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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
bank deposits; technical correction
(NOW:
unemployment insurance; employer; limitations)
(NOW: cosmetology licensure compact)
Purpose
Effective July 1, 2024, adopts the Cosmetology Licensure Compact (Compact) to allow cosmetologists to obtain a multistate license for the practice of cosmetology in other Compact member states.
Background
The seven-member Barbering and Cosmetology Board (Board) enforces sanitary and safety requirements for salons and schools and for the practice of cosmetology, aesthetics, nail technology and hairstyling. The duties of the Board include issuing licenses, administering and grading practical and written examinations and prescribing the minimal school curriculum requirements for cosmetologists, aestheticians, nail technicians, hairstylists and school instructors (A.R.S. §§ 32-502 and 32-504).
The cosmetology
regulatory statutes prescribe processional standards relating to the practice
of cosmetology (A.R.S.
Title 32, Ch. 5). Statute defines cosmetology as one or a
combination of the following practices if they are performed for cosmetic
purposes: 1) massaging, cleansing, stimulating, manipulating exercising,
beautifying or applying oils, creams, antiseptics, clays, lotions or other
preparations, either by hand or by mechanical or electrical appliance;
2) arching eyebrows or tinting eyebrows and eyelashes; 3) removing superfluous
hair by means other than electrolysis or threading; 4) nail technology; and 5)
hairstyling (A.R.S.
§ 32-501).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Member State Requirements
1. Requires a state, to be eligible to join the Compact and maintain eligibility as a member state, to do all of the following:
a) license and regulate cosmetology;
b) have a mechanism or entity in place to receive and investigate complaints about licensees practicing in the state;
c) require licensees within the state to pass a cosmetology competency examination before being licensed to provide cosmetology services to the public in the state;
d) require that licensees satisfy educational or training requirements in cosmetology before being licensed to provide cosmetology services to the public in the state;
e) implement procedures, including the submission of information by applicants for the purpose of obtaining an applicant's background check, for considering criminal history, disciplinary history or a background check;
f) participate in the data system, including through the use of unique identifying numbers;
g) share information related to adverse actions with the Compact Commission (Commission) and other member states, both through the data system or otherwise;
h) 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 practicing licensee;
i) comply with rules that are enacted by the Commission to administer the Compact; and
j) accept licensees from other member states.
2. Allows member states to charge a fee for granting a license to practice cosmetology.
3. Requires individuals not residing in a member state to continue to be able to apply for a member state's single-state license as provided under the laws of each member state.
4. Prohibits a granted single-state license from being recognized as granting individuals a multistate license to provide services in any other member state.
5. Stipulates that the Compact does not affect the requirements established by a member state for the issuance of a single-state license.
6. Requires a multistate license, that is issued to a licensee by a home state to a resident, to be recognized by each member state as authorizing the licensee to practice cosmetology in each member state.
7. Prohibits the Commission from defining the educational or professional requirements for a licensee to practice cosmetology.
8. Stipulates that member states have sole jurisdiction over the educational and professional requirements for a license to practice cosmetology.
Multistate Licenses
9. Requires a licensee to hold an active and unencumbered single-state license to practice cosmetology in the licensee's home state in order to be eligible to apply to the state licensing authority for an initial multistate license under the Compact.
10. Requires a member state's licensing authority, on receiving an application for a multistate license in accordance with Commission rules, to ascertain whether the applicant meets the requirements for a multistate license under the Compact.
11. Requires the state licensing authority within a reasonable time, if an applicant meets the requirements for a multistate license under the Compact and any applicable Commission rule, to:
a) grant a multistate license to the applicant; and
b) inform all member states of the grant of the multistate license.
12. Requires a multistate license to practice cosmetology issued by a member state's licensing authority to 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 prescribed restrictions.
13. Allows a granted multistate license to be effective for a definite period of time, concurrent with the licensure renewal period in the home state.
