By: Zaffirini S.B. No. 1615     (Wilson, et al.)           A BILL TO BE ENTITLED   AN ACT   relating to the cosmetology licensure compact.   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Title 9, Occupations Code, is amended by adding   Chapter 1604 to read as follows:   CHAPTER 1604. COSMETOLOGY LICENSURE COMPACT          Sec. 1604.001.  COSMETOLOGY LICENSURE COMPACT. The   Cosmetology Licensure Compact is enacted and entered into with all   other jurisdictions that legally join the compact, which reads as   follows:   COSMETOLOGY LICENSURE COMPACT   ARTICLE 1- PURPOSE   The purpose of this Compact is to facilitate the interstate   practice and regulation of Cosmetology with the goal of improving   public access to, and the safety of, Cosmetology Services and   reducing unnecessary burdens related to Cosmetology licensure.   Through this Compact, the Member States seek to establish a   regulatory framework which provides for a new multistate licensing   program. Through this new licensing program, the Member States   seek to provide increased value and mobility to licensed   Cosmetologists in the Member States, while ensuring the provision   of safe, effective, and reliable services to the public.   This Compact is designed to achieve the following objectives, and   the Member States hereby ratify the same intentions by subscribing   hereto:   A. Provide opportunities for interstate practice by Cosmetologists   who meet uniform requirements for multistate licensure;   B. Enhance the abilities of Member States to protect public health   and safety, and prevent fraud and unlicensed activity within the   profession;   C. Ensure and encourage cooperation between Member States in the   licensure and regulation of the Practice of Cosmetology;   D. Support relocating military members and their spouses;   E. Facilitate the exchange of information between Member States   related to the licensure, investigation, and discipline of the   Practice of Cosmetology;   F. Provide for the licensure and mobility of the workforce in the   profession, while addressing the shortage of workers and   lessening the associated burdens on the Member States.   ARTICLE 2- DEFINITIONS   As used in this Compact, and except as otherwise provided, the   following definitions shall govern the terms herein:   A. "Active Military Member" means any person with full-time duty   status in the armed forces of the United States, including   members of the National Guard and Reserve.   B. "Adverse Action" means any administrative, civil, equitable, or   criminal action permitted by a Member State's laws which is   imposed by a State Licensing Authority or other regulatory body   against a Cosmetologist, including actions against an   individual's license or Authorization to Practice such as   revocation, suspension, probation, monitoring of the Licensee,   limitation of the Licensee's practice, or any other Encumbrance   on a license affecting an individual's ability to participate in   the Cosmetology industry, including the issuance of a cease and   desist order.   C. "Authorization to Practice" means a legal authorization   associated with a Multistate License permitting the Practice of   Cosmetology in that Remote State, which shall be subject to the   enforcement jurisdiction of the State Licensing Authority in   that Remote State.   D. "Alternative Program" means a non-disciplinary monitoring or   prosecutorial diversion program approved by a Member State's   State Licensing Authority.   E. "Background Check" means the submission of information for an   applicant for the purpose of obtaining that applicant's criminal   history record information, as further defined in 28 C.F.R. §   20.3(d), from the Federal Bureau of Investigation and the agency   responsible for retaining State criminal or disciplinary history   in the applicant's Home State.   F. "Charter Member State" means Member States who have enacted   legislation to adopt this Compact where such legislation   predates the effective date of this Compact as defined in Article   13.   G. "Commission" means the government agency whose membership   consists of all States that have enacted this Compact, which is   known as the Cosmetology Licensure Compact Commission, as   defined in Article 9, and which shall operate as an   instrumentality of the Member States.   H. "Cosmetologist" means an individual licensed in their Home State   to practice Cosmetology.   I. "Cosmetology", "Cosmetology Services", and the "Practice of   Cosmetology" mean the care and services provided by a   Cosmetologist as set forth in the Member State's statutes and   regulations in the State where the services are being provided.   J. "Current Significant Investigative Information" means:             1. Investigative Information that a State Licensing   Authority, after an inquiry or investigation that   complies with a Member State's due process   requirements, has reason to believe is not groundless   and, if proved true, would indicate a violation of that   State's laws regarding fraud or the Practice of   Cosmetology; or             2. Investigative Information that indicates that a   Licensee has engaged in fraud or represents an   immediate threat to public health and safety,   regardless of whether the Licensee has been notified   and had an opportunity to respond.   K. "Data System" means a repository of information about Licensees,   including, but not limited to, license status, Investigative   Information, and Adverse Actions.   L. "Disqualifying Event" means any event which shall disqualify an   individual from holding a Multistate License under this Compact,   which the Commission may by Rule or order specify.   M. "Encumbered License" means a license in which an Adverse Action   restricts the Practice of Cosmetology by a Licensee, or where   said Adverse Action has been reported to the Commission.   N. "Encumbrance" means a revocation or suspension of, or any   limitation on, the full and unrestricted Practice of Cosmetology   by a State Licensing Authority.   O. "Executive Committee" means a group of delegates elected or   appointed to act on behalf of, and within the powers granted to   them by, the Commission.   P. "Home State" means the Member State which is a Licensee's   primary State of residence, and where that Licensee holds an   active and unencumbered license to practice Cosmetology.   Q. "Investigative Information" means information, records, or   documents received or generated by a State Licensing Authority   pursuant to an investigation or other inquiry.   R. "Jurisprudence Requirement" means the assessment of an   individual's knowledge of the laws and rules governing the   Practice of Cosmetology in a State.   S. "Licensee" means an individual who currently holds a license   from a Member State to practice as a Cosmetologist.   T. "Member State" means any State that has adopted this Compact.   U. "Multistate License" means a license issued by and subject to   the enforcement jurisdiction of the State Licensing Authority in   a Licensee's Home State, which authorizes the Practice of   Cosmetology in Member States and includes Authorizations to   Practice Cosmetology in all Remote States pursuant to this   Compact.   V. "Remote State" means any Member State, other than the Licensee's   Home State.   W. "Rule" means any rule or regulation promulgated by the   Commission under this Compact which has the force of law.   