S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8199
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             October 27, 2023
                                ___________
 
 Introduced by M. of A. MILLER -- read once and referred to the Committee
   on Economic Development
 
 AN  ACT  to  amend the general business law, in relation to adopting the
   cosmetology licensure compact
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The general business law is amended by adding a new section
 401-a to read as follows:
   §  401-A.  COSMETOLOGY  LICENSURE  COMPACT.  THE COSMETOLOGY LICENSURE
 COMPACT IS HEREBY ENTERED INTO AND ENACTED INTO LAW WITH  ALL  JURISDIC-
 TIONS LEGALLY JOINING THEREIN, IN THE FORM SUBSTANTIALLY AS FOLLOWS:
 
                       COSMETOLOGY LICENSURE COMPACT
                            ARTICLE 1 - PURPOSE
 
   THE  PURPOSE  OF THIS COMPACT IS TO FACILITATE THE INTERSTATE PRACTICE
 AND REGULATION OF COSMETOLOGY WITH THE GOAL OF IMPROVING  PUBLIC  ACCESS
 TO,  AND  THE  SAFETY  OF, COSMETOLOGY SERVICES AND REDUCING UNNECESSARY
 BURDENS RELATED TO COSMETOLOGY  LICENSURE.  THROUGH  THIS  COMPACT,  THE
 MEMBER  STATES  SEEK  TO ESTABLISH A REGULATORY FRAMEWORK WHICH PROVIDES
 FOR A NEW MULTISTATE  LICENSING  PROGRAM.  THROUGH  THIS  NEW  LICENSING
 PROGRAM,  THE MEMBER STATES SEEK TO PROVIDE INCREASED VALUE AND MOBILITY
 TO LICENSED COSMETOLOGISTS IN THE  MEMBER  STATES,  WHILE  ENSURING  THE
 PROVISION OF SAFE, EFFECTIVE, AND RELIABLE SERVICES TO THE PUBLIC.
   THIS  COMPACT IS DESIGNED TO ACHIEVE THE FOLLOWING OBJECTIVES, AND THE
 MEMBER STATES HEREBY RATIFY THE SAME INTENTIONS BY SUBSCRIBING HERETO:
   A. PROVIDE OPPORTUNITIES FOR INTERSTATE PRACTICE BY COSMETOLOGISTS WHO
 MEET UNIFORM REQUIREMENTS FOR MULTISTATE LICENSURE;
   B. ENHANCE THE ABILITIES OF MEMBER STATES TO PROTECT PUBLIC HEALTH AND
 SAFETY, AND PREVENT FRAUD AND UNLICENSED ACTIVITY WITHIN THE PROFESSION;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11662-01-3
 A. 8199                             2
              

 
   C. ENSURE AND ENCOURAGE  COOPERATION  BETWEEN  MEMBER  STATES  IN  THE
 LICENSURE AND REGULATION OF THE PRACTICE OF COSMETOLOGY;
   D. SUPPORT RELOCATING MILITARY MEMBERS AND THEIR SPOUSES;
   E.  FACILITATE  THE  EXCHANGE  OF  INFORMATION  BETWEEN  MEMBER STATES
 RELATED TO THE LICENSURE, INVESTIGATION, AND DISCIPLINE OF THE  PRACTICE
 OF COSMETOLOGY;
   F.  PROVIDE  FOR  THE  LICENSURE  AND MOBILITY OF THE WORKFORCE IN THE
 PROFESSION, WHILE ADDRESSING THE SHORTAGE OF WORKERS AND  LESSENING  THE
 ASSOCIATED BURDENS ON THE MEMBER STATES.
 
                          ARTICLE 2 - DEFINITIONS
 
   AS USED IN THIS COMPACT, AND EXCEPT AS OTHERWISE PROVIDED, THE FOLLOW-
 ING DEFINITIONS SHALL GOVERN THE TERMS HEREIN:
   A.  "ACTIVE  MILITARY  MEMBER"  MEANS  ANY  PERSON WITH FULL-TIME DUTY
 STATUS IN THE ARMED FORCES OF THE UNITED STATES,  INCLUDING  MEMBERS  OF
 THE NATIONAL GUARD AND RESERVE.
   B.  "ADVERSE  ACTION"  MEANS  ANY ADMINISTRATIVE, CIVIL, EQUITABLE, OR
 CRIMINAL ACTION PERMITTED BY A MEMBER STATE'S LAWS WHICH IS IMPOSED BY A
 STATE LICENSING AUTHORITY OR OTHER REGULATORY BODY AGAINST A  COSMETOLO-
 GIST, INCLUDING ACTIONS AGAINST AN INDIVIDUAL'S LICENSE OR AUTHORIZATION
 TO PRACTICE SUCH AS REVOCATION, SUSPENSION, PROBATION, MONITORING OF THE
 LICENSEE,  LIMITATION  OF  THE  LICENSEE'S PRACTICE, OR ANY OTHER ENCUM-
 BRANCE ON A LICENSE AFFECTING AN INDIVIDUAL'S ABILITY TO PARTICIPATE  IN
 THE  COSMETOLOGY  INDUSTRY, INCLUDING THE ISSUANCE OF A CEASE AND DESIST
 ORDER.
   C. "AUTHORIZATION TO PRACTICE" MEANS A LEGAL AUTHORIZATION  ASSOCIATED
 WITH A MULTISTATE LICENSE PERMITTING THE PRACTICE OF COSMETOLOGY IN THAT
 REMOTE  STATE, WHICH SHALL BE SUBJECT TO THE ENFORCEMENT JURISDICTION OF
 THE STATE LICENSING AUTHORITY IN THAT REMOTE STATE.
   D. "ALTERNATIVE PROGRAM" MEANS A NON-DISCIPLINARY MONITORING OR PROSE-
 CUTORIAL DIVERSION PROGRAM APPROVED BY A MEMBER STATE'S STATE  LICENSING
 AUTHORITY.
   E.  "BACKGROUND  CHECK"  MEANS  THE  SUBMISSION  OF INFORMATION FOR AN
 APPLICANT FOR THE PURPOSE OF OBTAINING THAT APPLICANT'S CRIMINAL HISTORY
 RECORD INFORMATION, AS FURTHER DEFINED IN 28 C.F.R. § 20.3(D), FROM  THE
 FEDERAL BUREAU OF INVESTIGATION AND THE AGENCY RESPONSIBLE FOR RETAINING
 STATE CRIMINAL OR DISCIPLINARY HISTORY IN THE APPLICANT'S HOME STATE.
   F.  "CHARTER MEMBER STATE" MEANS MEMBER STATES WHO HAVE ENACTED LEGIS-
 LATION TO ADOPT THIS COMPACT WHERE SUCH LEGISLATION PREDATES THE  EFFEC-
 TIVE DATE OF THIS COMPACT AS DEFINED IN ARTICLE 13.
   G.  "COMMISSION" MEANS THE GOVERNMENT AGENCY WHOSE MEMBERSHIP CONSISTS
 OF ALL STATES THAT HAVE ENACTED THIS COMPACT,  WHICH  IS  KNOWN  AS  THE
 COSMETOLOGY  LICENSURE  COMPACT COMMISSION, AS DEFINED IN ARTICLE 9, AND
 WHICH SHALL OPERATE AS AN INSTRUMENTALITY OF THE MEMBER STATES.
   H. "COSMETOLOGIST" MEANS AN INDIVIDUAL LICENSED IN THEIR HOME STATE TO
 PRACTICE COSMETOLOGY.
   I. "COSMETOLOGY", "COSMETOLOGY SERVICES", AND THE "PRACTICE OF  COSME-
 TOLOGY"  MEAN  THE  CARE AND SERVICES PROVIDED BY A COSMETOLOGIST AS SET
 FORTH IN THE MEMBER STATE'S STATUTES AND REGULATIONS IN THE STATE  WHERE
 THE SERVICES ARE BEING PROVIDED.
   J. "CURRENT SIGNIFICANT INVESTIGATIVE INFORMATION" MEANS:
   1.  INVESTIGATIVE  INFORMATION THAT A STATE LICENSING AUTHORITY, AFTER
 AN INQUIRY OR INVESTIGATION THAT COMPLIES  WITH  A  MEMBER  STATE'S  DUE
 PROCESS  REQUIREMENTS,  HAS  REASON TO BELIEVE IS NOT GROUNDLESS AND, IF
 A. 8199                             3
 
 PROVED TRUE, WOULD INDICATE A VIOLATION OF THAT STATE'S  LAWS  REGARDING
 FRAUD OR THE PRACTICE OF COSMETOLOGY; OR
   2.  INVESTIGATIVE  INFORMATION  THAT  INDICATES  THAT  A  LICENSEE HAS
 ENGAGED IN FRAUD OR REPRESENTS AN IMMEDIATE THREAT TO PUBLIC HEALTH  AND
 SAFETY,  REGARDLESS OF WHETHER THE LICENSEE HAS BEEN NOTIFIED AND HAD AN
 OPPORTUNITY TO RESPOND.
   K. "DATA SYSTEM" MEANS A REPOSITORY OF  INFORMATION  ABOUT  LICENSEES,
 INCLUDING,  BUT  NOT  LIMITED TO, LICENSE STATUS, INVESTIGATIVE INFORMA-
 TION, AND ADVERSE ACTIONS.
   L. "DISQUALIFYING EVENT" MEANS ANY EVENT  WHICH  SHALL  DISQUALIFY  AN
 INDIVIDUAL  FROM  HOLDING A MULTISTATE LICENSE UNDER THIS COMPACT, WHICH
 THE COMMISSION MAY BY RULE OR ORDER SPECIFY.
   M. "ENCUMBERED LICENSE" MEANS A LICENSE IN  WHICH  AN  ADVERSE  ACTION
 RESTRICTS  THE  PRACTICE  OF  COSMETOLOGY  BY  A LICENSEE, OR WHERE SAID
 ADVERSE ACTION HAS BEEN REPORTED TO THE COMMISSION.
   N. "ENCUMBRANCE" MEANS A REVOCATION OR SUSPENSION OF, OR  ANY  LIMITA-
 TION  ON,  THE  FULL AND UNRESTRICTED PRACTICE OF COSMETOLOGY BY A STATE
 LICENSING AUTHORITY.
   O. "EXECUTIVE  COMMITTEE"  MEANS  A  GROUP  OF  DELEGATES  ELECTED  OR
 APPOINTED TO ACT ON BEHALF OF, AND WITHIN THE POWERS GRANTED TO THEM BY,
 THE COMMISSION.
   P.  "HOME  STATE" MEANS THE MEMBER STATE WHICH IS A LICENSEE'S PRIMARY
 STATE OF RESIDENCE, AND WHERE THAT LICENSEE HOLDS AN ACTIVE AND UNENCUM-
 BERED LICENSE TO PRACTICE COSMETOLOGY.
   Q. "INVESTIGATIVE INFORMATION" MEANS INFORMATION,  RECORDS,  OR  DOCU-
 MENTS  RECEIVED  OR GENERATED BY A STATE LICENSING AUTHORITY PURSUANT TO
 AN INVESTIGATION OR OTHER INQUIRY.
   R. "JURISPRUDENCE REQUIREMENT" MEANS THE ASSESSMENT OF AN INDIVIDUAL'S
 KNOWLEDGE OF THE LAWS AND RULES GOVERNING THE PRACTICE OF COSMETOLOGY IN
 A STATE.
   S. "LICENSEE" MEANS AN INDIVIDUAL WHO CURRENTLY HOLDS A LICENSE FROM A
 MEMBER STATE TO PRACTICE AS A COSMETOLOGIST.
   T. "MEMBER STATE" MEANS ANY STATE THAT HAS ADOPTED THIS COMPACT.
   U. "MULTISTATE LICENSE" MEANS A LICENSE ISSUED BY AND SUBJECT  TO  THE
 ENFORCEMENT   JURISDICTION   OF  THE  STATE  LICENSING  AUTHORITY  IN  A
 LICENSEE'S HOME STATE, WHICH AUTHORIZES THE PRACTICE OF  COSMETOLOGY  IN
 MEMBER STATES AND INCLUDES AUTHORIZATIONS TO PRACTICE COSMETOLOGY IN ALL
 REMOTE STATES PURSUANT TO THIS COMPACT.
   V.  "REMOTE  STATE"  MEANS ANY MEMBER STATE, OTHER THAN THE LICENSEE'S
 HOME STATE.
   W. "RULE" MEANS ANY RULE OR REGULATION PROMULGATED BY  THE  COMMISSION
 UNDER THIS COMPACT WHICH HAS THE FORCE OF LAW.
   X.  "SINGLE-STATE  LICENSE"  MEANS  A  COSMETOLOGY LICENSE ISSUED BY A
 MEMBER STATE THAT AUTHORIZES PRACTICE OF  COSMETOLOGY  ONLY  WITHIN  THE
 ISSUING  STATE  AND  DOES  NOT  INCLUDE ANY AUTHORIZATION OUTSIDE OF THE
 ISSUING STATE.
   Y. "STATE" MEANS A STATE,  TERRITORY,  OR  POSSESSION  OF  THE  UNITED
 STATES AND THE DISTRICT OF COLUMBIA.
   Z.  "STATE LICENSING AUTHORITY" MEANS A MEMBER STATE'S REGULATORY BODY
 RESPONSIBLE FOR ISSUING COSMETOLOGY LICENSES OR OTHERWISE OVERSEEING THE
 PRACTICE OF COSMETOLOGY IN THAT STATE.
 