14. Requires a licensee, to maintain a multistate license under the Compact, to:
a) 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;
b) pay all required fees relate to the application and process any other fees the Commission may require by rule; and
c) comply with all other requirements regarding multistate licenses the Commission may provide by rule.
15. Subjects a licensee practicing in a member state to all scope of practice laws governing cosmetology services in that state.
16. Stipulates that the practice of cosmetology under a multistate license granted in accordance with the 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.
Reissuance of a Multistate License by a New Home State
17. Allows a licensee to hold a multistate license that is issued by the licensee's home state in only one member state at a time.
18. Stipulates that if a licensee changes the licensee's home state by moving between two member states:
a) the licensee must immediately apply for the reissuance of the licensee's multistate license in the licensee's new home state, pay all applicable fees and notify the previous home state in accordance with the Commission's rules;
b) the home state, on receipt of an application to reissue a multistate license, must verify that the multistate license is active, unencumbered and eligible for reissuance under the terms of the Compact and Commission's rules;
c) the home state, if required for initial licensure, may require a background check as specified in the laws of the state or the applicant's compliance with any jurisprudence requirements of the new home state; and
d) the licensee, if a licensee does not meet the requirements set forth in the Compact for reissuance of a multistate license, is subject to the new home state requirements for issuance of a single-state license in that state.
19. Stipulates that a licensee, 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, is subject to the state requirements from the issuance of a single-state license in the new home state.
20. Asserts that the Compact does not interfere with:
a) a licensee's ability to hold a single-state license in multiple states; or
b) the requirements established by a member state for the issuance of a single-state license.
21. Allows a licensee, for the purposes of the Compact, to have only one home state and multistate license.
Authority of the Commission and State Licensing Authorities
22. Prohibits the Compact and any Commission rule from being 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 the Compact.
23. Requires a member state's licensing authority, insofar as practical, to cooperate with the Commission and with each entity exercising independent regulatory authority over the practice of cosmetology according to the provisions of the Compact.
24. Asserts that discipline is the sole responsibility of the state in which cosmetology services are provided.
25. Stipulates that each member state's licensing authority is responsible for receiving complaints about relevant investigative information about any adverse actions to the other member states through the data system in additional to any other methods the Commission may require by rule.
Adverse Actions
26. Asserts that a licensee's home state has exclusive power to impose an adverse action against a licensee's multistate license issued by the home state.
27. Allows a home state to take adverse action on a multistate license based on the investigative information, current significant investigative information or adverse action of a remote state.
28. Allows each remote state's licensing authority, in addition to the powers conferred by state law, to:
a) 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:
i. only the licensee's home state may take adverse action against the multistate license issued by the home state; and
ii. the home state's licensing authority, for the purpose of taking adverse action, 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.
b) issue cease and desist orders or impose an encumbrance on a licensee's authorization to practice within that member state;
c) complete any pending investigations of a licensee who changes the licensee's primary state of residence during the course of the investigation, the results of which may be reported to the Commission through the data system;
d) issue subpoenas for both hearings and investigations that require attendance and testimony of witnesses and the production of evidence;
e) recover from the affected licensee, if otherwise allowed by state law, the cost of investigations and disposition of cases resulting from any adverse action taken against that licensee; and
f) take adverse action against the licensee's authorization to practice in that state based on the factual findings of another remote state.
29. Requires a licensee's home state to complete any pending investigation of a cosmetologist who changes the licensee's primary state of residence during the course of the investigation.
30. Allows the home state to take appropriate action.
31. Requires the home state to promptly report the conclusions of the investigation to the data system.
32. Requires the licensee's authorization to practice in all other member states, if an adverse action is taken by the home state against a licensee's multistate license, to be deactivated until all encumbrances have been removed from the home state license.
33. Requires all home state disciplinary orders that impose an adverse action against a licensee's multistate license to include a statement that the cosmetologist's authorization to practice is deactivated in all member states during the pendency of the order.
