A254 1R

[First Reprint]

ASSEMBLY, No. 254

STATE OF NEW JERSEY

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblymen GARCIA and JONES

An Act concerning the consolidation of administration and oversight of private proprietary vocational schools and revising parts of the statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) The Legislature finds and declares that:

a. In order to meet anticipated demands of a future world-class workforce, more workers will require stronger employment, training and education skills. Proprietary vocational schools will continue to play a large role in New Jersey's postsecondary occupational education system as there are over 450 schools annually enrolling at least 100,000 students. However, the quality and stability of proprietary vocational schools in New Jersey are uncertain because the monitoring, evaluation, and approval of these school programs are scattered among six State agencies. Consequently, there are no common standards among agencies for school monitoring, evaluation and approval, or education program accountability.

b. It is the objective of the State of New Jersey to ensure that all vocational or technical education students receive educational and financial protection in the event of business failure or sudden closure of a school. In furtherance of that goal, the New Jersey State Employment and Training Commission has recommended the centralized regulation of certain private trade schools by the State Department of Education.

c. Furthermore, the federal Carl ¹[E.] D.¹ Perkins Vocational and Applied Technology Education Act (20 U.S.C.§¹[2300] 2301¹ et seq.) as amended by Pub.L.101-392, requires, among other things, the establishment of performance standards and measures for evaluation purposes for secondary and postsecondary vocational education programs.

2. (New section) As used in sections 1 through 20 of this act:

"Commissioner" means the Commissioner of Education.

"Fund" means the Private Vocational School Student Tuition Protection Fund, established pursuant to section 5 of this act.

"Owner" means the person primarily responsible for the formation and continuation of operation of a qualifying school, including those individuals who are authorized to sign checks and required to file reports for the school pursuant to this act.

"Qualifying school" means:

a. A person, firm, corporation, private organization, or business entity doing business and maintaining facilities within the State which:

(1) offers or maintains a course of instruction or instructional program to prepare individuals for entry level employment or provides supplementary instruction in a recognized occupational area;

(2) offers occupational instruction through classroom, shop or laboratory experience, or correspondence, or both;

(3) offers the instruction to the general public or in conjunction with "Job Training Partnership Act" (JTPA) providers;

(4) charges tuition or other fees or costs for goods and services; and

(5) operates for profit or not for profit.

b. "Qualifying school" shall not mean:

(1) public and independent non-profit schools, colleges and universities licensed by the Commission on Higher Education;

(2) ¹[casino training schools operating under the authority of the Casino Control Commission;

(3)]¹ drivers' schools licensed by the Director of Motor Vehicles pursuant to P.L.1951, c.216 (C.39:12-1 et seq.) ¹[unless the school provides instruction for the purpose of obtaining a commercial driver license pursuant to P.L.1990, c.103 (C.39:3-10.9 et seq.)]¹;

¹[(4)] (3)¹ schools offering courses of education in insurance approved by the Commissioner of Insurance pursuant to the provisions of P.L.1987, c.293 (C.17:22A-1 et seq.)

¹[(5)] (4)¹ schools offering courses of education in real estate appraisal approved by the State Real Estate Appraiser Board pursuant to the provisions of P.L.1991, c.68 (C.45:14F-1 et seq.);

¹[(6)] (5)¹ schools offering courses of education in real estate and related subjects approved by the New Jersey Real Estate Commission pursuant to the provisions of P.L.1966, c.227 (C.45:15-10.1 et seq.);

¹[(7)] (6)¹ nonprofit schools owned, controlled, operated and conducted by bona fide religious, denominational or charitable organizations;

¹[(8)] (7)¹` schools which charge no more than $400 to any student for tuition, other fees or costs for goods in any calendar year. Commencing January 1, ¹[1995] 1997¹ and annually thereafter, the State Board of Education shall adjust the amount set forth in this paragraph in direct proportion to the rise or fall of the Consumer Price Index for all urban consumers in the New York and Northwestern New Jersey and Philadelphia areas, as reported by the United States Department of Labor. The adjustment shall become effective on July 1 in the year in which it is reported;

¹[(9)] (8)¹ employers offering instruction to their employees on a no-cost or not for profit basis;

¹[(10)] (9)¹ recognized trade, business or professional organizations offering instruction to their membership;

¹[(11)] (10)¹ schools offering instruction that is avocational, cultural or recreational in nature;

¹[(12)] (11)¹ instruction to four or fewer students per term; or

¹[(13)] (12)¹ other schools, institutions and entities exempted by the commissioner pursuant to rules adopted by the State Board of Education.

