By: Zaffirini S.B. No. 9               A BILL TO BE ENTITLED   AN ACT   relating to the Cosmetology Licensure Compact; authorizing fees.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Title 9, Occupations Code, is amended by adding   Chapter 1604 to read as follows:   CHAPTER 1604. COSMETOLOGY LICENSURE COMPACT          Sec. 1604.001.  COSMETOLOGY LICENSURE COMPACT. The   Cosmetology Licensure Compact is enacted and entered into with all   other jurisdictions that legally join the compact, which reads as   follows:   COSMETOLOGY LICENSURE COMPACT   ARTICLE 1- PURPOSE   The purpose of this Compact is to facilitate the interstate   practice and regulation of Cosmetology with the goal of improving   public access to, and the safety of, Cosmetology Services and   reducing unnecessary burdens related to Cosmetology licensure.   Through this Compact, the Member States seek to establish a   regulatory framework which provides for a new multistate licensing   program. Through this new licensing program, the Member States   seek to provide increased value and mobility to licensed   Cosmetologists in the Member States, while ensuring the provision   of safe, effective, and reliable services to the public.   This Compact is designed to achieve the following objectives, and   the Member States hereby ratify the same intentions by subscribing   hereto:          A. Provide opportunities for interstate practice by   Cosmetologists who meet uniform requirements for multistate   licensure;          B. Enhance the abilities of Member States to protect public   health and safety, and prevent fraud and unlicensed activity   within the profession;          C. Ensure and encourage cooperation between Member States in   the licensure and regulation of the Practice of Cosmetology;          D. Support relocating military members and their spouses;          E. Facilitate the exchange of information between Member   States related to the licensure, investigation, and   discipline of the Practice of Cosmetology;          F. Provide for the licensure and mobility of the workforce in   the profession, while addressing the shortage of workers and   lessening the associated burdens on the Member States.   ARTICLE 2- DEFINITIONS   As used in this Compact, and except as otherwise provided, the   following definitions shall govern the terms herein:          A. "Active Military Member" means any person with full-time   duty status in the armed forces of the United States,   including members of the National Guard and Reserve.          B. "Adverse Action" means any administrative, civil,   equitable, or criminal action permitted by a Member State's   laws which is imposed by a State Licensing Authority or other   regulatory body against a Cosmetologist, including actions   against an individual's license or Authorization to Practice   such as revocation, suspension, probation, monitoring of the   Licensee, limitation of the Licensee's practice, or any other   Encumbrance on a license affecting an individual's ability to   participate in the Cosmetology industry, including the   issuance of a cease and desist order.          C. "Authorization to Practice" means a legal authorization   associated with a Multistate License permitting the Practice   of Cosmetology in that Remote State, which shall be subject   to the enforcement jurisdiction of the State Licensing   Authority in that Remote State.          D. "Alternative Program" means a non-disciplinary monitoring   or prosecutorial diversion program approved by a Member   State's State Licensing Authority.          E. "Background Check" means the submission of information   for an applicant for the purpose of obtaining that   applicant's criminal history record information, as further   defined in 28 C.F.R. § 20.3(d), from the Federal Bureau of   Investigation and the agency responsible for retaining State   criminal or disciplinary history in the applicant's Home   State.          F. "Charter Member State" means Member States who have   enacted legislation to adopt this Compact where such   legislation predates the effective date of this Compact as   defined in Article 13.          G. "Commission" means the government agency whose membership   consists of all States that have enacted this Compact, which   is known as the Cosmetology Licensure Compact Commission, as   defined in Article 9, and which shall operate as an   instrumentality of the Member States.          H. "Cosmetologist" means an individual licensed in their   Home State to practice Cosmetology.          I. "Cosmetology", "Cosmetology Services", and the "Practice   of Cosmetology" mean the care and services provided by a   Cosmetologist as set forth in the Member State's statutes and   regulations in the State where the services are being   provided.          J. "Current Significant Investigative Information" means:                            1. Investigative Information that a State   Licensing Authority, after an inquiry or investigation   that complies with a Member State's due process   requirements, has reason to believe is not groundless   and, if proved true, would indicate a violation of that   State's laws regarding fraud or the Practice of   Cosmetology; or                            2. Investigative Information that indicates   that a Licensee has engaged in fraud or represents an   immediate threat to public health and safety,   regardless of whether the Licensee has been notified   and had an opportunity to respond.          K. "Data System" means a repository of information about   Licensees, including, but not limited to, license status,   Investigative Information, and Adverse Actions.          L. "Disqualifying Event" means any event which shall   disqualify an individual from holding a Multistate License   under this Compact, which the Commission may by Rule or order   specify.          M. "Encumbered License" means a license in which an Adverse   Action restricts the Practice of Cosmetology by a Licensee,   or where said Adverse Action has been reported to the   Commission.          N. "Encumbrance" means a revocation or suspension of, or any   limitation on, the full and unrestricted Practice of   Cosmetology by a State Licensing Authority.          O. "Executive Committee" means a group of delegates elected   or appointed to act on behalf of, and within the powers   granted to them by, the Commission.          P. "Home State" means the Member State which is a Licensee's   primary State of residence, and where that Licensee holds an   active and unencumbered license to practice Cosmetology.          Q. "Investigative Information" means information, records,   or documents received or generated by a State Licensing   Authority pursuant to an investigation or other inquiry.          R. "Jurisprudence Requirement" means the assessment of an   individual's knowledge of the laws and rules governing the   Practice of Cosmetology in a State.          S. "Licensee" means an individual who currently holds a   license from a Member State to practice as a Cosmetologist.          T. "Member State" means any State that has adopted this   Compact.          U. "Multistate License" means a license issued by and subject   to the enforcement jurisdiction of the State Licensing   Authority in a Licensee's Home State, which authorizes the   Practice of Cosmetology in Member States and includes   Authorizations to Practice Cosmetology in all Remote States   pursuant to this Compact.          V. "Remote State" means any Member State, other than the   Licensee's Home State.          W. "Rule" means any rule or regulation promulgated by the   Commission under this Compact which has the force of law.          X. "Single-State License" means a Cosmetology license issued   by a Member State that authorizes practice of Cosmetology   only within the issuing State and does not include any   authorization outside of the issuing State.          