BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:   April 12, 2016


                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS


                                  Rudy Salas, Chair


          AB 2025  
          (Gonzalez) - As Amended March 18, 2016


          SUBJECT:  Barbering and cosmetology:  labor law education  
          requirements.


          SUMMARY:  Requires the Board of Barbering and Cosmetology (BBC),  
          as a condition of issuing an establishment license, to ensure  
          that the applicant has knowledge of basic labor laws pertaining  
          to the individuals who work in establishments, as specified;  
          requires the BBC to consult with the Department of Industrial  
          Relations (DIR) in developing and adding questions on the  
          application for licensure; requires the BBC to consult with  
          stakeholders and the DIR to create informational materials on  
          basic labor laws; requires the BBC to translate all of its  
          written materials in English, Spanish, and Vietnamese; and,  
          beginning January 1, 2018, authorizes the BBC to collect  
          voluntary demographic information of its applicants for  
          licensure,.


          EXISTING LAW:


          1)Establishes the BBC which provides for the licensure and  
            regulation of Barbers; Barber Apprentices; Cosmetology  
            Apprentices; Cosmetologists; Electrologists; Estheticians;  
            Manicurists; Establishments; and, Mobile Units, within the  








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            Department of Consumer Affairs (DCA) to administer and enforce  
            the Barbering and Cosmetology Act (Act).  (Business and  
            Professions Code (BPC) Section 7301 et seq.) 



          2)Defines an "establishment" as any premises, building, or part  
            of a building where any BBC-licensed activity is practiced.   
            (BPC Section 7346(a))

          3)Specifies that an establishment also includes any premises,  
            building, or part of a building where natural hair styling is  
            practiced for compensation.  (BPC Section 7346(b))





          4)Requires any person, firm, or corporation desiring to operate  
            an establishment to make an application to the BBC, which must  
            include whether the person, firm, or corporation is operating  
            a new establishment or obtaining ownership of an existing  
            establishment, as specified.  (BPC Section 7347)



          5)States that an applicant, whether an individual, or each  
            officer, director, partner, if the applicant is not an  
            individual, may not have committed acts or crimes which are  
            grounds for denial of licensure in effect at the time the new  
            application is submitted, as specified.  (BPC Section 7374)



          6)Prohibits operation of the establishment at any other location  
            unless a license for the new location has been obtained, as  
            specified.  (BPC Section 7347)










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          7)Requires the BBC's EO and authorized representatives, as  
            specified, to have access to, for the purpose of required  
            inspections, any establishment or mobile unit during business  
            hours or at any time in which barbering and cosmetology are  
            being performed.  (BPC Section 7313)



          8)Requires, within 90 days after issuance of the establishment  
            license, an inspection of the establishment for compliance  
            with the applicable rules and regulations of the BBC.  (BPC  
            Section 7353 (a)(1))



          9)Requires the BBC to maintain a program of random and targeted  
            inspections of establishments, as specified, and prohibits the  
            BBC from reducing the number of employees assigned to perform  
            random inspections, targeted inspections, and investigations  
            related to field operations below the level funded, as  
            specified.  (BPC Section 7353(b)(d))



          10)Prohibits the practice of barbering, cosmetology, or  
            electrolysis for compensation without a valid, unexpired  
            provider license or in an establishment or mobile unit unless  
            licensed by the BBC.  (BPC Section 7317)



          11)Permits the practice of barbering and cosmetology outside of  
            a licensed establishment when necessary due to illness or  
            other physical or mental incapacitation of the recipient of  
            the service when performed by an individual licensed by the  
            BBC.  (BPC Section 7318)
          THIS BILL:









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          1)Requires the BBC to offer and make available all written  
            materials provided to licensees and applicants in English,  
            Spanish, and Vietnamese.  





          2)Requires the inclusion of instruction and coursework in labor  
            laws that pertain to the types of licensees who may work in  
            establishments for applicants for licensure.



          3)Requires applicants for an establishment license to have  
            knowledge of basic labor laws that pertain to the types of  
            licensees who may work in the establishment.



          4)Defines "basic labor laws," for the purpose of 4 above, to  
            include, but not be limited to the following:



             a)   A key difference between the legal rights, benefits, and  
               obligations of an employee and an independent contractor;



             b)   Wage and hour rights for hourly employees;



             c)   Antidiscrimination laws relating to the use of a  
               particular language in the workplace; and,










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             d)   How to obtain more information about labor law from the  
               DIR. 



          5)Requires the BBC to ensure that applicants for an  
            establishment license have the knowledge of basic labor law by  
            consulting with the DIR to develop and add questions on basic  
            labor laws to the application; in consultation with DIR and  
            stakeholders select and create informational materials on  
            basic labor laws that the BBC determines to be practical and  
            accessible to all applicants.



