Bill Text: TX SB9 | 2023 | 88th Legislature 2nd Special Session | Introduced

---

Bill Title: Relating to the Cosmetology Licensure Compact; authorizing fees.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2023-06-30 - Filed [SB9 Detail]

Download: Texas-2023-SB9-Introduced.html

---

By: Zaffirini S.B. No. 9

A BILL TO BE ENTITLED
AN ACT
relating to the Cosmetology Licensure Compact; authorizing fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 9, Occupations Code, is amended by adding
Chapter 1604 to read as follows:
CHAPTER 1604. COSMETOLOGY LICENSURE COMPACT
Sec. 1604.001. COSMETOLOGY LICENSURE COMPACT. The
Cosmetology Licensure Compact is enacted and entered into with all
other jurisdictions that legally join the compact, which reads as
follows:
COSMETOLOGY LICENSURE COMPACT
ARTICLE 1- PURPOSE
The purpose of this Compact is to facilitate the interstate
practice and regulation 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 establish a
regulatory framework which provides for a new multistate licensing
program. Through this new licensing program, the Member States
seek to provide increased value and mobility to licensed
Cosmetologists in the Member States, while ensuring the provision
of safe, effective, and reliable services to the public.
This Compact is designed to achieve the following objectives, and
the Member States hereby ratify the same intentions by subscribing
hereto:
A. Provide opportunities for interstate practice by
Cosmetologists who meet uniform requirements for multistate
licensure;
B. Enhance the abilities of Member States to protect public
health and safety, and 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 military members and their spouses;
E. Facilitate the exchange of information between Member
States related to the licensure, investigation, and
discipline of the Practice of Cosmetology;
F. Provide for the licensure and mobility of the workforce in
the profession, while addressing the shortage of workers and
lessening the associated burdens on the Member States.
ARTICLE 2- DEFINITIONS
As used in this Compact, and except as otherwise provided, the
following definitions shall govern the terms herein:
A. "Active Military Member" means any person with full-time
duty status in the armed forces of the United States,
including members of the National Guard and Reserve.
B. "Adverse Action" means any administrative, 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
against an individual's license or Authorization to Practice
such as revocation, suspension, probation, monitoring of the
Licensee, limitation of the Licensee's practice, or any other
Encumbrance on a license affecting an individual's ability to
participate in the Cosmetology industry, including the
issuance of a cease and desist order.
C. "Authorization to Practice" means a legal authorization
associated with a Multistate License permitting the Practice
of Cosmetology in that Remote State, which shall be subject
to the enforcement jurisdiction of the State Licensing
Authority in that Remote State.
D. "Alternative Program" means a non-disciplinary monitoring
or prosecutorial diversion program approved by a Member
State's State Licensing Authority.
E. "Background Check" means the submission of information
for an applicant for the purpose of obtaining that
applicant's criminal history record information, as further
defined in 28 C.F.R. § 20.3(d), from the Federal Bureau of
Investigation and the agency responsible for retaining State
criminal or disciplinary history in the applicant's Home
State.
F. "Charter Member State" means Member States who have
enacted legislation to adopt this Compact where such
legislation predates the effective date of this Compact as
defined in Article 13.
G. "Commission" means the government agency whose membership
consists of all States that have enacted this Compact, which
is known as the Cosmetology Licensure Compact Commission, as
defined in Article 9, and which shall operate as an
instrumentality 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 services provided by a
Cosmetologist as set forth in the Member State's statutes and
regulations in the State where the services are being
provided.
J. "Current Significant Investigative Information" means:
1. Investigative Information that a State
Licensing Authority, after an inquiry or investigation
that complies with a Member State's due process
requirements, has reason to believe is not groundless
and, if proved true, would indicate a violation of that
State's laws regarding fraud or the Practice of
Cosmetology; or
2. Investigative Information that indicates
that a Licensee has engaged in fraud or represents an
immediate threat to public health and safety,
regardless of whether the Licensee has been notified
and had an opportunity to respond.
K. "Data System" means a repository of information about
Licensees, including, but not limited to, license status,
Investigative Information, and Adverse Actions.
L. "Disqualifying Event" means any event which shall
disqualify an individual from holding a Multistate License
under this Compact, which the Commission may by Rule or order
specify.
M. "Encumbered License" means a license in which an Adverse
Action restricts the Practice of Cosmetology by a Licensee,
or where said Adverse Action has been reported to the
Commission.
N. "Encumbrance" means a revocation or suspension of, or any
limitation on, the full and unrestricted Practice of
Cosmetology by a State Licensing Authority.
O. "Executive Committee" means a group of delegates elected
or appointed to act on behalf of, and within the powers
granted to them by, the Commission.
