BILL ANALYSIS Ó
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2015 - 2016 Regular
Bill No: SB 896 Hearing Date: April 18,
2016
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|Author: |Nguyen |
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|Version: |March 17, 2016 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Sarah Mason |
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Subject: Barbering and cosmetology: nail care establishments:
credit and debit cards
SUMMARY: Requires an establishment offering nail care services
that accepts a debit or credit card as payment for nail care
services to also accept a debit or credit card for payment of a
tip.
Existing law:
1) Provides for the licensure regulation of the practice of
barbering, cosmetology, and electrolysis under the Barbering
and Cosmetology Act (Act) by the Board of Barbering and
Cosmetology (BBC).
2) Establishes nail care as a specialty branch in the practice
of cosmetology and defines nail care as the practice of
cutting, trimming, polishing, coloring, tinting, cleansing,
manicuring, or pedicuring the nails of any person or
massaging or beautifying from the elbow to the fingertips or
the knee to the toes of any person. (Business and
Professions Code (BPC) § 7316 (c) (2))
3) Provides for licensure of manicurists by BBC to practice nail
care and requires applicants to be over the age of 17,
complete 10th grade in public California school or
equivalent, not subject to a denial and have either completed
a course in nail care from a BBC approved school, or
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practiced nail care in another state for a period of time
equivalent to the study and training of a BBC approved course
or completed an apprenticeship program in nail care. (BPC §
7326)
4) Defines "establishment" as any premises, building or part of
a building where any activity licensed under the Act is
practiced and sets forth requirements for licensure as an
establishment by BBC. (BPC §§ 7346-7352)
5) Requires an employer that permits patrons to pay gratuities
by credit card to pay the employees the full amount of the
gratuity that the patron indicated on the credit card slip,
without any deductions for any credit card payment processing
fees or costs that may be charged to the employer by the
credit card company. (Labor Code (LAB) § 351)
This bill: Requires an establishment offering nail care
services that accepts a debit or credit card as payment for nail
care services to also accept a debit or credit card for payment
of a tip.
FISCAL EFFECT: Unknown. This bill is keyed "fiscal" by
Legislative Counsel.
COMMENTS:
1. Purpose. The Author is the Sponsor of this measure.
According to the Author, with so many establishments state
wide it makes sense to have them uniformly provide the same
payment options for consumers. The Author notes that there
are over 52,000 establishments and almost 600,000 total
workers, including over 312,000 cosmetologists and
approximately 129,000 nail technicians currently licensed by
BBC.
According to the Author, currently, nail salon establishments
in the state accept various forms of payment for a consumer's
service and tip. The Author notes that while some
establishments accept paying for a service with a credit
card, they may not allow a tip to be charged on the credit
card, yet other establishments offer the service and tip to
be paid with a credit card. According to the Author, with so
SB 896 (Nguyen) Page 3
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many establishments throughout the state, it would be helpful
for a consumer to be able to pay for their service and tip in
one transaction when receiving nail care services like a
manicure or pedicure. The Author notes that many people
simply do not carry cash with them and most consumers have a
credit or debit card that they use for all their
transactions. The Author states that it is more convenient
for the consumer to be able to use their card for both the
service and tip, especially if they don't have cash with
them.
2. Nail Care in California. Nail care is a specialty branch in
the field of cosmetology. In California, a licensed
cosmetologist can practice nail care and BBC also licenses
manicurists as a separate license category. To become a
licensed manicurist, an applicant must submit proof of
completion to BBC of 400 training hours training covering all
practices of a manicurist, according to the following:
300 hours of technical instruction and practical
training in nail care - 60 hours of technical
instruction in manicures and pedicures (water and oil
manicures including hand and arm massage, complete
pedicure including foot and ankle massage, application
of artificial nails including liquid, gel, and powder
brush-ons, nail tips, nail wraps and repairs, and nail
analysis); 60 hours of practical operations in manicures
and pedicures; and 180 hours of nails
100 hours of technical instruction and practical
training in health and safety - 10 hours on laws and
regulations including the Act and BBC Rules and
Regulations; 25 hours on chemistry pertaining to the
practices of a manicurist including the chemical
composition and purpose of nail care preparations,
health and safety/hazardous substances, including
training in chemicals and health in establishments,
material safety data sheets, protection from hazardous
chemicals and preventing chemical injuries, health and
safety laws and agencies, ergonomics, and communicable
diseases, including HIV/AIDS and Hepatitis B; 20 hours
on disinfection and sanitation procedures to protect the
health and safety of the consumer as well as the
technician which entail disinfecting instruments and
SB 896 (Nguyen) Page 4
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equipment as specified with special attention given to
pedicure foot spa and basin disinfection procedures and;
10 hours in bacteriology, anatomy and physiology
BBC also recommends in its regulations that schools provide
training in communication skills that includes professional
ethics, salesmanship, decorum, record-keeping, client service
record cards, and basic tax responsibilities related to
independent contractors, booth renters, employees, and
employers
BBC currently licenses 126,872 manicurists, 310,041
cosmetologists (whom can also perform nail care services) and
52,785 establishments. BBC does not include information in
its establishment license data to differentiate between an
establishment offering nail care services specifically or
those offering other personal beautification services.
1. Credit Card Payments and Tips. According to the United
States Small Business Administration, credit and debit cards
are popular, convenient, flexible, and have become
increasingly important in business commerce. Card payments
are evolving into the most common method of customer payment,
as businesses can easily accept card payments and the
convenience of using credit cards generally increases the
likelihood of consumer purchases, which ultimately
contributes to an increase in a business's average sale.
Businesses that accept card payments pay processing fees for
purchase transactions.
According to the Internal Revenue Service, tips are
discretionary (optional or extra) payments determined by a
customer that employees receive from customers. Tips include
cash tips received directly from customers, tips from
customers who leave a tip through electronic settlement or
payment (including a credit card, debit card, gift card, or
any other electronic payment method), the value of any
noncash tips, such as tickets, or other items of value, and
tip amounts received from other employees paid out through
tip pools or tip splitting, or other formal or informal tip
sharing arrangement. According to the United States
Department of Labor (USDL), tipped employees are those who
customarily and regularly receive more than $30 per month in
tips. Tips are the property of the employee.
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2. BBC Is Not Able To Differentiate Between Establishment Types.
This bill applies specifically to establishments that offer
nail care services, however BBC does not currently classify
licensed establishments based on the types of services they
offer. BBC does not, for example, have the ability to
determine the number of licensed establishments that offer
nail care services, nor can BBC capture whether an
establishment is solely offering nail care services, or
offering those in combination with a variety of other
beautification services. If the Author intends for nail
salons to be the only type of BBC licensed establishment
required to accept credit and debit card payment for tips,
the Author may wish to require BBC to collect establishment
data about type of services provided, to then ensure that the
provisions of the bill apply to nail care services
establishments.
SUPPORT AND OPPOSITION:
Support: None on file as of April 12, 2016.
Opposition: None on file as of April 12, 2016.
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