Bill Summary – FastDemocracy

1                                  STATE OF OKLAHOMA
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 2                   2nd Session of the 59th Legislature (2024)
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 3   HOUSE BILL 3158                           By: Roberts
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 6                                   AS INTRODUCED
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 7            An Act relating to professions and occupations;
 7            creating tax-exempt schools for cosmetology and
 8            barber training; providing for application form,
 8            initial license fee, surety bond, and financial
 9            statement; creating tax-exempt schools within the
 9            Department of Corrections; providing for letter of
10            intent, application form, initial license fee, surety
10            bond, financial statement, and proof of use of
11            building; providing for tax-exempt license renewal;
11            providing for application and fee; prohibiting
12            deceptive or misleading language in advertising;
12            providing for codification; and providing an
13            effective date.
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16   BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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17       SECTION 1.       NEW LAW       A new section of law to be codified
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18   in the Oklahoma Statutes as Section 199.19 of Title 59, unless there
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19   is created a duplication in numbering, reads as follows:
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20       A.   Any nonprofit 501(c)(3) tax-exempt school that proposes to
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21   provide cosmetology or barber training courses designed to qualify
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22   persons who complete courses for a professional license to practice
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23   cosmetology or barbering, shall be required to obtain a license for
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     Req. No. 8430                                                      Page 1
 1   the nonprofit 501(c)(3) tax-exempt postsecondary school from the
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 2   State Board of Cosmetology and Barbering.
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 3       B.   The license application form shall be completed in full
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 4   making note whether the school intends to operate as a secondary or
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 5   postsecondary establishment and returned to the Board and shall
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 6   contain the following information:
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 7       1.   Proposed name, location (city, street, and number), and a
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 8   brief description of the building;
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 9       2.   Name, address, and phone number of the proposed owner.    If a
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10   corporation, the names, addresses, and phone numbers of the officers
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11   and principal stockholders are required to be submitted; and
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12       3.   Names of Oklahoma licenses held and the file numbers of the
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13   persons to be the instructors of the proposed school and that of the
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14   manager, if other than the owner.
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15       C.   Each initial public, privately owned, and nonprofit
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16   501(c)(3) tax-exempt cosmetology or barber school shall be required
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17   to pay to the Board the initial license fee of Four Hundred Dollars
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18   ($400.00).   Each public, privately owned, and nonprofit 501(c)(3)
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19   tax-exempt school shall also pay the annual license renewal fee of
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20   One Hundred Twenty-five Dollars ($125.00).   Each school license
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21   shall expire annually on June 30th.   No provision is made for pro
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22   rata of any license fee.   A school shall be inspected at least once
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23   each year in order to be eligible for renewal.
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     Req. No. 8430                                                      Page 2
 1       D.   A surety bond in the amount of Two Thousand Dollars
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 2   ($2,000.00) for the first instructor and One Thousand Dollars
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 3   ($1,000.00) for each additional instructor shall be submitted for
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 4   each cosmetology or barber school license.   The bond shall be in an
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 5   amount sufficient to meet bonding requirements for all staff.
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 6       E.   A current financial statement of the license applicant,
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 7   prepared by a public accountant or a certified public accountant, is
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 8   required to be submitted to the Board.   The financial statement
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 9   shall be prepared in accordance with generally accepted accounting
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10   principles and shall reflect the applicant's total property
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11   inventory, assets, and liabilities which shall show a net worth of
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12   at least One Hundred Thousand Dollars ($100,000.00) for each school
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13   owned.   Intangible assets shall not be considered in net worth.
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14       SECTION 2.     NEW LAW     A new section of law to be codified
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15   in the Oklahoma Statutes as Section 199.20 of Title 59, unless there
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16   is created a duplication in numbering, reads as follows:
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17       A.   Any nonprofit 501(c)(3) tax-exempt school located within a
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18   correctional facility that proposes to provide cosmetology or barber
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19   training courses designed to qualify persons who complete courses
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20   for a professional license to practice cosmetology or barbering,
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21   shall be required to obtain a license for the nonprofit 501(c)(3)
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22   tax-exempt postsecondary school from the State Board of Cosmetology
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23   and Barbering.
