EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0383* HOUSE BILL 383 C3 4lr1147 CF SB 27 By: Delegates Smith and Shetty Introduced and read first time: January 17, 2024 Assigned to: Economic Matters A BILL ENTITLED AN ACT concerning 1 Cosmetology Licensure Compact 2 FOR the purpose of entering into the Cosmetology Licensure Compact; establishing criteria 3 for participating states; authorizing an individual practicing cosmetology to practice 4 in a party state under certain circumstances; establishing the Cosmetology 5 Licensure Compact Commission and its duties and powers; providing for the 6 amendment of and withdrawal from the Compact; and generally relating to the 7 Cosmetology Licensure Compact. 8 BY adding to 9 Article – Business Occupations and Professions 10 Section 5–6A–01 to be under the new subtitle “Subtitle 6A. Cosmetology Licensure 11 Compact” 12 Annotated Code of Maryland 13 (2018 Replacement Volume and 2023 Supplement) 14 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15 That the Laws of Maryland read as follows: 16 Article – Business Occupations and Professions 17 SUBTITLE 6A. COSMETOLOGY LICENSURE COMPACT. 18 5–6A–01. 19 THE COSMETOLOGY LICENSURE COMPACT IS HEREBY ENACTED AN D 20 ENTERED INTO WITH AL L OTHER JURISDICTION S THAT LEGALLY JOIN IN THE 21 COMPACT IN THE FORM S UBSTANTIALLY AS THE COMPACT APPEARS IN TH IS 22 SECTION AS FOLLOWS : 23 2 HOUSE BILL 383 ARTICLE 1. PURPOSE. 1 THE PURPOSE OF THIS COMPACT IS TO FACILIT ATE THE INTERSTATE 2 PRACTICE AND REGULAT ION OF COSMETOLOGY WITH THE GOAL OF IMPROVING 3 PUBLIC ACCESS TO , AND THE SAFETY OF , COSMETOLOGY SERVICES AND REDUCING 4 UNNECESSARY BURDENS RELATED TO COSMETOLOGY LICENSURE. THROUGH THIS 5 COMPACT, THE MEMBER STATES SEEK TO ESTABL ISH A REGULATORY FRA MEWORK 6 WHICH PROVIDES FOR A NEW M ULTISTATE LICENSING PROGRAM. THROUGH THIS 7 NEW LICENSING PROGRA M, THE MEMBER STATES SEEK TO PROVID E INCREASED 8 VALUE AND MOBILITY T O LICENSED COSMETOLOGISTS IN THE MEMBER STATES, 9 WHILE ENSURING THE P ROVISION OF SAFE , EFFECTIVE, AND RELIABLE SERVICE S 10 TO THE PUBLIC. 11 THIS COMPACT IS DESIGNED T O ACHIEVE THE FOLLOW ING OBJECTIVES AND 12 THE MEMBER STATES HEREBY RATIFY THE SAME INTENTIONS BY SUBSCRIBING 13 HERETO: 14 A. PROVIDE OPPORTUNITIES FOR INTERSTATE PRACT ICE BY 15 COSMETOLOGISTS WHO MEET UNIFORM REQ UIREMENTS FOR MULTIS TATE 16 LICENSURE; 17 B. ENHANCE THE ABILITIES OF MEMBER STATES TO PROTECT PUB LIC 18 HEALTH AND SAFETY AN D PREVENT FRAUD AND UNLICENSED ACTIVITY WITHIN THE 19 PROFESSION; 20 C. ENSURE AND ENCOURAGE COOPERATION BETWEEN MEMBER STATES 21 IN THE LICENSURE AND REGULATION OF THE PRACTICE OF COSMETOLOGY ; 22 D. SUPPORT RELOCATING MI LITARY MEMBERS AND T HEIR SPOUSES; 23 E. FACILITATE THE EXCHAN GE OF INFORMATION BE TWEEN MEMBER 24 STATES RELATED TO THE LICEN SURE, INVESTIGATION , AND DISCIPLINE OF TH E 25 PRACTICE OF COSMETOLOGY ; 26 F. PROVIDE FOR THE LICEN SURE AND MOBILITY OF THE WORKFORCE IN 27 THE PROFESSION WHILE ADDRESSING THE SHORTAGE OF WORKERS AND LESSENIN G 28 THE ASSOCIATED BURDE NS ON THE MEMBER STATES. 29 ARTICLE 2. DEFINITIONS. 30 AS USED IN THIS COMPACT, AND EXCEPT AS OTHERW ISE PROVIDED, THE 31 FOLLOWING DEFINITIONS SHALL GO VERN THE TERMS HEREI N: 32 HOUSE BILL 383 3 A. “ACTIVE MILITARY MEMBER” MEANS ANY INDIVIDUAL WITH 1 FULL–TIME DUTY STATUS IN THE ARMED FORCES OF THE UNITED STATES, 2 INCLUDING MEMBERS OF THE NATIONAL GUARD AND RESERVE. 3 B. “ADVERSE ACTION” MEANS ANY ADMINISTRA TIVE, CIVIL, EQUITABLE, 4 OR CRIMINAL ACTION PERMITTED BY A MEMBER STATE’S LAWS WHICH IS IMPOSED 5 BY A STATE LICENSING AUTHORITY OR OTHER REGULATORY BODY AGAINST A 6 COSMETOLOGIST , INCLUDING ACTIONS AG AINST AN INDIVIDUAL ’S LICENSE OR 7 AUTHORIZATION TO PRACTICE SUCH AS REVO CATION, SUSPENSION, PROBATION, 8 MONITORING OF THE LICENSEE, LIMITATION OF THE LICENSEE’S PRACTICE, OR ANY 9 OTHER ENCUMBRANCE ON A LICENSE AFFECTI NG AN INDIVIDUAL ’S ABILITY TO 10 PARTICIPATE IN THE COSMETOLOGY INDUSTRY, INCLUDING THE ISSUAN CE OF A 11 CEASE AND DESIST ORD ER. 12 C. “ALTERNATIVE PROGRAM” MEANS A NON–DISCIPLINARY MONITOR ING 13 OR PROSECUTORIA L DIVERSION PROGRAM APPROVED BY A MEMBER STATE’S 14 STATE LICENSING AUTHORITY. 15 D. “AUTHORIZATION TO PRACTICE” MEANS A LEGAL AUTHOR IZATION 16 ASSOCIATED WITH A MULTISTATE LICENSE PERMITTING TH E PRACTICE OF 17 COSMETOLOGY IN THAT REMOTE STATE, WHICH SHALL BE SUBJE CT TO THE 18 ENFORCEMENT JURISDIC TION OF THE STATE LICENSING AUTHORITY IN THAT 19 REMOTE STATE. 20 E. “BACKGROUND CHECK” MEANS THE SUBMISSION OF INFORMATION 21 FOR AN APPLICANT FOR THE PURPOSE OF OBTAI NING THAT APPLICANT ’S CRIMINAL 22 HISTORY RECO RD INFORMATION , AS FURTHER DEFINED I N 28 C.F.R. § 20.3(D), 23 FROM THE FEDERAL BUREAU OF INVESTIGATION AND THE AGENCY RESPONSIBLE 24 FOR RETAINING STATE CRIMINAL OR DIS CIPLINARY HISTORY IN THE APPLICANT ’S 25 HOME STATE. 26 F. “CHARTER MEMBER STATE” MEANS MEMBER STATES WHO HAVE 27 ENACTED LEGISLATION TO ADOPT THIS COMPACT WHE RE SUCH LEGISLATION 28 PREDATES THE EFFECTI VE DATE OF THIS COMPACT AS DEFINED IN ARTICLE 13. 29 G. “COMMISSION” MEANS THE GOVERNMENT AGENCY WHOSE 30 MEMBERSHIP CONSISTS OF ALL STATES THAT HAVE ENAC TED THIS COMPACT, 31 WHICH IS KNOWN AS TH E COSMETOLOGY LICENSURE COMPACT COMMISSION, AS 32 DEFINED IN ARTICLE 9, AND WHICH SHALL OPER ATE AS AN INSTRUMENT ALITY OF 33 THE MEMBER STATES. 34 H. “COSMETOLOGIST ” MEANS AN INDIVIDUAL LICENSED IN THEIR HOME 35 STATE TO PRACTICE COSMETOLOGY . 36 4 HOUSE BILL 383 I. “COSMETOLOGY ”, “COSMETOLOGY SERVICES”, AND THE “PRACTICE 1 OF COSMETOLOGY ” MEAN THE CARE AND SE RVICES PROVIDED BY A 2 COSMETOLOGIST AS SET FORTH IN THE MEMBER STATE’S STATUTES AND 3 REGULATIONS IN THE STATE WHERE THE SERVI CES ARE BEING PROVIDE D. 4 J. “CURRENT SIGNIFICANT INVESTIGATIVE INFORMATION ” MEANS: 5 1. INVESTIGATIVE INFORMATION THAT A STATE LICENSING 6 AUTHORITY, AFTER AN INQUIRY OR INVESTIGATION THAT C OMPLIES WITH A 7 MEMBER STATE’S DUE PROCESS REQUIR EMENTS, HAS REASON TO BELIEV E IS NOT 8 GROUNDLESS AND , IF PROVED TRUE , WOULD INDICATE A VIO LATION OF THAT 9 STATE’S LAWS REGARDING FRA UD OR THE PRACTICE OF COSMETOLOGY ; OR 10 2. INVESTIGATIVE INFORMATION THAT INDI CATES THAT A 11 LICENSEE HAS ENGAGED IN FRAUD OR REPRESENTS AN IMM EDIATE THREAT TO 12 PUBLIC HEALTH AND SA FETY, REGARDLESS OF WHETHE R THE LICENSEE HAS BEEN 13 NOTIFIED AND HAD AN OPPORTUNITY TO RESPO ND. 14 K. “DATA SYSTEM” MEANS A REPOSITORY O F INFORMATION ABOUT 15 LICENSEES, INCLUDING LICENSE STATUS , INVESTIGATIVE INFORMATION , AND 16 ADVERSE ACTIONS. 17 L. “DISQUALIFYING EVENT” MEANS ANY EVENT WHIC H SHALL 18 DISQUALIFY AN INDIVI DUAL FROM HOLDING A MULTISTATE LICENSE UNDER THIS 19 COMPACT, WHICH THE COMMISSION MAY BY RULE OR ORDER SPECIFY . 20 M. “ENCUMBERED LICENSE” MEANS A LICENSE IN W HICH AN ADVERSE 21 ACTION RESTRICTS THE PRACTICE OF COSMETOLOGY BY A LICENSEE, OR WHERE 22 SAID ADVERSE ACTION HAS BEEN REPOR TED TO THE COMMISSION. 23 N. “ENCUMBRANCE ” MEANS A REVOCATION O R SUSPENSION OF , OR ANY 24 LIMITATION ON, THE FULL AND UNRESTR ICTED PRACTICE OF COSMETOLOGY BY A 25 STATE LICENSING AUTHORITY. 26 O. “EXECUTIVE COMMITTEE” MEANS A GROUP OF DEL EGATES ELECTED 27 OR APPOINTED TO ACT ON BEHALF OF AND W ITHIN THE POWERS GRA NTED TO THEM 28 BY THE COMMISSION. 29 P. “HOME STATE” MEANS THE MEMBER STATE WHICH IS A LICENSEE’S 30 PRIMARY STATE OF RESIDENCE AN D WHERE THAT LICENSEE HOLDS AN ACT IVE AND 31 UNENCUMBERED LICENSE TO PRACTICE COSMETOLOGY . 32 HOUSE BILL 383 5 Q. “INVESTIGATIVE INFORMATION ” MEANS INFORMATION , RECORDS, OR 1 DOCUMENTS RECEIVED O R GENERATED BY A STATE LICENSING AUTHORITY 2 PURSUANT TO AN INVES TIGATION OR OTHER IN QUIRY. 