Introduced Version
HOUSE BILL No. 1319
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 25-43.5; IC 34-30-2.1-391.7.
Synopsis: Cosmetology licensure compact. 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.
Effective: July 1, 2024.
Miller D
January 10, 2024, read first time and referred to Committee on Employment, Labor and
Pensions.
2024 IN 1319—LS 6255/DI 153 Introduced
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. 1319
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 25-43.5 IS ADDED TO THE INDIANA CODE AS
2 A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
3 2024]:
4 ARTICLE 43.5. COSMETOLOGY LICENSURE COMPACT
5 Chapter 1. Purpose
6 Sec. 1. The purpose of this compact is to facilitate the interstate
7 practice and regulation of cosmetology with the goal of improving
8 public access to, and the safety of, cosmetology services and
9 reducing unnecessary burdens related to cosmetology licensure.
10 Through this compact, the member states seek to establish a
11 regulatory framework which provides for a new multistate
12 licensing program. Through this new licensing program, the
13 member states seek to provide increased value and mobility to
14 licensed cosmetologists in the member states, while ensuring the
15 provision of safe, effective, and reliable services to the public.
16 Sec. 2. This compact is designed to achieve the following
17 objectives, and the member states hereby ratify the same intentions
2024 IN 1319—LS 6255/DI 153 2
1 by adopting this compact:
2 (1) Provide opportunities for interstate practice by
3 cosmetologists who meet uniform requirements for multistate
4 licensure.
5 (2) Enhance the abilities of member states to protect public
6 health and safety and prevent fraud and unlicensed activity
7 within the profession.
8 (3) Ensure and encourage cooperation between member states
9 in the licensure and regulation of the practice of cosmetology.
10 (4) Support relocating military members and their spouses.
11 (5) Facilitate the exchange of information between member
12 states related to the licensure, investigation, and discipline of
13 the practice of cosmetology.
14 (6) Provide for the licensure and mobility of the workforce in
15 the profession, while addressing the shortage of workers and
16 lessening the associated burdens on the member states.
17 Chapter 2. Definitions
18 Sec. 0.5. The definitions in this chapter apply throughout this
19 article, unless the context requires otherwise.
20 Sec. 1. "Active military member" means any person with
21 full-time duty status in the armed forces of the United States,
22 including members of the national guard and reserve.
23 Sec. 2. "Adverse action" means any administrative, civil,
24 equitable, or criminal action permitted by a member state's laws
25 which is imposed by a state licensing authority or other regulatory
26 body against a cosmetologist, including actions against an
27 individual's license or authorization to practice such as revocation,
28 suspension, probation, monitoring of the licensee, limitation of the
29 licensee's practice, or any other encumbrance on a license affecting
30 an individual's ability to participate in the cosmetology industry,
31 including the issuance of a cease and desist order.
32 Sec. 3. "Alternative program" means a nondisciplinary
33 monitoring or prosecutorial diversion program approved by a
34 member state's state licensing authority.
35 Sec. 4. "Authorization to practice" means a legal authorization
36 associated with a multistate license permitting the practice of
37 cosmetology in that remote state, which shall be subject to the
38 enforcement jurisdiction of the state licensing authority in that
39 remote state.
40 Sec. 5. "Background check" means the submission of
41 information for an applicant for the purpose of obtaining that
42 applicant's criminal history record information, as further defined
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1 in 28 CFR 20.3(d), from the Federal Bureau of Investigation and
2 the agency responsible for retaining state criminal or disciplinary
3 history in the applicant's home state.
4 Sec. 6. "Charter member state" means a member state that has
5 enacted legislation to adopt this compact where such legislation
6 predates the effective date of this compact as defined in
7 IC 25-43.5-13.
8 Sec. 7. "Commission" means the government agency whose
9 membership consists of all states that have enacted this compact,
10 which is known as the cosmetology licensure compact commission,
11 as defined in IC 25-43.5-9, and which shall operate as an
12 instrumentality of the member states.
13 Sec. 8. "Cosmetologist" means an individual licensed in their
14 home state to practice cosmetology.
15 Sec. 9. "Cosmetology", "cosmetology services", and the
16 "practice of cosmetology" mean the care and services provided by
17 a cosmetologist as set forth in the member state's statutes and
18 regulations in the state where the services are being provided.
19 Sec. 10. "Current significant investigative information" means
20 investigative information that:
21 (1) a state licensing authority, after an inquiry or investigation
22 that complies with a member state's due process
23 requirements, has reason to believe is not groundless and, if
24 proved true, would indicate a violation of that state's laws
25 regarding fraud or the practice of cosmetology; or
26 (2) indicates that a licensee has engaged in fraud or represents
27 an immediate threat to public health and safety, regardless of
28 whether the licensee has been notified and had an opportunity
29 to respond.
30 Sec. 11. "Data system" means a repository of information about
31 licensees, including, but not limited to, license status, investigative
32 information, and adverse actions.
33 Sec. 12. "Disqualifying event" means any event which shall
34 disqualify an individual from holding a multistate license under
35 this compact, which the commission may by rule or order specify.
36 Sec. 13. "Encumbered license" means a license in which an
37 adverse action restricts the practice of cosmetology by a licensee,
38 or where the adverse action has been reported to the commission.
39 Sec. 14. "Encumbrance" means a revocation or suspension of,
40 or any limitation on, the full and unrestricted practice of
41 cosmetology by a state licensing authority.
42 Sec. 15. "Executive committee" means a group of delegates
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1 elected or appointed to act on behalf of, and within the powers
2 granted to them by, the commission.
3 Sec. 16. "Home state" means the member state which is a
4 licensee's primary state of residence, and where that licensee holds
5 an active and unencumbered license to practice cosmetology.
6 Sec. 17. "Investigative information" means information,
7 records, or documents received or generated by a state licensing
8 authority pursuant to an investigation or other inquiry.
9 Sec. 18. "Jurisprudence requirement" means the assessment of
10 an individual's knowledge of the laws and rules governing the
11 practice of cosmetology in a state.
12 Sec. 19. "Licensee" means an individual who currently holds a
13 license from a member state to practice as a cosmetologist.
