WES MOORE, Governor Ch. 328 – 1 – Chapter 328 (House Bill 383) AN ACT concerning Cosmetology Licensure Compact FOR the purpose of entering into the Cosmetology Licensure Compact; establishing criteria for participating states; authorizing an individual practicing cosmetology to practice in a party state under certain circumstances; establishing the Cosmetology Licensure Compact Commission and its duties and powers; providing for the amendment of and withdrawal from the Compact; and generally relating to the Cosmetology Licensure Compact. BY adding to Article – Business Occupations and Professions Section 5–6A–01 to be under the new subtitle “Subtitle 6A. Cosmetology Licensure Compact” Annotated Code of Maryland (2018 Replacement Volume and 2023 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows: Article – Business Occupations and Professions SUBTITLE 6A. COSMETOLOGY LICENSURE COMPACT. 5–6A–01. THE COSMETOLOGY LICENSURE COMPACT IS HEREBY ENACTED AN D ENTERED INTO WITH AL L OTHER JURISDICTION S THAT LEGALLY JOIN IN THE COMPACT IN THE FORM SUBSTANTIAL LY AS THE COMPACT APPEARS IN TH IS SECTION AS FOLLOWS : ARTICLE 1. PURPOSE. THE PURPOSE OF THIS COMPACT IS TO FACILIT ATE THE INTERSTATE PRACTICE AND REGULAT ION OF COSMETOLOGY WITH THE GOAL OF IMPROVING PUBLIC ACCESS TO , AND THE SAFETY OF , COSMETOLOGY SERVICES AND REDUCING UNNECESSARY BURDENS RELATED TO COSMETOLOGY LICENSURE. THROUGH THIS COMPACT, THE MEMBER STATES SEEK TO ESTABL ISH A REGULATORY FRA MEWORK WHICH PROVIDES FOR A NEW MULTIST ATE LICENSING PROGRA M. THROUGH THIS NEW LICENSING PROGRA M, THE MEMBER STATES SEEK TO PROVID E INCREASED Ch. 328 2024 LAWS OF MARYLAND – 2 – VALUE AND MOBILITY T O LICENSED COSMETOLOGISTS IN THE MEMBER STATES, WHILE ENSURING THE P ROVISION OF SAFE , EFFECTIVE, AND RELIABLE SER VICES TO THE PUBLIC. THIS COMPACT IS DESIGNED T O ACHIEVE THE FOLLOW ING OBJECTIVES AND THE MEMBER STATES HEREBY RATIFY THE SAME INTENTIONS BY SUBSCRIBING HERETO: A. PROVIDE OPPORTUNITIES FOR INTERSTATE PRACT ICE BY COSMETOLOGISTS WHO MEET UNIFORM REQUIREMENTS FOR MUL TISTATE LICENSURE; B. ENHANCE THE ABILITIES OF MEMBER STATES TO PROTECT PUB LIC HEALTH AND SAFETY AN D PREVENT FRAUD AND UNLICENSED ACTIVITY WITHIN THE PROFESSION; C. ENSURE AND ENCOURAGE COOPERATION BETWEEN MEMBER STATES IN THE LICENSURE AND REGULATION OF THE PRACTICE OF COSMETOLOGY ; D. SUPPORT RELOCATING MI LITARY MEMBERS AND T HEIR SPOUSES; E. FACILITATE THE EXCHAN GE OF INFORMATION BE TWEEN MEMBER STATES RELATED TO THE LICEN SURE, INVESTIGATION , AND DISCIPLINE OF TH E PRACTICE OF COSMETOLOGY ; F. PROVIDE FOR THE LICEN SURE AND MOBILITY OF THE WORKFORCE IN THE PROFESSION WHILE ADDRESSING THE SHORTAGE OF WORKERS AND LESSENIN G THE ASSOCIATED BURDE NS ON THE MEMBER STATES. ARTICLE 2. DEFINITIONS. AS USED IN THIS COMPACT, AND EXCEPT AS OTHERW ISE PROVIDED, THE FOLLOWING DEFINITIONS SHALL GO VERN THE TERMS HEREI N: A. “ACTIVE MILITARY MEMBER” MEANS ANY INDIVIDUAL WITH FULL–TIME DUTY STATUS IN THE ARMED FORCES OF THE UNITED STATES, INCLUDING MEMBERS O F THE NATIONAL GUARD AND RESERVE. B. “ADVERSE ACTION” MEANS ANY ADMINISTRA TIVE, CIVIL, EQUITABLE, OR CRIMINAL ACTION PERMITTED BY A MEMBER STATE’S LAWS WHICH IS IMPOSED BY A STATE LICENSING AUTHORITY OR OTHER REGULATORY BODY AGAINST A COSMETOLOGIST , INCLUDING ACTIONS AG AINST AN INDIVIDUAL ’S LICENSE OR WES MOORE, Governor Ch. 328 – 3 – AUTHORIZATION TO PRACTICE SUCH AS REVO CATION, SUSPENSION, PROBATION, MONITORING OF THE LICENSEE, LIMITATION OF THE LICENSEE’S PRACTICE, OR ANY OTHER ENCUMBRANCE ON A LICENSE AFFECTI NG AN INDIVIDUAL ’S ABILITY TO PARTICIPATE IN THE COSMETOLOGY INDUSTRY, INCLUDING THE ISSUAN CE OF A CEASE AND DESIST ORD ER. C. “ALTERNATIVE PROGRAM” MEANS A NON–DISCIPLINARY MONITOR ING OR PROSECUTORIAL DIV ERSION PROGRAM APPRO VED BY A MEMBER STATE’S STATE LICENSING AUTHORITY. D. “AUTHORIZATION TO PRACTICE” MEANS A LEGAL AUTHOR IZATION ASSOCIATED WITH A MULTISTATE LICENSE PERMITTING TH E PRACTICE OF COSMETOLOGY IN THAT REMOTE STATE, WHICH SHALL BE SUBJE CT TO THE ENFORCEMENT JURISDIC TION OF THE STATE LICENSING AUTHORITY IN THAT REMOTE STATE. E. “BACKGROUND CHECK” MEANS THE SUBMISSION OF INFORMATION FOR AN APPLICANT FOR THE PURPOSE OF OBTAI NING THAT APPLICANT ’S CRIMINAL HISTORY RECORD INFOR MATION, AS FURTHER DEFINED I N 28 C.F.R. § 20.3(D), FROM THE FEDERAL BUREAU OF INVESTIGATION AND THE AG ENCY RESPONSIBLE FOR RETAINING STATE CRIMINAL OR DIS CIPLINARY HISTORY IN THE APPLICANT ’S HOME STATE. F. “CHARTER MEMBER STATE” MEANS MEMBER STATES WHO HAVE ENACTED LEGISLATION TO ADOPT THIS COMPACT WHE RE SUCH LEGISLATION PREDATES THE EFFECTIVE DATE OF TH IS COMPACT AS DEFINED IN ARTICLE 13. G. “COMMISSION” MEANS THE GOVERNMENT AGENCY WHOSE MEMBERSHIP CONSISTS OF ALL STATES THAT HAVE ENAC TED THIS COMPACT, WHICH IS KNOWN AS TH E COSMETOLOGY LICENSURE COMPACT COMMISSION, AS DEFINED IN ARTICLE 9, AND WHICH SHALL OPER ATE AS AN INSTRUMENT ALITY OF THE MEMBER STATES. H. “COSMETOLOGIST ” MEANS AN INDIVIDUAL LICENSED IN THEIR HOME STATE TO PRACTICE COSMETOLOGY . I. “COSMETOLOGY ”, “COSMETOLOGY SERVICES”, AND THE “PRACTICE OF COSMETOLOGY ” MEAN THE CARE AND SE RVICES PROVIDED BY A COSMETOLOGIST AS SET FORTH IN THE MEMBER STATE’S STATUTES AND REGULATIONS IN THE STATE WHERE THE SERVI CES ARE BEING PROVID ED. J. “CURRENT SIGNIFICANT INVESTIGATIVE INFORMATION ” MEANS: Ch. 328 2024 LAWS OF MARYLAND – 4 – 1. INVESTIGATIVE INFORMATION THAT A STATE LICENSING AUTHORITY, AFTER AN INQUIRY OR INVESTIGATION THAT C OMPLIES WITH A MEMBER STATE’S DUE PROCESS REQUIR EMENTS, HAS REASON TO BELIEV E IS NOT GROUNDLESS AND , IF PROVED TRUE , WOULD INDICATE A VIO LATION OF THAT STATE’S LAWS REGARDING FRA UD OR THE PRACTICE OF COSMETOLOGY ; OR 2. INVESTIGATIVE INFORMATION THAT INDI CATES THAT A LICENSEE HAS ENGAGED IN FRAUD OR REPRESEN TS AN IMMEDIATE THRE AT TO PUBLIC HEALTH AND SA FETY, REGARDLESS OF WHETHE R THE LICENSEE HAS BEEN NOTIFIED AND HAD AN OPPORT UNITY TO RESPOND . K. “DATA SYSTEM” MEANS A REPOSITORY O F INFORMATION ABOUT LICENSEES, INCLUDING LICENSE STATUS , INVESTIGATIVE INFORMATION , AND ADVERSE ACTIONS. L. “DISQUALIFYING EVENT” MEANS ANY EVENT WHIC H SHALL DISQUALIFY AN INDIVI DUAL FROM HOLDING A MULTISTATE LICENSE UNDER THIS COMPACT, WHICH THE COMMISSION MAY BY RULE OR ORDER SPECIFY . M. “ENCUMBERED LICENSE” MEANS A LICENSE IN W HICH AN ADVERSE ACTION RESTRICTS THE PRACTICE OF COSMETOLOGY BY A LICENSEE, OR WHERE SAID ADVERSE ACTION HAS BEEN REPOR TED TO THE COMMISSION. N. “ENCUMBRANCE ” MEANS A REVOCATION O R SUSPENSION OF , OR ANY LIMITATION ON, THE FULL AND UNRESTR ICTED PRACTICE OF COSMETOLOGY BY A STATE LICENSING AUTHORITY. O. “EXECUTIVE COMMITTEE” MEANS A GROUP OF DEL EGATES ELECTED OR APPOINTED TO ACT ON BEHALF OF AND WIT HIN THE POWERS GRANT ED TO THEM BY THE COMMISSION. P. “HOME STATE” MEANS THE MEMBER STATE WHICH IS A LICENSEE’S PRIMARY STATE OF RESIDENCE AN D WHERE TH AT LICENSEE HOLDS AN ACT IVE AND UNENCUMBERED LICENSE TO PRACTICE COSMETOLOGY . Q. “INVESTIGATIVE INFORMATION ” MEANS INFORMATION , RECORDS, OR DOCUMENTS RECEIVED O R GENERATED BY A STATE LICENSING AUTHORITY PURSUANT TO AN INVES TIGATION OR OTHER IN QUIRY. R. “JURISPRUDENCE REQUIREMENT ” MEANS THE ASSESSMENT OF AN INDIVIDUAL’S KNOWLEDGE OF THE L AWS AND RULES GOVERN ING THE PRACTICE OF COSMETOLOGY IN A STATE. WES MOORE, Governor