3 R. “JURISPRUDENCE REQUIREMENT ” MEANS THE ASSESSMENT OF AN 4 INDIVIDUAL’S KNOWLEDGE OF THE L AWS AND RULES GOVERN ING THE PRACTICE OF 5 COSMETOLOGY IN A STATE. 6 S. “LICENSEE” MEANS AN INDIVIDUAL WHO CURRENTLY HOLDS A LICENSE 7 FROM A MEMBER STATE TO PRACTICE AS A COSMETOLOGIST . 8 T. “MEMBER STATE” MEANS ANY STATE THAT HAS ADOPTE D THIS 9 COMPACT. 10 U. “MULTISTATE LICENSE” MEANS A LICENSE ISSU ED BY AND SUBJECT TO 11 THE ENFORCEMENT JURI SDICTION OF THE STATE LICENSING AUTHORITY IN A 12 LICENSEE’S HOME STATE, WHICH AUTHORIZES THE PRACTICE OF COSMETOLOGY 13 IN MEMBER STATES AND INCLUDES AUTHORIZATIONS TO PRACTICE 14 COSMETOLOGY IN ALL REMOTE STATES PURSUANT TO THIS COMPACT. 15 V. “REMOTE STATE” MEANS ANY MEMBER STATE, OTHER THAN THE 16 LICENSEE’S HOME STATE. 17 W. “RULE” MEANS ANY RULE OR RE GULATION PRO MULGATED BY THE 18 COMMISSION UNDER THIS COMPACT THAT HAS THE FORCE OF LAW . 19 X. “SINGLE–STATE LICENSE” MEANS A COSMETOLOGY LICENSE I SSUED 20 BY A MEMBER STATE THAT AUTHORIZES THE PRACTICE OF COSMETOLOGY ONLY 21 WITHIN THE ISSUING STATE AND DOES NOT IN CLUDE ANY AUTHORIZAT ION OUTSIDE 22 OF THE ISSUING STATE. 23 Y. “STATE” MEANS A STATE, TERRITORY, OR POSSESSION OF THE UNITED 24 STATES AND THE DISTRICT OF COLUMBIA. 25 Z. “STATE LICENSING AUTHORITY” MEANS A MEMBER STATE’S 26 REGULATORY BODY RESP ONSIBLE FOR ISSUING COSMETOLOGY LICENSES OR 27 OTHERWISE OVERSEEING THE PRACTICE OF COSMETOLOGY IN THAT STATE. 28 ARTICLE 3. MEMBER STATE REQUIREMENTS . 29 A. TO BE ELIGIBLE TO JOI N THIS COMPACT, AND TO MAINTAIN 30 ELIGIBILITY AS A MEMBER STATE, A STATE MUST: 31 6 HOUSE BILL 383 1. LICENSE AND REGULATE COSMETOLOGY ; 1 2. HAVE A MECHANISM OR E NTITY IN PLACE TO RE CEIVE AND 2 INVESTIGATE COMPLAIN TS ABOUT LICENSEES PRACTICING IN THAT STATE; 3 3. REQUIRE THAT LICENSEES WITHIN THE STATE PASS A 4 COSMETOLOGY COMPETENC Y EXAMINATION PRIOR TO BEING LICENSED TO 5 PROVIDE COSMETOLOGY SERVICES TO THE PUBLI C IN THAT STATE; 6 4. REQUIRE THAT LICENSEES SATISFY EDU CATIONAL OR TRAINING 7 REQUIREMENTS IN COSMETOLOGY PRIOR TO BEING LICENSED TO PR OVIDE 8 COSMETOLOGY SERVICES TO THE PUBLI C IN THAT STATE; 9 5. IMPLEMENT PROCEDURES FOR CONSIDERING ONE OR MORE OF 10 THE FOLLOWING CATEGO RIES OF INFORMATION FROM APPLICANTS FOR 11 LICENSURE: CRIMINAL HISTORY ; DISCIPLINARY HISTORY ; OR BACKGROUND 12 CHECK. SUCH PROCEDURES MAY INCLUDE THE SUBM ISSION OF INFORMATIO N BY 13 APPLICANTS FOR THE P URPOSE OF OBTAINING AN APPLICANT ’S BACKGROUND 14 CHECK AS DEFINED HEREIN ; 15 6. PARTICIPATE IN THE DATA SYSTEM, INCLUDING THROUGH TH E 16 USE OF UNIQUE IDENTI FYING NUMBERS ; 17 7. SHARE INFORMATIO N RELATED TO ADVERSE ACTIONS WITH THE 18 COMMISSION AND OTHER MEMBER STATES, BOTH THROUGH THE DATA SYSTEM 19 AND OTHERWISE ; 20 8. NOTIFY THE COMMISSION AND OTHER MEMBER STATES, IN 21 COMPLIANCE WITH THE TERMS OF THE COMPACT AND RULES OF THE COMMISSION, 22 OF THE EXISTENCE OF INVESTIGATIVE INFORMATION OR CURRENT SIGNIFICANT 23 INVESTIGATIVE INFORMATION IN THE STATE’S POSSESSION REGARDI NG A 24 LICENSEE PRACTICING I N THAT STATE; 25 9. COMPLY WITH SUCH RULES AS MAY BE ENACTED BY TH E 26 COMMISSION TO ADMINIS TER THE COMPACT; AND 27 10. ACCEPT LICENSEES FROM OTHER MEMBER STATES AS 28 ESTABLISHED HEREIN. 29 B. MEMBER STATES MAY CHARGE A F EE FOR GRANTING A LI CENSE TO 30 PRACTICE COSMETOLOGY . 31 C. INDIVIDUALS NOT RESID ING IN A MEMBER STATE SHALL CONTINUE TO 32 HOUSE BILL 383 7 BE ABLE TO APPLY FOR A MEMBER STATE’S SINGLE–STATE LICENSE AS PROVIDED 1 UNDER THE LAWS OF EA CH MEMBER STATE. HOWEVER, THE SINGLE–STATE 2 LICENSE GRANTED TO TH ESE INDIVIDUALS MAY NOT BE RECOGNIZED AS GRA NTING 3 A MULTISTATE LICENSE TO PROVIDE SE RVICES IN ANY OTH ER MEMBER STATE. 4 D. NOTHING IN THIS COMPACT SHALL AFFECT THE REQUIREMENTS 5 ESTABLISHED BY A MEMBER STATE FOR THE ISSUANC E OF A SINGLE–STATE 6 LICENSE. 7 E. A MULTISTATE LICENSE ISSUED TO A LICENSEE BY A HOME STATE TO 8 A RESIDENT OF THAT STATE SHALL BE RECOGN IZED BY EACH MEMBER STATE AS 9 AUTHORIZING A LICENSEE TO PRACTICE COSMETOLOGY IN EACH MEMBER STATE. 10 F. AT NO POINT SHALL THE COMMISSION HAVE THE P OWER TO DEFINE 11 THE EDUCATIONAL OR P ROFESSIONAL REQUIREM ENTS FOR A LICENSE T O 12 PRACTICE COSMETOLOGY . THE MEMBER STATES SHALL RETAIN S OLE 13 JURISDICTION OVER TH E PROVISION OF THESE REQUIREMENTS . 14 ARTICLE 4. MULTISTATE LICENSE. 15 A. TO BE ELIGIBLE TO APP LY TO THEIR HOME STATE’S STATE LICENSING 16 AUTHORITY FOR AN INIT IAL MULTISTATE LICENSE UNDER THIS COMPACT, A 17 LICENSEE MUST HOLD AN ACTIVE AND UNENCUMBE RED SINGLE–STATE LICENSE 18 TO PRACTICE COSMETOLOGY IN THEIR HOME STATE. 19 B. UPON THE RECEIPT OF AN AP PLICATION FOR A MULTISTATE LICENSE, 20 ACCORDING TO THE RULES OF THE COMMISSION, A MEMBER STATE’S STATE 21 LICENSING AUTHORITY SHALL ASCER TAIN WHETHER THE APP LICANT MEETS THE 22 REQUIREMENTS FOR A MULTISTATE LICENSE UNDER THIS COMPACT. 23 C. IF AN APPLICANT MEETS THE REQUIREMENTS FOR A MULTISTATE 24 LICENSE UNDER THIS COMPACT AND ANY APPLI CABLE RULES OF THE 25 COMMISSION, THE STATE LICENSING AUTHORITY IN RECEIPT OF THE APPLICATION 26 SHALL, WITHIN A REASONABLE TIME, GRANT A MULTISTATE LICENSE TO THAT 27 APPLICANT, AND INFORM ALL MEMBER STATES OF THE GRANT O F SAID 28 MULTISTATE LICENSE. 29 D. A MULTISTATE LICENSE TO PRACTICE COSMETOLOGY ISSUED BY A 30 MEMBER STATE’S STATE LICENSING AUTHORITY SHALL BE RE COGNIZED BY EACH 31 MEMBER STATE AS AUTHORIZING THE PRACTICE THEREOF AS THOUGH TH AT 32 LICENSEE HELD A SINGLE–STATE LICENSE TO DO SO IN EACH MEMBER STATE, 33 SUBJECT TO THE RESTR ICTIONS HEREIN. 34 8 HOUSE BILL 383 E. A MULTISTATE LICENSE GRANTED PURSUANT TO THIS COMPACT MAY 1 BE EFFECTIVE FOR A D EFINITE PERIOD OF TI ME, CONCURRENT WITH THE 2 LICENSURE RENEWAL PE RIOD IN THE HOME STATE. 3 F. TO MAINTAIN A MULTISTATE LICENSE UNDER T HIS COMPACT, A 4 LICENSEE SHALL: 5 1. AGREE TO ABIDE BY THE RULES OF THE STATE LICENSING 6 AUTHORITY, AND THE STATE SCOPE OF PRACTI CE LAWS GOVERNING TH E PRACTICE 7 OF COSMETOLOGY , OF ANY MEMBER STATE IN WHICH THE LICENSEE PROVIDES 8 SERVICES; 9 2. PAY ALL REQUIRED FEES RELATED TO THE APPLI CATION AND 10 PROCESS AND ANY OTHE R FEES WHICH THE COMMISSION MAY BY RULE REQUIRE; 11 AND 12 3. COMPLY WITH ANY AND A LL OTHER REQUIREMENT S REGARDING 13 MULTISTATE LICENSES WHICH THE COMMISSION MAY BY RULE PROVIDE. 14 G. A LICENSEE PRACTICING I N A MEMBER STATE IS SUBJECT TO A LL 15 SCOPE OF PRACTICE LA WS GOVERNING COSMETOLOGY SERVICES IN THAT STATE. 16 H. THE PRACTICE OF COSMETOLOGY UNDER A MULTISTATE LICENSE 17 GRANTED PURSUANT TO THIS COMPACT SHALL SUBJECT THE LICENSEE TO THE 18 JURISDICTION OF THE STATE LICENSING AUTHORITY, THE COURTS, AND THE LAWS 19 OF THE MEMBER STATE IN WHICH THE COSMETOLOGY SERVICES ARE PROVIDED . 20 ARTICLE 5. REISSUANCE OF A MULTISTATE LICENSE BY A NEW HOME STATE. 21 A. A LICENSEE MAY HOLD A MULTISTATE LICENSE, ISSUED BY THEIR 22 HOME STATE, IN ONLY ONE MEMBER STATE AT ANY GIVEN TI ME. 23 B. IF A LICENSEE CHANGES THEI R HOME STATE BY MOVING BETWE EN 24 TWO MEMBER STATES: 25 1. THE LICENSEE SHALL IMMEDIATELY APPLY FO R THE 26 REISSUANCE OF THEIR MULTISTATE LICENSE IN THEIR NEW HOME STATE. THE 27 LICENSEE SHALL PAY ALL APPLICABLE F EES AND NOTIFY THE P RIOR HOME STATE 28 IN ACCORDANCE WITH T HE RULES OF THE COMMISSION. 29 2. UPON RECEIPT OF AN APPLIC ATION TO REISSUE A MULTISTATE 30 LICENSE, THE NEW HOME STATE SHALL VERIFY THAT THE MULTISTATE LICENSE 31 IS ACTIVE, UNENCUMBERED , AND ELIGIBLE FOR REI SSUANCE UNDER THE TE RMS OF 32 HOUSE BILL 383 9 THE COMPACT AND THE RULES OF THE COMMISSION. THE MULTISTATE LICENSE 1 ISSUED BY THE PRIOR HOME STATE WILL BE DEACTIV ATED AND ALL MEMBER 2 STATES NOTIFIED IN AC CORDANCE WITH THE AP PLICABLE RULES ADOPTED BY THE 3 COMMISSION. 