          6)Requires, as part of a complete application, a signed  
            acknowledgement that the applicant understands that  
            establishments are responsible for obeying labor laws of the  
            state and the informational materials on basic labor laws  
            established by the BBC.



          7)Requires the BBC, commencing January 1, 2018, to collect  
            through optional questions on an application for licensure,  
            the demographic information of each applicant, including, but  
            not limited to, his or her spoken and written language  
            preference.

          FISCAL EFFECT:  Unknown.  This bill is keyed fiscal by the  
          Legislative Counsel.  


          COMMENTS:


          Purpose.  This bill aims to increase education and information  
          for licensees and establishment owners in basic labor laws and  








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          also requires the BBC to translate informational material for  
          licensees into English, Spanish and Vietnamese.  This bill is  
          sponsored by the  California Healthy Nail Salon Collaborative  .   
          According to the author, "California has many strong labor  
          standards, but part of enforcing those laws is making sure  
          workers know their rights, and that business owners are aware of  
          obligations to the workers in those businesses.  [This bill]  
          takes the opportunity to educate workers and salon owners using  
          existing license application processes and training  
          requirements. The Legislature also knows that language barriers  
          are a problem for establishments regulated by the Board of  
          Barbering and Cosmetology, especially nail salons, which is why  
          [this bill] includes provisions to improve language access for  
          both workers and businesses."


          Board of Barbering and Cosmetology.  The BBC is responsible for  
          licensing and regulating barbers, cosmetologists, estheticians,  
          electrologists, manicurists, apprentices and approximately  
          41,000 establishments.  Establishment licensees do not need to  
          hold a separate professional license.  In order to obtain an  
          establishment license, an individual must submit an application  
          to the BBC and pay the appropriate fee.  The application must  
          contain information about the applicant, whether it is a person,  
          firm, or corporation that will be operating the establishment,  
          and specifically prohibits issuing an establishment license if  
          the individual, or each officer, director, or partner has  
          committed any acts or crimes, as specified, which are grounds  
          for denial.  The types of establishments that the BBC regulates,  
          includes, but is not limited to, nail salons, barbers, and hair  
          salons. 


          An establishment license is only valid for the address listed on  
          the license.  If a licensed establishment owner moves to a new  
          location, he or she is required to apply for a new establishment  
          license.  The BBC is required to maintain a program of random  
          and targeted inspections of establishments to ensure compliance  
          with applicable laws relating to health and safety.  While the  








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          BBC inspects establishments for compliance with applicable  
          health and safety requirements, it does not have jurisdiction  
          over the enforcement of labor laws.  


          This bill does not provide the BBC with enforcement authority  
          for labor code violations; however, it will require the BBC to  
          create, in consultation with the DIR and stakeholders,  
          informational materials on basic labor laws which be accessible  
          to all licensees.  This bill will specifically require  
          applicants for an establishment license to acknowledge, through  
          the application process, that they understand the informational  
          materials on basic labor laws.  The materials on basic labor  
          laws developed by the BBC in consultation with the DIR must  
          include at a minimum, information about key differences between  
          the legal rights, benefits, and obligations of an employee and  
          independent contractor, wage and hour rights for employees,  
          antidiscrimination and, anti-retaliation laws.  


          Joint Hearing on Labor Practices, Health, and Safety in  
          California Nail Salons.  Labor concerns for nail technicians  
          were raised in a May 7, 2015, article from the New York Times,  
          "The Price of Nice Nails", in which it was reported: "The New  
          York Times interviewed more than 150 nail salon workers and  
          owners, in four languages, and found that a vast majority of  
          workers are paid below minimum wage; sometimes they are not even  
          paid. Workers endure all manner of humiliation, including having  
          their tips docked as punishment for minor transgressions,  
          constant video monitoring by owners, even physical abuse.  
          Employers are rarely punished for labor and other violations."  


          In August of 2015, the Assembly Select Committee on Women in the  
          Workplace, Assembly Select Committee on Girls and Women of  
          Color, Assembly Committee on Health, Assembly Committee on  
          Business and Professions, and the Assembly Committee on Labor  
          and Employment held a joint informational hearing which focused  
          on both the health and safety of licensees regarding exposure to  








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          chemicals and other ingredients, and concerns about labor  
          practices in nail salons, where according to the Healthy Nail  
          Salon Collaborative, "there are approximately 97,100 manicurists  
          and 241,700 cosmetologists in California. Up to 80% are  
          estimated to be Vietnamese immigrants, and more than 50% are of  
          childbearing age."  