14 Sec. 20. "Member state" means any state that has adopted this
15 compact.
16 Sec. 21. "Multistate license" means a license issued by and
17 subject to the enforcement jurisdiction of the state licensing
18 authority in a licensee's home state, which authorizes the practice
19 of cosmetology in member states and includes authorizations to
20 practice cosmetology in all remote states pursuant to this compact.
21 Sec. 22. "Remote state" means any member state, other than the
22 licensee's home state.
23 Sec. 23. "Rule" means any rule or regulation promulgated by
24 the commission under this compact which has the force of law.
25 Sec. 24. "Single-state license" means a cosmetology license
26 issued by a member state that authorizes practice of cosmetology
27 only within the issuing state and does not include any authorization
28 outside of the issuing state.
29 Sec. 25. "State" means a state, territory, or possession of the
30 United States and the District of Columbia.
31 Sec. 26. "State licensing authority" means a member state's
32 regulatory body responsible for issuing cosmetology licenses or
33 otherwise overseeing the practice of cosmetology in that state.
34 Chapter 3. Member State Requirements
35 Sec. 1. To be eligible to join this compact, and to maintain
36 eligibility as a member state, a state must:
37 (1) license and regulate cosmetology;
38 (2) have a mechanism or entity in place to receive and
39 investigate complaints about licensees practicing in that state;
40 (3) require that licensees within the state pass a cosmetology
41 competency examination prior to being licensed to provide
42 cosmetology services to the public in that state;
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1 (4) require that licensees satisfy educational or training
2 requirements in cosmetology prior to being licensed to
3 provide cosmetology services to the public in that state;
4 (5) implement procedures for considering one (1) or more of
5 the following categories of information from applicants for
6 licensure: criminal history; disciplinary history; or
7 background check. Such procedures may include the
8 submission of information by applicants for the purpose of
9 obtaining an applicant's background check as defined in this
10 article;
11 (6) participate in the data system, including through the use
12 of unique identifying numbers;
13 (7) share information related to adverse actions with the
14 commission and other member states, both through the data
15 system and otherwise;
16 (8) notify the commission and other member states, in
17 compliance with the terms of the compact and rules of the
18 commission, of the existence of investigative information or
19 current significant investigative information in the state's
20 possession regarding a licensee practicing in that state;
21 (9) comply with rules enacted by the commission to
22 administer the compact; and
23 (10) accept licensees from other member states as established
24 in this article.
25 Sec. 2. Member states may charge a fee for granting a license to
26 practice cosmetology.
27 Sec. 3. Individuals not residing in a member state shall continue
28 to be able to apply for a member state's single-state license as
29 provided under the laws of each member state. However, the
30 single-state license granted to these individuals shall not be
31 recognized as granting a multistate license to provide services in
32 any other member state.
33 Sec. 4. Nothing in this compact shall affect the requirements
34 established by a member state for the issuance of a single-state
35 license.
36 Sec. 5. A multistate license issued to a licensee by a home state
37 to a resident of that state shall be recognized by each member state
38 as authorizing a licensee to practice cosmetology in each member
39 state.
40 Sec. 6. At no point shall the commission have the power to
41 define the educational or professional requirements for a license to
42 practice cosmetology. The member states shall retain sole
2024 IN 1319—LS 6255/DI 153 6
1 jurisdiction over the provision of these requirements.
2 Chapter 4. Multistate License
3 Sec. 1. To be eligible to apply to their home state's state licensing
4 authority for an initial multistate license under this compact, a
5 licensee must hold an active and unencumbered single-state license
6 to practice cosmetology in their home state.
7 Sec. 2. Upon the receipt of an application for a multistate
8 license, according to the rules of the commission, a member state's
9 state licensing authority shall ascertain whether the applicant
10 meets the requirements for a multistate license under this compact.
11 Sec. 3. If an applicant meets the requirements for a multistate
12 license under this compact and any applicable rules of the
13 commission, the state licensing authority in receipt of the
14 application shall, within a reasonable time, grant a multistate
15 license to that applicant, and inform all member states of the grant
16 of the multistate license.
17 Sec. 4. A multistate license to practice cosmetology issued by a
18 member state's state licensing authority shall be recognized by
19 each member state as authorizing the practice of cosmetology as
20 though that licensee held a single-state license to do so in each
21 member state, subject to the restrictions in this article.
22 Sec. 5. A multistate license granted pursuant to this compact
23 may be effective for a definite period of time, concurrent with the
24 licensure renewal period in the home state.
25 Sec. 6. To maintain a multistate license under this compact, a
26 licensee must:
27 (1) agree to abide by the rules of the state licensing authority,
28 and the state scope of practice laws governing the practice of
29 cosmetology, of any member state in which the licensee
30 provides services;
31 (2) pay all required fees related to the application and process,
32 and any other fees which the commission may by rule require;
33 and
34 (3) comply with any and all other requirements regarding
35 multistate licenses which the commission may by rule provide.
36 Sec. 7. A licensee practicing in a member state is subject to all
37 scope of practice laws governing cosmetology services in that state.
38 Sec. 8. The practice of cosmetology under a multistate license
39 granted pursuant to this compact will subject the licensee to the
40 jurisdiction of the state licensing authority, the courts, and the laws
41 of the member state in which the cosmetology services are
42 provided.
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1 Chapter 5. Reissuance of a Multistate License by a New Home
2 State
3 Sec. 1. A licensee may hold a multistate license, issued by their
4 home state, in only one (1) member state at any given time.
5 Sec. 2. If a licensee changes their home state by moving between
6 two (2) member states, the following apply:
7 (1) The licensee shall immediately apply for the reissuance of
8 their multistate license in their new home state. The licensee
9 shall pay all applicable fees and notify the prior home state in
10 accordance with the rules of the commission.
11 (2) Upon receipt of an application to reissue a multistate
12 license, the new home state shall verify that the multistate
13 license is active, unencumbered, and eligible for reissuance
14 under the terms of the compact and the rules of the
15 commission. The multistate license issued by the prior home
16 state will be deactivated and all member states notified in
17 accordance with the applicable rules adopted by the
18 commission.
