgation 15 of rules shall not be construed to limit the commission's 16 rulemaking authority solely for those purposes. 17 Sec. 2. The provisions of this compact shall be severable and if 18 any phrase, clause, sentence, or provision of this compact is held by 19 a court of competent jurisdiction to be contrary to the constitution 20 of any member state, a state seeking participation in the compact, 21 or of the United States, or the applicability thereof to any 22 government, agency, person, or circumstance is held to be 23 unconstitutional by a court of competent jurisdiction, the validity 24 of the remainder of this compact and the applicability thereof to 25 any other government, agency, person, or circumstance shall not 26 be affected thereby. 27 Sec. 3. Notwithstanding section 2 of this chapter, the commission 28 may deny a state's participation in the compact or, in accordance 29 with the requirements of IC 25-43.5-12, terminate a member state's 30 participation in the compact, if it determines that a constitutional 31 requirement of a member state is a material departure from the 32 compact. Otherwise, if this compact shall be held to be contrary to 33 the constitution of any member state, the compact shall remain in 34 full force and effect as to the remaining member states and in full 35 force and effect as to the member state affected as to all severable 36 matters. 37 Chapter 15. Consistent Effect and Conflict with Other State 38 Laws 39 Sec. 1. (a) Nothing in this article shall prevent or inhibit the 40 enforcement of any other law of a member state that is not 41 inconsistent with the compact. 42 (b) Any laws, statutes, regulations, or other legal requirements HB 1135—LS 6528/DI 153 31 1 in a member state in conflict with the compact are superseded to 2 the extent of the conflict. 3 (c) All permissible agreements between the commission and the 4 member states are binding in accordance with their terms. 5 SECTION 12. IC 34-30-2.1-391.7 IS ADDED TO THE INDIANA 6 CODE AS A NEW SECTION TO READ AS FOLLOWS 7 [EFFECTIVE JULY 1, 2024]: Sec. 391.7. IC 25-43.5-9-9 (Concerning 8 the members, officers, executive director, employees, and 9 representatives of the cosmetology licensure compact commission). HB 1135—LS 6528/DI 153 32 COMMITTEE REPORT Mr. Speaker: Your Committee on Employment, Labor and Pensions, to which was referred House Bill 1135, has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill be amended as follows: Page 5, after line 41, begin a new paragraph and insert: "SECTION 10. IC 25-43.5 IS ADDED TO THE INDIANA CODE AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]: ARTICLE 43.5. COSMETOLOGY LICENSURE COMPACT Chapter 1. Purpose Sec. 1. 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 states, while ensuring the provision of safe, effective, and reliable services to the public. Sec. 2. This compact is designed to achieve the following objectives, and the member states hereby ratify the same intentions by adopting this compact: (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. Chapter 2. Definitions Sec. 0.5. The definitions in this chapter apply throughout this article, unless the context requires otherwise. HB 1135—LS 6528/DI 153 33 Sec. 1. "Active 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. Sec. 2. "Adverse 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. Sec. 3. "Alternative program" means a nondisciplinary monitoring or prosecutorial diversion program approved by a member state's state licensing authority. Sec. 4. "Authorization to practice" means 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. Sec. 5. "Background 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. Sec. 6. "Charter member state" means a member state that has enacted legislation to adopt this compact where such legislation predates the effective date of this compact as defined in IC 25-43.5-13. Sec. 7. "Commission" means 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 IC 25-43.5-9, and which shall operate as an instrumentality of the member states. Sec. 8. "Cosmetologist" means an individual licensed in their home state to practice cosmetology. Sec. 9. "Cosmetology", "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. Sec. 10. "Current significant investigative information" means HB 1135—LS 6528/DI 153 34 investigative information that: (1) 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) 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. Sec. 11. "Data system" means a repository of information about licensees, including, but not limited to, license status, investigative information, and adverse actions. Sec. 12. "Disqualifying event" means any event which shall disqualify an individual from holding a multistate license under this compact, which the commission may by rule or order specify. Sec. 13. "Encumbered license" means a license in which an adverse action restricts the practice of cosmetology by a licensee, or where the adverse action has been reported to the commission. Sec. 14. "Encumbrance" means a revocation or suspension of, or any limitation on, the full and unrestricted practice of cosmetology by a state licensing authority. Sec. 15. "Executive committee" means a group of delegates elected or appointed to act on behalf of, and within the powers granted to them by, the commission. Sec. 16. "Home 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. Sec. 17. "Investigative information" means information, records, or documents received or generated by a state licensing authority pursuant to an investigation or other inquiry. Sec. 18. "Jurisprudence requirement" means the assessment of an individual's knowledge of the laws