X. "Single-State License" means a Cosmetology license issued by a   Member State that authorizes practice of Cosmetology only within   the issuing State and does not include any authorization outside   of the issuing State.   Y. "State" means a State, territory, or possession of the United   States and the District of Columbia.   Z. "State Licensing Authority" means a Member State's regulatory   body responsible for issuing Cosmetology licenses or otherwise   overseeing the Practice of Cosmetology in that State.   ARTICLE 3- MEMBER STATE REQUIREMENTS   A. To be eligible to join this Compact, and to maintain eligibility   as a Member State, a State must:             1. License and regulate Cosmetology;             2. Have a mechanism or entity in place to receive and   investigate complaints about Licensees practicing in   that State;             3. Require that Licensees within the State pass a   Cosmetology competency examination prior to being   licensed to provide Cosmetology Services to the public   in that State;             4. Require that Licensees satisfy educational or training   requirements in Cosmetology prior to being licensed to   provide Cosmetology Services to the public in that   State;             5. Implement procedures for considering one or more of the   following categories of information from applicants for   licensure: criminal history; disciplinary history; or   Background Check. Such procedures may include the   submission of information by applicants for the purpose   of obtaining an applicant's Background Check as defined   herein;             6. Participate in the Data System, including through the   use of unique identifying numbers;             7. Share information related to Adverse Actions with the   Commission and other Member States, both through the   Data System and otherwise;             8. Notify the Commission and other Member States, in   compliance with the terms of the Compact and Rules of   the Commission, of the existence of Investigative   Information or Current Significant Investigative   Information in the State's possession regarding a   Licensee practicing in that State;             9. Comply with such Rules as may be enacted by the   Commission to administer the Compact; and            10. Accept Licensees from other Member States as   established herein.   B. Member States may charge a fee for granting a license to practice   Cosmetology.   C. Individuals not residing in a Member State shall continue to be   able to apply for a Member State's Single-State License as   provided under the laws of each Member State. However, the   Single-State License granted to these individuals shall not be   recognized as granting a Multistate License to provide services   in any other Member State.   D. Nothing in this Compact shall affect the requirements   established by a Member State for the issuance of a Single-State   License.   E. A Multistate License issued to a Licensee by a Home State to a   resident of that State shall be recognized by each Member State   as authorizing a Licensee to practice Cosmetology in each Member   State.   F. At no point shall the Commission have the power to define the   educational or professional requirements for a license to   practice Cosmetology. The Member States shall retain sole   jurisdiction over the provision of these requirements.   ARTICLE 4- MULTISTATE LICENSE   A. To be eligible to apply to their Home State's State Licensing   Authority for an initial Multistate License under this Compact,   a Licensee must hold an active and unencumbered Single-State   License to practice Cosmetology in their Home State.   B. Upon the receipt of an application for a Multistate License,   according to the Rules of the Commission, a Member State's State   Licensing Authority shall ascertain whether the applicant meets   the requirements for a Multistate License under this Compact.   C. If an applicant meets the requirements for a Multistate License   under this Compact and any applicable Rules of the Commission,   the State Licensing Authority in receipt of the application   shall, within a reasonable time, grant a Multistate License to   that applicant, and inform all Member States of the grant of said   Multistate License.   D. A Multistate License to practice Cosmetology issued by a Member   State's State Licensing Authority shall be recognized by each   Member State as authorizing the practice thereof as though that   Licensee held a Single-State License to do so in each Member   State, subject to the restrictions herein.   E. A Multistate License granted pursuant to this Compact may be   effective for a definite period of time, concurrent with the   licensure renewal period in the Home State.   F. To maintain a Multistate License under this Compact, a Licensee   must:             1. Agree to abide by the rules of the State Licensing   Authority, and the State scope of practice laws   governing the Practice of Cosmetology, of any Member   State in which the Licensee provides services;             2. Pay all required fees related to the application and   process, and any other fees which the Commission may by   Rule require; and             3. Comply with any and all other requirements regarding   Multistate Licenses which the Commission may by Rule   provide.   G. A Licensee practicing in a Member State is subject to all scope   of practice laws governing Cosmetology Services in that State.   H. The Practice of Cosmetology under a Multistate License granted   pursuant to this Compact will subject the Licensee to the   jurisdiction of the State Licensing Authority, the courts, and   the laws of the Member State in which the Cosmetology Services   are provided.   ARTICLE 5- REISSUANCE OF A MULTISTATE LICENSE BY A NEW HOME STATE   A. A Licensee may hold a Multistate License, issued by their Home   State, in only one Member State at any given time.   B. If a Licensee changes their Home State by moving between two   Member States:             1. The Licensee shall immediately apply for the reissuance   of their Multistate License in their new Home State. The   Licensee shall pay all applicable fees and notify the   prior Home State in accordance with the Rules of the   Commission.             2. Upon receipt of an application to reissue a Multistate   License, the new Home State shall verify that the   Multistate License is active, unencumbered and eligible   for reissuance under the terms of the Compact and the   Rules of the Commission. The Multistate License issued   by the prior Home State will be deactivated and all   Member States notified in accordance with the   applicable Rules adopted by the Commission.             3. If required for initial licensure, the new Home State   may require a Background Check as specified in the laws   of that State, or the compliance with any Jurisprudence   Requirements of the new Home State.             4. Notwithstanding any other provision of this Compact, if   a Licensee does not meet the requirements set forth in   this Compact for the reissuance of a Multistate License   by the new Home State, then the Licensee shall be   subject to the new Home State requirements for the   issuance of a Single-State License in that State.   C. If a Licensee changes their primary state of residence by moving   from a Member State to a non-Member State, or from a non-Member   State to a Member State, then the Licensee shall be subject to   the State requirements for the issuance of a Single-State   License in the new Home State.   