Bill Text: TX HB705 | 2025-2026 | 89th Legislature | Enrolled

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Bill Title: Relating to the Cosmetology Licensure Compact; authorizing fees.

Sponsorship: Bipartisan Bill

Status: (Vetoed) 2025-06-22 - Vetoed by the Governor [HB705 Detail]

Download: Texas-2025-HB705-Enrolled.html

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H.B. No. 705

AN ACT
relating to the Cosmetology Licensure Compact; authorizing fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 9, Occupations Code, is amended by adding
Chapter 1604 to read as follows:
CHAPTER 1604. COSMETOLOGY LICENSURE COMPACT
Sec. 1604.001. COSMETOLOGY LICENSURE COMPACT. The
Cosmetology Licensure Compact is enacted and entered into with all
other jurisdictions that legally join the compact, which reads as
follows:
COSMETOLOGY LICENSURE COMPACT
ARTICLE 1- PURPOSE
The purpose of this Compact is to facilitate the interstate
practice and regulation of Cosmetology with the goal of improving
public access to, and the safety of, Cosmetology Services and
reducing unnecessary burdens related to Cosmetology licensure.
Through this Compact, the Member States seek to establish a
regulatory framework which provides for a new multistate licensing
program. Through this new licensing program, the Member States
seek to provide increased value and mobility to licensed
Cosmetologists in the Member States, while ensuring the provision
of safe, effective, and reliable services to the public.
This Compact is designed to achieve the following objectives, and
the Member States hereby ratify the same intentions by subscribing
hereto:
A. Provide opportunities for interstate practice by Cosmetologists
who meet uniform requirements for multistate licensure;
B. Enhance the abilities of Member States to protect public health
and safety, and prevent fraud and unlicensed activity within the
profession;
C. Ensure and encourage cooperation between Member States in the
licensure and regulation of the Practice of Cosmetology;
D. Support relocating military members and their spouses;
E. Facilitate the exchange of information between Member States
related to the licensure, investigation, and discipline of the
Practice of Cosmetology;
F. Provide for the licensure and mobility of the workforce in the
profession, while addressing the shortage of workers and
lessening the associated burdens on the Member States.
ARTICLE 2- DEFINITIONS
As used in this Compact, and except as otherwise provided, the
following definitions shall govern the terms herein:
A. "Active Military Member" means any person with full-time duty
status in the armed forces of the United States, including
members of the National Guard and Reserve.
B. "Adverse Action" means any administrative, civil, equitable, or
criminal action permitted by a Member State's laws which is
imposed by a State Licensing Authority or other regulatory body
against a Cosmetologist, including actions against an
individual's license or Authorization to Practice such as
revocation, suspension, probation, monitoring of the Licensee,
limitation of the Licensee's practice, or any other Encumbrance
on a license affecting an individual's ability to participate in
the Cosmetology industry, including the issuance of a cease and
desist order.
C. "Authorization to Practice" means a legal authorization
associated with a Multistate License permitting the Practice of
Cosmetology in that Remote State, which shall be subject to the
enforcement jurisdiction of the State Licensing Authority in
that Remote State.
D. "Alternative Program" means a non-disciplinary monitoring or
prosecutorial diversion program approved by a Member State's
State Licensing Authority.
E. "Background Check" means the submission of information for an
applicant for the purpose of obtaining that applicant's criminal
history record information, as further defined in 28 C.F.R. §
20.3(d), from the Federal Bureau of Investigation and the agency
responsible for retaining State criminal or disciplinary history
in the applicant's Home State.
F. "Charter Member State" means Member States who have enacted
legislation to adopt this Compact where such legislation
predates the effective date of this Compact as defined in Article
13.
G. "Commission" means the government agency whose membership
consists of all States that have enacted this Compact, which is
known as the Cosmetology Licensure Compact Commission, as
defined in Article 9, and which shall operate as an
instrumentality of the Member States.
H. "Cosmetologist" means an individual licensed in their Home State
to practice Cosmetology.
I. "Cosmetology", "Cosmetology Services", and the "Practice of
Cosmetology" mean the care and services provided by a
Cosmetologist as set forth in the Member State's statutes and
regulations in the State where the services are being provided.
J. "Current Significant Investigative Information" means:
1. Investigative Information that a State Licensing
Authority, after an inquiry or investigation that
complies with a Member State's due process
requirements, has reason to believe is not groundless
and, if proved true, would indicate a violation of that
State's laws regarding fraud or the Practice of
Cosmetology; or
2. Investigative Information that indicates that a
Licensee has engaged in fraud or represents an
immediate threat to public health and safety,
regardless of whether the Licensee has been notified
and had an opportunity to respond.
K. "Data System" means a repository of information about Licensees,
including, but not limited to, license status, Investigative
Information, and Adverse Actions.
L. "Disqualifying Event" means any event which shall disqualify an
individual from holding a Multistate License under this Compact,
which the Commission may by Rule or order specify.
M. "Encumbered License" means a license in which an Adverse Action
restricts the Practice of Cosmetology by a Licensee, or where
said Adverse Action has been reported to the Commission.
N. "Encumbrance" means a revocation or suspension of, or any
limitation on, the full and unrestricted Practice of Cosmetology
by a State Licensing Authority.
O. "Executive Committee" means a group of delegates elected or
appointed to act on behalf of, and within the powers granted to
them by, the Commission.
P. "Home State" means the Member State which is a Licensee's
primary State of residence, and where that Licensee holds an
active and unencumbered license to practice Cosmetology.
Q. "Investigative Information" means information, records, or
documents received or generated by a State Licensing Authority
pursuant to an investigation or other inquiry.
R. "Jurisprudence Requirement" means the assessment of an
individual's knowledge of the laws and rules governing the
Practice of Cosmetology in a State.
S. "Licensee" means an individual who currently holds a license
from a Member State to practice as a Cosmetologist.