3. (New section) a. A qualifying school shall register with the commissioner and shall not operate unless it receives a certificate of approval issued by the commissioner under rules promulgated by the State Board of Education. A certificate of approval may be renewed annually and may be revoked or suspended at any time for good cause.

b. ¹[A qualifying school shall not receive a certificate of approval pursuant to subsection a. of this section unless the school receives at least 15% of its revenues from sources other than federal student aid programs] A casino gaming school shall not receive a certificate of approval pursuant to subsection a. of this section unless the school is lincensed by the Casino Control Commission pursuant to subsection a. of section 92 of P.L.1977, c.110 (C.5:12-92).¹

4. (New section) A qualifying school shall obtain a performance bond payable to the State Treasurer in an amount to be determined by the commissioner. The Department of Education may establish alternatives to a performance bond for those qualifying schools which are unable to obtain a performance bond. The alternatives may include an additional quarterly payment to the fund until a performance bond can be secured by the school. The proceeds of the performance bond may be used to pay approved refunds or to reimburse the fund for refunds or other payments made to or on behalf of a student.

5. (New section) A restricted, nonlapsing, revolving Private Vocational School Student Tuition Protection Fund, to be managed and invested by the State Treasurer, is hereby established in the Department of Treasury. The purpose of the fund shall be to provide for a system of equitable refunds in the event of the closure of a qualifying school. The State Treasurer shall have full statutory powers of investment of the fund, except that any interest, income, and dividends derived from the investment of the fund shall be credited to the fund. The operating expenses of the fund shall be paid out of the monies in the fund.

6. (New section) a. A qualifying school shall pay to the State Treasurer, to be deposited into the Private Vocational School Student Tuition Protection Fund, an amount equal to $10 annually for each student enrolled at that school ¹who pays in excess of $400 in tuition during the calendar year¹ , in the manner set forth below. This charge shall not be considered a part of tuition.

(1) Within 90 days of the effective date of this act, a qualifying school shall make a payment for each student ¹who pays in excess of $400 in tuition during the calendar year¹ enrolled at that school as of the effective date of this act .

(2) For newly-enrolled students who start a program of instruction after the effective date of this act ¹and whose tuition will be in excess of $400 during the calendar year¹, payments shall be made on a quarterly basis, on the dates of January 30, April 30, July 30 or October 30, for students enrolled within a three month period ending the month immediately preceding the applicable payment dates.

b. When the balance in the fund reaches $2,000,000, and upon notification from the State Treasurer, all qualifying schools shall cease contributing to the fund. If the balance in the fund is reduced to an amount less than $1,500,000 because of a school or program closure, the State Treasurer shall notify all qualifying schools, and they shall resume payment for all newly-enrolled students ¹whose tuition will be in excess of $400 during the calendary year¹ after the notification date, according to the schedule in paragraph 2 of subsection a. of this section until the balance in the fund is recapitalized at the amount of $2,000,000.

c. Notwithstanding the provisions of subsection b. of this section, a qualifying school receiving an initial certificate of approval ¹[or license]¹ after the effective date of this act, shall make the payments as required by this section for a period of four years.

7. (New section) A qualifying school owner shall notify the commissioner at least 30 days in advance of the owner's intention to close a school or cease instructional activity at a school. Accompanying the notification shall be a plan detailing the procedure the owner shall follow to protect the educational and financial interests of students enrolled in the school.

8. (New section) A qualifying school owner shall notify the commissioner in the event that the owner files a petition for bankruptcy in accordance with federal law. Copies of the petition and all other relevant documents regarding the action shall be forwarded to the commissioner within five working days of the filing of the petition with the court.

9. (New section) Whenever a qualifying school ceases to operate, becomes insolvent or otherwise ceases all instructional activity, the following shall apply:

a. Any student enrolled in the qualifying school who has paid tuition for a course or unit of instruction at that school, but is unable to complete the course or unit of instruction because of the insolvency or cessation of operation of the school, or was enrolled in the school within 90 days of the insolvency or cessation of operation of the school and is owed a tuition refund from the school, is eligible to apply to the Department of Education for a refund of any tuition which the school has not previously refunded to the student. The commissioner shall seek to notify all students eligible for a refund. The following payments shall be made from the Private Vocational School Student Tuition Protection Fund, to the extent monies in the fund are available.

(1) If an eligible student is transferring to another qualifying school to complete the contracted-for courses or instruction, the program expenses incurred by the receiving school shall be paid to that school on behalf of the student subject to the approval of the commissioner.