Y. "State" means a State, territory, or possession of the   United States and the District of Columbia.          Z. "State Licensing Authority" means a Member State's   regulatory body responsible for issuing Cosmetology licenses   or otherwise overseeing the Practice of Cosmetology in that   State.   ARTICLE 3- MEMBER STATE REQUIREMENTS          A. To be eligible to join this Compact, and to maintain   eligibility as a Member State, a State must:                            1. License and regulate Cosmetology;                            2. Have a mechanism or entity in place to   receive and investigate complaints about Licensees   practicing in that State;                            3. Require that Licensees within the State   pass a Cosmetology competency examination prior to   being licensed to provide Cosmetology Services to the   public in that State;                            4. Require that Licensees satisfy   educational or training requirements in Cosmetology   prior to being licensed to provide Cosmetology Services   to the public in that State;                            5. Implement procedures for considering one   or more of the following categories of information from   applicants for licensure: criminal history;   disciplinary history; or Background Check. Such   procedures may include the submission of information by   applicants for the purpose of obtaining an applicant's   Background Check as defined herein;                            6. Participate in the Data System, including   through the use of unique identifying numbers;                            7. Share information related to Adverse   Actions with the Commission and other Member States,   both through the Data System and otherwise;                            8. Notify the Commission and other Member   States, in compliance with the terms of the Compact and   Rules of the Commission, of the existence of   Investigative Information or Current Significant   Investigative Information in the State's possession   regarding a Licensee practicing in that State;                            9. Comply with such Rules as may be enacted   by the Commission to administer the Compact; and                            10. Accept Licensees from other Member   States as established herein.          B. Member States may charge a fee for granting a license to   practice Cosmetology.          C. Individuals not residing in a Member State shall continue   to be able to apply for a Member State's Single-State License   as provided under the laws of each Member State. However, the   Single-State License granted to these individuals shall not   be recognized as granting a Multistate License to provide   services in any other Member State.          D. Nothing in this Compact shall affect the requirements   established by a Member State for the issuance of a   Single-State License.          E. A Multistate License issued to a Licensee by a Home State   to a resident of that State shall be recognized by each Member   State as authorizing a Licensee to practice Cosmetology in   each Member State.          F. At no point shall the Commission have the power to define   the educational or professional requirements for a license to   practice Cosmetology. The Member States shall retain sole   jurisdiction over the provision of these requirements.   ARTICLE 4- MULTISTATE LICENSE          A. To be eligible to apply to their Home State's State   Licensing Authority for an initial Multistate License under   this Compact, a Licensee must hold an active and unencumbered   Single-State License to practice Cosmetology in their Home   State.          B. Upon the receipt of an application for a Multistate   License, according to the Rules of the Commission, a Member   State's State Licensing Authority shall ascertain whether   the applicant meets the requirements for a Multistate License   under this Compact.          C. If an applicant meets the requirements for a Multistate   License under this Compact and any applicable Rules of the   Commission, the State Licensing Authority in receipt of the   application shall, within a reasonable time, grant a   Multistate License to that applicant, and inform all Member   States of the grant of said Multistate License.          D. A Multistate License to practice Cosmetology issued by a   Member State's State Licensing Authority shall be recognized   by each Member State as authorizing the practice thereof as   though that Licensee held a Single-State License to do so in   each Member State, subject to the restrictions herein.          E. A Multistate License granted pursuant to this Compact may   be effective for a definite period of time, concurrent with   the licensure renewal period in the Home State.          F. To maintain a Multistate License under this Compact, a   Licensee must:                            1. Agree to abide by the rules of the State   Licensing Authority, and the State scope of practice   laws governing the Practice of Cosmetology, of any   Member State in which the Licensee provides services;                            2. Pay all required fees related to the   application and process, and any other fees which the   Commission may by Rule require; and                            3. Comply with any and all other   requirements regarding Multistate Licenses which the   Commission may by Rule provide.          G. A Licensee practicing in a Member State is subject to all   scope of practice laws governing Cosmetology Services in that   State.          H. The Practice of Cosmetology under a Multistate License   granted pursuant to this Compact will subject the Licensee to   the jurisdiction of the State Licensing Authority, the   courts, and the laws of the Member State in which the   Cosmetology Services are provided.   ARTICLE 5- REISSUANCE OF A MULTISTATE LICENSE BY A NEW HOME STATE          A. A Licensee may hold a Multistate License, issued by their   Home State, in only one Member State at any given time.          B. If a Licensee changes their Home State by moving between   two Member States:                            1. The Licensee shall immediately apply for   the reissuance of their Multistate License in their new   Home State. The Licensee shall pay all applicable fees   and notify the prior Home State in accordance with the   Rules of the Commission.                            2. Upon receipt of an application to reissue   a Multistate License, the new Home State shall verify   that the Multistate License is active, unencumbered and   eligible for reissuance under the terms of the Compact   and the Rules of the Commission. The Multistate License   issued by the prior Home State will be deactivated and   all Member States notified in accordance with the   applicable Rules adopted by the Commission.                            3. If required for initial licensure, the   new Home State may require a Background Check as   specified in the laws of that State, or the compliance   with any Jurisprudence Requirements of the new Home   State.                            4. Notwithstanding any other provision of   this Compact, if a Licensee does not meet the   requirements set forth in this Compact for the   reissuance of a Multistate License by the new Home   State, then the Licensee shall be subject to the new   Home State requirements for the issuance of a   Single-State License in that State.          C. If a Licensee changes their primary state of residence by   moving from a Member State to a non-Member State, or from a   non-Member State to a Member State, then the Licensee shall   be subject to the State requirements for the issuance of a   Single-State License in the new Home State.          