Enters NJ in Cosmetology Licensure Compact.

S3636

SENATE, No. 3636

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 24, 2026

Sponsored by:

Senator� ANGELA V. MCKNIGHT

District 31 (Hudson)

Co-Sponsored by:

Senator Burgess

SYNOPSIS

���� Enters NJ in Cosmetology Licensure Compact.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning the Cosmetology Licensure Compact and
supplementing Title 45 of the Revised Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� The State of New Jersey
enacts and enters into the Cosmetology Licensure Compact with all other
jurisdictions that legally join in the compact in the form substantially as
follows:�

ARTICLE
I: Purpose and Objectives

���� 1.��� 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, 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.

���� 2.��� 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; and

���� 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
II: Definitions

���� 1.��� 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), and the Division of Consumer Affairs in the
Department of Law and Public Safety.

���� f.���� �Charter member state�
means member states who have enacted legislation to adopt this compact where
the legislation predates the effective date of this compact as defined in Article
XIII.

���� 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 IX, and which shall operate as an instrumentality of the
member states.

���� h.��� �Cosmetologist� means an
individual licensed in their home state to practice cosmetology.� For purposes
of this compact, �cosmetologist� shall mean the same as
�cosmetologist-hairstylist,� as defined pursuant to section 3 of P.L.1984,
c.205 (C.45:5B-3).

���� 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.�
For the purposes of this compact, �cosmetology,� �cosmetology services,� and
the �practice of cosmetology� shall mean the same as �cosmetology and
hairstyling,� as defined pursuant to subsection 3 of P.L.1984, c.205
(C.45:5B-3).

���� j.���� �Current significant
investigative information� means 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 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
III: Member State Requirements

����

���� 1.��� To be eligible to join
this compact, and to maintain eligibility as a member state, a state shall:

���� a.���� License and regulate
cosmetology;

���� b.��� Have a mechanism or
entity in place to receive and investigate complaints about licensees
practicing in that state;

���� c.���� 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;

���� d.��� Require that licensees
satisfy educational or training requirements in cosmetology prior to being
licensed to provide cosmetology services to the public in that state;

���� e.���� Implement procedures
for considering one or more of the following categories of information from
applicants for licensure: criminal history; disciplinary history; or background
check.� The procedures may include the submission of information by applicants
for the purpose of obtaining an applicant�s background check as defined herein;

���� f.���� Participate in the data
system, including through the use of unique identifying numbers;

���� g.��� Share information
related to adverse actions with the Commission and other member states, both
through the data system and otherwise;

���� h.��� 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;

���� i.���� Comply with the rules
as may be enacted by the Commission to administer the compact; and

���� j.���� Accept licensees from
other member states as established herein.

���� 2.��� Member states may charge
a fee for granting a license to practice cosmetology.� 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.

���� 3.��� Nothing in this compact
shall affect the requirements established by a member state for the issuance of
a single-state license.� 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.� 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
IV: Multistate License

���� 1.��� a.� To be eligible to
apply to their home state�s state licensing authority for an initial multistate
license under this compact, a licensee shall 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 the multistate license.

���� d.��� A multistate license to
practice cosmetology issued by a member state�s state licensing authority shall
be recognized by each member state as authorizing the practice thereof as
though the 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 shall
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
V: Reissuance of a Multistate License by a New Home State

���� 1.��� 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 the 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 shall 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.�

���� (5)�� 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.

���� (6)�� 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.

���� (7)�� Nothing in this compact
shall interfere with the requirements established by a member state for the
issuance of a single-state license.

ARTICLE
VI: Authority of Interstate Compact Commission and Member State Licensing
Authority

���� 1.��� 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
adverse action to the other member states through the data system in addition
to any other methods the Commission may by rule require.

ARTICLE
VII: Adverse Actions

���� 1.��� 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 the 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 an investigation.� The state licensing authority shall
also be empowered to report the results of the 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; and

���� (6)�� Take adverse action
against the licensee's authorization to practice in that state based on the
factual findings of another remote state.�

���� d.��� A licensee's home state
shall complete any pending investigation of a cosmetologist who changes their
primary state of residence during the course of the investigation.� The home
state shall also have the authority to take appropriate action 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.��� (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
VIII: Active Military Members and Their Spouses

���� 1.��� 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 IX:
Establishment and Operation of the Cosmetology

������������������ ��
���Licensure Compact Commission

���� 1.��� 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 XIII.