34. Stipulates that the Compact does not override a member state's authority to accept a licensee's participation in an alternative program in lieu of adverse actions.
35. Requires a licensee's multistate license to be suspended for the duration of the licensee's participation in any alternative program.
36. Allows a member state, in addition to the authority granted to the member state by its respective scope of practice laws or other applicable state law, to participate with other member states in joint investigations of licensees.
Active Military Members
37. Requires an active military member or the member's spouses to designate a home state where the individual has a current license to practice cosmetology in good standing.
38. Allows the individual to retain the individual's home state designation during any period of service when that individual or individual's spouse is on active-duty assignment.
Compact Commission
39. Stipulates that the members states create and establish a joint government agency known as the Commission whose membership consist of all member states that have enacted the Compact.
40. Asserts that the Commission is an instrumentality of the member states acting jointly and is not an instrumentality of any one state.
41. Requires the Commission to come into existence on or after the effective date of the Compact.
42. Requires each member state to have and be limited to one delegate selected by the member state's licensing authority.
43. Requires the delegate to be an administrator of the state licensing authority of the member state or the administrator's designee.
44. Requires the Commission to establish by rule or bylaw a term of office for delegates.
45. Allows the Commission to establish by rule or bylaw term limits.
46. Allows the Commission to recommend removal or suspension of any delegate from office.
47. Requires the Commission to fill any vacancy of its delegate occurring on the Commission within 60 days after the vacancy.
48. Entitles each delegate to one vote on all matters that are voted on by the Commission.
49. Requires the Commission to meet at least once during each calendar year.
50. Allows additional meetings to be held set forth in the bylaws.
51. Allows the Commission to meet by telecommunication, videoconference or other similar electronic means.
52. Allows the Commission to:
a) establish the Commission's fiscal year;
b) establish code of conduct and conflict of interest policies;
c) adopt rules and bylaws;
d) maintain its financial records in accordance with the bylaws;
e) meet and take actions that are consistent with the Compact, the Commission's rules and bylaws;
f) 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 in not affected;
g) 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;
h) purchase and maintain insurance and bonds;
i) borrow, accept or contract for services of personnel, including employees of a member state;
j) conduct an annual financial review;
k) 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;
l) charge a fee, as set forth in the Commission's rules, to a licensee for granting a multistate license or multistate license renewal fee for each renewal period, including a fee for the jurisprudence requirement if a member state imposes such a requirement for granting a multistate license;
m) assess and collect fees;
n) 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 must avoid any appearance of impropriety or conflict of interest;
o) lease, purchase, retain, own, hold, improve or use any property, real, personal or mixed, or any undivided interest in the property;
p) sell, convey, mortgage, pledge, lease, exchange, abandon or otherwise dispose of any property, real, personal or mixed;
q) establish a budget and make expenditures;
r) borrow monies;
s) 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 the Compact and the bylaws;
t) provide and receive information from, and cooperate with, law enforcement agencies;
u) elect a chairperson, vice chairperson, secretary and treasurer and other officers of the Commission as provided in the Commission's bylaws;
v) establish and elect an Executive Committee, including a chairperson and vice chairperson;
w) adopt and provide to the member states an annual report;
x) 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
y) perform other functions as may be necessary or appropriate to achieve the purposes of the Compact.
53. Requires the Commission to adopt and provide an annual report to the member states.
Executive Committee
54. Allows the Executive Committee to act on behalf of the Commission according to the terms of the Compact.
55. Stipulates that the Executive Committee's powers, duties and responsibilities include:
a) overseeing the day-to-day activities of the administration of the Compact, including compliance with the provisions of the Compact and the Commission's rules and bylaws, and other duties as deemed necessary;
b) recommending to the Commission changes to the rules or bylaws, changes to the Compact, fees charged to Compact member states, fees charged to licensees and other fees;
c) ensuring that Compact administration services are appropriately provided, including by contract;
d) preparing and recommending the budget;
e) maintaining financial records on the Commission's behalf;
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 or bylaws and exercising any other powers and duties expressly reserved to the Commission by rule or bylaw; and
i) performing other duties as provided in the Commission's rules or bylaws.
