By Kubiak                                       H.B. No. 3446

      75R9057 JMM-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the regulation of the practice of cosmetology.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 4(f), Chapter 1036, Acts of the 62nd

 1-5     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

 1-6     Civil Statutes), is amended to read as follows:

 1-7           (f)  The commission shall [may] recognize, prepare, or

 1-8     administer continuing education programs for the practice of

 1-9     cosmetology.  Participation in the programs is required to renew a

1-10     license [voluntary].  The commission shall adopt rules providing

1-11     the manner by which a person regulated under this Act shall comply

1-12     with this subsection.

1-13           SECTION 2.  Section 9(c), Chapter 1036, Acts of the 62nd

1-14     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

1-15     Civil Statutes), is amended to read as follows:

1-16           (c)  A person may not instruct in the art of cosmetology

1-17     unless he holds an instructor license from this state and the

1-18     instruction is done in a [private] beauty culture school or public

1-19     school cosmetology program.

1-20           SECTION 3.  Section 10(b), Chapter 1036, Acts of the 62nd

1-21     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

1-22     Civil Statutes), is amended to read as follows:

1-23           (b)  An applicant for an operator license must be at least 17

1-24     years of age, have a high school diploma or the equivalent or have

 2-1     passed an Ability to Benefit from Training examination [completed

 2-2     the seventh grade or its equivalent], and have completed 1,500

 2-3     hours of instruction in a licensed beauty culture school [or 1,000

 2-4     hours of instruction in beauty culture courses and 500 hours of

 2-5     related high school courses prescribed by the commission in a

 2-6     public school vocational program].

 2-7           SECTION 4.  Section 11(b), Chapter 1036, Acts of the 62nd

 2-8     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

 2-9     Civil Statutes), is amended to read as follows:

2-10           (b)  An applicant for a manicurist license must be at least

2-11     17 years of age, have a high school diploma or its equivalent or

2-12     have passed an Ability to Benefit from Training examination

2-13     [completed the seventh grade or its equivalent], and have completed

2-14     600 hours of instruction in manicuring through a training program

2-15     approved by the commission.

2-16           SECTION 5.  Section 12(b), Chapter 1036, Acts of the 62nd

2-17     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

2-18     Civil Statutes), is amended to read as follows:

2-19           (b)  An applicant for an instructor license must be at least

2-20     18 years of age, have completed the 12th grade or its equivalent,

2-21     have a valid operator license, and have completed a course

2-22     consisting of 750 hours of instruction in cosmetology courses and

2-23     methods of teaching in a licensed [private] beauty culture school

2-24     or in a vocational training program of a publicly financed

2-25     postsecondary institution or at least two years of verifiable

2-26     experience as a licensed operator [and at least 250 hours of

2-27     instruction in cosmetology in a training program approved by the

 3-1     commission].

 3-2           SECTION 6.  Section 13(b), Chapter 1036, Acts of the 62nd

 3-3     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

 3-4     Civil Statutes), is amended to read as follows:

 3-5           (b)  An applicant for a specialty certificate must be at

 3-6     least 17 years of age, have a high school diploma or its equivalent

 3-7     or have passed an Ability to Benefit from Training examination

 3-8     [completed the seventh grade or its equivalent], and have the

 3-9     necessary requisites as determined by the commission in the

3-10     particular specialty in which certification is sought, including

3-11     training through a training program approved by the commission.

3-12           SECTION 7.  Section 13A(b), Chapter 1036, Acts of the 62nd

3-13     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

3-14     Civil Statutes), is amended to read as follows:

3-15           (b)  An applicant for a facialist specialty license must be

3-16     at least 17 years of age, have a high school diploma or its

3-17     equivalent or have passed an Ability to Benefit from Training

3-18     examination [completed the seventh grade or its equivalent], and

3-19     have the necessary requisites as determined by the commission in

3-20     the facialist specialty.

