BILL ANALYSIS Ó AB 2025 Page 1 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 AB 2025 Page 2 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) AB 2025 Page 3 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: AB 2025 Page 4 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, AB 2025 Page 5 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 AB 2025 Page 6 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 AB 2025 Page 7 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 AB 2025 Page 8 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 AB 2025 Page 9 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 AB 2025 Page 10 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 AB 2025 Page 11 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. AB 2025 Page 12 Analysis Prepared by:Elissa Silva / B. & P. / (916) 319-3301