56. Requires the Executive Committee to be composed of up to seven voting members as follows:
a) the Chairperson and Vice Chairperson of the Commission and any other members of the Commission who serve on the Executive Committee; and
b) three members from the current membership of the Commission elected by the Commission, other than the chairperson, vice chairperson, secretary or treasurer.
57. Allows the Commission to elect ex-officio, nonvoting members from a recognized national cosmetology professional association as approved by the Commission.
58. Requires the Commission's bylaws to 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 of the Executive Committee.
59. Allows the Commission to remove any member of the Executive Committee as provided in the Commission's bylaws.
60. Requires the Executive Committee to meet at least annually.
61. Requires annual Executive Committee meetings, and any Executive Committee meeting at which it does not take or intent to take formal action on a matter for which a Commission vote would otherwise be required, to be open to the public.
62. Allows the Executive Committee to meet in a closed, nonpublic session of a public meeting when dealing with:
a) noncompliance 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) the accusation of any person of a crime or the formal censure of any person;
g) trade secrets or commercial or financial information that is privileged or confidential;
h) information of a personal nature for which 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 the other committee charged with responsibility of investigation or determination of compliance issues in accordance with the Compact.
k) legal advice;
l) any matter specifically exempted from disclosure to the public by federal or member state law; or
m) any other matter as adopted by the Commission by rule.
63. Requires the Executive Committee to 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.
64. Allows the Executive Committee to hold an emergency meeting when acting for the Commission to do any of the following:
a) meet an imminent threat to public health, safety or welfare;
b) prevent a loss of Commission or participating state monies; or
c) protect public health and safety.
Commission Meetings
65. Requires all meetings of the Commission to be open to the public.
66. Requires notice of public meetings to be posted on the Commission's website at least 30 days before the public meeting.
67. Allows the Commission to convene an emergency public meeting by providing at least 24 hours' prior notice on the Commission's website and by any other means as provided in the Commission's rules.
68. Allows the Commission to dispense with notice of proposed rulemaking if the changes do not enlarge the original purpose of the proposed rule.
69. Requires the Commission's legal counsel to certify that one of the reasons justifying an emergency public meeting has been met.
70. Requires notice of all Commission meetings to provide the time, date and location of the meeting and the mechanism to access the meeting, if the meeting is to be held or accessible via telecommunication, videoconference or other electronic means.
a) noncompliance 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) the accusation of any person of a crime or the formal censure of any person;
g) trade secrets or commercial or financial information that is privileged or confidential;
h) information of a personal nature for which 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 the other committee charged with responsibility of investigation or determination of compliance issues in accordance with the Compact.
k) legal advice;
l) any matter specifically exempted from disclosure to the public by federal or member state law; or
m) any other matter as adopted by the Commission by rule.
72. Requires the presiding officer, if a meeting or a portion of a meeting is closed, to state that the meeting will be closed and reference each relevant exempting provision.
73. Requires the reference to be recorded in the minutes.
74. Requires the Commission to:
a) keep minutes that fully and clearly describe all matters discussed in a meeting; and
b) provide a full and accurate summary of actions taken and the reasons for the actions, including a description of the views expressed.
75. Requires all documents considered in connection with an action to be identified in the minutes.
76. Requires all minutes and documents of a closed meeting to remain under seal, subject to release only by:
a) a majority vote of the Commission; or
b) order of a court of competent jurisdiction.
Commission Financing
77. Requires the Commission to pay, or provide for the payment of, the reasonable expenses of its establishment, organization and ongoing activities.
78. Allows the Commission to accept all appropriate sources of revenue, donations and grants of monies, equipment, supplies, materials and services.