and rules governing the practice of cosmetology in a state. Sec. 19. "Licensee" means an individual who currently holds a license from a member state to practice as a cosmetologist. Sec. 20. "Member state" means any state that has adopted this compact. Sec. 21. "Multistate 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 HB 1135—LS 6528/DI 153 35 practice cosmetology in all remote states pursuant to this compact. Sec. 22. "Remote state" means any member state, other than the licensee's home state. Sec. 23. "Rule" means any rule or regulation promulgated by the commission under this compact which has the force of law. Sec. 24. "Single-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. Sec. 25. "State" means a state, territory, or possession of the United States and the District of Columbia. Sec. 26. "State licensing authority" means a member state's regulatory body responsible for issuing cosmetology licenses or otherwise overseeing the practice of cosmetology in that state. Chapter 3. Member State Requirements Sec. 1. To be eligible to join this compact, and to maintain eligibility as a member state, a state must: (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 training requirements in cosmetology prior to being licensed to provide cosmetology services to the public in that state; (5) implement procedures for considering one (1) 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 in this article; (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 HB 1135—LS 6528/DI 153 36 possession regarding a licensee practicing in that state; (9) comply with rules enacted by the commission to administer the compact; and (10) accept licensees from other member states as established in this article. Sec. 2. Member states may charge a fee for granting a license to practice cosmetology. Sec. 3. 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 shall not be recognized as granting a multistate license to provide services in any other member state. Sec. 4. Nothing in this compact shall affect the requirements established by a member state for the issuance of a single-state license. Sec. 5. 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. Sec. 6. 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. Chapter 4. Multistate License Sec. 1. To 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. Sec. 2. 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. Sec. 3. 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 the application shall, within a reasonable time, grant a multistate license to that applicant, and inform all member states of the grant of the multistate license. Sec. 4. 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 of cosmetology as HB 1135—LS 6528/DI 153 37 though that licensee held a single-state license to do so in each member state, subject to the restrictions in this article. Sec. 5. 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. Sec. 6. To maintain a multistate license under this compact, a licensee must: (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; and (3) comply with any and all other requirements regarding multistate licenses which the commission may by rule provide. Sec. 7. A licensee practicing in a member state is subject to all scope of practice laws governing cosmetology services in that state. Sec. 8. The 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. Chapter 5. Reissuance of a Multistate License by a New Home State Sec. 1. A licensee may hold a multistate license, issued by their home state, in only one (1) member state at any given time. Sec. 2. If a licensee changes their home state by moving between two (2) member states, the following apply: (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) 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 will 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 HB 1135—LS 6528/DI 153 38 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) 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. Sec. 3. If a licensee changes their primary state of residence by moving from a member state to a nonmember state, or from a nonmember 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. Sec. 4. 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 (1) home state and only one (1) multistate license. Sec. 5. Nothing in this compact shall interfere with the requirements established by a member state for the issuance of a single-state license. Chapter 6. Authority of the Compact Commission and Member State Licensing Authorities Sec. 1. Nothing 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 those laws, regulations, or other rules are not inconsistent with the provisions of this compact. Sec. 2. 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 the provisions of this compact. Sec. 3. 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 such adverse action to the other member states through the data system in addition to any other methods the commission may by rule require. Chapter 7. Adverse Actions HB 1135—LS 6528/DI 153 39 Sec. 1. 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. Sec. 2. 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. Sec. 3. In addition to the powers conferred by state law, each remote state's state licensing authority shall have the power to do 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 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 the home state 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) 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 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 in this article. (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 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 HB 1135—LS 6528/DI 153 40 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. Sec. 4. A licensee's home state shall complete any pending investigation of a cosmetologist who changes their 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. Sec. 5. 