P. "Home State" means the Member State which is a Licensee's
primary State of residence, and where that Licensee holds an
active and unencumbered license to practice Cosmetology.
Q. "Investigative Information" means information, records,
or documents received or generated by a State Licensing
Authority pursuant to an investigation or other inquiry.
R. "Jurisprudence Requirement" means the assessment of an
individual's knowledge of the laws and rules governing the
Practice of Cosmetology in a State.
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 adopted this
Compact.
U. "Multistate License" means a license issued by and subject
to the enforcement jurisdiction 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 regulation promulgated by the
Commission under this Compact which has the force of law.
X. "Single-State License" means a Cosmetology license issued
by a Member State that authorizes practice of Cosmetology
only within the issuing State and does not include any
authorization 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 responsible for issuing Cosmetology licenses
or otherwise overseeing the Practice of Cosmetology in that
State.
ARTICLE 3- MEMBER STATE REQUIREMENTS
A. To be eligible to join this Compact, and to maintain
eligibility as a Member State, a State must:
1. License and regulate Cosmetology;
2. Have a mechanism or entity in place to
receive and investigate complaints about Licensees
practicing in that State;
3. Require that Licensees within the State
pass a Cosmetology competency examination prior to
being licensed to provide Cosmetology Services to the
public in that State;
4. Require that Licensees satisfy
educational or training requirements in Cosmetology
prior to being licensed to provide Cosmetology Services
to the public in that State;
5. Implement procedures for considering one
or more of the following categories of information from
applicants for licensure: criminal history;
disciplinary history; or Background Check. Such
procedures may include the submission of information by
applicants for the purpose of obtaining an applicant's
Background Check as defined herein;
6. Participate in the Data System, including
through the use of unique identifying numbers;
7. Share information 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
regarding a Licensee practicing in that State;
9. Comply with such Rules as may be enacted
by the Commission to administer the Compact; and
10. Accept Licensees from other Member
States as established herein.
B. Member States may charge a fee for granting a license to
practice Cosmetology.
C. Individuals not residing 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 each Member State. However, the
Single-State License granted to these individuals shall not
be recognized as granting a Multistate License to provide
services in any other Member State.
D. Nothing in this Compact shall affect the requirements
established by a Member State for the issuance 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 recognized by each Member
State as authorizing a Licensee to practice Cosmetology in
each Member State.
F. At no point shall the Commission have the power to define
the educational or professional requirements for a license to
practice Cosmetology. The Member States shall retain sole
jurisdiction over the provision of these requirements.
ARTICLE 4- MULTISTATE LICENSE
A. To be eligible to apply to their Home State's State
Licensing Authority for an initial Multistate License under
this Compact, a Licensee must hold an active and unencumbered
Single-State License to practice Cosmetology in their Home
State.
B. Upon the receipt of an application for a Multistate
License, according to the Rules of the Commission, a Member
State's State Licensing Authority shall ascertain whether
the applicant 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 applicable 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 of said Multistate License.
D. A Multistate License to practice Cosmetology issued by a
Member State's State Licensing Authority shall be recognized
by each Member State as authorizing the practice thereof as
though that Licensee held a Single-State License to do so in
each Member State, subject to the restrictions herein.
E. A Multistate License granted pursuant to this Compact may
be effective for a definite period of time, concurrent with
the licensure renewal period in the Home State.
F. To maintain a Multistate License under this Compact, a
Licensee must:
1. Agree to abide by the rules of the State
Licensing Authority, and the State scope of practice
laws governing the Practice of Cosmetology, of any
Member State in which the Licensee provides services;
2. Pay all required fees related to the
application and process, and any other fees which the
Commission may by Rule require; and
3. Comply with any and all other
requirements regarding Multistate Licenses which the
Commission may by Rule provide.
G. A Licensee practicing in a Member State is subject to all
scope of practice laws governing Cosmetology Services in that
State.
H. The Practice of Cosmetology under a Multistate License
granted pursuant to this Compact will 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 time.
B. If a Licensee changes their Home State by moving between
two Member States:
1. The Licensee shall immediately apply for
the reissuance of their Multistate License in their new
Home State. The Licensee shall pay all applicable fees
and notify the prior Home State in accordance with the
Rules of the Commission.
2. Upon receipt of an application to reissue
a Multistate License, the new Home State shall verify
that the Multistate License is active, unencumbered and
eligible for reissuance under the terms of the Compact
and the Rules of the Commission. The Multistate License
issued by the prior Home State will be deactivated and
all Member States notified in accordance with the
applicable Rules adopted by the Commission.
3. If required for initial licensure, the
new Home State may require a Background Check as
specified in the laws of that State, or the compliance
with any Jurisprudence Requirements of the new Home
State.