4 3. IF REQUIRED FOR INITI AL LICENSURE , THE NEW HOME STATE 5 MAY REQUIRE A BACKGROUND CHECK AS SPECIFIED IN THE LAWS OF THAT STATE 6 OR THE COMPLIANCE WI TH ANY JURISPRUDENCE REQUIREMENTS OF THE NE W 7 HOME STATE. 8 4. NOTWITHSTANDING ANY O THER PROVISION OF TH IS COMPACT, IF 9 A LICENSEE DOES NOT MEE T THE REQUIREMENTS SET FORTH IN THIS COMPACT 10 FOR THE REISSUANCE O F A MULTISTATE LICENSE BY THE NEW HOME STATE, THEN 11 THE LICENSEE SHALL BE SUB JECT TO THE NEW HOME STATE REQUIREMENTS FO R 12 THE ISSUANCE OF A SINGLE–STATE LICENSE IN THAT STATE. 13 C. IF A LICENSEE CHANGES THEI R PRIMARY STATE OF RESIDENCE BY 14 MOVING FROM A MEMBER STATE TO A NON –MEMBER STATE, OR FROM A 15 NON–MEMBER STATE TO A MEMBER STATE, THEN THE LICENSEE SHALL BE 16 SUBJECT TO THE STATE REQUIREMENTS FO R THE ISSUANCE OF A SINGLE–STATE 17 LICENSE IN THE NEW HOME STATE. 18 D. NOTHING IN THIS COMPACT SHALL INTERFE RE WITH A LICENSEE’S 19 ABILITY TO HOLD A SINGLE–STATE LICENSE IN MULTIPLE STATES; HOWEVER F OR 20 THE PURPOSES OF THIS COMPACT, A LICENSEE SHALL HAVE O NLY ONE HOME 21 STATE AND ONLY ONE MULTISTATE LICENSE. 22 E. NOTHING IN THIS COMPACT MAY INTERFERE WITH THE R EQUIREMENTS 23 ESTABLISHED BY A MEMBER STATE FOR THE ISSUANC E OF A SINGLE–STATE 24 LICENSE. 25 ARTICLE 6. AUTHORITY OF THE COMPACT COMMISSION AND MEMBER STATE 26 LICENSING AUTHORITIES. 27 A. NOTHING IN THIS COMPACT, NOR ANY RULE OR REGULATION OF THE 28 COMMISSION, MAY BE CONSTRUED TO LIMI T, RESTRICT, OR IN ANY WAY REDUCE 29 THE ABILITY OF A MEMBER STATE TO ENACT AND EN FORCE LAWS, REGULATIONS , 30 OR OTHER RULES RELAT ED TO THE PRACTICE OF COSMETOLOGY IN THAT STATE, 31 IF THOSE LAWS, REGULATIONS , OR OTHER RULES ARE N OT INCONSISTEN T WITH THE 32 PROVISIONS OF THIS COMPACT. 33 B. INSOFAR AS PRACTICAL , A MEMBER STATE’S STATE LICENSING 34 AUTHORITY SHALL COOPE RATE WITH THE COMMISSION AND WITH E ACH ENTITY 35 10 HOUSE BILL 383 EXERCISING INDEPENDE NT REGULATORY AUTHOR ITY OVER THE PRACTICE OF 1 COSMETOLOGY ACCORDING TO THE PROVISIONS OF TH IS COMPACT. 2 C. DISCIPLINE SHALL BE T HE SOLE RESPONSIBILI TY OF THE STATE IN 3 WHICH COSMETOLOGY SERVICES ARE PROVIDED . ACCORDINGLY , EACH MEMBER 4 STATE’S STATE LICENSING AUTHORITY SHALL BE RE SPONSIBLE FOR RECEIV ING 5 COMPLAINTS ABOUT IND IVIDUALS PRACTICING COSMETOLOGY IN THAT STATE AND 6 FOR COMMUNICATING AL L RELEVANT INVESTIGATIVE INFORMATION ABOUT ANY 7 SUCH ADVERSE ACTION TO THE OTHER MEMBER STATES THROUGH THE DATA 8 SYSTEM IN ADDITION TO ANY OTHER METHODS THE COMMISSION MAY BY RULE 9 REQUIRE. 10 ARTICLE 7. ADVERSE ACTIONS. 11 A. A LICENSEE’S HOME STATE SHALL HAVE EXCL USIVE POWER TO IMPOS E 12 AN ADVERSE ACTION AGAINST A LICENSEE’S MULTISTATE LICENSE ISSUED BY THE 13 HOME STATE. 14 B. A HOME STATE MAY TAKE ADVERSE ACTION ON A MULTISTATE 15 LICENSE BASED ON THE INVESTIGATIVE INFORMATION , CURRENT SIGNIFICANT 16 INVESTIGATIVE INFORMATION , OR ADVERSE ACTION OF A REMOTE STATE. 17 C. IN ADDITION TO THE PO WERS CONFERRED BY STATE LAW, EACH 18 REMOTE STATE’S STATE LICENSING AUTHORITY SHALL HAVE THE POWER TO : 19 1. TAKE ADVERSE ACTION AGAINST A LICENSEE’S AUTHORIZATION 20 TO PRACTICE COSMETOLOGY THROUGH T HE MULTISTATE LICENSE IN THAT 21 MEMBER STATE, PROVIDED THAT : 22 A. ONLY THE LICENSEE’S HOME STATE SHALL HAVE THE 23 POWER TO TAKE ADVERSE ACTION AGAINST THE MULTISTATE LICENSE ISSUED BY 24 THE HOME STATE; AND 25 B. FOR THE PURPOSES OF T AKING ADVERSE ACTION, THE 26 HOME STATE’S STATE LICENSING AUTHORITY SHALL GIVE THE SAME PRIORITY 27 AND EFFECT TO REPORT ED CONDUCT RE CEIVED FROM A REMOTE STATE AS IT 28 WOULD IF THE CONDUCT HAD OCCURRED WITHIN THE HOME STATE. IN SO DOING, 29 THE HOME STATE SHALL APPLY ITS OWN STATE LAWS TO DETERMI NE THE 30 APPROPRIATE ACTION . 31 2. ISSUE CEASE AND DESIS T ORDERS OR IMPOSE A N ENCUMBRANCE 32 ON A LICENSEE’S AUTHORIZATION TO PRACTICE WITHIN THAT MEMBER STATE. 33 HOUSE BILL 383 11 3. COMPLETE ANY PENDING INVESTIGATIONS OF A LICENSEE WHO 1 CHANGES THEIR PRIMAR Y STATE OF RESIDENCE DU RING THE COURSE OF S UCH AN 2 INVESTIGATION . THE STATE LICENSING AUTHORITY MAY REPORT THE RESULTS OF 3 AN INVESTIGATION TO THE COMMISSION THROUGH TH E DATA SYSTEM AS 4 DESCRIBED HEREIN . 5 4. ISSUE SUBPOENAS FOR B OTH HEARINGS AND INV ESTIGATIONS 6 THAT REQUIRE THE ATT ENDANCE AND TESTIMON Y OF WITNESSES, AS WELL AS THE 7 PRODUCTION OF EVIDEN CE. SUBPOENAS ISSUE D BY A STATE LICENSING 8 AUTHORITY IN A MEMBER STATE FOR THE ATTENDA NCE AND TESTIMONY OF 9 WITNESSES OR THE PRO DUCTION OF EVIDENCE FROM ANOTHER MEMBER STATE 10 SHALL BE ENFORCED IN THE LATTER STATE BY ANY COURT OF COMPETENT 11 JURISDICTION, ACCORDING TO THE PRA CTICE AND PROCEDURE OF THAT COURT 12 APPLICABLE TO SUBPOE NAS ISSUED IN PROCEE DINGS BEFORE IT . THE ISSUING 13 STATE LICENSING AUTHORITY SHALL PAY A NY WITNESS FEES , TRAVEL EXPENSES , 14 MILEAGE, AND OTHER FEES REQUIRED BY T HE SERVICE STATUTES OF THE STATE IN 15 WHICH THE WITNESSES OR EVIDENCE ARE LOCA TED. 16 5. IF OTHERWISE PERMITTED BY STATE LAW, RECOVER FROM THE 17 AFFECTED LICENSEE THE COSTS OF INVESTIGATIONS AND D ISPOSITION OF CASES 18 RESULTING FROM ANY ADVERSE ACTION TAKEN AGAINST THAT LICENSEE. 19 6. TAKE ADVERSE ACTION AGAINST THE LICENSEE’S 20 AUTHORIZATION TO PRACTICE IN THAT STATE BASED ON THE FA CTUAL FINDINGS 21 OF ANOTHER REMOTE STATE. 22 D. A LICENSEE’S HOME STATE SHALL COMPLETE ANY PENDING 23 INVESTIGATION OF A COSMETOLOGIST WHO CHA NGES THEIR PRIMARY STATE OF 24 RESIDENCE DURING THE COURSE OF THE INVEST IGATION. THE HOME STATE SHALL 25 ALSO HAVE THE AUTHOR ITY TO TAKE APPROPRI ATE ACTION AND SHALL PROMPTLY 26 REPORT THE CONCLUSIO NS OF THE INVESTIGAT IONS TO THE DATA SYSTEM. 27 E. IF AN ADVERSE ACTION IS TAKEN BY TH E HOME STATE AGAINST A 28 LICENSEE’S MULTISTATE LICENSE, THE LICENSEE’S AUTHORIZATION TO 29 PRACTICE IN ALL OTHER MEMBER STATES SHALL BE DEACT IVATED UNT IL ALL 30 ENCUMBRANCES HAVE BEE N REMOVED FROM THE HOME STATE LICENSE. ALL 31 HOME STATE DISCIPLINARY OR DERS THAT IMPOSE AN ADVERSE ACTION AGAINST 32 A LICENSEE’S MULTISTATE LICENSE SHALL INCLUDE A STATEMENT THAT THE 33 COSMETOLOGIST ’S AUTHORIZATION TO PRACTICE IS DEACTIVAT ED IN ALL 34 MEMBER STATES DURING THE PEN DENCY OF THE ORDER . 35 F. NOTHING IN THIS COMPACT SHALL OVERRID E A MEMBER STATE’S 36 AUTHORITY TO ACCEPT A LICENSEE’S PARTICIPATION IN A N ALTERNATIVE 37 12 HOUSE BILL 383 PROGRAM IN LIEU OF ADVERSE ACTION. A LICENSEE’S MULTISTATE LICENSE 1 SHALL BE SUSPENDED F OR THE DURATION OF T HE LICENSEE’S PARTICIPATION IN 2 ANY ALTERNATIVE PROGRAM. 3 G. JOINT INVESTIGATIONS . 4 1. IN ADDITION TO THE AU THORITY GRANTED TO A MEMBER STATE 5 BY ITS RESPECTIVE SC OPE OF PRACTICE LAWS OR OTHER APPLI CABLE STATE LAW, 6 A MEMBER STATE MAY PARTICIPATE WITH OTHER MEMBER STATES IN JOINT 7 INVESTIGATIONS OF LICENSEES. 8 2. MEMBER STATES SHALL SHARE AN Y INVESTIGATIVE, LITIGATION, 9 OR COMPLIANCE MATERI ALS IN FURTHERANCE O F ANY JOINT OR INDIV IDUAL 10 INVESTIGATION INITIATED UNDER THE COMPACT. 11 ARTICLE 8. ACTIVE MILITARY MEMBERS AND THEIR SPOUSES. 12 ACTIVE MILITARY MEMBERS, OR THEIR SPOUSES , SHALL DESIGNATE A HOME 13 STATE WHERE THE INDIV IDUAL HAS A CURRENT LICENSE TO PRACTICE 14 COSMETOLOGY IN GOOD S TANDING. THE INDIVIDUA L MAY RETAIN THEIR HOME 15 STATE DESIGNATION DUR ING ANY PERIOD OF SE RVICE WHEN THAT INDI VIDUAL OR 16 THEIR SPOUSE IS ON A CTIVE DUTY ASSIGNMEN T. 17 ARTICLE 9. ESTABLISHMENT AND OPERATION OF THE COSMETOLOGY LICENSURE 18 COMPACT COMMISSION. 