By: Wilson H.B. No. 705       A BILL TO BE ENTITLED   AN ACT   relating to the Cosmetology Licensure Compact; authorizing fees.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Title 9, Occupations Code, is amended by adding   Chapter 1604 to read as follows:   CHAPTER 1604. COSMETOLOGY LICENSURE COMPACT          Sec. 1604.001.  COSMETOLOGY LICENSURE COMPACT. The   Cosmetology Licensure Compact is enacted and entered into with all   other jurisdictions that legally join the compact, which reads as   follows:   COSMETOLOGY LICENSURE COMPACT   ARTICLE 1- PURPOSE   The purpose of this Compact is to facilitate the interstate   practice and regulation of Cosmetology with the goal of improving   public access to, and the safety of, Cosmetology Services and   reducing unnecessary burdens related to Cosmetology licensure.   Through this Compact, the Member States seek to establish a   regulatory framework which provides for a new multistate licensing   program. Through this new licensing program, the Member States   seek to provide increased value and mobility to licensed   Cosmetologists in the Member States, while ensuring the provision   of safe, effective, and reliable services to the public.   This Compact is designed to achieve the following objectives, and   the Member States hereby ratify the same intentions by subscribing   hereto:          A.  Provide opportunities for interstate practice by   Cosmetologists who meet uniform requirements for multistate   licensure;          B.  Enhance the abilities of Member States to protect public   health and safety, and prevent fraud and unlicensed activity within   the profession;          C.  Ensure and encourage cooperation between Member States   in the licensure and regulation of the Practice of Cosmetology;          D.  Support relocating military members and their spouses;          E.  Facilitate the exchange of information between Member   States related to the licensure, investigation, and discipline of   the Practice of Cosmetology;          F.  Provide for the licensure and mobility of the workforce   in the profession, while addressing the shortage of workers and   lessening the associated burdens on the Member States.   ARTICLE 2- DEFINITIONS   As used in this Compact, and except as otherwise provided, the   following definitions shall govern the terms herein:          A.  "Active Military Member" means any person with full-time   duty status in the armed forces of the United States, including   members of the National Guard and Reserve.          B.  "Adverse Action" means any administrative, civil,   equitable, or criminal action permitted by a Member State's laws   which is imposed by a State Licensing Authority or other regulatory   body against a Cosmetologist, including actions against an   individual's license or Authorization to Practice such as   revocation, suspension, probation, monitoring of the Licensee,   limitation of the Licensee's practice, or any other Encumbrance on   a license affecting an individual's ability to participate in the   Cosmetology industry, including the issuance of a cease and desist   order.          C.  "Authorization to Practice" means a legal authorization   associated with a Multistate License permitting the Practice of   Cosmetology in that Remote State, which shall be subject to the   enforcement jurisdiction of the State Licensing Authority in that   Remote State.          D.  "Alternative Program" means a non-disciplinary   monitoring or prosecutorial diversion program approved by a Member   State's State Licensing Authority.          E.  "Background Check" means the submission of information   for an applicant for the purpose of obtaining that applicant's   criminal history record information, as further defined in 28   C.F.R. § 20.3(d), from the Federal Bureau of Investigation and the   agency responsible for retaining State criminal or disciplinary   history in the applicant's Home State.          F.  "Charter Member State" means Member States who have   enacted legislation to adopt this Compact where such legislation   predates the effective date of this Compact as defined in Article   13.          G.  "Commission" means the government agency whose   membership consists of all States that have enacted this Compact,   which is known as the Cosmetology Licensure Compact Commission, as   defined in Article 9, and which shall operate as an instrumentality   of the Member States.          H.  "Cosmetologist" means an individual licensed in their   Home State to practice Cosmetology.          I.  "Cosmetology", "Cosmetology Services", and the "Practice   of Cosmetology" mean the care and services provided by a   Cosmetologist as set forth in the Member State's statutes and   regulations in the State where the services are being provided.          J.  "Current Significant Investigative Information" means:                1.  Investigative Information that a State Licensing   Authority, after an inquiry or investigation that complies with a   Member State's due process requirements, has reason to believe is   not groundless and, if proved true, would indicate a violation of   that State's laws regarding fraud or the Practice of Cosmetology;   or                2.   Investigative Information that indicates that a   Licensee has engaged in fraud or represents an immediate threat to   public health and safety, regardless of whether the Licensee has   been notified and had an opportunity to respond.          K.  "Data System" means a repository of information about   Licensees, including, but not limited to, license status,   Investigative Information, and Adverse Actions.          L.  "Disqualifying Event" means any event which shall   disqualify an individual from holding a Multistate License under   this Compact, which the Commission may by Rule or order specify.          M.  "Encumbered License" means a license in which an Adverse   Action restricts the Practice of Cosmetology by a Licensee, or   where said Adverse Action has been reported to the Commission.          N.  "Encumbrance" means a revocation or suspension of, or any   limitation on, the full and unrestricted Practice of Cosmetology by   a State Licensing Authority.          O.  "Executive Committee" means a group of delegates elected   or appointed to act on behalf of, and within the powers granted to   them by, the Commission.          P.  "Home State" means the Member State which is a Licensee's   primary State of residence, and where that Licensee holds an active   and unencumbered license to practice Cosmetology.          Q.  "Investigative Information" means information, records,   or documents received or generated by a State Licensing Authority   pursuant to an investigation or other inquiry.          R.  "Jurisprudence Requirement" means the assessment of an   individual's knowledge of the laws and rules governing the Practice   of Cosmetology in a State.          S.  "Licensee" means an individual who currently holds a   license from a Member State to practice as a Cosmetologist.          T.  "Member State" means any State that has adopted this   Compact.          U.  "Multistate License" means a license issued by and   subject to the enforcement jurisdiction of the State Licensing   Authority in a Licensee's Home State, which authorizes the Practice   of Cosmetology in Member States and includes Authorizations to   Practice Cosmetology in all Remote States pursuant to this Compact.          V.  "Remote State" means any Member State, other than the   Licensee's Home State.          W.  "Rule" means any rule or regulation promulgated by the   Commission under this Compact which has the force of law.          X.  "Single-State License" means a Cosmetology license   issued by a Member State that authorizes practice of Cosmetology   only within the issuing State and does not include any   authorization outside of the issuing State.          Y.  "State" means a State, territory, or possession of the   United States and the District of Columbia.          Z.  "State Licensing Authority" means a Member State's   regulatory body responsible for issuing Cosmetology licenses or   otherwise overseeing the Practice of Cosmetology in that State.   ARTICLE 3- MEMBER STATE REQUIREMENTS          A.  To be eligible to join this Compact, and to maintain   eligibility as a Member State, a State must:                1.  License and regulate Cosmetology;                2.  Have a mechanism or entity in place to receive and   investigate complaints about Licensees practicing in that State;                3.  Require that Licensees within the State pass a   Cosmetology competency examination prior to being licensed to   provide Cosmetology Services to the public in that State;                4.  Require that Licensees satisfy educational or   training requirements in Cosmetology prior to being licensed to   provide Cosmetology Services to the public in that State;                5.  Implement procedures for considering one or more of   the following categories of information from applicants for   licensure: criminal history; disciplinary history; or Background   Check. Such procedures may include the submission of information by   applicants for the purpose of obtaining an applicant's Background   Check as defined herein;                6.  Participate in the Data System, including through   the use of unique identifying numbers;                7.  Share information related to Adverse Actions with   the Commission and other Member States, both through the Data   System and otherwise;                8.  Notify the Commission and other Member States, in   compliance with the terms of the Compact and Rules of the   Commission, of the existence of Investigative Information or   Current Significant Investigative Information in the State's   possession regarding a Licensee practicing in that State;                9.  Comply with such Rules as may be enacted by the   Commission to administer the Compact; and                10.  Accept Licensees from other Member States as   established herein.          B.  Member States may charge a fee for granting a license to   practice Cosmetology.          C.  Individuals not residing in a Member State shall continue   to be able to apply for a Member State's Single-State License as   provided under the laws of each Member State. However, the   Single-State License granted to these individuals shall not be   recognized as granting a Multistate License to provide services in   any other Member State.          D.  Nothing in this Compact shall affect the requirements   established by a Member State for the issuance of a Single-State   License.          E.  A Multistate License issued to a Licensee by a Home State   to a resident of that State shall be recognized by each Member State   as authorizing a Licensee to practice Cosmetology in each Member   State.          F.  At no point shall the Commission have the power to define   the educational or professional requirements for a license to   practice Cosmetology. The Member States shall retain sole   jurisdiction over the provision of these requirements.   ARTICLE 4- MULTISTATE LICENSE          A.  To be eligible to apply to their Home State's State   Licensing Authority for an initial Multistate License under this   Compact, a Licensee must hold an active and unencumbered   Single-State License to practice Cosmetology in their Home State.          B.  Upon the receipt of an application for a Multistate   License, according to the Rules of the Commission, a Member State's   State Licensing Authority shall ascertain whether the applicant   meets the requirements for a Multistate License under this Compact.          C.  If an applicant meets the requirements for a Multistate   License under this Compact and any applicable Rules of the   Commission, the State Licensing Authority in receipt of the   application shall, within a reasonable time, grant a Multistate   License to that applicant, and inform all Member States of the grant   of said Multistate License.          D.  A Multistate License to practice Cosmetology issued by a   Member State's State Licensing Authority shall be recognized by   each Member State as authorizing the practice thereof as though   that Licensee held a Single-State License to do so in each Member   State, subject to the restrictions herein.          E.  A Multistate License granted pursuant to this Compact may   be effective for a definite period of time, concurrent with the   licensure renewal period in the Home State.          F.  To maintain a Multistate License under this Compact, a   Licensee must:                1.  Agree to abide by the rules of the State Licensing   Authority, and the State scope of practice laws governing the   Practice of Cosmetology, of any Member State in which the Licensee   provides services;                2.  Pay all required fees related to the application   and process, and any other fees which the Commission may by Rule   require; and                3.  Comply with any and all other requirements   regarding Multistate Licenses which the Commission may by Rule   provide.          G.  A Licensee practicing in a Member State is subject to all   scope of practice laws governing Cosmetology Services in that   State.          H.  The Practice of Cosmetology under a Multistate License   granted pursuant to this Compact will subject the Licensee to the   jurisdiction of the State Licensing Authority, the courts, and the   laws of the Member State in which the Cosmetology Services are   provided.   ARTICLE 5- REISSUANCE OF A MULTISTATE LICENSE BY A NEW HOME STATE          A.  A Licensee may hold a Multistate License, issued by their   Home State, in only one Member State at any given time.          B.  If a Licensee changes their Home State by moving between   two Member States:                1.  The Licensee shall immediately apply for the   reissuance of their Multistate License in their new Home State. The   Licensee shall pay all applicable fees and notify the prior Home   State in accordance with the Rules of the Commission.                2.  Upon receipt of an application to reissue a   Multistate License, the new Home State shall verify that the   Multistate License is active, unencumbered and eligible for   reissuance under the terms of the Compact and the Rules of the   Commission. The Multistate License issued by the prior Home State   will be deactivated and all Member States notified in accordance   with the applicable Rules adopted by the Commission.                3.  If required for initial licensure, the new Home   State may require a Background Check as specified in the laws of   that State, or the compliance with any Jurisprudence Requirements   of the new Home State.                4.  Notwithstanding any other provision of this   Compact, if a Licensee does not meet the requirements set forth in   this Compact for the reissuance of a Multistate License by the new   Home State, then the Licensee shall be subject to the new Home State   requirements for the issuance of a Single-State License in that   State.          C.  