4. Notwithstanding any other provision of
this Compact, if a Licensee does not meet the
requirements set forth in this Compact for the
reissuance of a Multistate License by the new Home
State, then the Licensee shall be subject to the new
Home State requirements for the issuance of a
Single-State License in that State.
C. If a Licensee changes their 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 for the issuance of a
Single-State License in the new Home State.
D. Nothing in this Compact shall interfere with a Licensee's
ability to hold a Single-State License in multiple States;
however, for the purposes of this Compact, a Licensee shall
have only one Home State, and only one Multistate License.
E. Nothing in this Compact shall interfere with the
requirements established by a Member State for the issuance
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, shall be construed to limit, restrict, or in any
way reduce the ability of a Member State to enact and enforce
laws, regulations, or other rules related to the Practice of
Cosmetology in that State, where those laws, regulations, or
other rules are not inconsistent with the provisions of this
Compact.
B. Insofar as practical, a Member State's State Licensing
Authority shall cooperate with the Commission and with each
entity exercising independent regulatory authority over the
Practice of Cosmetology according to the provisions of this
Compact.
C. Discipline shall be the sole responsibility of the State
in which Cosmetology Services are provided. Accordingly,
each Member State's State Licensing Authority shall be
responsible for receiving complaints about individuals
practicing Cosmetology in that State, and for communicating
all 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 exclusive power to
impose 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 powers 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 the
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 taking
Adverse Action, the Home State's State Licensing
Authority shall give the same priority and effect
to reported conduct received from a Remote State
as it would if such conduct had occurred within
the Home State. In so doing, the Home State shall
apply its own State laws to determine the
appropriate action.
2. Issue cease and desist orders or impose an
Encumbrance on a Licensee's Authorization to Practice
within that Member State.
3. Complete any pending investigations of a
Licensee who changes their primary state of residence
during the course of such an investigation. The State
Licensing Authority shall also be empowered to report
the results of such an investigation to the Commission
through the Data System as described herein.
4. Issue subpoenas for both hearings and
investigations that require the attendance and
testimony of witnesses, as well as the production of
evidence. Subpoenas issued by a State Licensing
Authority in a Member State for the attendance and
testimony of witnesses or the production of evidence
from another Member State shall be enforced in the
latter State by any court of competent jurisdiction,
according to the practice and procedure of that court
applicable to subpoenas issued in proceedings before
it. The issuing State Licensing Authority shall pay any
witness fees, travel expenses, mileage, and other fees
required by the service statutes of the State in which
the witnesses or evidence are located.
5. If otherwise permitted by State law,
recover from the affected Licensee the costs of
investigations and disposition 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 factual findings of another Remote State.
D. A Licensee's Home State shall complete any pending
investigation(s) of a Cosmetologist who changes their
primary state of residence during the course of the
investigation(s). The Home State shall also have the
authority to take appropriate action(s) and shall promptly
report the conclusions of the investigations to the Data
System.
E. If an Adverse Action is taken by the Home State against a
Licensee's Multistate License, the Licensee's Authorization
to Practice in all other Member States shall be deactivated
until all Encumbrances have been removed from the Home State
license. All Home State disciplinary orders that impose an
Adverse Action against a Licensee's Multistate License shall
include a statement that the Cosmetologist's Authorization
to Practice is deactivated in all Member States during the
pendency of the order.
F. Nothing in this Compact shall override a Member State's
authority to accept a Licensee's participation in an
Alternative Program in lieu of Adverse Action. A Licensee's
Multistate License shall be suspended for the duration of the
Licensee's participation in any Alternative Program.
G. Joint Investigations
1. In addition to the authority granted to a
Member State by its respective scope of practice laws or
other applicable State law, a Member State may
participate with other Member States in joint
investigations of Licensees.
2. Member States shall share any
investigative, litigation, or compliance materials in
furtherance of any joint or individual 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 individual has a current license to practice
Cosmetology in good standing. The individual may retain their Home
State designation during any period of service when that individual
or their spouse is on active duty assignment.
ARTICLE 9- ESTABLISHMENT AND OPERATION OF THE COSMETOLOGY LICENSURE
COMPACT COMMISSION
A. The Compact Member States hereby create and establish a
joint government agency whose membership consists of all
Member States that have enacted the Compact known as the
Cosmetology Licensure Compact Commission. The Commission is
an instrumentality of the Compact Member States acting
jointly and not an instrumentality of any one State. The
Commission shall come into existence on or after 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 (1) 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 designee.
3. The Commission shall by Rule or bylaw
establish a term of office for delegates and may by Rule
or bylaw establish term limits.
4. The Commission may recommend removal or
suspension 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 be entitled to one
vote on all matters that are voted on by the Commission.