D. Nothing in this Compact shall interfere with a Licensee's   ability to hold a Single-State License in multiple States;   however, for the purposes of this Compact, a Licensee shall   have only one Home State, and only one Multistate License.          E. Nothing in this Compact shall interfere with the   requirements established by a Member State for the issuance   of a Single-State License.   ARTICLE 6- AUTHORITY OF THE COMPACT COMMISSION AND MEMBER STATE   LICENSING AUTHORITIES          A. Nothing in this Compact, nor any Rule or regulation of the   Commission, shall be construed to limit, restrict, or in any   way reduce the ability of a Member State to enact and enforce   laws, regulations, or other rules related to the Practice of   Cosmetology in that State, where those laws, regulations, or   other rules are not inconsistent with the provisions of this   Compact.          B. Insofar as practical, a Member State's State Licensing   Authority shall cooperate with the Commission and with each   entity exercising independent regulatory authority over the   Practice of Cosmetology according to the provisions of this   Compact.          C. Discipline shall be the sole responsibility of the State   in which Cosmetology Services are provided. Accordingly,   each Member State's State Licensing Authority shall be   responsible for receiving complaints about individuals   practicing Cosmetology in that State, and for communicating   all relevant Investigative Information about any such   Adverse Action to the other Member States through the Data   System in addition to any other methods the Commission may by   Rule require.   ARTICLE 7- ADVERSE ACTIONS          A. A Licensee's Home State shall have exclusive power to   impose an Adverse Action against a Licensee's Multistate   License issued by the Home State.          B. A Home State may take Adverse Action on a Multistate   License based on the Investigative Information, Current   Significant Investigative Information, or Adverse Action of   a Remote State.          C. In addition to the powers conferred by State law, each   Remote State's State Licensing Authority shall have the power   to:                            1. Take Adverse Action against a Licensee's   Authorization to Practice Cosmetology through the   Multistate License in that Member State, provided that:                                        a. Only the Licensee's Home State   shall have the power to take Adverse Action   against the Multistate License issued by the Home   State; and                                        b. For the purposes of taking   Adverse Action, the Home State's State Licensing   Authority shall give the same priority and effect   to reported conduct received from a Remote State   as it would if such conduct had occurred within   the Home State. In so doing, the Home State shall   apply its own State laws to determine the   appropriate action.                            2. Issue cease and desist orders or impose an   Encumbrance on a Licensee's Authorization to Practice   within that Member State.                            3. Complete any pending investigations of a   Licensee who changes their primary state of residence   during the course of such an investigation. The State   Licensing Authority shall also be empowered to report   the results of such an investigation to the Commission   through the Data System as described herein.                            4. Issue subpoenas for both hearings and   investigations that require the attendance and   testimony of witnesses, as well as the production of   evidence. Subpoenas issued by a State Licensing   Authority in a Member State for the attendance and   testimony of witnesses or the production of evidence   from another Member State shall be enforced in the   latter State by any court of competent jurisdiction,   according to the practice and procedure of that court   applicable to subpoenas issued in proceedings before   it. The issuing State Licensing Authority shall pay any   witness fees, travel expenses, mileage, and other fees   required by the service statutes of the State in which   the witnesses or evidence are located.                            5. If otherwise permitted by State law,   recover from the affected Licensee the costs of   investigations and disposition of cases resulting from   any Adverse Action taken against that Licensee.                            6. Take Adverse Action against the   Licensee's Authorization to Practice in that State   based on the factual findings of another Remote State.          D. A Licensee's Home State shall complete any pending   investigation(s) of a Cosmetologist who changes their   primary state of residence during the course of the   investigation(s). The Home State shall also have the   authority to take appropriate action(s) and shall promptly   report the conclusions of the investigations to the Data   System.          E. If an Adverse Action is taken by the Home State against a   Licensee's Multistate License, the Licensee's Authorization   to Practice in all other Member States shall be deactivated   until all Encumbrances have been removed from the Home State   license. All Home State disciplinary orders that impose an   Adverse Action against a Licensee's Multistate License shall   include a statement that the Cosmetologist's Authorization   to Practice is deactivated in all Member States during the   pendency of the order.          F. Nothing in this Compact shall override a Member State's   authority to accept a Licensee's participation in an   Alternative Program in lieu of Adverse Action. A Licensee's   Multistate License shall be suspended for the duration of the   Licensee's participation in any Alternative Program.          G. Joint Investigations                            1. In addition to the authority granted to a   Member State by its respective scope of practice laws or   other applicable State law, a Member State may   participate with other Member States in joint   investigations of Licensees.                            2. Member States shall share any   investigative, litigation, or compliance materials in   furtherance of any joint or individual investigation   initiated under the Compact.   ARTICLE 8- ACTIVE MILITARY MEMBERS AND THEIR SPOUSES   Active Military Members, or their spouses, shall designate a Home   State where the individual has a current license to practice   Cosmetology in good standing. The individual may retain their Home   State designation during any period of service when that individual   or their spouse is on active duty assignment.   ARTICLE 9- ESTABLISHMENT AND OPERATION OF THE COSMETOLOGY LICENSURE   COMPACT COMMISSION          A. The Compact Member States hereby create and establish a   joint government agency whose membership consists of all   Member States that have enacted the Compact known as the   Cosmetology Licensure Compact Commission. The Commission is   an instrumentality of the Compact Member States acting   jointly and not an instrumentality of any one State. The   Commission shall come into existence on or after the   effective date of the Compact as set forth in Article 13.          B. Membership, Voting, and Meetings                            1. Each Member State shall have and be   limited to one (1) delegate selected by that Member   State's State Licensing Authority.                            2. The delegate shall be an administrator of   the State Licensing Authority of the Member State or   their designee.                            3. The Commission shall by Rule or bylaw   establish a term of office for delegates and may by Rule   or bylaw establish term limits.                            4. The Commission may recommend removal or   suspension of any delegate from office.                            5. A Member State's State Licensing   Authority shall fill any vacancy of its delegate   occurring on the Commission within 60 days of the   vacancy.                            