FINAL BILL REPORT

SB 5597

                                  C 445 L 87

BYSenators Vognild and Moore

Establishing minimum bond for cosmetology schools.

Senate Committee on Commerce & Labor

House Committe on Commerce & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

Currently cosmetology schools are required to maintain a surety bond on file with the Department of Licensing. The Director of Licensing has the authority to set a maximum bonding level of up to $25,000.  The bonding levels at present are set at $6,000 for schools with 19 or less students and $12,000 for schools with 20 or more students.

SUMMARY:

The bonding level for cosmetology schools required by the Department of Licensing is set at a minimum of $1,000 or 5 percent of the school's annual gross tuition whichever is greater.  The maximum bonding level is maintained at $25,000 and is for the protection of unearned, prepaid student tuition.  Schools are to verify gross tuition amounts on an annual basis.  Applicants for new cosmetology school licenses must estimate annual gross tuition to establish an approximate bonding level.

VOTES ON FINAL PASSAGE:

      Senate    47     0

      House 98   0

EFFECTIVE:July 26, 1987