T. "Member State" means any State that has adopted this Compact.
U. "Multistate License" means a license issued by and subject to
the enforcement jurisdiction of the State Licensing Authority in
a Licensee's Home State, which authorizes the Practice of
Cosmetology in Member States and includes Authorizations to
Practice Cosmetology in all Remote States pursuant to this
Compact.
V. "Remote State" means any Member State, other than the Licensee's
Home State.
W. "Rule" means any rule or regulation promulgated by the
Commission under this Compact which has the force of law.
X. "Single-State License" means a Cosmetology license issued by a
Member State that authorizes practice of Cosmetology only within
the issuing State and does not include any authorization outside
of the issuing State.
Y. "State" means a State, territory, or possession of the United
States and the District of Columbia.
Z. "State Licensing Authority" means a Member State's regulatory
body responsible for issuing Cosmetology licenses or otherwise
overseeing the Practice of Cosmetology in that State.
ARTICLE 3- MEMBER STATE REQUIREMENTS
A. To be eligible to join this Compact, and to maintain eligibility
as a Member State, a State must:
1. License and regulate Cosmetology;
2. Have a mechanism or entity in place to receive and
investigate complaints about Licensees practicing in
that State;
3. Require that Licensees within the State pass a
Cosmetology competency examination prior to being
licensed to provide Cosmetology Services to the public
in that State;
4. Require that Licensees satisfy educational or training
requirements in Cosmetology prior to being licensed to
provide Cosmetology Services to the public in that
State;
5. Implement procedures for considering one or more of the
following categories of information from applicants for
licensure: criminal history; disciplinary history; or
Background Check. Such procedures may include the
submission of information by applicants for the purpose
of obtaining an applicant's Background Check as defined
herein;
6. Participate in the Data System, including through the
use of unique identifying numbers;
7. Share information related to Adverse Actions with the
Commission and other Member States, both through the
Data System and otherwise;
8. Notify the Commission and other Member States, in
compliance with the terms of the Compact and Rules of
the Commission, of the existence of Investigative
Information or Current Significant Investigative
Information in the State's possession regarding a
Licensee practicing in that State;
9. Comply with such Rules as may be enacted by the
Commission to administer the Compact; and
10. Accept Licensees from other Member States as
established herein.
B. Member States may charge a fee for granting a license to practice
Cosmetology.
C. Individuals not residing in a Member State shall continue to be
able to apply for a Member State's Single-State License as
provided under the laws of each Member State. However, the
Single-State License granted to these individuals shall not be
recognized as granting a Multistate License to provide services
in any other Member State.
D. Nothing in this Compact shall affect the requirements
established by a Member State for the issuance of a Single-State
License.
E. A Multistate License issued to a Licensee by a Home State to a
resident of that State shall be recognized by each Member State
as authorizing a Licensee to practice Cosmetology in each Member
State.
F. At no point shall the Commission have the power to define the
educational or professional requirements for a license to
practice Cosmetology. The Member States shall retain sole
jurisdiction over the provision of these requirements.
ARTICLE 4- MULTISTATE LICENSE
A. To be eligible to apply to their Home State's State Licensing
Authority for an initial Multistate License under this Compact,
a Licensee must hold an active and unencumbered Single-State
License to practice Cosmetology in their Home State.
B. Upon the receipt of an application for a Multistate License,
according to the Rules of the Commission, a Member State's State
Licensing Authority shall ascertain whether the applicant meets
the requirements for a Multistate License under this Compact.
C. If an applicant meets the requirements for a Multistate License
under this Compact and any applicable Rules of the Commission,
the State Licensing Authority in receipt of the application
shall, within a reasonable time, grant a Multistate License to
that applicant, and inform all Member States of the grant of said
Multistate License.
D. A Multistate License to practice Cosmetology issued by a Member
State's State Licensing Authority shall be recognized by each
Member State as authorizing the practice thereof as though that
Licensee held a Single-State License to do so in each Member
State, subject to the restrictions herein.
E. A Multistate License granted pursuant to this Compact may be
effective for a definite period of time, concurrent with the
licensure renewal period in the Home State.
F. To maintain a Multistate License under this Compact, a Licensee
must:
1. Agree to abide by the rules of the State Licensing
Authority, and the State scope of practice laws
governing the Practice of Cosmetology, of any Member
State in which the Licensee provides services;
2. Pay all required fees related to the application and
process, and any other fees which the Commission may by
Rule require; and
3. Comply with any and all other requirements regarding
Multistate Licenses which the Commission may by Rule
provide.
G. A Licensee practicing in a Member State is subject to all scope
of practice laws governing Cosmetology Services in that State.
H. The Practice of Cosmetology under a Multistate License granted
pursuant to this Compact will subject the Licensee to the
jurisdiction of the State Licensing Authority, the courts, and
the laws of the Member State in which the Cosmetology Services
are provided.
ARTICLE 5- REISSUANCE OF A MULTISTATE LICENSE BY A NEW HOME STATE
A. A Licensee may hold a Multistate License, issued by their Home
State, in only one Member State at any given time.
B. If a Licensee changes their Home State by moving between two
Member States:
1. The Licensee shall immediately apply for the reissuance
of their Multistate License in their new Home State. The
Licensee shall pay all applicable fees and notify the
prior Home State in accordance with the Rules of the
Commission.
2. Upon receipt of an application to reissue a Multistate
License, the new Home State shall verify that the
Multistate License is active, unencumbered and eligible
for reissuance under the terms of the Compact and the
Rules of the Commission. The Multistate License issued
by the prior Home State will be deactivated and all
Member States notified in accordance with the
applicable Rules adopted by the Commission.
3. If required for initial licensure, the new Home State
may require a Background Check as specified in the laws
of that State, or the compliance with any Jurisprudence
Requirements of the new Home State.