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     Req. No. 8430                                                      Page 3
 1       B.   The license application form shall be completed in full,
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 2   making note of whether the school intends to operate as a secondary
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 3   or postsecondary establishment, and returned to the Board and shall
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 4   contain the following information:
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 5       1.   Names, addresses, and phone numbers of the Director of the
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 6   Oklahoma Department of Corrections, administrative staff, Chief
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 7   Administrator of Classification and Programs, Administer of
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 8   Programs, and the warden at the correctional facility where the
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 9   school is to be located, and of each instructor proposed to teach in
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10   the school.   The file number of the instructor shall be submitted;
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11       2.   A notarized affidavit stating source of sufficient bond
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12   coverage and that the building wherein the school is proposed to be
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13   conducted is owned by the Department of Corrections, and
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14       3.   Phone numbers of the correctional facility and a brief
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15   general description of the correctional facility location within the
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16   institution and other building training sections and parking areas.
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17       C.   Each initial public, privately owned, and nonprofit
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18   501(c)(3) tax-exempt cosmetology or barber school shall be required
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19   to pay to the Board the initial license fee of Four Hundred Dollars
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20   ($400.00).    Each public, privately owned, and nonprofit 501(c)(3)
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21   tax-exempt school shall also pay the annual license renewal fee of
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22   One Hundred Twenty-five Dollars ($125.00).    Each school license
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23   shall expire annually on June 30th.    No provision is made for pro
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     Req. No. 8430                                                       Page 4
 1   rata of any license fee.   A school shall be inspected at least once
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 2   each year in order to be eligible for renewal.
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 3       D.   A surety bond in the amount of Two Thousand Dollars
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 4   ($2,000.00) for the first instructor and One Thousand Dollars
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 5   ($1,000.00) for each additional instructor is required to be
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 6   submitted for each cosmetology or barber school license.    The bond
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 7   shall be in an amount sufficient to meet bonding requirements for
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 8   all staff.
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 9       E.   A current financial statement of the license applicant,
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10   prepared by a public accountant or a certified public accountant, is
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11   required to be submitted to the Board.   The financial statement
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12   shall be prepared in accordance with generally accepted accounting
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13   principles and shall reflect the applicant's total property
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14   inventory, assets, and liabilities which shall show a net worth of
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15   at least One Hundred Thousand Dollars ($100,000.00) for each school
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16   owned.   Intangible assets shall not be considered in net worth.
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17       F.   Nonprofit 501(c)(3) tax-exempt schools within a correctional
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18   facility shall not acquire funds.   Education shall be provided free
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19   of cost to all students enrolled in the programs.   All supplies
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20   shall either be bought from money that is obtained through grants or
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21   by private donation made to the organization.    A financial statement
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22   shall not be required for this type of school.
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23       G.   Applicants shall obtain a memorandum of understanding from
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24   the Oklahoma Department of Corrections stating that the Department
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     Req. No. 8430                                                      Page 5
 1   will allow the applicant use of the designated area for one (1)
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 2   year, or a sum of twelve-month increments, that will be used for the
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 3   proposed school to operate.
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 4       SECTION 3.      NEW LAW       A new section of law to be codified
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 5   in the Oklahoma Statutes as Section 199.21 of Title 59, unless there
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 6   is created a duplication in numbering, reads as follows:
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 7       A.   A 501(c)(3) tax-exempt school license shall expire annually
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 8   on June 30th.    A renewal application shall be received by June 30th
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 9   each year.
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10       B.   A 501(c)(3) tax-exempt license renewal application, forms,
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11   and instructions shall be mailed annually to schools by the State
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12   Board of Cosmetology and Barbering.      Forms include a surety bond
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13   renewal form, power of attorney, and verification form.
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14       C.   A fee of One Hundred Twenty-five Dollars ($125.00) is
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15   required for school license renewal.
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16       D.   Any advertisement for recruitment of students shall state
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17   that the school is proposed to be open and shall not contain
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18   deceptive or misleading language and shall state that the school has
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19   applied for licensure.
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20       SECTION 4.   This act shall become effective November 1, 2024.
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22       59-2-8430       LRB       11/06/23
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     Req. No. 8430                                                      Page 6