SENATE BILL REPORT

SB 5597

BYSenators Vognild and Moore

Establishing minimum bond for cosmetology schools.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):February 27, 1987

Majority Report:  Do pass.

      Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Cantu, Lee, Tanner, Vognild, West.

Senate Staff:Patrick Woods (786-7430)

                  March 20, 1987

AS PASSED SENATE, MARCH 19, 1987

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 Department presently requires bonding levels of $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 to be on file with 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 designated solely for the protection of unearned, prepaid student tuition.  Schools are required to verify gross tuition amounts on an annual basis.  Applicants for a new cosmetology school licenses are required to estimate annual gross tuition to establish an approximate bonding levels.

Fiscal Note:      requested

Senate Committee - Testified: Cynthia Jones, Department of Licensing; Neil Hanson, Crown School of Hair Dressing; Darrell Camp, Mt. Vernon Beauty School; Mike Kennard, Bellingham Beauty School