By: Zaffirini  S.B. No. 1615          (In the Senate - Filed March 6, 2023; March 16, 2023, read   first time and referred to Committee on Business & Commerce;   April 19, 2023, reported favorably by the following vote:  Yeas 11,   Nays 0; April 19, 2023, sent to printer.)Click here to see the committee vote     A BILL TO BE ENTITLED   AN ACT     relating to the cosmetology licensure compact.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The cosmetology licensure compact is adopted to   read 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 meaningful dispute resolution while allowing   a Remote State to hold a Licensee accountable under the Remote   State's Practice Laws, even where that Licensee holds a Multistate   License; and          G.  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 Duty Military" means any individual in full-time   duty status in the active uniformed service 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 Licensing Authority or other regulatory body   against a or Cosmetologist, including actions against an   individual's licensure privilege such as revocation, suspension,   probation, monitoring of the Licensee, limitation of the Licensee's   practice, or any other Encumbrance on licensure 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 a remote state.          D.  "Alternative Program" means a non-disciplinary   monitoring or prosecutorial diversion program approved by a Member   State's 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.  "Commission" shall refer to the national administrative   body whose membership consists of all states that have enacted this   Compact, and which is known as the Cosmetology Licensure Compact   Commission.          G.  "Cosmetologist" means an individual licensed in their   Home State to practice Cosmetology.          H.  "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.          I.  "Current Significant Investigative Information" means:                1.  Investigative Information that a 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.          J.  "Data System" means a repository of information about   Licensees, including but not limited to license status,   Investigative Information, and Adverse Actions.          K.  "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.          L.  "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.          M.  "Encumbrance" means a revocation or suspension of, or any   limitation on, the full and unrestricted Practice of Cosmetology by   a Licensing Authority.          N.  "Executive Committee" means a group of commissioners   elected or appointed to act on behalf of, and within the powers   granted to them by, the Commission.          O.  "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.          P.  "Investigative Information" means information, records,   or documents received or generated by a Licensing Authority   pursuant to an investigation or other inquiry.          Q.  "Jurisprudence Requirement" means the assessment of an   individual's knowledge of the laws and rules governing the Practice   of Cosmetology in a State.          R.  "Licensing Authority" means a Member State's regulatory   body responsible for issuing Cosmetology licenses or otherwise   overseeing the Practice of Cosmetology in that State.          S.  "Licensee" means an individual who currently holds an   authorization 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 to practice as a   Cosmetologist in all Member States issued by the Licensing   Authority of the Licensee's Home State 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 Practice Laws" means a Member State's laws, rules,   and regulations that govern the Practice of Cosmetology, define the   scope of such practice, and create the methods and grounds for   imposing discipline.   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   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 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 disciplinary 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 any 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   Singe-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 PROGRAM          A.  A Licensee who holds an active and unencumbered license   to practice Cosmetology in their Home State shall be entitled to   apply to their Home State's Licensing Authority for a Multistate   License.          B.  Upon the receipt of an application for a Multistate   License for Cosmetology, according to the Rules of the Commission,   a Member State's Licensing Authority shall ascertain whether the   applicant meets the requirements for a Multistate License under   this Compact using any and all information available to the   Licensing Authority, including, but not limited to, information   uploaded to the Data System by the applicant's Home State.          C.  If an applicant meets the requirements for a Multistate   License under this Compact and any Rules of the Commission, the   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 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 renewal   of the Home State License.          F.  To qualify for a Multistate License under this Compact,   and to maintain eligibility for such a license, an applicant must:                1.  Hold an active, unencumbered license in the   applicant's Home State;                2.  Be assigned and maintain a unique identifying   number, according to the Rules of the Commission;                3.  Agree to abide by the rules and requirements of the   Licensing Authority, and the State Practice Laws, of any Member   State in which the applicant provides services;                4.  Pay all required fees related to the application   and certification process, and any other fees which the Commission   may by Rule require; and                5.  