Ch. 328 – 5 – S. “LICENSEE” MEANS AN INDIVIDUAL WHO CURRENTLY HOLDS A LICENSE FROM A MEMBER STATE TO PRACTICE AS A COSMETOLOGIST . T. “MEMBER STATE” MEANS ANY STATE THAT HAS ADOPTE D THIS COMPACT. U. “MULTISTATE LICENSE” MEANS A LICENSE ISSU ED BY AND SUBJECT TO THE ENFORCEMENT JURI SDICTION OF THE STATE LICENSING AUTHORITY IN A LICENSEE’S HOME STATE, WHICH AUTHORIZES THE PRACTICE OF COSMETOLOGY IN MEMBER STATES AND INCLUDES AUTHORIZATIONS TO PRACTICE COSMETOLOGY IN ALL REMOTE STATES PURSUANT TO THIS COMPACT. V. “REMOTE STATE” MEANS ANY MEMBER STATE, OTHER THAN THE LICENSEE’S HOME STATE. W. “RULE” MEANS ANY RULE OR RE GULATION PROMULGATED BY THE COMMISSION UNDER THIS COMPACT THAT HAS THE FORCE OF LAW . X. “SINGLE–STATE LICENSE” MEANS A COSMETOLOGY LICENSE I SSUED BY A MEMBER STATE THAT AUTHORIZES THE PRACTICE OF COSMETOLOGY ONLY WITHIN THE ISSUING STATE AND DOES NOT IN CLUDE ANY AUTHORIZAT ION OUTSIDE OF THE ISSUING STATE. Y. “STATE” MEANS A STATE, TERRITORY, OR POSSESSION OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA. Z. “STATE LICENSING AUTHORITY” MEANS A MEMBER STATE’S REGULATORY BODY RESP ONSIBLE FOR ISSUING COSMETOLOGY LICENSES OR OTHERWISE OVERSEEING THE PRACTICE OF COSMETOLOGY IN THAT STATE. ARTICLE 3. MEMBER STATE REQUIREMENTS . A. TO BE ELIGIBLE TO JOI N THIS COMPACT, AND TO MAINTA IN ELIGIBILITY AS A MEMBER STATE, A STATE MUST: 1. LICENSE AND REGULATE COSMETOLOGY ; 2. HAVE A MECHANISM OR E NTITY IN PLACE TO RE CEIVE AND INVESTIGATE COMPLAIN TS ABOUT LICENSEES PRACTICING IN THAT STATE; 3. REQUIRE THAT LICENSEES WITHIN THE STATE PASS A COSMETOLOGY COMPETENC Y EXAMINATION PRIOR TO BEING LICENSED TO Ch. 328 2024 LAWS OF MARYLAND – 6 – PROVIDE COSMETOLOGY SERVICES TO THE PUBLI C IN THAT STATE; 4. REQUIRE THAT LICENSEES SATISFY EDU CATIONAL OR TRAINING REQUIREMENTS IN COSMETOLOGY PRIOR TO BEING LICENSED TO PR OVIDE COSMETOLOGY SERVICES TO THE PUBLI C IN THAT STATE; 5. IMPLEMENT PROCEDURES FOR CONSIDERING ONE OR MORE OF THE FOLLOWING CATEGO RIES OF INFORMATION FROM APPLICANTS FOR LICENSURE: CRIMINAL HISTORY ; DISCIPLINARY HISTORY ; OR BACKGROUND CHECK. SUCH PROCEDURES MAY INCLUDE THE SUBM ISSION OF INFORMATIO N BY APPLICANTS FOR THE P URPOSE OF OBTAINING AN APPLICANT ’S BACKGROUND CHECK AS DEFINED HEREIN ; 6. PARTICIPATE IN THE DATA SYSTEM, INCLUDING THROUGH TH E USE OF UNIQUE IDENTI FYING NUMBERS ; 7. SHARE INFORMATIO N RELATED TO ADVERSE ACTIONS WITH THE COMMISSION AND OTHER MEMBER STATES, BOTH THROUGH THE DATA SYSTEM AND OTHERWISE ; 8. NOTIFY THE COMMISSION AND OTHER MEMBER STATES, IN COMPLIANCE WITH THE TERMS OF THE COMPACT AND RULES OF THE COMMISSION, OF THE EXISTENCE OF INVESTIGATIVE INFORMATION OR CURRENT SIGNIFICANT INVESTIGATIVE INFORMATION IN THE STATE’S POSSESSION REGARDI NG A LICENSEE PRACTICING I N THAT STATE; 9. COMPLY WITH SUCH RULES AS MAY BE ENACTED BY TH E COMMISSION TO ADMINIS TER THE COMPACT; AND 10. ACCEPT LICENSEES FROM OTHER MEMBER STATES AS ESTABLISHED HEREIN. B. MEMBER STATES MAY CHARGE A F EE FOR GRANTING A LI CENSE TO PRACTICE COSMETOLOGY . C. INDIVIDUALS NOT RESID ING IN A MEMBER STATE SHALL CONTINUE TO BE ABLE TO APPLY FOR A MEMBER STATE’S SINGLE–STATE LICENSE AS PROVIDED UNDER THE LAWS OF EA CH MEMBER STATE. HOWEVER, THE SINGLE–STATE LICENSE GRANTED TO TH ESE INDIVIDUALS MAY NOT BE RECOGNIZED AS GRA NTING A MULTISTATE LICENSE TO PROVIDE SE RVICES IN ANY OTH ER MEMBER STATE. D. NOTHING IN THIS COMPACT SHALL AFFECT THE REQUIREMENTS WES MOORE, Governor Ch. 328 – 7 – ESTABLISHED BY A MEMBER STATE FOR THE ISSUANC E OF A SINGLE–STATE LICENSE. E. A MULTISTATE LICENSE ISSUED TO A LICENSEE BY A HOME STATE TO A RESIDENT OF THAT STATE SHALL BE RECOGN IZED BY EACH MEMBER STATE AS AUTHORIZING A LICENSEE TO PRACTICE COSMETOLOGY IN EACH MEMBER STATE. F. AT NO POINT SHALL THE COMMISSION HAVE THE P OWER TO DEFINE THE EDUCATIONAL OR P ROFESSIONAL REQUIREM ENTS FOR A LICENSE T O PRACTICE COSMETOLOGY . THE MEMBER STATES SHALL RETAIN S OLE JURISDICTION OVER TH E PROVISION OF THESE REQUIREMENTS . ARTICLE 4. MULTISTATE LICENSE. A. TO BE ELIGIBLE TO APP LY TO THEIR HOME STATE’S STATE LICENSING AUTHORITY FOR AN INIT IAL MULTISTATE LICENSE UNDER THIS COMPACT, A LICENSEE MUST HOLD AN ACTIVE AND UNENCUMBE RED SINGLE–STATE LICENSE TO PRACTICE COSMETOLOGY IN THEIR HOME STATE. B. UPON THE RECEIPT OF AN AP PLICATION FOR A MULTISTATE LICENSE, ACCORDING TO THE RULES OF THE COMMISSION, A MEMBER STATE’S STATE LICENSING AUTHORITY SHALL ASCER TAIN WHETHER THE APP LICANT MEETS THE REQUIREMENTS FOR A MULTISTATE LICENSE UNDER THIS COMPACT. C. IF AN APPLICANT MEETS THE REQUIREMENTS FOR A MULTISTATE LICENSE UNDER THIS COMPACT AND ANY APPLI CABLE RULES OF THE COMMISSION, THE STATE LICENSING AUTHORITY IN RECEIPT OF THE APPLICATION SHALL, WITHIN A REASONABLE TIME, GRANT A MULTISTATE LICENSE TO THAT APPLICANT, AND INFORM ALL MEMBER STATES OF THE GRANT O F SAID MULTISTATE LICENSE. D. A MULTISTATE LICENSE TO PRACTICE COSMETOLOGY ISSUED BY A MEMBER STATE’S STATE LICENSING AUTHORITY SHALL BE RE COGNIZED BY EACH MEMBER STATE AS AUTHORIZING THE PRACTICE THEREOF AS THOUGH TH AT LICENSEE HELD A SINGLE–STATE LICENSE TO DO SO IN EACH MEMBER STATE, SUBJECT TO THE RESTR ICTIONS HEREIN. E. A MULTISTATE LICENSE GRANTED PURSUANT TO THIS COMPACT MAY BE EFFECTIVE FOR A D EFINITE PERIOD OF TI ME, CONCURRENT WITH THE LICENSURE RENEWAL PE RIOD IN THE HOME STATE. F. TO MAINTAIN A MULTISTATE LICENSE UNDER T HIS COMPACT, A LICENSEE SHALL: Ch. 328 2024 LAWS OF MARYLAND – 8 – 1. AGREE TO ABIDE BY THE RULES OF THE STATE LICENSING AUTHORITY, AND THE STATE SCOPE OF PRACTI CE LAWS GOVERNING TH E PRACTICE OF COSMETOLOGY , OF ANY MEMBER STATE IN WHICH THE LICENSEE PROVIDES SERVICES; 2. PAY ALL REQUIRED FEES RELATED TO THE APPLI CATION AND PROCESS AND ANY OTHE R FEES WHICH THE COMMISSION MAY BY RULE REQUIRE; AND 3. COMPLY WITH ANY AND A LL OTHER REQUIREMENT S REGARDING MULTISTATE LICENSES WHICH THE COMMISSION MAY BY RULE PROVIDE. G. A LICENSEE PRACTICING I N A MEMBER STATE IS SUBJECT TO A LL SCOPE OF PRACTICE LA WS GOVERNING COSMETOLOGY SERVICES IN THAT STATE. H. THE PRACTICE OF COSMETOLOGY UNDER A MULTISTATE LICENSE GRANTED PURSUANT TO THIS COMPACT SHALL SUBJECT THE LICENSEE TO THE JURISDICTION OF THE STATE LICENSING AUTHORITY, THE COURTS, AND THE LAWS OF THE MEMBER STATE IN WHICH THE COSMETOLOGY SERVICES ARE PROVIDED . ARTICLE 5. REISSUANCE OF A MULTISTATE LICENSE BY A NEW HOME STATE. A. A LICENSEE MAY HOLD A MULTISTATE LICENSE, ISSUED BY THEIR HOME STATE, IN ONLY ONE MEMBER STATE AT ANY GIVEN TI ME. B. IF A LICENSEE CHANGES THEI R HOME STATE BY MOVING BETWE EN TWO MEMBER STATES: 1. THE LICENSEE SHALL IMMEDIATELY APPLY FO R THE REISSUANCE OF THEIR MULTISTATE LICENSE IN THEIR NEW HOME STATE. THE LICENSEE SHALL PAY ALL APPLICABLE F EES AND NOTIFY THE P RIOR HOME STATE IN ACCORDANCE WITH T HE RULES OF THE COMMISSION. 2. UPON RECEIPT OF AN APPLIC ATION TO REISSUE A MULTISTATE LICENSE, THE NEW HOME STATE SHALL VERIFY THAT THE MULTISTATE LICENSE IS ACTIVE, UNENCUMBERED , AND ELIGIBLE FOR REI SSUANCE UNDER THE TE RMS OF THE COMPACT AND THE RULES OF THE COMMISSION. THE MULTISTATE LICENSE ISSUED BY THE PRIOR HOME STATE WILL BE DEACTIV ATED AND ALL MEMBER STATES NOTIFIED IN AC CORDANCE WITH THE AP PLICABLE RULES ADOPTED BY THE COMMISSION. WES MOORE, Governor Ch. 328 – 9 – 3. IF REQUIRED FOR INITI AL LICENSURE , THE NEW HOME STATE MAY REQUIRE A BACKGROUND CHECK AS SPECIFIED IN THE LAWS OF THAT STATE OR THE COMPLIANCE WI TH ANY JURISPRUDENCE REQUIREMENTS OF THE NE W HOME STATE. 