3-21           SECTION 8.  Section 21, Chapter 1036, Acts of the 62nd

3-22     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

3-23     Civil Statutes), is amended to read as follows:

3-24           Sec. 21.  [Private] beauty culture school license;

3-25     application; refund policy.  (a)  A person holding a [private]

3-26     beauty culture school license may maintain an establishment in

3-27     which any practice of cosmetology is taught.

 4-1           (b)  An applicant for a [private] beauty culture school

 4-2     license must submit an application on a form prescribed by the

 4-3     commission.  Each application must be verified by the applicant and

 4-4     must contain:

 4-5                 (1)  a detailed floor plan of the school building

 4-6     divided into two separate areas, one for instruction in theory and

 4-7     one clinic work area; and

 4-8                 (2)  a statement that the building is fireproof and of

 4-9     permanent type construction, contains a minimum of 3,500 square

4-10     feet of floor space, with separate restrooms for male and female

4-11     students, and contains or will contain before classes commence the

4-12     equipment established by rule of the commission as sufficient to

4-13     properly instruct a minimum of 50 students.

4-14           (c)  The commission shall determine that an applicant for a

4-15     [private] beauty culture school license is financially sound and

4-16     capable of fulfilling the school's commitments for training before

4-17     granting the license.

4-18           (d)  Each application for a [private] beauty culture school

4-19     license must be accompanied by payment of a $500 license fee and a

4-20     $200 inspection fee.  Each application for certification as a

4-21     public secondary or public postsecondary beauty culture school must

4-22     be accompanied by a $200 inspection fee.  The inspection fee is

4-23     charged for each inspection trip required before approval of the

4-24     license or certificate.

4-25           (e)  The facilities of each applicant shall be inspected.

4-26     The applicant is entitled to a [private] beauty culture school

4-27     license if the inspection shows that this Act and the rules of the

 5-1     commission have been met and the applicant has not committed an act

 5-2     that constitutes a ground for denial of a license.

 5-3           (f)  Each holder of a [private] beauty culture school license

 5-4     must maintain a cancellation and settlement policy that provides a

 5-5     full refund of all money paid by a student if:

 5-6                 (1)  the student cancels the enrollment agreement or

 5-7     contract not later than midnight of the third day after the date on

 5-8     which the agreement or contract is signed by the prospective

 5-9     student, excluding Saturdays, Sundays, and legal holidays; or

5-10                 (2)  the enrollment of the student was procured as a

5-11     result of a misrepresentation made in the advertising or

5-12     promotional materials of the school or a representation by an owner

5-13     or representative of the school.

5-14           (g)  Each holder of a [private] beauty culture school license

5-15     must maintain a refund policy for the refund of the unused part of

5-16     tuition, fees, and other charges assessed a student if the student,

5-17     at the expiration of the cancellation period established under

5-18     Subsection (f) of this section, fails to enter the course of

5-19     training, withdraws from the course of training, or is terminated

5-20     from the course of training before completion of the course.  The

5-21     refund policy must provide that:

5-22                 (1)  a refund is based on the period of the student's

5-23     enrollment, computed on the basis of course time expressed in clock

5-24     hours;

5-25                 (2)  the effective date of the termination for refund

5-26     purposes is the earliest of:

5-27                       (A)  the last date of attendance, if the student

 6-1     is terminated by the school;

 6-2                       (B)  the date of receipt by the license holder of

 6-3     written notice of withdrawal by the student; or

 6-4                       (C)  10 school days after the last date of

 6-5     attendance; and

 6-6                 (3)  if tuition is collected before beginning the

 6-7     course of training and if, after the expiration of the cancellation

 6-8     period, the student does not begin the course of training, the

 6-9     school may retain not more than $100.