6. Each delegate shall be entitled to one   vote on all matters that are voted on by the Commission.                            7. The Commission shall meet at least once   during each calendar year. Additional meetings may be   held as set forth in the bylaws. The Commission may meet   by telecommunication, video conference or other similar   electronic means.   C. The Commission shall have the following powers:                            1. Establish the fiscal year of the   Commission;                            2. Establish code of conduct and conflict of   interest policies;                            3. Adopt Rules and bylaws;                            4. Maintain its financial records in   accordance with the bylaws;                            5. Meet and take such actions as are   consistent with the provisions of this Compact, the   Commission's Rules, and the bylaws;                            6. Initiate and conclude legal proceedings   or actions in the name of the Commission, provided that   the standing of any State Licensing Authority to sue or   be sued under applicable law shall not be affected;                            7. Maintain and certify records and   information provided to a Member State as the   authenticated business records of the Commission, and   designate an agent to do so on the Commission's behalf;                            8. Purchase and maintain insurance and   bonds;                            9. Borrow, accept, or contract for services   of personnel, including, but not limited to, employees   of a Member State;                            10. Conduct an annual financial review;                            11. Hire employees, elect or appoint   officers, fix compensation, define duties, grant such   individuals appropriate authority to carry out the   purposes of the Compact, and establish the Commission's   personnel policies and programs relating to conflicts   of interest, qualifications of personnel, and other   related personnel matters;                            12. As set forth in the Commission Rules,   charge a fee to a Licensee for the grant of a Multistate   License and thereafter, as may be established by   Commission Rule, charge the Licensee a Multistate   License renewal fee for each renewal period. Nothing   herein shall be construed to prevent a Home State from   charging a Licensee a fee for a Multistate License or   renewals of a Multistate License, or a fee for the   jurisprudence requirement if the Member State imposes   such a requirement for the grant of a Multistate   License;                            13. Assess and collect fees;                            14. Accept any and all appropriate gifts,   donations, grants of money, other sources of revenue,   equipment, supplies, materials, and services, and   receive, utilize, and dispose of the same; provided   that at all times the Commission shall avoid any   appearance of impropriety or conflict of interest;                            15. Lease, purchase, retain, own, hold,   improve, or use any property, real, personal, or mixed,   or any undivided interest therein;                            16. Sell, convey, mortgage, pledge, lease,   exchange, abandon, or otherwise dispose of any property   real, personal, or mixed;                            17. Establish a budget and make   expenditures;                            18. Borrow money;                            19. Appoint committees, including standing   committees, composed of members, State regulators,   State legislators or their representatives, and   consumer representatives, and such other interested   persons as may be designated in this Compact and the   bylaws;                            20. Provide and receive information from,   and cooperate with, law enforcement agencies;                            21. Elect a Chair, Vice Chair, Secretary and   Treasurer and such other officers of the Commission as   provided in the Commission's bylaws;                            22. Establish and elect an Executive   Committee, including a chair and a vice chair;                            23. Adopt and provide to the Member States an   annual report.                            24. Determine whether a State's adopted   language is materially different from the model Compact   language such that the State would not qualify for   participation in the Compact; and                            25. Perform such other functions as may be   necessary or appropriate to achieve the purposes of   this Compact.   D. The Executive Committee                            1. The Executive Committee shall have the   power to act on behalf of the Commission according to   the terms of this Compact. The powers, duties, and   responsibilities of the Executive Committee shall   include:                                        a. Overseeing the day-to-day   activities of the administration of the Compact   including compliance with the provisions of the   Compact, the Commission's Rules and bylaws, and   other such duties as deemed necessary;                                        b. Recommending to the Commission   changes to the Rules or bylaws, changes to this   Compact legislation, fees charged to Compact   Member States, fees charged to Licensees, and   other fees;                                        c. Ensuring Compact   administration services are appropriately   provided, including by contract;                                        d. Preparing and recommending the   budget;                                        e. Maintaining financial records   on behalf of the Commission;                                        f. Monitoring Compact compliance   of Member States and providing compliance reports   to the Commission;                                        g. Establishing additional   committees as necessary;                                        h. Exercising the powers and   duties of the Commission during the interim   between Commission meetings, except for adopting   or amending Rules, adopting or amending bylaws,   and exercising any other powers and duties   expressly reserved to the Commission by Rule or   bylaw; and                                        i. Other duties as provided in the   Rules or bylaws of the Commission.                            2. The Executive Committee shall be composed   of up to seven voting members:                                        a. The chair and vice chair of the   Commission and any other members of the Commission   who serve on the Executive Committee shall be   voting members of the Executive Committee; and                                        b. Other than the chair,   vice-chair, secretary and treasurer, the   Commission shall elect three voting members from   the current membership of the Commission.                                        c. The Commission may elect   ex-officio, nonvoting members from a recognized   national Cosmetology professional association as   approved by the Commission. The Commission's   bylaws shall identify qualifying organizations   and the manner of appointment if the number of   organizations seeking to appoint an ex officio   member exceeds the number of members specified in   this Article.                            3. The Commission may remove any member of   the Executive Committee as provided in the Commission's   bylaws.                            4. The Executive Committee shall meet at   least annually.                                        a. Annual Executive Committee   meetings, as well as any Executive Committee   meeting at which it does not take or intend to take   formal action on a matter for which a Commission   vote would otherwise be required, shall be open to   the public, except that the Executive Committee   may meet in a closed, non-public session of a   public meeting when dealing with any of the   matters covered under Article 9.F.4.                                        