4. NOTWITHSTANDING ANY O THER PROVISION OF TH IS COMPACT, IF A LICENSEE DOES NOT MEE T THE REQUIREMENTS SET FORTH IN THIS COMPACT FOR THE REISSUANCE O F A MULTISTATE LICENSE BY THE NEW HOME STATE, THEN THE LICENSEE SHALL BE SUB JECT TO THE NEW HOME STATE REQUIREMENTS FO R THE ISSUANCE OF A SINGLE–STATE LICENSE IN THAT STATE. C. IF A LICENSEE CHANGES THEI R PRIMARY STATE OF RESIDENCE BY MOVING FROM A MEMBER STATE TO A NON –MEMBER STATE, OR FROM A NON–MEMBER STATE TO A MEMBER STATE, THEN THE LICENSEE SHALL BE SUBJECT TO THE STATE REQUIREMENTS FO R THE ISSUANCE OF A SINGLE–STATE LICENSE IN THE NEW HOME STATE. D. NOTHING IN THIS COMPACT SHALL INTERFE RE WITH A LICENSEE’S ABILITY TO HOLD A SINGLE–STATE LICENSE IN MULTIPLE STATES; HOWEVER F OR THE PURPOSES OF THIS COMPACT, A LICENSEE SHALL HAVE O NLY ONE HOME STATE AND ONLY ONE MULTISTATE LICENSE. E. NOTHING IN THIS COMPACT MAY INTERFERE WITH THE R EQUIREMENTS ESTABLISHED BY A MEMBER STATE FOR THE ISSUANC E OF A SINGLE–STATE LICENSE. ARTICLE 6. AUTHORITY OF THE COMPACT COMMISSION AND MEMBER STATE LICENSING AUTHORITIES. A. NOTHING IN THIS COMPACT, NOR ANY RULE OR REGULATION OF THE COMMISSION, MAY BE CONSTRUED TO LIMI T, RESTRICT, OR IN ANY WAY REDUCE THE ABILITY OF A MEMBER STATE TO ENACT AND EN FORCE LAWS, REGULATIONS , OR OTHER RULES RELAT ED TO THE PRACTICE OF COSMETOLOGY IN THAT STATE, IF THOSE LAWS, REGULATIONS , OR OTHER RULES ARE N OT INCONSISTEN T WITH THE PROVISIONS OF THIS COMPACT. B. INSOFAR AS PRACTICAL , A MEMBER STATE’S STATE LICENSING AUTHORITY SHALL COOPE RATE WITH THE COMMISSION AND WITH E ACH ENTITY EXERCISING INDEPENDE NT REGULATORY AUTHOR ITY OVER THE PRACTICE OF COSMETOLOGY ACCORDING TO THE PROVISIONS OF TH IS COMPACT. C. DISCIPLINE SHALL BE T HE SOLE RESPONSIBILI TY OF THE STATE IN WHICH COSMETOLOGY SERVICES ARE PROVIDED . ACCORDINGLY , EACH MEMBER Ch. 328 2024 LAWS OF MARYLAND – 10 – STATE’S STATE LICENSING AUTHORITY SHALL BE RE SPONSIBLE FOR RECEIV ING COMPLAINTS ABOUT IND IVIDUALS PRACTICING COSMETOLOGY IN THAT STATE AND FOR COMMUNICATING AL L RELEVANT INVESTIGATIVE INFORMATION ABOUT ANY SUCH ADVERSE ACTION TO THE OTHER MEMBER STATES THROUGH THE DATA SYSTEM IN ADDITION TO ANY OTHER METHODS THE COMMISSION MAY BY RULE REQUIRE. ARTICLE 7. ADVERSE ACTIONS. A. A LICENSEE’S HOME STATE SHALL HAVE EXCL USIVE POWER TO IMPOS E AN ADVERSE ACTION AGAINST A LICENSEE’S MULTISTATE LICENSE ISSUED BY THE HOME STATE. B. A HOME STATE MAY TAKE ADVERSE ACTION ON A MULTISTATE LICENSE BASED ON THE INVESTIGATIVE INFORMATION , CURRENT SIGNIFICANT INVESTIGATIVE INFORMATION , OR ADVERSE ACTION OF A REMOTE STATE. C. IN ADDITION TO THE PO WERS CONFERRED BY STATE LAW, EACH REMOTE STATE’S STATE LICENSING AUTHORITY SHALL HAVE THE POWER TO : 1. TAKE ADVERSE ACTION AGAINST A LICENSEE’S AUTHORIZATION TO PRACTICE COSMETOLOGY THROUGH T HE MULTISTATE LICENSE IN THAT MEMBER STATE, PROVIDED THAT : A. ONLY THE LICENSEE’S HOME STATE SHALL HAVE THE POWER TO TAKE ADVERSE ACTION AGAINST THE MULTISTATE LICENSE ISSUED BY THE HOME STATE; AND B. FOR THE PURPOSES OF T AKING ADVERSE ACTION, THE HOME STATE’S STATE LICENSING AUTHORITY SHALL GIVE THE SAME PRIORITY AND EFFECT TO REPORT ED CONDUCT RE CEIVED FROM A REMOTE STATE AS IT WOULD IF THE CONDUCT HAD OCCURRED WITHIN THE HOME STATE. IN SO DOING, THE HOME STATE SHALL APPLY ITS OWN STATE LAWS TO DETERMI NE THE APPROPRIATE ACTION . 2. ISSUE CEASE AND DESIS T ORDERS OR IMPOSE A N ENCUMBRANCE ON A LICENSEE’S AUTHORIZATION TO PRACTICE WITHIN THAT MEMBER STATE. 3. COMPLETE ANY PENDING INVESTIGATIONS OF A LICENSEE WHO CHANGES THEIR PRIMAR Y STATE OF RESIDENCE DU RING THE COURSE OF S UCH AN INVESTIGATION . THE STATE LICENSING AUTHORITY MAY REPORT THE RESULTS OF AN INVESTIGATION TO THE COMMISSION THROUGH TH E DATA SYSTEM AS WES MOORE, Governor Ch. 328 – 11 – DESCRIBED HEREIN . 4. ISSUE SUBPOENAS FOR B OTH HEARINGS AND INV ESTIGATIONS THAT REQUIRE THE ATT ENDANCE AND TESTIMON Y OF WITNESSES, AS WELL AS THE PRODUCTION OF EVIDEN CE. SUBPOENAS ISSUE D BY A STATE LICENSING AUTHORITY IN A MEMBER STATE FOR THE ATTENDA NCE AND TESTIMONY OF WITNESSES OR THE PRO DUCTION OF EVIDENCE FROM ANOTHER MEMBER STATE SHALL BE ENFORCED IN THE LATTER STATE BY ANY COURT OF COMPETENT JURISDICTION, ACCORDING TO THE PRA CTICE AND PROCEDURE OF THAT COURT APPLICABLE TO SUBPOE NAS ISSUED IN PROCEE DINGS BEFORE IT . THE ISSUING STATE LICENSING AUTHORITY SHALL PAY A NY WITNESS FEES , TRAVEL EXPENSES , MILEAGE, AND OTHER FEES REQUIRED BY T HE SERVICE STATUTES OF THE STATE IN WHICH THE WITNESSES OR EVIDENCE ARE LOCA TED. 5. IF OTHERWISE PERMITTED BY STATE LAW, RECOVER FROM THE AFFECTED LICENSEE THE COSTS OF INVESTIGATIONS AND D ISPOSITION OF CASES RESULTING FROM ANY ADVERSE ACTION TAKEN AGAINST THAT LICENSEE. 6. TAKE ADVERSE ACTION AGAINST THE LICENSEE’S AUTHORIZATION TO PRACTICE IN THAT STATE BASED ON THE FA CTUAL FINDINGS OF ANOTHER REMOTE STATE. D. A LICENSEE’S HOME STATE SHALL COMPLETE ANY PENDING INVESTIGATION OF A COSMETOLOGIST WHO CHA NGES THEIR PRIMARY STATE OF RESIDENCE DURING THE COURSE OF THE INVEST IGATION. THE HOME STATE SHALL ALSO HAVE THE AUTHOR ITY TO TAKE APPROPRI ATE ACTION AND SHALL PROMPTLY REPORT THE CONCLUSIO NS OF THE INVESTIGAT IONS TO THE DATA SYSTEM. E. IF AN ADVERSE ACTION IS TAKEN BY TH E HOME STATE AGAINST A LICENSEE’S MULTISTATE LICENSE, THE LICENSEE’S AUTHORIZATION TO PRACTICE IN ALL OTHER MEMBER STATES SHALL BE DEACT IVATED UNT IL ALL ENCUMBRANCES HAVE BEE N REMOVED FROM THE HOME STATE LICENSE. ALL HOME STATE DISCIPLINARY OR DERS THAT IMPOSE AN ADVERSE ACTION AGAINST A LICENSEE’S MULTISTATE LICENSE SHALL INCLUDE A STATEMENT THAT THE COSMETOLOGIST ’S AUTHORIZATION TO PRACTICE IS DEACTIVAT ED IN ALL MEMBER STATES DURING THE PEN DENCY OF THE ORDER . F. NOTHING IN THIS COMPACT SHALL OVERRID E A MEMBER STATE’S AUTHORITY TO ACCEPT A LICENSEE’S PARTICIPATION IN A N ALTERNATIVE PROGRAM IN LIEU OF ADVERSE ACTION. A LICENSEE’S MULTISTATE LICENSE SHALL BE SUSPENDED F OR THE DURATION OF T HE LICENSEE’S PARTICIPATION IN ANY ALTERNATIVE PROGRAM. Ch. 328 2024 LAWS OF MARYLAND – 12 – G. JOINT INVESTIGATIONS . 1. IN ADDITION TO THE AU THORITY GRANTED TO A MEMBER STATE BY ITS RESPECTIVE SC OPE OF PRACTICE LAWS OR OTHER APPLI CABLE STATE LAW, A MEMBER STATE MAY PARTICIPATE WITH OTHER MEMBER STATES IN JOINT INVESTIGATIONS OF LICENSEES. 2. MEMBER STATES SHALL SHARE AN Y INVESTIGATIVE, LITIGATION, OR COMPLIANCE MATERI ALS IN FURTHERANCE O F ANY JOINT OR INDIV IDUAL INVESTIGATION INITIATED UNDER THE COMPACT. ARTICLE 8. ACTIVE MILITARY MEMBERS AND THEIR SPOUSES. ACTIVE MILITARY MEMBERS, OR THEIR SPOUSES , SHALL DESIGNATE A HOME STATE WHERE THE INDIV IDUAL HAS A CURRENT LICENSE TO PRACTICE COSMETOLOGY IN GOOD S TANDING. THE INDIVIDUA L MAY RETAIN THEIR HOME STATE DESIGNATION DUR ING ANY PERIOD OF SE RVICE WHEN THAT INDI VIDUAL OR THEIR SPOUSE IS ON A CTIVE DUTY ASSIGNMEN T. ARTICLE 9. ESTABLISHMENT AND OPERATION OF THE COSMETOLOGY LICENSURE COMPACT COMMISSION. A. THE COMPACT MEMBER STATES HEREBY CREATE AND ESTABLISH A JOINT GOVERNMENT AGE NCY WHOSE MEMBERSHIP CONSISTS OF ALL MEMBER STATES THAT HAVE ENAC TED THE COMPACT KNOWN AS THE COSMETOLOGY LICENSURE COMPACT COMMISSION. THE COMMISSION IS AN INSTRUMENTALIT Y OF THE COMPACT MEMBER STATES ACTING JOINTLY AND NOT AN INSTRUMENTALITY OF A NY ONE STATE. THE COMMISSION SHALL COME INTO EXISTENCE ON OR AFTE R THE EFFECTIVE DATE OF THE COMPACT AS SET FORTH IN ARTICLE 13. B. MEMBERSHIP, VOTING, AND MEETINGS. 