BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2025


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          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           |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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                                                                    AB 2025


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          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,








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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:  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  








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            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,  








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          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,  








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          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  








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          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