Comply with any and all other requirements   regarding Multistate Licenses which the Commission may by Rule   provide.          G.  A Licensee providing services in a Member State must   comply with the State Practice Laws of the State in which the   services are provided, and all other applicable laws of 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 Licensing Authority, the courts, and the laws   of the Member State in which the Cosmetology Services are provided.   ARTICLE 5- OBTAINING A NEW HOME STATE LICENSE UNDER THE MULTISTATE   LICENSE          A.  Under the Multistate Licensure Program in Article 4, a   Licensee may hold a Home State License in only one Member State at   any given time.          B.  If a Licensee changes their Primary State of Residence by   moving between two Member States:                1.  The Licensee shall file an application for   obtaining a new Home State License under the Multistate Licensure   Program pursuant to Article 4, pay all applicable fees, and notify   the current and new Home States in accordance with the Rules of the   Commission.                2.  Upon receipt of an application for obtaining a new   Home State License under the Multistate Licensure Program, the new   Home State shall verify that the Licensee meets the criteria   outlined in Article 4 via the Data System, without the need for   primary source verification.                3.  If required for initial licensure in that State, a   Member State may require an additional Background Check as   specified in the laws of that State, or the compliance with any   Jurisprudence Requirements of the new Home State.                4.  A Licensee may hold a Multistate License, as issued   by their Home State, in only one Member State at a time.                5.  If a Licensee holding a Multistate License changes   their primary state of residence by moving between two Member   States, the Licensee shall apply for licensure in the new Home   State, and the Multistate License issued by the prior Home State   will be deactivated in accordance with the applicable Rules adopted   by the Commission.                6.  Notwithstanding any other provision of this   Compact, if a Licensee cannot meet the criteria set out in Article   4, then the new Home State shall use the applicable requirements for   a Single-State License in that State.                7.  A Licensee shall pay all applicable fees to the new   Home State in order to be issued a new Home State license.          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 State criteria shall   apply 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 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.  Licensees operating in a Member State under a Multistate   License shall be subject to both the Rules and requirements of the   Commission and those of the Member State in which Cosmetology   Services are being provided.          D.  An Adverse Action by a Member State's Licensing Authority   against a Licensee shall in no way limit another Member State's   authority to grant a Single-State License to that Licensee, or to   regulate such Single-State Licenses.          E.  Discipline shall be the sole responsibility of the State   in which Cosmetology Services are provided. Accordingly, each   Member State's 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 Licensee's Multistate License   issued by the Home State.          B.  In addition to the powers conferred by state law, each   Member State's Licensing Authority shall have the power to:                1.  Take Adverse Action against a Licensee's   Authorization to Practice Cosmetology through the Multistate   License in the Member State, provided that:                      a.  Only the Licensee's Home State shall have the   power to take Adverse Action against the license issued by the Home   State; and                      b.  For the purposes of taking Adverse Action, the   Home State's 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 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 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 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 based on the factual findings   of a Remote State, provided that the Licensing Authority follows   its own procedures for taking such Adverse Action.          C.  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.          D.  If an Adverse Action is taken by the Home State against   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.          E.  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.   ARTICLE 8- ACTIVE DUTY MILITARY AND THEIR SPOUSES   Active Duty Military personnel, or their spouses, shall designate a   Home State where the individual has a current license in good   standing. The individual may retain their Home State designation   during any period of service when that individual is on active duty   assignment.   ARTICLE 9- ESTABLISHMENT 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   Compact Commission. The Commission is an instrumentality of the   Compact States acting jointly and not an instrumentality of any one   state.          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   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   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 before the Commission requiring a vote by Commission   delegates.                7.  A delegate shall vote in person or by such other   means as provided in the bylaws. The bylaws may provide for   delegates to meet by telecommunication, videoconference, or other   means of communication.                8.  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.  