(2) If an eligible student is not transferring to another qualifying school, the amount of refund for which the student is eligible shall be determined by the Department of Education based on various factors, including, but not limited to, the percentage of contracted-for services received and the availability to the student of opportunities to complete the course or instruction at another school within a reasonable period of time. In no case shall the amount of refund paid exceed the amount of tuition paid by a student.

b. The Department of Education, in consultation with the Higher Education Assistance Authority and other appropriate loan guarantors, shall identify all students who have paid all or part of the tuition with student loans. Any refund to which the student is entitled shall be made directly to the Higher Education Assistance Authority or other appropriate loan guarantor, except that any refund amount which exceeds the amount due any lending institution shall be distributed directly to the student.

c. The Department of Education, in consultation with the Office of Student Assistance, shall identify all students who are pursuing an academic degree who have paid all or part of the tuition with State grant or scholarship funds. Any refund to which the student is entitled shall be made directly to the Office of Student Assistance, except that any refund amount which exceeds the amount of State grant or scholarship funds shall be distributed directly to the student.

d. The Department of Education shall pay claims approved pursuant to this section from the performance bond required pursuant to section 4 of this act whenever possible. When the bond is insufficient to pay all approved claims, the department shall direct the State Treasurer to issue a refund check drawn against the available funds in the Private Vocational School Student Tuition Protection Fund. If a student is a minor, payment shall be made to the student's parent or legal guardian. A student who receives a refund or on whose behalf a refund is paid pursuant to this section, or if the student is a minor, the parent or legal guardian of the student, shall assign all rights to the State of any action against the school or its owner for tuition amounts reimbursed. Upon the assignment, the State may take appropriate action against the school or its owner in order to reimburse the Private Vocational School Student Tuition Protection Fund for any expenses or claims that are paid from the fund and to reimburse any expenses the State incurs in undertaking the action.

10. (New section) A qualifying school shall maintain a permanent student record for each student enrolled which shall include, but not be limited to, name, social security number, and course completion information. A qualifying school shall submit a plan to the commissioner that describes the method by which a student or other legitimate requester may obtain a copy of the permanent record verifying attendance of a student at the school. The plan shall identify the organization or individual responsible for maintaining and responding to requests for records in the event that the school ceases operation or closes.

11. (New section) A qualifying school shall be open for monitoring and inspection to any officer designated by the commissioner. The Department of Education shall conduct at least biennially a full and complete examination of all facilities and methods of operating.

12. (New section) A phased-in schedule for consolidation of oversight and administration of qualifying schools which are currently monitored by other agencies shall be developed by the commissioner, with the exception of degree programs offered by qualifying schools licensed by the Commission on Higher Education, including the curricula, institutional organization, and administration of such schools offering degree programs.

13. (New section) The State Board of Education shall establish, upon consultation with the New Jersey State Employment and Training Commission ¹ and the Office of Student Assistance¹ , suitable standards governing the proper conduct of qualifying schools and may include recommendations concerning instruction, qualifications of instructors and supervisors, facilities, financial responsibilities, business practices, and any other matter essential to the maintenance of the adequacy of instruction and the business integrity of private vocational schools. ¹[Should Part H, Subpart I of Title IV of the "Higher Education Act of 1965," Pub.L.89-329 (20 U.S.C.§1001 et al.), as amended through 1992 be implemented, any standard established shall be subject to the approval or modification of New Jersey's State Postsecondary Review Entity (SPRE) as recognized by the United States Secretary of Education.]¹

14. (New section) A qualifying school shall submit an annual report to the commissioner. The annual report shall include, but not be limited to, enrollment information, post-training placement information and tuition received. Failure to furnish the required report shall be just cause for the commissioner to amend, suspend or revoke the approval to operate as previously granted by whatever governmental entity, or to take other appropriate actions.

The annual report shall be for the period of July 1 through June 30 of the preceding year and shall be submitted in the format and on the forms provided by the commissioner. It shall be due no later than 30 calendar days after the close of the reporting period.

Such other reports as may be required by the commissioner on a more frequent basis shall be submitted by a qualifying school as directed. A qualifying school shall submit the student's name and social security number for each newly enrolled student on a reporting basis to be established by the commissioner.