19 (3) If required for initial licensure, the new home state may
20 require a background check as specified in the laws of that
21 state or the compliance with any jurisprudence requirements
22 of the new home state.
23 (4) Notwithstanding any other provision of this compact, if a
24 licensee does not meet the requirements set forth in this
25 compact for the reissuance of a multistate license by the new
26 home state, then the licensee shall be subject to the new home
27 state requirements for the issuance of a single-state license in
28 that state.
29 Sec. 3. If a licensee changes their primary state of residence by
30 moving from a member state to a nonmember state, or from a
31 nonmember state to a member state, then the licensee shall be
32 subject to the state requirements for the issuance of a single-state
33 license in the new home state.
34 Sec. 4. Nothing in this compact shall interfere with a licensee's
35 ability to hold a single-state license in multiple states. However, for
36 the purposes of this compact, a licensee shall have only one (1)
37 home state and only one (1) multistate license.
38 Sec. 5. Nothing in this compact shall interfere with the
39 requirements established by a member state for the issuance of a
40 single-state license.
41 Chapter 6. Authority of the Compact Commission and Member
42 State Licensing Authorities
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1 Sec. 1. Nothing in this compact, nor any rule or regulation of the
2 commission, shall be construed to limit, restrict, or in any way
3 reduce the ability of a member state to enact and enforce laws,
4 regulations, or other rules related to the practice of cosmetology in
5 that state, where those laws, regulations, or other rules are not
6 inconsistent with the provisions of this compact.
7 Sec. 2. Insofar as practical, a member state's state licensing
8 authority shall cooperate with the commission and with each entity
9 exercising independent regulatory authority over the practice of
10 cosmetology according to the provisions of this compact.
11 Sec. 3. Discipline shall be the sole responsibility of the state in
12 which cosmetology services are provided. Accordingly, each
13 member state's state licensing authority shall be responsible for
14 receiving complaints about individuals practicing cosmetology in
15 that state and for communicating all relevant investigative
16 information about any such adverse action to the other member
17 states through the data system in addition to any other methods the
18 commission may by rule require.
19 Chapter 7. Adverse Actions
20 Sec. 1. A licensee's home state shall have exclusive power to
21 impose an adverse action against a licensee's multistate license
22 issued by the home state.
23 Sec. 2. A home state may take adverse action on a multistate
24 license based on the investigative information, current significant
25 investigative information, or adverse action of a remote state.
26 Sec. 3. In addition to the powers conferred by state law, each
27 remote state's state licensing authority shall have the power to do
28 the following:
29 (1) Take adverse action against a licensee's authorization to
30 practice cosmetology through the multistate license in that
31 member state, provided that:
32 (A) only the licensee's home state shall have the power to
33 take adverse action against the multistate license issued by
34 the home state; and
35 (B) for the purposes of taking adverse action, the home
36 state's state licensing authority shall give the same priority
37 and effect to reported conduct received from a remote
38 state as the home state would if such conduct had occurred
39 within the home state. In so doing, the home state shall
40 apply its own state laws to determine the appropriate
41 action.
42 (2) Issue cease and desist orders or impose an encumbrance
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1 on a licensee's authorization to practice within that member
2 state.
3 (3) Complete any pending investigations of a licensee who
4 changes their primary state of residence during the course of
5 such an investigation. The state licensing authority shall also
6 be empowered to report the results of such an investigation to
7 the commission through the data system as described in this
8 article.
9 (4) Issue subpoenas for both hearings and investigations that
10 require the attendance and testimony of witnesses, as well as
11 the production of evidence. Subpoenas issued by a state
12 licensing authority in a member state for the attendance and
13 testimony of witnesses or the production of evidence from
14 another member state shall be enforced in the latter state by
15 any court of competent jurisdiction, according to the practice
16 and procedure of that court applicable to subpoenas issued in
17 proceedings before it. The issuing state licensing authority
18 shall pay any witness fees, travel expenses, mileage, and other
19 fees required by the service statutes of the state in which the
20 witnesses or evidence are located.
21 (5) If otherwise permitted by state law, recover from the
22 affected licensee the costs of investigations and disposition of
23 cases resulting from any adverse action taken against that
24 licensee.
25 (6) Take adverse action against the licensee's authorization to
26 practice in that state based on the factual findings of another
27 remote state.
28 Sec. 4. A licensee's home state shall complete any pending
29 investigation of a cosmetologist who changes their primary state of
30 residence during the course of the investigation. The home state
31 shall also have the authority to take appropriate action and shall
32 promptly report the conclusions of the investigations to the data
33 system.
34 Sec. 5. If an adverse action is taken by the home state against a
35 licensee's multistate license, the licensee's authorization to practice
36 in all other member states shall be deactivated until all
37 encumbrances have been removed from the home state license. All
38 home state disciplinary orders that impose an adverse action
39 against a licensee's multistate license shall include a statement that
40 the cosmetologist's authorization to practice is deactivated in all
41 member states during the pendency of the order.
42 Sec. 6. Nothing in this compact shall override a member state's
2024 IN 1319—LS 6255/DI 153 10
1 authority to accept a licensee's participation in an alternative
2 program in lieu of adverse action. A licensee's multistate license
3 shall be suspended for the duration of the licensee's participation
4 in any alternative program.
5 Sec. 7. (a) In addition to the authority granted to a member state
6 by its respective scope of practice laws or other applicable state
7 law, a member state may participate with other member states in
8 joint investigations of licensees.
9 (b) Member states shall share any investigative, litigation, or
10 compliance materials in furtherance of any joint or individual
11 investigation initiated under the compact.
12 Chapter 8. Active Military Members and Their Spouses
13 Sec. 1. Active military members, or their spouses, shall
14 designate a home state where the individual has a current license
15 to practice cosmetology in good standing. The individual may
16 retain their home state designation during any period of service
17 when that individual or their spouse is on active duty assignment.
18 Chapter 9. Establishment and Operation of the Cosmetology
19 Licensure Compact Commission
20 Sec. 1. The compact member states create and establish a joint
21 government agency whose membership consists of all member
22 states that have enacted the compact known as the cosmetology
23 licensure compact commission. The commission is an
24 instrumentality of the compact member states acting jointly and
25 not an instrumentality of any one (1) state. The commission shall
26 come into existence on or after the effective date of the compact as
27 set forth in IC 25-43.5-13.
