BILL ANALYSIS SB 360 Page 1 Date of Hearing: June 17, 2003 ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS Lou Correa, Chair SB 360 (Figueroa) - As Amended: June 12, 2003 SENATE VOTE : 23-12 SUBJECT : Board of Barbering and Cosmetology: Sunset Review. SUMMARY : Makes changes to the Board of Barbering and Cosmetology (Board) within the Department of Consumer Affairs (DCA) and the Barbering and Cosmetology Act pursuant to recommendations of the Joint Legislative Sunset Review Committee (JLSRC). Specifically, this bill : 1)Raises the administrative fine limit from $2,500 to $5,000. 2)Changes obsolete references from "bureau" to "board " throughout the Barbering and Cosmetology Act and makes other related conforming changes. 3)Clarifies the Board's inspection authority. 4)Allows the Board to inspect an establishment prior to issuing an establishment license. 5)Authorizes the Board to temporarily close an establishment for egregious health and safety violations that constitute an immediate threat to public health and safety. 6)Requires all licenses to contain a photo of the licensee. 7)Authorizes the Board to grant a license to an applicant who submits a completed application with the necessary fee, proof of a valid license issued by another state, and proof that the applicant has not been disciplined by another state. 8)Repeals the voluntary instructor license provisions and the corresponding continuing education provisions. 9)Provides that the examination fees paid by applicants shall reflect the actual cost to the Board for developing, purchasing, grading, and administering the appropriate examination. SB 360 Page 2 10)Repeals the following intent language: "any person who fails to qualify for admission to an examination because the person's practice outside this state does not fulfill the requirements of this chapter shall receive credit for that practice or study and training outside this state, or for the number of hours of study and training completed outside this state, which is substantially equivalent to the study and training required in this state, as determined by the Board. Those persons shall be qualified for examination upon completion of supplementary study and training in an approved school in this state." 11)Requires the Board to conduct the following studies and reviews, and report its findings and recommendations to DCA and JLSRC no later than September 1, 2005: a) The Board, in conjunction with DCA's Office of Examination Resources, shall review the 1600-hour training requirement for cosmetologists. b) The Board, in conjunction with DCA's Office of Examination Resources, shall evaluate the equivalency of the national exam. c) The Board shall conduct a study to assess the costs and benefits associated with requiring all applicants to submit fingerprint cards for background investigations. d) The Board, in coordination with Department of Industrial Relations, shall review all components of the apprenticeship program, including but not limited to the apprenticeship curriculum requirements and the standards for the pre-apprentice trainers, program sponsors, trainers, and placement establishments. e) The Board shall review all components of the externship program. In addition to structural changes, the Board shall address the following: i) Whether the program should be eliminated. ii) Whether the program should be available to all students, not just cosmetology students attending private schools. SB 360 Page 3 iii) Whether students should be paid. f) The Board shall assess the costs and benefits associated with same day licensing. If the Board determines that the benefits of same day licensing outweigh the costs, the Board shall immediately plan and implement safety measures to protect site staff and undispersed licenses. g) The Board, in conjunction with DCA's Office of Examination Resources, shall assess the validity of aggregate scoring for Board applicants. EXISTING LAW : 1)Establishes JLSRC, subjects the various licensing boards of DCA to sunset review by JLSRC, and provides for the elimination of all DCA boards on a specified schedule. The law provides that when any board becomes inoperative and is repealed (sunsets), DCA shall succeed to and be vested with all duties and responsibilities of the board. It is the intent of the Legislature that all existing and proposed consumer-related boards or categories of licensed professionals be subject to a review on a four-year cycle, unless circumstances warrant a longer or shorter interval with respect to a given board. 2)Authorizes specified boards, bureaus, and commissions to establish regulations whereby the board, bureau, or commission, in specified circumstances, may impose an administrative fine not exceeding $2,500 upon its licensees. 3)Provides for the licensing and regulation of cosmetologists, barbers, estheticians, manicurists, electrologists, instructors and others by the Board within DCA. Establishes a licensing, application and examination fee for each of the Board's licensees. 4)Provides for the sunset of the provisions establishing the Board as of July 1, 2007, and repeals those provisions as of January 1, 2008. 5)Contains obsolete references to the Bureau of Barbering and Cosmetology that is now the Board. SB 360 Page 4 6)Does not specifically state that a patron must be receiving services in order for an inspection to occur. 7)Requires barbering and cosmetology candidates enrolled in an apprenticeship program to earn 3200 hours of on-the-job training during the course of their two-year apprentice license. 