7. The Commission shall meet at least once
during each calendar year. Additional meetings may be
held as set forth in the bylaws. The Commission may meet
by telecommunication, video conference or other similar
electronic means.
C. The Commission shall have the following powers:
1. Establish the fiscal year of the
Commission;
2. Establish code of conduct and conflict of
interest policies;
3. Adopt Rules and bylaws;
4. Maintain its financial records in
accordance with the bylaws;
5. Meet and take such actions as are
consistent with the provisions of this 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 standing of any State Licensing Authority to sue or
be sued under applicable law shall not be affected;
7. Maintain and certify records and
information provided to a Member State as the
authenticated business records of the Commission, and
designate an agent to do so on the Commission's behalf;
8. Purchase and maintain insurance and
bonds;
9. Borrow, accept, or contract for services
of personnel, including, but not limited to, employees
of a Member State;
10. Conduct an annual financial review;
11. Hire employees, elect or appoint
officers, fix compensation, define duties, grant such
individuals appropriate authority to carry out the
purposes of the Compact, and establish the Commission's
personnel policies and programs relating to conflicts
of interest, qualifications of personnel, and other
related personnel matters;
12. As set forth in the Commission Rules,
charge a fee to a Licensee for the grant of a Multistate
License and thereafter, as may be established by
Commission Rule, charge the Licensee a Multistate
License renewal fee for each renewal period. Nothing
herein shall be construed to prevent a Home State from
charging a Licensee a fee for a Multistate License or
renewals of 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 fees;
14. Accept any and all appropriate gifts,
donations, grants of money, other sources of revenue,
equipment, supplies, materials, and services, and
receive, utilize, and dispose of the same; provided
that at all times the Commission shall avoid any
appearance of impropriety or conflict of interest;
15. Lease, purchase, retain, own, hold,
improve, or use any property, real, personal, or mixed,
or any undivided interest therein;
16. Sell, convey, mortgage, pledge, lease,
exchange, abandon, or otherwise dispose of any property
real, personal, or mixed;
17. Establish a budget and make
expenditures;
18. Borrow money;
19. Appoint committees, including standing
committees, composed of members, State regulators,
State legislators or their representatives, and
consumer representatives, and such other interested
persons as may be designated in this Compact and the
bylaws;
20. Provide and receive information from,
and cooperate with, law enforcement agencies;
21. Elect a Chair, Vice Chair, Secretary and
Treasurer and such other officers of the Commission as
provided in the Commission's bylaws;
22. Establish and elect an 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 is materially different from the model Compact
language such that the State would not qualify for
participation in the Compact; and
25. Perform such other functions as may be
necessary or appropriate to achieve the purposes of
this 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 the administration of the Compact
including compliance with the provisions of the
Compact, the Commission's Rules and bylaws, and
other such duties as deemed 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
administration services are appropriately
provided, including by contract;
d. Preparing and recommending the
budget;
e. Maintaining financial records
on behalf of the Commission;
f. Monitoring Compact compliance
of Member States and providing compliance reports
to the Commission;
g. Establishing additional
committees as necessary;
h. Exercising the powers and
duties of the Commission during the interim
between Commission meetings, except for adopting
or amending Rules, adopting or amending bylaws,
and exercising any other powers and duties
expressly reserved to the Commission by Rule or
bylaw; and
i. Other duties as provided in the
Rules or bylaws of the Commission.
2. The Executive Committee shall be composed
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
voting members of the Executive Committee; and
b. Other than the chair,
vice-chair, secretary and treasurer, the
Commission shall elect three voting members from
the current membership of the Commission.
c. The Commission may elect
ex-officio, nonvoting members from a recognized
national Cosmetology professional association as
approved by the Commission. The Commission's
bylaws shall identify qualifying organizations
and the manner of appointment if the number of
organizations seeking to appoint an ex officio
member exceeds the number of 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 take or intend to take
formal action on a matter for which a Commission
vote would otherwise be required, shall be open to
the public, except that the 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 five business days advance notice of its
public meetings, posted on its website and as
determined to provide notice to persons with an
interest in the public matters the Executive
Committee intends to address at those meetings.
5. The Executive Committee may hold an
emergency meeting when acting for the Commission to:
a. Meet an imminent threat 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 adopt and provide to the Member
States an annual report.
F. Meetings of the Commission
1. All meetings of the Commission that are
not closed pursuant to Article 9.F.4 shall be open to
the public. Notice of public meetings shall be posted on
the Commission's website at least thirty (30) days prior
to the public meeting.
2. Notwithstanding Article 9.F.1, the
Commission may convene an emergency public meeting by
providing at least twenty-four (24) hours prior notice
on the Commission's website, and any other means as
provided in the Commission's Rules, for any of the
reasons it may dispense with notice of proposed
rulemaking under Article 11.L. The Commission's legal
counsel shall certify that one of the reasons
justifying an emergency public meeting has been met.