If a Licensee changes their primary state of residence by   moving from a Member State to a non-Member State, or from a   non-Member State to a Member State, then the Licensee shall be   subject to the State requirements for the issuance of a   Single-State License in the new Home State.          D.  Nothing in this Compact shall interfere with a Licensee's   ability to hold a Single-State License in multiple States; however,   for the purposes of this Compact, a Licensee shall have only one   Home State, and only one Multistate License.          E.  Nothing in this Compact shall interfere with the   requirements established by a Member State for the issuance of a   Single-State License.   ARTICLE 6- AUTHORITY OF THE COMPACT COMMISSION AND MEMBER STATE   LICENSING AUTHORITIES          A.  Nothing in this Compact, nor any Rule or regulation of   the Commission, shall be construed to limit, restrict, or in any way   reduce the ability of a Member State to enact and enforce laws,   regulations, or other rules related to the Practice of Cosmetology   in that State, where those laws, regulations, or other rules are not   inconsistent with the provisions of this Compact.          B.  Insofar as practical, a Member State's State Licensing   Authority shall cooperate with the Commission and with each entity   exercising independent regulatory authority over the Practice of   Cosmetology according to the provisions of this Compact.          C.  Discipline shall be the sole responsibility of the State   in which Cosmetology Services are provided. Accordingly, each   Member State's State Licensing Authority shall be responsible for   receiving complaints about individuals practicing Cosmetology in   that State, and for communicating all relevant Investigative   Information about any such Adverse Action to the other Member   States through the Data System in addition to any other methods the   Commission may by Rule require.   ARTICLE 7- ADVERSE ACTIONS          A.  A Licensee's Home State shall have exclusive power to   impose an Adverse Action against a Licensee's Multistate License   issued by the Home State.          B.  A Home State may take Adverse Action on a Multistate   License based on the Investigative Information, Current   Significant Investigative Information, or Adverse Action of a   Remote State.          C.  In addition to the powers conferred by State law, each   Remote State's State Licensing Authority shall have the power to:                1.  Take Adverse Action against a Licensee's   Authorization to Practice Cosmetology through the Multistate   License in that Member State, provided that:                      a.  Only the Licensee's Home State shall have the   power to take Adverse Action against the Multistate License issued   by the Home State; and                      b.  For the purposes of taking Adverse Action, the   Home State's State Licensing Authority shall give the same priority   and effect to reported conduct received from a Remote State as it   would if such conduct had occurred within the Home State. In so   doing, the Home State shall apply its own State laws to determine   the appropriate action.                2.  Issue cease and desist orders or impose an   Encumbrance on a Licensee's Authorization to Practice within that   Member State.                3.  Complete any pending investigations of a Licensee   who changes their primary state of residence during the course of   such an investigation. The State Licensing Authority shall also be   empowered to report the results of such an investigation to the   Commission through the Data System as described herein.                4.  Issue subpoenas for both hearings and   investigations that require the attendance and testimony of   witnesses, as well as the production of evidence. Subpoenas issued   by a State Licensing Authority in a Member State for the attendance   and testimony of witnesses or the production of evidence from   another Member State shall be enforced in the latter State by any   court of competent jurisdiction, according to the practice and   procedure of that court applicable to subpoenas issued in   proceedings before it. The issuing State Licensing Authority shall   pay any witness fees, travel expenses, mileage, and other fees   required by the service statutes of the State in which the witnesses   or evidence are located.                5.  If otherwise permitted by State law, recover from   the affected Licensee the costs of investigations and disposition   of cases resulting from any Adverse Action taken against that   Licensee.                6.  Take Adverse Action against the Licensee's   Authorization to Practice in that State based on the factual   findings of another Remote State.          D.  A Licensee's Home State shall complete any pending   investigation(s) of a Cosmetologist who changes their primary state   of residence during the course of the investigation(s). The Home   State shall also have the authority to take appropriate action(s)   and shall promptly report the conclusions of the investigations to   the Data System.          E.  If an Adverse Action is taken by the Home State against a   Licensee's Multistate License, the Licensee's Authorization to   Practice in all other Member States shall be deactivated until all   Encumbrances have been removed from the Home State license. All   Home State disciplinary orders that impose an Adverse Action   against a Licensee's Multistate License shall include a statement   that the Cosmetologist's Authorization to Practice is deactivated   in all Member States during the pendency of the order.          F.  Nothing in this Compact shall override a Member State's   authority to accept a Licensee's participation in an Alternative   Program in lieu of Adverse Action. A Licensee's Multistate License   shall be suspended for the duration of the Licensee's participation   in any Alternative Program.          G.  Joint Investigations                1.  In addition to the authority granted to a Member   State by its respective scope of practice laws or other applicable   State law, a Member State may participate with other Member States   in joint investigations of Licensees.                2.  Member States shall share any investigative,   litigation, or compliance materials in furtherance of any joint or   individual investigation initiated under the Compact.   ARTICLE 8- ACTIVE MILITARY MEMBERS AND THEIR SPOUSES   Active Military Members, or their spouses, shall designate a Home   State where the individual has a current license to practice   Cosmetology in good standing. The individual may retain their Home   State designation during any period of service when that individual   or their spouse is on active duty assignment.   ARTICLE 9- ESTABLISHMENT AND OPERATION OF THE COSMETOLOGY LICENSURE   COMPACT COMMISSION          A.  The Compact Member States hereby create and establish a   joint government agency whose membership consists of all Member   States that have enacted the Compact known as the Cosmetology   Licensure Compact Commission. The Commission is an instrumentality   of the Compact Member States acting jointly and not an   instrumentality of any one State. The Commission shall come into   existence on or after the effective date of the Compact as set forth   in Article 13.          B.  Membership, Voting, and Meetings                1.  Each Member State shall have and be limited to one   (1) delegate selected by that Member State's State Licensing   Authority.                2.  The delegate shall be an administrator of the State   Licensing Authority of the Member State or their designee.                