HOUSE BILL REPORT

2SHB 1366

BYHouse Committee on Appropriations (originally sponsored by Representatives Haugen, Cole, Vekich, Leonard and Scott)

Modifying the regulation of cosmetologists.

House Committe on Commerce & Labor

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (9)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Jones, R. King, Leonard, O'Brien, Prentice, Smith and Walker.

Minority Report:  Do not pass.  (2)

      Signed by Representatives Patrick, Ranking Republican Member and Wolfe.

House Staff:Joan Elgee (786-7166)

Rereferred House Committee on Appropriations

Majority Report:  The second substitute bill be substituted therefor and the second substitute bill do pass.  (25)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; Silver, Ranking Republican Member; Youngsman, Assistant Ranking Republican Member; Appelwick, Bowman, Braddock, Brekke, Brough, Dorn, Doty, Ebersole, Hine, Inslee, May, Mclean, Nealey, Padden, Peery, Rust, Sayan, Spanel, Sprenkle, Valle and Wineberry.

House Staff:      Karl Herzog (786-7271)

AS PASSED HOUSE FEBRUARY 9, 1990

BACKGROUND:

Prior to 1984, persons operating cosmetology, barbering, and manicurist shops were required to obtain a shop license from the Department of Licensing.  Statutory standards for cosmetology and manicurist shops included the maintenance of an entrance separate from any rooms used for residential purposes and adequate toilet facilities. Shops were subject to inspection, and cosmetology and manicurist shops were to be inspected at least annually.  In 1984, as part of major revisions of cosmetology regulation, the Legislature eliminated the shop license requirement.

Cosmetologists, barbers, manicurists, and cosmetology instructors are also required to obtain a license.  Applicants must complete specified hours of education and pass an examination.  For the instructor license, a person must meet the qualifications for a cosmetologist and complete at least 500 hours of instruction in cosmetology teaching techniques and lesson planning and pass an examination.  To practice as a cosmetologist, an instructor must also obtain a cosmetologist license.

A license is also required to operate a cosmetology school. "School"  is defined as an establishment offering instruction in cosmetology, barbering, and manicuring.

Manicuring activities requiring a license are the application and removal of artificial nails, skin care involving hot compresses, massage, or the use of electrical appliances or chemical compounds for professional application only, and the temporary removal of superfluous hair by lotions, creams, or mechanical or electrical means.

The department has the authority to set license expiration dates. Currently, all licenses issued under the chapter expire one year from issuance.  By statute, a licensee who fails to renew a license for three years must retake the applicable examination.  Reciprocity is granted to persons licensed in another jurisdiction who have completed equivalent education.

Some shop owners rent a portion or all of their booths (chairs) to individual licensees.  The determination of whether booth renters are covered by industrial insurance and unemployment insurance, and whether they are responsible for business and occupation (B&O) taxes depends on the relationship between the shop owner and the booth renter.  For purposes of unemployment insurance, the Legislature has statutorily specified that a booth renter is not covered by unemployment insurance (and no unemployment insurance taxes are due) if the use of the shop facilities is contingent upon compensation to the shop owner and the individual performing the services receives no compensation or other consideration from the owner.  If these criteria are not met, however, the shop owner must pay unemployment insurance taxes on the wages paid and the booth renter is covered by unemployment compensation.

Unlike in unemployment insurance law, the Legislature has not adopted criteria specific to the cosmetology industry for purposes of the B&O tax and industrial insurance.  For the B&O tax, a person operating as an "independent contractor" must pay the tax, while a person who is an "employee" does not pay.  Similarly, under industrial insurance law, a cosmetologist who is a "worker" is covered by industrial insurance and the employer must pay premiums. If the person is not a "worker", no industrial insurance premiums are due and the person is not covered, although he or she may chose to pay premiums and obtain coverage.

Persons performing acts upon which the B&O tax is imposed must obtain a registration certificate from the Department of Revenue.

SUMMARY:

Persons operating a cosmetology, barber, or manicure salon/shop must obtain a license from the Department of Licensing.  A booth renter must obtain a separate salon/shop license.  A "booth renter" is defined as a person who performs cosmetology,  barbering, or manicuring services where the use of the shop facilities is contingent upon compensation to the shop owner and the person receives no compensation from the owner (definition found in current unemployment insurance law).

A salon/shop must meet the following minimum statutory standards: 1) An entrance separate from any rooms used for residential purposes must be maintained; 2) rooms used for the salon/shop may not be used for residential purposes, except for required toilet facilities; 3) the salon/shop must meet applicable zoning and fire code requirements, and provide for the safe storage and labelling of chemicals; 4) a salon/shop must be covered by at least $10,000 combined bodily injury and property damage liability insurance; 5) a notice stating that salons/shops are required to be licensed and directing customer complaints to the department must be posted; and 6) a licensed cosmetologist, barber, or manicurist, as applicable, must directly supervise the salon/shop.  The director of the department shall establish minimum safety and sanitation standards for salons/shops.  The director shall consult with the state Board of Health and the Department of Labor & Industries in establishing training and examination requirements. The department shall inspect salons/shops at least once every two years and upon complaint, and may contract with local health authorities to conduct the inspections. 

The required curriculum to obtain a cosmetologist, barber, or manicurist license shall include a course in business practices. The department is directed to ensure that after completion of the required courses, applicants may promptly take the examination and receive the results of the examination.  New license categories of "barbering instructor" and "manicuring instructor" are added. These persons must take 500 hours of instruction and pass an examination.  Persons with instructor licenses need not also obtain the applicable cosmetologist, barber, or manicurist license to practice.  Instruction in teaching activities and business practices is added to the definition of school.

Cleaning, shaping, and polishing of the nails of the hands or feet are added to the scope of practice of manicuring.

Cosmetologist, barber, manicurist, and instructor licenses are specified to be effective for two years.  The time period for retaking an examination upon failure to renew is changed from three years to four years.  School and salon/shop licenses shall be effective for one year.

Booth renters are statutorily excluded from the definition of "worker" for purposes of coverage under industrial insurance law, and are defined to be independent contractors for purposes of the business and occupation tax.  Booth renters may elect industrial insurance coverage.

A shop shall obtain a certificate of registration from the Department of Revenue.  The Department of Licensing shall cooperate with the Department of Revenue in collecting taxes.

Appropriation:    $207,000 to the Department of Licensing, to be repaid to the General Fund by June 30, 1993, from fees imposed.

Fiscal Note:      Available.

Effective Date:The second substitute bill takes effect on January 1, 1991.

House Committee ‑ Testified For:    (Commerce & Labor)  Representative Mary Margaret Haugen, Prime Sponsor; Janice Eberle and Tamara Matheson, Washington State Cosmetology Association.

(Appropriations)  Representative Mary Margaret Haugen, Prime Sponsor; Dewey Brignone, United Food and Commercial Workers Union; Darrel Camp; Pam Massey, School Owners' Association; Joyce Lanning, Washington State Cosmetology Association.

House Committee - Testified Against:      (Commerce & Labor)  No one.

(Appropriations)  No one.

House Committee - Testimony For:    (Commerce & Labor)  Since the Legislature deregulated cosmetology, the industry has deteriorated.  Persons are operating shops out of kitchens and cleanliness has suffered.  The state is losing money from booth renters who don't pay taxes.  Also, booth renters may be unaware they are not covered by industrial or unemployment insurance.

(Appropriations)  Workers in these professions should receive training on hazardous chemical handling.  There is a lack of professionalism in some of the establishments where cosmetology is practiced.  Shops should be required to maintain minimum standards.

House Committee - Testimony Against:      (Commerce & Labor)  None.

(Appropriations)  None.