3. Notice of all Commission meetings shall
provide the time, date, and location of the meeting, and
if the meeting is to be held or accessible via
telecommunication, video conference, or other
electronic means, the notice shall include the
mechanism for access to the meeting.
4. The Commission may convene in a closed,
non-public meeting for the Commission to discuss:
a. Non-compliance of a Member
State with its obligations under the Compact;
b. The employment, compensation,
discipline or other matters, practices or
procedures related to specific employees or other
matters related to the Commission's internal
personnel practices and procedures;
c. Current or threatened
discipline of a Licensee by the Commission or by a
Member State's Licensing Authority;
d. Current, threatened, or
reasonably anticipated litigation;
e. Negotiation of contracts for
the purchase, lease, or sale of goods, services,
or real estate;
f. Accusing any person of a crime
or formally censuring any person;
g. Trade secrets or commercial or
financial information that is privileged or
confidential;
h. Information of a personal
nature where disclosure would constitute a
clearly unwarranted invasion of personal privacy;
i. Investigative records compiled
for law enforcement purposes;
j. Information related to any
investigative reports prepared by or on behalf of
or for use of the Commission or other committee
charged with responsibility of investigation or
determination of compliance issues pursuant to
the Compact;
k. Legal advice;
l. Matters specifically exempted
from disclosure to the public by federal or Member
State law; or
m. Other matters as promulgated
by the Commission by Rule.
5. If a meeting, or portion of a meeting, is
closed, the presiding officer shall state that the
meeting will be closed and reference each relevant
exempting provision, 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 summary of
actions taken, and the reasons therefore, including a
description of the views expressed. All documents
considered in connection with an action shall be
identified in such minutes. All minutes and documents
of a closed meeting shall remain under seal, subject to
release only by a majority vote of the Commission or
order of a court of competent jurisdiction.
G. Financing of the Commission
1. The Commission shall pay, or provide for
the payment of, the reasonable expenses of its
establishment, organization, and ongoing activities.
2. The Commission may accept any and all
appropriate sources of revenue, donations, and grants
of money, equipment, supplies, materials, and services.
3. The Commission may levy on and collect an
annual assessment from each Member State and impose
fees on Licensees of Member States to whom it grants a
Multistate License to cover the cost of the operations
and activities of the Commission and its staff, which
must be in a total amount sufficient to cover its annual
budget as approved each year for which revenue is not
provided by other sources. The aggregate annual
assessment amount for Member States shall be allocated
based upon a formula that the Commission shall
promulgate by Rule.
4. The Commission shall not incur
obligations of any kind prior to securing the funds
adequate 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.
5. The Commission shall keep accurate
accounts of all receipts and disbursements. The
receipts and disbursements of the Commission shall be
subject to the financial review and accounting
procedures established under its bylaws. All receipts
and disbursements of funds handled by the Commission
shall be subject to an annual financial review by a
certified or licensed public accountant, and the report
of the financial review shall be included in and become
part of the annual report of the Commission.
H. Qualified Immunity, Defense, and Indemnification
1. The members, officers, executive
director, employees and representatives of the
Commission shall be immune from suit and liability,
both personally and in their official capacity, for any
claim for damage to or loss of property or personal
injury or other civil liability caused by or arising out
of any actual or alleged act, error, or omission that
occurred, or that the person against whom the claim is
made had a reasonable basis for believing occurred
within the scope of Commission employment, duties or
responsibilities; provided that nothing in this
paragraph shall be construed to protect any such person
from suit or liability for any damage, loss, injury, or
liability caused by the intentional or willful or
wanton misconduct of that person. The procurement of
insurance of any type by the Commission shall not in any
way compromise or limit the immunity granted hereunder.
2. The Commission shall defend any member,
officer, executive director, employee, and
representative of the Commission in any civil action
seeking to impose liability arising out of any actual or
alleged act, error, or omission that occurred within
the scope of Commission employment, duties, or
responsibilities, or as determined by the Commission
that the person against whom the claim is made had a
reasonable basis for believing occurred within the
scope of Commission employment, duties, or
responsibilities; provided that nothing herein shall be
construed to prohibit that person from retaining their
own counsel at their own expense; and provided further,
that the actual or alleged act, error, or omission did
not result from that person's intentional or willful or
wanton misconduct.
3. The Commission shall indemnify and hold
harmless any member, officer, executive director,
employee, and representative of the Commission for the
amount of any settlement or judgment obtained against
that person arising out of any actual or alleged act,
error, or omission that occurred within the scope of
Commission employment, duties, or responsibilities, or
that such person had a reasonable basis for believing
occurred within the scope of Commission employment,
duties, or responsibilities, provided that the actual
or alleged act, error, or omission did not result from
the intentional or willful or wanton misconduct of that
person.