15. (New section) Objective performance standards and measures for evaluating qualifying schools shall be jointly developed and implemented by the State Board of Education and the New Jersey State Employment and Training Commission. ¹[ Should Part H, Subpart I of Title IV of the "Higher Education Act of 1965," Pub.L.89-329 (20 U.S.C.§1001 et al.), as amended through 1992 be implemented, any standards and measures established shall be subject to the approval or modification of New Jersey's State Postsecondary Review Entity (SPRE) as recognized by the United States Secretary of Education. ]¹ Policymakers and consumers shall be provided with information concerning approved programs in a "Consumer Guide" to be published annually.

16. (New section) a. An annual fee schedule for qualifying schools shall be established based on variables which are cost-related and dedicated to fund the department's supervision and regulation of private proprietary vocational schools pursuant to an annual appropriation and an annual plan of expenditure prepared by the State Board of Education and approved by the Director of the Office of Management and Budget, Department of the Treasury. The fees shall be based on an equitable distribution of actual costs to administer the program, which shall include monitoring, evaluating and approving institutions and programs. This shall not preclude a graduated fee schedule. The fees shall be maintained in a separate fund dedicated to the supervision of private proprietary schools. All fees shall be submitted to the department no later than 30 days after the beginning of each calendar year quarter, beginning pursuant to the phase-in schedule required under section 12 of this act.

b. Any State or federal funds which may become available for the implementation of this act ¹[, with the exception of funds to be administered by the State Postsecondary Review Entity (SPRE) pursuant to Part H, Subpart 1 of Title IV of the "Higher Education Act of 1965," Pub.L.89-329 (20 U.S.C.§1001 et al.), as amended through 1992,]¹ shall be appropriated to the Department of Education for the support of the Office of Private Vocational Schools and its regulation and oversight of qualifying schools pursuant to the provisions of this act.

17. (New section) Any costs incurred by the Department of Education for the retrieval, storage or processing of student academic and financial records as a result of a closure of a private vocational school may be charged against the supervisory fund established pursuant to section 16 of this act.

18. (New section) Following the close of each fiscal year, the commissioner shall advise the State Board of Education if the balance in the private proprietary school supervision fund for that fiscal year exceeded or was less than the amount required for the support of the department's supervisory activities taking into account projected revenues and expenditures for the subsequent fiscal year. Projected expenditures shall be proportionate to the number of schools. To the extent that a surplus or deficit is identified, the State Board of Education shall reduce or increase the fees.

¹[19. (New section) a. A non-degree granting private proprietary school soliciting students in the State which does not maintain a facility in the State, but otherwise meets the criteria for a qualifying school, shall not conduct business in the State unless it receives a certificate of approval from the commissioner pursuant to regulations to be adopted by the State Board of Education. A certificate of approval may be renewed or suspended at any time for good cause. An approval fee for the certificate shall be established annually by the State Board of Education. The approval fee shall be maintained in the separate fund in the Department of Education dedicated to the supervision of private proprietary schools established pursuant to section 16 of this act.

b. The State Board of Education shall prescribe standards governing the proper operation of private proprietary schools located outside the State in all matters necessary to ensure the adequacy of instruction and may require the schools, as a condition of approval, to furnish such information and reports as the commissioner determines are necessary.

c. A marketing representative or agent of a private proprietary school which does not maintain a facility in the State shall not solicit students or transact business in the State unless that individual has registered with the commissioner, pursuant to regulations adopted by the State Board of Education. An annual fee for registration shall be established by the State board and the registration fees collected shall be maintained in the separate fund dedicated to the supervision of private proprietary schools.]¹

¹[20.] 19.¹ (New section) a. A person, firm, corporation, private organization or other business or legal entity that operates or conducts a private proprietary vocational school and that violates any provision of this act shall be liable to a civil penalty of an amount to be determined for each offense, pursuant to a schedule to be established by the State Board of Education, which shall be collected pursuant to the provisions of "the penalty enforcement law," N.J.S.2A:58-1 et seq., except that any funds remitted to the State Treasurer pursuant to that act shall be deposited into the separate fund dedicated to the supervision of private proprietary schools established pursuant to section 16 of this act.

b. A person, firm, corporation, private organization or other business or legal entity that conducts or operates a private proprietary vocational school shall not make a false statement or misrepresentation knowingly, fail to disclose a material fact, attempt to defraud another person or governmental entity, willfully fail or refuse to withhold or transfer any contribution or other payment, to furnish any report or information, or to produce or permit the inspection or copying of records which may be required under this act, or which may be required by any rule or regulation promulgated pursuant to this act. A person or entity which takes such action shall be subject to the civil penalties provided for in this section, as well as any criminal penalties which may be imposed pursuant to law.