3.  The Commission shall by Rule or bylaw establish a   term of office for delegates and may by Rule or bylaw establish term   limits.                4.  The Commission may recommend removal or suspension   of any delegate from office.                5.  A Member State's State Licensing Authority shall   fill any vacancy of its delegate occurring on the Commission within   60 days of the vacancy.                6.  Each delegate shall be entitled to one vote on all   matters that are voted on by the Commission.                7.  The Commission shall meet at least once during each   calendar year. Additional meetings may be held as set forth in the   bylaws. The Commission may meet by telecommunication, video   conference or other similar electronic means.          C.  The Commission shall have the following powers:                1.  Establish the fiscal year of the Commission;                2.  Establish code of conduct and conflict of interest   policies;                3.  Adopt Rules and bylaws;                4.  Maintain its financial records in accordance with   the bylaws;                5.  Meet and take such actions as are consistent with   the provisions of this Compact, the Commission's Rules, and the   bylaws;                6.  Initiate and conclude legal proceedings or actions   in the name of the Commission, provided that the standing of any   State Licensing Authority to sue or be sued under applicable law   shall not be affected;                7.  Maintain and certify records and information   provided to a Member State as the authenticated business records of   the Commission, and designate an agent to do so on the Commission's   behalf;                8.  Purchase and maintain insurance and bonds;                9.  Borrow, accept, or contract for services of   personnel, including, but not limited to, employees of a Member   State;                10.  Conduct an annual financial review;                11.  Hire employees, elect or appoint officers, fix   compensation, define duties, grant such individuals appropriate   authority to carry out the purposes of the Compact, and establish   the Commission's personnel policies and programs relating to   conflicts of interest, qualifications of personnel, and other   related personnel matters;                12.  As set forth in the Commission Rules, charge a fee   to a Licensee for the grant of a Multistate License and thereafter,   as may be established by Commission Rule, charge the Licensee a   Multistate License renewal fee for each renewal period. Nothing   herein shall be construed to prevent a Home State from charging a   Licensee a fee for a Multistate License or renewals of a Multistate   License, or a fee for the jurisprudence requirement if the Member   State imposes such a requirement for the grant of a Multistate   License;                13.  Assess and collect fees;                14.  Accept any and all appropriate gifts, donations,   grants of money, other sources of revenue, equipment, supplies,   materials, and services, and receive, utilize, and dispose of the   same; provided that at all times the Commission shall avoid any   appearance of impropriety or conflict of interest;                15.  Lease, purchase, retain, own, hold, improve, or   use any property, real, personal, or mixed, or any undivided   interest therein;                16.  Sell, convey, mortgage, pledge, lease, exchange,   abandon, or otherwise dispose of any property real, personal, or   mixed;                17.  Establish a budget and make expenditures;                18.  Borrow money;                19.  Appoint committees, including standing   committees, composed of members, State regulators, State   legislators or their representatives, and consumer   representatives, and such other interested persons as may be   designated in this Compact and the bylaws;                20.  Provide and receive information from, and   cooperate with, law enforcement agencies;                21.  Elect a Chair, Vice Chair, Secretary and Treasurer   and such other officers of the Commission as provided in the   Commission's bylaws;                22.  Establish and elect an Executive Committee,   including a chair and a vice chair;                23.  Adopt and provide to the Member States an annual   report.                24.  Determine whether a State's adopted language is   materially different from the model Compact language such that the   State would not qualify for participation in the Compact; and                25.  Perform such other functions as may be necessary   or appropriate to achieve the purposes of this Compact.          D.  The Executive Committee                1.  The Executive Committee shall have the power to act   on behalf of the Commission according to the terms of this Compact.   The powers, duties, and responsibilities of the Executive Committee   shall include:                      a.  Overseeing the day-to-day activities of the   administration of the Compact including compliance with the   provisions of the Compact, the Commission's Rules and bylaws, and   other such duties as deemed necessary;                      b.  Recommending to the Commission changes to the   Rules or bylaws, changes to this Compact legislation, fees charged   to Compact Member States, fees charged to Licensees, and other   fees;                      c.  Ensuring Compact administration services are   appropriately provided, including by contract;                      d.  Preparing and recommending the budget;                      e.  Maintaining financial records on behalf of the   Commission;                      f.  Monitoring Compact compliance of Member   States and providing compliance reports to the Commission;                      g.  Establishing additional committees as   necessary;                      h.  Exercising the powers and duties of the   Commission during the interim between Commission meetings, except   for adopting or amending Rules, adopting or amending bylaws, and   exercising any other powers and duties expressly reserved to the   Commission by Rule or bylaw; and                      i.  Other duties as provided in the Rules or   bylaws of the Commission.                2.  The Executive Committee shall be composed of up to   seven voting members:                      a.  The chair and vice chair of the Commission and   any other members of the Commission who serve on the Executive   Committee shall be voting members of the Executive Committee; and                      b.  Other than the chair, vice-chair, secretary   and treasurer, the Commission shall elect three voting members from   the current membership of the Commission.                      c.  The Commission may elect ex-officio,   nonvoting members from a recognized national Cosmetology   professional association as approved by the Commission. The   Commission's bylaws shall identify qualifying organizations and   the manner of appointment if the number of organizations seeking to   appoint an ex officio member exceeds the number of members   specified in this Article.                3.  The Commission may remove any member of the   Executive Committee as provided in the Commission's bylaws.                4.  The Executive Committee shall meet at least   annually.                      a.  Annual Executive Committee meetings, as well   as any Executive Committee meeting at which it does not take or   intend to take formal action on a matter for which a Commission vote   would otherwise be required, shall be open to the public, except   that the Executive Committee may meet in a closed, non-public   session of a public meeting when dealing with any of the matters   covered under Article 9.F.4.                      