4. Nothing herein shall be construed as a
limitation on the liability of any Licensee for
professional malpractice or misconduct, which shall be
governed solely by any other applicable State laws.
5. Nothing in this Compact shall be
interpreted to waive or otherwise abrogate a Member
State's State action immunity or State action
affirmative defense with respect to antitrust claims
under the Sherman Act, Clayton Act, or any other State
or federal antitrust or anticompetitive law or
regulation.
6. Nothing in this Compact shall be
construed to be a waiver of sovereign immunity by the
Member States or by the Commission.
ARTICLE 10- DATA SYSTEM
A. The Commission shall provide for the development,
maintenance, operation, and utilization of a coordinated
database and reporting system.
B. The Commission shall assign each applicant for a
Multistate License a unique identifier, as determined by the
Rules of the Commission.
C. Notwithstanding any other provision of State law to the
contrary, a Member State shall submit a uniform data set to
the Data System on all individuals to whom this Compact is
applicable as required by the Rules of the Commission,
including:
1. Identifying information;
2. Licensure data;
3. Adverse Actions against a license and
information related thereto;
4. Non-confidential information related to
Alternative Program participation, the beginning and
ending dates of such participation, and other
information related to such participation;
5. Any denial of application for licensure,
and the reason(s) for such denial (excluding the
reporting of any criminal history record information
where prohibited by law);
6. The existence of Investigative
Information;
7. The existence of Current Significant
Investigative Information; and
8. Other information that may facilitate the
administration of this Compact or the protection of the
public, as determined by the Rules of the Commission.
D. The records and information provided to a Member State
pursuant to this Compact or through the Data System, when
certified by the Commission or an agent thereof, shall
constitute the authenticated business records of the
Commission, and shall be entitled to any associated hearsay
exception in any relevant judicial, quasi-judicial or
administrative proceedings in a Member State.
E. The existence of Current Significant Investigative
Information and the existence of Investigative Information
pertaining to a Licensee in any Member State will only be
available to other Member States.
F. It is the responsibility of the Member States to monitor
the database to determine whether Adverse Action has been
taken against such a Licensee or License applicant. Adverse
Action information pertaining to a Licensee or License
applicant in any Member State will be available to any other
Member State.
G. Member States contributing information to the Data System
may designate information that may not be shared with the
public without the express permission of the contributing
State.
H. Any information submitted to the Data System that is
subsequently expunged pursuant to federal law or the laws of
the Member State contributing the information shall be
removed from the Data System.
ARTICLE 11- RULEMAKING
A. The Commission shall promulgate reasonable Rules in order
to effectively and efficiently implement and administer the
purposes and provisions of the Compact. A Rule shall be
invalid and have no force or effect only if a court of
competent jurisdiction holds that the Rule is invalid because
the Commission exercised its rulemaking authority in a manner
that is beyond the scope and purposes of the Compact, or the
powers granted hereunder, or based upon another applicable
standard of review.
B. The Rules of the Commission shall have the force of law in
each Member State, provided however that where the Rules of
the Commission conflict with the laws of the Member State
that establish the Member State's scope of practice laws
governing the Practice of Cosmetology as held by a court of
competent jurisdiction, the Rules of the Commission shall be
ineffective in that State to the extent of the conflict.
C. The Commission shall exercise its rulemaking powers
pursuant to the criteria set forth in this Article and the
Rules adopted thereunder. Rules shall become binding 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 statute
or resolution in the same manner used to adopt the Compact
within four (4) years of the date of adoption of the Rule,
then such Rule shall have no further force and effect in any
Member State or to any State applying to participate in the
Compact.
E. Rules shall be adopted at a regular or special meeting of
the Commission.
F. Prior to adoption of a proposed 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 adoption of a proposed Rule by the Commission,
and at least thirty (30) days in advance of the meeting at
which the Commission will hold a public hearing on the
proposed Rule, the Commission shall provide a notice of
proposed rulemaking:
1. On the website of the Commission or other
publicly accessible platform;
2. To persons who have requested notice of
the Commission's notices of proposed rulemaking; and
3. In such other way(s) as the Commission may
by Rule specify.
H. The notice of proposed rulemaking shall include:
1. The time, date, and location of the public
hearing at which the Commission will hear public
comments on the proposed Rule and, if different, the
time, date, and location of the meeting where the
Commission will consider and vote on the proposed Rule;
2. If the hearing is held via
telecommunication, video conference, or other
electronic means, the Commission shall include the
mechanism for access to the hearing in the notice of
proposed rulemaking;
3. The text of the proposed Rule and the
reason therefor;
4. A request for comments on the proposed
Rule from any interested person; and
5. The manner in which interested persons
may submit written comments.