Establish and amend 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 Board  to sue or be sued under applicable law shall   not be affected;                7.  Purchase and maintain insurance and bonds;                8.  Borrow, accept, or contract for services of   personnel, including, but not limited to, employees of a Member   State;                9.  Conduct an annual financial review                10.  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;                11.  Assess and collect fees;                12.  Accept any and all appropriate gifts, donations,   grants of money, other sources of revenue, equipment, supplies,   materials, and services, and to receive, utilize, and dispose of   the same; provided that at all times the Commission shall avoid any   appearance of impropriety or conflict of interest;                13.  Lease, purchase, retain, own, hold, improve, or   use any property, real, personal, or mixed, or any undivided   interest therein;                14.  Sell, convey, mortgage, pledge, lease, exchange,   abandon, or otherwise dispose of any property real, personal, or   mixed;                15.  Establish a budget and make expenditures;                16.  Borrow money;                17.  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;                18.  Provide and receive information from, and   cooperate with, law enforcement agencies;                19.  Establish and elect an Executive Committee,   including a chair and a vice chair;                20.  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                21.  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.  Oversee the day-to-day activities of the   administration of the compact including enforcement and compliance   with the provisions of the compact, its Rules and bylaws, and other   such duties as deemed necessary;                      b.  Recommend 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.  Ensure Compact administration services are   appropriately provided, including by contract;                      d.  Prepare and recommend the budget;                      e.  Maintain financial records on behalf of the   Commission;                      f.  Monitor Compact compliance of Member States   and provide compliance reports to the Commission;                      g.  Establish additional committees as necessary;                      h.  Exercise 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 seven   members:                      a.  The chair and vice chair of the Commission   shall be voting members of the Executive Committee; and                      b.  The Commission shall elect seven 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 section.                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.  Executive Committee meetings shall be open to   the public, except that the Executive Committee may meet in a   closed, non-public meeting as provided in subsection E.2 below.                      b.  The Executive Committee shall give ten days'   notice of its meetings, posted on its website and as determined to   provide notice to persons with an interest in the business of the   Commission.                      c.  The Executive Committee may hold a special   meeting in accordance with subsection E.1.b. below.          E.  The Commission shall adopt and provide to the Member   States an annual report.          F.  Meetings of the Commission                1.  All meetings shall be open to the public, except   that the Commission may meet in a closed, non-public meeting as   provided in subsection F.2 below.                      a.  Public notice for all meetings of the full   Commission of meetings shall begiven in the same manner as required   under the Rulemaking provisions in Section 11, except that the   Commission may hold a special meeting as provided in subsection   F.1.b below.                      b.  The Commission may hold a special meeting when   it must meet to conduct emergency business by giving [24, 48,or   other] hours' notice to all commissioners, on the Commission's   website, and other means as provided in the Commission's rules. The   Commission's legal counsel shall certify that the Commission's need   to meet qualifies as an emergency.                2.  The Commission or the Executive Committee or other   committees of the Commission may convene in a closed, non-public   meeting for the Commission or Executive Committee or other   committees of the Commission to receive legal advice or 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;                      c.  Current or threatened discipline of a Licensee   or by the Commission or by a Member State's Licensing Board;                      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 issuespursuant to the Compact;                      k.  Matters specifically exempted from disclosure   by federal or Member State law; or                      l.  Other matters as promulgated by the Commission   by Rule.                3.  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.                4.  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   revenue sources as provided in C(12).                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 of the 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. However, all receipts and   disbursements of funds handled by the Commission shall be subject   to an annual financial review bya 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 liabilityarising 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 containing licensure, Adverse Action, and the   presence of Current Significant Investigative Information on all   licensed individuals in Member States.          B.  