D. Nothing in this Compact shall interfere with a Licensee's   ability to hold a Single-State License in multiple States;   however, for the purposes of this Compact, a Licensee shall have   only one Home State, and only one Multistate License.   E. Nothing in this Compact shall interfere with the requirements   established by a Member State for the issuance of a Single-State   License.   ARTICLE 6- AUTHORITY OF THE COMPACT COMMISSION AND MEMBER STATE   LICENSING AUTHORITIES   A. Nothing in this Compact, nor any Rule or regulation of the   Commission, shall be construed to limit, restrict, or in any way   reduce the ability of a Member State to enact and enforce laws,   regulations, or other rules related to the Practice of   Cosmetology in that State, where those laws, regulations, or   other rules are not inconsistent with the provisions of this   Compact.   B. Insofar as practical, a Member State's State Licensing Authority   shall cooperate with the Commission and with each entity   exercising independent regulatory authority over the Practice of   Cosmetology according to the provisions of this Compact.   C. Discipline shall be the sole responsibility of the State in   which Cosmetology Services are provided. Accordingly, each   Member State's State Licensing Authority shall be responsible   for receiving complaints about individuals practicing   Cosmetology in that State, and for communicating all relevant   Investigative Information about any such Adverse Action to the   other Member States through the Data System in addition to any   other methods the Commission may by Rule require.   ARTICLE 7- ADVERSE ACTIONS   A. A Licensee's Home State shall have exclusive power to impose an   Adverse Action against a Licensee's Multistate License issued by   the Home State.   B. A Home State may take Adverse Action on a Multistate License   based on the Investigative Information, Current Significant   Investigative Information, or Adverse Action of a Remote State.   C. In addition to the powers conferred by State law, each Remote   State's State Licensing Authority shall have the power to:             1. Take Adverse Action against a Licensee's Authorization   to Practice Cosmetology through the Multistate License   in that Member State, provided that:                   a. Only the Licensee's Home State shall have the   power to take Adverse Action against the   Multistate License issued by the Home State; and                   b. For the purposes of taking Adverse Action, the   Home State's State Licensing Authority shall give   the same priority and effect to reported conduct   received from a Remote State as it would if such   conduct had occurred within the Home State. In so   doing, the Home State shall apply its own State   laws to determine the appropriate action.             2. Issue cease and desist orders or impose an Encumbrance   on a Licensee's Authorization to Practice within that   Member State.             3. Complete any pending investigations of a Licensee who   changes their primary state of residence during the   course of such an investigation. The State Licensing   Authority shall also be empowered to report the results   of such an investigation to the Commission through the   Data System as described herein.             4. Issue subpoenas for both hearings and investigations   that require the attendance and testimony of witnesses,   as well as the production of evidence. Subpoenas issued   by a State Licensing Authority in a Member State for the   attendance and testimony of witnesses or the production   of evidence from another Member State shall be enforced   in the latter State by any court of competent   jurisdiction, according to the practice and procedure   of that court applicable to subpoenas issued in   proceedings before it. The issuing State Licensing   Authority shall pay any witness fees, travel expenses,   mileage, and other fees required by the service   statutes of the State in which the witnesses or evidence   are located.             5. If otherwise permitted by State law, recover from the   affected Licensee the costs of investigations and   disposition of cases resulting from any Adverse Action   taken against that Licensee.             6. Take Adverse Action against the Licensee's   Authorization to Practice in that State based on the   factual findings of another Remote State.   D. A Licensee's Home State shall complete any pending   investigation(s) of a Cosmetologist who changes their primary   state of residence during the course of the investigation(s).   The Home State shall also have the authority to take appropriate   action(s) and shall promptly report the conclusions of the   investigations to the Data System.   E. If an Adverse Action is taken by the Home State against a   Licensee's Multistate License, the Licensee's Authorization to   Practice in all other Member States shall be deactivated until   all Encumbrances have been removed from the Home State license.   All Home State disciplinary orders that impose an Adverse Action   against a Licensee's Multistate License shall include a   statement that the Cosmetologist's Authorization to Practice is   deactivated in all Member States during the pendency of the   order.   F. Nothing in this Compact shall override a Member State's   authority to accept a Licensee's participation in an Alternative   Program in lieu of Adverse Action. A Licensee's Multistate   License shall be suspended for the duration of the Licensee's   participation in any Alternative Program.   G. Joint Investigations             1. In addition to the authority granted to a Member State   by its respective scope of practice laws or other   applicable State law, a Member State may participate   with other Member States in joint investigations of   Licensees.             2. Member States shall share any investigative,   litigation, or compliance materials in furtherance of   any joint or individual investigation initiated under   the Compact.   ARTICLE 8- ACTIVE MILITARY MEMBERS AND THEIR SPOUSES   Active Military Members, or their spouses, shall designate a Home   State where the individual has a current license to practice   Cosmetology in good standing. The individual may retain their Home   State designation during any period of service when that individual   or their spouse is on active duty assignment.   ARTICLE 9- ESTABLISHMENT AND OPERATION OF THE COSMETOLOGY LICENSURE   COMPACT COMMISSION   A. The Compact Member States hereby create and establish a joint   government agency whose membership consists of all Member States   that have enacted the Compact known as the Cosmetology Licensure   Compact Commission. The Commission is an instrumentality of the   Compact Member States acting jointly and not an instrumentality   of any one State. The Commission shall come into existence on or   after the effective date of the Compact as set forth in Article   13.   B. Membership, Voting, and Meetings             1. Each Member State shall have and be limited to one (1)   delegate selected by that Member State’s State   Licensing Authority.             2. The delegate shall be an administrator of the State   Licensing Authority of the Member State or their   designee.             