4. Notwithstanding any other provision of this Compact, if
a Licensee does not meet the requirements set forth in
this Compact for the reissuance of a Multistate License
by the new Home State, then the Licensee shall be
subject to the new Home State requirements for the
issuance of a Single-State License in that State.
C. If a Licensee changes their primary state of residence by moving
from a Member State to a non-Member State, or from a non-Member
State to a Member State, then the Licensee shall be subject to
the State requirements for the issuance of a Single-State
License in the new Home State.
D. Nothing in this Compact shall interfere with a Licensee's
ability to hold a Single-State License in multiple States;
however, for the purposes of this Compact, a Licensee shall have
only one Home State, and only one Multistate License.
E. Nothing in this Compact shall interfere with the requirements
established by a Member State for the issuance of a Single-State
License.
ARTICLE 6- AUTHORITY OF THE COMPACT COMMISSION AND MEMBER STATE
LICENSING AUTHORITIES
A. Nothing in this Compact, nor any Rule or regulation of the
Commission, shall be construed to limit, restrict, or in any way
reduce the ability of a Member State to enact and enforce laws,
regulations, or other rules related to the Practice of
Cosmetology in that State, where those laws, regulations, or
other rules are not inconsistent with the provisions of this
Compact.
B. Insofar as practical, a Member State's State Licensing Authority
shall cooperate with the Commission and with each entity
exercising independent regulatory authority over the Practice of
Cosmetology according to the provisions of this Compact.
C. Discipline shall be the sole responsibility of the State in
which Cosmetology Services are provided. Accordingly, each
Member State's State Licensing Authority shall be responsible
for receiving complaints about individuals practicing
Cosmetology in that State, and for communicating all relevant
Investigative Information about any such Adverse Action to the
other Member States through the Data System in addition to any
other methods the Commission may by Rule require.
ARTICLE 7- ADVERSE ACTIONS
A. A Licensee's Home State shall have exclusive power to impose an
Adverse Action against a Licensee's Multistate License issued by
the Home State.
B. A Home State may take Adverse Action on a Multistate License
based on the Investigative Information, Current Significant
Investigative Information, or Adverse Action of a Remote State.
C. In addition to the powers conferred by State law, each Remote
State's State Licensing Authority shall have the power to:
1. Take Adverse Action against a Licensee's Authorization
to Practice Cosmetology through the Multistate License
in that Member State, provided that:
a. Only the Licensee's Home State shall have the
power to take Adverse Action against the
Multistate License issued by the Home State; and
b. For the purposes of taking Adverse Action, the
Home State's State Licensing Authority shall give
the same priority and effect to reported conduct
received from a Remote State as it would if such
conduct had occurred within the Home State. In so
doing, the Home State shall apply its own State
laws to determine the appropriate action.
2. Issue cease and desist orders or impose an Encumbrance
on a Licensee's Authorization to Practice within that
Member State.
3. Complete any pending investigations of a Licensee who
changes their primary state of residence during the
course of such an investigation. The State Licensing
Authority shall also be empowered to report the results
of such an investigation to the Commission through the
Data System as described herein.
4. Issue subpoenas for both hearings and investigations
that require the attendance and testimony of witnesses,
as well as the production of evidence. Subpoenas issued
by a State Licensing Authority in a Member State for the
attendance and testimony of witnesses or the production
of evidence from another Member State shall be enforced
in the latter State by any court of competent
jurisdiction, according to the practice and procedure
of that court applicable to subpoenas issued in
proceedings before it. The issuing State Licensing
Authority shall pay any witness fees, travel expenses,
mileage, and other fees required by the service
statutes of the State in which the witnesses or evidence
are located.
5. If otherwise permitted by State law, recover from the
affected Licensee the costs of investigations and
disposition of cases resulting from any Adverse Action
taken against that Licensee.
6. Take Adverse Action against the Licensee's
Authorization to Practice in that State based on the
factual findings of another Remote State.
D. A Licensee's Home State shall complete any pending
investigation(s) of a Cosmetologist who changes their primary
state of residence during the course of the investigation(s).
The Home State shall also have the authority to take appropriate
action(s) and shall promptly report the conclusions of the
investigations to the Data System.
E. If an Adverse Action is taken by the Home State against a
Licensee's Multistate License, the Licensee's Authorization to
Practice in all other Member States shall be deactivated until
all Encumbrances have been removed from the Home State license.
All Home State disciplinary orders that impose an Adverse Action
against a Licensee's Multistate License shall include a
statement that the Cosmetologist's Authorization to Practice is
deactivated in all Member States during the pendency of the
order.
F. Nothing in this Compact shall override a Member State's
authority to accept a Licensee's participation in an Alternative
Program in lieu of Adverse Action. A Licensee's Multistate
License shall be suspended for the duration of the Licensee's
participation in any Alternative Program.
G. Joint Investigations
1. In addition to the authority granted to a Member State
by its respective scope of practice laws or other
applicable State law, a Member State may participate
with other Member States in joint investigations of
Licensees.
2. Member States shall share any investigative,
litigation, or compliance materials in furtherance of
any joint or individual investigation initiated under
the Compact.
ARTICLE 8- ACTIVE MILITARY MEMBERS AND THEIR SPOUSES
Active Military Members, or their spouses, shall designate a Home
State where the individual has a current license to practice
Cosmetology in good standing. The individual may retain their Home
State designation during any period of service when that individual
or their spouse is on active duty assignment.
ARTICLE 9- ESTABLISHMENT AND OPERATION OF THE COSMETOLOGY LICENSURE
COMPACT COMMISSION
A. The Compact Member States hereby create and establish a joint
government agency whose membership consists of all Member States
that have enacted the Compact known as the Cosmetology Licensure
Compact Commission. The Commission is an instrumentality of the
Compact Member States acting jointly and not an instrumentality
of any one State. The Commission shall come into existence on or
after the effective date of the Compact as set forth in Article
13.