6-10           (h)  If a student who begins a course of training that is

6-11     scheduled to run not more than 12 months withdraws from the course

6-12     or is terminated from the course by the school, the [private]

6-13     beauty culture school may retain 100 percent of the tuition and

6-14     fees paid by that student and is not obligated to refund any

6-15     additional outstanding tuition if the student withdraws or is

6-16     terminated during the last 50 percent of the course.  If the

6-17     student withdraws or is terminated before the last 50 percent of

6-18     the course begins, the school shall refund the following

6-19     percentages of any outstanding tuition:

6-20                 (1)  for withdrawal or termination occurring during the

6-21     first week or first one-tenth of the course, whichever is less, 90

6-22     percent;

6-23                 (2)  for withdrawal or termination occurring after the

6-24     first week or first one-tenth of the course, whichever is less, but

6-25     within the first three weeks of the course, 80 percent;

6-26                 (3)  for withdrawal or termination occurring after the

6-27     first three weeks of the course but not later than the completion

 7-1     of the first 25 percent of the course, 75 percent; and

 7-2                 (4)  for withdrawal or termination occurring not later

 7-3     than the completion of the second 25 percent of the course, 50

 7-4     percent.

 7-5           (i)  For students voluntarily withdrawing or terminating

 7-6     after 50 percent of the course has been completed, the school must

 7-7     allow that student to reenter at any time during the 48-month

 7-8     period following the date of withdrawal or termination.

 7-9           (j)  A refund owed under this section must be paid not later

7-10     than the 30th day after the date on which the student becomes

7-11     eligible for the refund.

7-12           (k)  If a refund is not made within the period required by

7-13     this section, the school shall pay interest on the refund for the

7-14     interval beginning with the first day following the expiration of

7-15     the refund period and ending with the day immediately preceding the

7-16     date the refund is made.  If the refund is made to a lending

7-17     institution, the interest shall also be paid to that institution

7-18     and applied against the student's loan.  The commissioner of

7-19     education annually shall establish the level of interest at a level

7-20     sufficient to provide a deterrent to the retention of student

7-21     funds.  The commission may exempt a school from the payment of the

7-22     interest if the school makes a good faith effort to refund the

7-23     tuition but is unable to locate the student.  The school shall

7-24     provide to the commission on request documentation of the effort to

7-25     locate the student.

7-26           (l)  A [private] beauty culture school shall record a grade

7-27     of "incomplete" for a student who withdraws but is not entitled to

 8-1     a refund under Subsection (h) of this section if the student

 8-2     requests the grade at the time the student withdraws and if the

 8-3     student withdraws for an appropriate reason unrelated to the

 8-4     student's academic status.  A student who receives a grade of

 8-5     incomplete may re-enroll in the program during the 48-month period

 8-6     following the date the student withdraws and complete those

 8-7     incomplete subjects without payment of additional tuition.

 8-8           SECTION 9.  Sections 21A(a), (d), (e), (f), (i), (k), and

 8-9     (l), Chapter 1036, Acts of the 62nd Legislature, Regular Session,

8-10     1971 (Article 8451a, Vernon's Texas Civil Statutes), are amended to

8-11     read as follows:

8-12           (a)  In addition to the bond requirements imposed under

8-13     Section 21(c) of this Act, at the time that each [private] beauty

8-14     culture school pays its annual renewal fee, in the years provided

8-15     by Subsection (c) of this section, the commission shall also

8-16     collect a fee from the school for deposit in a special fund

8-17     established in the state treasury called the [private] beauty

8-18     culture school tuition protection fund.

8-19           (d)  The comptroller [state treasurer] shall invest the fund

8-20     in the same manner as other state funds.  Sufficient funds from the

8-21     tuition protection fund shall be appropriated to the commission for

8-22     the purpose outlined in this section.  The commission shall

8-23     administer claims made against the fund.

8-24           (e)  If a school closes, the commission shall attempt to

8-25     arrange for students of the closed school to attend another

8-26     [private] beauty culture school.

8-27           (f)  The expense incurred by a [private] beauty culture

 9-1     school in providing training that is directly related to educating

 9-2     a student who was enrolled in a closed school and placed in the

 9-3     school under this section, including the applicable tuition for the

 9-4     period of time for which the student has paid tuition, shall be

 9-5     paid from the [private] beauty culture school tuition protection

 9-6     fund.