¹[21. Section 2 of P.L.1951, c.216 (C.39:12-2) is amended to read as follows:

2. No person shall engage in the business of conducting a drivers' school, except a private proprietary school offering instruction for the purpose of obtaining a commercial driver license pursuant to P.L.1990, c.103 (C.39:3-10.9 et seq.), without being licensed therefor by the Director of Motor Vehicles. Application therefor shall be in writing and contain such information therein as he shall require. If the application is approved, the applicant shall be granted a license upon the payment of a fee of $250.00; provided, however, no license fee shall be charged for the issuance of a license to any board of education, school board, public, private or parochial school, which conducts a course in driver education, approved by the State Department of Education. A license so issued shall be valid during the calendar year. The annual fee for renewal shall be $200. The director shall issue a license certificate or license certificates to each licensee, one of which shall be displayed in each place of business of the licensee.

In case of the loss, mutilation or destruction of a certificate, the director shall issue a duplicate upon proof of the facts and the payment of a fee of $5.

(cf: P.L.1994, c.60, s.29)]¹

¹[22. (New section) Upon the effective date of P.L. , c. (C. ) (now pending before the Legislature as this bill), a private proprietary school offering instruction for the purpose of obtaining a commercial driver license pursuant to the provisions of P.L.1990, c.103 (C.39:3-10.9 et seq.) shall be approved by the Commissioner of the Department of Education pursuant to the provisions of P.L. , c. (C. ) and in accordance with the schedule developed pursuant to section 12 of that act; except that the Director of the Division of Motor Vehicles shall retain the authority to approve the school's curriculum.]¹

¹[23.] 20.¹ Section 2 of P.L.1984, c.205 (C.45:5B-2) is amended to read as follows:

2. The Legislature finds and declares that it is a valid public purpose:

a. To establish a single board which shall administer, coordinate and enforce this act and regulations promulgated pursuant to this act relating to the practices of cosmetology, hairstyling, barbering and beauty culture[,]and the premises at which those services are rendered [and the schools at which instruction in those practices may be obtained];

b. To protect those persons of the general public who are direct recipients of the services regulated by this act and registered students receiving instruction at [licensed] approved schools of cosmetology and hairstyling from unsafe, fraudulent and deceptive practices, as well as practices which reduce competition and;

c. To maintain and ensure standards of competency and integrity for the occupations of cosmetology and hairstyling[; and].

d. [To ensure that registered students at cosmetology and hairstyling schools receive thorough and reliable instruction.](Deleted by amendment, P.L. , c. ).

(cf: P.L.1984, c.205, s.2)

¹[24.] 21.¹ Section 3 of P.L.1984, c.205 (C.55:5B-3) is amended to read as follows:

3. As used in this act:

a. "Barber" means any person who is licensed to engage in any of the practices encompassed in barbering.

b. "Barbering" means any one or combination of the following practices when done on the human body for cosmetic purposes and not for the treatment of disease or physical or mental ailments and when done for payment either directly or indirectly or when done without payment for the general public:

(1) shaving or trimming of the beard, mustache or other facial hair;

(2) shampooing, cutting, arranging, relaxing or styling of the hair;

(3) singeing or dyeing of the hair;

(4) applying cosmetic preparations, antiseptics, tonics, lotions or creams to the hair, scalp, face or neck;

(5) massaging, cleansing or stimulating the face, neck or scalp with or without cosmetic preparations, either by hand, mechanical or electrical appliances; or

(6) cutting, fitting, coloring or styling of hairpieces or wigs, to the extent that the services are performed while the wig is being worn by a person.

c. "Beautician" means any person who is licensed to engage in any of the practices encompassed in beauty culture.

d. "Beauty culture" means any one or combination of the following practices when done on the human body for cosmetic purposes and not for the treatment of disease or physical or mental ailments and when done for payment either directly or indirectly or when done without payment for the general public:

(1) shampooing, cutting, arranging, dressing, relaxing, curling, permanent waving or styling of the hair;

(2) singeing, dyeing, tinting, coloring, bleaching of the hair;

(3) applying cosmetic preparations, antiseptics, tonics, lotions, creams or makeup to the hair, scalp, face, neck or upper part of the body;

(4) massaging, cleansing, or stimulating the face, scalp, neck or upper part of the body, with or without cosmetic preparations either by hand, mechanical or electrical appliances;

(5) removing superfluous hair from the face, neck, arms, legs or abdomen by the use of depilatories, waxing or tweezers, but not by the use of electrolysis;

