BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 360
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          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. 








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          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. 








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               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.









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          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; 








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          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  








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            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  








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            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  








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            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  








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            (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  








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            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  








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            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