8)Provides for an externship program in which students may work unpaid in a salon up to eight hours a week for the purpose of gaining skills, knowledge, and abilities necessary to become employed. 9)Authorizes the Board to seek an interim suspension order from an administrative law judge to address violations that pose a threat to the health and safety of consumers. FISCAL EFFECT : Unknown COMMENTS : Purpose of this bill . This bill is one of six "sunset review bills" authored by the Chair of JLSRC. These bills are intended to implement legislative changes as recommended by JLSRC for several licensing boards reviewed by JLSRC in 2002/03. Background . JLSRC and DCA last reviewed the Board of Barbering and Cosmetology during the 1995-96-review cycle. In November 2002, JLSRC and DCA began their re-review of the Board. On April 7, 2003, JLSRC made the following recommendations regarding the Board: 1)The Board should be given the authority to inspect establishments and authorize Board inspectors to issue citations and fines to schools that are providing services to the public, consistent with requirements in existing law; 2)The Board should review and revise the existing fine structure and promulgate regulations to revise it, and the Board should also take steps to ensure that it and the Bureau for Private Postsecondary and Vocational Education (BPPVE) are not issuing citations for the same violations; 3)Photographic licensing should be implemented and the examination process should be streamlined; SB 360 Page 5 4)The Board should assess actual costs for licensing exams; 5)Reciprocity should be allowed for all licensing categories; 6)The Board's occupational analysis should review the 1600 hour training requirement for cosmetologists, and the Board should provide the information to DCA and JLSRC upon conclusion of the occupational analysis; 7)The Board should evaluate the equivalency of the national exam and report back to DCA and JLSRC in conjunction with the Board's next scheduled review in 2005; 8)The Board should conduct a study to assess the costs and benefits associated with requiring all applicants to submit fingerprint cards for background investigations and report back to DCA and JLSRC in conjunction with the Board's next scheduled review in 2005; 9)The voluntary license for barbering instructors and cosmetology instructors and the corresponding continuing education requirements should be eliminated; 10)The Board should, in coordination with the Department of Industrial Relations, review all components of the apprenticeship program, including apprenticeship curriculum requirements and the standards for the pre-apprentice trainers, program sponsors, trainers and placement establishments. The Board should report its findings to DCA and JLSRC in conjunction with its next scheduled review in 2005; 11)The Board should review all components of the externship program. In addition to structural changes, the Board should address the following: a) should the program be eliminated; b) should the program be available to all students, not just cosmetology students attending private schools; and, c) should the students be paid. The Board should report their findings to DCA and JLSRC in conjunction with their next scheduled review in 2005; 12)The Board should assess the costs and benefits associated with same day licensing. If the Board determines that the benefits of same day licensing outweigh the costs, the Board SB 360 Page 6 should immediately plan and implement safety measures to protect exam site staff and undispersed licenses. The Board should report their findings and/or actions to DCA and the JLSRC in conjunction with the Board's next scheduled review in 2005; and, 13)The Board should work collaboratively with the Office of Exam Resources to assess the validity of aggregate scoring for Board applicants. This bill provides state-to-state reciprocity for all licensing categories . The Board receives between 400 and 500 applications from professionals in other states and countries annually. Since the scope of practice of manicurists, cosmetologists, barbers, and estheticians does not differ significantly from other states, professionals who are licensed in other states should be permitted to practice in California. Licensees who came to California from other states testified at a hearing, held by DCA last year, about the length of time they were unable to work in California while waiting to take the state examination, in spite of being licensed in another state. This bill repeals voluntary cosmetology and barbering instructor licenses . The law does not require, but rather establishes, a process whereby an individual can obtain a barbering or a cosmetology instructor's license. In order to renew an instructor's license an individual must complete at least 30 hours of continuing education in the teaching of vocational education. Instead of a voluntary instructor's license that only applies to barber and cosmetology instructors, the law should establish standards for instructors that will work in conjunction with the school approval process. This will not only further the goal of ensuring instructors meet specified standards, but will also relieve the Board from the burden of updating and administering the examinations as well as the corresponding continuing education program, thus enabling the Board to focus on other more pressing matters. This bill provides increased enforcement authority to the Board . This bill contains a number of provisions intended to enhance the Board's enforcement authority, including: 1)Cite and fine schools . Existing law requires notices of SB 360 Page 7 violation to be issued by inspectors to schools for health and safety violations. Notices of violation have no fine attached; they simply serve as warning notices. If corrections have not been made within 30 days, an inspector may issue a citation with administrative fines. This bill authorizes the Board to issue citations with administrative fines to schools upon first inspection. 