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 or Privilege to   Practice [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 not made confidential under Member State law;                5.  Any denial of application for licensure, and the   reason(s) for such denial;                6.  The presence of Current Significant Investigative   Information; and                7.  Other information that may facilitate the   administration of this Compact or the protection of the public, as   determined by the Rules of the Commission.          C.  The information contained in the data system shall be   considered authentic and not hearsay in any civil action involving   the Commission when accompanied by a certification by the   Commission's data system manager concerning the authenticity of the   data.          D.  Current Significant Investigative Information and   Investigative Information pertaining to a Licensee in any Member   State will only be available to other Member States.          E.  It is the responsibility of the Member States to report   any Adverse Action against a Licensee.  Adverse Action information   pertaining to a Licensee in any Member State will be available to   any other Member State.          F.  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.          G.  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. In addition to any other   applicable standard of review, in the event a court of competent   jurisdiction holds that the Commission exercised its Rulemaking   authority in a manner that is beyond the scope of the purposes of   the Compact, or the powers granted hereunder, then such an action by   the Commission shall be invalid and have no force or effect.          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 State Practice Laws of a Member State   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 Section and the Rules   adopted thereunder. Rules and amendments shall become binding as of   the date specified in each Rule or amendment.          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.          E.  Rules or amendments to the 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 give oral testimony   and submit written 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 testimony 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.  Prior to adoption of a proposed Rule, the Commission   shall allow persons to submit written data, facts, opinions, and   arguments, which shall be made available to the public.          J.  The Commission shall grant an opportunity for a public   hearing before it adopts a Rule or amendment if a hearing is   requested by:                1.  At least twenty-five (25) persons;                2.  A State or federal governmental subdivision or   agency; or                3.  An association or organization having at least   twenty-five (25) members.          K.  If a hearing is held on the proposed Rule or amendment,   the Commission shall publish the place, time, and date of the   scheduled public hearing. If the hearing is held via electronic   means, the Commission shall publish the mechanism for access to the   electronic hearing.                1.  All persons wishing to be heard at the hearing shall   notify the executive director of the Commission or other designated   member in writing of their desire to appear and testify at the   hearing not less than five (5) business days before the scheduled   date of the hearing.                2.  Hearings shall be conducted in a manner providing   each person who wishes to comment a fair and reasonable opportunity   to commend orally or in writing.                3.  All hearings will be recorded. A copy of the   recording will be made available on request.                4.  Nothing in this section 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   section.          L.  Following the scheduled hearing date, or by the close of   business on the scheduled hearing date if the hearing was not held,   the Commission shall consider all written and oral comments   received.          M.  If no written notice of intent to attend the public   hearing by interested parties is received, the Commission may   proceed with promulgation of the proposed Rule without a public   hearing.          N.  The Commission shall, by majority vote of all members,   take final action on the proposed Rule and shall determine the   effective date of the Rule, if any, based on the Rulemaking record   and the full text of the Rule.          O.  Upon determination that an emergency exists, the   Commission may consider and adopt an emergency Rule without prior   notice, opportunity for comment, or hearing, 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 in order   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 an   administrative Rule that is established by federal law or Rule; or                4.  Protect public health and safety.          P.  The Commission or authorized committee of the Commission   may direct revisions to a previously adopted Rule or amendment fir   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 chair of   the Commission prior to the end of the notice period. If not   challenge is made, the revision will take effect without further   action. If the revision is challenged, the revision may not take   effect with the approval of the Commission.   ARTICLE 12- OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT          A.  Oversight                1.  The executive, legislative, and judicial branches   of State government in each Member State shall enforce this Compact   and take all actions necessary and appropriate to effectuate the   Compact's purposes and intent. The provisions of this Compact and   the Rules promulgated hereunder shall have standing as statutory   law.                2.  