 9-7           (i)  Refunds shall be paid from the [private] beauty culture

 9-8     school tuition protection fund in an amount not to exceed $35,000.

 9-9           (k)  Attorney fees, court costs, or damages may not be paid

9-10     from the [private] beauty culture school tuition protection fund.

9-11           (l)  Section 403.094(h), Government Code, does not apply to

9-12     the [private] beauty culture school tuition protection fund.

9-13           SECTION 10.  Section 21B, Chapter 1036, Acts of the 62nd

9-14     Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

9-15     Civil Statutes), is amended to read as follows:

9-16           Sec. 21B.  COURSE LENGTH AND CURRICULUM OF [PRIVATE] BEAUTY

9-17     CULTURE SCHOOL.  (a)  A [private] beauty culture school must submit

9-18     to the commission for approval the course lengths and curriculum

9-19     content for each course offered by the school.  The course lengths

9-20     and content may not be implemented unless the commission approves

9-21     them.  The course lengths and content shall reasonably ensure that

9-22     students develop the job skills and knowledge necessary for

9-23     employment.

9-24           (b)  The commission shall require a school to account fully

9-25     for all curriculum contents and course lengths before issuing or

9-26     renewing a license, and a school that is manipulating course

9-27     lengths below or above industry standards shall be placed on

 10-1    probation until justification for the deviation is proved or the

 10-2    practice ceases.

 10-3          SECTION 11.  Section 22, Chapter 1036, Acts of the 62nd

 10-4    Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

 10-5    Civil Statutes), is amended to read as follows:

 10-6          Sec. 22.  [Private] Beauty Culture Schools.  (a)  The holder

 10-7    of a [private] beauty culture school license shall:

 10-8                (1)  maintain a sanitary establishment;

 10-9                (2)  maintain on its staff and on duty during business

10-10    hours one full-time instructor licensed under this Act for each 25

10-11    students in attendance;

10-12                (3)  maintain a daily record of attendance of students;

10-13                (4)  establish regular class and instruction hours and

10-14    grades, and hold examinations before issuing diplomas;

10-15                (5)  require a school term of not less than nine months

10-16    and not less than 1,500 hours instruction for a complete course in

10-17    cosmetology;

10-18                (6)  require a school term of not less than 600 hours

10-19    instruction for a complete course in manicuring;

10-20                (7)  require no student to work or be instructed or

10-21    receive credit for more than 48 hours of instruction in any one

10-22    calendar week;

10-23                (8)  maintain a copy of its curriculum in a conspicuous

10-24    [conspicious] place and verify that this curriculum is being

10-25    followed as to subject matter being taught; and

10-26                (9)  submit to the executive director the name of each

10-27    student within 10 days after enrollment in the school and notify

 11-1    the executive director of the withdrawal or graduation of a student

 11-2    within 10 days of the withdrawal or graduation.

 11-3          (b)  Each holder of a [private] beauty culture school license

 11-4    shall furnish to the commission:

 11-5                (1)  the current course completion rates of students

 11-6    who attend a course of instruction offered by the school; and

 11-7                (2)  job placement rates and employment rates of

 11-8    students who complete a course of instruction.

 11-9          (c)  On the graduation of a student from a course of training

11-10    offered by a [private] beauty culture school or the student's

11-11    withdrawal or transfer from a course of training without completion

11-12    of the training, the [private] beauty culture school shall send the

11-13    commission a certified written copy of the student's record,

11-14    indicating all course hours completed by the student and whether

11-15    the agreed tuition has been paid.