1. EACH MEMBER STATE SHALL HAVE AND BE LIMITED TO ONE DELEGATE SELECTED BY THAT MEMBER STATE’S STATE LICENSING AUTHORITY. 2. THE DELEGATE SHALL BE AN ADMINISTRATOR OF THE STATE LICENSING AUTHORITY OF THE MEMBER STATE OR THEIR DESIGN EE. 3. THE COMMISSION SHALL BY RULE OR BYLAW ESTABLI SH A TERM OF OFFICE FOR DELEGA TES AND MAY BY RULE OR BYLAW ESTABLI SH TERM LIMITS. WES MOORE, Governor Ch. 328 – 13 – 4. THE COMMISSION MAY RECOMM END REMOVAL OR SUSPE NSION OF ANY DELEGATE FROM OFFICE. 5. A MEMBER STATE’S STATE LICENSING AUTHORITY SHALL FILL ANY VACANCY OF ITS DELEGATE OCCURRING ON THE COMMISSION WITHIN 60 DAYS OF THE VACANCY . 6. EACH DELEGATE SHALL B E ENTITLED TO ONE VO TE ON ALL MATTERS THAT ARE VOT ED ON BY THE COMMISSION. 7. THE COMMISSION SHALL MEET AT LEAST ONCE DURING EACH CALENDAR YEAR . ADDITIONAL MEETINGS M AY BE HELD AS SET FO RTH IN THE BYLAWS. THE COMMISSION MAY MEET B Y TELECOMMUNICATION , VIDEO CONFERENCE , OR OTHER SIMILAR ELE CTRONIC MEANS . C. THE COMMISSION SHALL HAVE THE FOLLOWING POWERS : 1. ESTABLISH THE FISCAL YEAR OF THE COMMISSION; 2. ESTABLISH A CODE OF C ONDUCT AND CONFLICT OF INTEREST POLICIES; 3. ADOPT RULES AND BYLAWS ; 4. MAINTAIN ITS FINANCIA L RECORDS IN ACCORDA NCE WITH THE BYLAWS; 5. MEET AND TAKE SUCH AC TIONS AS ARE CONSIST ENT WITH THE PROVISIONS OF TH IS COMPACT, THE COMMISSION’S RULES, AND THE BYLAWS ; 6. INITIATE AND CONCLUDE LEGAL PROCEEDINGS OR ACTIONS IN THE NAME OF THE COMMISSION, PROVIDED THAT THE ST ANDING OF ANY STATE LICENSING AUTHORITY TO SUE OR B E SUED UNDER APPLICA BLE LAW MAY NOT BE AFFECTED; 7. MAINTAIN AND CERTIFY RECORDS AND INFORMAT ION PROVIDED TO A MEMBER STATE AS THE AUTHENTI CATED BUSINESS RECOR DS OF THE COMMISSION AND DESIGNATE AN AGE NT TO DO SO ON THE COMMISSION’S BEHALF; 8. PURCHASE AND MAINTAIN INSURANCE AND BONDS ; 9. BORROW, ACCEPT, OR CONTRACT FOR SERV ICES OF PERSONNEL , INCLUDING EMPLOYEES OF A MEMBER STATE; Ch. 328 2024 LAWS OF MARYLAND – 14 – 10. CONDUCT AN ANNUAL FIN ANCIAL REVIEW ; 11. HIRE EMPLOYEES , ELECT OR APPOINT OFF ICERS, FIX COMPENSATION , DEFINE DUTIES , GRANT SUCH INDIVIDUALS APPROPRI ATE AUTHORITY TO CARRY OUT THE PURPOSES OF THE COMPACT, AND ESTABLISH THE COMMISSION’S PERSONNEL POLICIES AND PROGRAMS RELATIN G TO CONFLICTS OF INTEREST, QUALIFICATIONS OF PE RSONNEL, AND OTHER RELATED PE RSONNEL MATTERS; 12. AS SET FORTH IN THE COMMISSION RULES, CHARGE A FEE TO A LICENSEE FOR THE GRAN T OF A MULTISTATE LICENSE AND THEREAFTE R, AS MAY BE ESTABLISHED BY COMMISSION RULE, CHARGE THE LICENSEE A MULTISTATE LICENSE RENEWAL FEE F OR EACH RENEWAL PERI OD. NOTHING HEREIN MAY BE CONSTRUED TO PREVENT A HOME STATE FROM CHARGING A LICENSEE A FEE FOR A MULTISTATE LICENSE OR RENEWALS O F A MULTISTATE LICENSE, OR A FEE FOR THE JURISPRUDENCE REQUIREMENT IF THE MEMBER STATE IMPOSES SUCH A REQUIREMENT FOR THE GRANT OF A MULTISTATE LICENSE; 13. ASSESS AND COLLECT FE ES; 14. ACCEPT ANY AND ALL AP PROPRIATE GIFTS , DONATIONS, GRANTS OF MONEY, OTHER SOURCES OF REV ENUE, EQUIPMENT, SUPPLIES, MATERIALS, AND SERVICES, AND RECEIVE, UTILIZE, AND DISPOSE OF THE S AME; PROVIDED THAT AT ALL TIMES THE COMMISSION SHALL AVOI D ANY APPEARANCE OF IMPROP RIETY OR CONFLICT OF INTEREST ; 15. LEASE, PURCHASE, RETAIN, OWN, HOLD, IMPROVE, OR USE ANY PROPERTY, REAL, PERSONAL, OR MIXED, OR ANY UNDIVIDED INT EREST THEREIN ; 16. SELL, CONVEY, MORTGAGE , PLEDGE, LEASE, EXCHANGE, ABANDON, OR OTHERWISE DISPOSE OF A NY PROPERTY, REAL, PERSONAL, OR MIXED; 17. ESTABLISH A BUDGET AN D MAKE EXPENDITURES ; 18. BORROW MONEY ; 19. APPOINT COMMITTEES , INCLUDING STANDING C OMMITTEES, COMPOSED OF MEMBERS , STATE REGULATORS , STATE LEGISLATORS OR THEIR REPRESENTATIVES , AND CONSUMER REPRESE NTATIVES, AND SUCH OTHER INTERESTED PERSONS AS MAY BE DESIGNATED IN THIS COMPACT AND THE BYLAW S; WES MOORE, Governor Ch. 328 – 15 – 20. PROVIDE AND RECEIVE I NFORMATION FROM AND COOPERATE WITH LAW ENFORCEMENT AGENCIES; 21. ELECT A CHAIR, VICE CHAIR, SECRETARY AND TREASURER AND SUCH OTHER OFFICERS OF TH E COMMISSION AS PROVIDE D IN THE COMMISSION’S BYLAWS; 22. ESTABLISH AND ELECT A N EXECUTIVE COMMITTEE, INCLUDING A CHAIR AND A VICE CHAIR; 23. ADOPT AND PROVIDE TO THE MEMBER STATES AN ANNUAL REPORT; 24. DETERMINE WHETHER A STATE’S ADOPTED LANGUAGE I S MATERIALLY DIFFERENT FROM THE MODEL COMPACT LANGUAGE SUCH THAT THE STATE WOULD NOT QUALI FY FOR PARTICIPATION IN THE COMPACT; AND 25. PERFORM SUCH OTHER FUNCTIONS AS M AY BE NECESSARY OR APPROPRIATE TO ACHIE VE THE PURPOSES OF T HIS COMPACT. D. THE EXECUTIVE COMMITTEE. 1. THE EXECUTIVE COMMITTEE SHALL HAVE THE POWER TO ACT ON BEHALF OF THE COMMISSION ACCORDING TO THE TERMS OF THIS COMPACT. THE POWERS, DUTIES, AND RESPONSIBILITIES OF THE EXECUTIVE COMMITTEE SHALL INCLUDE: A. OVERSEEING THE DAY –TO–DAY ACTIVITIES OF TH E ADMINISTRATION OF TH E COMPACT INCLUDING COM PLIANCE WITH THE PROVISIONS OF THE COMPACT, THE COMMISSION’S RULES AND BYLAWS , AND SUCH OTHER DUTIES AS DEEM ED NECESSARY ; B. RECOMMENDING TO THE COMMISSION CHANGES TO THE RULES OR BYLAWS , CHANGES TO THIS COMPACT LEGISLATION , FEES CHARGED TO COMPACT MEMBER STATES, FEES CHARGED TO LICENSEES, AND OTHER FEES ; C. ENSURING COMPACT ADMI NISTRATION SERVICES ARE APPROPRIATELY PROVID ED, INCLUDING BY CONTRAC T; D. PREPARING AND RECOMME NDING THE BUDGET ; E. MAINTAINING FINANCIAL RECORDS ON BEHALF OF THE COMMISSION; Ch. 328 2024 LAWS OF MARYLAND – 16 – F. MONITORING COMPACT COMPLIANCE OF MEMBER STATES AND PROVIDING COMPLI ANCE REPORTS TO THE COMMISSION; G. ESTABLISHING ADDITION AL COMMITTEES AS NEC ESSARY; H. EXERCISING THE POWERS AND DUTIES OF THE COMMISSION DURING THE INTERIM BETWEEN COMMISSION MEETINGS , EXCEPT FOR ADOPTING OR AMEN DING RULES, ADOPTING OR AMENDING BYLAWS, AND EXERCISING ANY OTHER POWERS AND DUTIES EX PRESSLY RESERVED TO THE COMMISSION BY RULE OR BYLAW ; AND I. OTHER DUTIES AS PROVI DED IN THE RULES OR BYLAWS OF THE COMMISSION. 2. THE EXECUTIVE COMMITTEE SHALL BE CO MPOSED OF UP TO SEVEN VOTING MEMBERS . A. THE CHAIR AND VICE CHAIR OF THE COMMISSION AND ANY OTHER MEMBERS OF THE COMMISSION WHO SERVE ON THE EXECUTIVE COMMITTEE SHALL BE VO TING MEMBERS OF THE EXECUTIVE COMMITTEE; AND B. OTHER THAN THE CHAIR, VICE CHAIR, SECRETARY AND TREASURER, THE COMMISSION SHALL ELEC T THREE VOTING MEMBE RS FROM THE CURRENT MEMBERSHIP O F THE COMMISSION. C. THE COMMISSION MAY ELECT EX OFFICIO, NONVOTING MEMBERS FROM A RECOG NIZED NATIONAL COSMETOLOGY PROFESSIO NAL ASSOCIATION AS APPROVED BY THE COMMISSION. THE COMMISSION’S BYLAWS SHALL IDENTIFY QUALI FYING ORGANIZATIONS AND THE MANNER OF AP POINTMENT IF THE NUMBER OF ORG ANIZATIONS SEEKING T O APPOINT AN EX OFFI CIO MEMBER EXCEEDS THE NUMBER O F MEMBERS SPECIFIED IN THIS ARTICLE. 3. THE COMMISSION MAY REMOVE ANY MEMBER OF THE EXECUTIVE COMMITTEE AS PROVIDED IN THE COMMISSION’S BYLAWS. 