                   ARTICLE 3 - MEMBER STATE REQUIREMENTS
 
   A. TO BE ELIGIBLE TO JOIN THIS COMPACT, AND TO MAINTAIN ELIGIBILITY AS
 A MEMBER STATE, A STATE MUST:
 A. 8199                             4

   1. LICENSE AND REGULATE COSMETOLOGY;
   2.  HAVE  A  MECHANISM  OR  ENTITY IN PLACE TO RECEIVE AND INVESTIGATE
 COMPLAINTS ABOUT LICENSEES PRACTICING IN THAT STATE;
   3. REQUIRE THAT LICENSEES WITHIN THE STATE PASS A  COSMETOLOGY  COMPE-
 TENCY  EXAMINATION  PRIOR  TO  BEING  LICENSED  TO  PROVIDE  COSMETOLOGY
 SERVICES TO THE PUBLIC IN THAT STATE;
   4. REQUIRE THAT LICENSEES SATISFY EDUCATIONAL OR TRAINING REQUIREMENTS
 IN COSMETOLOGY PRIOR TO BEING LICENSED TO PROVIDE  COSMETOLOGY  SERVICES
 TO THE PUBLIC IN THAT STATE;
   5.  IMPLEMENT  PROCEDURES FOR CONSIDERING ONE OR MORE OF THE FOLLOWING
 CATEGORIES OF INFORMATION FROM APPLICANTS FOR LICENSURE: CRIMINAL HISTO-
 RY; DISCIPLINARY HISTORY;  OR  BACKGROUND  CHECK.  SUCH  PROCEDURES  MAY
 INCLUDE  THE  SUBMISSION OF INFORMATION BY APPLICANTS FOR THE PURPOSE OF
 OBTAINING AN APPLICANT'S BACKGROUND CHECK AS DEFINED HEREIN;
   6. PARTICIPATE IN THE DATA SYSTEM, INCLUDING THROUGH THE USE OF UNIQUE
 IDENTIFYING NUMBERS;
   7. SHARE INFORMATION RELATED TO ADVERSE ACTIONS  WITH  THE  COMMISSION
 AND OTHER MEMBER STATES, BOTH THROUGH THE DATA SYSTEM AND OTHERWISE;
   8.  NOTIFY  THE COMMISSION AND OTHER MEMBER STATES, IN COMPLIANCE WITH
 THE TERMS OF THE COMPACT AND RULES OF THE COMMISSION, OF  THE  EXISTENCE
 OF INVESTIGATIVE INFORMATION OR CURRENT SIGNIFICANT INVESTIGATIVE INFOR-
 MATION IN THE STATE'S POSSESSION REGARDING A LICENSEE PRACTICING IN THAT
 STATE;
   9.  COMPLY  WITH  SUCH  RULES  AS  MAY BE ENACTED BY THE COMMISSION TO
 ADMINISTER THE COMPACT; AND
   10. ACCEPT LICENSEES FROM OTHER MEMBER STATES AS ESTABLISHED HEREIN.
   B. MEMBER STATES MAY CHARGE A FEE FOR GRANTING A LICENSE  TO  PRACTICE
 COSMETOLOGY.
   C.  INDIVIDUALS  NOT  RESIDING  IN A MEMBER STATE SHALL CONTINUE TO BE
 ABLE TO APPLY FOR A MEMBER  STATE'S  SINGLE-STATE  LICENSE  AS  PROVIDED
 UNDER  THE  LAWS OF EACH MEMBER STATE. HOWEVER, THE SINGLE-STATE LICENSE
 GRANTED TO THESE INDIVIDUALS SHALL  NOT  BE  RECOGNIZED  AS  GRANTING  A
 MULTISTATE LICENSE TO PROVIDE SERVICES IN ANY OTHER MEMBER STATE.
   D.  NOTHING  IN THIS COMPACT SHALL AFFECT THE REQUIREMENTS ESTABLISHED
 BY A MEMBER STATE FOR THE ISSUANCE OF A SINGLE-STATE LICENSE.
   E. A MULTISTATE LICENSE ISSUED TO A LICENSEE BY  A  HOME  STATE  TO  A
 RESIDENT  OF  THAT  STATE  SHALL  BE  RECOGNIZED BY EACH MEMBER STATE AS
 AUTHORIZING A LICENSEE TO PRACTICE COSMETOLOGY IN EACH MEMBER STATE.
   F. AT NO POINT SHALL THE COMMISSION  HAVE  THE  POWER  TO  DEFINE  THE
 EDUCATIONAL  OR  PROFESSIONAL  REQUIREMENTS  FOR  A  LICENSE TO PRACTICE
 COSMETOLOGY. THE MEMBER STATES SHALL RETAIN SOLE JURISDICTION  OVER  THE
 PROVISION OF THESE REQUIREMENTS.
 
                      ARTICLE 4 - MULTISTATE LICENSE
 
   A.  TO  BE  ELIGIBLE  TO  APPLY  TO THEIR HOME STATE'S STATE LICENSING
 AUTHORITY FOR AN INITIAL MULTISTATE LICENSE UNDER THIS COMPACT, A LICEN-
 SEE MUST HOLD AN ACTIVE AND UNENCUMBERED SINGLE-STATE LICENSE  TO  PRAC-
 TICE COSMETOLOGY IN THEIR HOME STATE.
   B.  UPON  THE  RECEIPT  OF  AN  APPLICATION  FOR A MULTISTATE LICENSE,
 ACCORDING TO THE RULES OF THE COMMISSION, A MEMBER STATE'S STATE LICENS-
 ING AUTHORITY SHALL ASCERTAIN WHETHER THE APPLICANT MEETS  THE  REQUIRE-
 MENTS FOR A MULTISTATE LICENSE UNDER THIS COMPACT.
   C.  IF  AN  APPLICANT  MEETS THE REQUIREMENTS FOR A MULTISTATE LICENSE
 UNDER THIS COMPACT AND ANY APPLICABLE RULES OF THE COMMISSION, THE STATE
 LICENSING AUTHORITY IN  RECEIPT  OF  THE  APPLICATION  SHALL,  WITHIN  A
 A. 8199                             5
 
 REASONABLE  TIME,  GRANT  A  MULTISTATE  LICENSE  TO THAT APPLICANT, AND
 INFORM ALL MEMBER STATES OF THE GRANT OF SAID MULTISTATE LICENSE.
   D.  A  MULTISTATE  LICENSE  TO PRACTICE COSMETOLOGY ISSUED BY A MEMBER
 STATE'S STATE LICENSING AUTHORITY SHALL BE  RECOGNIZED  BY  EACH  MEMBER
 STATE AS AUTHORIZING THE PRACTICE THEREOF AS THOUGH THAT LICENSEE HELD A
 SINGLE-STATE  LICENSE  TO  DO  SO  IN  EACH MEMBER STATE, SUBJECT TO THE
 RESTRICTIONS HEREIN.
   E. A MULTISTATE LICENSE GRANTED PURSUANT TO THIS COMPACT MAY BE EFFEC-
 TIVE FOR A DEFINITE  PERIOD  OF  TIME,  CONCURRENT  WITH  THE  LICENSURE
 RENEWAL PERIOD IN THE HOME STATE.
   F.  TO  MAINTAIN  A  MULTISTATE LICENSE UNDER THIS COMPACT, A LICENSEE
 MUST:
   1. AGREE TO ABIDE BY THE RULES OF THE STATE LICENSING  AUTHORITY,  AND
 THE  STATE SCOPE OF PRACTICE LAWS GOVERNING THE PRACTICE OF COSMETOLOGY,
 OF ANY MEMBER STATE IN WHICH THE LICENSEE PROVIDES SERVICES;
   2. PAY ALL REQUIRED FEES RELATED TO THE APPLICATION AND  PROCESS,  AND
 ANY OTHER FEES WHICH THE COMMISSION MAY BY RULE REQUIRE; AND
   3.  COMPLY  WITH  ANY  AND ALL OTHER REQUIREMENTS REGARDING MULTISTATE
 LICENSES WHICH THE COMMISSION MAY BY RULE PROVIDE.
   G. A LICENSEE PRACTICING IN A MEMBER STATE IS SUBJECT TO ALL SCOPE  OF
 PRACTICE LAWS GOVERNING COSMETOLOGY SERVICES IN THAT STATE.
   H.  THE  PRACTICE  OF  COSMETOLOGY  UNDER A MULTISTATE LICENSE GRANTED
 PURSUANT TO THIS COMPACT WILL SUBJECT THE LICENSEE TO  THE  JURISDICTION
 OF THE STATE LICENSING AUTHORITY, THE COURTS, AND THE LAWS OF THE MEMBER
 STATE IN WHICH THE COSMETOLOGY SERVICES ARE PROVIDED.
 
    ARTICLE 5 - REISSUANCE OF A MULTISTATE LICENSE BY A NEW HOME STATE
 
   A.  A  LICENSEE  MAY  HOLD  A MULTISTATE LICENSE, ISSUED BY THEIR HOME
 STATE, IN ONLY ONE MEMBER STATE AT ANY GIVEN TIME.   B.  IF  A  LICENSEE
 CHANGES THEIR HOME STATE BY MOVING BETWEEN TWO MEMBER STATES:
   1.  THE  LICENSEE  SHALL IMMEDIATELY APPLY FOR THE REISSUANCE OF THEIR
 MULTISTATE LICENSE IN THEIR NEW HOME STATE. THE LICENSEE SHALL  PAY  ALL
 APPLICABLE  FEES  AND NOTIFY THE PRIOR HOME STATE IN ACCORDANCE WITH THE
 RULES OF THE COMMISSION.
   2. UPON RECEIPT OF AN APPLICATION TO REISSUE A MULTISTATE LICENSE, THE
 NEW HOME STATE SHALL VERIFY THAT THE MULTISTATE LICENSE IS ACTIVE, UNEN-
 CUMBERED AND ELIGIBLE FOR REISSUANCE UNDER THE TERMS OF THE COMPACT  AND
 THE  RULES OF THE COMMISSION. THE MULTISTATE LICENSE ISSUED BY THE PRIOR
 HOME STATE WILL BE DEACTIVATED AND ALL MEMBER STATES NOTIFIED IN ACCORD-
 ANCE WITH THE APPLICABLE RULES ADOPTED BY THE COMMISSION.
   3. IF REQUIRED FOR INITIAL LICENSURE, THE NEW HOME STATE MAY REQUIRE A
 BACKGROUND CHECK AS SPECIFIED IN THE LAWS OF THAT STATE, OR THE  COMPLI-
 ANCE WITH ANY JURISPRUDENCE REQUIREMENTS OF THE NEW HOME STATE.
   4.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS COMPACT, IF A LICENSEE
 DOES NOT MEET THE REQUIREMENTS SET FORTH IN THIS COMPACT FOR THE REISSU-
 ANCE OF A MULTISTATE LICENSE BY THE NEW HOME STATE,  THEN  THE  LICENSEE
 SHALL  BE SUBJECT TO THE NEW HOME STATE REQUIREMENTS FOR THE ISSUANCE OF
 A SINGLE-STATE LICENSE IN THAT STATE.
   C. IF A LICENSEE CHANGES THEIR PRIMARY STATE OF  RESIDENCE  BY  MOVING
 FROM A MEMBER STATE TO A NON-MEMBER STATE, OR FROM A NON-MEMBER STATE TO
 A MEMBER STATE, THEN THE LICENSEE SHALL BE SUBJECT TO THE STATE REQUIRE-
 MENTS FOR THE ISSUANCE OF A SINGLE-STATE LICENSE IN THE NEW HOME STATE.
   D.  NOTHING  IN THIS COMPACT SHALL INTERFERE WITH A LICENSEE'S ABILITY
 TO HOLD A SINGLE-STATE LICENSE IN  MULTIPLE  STATES;  HOWEVER,  FOR  THE
 A. 8199                             6
 
 PURPOSES OF THIS COMPACT, A LICENSEE SHALL HAVE ONLY ONE HOME STATE, AND
 ONLY ONE MULTISTATE LICENSE.
   E.  NOTHING  IN  THIS  COMPACT  SHALL  INTERFERE WITH THE REQUIREMENTS
 ESTABLISHED BY A  MEMBER  STATE  FOR  THE  ISSUANCE  OF  A  SINGLE-STATE
 LICENSE.
 