All courts shall take judicial notice of the   Compact and the Rules in any judicial or administrative proceeding   in a Member State pertaining to the subject matter of this Compact   which may affect the powers, responsibilities, or actions of the   Commission.                3. The Commission shall be entitled to receive service   of process in any such proceeding, and shall have standing to   intervene in such a proceeding for all purposes. Failure to provide   service of process to the Commission 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:                      a.  Provide written notice to the defaulting State   and other Member States of the nature of the default, the proposed   means or curing the default and any other action to be taken by the   Commission; and                      b.  Provide remedial training and specific   technical assistance regarding the default.                2.  If a State in default fails to cure the default, the   defaulting State may be terminated from this Compact upon an   affirmative vote of a majority of the Member States, and all rights,   privileges and benefits conferred 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.                3.  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, and each of the   Member States.                4.  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.                5.  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.                6.  The defaulting State may appeal the action of the   Commission by petitioning the U.S. District Court for the District   of Columbia or the federal district where the Commission has its   principal offices. The prevailing member shall be awarded all costs   of such litigation, including 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 and Rules of this Compact.                2.  By majority vote, the Commission may initiate legal   action in the United States District Court for the District of   Columbia or the federal district where the Commission has its   principal offices against a Member State in default to enforce   compliance with the provisions of the Compact and its promulgated   Rules and bylaws. The relief sought may include both injunctive   relief and damages. In the event judicial enforcement is necessary,   the prevailing member shall be awarded costs of such litigation,   including attorney's fees.                3.  The remedies herein shall not be the exclusive   remedies of the Commission. The Commission may pursue any other   remedies available under federal or State law.   ARTICLE 13- DATE OF IMPLEMENTATION OF THE COSMETOLOGY LICENSURE   COMPACT COMMISSION AND ASSOCIATED RULES, WITHDRAWAL, AND AMENDMENT          A.  The Compact shall come into effect on the date on which   the Compact statute is enacted into law in the tenth Member State.   The provisions, which become effective at that time, shall be   limited to the powers granted to the Commission relating to   assembly and the promulgation or Rules. Thereafter, the Commission   shall meet and exercise Rulemaking powers necessary to the   implementation and administration of this Compact.          B.  Any State that joins the Compact subsequent to the   Commission's initial adoption of the Rules shall be subject to the   Rules 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.          C.  Any Member State may withdraw from this Compact by   enacting a statute repealing the same.                1.  A Member State's withdrawal shall not take effect   until six (6) months after the enactment of the repealing statute.                2.  Withdrawal shall not affect the continuing   requirement of the withdrawing State's Licensing Authority to   comply with the investigative and Adverse Action reporting   requirements of this Compact prior to the effective date of   withdrawal.          D.  Nothing contained in this Compact shall be construed to   invalidate or prevent any Cosmetology licensure agreement or other   cooperative agreement between a Member State and a non-member State   that does not conflict with the provisions of this Compact.          E.  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   This Compact shall be liberally construed so as to effectuate the   purposes thereof. The provisions of this Compact shall be severable   and if any phrase, clause, sentence, or provision of this Compact is   declared to be contrary to the constitution of any Member State or   of the United States or the applicability thereof to any   government, agency, person, or circumstance is held invalid, the   validity of the remainder of this Compact and the applicability   thereof to any government, agency, person, or circumstance shall   not be affected thereby. If this Compact shall be held 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- BINDING EFFECT OF COMPACT AND OTHER LAWS          A.  A Licensee providing Cosmetology Services in a Remote   State under a Multistate License shall function within the laws and   regulations of the Remote State.          B.  Nothing herein prevents the enforcement of any other law   of a Member State that is not inconsistent with this Compact.          C.  Any laws in a Member State in conflict with this Compact   are superseded to the extent of the conflict.          D.  Any lawful actions by the Commission, including all Rules   and bylaws promulgated by the Commission, are binding upon the   Member States.          E.  All agreements between the Commission and the Member   States are binding in accordance with their terms.          F.  In the event any provision of the Compact exceeds the   constitutional limits imposed on the legislature of any Member   State, the provision shall be ineffective to the extent of the   conflict with the constitutional provision in question in that   Member State.     * * * * *