19 A. THE COMPACT MEMBER STATES HEREBY CREATE AND ESTABLISH A 20 JOINT GOVERNMENT AGE NCY WHOSE MEMBERSHIP CONSISTS OF ALL MEMBER 21 STATES THAT HAVE ENAC TED THE COMPACT KNOWN AS THE COSMETOLOGY 22 LICENSURE COMPACT COMMISSION. THE COMMISSION IS AN INSTRUMENTALIT Y 23 OF THE COMPACT MEMBER STATES ACTING JOINTLY AND NOT AN 24 INSTRUMENTALITY OF A NY ONE STATE. THE COMMISSION SHALL COME INTO 25 EXISTENCE ON OR AFTE R THE EFFECTIVE DATE OF THE COMPACT AS SET FORTH IN 26 ARTICLE 13. 27 B. MEMBERSHIP, VOTING, AND MEETINGS. 28 1. EACH MEMBER STATE SHALL HAVE AND BE LIMITED TO ONE 29 DELEGATE SELECTED BY THAT MEMBER STATE’S STATE LICENSING AUTHORITY. 30 2. THE DELEGATE SHALL BE AN ADMINISTRATOR OF THE STATE 31 LICENSING AUTHORITY OF THE MEMBER STATE OR THEIR DESIGN EE. 32 HOUSE BILL 383 13 3. THE COMMISSION SHALL BY RULE OR BYLAW ESTABLI SH A TERM 1 OF OFFICE FOR DELEGA TES AND MAY BY RULE OR BYLAW ESTABLI SH TERM LIMITS. 2 4. THE COMMISSION MAY RECOMM END REMOVAL OR SUSPE NSION 3 OF ANY DELEGATE FROM OFFICE. 4 5. A MEMBER STATE’S STATE LICENSING AUTHORITY SHALL FILL 5 ANY VACANCY OF ITS DELEGATE OCCURRING ON THE COMMISSION WITHIN 60 DAYS 6 OF THE VACANCY . 7 6. EACH DELEGATE SHALL B E ENTITLED TO ONE VO TE ON ALL 8 MATTERS THAT ARE VOT ED ON BY THE COMMISSION. 9 7. THE COMMISSION SHALL MEET AT LEAST ONCE DURING EACH 10 CALENDAR YEAR . ADDITIONAL MEETINGS M AY BE HELD AS SET FO RTH IN THE 11 BYLAWS. THE COMMISSION MAY MEET B Y TELECOMMUNICATION , VIDEO 12 CONFERENCE , OR OTHER SIMILAR ELE CTRONIC MEANS . 13 C. THE COMMISSION SHALL HAVE THE FOLLOWING POWERS : 14 1. ESTABLISH THE FISCAL YEAR OF THE COMMISSION; 15 2. ESTABLISH A CODE OF C ONDUCT AND CONFLICT OF INTEREST 16 POLICIES; 17 3. ADOPT RULES AND BYLAWS ; 18 4. MAINTAIN ITS FINANCIA L RECORDS IN ACCORDA NCE WITH THE 19 BYLAWS; 20 5. MEET AND TAKE SUCH AC TIONS AS ARE CONSIST ENT WITH THE 21 PROVISIONS OF TH IS COMPACT, THE COMMISSION’S RULES, AND THE BYLAWS ; 22 6. INITIATE AND CONCLUDE LEGAL PROCEEDINGS OR ACTIONS IN 23 THE NAME OF THE COMMISSION, PROVIDED THAT THE ST ANDING OF ANY STATE 24 LICENSING AUTHORITY TO SUE OR B E SUED UNDER APPLICA BLE LAW MAY NOT BE 25 AFFECTED; 26 7. MAINTAIN AND CERTIFY RECORDS AND INFORMAT ION PROVIDED 27 TO A MEMBER STATE AS THE AUTHENTI CATED BUSINESS RECOR DS OF THE 28 COMMISSION AND DESIGNATE AN AGE NT TO DO SO ON THE COMMISSION’S BEHALF; 29 8. PURCHASE AND MAINTAIN INSURANCE AND BONDS ; 30 14 HOUSE BILL 383 9. BORROW, ACCEPT, OR CONTRACT FOR SERV ICES OF PERSONNEL , 1 INCLUDING EMPLOYEES OF A MEMBER STATE; 2 10. CONDUCT AN ANNUAL FIN ANCIAL REVIEW ; 3 11. HIRE EMPLOYEES , ELECT OR APPOINT OFF ICERS, FIX 4 COMPENSATION , DEFINE DUTIES , GRANT SUCH INDIVIDUALS APPROPRI ATE 5 AUTHORITY TO CARRY OUT THE PURPOSES OF THE COMPACT, AND ESTABLISH THE 6 COMMISSION’S PERSONNEL POLICIES AND PROGRAMS RELATIN G TO CONFLICTS OF 7 INTEREST, QUALIFICATIONS OF PE RSONNEL, AND OTHER RELATED PE RSONNEL 8 MATTERS; 9 12. AS SET FORTH IN THE COMMISSION RULES, CHARGE A FEE TO A 10 LICENSEE FOR THE GRAN T OF A MULTISTATE LICENSE AND THEREAFTE R, AS MAY 11 BE ESTABLISHED BY COMMISSION RULE, CHARGE THE LICENSEE A MULTISTATE 12 LICENSE RENEWAL FEE F OR EACH RENEWAL PERI OD. NOTHING HEREIN MAY BE 13 CONSTRUED TO PREVENT A HOME STATE FROM CHARGING A LICENSEE A FEE FOR 14 A MULTISTATE LICENSE OR RENEWALS O F A MULTISTATE LICENSE, OR A FEE FOR 15 THE JURISPRUDENCE REQUIREMENT IF THE MEMBER STATE IMPOSES SUCH A 16 REQUIREMENT FOR THE GRANT OF A MULTISTATE LICENSE; 17 13. ASSESS AND COLLECT FE ES; 18 14. ACCEPT ANY AND ALL AP PROPRIATE GIFTS , DONATIONS, GRANTS 19 OF MONEY, OTHER SOURCES OF REV ENUE, EQUIPMENT, SUPPLIES, MATERIALS, AND 20 SERVICES, AND RECEIVE, UTILIZE, AND DISPOSE OF THE S AME; PROVIDED THAT AT 21 ALL TIMES THE COMMISSION SHALL AVOI D ANY APPEARANCE OF IMPROP RIETY OR 22 CONFLICT OF INTEREST ; 23 15. LEASE, PURCHASE, RETAIN, OWN, HOLD, IMPROVE, OR USE ANY 24 PROPERTY, REAL, PERSONAL, OR MIXED, OR ANY UNDIVIDED INT EREST THEREIN ; 25 16. SELL, CONVEY, MORTGAGE , PLEDGE, LEASE, EXCHANGE, 26 ABANDON, OR OTHERWISE DISPOSE OF A NY PROPERTY, REAL, PERSONAL, OR MIXED; 27 17. ESTABLISH A BUDGET AN D MAKE EXPENDITURES ; 28 18. BORROW MONEY ; 29 19. APPOINT COMMITTEES , INCLUDING STANDING C OMMITTEES, 30 COMPOSED OF MEMBERS , STATE REGULATORS , STATE LEGISLATORS OR THEIR 31 REPRESENTATIVES , AND CONSUMER REPRESE NTATIVES, AND SUCH OTHER 32 HOUSE BILL 383 15 INTERESTED PERSONS AS MAY BE DESIGNATED IN THIS COMPACT AND THE BYLAW S; 1 20. PROVIDE AND RECEIVE I NFORMATION FROM AND COOPERATE 2 WITH LAW ENFORCEMENT AGENCIES; 3 21. ELECT A CHAIR, VICE CHAIR, SECRETARY AND TREASURER AND 4 SUCH OTHER OFFICERS OF TH E COMMISSION AS PROVIDE D IN THE COMMISSION’S 5 BYLAWS; 6 22. ESTABLISH AND ELECT A N EXECUTIVE COMMITTEE, INCLUDING 7 A CHAIR AND A VICE CHAIR; 8 23. ADOPT AND PROVIDE TO THE MEMBER STATES AN ANNUAL 9 REPORT; 10 24. DETERMINE WHETHER A STATE’S ADOPTED LANGUAGE I S 11 MATERIALLY DIFFERENT FROM THE MODEL COMPACT LANGUAGE SUCH THAT THE 12 STATE WOULD NOT QUALI FY FOR PARTICIPATION IN THE COMPACT; AND 13 25. PERFORM SUCH OTHER FUNCTIONS AS M AY BE NECESSARY OR 14 APPROPRIATE TO ACHIE VE THE PURPOSES OF T HIS COMPACT. 15 D. THE EXECUTIVE COMMITTEE. 16 1. THE EXECUTIVE COMMITTEE SHALL HAVE THE POWER TO ACT ON 17 BEHALF OF THE COMMISSION ACCORDING TO THE TERMS OF THIS COMPACT. THE 18 POWERS, DUTIES, AND RESPONSIBILITIES OF THE EXECUTIVE COMMITTEE SHALL 19 INCLUDE: 20 A. OVERSEEING THE DAY –TO–DAY ACTIVITIES OF TH E 21 ADMINISTRATION OF TH E COMPACT INCLUDING COM PLIANCE WITH THE 22 PROVISIONS OF THE COMPACT, THE COMMISSION’S RULES AND BYLAWS , AND SUCH 23 OTHER DUTIES AS DEEM ED NECESSARY ; 24 B. RECOMMENDING TO THE COMMISSION CHANGES TO THE 25 RULES OR BYLAWS , CHANGES TO THIS COMPACT LEGISLATION , FEES CHARGED TO 26 COMPACT MEMBER STATES, FEES CHARGED TO LICENSEES, AND OTHER FEES ; 27 C. ENSURING COMPACT ADMI NISTRATION SERVICES ARE 28 APPROPRIATELY PROVID ED, INCLUDING BY CONTRAC T; 29 D. PREPARING AND RECOMME NDING THE BUDGET ; 30 16 HOUSE BILL 383 E. MAINTAINING FINANCIAL RECORDS ON BEHALF OF THE 1 COMMISSION; 2 F. MONITORING COMPACT COMPLIANCE OF MEMBER STATES 3 AND PROVIDING COMPLI ANCE REPORTS TO THE COMMISSION; 4 G. ESTABLISHING ADDITION AL COMMITTEES AS NEC ESSARY; 5 H. EXERCISING THE POWERS AND DUTIES OF THE 6 COMMISSION DURING THE INTERIM BETWEEN COMMISSION MEETINGS , EXCEPT 7 FOR ADOPTING OR AMEN DING RULES, ADOPTING OR AMENDING BYLAWS, AND 8 EXERCISING ANY OTHER POWERS AND DUTIES EX PRESSLY RESERVED TO THE 9 COMMISSION BY RULE OR BYLAW ; AND 10 I. OTHER DUTIES AS PROVI DED IN THE RULES OR BYLAWS OF 11 THE COMMISSION. 12 2. THE EXECUTIVE COMMITTEE SHALL BE CO MPOSED OF UP TO 13 SEVEN VOTING MEMBERS . 14 A. THE CHAIR AND VICE CHAIR OF THE COMMISSION AND ANY 15 OTHER MEMBERS OF THE COMMISSION WHO SERVE ON THE EXECUTIVE 16 COMMITTEE SHALL BE VO TING MEMBERS OF THE EXECUTIVE COMMITTEE; AND 17 B. OTHER THAN THE CHAIR, VICE CHAIR, SECRETARY AND 18 TREASURER, THE COMMISSION SHALL ELEC T THREE VOTING MEMBE RS FROM THE 19 CURRENT MEMBERSHIP O F THE COMMISSION. 20 C. THE COMMISSION MAY ELECT EX OFFICIO, NONVOTING 21 MEMBERS FROM A RECOG NIZED NATIONAL COSMETOLOGY PROFESSIO NAL 22 ASSOCIATION AS APPROVED BY THE COMMISSION. THE COMMISSION’S BYLAWS 23 SHALL IDENTIFY QUALI FYING ORGANIZATIONS AND THE MANNER OF AP POINTMENT 24 IF THE NUMBER OF ORG ANIZATIONS SEEKING T O APPOINT AN EX OFFI CIO MEMBER 25 EXCEEDS THE NUMBER O F MEMBERS SPECIFIED IN THIS ARTICLE. 26 3. THE COMMISSION MAY REMOVE ANY MEMBER OF THE EXECUTIVE 27 COMMITTEE AS PROVIDED IN THE COMMISSION’S BYLAWS. 28 4. THE EXECUTIVE COMMITTEE SHALL MEET AT LEAST ANNUALLY . 