     ARTICLE 6 - AUTHORITY OF THE COMPACT COMMISSION AND MEMBER STATE
                           LICENSING AUTHORITIES
 
   A.  NOTHING IN THIS COMPACT, NOR ANY RULE OR REGULATION OF THE COMMIS-
 SION, SHALL BE CONSTRUED TO LIMIT, RESTRICT, OR IN ANY  WAY  REDUCE  THE
 ABILITY  OF  A  MEMBER  STATE TO ENACT AND ENFORCE LAWS, REGULATIONS, OR
 OTHER RULES RELATED TO THE PRACTICE OF COSMETOLOGY IN THAT STATE,  WHERE
 THOSE  LAWS,  REGULATIONS,  OR OTHER RULES ARE NOT INCONSISTENT WITH THE
 PROVISIONS OF THIS COMPACT.
   B. INSOFAR AS PRACTICAL, A MEMBER STATE'S  STATE  LICENSING  AUTHORITY
 SHALL  COOPERATE  WITH  THE  COMMISSION  AND WITH EACH ENTITY EXERCISING
 INDEPENDENT  REGULATORY  AUTHORITY  OVER  THE  PRACTICE  OF  COSMETOLOGY
 ACCORDING TO THE PROVISIONS OF THIS COMPACT.
   C.  DISCIPLINE  SHALL BE THE SOLE RESPONSIBILITY OF THE STATE IN WHICH
 COSMETOLOGY SERVICES ARE  PROVIDED.  ACCORDINGLY,  EACH  MEMBER  STATE'S
 STATE  LICENSING AUTHORITY SHALL BE RESPONSIBLE FOR RECEIVING COMPLAINTS
 ABOUT INDIVIDUALS PRACTICING COSMETOLOGY IN THAT STATE, AND FOR COMMUNI-
 CATING ALL RELEVANT INVESTIGATIVE INFORMATION  ABOUT  ANY  SUCH  ADVERSE
 ACTION TO THE OTHER MEMBER STATES THROUGH THE DATA SYSTEM IN ADDITION TO
 ANY OTHER METHODS THE COMMISSION MAY BY RULE REQUIRE.

                        ARTICLE 7 - ADVERSE ACTIONS
 
   A.  A  LICENSEE'S  HOME  STATE SHALL HAVE EXCLUSIVE POWER TO IMPOSE AN
 ADVERSE ACTION AGAINST A LICENSEE'S MULTISTATE  LICENSE  ISSUED  BY  THE
 HOME STATE.
   B.  A HOME STATE MAY TAKE ADVERSE ACTION ON A MULTISTATE LICENSE BASED
 ON THE  INVESTIGATIVE  INFORMATION,  CURRENT  SIGNIFICANT  INVESTIGATIVE
 INFORMATION, OR ADVERSE ACTION OF A REMOTE STATE.
   C.  IN  ADDITION  TO  THE  POWERS  CONFERRED BY STATE LAW, EACH REMOTE
 STATE'S STATE LICENSING AUTHORITY SHALL HAVE THE POWER TO:
   1. TAKE ADVERSE ACTION AGAINST A LICENSEE'S AUTHORIZATION TO  PRACTICE
 COSMETOLOGY  THROUGH  THE  MULTISTATE  LICENSE  IN  THAT  MEMBER  STATE,
 PROVIDED THAT:
   A. ONLY THE LICENSEE'S HOME STATE SHALL HAVE THE POWER TO TAKE ADVERSE
 ACTION AGAINST THE MULTISTATE LICENSE ISSUED BY THE HOME STATE; AND
   B. FOR THE PURPOSES OF TAKING ADVERSE ACTION, THE HOME  STATE'S  STATE
 LICENSING  AUTHORITY SHALL GIVE THE SAME PRIORITY AND EFFECT TO REPORTED
 CONDUCT RECEIVED FROM A REMOTE STATE AS IT WOULD  IF  SUCH  CONDUCT  HAD
 OCCURRED  WITHIN THE HOME STATE. IN SO DOING, THE HOME STATE SHALL APPLY
 ITS OWN STATE LAWS TO DETERMINE THE APPROPRIATE ACTION.
   2. ISSUE CEASE AND  DESIST  ORDERS  OR  IMPOSE  AN  ENCUMBRANCE  ON  A
 LICENSEE'S AUTHORIZATION TO PRACTICE WITHIN THAT MEMBER STATE.
   3. COMPLETE ANY PENDING INVESTIGATIONS OF A LICENSEE WHO CHANGES THEIR
 PRIMARY  STATE  OF RESIDENCE DURING THE COURSE OF SUCH AN INVESTIGATION.
 THE STATE LICENSING AUTHORITY SHALL ALSO  BE  EMPOWERED  TO  REPORT  THE
 RESULTS  OF  SUCH  AN  INVESTIGATION  TO THE COMMISSION THROUGH THE DATA
 SYSTEM AS DESCRIBED HEREIN.
   4. ISSUE SUBPOENAS FOR BOTH HEARINGS AND INVESTIGATIONS  THAT  REQUIRE
 THE  ATTENDANCE AND TESTIMONY OF WITNESSES, AS WELL AS THE PRODUCTION OF
 A. 8199                             7
 
 EVIDENCE. SUBPOENAS ISSUED BY A STATE LICENSING AUTHORITY  IN  A  MEMBER
 STATE FOR THE ATTENDANCE AND TESTIMONY OF WITNESSES OR THE PRODUCTION OF
 EVIDENCE FROM ANOTHER MEMBER STATE SHALL BE ENFORCED IN THE LATTER STATE
 BY  ANY  COURT  OF COMPETENT JURISDICTION, ACCORDING TO THE PRACTICE AND
 PROCEDURE OF THAT COURT APPLICABLE TO SUBPOENAS  ISSUED  IN  PROCEEDINGS
 BEFORE  IT.  THE ISSUING STATE LICENSING AUTHORITY SHALL PAY ANY WITNESS
 FEES, TRAVEL EXPENSES, MILEAGE, AND OTHER FEES REQUIRED BY  THE  SERVICE
 STATUTES OF THE STATE IN WHICH THE WITNESSES OR EVIDENCE ARE LOCATED.
   5.  IF  OTHERWISE  PERMITTED  BY  STATE LAW, RECOVER FROM THE AFFECTED
 LICENSEE THE COSTS OF INVESTIGATIONS AND DISPOSITION OF CASES  RESULTING
 FROM ANY ADVERSE ACTION TAKEN AGAINST THAT LICENSEE.
   6.  TAKE  ADVERSE ACTION AGAINST THE LICENSEE'S AUTHORIZATION TO PRAC-
 TICE IN THAT STATE BASED ON  THE  FACTUAL  FINDINGS  OF  ANOTHER  REMOTE
 STATE.
   D. A LICENSEE'S HOME STATE SHALL COMPLETE ANY PENDING INVESTIGATION(S)
 OF  A  COSMETOLOGIST WHO CHANGES THEIR PRIMARY STATE OF RESIDENCE DURING
 THE COURSE OF THE INVESTIGATION(S). THE HOME STATE SHALL ALSO  HAVE  THE
 AUTHORITY  TO  TAKE  APPROPRIATE ACTION(S) AND SHALL PROMPTLY REPORT THE
 CONCLUSIONS OF THE INVESTIGATIONS TO THE DATA SYSTEM.
   E. IF AN  ADVERSE  ACTION  IS  TAKEN  BY  THE  HOME  STATE  AGAINST  A
 LICENSEE'S  MULTISTATE LICENSE, THE LICENSEE'S AUTHORIZATION TO PRACTICE
 IN ALL OTHER MEMBER STATES SHALL BE DEACTIVATED UNTIL  ALL  ENCUMBRANCES
 HAVE  BEEN REMOVED FROM THE HOME STATE LICENSE. ALL HOME STATE DISCIPLI-
 NARY ORDERS THAT IMPOSE AN ADVERSE ACTION AGAINST  A  LICENSEE'S  MULTI-
 STATE LICENSE SHALL INCLUDE A STATEMENT THAT THE COSMETOLOGIST'S AUTHOR-
 IZATION  TO  PRACTICE  IS  DEACTIVATED  IN  ALL MEMBER STATES DURING THE
 PENDENCY OF THE ORDER.
   F. NOTHING IN THIS COMPACT SHALL OVERRIDE A MEMBER  STATE'S  AUTHORITY
 TO  ACCEPT  A LICENSEE'S PARTICIPATION IN AN ALTERNATIVE PROGRAM IN LIEU
 OF ADVERSE ACTION. A LICENSEE'S MULTISTATE LICENSE  SHALL  BE  SUSPENDED
 FOR  THE  DURATION  OF  THE  LICENSEE'S PARTICIPATION IN ANY ALTERNATIVE
 PROGRAM.
   G. JOINT INVESTIGATIONS
   1. IN ADDITION TO THE AUTHORITY GRANTED  TO  A  MEMBER  STATE  BY  ITS
 RESPECTIVE  SCOPE  OF  PRACTICE  LAWS  OR  OTHER APPLICABLE STATE LAW, A
 MEMBER STATE MAY PARTICIPATE WITH OTHER MEMBER STATES IN JOINT  INVESTI-
 GATIONS OF LICENSEES.
   2. MEMBER STATES SHALL SHARE ANY INVESTIGATIVE, LITIGATION, OR COMPLI-
 ANCE  MATERIALS  IN FURTHERANCE OF ANY JOINT OR INDIVIDUAL INVESTIGATION
 INITIATED UNDER THE COMPACT.
 
           ARTICLE 8 - ACTIVE MILITARY MEMBERS AND THEIR SPOUSES
 
   ACTIVE MILITARY MEMBERS, OR THEIR  SPOUSES,  SHALL  DESIGNATE  A  HOME
 STATE WHERE THE INDIVIDUAL HAS A CURRENT LICENSE TO PRACTICE COSMETOLOGY
 IN GOOD STANDING. THE INDIVIDUAL MAY RETAIN THEIR HOME STATE DESIGNATION
 DURING  ANY PERIOD OF SERVICE WHEN THAT INDIVIDUAL OR THEIR SPOUSE IS ON
 ACTIVE DUTY ASSIGNMENT.
 
