First Regular Session H.B. 2049
PROPOSED
SENATE AMENDMENTS TO H.B. 2049
(Reference to House engrossed bill)
Strike everything after the enacting clause and insert:
"Section 1. Title 32, chapter 5, Arizona Revised Statutes, is amended by adding article 7, to read:
ARTICLE 7. COSMETOLOGY LICENSURE COMPACT
32-581. Definitions
In this article, unless the context otherwise requires:
1. "Active duty military" means any individual in full-time duty status in the active uniformed service of the United States, including members of the national guard and reserve.
2. "Adverse action" means any administrative, civil, equitable or criminal action allowed by a member state's laws that 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.
3. "Alternative program" means a nondisciplinary monitoring or prosecutorial diversion program approved by a member state's state licensing authority.
4. "Authorization to practice" means a legal authorization associated with a multistate license allowing the practice of cosmetology in that remote state that is subject to the enforcement jurisdiction of the state licensing authority in that remote state.
5. "Background check" means the submission of information for an applicant for the purpose of obtaining that applicant's criminal history record information, as defined in 28 Code of Federal Regulations section 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.
6. "Charter member state" means member states that have enacted legislation to adopt this compact where the legislation predates the effective date of this compact as described in section 32-596.
7. "Commission" or "cosmetology licensure compact commission" means a government agency whose membership consists of all states that have enacted this compact and that operates as an instrumentality of the member states.
8. "Cosmetologist" means an individual who is licensed in the individual's home state to practice cosmetology.
9. "Cosmetology", "cosmetology services" and "practice of cosmetology" mean the care and services provided by a cosmetologist as set forth in the member state's statutes in the state where the services are being provided.
10. "Current significant investigative information" means either of the following:
(a) 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.
(b) Information that indicates 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.
11. "Data system" means a repository of information about licensees, including license status, investigative information and adverse actions.
12. "Encumbrance" means a revocation or suspension of, or any limit on, the full and unrestricted practice of cosmetology by a state licensing authority.
13. "Executive committee" means a group of delegates elected or appointed to act on behalf of, and within the powers granted to the group by, the commission.
14. "Home state" means the member state that is a licensee's primary state of residence and where the licensee holds an active license to practice cosmetology, and the license does not have an adverse action restricting the practice of cosmetology or have an adverse action has been reported to the commission.
15. "Investigative information" means information, records or documents received or generated by a state licensing authority pursuant to an investigation or other inquiry.
16. "Jurisprudence requirement" means the assessment of an individual's knowledge of the laws governing the practice of cosmetology in a state.
17. "Licensee" means an individual who currently holds a license from a member state to practice as a cosmetologist.
18. "Member State" means any state that has adopted this compact.
19. "Multistate license" means a license that is issued and subject to the enforcement jurisdiction of the state licensing authority in a licensee's home state, that authorizes the licensee to practice cosmetology in member states and that includes authorizations for the licensee to practice cosmetology in all remote states pursuant to this compact.
20. "Remote state" means any member state other than the licensee's home state.
21. "Single-state license" means a cosmetology license issued by a member state that authorizes the practice of cosmetology only within the issuing state and does not include any authorization outside of the issuing state.
22. "State" means a state, territory or possession of the United States and the District of Columbia.
23. "State licensing authority" means a member state's regulatory body that is responsible for issuing cosmetology licenses or otherwise overseeing the practice of cosmetology in that state.
32-582. Member state requirements
A. To be eligible to join this compact and to maintain eligibility as a member state, a state must do all of the following:
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 licensees within that state to pass a cosmetology competency examination before being licensed to provide cosmetology services to the public in that state.
4. Require that licensees satisfy educational or training requirements in cosmetology before being licensed to provide cosmetology services to the public in that state.
5. Implement procedures, including the submission of information by applicants for the purpose of obtaining an applicant's background check, for considering one or more of the following categories of information from applicants for licensure:
(a) Criminal history.
(b) Disciplinary history.
(c) Background check.
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. In compliance with the terms of this compact and rules of the commission, Notify the commission and other member states 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 rules that are enacted by the commission to administer this compact.
10. Accept licensees from other member states pursuant to this article.
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. A single-state license granted pursuant to this subsection shall not be recognized as granting these individuals a multistate license to provide services in any other member state.
D. this compact does not 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 THE licensee to practice cosmetology in each member state.
