BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  AB 2449|
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                                 THIRD READING


          Bill No:  AB 2449
          Author:   Correa (D)
          Amended:  6/20/02 in Senate
          Vote:     21

           
           SENATE BUSINESS & PROFESSIONS COMMITTEE  :  5-2, 6/10/02
          AYES:  Figueroa, Machado, Murray, O'Connell, Polanco
          NOES:  Johannessen, Morrow

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  72-0, 5/16/02 (Passed on Consent) - See  
            last page for vote


           SUBJECT  :    Barbering and cosmetology:  independent  
          contractors

           SOURCE  :     Professional Beauty Federation of California


           DIGEST  :    This bill requires licensees of the Bureau of  
          Barbering and Cosmetology to provide certain, specified  
          information to the bureau when they renew their license and  
          requires the bureau to report back to the Legislature on  
          the information they collect pursuant to this bill.

           ANALYSIS  :    Existing law:

          1. Provides for the licensing of cosmetologists, barbers,  
             estheticians, manicurists, electrologists, and others by  
             the bureau within the Department of Consumer Affairs.

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          2. Authorizes the bureau to assess administrative fines for  
             the violation of any part of the Barbering and  
             Cosmetology Act. 

          This bill:

          1. Requires all licensees, except establishments and  
             apprentices, to report to the bureau, at the time of  
             license renewal, their practice status designated as one  
             of the following:  (1) full-time practice in California;  
             (2) full-time practice outside of California; (3)  
             part-time practice in California; (4) not working in the  
             industry; (5) retired; (6) other practice status, as may  
             be further defined by the bureau.

          2. Requires all licensees, except establishments and  
             apprentices, at the time of license renewal, to identify  
             themselves on the application to the bureau as one of  
             the following:  (1) employee;.(2) independent contractor  
             or booth renter; or (3) salon owner.

          3. Requires an establishment to report to the bureau at the  
             time of license renewal, whether either of the following  
             are applicable:  (1) he or she has a booth renter  
             operating in the establishment; (2) he or she has an  
             independent contractor operating in the establishment.

          4. Requires the bureau to report to the Senate Business and  
             Profession Committee and the Assembly Business and  
             Profession Committee, within five years after the  
             implementation of the provisions of this measure, on the  
             licensee information collected, including an assessment  
             of whether a certain type of licensee is more likely to  
             receive complaints, citations, or fail to pay taxes, and  
             any recommendations on how to remedy problems found.

           Comments  

          According to information provided by the Professional  
          Beauty Federation of California (Sponsor), it is imperative  
          for those responsible for regulating the beauty industry in  
          this state to accumulate and analyze data on the rapidly  
          growing industry segment known as Booth Renting.  If, as  
          argued by industry leaders and observed by tax authorities,  







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          many in the Booth Renting sector operate illegitimately,  
          state regulators need to discover these problems, correlate  
          health and safety violation and tax evasion statistics, and  
          propose regulatory/statutory reforms to address discovered  
          problems.

          (See Senate Business and Professions Committee analysis for  
          further comment.)

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  8/5/02)

          Professional Beauty Federation of California (source)

          Support (to 4/18/02 version):

          American Hair Force
          Carlton Hair International
          Esche Alexander Public Relations
          Seven salon owners 
          Fantastic Sams
          Gila Rut Salon Inc.
          Opal Concepts Salon Support Group
          Pro-cuts California
          Salinas Beauty College, Inc.


           ASSEMBLY FLOOR  :
          AYES:  Aanestad, Alquist, Aroner, Ashburn, Bogh, Briggs,  
            Calderon, Bill Campbell, Canciamilla, Cardoza, Chan,  
            Chavez, Chu, Cogdill, Cohn, Corbett, Correa, Cox,  
            Daucher, Diaz, Dickerson, Dutra, Firebaugh, Florez,  
            Frommer, Goldberg, Hertzberg, Hollingsworth, Horton,  
            Jackson, Keeley, Kehoe, Kelley, Koretz, La Suer, Leach,  
            Leonard, Leslie, Liu, Longville, Maddox, Maldonado,  
            Matthews, Migden, Mountjoy, Nakano, Nation, Negrete  
            McLeod, Oropeza, Robert Pacheco, Rod Pacheco, Papan,  
            Pavley, Pescetti, Reyes, Richman, Runner, Salinas,  
            Shelley, Simitian, Steinberg, Strickland, Strom-Martin,  
            Thomson, Vargas, Wayne, Wiggins, Wright, Wyland, Wyman,  
            Zettel, Wesson








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          CP:sl  8/6/02   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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