3. The Commission shall by Rule or bylaw establish a term   of office for delegates and may by Rule or bylaw   establish term limits.             4. The Commission may recommend removal or suspension of   any delegate from office.             5. A Member State’s State Licensing Authority shall fill   any vacancy of its delegate occurring on the Commission   within 60 days of the vacancy.             6. Each delegate shall be entitled to one vote on all   matters that are voted on by the Commission.             7. The Commission shall meet at least once during each   calendar year. Additional meetings may be held as set   forth in the bylaws. The Commission may meet by   telecommunication, video conference or other similar   electronic means.   C. The Commission shall have the following powers:             1. Establish the fiscal year of the Commission;             2. Establish code of conduct and conflict of interest   policies;             3. Adopt Rules and bylaws;             4. Maintain its financial records in accordance with the   bylaws;             5. Meet and take such actions as are consistent with the   provisions of this Compact, the Commission’s Rules, and   the bylaws;             6. Initiate and conclude legal proceedings or actions in   the name of the Commission, provided that the standing   of any State Licensing Authority to sue or be sued under   applicable law shall not be affected;             7. Maintain and certify records and information provided   to a Member State as the authenticated business records   of the Commission, and designate an agent to do so on   the Commission's behalf;             8. Purchase and maintain insurance and bonds;             9. Borrow, accept, or contract for services of personnel,   including, but not limited to, employees of a Member   State;            10. Conduct an annual financial review;            11. Hire employees, elect or appoint officers, fix   compensation, define duties, grant such individuals   appropriate authority to carry out the purposes of the   Compact, and establish the Commission's personnel   policies and programs relating to conflicts of   interest, qualifications of personnel, and other   related personnel matters;            12. As set forth in the Commission Rules, charge a fee to a   Licensee for the grant of a Multistate License and   thereafter, as may be established by Commission Rule,   charge the Licensee a Multistate License renewal fee   for each renewal period. Nothing herein shall be   construed to prevent a Home State from charging a   Licensee a fee for a Multistate License or renewals of a   Multistate License, or a fee for the jurisprudence   requirement if the Member State imposes such a   requirement for the grant of a Multistate License;            13. Assess and collect fees;            14. Accept any and all appropriate gifts, donations,   grants of money, other sources of revenue, equipment,   supplies, materials, and services, and receive,   utilize, and dispose of the same; provided that at all   times the Commission shall avoid any appearance of   impropriety or conflict of interest;            15. Lease, purchase, retain, own, hold, improve, or use any   property, real, personal, or mixed, or any undivided   interest therein;            16. Sell, convey, mortgage, pledge, lease, exchange,   abandon, or otherwise dispose of any property real,   personal, or mixed;            17. Establish a budget and make expenditures;            18. Borrow money;            19. Appoint committees, including standing committees,   composed of members, State regulators, State   legislators or their representatives, and consumer   representatives, and such other interested persons as   may be designated in this Compact and the bylaws;            20. Provide and receive information from, and cooperate   with, law enforcement agencies;            21. Elect a Chair, Vice Chair, Secretary and Treasurer and   such other officers of the Commission as provided in the   Commission's bylaws;            22. Establish and elect an Executive Committee, including   a chair and a vice chair;            23. Adopt and provide to the Member States an annual   report.            24. Determine whether a State's adopted language is   materially different from the model Compact language   such that the State would not qualify for participation   in the Compact; and            25. Perform such other functions as may be necessary or   appropriate to achieve the purposes of this Compact.   D. The Executive Committee             1. The Executive Committee shall have the power to act on   behalf of the Commission according to the terms of this   Compact. The powers, duties, and responsibilities of   the Executive Committee shall include:                   a. Overseeing the day-to-day activities of the   administration of the Compact including   compliance with the provisions of the Compact, the   Commission's Rules and bylaws, and other such   duties as deemed necessary;                   b. Recommending to the Commission changes to the   Rules or bylaws, changes to this Compact   legislation, fees charged to Compact Member   States, fees charged to Licensees, and other fees;                   c. Ensuring Compact administration services are   appropriately provided, including by contract;                   d. Preparing and recommending the budget;                   e. Maintaining financial records on behalf of the   Commission;                   f. Monitoring Compact compliance of Member States   and providing compliance reports to the   Commission;                   g. Establishing additional committees as necessary;                   h. Exercising the powers and duties of the   Commission during the interim between Commission   meetings, except for adopting or amending Rules,   adopting or amending bylaws, and exercising any   other powers and duties expressly reserved to the   Commission by Rule or bylaw; and                   i. Other duties as provided in the Rules or bylaws of   the Commission.             2. The Executive Committee shall be composed of up to   seven voting members:                   a. The chair and vice chair of the Commission and any   other members of the Commission who serve on the   Executive Committee shall be voting members of the   Executive Committee; and                   b. Other than the chair, vice-chair, secretary and   treasurer, the Commission shall elect three   voting members from the current membership of the   Commission.                   c. The Commission may elect ex-officio, nonvoting   members from a recognized national Cosmetology   professional association as approved by the   Commission. The Commission's bylaws shall   identify qualifying organizations and the manner   of appointment if the number of organizations   seeking to appoint an ex officio member exceeds   the number of members specified in this Article.             3. The Commission may remove any member of the Executive   Committee as provided in the Commission's bylaws.             4. The Executive Committee shall meet at least annually.                   a. Annual Executive Committee meetings, as well as   any Executive Committee meeting at which it does   not take or intend to take formal action on a   matter for which a Commission vote would otherwise   be required, shall be open to the public, except   that the Executive Committee may meet in a closed,   non-public session of a public meeting when   dealing with any of the matters covered under   Article 9.F.4.                   