F. The commission MAY NOT define the educational or professional requirements for a licenseE to practice cosmetology. The member states retain sole jurisdiction over the provision of these requirements.
32-583. Multistate licenses
A. To be eligible to apply to the state licensing authority of a licensee's home state for an initial multistate license under this compact, a licensee must hold an active and unencumbered single-state license to practice cosmetology in the licensee's home state.
B. On receiving an application for a multistate license, according to commission rules, 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 commission rule, the state licensing authority that has received the application, within a reasonable time, shall grant a multistate license to that applicant and inform all member states of the grant of the 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 of cosmetology as though that licensee held a single-state license to practice cosmetology in each member state, subject to the restrictions under this article.
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 do all of the following:
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 the commission may require by rule.
3. Comply with all other requirements regarding multistate licenses the commission may provide by rule.
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 subjects 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.
32-584. Reissuance of a multistate license by a new home state
A. A licensee may hold a multistate license that is issued by the licensee's home state in only one member state at a time.
B. If a licensee changes the licensee's home state by moving between two member states:
1. The licensee shall immediately apply for the reissuance of the licensee's multistate license in the licensee's new home state. The licensee shall pay all applicable fees and notify the previous home state in accordance with the commission's rules.
2. On 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 this compact and the commission's rules. The multistate license that is issued by the previous home state shall be deactivated and all member states shall be notified in accordance with the commission's rules
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 applicant's 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, the licensee is subject to the new home state requirements for the issuance of a single-state license in that state.
C. If a licensee changes the licensee's primary state of residence by moving from a member state to a nonmember state, or from a nonmember state to a member state, the licensee is subject to the state requirements for the issuance of a single-state license in the new home state.
D. This compact does not interfere with a licensee's ability to hold a single-state license in multiple states. For the purposes of this compact, a licensee may have only one home state and only one multistate license.
E. This compact does not interfere with the requirements established by a member state for the issuance of a single-state license.
32-585. Authority of this compact commission and member state licensing authorities
A. This compact and any commission rule may not be construed to limit, restrict or in any way reduce the ability of a member state to enact and enforce laws or rules related to the practice of cosmetology in that state, if those laws or rules are consistent 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 is the sole responsibility of the state in which cosmetology services are provided. Accordingly, each member state's state licensing authority is responsible for receiving complaints about individuals practicing cosmetology in that state and for communicating all relevant investigative information about any adverse action to the other member states through the data system in addition to any other methods the commission may require by rule.
32-586. Adverse actions
A. A licensee's home state has 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 may:
1. Take adverse action against a licensee's authorization to practice cosmetology through the multistate license in that member state if both of the following apply:
(a) Only the licensee's home state may take adverse action against the multistate license issued by the home state.
(b) For the purposes of taking adverse action, the home state's state licensing authority gives the same priority and effect to reported conduct received from a remote state as it would if the conduct had occurred within the home state and the home state applies 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 the licensee's primary state of residence during the course of the investigation. The state licensing authority may report the results of the investigation to the commission through the data system as described in this article.
4. Issue subpoenas for both hearings and investigations that require the attendance and testimony of witnesses and 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 fees and other fees required by the service statutes of the state in which the witnesses or evidence is located.
5. If otherwise allowed 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 of a cosmetologist who changes the licensee's primary state of residence during the course of the investigation. The home state may take appropriate action and shall promptly report the conclusions of the investigation 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. This compact does not 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. 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.
H. Member states shall share any investigative, litigation or compliance materials in furtherance of any joint or individual investigation initiated under this compact.
32-587. Active duty military and their spouses
An active duty military personnel or the spouse of an active duty military personnel shall designate a home state where the individual has a current license to practice cosmetology in good standing. The individual may retain the individual's home state designation during any period of service when that individual or the individual's spouse is on active duty assignment.
32-588. Establishment and operation of the cosmetology licensure compact commission; powers and duties
A. The member states create and establish a joint government agency known as the cosmetology licensure compact commission whose membership consists of all member states that have enacted this compact. The commission is an instrumentality of the member states acting jointly and is not an instrumentality of any one state. The commission shall come into existence on or after the effective date of this compact as set forth in section 32-596.
B. Each member state shall have and be limited to one delegate selected by that member state's state licensing authority. The delegate shall be an administrator of the state licensing authority of the member state or the administrator's designee.