11-16          (d)  A holder of a [private] beauty culture school license

11-17    shall furnish each prospective student with:

11-18                (1)  a copy of the course outline;

11-19                (2)  a schedule of the tuition and other fees assessed;

11-20                (3)  the refund policy required under Section 21 of

11-21    this Act;

11-22                (4)  school regulations relating to absences;

11-23                (5)  the school grading policy;

11-24                (6)  the school rules of operation and conduct;

11-25                (7)  school regulations relating to incomplete grades;

11-26                (8)  the name, mailing address, and telephone number of

11-27    the commission for the purpose of directing complaints to the

 12-1    commission; and

 12-2                (9)  the current rates of job placement and employment

 12-3    of students who complete a course of training.

 12-4          (e)  A holder of a [private] beauty culture school license

 12-5    shall publish in its catalogue and enrollment contract a

 12-6    description of the refund policy required under Section 21 of this

 12-7    Act.

 12-8          (f)  If the commission has reasonable cause to believe that a

 12-9    [private] beauty culture school has violated this Act or a rule

12-10    adopted under this Act, the commission may order a peer review of

12-11    the school or suspend the admission of students to the school.  A

12-12    peer review ordered under this subsection shall be conducted by a

12-13    peer review team composed of knowledgeable persons selected by the

12-14    commission.  The commission shall attempt to provide a balance on

12-15    each team between members assigned to the team who are from this

12-16    state and those who are from other states.  The team shall provide

12-17    the commission with an objective assessment of the content of the

12-18    school's curriculum and its application.  The school under review

12-19    shall pay the costs of the peer review.

12-20          (g)  A [private] beauty culture school that violates this Act

12-21    or a rule adopted under this Act is liable for a civil penalty in

12-22    addition to any injunctive relief or other remedy provided by law.

12-23    The civil penalty may not exceed $1,000 a day for each violation.

12-24    The attorney general, at the request of the commission, may bring a

12-25    civil action to collect a civil penalty under this subsection.

12-26    Civil penalties recovered in a suit brought under this subsection

12-27    shall be deposited in the state treasury to the credit of the

 13-1    General Revenue Fund.

 13-2          SECTION 12.  Section 23, Chapter 1036, Acts of the 62nd

 13-3    Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

 13-4    Civil Statutes), is amended to read as follows:

 13-5          Sec. 23.  Transfer of Hours of Instruction.  Any student of a

 13-6    [private] beauty culture school or a vocational cosmetology program

 13-7    in a public school may transfer completed hours of instruction to a

 13-8    [private] beauty culture school or vocational cosmetology program

 13-9    in a public school in this state.  A transcript showing the number

13-10    and courses of completed hours certified by the school in which the

13-11    instruction was given must be submitted to the executive director.

13-12    In evaluating the student's transcript, the executive director

13-13    shall determine whether the agreed tuition has been paid.  If the

13-14    tuition has not been paid, the executive director shall notify the

13-15    student that his or her transcript cannot be certified to the

13-16    school to which the student desires a transfer until proof of paid

13-17    tuition is provided.  On evaluation and approval, the executive

13-18    director shall certify in writing to the student and to the school

13-19    to which the student desires a transfer that the stated hours and

13-20    courses have been successfully completed and that the student is

13-21    not required to repeat the instructions.

13-22          SECTION 13.  Section 25, Chapter 1036, Acts of the 62nd

13-23    Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

13-24    Civil Statutes), is amended to read as follows:

13-25          Sec. 25.  [Private] Beauty Culture Schools and Beauty Shops.

13-26    Beauty [Private beauty] culture schools, beauty shops, or specialty

13-27    shops may not be conducted in the same quarters or on the same

 14-1    premises unless they are separated by walls of permanent

 14-2    construction with no openings in them.

 14-3          SECTION 14.  Section 26(a), Chapter 1036, Acts of the 62nd

 14-4    Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

 14-5    Civil Statutes), is amended to read as follows:

 14-6          (a)  A [private] beauty culture school may not employ a

 14-7    person holding an operator or manicurist license or a specialty

 14-8    certificate solely to perform the practices of cosmetology for

 14-9    which the person is licensed or certified or employ a person

14-10    holding an instructor license to perform any acts or practices of

14-11    cosmetology.