b. The Executive Committee shall give five business   days advance notice of its public meetings, posted   on its website and as determined to provide notice   to persons with an interest in the public matters   the Executive Committee intends to address at   those meetings.             5. The Executive Committee may hold an emergency meeting   when acting for the Commission to:                   a. Meet an imminent threat to public health, safety,   or welfare;                   b. Prevent a loss of Commission or Member State   funds; or                   c. Protect public health and safety.   E. The Commission shall adopt and provide to the Member States an   annual report.   F. Meetings of the Commission             1. All meetings of the Commission that are not closed   pursuant to Article 9.F.4 shall be open to the public.   Notice of public meetings shall be posted on the   Commission's website at least thirty (30) days prior to   the public meeting.             2. Notwithstanding Article 9.F.1, the Commission may   convene an emergency public meeting by providing at   least twenty-four (24) hours prior notice on the   Commission's website, and any other means as provided in   the Commission's Rules, for any of the reasons it may   dispense with notice of proposed rulemaking under   Article 11.L. The Commission's legal counsel shall   certify that one of the reasons justifying an emergency   public meeting has been met.             3. Notice of all Commission meetings shall provide the   time, date, and location of the meeting, and if the   meeting is to be held or accessible via   telecommunication, video conference, or other   electronic means, the notice shall include the   mechanism for access to the meeting.             4. The Commission may convene in a closed, non-public   meeting for the Commission to discuss:                   a. Non-compliance of a Member State with its   obligations under the Compact;                   b. The employment, compensation, discipline or other   matters, practices or procedures related to   specific employees or other matters related to the   Commission's internal personnel practices and   procedures;                   c. Current or threatened discipline of a Licensee by   the Commission or by a Member State's Licensing   Authority;                   d. Current, threatened, or reasonably anticipated   litigation;                   e. Negotiation of contracts for the purchase, lease,   or sale of goods, services, or real estate;                   f. Accusing any person of a crime or formally   censuring any person;                   g. Trade secrets or commercial or financial   information that is privileged or confidential;                   h. Information of a personal nature where disclosure   would constitute a clearly unwarranted invasion   of personal privacy;                   i. Investigative records compiled for law   enforcement purposes;                   j. Information related to any investigative reports   prepared by or on behalf of or for use of the   Commission or other committee charged with   responsibility of investigation or determination   of compliance issues pursuant to the Compact;                   k. Legal advice;                   l. Matters specifically exempted from disclosure to   the public by federal or Member State law; or                   m. Other matters as promulgated by the Commission by   Rule.             5. If a meeting, or portion of a meeting, is closed, the   presiding officer shall state that the meeting will be   closed and reference each relevant exempting provision,   and such reference shall be recorded in the minutes.             6. The Commission shall keep minutes that fully and   clearly describe all matters discussed in a meeting and   shall provide a full and accurate summary of actions   taken, and the reasons therefore, including a   description of the views expressed. All documents   considered in connection with an action shall be   identified in such minutes. All minutes and documents   of a closed meeting shall remain under seal, subject to   release only by a majority vote of the Commission or   order of a court of competent jurisdiction.   G. Financing of the Commission             1. The Commission shall pay, or provide for the payment   of, the reasonable expenses of its establishment,   organization, and ongoing activities.             2. The Commission may accept any and all appropriate   sources of revenue, donations, and grants of money,   equipment, supplies, materials, and services.             3. The Commission may levy on and collect an annual   assessment from each Member State and impose fees on   Licensees of Member States to whom it grants a   Multistate License to cover the cost of the operations   and activities of the Commission and its staff, which   must be in a total amount sufficient to cover its annual   budget as approved each year for which revenue is not   provided by other sources. The aggregate annual   assessment amount for Member States shall be allocated   based upon a formula that the Commission shall   promulgate by Rule.             4. The Commission shall not incur obligations of any kind   prior to securing the funds adequate to meet the same;   nor shall the Commission pledge the credit of any Member   States, except by and with the authority of the Member   State.             5. The Commission shall keep accurate accounts of all   receipts and disbursements. The receipts and   disbursements of the Commission shall be subject to the   financial review and accounting procedures established   under its bylaws. All receipts and disbursements of   funds handled by the Commission shall be subject to an   annual financial review by a certified or licensed   public accountant, and the report of the financial   review shall be included in and become part of the   annual report of the Commission.   H. Qualified Immunity, Defense, and Indemnification             1. The members, officers, executive director, employees   and representatives of the Commission shall be immune   from suit and liability, both personally and in their   official capacity, for any claim for damage to or loss   of property or personal injury or other civil liability   caused by or arising out of any actual or alleged act,   error, or omission that occurred, or that the person   against whom the claim is made had a reasonable basis   for believing occurred within the scope of Commission   employment, duties or responsibilities; provided that   nothing in this paragraph shall be construed to protect   any such person from suit or liability for any damage,   loss, injury, or liability caused by the intentional or   willful or wanton misconduct of that person. The   procurement of insurance of any type by the Commission   shall not in any way compromise or limit the immunity   granted hereunder.             2. The Commission shall defend any member, officer,   executive director, employee, and representative of the   Commission in any civil action seeking to impose   liability arising out of any actual or alleged act,   error, or omission that occurred within the scope of   Commission employment, duties, or responsibilities, or   as determined by the Commission that the person against   whom the claim is made had a reasonable basis for   believing occurred within the scope of Commission   employment, duties, or responsibilities; provided that   nothing herein shall be construed to prohibit that   person from retaining their own counsel at their own   expense; and provided further, that the actual or   alleged act, error, or omission did not result from that   person's intentional or willful or wanton misconduct.             