4. THE EXECUTIVE COMMITTEE SHALL MEET AT LEAST ANNUALLY . A. ANNUAL EXECUTIVE COMMITTEE MEETINGS , AS WELL AS ANY EXECUTIVE COMMITTEE MEETING AT WHICH IT DOES NOT TA KE OR INTEND TO TAKE FORMAL ACTION O N A MATTER FOR WHICH A COMMISSION VOTE WOULD OTHERWISE BE REQUIRE D, SHALL BE OPEN TO THE PUBLIC, EXCEPT THAT THE WES MOORE, Governor Ch. 328 – 17 – EXECUTIVE COMMITTEE MAY MEET IN A CLOSED, NON–PUBLIC SESSION OF A PUBLIC MEETING WHEN DEALING WITH ANY OF THE MATTERS COVERED UNDER ARTICLE 9.F.4. B. THE EXECUTIVE COMMITTEE SHALL GIVE 5 BUSINESS DAYS ADVANCE NOTICE OF IT S PUBLIC MEETINGS , POSTED ON ITS WEBSIT E AND AS DETERMINED TO PROVID E NOTICE TO PERSONS WITH AN I NTEREST IN THE PUBLI C MATTERS THE EXECUTIVE COMMITTEE INTENDS TO ADDRESS AT THOSE MEE TINGS. 5. THE EXECUTIVE COMMITTEE MAY HOLD AN EMERGENCY MEETING WHEN ACTING FOR THE COMMISSION TO : A. MEET AN IMMINENT THRE AT TO PUBLIC HEALTH , SAFETY, OR WELFARE; B. PREVENT A LOSS OF COMMISSION OR MEMBER STATE FUNDS; OR C. PROTECT PUBLIC HEALTH AND SAFETY. E. THE COMMISSION SHALL ADOP T AND PROVIDE TO THE MEMBER STATES AN ANNUAL REPO RT. F. MEETINGS OF THE COMMISSION. 1. ALL MEETINGS OF THE COMMISSION THAT ARE N OT CLOSED PURSUANT TO ARTICLE 9.F.4. SHALL BE OPEN TO THE PUBLIC. NOTICE OF PUBLIC MEETINGS SHALL BE PO STED ON THE COMMISSION’S WEBSITE AT LEAST 30 DAYS PRIOR TO THE PUBLIC MEETING . 2. NOTWITHSTANDING ARTICLE 9.F.1., THE COMMISSION MAY CONVENE AN EMERGENCY PUBLIC MEETING BY PR OVIDING AT LEAST 24 HOURS PRIOR NOTICE ON THE COMMISSION’S WEBSITE, AND ANY OTHER MEANS AS PROVIDED IN THE COMMISSION’S RULES, FOR ANY OF THE REASO NS IT MAY DISPENSE WITH NOTICE OF PROPOSE D RULEMAKING UNDER ARTICLE 11.L. THE COMMISSION’S LEGAL COUNSEL SHAL L CERTIFY THAT ONE O F THE REASONS JUSTIFYING AN EMERGE NCY PUBLIC MEETING H AS BEEN MET. 3. NOTICE OF ALL COMMISSION MEETINGS S HALL PROVIDE THE TIME, DATE, AND LOCATION OF THE MEETING, AND IF THE MEETING I S TO BE HELD OR ACCESSIBLE VIA TE LECOMMUNICATION , VIDEO CONFERENCE , OR OTHER ELECTRONIC MEANS , THE NOTICE SHALL INC LUDE THE MECHANISM F OR ACCESS TO THE MEETIN G. Ch. 328 2024 LAWS OF MARYLAND – 18 – 4. THE COMMISSION MAY CONVEN E IN A CLOSED , NON–PUBLIC MEETING FOR THE COMMISSION TO DISCUSS : A. NON–COMPLIANCE OF A MEMBER STATE WITH ITS OBLIGATIONS UNDER TH E COMPACT; B. THE EMPLOYMENT , COMPENSATION , DISCIPLINE OR OTHER MATTERS, PRACTICES OR PROCEDURES RELATE D TO SPECIFIC EMPLOY EES OR OTHER MATTERS RELATE D TO THE COMMISSION’S INTERNAL PERSONNEL PRACTICES AND PROCED URES; C. CURRENT OR THREATENED DISCIPLINE OF A LICENSEE BY THE COMMISSION OR BY A MEMBER STATE’S LICENSING AUTHORITY; D. CURRENT, THREATENED , OR REASONABLY ANTICI PATED LITIGATION; E. NEGOTIATION OF CONTRA CTS FOR THE PURCHASE , LEASE, OR SALE OF GOODS , SERVICES, OR REAL ESTATE ; F. ACCUSING ANY PERSON O F A CRIME OR FORMALL Y CENSURING ANY PERSON ; G. TRADE SECRE TS OR COMMERCIAL OR FINANCIAL INFORMATION THAT IS PRIVILEGED OR CONFID ENTIAL; H. INFORMATION OF A PERS ONAL NATURE WHERE DISCLOSURE WOULD CON STITUTE A CLEARLY UN WARRANTED INVASION O F PERSONAL PRIVACY ; I. INVESTIGATIVE RECORDS COMPILED FOR LAW ENFORCEMENT PURPOSES ; J. INFORMATION RELATED T O ANY INVESTIGATIVE REPORTS PREPARED BY OR ON BE HALF OF OR FOR USE O F THE COMMISSION OR OTHER COMMITTEE CHARGED WI TH RESPONSIBILITY OF INVESTIGATION OR DETERMINATION O F COMPLIANCE ISSUES PURSUANT TO THE COMPACT; K. LEGAL ADVICE; L. MATTERS SPECIFICALLY EXEMPTED FROM DISCLO SURE TO WES MOORE, Governor Ch. 328 – 19 – THE PUBLIC BY FEDERA L OR MEMBER STATE LAW; OR M. OTHER MATTERS AS PROM ULGATED BY THE COMMISSION BY RULE. 5. IF A MEETING , OR PORTION OF A MEET ING, IS CLOSED, THE PRESIDING OFFICER SH ALL STATE THAT THE M EETING WILL BE CLOSE D AND REFERENCE EACH RELEV ANT EXEMPTING PROVIS ION, AND SUCH REFERENCE SHALL BE RECORDED IN THE MINUTES. 6. THE COMMISSION SHALL KEEP MINUTES THAT FULLY AND CLEARLY DESCRIBE ALL MATTERS DISCUSSED IN A MEETING AND SHALL PROVIDE A FULL AND ACCURATE SU MMARY OF ACTIONS TAK EN, AND THE REASON S THEREFOR, INCLUDING A DESCRIPT ION OF THE VIEWS EXP RESSED. ALL DOCUMENTS CONSIDERED IN CONNEC TION WITH AN A CTION SHALL BE IDENT IFIED IN SUCH MINUTES. ALL MINUTES AND DOCUM ENTS OF A CLOSED MEE TING SHALL REMAIN UNDER SEAL , SUBJECT TO RELEASE O NLY BY A MAJORITY VO TE OF THE COMMISSION OR ORDER O F A COURT OF COMPETE NT JURISDICTION . G. FINANCING OF THE COMMISSION. 1. THE COMMISSION SHALL PAY , OR PROVIDE FOR THE P AYMENT OF, THE REASONABLE EXPEN SES OF ITS ESTABLISH MENT, ORGANIZATION , AND ONGOING ACTIVITIES . 2. THE COMMISSION MAY ACCEPT ANY AND ALL APPROPRI ATE SOURCES OF REVENUE , DONATIONS, AND GRANTS OF MONEY , EQUIPMENT, SUPPLIES, MATERIALS, AND SERVICES. 3. THE COMMISSION MAY LEVY O N AND COLLECT AN ANN UAL ASSESSMENT FROM EACH MEMBER STATE AND IMPOSE FEES ON LICENSEES OF MEMBER STATES TO WHOM IT GRA NTS A MULTISTATE LICENSE TO COVER THE COST OF THE OPERATIO NS AND ACTIVITIES OF THE COMMISSION AND ITS ST AFF, WHICH MUST BE IN A T OTAL AMOUNT SUFFICIE NT TO COVER ITS ANNU AL BUDGET AS APPROVED EACH YEA R FOR WHICH REVENUE IS NOT PROVIDED BY O THER SOURCES. THE AGGREGATE ANNUAL ASSESSMENT AMOUNT FO R MEMBER STATES SHALL BE ALLOCATED B ASED UPON A FORMULA THAT THE COMMISSION SHALL PROMULGATE BY RULE. 4. THE COMMISSION MAY NOT INCUR OBLIGATIONS OF ANY KIND PRIOR TO SECURING THE ADEQUATE FUNDS TO MEET THE SAME ; NOR SHALL THE COMMISSION PLEDGE THE CREDIT OF ANY MEMBER STATES, EXCEPT BY AND WITH THE AUTHORITY OF THE MEMBER STATE. Ch. 328 2024 LAWS OF MARYLAND – 20 – 5. THE COMMISSION SHALL KEEP ACCURATE ACCOUNTS OF ALL RECEIPTS AND DISBURS EMENTS. THE RECEIPTS AND DISBURSE MENTS OF THE COMMISSION SHALL BE S UBJECT TO THE FINANC IAL REVIEW AND ACCOU NTING PROCEDURES ESTABLISH ED UNDER ITS BYLAWS . ALL RECEIPTS AND DISBURSEMENTS OF FUN DS HANDLED BY THE COMMISSION SHALL BE S UBJECT TO AN ANNUAL FINANCIAL REVIEW BY A CERTIFIED OR LICEN SED PUBLIC ACCOUNTAN T AND THE REPORT OF TH E FINANCIAL REVIEW S HALL BE INCLUDED IN AND BECOME PART OF THE ANNUAL R EPORT OF THE COMMISSION. H. QUALIFIED IMMUNITY, DEFENSE, AND INDEMNIFICATION . 1. THE MEMBERS , OFFICERS, EXECUTIVE DIRECTOR , EMPLOYEES AND REPRESENTATIVES OF THE COMMISSION SHALL BE I MMUNE FROM SUIT AND LIABILITY, BOTH PERSONALLY AND IN THEIR OFFICIAL CA PACITY, FOR ANY CLAIM FOR DAMAGE TO OR LOS S OF PROPERTY OR PER SONAL INJURY OR OTHE R CIVIL LIABILITY CAUSED BY OR ARISING OUT OF AN Y ACTUAL OR ALLEGED ACT, ERROR, OR OMISSION THAT OCC URRED, OR THAT THE PERSON A GAINST WHOM THE CLAI M IS MADE HAD A REASON ABLE BASIS FOR BELIE VING OCCURRED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT , DUTIES OR RE SPONSIBILITIES; PROVIDED THAT NOTHING IN THIS PARA GRAPH MAY BE CONSTRUED TO PROT ECT ANY SUCH PERSON FROM SUIT OR LIABILI TY FOR ANY DAMAGE , LOSS, INJURY, OR LIABILITY CAUSED BY THE INTENTIONAL OR W ILLFUL OR WANTON MIS CONDUCT OF THAT PERS ON. THE PROCUREMENT OF INSURANCE OF ANY TYPE BY THE COMMISSION MAY NOT IN ANY WAY COMPROMISE OR LI MIT THE IMMUNITY GRA NTED HEREUNDER . 2. THE COMMISSION SHALL DEFE ND ANY MEMBER , OFFICER, EXECUTIVE DIRECTOR , EMPLOYEE, AND REPRESENTATIVE O F THE COMMISSION IN ANY CIVIL ACTION SEE KING TO IMPOSE LIABI LITY ARISING OUT OF ANY ACTUAL OR ALLEGED ACT , ERROR, OR OMISSION THAT OCC URRED WITHIN THE SCO PE OF COMMISSION EMPLOYMENT , DUTIES, OR RESPONSIBILITIES , OR AS DETERMINED BY THE COMMISSION THAT THE P ERSON AGAINST WHOM THE CLA IM IS MADE HAD A REASONABLE BASIS FOR BELIEVING OCCURRED W ITHIN THE SCOPE OF COMMISSION EMPLOYMENT , DUTIES, OR RESPONSIBILITIES ; PROVIDED THAT NOTHING HEREIN MAY BE CONSTRUED TO PROH IBIT THAT PERSON FRO M RETAINING THEIR OWN COUNSEL AT T HEIR OWN EXPENSE ; AND PROVIDED FURTHER THAT THE ACTUAL OR A LLEGED ACT, ERROR, OR OMISSION DID NOT RESULT FROM THAT PERSON ’S INTENTIONAL OR WIL LFUL OR WANTON MISCO NDUCT. 