���� b.��� (1) Each member state
shall have and be limited to one 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 actions
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 the 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 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 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 other functions
as may be necessary or appropriate to achieve the purposes of this compact.

���� d.��� (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 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 IX.�

���� (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 paragraph 4 of
subsection f. of Article IX.�

���� (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.���� (1)� All meetings of
the Commission that are not closed pursuant to paragraph 4 of subsection f. of
Article IX shall be open to the public.� Notice of public meetings shall be
posted on the Commission's website at least 30 days prior to the public meeting.

���� (2)�� Notwithstanding
paragraph 1 of subsection f. of Article IX, the Commission may convene an
emergency public meeting by providing at least 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 subsection l of Article XI.� 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
shall be closed and reference each relevant exempting provision, and the
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 the minutes.�
All minutes and documents of a closed meeting shall remain under seal, subject
to release only by a majority vote of the Commission or order of a court of
competent jurisdiction. �

���� g.��� (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
shall 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.��� (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 a 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 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 the 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 Antitrust Act of 1890 (15 U.S.C. s.1 et seq.), the
Clayton Antitrust Act of 1914 (15 U.S.C. s.12 et al.), 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
X: Data System

���� 1.��� 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 participation, and other information related to the
participation;

���� (5)�� Any denial of
application for licensure, and the reason for the denial, excluding the
reporting of any criminal history record information 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 shall
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 a licensee or license applicant.�
Adverse action information pertaining to a licensee or license applicant in any
member state shall 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
XI: Rulemaking

���� 1.��� 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 years of the date of adoption of the rule, then the 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 days in advance of the
meeting at which the Commission shall 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
other ways 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 shall hear public
comments on the proposed rule and, if different, the time, date, and location
of the meeting where the Commission shall 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 shall be
recorded.� A copy of the recording and all written comments and documents
received by the Commission in response to the proposed rule shall be available
to the public.

���� j.���� 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 subsection l. of Article XI, the effective date of the rule shall
be no sooner than 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 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 90 days after the effective date of the rule.� For the purposes of
this provision, an emergency rule is one that shall 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 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 shall 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
XII: Oversight, Dispute Resolution, and Enforcement

���� 1.��� a.� (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 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 the 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.��� (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
termination.� The terminated state shall continue to recognize all licenses granted
pursuant to this compact for a minimum of 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 U.S. 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 litigation,
including reasonable attorney's fees.

���� c.���� (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.��� (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 U.S. District Court for the District of Columbia
or the federal district where the Commission has its principal offices to enforce
compliance with the 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 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 U.S. District Court for the
District of Columbia or the federal district where the Commission has its
principal offices to enforce compliance with the 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 litigation, including reasonable attorney's
fees.

���� (4)�� No individual or entity
other than a member state may enforce this compact against the Commission.

ARTICLE
XIII: Effective Date, Withdrawal, and Amendment

���� 1.��� 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 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 XII.

���� (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.�

���� (2)�� Member states enacting
the compact subsequent to the charter member states shall be subject to the
process set forth in paragraph 24 of subsection c. of Article IX to determine
if enactments are materially different from the model compact statute and if
the state qualifies 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 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 a withdrawal to all licensees within that state.� Notwithstanding any
subsequent statutory enactment to the contrary, a withdrawing state shall continue
to recognize all licenses granted pursuant to this compact for a minimum of 180
days after the date of a 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
XIV: Construction and Severability

���� 1.� 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 subsection
b. of Article XIV, the Commission may deny a state's participation in the
compact or, in accordance with the requirements of Article XII, 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
XV: Consistent Effect and Conflict with Other State Laws

���� 1.��� 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.

���� 2.��� This act shall take
effect immediately.

STATEMENT

����

���� This bill will enter New
Jersey into the Cosmetology Licensure Compact.� The compact establishes a
multistate license system in which an individual licensed as a cosmetologist
needs only to obtain licensure in one state that is a party to the compact in order
to practice as a cosmetologist in another member state to the compact, so long
as certain requirements established under the compact are met by the
individual.� Under the bill, provisions are established regarding, among other
items, the authority of a member state�s licensing authority; how an adverse
action against a multistate licensee is managed; the set-up of the Cosmetology
Licensure Compact Commission and its Executive Committee; the collection of
data on member states; and how to withdraw from the compact, if sought by a
member state.