3. The Commission shall indemnify and hold harmless any   member, officer, executive director, employee, and   representative of the Commission for the amount of any   settlement or judgment obtained against that person   arising out of any actual or alleged act, error, or   omission that occurred within the scope of Commission   employment, duties, or responsibilities, or that such   person had a reasonable basis for believing occurred   within the scope of Commission employment, duties, or   responsibilities, provided that the actual or alleged   act, error, or omission did not result from the   intentional or willful or wanton misconduct of that   person.             4. Nothing herein shall be construed as a limitation on   the liability of any Licensee for professional   malpractice or misconduct, which shall be governed   solely by any other applicable State laws.             5. Nothing in this Compact shall be interpreted to waive   or otherwise abrogate a Member State's State action   immunity or State action affirmative defense with   respect to antitrust claims under the Sherman Act,   Clayton Act, or any other State or federal antitrust or   anticompetitive law or regulation.             6. Nothing in this Compact shall be construed to be a   waiver of sovereign immunity by the Member States or by   the Commission.   ARTICLE 10- DATA SYSTEM   A. The Commission shall provide for the development, maintenance,   operation, and utilization of a coordinated database and   reporting system.   B. The Commission shall assign each applicant for a Multistate   License a unique identifier, as determined by the Rules of the   Commission.   C. Notwithstanding any other provision of State law to the   contrary, a Member State shall submit a uniform data set to the   Data System on all individuals to whom this Compact is applicable   as required by the Rules of the Commission, including:             1. Identifying information;             2. Licensure data;             3. Adverse Actions against a license and information   related thereto;             4. Non-confidential information related to Alternative   Program participation, the beginning and ending dates   of such participation, and other information related to   such participation;             5. Any denial of application for licensure, and the   reason(s) for such denial (excluding the reporting of   any criminal history record information where   prohibited by law);             6. The existence of Investigative Information;             7. The existence of Current Significant Investigative   Information; and             8. Other information that may facilitate the   administration of this Compact or the protection of the   public, as determined by the Rules of the Commission.   D. The records and information provided to a Member State pursuant   to this Compact or through the Data System, when certified by the   Commission or an agent thereof, shall constitute the   authenticated business records of the Commission, and shall be   entitled to any associated hearsay exception in any relevant   judicial, quasi-judicial or administrative proceedings in a   Member State.   E. The existence of Current Significant Investigative Information   and the existence of Investigative Information pertaining to a   Licensee in any Member State will only be available to other   Member States.   F. It is the responsibility of the Member States to monitor the   database to determine whether Adverse Action has been taken   against such a Licensee or License applicant. Adverse Action   information pertaining to a Licensee or License applicant in any   Member State will be available to any other Member State.   G. Member States contributing information to the Data System may   designate information that may not be shared with the public   without the express permission of the contributing State.   H. Any information submitted to the Data System that is   subsequently expunged pursuant to federal law or the laws of the   Member State contributing the information shall be removed from   the Data System.   ARTICLE 11- RULEMAKING   A. The Commission shall promulgate reasonable Rules in order to   effectively and efficiently implement and administer the   purposes and provisions of the Compact. A Rule shall be invalid   and have no force or effect only if a court of competent   jurisdiction holds that the Rule is invalid because the   Commission exercised its rulemaking authority in a manner that   is beyond the scope and purposes of the Compact, or the powers   granted hereunder, or based upon another applicable standard of   review.   B. The Rules of the Commission shall have the force of law in each   Member State, provided however that where the Rules of the   Commission conflict with the laws of the Member State that   establish the Member State's scope of practice laws governing the   Practice of Cosmetology as held by a court of competent   jurisdiction, the Rules of the Commission shall be ineffective   in that State to the extent of the conflict.   C. The Commission shall exercise its rulemaking powers pursuant to   the criteria set forth in this Article and the Rules adopted   thereunder. Rules shall become binding as of the date specified   by the Commission for each Rule.   D. If a majority of the legislatures of the Member States rejects a   Rule or portion of a Rule, by enactment of a statute or   resolution in the same manner used to adopt the Compact within   four (4) years of the date of adoption of the Rule, then such Rule   shall have no further force and effect in any Member State or to   any State applying to participate in the Compact.   E. Rules shall be adopted at a regular or special meeting of the   Commission.   F. Prior to adoption of a proposed Rule, the Commission shall hold a   public hearing and allow persons to provide oral and written   comments, data, facts, opinions, and arguments.   G. Prior to adoption of a proposed Rule by the Commission, and at   least thirty (30) days in advance of the meeting at which the   Commission will hold a public hearing on the proposed Rule, the   Commission shall provide a notice of proposed rulemaking:             1. On the website of the Commission or other publicly   accessible platform;             2. To persons who have requested notice of the   Commission's notices of proposed rulemaking; and             3. In such other way(s) as the Commission may by Rule   specify.   H. The notice of proposed rulemaking shall include:             1. The time, date, and location of the public hearing at   which the Commission will hear public comments on the   proposed Rule and, if different, the time, date, and   location of the meeting where the Commission will   consider and vote on the proposed Rule;             2. If the hearing is held via telecommunication, video   conference, or other electronic means, the Commission   shall include the mechanism for access to the hearing in   the notice of proposed rulemaking;             3. The text of the proposed Rule and the reason therefor;             4. A request for comments on the proposed Rule from any   interested person; and             5. The manner in which interested persons may submit   written comments.   