C. The commission shall establish by rule or bylaw a term of office for delegates and by rule or bylaw may establish term limits.
D. The commission may recommend removal or suspension of any delegate from office.
E. A member state's state licensing authority shall fill any vacancy of its delegate occurring on the commission within sixty days after the vacancy.
F. Each delegate is entitled to one vote on all matters that are voted on by the commission.
G. 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, videoconference or other similar electronic means.
H. The commission may:
1. Establish the commission's fiscal year.
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 actions that are consistent with this compact, the commission's rules and the bylaws.
6. Initiate and conclude legal proceedings or actions in the name of the commission, if the standing of any state licensing authority to sue or be sued under applicable law is not 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 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 this 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 granting a multistate license and, as may be established by commission rule, charge the licensee a multistate license renewal fee for each renewal period. This paragraph does not 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 granting a multistate license.
13. Assess and collect fees.
14. Accept any appropriate gifts, donations, grants of monies, other sources of revenue, equipment, supplies, materials and services and receive, use and dispose of the same except 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 in the property.
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 monies.
19. Appoint committees, including standing committees, composed of members, state regulators, state legislators or their representatives, consumer representatives and 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 chairperson, vice chairperson, secretary and treasurer and other officers of the commission as provided in the commission's bylaws.
22. Establish and elect an executive committee, including a chairperson and a vice chairperson.
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 this compact.
25. Perform other functions as may be necessary or appropriate to achieve the purposes of this compact.
I. The commission shall adopt and provide an annual report to the member states.
32-589. Executive committee; duties; members; meetings
A. The executive committee may act on behalf of the commission according to the terms of this compact. The powers, duties and responsibilities of the executive committee include:
1. Overseeing the day-to-day activities of the administration of this compact, including compliance with the provisions of this compact and the commission's rules and bylaws, and other duties as deemed necessary.
2. Recommending to the commission changes to the rules or bylaws, changes to this article, fees charged to compact member states, fees charged to licensees and other fees.
3. Ensuring that compact administration services are appropriately provided, including by contract.
4. Preparing and recommending the budget.
5. Maintaining financial records on the commission's behalf.
6. Monitoring compact compliance of member states and providing compliance reports to the commission.
7. Establishing additional committees as necessary.
8. 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.
9. Performing other duties as provided in the commission's rules or bylaws
B. The executive committee shall be composed of up to seven voting members as follows:
1. The chairperson and vice chairperson of the commission and any other members of the commission who serve on the executive Committee shall be voting members of the executive committee.
2. Other than the chairperson and vice chairperson, 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 section.
D. The Commission may remove any member of the executive committee as provided in the commission's bylaws.
E. The executive committee shall meet at least annually. Annual executive committee meetings and 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, nonpublic session of a public meeting when dealing with any matter listed in section 32-590, subsection D.
F. The executive committee shall give five business days' advance notice of its public meetings by posting on its website and as determined to provide notice to persons with an interest in the public matters that the executive committee intends to address at those meetings.
G. The executive committee may hold an emergency meeting when acting for the commission to do any of the following:
1. Meet an imminent threat to public health, safety or welfare.
2. Prevent a loss of commission or participating state monies.
3. Protect public health and safety.
32-590. Commission meetings
A. All meetings of the commission that are not closed pursuant to subsection D of this section shall be open to the public. Notice of public meetings shall be posted on the commission's website at least thirty days before the public meeting.
B. Notwithstanding subsection D of this section, the commission may convene an emergency public meeting by providing at least twenty-four hours' prior notice on the commission's website and by any other means as provided in the commission's rules. The commission may dispense with notice of proposed rulemaking under section 32-594, subsection L. The commission's legal counsel shall certify that one of the reasons justifying an emergency public meeting has been met.
C. 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, videoconference or other electronic means, the notice shall include the mechanism for access to the meeting.
D. The commission may convene in a closed, nonpublic meeting for the commission to discuss any of the following:
1. Noncompliance of a member state with its obligations under this compact.
2. 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.
3. Current or threatened discipline of a licensee by the commission or by a member state's state licensing authority.
4. Current, threatened or reasonably anticipated litigation.
5. Negotiation of contracts for the purchase, lease or sale of goods, services or real estate.
6. The accusation of any person of a crime or the formal censure of any person.
7. Trade secrets or commercial or financial information that is privileged or confidential.
8. Information of a personal nature for which disclosure would constitute a clearly unwarranted invasion of personal privacy.