B. Membership, Voting, and Meetings
1. Each Member State shall have and be limited to one (1)
delegate selected by that Member State’s State
Licensing Authority.
2. The delegate shall be an administrator of the State
Licensing Authority of the Member State or their
designee.
3. The Commission shall by Rule or bylaw establish a term
of office for delegates and may by Rule or bylaw
establish term limits.
4. The Commission may recommend removal or suspension of
any delegate from office.
5. A Member State’s State Licensing Authority shall fill
any vacancy of its delegate occurring on the Commission
within 60 days of the vacancy.
6. Each delegate shall be entitled to one vote on all
matters that are voted on by the Commission.
7. The Commission shall meet at least once during each
calendar year. Additional meetings may be held as set
forth in the bylaws. The Commission may meet by
telecommunication, video conference or other similar
electronic means.
C. The Commission shall have the following powers:
1. Establish the fiscal year of the Commission;
2. Establish code of conduct and conflict of interest
policies;
3. Adopt Rules and bylaws;
4. Maintain its financial records in accordance with the
bylaws;
5. Meet and take such actions as are consistent with the
provisions of this Compact, the Commission’s Rules, and
the bylaws;
6. Initiate and conclude legal proceedings or actions in
the name of the Commission, provided that the standing
of any State Licensing Authority to sue or be sued under
applicable law shall not be affected;
7. Maintain and certify records and information provided
to a Member State as the authenticated business records
of the Commission, and designate an agent to do so on
the Commission's behalf;
8. Purchase and maintain insurance and bonds;
9. Borrow, accept, or contract for services of personnel,
including, but not limited to, employees of a Member
State;
10. Conduct an annual financial review;
11. Hire employees, elect or appoint officers, fix
compensation, define duties, grant such individuals
appropriate authority to carry out the purposes of the
Compact, and establish the Commission's personnel
policies and programs relating to conflicts of
interest, qualifications of personnel, and other
related personnel matters;
12. As set forth in the Commission Rules, charge a fee to a
Licensee for the grant of a Multistate License and
thereafter, as may be established by Commission Rule,
charge the Licensee a Multistate License renewal fee
for each renewal period. Nothing herein shall be
construed to prevent a Home State from charging a
Licensee a fee for a Multistate License or renewals of a
Multistate License, or a fee for the jurisprudence
requirement if the Member State imposes such a
requirement for the grant of a Multistate License;
13. Assess and collect fees;
14. Accept any and all appropriate gifts, donations,
grants of money, other sources of revenue, equipment,
supplies, materials, and services, and receive,
utilize, and dispose of the same; provided that at all
times the Commission shall avoid any appearance of
impropriety or conflict of interest;
15. Lease, purchase, retain, own, hold, improve, or use any
property, real, personal, or mixed, or any undivided
interest therein;
16. Sell, convey, mortgage, pledge, lease, exchange,
abandon, or otherwise dispose of any property real,
personal, or mixed;
17. Establish a budget and make expenditures;
18. Borrow money;
19. Appoint committees, including standing committees,
composed of members, State regulators, State
legislators or their representatives, and consumer
representatives, and such other interested persons as
may be designated in this Compact and the bylaws;
20. Provide and receive information from, and cooperate
with, law enforcement agencies;
21. Elect a Chair, Vice Chair, Secretary and Treasurer and
such other officers of the Commission as provided in the
Commission's bylaws;
22. Establish and elect an Executive Committee, including
a chair and a vice chair;
23. Adopt and provide to the Member States an annual
report.
24. Determine whether a State's adopted language is
materially different from the model Compact language
such that the State would not qualify for participation
in the Compact; and
25. Perform such other functions as may be necessary or
appropriate to achieve the purposes of this Compact.
D. The Executive Committee
1. The Executive Committee shall have the power to act on
behalf of the Commission according to the terms of this
Compact. The powers, duties, and responsibilities of
the Executive Committee shall include:
a. Overseeing the day-to-day activities of the
administration of the Compact including
compliance with the provisions of the Compact, the
Commission's Rules and bylaws, and other such
duties as deemed necessary;
b. Recommending to the Commission changes to the
Rules or bylaws, changes to this Compact
legislation, fees charged to Compact Member
States, fees charged to Licensees, and other fees;
c. Ensuring Compact administration services are
appropriately provided, including by contract;
d. Preparing and recommending the budget;
e. Maintaining financial records on behalf of the
Commission;
f. Monitoring Compact compliance of Member States
and providing compliance reports to the
Commission;
g. Establishing additional committees as necessary;
h. Exercising the powers and duties of the
Commission during the interim between Commission
meetings, except for adopting or amending Rules,
adopting or amending bylaws, and exercising any
other powers and duties expressly reserved to the
Commission by Rule or bylaw; and
i. Other duties as provided in the Rules or bylaws of
the Commission.
2. The Executive Committee shall be composed of up to
seven voting members:
a. The chair and vice chair of the Commission and any
other members of the Commission who serve on the
Executive Committee shall be voting members of the
Executive Committee; and
b. Other than the chair, vice-chair, secretary and
treasurer, the Commission shall elect three
voting members from the current membership of the
Commission.
c. The Commission may elect ex-officio, nonvoting
members from a recognized national Cosmetology
professional association as approved by the
Commission. The Commission's bylaws shall
identify qualifying organizations and the manner
of appointment if the number of organizations
seeking to appoint an ex officio member exceeds
the number of members specified in this Article.
3. The Commission may remove any member of the Executive
Committee as provided in the Commission's bylaws.
4. The Executive Committee shall meet at least annually.
a. Annual Executive Committee meetings, as well as
any Executive Committee meeting at which it does
not take or intend to take formal action on a
matter for which a Commission vote would otherwise
be required, shall be open to the public, except
that the Executive Committee may meet in a closed,
non-public session of a public meeting when
dealing with any of the matters covered under
Article 9.F.4.
b. The Executive Committee shall give five business
days advance notice of its public meetings, posted
on its website and as determined to provide notice
to persons with an interest in the public matters
the Executive Committee intends to address at
those meetings.