79. Allows the Commission to levy on and collect an annual assessment from each member state and impose fees on licensees of member states to who it grants a multistate license to cover the cost of the operations and activities of the Commission and its staff, in a total amount sufficient to cover its annual budget.
80. Requires the aggregate annual assessment amount for member states to be allocated based on a formula that the Commission adopts by rule.
81. Prohibits the Commission from incurring obligations of any kind before securing the monies adequate to meet the obligations.
82. Prohibits the Commission from pledging the credit of any member states, except by and with the authority of the member state.
83. Requires the Commission to keep accurate accounts of all receipts and disbursements.
84. Stipulates that:
a) the receipts and disbursements of the Commission are subject to the financial review and accounting procedures established under its bylaws; and
b) all receipts and disbursements of monies handled by the Commission are subject to annual financial review by a certified or licensed public accountant.
85. Requires the report of the financial review by a certified or licensed public accountant to be included in and become part of the Commission's annual report.
Qualified Immunity
86. Grants the members, officers, executive director, employees and representatives of the Commission immunity from suit and liability, both personally and in their official capacity.
87. Specifies that immunity is for any claim for damage to or loss of property or personal injury or other civil liability cause 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.
88. Stipulates that the immunity does not protect any person from suit or liability from any damage, loss, injury or liability caused by the intentional or wilful or wanton misconduct of that person.
89. Asserts that the procurement of insurance of any type by the Commission does not in any way compromise or limit the immunity granted.
90. Requires the Commission to defend any member, officer, executive director, employee or representative of the Commission in any civil action seeking to impose liability for a claim, if the act or alleged act, error or omission did not result from that person's intentional or wilful or wanton misconduct.
91. Stipulates that the person against whom a claim is made is not prohibited from retaining counsel at the person's own expense.
92. Requires the Commission to indemnify and hold harmless any member, officer, executive director, employee or representative of the Commission for the amount of any settlement or judgement obtained against that person if the actual or alleged act, error or omission did not result from the intentional or wilful or wanton misconduct of that person.
93. Stipulates that:
a) the liability of any licensee for professional malpractice or misconduct is not limited and is governed solely by any other applicable state laws;
b) the 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 federal Sherman Act and Clayton Act or any other state or federal antitrust or anticompetitive law; and
c) the Compact is not a waiver of sovereign immunity by the member states or by the Commission.
Data System
94. Requires the Commission to provide for the development, maintenance, operation and use of a coordinated database and reporting system.
95. Requires the Commission to assign each applicant for a multistate license a unique identifier, as determined by Commission rule.
96. Requires a member state to submit a uniform data set to the data system on all individuals to whom the Compact applies as required by Commission rules, including:
a) identifying information;
b) licensing data;
c) adverse actions against a license and information related to the adverse actions;
d) nonconfidential information related to alternative program participation, the beginning and ending dates of the participation and other information related to the participation;
e) 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;
f) the existence of investigative information;
g) the existence of current significant investigative information; and
h) other information that may facilitate the administration of the Compact or the protection of the public as determined by Commission rule.
97. Stipulates that the records and information provided to a member state in accordance with the Compact or through the data system, when certified by the Commission or the Commission's agent:
a) constitute the authenticated business records of the Commission; and
b) are entitled to any associated hearsay exemption in any relevant judicial, quasi-judicial or administrative proceedings in a member state.
98. Asserts that the existence of current significant investigative information and investigative information pertaining to a licensee in any member state is available only to other member states.
99. Asserts that 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.
100. Stipulates that adverse action information pertaining to a licensee or license applicant in any members state will be available to any other member state.
101. Allows member states that contribute information to the data system to designate information that may not be shared with the public without the express permission of the contributing state.
102. Requires any information submitted to the data system that is subsequently expunged in accordance with federal law or the laws of the member state contributing the information to be removed from the data system.
Rulemaking
103. Requires the Commission to adopt reasonable rules to effectively and efficiently implement and administer the Compact.