9. Investigative records compiled for law enforcement purposes.
10. 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 this compact.
11. Legal Advice.
12. Any matter specifically exempted from disclosure to the public by federal or member state law.
13. Any other matter as adopted by the commission by rule.
E. 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. The reference shall be recorded in the minutes.
F. 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 for the actions, including a description of the views expressed. All documents considered in connection with an action shall be identified in the 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.
32-591. Financing of the commission; assessments; annual review
A. The commission shall pay, or provide for the payment of, the reasonable expenses of its establishment, organization and ongoing activities.
B. The commission may accept any and all appropriate sources of revenue, donations and grants of monies, equipment, supplies, materials and services.
C. 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 on a formula that the commission adopts by rule.
D. The commission may not incur obligations of any kind before securing the monies adequate to meet the obligations. The commission may not pledge the credit of any member states, except by and with the authority of the member state.
E. The commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the commission are subject to the financial review and accounting procedures established under its bylaws. All receipts and disbursements of monies handled by the commission are 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 commission's annual report.
32-592. Qualified immunity, defense and indemnification
A. The members, officers, executive director, employees and representatives of the commission are 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, except that this subsection does not protect any such person from suit or liability for any damage, loss, injury or liability caused by the intentional or wilful or wanton misconduct of that person. The procurement of insurance of any type by the commission does not in any way compromise or limit the immunity granted pursuant to this section.
B. The commission shall defend any member, officer, executive director, employee or 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 if the actual or alleged act, error or omission did not result from that person's intentional or wilful or wanton misconduct. This subsection does not prohibit the person against whom the claim is made from retaining counsel at the person's own expense.
C. The commission shall indemnify and hold harmless any member, officer, executive director, employee or 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 if the actual or alleged act, error or omission did not result from the intentional or wilful or wanton misconduct of that person.
D. This section does not limit the liability of any licensee for professional malpractice or misconduct that is governed solely by any other applicable state laws.
E. This compact does not 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 (15 United States Code sections 1 through 38) and the Clayton Act (15 United States code sections 12 through 27) or any other State or federal antitrust or anticompetitive law.
F. This compact is not a waiver of sovereign immunity by the member states or by the commission.
32-593. Data system
A. The commission shall provide for the development, maintenance, operation and use of a coordinated database and reporting system.
B. The commission shall assign each applicant for a multistate license a unique identifier, as determined by commission rules.
C. Notwithstanding any other law, a member state shall submit a uniform data set to the data System on all individuals to whom this compact applies as required by commission rules, including:
1. Identifying information.
2. Licensure data.
3. Adverse actions against a license and information related to the adverse actions.
4. Nonconfidential information related to alternative program participation, the beginning and ending dates of the participation and other information related to the participation.
5. Any denial of application for licensure and the reason for the denial, excluding the reporting of any criminal history record information if it is prohibited by law.
6. The existence of investigative information.
7. The existence of current significant investigative information.
8. Other information that may facilitate the administration of this compact or the protection of the public, as determined by commission rules.
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 the commission's agent, constitute the authenticated business records of the commission and are 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 is available only to other member states.
F. It is the responsibility of the member states to monitor the data system to determine whether adverse action has been taken against a licensee or license applicant. Adverse Action information pertaining to a licensee or license applicant in any member state may be available to any other member state.
G. Member states that contribute 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.
32-594. Rulemaking; notice
A. The commission shall adopt reasonable rules to effectively and efficiently implement and administer this compact. A rule is invalid and haS 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 this compact or the powers granted pursuant to this article, or based on another applicable standard of review.
B. Commission rules have the force of law in each member state, except that if commission rules 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 commission rules are ineffective in that state to the extent of the conflict.
C. The commission shall exercise its rulemaking powers pursuant to the criteria set forth in this section and the rules adopted pursuant to this section. Rules 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 enacting a statute or resolution in the same manner used to adopt this compact within four years after the date of adoption of the rule, the rule has no further force and effect in any member state or to any state applying to participate in this compact.
