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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
HOUSE BILL 3158 By: Roberts
AS INTRODUCED
An Act relating to professions and occupations;
creating tax-exempt schools for cosmetology and
barber training; providing for applicati on form,
initial license fee, surety bond, and financial
statement; creating tax-exempt schools within the
Department of Corrections; providing for letter of
intent, application form, initial license fee, surety
bond, financial statement, and proof of use of
building; providing for tax-exempt license renewal;
providing for application and fee; prohibiting
deceptive or misleading language in advertising;
providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF T HE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 199.19 of Title 59, unless there
is created a duplication in numbering, reads as fol lows:
A. Any nonprofit 501(c)(3) tax-exempt school that proposes to
provide cosmetology or barber training courses designed to qualify
persons who complete courses for a professional license to practice
cosmetology or barbering, s hall be required to obta in a license for
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the nonprofit 501(c)(3) tax-exempt postsecondary school from the
State Board of Cosmetology and Barbering .
B. The license application form shall be completed in full
making note whether the school intends to operate a s a secondary or
postsecondary establishment and returned to the Board and shall
contain the following information:
1. Proposed name, location (city, street , and number), and a
brief description of the building;
2. Name, address, and phone number of the proposed owner . If a
corporation, the names, addresses, and phone numbers of the officers
and principal stockholders are required to be submitted; and
3. Names of Oklahoma license s held and the file numbers of the
persons to be the instructors of the proposed school and that of the
manager, if other than the o wner.
C. Each initial public, privately owned, and nonprofit
501(c)(3) tax-exempt cosmetology or barber school shall be required
to pay to the Board the initial license fee of Four Hundred Dollars
($400.00). Each public, privately owned, and nonprofit 501(c)(3)
tax-exempt school shall also pay the annual license renewal fee of
One Hundred Twenty-five Dollars ($125.00). Each school license
shall expire annually on June 30th. No provision is made for pro
rata of any license fee. A school shall be inspected at least once
each year in order to be eligible for renewal.
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D. A surety bond in the amount of Two Thousand Dollars
($2,000.00) for the first instructor and One Thousand Dollars
($1,000.00) for each additional instruct or shall be submitted for
each cosmetology or barber school license. The bond shall be in an
amount sufficient to meet bonding requirements for all staff.
E. A current financial statement of the license applicant,
prepared by a public accountant or a certified public accountant, is
required to be submitted to the Board. The financial statement
shall be prepared in accordance with generally accepted accounting
principles and shall reflect the applicant 's total property
inventory, assets, and liabilities which shall show a net worth of
at least One Hundred Thousand Dollars ( $100,000.00) for each school
owned. Intangible assets shall not be considered in net worth.
SECTION 2. NEW LAW A new section of law to be codifie d
in the Oklahoma Statutes as Section 199.20 of Title 59, unless there
is created a duplication in numbering, reads as follows:
A. Any nonprofit 501(c)(3) tax-exempt school located within a
correctional facility that proposes to provide cosmetology or ba rber
training courses designed to qualify persons who complete courses
for a professional license to practice cosmetolo gy or barbering,
shall be required to obtain a license for the nonprofit 501(c)(3)
tax-exempt postsecondary school from the State Board of Cosmetology
and Barbering.
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B. The license application form shall be completed in full ,
making note of whether the school intends to operate as a secondary
or postsecondary establishment , and returned to the Board and shall
contain the following informat ion:
1. Names, addresses, and phone numbers of the Director of the
Oklahoma Department of Corrections, administrative staff, Chief
Administrator of Classification and Programs, Administer of
Programs, and the warden at the correctional facilit y where the
school is to be located, and of each instructor proposed to teach in
the school. The file number of the instructor shall be submitted;
2. A notarized affidavit stating source of sufficient bond
coverage and that the building wherein the school is proposed to be
conducted is owned by the Department of Corrections, and
3. Phone numbers of the correctional facility and a brief
general description of the correctional facility location within the
institution and other building training sections and parking areas.
C. Each initial public, privately owned, and nonprofit
501(c)(3) tax-exempt cosmetology or barber school shall be required
to pay to the Board the initial license fee of Four Hundred Dollars
($400.00). Each public, privately owned, and nonprofit 501(c)(3)
tax-exempt school shall also pay the annual license renewal fee of
One Hundred Twenty-five Dollars ($125.00). Each school license
shall expire annually on June 3 0th. No provision is made for pro
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rata of any license fee. A school shall be inspected at least once
each year in order to be eligible for renewal.
D. A surety bond in the amount of Two Thousand Dollars
($2,000.00) for the first instructor and One Thousand Dollars
($1,000.00) for each additional instructor is required to be
submitted for each cosmetology or barber school license. The bond
shall be in an amount sufficient to meet bonding requirements for
all staff.
E. A current financial statement of the lic ense applicant,
prepared by a public accountant or a certified public accountant, is
required to be submitted to the Board. The financial statement
shall be prepared in accordance with generally accepted accounting
principles and shall reflect the applican t's total property
inventory, assets, and liabilities which sh all show a net worth of
at least One Hundred Thousand Dollars ( $100,000.00) for each school
owned. Intangible assets shall not be considered in net worth.
F. Nonprofit 501(c)(3) tax-exempt schools within a correctional
facility shall not acquire funds. Education shall be provided free
of cost to all students enrolled in the programs. All supplies
shall either be bought from money that is obtained through grants or
by private donation made to the organization. A financial statement
shall not be required for this type of school.
G. Applicants shall obtain a memorandum of understanding from
the Oklahoma Department of Corrections stating that the Department
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will allow the applicant use of the designated area for one (1)
year, or a sum of twelve-month increments, th at will be used for the
proposed school to operate.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 199.21 of Title 59, unless there
is created a duplication in numbering, reads as follows:
A. A 501(c)(3) tax-exempt school license shall expire annu ally
on June 30th. A renewal application shall be received by June 30th
each year.
B. A 501(c)(3) tax-exempt license renewal applicati on, forms,
and instructions shall be mailed annually to schools by the State
Board of Cosmetology and Barbering . Forms include a surety bond
renewal form, power of attorney, and verification form.
C. A fee of One Hundred Twenty-five Dollars ($125.00) is
required for school li cense renewal.
D. Any advertisement for recruitment of students shall state
that the school is proposed to be open and shall not contain
deceptive or misleading language and shall state that the school has
applied for licensure.
SECTION 4. This act shall become effective November 1, 2024.
59-2-8430 LRB 11/06/23