28 Sec. 2. (a) Each member state shall have and be limited to one
29 (1) delegate selected by that member state's state licensing
30 authority.
31 (b) The delegate shall be an administrator of the state licensing
32 authority of the member state or their designee.
33 (c) The commission shall by rule or bylaw establish a term of
34 office for delegates and may by rule or bylaw establish term limits.
35 (d) The commission may recommend removal or suspension of
36 any delegate from office.
37 (e) A member state's state licensing authority shall fill any
38 vacancy of its delegate occurring on the commission within sixty
39 (60) days of the vacancy.
40 (f) Each delegate shall be entitled to one (1) vote on all matters
41 that are voted on by the commission.
42 (g) The commission shall meet at least once during each
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1 calendar year. Additional meetings may be held as set forth in the
2 bylaws. The commission may meet by telecommunication, video
3 conference, or other similar electronic means.
4 Sec. 3. The commission shall have the following powers:
5 (1) Establish the fiscal year of the commission.
6 (2) Establish code of conduct and conflict of interest policies.
7 (3) Adopt rules and bylaws.
8 (4) Maintain its financial records in accordance with the
9 bylaws.
10 (5) Meet and take such actions as are consistent with the
11 provisions of this compact, the commission's rules, and the
12 bylaws.
13 (6) Initiate and conclude legal proceedings or actions in the
14 name of the commission, provided that the standing of any
15 state licensing authority to sue or be sued under applicable
16 law shall not be affected.
17 (7) Maintain and certify records and information provided to
18 a member state as the authenticated business records of the
19 commission, and designate an agent to do so on the
20 commission's behalf.
21 (8) Purchase and maintain insurance and bonds.
22 (9) Borrow, accept, or contract for services of personnel,
23 including, but not limited to, employees of a member state.
24 (10) Conduct an annual financial review.
25 (11) Hire employees, elect or appoint officers, fix
26 compensation, define duties, grant such individuals
27 appropriate authority to carry out the purposes of the
28 compact, and establish the commission's personnel policies
29 and programs relating to conflicts of interest, qualifications
30 of personnel, and other related personnel matters.
31 (12) As set forth in the commission rules, charge a fee to a
32 licensee for the grant of a multistate license and thereafter, as
33 may be established by commission rule, charge the licensee a
34 multistate license renewal fee for each renewal period.
35 Nothing in this article shall be construed to prevent a home
36 state from charging a licensee a fee for a multistate license or
37 renewals of a multistate license, or a fee for the jurisprudence
38 requirement if the member state imposes such a requirement
39 for the grant of a multistate license.
40 (13) Assess and collect fees.
41 (14) Accept any and all appropriate gifts, donations, grants of
42 money, other sources of revenue, equipment, supplies,
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1 materials, and services, and receive, utilize, and dispose of the
2 items or services. At all times the commission shall avoid any
3 appearance of impropriety or conflict of interest when
4 accepting, receiving, utilizing, or disposing of the items or
5 services.
6 (15) Lease, purchase, retain, own, hold, improve, or use any
7 property, real, personal, or mixed, or any undivided interest
8 in the property.
9 (16) Sell, convey, mortgage, pledge, lease, exchange, abandon,
10 or otherwise dispose of any property real, personal, or mixed.
11 (17) Establish a budget and make expenditures.
12 (18) Borrow money.
13 (19) Appoint committees, including standing committees,
14 composed of members, state regulators, state legislators or
15 their representatives, and consumer representatives, and
16 other interested persons designated in this compact and the
17 bylaws.
18 (20) Provide and receive information from, and cooperate
19 with, law enforcement agencies.
20 (21) Elect a chair, vice chair, secretary, and treasurer and
21 other officers of the commission as provided in the
22 commission's bylaws.
23 (22) Establish and elect an executive committee, including a
24 chair and a vice chair.
25 (23) Adopt and provide to the member states an annual
26 report.
27 (24) Determine whether a state's adopted language is
28 materially different from the model compact language such
29 that the state would not qualify for participation in the
30 compact.
31 (25) Perform other functions necessary or appropriate to
32 achieve the purposes of this compact.
33 Sec. 4. (a) The executive committee shall have the power to act
34 on behalf of the commission according to the terms of this compact.
35 The powers, duties, and responsibilities of the executive committee
36 shall include:
37 (1) overseeing the day-to-day activities of the administration
38 of the compact including compliance with the provisions of
39 the compact, the commission's rules and bylaws, and other
40 duties deemed necessary;
41 (2) recommending to the commission changes to the rules or
42 bylaws, changes to this compact legislation, fees charged to
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1 compact member states, fees charged to licensees, and other
2 fees;
3 (3) ensuring compact administration services are
4 appropriately provided, including by contract;
5 (4) preparing and recommending the budget;
6 (5) maintaining financial records on behalf of the commission;
7 (6) monitoring compact compliance of member states and
8 providing compliance reports to the commission;
9 (7) establishing additional committees as necessary;
10 (8) exercising the powers and duties of the commission during
11 the interim between commission meetings, except for adopting
12 or amending rules, adopting or amending bylaws, and
13 exercising any other powers and duties expressly reserved to
14 the commission by rule or bylaw; and
15 (9) other duties as provided in the rules or bylaws of the
16 commission.
17 (b) The executive committee shall be composed of up to seven (7)
18 voting members as follows:
19 (1) The chair and vice chair of the commission and any other
20 members of the commission who serve on the executive
21 committee shall be voting members of the executive
22 committee; and
23 (2) Other than the chair, vice chair, secretary, and treasurer,
24 the commission shall elect three (3) voting members from the
25 current membership of the commission.
26 (3) The commission may elect ex officio, nonvoting members
27 from a recognized national cosmetology professional
28 association as approved by the commission. The commission's
29 bylaws shall identify qualifying organizations and the manner
30 of appointment if the number of organizations seeking to
31 appoint an ex officio member exceeds the number of members
32 specified in this chapter.
33 (c) The commission may remove any member of the executive
34 committee as provided in the commission's bylaws.
