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