I. All hearings will be recorded. A copy of the recording and all   written comments and documents received by the Commission in   response to the proposed Rule shall be available to the public.   J. Nothing in this Article shall be construed as requiring a   separate hearing on each Rule. Rules may be grouped for the   convenience of the Commission at hearings required by this   Article.   K. The Commission shall, by majority vote of all members, take   final action on the proposed Rule based on the rulemaking record   and the full text of the Rule.             1. The Commission may adopt changes to the proposed Rule   provided the changes do not enlarge the original   purpose of the proposed Rule.             2. The Commission shall provide an explanation of the   reasons for substantive changes made to the proposed   Rule as well as reasons for substantive changes not made   that were recommended by commenters.             3. The Commission shall determine a reasonable effective   date for the Rule. Except for an emergency as provided   in Article 11.L, the effective date of the Rule shall be   no sooner than forty-five (45) days after the   Commission issuing the notice that it adopted or   amended the Rule.   L. Upon determination that an emergency exists, the Commission may   consider and adopt an emergency Rule with five (5) days' notice,   with opportunity to comment, provided that the usual rulemaking   procedures provided in the Compact and in this Article shall be   retroactively applied to the Rule as soon as reasonably   possible, in no event later than ninety (90) days after the   effective date of the Rule. For the purposes of this provision,   an emergency Rule is one that must be adopted immediately to:             1. Meet an imminent threat to public health, safety, or   welfare;             2. Prevent a loss of Commission or Member State funds;             3. Meet a deadline for the promulgation of a Rule that is   established by federal law or rule; or             4. Protect public health and safety.   M. The Commission or an authorized committee of the Commission may   direct revisions to a previously adopted Rule for purposes of   correcting typographical errors, errors in format, errors in   consistency, or grammatical errors. Public notice of any   revisions shall be posted on the website of the Commission. The   revision shall be subject to challenge by any person for a period   of thirty (30) days after posting. The revision may be   challenged only on grounds that the revision results in a   material change to a Rule. A challenge shall be made in writing   and delivered to the Commission prior to the end of the notice   period. If no challenge is made, the revision will take effect   without further action. If the revision is challenged, the   revision may not take effect without the approval of the   Commission.   N. No Member State's rulemaking requirements shall apply under this   Compact.   ARTICLE 12- OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT   A. Oversight             1.  The executive and judicial branches of State   government in each Member State shall enforce this   Compact and take all actions necessary and appropriate   to implement the Compact.             2.  Venue is proper and judicial proceedings by or against   the Commission shall be brought solely and exclusively   in a court of competent jurisdiction where the   principal office of the Commission is located. The   Commission may waive venue and jurisdictional defenses   to the extent it adopts or consents to participate in   alternative dispute resolution proceedings. Nothing   herein shall affect or limit the selection or propriety   of venue in any action against a Licensee for   professional malpractice, misconduct or any such   similar matter.             3. The Commission shall be entitled to receive service of   process in any proceeding regarding the enforcement or   interpretation of the Compact and shall have standing   to intervene in such a proceeding for all purposes.   Failure to provide the Commission service of process   shall render a judgment or order void as to the   Commission, this Compact, or promulgated Rules.   B. Default, Technical Assistance, and Termination             1. If the Commission determines that a Member State has   defaulted in the performance of its obligations or   responsibilities under this Compact or the promulgated   Rules, the Commission shall provide written notice to   the defaulting State. The notice of default shall   describe the default, the proposed means of curing the   default, and any other action that the Commission may   take, and shall offer training and specific technical   assistance regarding the default.             2. The Commission shall provide a copy of the notice of   default to the other Member States.             3. If a State in default fails to cure the default, the   defaulting State may be terminated from the Compact   upon an affirmative vote of a majority of the delegates   of the Member States, and all rights, privileges and   benefits conferred on that State by this Compact may be   terminated on the effective date of termination. A cure   of the default does not relieve the offending State of   obligations or liabilities incurred during the period   of default.             4. Termination of membership in the Compact shall be   imposed only after all other means of securing   compliance have been exhausted. Notice of intent to   suspend or terminate shall be given by the Commission to   the governor, the majority and minority leaders of the   defaulting State's legislature, the defaulting State's   State Licensing Authority and each of the Member States'   State Licensing Authority.             5. A State that has been terminated is responsible for all   assessments, obligations, and liabilities incurred   through the effective date of termination, including   obligations that extend beyond the effective date of   termination.             6. Upon the termination of a State's membership from this   Compact, that State shall immediately provide notice to   all Licensees who hold a Multistate License within that   State of such termination. The terminated State shall   continue to recognize all licenses granted pursuant to   this Compact for a minimum of one hundred eighty (180)   days after the date of said notice of termination.             7. The Commission shall not bear any costs related to a   State that is found to be in default or that has been   terminated from the Compact, unless agreed upon in   writing between the Commission and the defaulting   State.             8. The defaulting State may appeal the action of the   Commission by petitioning the United States District   Court for the District of Columbia or the federal   district where the Commission has its principal   offices. The prevailing party shall be awarded all   costs of such litigation, including reasonable   attorney's fees.   C. Dispute Resolution             1. Upon request by a Member State, the Commission shall   attempt to resolve disputes related to the Compact that   arise among Member States and between Member and   non-Member States.             