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. Sec. 6. 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 licensee's participation in any alternative program. Sec. 7. (a) 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. (b) Member states shall share any investigative, litigation, or compliance materials in furtherance of any joint or individual investigation initiated under the compact. Chapter 8. Active Military Members and Their Spouses Sec. 1. Active 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. Chapter 9. Establishment and Operation of the Cosmetology Licensure Compact Commission HB 1135—LS 6528/DI 153 41 Sec. 1. The compact member states 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 (1) state. The commission shall come into existence on or after the effective date of the compact as set forth in IC 25-43.5-13. Sec. 2. (a) Each member state shall have and be limited to one (1) delegate selected by that member state's state licensing authority. (b) The delegate shall be an administrator of the state licensing authority of the member state or their designee. (c) The commission shall by rule or bylaw establish a term of office for delegates and may by rule or bylaw establish term limits. (d) The commission may recommend removal or suspension of any delegate from office. (e) A member state's state licensing authority shall fill any vacancy of its delegate occurring on the commission within sixty (60) days of the vacancy. (f) Each delegate shall be entitled to one (1) vote on all matters that are voted on by the commission. (g) 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. Sec. 3. The commission shall have the following powers: (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 such actions as are consistent with the provisions of this compact, 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 HB 1135—LS 6528/DI 153 42 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 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) 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 in this article 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 such a 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 items or services. At all times the commission shall avoid any appearance of impropriety or conflict of interest when accepting, receiving, utilizing, or disposing of the items or services. (15) Lease, purchase, retain, own, hold, improve, or use any property, real, personal, or mixed, or any undivided interest in the property. (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 persons designated in this compact and the bylaws. (20) Provide and receive information from, and cooperate with, law enforcement agencies. HB 1135—LS 6528/DI 153 43 (21) Elect a chair, vice chair, secretary, and 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 member 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 necessary or appropriate to achieve the purposes of this compact. Sec. 4. (a) 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: (1) overseeing 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 duties deemed necessary; (2) 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; (3) ensuring compact administration services are appropriately provided, including by contract; (4) preparing and recommending the budget; (5) maintaining financial records on behalf of the commission; (6) monitoring compact compliance of member states and providing compliance reports to the commission; (7) establishing additional committees as necessary; (8) exercising 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 (9) other duties as provided in the rules or bylaws of the commission. (b) The executive committee shall be composed of up to seven (7) voting members as follows: (1) The chair and vice chair of the commission and any other HB 1135—LS 6528/DI 153 44 members of the commission who serve on the executive committee shall be voting members of the executive committee; and (2) Other than the chair, vice chair, secretary, and treasurer, the commission shall elect three (3) voting members from the current membership of the commission. (3) 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 chapter. (c) The commission may remove any member of the executive committee as provided in the commission's bylaws. Sec. 5. (a) The executive committee shall meet at least annually. (b) Annual 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, nonpublic session of a public meeting when dealing with any of the matters covered under section 7(d) of this chapter. (c) The executive committee shall give five (5) business days advance notice of its public meetings, posted on its website and as determined to provide notice to persons with an interest in the public matters the executive committee intends to address at those meetings. (d) The executive committee may hold an emergency meeting when acting for the commission to: (1) meet an imminent threat to public health, safety, or welfare; (2) prevent a loss of commission or member state funds; or (3) protect public health and safety. Sec. 6. The commission shall adopt and provide to the member states an annual report. Sec. 7. (a) All meetings of the commission that are not closed pursuant to this section shall be open to the public. Notice of public meetings shall be posted on the commission's website at least thirty (30) days prior