29 A. ANNUAL EXECUTIVE COMMITTEE MEETINGS , AS WELL AS 30 ANY EXECUTIVE COMMITTEE MEETING AT WHICH IT DOES NOT TA KE OR INTEND TO 31 TAKE FORMAL ACTION O N A MATTER FOR WHICH A COMMISSION VOTE WOULD 32 HOUSE BILL 383 17 OTHERWISE BE REQUIRE D, SHALL BE OPEN TO THE PUBLIC, EXCEPT THAT THE 1 EXECUTIVE COMMITTEE MAY MEET IN A CLOSED, NON–PUBLIC SESSION OF A 2 PUBLIC MEETING WHEN DEALING WITH ANY OF THE MATTERS COVERED UNDER 3 ARTICLE 9.F.4. 4 B. THE EXECUTIVE COMMITTEE SHALL GIVE 5 BUSINESS DAYS 5 ADVANCE NOTICE OF IT S PUBLIC MEETINGS , POSTED ON ITS WEBSIT E AND AS 6 DETERMINED TO PROVID E NOTICE TO PERSONS WITH AN I NTEREST IN THE PUBLI C 7 MATTERS THE EXECUTIVE COMMITTEE INTENDS TO ADDRESS AT THOSE MEE TINGS. 8 5. THE EXECUTIVE COMMITTEE MAY HOLD AN EMERGENCY 9 MEETING WHEN ACTING FOR THE COMMISSION TO : 10 A. MEET AN IMMINENT THRE AT TO PUBLIC HEALTH , SAFETY, 11 OR WELFARE; 12 B. PREVENT A LOSS OF COMMISSION OR MEMBER STATE 13 FUNDS; OR 14 C. PROTECT PUBLIC HEALTH AND SAFETY. 15 E. THE COMMISSION SHALL ADOP T AND PROVIDE TO THE MEMBER 16 STATES AN ANNUAL REPO RT. 17 F. MEETINGS OF THE COMMISSION. 18 1. ALL MEETINGS OF THE COMMISSION THAT ARE N OT CLOSED 19 PURSUANT TO ARTICLE 9.F.4. SHALL BE OPEN TO THE PUBLIC. NOTICE OF PUBLIC 20 MEETINGS SHALL BE PO STED ON THE COMMISSION’S WEBSITE AT LEAST 30 DAYS 21 PRIOR TO THE PUBLIC MEETING . 22 2. NOTWITHSTANDING ARTICLE 9.F.1., THE COMMISSION MAY 23 CONVENE AN EMERGENCY PUBLIC MEETING BY PR OVIDING AT LEAST 24 HOURS 24 PRIOR NOTICE ON THE COMMISSION’S WEBSITE, AND ANY OTHER MEANS AS 25 PROVIDED IN THE COMMISSION’S RULES, FOR ANY OF THE REASO NS IT MAY 26 DISPENSE WITH NOTICE OF PROPOSE D RULEMAKING UNDER ARTICLE 11.L. THE 27 COMMISSION’S LEGAL COUNSEL SHAL L CERTIFY THAT ONE O F THE REASONS 28 JUSTIFYING AN EMERGE NCY PUBLIC MEETING H AS BEEN MET. 29 3. NOTICE OF ALL COMMISSION MEETINGS S HALL PROVIDE THE 30 TIME, DATE, AND LOCATION OF THE MEETING, AND IF THE MEETING I S TO BE HELD 31 OR ACCESSIBLE VIA TE LECOMMUNICATION , VIDEO CONFERENCE , OR OTHER 32 ELECTRONIC MEANS , THE NOTICE SHALL INC LUDE THE MECHANISM F OR ACCESS TO 33 18 HOUSE BILL 383 THE MEETIN G. 1 4. THE COMMISSION MAY CONVEN E IN A CLOSED , NON–PUBLIC 2 MEETING FOR THE COMMISSION TO DISCUSS : 3 A. NON–COMPLIANCE OF A MEMBER STATE WITH ITS 4 OBLIGATIONS UNDER TH E COMPACT; 5 B. THE EMPLOYMENT , COMPENSATION , DISCIPLINE OR OTHER 6 MATTERS, PRACTICES OR PROCEDURES RELATE D TO SPECIFIC EMPLOY EES OR 7 OTHER MATTERS RELATE D TO THE COMMISSION’S INTERNAL PERSONNEL 8 PRACTICES AND PROCED URES; 9 C. CURRENT OR THREATENED DISCIPLINE OF A LICENSEE BY 10 THE COMMISSION OR BY A MEMBER STATE’S LICENSING AUTHORITY; 11 D. CURRENT, THREATENED , OR REASONABLY ANTICI PATED 12 LITIGATION; 13 E. NEGOTIATION OF CONTRA CTS FOR THE PURCHASE , LEASE, 14 OR SALE OF GOODS , SERVICES, OR REAL ESTATE ; 15 F. ACCUSING ANY PERSON O F A CRIME OR FORMALL Y 16 CENSURING ANY PERSON ; 17 G. TRADE SECRE TS OR COMMERCIAL OR FINANCIAL 18 INFORMATION THAT IS PRIVILEGED OR CONFID ENTIAL; 19 H. INFORMATION OF A PERS ONAL NATURE WHERE 20 DISCLOSURE WOULD CON STITUTE A CLEARLY UN WARRANTED INVASION O F 21 PERSONAL PRIVACY ; 22 I. INVESTIGATIVE RECORDS COMPILED FOR LAW 23 ENFORCEMENT PURPOSES ; 24 J. INFORMATION RELATED T O ANY INVESTIGATIVE REPORTS 25 PREPARED BY OR ON BE HALF OF OR FOR USE O F THE COMMISSION OR OTHER 26 COMMITTEE CHARGED WI TH RESPONSIBILITY OF INVESTIGATION OR 27 DETERMINATION O F COMPLIANCE ISSUES PURSUANT TO THE COMPACT; 28 K. LEGAL ADVICE; 29 L. MATTERS SPECIFICALLY EXEMPTED FROM DISCLO SURE TO 30 HOUSE BILL 383 19 THE PUBLIC BY FEDERA L OR MEMBER STATE LAW; OR 1 M. OTHER MATTERS AS PROM ULGATED BY THE COMMISSION 2 BY RULE. 3 5. IF A MEETING , OR PORTION OF A MEET ING, IS CLOSED, THE 4 PRESIDING OFFICER SH ALL STATE THAT THE M EETING WILL BE CLOSE D AND 5 REFERENCE EACH RELEV ANT EXEMPTING PROVIS ION, AND SUCH REFERENCE 6 SHALL BE RECORDED IN THE MINUTES. 7 6. THE COMMISSION SHALL KEEP MINUTES THAT FULLY AND 8 CLEARLY DESCRIBE ALL MATTERS DISCUSSED IN A MEETING AND SHALL PROVIDE A 9 FULL AND ACCURATE SU MMARY OF ACTIONS TAK EN, AND THE REASON S THEREFOR, 10 INCLUDING A DESCRIPT ION OF THE VIEWS EXP RESSED. ALL DOCUMENTS 11 CONSIDERED IN CONNEC TION WITH AN A CTION SHALL BE IDENT IFIED IN SUCH 12 MINUTES. ALL MINUTES AND DOCUM ENTS OF A CLOSED MEE TING SHALL REMAIN 13 UNDER SEAL , SUBJECT TO RELEASE O NLY BY A MAJORITY VO TE OF THE 14 COMMISSION OR ORDER O F A COURT OF COMPETE NT JURISDICTION . 15 G. FINANCING OF THE COMMISSION. 16 1. THE COMMISSION SHALL PAY , OR PROVIDE FOR THE P AYMENT 17 OF, THE REASONABLE EXPEN SES OF ITS ESTABLISH MENT, ORGANIZATION , AND 18 ONGOING ACTIVITIES . 19 2. THE COMMISSION MAY ACCEPT ANY AND ALL APPROPRI ATE 20 SOURCES OF REVENUE , DONATIONS, AND GRANTS OF MONEY , EQUIPMENT, 21 SUPPLIES, MATERIALS, AND SERVICES. 22 3. THE COMMISSION MAY LEVY O N AND COLLECT AN ANN UAL 23 ASSESSMENT FROM EACH MEMBER STATE AND IMPOSE FEES ON LICENSEES OF 24 MEMBER STATES TO WHOM IT GRA NTS A MULTISTATE LICENSE TO COVER THE 25 COST OF THE OPERATIO NS AND ACTIVITIES OF THE COMMISSION AND ITS ST AFF, 26 WHICH MUST BE IN A T OTAL AMOUNT SUFFICIE NT TO COVER ITS ANNU AL BUDGET 27 AS APPROVED EACH YEA R FOR WHICH REVENUE IS NOT PROVIDED BY O THER 28 SOURCES. THE AGGREGATE ANNUAL ASSESSMENT AMOUNT FO R MEMBER STATES 29 SHALL BE ALLOCATED B ASED UPON A FORMULA THAT THE COMMISSION SHALL 30 PROMULGATE BY RULE. 31 4. THE COMMISSION MAY NOT INCUR OBLIGATIONS OF ANY KIND 32 PRIOR TO SECURING THE ADEQUATE FUNDS TO MEET THE SAME ; NOR SHALL THE 33 COMMISSION PLEDGE THE CREDIT OF ANY MEMBER STATES, EXCEPT BY AND WITH 34 THE AUTHORITY OF THE MEMBER STATE. 35 20 HOUSE BILL 383 5. THE COMMISSION SHALL KEEP ACCURATE ACCOUNTS OF ALL 1 RECEIPTS AND DISBURS EMENTS. THE RECEIPTS AND DISB URSEMENTS OF THE 2 COMMISSION SHALL BE S UBJECT TO THE FINANC IAL REVIEW AND ACCOU NTING 3 PROCEDURES ESTABLISH ED UNDER ITS BYLAWS . ALL RECEIPTS AND 4 DISBURSEMENTS OF FUN DS HANDLED BY THE COMMISSION SHALL BE S UBJECT TO 5 AN ANNUAL FINANCIAL REVIEW BY A CERTIFIED OR LICENSED PUBLIC ACCO UNTANT 6 AND THE REPORT OF TH E FINANCIAL REVIEW S HALL BE INCLUDED IN AND BECOME 7 PART OF THE ANNUAL R EPORT OF THE COMMISSION. 8 H. QUALIFIED IMMUNITY, DEFENSE, AND INDEMNIFICATION . 9 1. THE MEMBERS , OFFICERS, EXECUTIVE DIRECTOR, EMPLOYEES 10 AND REPRESENTATIVES OF THE COMMISSION SHALL BE I MMUNE FROM SUIT AND 11 LIABILITY, BOTH PERSONALLY AND IN THEIR OFFICIAL CA PACITY, FOR ANY CLAIM 12 FOR DAMAGE TO OR LOS S OF PROPERTY OR PER SONAL INJURY OR OTHE R CIVIL 13 LIABILITY CAUSED BY OR ARISING OUT OF ANY ACT UAL OR ALLEGED ACT , ERROR, 14 OR OMISSION THAT OCC URRED, OR THAT THE PERSON A GAINST WHOM THE CLAI M 15 IS MADE HAD A REASON ABLE BASIS FOR BELIE VING OCCURRED WITHIN THE SCOPE 16 OF COMMISSION EMPLOYMENT , DUTIES OR RESPONSIBI LITIES; PROVIDED THAT 17 NOTHING IN THIS PARAG RAPH MAY BE CONSTRUED TO PROT ECT ANY SUCH PERSON 18 FROM SUIT OR LIABILI TY FOR ANY DAMAGE , LOSS, INJURY, OR LIABILITY CAUSED BY 19 THE INTENTIONAL OR W ILLFUL OR WANTON MIS CONDUCT OF THAT PERS ON. THE 20 PROCUREMENT OF INSUR ANCE OF ANY TYPE BY THE COMMISSION MAY NOT IN ANY 21 WAY COMPROMISE OR LI MIT THE IMMUNITY GRA NTED HEREUNDER . 