b. The Executive Committee shall   give five business days advance notice of its   public meetings, posted on its website and as   determined to provide notice to persons with an   interest in the public matters the Executive   Committee intends to address at those meetings.                            5. The Executive Committee may hold an   emergency meeting when acting for the Commission to:                                        a. Meet an imminent threat to   public health, safety, or welfare;                                        b. Prevent a loss of Commission or   Member State funds; or                                        c. Protect public health and   safety.          E. The Commission shall adopt and provide to the Member   States an annual report.   F. Meetings of the Commission                            1. All meetings of the Commission that are   not closed pursuant to Article 9.F.4 shall be open to   the public. Notice of public meetings shall be posted on   the Commission's website at least thirty (30) days prior   to the public meeting.                            2. Notwithstanding Article 9.F.1, the   Commission may convene an emergency public meeting by   providing at least twenty-four (24) hours prior notice   on the Commission's website, and any other means as   provided in the Commission's Rules, for any of the   reasons it may dispense with notice of proposed   rulemaking under Article 11.L. The Commission's legal   counsel shall certify that one of the reasons   justifying an emergency public meeting has been met.                            3. Notice of all Commission meetings shall   provide the time, date, and location of the meeting, and   if the meeting is to be held or accessible via   telecommunication, video conference, or other   electronic means, the notice shall include the   mechanism for access to the meeting.                            4. The Commission may convene in a closed,   non-public meeting for the Commission to discuss:                                        a. Non-compliance of a Member   State with its obligations under the Compact;                                        b. The employment, compensation,   discipline or other matters, practices or   procedures related to specific employees or other   matters related to the Commission's internal   personnel practices and procedures;                                        c. Current or threatened   discipline of a Licensee by the Commission or by a   Member State's Licensing Authority;                                        d. Current, threatened, or   reasonably anticipated litigation;                                        e. Negotiation of contracts for   the purchase, lease, or sale of goods, services,   or real estate;                                        f. Accusing any person of a crime   or formally censuring any person;                                        g. Trade secrets or commercial or   financial information that is privileged or   confidential;                                        h. Information of a personal   nature where disclosure would constitute a   clearly unwarranted invasion of personal privacy;                                        i. Investigative records compiled   for law enforcement purposes;                                        j. Information related to any   investigative reports prepared by or on behalf of   or for use of the Commission or other committee   charged with responsibility of investigation or   determination of compliance issues pursuant to   the Compact;                                        k. Legal advice;                                        l. Matters specifically exempted   from disclosure to the public by federal or Member   State law; or                                        m. Other matters as promulgated   by the Commission by Rule.                            5. If a meeting, or portion of a meeting, is   closed, the presiding officer shall state that the   meeting will be closed and reference each relevant   exempting provision, and such reference shall be   recorded in the minutes.                            6. The Commission shall keep minutes that   fully and clearly describe all matters discussed in a   meeting and shall provide a full and accurate summary of   actions taken, and the reasons therefore, including a   description of the views expressed. All documents   considered in connection with an action shall be   identified in such minutes. All minutes and documents   of a closed meeting shall remain under seal, subject to   release only by a majority vote of the Commission or   order of a court of competent jurisdiction.   G. Financing of the Commission                            1. The Commission shall pay, or provide for   the payment of, the reasonable expenses of its   establishment, organization, and ongoing activities.                            2. The Commission may accept any and all   appropriate sources of revenue, donations, and grants   of money, equipment, supplies, materials, and services.                            3. The Commission may levy on and collect an   annual assessment from each Member State and impose   fees on Licensees of Member States to whom it grants a   Multistate License to cover the cost of the operations   and activities of the Commission and its staff, which   must be in a total amount sufficient to cover its annual   budget as approved each year for which revenue is not   provided by other sources. The aggregate annual   assessment amount for Member States shall be allocated   based upon a formula that the Commission shall   promulgate by Rule.                            4. The Commission shall not incur   obligations of any kind prior to securing the funds   adequate to meet the same; nor shall the Commission   pledge the credit of any Member States, except by and   with the authority of the Member State.                            5. The Commission shall keep accurate   accounts of all receipts and disbursements. The   receipts and disbursements of the Commission shall be   subject to the financial review and accounting   procedures established under its bylaws. All receipts   and disbursements of funds handled by the Commission   shall be subject to an annual financial review by a   certified or licensed public accountant, and the report   of the financial review shall be included in and become   part of the annual report of the Commission.   H. Qualified Immunity, Defense, and Indemnification                            1. The members, officers, executive   director, employees and representatives of the   Commission shall be immune from suit and liability,   both personally and in their official capacity, for any   claim for damage to or loss of property or personal   injury or other civil liability caused by or arising out   of any actual or alleged act, error, or omission that   occurred, or that the person against whom the claim is   made had a reasonable basis for believing occurred   within the scope of Commission employment, duties or   responsibilities; provided that nothing in this   paragraph shall be construed to protect any such person   from suit or liability for any damage, loss, injury, or   liability caused by the intentional or willful or   wanton misconduct of that person. The procurement of   insurance of any type by the Commission shall not in any   way compromise or limit the immunity granted hereunder.                            