3. THE COMMISSION SHALL INDE MNIFY AND HOLD HARML ESS ANY MEMBER, OFFICER, EXECUTIVE D IRECTOR, EMPLOYEE, AND REPRESENTATIVE O F THE COMMISSION FOR THE AM OUNT OF ANY SETTLEME NT OR JUDGMENT OBTAI NED WES MOORE, Governor Ch. 328 – 21 – AGAINST THAT PERSON ARISING OUT OF ANY A CTUAL OR ALLEGED ACT , ERROR, OR OMISSION THAT OCCURR ED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT , DUTIES, OR RESPONSIBILITIES , OR THAT SUCH PERSON HAD A REASONA BLE BASIS FOR BELIEVING OCCURR ED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT , DUTIES, OR RESPONSIBILITIES ; PROVIDED THAT THE AC TUAL OR ALLEGED ACT , ERROR, OR OMISSION DID NOT RESULT FROM THE INTE NTIONAL OR WILLFUL OR WANTON MISCONDUCT OF THAT PERSON . 4. NOTHING HEREIN SHALL BE CONSTRUED AS A LI MITATION ON THE LIABILITY OF ANY LICENSEE FOR PROFESSI ONAL MALPRACTICE OR MISCONDUCT , WHICH SHALL BE GOVER NED SOLELY BY ANY OT HER APPLICABLE STATE LAWS. 5. NOTHING IN THIS COMPACT SHALL BE INTE RPRETED TO WAIVE OR OTHERWISE ABROGAT E A MEMBER STATE’S STATE ACTION IMMUNITY OR STATE ACTION AFFIRMATIVE D EFENSE WITH RESPECT TO ANTITRUST CLAIMS UNDER THE FEDERAL SHERMAN ACT, FEDERAL CLAYTON ACT, OR ANY OTHER STATE OR FEDERAL ANTITRUST OR ANTICOMPETITIVE LAW OR REGULATION . 6. NOTHING IN THIS COMPACT SHALL BE CONS TRUED TO BE A WAIVER OF SOVEREIGN IMMUNITY BY THE MEMBER STATES OR BY THE COMMISSION. ARTICLE 10. DATA SYSTEM. A. THE COMMISSION SHALL PROV IDE FOR THE DEVELOPM ENT, MAINTENANCE , OPERATION, AND UTILIZATION OF A COORDINATED DATABASE AND REPORTING SYSTEM . B. THE COMMISSION SHALL ASSI GN EACH APPLICANT FO R A MULTISTATE LICENSE A UNIQUE IDEN TIFIER, AS DETERMINED BY THE RULES OF THE COMMISSION. C. NOTWITHSTANDING ANY O THER PROVISION OF STATE LAW TO THE CONTRARY, A MEMBER STATE SHALL SUBMIT A UNIFORM DATA SET TO THE DATA SYSTEM ON ALL INDIVID UALS TO WHOM THIS COMPACT IS APPLICABLE AS REQUIRED BY THE RULES OF THE COMMISSION, INCLUDING: 1. IDENTIFYING INFORMATI ON; 2. LICENSURE DATA ; 3. ADVERSE ACTIONS AGAINST A LIC ENSE AND RELATED THERETO; Ch. 328 2024 LAWS OF MARYLAND – 22 – 4. NON–CONFIDENTIAL INFORMA TION RELATED TO ALTERNATIVE PROGRAM PARTICIPATION , THE BEGINNING AND EN DING DATES OF SUCH PARTICIPATION , AND OTHER INFORMATIO N RELATED TO SUCH PARTICIPATION ; 5. ANY DENIAL OF APPLICA TION FOR LICENSURE A ND THE REASON FOR THE DENIAL (EXCLUDING THE REPORT ING OF ANY CRIMINAL HISTORY RECORD INFORMATION WHERE PR OHIBITED BY LAW ); 6. THE EXISTENCE OF INVESTIGATIVE INFORMATION ; 7. THE EXISTENCE OF CURRENT SIGNIFICANT INVESTIGATIVE INFORMATION ; AND 8. OTHER INFORMATION THA T MAY FACILITATE THE ADMINISTRATION OF TH IS COMPACT OR THE PROTEC TION OF THE PUBLIC , AS DETERMINED BY THE RULES OF THE COMMISSION. D. THE RECORDS AND INFOR MATION PROVIDED TO A MEMBER STATE PURSUANT TO THIS COMPACT OR THROUGH TH E DATA SYSTEM, WHEN CERTIFIED BY THE COMMISSION OR AN AGEN T THEREOF, SHALL CONSTITUTE THE AUTHENTICATED BUSINE SS RECORDS OF THE COMMISSION, AND SHALL BE ENTITLED TO ANY ASSO CIATED HEARSAY EXCEP TION IN ANY RELEVANT JUDICIAL, QUASI–JUDICIAL OR ADMINIST RATIVE PROCEEDINGS I N A MEMBER STATE. E. THE EXISTENCE OF CURRENT SIGNIFICANT INVESTIGATIVE INFORMATION AND THE E XISTENCE OF INVESTIGATIVE INFORMATI ON PERTAINING TO A LICENSEE IN ANY MEMBER STATE WILL ONLY BE AV AILABLE TO OTHER MEMBER STATES. F. IT IS THE RESPONSIBIL ITY OF THE MEMBER STATES TO MONITOR THE DATABASE TO DETERMIN E WHETHER ADVERSE ACTION HAS BEEN TAKEN AGAINST SUCH A LICENSEE OR LICENSE A PPLICANT. ADVERSE ACTION INFORMATION PERTAINING TO A LICENSEE OR LICENSE A PPLICANT IN ANY MEMBER STATE WILL BE AVAILABLE TO ANY OTHER MEMBER STATE. G. MEMBER STATES CONTRIBUTING I NFORMATION TO THE DATA SYSTEM MAY DESIGNATE INFORM ATION THAT MAY NOT B E SHARED WITH THE PU BLIC WITHOUT THE EXPRESS PERMISSION OF THE CO NTRIBUTING STATE. H. ANY INFORMATION SUBMITTED TO THE DATA SYSTEM THAT IS SUBSEQUENTLY EXPUNGE D PURSUANT TO FEDERAL LAW OR THE L AWS OF THE WES MOORE, Governor Ch. 328 – 23 – MEMBER STATE CONTRIBUTING TH E INFORMATION SHALL BE REMOVED FROM THE DATA SYSTEM. ARTICLE 11. RULEMAKING . A. THE COMMISSION SHALL PROM ULGATE REASONABLE RULES IN ORDER TO EFFECTIVELY AND E FFICIENTLY IMPLEMENT AND ADMINISTER THE P URPOSES AND PROVISIONS OF TH E COMPACT. A RULE SHALL BE INVALID AND HAVE NO FORCE OR EFFECT ONLY IF A COURT OF COMPET ENT JURISDICTION HOL DS THAT THE RULE IS INVALID BECAU SE THE COMMISSION EXERCISED ITS RULEMAKING AUTHORITY IN A MANNE R THAT IS BEYOND THE SCOPE AND PURPOSES O F THE COMPACT, THE POWERS GRANTED UNDER TH E COMPACT, OR BASED UPON ANOTHER APPLICABLE S TANDARD OF REVIEW . B. THE RULES OF THE COMMISSION SHALL HAVE THE FORCE OF LAW IN EACH MEMBER STATE, PROVIDED HOWEVER THA T WHERE THE RULES OF THE COMMISSION CONFLICT W ITH THE LAWS OF THE MEMBER STATE THAT ESTABLISH THE MEMBER STATE’S SCOPE OF PRACTICE LAWS GOVERNING THE PRACTICE OF COSMETOLOGY AS HELD B Y A COURT OF COMPETE NT JURISDICTION , THE RULES OF THE COMMISSION SHALL BE I NEFFECTIVE IN THAT STATE TO THE EXTENT O F THE CONFLICT. C. THE COMMISSION SHALL EXER CISE ITS RULEMAKING POWERS PURSUANT TO THE CRITERIA SET FOR TH IN THIS ARTICLE AND THE RULES ADOPTED THEREUNDER . RULES SHALL BECOME BI NDING AS OF THE DATE SPECIFIED BY THE COMMISSION FOR EACH RULE. D. IF A MAJORITY OF THE LEGISLATURES OF THE MEMBER STATES REJECTS A RULE OR PORTION OF A RULE, BY ENACTMENT OF A ST ATUTE OR RESOLUTION IN THE SA ME MANNER USED TO AD OPT THE COMPACT WITHIN 4 YEARS OF THE DATE OF ADOPT ION OF THE RULE, THEN THE RULE MAY NOT HAVE FURTHER FORCE AND EFFECT IN ANY MEMBER STATE OR TO ANY STATE APPLYING TO PARTICIPATE IN THE COMPACT. E. RULES SHALL BE ADOPTE D AT A REGULAR OR SP ECIAL MEETING OF THE COMMISSION. F. PRIOR TO THE ADOPTION OF A PROPOS ED RULE, THE COMMISSION SHALL HOLD A PUBLIC HEARING AND ALLOW PERSONS TO PROVIDE ORAL AND WRITTEN COMMENTS , DATA, FACTS, OPINIONS, AND ARGUMENTS . G. PRIOR TO THE ADOPTION OF A PROPOS ED RULE BY THE COMMISSION, AND AT LEAST 30 DAYS IN ADVANCE OF T HE MEETING AT WHICH THE COMMISSION Ch. 328 2024 LAWS OF MARYLAND – 24 – WILL HOLD A PUBLIC H EARING ON THE PROPOS ED RULE, THE COMMISSION SHALL PROVIDE A NOTICE OF PROPOSED RULEMAKING : 1. ON THE WEBSITE OF THE COMMISSION OR OTHER P UBLICLY ACCESSIBLE PLATFORM ; 2. TO PERSONS WHO HAVE R EQUESTED NOTICE OF T HE COMMISSION’S NOTICES OF PROPOSE D RULEMAKING ; AND 3. IN ANY SUCH WAY THE COMMISSION MAY BY RULE SPECIFY. H. THE NOTICE OF PROPOSE D RULEMAKING SHALL I NCLUDE: 1. THE TIME, DATE, AND LOCATION OF THE PUBLIC HEARING AT WHICH THE COMMISSION WILL HEAR PUBLIC COMMENTS ON T HE PROPOSED RULE AND, IF DIFFERENT, THE TIME, DATE, AND LOCATION OF THE MEETING WHERE THE COMMISSION WILL CONSI DER AND VOTE ON THE PROPOSED RULE; 2. IF THE HEARING IS HEL D VIA TELECOMMUNICAT ION, VIDEO CONFERENCE , OR OTHER ELECTRONIC MEANS, THE COMMISSION SHALL INCL UDE THE MECHANISM FOR AC CESS TO THE HEARING IN THE NOTICE OF PRO POSED RULEMAKING ; 3. THE TEXT OF THE PROPO SED RULE AND THE REASON THEREFOR; 4. A REQUEST FOR COMMENTS ON THE PROPOSED RULE FROM ANY INTERESTED PERSON ; AND 5. THE MANNER IN WHICH I NTERESTED PERSONS MAY SUBMIT WRITTEN COMMENTS . I. ALL HEARINGS SHALL BE RECORDED . A COPY OF THE RECORDIN G AND ALL WRITTEN COMMENTS AND DOCUMENTS RECEIV ED BY THE COMMISSION IN RESPONSE TO THE PROP OSED RULE SHALL BE AVAILAB LE TO THE PUBLIC. J. NOTHING IN THIS ARTICLE MAY BE CONSTRUED AS REQU IRING A SEPARATE HEARING ON EACH RULE. RULES MAY BE GROUPED FOR THE CONVENIENCE OF THE COMMISSION AT HEARING S REQUIRED BY THIS ARTICLE. K. THE COMMISSION SHALL , BY MAJORITY VOTE OF ALL MEMBERS , TAKE FINAL ACTION ON THE PROPOSED RULE BASED ON THE RUL EMAKING RECORD AND THE FULL TEXT OF THE RULE. WES MOORE, Governor Ch. 328 – 25 – 1. THE COMMISSION MAY ADOPT CHANGES TO THE PROPO SED RULE PROVIDED THE CHANGES DO NOT ENLARGE THE O RIGINAL PURPOSE OF T HE PROPOSED RULE. 2. THE COMMISSION SHALL PROVI DE AN EXPLANATION OF THE REASONS FOR SUBSTANT IVE CHANGES MADE TO THE PROPOSED RULE AS WELL AS REASONS FOR SUBSTANT IVE CHANGES NOT MADE THAT WERE RECOMMENDE D BY COMMENTERS . 