   ARTICLE 9 - ESTABLISHMENT AND OPERATION OF THE COSMETOLOGY LICENSURE
                            COMPACT COMMISSION

   A. THE COMPACT MEMBER STATES  HEREBY  CREATE  AND  ESTABLISH  A  JOINT
 GOVERNMENT  AGENCY  WHOSE  MEMBERSHIP CONSISTS OF ALL MEMBER STATES THAT
 HAVE ENACTED THE COMPACT KNOWN  AS  THE  COSMETOLOGY  LICENSURE  COMPACT
 COMMISSION.  THE  COMMISSION IS AN INSTRUMENTALITY OF THE COMPACT MEMBER
 A. 8199                             8
 
 STATES ACTING JOINTLY AND NOT AN INSTRUMENTALITY OF ANY ONE  STATE.  THE
 COMMISSION  SHALL  COME INTO EXISTENCE ON OR AFTER THE EFFECTIVE DATE OF
 THE COMPACT AS SET FORTH IN ARTICLE 13.
   B. MEMBERSHIP, VOTING, AND MEETINGS
   1.  EACH  MEMBER  STATE  SHALL HAVE AND BE LIMITED TO ONE (1) DELEGATE
 SELECTED BY THAT MEMBER STATE'S STATE LICENSING AUTHORITY.
   2. THE DELEGATE SHALL BE  AN  ADMINISTRATOR  OF  THE  STATE  LICENSING
 AUTHORITY OF THE MEMBER STATE OR THEIR DESIGNEE.
   3.  THE  COMMISSION  SHALL BY RULE OR BYLAW ESTABLISH A TERM OF OFFICE
 FOR DELEGATES AND MAY BY RULE OR BYLAW ESTABLISH TERM LIMITS.
   4. THE COMMISSION MAY RECOMMEND REMOVAL OR SUSPENSION OF ANY  DELEGATE
 FROM OFFICE.
   5.  A  MEMBER STATE'S STATE LICENSING AUTHORITY SHALL FILL ANY VACANCY
 OF ITS DELEGATE OCCURRING ON THE COMMISSION WITHIN 60 DAYS OF THE VACAN-
 CY.
   6. EACH DELEGATE SHALL BE ENTITLED TO ONE VOTE ON ALL MATTERS THAT ARE
 VOTED ON BY THE COMMISSION.
   7. THE COMMISSION SHALL MEET AT LEAST ONCE DURING EACH CALENDAR  YEAR.
 ADDITIONAL  MEETINGS MAY BE HELD AS SET FORTH IN THE BYLAWS. THE COMMIS-
 SION MAY MEET BY TELECOMMUNICATION, VIDEO CONFERENCE  OR  OTHER  SIMILAR
 ELECTRONIC MEANS.
   C. THE COMMISSION SHALL HAVE THE FOLLOWING POWERS:
   1. ESTABLISH THE FISCAL YEAR OF THE COMMISSION;
   2. ESTABLISH CODE OF CONDUCT AND CONFLICT OF INTEREST POLICIES;
   3. ADOPT RULES AND BYLAWS;
   4. MAINTAIN ITS FINANCIAL RECORDS IN ACCORDANCE WITH THE BYLAWS;
   5. MEET AND TAKE SUCH ACTIONS AS ARE CONSISTENT WITH THE PROVISIONS OF
 THIS COMPACT, THE COMMISSION'S RULES, AND THE BYLAWS;
   6.  INITIATE  AND CONCLUDE LEGAL PROCEEDINGS OR ACTIONS IN THE NAME OF
 THE COMMISSION, PROVIDED  THAT  THE  STANDING  OF  ANY  STATE  LICENSING
 AUTHORITY TO SUE OR BE SUED UNDER APPLICABLE LAW SHALL NOT BE AFFECTED;
   7.  MAINTAIN  AND CERTIFY RECORDS AND INFORMATION PROVIDED TO A MEMBER
 STATE AS THE AUTHENTICATED  BUSINESS  RECORDS  OF  THE  COMMISSION,  AND
 DESIGNATE AN AGENT TO DO SO ON THE COMMISSION'S BEHALF;
   8. PURCHASE AND MAINTAIN INSURANCE AND BONDS;
   9.  BORROW,  ACCEPT, OR CONTRACT FOR SERVICES OF PERSONNEL, INCLUDING,
 BUT NOT LIMITED TO, EMPLOYEES OF A MEMBER STATE;
   10. CONDUCT AN ANNUAL FINANCIAL REVIEW;
   11. HIRE EMPLOYEES,  ELECT  OR  APPOINT  OFFICERS,  FIX  COMPENSATION,
 DEFINE DUTIES, GRANT SUCH INDIVIDUALS APPROPRIATE AUTHORITY TO CARRY OUT
 THE  PURPOSES  OF  THE COMPACT, AND ESTABLISH THE COMMISSION'S PERSONNEL
 POLICIES AND PROGRAMS RELATING TO CONFLICTS OF INTEREST,  QUALIFICATIONS
 OF PERSONNEL, AND OTHER RELATED PERSONNEL MATTERS;
   12.  AS  SET FORTH IN THE COMMISSION RULES, CHARGE A FEE TO A LICENSEE
 FOR THE GRANT OF A MULTISTATE LICENSE AND THEREAFTER, AS MAY  BE  ESTAB-
 LISHED  BY  COMMISSION  RULE,  CHARGE  THE LICENSEE A MULTISTATE LICENSE
 RENEWAL FEE FOR EACH RENEWAL PERIOD. NOTHING HEREIN SHALL  BE  CONSTRUED
 TO  PREVENT A HOME STATE FROM CHARGING A LICENSEE A FEE FOR A MULTISTATE
 LICENSE OR RENEWALS OF A MULTISTATE LICENSE, OR A FEE FOR THE  JURISPRU-
 DENCE REQUIREMENT IF THE MEMBER STATE IMPOSES SUCH A REQUIREMENT FOR THE
 GRANT OF A MULTISTATE LICENSE;
   13. ASSESS AND COLLECT FEES;
   14.  ACCEPT ANY AND ALL APPROPRIATE GIFTS, DONATIONS, GRANTS OF MONEY,
 OTHER SOURCES OF REVENUE, EQUIPMENT, SUPPLIES, MATERIALS, AND  SERVICES,
 AND  RECEIVE,  UTILIZE,  AND  DISPOSE  OF THE SAME; PROVIDED THAT AT ALL
 A. 8199                             9
 
 TIMES THE COMMISSION  SHALL  AVOID  ANY  APPEARANCE  OF  IMPROPRIETY  OR
 CONFLICT OF INTEREST;
   15.  LEASE, PURCHASE, RETAIN, OWN, HOLD, IMPROVE, OR USE ANY PROPERTY,
 REAL, PERSONAL, OR MIXED, OR ANY UNDIVIDED INTEREST THEREIN;
   16. SELL, CONVEY,  MORTGAGE,  PLEDGE,  LEASE,  EXCHANGE,  ABANDON,  OR
 OTHERWISE DISPOSE OF ANY PROPERTY REAL, PERSONAL, OR MIXED;
   17. ESTABLISH A BUDGET AND MAKE EXPENDITURES;
   18. BORROW MONEY;
   19.  APPOINT  COMMITTEES,  INCLUDING  STANDING COMMITTEES, COMPOSED OF
 MEMBERS, STATE REGULATORS, STATE LEGISLATORS OR  THEIR  REPRESENTATIVES,
 AND  CONSUMER  REPRESENTATIVES, AND SUCH OTHER INTERESTED PERSONS AS MAY
 BE DESIGNATED IN THIS COMPACT AND THE BYLAWS;
   20. PROVIDE AND RECEIVE INFORMATION  FROM,  AND  COOPERATE  WITH,  LAW
 ENFORCEMENT AGENCIES;
   21.  ELECT A CHAIR, VICE CHAIR, SECRETARY AND TREASURER AND SUCH OTHER
 OFFICERS OF THE COMMISSION AS PROVIDED IN THE COMMISSION'S BYLAWS;
   22. ESTABLISH AND ELECT AN EXECUTIVE COMMITTEE, INCLUDING A CHAIR  AND
 A VICE CHAIR;
   23. ADOPT AND PROVIDE TO THE MEMBER STATES AN ANNUAL REPORT.
   24. DETERMINE WHETHER A STATE'S ADOPTED LANGUAGE IS MATERIALLY DIFFER-
 ENT FROM THE MODEL COMPACT LANGUAGE SUCH THAT THE STATE WOULD NOT QUALI-
 FY FOR PARTICIPATION IN THE COMPACT; AND
   25. PERFORM SUCH OTHER FUNCTIONS AS MAY BE NECESSARY OR APPROPRIATE TO
 ACHIEVE THE PURPOSES OF THIS COMPACT.
   D. THE EXECUTIVE COMMITTEE
   1.  THE  EXECUTIVE  COMMITTEE SHALL HAVE THE POWER TO ACT ON BEHALF OF
 THE COMMISSION ACCORDING TO THE  TERMS  OF  THIS  COMPACT.  THE  POWERS,
 DUTIES, AND RESPONSIBILITIES OF THE EXECUTIVE COMMITTEE SHALL INCLUDE:
   A.  OVERSEEING  THE DAY-TO-DAY ACTIVITIES OF THE ADMINISTRATION OF THE
 COMPACT INCLUDING COMPLIANCE WITH THE PROVISIONS  OF  THE  COMPACT,  THE
 COMMISSION'S  RULES  AND  BYLAWS, AND OTHER SUCH DUTIES AS DEEMED NECES-
 SARY;
   B. RECOMMENDING TO THE COMMISSION CHANGES  TO  THE  RULES  OR  BYLAWS,
 CHANGES  TO  THIS  COMPACT  LEGISLATION,  FEES CHARGED TO COMPACT MEMBER
 STATES, FEES CHARGED TO LICENSEES, AND OTHER FEES;
   C.  ENSURING  COMPACT  ADMINISTRATION   SERVICES   ARE   APPROPRIATELY
 PROVIDED, INCLUDING BY CONTRACT;
   D. PREPARING AND RECOMMENDING THE BUDGET;
   E. MAINTAINING FINANCIAL RECORDS ON BEHALF OF THE COMMISSION;
   F.  MONITORING  COMPACT  COMPLIANCE  OF  MEMBER  STATES  AND PROVIDING
 COMPLIANCE REPORTS TO THE COMMISSION;
   G. ESTABLISHING ADDITIONAL COMMITTEES AS NECESSARY;
   H. EXERCISING THE POWERS AND  DUTIES  OF  THE  COMMISSION  DURING  THE
 INTERIM  BETWEEN  COMMISSION  MEETINGS,  EXCEPT FOR ADOPTING OR AMENDING
 RULES, ADOPTING OR AMENDING BYLAWS, AND EXERCISING ANY OTHER POWERS  AND
 DUTIES EXPRESSLY RESERVED TO THE COMMISSION BY RULE OR BYLAW; AND
   I. OTHER DUTIES AS PROVIDED IN THE RULES OR BYLAWS OF THE COMMISSION.
   2.  THE  EXECUTIVE  COMMITTEE  SHALL BE COMPOSED OF UP TO SEVEN VOTING
 MEMBERS:
   A. THE CHAIR AND VICE CHAIR OF THE COMMISSION AND ANY OTHER MEMBERS OF
 THE COMMISSION WHO SERVE ON THE  EXECUTIVE  COMMITTEE  SHALL  BE  VOTING
 MEMBERS OF THE EXECUTIVE COMMITTEE; AND
   B.  OTHER  THAN  THE  CHAIR,  VICE-CHAIR, SECRETARY AND TREASURER, THE
 COMMISSION SHALL ELECT THREE VOTING MEMBERS FROM THE CURRENT  MEMBERSHIP
 OF THE COMMISSION.
 A. 8199                            10