2. The Commission shall defend any member,   officer, executive director, employee, and   representative of the Commission in any civil action   seeking to impose liability arising out of any actual or   alleged act, error, or omission that occurred within   the scope of Commission employment, duties, or   responsibilities, or as determined by the Commission   that the person against whom the claim is made had a   reasonable basis for believing occurred within the   scope of Commission employment, duties, or   responsibilities; provided that nothing herein shall be   construed to prohibit that person from retaining their   own counsel at their own expense; and provided further,   that the actual or alleged act, error, or omission did   not result from that person's intentional or willful or   wanton misconduct.                            3. The Commission shall indemnify and hold   harmless any member, officer, executive director,   employee, and representative of the Commission for the   amount of any settlement or judgment obtained against   that person arising out of any actual or alleged act,   error, or omission that occurred within the scope of   Commission employment, duties, or responsibilities, or   that such person had a reasonable basis for believing   occurred within the scope of Commission employment,   duties, or responsibilities, provided that the actual   or alleged act, error, or omission did not result from   the intentional or willful or wanton misconduct of that   person.                            4. Nothing herein shall be construed as a   limitation on the liability of any Licensee for   professional malpractice or misconduct, which shall be   governed solely by any other applicable State laws.                            5. Nothing in this Compact shall be   interpreted to waive or otherwise abrogate a Member   State's State action immunity or State action   affirmative defense with respect to antitrust claims   under the Sherman Act, Clayton Act, or any other State   or federal antitrust or anticompetitive law or   regulation.                            6. Nothing in this Compact shall be   construed to be a waiver of sovereign immunity by the   Member States or by the Commission.   ARTICLE 10- DATA SYSTEM          A. The Commission shall provide for the development,   maintenance, operation, and utilization of a coordinated   database and reporting system.          B. The Commission shall assign each applicant for a   Multistate License a unique identifier, as determined by the   Rules of the Commission.          C. Notwithstanding any other provision of State law to the   contrary, a Member State shall submit a uniform data set to   the Data System on all individuals to whom this Compact is   applicable as required by the Rules of the Commission,   including:                            1. Identifying information;                            2. Licensure data;                            3. Adverse Actions against a license and   information related thereto;                            4. Non-confidential information related to   Alternative Program participation, the beginning and   ending dates of such participation, and other   information related to such participation;                            5. Any denial of application for licensure,   and the reason(s) for such denial (excluding the   reporting of any criminal history record information   where prohibited by law);                            6. The existence of Investigative   Information;                            7. The existence of Current Significant   Investigative Information; and                            8. Other information that may facilitate the   administration of this Compact or the protection of the   public, as determined by the Rules of the Commission.          D. The records and information provided to a Member State   pursuant to this Compact or through the Data System, when   certified by the Commission or an agent thereof, shall   constitute the authenticated business records of the   Commission, and shall be entitled to any associated hearsay   exception in any relevant judicial, quasi-judicial or   administrative proceedings in a Member State.          E. The existence of Current Significant Investigative   Information and the existence of Investigative Information   pertaining to a Licensee in any Member State will only be   available to other Member States.          F. It is the responsibility of the Member States to monitor   the database to determine whether Adverse Action has been   taken against such a Licensee or License applicant. Adverse   Action information pertaining to a Licensee or License   applicant in any Member State will be available to any other   Member State.          G. Member States contributing information to the Data System   may designate information that may not be shared with the   public without the express permission of the contributing   State.          H. Any information submitted to the Data System that is   subsequently expunged pursuant to federal law or the laws of   the Member State contributing the information shall be   removed from the Data System.   ARTICLE 11- RULEMAKING          A. The Commission shall promulgate reasonable Rules in order   to effectively and efficiently implement and administer the   purposes and provisions of the Compact. A Rule shall be   invalid and have no force or effect only if a court of   competent jurisdiction holds that the Rule is invalid because   the Commission exercised its rulemaking authority in a manner   that is beyond the scope and purposes of the Compact, or the   powers granted hereunder, or based upon another applicable   standard of review.          B. The Rules of the Commission shall have the force of law in   each Member State, provided however that where the Rules of   the Commission conflict with the laws of the Member State   that establish the Member State's scope of practice laws   governing the Practice of Cosmetology as held by a court of   competent jurisdiction, the Rules of the Commission shall be   ineffective in that State to the extent of the conflict.          C. The Commission shall exercise its rulemaking powers   pursuant to the criteria set forth in this Article and the   Rules adopted thereunder. Rules shall become binding as of   the date specified by the Commission for each Rule.          D. If a majority of the legislatures of the Member States   rejects a Rule or portion of a Rule, by enactment of a statute   or resolution in the same manner used to adopt the Compact   within four (4) years of the date of adoption of the Rule,   then such Rule shall have no further force and effect in any   Member State or to any State applying to participate in the   Compact.          E. Rules shall be adopted at a regular or special meeting of   the Commission.          F. Prior to adoption of a proposed Rule, the Commission shall   hold a public hearing and allow persons to provide oral and   written comments, data, facts, opinions, and arguments.          G. Prior to adoption of a proposed Rule by the Commission,   and at least thirty (30) days in advance of the meeting at   which the Commission will hold a public hearing on the   proposed Rule, the Commission shall provide a notice of   proposed rulemaking:                            1. On the website of the Commission or other   publicly accessible platform;                            2. To persons who have requested notice of   the Commission's notices of proposed rulemaking; and                            3. In such other way(s) as the Commission may   by Rule specify.          H. The notice of proposed rulemaking shall include:                            1. The time, date, and location of the public   hearing at which the Commission will hear public   comments on the proposed Rule and, if different, the   time, date, and location of the meeting where the   Commission will consider and vote on the proposed Rule;                            2. If the hearing is held via   telecommunication, video conference, or other   electronic means, the Commission shall include the   mechanism for access to the hearing in the notice of   proposed rulemaking;                            3. The text of the proposed Rule and the   reason therefor;                            4. A request for comments on the proposed   Rule from any interested person; and                            5. The manner in which interested persons   may submit written comments.          