35 Sec. 5. (a) The executive committee shall meet at least annually.
36 (b) Annual executive committee meetings, as well as any
37 executive committee meeting at which it does not take or intend to
38 take formal action on a matter for which a commission vote would
39 otherwise be required, shall be open to the public, except that the
40 executive committee may meet in a closed, nonpublic session of a
41 public meeting when dealing with any of the matters covered under
42 section 7(d) of this chapter.
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1 (c) The executive committee shall give five (5) business days
2 advance notice of its public meetings, posted on its website and as
3 determined to provide notice to persons with an interest in the
4 public matters the executive committee intends to address at those
5 meetings.
6 (d) The executive committee may hold an emergency meeting
7 when acting for the commission to:
8 (1) meet an imminent threat to public health, safety, or
9 welfare;
10 (2) prevent a loss of commission or member state funds; or
11 (3) protect public health and safety.
12 Sec. 6. The commission shall adopt and provide to the member
13 states an annual report.
14 Sec. 7. (a) All meetings of the commission that are not closed
15 pursuant to this section shall be open to the public. Notice of public
16 meetings shall be posted on the commission's website at least thirty
17 (30) days prior to the public meeting.
18 (b) Notwithstanding subsection (a), the commission may
19 convene an emergency public meeting by providing at least
20 twenty-four (24) hours prior notice on the commission's website,
21 and any other means as provided in the commission's rules, for any
22 of the reasons it may dispense with notice of proposed rulemaking
23 under IC 25-43.5-11-4. The commission's legal counsel shall certify
24 that one (1) of the reasons justifying an emergency public meeting
25 has been met.
26 (c) Notice of all commission meetings shall provide the time,
27 date, and location of the meeting, and if the meeting is to be held or
28 accessible via telecommunication, video conference, or other
29 electronic means, the notice shall include the mechanism for access
30 to the meeting.
31 (d) The commission may convene in a closed, nonpublic meeting
32 for the commission to discuss:
33 (1) noncompliance of a member state with its obligations
34 under the compact;
35 (2) the employment, compensation, discipline or other
36 matters, practices, or procedures related to specific employees
37 or other matters related to the commission's internal
38 personnel practices and procedures;
39 (3) current or threatened discipline of a licensee by the
40 commission or by a member state's licensing authority;
41 (4) current, threatened, or reasonably anticipated litigation;
42 (5) negotiation of contracts for the purchase, lease, or sale of
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1 goods, services, or real estate;
2 (6) accusing any person of a crime or formally censuring any
3 person;
4 (7) trade secrets or commercial or financial information that
5 is privileged or confidential;
6 (8) information of a personal nature where disclosure would
7 constitute a clearly unwarranted invasion of personal privacy;
8 (9) investigative records compiled for law enforcement
9 purposes;
10 (10) information related to any investigative reports prepared
11 by or on behalf of or for use of the commission or other
12 committee charged with responsibility of investigation or
13 determination of compliance issues pursuant to the compact;
14 (11) legal advice;
15 (12) matters specifically exempted from disclosure to the
16 public by federal or member state law; or
17 (13) other matters as promulgated by the commission by rule.
18 (e) If a meeting, or portion of a meeting, is closed, the presiding
19 officer shall state that the meeting will be closed and reference each
20 relevant exempting provision, and such reference shall be recorded
21 in the minutes.
22 (f) The commission shall keep minutes that fully and clearly
23 describe all matters discussed in a meeting and shall provide a full
24 and accurate summary of actions taken, and the reasons therefore,
25 including a description of the views expressed. All documents
26 considered in connection with an action shall be identified in the
27 minutes. All minutes and documents of a closed meeting shall
28 remain under seal, subject to release only by a majority vote of the
29 commission or order of a court of competent jurisdiction.
30 Sec. 8. (a) The commission shall pay, or provide for the payment
31 of, the reasonable expenses of its establishment, organization, and
32 ongoing activities.
33 (b) The commission may accept any and all appropriate sources
34 of revenue, donations, and grants of money, equipment, supplies,
35 materials, and services.
36 (c) The commission may levy on and collect an annual
37 assessment from each member state and impose fees on licensees
38 of member states to whom it grants a multistate license to cover the
39 cost of the operations and activities of the commission and its staff,
40 which must be in a total amount sufficient to cover its annual
41 budget as approved each year for which revenue is not provided by
42 other sources. The aggregate annual assessment amount for
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1 member states shall be allocated based upon a formula that the
2 commission shall promulgate by rule.
3 (d) The commission shall not incur obligations of any kind prior
4 to securing the funds adequate to meet the obligations; nor shall
5 the commission pledge the credit of any member states, except by
6 and with the authority of the member state.
7 (e) The commission shall keep accurate accounts of all receipts
8 and disbursements. The receipts and disbursements of the
9 commission shall be subject to the financial review and accounting
10 procedures established under its bylaws. All receipts and
11 disbursements of funds handled by the commission shall be subject
12 to an annual financial review by a certified or licensed public
13 accountant, and the report of the financial review shall be included
14 in and become part of the annual report of the commission.
15 Sec. 9. (a) The members, officers, executive director, employees,
16 and representatives of the commission shall be immune from suit
17 and liability, both personally and in their official capacity, for any
18 claim for damage to or loss of property or personal injury or other
19 civil liability caused by or arising out of any actual or alleged act,
20 error, or omission that occurred, or that the person against whom
21 the claim is made had a reasonable basis for believing occurred
22 within the scope of commission employment, duties, or
23 responsibilities; provided that nothing in this subsection shall be
24 construed to protect any such person from suit or liability for any
25 damage, loss, injury, or liability caused by the intentional or willful
26 or wanton misconduct of that person. The procurement of
27 insurance of any type by the commission shall not in any way
28 compromise or limit the immunity granted under this section.
29 (b) The commission shall defend any member, officer, executive
30 director, employee, and representative of the commission in any
31 civil action seeking to impose liability arising out of any actual or
32 alleged act, error, or omission that occurred within the scope of
33 commission employment, duties, or responsibilities, or as
34 determined by the commission that the person against whom the
35 claim is made had a reasonable basis for believing occurred within
36 the scope of commission employment, duties, or responsibilities;
37 provided that nothing in this subsection shall be construed to
38 prohibit that person from retaining their own counsel at their own
39 expense; and provided further, that the actual or alleged act, error,
40 or omission did not result from that person's intentional or willful
41 or wanton misconduct.
