BILL ANALYSIS Ó AB 2025 Page 1 ASSEMBLY THIRD READING AB 2025 (Gonzalez) As Amended April 18, 2016 Majority vote ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Business & |13-0 |Salas, Baker, Bloom, | | |Professions | |Campos, Chávez, | | | | |Dahle, Dodd, Gatto, | | | | |Gomez, Holden, | | | | |Mullin, Ting, Wood | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |20-0 |Gonzalez, Bigelow, | | | | |Bloom, Bonilla, | | | | |Bonta, Calderon, | | | | |Chang, McCarty, | | | | |Eggman, Gallagher, | | | | |Eduardo Garcia, Chau, | | | | |Holden, Jones, | | | | |Obernolte, Quirk, | | | | |Santiago, Wagner, | | | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------ AB 2025 Page 2 SUMMARY: Requires, beginning January 1, 2018, 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, authorizes the BBC to collect voluntary demographic information of its applicants for licensure. Specifically, this bill: 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," 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 3 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: According to the Assembly Appropriations Committee, 1)Minor and absorbable costs to the BBC (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 BBC (special funds) to AB 2025 Page 4 create and make available information and to translate written materials. The BBC indicates they have the necessary information and are in the process of translating materials currently. 3)Minor and absorbable costs for any information technology workload required. COMMENTS: Purpose. This bill aims to increase education and information for licensees and establishment owners in basic labor laws and 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, AB 2025 Page 5 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 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 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, AB 2025 Page 6 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 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. Business and Professions Code 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. 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 AB 2025 Page 7 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 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. Analysis Prepared by: Elissa Silva / B. & P. / (916) 319-3301 FN: 0002959