b.  The Executive Committee shall give five   business days advance notice of its public meetings, posted on its   website and as determined to provide notice to persons with an   interest in the public matters the Executive Committee intends to   address at those meetings.                5.  The Executive Committee may hold an emergency   meeting when acting for the Commission to:                      a.  Meet an imminent threat to public health,   safety, or welfare;                      b.  Prevent a loss of Commission or Member State   funds; or                      c.  Protect public health and safety.          E.  The Commission shall adopt and provide to the Member   States an annual report.          F.  Meetings of the Commission                1.  All meetings of the Commission that are not closed   pursuant to Article 9.F.4 shall be open to the public. Notice of   public meetings shall be posted on the Commission's website at   least thirty (30) days prior to the public meeting.                2.  Notwithstanding Article 9.F.1, the Commission may   convene an emergency public meeting by providing at least   twenty-four (24) hours prior notice on the Commission's website,   and any other means as provided in the Commission's Rules, for any   of the reasons it may dispense with notice of proposed rulemaking   under Article 11.L. The Commission's legal counsel shall certify   that one of the reasons justifying an emergency public meeting has   been met.                3.  Notice of all Commission meetings shall provide the   time, date, and location of the meeting, and if the meeting is to be   held or accessible via telecommunication, video conference, or   other electronic means, the notice shall include the mechanism for   access to the meeting.                4.  The Commission may convene in a closed, non-public   meeting for the Commission to discuss:                      a.  Non-compliance of a Member State with its   obligations under the Compact;                      b.  The employment, compensation, discipline or   other matters, practices or procedures related to specific   employees or other matters related to the Commission's internal   personnel practices and procedures;                      c.  Current or threatened discipline of a Licensee   by the Commission or by a Member State's Licensing Authority;                      d.  Current, threatened, or reasonably   anticipated litigation;                      e.  Negotiation of contracts for the purchase,   lease, or sale of goods, services, or real estate;                      f.  Accusing any person of a crime or formally   censuring any person;                      g.  Trade secrets or commercial or financial   information that is privileged or confidential;                      h.  Information of a personal nature where   disclosure would constitute a clearly unwarranted invasion of   personal privacy;                      i.  Investigative records compiled for law   enforcement purposes;                      j.  Information related to any investigative   reports prepared by or on behalf of or for use of the Commission or   other committee charged with responsibility of investigation or   determination of compliance issues pursuant to the Compact;                      k.  Legal advice;                      l.  Matters specifically exempted from disclosure   to the public by federal or Member State law; or                      m.  Other matters as promulgated by the Commission   by Rule.                5.  If a meeting, or portion of a meeting, is closed,   the presiding officer shall state that the meeting will be closed   and reference each relevant exempting provision, and such reference   shall be recorded in the minutes.                6.  The Commission shall keep minutes that fully and   clearly describe all matters discussed in a meeting and shall   provide a full and accurate summary of actions taken, and the   reasons therefore, including a description of the views expressed.   All documents considered in connection with an action shall be   identified in such minutes. All minutes and documents of a closed   meeting shall remain under seal, subject to release only by a   majority vote of the Commission or order of a court of competent   jurisdiction.          G.  Financing of the Commission                1.  The Commission shall pay, or provide for the   payment of, the reasonable expenses of its establishment,   organization, and ongoing activities.                2.  The Commission may accept any and all appropriate   sources of revenue, donations, and grants of money, equipment,   supplies, materials, and services.                3.  The Commission may levy on and collect an annual   assessment from each Member State and impose fees on Licensees of   Member States to whom it grants a Multistate License to cover the   cost of the operations and activities of the Commission and its   staff, which must be in a total amount sufficient to cover its   annual budget as approved each year for which revenue is not   provided by other sources. The aggregate annual assessment amount   for Member States shall be allocated based upon a formula that the   Commission shall promulgate by Rule.                4.  The Commission shall not incur obligations of any   kind prior to securing the funds adequate to meet the same; nor   shall the Commission pledge the credit of any Member States, except   by and with the authority of the Member State.                5.  The Commission shall keep accurate accounts of all   receipts and disbursements. The receipts and disbursements of the   Commission shall be subject to the financial review and accounting   procedures established under its bylaws. All receipts and   disbursements of funds handled by the Commission shall be subject   to an annual financial review by a certified or licensed public   accountant, and the report of the financial review shall be   included in and become part of the annual report of the Commission.          H.  Qualified Immunity, Defense, and Indemnification                1.  The members, officers, executive director,   employees and representatives of the Commission shall be immune   from suit and liability, both personally and in their official   capacity, for any claim for damage to or loss of property or   personal injury or other civil liability caused by or arising out of   any actual or alleged act, error, or omission that occurred, or that   the person against whom the claim is made had a reasonable basis for   believing occurred within the scope of Commission employment,   duties or responsibilities; provided that nothing in this paragraph   shall be construed to protect any such person from suit or liability   for any damage, loss, injury, or liability caused by the   intentional or willful or wanton misconduct of that person. The   procurement of insurance of any type by the Commission shall not in   any way compromise or limit the immunity granted hereunder.                2.  