(6) manicuring the fingernails, nail-sculpturing or pedicuring the toenails; or

(7) cutting, fitting, coloring or styling of hairpieces or wigs to the extent that the services are performed while the wig is being worn by a person.

e. "Board" means New Jersey State Board of Cosmetology and Hairstyling.

f. "Board of Barber Examiners" means the State Board of Barber Examiners established pursuant to P.L.1938, c.197 (C.45:4-27 et seq.).

g. "Board of Beauty Culture Control" means the Board of Beauty Culture Control established pursuant to Chapter 4A of Title 45 of the Revised Statutes.

h. "Clinic" means a designated portion of a licensed school in which members of the general public may receive cosmetology or hairstyling services from registered students in exchange for a fee which shall be calculated to recoup only the cost of materials used in the performance of those services.

i. "Cosmetologist-hairstylist" means any person who is licensed to engage in the practices encompassed in cosmetology and hairstyling.

j. "Cosmetology and hairstyling" means any one or combination of the following practices when done on the human body for cosmetic purposes and not for the treatment of disease or physical or mental ailments and when done for payment either directly or indirectly or when done without payment for the general public:

(1) shaving or trimming of the beard, mustache or other facial hair;

(2) shampooing, cutting, arranging, dressing, relaxing, curling, permanent waving or styling of the hair;

(3) singeing, dyeing, tinting, coloring, bleaching of the hair;

(4) applying cosmetic preparations, antiseptics, tonics, lotions, creams or makeup to the hair, scalp, face or neck;

(5) massaging, cleansing or stimulating the face, neck or upper part of the body, with or without cosmetic preparations, either by hand, mechanical or electrical appliances;

(6) removing superfluous hair from the face, neck, arms, legs or abdomen by the use of depilatories, waxing or tweezers, but not by the use of electrolysis;

(7) manicuring the fingernails, nail-sculpturing or pedicuring the toenails;

(8) cutting, fitting, coloring or styling of hairpieces or wigs to the extent that the services are being performed while the wig is being worn by a person; or

(9) hairweaving to the extent that the procedure does not involve the replacement of human hair by means of the insertion of any natural or synthetic fiber hair into the scalp.

k. "Manicurist" means a person who holds a limited license to engage in only the practice of manicuring.

l. "Manicuring" means any one or combination of the following practices when done on the human body for cosmetic purposes and not for the treatment of disease or physical or mental ailments and when done for payment directly or indirectly or when done without payment for the general public:

(1) manicuring of the fingernails;

(2) pedicuring of the toenails;

(3) nail sculpturing ; or

(4) removing superfluous hair from the face, neck, arms, legs or abdomen by the use of depilatories, waxing or tweezers, but not by the use of electrolysis.

m. "Owner" means any person, corporation, firm or partnership who has a financial interest in a [school or] shop entitling him to participate in the promotion, management and proceeds thereof. It does not include a person whose connection with a [school or] shop entitles him only to reasonable salary or wages for services actually rendered.

n. "Practicing licensee" means any person who holds a license to practice barbering, beauty culture, cosmetology and hairstyling, manicuring or as a skin care specialist.

o. "Registered student" means a person who is engaged in learning and acquiring a knowledge of any of the practices included in the definition of cosmetology and hairstyling under the direction and supervision of a person duly authorized under this act to teach cosmetology and hairstyling and who is enrolled in a program of instruction at [a licensed] an approved school of cosmetology and hairstyling, completion of which may render him eligible for licensure pursuant to this act but does not mean a person who is enrolled in a public school vocational program in cosmetology and hairstyling approved by the State Board of Education.

p. "Registration card" means a document issued by the board to a registered student upon receipt of documentation from [a licensed] an approved school of cosmetology and hairstyling that the student is enrolled.

q. "School" means [an establishment or place licensed by the board to be maintained for the purpose of teaching] a private proprietary school which is approved by the Commissioner of the Department of Education pursuant to the provisions of P.L. , c. (C. ) (now pending before the Legislature as this bill) to offer courses of education in cosmetology and hairstyling to registered students.

r. "Senior student" means a registered student who has successfully completed 600 hours of instruction in a cosmetology and hairstyling program, 100 hours of instruction in a manicuring program or 300 hours of instruction in a skin care specialty programoffered at [a licensed ] an approved school of cosmetology and hairstyling or a student enrolled in an approved vocational training program who has completed 600 hours of instruction in a cosmetology and hair styling program, 100 hours of instruction in a manicuring program or 300 hours of instruction in a skin care specialty program.