3. THE COMMISSION SHALL DETE RMINE A REASONABLE E FFECTIVE DATE FOR THE RULE. EXCEPT FOR AN EMERGEN CY AS PROVIDED IN ARTICLE 11.L., THE EFFECTIVE DATE O F THE RULE SHALL BE NO SOON ER THAN 45 DAYS AFTER THE COMMISSION ISSUING TH E NOTICE THAT IT ADO PTED OR AMENDED THE RULE. L. UPON A DETERMINATION THAT AN EMERGENCY EX ISTS, THE COMMISSION MAY CONSID ER AND ADOPT AN EMER GENCY RULE WITHIN 5 DAYS, WITH OPPORTUNITY TO COMMENT, PROVIDED THAT THE US UAL RULEMAKING PROCEDURES PROVIDED IN THE COMPACT AND IN THIS ARTICLE SHALL B E RETROACTIVELY APPLIE D TO THE RULE AS SOON AS REASO NABLY POSSIBLE , IN NO EVENT LATER THAN 90 DAYS AFTER THE EFFEC TIVE DATE OF THE RULE. FOR THE PURPOSES OF THIS PRO VISION, AN EMERGENCY RULE IS ONE THAT MUST BE ADOPTED IMMEDIATELY TO: 1. MEET AN IMMINEN T THREAT TO PUBLIC H EALTH, SAFETY, OR WELFARE; 2. PREVENT A LOSS OF COMMISSION OR MEMBER STATE FUNDS; 3. MEET A DEADLINE FOR T HE PROMULGATION OF A RULE THAT IS ESTABLISHED BY FEDER AL LAW OR RULE ; OR 4. PROTECT PUBLIC HEALTH AND SAFETY. M. THE COMMISSION OR AN AUTH ORIZED COMMITTEE OF THE COMMISSION MAY DIRECT REVISIONS TO A PREVI OUSLY ADOPTED RULE FOR PURPOSES OF CORRECTI NG TYPOGRAPHICAL ERR ORS, ERRORS IN FORMAT , ERRORS IN CONSISTENC Y, OR GRAMMATICAL ERROR S. PUBLIC NOTICE OF ANY REVISIONS SHALL BE POSTED ON THE WEB SITE OF THE COMMISSION. THE REVISION SHALL BE SUBJECT TO CHALLENGE BY ANY PERSON FOR A PERIOD OF 30 DAYS AFTER POSTING . THE REVISION MAY BE C HALLENGED ONLY ON GR OUNDS THAT THE REVISION RESULTS IN A MATERIAL CHANGE TO A RULE. A CHALLENGE SHALL BE MADE IN WRITING AND DELIVERED TO THE COMMISSION PRIOR TO THE END OF THE Ch. 328 2024 LAWS OF MARYLAND – 26 – NOTICE PERIOD . IF NO CHALLENGE IS MA DE, THE REVISION WILL TA KE EFFECT WITHOUT FURTHER ACTI ON. IF THE REVISION IS CH ALLENGED, THE REVISION MAY NOT TAKE EFFECT WITHOUT THE APPROVAL OF THE COMMISSION. N. NO MEMBER STATE’S RULEMAKING REQUIRE MENTS MAY APPLY UNDER THIS COMPACT. ARTICLE 12. OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT . A. OVERSIGHT. 1. THE EXECUTIVE AND JUD ICIAL BRANCHES OF STATE GOVERNMENT IN EACH MEMBER STATE SHALL ENFORCE T HIS COMPACT AND TAKE ALL ACTIONS NECESSAR Y AND APPROPRIATE TO IMPLEMENT THE COMPACT. 2. VENUE IS PROPER AND J UDICIAL PROCEEDINGS BY OR AGAINST THE COMMISSION SHALL BE B ROUGHT SOLELY AND EX CLUSIVELY IN A COURT OF COMPETENT JURISDICTI ON WHERE THE PRINCIP AL OFFICE OF THE COMMISSION IS LOCATED. THE COMMISSION MAY WAIVE VENUE AND JURISDICTI ONAL DEFENSES TO THE EXTENT IT ADO PTS OR CONSENTS TO P ARTICIPATE IN ALTERN ATIVE DISPUTE RESOLUTION P ROCEEDINGS . NOTHING HEREIN SHALL AFFECT OR LIMI T THE SELECTION OR PRO PRIETY OF VENUE IN A NY ACTION AGAINST A LICENSEE FOR PROFESSIONAL MALPRAC TICE, MISCONDUCT OR ANY SU CH SIMILAR MATTER . 3. THE COMMISSION SHALL BE E NTITLED TO RECEIVE S ERVICE OF PROCESS IN ANY PROCE EDING R EGARDING THE ENFORCE MENT OR INTERPRETATION OF TH E COMPACT AND SHALL HAV E STANDING TO INTERV ENE IN SUCH A PROCEEDING FO R ALL PURPOSES . FAILURE TO PROVIDE TH E COMMISSION SERVICE OF PROCESS S HALL RENDER A JUDGME NT OR ORDER VOID AS TO THE COMMISSION, THIS COMPACT, OR PROMULGATED RULES. B. DEFAULT, TECHNICAL ASSISTANCE, AND TERMINATION. 1. IF THE COMMISSION DETERMINES THAT A MEMBER STATE HAS DEFAULTED IN THE PER FORMANCE OF ITS OBLI GATIONS OR RESPONSIB ILITIES UNDER THIS COMPACT OR THE PROMUL GATED RULES, THE COMMISSION SHALL PROVIDE WRITTEN NOTI CE TO THE DEFAULTING STATE. THE NOTICE OF DEFAULT SHALL DESCRIBE THE D EFAULT, THE PROPOSED MEANS O F CURING THE DEFAULT , AND ANY OTHER ACTION THAT THE COMMISSION MAY TAKE , AND SHALL OFFER TRAINING AND SPECIFI C TECHNICAL ASSISTANCE REGARDING THE DEFAULT . 2. THE COMMISSION SHALL PROV IDE A COPY OF THE NO TICE OF WES MOORE, Governor Ch. 328 – 27 – DEFAULT TO THE OTHER MEMBER STATES. 3. IF A STATE IN DEFAULT FAIL S TO CURE THE DEFAUL T, THE DEFAULTING STATE MAY BE TERMINAT ED FROM THE COMPACT AFTER AN AFFIRMATIVE VOTE OF A MAJO RITY OF THE DELEGATE S OF THE MEMBER STATES, AND ALL RIGHTS , PRIVILEGES AND BENEF ITS CONFERRED ON THA T STATE BY THIS COMPACT MAY BE TERMIN ATED ON THE EFFECTIV E DATE OF TERMINATIO N. A CURE OF THE DEFAULT DOES NOT RELIEVE THE OFFE NDING STATE OF OBLIGATIONS OR LIABILITIES INCURRED DURING THE PERIOD OF DEFAULT. 4. TERMINATION OF MEMBER SHIP IN THE COMPACT SHALL BE IMPOSED ONLY AFTER A LL OTHER MEANS OF SE CURING COMPLIANCE HA VE BEEN EXHAUSTED. NOTICE OF INTENT TO S USPEND OR TERMINATE SHALL BE GIVEN BY THE COMMISSION TO THE GOV ERNOR, THE MAJORITY AND MIN ORITY LEADERS OF THE DEFAULTING STATE’S LEGISLATURE , THE DEFAULTING STATE’S STATE LICENSING AUTHORITY AND EACH OF THE MEMBER STATES’ STATE LICENSING AUTHORITY. 5. A STATE THAT HAS BEEN T ERMINATED IS RESPONSIB LE FOR ALL ASSESSMENTS , OBLIGATIONS, AND LIABILITIES INCU RRED THROUGH THE EFFECTIVE DATE OF TE RMINATION, INCLUDING OBLIGATION S THAT EXTEND BEYOND THE EFFECTIVE DATE OF TERMINATION . 6. UPON THE TERMINATION OF A STATE’S MEMBERSHIP FROM THIS COMPACT, THAT STATE SHALL IMMEDIATE LY PROVIDE NOTICE TO ALL LICENSEES WHO HOLD A MULTISTATE LICENSE WITHIN THAT STATE OF SUCH TERMINATION . THE TERMINATED STATE SHALL CONTINUE TO RECOGNIZE ALL LICENSES GRANTED PURSUANT TO THIS COMPACT FOR A MINIMUM OF 180 DAYS AFTER THE DATE OF SAID NOTICE OF TERMINATIO N. 7. THE COMMISSION MAY NOT BEAR ANY COSTS R ELATED TO A STATE THAT IS FOUND T O BE IN DEFAULT OR T HAT HAS BEEN TERMINA TED FROM THE COMPACT, UNLESS AGREED UPON I N WRITING BETWEEN TH E COMMISSION AND THE DEFAULTING STATE. 8. THE DEFAULTING STATE MAY APPEAL THE ACTION OF THE COMMISSION BY PETITIO NING THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA OR THE FEDER AL DISTRICT WHERE TH E COMMISSION HAS ITS PRINCIPAL OFFICE S. THE PREVAILING PARTY SHALL BE AWARDED ALL COSTS OF SUCH LITIGATION, INCLUDING REASONABLE ATTORNEY’S FEES. C. DISPUTE RESOLUTION. Ch. 328 2024 LAWS OF MARYLAND – 28 – 1. UPON REQUEST BY A MEMBER STATE, THE COMMISSION SHALL ATTEMPT TO RESOLVE D ISPUTES RELATED TO T HE COMPACT THAT ARISE AM ONG MEMBER STATES AND BETWEEN MEMBER AND NON –MEMBER STATES. 2. THE COMMISSION SHALL PROM ULGATE A RULE PROVIDING FOR BOTH MEDIATION AND B INDING DISPUTE RESOL UTION FOR DISPUTES A S APPROPRIATE . D. ENFORCEMENT . 