5. The Executive Committee may hold an emergency meeting
when acting for the Commission to:
a. Meet an imminent threat to public health, safety,
or welfare;
b. Prevent a loss of Commission or Member State
funds; or
c. Protect public health and safety.
E. The Commission shall adopt and provide to the Member States an
annual report.
F. Meetings of the Commission
1. All meetings of the Commission that are not closed
pursuant to Article 9.F.4 shall be open to the public.
Notice of public meetings shall be posted on the
Commission's website at least thirty (30) days prior to
the public meeting.
2. Notwithstanding Article 9.F.1, the Commission may
convene an emergency public meeting by providing at
least twenty-four (24) hours prior notice on the
Commission's website, and any other means as provided in
the Commission's Rules, for any of the reasons it may
dispense with notice of proposed rulemaking under
Article 11.L. The Commission's legal counsel shall
certify that one of the reasons justifying an emergency
public meeting has been met.
3. Notice of all Commission meetings shall provide the
time, date, and location of the meeting, and if the
meeting is to be held or accessible via
telecommunication, video conference, or other
electronic means, the notice shall include the
mechanism for access to the meeting.
4. The Commission may convene in a closed, non-public
meeting for the Commission to discuss:
a. Non-compliance of a Member State with its
obligations under the Compact;
b. The employment, compensation, discipline or other
matters, practices or procedures related to
specific employees or other matters related to the
Commission's internal personnel practices and
procedures;
c. Current or threatened discipline of a Licensee by
the Commission or by a Member State's Licensing
Authority;
d. Current, threatened, or reasonably anticipated
litigation;
e. Negotiation of contracts for the purchase, lease,
or sale of goods, services, or real estate;
f. Accusing any person of a crime or formally
censuring any person;
g. Trade secrets or commercial or financial
information that is privileged or confidential;
h. Information of a personal nature where disclosure
would constitute a clearly unwarranted invasion
of personal privacy;
i. Investigative records compiled for law
enforcement purposes;
j. Information related to any investigative reports
prepared by or on behalf of or for use of the
Commission or other committee charged with
responsibility of investigation or determination
of compliance issues pursuant to the Compact;
k. Legal advice;
l. Matters specifically exempted from disclosure to
the public by federal or Member State law; or
m. Other matters as promulgated by the Commission by
Rule.
5. If a meeting, or portion of a meeting, is closed, the
presiding officer shall state that the meeting will be
closed and reference each relevant exempting provision,
and such reference shall be recorded in the minutes.
6. The Commission shall keep minutes that fully and
clearly describe all matters discussed in a meeting and
shall provide a full and accurate summary of actions
taken, and the reasons therefore, including a
description of the views expressed. All documents
considered in connection with an action shall be
identified in such minutes. All minutes and documents
of a closed meeting shall remain under seal, subject to
release only by a majority vote of the Commission or
order of a court of competent jurisdiction.
G. Financing of the Commission
1. The Commission shall pay, or provide for the payment
of, the reasonable expenses of its establishment,
organization, and ongoing activities.
2. The Commission may accept any and all appropriate
sources of revenue, donations, and grants of money,
equipment, supplies, materials, and services.
3. The Commission may levy on and collect an annual
assessment from each Member State and impose fees on
Licensees of Member States to whom it grants a
Multistate License to cover the cost of the operations
and activities of the Commission and its staff, which
must be in a total amount sufficient to cover its annual
budget as approved each year for which revenue is not
provided by other sources. The aggregate annual
assessment amount for Member States shall be allocated
based upon a formula that the Commission shall
promulgate by Rule.
4. The Commission shall not incur obligations of any kind
prior to securing the funds adequate to meet the same;
nor shall the Commission pledge the credit of any Member
States, except by and with the authority of the Member
State.
5. The Commission shall keep accurate accounts of all
receipts and disbursements. The receipts and
disbursements of the Commission shall be subject to the
financial review and accounting procedures established
under its bylaws. All receipts and disbursements of
funds handled by the Commission shall be subject to an
annual financial review by a certified or licensed
public accountant, and the report of the financial
review shall be included in and become part of the
annual report of the Commission.
H. Qualified Immunity, Defense, and Indemnification
1. The members, officers, executive director, employees
and representatives of the Commission shall be immune
from suit and liability, both personally and in their
official capacity, for any claim for damage to or loss
of property or personal injury or other civil liability
caused by or arising out of any actual or alleged act,
error, or omission that occurred, or that the person
against whom the claim is made had a reasonable basis
for believing occurred within the scope of Commission
employment, duties or responsibilities; provided that
nothing in this paragraph shall be construed to protect
any such person from suit or liability for any damage,
loss, injury, or liability caused by the intentional or
willful or wanton misconduct of that person. The
procurement of insurance of any type by the Commission
shall not in any way compromise or limit the immunity
granted hereunder.
2. The Commission shall defend any member, officer,
executive director, employee, and representative of the
Commission in any civil action seeking to impose
liability arising out of any actual or alleged act,
error, or omission that occurred within the scope of
Commission employment, duties, or responsibilities, or
as determined by the Commission that the person against
whom the claim is made had a reasonable basis for
believing occurred within the scope of Commission
employment, duties, or responsibilities; provided that
nothing herein shall be construed to prohibit that
person from retaining their own counsel at their own
expense; and provided further, that the actual or
alleged act, error, or omission did not result from that
person's intentional or willful or wanton misconduct.
