§ 24-60-4901 — Compact approved and ratified

The general assembly
approves and ratifies, and the governor shall enter into, a compact on behalf of the
state of Colorado and any of the United States or other jurisdictions legally joining
in the compact in the form substantially as follows:

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. Alternative Program means a non-disciplinary monitoring or
prosecutorial diversion program approved by a Member State's State Licensing
Authority.

D. Authorization to Practice means a legal authorization associated with a
Multistate License permitting the Practice of Cosmetology in that Remote State,
which is subject to the enforcement jurisdiction of the State Licensing Authority in
that Remote State.

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 CFR 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 that 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 in which 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 that disqualifies 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 may 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 affects 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 is 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 is subject to the State requirements for the issuance of a
Single-State License in the new Home State.

D. Nothing in this Compact interferes 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 interferes 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 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 overrides 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, the membership of which 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 is not affected;

7. Maintain and certify records and information provided to a Member State
as the authenticated business records of the Commission and designate an agent to
do so on the Commission's behalf;

8. Purchase and maintain insurance and bonds;

9. Borrow, accept, or contract for services of personnel, including, 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, 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, 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 by the Executive
Committee, 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 or 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 are immune from suit and liability, both personally and in their
official capacity, for any claim for damage to or loss of property or personal injury
or other civil liability caused by or arising out of any actual or alleged act, error, or
omission that occurred, or that the person against whom the claim is made had a
reasonable basis for believing occurred within the scope of Commission
employment, duties, or responsibilities; provided that nothing in this paragraph H.1.
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 does 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, 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 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 hereunder, or based upon another applicable
standard of review.

B. The Rules of the Commission 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 are ineffective in that State to the extent of the
conflict.

C. The Commission shall exercise its rulemaking powers pursuant to the
criteria set forth in this Article and the Rules adopted 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 has 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 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 is 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 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 affects or limits 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 renders 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 are not 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 comes 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 is 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 remains in existence and the
Compact remains 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 are 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 is 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 has 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 does not affect the continuing requirement of the withdrawing
State's State Licensing Authority to comply with the investigative and Adverse
Action reporting requirements of this Compact 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 becomes 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, of 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 is held to be contrary to the constitution of any
Member State, the Compact remains 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 prevents or inhibits 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.

Legislative History

Source: L. 2024: Entire part added, (HB 24-1111), ch. 381, p. 2575, � 1, effective August 7.