   C.  THE  COMMISSION  MAY  ELECT  EX-OFFICIO,  NONVOTING MEMBERS FROM A
 RECOGNIZED NATIONAL COSMETOLOGY PROFESSIONAL ASSOCIATION AS APPROVED  BY
 THE COMMISSION. THE COMMISSION'S BYLAWS SHALL IDENTIFY QUALIFYING ORGAN-
 IZATIONS  AND  THE  MANNER OF APPOINTMENT IF THE NUMBER OF ORGANIZATIONS
 SEEKING  TO  APPOINT  AN EX OFFICIO MEMBER EXCEEDS THE NUMBER OF MEMBERS
 SPECIFIED IN THIS ARTICLE.
   3. THE COMMISSION MAY REMOVE ANY MEMBER OF THE EXECUTIVE COMMITTEE  AS
 PROVIDED IN THE COMMISSION'S BYLAWS.
   4. THE EXECUTIVE COMMITTEE SHALL MEET AT LEAST ANNUALLY.
   A.  ANNUAL  EXECUTIVE  COMMITTEE  MEETINGS,  AS  WELL AS ANY EXECUTIVE
 COMMITTEE MEETING AT WHICH IT DOES NOT TAKE OR  INTEND  TO  TAKE  FORMAL
 ACTION  ON  A  MATTER  FOR  WHICH  A  COMMISSION VOTE WOULD OTHERWISE BE
 REQUIRED, SHALL BE OPEN TO THE PUBLIC, EXCEPT THAT THE EXECUTIVE COMMIT-
 TEE MAY MEET IN A CLOSED, NON-PUBLIC SESSION OF A  PUBLIC  MEETING  WHEN
 DEALING WITH ANY OF THE MATTERS COVERED UNDER ARTICLE 9.F.4.
   B.  THE  EXECUTIVE  COMMITTEE  SHALL  GIVE  FIVE BUSINESS DAYS ADVANCE
 NOTICE OF ITS PUBLIC MEETINGS, POSTED ON ITS WEBSITE AND  AS  DETERMINED
 TO  PROVIDE NOTICE TO PERSONS WITH AN INTEREST IN THE PUBLIC MATTERS THE
 EXECUTIVE COMMITTEE INTENDS TO ADDRESS AT THOSE MEETINGS.
   5. THE EXECUTIVE COMMITTEE MAY HOLD AN EMERGENCY MEETING  WHEN  ACTING
 FOR THE COMMISSION TO:
   A. MEET AN IMMINENT THREAT TO PUBLIC HEALTH, SAFETY, OR WELFARE;
   B. PREVENT A LOSS OF COMMISSION OR MEMBER STATE FUNDS; OR
   C. PROTECT PUBLIC HEALTH AND SAFETY.
   E.  THE  COMMISSION  SHALL  ADOPT  AND PROVIDE TO THE MEMBER STATES AN
 ANNUAL REPORT.
   F. MEETINGS OF THE COMMISSION
   1. ALL MEETINGS OF THE COMMISSION THAT  ARE  NOT  CLOSED  PURSUANT  TO
 ARTICLE  9.F.4  SHALL  BE  OPEN TO THE PUBLIC. NOTICE OF PUBLIC MEETINGS
 SHALL BE POSTED ON THE COMMISSION'S WEBSITE AT LEAST  THIRTY  (30)  DAYS
 PRIOR TO THE PUBLIC MEETING.
   2.  NOTWITHSTANDING ARTICLE 9.F.1, THE COMMISSION MAY CONVENE AN EMER-
 GENCY PUBLIC MEETING BY PROVIDING AT LEAST TWENTY-FOUR (24) HOURS  PRIOR
 NOTICE  ON  THE COMMISSION'S WEBSITE, AND ANY OTHER MEANS AS PROVIDED IN
 THE COMMISSION'S RULES, FOR ANY OF THE  REASONS  IT  MAY  DISPENSE  WITH
 NOTICE OF PROPOSED RULEMAKING UNDER ARTICLE 11.L. THE COMMISSION'S LEGAL
 COUNSEL  SHALL  CERTIFY  THAT ONE OF THE REASONS JUSTIFYING AN EMERGENCY
 PUBLIC MEETING HAS BEEN MET.
   3. NOTICE OF ALL COMMISSION MEETINGS SHALL PROVIDE THE TIME, DATE, AND
 LOCATION OF THE MEETING, AND IF THE MEETING IS TO BE HELD OR  ACCESSIBLE
 VIA  TELECOMMUNICATION, VIDEO CONFERENCE, OR OTHER ELECTRONIC MEANS, THE
 NOTICE SHALL INCLUDE THE MECHANISM FOR ACCESS TO THE MEETING.
   4. THE COMMISSION MAY CONVENE IN A CLOSED, NON-PUBLIC MEETING FOR  THE
 COMMISSION TO DISCUSS:
   A.  NON-COMPLIANCE  OF  A  MEMBER STATE WITH ITS OBLIGATIONS UNDER THE
 COMPACT;
   B. THE EMPLOYMENT, COMPENSATION, DISCIPLINE OR  OTHER  MATTERS,  PRAC-
 TICES  OR  PROCEDURES  RELATED  TO  SPECIFIC  EMPLOYEES OR OTHER MATTERS
 RELATED TO THE COMMISSION'S INTERNAL PERSONNEL PRACTICES AND PROCEDURES;
   C. CURRENT OR THREATENED DISCIPLINE OF A LICENSEE BY THE COMMISSION OR
 BY A MEMBER STATE'S LICENSING AUTHORITY;
   D. CURRENT, THREATENED, OR REASONABLY ANTICIPATED LITIGATION;
   E. NEGOTIATION OF CONTRACTS FOR THE PURCHASE, LEASE, OR SALE OF GOODS,
 SERVICES, OR REAL ESTATE;
   F. ACCUSING ANY PERSON OF A CRIME OR FORMALLY CENSURING ANY PERSON;
 A. 8199                            11
 
   G. TRADE SECRETS OR COMMERCIAL OR FINANCIAL INFORMATION THAT IS PRIVI-
 LEGED OR CONFIDENTIAL;
   H.  INFORMATION OF A PERSONAL NATURE WHERE DISCLOSURE WOULD CONSTITUTE
 A CLEARLY UNWARRANTED INVASION OF PERSONAL PRIVACY;
   I. INVESTIGATIVE RECORDS COMPILED FOR LAW ENFORCEMENT PURPOSES;
   J. INFORMATION RELATED TO ANY INVESTIGATIVE REPORTS PREPARED BY OR  ON
 BEHALF  OF  OR FOR USE OF THE COMMISSION OR OTHER COMMITTEE CHARGED WITH
 RESPONSIBILITY OF INVESTIGATION OR DETERMINATION  OF  COMPLIANCE  ISSUES
 PURSUANT TO THE COMPACT;
   K. LEGAL ADVICE;
   L.  MATTERS  SPECIFICALLY  EXEMPTED  FROM  DISCLOSURE TO THE PUBLIC BY
 FEDERAL OR MEMBER STATE LAW; OR
   M. OTHER MATTERS AS PROMULGATED BY THE COMMISSION BY RULE.
   5. IF A MEETING, OR PORTION OF A MEETING,  IS  CLOSED,  THE  PRESIDING
 OFFICER  SHALL  STATE THAT THE MEETING WILL BE CLOSED AND REFERENCE EACH
 RELEVANT EXEMPTING PROVISION, AND SUCH REFERENCE SHALL  BE  RECORDED  IN
 THE MINUTES.
   6.  THE  COMMISSION SHALL KEEP MINUTES THAT FULLY AND CLEARLY DESCRIBE
 ALL MATTERS DISCUSSED IN A MEETING AND SHALL PROVIDE A FULL AND ACCURATE
 SUMMARY OF  ACTIONS  TAKEN,  AND  THE  REASONS  THEREFORE,  INCLUDING  A
 DESCRIPTION   OF  THE  VIEWS  EXPRESSED.  ALL  DOCUMENTS  CONSIDERED  IN
 CONNECTION WITH AN ACTION SHALL  BE  IDENTIFIED  IN  SUCH  MINUTES.  ALL
 MINUTES  AND  DOCUMENTS  OF  A  CLOSED  MEETING SHALL REMAIN UNDER SEAL,
 SUBJECT TO RELEASE ONLY BY A MAJORITY VOTE OF THE COMMISSION OR ORDER OF
 A COURT OF COMPETENT JURISDICTION.
   G. FINANCING OF THE COMMISSION
   1. THE COMMISSION SHALL PAY,  OR  PROVIDE  FOR  THE  PAYMENT  OF,  THE
 REASONABLE  EXPENSES  OF  ITS  ESTABLISHMENT,  ORGANIZATION, AND ONGOING
 ACTIVITIES.
   2. THE COMMISSION MAY ACCEPT ANY AND ALL APPROPRIATE SOURCES OF REVEN-
 UE, DONATIONS, AND GRANTS OF MONEY, EQUIPMENT, SUPPLIES, MATERIALS,  AND
 SERVICES.
   3.  THE  COMMISSION  MAY LEVY ON AND COLLECT AN ANNUAL ASSESSMENT FROM
 EACH MEMBER STATE AND IMPOSE FEES ON LICENSEES OF MEMBER STATES TO  WHOM
 IT  GRANTS  A MULTISTATE LICENSE TO COVER THE COST OF THE OPERATIONS AND
 ACTIVITIES OF THE COMMISSION AND ITS STAFF, WHICH MUST  BE  IN  A  TOTAL
 AMOUNT  SUFFICIENT  TO COVER ITS ANNUAL BUDGET AS APPROVED EACH YEAR FOR
 WHICH REVENUE IS NOT PROVIDED BY OTHER  SOURCES.  THE  AGGREGATE  ANNUAL
 ASSESSMENT  AMOUNT  FOR  MEMBER  STATES  SHALL BE ALLOCATED BASED UPON A
 FORMULA THAT THE COMMISSION SHALL PROMULGATE BY RULE.
   4. THE COMMISSION SHALL NOT INCUR OBLIGATIONS OF  ANY  KIND  PRIOR  TO
 SECURING  THE  FUNDS ADEQUATE TO MEET THE SAME; NOR SHALL THE COMMISSION
 PLEDGE THE CREDIT OF ANY MEMBER STATES, EXCEPT BY AND WITH THE AUTHORITY
 OF THE MEMBER STATE.
   5. THE COMMISSION SHALL KEEP ACCURATE ACCOUNTS  OF  ALL  RECEIPTS  AND
 DISBURSEMENTS. THE RECEIPTS AND DISBURSEMENTS OF THE COMMISSION SHALL BE
 SUBJECT  TO  THE  FINANCIAL REVIEW AND ACCOUNTING PROCEDURES ESTABLISHED
 UNDER ITS BYLAWS. ALL RECEIPTS AND DISBURSEMENTS OF FUNDS HANDLED BY THE
 COMMISSION SHALL BE SUBJECT TO AN ANNUAL FINANCIAL REVIEW BY A CERTIFIED
 OR LICENSED PUBLIC ACCOUNTANT, AND THE REPORT OF  THE  FINANCIAL  REVIEW
 SHALL BE INCLUDED IN AND BECOME PART OF THE ANNUAL REPORT OF THE COMMIS-
 SION.
   H. QUALIFIED IMMUNITY, DEFENSE, AND INDEMNIFICATION
   1.  THE MEMBERS, OFFICERS, EXECUTIVE DIRECTOR, EMPLOYEES AND REPRESEN-
 TATIVES OF THE COMMISSION SHALL BE IMMUNE FROM SUIT AND LIABILITY,  BOTH
 PERSONALLY  AND  IN THEIR OFFICIAL CAPACITY, FOR ANY CLAIM FOR DAMAGE TO
 A. 8199                            12
 
