BILL ANALYSIS Ó AB 2025 Page 1 Date of Hearing: May 11, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2025 (Gonzalez) - As Amended April 18, 2016 ----------------------------------------------------------------- |Policy |Business and Professions |Vote:|13 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires the Board of Barbering and Cosmetology (Board), as a condition of issuing an establishment a license, to ensure that the applicant has knowledge of basic labor laws pertaining to the individuals who work in establishments, as AB 2025 Page 2 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 Board 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 Board to collect voluntary demographic information of its applicants for licensure,. FISCAL EFFECT: 1)Minor and absorbable costs to the Board (special funds) to develop and add general check mark questions regarding the applicant's understanding of basic labor law to the application for licensure. Staff notes that if the questions instead require exam-like answers and correct answers are a condition of licensure, the fiscal impact would be substantially higher. 2)Minor and absorbable costs to the Board (special funds) to create and make available information and to translate written materials. The Board indicates they have the necessary information and are in the process of translating materials currently. 3)Minor and absorbable costs for any IT workload required. COMMENTS: 1)Purpose. 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 AB 2025 Page 3 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, especially nail salons, which is why this bill includes provisions to improve language access for both workers and businesses." This bill aims to increase education and information for licensees and establishment owners in basic labor laws and also requires the Board to translate informational material for licensees into English, Spanish and Vietnamese. 2)Board of Barbering and Cosmetology. The Board is responsible for licensing and regulating barbers, cosmetologists, estheticians, electrologists, manicurists, apprentices, and approximately 41,000 establishments, including nail salons, barbershops and hair salons. There are almost 600,000 total workers, including 312,000 cosmetologists and approximately 129,000 nail technicians, currently licensed through the Board. 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 Board 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 AB 2025 Page 4 committed any acts or crimes, as specified, which are grounds for denial. 3)Joint Legislative Informational Hearing. In August of 2015, the Assembly held a joint informational hearing which focused on the health and safety of licensees regarding exposure to chemicals and other ingredients, and concerns about labor practices in nail salons. The hearing produced testimony regarding the lack of information about workers' rights as well as cultural and language barriers resulting in illegal labor practices - often not intentional. 4)Related Legislation. a) AB 2437 (Ting), also before this Committee today, establishes a workplace notice requirement for barbering and cosmetology establishments regarding workplace rights, as specified. b) AB 2125 (Chiu) requires the California Department of Public Health (CDPH) to publish guidelines and model ordinances to assist local jurisdictions to voluntarily adopt local "Healthy Nail Salon" recognition programs. This bill is pending on this Committee's Suspense File. AB 2025 Page 5 Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081