I. All hearings will be recorded. A copy of the recording and   all written comments and documents received by the Commission   in response to the proposed Rule shall be available to the   public.          J. Nothing in this Article shall be construed as requiring a   separate hearing on each Rule. Rules may be grouped for the   convenience of the Commission at hearings required by this   Article.          K. The Commission shall, by majority vote of all members,   take final action on the proposed Rule based on the   rulemaking record and the full text of the Rule.                            1. The Commission may adopt changes to the   proposed Rule provided the changes do not enlarge the   original purpose of the proposed Rule.                            2. The Commission shall provide an   explanation of the reasons for substantive changes made   to the proposed Rule as well as reasons for substantive   changes not made that were recommended by commenters.                            3. The Commission shall determine a   reasonable effective date for the Rule. Except for an   emergency as provided in Article 11.L, the effective   date of the Rule shall be no sooner than forty-five (45)   days after the Commission issuing the notice that it   adopted or amended the Rule.          L. Upon determination that an emergency exists, the   Commission may consider and adopt an emergency Rule with five   (5) days' notice, with opportunity to comment, provided that   the usual rulemaking procedures provided in the Compact and   in this Article shall be retroactively applied to the Rule as   soon as reasonably possible, in no event later than ninety   (90) days after the effective date of the Rule. For the   purposes of this provision, an emergency Rule is one that   must be adopted immediately to:                            1. Meet an imminent threat to public health,   safety, or welfare;                            2. Prevent a loss of Commission or Member   State funds;                            3. Meet a deadline for the promulgation of a   Rule that is established by federal law or rule; or                            4. Protect public health and safety.          M. The Commission or an authorized committee of the   Commission may direct revisions to a previously adopted Rule   for purposes of correcting typographical errors, errors in   format, errors in consistency, or grammatical errors. Public   notice of any revisions shall be posted on the website of the   Commission. The revision shall be subject to challenge by   any person for a period of thirty (30) days after posting.   The revision may be challenged only on grounds that the   revision results in a material change to a Rule. A challenge   shall be made in writing and delivered to the Commission   prior to the end of the notice period. If no challenge is   made, the revision will take effect without further action.   If the revision is challenged, the revision may not take   effect without the approval of the Commission.          N. No Member State's rulemaking requirements shall apply   under this Compact.   ARTICLE 12- OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT          A. Oversight                            1.  The executive and judicial branches of   State government in each Member State shall enforce   this Compact and take all actions necessary and   appropriate to implement the Compact.                            2.  Venue is proper and judicial proceedings   by or against the Commission shall be brought solely and   exclusively in a court of competent jurisdiction where   the principal office of the Commission is located. The   Commission may waive venue and jurisdictional defenses   to the extent it adopts or consents to participate in   alternative dispute resolution proceedings. Nothing   herein shall affect or limit the selection or propriety   of venue in any action against a Licensee for   professional malpractice, misconduct or any such   similar matter.                            3. The Commission shall be entitled to   receive service of process in any proceeding regarding   the enforcement or interpretation of the Compact and   shall have standing to intervene in such a proceeding   for all purposes. Failure to provide the Commission   service of process shall render a judgment or order void   as to the Commission, this Compact, or promulgated   Rules.          B. Default, Technical Assistance, and Termination                            1. If the Commission determines that a   Member State has defaulted in the performance of its   obligations or responsibilities under this Compact or   the promulgated Rules, the Commission shall provide   written notice to the defaulting State. The notice of   default shall describe the default, the proposed means   of curing the default, and any other action that the   Commission may take, and shall offer training and   specific technical assistance regarding the default.                            2. The Commission shall provide a copy of the   notice of default to the other Member States.                            3. If a State in default fails to cure the   default, the defaulting State may be terminated from   the Compact upon an affirmative vote of a majority of   the delegates of the Member States, and all rights,   privileges and benefits conferred on that State by this   Compact may be terminated on the effective date of   termination. A cure of the default does not relieve the   offending State of obligations or liabilities incurred   during the period of default.                            4. Termination of membership in the Compact   shall be imposed only after all other means of securing   compliance have been exhausted. Notice of intent to   suspend or terminate shall be given by the Commission to   the governor, the majority and minority leaders of the   defaulting State's legislature, the defaulting State's   State Licensing Authority and each of the Member States'   State Licensing Authority.                            5. A State that has been terminated is   responsible for all assessments, obligations, and   liabilities incurred through the effective date of   termination, including obligations that extend beyond   the effective date of termination.                            6. Upon the termination of a State's   membership from this Compact, that State shall   immediately provide notice to all Licensees who hold a   Multistate License within that State of such   termination. The terminated State shall continue to   recognize all licenses granted pursuant to this Compact   for a minimum of one hundred eighty (180) days after the   date of said notice of termination.                            7. The Commission shall not bear any costs   related to a State that is found to be in default or that   has been terminated from the Compact, unless agreed   upon in writing between the Commission and the   defaulting State.                            8. The defaulting State may appeal the   action of the Commission by petitioning the United   States District Court for the District of Columbia or   the federal district where the Commission has its   principal offices. The prevailing party shall be   awarded all costs of such litigation, including   reasonable attorney's fees.          C. Dispute Resolution                            1. Upon request by a Member State, the   Commission shall attempt to resolve disputes related to   the Compact that arise among Member States and between   Member and non-Member States.                            