to the public meeting. (b) Notwithstanding subsection (a), the commission may convene an emergency public meeting by providing at least HB 1135—LS 6528/DI 153 45 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 IC 25-43.5-11-4. The commission's legal counsel shall certify that one (1) of the reasons justifying an emergency public meeting has been met. (c) 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. (d) The commission may convene in a closed, nonpublic meeting for the commission to discuss: (1) noncompliance of a member state with its obligations under the compact; (2) 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; (3) current or threatened discipline of a licensee by the commission or by a member state's licensing authority; (4) current, threatened, or reasonably anticipated litigation; (5) negotiation of contracts for the purchase, lease, or sale of goods, services, or real estate; (6) accusing any person of a crime or formally censuring any person; (7) trade secrets or commercial or financial information that is privileged or confidential; (8) information of a personal nature where disclosure would constitute a clearly unwarranted invasion of personal privacy; (9) investigative records compiled for law enforcement purposes; (10) 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; (11) legal advice; (12) matters specifically exempted from disclosure to the public by federal or member state law; or (13) other matters as promulgated by the commission by rule. (e) If a meeting, or portion of a meeting, is closed, the presiding officer shall state that the meeting will be closed and reference each HB 1135—LS 6528/DI 153 46 relevant exempting provision, and such reference shall be recorded in the minutes. (f) 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. Sec. 8. (a) The commission shall pay, or provide for the payment of, the reasonable expenses of its establishment, organization, and ongoing activities. (b) The commission may accept any and all appropriate sources of revenue, donations, and grants of money, equipment, supplies, materials, and services. (c) 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 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. (d) The commission shall not incur obligations of any kind prior to securing the funds adequate to meet the obligations; nor shall the commission pledge the credit of any member states, except by and with the authority of the member state. (e) 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. Sec. 9. (a) 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, HB 1135—LS 6528/DI 153 47 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 subsection 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 shall not in any way compromise or limit the immunity granted under this section. (b) 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 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 subsection 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. (c) 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 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. (d) Nothing in this article 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. (e) 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 (15 U.S.C. 1 et seq.), Clayton Act (15 U.S.C. 12 et seq.), or any other state or federal antitrust or anticompetitive law HB 1135—LS 6528/DI 153 48 or regulation. (f) Nothing in this compact shall be construed to be a waiver of sovereign immunity by the member states or by the commission. Chapter 10. Data System Sec. 1. The commission shall provide for the development, maintenance, operation, and utilization of a coordinated database and reporting system. Sec. 2. The commission shall assign each applicant for a multistate license a unique identifier, as determined by the rules of the commission. Sec. 3. 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 to the adverse actions; (4) nonconfidential information related to alternative program participation, the beginning and ending dates of such participation, and other information related to such participation; (5) any denial of application for licensure, and the reason for such 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; 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. Sec. 4. 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. Sec. 5. The 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. HB 1135—LS 6528/DI 153 49 Sec. 6. It 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. Sec. 7. 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. Sec. 8. 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. Chapter 11. Rulemaking Sec. 1. (a) The commission shall promulgate reasonable rules in order to effectively and efficiently implement and administer the purposes and provisions of the 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 under the compact, or based upon another applicable standard of review. (b) The rules of the commission shall 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 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 chapter and the rules adopted under this chapter. 