2)Establishment inspections. Existing law is not clear as to whether a patron must be receiving services in order for an inspection to occur. Nothing in existing law allows the Board to inspect an establishment prior to being issued a license. The Board has found that, as a result of disciplinary actions for health and safety code violations, a licensed establishment may be sold and the new owner applies for an establishment license. In order to ensure that violations known to be present in an establishment under the prior owner have been corrected, this bill provides the Board with the authority to inspect the salon prior to issuing a new license to the same address. 3)Review and revise fine structure . A key component of the Board's ability to regulate the public is its authority to issue citations and fines for violations. Although the cite and fine program was established in 1994, the fine amounts have not been updated since that time. Fines may be too low to serve as a deterrent to licensees who are violating the law. At DCA's public hearing last year, concerns were raised that some licensees are not responsive to the threat of a citation and a fine, due to the low cost of the fines levied. If fines are considered a "cost of doing business" they may lose their deterrent effect. This bill requires the Board to review and revise the schedule of administrative fines for violations, by January 1, 2005. Additionally, this bill requires the Board to ensure that it and BPPVE do not issue citations for the same violation. 4)Establishment closure authority . The Board has encountered situations where something has occurred at an establishment that poses an immediate public health and safety threat. Unfortunately, the Board lacks the authority to immediately shut down an establishment without having to go through the courts to obtain an interim suspension order. This bill would authorize the Board to suspend the operation of an establishment for up to 30 days upon finding egregious health SB 360 Page 8 and safety violations constituting an immediate threat to public health and safety. This bill requires the Board to assess actual costs for exams . Currently, the Board collects approximately $900,000 in examination fees while they annually spend approximately $3.4 million to administer the examination program. As a result of this discrepancy, the Board is redirecting resources from other critical functions, such as enforcement, to subsidize the examination program. Consistent with many of DCA's other regulatory programs; the Board should assess applicants for the actual costs of the examination. This bill authorizes the Board to assess actual costs for its examinations. This bill requires the Board to provide the following reviews and reports to JLSRC and DCA during its next review : 1)Review cosmetologist 1600 hour training requirement . Many professionals opt to only provide hairdressing services, yet are required to complete the 1600 hours needed to receive a full cosmetologist license. Individuals seeking a professional license in California should not be required to complete more training or testing than is necessary to perform a specific job. It is unclear why a stylist should be required to complete courses in non-hairstyling services. DCA's Office of Examination Resources is scheduled to complete an occupational analysis of the cosmetologist examination this year. This bill requires the Board, in conjunction with DCA's Office of Examination Resources, to review the 1600-hour training requirement for cosmetologists. 2)Review national exam . Adoption of the national examination would facilitate reciprocity with other states. This bill requires the Board, in conjunction with DCA's Office of Examination Resources, to evaluate the equivalency of the national exam. 3)Examine need to fingerprint applicants . The Board is currently not required to obtain fingerprint cards for background investigations from its applicants. As a consumer protection agency charged with protecting the public, the Board must be able to verify the identity of an applicant to whom it is giving a state occupational license, and the accuracy of criminal history information asserted on its application form. Twenty-three other DCA regulatory agencies SB 360 Page 9 (and many other non-DCD agencies) already use fingerprinting in connection with their licensing and/or enforcement activities. Therefore, this bill requires the Board to conduct a study to assess the costs and benefits associated with requiring all applicants to submit fingerprint cards for background investigations. 