1. THE COMMISSION, IN THE REASONABLE EX ERCISE OF ITS DISCRETION, SHALL ENFORCE THE PR OVISIONS OF THIS COMPACT AND THE COMMISSION’S RULES. 2. BY MAJORITY VOTE AS P ROVIDED BY COMMISSION RULE, THE COMMISSION MAY INITIA TE LEGAL ACTION AGAI NST A MEMBER STATE IN DEFAULT IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA OR THE FEDERAL DISTRICT WHE RE THE COMMISSION HAS ITS PR INCIPAL OFFICES TO ENFORCE COMPLIANCE W ITH THE PROVISIONS O F THE COMPACT AND ITS PROMULGATED RULES. THE RELIEF SOUGHT MAY INCLUDE BOTH INJUNCT IVE RELIEF AND DAMAGES . IN THE EVENT JUDICIAL ENFORCEMENT IS NECES SARY, THE PREVAILING PARTY SHA LL BE AWARDED ALL CO STS OF SUCH LITIGATION , INCLUDING REASONABLE ATTORNEY’S FEES. THE REMEDIES HEREIN MAY NOT BE THE EXCLUSIVE REMEDI ES OF THE COMMISSION. THE COMMISSION MAY PURSUE ANY OTHER REMEDIES A VAILABLE UNDER FEDER AL OR THE DEFAULTING MEMBER STATE’S LAW. 3. A MEMBER STATE MAY INITIATE LEGAL ACTION AGAINST THE COMMISSION IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA OR THE FEDER AL DISTRICT WHERE TH E COMMISSION HAS ITS PRINCIPAL OFFICES TO ENFORCE COMPLIANCE W ITH THE PROVISIONS O F THE COMPACT AND ITS PROM ULGATED RULES. THE RELIEF SOUGHT MAY INCLUDE BOTH INJUNCTIVE RELI EF AND DAMAGES . IN THE EVENT JUDICIAL ENFORCEMENT IS NECESSARY, THE PREVAILING PARTY SHALL BE AWARDED ALL COSTS OF SUCH LITIGATION, INCLUDING REASONABLE ATTORNEY’S FEES. 4. NO INDIVIDUAL O R ENTITY OTHER THAN A MEMBER STATE MAY ENFORCE THIS COMPACT AGAINST THE COMMISSION. ARTICLE 13. EFFECTIVE DATE, WITHDRAWAL, AND AMENDMENT . A. THE COMPACT SHALL COME IN TO EFFECT ON THE DAT E ON WHICH THE WES MOORE, Governor Ch. 328 – 29 – COMPACT STATUTE IS EN ACTED INTO LAW IN TH E SEVENTH MEMBER STATE. 1. ON OR AFTER THE EFFEC TIVE DATE OF THE COMPACT, THE COMMISSION SHALL CONV ENE AND REVIEW THE E NACTMENT OF EACH OF THE CHARTER MEMBER STATES TO DETERMINE I F THE STATUTE ENACTE D BY EACH SUCH CHARTER MEMBER STATE IS MATERIALLY D IFFERENT THAN THE MO DEL COMPACT STATUTE . A. A CHARTER MEMBER STATE WHOSE ENACTMENT IS FOUND TO BE MATERIALLY DIF FERENT FROM THE MODE L COMPACT STATUTE SHALL BE ENTITLED TO THE DEFA ULT PROCESS SET FORT H IN ARTICLE 12. B. IF ANY MEMBER STATE IS LATER FOUND TO BE IN DEFAULT, OR IS TERMINATED OR WITHDRAWS FROM THE COMPACT, THE COMMISSION SHALL REMAIN IN EXISTENCE AND THE COMPACT SHALL REMAIN IN EFFECT EVEN IF TH E NUMBER OF MEMBER STATES SHOULD BE LESS THAN 7. 2. MEMBER STATES ENACTING THE COMPACT SUBSEQUENT TO THE CHARTER MEMBER STATES SHALL BE SUBJE CT TO THE PROCESS SE T FORTH IN ARTICLE 9.C.24. TO DETERMINE IF THEI R ENACTMENTS ARE MAT ERIALLY DIFFERENT FROM THE M ODEL COMPACT STATUTE AND W HETHER THEY QUALIFY FOR PARTICIPATION IN THE COMPACT. 3. ALL ACTIONS TAKEN FOR THE BENEFIT O F THE COMMISSION OR IN FURTHERANCE OF TH E PURPOSES OF THE AD MINISTRATION OF THE COMPACT PRIOR TO THE EFFECTIVE DATE O F THE COMPACT OR THE COMMISSION COMING INTO EXISTENCE SHALL BE CONSIDERED TO BE ACTIONS OF THE COMMISSION UNLESS SPECIFICALLY REPUDIATED BY THE COMMISSION. 4. ANY STATE THAT JOINS THE COMPACT SHALL BE SUBJ ECT TO THE COMMISSION’S RULES AND BYLAWS AS T HEY EXIST ON THE DAT E ON WHICH THE COMPACT BECOMES LAW I N THAT STATE. ANY RULE THAT HAS BEEN PREVIOUSLY ADOPTED B Y THE COMMISSION SHALL HAVE THE FULL FORCE AND EFFECT OF LAW ON THE DAY THE COMPACT BECOMES LAW I N THAT STATE. B. ANY MEMBER STATE MAY WITHDRAW FR OM THIS COMPACT BY ENACTING A STATUTE R EPEALING THAT STATE’S ENACTMENT OF THE COMPACT. 1. A MEMBER STATE’S WITHDRAWAL MAY NOT TAKE EFFECT UNTI L 180 DAYS AFTER ENACTMENT OF THE REPEALING STA TUTE. 2. WITHDRAWAL MAY NOT AFFECT THE CONTI NUING REQUIREMENT OF THE WITHDRAWING STATE’S STATE LICENSING AUTHORITY TO COMPLY W ITH Ch. 328 2024 LAWS OF MARYLAND – 30 – THE INVESTIGATIVE AN D ADVERSE ACTION REPORTING REQU IREMENTS OF THIS COMPACT BEFORE THE EFFECTIVE DATE O F WITHDRAWAL . 3. UPON THE ENACTMENT OF A S TATUTE WITHDRAWING F ROM THIS COMPACT, A STATE SHALL IMMEDIATE LY PROVIDE NOTICE OF THE WITHDRAWAL TO ALL LICENSEES WITHIN THAT STATE. NOTWITHSTANDING ANY S UBSEQUENT STATUTORY ENACTMENT TO THE CONTRARY , SUCH WITHDRAWING STATE SHALL CONTINUE TO RECOGNIZ E ALL LICENSES GRANT ED PURSUANT TO THIS COMPACT FOR A MINIMUM OF 180 DAYS AFTER THE DATE OF THE NOTICE OF WITHDRAWAL . C. NOTHING CONTAINED IN THIS COMPACT MAY BE CONSTRUED TO INVALIDATE OR PREVEN T ANY LICENSURE AGRE EMENT OR OTHER COOPE RATIVE ARRANGEMENT BETWEEN A MEMBER STATE AND A NON –MEMBER STATE THAT DOES NOT CONFLICT WI TH THE PROVISIONS OF THIS COMPACT. D. THIS COMPACT MAY BE AMENDE D BY THE MEMBER STATES. NO AMENDMENT TO THIS COMPACT SHALL BECOME EFFECTIVE AND BINDING UPON ANY MEMBER STATE UNTIL IT IS ENACTED INTO THE LAWS O F ALL MEMBER STATES. ARTICLE 14. CONSTRUCTION AND SEVERABILITY. A. THIS COMPACT AND THE COMMISSION’S RULEMAKING AUTHORI TY SHALL BE LIBERALLY CONSTRU ED SO AS TO EFFECTUA TE THE PURPOSES AND THE IMPLEMENTATION AND A DMINISTRATION OF THE COMPACT. PROVISIONS OF THE COMPACT EXPRESSLY AUT HORIZING OR REQUIRIN G THE PROMULGATION O F RULES MAY NOT BE CONSTRUED TO LIMIT THE COMMISSION’S RULEMAKI NG AUTHORITY SOLELY FOR THOSE PURPOSES . B. THE PROVISIONS OF THI S COMPACT SHALL BE SEVE RABLE AND IF ANY PHRASE, CLAUSE, SENTENCE OR PROVISIO N OF THIS COMPACT IS HELD BY A COURT OF COMPETENT JURISDI CTION TO BE CONTRARY TO THE CONSTITUTION OF ANY MEMBER STATE, A STATE SEEKING PARTICI PATION IN THE COMPACT, OR OF THE UNITED STATES, OR THE APPLICABILITY TO ANY GOVERNMENT , AGENCY, PERSON OR CIRCUMSTANCE IS H ELD TO BE UNCONSTITU TIONAL BY A COURT OF COMPETENT JURISDICTION, THE VALIDITY OF THE REMAINDER OF THIS COMPACT AND THE APPLICABILITY THEREOF TO ANY OTHER GOVERNM ENT, AGENCY, PERSON OR CIRCUMSTANCE MAY NOT BE AFFECTED . C. NOTWITHSTANDING ARTICLE 14.B., THE COMMISSION MAY DENY A STATE’S PARTICIPATION IN T HE COMPACT OR , IN ACCORDANCE WITH T HE REQUIREMENTS OF ARTICLE 12, TERMINATE A MEMBER STATE’S PARTICIPATION IN THE COMPACT, IF IT DETERMINES THA T A CONSTITUTIONAL R EQUIREMENT OF A WES MOORE, Governor Ch. 328 – 31 – MEMBER STATE IS A MATERIAL D EPARTURE FROM THE COMPACT. OTHERWISE, IF THIS COMPACT SHALL BE HELD TO BE CONTRARY TO THE CONSTITUTION OF ANY MEMBER STATE, THE COMPACT SHALL REMAIN IN FULL FORCE AND EF FECT AS TO THE REMAINING MEMBER STATES AND IN FULL FO RCE AND EFFECT AS TO THE MEMBER STATE AFFECTED AS TO ALL SEVERABLE MATTERS . ARTICLE 15. CONSISTENT EFFECT AND CONFLICT WITH OTHER STATE LAWS. A. NOTHING HEREIN SHALL PREVENT OR INHIBIT T HE ENFORCEMENT OF ANY OTHER LAW OF A MEMBER STATE THAT IS NOT INC ONSISTENT WITH THE COMPACT. B. ANY LAWS , STATUTES, REGULATIONS , OR OTHER LEGAL REQUIREMENTS IN A MEMBER STATE IN CONFLICT WIT H THE COMPACT ARE SUPERSEDED TO THE EX TENT OF THE CONFLICT . C. ALL PERMISSIBLE AGREE MENTS BETWEEN THE COMMISSION AND THE MEMBER STATES ARE BINDING IN ACCORDANC E WITH THEIR TERMS . SECTION 2. AND BE IT FURTHER ENACTED, That this Act is contingent on the enacting of substantially similar legislation in six other states. The Maryland Department of Labor shall notify the Department of Legislative Services within 10 days after any state has enacted legislation that is substantially similar to this Act. SECTION 3. AND BE IT FURTHER ENACTED, That , subject to Section 2 of this Act, this Act shall take effect October 1, 2024. Approved by the Governor, April 25, 2024.