3. The Commission shall indemnify and hold harmless any
member, officer, executive director, employee, and
representative of the Commission for the amount of any
settlement or judgment obtained against that person
arising out of any actual or alleged act, error, or
omission that occurred within the scope of Commission
employment, duties, or responsibilities, or that such
person had a reasonable basis for believing occurred
within the scope of Commission employment, duties, or
responsibilities, provided that the actual or alleged
act, error, or omission did not result from the
intentional or willful or wanton misconduct of that
person.
4. Nothing herein shall be construed as a limitation on
the liability of any Licensee for professional
malpractice or misconduct, which shall be governed
solely by any other applicable State laws.
5. Nothing in this Compact shall be interpreted to waive
or otherwise abrogate a Member State's State action
immunity or State action affirmative defense with
respect to antitrust claims under the Sherman Act,
Clayton Act, or any other State or federal antitrust or
anticompetitive law or regulation.
6. Nothing in this Compact shall be construed to be a
waiver of sovereign immunity by the Member States or by
the Commission.
ARTICLE 10- DATA SYSTEM
A. The Commission shall provide for the development, maintenance,
operation, and utilization of a coordinated database and
reporting system.
B. The Commission shall assign each applicant for a Multistate
License a unique identifier, as determined by the Rules of the
Commission.
C. Notwithstanding any other provision of State law to the
contrary, a Member State shall submit a uniform data set to the
Data System on all individuals to whom this Compact is applicable
as required by the Rules of the Commission, including:
1. Identifying information;
2. Licensure data;
3. Adverse Actions against a license and information
related thereto;
4. Non-confidential information related to Alternative
Program participation, the beginning and ending dates
of such participation, and other information related to
such participation;
5. Any denial of application for licensure, and the
reason(s) for such denial (excluding the reporting of
any criminal history record information where
prohibited by law);
6. The existence of Investigative Information;
7. The existence of Current Significant Investigative
Information; and
8. Other information that may facilitate the
administration of this Compact or the protection of the
public, as determined by the Rules of the Commission.
D. The records and information provided to a Member State pursuant
to this Compact or through the Data System, when certified by the
Commission or an agent thereof, shall constitute the
authenticated business records of the Commission, and shall be
entitled to any associated hearsay exception in any relevant
judicial, quasi-judicial or administrative proceedings in a
Member State.
E. The existence of Current Significant Investigative Information
and the existence of Investigative Information pertaining to a
Licensee in any Member State will only be available to other
Member States.
F. It is the responsibility of the Member States to monitor the
database to determine whether Adverse Action has been taken
against such a Licensee or License applicant. Adverse Action
information pertaining to a Licensee or License applicant in any
Member State will be available to any other Member State.
G. Member States contributing information to the Data System may
designate information that may not be shared with the public
without the express permission of the contributing State.
H. Any information submitted to the Data System that is
subsequently expunged pursuant to federal law or the laws of the
Member State contributing the information shall be removed from
the Data System.
ARTICLE 11- RULEMAKING
A. The Commission shall promulgate reasonable Rules in order to
effectively and efficiently implement and administer the
purposes and provisions of the Compact. A Rule shall be invalid
and have no force or effect only if a court of competent
jurisdiction holds that the Rule is invalid because the
Commission exercised its rulemaking authority in a manner that
is beyond the scope and purposes of the Compact, or the powers
granted hereunder, or based upon another applicable standard of
review.
B. The Rules of the Commission shall have the force of law in each
Member State, provided however that where the Rules of the
Commission conflict with the laws of the Member State that
establish the Member State's scope of practice laws governing the
Practice of Cosmetology as held by a court of competent
jurisdiction, the Rules of the Commission shall be ineffective
in that State to the extent of the conflict.
C. The Commission shall exercise its rulemaking powers pursuant to
the criteria set forth in this Article and the Rules adopted
thereunder. Rules shall become binding as of the date specified
by the Commission for each Rule.
D. If a majority of the legislatures of the Member States rejects a
Rule or portion of a Rule, by enactment of a statute or
resolution in the same manner used to adopt the Compact within
four (4) years of the date of adoption of the Rule, then such Rule
shall have no further force and effect in any Member State or to
any State applying to participate in the Compact.
E. Rules shall be adopted at a regular or special meeting of the
Commission.
F. Prior to adoption of a proposed Rule, the Commission shall hold a
public hearing and allow persons to provide oral and written
comments, data, facts, opinions, and arguments.
G. Prior to adoption of a proposed Rule by the Commission, and at
least thirty (30) days in advance of the meeting at which the
Commission will hold a public hearing on the proposed Rule, the
Commission shall provide a notice of proposed rulemaking:
1. On the website of the Commission or other publicly
accessible platform;
2. To persons who have requested notice of the
Commission's notices of proposed rulemaking; and
3. In such other way(s) as the Commission may by Rule
specify.
H. The notice of proposed rulemaking shall include:
1. The time, date, and location of the public hearing at
which the Commission will hear public comments on the
proposed Rule and, if different, the time, date, and
location of the meeting where the Commission will
consider and vote on the proposed Rule;
2. If the hearing is held via telecommunication, video
conference, or other electronic means, the Commission
shall include the mechanism for access to the hearing in
the notice of proposed rulemaking;
3. The text of the proposed Rule and the reason therefor;
4. A request for comments on the proposed Rule from any
interested person; and
5. The manner in which interested persons may submit
written comments.
I. All hearings will be recorded. A copy of the recording and all
written comments and documents received by the Commission in
response to the proposed Rule shall be available to the public.
J. Nothing in this Article shall be construed as requiring a
separate hearing on each Rule. Rules may be grouped for the
convenience of the Commission at hearings required by this
Article.
K. The Commission shall, by majority vote of all members, take
final action on the proposed Rule based on the rulemaking record
and the full text of the Rule.
1. The Commission may adopt changes to the proposed Rule
provided the changes do not enlarge the original
purpose of the proposed Rule.