The Commission shall defend any member, officer,   executive director, employee, and representative of the Commission   in any civil action seeking to impose liability arising out of any   actual or alleged act, error, or omission that occurred within the   scope of Commission employment, duties, or responsibilities, or as   determined by the Commission that the person against whom the claim   is made had a reasonable basis for believing occurred within the   scope of Commission employment, duties, or responsibilities;   provided that nothing herein shall be construed to prohibit that   person from retaining their own counsel at their own expense; and   provided further, that the actual or alleged act, error, or   omission did not result from that person's intentional or willful   or wanton misconduct.                3.  The Commission shall indemnify and hold harmless   any member, officer, executive director, employee, and   representative of the Commission for the amount of any settlement   or judgment obtained against that person arising out of any actual   or alleged act, error, or omission that occurred within the scope of   Commission employment, duties, or responsibilities, or that such   person had a reasonable basis for believing occurred within the   scope of Commission employment, duties, or responsibilities,   provided that the actual or alleged act, error, or omission did not   result from the intentional or willful or wanton misconduct of that   person.                4.  Nothing herein shall be construed as a limitation   on the liability of any Licensee for professional malpractice or   misconduct, which shall be governed solely by any other applicable   State laws.                5.  Nothing in this Compact shall be interpreted to   waive or otherwise abrogate a Member State's State action immunity   or State action affirmative defense with respect to antitrust   claims under the Sherman Act, Clayton Act, or any other State or   federal antitrust or anticompetitive law or regulation.                6.  Nothing in this Compact shall be construed to be a   waiver of sovereign immunity by the Member States or by the   Commission.   ARTICLE 10- DATA SYSTEM          A.  The Commission shall provide for the development,   maintenance, operation, and utilization of a coordinated database   and reporting system.          B.  The Commission shall assign each applicant for a   Multistate License a unique identifier, as determined by the Rules   of the Commission.          C.  Notwithstanding any other provision of State law to the   contrary, a Member State shall submit a uniform data set to the Data   System on all individuals to whom this Compact is applicable as   required by the Rules of the Commission, including:                1.  Identifying information;                2.  Licensure data;                3.  Adverse Actions against a license and information   related thereto;                4.  Non-confidential information related to   Alternative Program participation, the beginning and ending dates   of such participation, and other information related to such   participation;                5.  Any denial of application for licensure, and the   reason(s) for such denial (excluding the reporting of any criminal   history record information where prohibited by law);                6.  The existence of Investigative Information;                7.  The existence of Current Significant Investigative   Information; and                8.  Other information that may facilitate the   administration of this Compact or the protection of the public, as   determined by the Rules of the Commission.          D.  The records and information provided to a Member State   pursuant to this Compact or through the Data System, when certified   by the Commission or an agent thereof, shall constitute the   authenticated business records of the Commission, and shall be   entitled to any associated hearsay exception in any relevant   judicial, quasi-judicial or administrative proceedings in a Member   State.          E.  The existence of Current Significant Investigative   Information and the existence of Investigative Information   pertaining to a Licensee in any Member State will only be available   to other Member States.          F.  It is the responsibility of the Member States to monitor   the database to determine whether Adverse Action has been taken   against such a Licensee or License applicant. Adverse Action   information pertaining to a Licensee or License applicant in any   Member State will be available to any other Member State.          G.  Member States contributing information to the Data   System may designate information that may not be shared with the   public without the express permission of the contributing State.          H.  Any information submitted to the Data System that is   subsequently expunged pursuant to federal law or the laws of the   Member State contributing the information shall be removed from the   Data System.   ARTICLE 11- RULEMAKING          A.  The Commission shall promulgate reasonable Rules in   order to effectively and efficiently implement and administer the   purposes and provisions of the Compact. A Rule shall be invalid and   have no force or effect only if a court of competent jurisdiction   holds that the Rule is invalid because the Commission exercised its   rulemaking authority in a manner that is beyond the scope and   purposes of the Compact, or the powers granted hereunder, or based   upon another applicable standard of review.          B.  The Rules of the Commission shall have the force of law in   each Member State, provided however that where the Rules of the   Commission conflict with the laws of the Member State that   establish the Member State's scope of practice laws governing the   Practice of Cosmetology as held by a court of competent   jurisdiction, the Rules of the Commission shall be ineffective in   that State to the extent of the conflict.          C.  The Commission shall exercise its rulemaking powers   pursuant to the criteria set forth in this Article and the Rules   adopted thereunder. Rules shall become binding as of the date   specified by the Commission for each Rule.          D.  If a majority of the legislatures of the Member States   rejects a Rule or portion of a Rule, by enactment of a statute or   resolution in the same manner used to adopt the Compact within four   (4) years of the date of adoption of the Rule, then such Rule shall   have no further force and effect in any Member State or to any State   applying to participate in the Compact.          E.  Rules shall be adopted at a regular or special meeting of   the Commission.          F.  Prior to adoption of a proposed Rule, the Commission   shall hold a public hearing and allow persons to provide oral and   written comments, data, facts, opinions, and arguments.          G.  Prior to adoption of a proposed Rule by the Commission,   and at least thirty (30) days in advance of the meeting at which the   Commission will hold a public hearing on the proposed Rule, the   Commission shall provide a notice of proposed rulemaking:                1.  On the website of the Commission or other publicly   accessible platform;                2.  To persons who have requested notice of the   Commission's notices of proposed rulemaking; and                3.  In such other way(s) as the Commission may by Rule   specify.          H.  The notice of proposed rulemaking shall include:                1.  The time, date, and location of the public hearing   at which the Commission will hear public comments on the proposed   Rule and, if different, the time, date, and location of the meeting   where the Commission will consider and vote on the proposed Rule;                2.  If the hearing is held via telecommunication, video   conference, or other electronic means, the Commission shall include   the mechanism for access to the hearing in the notice of proposed   rulemaking;                3.  