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 (4) years of the date of adoption of the rule, then such rule shall have no further force and effect in any member state or to any state applying to participate in the compact. Sec. 2. (a) Rules shall be adopted at a regular or special meeting of the commission. (b) Prior to adoption of a proposed rule, the commission shall hold a public hearing and allow persons to provide oral and HB 1135—LS 6528/DI 153 50 written comments, data, facts, opinions, and arguments. (c) Prior 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) on the website of the commission or other publicly accessible platform; (2) to persons who have requested notice of the commission's notices of proposed rulemaking; and (3) in such other way as the commission may by rule specify. (d) The notice of proposed rulemaking shall include: (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 for the proposed rule; (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. (e) All 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. Sec. 3. (a) Nothing in this chapter 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 chapter. (b) The 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. (c) The commission may adopt changes to the proposed rule provided the changes do not enlarge the original purpose of the proposed rule. (d) 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 HB 1135—LS 6528/DI 153 51 by commenters. (e) The commission shall determine a reasonable effective date for the rule. Except for an emergency as provided in section 4 of this chapter, the effective date of the rule shall be no earlier than forty-five (45) days after the commission issuing the notice that it adopted or amended the rule. Sec. 4. Upon 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 chapter 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. For the purposes of this provision, an emergency rule is one that must be adopted immediately to: (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 promulgation of a rule that is established by federal law or rule; or (4) protect public health and safety. Sec. 5. 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 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. Sec. 6. No member state's rulemaking requirements shall apply under this compact. Chapter 12. Oversight, Dispute Resolution, and Enforcement Sec. 1. (a) 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. (b) Venue is proper and judicial proceedings by or against the commission shall be brought solely and exclusively in a court of HB 1135—LS 6528/DI 153 52 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 in this subsection shall affect or limit the selection or propriety of venue in any action against a licensee for professional malpractice, misconduct or any such similar matter. (c) The commission shall be entitled to receive service of process in any proceeding regarding the enforcement 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 shall render a judgment or order void as to the commission, this compact, or promulgated rules. Sec. 2. (a) 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. (b) The commission shall provide a copy of the notice of default to the other member states. (c) 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. (d) 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. (e) 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. (f) Upon the termination of a state's membership from this HB 1135—LS 6528/DI 153 53 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 the notice of termination. (g) 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. (h) 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 such litigation, including reasonable attorney's fees. Sec. 3. (a) 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 nonmember states. (b) The commission shall promulgate a rule providing for both mediation and binding dispute resolution for disputes as appropriate. Sec. 4. (a) The commission, in the reasonable exercise of its discretion, shall enforce the provisions of this compact and the commission's rules. (b) By 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 in this section 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. (c) 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 HB 1135—LS 6528/DI 153 54 enforcement is necessary, the prevailing party shall be awarded all costs of such litigation, including reasonable attorney's fees. (d) No individual or entity other than a member state may enforce this compact against the commission. Chapter 13. Effective Date, Withdrawal, and Amendment Sec. 1. The compact shall come into effect on the date on which the compact statute is enacted into law in the seventh member state. Sec. 2. (a) On 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. (b) 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 IC 25-43.5-12. (c) 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 (7). (d) Member states enacting the compact subsequent to the charter member states shall be subject to the process set forth in IC 25-43.5-9-3(24) to determine if their enactments are materially different from the model compact statute and whether they qualify for participation in the compact. (e) 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. (f) 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 full force and effect of law on the day the compact becomes law in that state. Sec. 3. (a) Any member state may withdraw from this compact by enacting a statute repealing that state's enactment of the compact. (b) A member state's withdrawal shall not take effect until one hundred eighty (180) days after enactment of the repealing statute. (c) Withdrawal shall not affect the continuing requirement of the withdrawing state's state licensing authority to comply with the HB 1135—LS 6528/DI 153 55 investigative and adverse action reporting requirements of this compact prior to the effective date of withdrawal. (d) Upon 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, the 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 the notice of withdrawal. Sec. 4. 