2. The Commission shall provide an explanation of the
reasons for substantive changes made to the proposed
Rule as well as reasons for substantive changes not made
that were recommended by commenters.
3. The Commission shall determine a reasonable effective
date for the Rule. Except for an emergency as provided
in Article 11.L, the effective date of the Rule shall be
no sooner than forty-five (45) days after the
Commission issuing the notice that it adopted or
amended the Rule.
L. Upon determination that an emergency exists, the Commission may
consider and adopt an emergency Rule with five (5) days' notice,
with opportunity to comment, provided that the usual rulemaking
procedures provided in the Compact and in this Article shall be
retroactively applied to the Rule as soon as reasonably
possible, in no event later than ninety (90) days after the
effective date of the Rule. For the purposes of this provision,
an emergency Rule is one that must be adopted immediately to:
1. Meet an imminent threat to public health, safety, or
welfare;
2. Prevent a loss of Commission or Member State funds;
3. Meet a deadline for the promulgation of a Rule that is
established by federal law or rule; or
4. Protect public health and safety.
M. The Commission or an authorized committee of the Commission may
direct revisions to a previously adopted Rule for purposes of
correcting typographical errors, errors in format, errors in
consistency, or grammatical errors. Public notice of any
revisions shall be posted on the website of the Commission. The
revision shall be subject to challenge by any person for a period
of thirty (30) days after posting. The revision may be
challenged only on grounds that the revision results in a
material change to a Rule. A challenge shall be made in writing
and delivered to the Commission prior to the end of the notice
period. If no challenge is made, the revision will take effect
without further action. If the revision is challenged, the
revision may not take effect without the approval of the
Commission.
N. No Member State's rulemaking requirements shall apply under this
Compact.
ARTICLE 12- OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT
A. Oversight
1. The executive and judicial branches of State
government in each Member State shall enforce this
Compact and take all actions necessary and appropriate
to implement the Compact.
2. Venue is proper and judicial proceedings by or against
the Commission shall be brought solely and exclusively
in a court of competent jurisdiction where the
principal office of the Commission is located. The
Commission may waive venue and jurisdictional defenses
to the extent it adopts or consents to participate in
alternative dispute resolution proceedings. Nothing
herein shall affect or limit the selection or propriety
of venue in any action against a Licensee for
professional malpractice, misconduct or any such
similar matter.
3. The Commission shall be entitled to receive service of
process in any proceeding regarding the enforcement or
interpretation of the Compact and shall have standing
to intervene in such a proceeding for all purposes.
Failure to provide the Commission service of process
shall render a judgment or order void as to the
Commission, this Compact, or promulgated Rules.
B. Default, Technical Assistance, and Termination
1. If the Commission determines that a Member State has
defaulted in the performance of its obligations or
responsibilities under this Compact or the promulgated
Rules, the Commission shall provide written notice to
the defaulting State. The notice of default shall
describe the default, the proposed means of curing the
default, and any other action that the Commission may
take, and shall offer training and specific technical
assistance regarding the default.
2. The Commission shall provide a copy of the notice of
default to the other Member States.
3. If a State in default fails to cure the default, the
defaulting State may be terminated from the Compact
upon an affirmative vote of a majority of the delegates
of the Member States, and all rights, privileges and
benefits conferred on that State by this Compact may be
terminated on the effective date of termination. A cure
of the default does not relieve the offending State of
obligations or liabilities incurred during the period
of default.
4. Termination of membership in the Compact shall be
imposed only after all other means of securing
compliance have been exhausted. Notice of intent to
suspend or terminate shall be given by the Commission to
the governor, the majority and minority leaders of the
defaulting State's legislature, the defaulting State's
State Licensing Authority and each of the Member States'
State Licensing Authority.
5. A State that has been terminated is responsible for all
assessments, obligations, and liabilities incurred
through the effective date of termination, including
obligations that extend beyond the effective date of
termination.
6. Upon the termination of a State's membership from this
Compact, that State shall immediately provide notice to
all Licensees who hold a Multistate License within that
State of such termination. The terminated State shall
continue to recognize all licenses granted pursuant to
this Compact for a minimum of one hundred eighty (180)
days after the date of said notice of termination.
7. The Commission shall not bear any costs related to a
State that is found to be in default or that has been
terminated from the Compact, unless agreed upon in
writing between the Commission and the defaulting
State.
8. The defaulting State may appeal the action of the
Commission by petitioning the United States District
Court for the District of Columbia or the federal
district where the Commission has its principal
offices. The prevailing party shall be awarded all
costs of such litigation, including reasonable
attorney's fees.
C. Dispute Resolution
1. Upon request by a Member State, the Commission shall
attempt to resolve disputes related to the Compact that
arise among Member States and between Member and
non-Member States.
2. The Commission shall promulgate a Rule providing for
both mediation and binding dispute resolution for
disputes as appropriate.
D. Enforcement
1. The Commission, in the reasonable exercise of its
discretion, shall enforce the provisions of this
Compact and the Commission's Rules.
2. By majority vote as provided by Commission Rule, the
Commission may initiate legal action against a Member
State in default in the United States District Court for
the District of Columbia or the federal district where
the Commission has its principal offices to enforce
compliance with the provisions of the Compact and its
promulgated Rules. The relief sought may include both
injunctive relief and damages. In the event judicial
enforcement is necessary, the prevailing party shall be
awarded all costs of such litigation, including
reasonable attorney's fees. The remedies herein shall
not be the exclusive remedies of the Commission. The
Commission may pursue any other remedies available
under federal or the defaulting Member State's law.
3. A Member State may initiate legal action against the
Commission in the United States District Court for the
District of Columbia or the federal district where the
Commission has its principal offices to enforce
compliance with the provisions of the Compact and its
promulgated Rules. The relief sought may include both
injunctive relief and damages. In the event judicial
enforcement is necessary, the prevailing party shall be
awarded all costs of such litigation, including
reasonable attorney's fees.