E. Rules shall be adopted at a regular or special meeting of the commission.
F. Before adopting 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. Before adopting a proposed rule, and at least thirty days before the meeting at which the commission will hold a public hearing on the proposed rule, the commission shall provide a notice of proposed rulemaking as follows:
1. On the commission's website or other publicly accessible platform.
2. To persons who have requested notice of the commission's notices of proposed rulemaking.
3. In such other ways as the commission specifies by rule.
H. The notice of proposed rulemaking shall include:
1. The time, date and location of the public hearing at which the commission will hear public comments on the proposed rule and, if different, the time, date and location of the meeting at which the commission will consider and vote on the proposed rule.
2. If the hearing is held via telecommunication, videoconference 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 for the proposed rule.
4. A request for comments on the proposed rule from any interested person.
5. The manner in which interested persons may submit written comments.
I. All hearings shall 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. This section does not require a separate hearing on each rule. Rules may be grouped for the commission's convenience at hearings required by this section.
K. By a majority vote of all members, the commission shall take final action on the proposed rule based on the rulemaking record and the full text of the rule.
L. The commission may adopt changes to the proposed rule if the changes do not enlarge the original purpose of the proposed rule.
M. The commission shall provide an explanation of the reasons for substantive changes that are made to the proposed rule as well as reasons for substantive changes that are not made but that were recommended by commenters.
N. The commission shall determine a reasonable effective date for the rule. Except for an emergency rule as provided in subsection O of this section, the effective date of the rule shall be at least forty-five days after the commission issues the notice that the commission adopted or amended the rule.
O. On determination that an emergency exists, the commission may consider and adopt an emergency rule with at least a five-day notice, with an opportunity to comment, provided that the usual rulemaking procedures provided in this compact are retroactively applied to the rule as soon as reasonably possible, and not later than ninety days after the rule's effective date. For the purposes of this subsection, 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 monies.
3. Meet a deadline that is established by federal law to adopt a rule.
4. Protect public health and safety.
P. 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 commission's website. The revision is subject to challenge by any person for a period of thirty 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 before the end of the notice period. If a challenge is not made, the revision takes effect without further action. If the revision is challenged, the revision may not take effect without the commission's approval.
Q. A member state's rulemaking requirements do not apply under this compact.
32-595. Oversight, dispute resolution and enforcement; defaulting states; termination from compact
A. 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 this compact.
B. 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. This subsection does not affect or limit the selection or propriety of venue in any action against a licensee for professional malpractice or misconduct or in any similar matter.
C. The commission may receive service of process in any proceeding regarding the enforcement or interpretation of this compact and shall have standing to intervene in such a proceeding for all purposes. Failure to provide the commission service of process renders a judgment or order void.
D. If the commission determines that a member state has defaulted in the performance of its obligations or responsibilities under this compact or the adopted 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.
E. The commission shall provide a copy of the notice of default to the other member states.
F. If a state that is in default fails to cure the default, the defaulting state may be terminated from this compact on 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.
G. Termination of membership in this compact shall be imposed only after all other means of securing compliance have been exhausted. The commission shall give notice of intent to suspend or terminate to the governor of the defaulting state, the majority and minority leaders of the defaulting state's legislature, the defaulting state's state licensing authority and the state licensing authority of each of member state.
H. 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.
I. On the termination of a state's membership from this compact, the state shall immediately provide notice of the termination to all licensees who hold a multistate license within that state. The terminated state shall continue to recognize all licenses granted pursuant to this compact for at least one hundred eighty days after the date of the notice of termination.
J. The commission shall not bear any costs related to a state that is found to be in default or that has been terminated from this compact, unless agreed to in writing between the commission and the defaulting State.
K. The defaulting state may appeal the commission's action 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 the litigation, including reasonable attorney fees.
L. On a member state's request, the commission shall attempt to resolve disputes related to this compact that arise among member states and between member and nonmember states.
M. The commission shall adopt a rule providing for both mediation and binding dispute resolution for disputes as appropriate.
N. The commission, in the reasonable exercise of its discretion, shall enforce this compact and the commission's rules.
O. By majority vote as provided by commission rule, the commission may initiate legal action against a defaulting member state 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 this compact and its adopted rules. The relief sought may include both injunctive relief and damages. If judicial enforcement is necessary, the prevailing party shall be awarded all costs of the litigation, including reasonable attorney fees. The remedies described in this subsection are not the exclusive remedies of the commission. The commission may pursue any other remedies available under federal law or the defaulting member state's law.