14-12          SECTION 15.  Section 32(b), Chapter 1036, Acts of the 62nd

14-13    Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

14-14    Civil Statutes), is amended to read as follows:

14-15          (b)  A person holding a beauty or specialty shop license, a

14-16    [private] beauty culture school license, or a license to operate a

14-17    vocational cosmetology program in a public school may not employ

14-18    any person to perform any practice or practices of cosmetology

14-19    knowing that the licensee is suffering from an infectious or

14-20    contagious disease.

14-21          SECTION 16.  Sections 33(a), (e), and (h), Chapter 1036, Acts

14-22    of the 62nd Legislature, Regular Session, 1971 (Article 8451a,

14-23    Vernon's Texas Civil Statutes), are amended to read as follows:

14-24          (a)  Except as provided by Subsection (d) of this section,

14-25    all licenses and certificates issued under this Act, except

14-26    temporary and [private] beauty culture school licenses, expire on

14-27    the first anniversary of [two years from] the date of issue.

 15-1          (e)  A license that has been expired for less than 90 [30]

 15-2    days may be renewed.  A renewal license shall be issued on

 15-3    submission of a completed application form prescribed by the

 15-4    commission and payment of the renewal fee, plus a $10 delinquency

 15-5    fee.

 15-6          (h)  A [private] beauty culture school license that has been

 15-7    expired for more than 90 [30] days may not be renewed.  The

 15-8    licensee may apply for an original license under the current

 15-9    requirements and fees.  The commission may not accept credit hours

15-10    for examination after the 30th day of expiration of a license

15-11    subject to this subsection.

15-12          SECTION 17.  Chapter 1036, Acts of the 62nd Legislature,

15-13    Regular Session, 1971 (Article 8451a, Vernon's Texas Civil

15-14    Statutes), is amended by adding Section 33A to read as follows:

15-15          Sec. 33A.  INACTIVE STATUS.  (a)  A person who holds a

15-16    license under this Act and who is not actively engaged in the

15-17    activities for which the person is licensed may apply to the

15-18    commission in writing to be placed on inactive status.  A person

15-19    must apply for inactive status before the expiration of the

15-20    person's license.

15-21          (b)  A person must pay an annual inactive status fee of $20

15-22    during the time the person is on inactive status.

15-23          (c)  A person on inactive status may not perform any activity

15-24    regulated under this Act.

15-25          (d)  A person on inactive status must meet the continuing

15-26    education requirements of this Act while the person is on inactive

15-27    status.

 16-1          (e)  A person on inactive status must notify the commission

 16-2    in writing in order to reenter active practice.  On determination

 16-3    by the commission that the person has complied with the

 16-4    requirements of this section for inactive status and on payment of

 16-5    the appropriate license renewal fee, the commission shall remove

 16-6    the person from inactive status and place the person on active

 16-7    status.

 16-8          SECTION 18.  Section 34(a), Chapter 1036, Acts of the 62nd

 16-9    Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas

16-10    Civil Statutes), is amended to read as follows:

16-11          (a)  Renewal fees under this Act are:

16-12                (1)  Operator or specialty license                 $35;

16-13                (2)  Instructor license                            $50;

16-14                (3)  Manicurist license                            $35;

16-15                (4)  Beauty [Private beauty] school license    $200 per

16-16    year; and

16-17                (5)  Beauty or specialty shop license             $45. 

16-18          SECTION 19.  (a) This Act takes effect September 1, 1997.

16-19          (b)  Section 21C, Chapter 1036, Acts of the 62nd Legislature,

16-20    Regular Session, 1971 (Article 8451a, Vernon's Texas Civil

16-21    Statutes), is repealed.

16-22          SECTION 20.  The importance of this legislation and the

16-23    crowded condition of the calendars in both houses create an

16-24    emergency and an imperative public necessity that the

16-25    constitutional rule requiring bills to be read on three several

16-26    days in each house be suspended, and this rule is hereby suspended.