s. "Student permit" means a permit issued to a senior student which enables him to practice cosmetology and hairstyling in a school clinic or shop while a registered student at [a licensed] an approved school of cosmetology and hairstyling or enrolled in an approved vocational training program.

t. "Shop" means any fixed establishment or place where one or more persons engage in one or more of the practices included in the definition of cosmetology or hairstyling, barbering, beauty culture or manicuring.

u. "Teacher" means any person who is licensed by the board to give instruction or training in the theory or practice of cosmetology and hairstyling.

v. "Temporary permit" means a permit issued to applicants for licensure awaiting scheduling or results of an examination.

w. "Manicurist student permit" means a permit issued to a senior student in a manicuring program which enables him to practice manicuring in a school clinic or shop while a registered student at[ a licensed] an approved school of cosmetology and hairstyling or enrolled in an approved vocational program.

x. "Skin care specialist" means a person who holds a limited license to engage in only the practices included in the definition of skin care specialty.

y. "Skin care specialty" means any one or combination of the following practices when done on the human body for cosmetic purposes and not for the treatment of disease or physical or mental ailments and when performed for payment either directly or indirectly or when performed without payment for the general public:

(1) applying cosmetic preparations, antiseptics, tonics, lotions, creams or makeup to the scalp, face or neck;

(2) massaging, cleansing or stimulating the face, neck or upper part of the body, with or without cosmetic preparations, either by hand, mechanical or electrical appliances; or

(3) removing superfluous hair from the face, neck, arms, legs or abdomen by the use of depilatories, waxing or tweezers, but not by the use of electrolysis.

z. "Skin care specialty student permit" means a permit issued to a senior student in a skin care specialty program which enables him to practice skin care in a school clinic or shop while a registered student at[ a licensed] an approved school of cosmetology and hairstyling or enrolled in an approved vocational program.

(cf: P.L.1995, c.262, s.1)

¹[25.] 22.¹ Section 4 of P.L.1984, c.205 (C.45:5B-4) is amended to read as follows:

4. There is created within the Division of Consumer Affairs in the Department of Law and Public Safety the New Jersey State Board of Cosmetology and Hairstyling. The board shall consist of 11 members who are residents of the State, three of whom shall be public members, two appointed pursuant to subsection b. of section 2 of P.L.1971, c.60 (C.45:1-2.2) and one additional public member, and one of whom shall be a State executive department member appointed pursuant to subsection c. of section 2 of P.L.1971, c.60 (C.45:1-2.2). Of the remaining seven members, six shall hold practicing licenses issued by the board, by the Board of Barber Examiners or by the Board of Beauty Culture Control and shall have been engaged in the practice of beauty culture, barbering or cosmetology and hairstyling for at least five years prior to their appointments, but shall not have been engaged in the conduct of or teaching at [a licensed] an approved school of beauty culture or cosmetology and hairstyling. Three of the practicing members appointed to the initial board created by this act shall hold a license to practice barbering issued by the Board of Barber Examiners. Three of the practicing members appointed to the initial board created by this act shall hold a license issued by the Board of Beauty Culture Control. The remaining one member appointed [by] to the board created by this act shall hold a teacher's license issued by the Board of Beauty Culture Control or by the board and shall have been engaged in the teaching of beauty culture or cosmetology and hairstyling or shall have been involved in the conduct of a [licensed] school of beauty culture or school of cosmetology and hairstyling in this State for at least five years prior to their appointment.

(cf: P.L.1984, c.205, s.4)

¹[26.] 23.¹ Section 6 of P.L.1984, c.205 (C.45:5B-6) is amended to read as follows:

6. The board shall:

a. Review the qualifications of applicants for licensure;

b. Devise examinations for licensure which include practical and written portions;

c. Administer and grade examinations or employ competent examiners to administer and grade examinations but in no case shall the board permit a person having any affiliation with [a licensed] an approved school to examine or grade an applicant who has been a registered student at the school with which the examiner has an affiliation;

d. Issue and renew licenses of any cosmetologist-hairstylist, beautician, barber, manicurist, skin care specialist, teacher, or shop[, or school];

e. Issue student permits to senior students, manicuring students and skin care specialty students, which permits shall remain valid during the period that the student is registered at [ licensed] an approved school or enrolled in an approved vocational training program;

f. Issue temporary permits to applicants for licensure who are awaiting scheduling for or results from an examination;

g. Issue registration cards to registered students;

h. Suspend, revoke or fail to renew a license and exercise investigative powers pursuant to the provisions of P.L.1978, c.73 (C.45:1-14 et seq.);