2. The Commission shall promulgate a Rule providing for   both mediation and binding dispute resolution for   disputes as appropriate.   D. Enforcement             1. The Commission, in the reasonable exercise of its   discretion, shall enforce the provisions of this   Compact and the Commission's Rules.             2. By majority vote as provided by Commission Rule, the   Commission may initiate legal action against a Member   State in default in the United States District Court for   the District of Columbia or the federal district where   the Commission has its principal offices to enforce   compliance with the provisions of the Compact and its   promulgated Rules.  The relief sought may include both   injunctive relief and damages. In the event judicial   enforcement is necessary, the prevailing party shall be   awarded all costs of such litigation, including   reasonable attorney's fees. The remedies herein shall   not be the exclusive remedies of the Commission. The   Commission may pursue any other remedies available   under federal or the defaulting Member State's law.             3. A Member State may initiate legal action against the   Commission in the United States District Court for the   District of Columbia or the federal district where the   Commission has its principal offices to enforce   compliance with the provisions of the Compact and its   promulgated Rules. The relief sought may include both   injunctive relief and damages. In the event judicial   enforcement is necessary, the prevailing party shall be   awarded all costs of such litigation, including   reasonable attorney's fees.             4. No individual or entity other than a Member State may   enforce this Compact against the Commission.   ARTICLE 13- EFFECTIVE DATE, WITHDRAWAL, AND AMENDMENT   A. The Compact shall come into effect on the date on which the   Compact statute is enacted into law in the seventh Member State.             1. On or after the effective date of the Compact, the   Commission shall convene and review the enactment of   each of the Charter Member States to determine if the   statute enacted by each such Charter Member State is   materially different than the model Compact statute.                   a. A Charter Member State whose enactment is found to   be materially different from the model Compact   statute shall be entitled to the default process   set forth in Article 12.                   b. If any Member State is later found to be in   default, or is terminated or withdraws from the   Compact, the Commission shall remain in existence   and the Compact shall remain in effect even if the   number of Member States should be less than seven   (7).             2. Member States enacting the Compact subsequent to the   Charter Member States shall be subject to the process   set forth in Article 9.C.24 to determine if their   enactments are materially different from the model   Compact statute and whether they qualify for   participation in the Compact.             3. All actions taken for the benefit of the Commission or   in furtherance of the purposes of the administration of   the Compact prior to the effective date of the Compact   or the Commission coming into existence shall be   considered to be actions of the Commission unless   specifically repudiated by the Commission.             4. Any State that joins the Compact shall be subject to the   Commission's Rules and bylaws as they exist on the date   on which the Compact becomes law in that State. Any   Rule that has been previously adopted by the Commission   shall have the full force and effect of law on the day   the Compact becomes law in that State.   B. Any Member State may withdraw from this Compact by enacting a   statute repealing that State's enactment of the Compact.             1. A Member State's withdrawal shall not take effect until   one hundred eighty (180) days after enactment of the   repealing statute.             2. Withdrawal shall not affect the continuing requirement   of the withdrawing State's State Licensing Authority to   comply with the investigative and Adverse Action   reporting requirements of this Compact prior to the   effective date of withdrawal.             3. Upon the enactment of a statute withdrawing from this   Compact, a State shall immediately provide notice of   such withdrawal to all Licensees within that State.   Notwithstanding any subsequent statutory enactment to   the contrary, such withdrawing State shall continue to   recognize all licenses granted pursuant to this Compact   for a minimum of one hundred eighty (180) days after the   date of such notice of withdrawal.   C. Nothing contained in this Compact shall be construed to   invalidate or prevent any licensure agreement or other   cooperative arrangement between a Member State and a non-Member   State that does not conflict with the provisions of this Compact.   D. This Compact may be amended by the Member States. No amendment   to this Compact shall become effective and binding upon any   Member State until it is enacted into the laws of all Member   States.   ARTICLE 14- CONSTRUCTION AND SEVERABILITY   A. This Compact and the Commission's rulemaking authority shall be   liberally construed so as to effectuate the purposes, and the   implementation and administration of the Compact. Provisions of   the Compact expressly authorizing or requiring the promulgation   of Rules shall not be construed to limit the Commission's   rulemaking authority solely for those purposes.   B. The provisions of this Compact shall be severable and if any   phrase, clause, sentence or provision of this Compact is held by   a court of competent jurisdiction to be contrary to the   constitution of any Member State, a State seeking participation   in the Compact, or of the United States, or the applicability   thereof to any government, agency, person or circumstance is   held to be unconstitutional by a court of competent   jurisdiction, the validity of the remainder of this Compact and   the applicability thereof to any other government, agency,   person or circumstance shall not be affected thereby.   C. Notwithstanding Article 14.B, the Commission may deny a State's   participation in the Compact or, in accordance with the   requirements of Article 12, terminate a Member State's   participation in the Compact, if it determines that a   constitutional requirement of a Member State is a material   departure from the Compact. Otherwise, if this Compact shall be   held to be contrary to the constitution of any Member State, the   Compact shall remain in full force and effect as to the remaining   Member States and in full force and effect as to the Member State   affected as to all severable matters.   ARTICLE 15- CONSISTENT EFFECT AND CONFLICT WITH OTHER STATE LAWS   A. Nothing herein shall prevent or inhibit the enforcement of any   other law of a Member State that is not inconsistent with the   Compact.   B. Any laws, statutes, regulations, or other legal requirements in   a Member State in conflict with the 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.          Sec. 1604.002.  ADMINISTRATION OF COMPACT. The Texas   Department of Licensing and Regulation is the Cosmetology Licensure   Compact administrator for this state.          Sec. 1604.003.  RULES. The Texas Commission of Licensing   and Regulation may adopt rules necessary to implement this chapter.          SECTION 2.  This Act takes effect September 1, 2026.