 OR LOSS OF PROPERTY OR PERSONAL INJURY OR OTHER CIVIL  LIABILITY  CAUSED
 BY  OR ARISING OUT OF ANY ACTUAL OR ALLEGED ACT, ERROR, OR OMISSION THAT
 OCCURRED, OR THAT THE PERSON AGAINST  WHOM  THE  CLAIM  IS  MADE  HAD  A
 REASONABLE  BASIS  FOR BELIEVING OCCURRED WITHIN THE SCOPE OF COMMISSION
 EMPLOYMENT, DUTIES OR RESPONSIBILITIES; PROVIDED THAT  NOTHING  IN  THIS
 PARAGRAPH  SHALL  BE  CONSTRUED  TO PROTECT ANY SUCH PERSON FROM SUIT OR
 LIABILITY FOR ANY DAMAGE, LOSS,  INJURY,  OR  LIABILITY  CAUSED  BY  THE
 INTENTIONAL OR WILLFUL OR WANTON MISCONDUCT OF THAT PERSON. THE PROCURE-
 MENT  OF  INSURANCE  OF  ANY TYPE BY THE COMMISSION SHALL NOT IN ANY WAY
 COMPROMISE OR LIMIT THE IMMUNITY GRANTED HEREUNDER.
   2. THE COMMISSION SHALL DEFEND ANY MEMBER, OFFICER,  EXECUTIVE  DIREC-
 TOR,  EMPLOYEE, AND REPRESENTATIVE OF THE COMMISSION IN ANY CIVIL ACTION
 SEEKING TO IMPOSE LIABILITY ARISING OUT OF ANY ACTUAL  OR  ALLEGED  ACT,
 ERROR,  OR OMISSION THAT OCCURRED WITHIN THE SCOPE OF COMMISSION EMPLOY-
 MENT, DUTIES, OR RESPONSIBILITIES, OR AS DETERMINED  BY  THE  COMMISSION
 THAT  THE  PERSON  AGAINST WHOM THE CLAIM IS MADE HAD A REASONABLE BASIS
 FOR BELIEVING  OCCURRED  WITHIN  THE  SCOPE  OF  COMMISSION  EMPLOYMENT,
 DUTIES,  OR  RESPONSIBILITIES;  PROVIDED  THAT  NOTHING  HEREIN SHALL BE
 CONSTRUED TO PROHIBIT THAT PERSON FROM RETAINING THEIR  OWN  COUNSEL  AT
 THEIR OWN EXPENSE; AND PROVIDED FURTHER, THAT THE ACTUAL OR ALLEGED ACT,
 ERROR,  OR  OMISSION  DID  NOT  RESULT FROM THAT PERSON'S INTENTIONAL OR
 WILLFUL OR WANTON MISCONDUCT.
   3. THE COMMISSION SHALL INDEMNIFY AND HOLD HARMLESS ANY MEMBER,  OFFI-
 CER,  EXECUTIVE DIRECTOR, EMPLOYEE, AND REPRESENTATIVE OF THE COMMISSION
 FOR THE AMOUNT OF ANY  SETTLEMENT  OR  JUDGMENT  OBTAINED  AGAINST  THAT
 PERSON ARISING OUT OF ANY ACTUAL OR ALLEGED ACT, ERROR, OR OMISSION THAT
 OCCURRED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT, DUTIES, OR RESPONSI-
 BILITIES,  OR  THAT  SUCH  PERSON  HAD  A REASONABLE BASIS FOR BELIEVING
 OCCURRED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT, DUTIES, OR RESPONSI-
 BILITIES, PROVIDED THAT THE ACTUAL OR ALLEGED ACT,  ERROR,  OR  OMISSION
 DID  NOT  RESULT FROM THE INTENTIONAL OR WILLFUL OR WANTON MISCONDUCT OF
 THAT PERSON.
   4. NOTHING HEREIN SHALL BE CONSTRUED AS A LIMITATION ON THE  LIABILITY
 OF  ANY LICENSEE FOR PROFESSIONAL MALPRACTICE OR MISCONDUCT, WHICH SHALL
 BE GOVERNED SOLELY BY ANY OTHER APPLICABLE STATE LAWS.
   5. NOTHING IN THIS COMPACT SHALL BE INTERPRETED TO WAIVE OR  OTHERWISE
 ABROGATE A MEMBER STATE'S STATE ACTION IMMUNITY OR STATE ACTION AFFIRMA-
 TIVE  DEFENSE  WITH  RESPECT  TO ANTITRUST CLAIMS UNDER THE SHERMAN ACT,
 CLAYTON ACT, OR ANY OTHER STATE OR FEDERAL ANTITRUST OR  ANTICOMPETITIVE
 LAW OR REGULATION.
   6. NOTHING IN THIS COMPACT SHALL BE CONSTRUED TO BE A WAIVER OF SOVER-
 EIGN IMMUNITY BY THE MEMBER STATES OR BY THE COMMISSION.
 
                         ARTICLE 10 - DATA SYSTEM
 
   A.  THE  COMMISSION  SHALL  PROVIDE  FOR THE DEVELOPMENT, MAINTENANCE,
 OPERATION, AND UTILIZATION  OF  A  COORDINATED  DATABASE  AND  REPORTING
 SYSTEM.
   B. THE COMMISSION SHALL ASSIGN EACH APPLICANT FOR A MULTISTATE LICENSE
 A UNIQUE IDENTIFIER, AS DETERMINED BY THE RULES OF THE COMMISSION.
   C. NOTWITHSTANDING ANY OTHER PROVISION OF STATE LAW TO THE CONTRARY, A
 MEMBER  STATE  SHALL SUBMIT A UNIFORM DATA SET TO THE DATA SYSTEM ON ALL
 INDIVIDUALS TO WHOM THIS COMPACT IS APPLICABLE AS REQUIRED BY THE  RULES
 OF THE COMMISSION, INCLUDING:
   1. IDENTIFYING INFORMATION;
   2. LICENSURE DATA;
 A. 8199                            13
 
   3. ADVERSE ACTIONS AGAINST A LICENSE AND INFORMATION RELATED THERETO;
   4. NON-CONFIDENTIAL INFORMATION RELATED TO ALTERNATIVE PROGRAM PARTIC-
 IPATION, THE BEGINNING AND ENDING DATES OF SUCH PARTICIPATION, AND OTHER
 INFORMATION RELATED TO SUCH PARTICIPATION;
   5. ANY DENIAL OF APPLICATION FOR LICENSURE, AND THE REASON(S) FOR SUCH
 DENIAL  (EXCLUDING THE REPORTING OF ANY CRIMINAL HISTORY RECORD INFORMA-
 TION WHERE PROHIBITED BY LAW);
   6. THE EXISTENCE OF INVESTIGATIVE INFORMATION;
   7. THE EXISTENCE OF CURRENT SIGNIFICANT INVESTIGATIVE INFORMATION; AND
   8. OTHER INFORMATION THAT MAY FACILITATE THE  ADMINISTRATION  OF  THIS
 COMPACT  OR  THE PROTECTION OF THE PUBLIC, AS DETERMINED BY THE RULES OF
 THE COMMISSION.
   D. THE RECORDS AND INFORMATION PROVIDED TO A MEMBER STATE PURSUANT  TO
 THIS  COMPACT  OR THROUGH THE DATA SYSTEM, WHEN CERTIFIED BY THE COMMIS-
 SION OR AN AGENT THEREOF, SHALL CONSTITUTE  THE  AUTHENTICATED  BUSINESS
 RECORDS OF THE COMMISSION, AND SHALL BE ENTITLED TO ANY ASSOCIATED HEAR-
 SAY EXCEPTION IN ANY RELEVANT JUDICIAL, QUASI-JUDICIAL OR ADMINISTRATIVE
 PROCEEDINGS IN A MEMBER STATE.
   E.  THE EXISTENCE OF CURRENT SIGNIFICANT INVESTIGATIVE INFORMATION AND
 THE EXISTENCE OF INVESTIGATIVE INFORMATION PERTAINING TO A  LICENSEE  IN
 ANY MEMBER STATE WILL ONLY BE AVAILABLE TO OTHER MEMBER STATES.
   F.  IT IS THE RESPONSIBILITY OF THE MEMBER STATES TO MONITOR THE DATA-
 BASE TO DETERMINE WHETHER ADVERSE ACTION HAS BEEN TAKEN AGAINST  SUCH  A
 LICENSEE  OR LICENSE APPLICANT. ADVERSE ACTION INFORMATION PERTAINING TO
 A LICENSEE OR LICENSE APPLICANT IN ANY MEMBER STATE WILL BE AVAILABLE TO
 ANY OTHER MEMBER STATE.
   G. MEMBER STATES CONTRIBUTING  INFORMATION  TO  THE  DATA  SYSTEM  MAY
 DESIGNATE INFORMATION THAT MAY NOT BE SHARED WITH THE PUBLIC WITHOUT THE
 EXPRESS PERMISSION OF THE CONTRIBUTING STATE.
   H.  ANY  INFORMATION SUBMITTED TO THE DATA SYSTEM THAT IS SUBSEQUENTLY
 EXPUNGED PURSUANT TO FEDERAL  LAW  OR  THE  LAWS  OF  THE  MEMBER  STATE
 CONTRIBUTING THE INFORMATION SHALL BE REMOVED FROM THE DATA SYSTEM.
 
                          ARTICLE 11 - RULEMAKING
 
   A. THE COMMISSION SHALL PROMULGATE REASONABLE RULES IN ORDER TO EFFEC-
 TIVELY  AND  EFFICIENTLY  IMPLEMENT  AND  ADMINISTER  THE  PURPOSES  AND
 PROVISIONS OF THE COMPACT. A RULE SHALL BE INVALID AND HAVE NO FORCE  OR
 EFFECT  ONLY IF A COURT OF COMPETENT JURISDICTION HOLDS THAT THE RULE IS
 INVALID BECAUSE THE COMMISSION EXERCISED ITS RULEMAKING AUTHORITY  IN  A
 MANNER  THAT  IS  BEYOND  THE  SCOPE AND PURPOSES OF THE COMPACT, OR THE
 POWERS GRANTED HEREUNDER, OR BASED UPON ANOTHER APPLICABLE  STANDARD  OF
 REVIEW.
   B.  THE  RULES  OF  THE COMMISSION SHALL HAVE THE FORCE OF LAW IN EACH
 MEMBER STATE, PROVIDED HOWEVER THAT WHERE THE RULES  OF  THE  COMMISSION
 CONFLICT  WITH  THE  LAWS  OF THE MEMBER STATE THAT ESTABLISH THE MEMBER
 STATE'S SCOPE OF PRACTICE LAWS GOVERNING THE PRACTICE OF COSMETOLOGY  AS
 HELD  BY  A COURT OF COMPETENT JURISDICTION, THE RULES OF THE COMMISSION
 SHALL BE INEFFECTIVE IN THAT STATE TO THE EXTENT OF THE CONFLICT.
   C. THE COMMISSION SHALL EXERCISE ITS RULEMAKING POWERS PURSUANT TO THE
 CRITERIA SET FORTH IN THIS ARTICLE AND  THE  RULES  ADOPTED  THEREUNDER.
 RULES  SHALL  BECOME  BINDING AS OF THE DATE SPECIFIED BY THE COMMISSION
 FOR EACH RULE.
   D. IF A MAJORITY OF THE LEGISLATURES OF THE MEMBER  STATES  REJECTS  A
 RULE  OR  PORTION  OF A RULE, BY ENACTMENT OF A STATUTE OR RESOLUTION IN
 THE SAME MANNER USED TO ADOPT THE COMPACT WITHIN FOUR (4) YEARS  OF  THE
 A. 8199                            14
 