104. Stipulates that 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 the Compact or the powers granted in accordance with the Compact or based on another applicable standard of review.
105. Asserts that Commission rules have the force of law in each member state, except that if Commission rules conflict with the laws.
106. Stipulates 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.
107. Requires the Commission to exercise rulemaking powers in accordance to the criteria set forth in the Compact and the adopted rules.
108. Asserts that rules become binding as of the date specified by the Commission for each rule.
109. Stipulates that a rule has no further force and effect in any member state or to any state applying to participate in the Compact 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 the Compact within four years after the date of the adoption of the rule.
110. Requires rules to be adopted at a regular or special meeting of the Commission.
111. Requires the Commission, before adopting a proposed rule, and at least 30 days before the meeting at which the Commission will hold a public hearing on the proposed rule, to provide a notice of proposed rulemaking as follows:
a) on the Commission's website or other publicly accessible platform;
b) to persons who have requested notice of the Commission's notices of proposed rulemaking; and
c) in such other ways as the Commission specifies by rule.
112. Requires the notice of proposed rulemaking to include:
a) 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;
b) the mechanism for access to the hearing, if the hearing is held via telecommunication, videoconference or other electronic means;
c) the text of the proposed rule and the reason for the proposed rule;
d) a request for comments on the proposed rule from any interested party; and
e) the manner in which interested persons may submit written comments.
113. Requires all hearings to be recorded.
114. Requires a copy of the recording and all written comments and documents received by the Commission in response to the proposed rule to be available to the public.
115. Stipulates that a separate hearing for each rule is not required.
116. Allows rules to be grouped for the Commission's convenience at required hearings.
117. Requires the Commission, by majority vote of all members, to take final action on the proposed rule based on the rulemaking record and full text of the rule.
118. Allows the Commission to adopt changes to the proposed rule if the changes so not enlarge the original purpose of the proposed rule.
119. Requires the Commission to provide an explanation of the reasons for substantive changes that are not made but that were recommended by commenters.
120. Requires the Commission to determine a reasonable effective date for the rule.
121. Requires the effective date of the rule, except for an emergency rule, to be at least 45 days after the Commission issues the notice that the Commission adopted or amended the rule.
122. Allows the Commission, on determination that an emergency exists, to 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 the Compact are retroactively applied to the rule as soon as reasonably possible, and not later than 90 days after the rule's effective date.
123. Stipulates that an emergency rule is one that must be adopted immediately to:
a) meet an imminent threat to public health, safety or welfare;
b) prevent a loss of Commission or member state monies;
c) meet a deadline that is established by federal law to adopt a rule; or
d) protect public health and safety.
124. Allows the Commission or an authorized committee of the Commission to direct revisions to a previously adopted rule for the purposed of correcting:
a) typographical errors;
b) errors in format;
c) errors in consistency; or
d) grammatical errors.
125. Requires public notice of any revisions to be posted on the Commission's website.
126. Stipulates that the revision is subject to challenge by any person for a period of 30 days after posting.
127. Allows the revision to be challenged only on grounds that the revision results in a material change to a rule.
128. Requires a challenge to be made in writing and delivered to the Commission before the end of the notice period.
129. Asserts that the revision takes effect without further action if a challenge in not made.
130. Prohibits a revision, if a revision is challenged, from taking effect without the Commission's approval.
131. Stipulates that a member state's rulemaking requirements do not apply to the Commission under the Compact.
Oversight and Enforcement
132. Requires the executive and judicial branches of the state government in each member state to enforce the Compact and take all actions necessary and appropriate to implement the Compact.
133. Stipulates that a court of competent jurisdiction where the principle office of the Commission is locate is where:
a) venue is proper; and
b) judicial proceedings by or against the Commission must be solely and exclusively brought.
134. Allows the Commission to waive venue and jurisdictional defenses to the extent it adopts or consents to participate in alternative dispute resolution proceedings.