I. All hearings will be recorded. A copy of the recording and
all written comments and documents received by the Commission
in response to the proposed Rule shall be available to the
public.
J. Nothing in this Article shall be construed as requiring a
separate hearing on each Rule. Rules may be grouped for the
convenience of the Commission at hearings required by this
Article.
K. The Commission shall, by majority vote of all members,
take final action on the proposed Rule based on the
rulemaking record and the full text of the Rule.
1. The Commission may adopt changes to the
proposed Rule provided the changes do not enlarge the
original purpose of the proposed Rule.
2. The Commission shall provide an
explanation of the reasons for substantive changes made
to the proposed Rule as well as reasons for substantive
changes not made that were recommended by commenters.
3. The Commission shall determine a
reasonable effective date for the Rule. Except for an
emergency as provided in Article 11.L, the effective
date of the Rule shall be no sooner than forty-five (45)
days after the Commission issuing the notice that it
adopted or amended the Rule.
L. Upon determination that an emergency exists, the
Commission may consider and adopt an emergency Rule with five
(5) days' notice, with opportunity to comment, provided that
the usual rulemaking procedures provided in the Compact and
in this Article shall be retroactively applied to the Rule as
soon as reasonably possible, in no event later than ninety
(90) days after the effective date of the Rule. For the
purposes of this provision, an emergency Rule is one that
must be adopted immediately to:
1. Meet an imminent threat to public health,
safety, or welfare;
2. Prevent a loss of Commission or Member
State funds;
3. Meet a deadline for the promulgation of a
Rule that is established by federal law or rule; or
4. Protect public health and safety.
M. The Commission or an authorized committee of the
Commission may direct revisions to a previously adopted Rule
for purposes of correcting typographical errors, errors in
format, errors in consistency, or grammatical errors. Public
notice of any revisions shall be posted on the website of the
Commission. The revision shall be subject to challenge by
any person for a period of thirty (30) days after posting.
The revision may be challenged only on grounds 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 notice period. If no challenge is
made, the revision will take effect without further action.
If the revision is challenged, the revision may not take
effect without the approval of the Commission.
N. No Member State's rulemaking requirements shall apply
under this Compact.
ARTICLE 12- OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT
A. Oversight
1. The executive and judicial branches of
State government in each Member State shall enforce
this Compact and take all actions necessary and
appropriate to implement the Compact.
2. Venue is proper and judicial proceedings
by or against the Commission shall be brought solely and
exclusively in a court of competent jurisdiction where
the principal office of the Commission is located. The
Commission may waive venue and jurisdictional defenses
to the extent it adopts or consents to participate in
alternative dispute resolution proceedings. Nothing
herein shall affect or limit the selection or propriety
of venue in any action against a Licensee for
professional malpractice, misconduct or any such
similar matter.
3. The Commission shall be entitled to
receive service of process in any proceeding regarding
the enforcement or interpretation of the Compact and
shall have standing to intervene in such a proceeding
for all purposes. Failure to provide the Commission
service of process shall render a judgment 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 performance of its
obligations or responsibilities under this Compact or
the promulgated Rules, the Commission shall provide
written notice to the defaulting State. The notice of
default shall describe the default, the proposed means
of curing the default, and any other action that the
Commission may take, and shall offer training and
specific technical assistance regarding the default.
2. The Commission shall provide a copy of the
notice of default to the other Member States.
3. If a State in default fails to cure the
default, the defaulting State may be terminated from
the Compact upon an affirmative vote of a majority of
the delegates of the Member States, and all rights,
privileges and benefits conferred on that State by this
Compact may be terminated on the effective date of
termination. A cure of the default does not relieve the
offending State of obligations or liabilities incurred
during the period of default.
4. Termination of membership in the Compact
shall be imposed only after all other means of securing
compliance have been exhausted. Notice of intent to
suspend or terminate shall be given by the Commission to
the governor, the majority and minority 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 terminated is
responsible for all assessments, obligations, and
liabilities incurred through the effective date of
termination, including obligations that extend beyond
the effective date of termination.
6. Upon the termination of a State's
membership from this Compact, that State shall
immediately 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 one hundred eighty (180) days after the
date of said notice of termination.
7. The Commission shall not bear any costs
related to a State that is found to be in default or that
has been terminated from the Compact, unless agreed
upon in writing between the Commission and the
defaulting State.
8. The defaulting State may appeal the
action of the Commission by petitioning the United
States District Court for the District of Columbia or
the federal district where the Commission has its
principal offices. The prevailing party shall be
awarded all costs of such litigation, including
reasonable attorney's fees.