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 nonmember state that does not conflict with the provisions of this compact. Sec. 5. 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. Chapter 14. Construction and Severability Sec. 1. The 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. Sec. 2. 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, 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. Sec. 3. Notwithstanding section 2 of this chapter, the commission may deny a state's participation in the compact or, in accordance with the requirements of IC 25-43.5-12, 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 HB 1135—LS 6528/DI 153 56 force and effect as to the member state affected as to all severable matters. Chapter 15. Consistent Effect and Conflict with Other State Laws Sec. 1. (a) Nothing in this article shall prevent or inhibit the enforcement of any other law of a member state that is not inconsistent with the compact. (b) Any laws, statutes, regulations, or other legal requirements in a member state in conflict with the 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 11. IC 34-30-2.1-391.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 391.7. IC 25-43.5-9-9 (Concerning the members, officers, executive director, employees, and representatives of the cosmetology licensure compact commission).". Renumber all SECTIONS consecutively. and when so amended that said bill do pass. (Reference is to HB 1135 as introduced.) VANNATTER Committee Vote: yeas 9, nays 3. _____ COMMITTEE REPORT Mr. Speaker: Your Committee on Ways and Means, to which was referred House Bill 1135, has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill be amended as follows: Page 2, line 5, strike "and". Page 2, line 6, after "schools;" insert "and (C) apprenticeship programs;". Page 2, delete line 39, begin a new line block indented and insert: "(2) A statement that the cosmetologist has at least five (5) years of salon experience. (3) A statement that the cosmetologist has completed a one hundred (100) hour methodology course. HB 1135—LS 6528/DI 153 57 (4) A statement that the cosmetologist has successfully passed the state PSI cosmetology test.". Page 2, line 40, delete "(3)" and insert "(5)". Page 2, line 42, delete "(4)" and insert "(6)". Page 3, delete lines 8 through 12, begin a new line block indented and insert: "(2) Ensure that the apprentice will not perform licensed regulated work on the general public until the after apprentice has received two hundred (200) hours of technical training.". Page 3, delete lines 19 through 23, begin a new paragraph and insert: "(e) A cosmetologist may not train more than two (2) apprentices at any time. Each cosmetologist establishment may not have more than: (1) six (6) apprentices as any time; or (2) three (3) approved cosmetologist licensing apprentices at any time.". Page 3, between lines 28 and 29, begin a new paragraph and insert: "(g) A cosmetology apprentice must complete one thousand five hundred (1,500) hours of instruction and training which must be completed in two (2) years. (h) A cosmetology apprentice may: (1) transfer to a beauty culture school; and (2) use each one hour of credit that the cosmetology apprentice has earned prior to the transfer to the beauty culture school as one half (1/2) of an hour of credit at the beauty culture school. (i) A cosmetology apprenticeship program approval must be renewed every five (5) years with the board.". Page 4, between lines 5 and 6, begin a new paragraph and insert: "SECTION 1. IC 25-8-6-3, AS AMENDED BY P.L.170-2013, SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. (a) The application described in section 2 of this chapter must state that the applicant: (1) is at least eighteen (18) years of age; (2) has graduated from high school or received the equivalent of a high school education; (3) holds a cosmetologist, an electrologist, a manicurist, a barber, or an esthetician license issued under this article; (4) has completed the education and experience requirements, subject to subsection (b) and the rules adopted by the board; HB 1135—LS 6528/DI 153 58 (5) has not committed an act for which the applicant could be disciplined under IC 25-8-14; (6) has received a satisfactory grade (as described in IC 25-8-4-9) on an examination for instructor license applicants prescribed by the board; and (7) has paid the fee set forth in IC 25-8-13-4 for the issuance of a license under this chapter. (b) In addition to the requirements under subsection (a) and this chapter, an applicant for a cosmetologist instructor license must state that the applicant has completed at least one hundred (100) hours of methodology.". Renumber all SECTIONS consecutively. and when so amended that said bill do pass. (Reference is to HB 1135 as printed January 18, 2024.) THOMPSON Committee Vote: yeas 22, nays 1. _____ HOUSE MOTION Mr. Speaker: I move that House Bill 1135 be amended to read as follows: Page 3, line 3, delete "PSI cosmetology test." and insert "board approved methodology test.". Page 3, line 15, delete "until the after" and insert "until after the". Page 3, line 27, delete "as" and insert "at". Page 3, line 40, after "one" insert "(1)". Page 3, line 42, delete "one half" and insert "one-half". Page 4, line 42, delete "cosmetologist" and insert "beauty culture". Page 5, line 2, after "methodology." insert "An applicant for a beauty culture instructor license is not required to complete any methodology in excess of one hundred (100) hours.". Page 6, line 11, after "provided" insert "in". Renumber all SECTIONS consecutively. (Reference is to HB 1135 as printed January 25, 2024.) WESCO HB 1135—LS 6528/DI 153