42 (c) The commission shall indemnify and hold harmless any
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1 member, officer, executive director, employee, and representative
2 of the commission for the amount of any settlement or judgment
3 obtained against that person arising out of any actual or alleged
4 act, error, or omission that occurred within the scope of
5 commission employment, duties, or responsibilities, or that such
6 person had a reasonable basis for believing occurred within the
7 scope of commission employment, duties, or responsibilities,
8 provided that the actual or alleged act, error, or omission did not
9 result from the intentional or willful or wanton misconduct of that
10 person.
11 (d) Nothing in this article shall be construed as a limitation on
12 the liability of any licensee for professional malpractice or
13 misconduct, which shall be governed solely by any other applicable
14 state laws.
15 (e) Nothing in this compact shall be interpreted to waive or
16 otherwise abrogate a member state's state action immunity or state
17 action affirmative defense with respect to antitrust claims under
18 the Sherman Act (15 U.S.C. 1 et seq.), Clayton Act (15 U.S.C. 12 et
19 seq.), or any other state or federal antitrust or anticompetitive law
20 or regulation.
21 (f) Nothing in this compact shall be construed to be a waiver of
22 sovereign immunity by the member states or by the commission.
23 Chapter 10. Data System
24 Sec. 1. The commission shall provide for the development,
25 maintenance, operation, and utilization of a coordinated database
26 and reporting system.
27 Sec. 2. The commission shall assign each applicant for a
28 multistate license a unique identifier, as determined by the rules of
29 the commission.
30 Sec. 3. Notwithstanding any other provision of state law to the
31 contrary, a member state shall submit a uniform data set to the
32 data system on all individuals to whom this compact is applicable
33 as required by the rules of the commission, including:
34 (1) identifying information;
35 (2) licensure data;
36 (3) adverse actions against a license and information related
37 to the adverse actions;
38 (4) nonconfidential information related to alternative
39 program participation, the beginning and ending dates of such
40 participation, and other information related to such
41 participation;
42 (5) any denial of application for licensure, and the reason for
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1 such denial (excluding the reporting of any criminal history
2 record information where prohibited by law);
3 (6) the existence of investigative information;
4 (7) the existence of current significant investigative
5 information; and
6 (8) other information that may facilitate the administration of
7 this compact or the protection of the public, as determined by
8 the rules of the commission.
9 Sec. 4. The records and information provided to a member state
10 pursuant to this compact or through the data system, when
11 certified by the commission or an agent thereof, shall constitute the
12 authenticated business records of the commission, and shall be
13 entitled to any associated hearsay exception in any relevant
14 judicial, quasi-judicial, or administrative proceedings in a member
15 state.
16 Sec. 5. The existence of current significant investigative
17 information and the existence of investigative information
18 pertaining to a licensee in any member state will only be available
19 to other member states.
20 Sec. 6. It is the responsibility of the member states to monitor
21 the database to determine whether adverse action has been taken
22 against such a licensee or license applicant. Adverse action
23 information pertaining to a licensee or license applicant in any
24 member state will be available to any other member state.
25 Sec. 7. Member states contributing information to the data
26 system may designate information that may not be shared with the
27 public without the express permission of the contributing state.
28 Sec. 8. Any information submitted to the data system that is
29 subsequently expunged pursuant to federal law or the laws of the
30 member state contributing the information shall be removed from
31 the data system.
32 Chapter 11. Rulemaking
33 Sec. 1. (a) The commission shall promulgate reasonable rules in
34 order to effectively and efficiently implement and administer the
35 purposes and provisions of the compact. A rule shall be invalid and
36 have no force or effect only if a court of competent jurisdiction
37 holds that the rule is invalid because the commission exercised its
38 rulemaking authority in a manner that is beyond the scope and
39 purposes of the compact, or the powers granted under the compact,
40 or based upon another applicable standard of review.
41 (b) The rules of the commission shall have the force of law in
42 each member state, provided however that where the rules of the
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1 commission conflict with the laws of the member state that
2 establish the member state's scope of practice laws governing the
3 practice of cosmetology as held by a court of competent
4 jurisdiction, the rules of the commission shall be ineffective in that
5 state to the extent of the conflict.
6 (c) The commission shall exercise its rulemaking powers
7 pursuant to the criteria set forth in this chapter and the rules
8 adopted under this chapter. Rules shall become binding as of the
9 date specified by the commission for each rule.
10 (d) If a majority of the legislatures of the member states rejects
11 a rule or portion of a rule, by enactment of a statute or resolution
12 in the same manner used to adopt the compact within four (4)
13 years of the date of adoption of the rule, then such rule shall have
14 no further force and effect in any member state or to any state
15 applying to participate in the compact.
16 Sec. 2. (a) Rules shall be adopted at a regular or special meeting
17 of the commission.
18 (b) Prior to adoption of a proposed rule, the commission shall
19 hold a public hearing and allow persons to provide oral and
20 written comments, data, facts, opinions, and arguments.
21 (c) Prior to adoption of a proposed rule by the commission, and
22 at least thirty (30) days in advance of the meeting at which the
23 commission will hold a public hearing on the proposed rule, the
24 commission shall provide a notice of proposed rulemaking:
25 (1) on the website of the commission or other publicly
26 accessible platform;
27 (2) to persons who have requested notice of the commission's
28 notices of proposed rulemaking; and
29 (3) in such other way as the commission may by rule specify.
30 (d) The notice of proposed rulemaking shall include:
31 (1) the time, date, and location of the public hearing at which
32 the commission will hear public comments on the proposed
33 rule and, if different, the time, date, and location of the
34 meeting where the commission will consider and vote on the
35 proposed rule;
36 (2) if the hearing is held via telecommunication, video
37 conference, or other electronic means, the commission shall
38 include the mechanism for access to the hearing in the notice
39 of proposed rulemaking;
40 (3) the text of the proposed rule and the reason for the
41 proposed rule;
42 (4) a request for comments on the proposed rule from any
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1 interested person; and
2 (5) the manner in which interested persons may submit
3 written comments.