The text of the proposed Rule and the reason   therefor;                4.  A request for comments on the proposed Rule from any   interested person; and                5.  The manner in which interested persons may submit   written comments.          I.  All hearings will be recorded. A copy of the recording   and all written comments and documents received by the Commission   in response to the proposed Rule shall be available to the public.          J.  Nothing in this Article shall be construed as requiring a   separate hearing on each Rule. Rules may be grouped for the   convenience of the Commission at hearings required by this Article.          K.  The Commission shall, by majority vote of all members,   take final action on the proposed Rule based on the rulemaking   record and the full text of the Rule.                1.  The Commission may adopt changes to the proposed   Rule provided the changes do not enlarge the original purpose of the   proposed Rule.                2.  The Commission shall provide an explanation of the   reasons for substantive changes made to the proposed Rule as well as   reasons for substantive changes not made that were recommended by   commenters.                3.  The Commission shall determine a reasonable   effective date for the Rule. Except for an emergency as provided in   Article 11.L, the effective date of the Rule shall be no sooner than   forty-five (45) days after the Commission issuing the notice that   it adopted or amended the Rule.          L.  Upon determination that an emergency exists, the   Commission may consider and adopt an emergency Rule with five (5)   days' notice, with opportunity to comment, provided that the usual   rulemaking procedures provided in the Compact and in this Article   shall be retroactively applied to the Rule as soon as reasonably   possible, in no event later than ninety (90) days after the   effective date of the Rule. For the purposes of this provision, an   emergency Rule is one that must be adopted immediately to:                1.  Meet an imminent threat to public health, safety,   or welfare;                2.  Prevent a loss of Commission or Member State funds;                3.  Meet a deadline for the promulgation of a Rule that   is established by federal law or rule; or                4.  Protect public health and safety.          M.  The Commission or an authorized committee of the   Commission may direct revisions to a previously adopted Rule for   purposes of correcting typographical errors, errors in format,   errors in consistency, or grammatical errors. Public notice of any   revisions shall be posted on the website of the Commission. The   revision shall be subject to challenge by any person for a period of   thirty (30) days after posting. The revision may be challenged only   on grounds that the revision results in a material change to a Rule.   A challenge shall be made in writing and delivered to the Commission   prior to the end of the notice period. If no challenge is made, the   revision will take effect without further action. If the revision   is challenged, the revision may not take effect without the   approval of the Commission.          N.  No Member State's rulemaking requirements shall apply   under this Compact.   ARTICLE 12- OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT          A.  Oversight                1.  The executive and judicial branches of State   government in each Member State shall enforce this Compact and take   all actions necessary and appropriate to implement the Compact.                2.  Venue is proper and judicial proceedings by or   against the Commission shall be brought solely and exclusively in a   court of competent jurisdiction where the principal office of the   Commission is located. The Commission may waive venue and   jurisdictional defenses to the extent it adopts or consents to   participate in alternative dispute resolution proceedings.   Nothing herein shall affect or limit the selection or propriety of   venue in any action against a Licensee for professional   malpractice, misconduct or any such similar matter.                3.  The Commission shall be entitled to receive service   of process in any proceeding regarding the enforcement or   interpretation of the Compact and shall have standing to intervene   in such a proceeding for all purposes. Failure to provide the   Commission service of process shall render a judgment or order void   as to the Commission, this Compact, or promulgated Rules.          B.  Default, Technical Assistance, and Termination                1.  If the Commission determines that a Member State   has defaulted in the performance of its obligations or   responsibilities under this Compact or the promulgated Rules, the   Commission shall provide written notice to the defaulting State.   The notice of default shall describe the default, the proposed   means of curing the default, and any other action that the   Commission may take, and shall offer training and specific   technical assistance regarding the default.                2.  The Commission shall provide a copy of the notice of   default to the other Member States.                3.  If a State in default fails to cure the default, the   defaulting State may be terminated from the Compact upon an   affirmative vote of a majority of the delegates of the Member   States, and all rights, privileges and benefits conferred on that   State by this Compact may be terminated on the effective date of   termination. A cure of the default does not relieve the offending   State of obligations or liabilities incurred during the period of   default.                4.  Termination of membership in the Compact shall be   imposed only after all other means of securing compliance have been   exhausted. Notice of intent to suspend or terminate shall be given   by the Commission to the governor, the majority and minority   leaders of the defaulting State's legislature, the defaulting   State's State Licensing Authority and each of the Member States'   State Licensing Authority.                5.  A State that has been terminated is responsible for   all assessments, obligations, and liabilities incurred through the   effective date of termination, including obligations that extend   beyond the effective date of termination.                6.  Upon the termination of a State's membership from   this Compact, that State shall immediately provide notice to all   Licensees who hold a Multistate License within that State of such   termination. The terminated State shall continue to recognize all   licenses granted pursuant to this Compact for a minimum of one   hundred eighty (180) days after the date of said notice of   termination.                7.  The Commission shall not bear any costs related to a   State that is found to be in default or that has been terminated   from the Compact, unless agreed upon in writing between the   Commission and the defaulting State.                8.  The defaulting State may appeal the action of the   Commission by petitioning the United States District Court for the   District of Columbia or the federal district where the Commission   has its principal offices. The prevailing party shall be awarded   all costs of such litigation, including reasonable attorney's fees.          C.  Dispute Resolution                1.  Upon request by a Member State, the Commission   shall attempt to resolve disputes related to the Compact that arise   among Member States and between Member and non-Member States.                