P. 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 this compact and its adopted rules. The relief sought may include both injunctive relief and damages. If judicial enforcement is necessary, the prevailing party shall be awarded all costs of the litigation, including reasonable attorney fees.
Q. Only a member state may enforce this compact against the commission.
32-596. Effective date and amendment of compact; withdrawal of member state
A. This compact is effective on the date on which this compact is enacted into law in the seventh member state.
B. On or after the effective date of this 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.
C. A charter member state whose enactment is found to be materially different from the model compact statute is entitled to the default process set forth in section 32-595.
D. If any member state is later found to be in default or is terminated or withdraws from this compact, the commission remains in existence and this compact remains in effect even if the number of member states is less than seven.
E. Member states enacting this compact subsequent to the charter member states are subject to the commission's approval that their enactments are not materially different from the model compact statute and that they qualify for participation in this compact.
F. All actions taken for the commission's benefit or in furtherance of the purposes of the administration of this compact before the effective date of this compact or the effective date of the commission coming into existence are considered to be actions of the commission unless specifically repudiated by the commission.
G. A state that joins this compact is subject to the commission's rules and bylaws as they exist on the date on which this compact becomes law in that state. A rule that has been previously adopted by the commission shall have the full force and effect of law on the day this compact becomes law in that state.
H. A member state may withdraw from this compact by enacting a statute repealing that state's enactment of this compact. A member state's withdrawal does not take effect until one hundred eighty days after enactment of the repealing statute. Withdrawal does 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 before the effective date of withdrawal. On the enactment of a statute withdrawing from this compact, a state shall immediately provide notice of the withdrawal to all licensees within that state. Notwithstanding any subsequent statutory enactment to the contrary, the withdrawing state shall continue to recognize all licenses granted pursuant to this compact for at least one hundred eighty days after the date of the notice of withdrawal.
I. This compact does not invalidate or prevent any licensure agreement or other cooperative arrangement between a member state and a nonmember state that does not conflict with this compact.
J. This compact may be amended by the member states. An amendment to this compact does not become effective and binding on any member state until it is enacted into the laws of all member states.
32-597. Construction and severability
A. The compact and the commission's rulemaking authority shall be liberally construed to effectuate the purposes, implementation and administration of this compact. Provisions of this compact expressly authorizing or requiring the adoption of rules do not limit the commission's rulemaking authority solely for those purposes.
B. The provisions of this compact are 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, of a state seeking participation in this compact or of the United States, or the applicability 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 to any other government, agency, person or circumstance is not affected.
C. Notwithstanding subsection B of this section, the commission may deny a state's participation in the compact or, in accordance with section 32-595, may terminate a member state's participation in the compact if the commission determines that a constitutional requirement of a member state is a material departure from this compact. Otherwise, if this compact is held to be contrary to the constitution of any member state, this 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.
32-598. Consistent effect and conflict with other states
A. This article does not prevent or inhibit the enforcement of any other law of a member state that is consistent with this compact.
B. Any laws in a member state that conflict with this compact are superseded to the extent of the conflict.
C. All permissible agreements between the commission and the member states are binding in accordance with their terms.
32-599. Applicability
This article applies only if at least seven states enact language that is substantially similar to this article.
Sec. 2. Purpose; objectives; definitions
A. The purpose of this act 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 that 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.
B. The compact is designed to achieve the following objectives and the member states ratify the same intentions by subscribing to the following:
1. Provide opportunities for interstate practice by cosmetologists who meet uniform requirements for multistate licensure.
2. Enhance the abilities of member states to protect public health and safety and prevent fraud and unlicensed activity within the profession.
3. Ensure and encourage cooperation between member states in the licensure and regulation of the practice of cosmetology.
4. Support relocating military members and their spouses.
5. Facilitate the exchange of information between member states related to the licensure, investigation and discipline of the practice of cosmetology.
6. 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.
C. For the purposes of this section:
1. "Compact" means the compact established by title 32, chapter 5, article 7, Arizona Revised Statutes, as added by this act.
2. "Cosmetology" has the same meaning prescribed in section 32-581, Arizona Revised Statutes, as added by this act.
3. "Member states" has the same meaning prescribed in section 32-581, Arizona Revised Statutes, as added by this act.
Sec. 3. Effective date
This act is effective from and after June 30, 2024."
Amend title to conform