4 (e) All hearings will be recorded. A copy of the recording and all
5 written comments and documents received by the commission in
6 response to the proposed rule shall be available to the public.
7 Sec. 3. (a) Nothing in this chapter shall be construed as
8 requiring a separate hearing on each rule. Rules may be grouped
9 for the convenience of the commission at hearings required by this
10 chapter.
11 (b) The commission shall, by majority vote of all members, take
12 final action on the proposed rule based on the rulemaking record
13 and the full text of the rule.
14 (c) The commission may adopt changes to the proposed rule
15 provided the changes do not enlarge the original purpose of the
16 proposed rule.
17 (d) The commission shall provide an explanation of the reasons
18 for substantive changes made to the proposed rule as well as
19 reasons for substantive changes not made that were recommended
20 by commenters.
21 (e) The commission shall determine a reasonable effective date
22 for the rule. Except for an emergency as provided in section 4 of
23 this chapter, the effective date of the rule shall be no earlier than
24 forty-five (45) days after the commission issuing the notice that it
25 adopted or amended the rule.
26 Sec. 4. Upon determination that an emergency exists, the
27 commission may consider and adopt an emergency rule with five
28 (5) days notice, with opportunity to comment, provided that the
29 usual rulemaking procedures provided in the compact and in this
30 chapter shall be retroactively applied to the rule as soon as
31 reasonably possible, in no event later than ninety (90) days after
32 the effective date of the rule. For the purposes of this provision, an
33 emergency rule is one that must be adopted immediately to:
34 (1) meet an imminent threat to public health, safety, or
35 welfare;
36 (2) prevent a loss of commission or member state funds;
37 (3) meet a deadline for the promulgation of a rule that is
38 established by federal law or rule; or
39 (4) protect public health and safety.
40 Sec. 5. The commission or an authorized committee of the
41 commission may direct revisions to a previously adopted rule for
42 purposes of correcting typographical errors, errors in format,
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1 errors in consistency, or grammatical errors. Public notice of any
2 revisions shall be posted on the website of the commission. The
3 revision shall be subject to challenge by any person for a period of
4 thirty (30) days after posting. The revision may be challenged only
5 on grounds that the revision results in a material change to a rule.
6 A challenge shall be made in writing and delivered to the
7 commission prior to the end of the notice period. If no challenge is
8 made, the revision will take effect without further action. If the
9 revision is challenged, the revision may not take effect without the
10 approval of the commission.
11 Sec. 6. No member state's rulemaking requirements shall apply
12 under this compact.
13 Chapter 12. Oversight, Dispute Resolution, and Enforcement
14 Sec. 1. (a) The executive and judicial branches of state
15 government in each member state shall enforce this compact and
16 take all actions necessary and appropriate to implement the
17 compact.
18 (b) Venue is proper and judicial proceedings by or against the
19 commission shall be brought solely and exclusively in a court of
20 competent jurisdiction where the principal office of the commission
21 is located. The commission may waive venue and jurisdictional
22 defenses to the extent it adopts or consents to participate in
23 alternative dispute resolution proceedings. Nothing in this
24 subsection shall affect or limit the selection or propriety of venue
25 in any action against a licensee for professional malpractice,
26 misconduct or any such similar matter.
27 (c) The commission shall be entitled to receive service of process
28 in any proceeding regarding the enforcement or interpretation of
29 the compact and shall have standing to intervene in such a
30 proceeding for all purposes. Failure to provide the commission
31 service of process shall render a judgment or order void as to the
32 commission, this compact, or promulgated rules.
33 Sec. 2. (a) If the commission determines that a member state has
34 defaulted in the performance of its obligations or responsibilities
35 under this compact or the promulgated rules, the commission shall
36 provide written notice to the defaulting state. The notice of default
37 shall describe the default, the proposed means of curing the
38 default, and any other action that the commission may take, and
39 shall offer training and specific technical assistance regarding the
40 default.
41 (b) The commission shall provide a copy of the notice of default
42 to the other member states.
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1 (c) If a state in default fails to cure the default, the defaulting
2 state may be terminated from the compact upon an affirmative
3 vote of a majority of the delegates of the member states, and all
4 rights, privileges, and benefits conferred on that state by this
5 compact may be terminated on the effective date of termination. A
6 cure of the default does not relieve the offending state of
7 obligations or liabilities incurred during the period of default.
8 (d) Termination of membership in the compact shall be imposed
9 only after all other means of securing compliance have been
10 exhausted. Notice of intent to suspend or terminate shall be given
11 by the commission to the governor, the majority and minority
12 leaders of the defaulting state's legislature, the defaulting state's
13 state licensing authority, and each of the member states' state
14 licensing authority.
15 (e) A state that has been terminated is responsible for all
16 assessments, obligations, and liabilities incurred through the
17 effective date of termination, including obligations that extend
18 beyond the effective date of termination.
19 (f) Upon the termination of a state's membership from this
20 compact, that state shall immediately provide notice to all licensees
21 who hold a multistate license within that state of such termination.
22 The terminated state shall continue to recognize all licenses
23 granted pursuant to this compact for a minimum of one hundred
24 eighty (180) days after the date of the notice of termination.
25 (g) The commission shall not bear any costs related to a state
26 that is found to be in default or that has been terminated from the
27 compact, unless agreed upon in writing between the commission
28 and the defaulting state.
29 (h) The defaulting state may appeal the action of the commission
30 by petitioning the United States District Court for the District of
31 Columbia or the federal district where the commission has its
32 principal offices. The prevailing party shall be awarded all costs of
33 such litigation, including reasonable attorney's fees.
34 Sec. 3. (a) Upon request by a member state, the commission
35 shall attempt to resolve disputes related to the compact that arise
36 among member states and between member and nonmember
37 states.
38 (b) The commission shall promulgate a rule providing for both
39 mediation and binding dispute resolution for disputes as
40 appropriate.
41 Sec. 4. (a) The commission, in the reasonable exercise of its
42 discretion, shall enforce the provisions of this compact and the
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1 commission's rules.