2.  The Commission shall promulgate a Rule providing   for both mediation and binding dispute resolution for disputes as   appropriate.          D.  Enforcement                1.  The Commission, in the reasonable exercise of its   discretion, shall enforce the provisions of this Compact and the   Commission's Rules.                2.  By majority vote as provided by Commission Rule,   the Commission may initiate legal action against a Member State in   default in the United States District Court for the District of   Columbia or the federal district where the Commission has its   principal offices to enforce compliance with the provisions of the   Compact and its promulgated Rules. The relief sought may include   both injunctive relief and damages. In the event judicial   enforcement is necessary, the prevailing party shall be awarded all   costs of such litigation, including reasonable attorney's fees.   The remedies herein shall not be the exclusive remedies of the   Commission. The Commission may pursue any other remedies available   under federal or the defaulting Member State's law.                3.  A Member State may initiate legal action against   the Commission in the United States District Court for the District   of Columbia or the federal district where the Commission has its   principal offices to enforce compliance with the provisions of the   Compact and its promulgated Rules. The relief sought may include   both injunctive relief and damages. In the event judicial   enforcement is necessary, the prevailing party shall be awarded all   costs of such litigation, including reasonable attorney's fees.                4.  No individual or entity other than a Member State   may enforce this Compact against the Commission.   ARTICLE 13- EFFECTIVE DATE, WITHDRAWAL, AND AMENDMENT          A.  The Compact shall come into effect on the date on which   the Compact statute is enacted into law in the seventh Member State.                1.  On or after the effective date of the Compact, the   Commission shall convene and review the enactment of each of the   Charter Member States to determine if the statute enacted by each   such Charter Member State is materially different than the model   Compact statute.                      a.  A Charter Member State whose enactment is   found to be materially different from the model Compact statute   shall be entitled to the default process set forth in Article 12.                      b.  If any Member State is later found to be in   default, or is terminated or withdraws from the Compact, the   Commission shall remain in existence and the Compact shall remain   in effect even if the number of Member States should be less than   seven (7).                2.  Member States enacting the Compact subsequent to   the Charter Member States shall be subject to the process set forth   in Article 9.C.24 to determine if their enactments are materially   different from the model Compact statute and whether they qualify   for participation in the Compact.                3.  All actions taken for the benefit of the Commission   or in furtherance of the purposes of the administration of the   Compact prior to the effective date of the Compact or the Commission   coming into existence shall be considered to be actions of the   Commission unless specifically repudiated by the Commission.                4.  Any State that joins the Compact shall be subject to   the Commission's Rules and bylaws as they exist on the date on which   the Compact becomes law in that State. Any Rule that has been   previously adopted by the Commission shall have the full force and   effect of law on the day the Compact becomes law in that State.          B.  Any Member State may withdraw from this Compact by   enacting a statute repealing that State's enactment of the Compact.                1.  A Member State's withdrawal shall not take effect   until one hundred eighty (180) days after enactment of the   repealing statute.                2.  Withdrawal shall not affect the continuing   requirement of the withdrawing State's State Licensing Authority to   comply with the investigative and Adverse Action reporting   requirements of this Compact prior to the effective date of   withdrawal.                3.  Upon the enactment of a statute withdrawing from   this Compact, a State shall immediately provide notice of such   withdrawal to all Licensees within that State. Notwithstanding any   subsequent statutory enactment to the contrary, such withdrawing   State shall continue to recognize all licenses granted pursuant to   this Compact for a minimum of one hundred eighty (180) days after   the date of such notice of withdrawal.          C.  Nothing contained in this Compact shall be construed to   invalidate or prevent any licensure agreement or other cooperative   arrangement between a Member State and a non-Member State that does   not conflict with the provisions of this Compact.          D.  This Compact may be amended by the Member States. No   amendment to this Compact shall become effective and binding upon   any Member State until it is enacted into the laws of all Member   States.   ARTICLE 14- CONSTRUCTION AND SEVERABILITY          A.  This Compact and the Commission's rulemaking authority   shall be liberally construed so as to effectuate the purposes, and   the implementation and administration of the Compact. Provisions   of the Compact expressly authorizing or requiring the promulgation   of Rules shall not be construed to limit the Commission's   rulemaking authority solely for those purposes.          B.  The provisions of this Compact shall be severable and if   any phrase, clause, sentence or provision of this Compact is held by   a court of competent jurisdiction to be contrary to the   constitution of any Member State, a State seeking participation in   the Compact, or of the United States, or the applicability thereof   to any government, agency, person or circumstance is held to be   unconstitutional by a court of competent jurisdiction, the validity   of the remainder of this Compact and the applicability thereof to   any other government, agency, person or circumstance shall not be   affected thereby.          C.  Notwithstanding Article 14.B, the Commission may deny a   State's participation in the Compact or, in accordance with the   requirements of Article 12, terminate a Member State's   participation in the Compact, if it determines that a   constitutional requirement of a Member State is a material   departure from the Compact. Otherwise, if this Compact shall be   held to be contrary to the constitution of any Member State, the   Compact shall remain in full force and effect as to the remaining   Member States and in full force and effect as to the Member State   affected as to all severable matters.   ARTICLE 15- CONSISTENT EFFECT AND CONFLICT WITH OTHER STATE LAWS          A.  Nothing herein shall prevent or inhibit the enforcement   of any other law of a Member State that is not inconsistent with the   Compact.          B.  All permissible agreements between the Commission and   the Member States are binding in accordance with their terms.          Sec. 1604.002.  ADMINISTRATION OF COMPACT. The Texas   Department of Licensing and Regulation is the Cosmetology Licensure   Compact administrator for this state.          Sec. 1604.003.  RULES. The Texas Commission of Licensing   and Regulation may adopt rules necessary to implement this chapter.          SECTION 2.  This Act takes effect September 1, 2026.