22 2. THE COMMISSION SHALL DEFE ND ANY MEMBER , OFFICER, 23 EXECUTIVE DIRECTOR , EMPLOYEE, AND REPRESENTATIVE O F THE COMMISSION IN 24 ANY CIVIL ACTION SEE KING TO IMPOSE LIABI LITY ARISING OUT OF ANY ACTUAL OR 25 ALLEGED ACT , ERROR, OR OMISSION THAT OCC URRED WITHIN THE SCO PE OF 26 COMMISSION EMPLOYMENT , DUTIES, OR RESPONSIBILITIES , OR AS DETERMINED BY 27 THE COMMISSION THAT THE P ERSON AGAINST WHOM THE CLA IM IS MADE HAD A 28 REASONABLE BASIS FOR BELIEVING OCCURRED W ITHIN THE SCOPE OF 29 COMMISSION EMPLOYMENT , DUTIES, OR RESPONSIBILITIES ; PROVIDED THAT 30 NOTHING HEREIN MAY BE CONSTRUED TO PROH IBIT THAT PERSON FRO M 31 RETAINING THEIR OWN COUNSEL AT T HEIR OWN EXPENSE ; AND PROVIDED FURTHER 32 THAT THE ACTUAL OR A LLEGED ACT, ERROR, OR OMISSION DID NOT RESULT FROM 33 THAT PERSON ’S INTENTIONAL OR WIL LFUL OR WANTON MISCO NDUCT. 34 3. THE COMMISSION SHALL INDE MNIFY AND HOLD HARML ESS ANY 35 MEMBER, OFFICER, EXECUTIVE D IRECTOR, EMPLOYEE, AND REPRESENTATIVE O F 36 THE COMMISSION FOR THE AM OUNT OF ANY SETTLEME NT OR JUDGMENT OBTAI NED 37 AGAINST THAT PERSON ARISING OUT OF ANY A CTUAL OR ALLEGED ACT , ERROR, OR 38 HOUSE BILL 383 21 OMISSION THAT OCCURR ED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT , 1 DUTIES, OR RESPONSIBILITIES , OR THAT SUCH PERSON HAD A REASONA BLE BASIS 2 FOR BELIEVING OCCURR ED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT , 3 DUTIES, OR RESPONSIBILITIES ; PROVIDED THAT THE AC TUAL OR ALLEGED ACT , 4 ERROR, OR OMISSION DID NOT RESULT FROM THE INTE NTIONAL OR WILLFUL OR 5 WANTON MISCONDUCT OF THAT PERSON . 6 4. NOTHING HEREIN SHALL BE CONSTRUED AS A LI MITATION ON 7 THE LIABILITY OF ANY LICENSEE FOR PROFESSI ONAL MALPRACTICE OR 8 MISCONDUCT , WHICH SHALL BE GOVER NED SOLELY BY ANY OT HER APPLICABLE 9 STATE LAWS. 10 5. NOTHING IN THIS COMPACT SHALL BE INTE RPRETED TO WAIVE 11 OR OTHERWISE ABROGAT E A MEMBER STATE’S STATE ACTION IMMUNITY OR STATE 12 ACTION AFFIRMATIVE D EFENSE WITH RESPECT TO ANTITRUST CLAIMS UNDER THE 13 FEDERAL SHERMAN ACT, FEDERAL CLAYTON ACT, OR ANY OTHER STATE OR 14 FEDERAL ANTITRUST OR ANTICOMPETITIVE LAW OR REGULATION . 15 6. NOTHING IN THIS COMPACT SHALL BE CONS TRUED TO BE A 16 WAIVER OF SOVEREIGN IMMUNITY BY THE MEMBER STATES OR BY THE 17 COMMISSION. 18 ARTICLE 10. DATA SYSTEM. 19 A. THE COMMISSION SHALL PROV IDE FOR THE DEVELOPM ENT, 20 MAINTENANCE , OPERATION, AND UTILIZATION OF A COORDINATED DATABASE AND 21 REPORTING SYSTEM . 22 B. THE COMMISSION SHALL ASSI GN EACH APPLICANT FO R A MULTISTATE 23 LICENSE A UNIQUE IDEN TIFIER, AS DETERMINED BY THE RULES OF THE 24 COMMISSION. 25 C. NOTWITHSTANDING ANY O THER PROVISION OF STATE LAW TO THE 26 CONTRARY, A MEMBER STATE SHALL SUBMIT A UNIFORM DATA SET TO THE DATA 27 SYSTEM ON ALL INDIVID UALS TO WHOM THIS COMPACT IS APPLICABLE AS 28 REQUIRED BY THE RULES OF THE COMMISSION, INCLUDING: 29 1. IDENTIFYING INFORMATI ON; 30 2. LICENSURE DATA ; 31 3. ADVERSE ACTIONS AGAINST A LIC ENSE AND RELATED THERETO; 32 22 HOUSE BILL 383 4. NON–CONFIDENTIAL INFORMA TION RELATED TO ALTERNATIVE 1 PROGRAM PARTICIPATION , THE BEGINNING AND EN DING DATES OF SUCH 2 PARTICIPATION , AND OTHER INFORMATIO N RELATED TO SUCH PARTICIPATION ; 3 5. ANY DENIAL OF APPLICA TION FOR LICENSURE A ND THE REASON 4 FOR THE DENIAL (EXCLUDING THE REPORT ING OF ANY CRIMINAL HISTORY RECORD 5 INFORMATION WHERE PR OHIBITED BY LAW ); 6 6. THE EXISTENCE OF INVESTIGATIVE INFORMATION ; 7 7. THE EXISTENCE OF CURRENT SIGNIFICANT INVESTIGATIVE 8 INFORMATION ; AND 9 8. OTHER INFORMATION THA T MAY FACILITATE THE 10 ADMINISTRATION OF TH IS COMPACT OR THE PROTEC TION OF THE PUBLIC , AS 11 DETERMINED BY THE RULES OF THE COMMISSION. 12 D. THE RECORDS AND INFOR MATION PROVIDED TO A MEMBER STATE 13 PURSUANT TO THIS COMPACT OR THROUGH TH E DATA SYSTEM, WHEN CERTIFIED 14 BY THE COMMISSION OR AN AGEN T THEREOF, SHALL CONSTITUTE THE 15 AUTHENTICATED BUSINE SS RECORDS OF THE COMMISSION, AND SHALL BE 16 ENTITLED TO ANY ASSO CIATED HEARSAY EXCEP TION IN ANY RELEVANT JUDICIAL, 17 QUASI–JUDICIAL OR ADMINIST RATIVE PROCEEDINGS I N A MEMBER STATE. 18 E. THE EXISTENCE OF CURRENT SIGNIFICANT INVESTIGATIVE 19 INFORMATION AND THE E XISTENCE OF INVESTIGATIVE INFORMATI ON PERTAINING 20 TO A LICENSEE IN ANY MEMBER STATE WILL ONLY BE AV AILABLE TO OTHER 21 MEMBER STATES. 22 F. IT IS THE RESPONSIBIL ITY OF THE MEMBER STATES TO MONITOR THE 23 DATABASE TO DETERMIN E WHETHER ADVERSE ACTION HAS BEEN TAKEN AGAINST 24 SUCH A LICENSEE OR LICENSE A PPLICANT. ADVERSE ACTION INFORMATION 25 PERTAINING TO A LICENSEE OR LICENSE A PPLICANT IN ANY MEMBER STATE WILL 26 BE AVAILABLE TO ANY OTHER MEMBER STATE. 27 G. MEMBER STATES CONTRIBUTING I NFORMATION TO THE DATA SYSTEM 28 MAY DESIGNATE INFORM ATION THAT MAY NOT B E SHARED WITH THE PU BLIC 29 WITHOUT THE EXPRESS PERMISSION OF THE CO NTRIBUTING STATE. 30 H. ANY INFORMATION SUBMITTED TO THE DATA SYSTEM THAT IS 31 SUBSEQUENTLY EXPUNGE D PURSUANT TO FEDERAL LAW OR THE L AWS OF THE 32 MEMBER STATE CONTRIBUTING TH E INFORMATION SHALL BE REMOVED FROM THE 33 DATA SYSTEM. 34 HOUSE BILL 383 23 ARTICLE 11. RULEMAKING . 1 A. THE COMMISSION SHALL PROM ULGATE REASONABLE RULES IN ORDER 2 TO EFFECTIVELY AND E FFICIENTLY IMPLEMENT AND ADMINISTER THE P URPOSES 3 AND PROVISIONS OF TH E COMPACT. A RULE SHALL BE INVALID AND HAVE NO 4 FORCE OR EFFECT ONLY IF A COURT OF COMPET ENT JURISDICTION HOL DS THAT 5 THE RULE IS INVALID BECAU SE THE COMMISSION EXERCISED ITS RULEMAKING 6 AUTHORITY IN A MANNE R THAT IS BEYOND THE SCOPE AND PURPOSES O F THE 7 COMPACT, THE POWERS GRANTED UNDER TH E COMPACT, OR BASED UPON 8 ANOTHER APPLICABLE S TANDARD OF REVIEW . 9 B. THE RULES OF THE COMMISSION SHALL HAVE THE FORCE OF LAW IN 10 EACH MEMBER STATE, PROVIDED HOWEVER THA T WHERE THE RULES OF THE 11 COMMISSION CONFLICT W ITH THE LAWS OF THE MEMBER STATE THAT ESTABLISH 12 THE MEMBER STATE’S SCOPE OF PRACTICE LAWS GOVERNING THE PRACTICE OF 13 COSMETOLOGY AS HELD BY A COURT OF COMPETENT J URISDICTION, THE RULES OF 14 THE COMMISSION SHALL BE I NEFFECTIVE IN THAT STATE TO THE EXTENT O F THE 15 CONFLICT. 16 C. THE COMMISSION SHALL EXER CISE ITS RULEMAKING POWERS 17 PURSUANT TO THE CRITERIA SET FOR TH IN THIS ARTICLE AND THE RULES 18 ADOPTED THEREUNDER . RULES SHALL BECOME BI NDING AS OF THE DATE 19 SPECIFIED BY THE COMMISSION FOR EACH RULE. 20 D. IF A MAJORITY OF THE LEGISLATURES OF THE MEMBER STATES 21 REJECTS A RULE OR PORTION OF A RULE, BY ENACTMENT OF A ST ATUTE OR 22 RESOLUTIO N IN THE SAME MANNER USED TO ADOPT THE COMPACT WITHIN 4 YEARS 23 OF THE DATE OF ADOPT ION OF THE RULE, THEN THE RULE MAY NOT HAVE FURTHER 24 FORCE AND EFFECT IN ANY MEMBER STATE OR TO ANY STATE APPLYING TO 25 PARTICIPATE IN THE COMPACT. 26 E. RULES SHALL BE ADOPTE D AT A REGULAR OR SPEC IAL MEETING OF THE 27 COMMISSION. 28 F. PRIOR TO THE ADOPTION OF A PROPOS ED RULE, THE COMMISSION 29 SHALL HOLD A PUBLIC HEARING AND ALLOW PERSONS TO PROVIDE ORAL AND 30 WRITTEN COMMENTS , DATA, FACTS, OPINIONS, AND ARGUMENTS . 31 G. PRIOR TO THE ADOPTION OF A PROPOS ED RULE BY THE COMMISSION, 32 AND AT LEAST 30 DAYS IN ADVANCE OF T HE MEETING AT WHICH THE COMMISSION 33 WILL HOLD A PUBLIC H EARING ON THE PROPOS ED RULE, THE COMMISSION SHALL 34 PROVIDE A NOTICE OF PROPOSED RULEMAKING : 35 24 HOUSE BILL 383 1. ON THE WEBSITE OF TH E COMMISSION OR OTHER P UBLICLY 1 ACCESSIBLE PLATFORM ; 2 2. TO PERSONS WHO HAVE R EQUESTED NOTICE OF T HE 3 COMMISSION’S NOTICES OF PROPOSE D RULEMAKING ; AND 4 3. IN ANY SUCH WAY THE COMMISSION MAY BY RULE SPECIFY. 5 H. THE NOTICE OF PROPOSE D RULEMAKING SHALL INCLUDE: 6 1. THE TIME, DATE, AND LOCATION OF THE PUBLIC HEARING AT 7 WHICH THE COMMISSION WILL HEAR PUBLIC COMMENTS ON T HE PROPOSED RULE 8 AND, IF DIFFERENT, THE TIME, DATE, AND LOCATION OF THE MEETING WHERE THE 9 COMMISSION WILL CONSI DER AND VOTE ON THE PROPOSED RULE; 10 2. IF THE HEARING IS HEL D VIA TELECOMMUNICAT ION, VIDEO 11 CONFERENCE , OR OTHER ELECTRONIC MEANS, THE COMMISSION SHALL INCL UDE 12 THE MECHANISM FOR AC CESS TO THE HEARING IN THE NOTICE OF PRO POSED 13 RULEMAKI NG; 14 3. THE TEXT OF THE PROPO SED RULE AND THE REASON THEREFOR; 15 4. A REQUEST FOR COMMENTS ON THE PROPOSED RULE FROM ANY 16 INTERESTED PERSON ; AND 17 5. THE MANNER IN WHICH I NTERESTED PERSONS MAY SUBMIT 18 WRITTEN COMMENTS . 