Cosmetology Compact Bill Creates A Multistate Commission With Rule Power

The text as introduced · 8,798 words

By: Wilson
H.B. No. 705

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 September 1, 2026.