135. Stipulates that the selection or propriety of venue in any action against a licensee for professional malpractice or misconduct or in any similar matter is not affected or limited.
136. Allows the Commission to receive services of process in any proceeding regarding the enforcement or interpretation of the Compact.
137. Requires the Commission to have standing to intervene in such proceeding for all purposes.
138. Asserts that failure to provide the Commission service of process renders a judgment or order void.
139. Requires the Commission, if the Commission determines that a member state has defaulted in the performance of its obligations or responsibilities under the Compact or adopted rules, to provide written notice to the defaulting state.
140. Requires the notice of default to:
a) describe the default;
b) the proposed means of curing the default; and
c) any other action that the Commission may take.
141. Requires the Commission to offer training and specific technical assistance regarding the default.
142. Requires the Commission to provide a copy of the notice of default to the other member states.
143. Stipulates that the defaulting state, if the state fails to cure the default, and on an affirmative vote of a majority of the delegates of the members, may be terminated from the Compact and all rights, privileges and benefits conferred on the state by the Compact may be terminated on the effective date of the termination.
144. Asserts that a cure of the default does not relieve the offending state of obligations or liabilities incurred during the period of default.
145. Requires termination of membership in the Compact to be imposed only after all other means of securing compliance have been exhausted.
146. Requires the Commission to give notice of intent to suspend or terminate to:
a) the defaulting state's governor;
b) the defaulting state's majority and minority leaders of the legislature;
c) the defaulting state's licensing authority; and
d) the licensing authority of each member state.
147. Stipulates that a state that has been terminated is responsible for all assessments, obligation and liabilities incurred through the effective date of termination, including obligations that extend beyond the effective date of termination.
148. Requires a state, on termination of the state's membership from the Compact, to immediately provide notice of the termination to all licensees who hold a multistate license within the state.
149. Requires the terminated state to continue to recognize all licenses granted in accordance with the Compact for at least 180 days after the date of the notice of termination.
150. Requires the Commission to not bear costs related to a state that is found to be in default or that has been terminated from the Compact, unless agreed to in writing between the Commission and the defaulting state.
151. Allows the defaulting state to appeal the Commission's action by petitioning the U.S. District Court for the District of Columbia or the federal district where the Commission has its principal offices.
152. Requires the prevailing party to be awarded all costs of the litigation, including reasonable attorney fees.
153. Requires the Commission, on a member's request, to attempt to resolve disputes related to the Compact that arise among member states and between member and nonmember states.
154. Requires the Commission to adopt a rule providing for both mediation and binding dispute resolution for disputes as appropriate.
155. Requires the Commission, in the reasonable exercise of the Commission's discretion, to enforce the Compact and the Commission's rules.
156. Allows the Commission, by majority vote as provided by Commission rule, to initiate legal action against a defaulting member state in the U.S. District Court for the District of Columbia or the federal district where the Commission has its principal offices to enforce compliance with the Compact and its adopted rules.
157. Allows relief sought to include both injunctive relief and damages.
158. Requires the prevailing party, if judicial enforcement is necessary, to be awarded all costs of the litigation, including reasonable attorney fees.
159. Stipulates that the legal remedies are not exclusive remedies of the Commission.
160. Allows the Commission to pursue any other remedies available under federal law or the defaulting member state's law.
161. Allows a member state to initiate legal action against the Commission in the U.S. District Court for the District of Columbia or the federal district where the Commission has its principal offices to enforce compliance with the Compact and its adopted rules.
162. Allows relief sought to include both injective relief and damages.
163. Requires the prevailing party, if judicial enforcement is necessary, to be awarded all costs of the litigation, including reasonable attorney fees.
164. Asserts that only a member state may enforce the Compact against the Commission.
Effective Date and Amendment of the Compact
165. Stipulates that the Compact is effective on the date on which the Compact is enacted into law in the seventh member state.