19 I. ALL HEARINGS SHALL BE RECORDED. A COPY OF THE RECORDIN G AND 20 ALL WRITTEN COMMENTS AND DOCUMENTS RECEIV ED BY THE COMMISSION IN 21 RESPONSE TO THE PROP OSED RULE SHALL BE AVAILAB LE TO THE PUBLIC. 22 J. NOTHING IN THIS ARTICLE MAY BE CONSTRUED AS REQU IRING A 23 SEPARATE HEARING ON EACH RULE. RULES MAY BE GROUPED FOR THE 24 CONVENIENCE OF THE COMMISSION AT HEARING S REQUIRED BY THIS ARTICLE. 25 K. THE COMMISSION SHALL , BY MAJORITY VOTE OF ALL MEMBERS , TAKE 26 FINAL ACTION ON THE PROPOSED RULE BASED ON THE RUL EMAKING RECORD AND 27 THE FULL TEXT OF TH E RULE. 28 1. THE COMMISSION MAY ADOPT CHANGES TO THE PROPO SED RULE 29 PROVIDED THE CHANGES DO NOT ENLARGE THE O RIGINAL PURPOSE OF T HE 30 HOUSE BILL 383 25 PROPOSED RULE. 1 2. THE COMMISSION SHALL PROV IDE AN EXPLANATION O F THE 2 REASONS FOR SUBSTANT IVE CHANGES MADE TO THE PROPOS ED RULE AS WELL AS 3 REASONS FOR SUBSTANT IVE CHANGES NOT MADE THAT WERE RECOMMENDE D BY 4 COMMENTERS . 5 3. THE COMMISSION SHALL DETE RMINE A REASONABLE E FFECTIVE 6 DATE FOR THE RULE. EXCEPT FOR AN EMERGEN CY AS PROVIDED IN ARTICLE 11.L., 7 THE EFFECTIVE DATE O F THE RULE SHALL BE NO SOON ER THAN 45 DAYS AFTER THE 8 COMMISSION ISSUING TH E NOTICE THAT IT ADO PTED OR AMENDED THE RULE. 9 L. UPON A DETERMINATION THAT AN EMERGENCY EX ISTS, THE 10 COMMISSION MAY CONSID ER AND ADOPT AN EMER GENCY RULE WITHIN 5 DAYS, 11 WITH OPPORTUNITY T O COMMENT , PROVIDED THAT THE US UAL RULEMAKING 12 PROCEDURES PROVIDED IN THE COMPACT AND IN THIS ARTICLE SHALL BE 13 RETROACTIVELY APPLIE D TO THE RULE AS SOON AS REASO NABLY POSSIBLE , IN NO 14 EVENT LATER THAN 90 DAYS AFTER THE EFFEC TIVE DATE OF THE RULE. FOR THE 15 PURPOSES OF THIS PROVIS ION, AN EMERGENCY RULE IS ONE THAT MUST BE 16 ADOPTED IMMEDIATELY TO: 17 1. MEET AN IMMINENT THRE AT TO PUBLIC HEALTH , SAFETY, OR 18 WELFARE; 19 2. PREVENT A LOSS OF COMMISSION OR MEMBER STATE FUNDS; 20 3. MEET A DEADLINE FOR T HE PROMULGATION OF A RULE THAT IS 21 ESTABLISHED BY FEDER AL LAW OR RULE ; OR 22 4. PROTECT PUBLIC HEALTH AND SAFETY. 23 M. THE COMMISSION OR AN AUTH ORIZED COMMITTEE OF THE 24 COMMISSION MAY DIRECT REVISIONS TO A PREVI OUSLY ADOPTED RULE FOR 25 PURPOSES OF CORRECTI NG TYPOGRAPHICAL ERR ORS, ERRORS IN FORMAT , 26 ERRORS IN CONSISTENC Y, OR GRAMMATICAL ERROR S. PUBLIC NOTICE OF ANY 27 REVISIONS SHALL BE P OSTED ON THE WEBSITE OF THE COMMISSION. THE REVISION 28 SHALL BE SUBJECT TO CHALLENGE BY ANY PERSON FOR A PERIOD OF 30 DAYS 29 AFTER POSTING . THE REVISION MAY BE C HALLENGED ONLY ON GR OUNDS THAT THE 30 REVISION RESULTS IN A MATERIAL CHANGE TO A RULE. A CHALLENGE SHALL BE 31 MADE IN WRITING AND DELIVERED TO THE COMMISSION PRIOR TO THE END OF THE 32 NOTICE PERIOD . IF NO CHALLENGE IS MADE , THE REVISION WILL TA KE EFFECT 33 WITHOUT FURTHER ACTI ON. IF THE REVISION IS CH ALLENGED, THE REVISION MAY 34 NOT TAKE EFFECT WITH OUT THE APPROVAL OF THE COMMISSION. 35 26 HOUSE BILL 383 N. NO MEMBER STATE’S RULEMAKING REQUIRE MENTS MAY APPLY UNDER 1 THIS COMPACT. 2 ARTICLE 12. OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT . 3 A. OVERSIGHT. 4 1. THE EXECUTIVE AND JUD ICIAL BRANCHES OF STATE 5 GOVERNMENT IN EACH MEMBER STATE SHALL ENFORCE T HIS COMPACT AND TAKE 6 ALL ACTIONS NECESSAR Y AND APPROPRIATE TO IMPLEMENT THE COMPACT. 7 2. VENUE IS PROPER AND J UDICIAL PROCEEDINGS BY OR AGAINST 8 THE COMMISSION SHALL BE B ROUGHT SOLELY AND EX CLUSIVELY IN A COURT OF 9 COMPETENT JURISDICTI ON WHERE THE PRINCIP AL OFFICE OF THE COMMISSION IS 10 LOCATED. THE COMMISSION MAY WAIVE VENUE AND JU RISDICTIONAL DEFENSE S 11 TO THE EXTENT IT ADO PTS OR CONSENTS TO P ARTICIPATE IN ALTERN ATIVE 12 DISPUTE RESOLUTION P ROCEEDINGS . NOTHING HEREIN SHALL AFFECT OR LIMI T 13 THE SELECTION OR PRO PRIETY OF VENUE IN A NY ACTION AGAINST A LICENSEE FOR 14 PROFESSIONAL MALPRAC TICE, MISCONDUCT OR ANY SU CH SIMILAR MATTER . 15 3. THE COMMISSION SHALL BE E NTITLED TO RECEIVE S ERVICE OF 16 PROCESS IN ANY PROCE EDING REGARDING THE ENFORCEMENT OR 17 INTERPRETATION OF TH E COMPACT AND SHALL HAV E STANDING TO INTERV ENE IN 18 SUCH A PROCEEDING FO R ALL PURPOSES. FAILURE TO PROVIDE TH E COMMISSION 19 SERVICE OF PROCESS S HALL RENDER A JUDGME NT OR ORDER VOID AS TO THE 20 COMMISSION, THIS COMPACT, OR PROMULGATED RULES. 21 B. DEFAULT, TECHNICAL ASSISTANCE, AND TERMINATION. 22 1. IF THE COMMISSION DETERMINES THAT A MEMBER STATE HAS 23 DEFAULTED IN THE PER FORMANCE OF ITS OBLI GATIONS OR RESPONSIB ILITIES 24 UNDER THIS COMPACT OR THE PROMUL GATED RULES, THE COMMISSION SHALL 25 PROVIDE WRITTEN NOTI CE TO THE DEFAULTING STATE. THE NOTICE OF DEFAULT 26 SHALL DESCRIBE THE D EFAULT, THE PROPOSED MEANS OF CURING THE DEFAULT , 27 AND ANY OTHER ACTION THAT THE COMMISSION MAY TAKE , AND SHALL OFFER 28 TRAINING AND SPECIFI C TECHNICAL ASSISTAN CE REGARDING THE DEF AULT. 29 2. THE COMMISSION SHALL PROV IDE A COPY OF THE NO TICE OF 30 DEFAULT TO THE OTHER MEMBER STATES. 31 3. IF A STATE IN DEFAULT FAIL S TO CURE THE DEFAUL T, THE 32 DEFAULTING STATE MAY BE TERMINAT ED FROM THE COMPACT AFTER AN 33 HOUSE BILL 383 27 AFFIRMATIVE VOTE OF A MAJORITY OF THE DE LEGATES OF THE MEMBER STATES, 1 AND ALL RIGHTS , PRIVILEGES AND BENEF ITS CONFERRED ON THA T STATE BY THIS 2 COMPACT MAY BE TERMIN ATED ON THE EFFECTIV E DATE OF TERMINATIO N. A CURE 3 OF THE DEFAULT DOES NOT RELIEVE THE OFFE NDING STATE OF OBLIGATIONS OR 4 LIABILITIES INCURRED DURING THE PERIOD OF DEFAULT. 5 4. TERMINATION OF MEMBER SHIP IN THE COMPACT SHALL BE 6 IMPOSED ONLY AFTER A LL OTHER MEANS OF SE CURING COMPLIANCE HA VE BEEN 7 EXHAUSTED. NOTICE OF INTENT TO S USPEND OR TERMINATE SHALL BE GIVEN BY 8 THE COMMISSION TO THE GOV ERNOR, THE MAJORITY AND MIN ORITY LEADERS OF 9 THE DEFAULTING STATE’S LEGISLATURE , THE DEFAULTING STATE’S STATE 10 LICENSING AUTHORITY AND EACH OF THE MEMBER STATES’ STATE LICENSING 11 AUTHORITY. 12 5. A STATE THAT HAS BEEN T ERMINATED IS RESPONS IBLE FOR ALL 13 ASSESSMENTS , OBLIGATIONS, AND LIABILITIES INCU RRED THROUGH THE 14 EFFECTIVE DATE OF TE RMINATION, INCLUDING OBLIGATION S THAT EXTEND 15 BEYOND THE EFFECTIVE DATE OF TERMINATION . 16 6. UPON THE TERMINATION OF A STATE’S MEMBERSHIP FROM TH IS 17 COMPACT, THAT STATE SHALL IMMEDIATE LY PROVIDE NOTICE TO ALL LICENSEES 18 WHO HOLD A MULTISTATE LICENSE WITHIN THAT STATE OF SUCH TERMINATION . 19 THE TERMINATED STATE SHALL CONTINUE TO RECOGNIZE ALL LICENSES GRANTED 20 PURSUANT TO THIS COMPACT FOR A MINIMUM OF 180 DAYS AFTER THE DATE OF 21 SAID NOTICE OF TERMINATIO N. 22 7. THE COMMISSION MAY NOT BEAR ANY COSTS R ELATED TO A 23 STATE THAT IS FOUND T O BE IN DEFAULT OR T HAT HAS BEEN TERMINA TED FROM 24 THE COMPACT, UNLESS AGREED UPON I N WRITING BETWEEN TH E COMMISSION AND 25 THE DEFAULTING STATE. 26 8. THE DEFAULTING STATE MAY APPEAL THE ACTION OF THE 27 COMMISSION BY PETITIO NING THE UNITED STATES DISTRICT COURT FOR THE 28 DISTRICT OF COLUMBIA OR THE FEDER AL DISTRICT WHERE TH E COMMISSION HAS 29 ITS PRINCIPAL OFFICE S. THE PREVAILING PARTY SHALL BE AWARDED ALL COSTS 30 OF SUCH LITIGATION, INCLUDING REASONABLE ATTORNEY’S FEES. 31 C. DISPUTE RESOLUTION. 32 1. UPON REQUEST BY A MEMBER STATE, THE COMMISSION SHALL 33 ATTEMPT TO RESOLVE D ISPUTES RELATED TO T HE COMPACT THAT ARISE AM ONG 34 MEMBER STATES AND BETWEEN MEMBER AND NON –MEMBER STATES. 35 28 HOUSE BILL 383 2. THE COMMISSION SHALL PROM ULGATE A RULE PROVIDING FOR 1 BOTH MEDIATION AND B INDING DISPUTE RESOL UTION FOR DISPUTES A S 2 APPROPRIATE . 