C. Dispute Resolution
1. Upon request by a Member State, the
Commission shall attempt to resolve disputes related to
the Compact that arise among Member States and between
Member and non-Member States.
2. The Commission shall promulgate a Rule
providing for both mediation and binding dispute
resolution for disputes as appropriate.
D. Enforcement
1. The Commission, in the reasonable
exercise of its discretion, shall enforce the
provisions of this Compact and the Commission's Rules.
2. By majority vote as provided by
Commission Rule, the Commission may initiate legal
action against a Member State in default in the United
States District Court for the District of Columbia or
the federal district where the Commission has its
principal offices to enforce compliance with the
provisions of the Compact and its promulgated Rules.
The relief sought may include both injunctive relief
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. The remedies herein shall not be the
exclusive remedies of the Commission. The Commission
may pursue any other remedies available under federal
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 federal
district where the Commission has its principal offices
to enforce compliance with the provisions of the
Compact and its promulgated Rules. The relief sought
may include both injunctive relief 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 or 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 into effect on the date on which the
Compact statute is enacted into law in the seventh Member
State.
1. On or after the effective date of the
Compact, the Commission shall convene and review the
enactment of each of the Charter Member States to
determine if the statute enacted by each such Charter
Member State is materially different than the model
Compact statute.
a. A Charter Member State whose
enactment is found to be materially different from
the model Compact statute shall be entitled to the
default process set forth 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 the number of Member States
should be less than seven (7).
2. Member States enacting the Compact
subsequent to the Charter Member States shall be
subject to the process set forth in Article 9.C.24 to
determine if their enactments are materially different
from the model Compact statute and whether they qualify
for participation in the Compact.
3. All actions taken for the benefit of the
Commission or in furtherance of the purposes of the
administration of the Compact prior to the effective
date of 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
subject to the Commission's Rules and bylaws as they
exist on the date on which the Compact becomes law in
that State. Any Rule that has been previously adopted
by the Commission shall have the full force and effect
of law on the day the Compact becomes law in that State.
B. Any Member State may withdraw from this Compact by
enacting a statute repealing that State's enactment of the
Compact.
1. A Member State's withdrawal shall not take
effect until one hundred eighty (180) days after
enactment of the repealing statute.
2. Withdrawal shall not affect the
continuing requirement of the withdrawing State's State
Licensing Authority to comply with the investigative
and Adverse Action reporting requirements of this
Compact prior to the effective date of withdrawal.
3. Upon the enactment of a statute
withdrawing from this Compact, a State shall
immediately provide notice of such withdrawal to all
Licensees within that State. Notwithstanding any
subsequent statutory enactment to the contrary, such
withdrawing State shall continue to recognize all
licenses granted pursuant to this Compact for a minimum
of one hundred eighty (180) days after the date of such
notice of withdrawal.
C. Nothing contained in this Compact shall be construed to
invalidate or prevent any licensure agreement or other
cooperative arrangement between a Member State and a
non-Member State that does not conflict with the provisions
of this Compact.
D. This Compact may be amended 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 of all
Member States.
ARTICLE 14- CONSTRUCTION AND SEVERABILITY
A. This Compact and the Commission's rulemaking authority
shall be liberally construed so as to effectuate the
purposes, and the implementation and administration of the
Compact. Provisions of the Compact expressly authorizing or
requiring the promulgation of Rules shall not be construed to
limit the Commission's rulemaking authority solely for those
purposes.
B. The provisions of this Compact shall be severable and if
any phrase, clause, sentence or provision of this Compact is
held by a court of competent jurisdiction to be contrary to
the constitution of any Member State, a State seeking
participation in the Compact, or of the United States, or the
applicability thereof to any government, agency, person or
circumstance is held to be unconstitutional by a court of
competent jurisdiction, the validity of the remainder of this
Compact and the applicability thereof to any other
government, agency, person or circumstance shall not be
affected thereby.
C. Notwithstanding Article 14.B, the Commission may deny a
State's participation in the Compact or, in accordance with
the requirements of Article 12, terminate a Member State's
participation in the Compact, if it determines that a
constitutional requirement of a Member State is a material
departure 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 effect as to
the remaining Member States and in full force 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 the enforcement of
any other law of a Member State that is not inconsistent with
the Compact.
B. All permissible agreements between the Commission and the
Member States are binding in accordance with their terms.
Sec. 1604.002. ADMINISTRATION OF COMPACT. The Texas
Department of Licensing and Regulation is the Cosmetology Licensure
Compact administrator for this state.
Sec. 1604.003. RULES. The Texas Commission of Licensing
and Regulation may adopt rules necessary to implement this chapter.
SECTION 2. This Act takes effect on the 91st day after the
last day of the legislative session.