4)Revision of apprenticeship program . There are different licensing pathways in which an individual may qualify for the examination. An individual may qualify through training in an approved school, previous licensure in California, experience and/or training in another state or country, or through the apprenticeship program. If an individual chooses to take the apprenticeship pathway, he/she applies to the Board for an apprentice license and provides proof that he/she has completed a minimum number of pretraining hours at a facility approved by the Board. After obtaining an apprentice license, the individual trains in licensed establishments under the supervision of a licensee approved by the Board. It appears that the standards have not been reviewed in some time. This bill requires the Board to review, in coordination with the Department of Industrial Relations, all components of the apprenticeship program. 5)Revision of externship program . Students enrolled in private cosmetology schools can, upon completion of a minimum of 60% of the clock hours required for graduation in the course, work in a cosmetology establishment participating in the educational program of the school of cosmetology. Externs receive clock hour credit toward graduation, but that credit cannot exceed eight hours per week and cannot exceed 10% of the total clock hours required for completion of the course. No less than 90% of the responsibilities and duties of the extern shall consist of the acts included within the practice of cosmetology. The owner or manager of the establishment is required to monitor and report on the student's progress to the school on a regular basis, with assistance from supervising licensees. A participating school is required to assess the extern's learning outcome from the externship program. It is unclear whether the students should be paid or whether the program should be extended to students of all schools, not just cosmetology students from private schools. Therefore, this bill requires the Board to review all components of the SB 360 Page 10 externship program. In addition to structural changes, this bill requires the Board to address the following: (a) whether the program should be eliminated; (b) whether the program should be available to all students, not just cosmetology students attending private schools; and, (c) whether the students should be paid. 6)Same day licensing protections . The Board is required to issue licenses to passing examination candidates the same day they are examined. The Board is the only regulatory body under DCA to issue licenses to candidates on the day of the examination. According to the Board's current report to JLSRC, to meet this requirement, approximately 23,000 licenses a year are pre-printed and sent weekly by courier from the Employment Development Department printing plant to the two examination sites. Of these licenses, less than 50% are issued and the remainder must be shipped back to Board headquarters, audited, voided, and destroyed, requiring additional staff time and resources. This weekly transfer and destruction of pre-printed licenses is not only costly, but also presents a significant security risk by increasing the opportunity for theft, loss and fraudulent use. This bill requires the Board to assess the costs and benefits associated with same day licensing. If the Board determines that the benefits of same day licensing outweigh the costs, the Board shall immediately plan and implement safety measures to protect site staff and undispersed licenses. 7)Validity of aggregate scoring . California provides a two-part licensing examination that consists of a written portion and a practical portion. The required passing grade for all examinations is 75%. Except for the barber examination, all candidates must pass the written portion of the exam and the practical portion of the exam separately. Cosmetology, manicuring, esthetics and electrology candidates must achieve 300 points overall (out of a possible 400 points), including a score of 225 on the practical portion of the examination, and 70 on the written portion. In order to achieve the 300 overall points, the candidates must earn the additional 5 points in either portion of the examination. Barber candidates achieve a passing grade if the combined total points from the written and practical portions of the examination total 75 of 100. For barber exams taken during FY 1999/2000, the passage rate for SB 360 Page 11 the practical exam was 90% and 6% for the written exam. In comparison, during this same time period, for cosmetology exams, the passage rate for the practical exam was 75% and 67% for the written exam. For barber exams taken during FY 2000/2001, the passage rate for the practical exam was 89% and 6% for the written exam. In comparison, during this same time period, for cosmetology exams, the passage rate for the practical exam was 71% and 70% for the written exam. The low passage rate for barbers on the written exams calls into question the validity of aggregate scoring. This bill requires the Board, in conjunction with DCA's Office of Examination Resources, to assess the validity of aggregate scoring for Board applicants. Related legislation this session . Other "sunset review bills" include: SB 358 (Figueroa) which deals with the Board of Registered Nursing and the Board of Vocational Nursing and Psychiatric Technicians; SB 359 (Figueroa) which deals with the Bureau for Private Postsecondary and Vocational Education; SB 361 (Figueroa) which deals with the Pharmacy Board; SB 362 (Figueroa) which deals with the Dental Board and Committee on Dental Auxiliaries; and SB 363 (Figueroa) which deals with the California Council for Interior Design Certification. REGISTERED SUPPORT / OPPOSITION : Support None on file. Opposition Numerous individuals. Analysis Prepared by : David Pacheco / B. & P. / (916) 319-3301