4. No individual or entity other than a Member State may
enforce this Compact against the Commission.
ARTICLE 13- EFFECTIVE DATE, WITHDRAWAL, AND AMENDMENT
A. The Compact shall come into effect on the date on which the
Compact statute is enacted into law in the seventh Member State.
1. On or after the effective date of the Compact, the
Commission shall convene and review the enactment of
each of the Charter Member States to determine if the
statute enacted by each such Charter Member State is
materially different than the model Compact statute.
a. A Charter Member State whose enactment is found to
be materially different from the model Compact
statute shall be entitled to the default process
set forth in Article 12.
b. If any Member State is later found to be in
default, or is terminated or withdraws from the
Compact, the Commission shall remain in existence
and the Compact shall remain in effect even if the
number of Member States should be less than seven
(7).
2. Member States enacting the Compact subsequent to the
Charter Member States shall be subject to the process
set forth in Article 9.C.24 to determine if their
enactments are materially different from the model
Compact statute and whether they qualify for
participation in the Compact.
3. All actions taken for the benefit of the Commission or
in furtherance of the purposes of the administration of
the Compact prior to the effective date of the Compact
or the Commission coming into existence shall be
considered to be actions of the Commission unless
specifically repudiated by the Commission.
4. Any State that joins the Compact shall be subject to the
Commission's Rules and bylaws as they exist on the date
on which the Compact becomes law in that State. Any
Rule that has been previously adopted by the Commission
shall have the full force and effect of law on the day
the Compact becomes law in that State.
B. Any Member State may withdraw from this Compact by enacting a
statute repealing that State's enactment of the Compact.
1. A Member State's withdrawal shall not take effect until
one hundred eighty (180) days after enactment of the
repealing statute.
2. Withdrawal shall not affect the continuing requirement
of the withdrawing State's State Licensing Authority to
comply with the investigative and Adverse Action
reporting requirements of this Compact prior to the
effective date of withdrawal.
3. Upon the enactment of a statute withdrawing from this
Compact, a State shall immediately provide notice of
such withdrawal to all Licensees within that State.
Notwithstanding any subsequent statutory enactment to
the contrary, such withdrawing State shall continue to
recognize all licenses granted pursuant to this Compact
for a minimum of one hundred eighty (180) days after the
date of such notice of withdrawal.
C. Nothing contained in this Compact shall be construed to
invalidate or prevent any licensure agreement or other
cooperative arrangement between a Member State and a non-Member
State that does not conflict with the provisions of this Compact.
D. This Compact may be amended by the Member States. No amendment
to this Compact shall become effective and binding upon any
Member State until it is enacted into the laws of all Member
States.
ARTICLE 14- CONSTRUCTION AND SEVERABILITY
A. This Compact and the Commission's rulemaking authority shall be
liberally construed so as to effectuate the purposes, and the
implementation and administration of the Compact. Provisions of
the Compact expressly authorizing or requiring the promulgation
of Rules shall not be construed to limit the Commission's
rulemaking authority solely for those purposes.
B. The provisions of this Compact shall be severable and if any
phrase, clause, sentence or provision of this Compact is held by
a court of competent jurisdiction to be contrary to the
constitution of any Member State, a State seeking participation
in the Compact, or of the United States, or the applicability
thereof to any government, agency, person or circumstance is
held to be unconstitutional by a court of competent
jurisdiction, the validity of the remainder of this Compact and
the applicability thereof to any other government, agency,
person or circumstance shall not be affected thereby.
C. Notwithstanding Article 14.B, the Commission may deny a State's
participation in the Compact or, in accordance with the
requirements of Article 12, terminate a Member State's
participation in the Compact, if it determines that a
constitutional requirement of a Member State is a material
departure from the Compact. Otherwise, if this Compact shall be
held to be contrary to the constitution of any Member State, the
Compact shall remain in full force and effect as to the remaining
Member States and in full force and effect as to the Member State
affected as to all severable matters.
ARTICLE 15- CONSISTENT EFFECT AND CONFLICT WITH OTHER STATE LAWS
A. The purpose of this Compact is to facilitate multistate
licensure of Cosmetologists. Notwithstanding any other
provision of this chapter, nothing herein shall subject a Member
State to any laws, rules, or regulations from the Commission or
from any other Member State.
B. Notwithstanding any other provision of this chapter, nothing
herein shall require any Member State to adopt additional laws or
policies.
C. Notwithstanding any other provision of this chapter, nothing
herein shall prevent or inhibit the enforcement of any other law
of a Member State.
D. All permissible agreements between the Commission and the Member
States are binding in accordance with their terms.
E. If the Commission determines under Article 8(c)(24) that any
language in this chapter is materially different from the
Compact model legislation, this State will not be considered a
Member State of the Compact and any provisions purporting to
enact or implement this Compact shall be null, void, and of no
effect.
Sec. 1604.002. ADMINISTRATION OF COMPACT. The Texas
Department of Licensing and Regulation is the Cosmetology Licensure
Compact administrator for this state.
Sec. 1604.003. WITHDRAWAL. This state may withdraw from
the compact under this chapter at any time on the issuance of a
proclamation by the governor or other executive action rescinding
this state's consent to the compact, subject to the notice and
temporary recognition requirements under Article 13(B) of the
compact.
Sec. 1604.004. RULES. The Texas Commission of Licensing
and Regulation may adopt rules necessary to implement this chapter.
SECTION 2. This Act takes effect September 1, 2026.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 705 was passed by the House on May 1,
2025, by the following vote: Yeas 129, Nays 6, 1 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 705 on May 30, 2025, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 705 on June 1, 2025, by the following vote: Yeas 127,
Nays 10, 2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 705 was passed by the Senate, with
amendments, on May 27, 2025, by the following vote: Yeas 31, Nays
0; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
705 on May 31, 2025, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor