HOUSE BILL REPORT

SHB 1366

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

Requiring that booth renting cosmetologists get shop licenses.

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 REPORTED BY COMMITTEE ON APPROPRIATIONS JANUARY 26, 1990

BACKGROUND:

By current statute, individuals performing cosmetology, barbering, and manicuring activities are regulated by the Department of Licensing (DOL).

Generally, cosmetologists, barbers, and manicurists provide for the care of skin, hair, and nails.  These individuals are required to complete specified hours of schooling and pass an examination in order to obtain a license from DOL.  Licenses are valid for one year.  A licensee who fails to renew a license for three years must retake the applicable examination.

A person operating a cosmetology school must obtain a school license from DOL.

Under current law, shop or salon owners are not licensed.  Previous regulation of shop owners was eliminated in 1984.

Currently some shop owners rent a portion or all of their booths (chairs) to individual licensees.  In this situation it is not always clear whether the booth renter or shop owner is required to pay for industrial insurance, or business and occupation taxes.

SUMMARY:

SECOND SUBSTITUTE BILL:  Operators of a cosmetology, barber, or manicure salon/shop must obtain a license from the Department of Licensing.  A salon/shop must meet minimum standards.  Standards include acquiring public liability insurance coverage in an amount not less than ten thousand dollars and displaying licensing requirements.  DOL must inspect salons/shops upon complaint or at least once every two years.  DOL may contract with local health authorities to conduct the inspections.  The commercial practice of cosmetology, barbering, or manicuring in unlicensed shops is prohibited.

A booth renter must obtain a separate salon/shop license.  A booth renter is defined as a cosmetologist, barber, or manicurist who rents a booth from a shop owner and receives no compensation from the owner for services performed.  Booth renters are statutorily excluded from the definition of "worker" for purposes of coverage under industrial insurance law, although they may elect to purchase industrial insurance coverage from the Department of Labor and Industries. Booth renters are defined to be independent contractors for purposes of the B&O tax.

A salon/shop operator, including a salon/shop operated by a booth renter, must obtain a certificate of registration from the Department of Revenue (DOR).  DOL must cooperate with DOR in collecting B&O taxes from persons licensed as cosmetologists, manicurists, and barbers.

Cosmetologist, manicurist, and barber school curricula must include a course on business practices.  The department is directed to ensure that after completion of the required courses, applicants may promptly take an examination and receive the results of the examination.

New license categories of "barbering instructor" and "manicuring instructor" are added.  Instructors must take 500 hours of classes beyond that required for barbers or manicurists, and pass an instructor examination.

The reciprocity provision for licensing persons from other states or countries is changed to allow work experience to be substituted for the required education.

Cosmetologist, barber, manicurist, and instructor licenses are valid for two years.  Persons who fail to renew a license for four years must retake the appropriate examination.  School and salon/shop licenses are valid for one year.

SECOND SUBSTITUTE COMPARED TO ORIGINAL:

Salon/shop requirements.  The term "shop" is changed to "salon/shop."  DOL is given explicit authority to establish minimum safety and sanitation standards for salons/shops. Inspection of salons/shops is changed from annual to biennial and upon complaint.

Licensing procedures.  Language is added directing the DOL to ensure that applicants for cosmetologist, barber, or manicurist licenses may take the appropriate license examination and be notified of the results of the examination promptly upon completion of schooling. DOL is directed to consult with the State Board of Health and the Department of Labor and Industries when establishing training and licensing requirements.

Practitioner licenses are specified to be valid for two years rather than one year. The time allowance for a practitioner to retake an examination is extended from three to four years.  The reciprocity provision is changed to allow work experience to be substituted for education requirements.

Schools and instructors.  Instruction in teaching activities is added to the definition of "school."  Definitions for two new categories of instructors ("barbering instructors" and "manicuring instructors") are added.  Persons with instructor licenses are not required to obtain the applicable cosmetologist, barber, or manicurist license in order to practice those professions.

Manicuring definition.  A new provision requiring a cosmetology or manicurist license in order to clean, shape, and polish nails of the hands or feet is added.

Industrial insurance coverage.  The industrial insurance provision for booth renters is clarified to provide that booth renters may elect coverage.

Other clarifying and technical changes are made.

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 bill takes effect on January 1, 1991.

House Committee ‑ Testified For:    (Commerce & Labor)  Representative Mary Margaret Haugen, Prime Sponsor; and 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.