          Health and Safety Curriculum.  The BBC is required to design the  
          curriculum of a health and safety course that must be covered by  
          schools as part of the hours of required instruction. BPC  
          Section 7389 specifies that the BBC is to develop or adopt a  
          health and safety course on hazardous substances, which must be  
          taught in schools approved by the BBC.  This curriculum needs to  
          be taught as a stand-alone course, separate from other  
          curricula, in order to fulfill the Health and Safety Hazardous  
          Substances requirement.  In order to develop the content for  
          this course, the BBC worked with the health professionals from  
          the Labor Occupational Health Program (LHOP) based at the School  
          of Public Health, University of California, Berkeley (UCB). The  
          LHOP curriculum program is titled, Health and Safety for Hair  
          Care and Beauty Professionals. 


          Language Access Issues. During the BBC's 2015 Sunset Review, the  
          issue of language access and the BBC's ability to enhance  
          language-access services to consumers and licensees was raised.   
          As noted in the Assembly Committee on Business and Professions  
          2015 background paper, because the BBC's licensing population is  
          over 550,000 licensees, in order to meet the needs of its  
          diverse licensing population, with respect to regulatory  
          oversight, it is critical that the BBC is able to communicate  
          effectively with its licensees throughout the lifecycle of the  
          licensing process.  The BBC noted in its 2014 Sunset Review  
          Report that it made language access one of its priorities over  
          the last two years. To that end, the BBC reported that it has  
          translated all of its documents into Vietnamese, Spanish, and  
          Korean.  This bill would require the BBC to offer and make  
          available all written materials provided to licensees and  








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          applicants in English, Spanish, and Vietnamese.  Another issue  
          that was raised during the BBC's 2015 sunset review hearing  
          pertained to the collection of demographic data of  
          BBC-licensees.  Without statutory authority, the BBC reports  
          that it is not able to collect specified data about its  
          applicants or licensees, including language preferences.  This  
          bill will authorize the BBC to collect specified demographic  
          information of its licensees, including language preference, if  
          an applicant chooses to provide the information.  This bill will  
          not require applicants for licensure to provide such  
          information.  


          Related Legislation.  AB 2437 (Ting) of 2016, requires a nail  
          care services establishment to register with the DIR and receive  
          specified training regarding workplace rights and wage and hour  
          laws, as specified, and make that training available to its  
          employees, authorizes the DIR to charge a fee for the training  
          costs; in addition, this bill requires the BBC to deny the  
          renewal of a license to an establishment that provides nail care  
          services if that establishment is conducting business in  
          violation of specified labor laws and requires the Labor  
          Commissioner to notify the BBC if an establishment is conducting  
          business in violation, and authorizes  an establishment to  
          provide evidence to the BBC that it is not conducting business  
          in violation, as specified.  Note: This bill is pending in the  
          Assembly Committee on Business and Professions. 


          ARGUMENTS IN SUPPORT: 


          The California Healthy Nail Collaborative writes in support,  
          "[this bill] acknowledges that current labor laws may not  
          necessarily need fixing in order to ensure labor law compliance  
          in nail salons.  Education for workers and owners on wage and  
          hour and other labor laws will go a long way toward improving  
          the working conditions for the immigrant women worker community.  
           [This bill] will also result in dismantling significant  








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          language barriers; the nail salon community of owners and  
          workers are predominately native speakers of Vietnamese, many  
          with limited English skills.  All materials developed and  
          disseminated in any way by the BBC will be available not only in  
          English but also in Vietnamese and Spanish, benefiting  
          Spanish-Speaking licensees as well as Vietnamese." 


          ARGUMENTS IN OPPOSITION:


          None on file. 


          IMPLEMENTATION ISSUES:


          1)In order to provide the BBC with sufficient time to complete  
            the translation services, the author may wish to provide the  
            BBC with additional 6-months to complete and make all written  
            materials available to licensees. 



          2)This bill requires the BBC to consult with the DIR to develop  
            the questions for the establishment application related to  
            basic labor laws, and requires the BBC to consult with the DIR  
            and stakeholders in developing materials accessible to all  
            applicants and licensees.  As currently drafted, this bill  
            does not provide any timeframe for the BBC and DIR to complete  
            the development process.  In order to provide the BBC, DIR and  
            stakeholders with the appropriate amount of time to  
            participate in the development process, the author may wish to  
            require the revised application and labor law materials to be  
            completed by January 1, 2018. 
          AMENDMENTS:


          To address issue number two above, the bill should be amended as  








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          follows:


          On page 6, in line 3, after (a), insert,  on or before January 1,  
          2018,


           REGISTERED SUPPORT:  


          California Healthy Nail Salon Collaborative (sponsor)


          Asian and Pacifica Islander American Health Forum


          Asian Health Services


          California Employment Lawyers Association


          California Pan-Ethnic Health Network


          Immigrant Resettlement and Cultural Center, Inc.


          Orange County Asian and Pacific Islander Community Alliance


          One individual


          REGISTERED OPPOSITION:  


          None on file. 









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          Analysis Prepared by:Elissa Silva / B. & P. / (916) 319-3301