166. Requires the Commission, on or after the effective date of the Compact, to convene and review the enactment of each of the charter member states to determine if the statute enacted by each charter member state is materially different than the model compact statute.
167. Asserts that a charter member state whose enactment is found to be materially different from the model compact statute is entitled to the default process.
168. Stipulates that the Commission, if any member state is later found to be in default or is terminated or withdrawn from the Compact, remains in existence and the Compact remains in effect even if the number of member states is less than seven.
169. Stipulates that member states enacting the Compact subsequent to the charter member states are subject to the Commission's approval to determine whether the enactments are materially different from the model compact language and whether the member states qualify for participation in the Compact.
170. Stipulates that all actions taken for the Commission's benefit or in furtherance of the purposes of the administration of the Compact before the effective date of the Compact or the Commission coming into existence are actions of the Commission unless specifically repudiated by the Commission.
171. Stipulates that a state that joins the Compact is subject to the Commission's rules and bylaws as they exist on the date on which the Compact becomes law in that state.
172. Requires a rule that has been previously adopted by the Commission to have the full force and effect of law on the day the Compact becomes law in that state.
173. Allows a member state to withdraw from the Compact by enacting a statute repealing the state's enactment of the Compact.
174. Stipulates that a member state's withdrawal does not take effect until 180 days after the enactment of the repealing statute.
175. Stipulates that withdrawal does not affect the continuing requirement of the withdrawing state's licensing authority to comply with the investigative and adverse action reporting requirements of the Compact before the effective date of the withdrawal.
176. Requires a state, on the enactment of a statute withdrawing from the Compact, to immediately provide notice of the withdrawal to all licensees within that state.
177. Requires the withdrawing state to continue to recognize all licenses granted in accordance with the Compact for at least 180 days after the date of the notice of withdrawal.
178. Stipulates that the 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 the Compact.
179. Allows the Compact to be amended by the member states.
180. Asserts that an amendment to the Compact does not become effective and binding on any member state until it is enacted into the laws of all member states.
Construction and Severability
181. Requires the Compact and the Commission's rulemaking authority to be liberally construed to effectuate the purposes, implementation and administration of the Compact.
182. Stipulates that provisions of the Compact expressly authorizing or requiring the adoption of rules do not limit the Commission's rulemaking authority solely for those purposes.
183. Asserts that the provisions of the Compact are severable.
184. Stipulates that the validity of the remainder of the Compact and the applicability to any government, agency, person or circumstance is not affected if:
a) any phrase, clause, sentence or provision of the Compact is held by a court of competent jurisdiction to be contrary to the constitution of any member state, or a state seeking participation in the Compact or of the United States; or
b) the applicability to any government, agency, person or circumstance is held unconstitutional by a court of competent jurisdiction.
185. Allows the Commission to deny a state's participation in the Compact or, in accordance with the Compact, 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 the Compact.
186. Requires the Compact, if the Compact is otherwise held to be contrary to the constitution of any member state, to remain in full force and effect as the remaining member states and in full force and effect as to the member state affected as to all severable matters.
Consistent Effect and Conflict with Other States
187. Stipulates that the Compact does not prevent or inhibit the enforcement of any other law of a member state that is consistent with the Compact.
188. Asserts that any laws, statutes, rules or other legal documents in a member state that conflict with the Compact are superseded to the extent of the conflict.
189. Stipulates that all permissible agreements between the Commission and the member states are binding in accordance with their terms.
Miscellaneous
190. Contains a purpose and objectives statement.
191. Defines terms.
192. Becomes effective on July 1, 2024.
Amendment Adopted by Committee
· Adopted the strike-everything amendment.
Amendments Adopted by Committee of the Whole
1. Adds a definition of rule under the Compact.
2. Makes technical and conforming changes.
Senate Action
COM 3/22/23 DPA/SE 6-1-0-0
Prepared by Senate Research
April 3, 2023
JT/sr