 DATE OF ADOPTION OF THE RULE, THEN SUCH RULE SHALL HAVE NO FURTHER FORCE
 AND  EFFECT  IN ANY MEMBER STATE OR TO ANY STATE APPLYING TO PARTICIPATE
 IN THE COMPACT.
   E.  RULES  SHALL  BE  ADOPTED  AT  A REGULAR OR SPECIAL MEETING OF THE
 COMMISSION.
   F. PRIOR TO ADOPTION OF A PROPOSED RULE, THE COMMISSION SHALL  HOLD  A
 PUBLIC  HEARING  AND ALLOW PERSONS TO PROVIDE ORAL AND WRITTEN COMMENTS,
 DATA, FACTS, OPINIONS, AND ARGUMENTS.
   G. PRIOR TO ADOPTION OF A PROPOSED RULE  BY  THE  COMMISSION,  AND  AT
 LEAST THIRTY (30) DAYS IN ADVANCE OF THE MEETING AT WHICH THE COMMISSION
 WILL  HOLD  A  PUBLIC HEARING ON THE PROPOSED RULE, THE COMMISSION SHALL
 PROVIDE A NOTICE OF PROPOSED RULEMAKING:
   1. ON THE WEBSITE OF THE COMMISSION OR OTHER PUBLICLY ACCESSIBLE PLAT-
 FORM;
   2. TO PERSONS WHO HAVE REQUESTED NOTICE OF THE COMMISSION'S NOTICES OF
 PROPOSED RULEMAKING; AND
   3. IN SUCH OTHER WAY(S) AS THE COMMISSION MAY BY RULE SPECIFY.
   H. THE NOTICE OF PROPOSED RULEMAKING SHALL INCLUDE:
   1. THE TIME, DATE, AND LOCATION OF THE PUBLIC  HEARING  AT  WHICH  THE
 COMMISSION  WILL  HEAR  PUBLIC  COMMENTS  ON  THE  PROPOSED RULE AND, IF
 DIFFERENT, THE TIME, DATE, AND LOCATION OF THE MEETING WHERE THE COMMIS-
 SION WILL CONSIDER AND VOTE ON THE PROPOSED RULE;
   2. IF THE HEARING IS HELD VIA TELECOMMUNICATION, VIDEO CONFERENCE,  OR
 OTHER  ELECTRONIC  MEANS, THE COMMISSION SHALL INCLUDE THE MECHANISM FOR
 ACCESS TO THE HEARING IN THE NOTICE OF PROPOSED RULEMAKING;
   3. THE TEXT OF THE PROPOSED RULE AND THE REASON THEREFOR;
   4. A REQUEST FOR COMMENTS ON THE PROPOSED  RULE  FROM  ANY  INTERESTED
 PERSON; AND
   5. THE MANNER IN WHICH INTERESTED PERSONS MAY SUBMIT WRITTEN COMMENTS.
   I.  ALL  HEARINGS  WILL  BE  RECORDED. A COPY OF THE RECORDING AND ALL
 WRITTEN COMMENTS AND DOCUMENTS RECEIVED BY THE COMMISSION IN RESPONSE TO
 THE PROPOSED RULE SHALL BE AVAILABLE TO THE PUBLIC.
   J. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED AS REQUIRING A  SEPARATE
 HEARING  ON  EACH  RULE. RULES MAY BE GROUPED FOR THE CONVENIENCE OF THE
 COMMISSION AT HEARINGS REQUIRED BY THIS ARTICLE.
   K. THE COMMISSION SHALL, BY MAJORITY VOTE OF ALL MEMBERS,  TAKE  FINAL
 ACTION  ON THE PROPOSED RULE BASED ON THE RULEMAKING RECORD AND THE FULL
 TEXT OF THE RULE.
   1. THE COMMISSION MAY ADOPT CHANGES TO THE PROPOSED RULE PROVIDED  THE
 CHANGES DO NOT ENLARGE THE ORIGINAL PURPOSE OF THE PROPOSED RULE.
   2.  THE  COMMISSION  SHALL  PROVIDE  AN EXPLANATION OF THE REASONS FOR
 SUBSTANTIVE CHANGES MADE TO THE PROPOSED RULE AS  WELL  AS  REASONS  FOR
 SUBSTANTIVE CHANGES NOT MADE THAT WERE RECOMMENDED BY COMMENTERS.
   3.  THE COMMISSION SHALL DETERMINE A REASONABLE EFFECTIVE DATE FOR THE
 RULE. EXCEPT FOR AN EMERGENCY AS PROVIDED IN ARTICLE 11.L, THE EFFECTIVE
 DATE OF THE RULE SHALL BE NO SOONER THAN FORTY-FIVE (45) DAYS AFTER  THE
 COMMISSION ISSUING THE NOTICE THAT IT ADOPTED OR AMENDED THE RULE.
   L.  UPON  DETERMINATION  THAT  AN EMERGENCY EXISTS, THE COMMISSION MAY
 CONSIDER AND ADOPT AN EMERGENCY RULE WITH FIVE (5)  DAYS'  NOTICE,  WITH
 OPPORTUNITY  TO  COMMENT,  PROVIDED THAT THE USUAL RULEMAKING PROCEDURES
 PROVIDED IN THE COMPACT AND  IN  THIS  ARTICLE  SHALL  BE  RETROACTIVELY
 APPLIED  TO  THE  RULE AS SOON AS REASONABLY POSSIBLE, IN NO EVENT LATER
 THAN NINETY (90) DAYS AFTER THE EFFECTIVE DATE  OF  THE  RULE.  FOR  THE
 PURPOSES  OF  THIS  PROVISION,  AN  EMERGENCY  RULE  IS ONE THAT MUST BE
 ADOPTED IMMEDIATELY TO:
   1. MEET AN IMMINENT THREAT TO PUBLIC HEALTH, SAFETY, OR WELFARE;
 A. 8199                            15
 
   2. PREVENT A LOSS OF COMMISSION OR MEMBER STATE FUNDS;
   3.  MEET A DEADLINE FOR THE PROMULGATION OF A RULE THAT IS ESTABLISHED
 BY FEDERAL LAW OR RULE; OR
   4. PROTECT PUBLIC HEALTH AND SAFETY.
   M. THE COMMISSION OR AN AUTHORIZED COMMITTEE  OF  THE  COMMISSION  MAY
 DIRECT REVISIONS TO A PREVIOUSLY ADOPTED RULE FOR PURPOSES OF CORRECTING
 TYPOGRAPHICAL  ERRORS, ERRORS IN FORMAT, ERRORS IN CONSISTENCY, OR GRAM-
 MATICAL ERRORS. PUBLIC NOTICE OF ANY REVISIONS SHALL BE  POSTED  ON  THE
 WEBSITE OF THE COMMISSION. THE REVISION SHALL BE SUBJECT TO CHALLENGE BY
 ANY  PERSON FOR A PERIOD OF THIRTY (30) DAYS AFTER POSTING. THE REVISION
 MAY BE CHALLENGED ONLY ON GROUNDS THAT THE REVISION RESULTS IN A MATERI-
 AL CHANGE TO A RULE. A CHALLENGE SHALL BE MADE IN WRITING AND  DELIVERED
 TO THE COMMISSION PRIOR TO THE END OF THE NOTICE PERIOD. IF NO CHALLENGE
 IS  MADE,  THE  REVISION WILL TAKE EFFECT WITHOUT FURTHER ACTION. IF THE
 REVISION IS CHALLENGED, THE REVISION MAY NOT  TAKE  EFFECT  WITHOUT  THE
 APPROVAL OF THE COMMISSION.
   N.  NO  MEMBER  STATE'S RULEMAKING REQUIREMENTS SHALL APPLY UNDER THIS
 COMPACT.
 
        ARTICLE 12 - OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT
 
   A. OVERSIGHT
   1. THE EXECUTIVE AND JUDICIAL BRANCHES OF  STATE  GOVERNMENT  IN  EACH
 MEMBER  STATE  SHALL ENFORCE THIS COMPACT AND TAKE ALL ACTIONS NECESSARY
 AND APPROPRIATE TO IMPLEMENT THE COMPACT.
   2. VENUE IS PROPER AND JUDICIAL PROCEEDINGS BY OR AGAINST THE  COMMIS-
 SION  SHALL  BE  BROUGHT  SOLELY AND EXCLUSIVELY IN A COURT OF COMPETENT
 JURISDICTION WHERE THE PRINCIPAL OFFICE OF THE  COMMISSION  IS  LOCATED.
 THE COMMISSION MAY WAIVE VENUE AND JURISDICTIONAL DEFENSES TO THE EXTENT
 IT  ADOPTS  OR CONSENTS TO PARTICIPATE IN ALTERNATIVE DISPUTE RESOLUTION
 PROCEEDINGS. NOTHING HEREIN SHALL  AFFECT  OR  LIMIT  THE  SELECTION  OR
 PROPRIETY  OF  VENUE  IN  ANY ACTION AGAINST A LICENSEE FOR PROFESSIONAL
 MALPRACTICE, MISCONDUCT OR ANY SUCH SIMILAR MATTER.
   3. THE COMMISSION SHALL BE ENTITLED TO RECEIVE SERVICE OF  PROCESS  IN
 ANY  PROCEEDING  REGARDING  THE  ENFORCEMENT  OR  INTERPRETATION  OF THE
 COMPACT AND SHALL HAVE STANDING TO INTERVENE IN SUCH  A  PROCEEDING  FOR
 ALL  PURPOSES.    FAILURE  TO  PROVIDE THE COMMISSION SERVICE OF PROCESS
 SHALL RENDER A JUDGMENT  OR  ORDER  VOID  AS  TO  THE  COMMISSION,  THIS
 COMPACT, OR PROMULGATED RULES.
   B. DEFAULT, TECHNICAL ASSISTANCE, AND TERMINATION
   1.  IF  THE COMMISSION DETERMINES THAT A MEMBER STATE HAS DEFAULTED IN
 THE PERFORMANCE  OF  ITS  OBLIGATIONS  OR  RESPONSIBILITIES  UNDER  THIS
 COMPACT  OR  THE PROMULGATED RULES, THE COMMISSION SHALL PROVIDE WRITTEN
 NOTICE TO THE DEFAULTING STATE. THE NOTICE OF DEFAULT SHALL DESCRIBE THE
 DEFAULT, THE PROPOSED MEANS OF CURING THE DEFAULT, AND ANY OTHER  ACTION
 THAT  THE  COMMISSION  MAY  TAKE,  AND SHALL OFFER TRAINING AND SPECIFIC
 TECHNICAL ASSISTANCE REGARDING THE DEFAULT.
   2. THE COMMISSION SHALL PROVIDE A COPY OF THE NOTICE OF DEFAULT TO THE
 OTHER MEMBER STATES.
   3. IF A STATE IN DEFAULT FAILS TO CURE  THE  DEFAULT,  THE  DEFAULTING
 STATE  MAY  BE TERMINATED FROM THE COMPACT UPON AN AFFIRMATIVE VOTE OF A
 MAJORITY OF THE DELEGATES OF THE MEMBER STATES, AND ALL  RIGHTS,  PRIVI-
 LEGES AND BENEFITS CONFERRED ON THAT STATE BY THIS COMPACT MAY BE TERMI-
 NATED  ON  THE EFFECTIVE DATE OF TERMINATION. A CURE OF THE DEFAULT DOES
 NOT RELIEVE THE OFFENDING STATE OF OBLIGATIONS OR  LIABILITIES  INCURRED
 DURING THE PERIOD OF DEFAULT.
 A. 8199                            16
 
   4.  TERMINATION  OF  MEMBERSHIP  IN  THE COMPACT SHALL BE IMPOSED ONLY
 AFTER ALL OTHER MEANS OF SECURING COMPLIANCE HAVE BEEN EXHAUSTED. NOTICE
 OF INTENT TO SUSPEND OR TERMINATE SHALL BE GIVEN BY  THE  COMMISSION  TO
 THE  GOVERNOR,  THE  MAJORITY  AND  MINORITY  LEADERS  OF THE DEFAULTING
 STATE'S  LEGISLATURE,  THE  DEFAULTING STATE'S STATE LICENSING AUTHORITY
 AND EACH OF THE MEMBER STATES' STATE LICENSING AUTHORITY.
   5. A STATE THAT HAS BEEN TERMINATED IS  RESPONSIBLE  FOR  ALL  ASSESS-
 MENTS,  OBLIGATIONS, AND LIABILITIES INCURRED THROUGH THE EFFECTIVE DATE
 OF TERMINATION, INCLUDING OBLIGATIONS THAT EXTEND BEYOND  THE  EFFECTIVE
 DATE OF TERMINATION.
   6.  UPON  THE  TERMINATION  OF A STATE'S MEMBERSHIP FROM THIS COMPACT,
 THAT STATE SHALL IMMEDIATELY PROVIDE NOTICE TO ALL LICENSEES WHO HOLD  A
 MULTISTATE LICENSE WITHIN THAT STATE OF SUCH TERMINATION. THE TERMINATED
 STATE  SHALL CONTINUE TO RECOGNIZE ALL LICENSES GRANTED PURSUANT TO THIS
 COMPACT FOR A MINIMUM OF ONE HUNDRED EIGHTY (180) DAYS AFTER THE DATE OF
 SAID NOTICE OF TERMINATION.
   7. THE COMMISSION SHALL NOT BEAR ANY COSTS RELATED TO A STATE THAT  IS
 FOUND  TO  BE  IN  DEFAULT OR THAT HAS BEEN TERMINATED FROM THE COMPACT,
 UNLESS AGREED UPON IN WRITING BETWEEN THE COMMISSION AND THE  DEFAULTING
 STATE.
   8.  THE  DEFAULTING  STATE  MAY APPEAL THE ACTION OF THE COMMISSION BY
 PETITIONING THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF  COLUM-
 BIA  OR  THE  FEDERAL  DISTRICT  WHERE  THE COMMISSION HAS ITS PRINCIPAL
 OFFICES.  THE PREVAILING PARTY SHALL BE AWARDED ALL COSTS OF SUCH  LITI-
 GATION, INCLUDING REASONABLE ATTORNEY'S FEES.
   C. DISPUTE RESOLUTION
   1.  UPON  REQUEST  BY  A MEMBER STATE, THE COMMISSION SHALL ATTEMPT TO
 RESOLVE DISPUTES RELATED TO THE COMPACT THAT ARISE AMONG  MEMBER  STATES
 AND BETWEEN MEMBER AND NON-MEMBER STATES.
   2. THE COMMISSION SHALL PROMULGATE A RULE PROVIDING FOR BOTH MEDIATION
 AND BINDING DISPUTE RESOLUTION FOR DISPUTES AS APPROPRIATE.
   D. ENFORCEMENT
   1. THE COMMISSION, IN THE REASONABLE EXERCISE OF ITS DISCRETION, SHALL
 ENFORCE THE PROVISIONS OF THIS COMPACT AND THE COMMISSION'S RULES.
   2. BY MAJORITY VOTE AS PROVIDED BY COMMISSION RULE, THE COMMISSION MAY
 INITIATE  LEGAL  ACTION  AGAINST A MEMBER STATE IN DEFAULT IN THE UNITED
 STATES DISTRICT COURT FOR  THE  DISTRICT  OF  COLUMBIA  OR  THE  FEDERAL
 DISTRICT  WHERE  THE  COMMISSION  HAS  ITS  PRINCIPAL OFFICES TO ENFORCE
 COMPLIANCE WITH THE PROVISIONS OF THE COMPACT AND ITS PROMULGATED RULES.
 THE RELIEF SOUGHT MAY INCLUDE BOTH INJUNCTIVE RELIEF AND DAMAGES. IN THE
 EVENT JUDICIAL ENFORCEMENT IS NECESSARY, THE PREVAILING PARTY  SHALL  BE
 AWARDED  ALL  COSTS  OF SUCH LITIGATION, INCLUDING REASONABLE ATTORNEY'S
 FEES. THE REMEDIES HEREIN SHALL NOT BE THE  EXCLUSIVE  REMEDIES  OF  THE
 COMMISSION. THE COMMISSION MAY PURSUE ANY OTHER REMEDIES AVAILABLE UNDER
 FEDERAL OR THE DEFAULTING MEMBER STATE'S LAW.
   3.  A MEMBER STATE MAY INITIATE LEGAL ACTION AGAINST THE COMMISSION IN
 THE UNITED STATES DISTRICT COURT FOR THE DISTRICT  OF  COLUMBIA  OR  THE
 FEDERAL  DISTRICT  WHERE  THE  COMMISSION  HAS  ITS PRINCIPAL OFFICES TO
 ENFORCE COMPLIANCE WITH THE PROVISIONS OF THE COMPACT AND ITS PROMULGAT-
 ED RULES.   THE RELIEF SOUGHT MAY INCLUDE  BOTH  INJUNCTIVE  RELIEF  AND
 DAMAGES.  IN THE EVENT JUDICIAL ENFORCEMENT IS NECESSARY, THE PREVAILING
 PARTY SHALL BE AWARDED ALL COSTS OF SUCH LITIGATION,  INCLUDING  REASON-
 ABLE ATTORNEY'S FEES.
   4.  NO INDIVIDUAL OR ENTITY OTHER THAN A MEMBER STATE MAY ENFORCE THIS
 COMPACT AGAINST THE COMMISSION.
 A. 8199                            17
 