2. The Commission shall promulgate a Rule   providing for both mediation and binding dispute   resolution for disputes as appropriate.          D. Enforcement                            1. The Commission, in the reasonable   exercise of its discretion, shall enforce the   provisions of this Compact and the Commission's Rules.                            2. By majority vote as provided by   Commission Rule, the Commission may initiate legal   action against a Member State in default in the United   States District Court for the District of Columbia or   the federal district where the Commission has its   principal offices to enforce compliance with the   provisions of the Compact and its promulgated Rules.   The relief sought may include both injunctive relief   and damages. In the event judicial enforcement is   necessary, the prevailing party shall be awarded all   costs of such litigation, including reasonable   attorney's fees. The remedies herein shall not be the   exclusive remedies of the Commission. The Commission   may pursue any other remedies available under federal   or the defaulting Member State's law.                            3. A Member State may initiate legal action   against the Commission in the United States District   Court for the District of Columbia or the federal   district where the Commission has its principal offices   to enforce compliance with the provisions of the   Compact and its promulgated Rules. The relief sought   may include both injunctive relief and damages. In the   event judicial enforcement is necessary, the prevailing   party shall be awarded all costs of such litigation,   including reasonable attorney's fees.                            4. No individual or entity other than a   Member State may enforce this Compact against the   Commission.   ARTICLE 13- EFFECTIVE DATE, WITHDRAWAL, AND AMENDMENT          A. The Compact shall come into effect on the date on which the   Compact statute is enacted into law in the seventh Member   State.                            1. On or after the effective date of the   Compact, the Commission shall convene and review the   enactment of each of the Charter Member States to   determine if the statute enacted by each such Charter   Member State is materially different than the model   Compact statute.                                        a. A Charter Member State whose   enactment is found to be materially different from   the model Compact statute shall be entitled to the   default process set forth in Article 12.                                        b. If any Member State is later   found to be in default, or is terminated or   withdraws from the Compact, the Commission shall   remain in existence and the Compact shall remain   in effect even if the number of Member States   should be less than seven (7).                            2. Member States enacting the Compact   subsequent to the Charter Member States shall be   subject to the process set forth in Article 9.C.24 to   determine if their enactments are materially different   from the model Compact statute and whether they qualify   for participation in the Compact.                            3. All actions taken for the benefit of the   Commission or in furtherance of the purposes of the   administration of the Compact prior to the effective   date of the Compact or the Commission coming into   existence shall be considered to be actions of the   Commission unless specifically repudiated by the   Commission.                            4. Any State that joins the Compact shall be   subject to the Commission's Rules and bylaws as they   exist on the date on which the Compact becomes law in   that State. Any Rule that has been previously adopted   by the Commission shall have the full force and effect   of law on the day the Compact becomes law in that State.          B. Any Member State may withdraw from this Compact by   enacting a statute repealing that State's enactment of the   Compact.                            1. A Member State's withdrawal shall not take   effect until one hundred eighty (180) days after   enactment of the repealing statute.                            2. Withdrawal shall not affect the   continuing requirement of the withdrawing State's State   Licensing Authority to comply with the investigative   and Adverse Action reporting requirements of this   Compact prior to the effective date of withdrawal.                            3. Upon the enactment of a statute   withdrawing from this Compact, a State shall   immediately provide notice of such withdrawal to all   Licensees within that State. Notwithstanding any   subsequent statutory enactment to the contrary, such   withdrawing State shall continue to recognize all   licenses granted pursuant to this Compact for a minimum   of one hundred eighty (180) days after the date of such   notice of withdrawal.          C. Nothing contained in this Compact shall be construed to   invalidate or prevent any licensure agreement or other   cooperative arrangement between a Member State and a   non-Member State that does not conflict with the provisions   of this Compact.          D. This Compact may be amended by the Member States. No   amendment to this Compact shall become effective and binding   upon any Member State until it is enacted into the laws of all   Member States.   ARTICLE 14- CONSTRUCTION AND SEVERABILITY          A. This Compact and the Commission's rulemaking authority   shall be liberally construed so as to effectuate the   purposes, and the implementation and administration of the   Compact. Provisions of the Compact expressly authorizing or   requiring the promulgation of Rules shall not be construed to   limit the Commission's rulemaking authority solely for those   purposes.          B. The provisions of this Compact shall be severable and if   any phrase, clause, sentence or provision of this Compact is   held by a court of competent jurisdiction to be contrary to   the constitution of any Member State, a State seeking   participation in the Compact, or of the United States, or the   applicability thereof to any government, agency, person or   circumstance is held to be unconstitutional by a court of   competent jurisdiction, the validity of the remainder of this   Compact and the applicability thereof to any other   government, agency, person or circumstance shall not be   affected thereby.          C. Notwithstanding Article 14.B, the Commission may deny a   State's participation in the Compact or, in accordance with   the requirements of Article 12, terminate a Member State's   participation in the Compact, if it determines that a   constitutional requirement of a Member State is a material   departure from the Compact. Otherwise, if this Compact shall   be held to be contrary to the constitution of any Member   State, the Compact shall remain in full force and effect as to   the remaining Member States and in full force and effect as to   the Member State affected as to all severable matters.   ARTICLE 15- CONSISTENT EFFECT AND CONFLICT WITH OTHER STATE LAWS          A. Nothing herein shall prevent or inhibit the enforcement of   any other law of a Member State that is not inconsistent with   the Compact.          B. All permissible agreements between the Commission and the   Member States are binding in accordance with their terms.          Sec. 1604.002.  ADMINISTRATION OF COMPACT. The Texas   Department of Licensing and Regulation is the Cosmetology Licensure   Compact administrator for this state.          Sec. 1604.003.  RULES. The Texas Commission of Licensing   and Regulation may adopt rules necessary to implement this chapter.          SECTION 2.  This Act takes effect on the 91st day after the   last day of the legislative session.