3 D. ENFORCEMENT . 4 1. THE COMMISSION, IN THE REASONABLE EX ERCISE OF ITS 5 DISCRETION, SHALL ENFORCE THE PR OVISIONS OF THIS COMPACT A ND THE 6 COMMISSION’S RULES. 7 2. BY MAJORITY VOTE AS P ROVIDED BY COMMISSION RULE, THE 8 COMMISSION MAY INITIA TE LEGAL ACTION AGAI NST A MEMBER STATE IN DEFAULT 9 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA OR THE 10 FEDERAL DISTRICT WHE RE THE COMMISSION HAS ITS PR INCIPAL OFFICES TO 11 ENFORCE COMPLIANCE W ITH THE PROVISIONS O F THE COMPACT AND ITS 12 PROMULGATED RULES. THE RELIEF SOUGHT MAY INCLUDE BOTH INJUNCT IVE 13 RELIEF AND DAMAGES . IN THE EVENT JUDICIAL ENFORCEMENT IS NECES SARY, THE 14 PREVAILING PARTY SHALL BE AWARDED ALL COSTS OF SUCH LITIGA TION, 15 INCLUDING REASONABLE ATTORNEY’S FEES. THE REMEDIES HEREIN MAY NOT BE 16 THE EXCLUSIVE REMEDI ES OF THE COMMISSION. THE COMMISSION MAY PURSUE 17 ANY OTHER REMEDIES A VAILABLE UNDER FEDER AL OR THE DEFAULTING MEMBER 18 STATE’S LAW. 19 3. A MEMBER STATE MAY INITIATE LE GAL ACTION AGAINST T HE 20 COMMISSION IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF 21 COLUMBIA OR THE FEDER AL DISTRICT WHERE TH E COMMISSION HAS ITS 22 PRINCIPAL OFFICES TO ENFORCE COMPLIANCE W ITH THE PROVISIO NS OF THE 23 COMPACT AND ITS PROMU LGATED RULES. THE RELIEF SOUGHT MAY INCLUDE 24 BOTH INJUNCTIVE RELI EF AND DAMAGES . IN THE EVENT JUDICIAL ENFORCEMENT 25 IS NECESSARY, THE PREVAILING PARTY SHALL BE AWARDED ALL COSTS OF SUCH 26 LITIGATION, INCLUDING REASONABLE ATTORNEY’S FEES. 27 4. NO INDIVIDUAL OR ENTI TY OTHER THAN A MEMBER STATE MAY 28 ENFORCE THIS COMPACT AGAINST THE COMMISSION. 29 ARTICLE 13. EFFECTIVE DATE, WITHDRAWAL, AND AMENDMENT . 30 A. THE COMPACT SHALL COME IN TO EFFECT ON THE DAT E ON WHICH THE 31 COMPACT STATUTE IS EN ACTED INTO LAW IN TH E SEVENTH MEMBER STATE. 32 1. ON OR AFTER THE EFFEC TIVE DATE OF THE COMPACT, THE 33 COMMISSION SHALL CONV ENE AND REVIEW THE E NACTMENT OF EACH OF THE 34 CHARTER MEMBER STATES TO DETERMINE I F THE STATUTE ENACTE D BY EACH 35 HOUSE BILL 383 29 SUCH CHARTER MEMBER STATE IS MATERIALLY D IFFERENT THAN THE MO DEL 1 COMPACT STATUTE . 2 A. A CHARTER MEMBER STATE WHOSE ENACTMENT IS FOUND 3 TO BE MATERIALLY DIF FERENT FROM THE MODE L COMPACT STATUTE SHALL BE 4 ENTITLED TO THE DEFAU LT PROCESS SET FORTH IN ARTICLE 12. 5 B. IF ANY MEMBER STATE IS LATER FOUND TO BE IN DEFAULT, 6 OR IS TERMINATED OR WITHDRAWS FROM THE COMPACT, THE COMMISSION SHALL 7 REMAIN IN EXISTENCE AND THE COMPACT SHALL REMAIN IN EFFECT EVEN IF TH E 8 NUMBER OF MEMBER STATES SHOULD BE LESS THAN 7. 9 2. MEMBER STATES ENACTING THE COMPACT SUBSEQUENT TO THE 10 CHARTER MEMBER STATES SHALL BE SUBJE CT TO THE PROCESS SE T FORTH IN 11 ARTICLE 9.C.24. TO DETERMINE IF THEI R ENACTMENTS ARE MAT ERIALLY 12 DIFFERENT FROM THE M ODEL COMPACT STATUTE AND W HETHER THEY QUALIFY 13 FOR PARTICIPATION IN THE COMPACT. 14 3. ALL ACTIONS TAKEN FOR THE BENEFIT OF THE COMMISSION OR 15 IN FURTHERANCE OF TH E PURPOSES OF THE AD MINISTRATION OF THE COMPACT 16 PRIOR TO THE EFFECTIVE DATE O F THE COMPACT OR THE COMMISSION COMING 17 INTO EXISTENCE SHALL BE CONSIDERED TO BE ACTIONS OF THE COMMISSION 18 UNLESS SPECIFICALLY REPUDIATED BY THE COMMISSION. 19 4. ANY STATE THAT JOINS THE COMPACT SHALL BE SUBJECT TO 20 THE COMMISSION’S RULES AND BYLAWS AS T HEY EXIST ON THE DAT E ON WHICH 21 THE COMPACT BECOMES LAW I N THAT STATE. ANY RULE THAT HAS BEEN 22 PREVIOUSLY ADOPTED B Y THE COMMISSION SHALL HAVE THE FULL FORCE AND 23 EFFECT OF LAW ON THE DAY THE COMPACT BECOMES LA W IN THAT STATE. 24 B. ANY MEMBER STATE MAY WITHDRAW FR OM THIS COMPACT BY 25 ENACTING A STATUTE R EPEALING THAT STATE’S ENACTMENT OF THE COMPACT. 26 1. A MEMBER STATE’S WITHDRAWAL MAY NOT TAKE EFFECT UNTI L 27 180 DAYS AFTER ENACTMENT OF THE REPEALING STA TUTE. 28 2. WITHDRAWAL MAY NOT AFFECT THE CONTI NUING REQUIREMENT 29 OF THE WITHDRAWING STATE’S STATE LICENSING AUTHORITY TO COMPLY W ITH 30 THE INVESTIGATIVE AN D ADVERSE ACTION REPORTING REQU IREMENTS OF THIS 31 COMPACT BEFORE THE EFFECTIVE DATE O F WITHDRAWAL . 32 3. UPON THE ENACTMENT OF A STA TUTE WITHDRAWING FRO M THIS 33 COMPACT, A STATE SHALL IMMEDIATE LY PROVIDE NOTICE OF THE WITHDRAWAL 34 30 HOUSE BILL 383 TO ALL LICENSEES WITHIN THAT STATE. NOTWITHSTANDING ANY S UBSEQUENT 1 STATUTORY ENACTMENT TO THE CONTRARY , SUCH WITHDRAWING STATE SHALL 2 CONTINUE TO RECOGNIZE ALL LIC ENSES GRANTED PURSUANT TO THIS COMPACT 3 FOR A MINIMUM OF 180 DAYS AFTER THE DATE OF THE NOTICE OF WITHDRAWAL . 4 C. NOTHING CONTAINED IN THIS COMPACT MAY BE CONSTRUED TO 5 INVALIDATE OR PREVEN T ANY LICENSURE AGRE EMENT OR OTHER COOPE RATIVE 6 ARRANGEMENT BETWEEN A MEMBER STATE AND A NON –MEMBER STATE THAT 7 DOES NOT CONFLICT WI TH THE PROVISIONS OF THIS COMPACT. 8 D. THIS COMPACT MAY BE AMENDE D BY THE MEMBER STATES. NO 9 AMENDMENT TO THIS COMPACT SHALL BECOME EFFECTIVE AND BINDING UPON 10 ANY MEMBER STATE UNTIL IT IS ENACTED INTO THE LAWS O F ALL MEMBER STATES. 11 ARTICLE 14. CONSTRUCTION AND SEVERABILITY. 12 A. THIS COMPACT AND THE COMMISSION’S RULEMAKING AUTHORI TY 13 SHALL BE LIBERALLY CONSTRU ED SO AS TO EFFECTUA TE THE PURPOSES AND THE 14 IMPLEMENTATION AND A DMINISTRATION OF THE COMPACT. PROVISIONS OF THE 15 COMPACT EXPRESSLY AUT HORIZING OR REQUIRIN G THE PROMULGATION O F 16 RULES MAY NOT BE CONSTRUED TO LIMIT THE COMMISSION’S RULEMAKI NG 17 AUTHORITY SOLELY FOR THOSE PURPOSES . 18 B. THE PROVISIONS OF THI S COMPACT SHALL BE SEVE RABLE AND IF ANY 19 PHRASE, CLAUSE, SENTENCE OR PROVISIO N OF THIS COMPACT IS HELD BY A COURT 20 OF COMPETENT JURISDI CTION TO BE CONTRARY TO THE CONSTITUTION OF ANY 21 MEMBER STATE, A STATE SEEKING PARTICI PATION IN THE COMPACT, OR OF THE 22 UNITED STATES, OR THE APPLICABILITY TO ANY GOVERNMENT , AGENCY, PERSON 23 OR CIRCUMSTANCE IS H ELD TO BE UNCONSTITU TIONAL BY A COURT OF COMPETENT 24 JURISDICTION, THE VALIDITY OF THE REMAINDER OF THIS COMPACT AND THE 25 APPLICABILITY THEREOF TO ANY OTHER GOVERNM ENT, AGENCY, PERSON OR 26 CIRCUMSTANCE MAY NOT BE AFFECTED . 27 C. NOTWITHSTANDING ARTICLE 14.B., THE COMMISSION MAY DENY A 28 STATE’S PARTICIPATION IN T HE COMPACT OR , IN ACCORDANCE WITH T HE 29 REQUIREMENTS OF ARTICLE 12, TERMINATE A MEMBER STATE’S PARTICIPATION 30 IN THE COMPACT, IF IT DETERMINES THA T A CONSTITUTIONAL R EQUIREMENT OF A 31 MEMBER STATE IS A MATERIAL D EPARTURE FROM THE COMPACT. OTHERWISE, IF 32 THIS COMPACT SHALL BE HELD TO BE CONTRARY TO THE CONSTITUTION OF ANY 33 MEMBER STATE, THE COMPACT SHALL REMAIN IN FULL FORCE AND EF FECT AS TO 34 THE REMAINING MEMBER STATES AND IN FULL FO RCE AND EFFECT AS TO THE 35 MEMBER STATE AFFECTED AS TO ALL SEVERABLE MATTERS . 36 HOUSE BILL 383 31 ARTICLE 15. CONSISTENT EFFECT AND CONFLICT WITH OTHER STATE LAWS. 1 A. NOTHING HEREIN SHALL PREVENT OR INHIBIT T HE ENFORCEMENT OF 2 ANY OTHER LAW OF A MEMBER STATE THAT IS NOT INC ONSISTENT WITH THE 3 COMPACT. 4 B. ANY LAWS , STATUTES, REGULATIONS , OR OTHER LEGAL 5 REQUIREMENTS IN A MEMBER STATE IN CONFLICT WIT H THE COMPACT ARE 6 SUPERSEDED TO THE EX TENT OF THE CONFLICT . 7 C. ALL PERMISSIBLE AGREE MENTS BETWEEN THE COMMISSION AND THE 8 MEMBER STATES ARE BINDING IN ACCORDANC E WITH THEIR TERMS . 9 SECTION 2. AND BE IT FURTHER ENACTED, That this Act is contingent on the 10 enacting of substantially similar legislation in six other states. The Maryland Department 11 of Labor shall notify the Department of Legislative Services within 10 days after any state 12 has enacted legislation that is substantially similar to this Act. 13 SECTION 3. AND BE IT FURTHER ENACTED, That , subject to Section 2 of this 14 Act, this Act shall take effect October 1, 2024. 15