          ARTICLE 13 - EFFECTIVE DATE, WITHDRAWAL, AND AMENDMENT
 
   A. THE COMPACT SHALL COME INTO EFFECT ON THE DATE ON WHICH THE COMPACT
 STATUTE IS ENACTED INTO LAW IN THE SEVENTH MEMBER STATE.
   1. ON OR AFTER THE EFFECTIVE DATE OF THE COMPACT, THE COMMISSION SHALL
 CONVENE AND REVIEW THE ENACTMENT OF EACH OF THE CHARTER MEMBER STATES TO
 DETERMINE  IF  THE  STATUTE ENACTED BY EACH SUCH CHARTER MEMBER STATE IS
 MATERIALLY DIFFERENT THAN THE MODEL COMPACT STATUTE.
   A. A CHARTER MEMBER STATE WHOSE ENACTMENT IS FOUND  TO  BE  MATERIALLY
 DIFFERENT  FROM  THE  MODEL  COMPACT  STATUTE  SHALL  BE ENTITLED TO THE
 DEFAULT PROCESS SET FORTH IN ARTICLE 12.
   B. IF ANY MEMBER STATE IS LATER FOUND TO BE IN DEFAULT, OR  IS  TERMI-
 NATED  OR  WITHDRAWS  FROM  THE  COMPACT, THE COMMISSION SHALL REMAIN IN
 EXISTENCE AND THE COMPACT SHALL REMAIN IN EFFECT EVEN IF THE  NUMBER  OF
 MEMBER STATES SHOULD BE LESS THAN SEVEN (7).
   2. MEMBER STATES ENACTING THE COMPACT SUBSEQUENT TO THE CHARTER MEMBER
 STATES  SHALL  BE  SUBJECT TO THE PROCESS SET FORTH IN ARTICLE 9.C.24 TO
 DETERMINE IF THEIR ENACTMENTS ARE MATERIALLY DIFFERENT  FROM  THE  MODEL
 COMPACT  STATUTE  AND  WHETHER  THEY  QUALIFY  FOR  PARTICIPATION IN THE
 COMPACT.
   3. ALL ACTIONS TAKEN FOR THE BENEFIT OF THE COMMISSION OR IN  FURTHER-
 ANCE  OF  THE PURPOSES OF THE ADMINISTRATION OF THE COMPACT PRIOR TO THE
 EFFECTIVE DATE OF THE COMPACT OR THE COMMISSION  COMING  INTO  EXISTENCE
 SHALL  BE CONSIDERED TO BE ACTIONS OF THE COMMISSION UNLESS SPECIFICALLY
 REPUDIATED BY THE COMMISSION.
   4. ANY STATE THAT JOINS THE COMPACT SHALL BE SUBJECT  TO  THE  COMMIS-
 SION'S  RULES  AND BYLAWS AS THEY EXIST ON THE DATE ON WHICH THE COMPACT
 BECOMES LAW IN THAT STATE.  ANY RULE THAT HAS BEEN PREVIOUSLY ADOPTED BY
 THE COMMISSION SHALL HAVE THE FULL FORCE AND EFFECT OF LAW  ON  THE  DAY
 THE COMPACT BECOMES LAW IN THAT STATE.
   B. ANY MEMBER STATE MAY WITHDRAW FROM THIS COMPACT BY ENACTING A STAT-
 UTE REPEALING THAT STATE'S ENACTMENT OF THE COMPACT.
   1. A MEMBER STATE'S WITHDRAWAL SHALL NOT TAKE EFFECT UNTIL ONE HUNDRED
 EIGHTY (180) DAYS AFTER ENACTMENT OF THE REPEALING STATUTE.
   2. WITHDRAWAL SHALL NOT AFFECT THE CONTINUING REQUIREMENT OF THE WITH-
 DRAWING  STATE'S  STATE  LICENSING AUTHORITY TO COMPLY WITH THE INVESTI-
 GATIVE AND ADVERSE ACTION REPORTING REQUIREMENTS OF THIS  COMPACT  PRIOR
 TO THE EFFECTIVE DATE OF WITHDRAWAL.
   3.  UPON  THE  ENACTMENT OF A STATUTE WITHDRAWING FROM THIS COMPACT, A
 STATE SHALL IMMEDIATELY PROVIDE NOTICE OF SUCH WITHDRAWAL TO ALL  LICEN-
 SEES  WITHIN THAT STATE. NOTWITHSTANDING ANY SUBSEQUENT STATUTORY ENACT-
 MENT TO THE CONTRARY, SUCH WITHDRAWING STATE SHALL CONTINUE TO RECOGNIZE
 ALL LICENSES GRANTED PURSUANT TO THIS  COMPACT  FOR  A  MINIMUM  OF  ONE
 HUNDRED EIGHTY (180) DAYS AFTER THE DATE OF SUCH NOTICE OF WITHDRAWAL.
   C.  NOTHING CONTAINED IN THIS COMPACT SHALL BE CONSTRUED TO INVALIDATE
 OR PREVENT ANY LICENSURE  AGREEMENT  OR  OTHER  COOPERATIVE  ARRANGEMENT
 BETWEEN  A  MEMBER  STATE  AND A NON-MEMBER STATE THAT DOES NOT CONFLICT
 WITH THE PROVISIONS OF THIS COMPACT.
   D. THIS COMPACT MAY BE AMENDED BY THE MEMBER STATES. NO  AMENDMENT  TO
 THIS  COMPACT  SHALL  BECOME EFFECTIVE AND BINDING UPON ANY MEMBER STATE
 UNTIL IT IS ENACTED INTO THE LAWS OF ALL MEMBER STATES.
 
                ARTICLE 14 - CONSTRUCTION AND SEVERABILITY
 
   A. THIS COMPACT AND THE COMMISSION'S  RULEMAKING  AUTHORITY  SHALL  BE
 LIBERALLY  CONSTRUED SO AS TO EFFECTUATE THE PURPOSES, AND THE IMPLEMEN-
 A. 8199                            18
 
 TATION AND ADMINISTRATION OF THE  COMPACT.  PROVISIONS  OF  THE  COMPACT
 EXPRESSLY  AUTHORIZING  OR REQUIRING THE PROMULGATION OF RULES SHALL NOT
 BE CONSTRUED TO LIMIT THE COMMISSION'S RULEMAKING AUTHORITY  SOLELY  FOR
 THOSE PURPOSES.
   B.  THE  PROVISIONS  OF  THIS  COMPACT  SHALL  BE SEVERABLE AND IF ANY
 PHRASE, CLAUSE, SENTENCE OR PROVISION OF THIS COMPACT IS HELD BY A COURT
 OF COMPETENT JURISDICTION TO BE CONTRARY  TO  THE  CONSTITUTION  OF  ANY
 MEMBER  STATE,  A  STATE SEEKING PARTICIPATION IN THE COMPACT, OR OF THE
 UNITED STATES, OR THE APPLICABILITY THEREOF TO ANY  GOVERNMENT,  AGENCY,
 PERSON  OR  CIRCUMSTANCE  IS  HELD  TO BE UNCONSTITUTIONAL BY A COURT OF
 COMPETENT JURISDICTION, THE VALIDITY OF THE REMAINDER  OF  THIS  COMPACT
 AND THE APPLICABILITY THEREOF TO ANY OTHER GOVERNMENT, AGENCY, PERSON OR
 CIRCUMSTANCE SHALL NOT BE AFFECTED THEREBY.
   C.  NOTWITHSTANDING  ARTICLE  14.B,  THE COMMISSION MAY DENY A STATE'S
 PARTICIPATION IN THE COMPACT OR, IN ACCORDANCE WITH THE REQUIREMENTS  OF
 ARTICLE  12, TERMINATE A MEMBER STATE'S PARTICIPATION IN THE COMPACT, IF
 IT DETERMINES THAT A CONSTITUTIONAL REQUIREMENT OF A MEMBER STATE  IS  A
 MATERIAL DEPARTURE FROM THE COMPACT. OTHERWISE, IF THIS COMPACT SHALL BE
 HELD TO BE CONTRARY TO THE CONSTITUTION OF ANY MEMBER STATE, THE COMPACT
 SHALL  REMAIN IN FULL FORCE AND EFFECT AS TO THE REMAINING MEMBER STATES
 AND IN FULL FORCE AND EFFECT AS TO THE MEMBER STATE AFFECTED AS  TO  ALL
 SEVERABLE MATTERS.
 
     ARTICLE 15 - CONSISTENT EFFECT AND CONFLICT WITH OTHER STATE LAWS
 
   A.  NOTHING  HEREIN  SHALL  PREVENT  OR INHIBIT THE ENFORCEMENT OF ANY
 OTHER LAW OF A MEMBER STATE THAT IS NOT INCONSISTENT WITH THE COMPACT.
   B. ANY LAWS, STATUTES, REGULATIONS, OR OTHER LEGAL REQUIREMENTS  IN  A
 MEMBER  STATE  IN  CONFLICT  845  WITH THE COMPACT ARE SUPERSEDED TO THE
 EXTENT OF THE CONFLICT.
   C. ALL PERMISSIBLE AGREEMENTS BETWEEN THE COMMISSION  AND  THE  MEMBER
 STATES ARE BINDING IN ACCORDANCE WITH THEIR TERMS.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section,  or  part  of this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph, subdivision,  section,
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 3. This act shall take effect immediately; provided,  however,  that
 section  one  of this act shall take effect as specifically set forth in
 such section.