HB 705

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
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
A.  Provide opportunities for interstate practice by
Cosmetologists who meet uniform requirements for multistate
B.  Enhance the abilities of Member States to protect public
health and safety, and prevent fraud and unlicensed activity within
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
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.
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
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
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
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
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;
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
O.  "Executive Committee" means a group of delegates elected
or appointed to act on behalf of, and within the powers granted to
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
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
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
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
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
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
B.  Member States may charge a fee for granting a license to
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
D.  Nothing in this Compact shall affect the requirements
established by a Member State for the issuance of a Single-State
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
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.
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
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
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
2.  Pay all required fees related to the application
and process, and any other fees which the Commission may by Rule
3.  Comply with any and all other requirements
regarding Multistate Licenses which the Commission may by Rule
G.  A Licensee practicing in a Member State is subject to all
scope of practice laws governing Cosmetology Services in that
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
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
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
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
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
ARTICLE 6- AUTHORITY OF THE COMPACT COMMISSION AND MEMBER STATE
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.
A.  A Licensee's Home State shall have exclusive power to
impose an Adverse Action against a Licensee's Multistate License
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
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
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
2.  Issue cease and desist orders or impose an
Encumbrance on a Licensee's Authorization to Practice within that
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
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
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
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
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
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
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
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
4.  The Commission may recommend removal or suspension
5.  A Member State's State Licensing Authority shall
fill any vacancy of its delegate occurring on the Commission within
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
4.  Maintain its financial records in accordance with
5.  Meet and take such actions as are consistent with
the provisions of this Compact, the Commission's Rules, and the
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
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
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
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
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
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
16.  Sell, convey, mortgage, pledge, lease, exchange,
abandon, or otherwise dispose of any property real, personal, or
17.  Establish a budget and make expenditures;
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
22.  Establish and elect an Executive Committee,
including a chair and a vice chair;
23.  Adopt and provide to the Member States an annual
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.
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
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
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
f.  Monitoring Compact compliance of Member
States and providing compliance reports to the Commission;
g.  Establishing additional committees as
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
2.  The Executive Committee shall be composed of up to
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
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
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
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
5.  The Executive Committee may hold an emergency
meeting when acting for the Commission to:
a.  Meet an imminent threat to public health,
b.  Prevent a loss of Commission or Member State
c.  Protect public health and safety.
E.  The Commission shall adopt and provide to the Member
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
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
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
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
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
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
i.  Investigative records compiled for law
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;
l.  Matters specifically exempted from disclosure
to the public by federal or Member State law; or
m.  Other matters as promulgated by the Commission
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
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
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
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
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
A.  The Commission shall provide for the development,
maintenance, operation, and utilization of a coordinated database
B.  The Commission shall assign each applicant for a
Multistate License a unique identifier, as determined by the Rules
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:
3.  Adverse Actions against a license and information
4.  Non-confidential information related to
Alternative Program participation, the beginning and ending dates
of such participation, and other information related to such
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
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
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
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
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
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
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
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
3.  The text of the proposed Rule and the reason
4.  A request for comments on the proposed Rule from any
5.  The manner in which interested persons may submit
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
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
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,
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
N.  No Member State's rulemaking requirements shall apply
ARTICLE 12- OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT
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
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'
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
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.
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
1.  The Commission, in the reasonable exercise of its
discretion, shall enforce the provisions of this Compact and the
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
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
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 repe