2 (b) By majority vote as provided by commission rule, the
3 commission may initiate legal action against a member state in
4 default in the United States District Court for the District of
5 Columbia or the federal district where the commission has its
6 principal offices to enforce compliance with the provisions of the
7 compact and its promulgated rules. The relief sought may include
8 both injunctive relief and damages. In the event judicial
9 enforcement is necessary, the prevailing party shall be awarded all
10 costs of such litigation, including reasonable attorney's fees. The
11 remedies in this section shall not be the exclusive remedies of the
12 commission. The commission may pursue any other remedies
13 available under federal or the defaulting member state's law.
14 (c) A member state may initiate legal action against the
15 commission in the United States District Court for the District of
16 Columbia or the federal district where the commission has its
17 principal offices to enforce compliance with the provisions of the
18 compact and its promulgated rules. The relief sought may include
19 both injunctive relief and damages. In the event judicial
20 enforcement is necessary, the prevailing party shall be awarded all
21 costs of such litigation, including reasonable attorney's fees.
22 (d) No individual or entity other than a member state may
23 enforce this compact against the commission.
24 Chapter 13. Effective Date, Withdrawal, and Amendment
25 Sec. 1. The compact shall come into effect on the date on which
26 the compact statute is enacted into law in the seventh member
27 state.
28 Sec. 2. (a) On or after the effective date of the compact, the
29 commission shall convene and review the enactment of each of the
30 charter member states to determine if the statute enacted by each
31 such charter member state is materially different than the model
32 compact statute.
33 (b) A charter member state whose enactment is found to be
34 materially different from the model compact statute shall be
35 entitled to the default process set forth in IC 25-43.5-12.
36 (c) If any member state is later found to be in default, or is
37 terminated or withdraws from the compact, the commission shall
38 remain in existence and the compact shall remain in effect even if
39 the number of member states should be less than seven (7).
40 (d) Member states enacting the compact subsequent to the
41 charter member states shall be subject to the process set forth in
42 IC 25-43.5-9-3(24) to determine if their enactments are materially
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1 different from the model compact statute and whether they qualify
2 for participation in the compact.
3 (e) All actions taken for the benefit of the commission or in
4 furtherance of the purposes of the administration of the compact
5 prior to the effective date of the compact or the commission coming
6 into existence shall be considered to be actions of the commission
7 unless specifically repudiated by the commission.
8 (f) Any state that joins the compact shall be subject to the
9 commission's rules and bylaws as they exist on the date on which
10 the compact becomes law in that state. Any rule that has been
11 previously adopted by the commission shall have the full force and
12 effect of law on the day the compact becomes law in that state.
13 Sec. 3. (a) Any member state may withdraw from this compact
14 by enacting a statute repealing that state's enactment of the
15 compact.
16 (b) A member state's withdrawal shall not take effect until one
17 hundred eighty (180) days after enactment of the repealing statute.
18 (c) Withdrawal shall not affect the continuing requirement of
19 the withdrawing state's state licensing authority to comply with the
20 investigative and adverse action reporting requirements of this
21 compact prior to the effective date of withdrawal.
22 (d) Upon the enactment of a statute withdrawing from this
23 compact, a state shall immediately provide notice of such
24 withdrawal to all licensees within that state. Notwithstanding any
25 subsequent statutory enactment to the contrary, the withdrawing
26 state shall continue to recognize all licenses granted pursuant to
27 this compact for a minimum of one hundred eighty (180) days after
28 the date of the notice of withdrawal.
29 Sec. 4. Nothing contained in this compact shall be construed to
30 invalidate or prevent any licensure agreement or other cooperative
31 arrangement between a member state and a nonmember state that
32 does not conflict with the provisions of this compact.
33 Sec. 5. This compact may be amended by the member states. No
34 amendment to this compact shall become effective and binding
35 upon any member state until it is enacted into the laws of all
36 member states.
37 Chapter 14. Construction and Severability
38 Sec. 1. The compact and the commission's rulemaking authority
39 shall be liberally construed so as to effectuate the purposes, and the
40 implementation and administration of the compact. Provisions of
41 the compact expressly authorizing or requiring the promulgation
42 of rules shall not be construed to limit the commission's
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1 rulemaking authority solely for those purposes.
2 Sec. 2. The provisions of this compact shall be severable and if
3 any phrase, clause, sentence, or provision of this compact is held by
4 a court of competent jurisdiction to be contrary to the constitution
5 of any member state, a state seeking participation in the compact,
6 or of the United States, or the applicability thereof to any
7 government, agency, person, or circumstance is held to be
8 unconstitutional by a court of competent jurisdiction, the validity
9 of the remainder of this compact and the applicability thereof to
10 any other government, agency, person, or circumstance shall not
11 be affected thereby.
12 Sec. 3. Notwithstanding section 2 of this chapter, the commission
13 may deny a state's participation in the compact or, in accordance
14 with the requirements of IC 25-43.5-12, terminate a member state's
15 participation in the compact, if it determines that a constitutional
16 requirement of a member state is a material departure from the
17 compact. Otherwise, if this compact shall be held to be contrary to
18 the constitution of any member state, the compact shall remain in
19 full force and effect as to the remaining member states and in full
20 force and effect as to the member state affected as to all severable
21 matters.
22 Chapter 15. Consistent Effect and Conflict with Other State
23 Laws
24 Sec. 1. (a) Nothing in this article shall prevent or inhibit the
25 enforcement of any other law of a member state that is not
26 inconsistent with the compact.
27 (b) Any laws, statutes, regulations, or other legal requirements
28 in a member state in conflict with the compact are superseded to
29 the extent of the conflict.
30 (c) All permissible agreements between the commission and the
31 member states are binding in accordance with their terms.
32 SECTION 2. IC 34-30-2.1-391.7 IS ADDED TO THE INDIANA
33 CODE AS A NEW SECTION TO READ AS FOLLOWS
34 [EFFECTIVE JULY 1, 2024]: Sec. 391.7. IC 25-43.5-9-9 (Concerning
35 the members, officers, executive director, employees, and
36 representatives of the cosmetology licensure compact commission).
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