i. Appoint and employ an executive director and an assistant executive director subject to the approval of the Attorney General, and other employees as necessary to carry out the provisions of this act;

j. Determine the duties that the executive director and the assistant executive director shall perform;

k. File with the Attorney General a petition to remove any executive director or assistant executive director for cause, which petition shall be acted upon by the Attorney General in a manner which he deems appropriate;

l. Establish fees for initial licensure, permits, renewals and restoration of licenses as well as for duplication of lost licenses pursuant to section 2 of P.L.1974, c.46 (C.45:1-3.2);

m. Maintain records of all practicing licensees and all licensed teachers. Records shall include the latest work address of each licensee, as provided on applications for licensure and renewals thereof;

n. Maintain a record of all registered students and all persons holding student permits , manicuring student permits and skin care specialty student permits;

o. Maintain a record of all shops licensed by the board to offer one or more of the services encompassed within the definition of cosmetology and hairstyling;

p. Maintain a record of all schools [licensed by the board] approved by the Commissioner of the Department of Education pursuant to the provisions of P.L. , c. (C. ) (now pending before the Legislature as this bill) to offer courses of instruction or training in the practice and theory of cosmetology and hairstyling to registered students, which courses shall be approved by the board for the awarding of credit for licensure;

q. Make available for public inspection all records required to be kept pursuant to this section;

r. Promulgate regulations governing the practice and teaching of cosmetology and hairstyling as are necessary to implement this act and to insure that cosmetology and hairstyling services and instruction in those services are being offered both in a manner which is sanitary and safe and in a manner which is not intended to deceive or mislead the general public;

s. Promulgate regulations governing the conduct of shops [and schools] as are necessary to implement this act and to assure that cosmetology and hairstyling services and [instruction in those services] are being offered both in a manner that is sanitary and safe, and in a manner not intended to deceive or mislead the general public[, students of the schools, or organizations awarding financial aid to the students] and to clarify or define any term used in the act and to define any activity included in hairstyling and cosmetology and beauty culture;

t. Review curricula offered by [licensed] approved schools in courses of instruction offered to registered students and approve those curricula which offer comprehensive training in cosmetology and hairstyling;

u. Direct the conduct of inspections or investigations of all licensed shops [and schools]; and

v. Direct the conduct of inspections or investigations of any premises from which the board may have reason to believe that cosmetology and hairstyling services are being offered[, or that courses of instruction are being offered to registered students].

(cf: P.L.1995, c.82, s.2)

¹[27.] 24.¹ Section 8 of P.L.1984, c.205 (45:5B-8) is amended to read as follows:

8. No person shall offer or render any of the services encompassed within the definition of cosmetology and hairstyling in a place which is not a licensed [as a] shop or an approved school, except that a practicing licensee, duly licensed pursuant to this act, may render the services which he is licensed to offer:

a. Upon patients in hospitals, nursing homes, and other licensed health care facilities;

b. Upon inmates and residents of institutions of the Department of Corrections or the Department of Human Services;

c. Upon an invalid or handicapped person in the person's place of residence, if the practicing licensee is sponsored by a licensed shop and a record of those services is maintained by that shop;

d. Upon performers or models, prior to, in anticipation of or during a performance; or

e. Upon potential consumers of cosmetic preparations, lotions, creams, makeup or perfume which are intended for home use if the application of the product is made for the purposes of effecting a retail sale and the person neither accepts payment from the consumer for the service, nor makes the provision of the service contingent upon the purchase of any product or service.

(cf: P.L.1995, c.82, s.3)

¹[28.] 25.¹ Section 10 of P.L.1984, c.205 (C.45:5B-10) is amended to read as follows:

10. No person, firm, corporation, partnership or other legal entity shall operate, maintain or use premises at which courses of instruction in cosmetology and hairstyling services are offered to registered students without first having secured a [school license from the board] certificate of approval from the Commissioner of the Department of Education pursuant to the provisions of P.L. , c. (C. ) (now pending before the Legislature as this bill). Nothing herein shall prohibit the offering of educational programs and courses in cosmetology and hairstyling to practicing licensees or teachers at [unlicensed] unapproved premises. However, no course offered at [an unlicensed] unapproved premises shall be recognized by the board in satisfaction of licensure eligibility requirements. All educational programs and courses offered at [unlicensed] unapproved premises shall be conducted by practicing licensees.

(cf: P.L.1984, c.205, s.10)

¹[29.] 26.¹ Section 12 of P.L.1984, c.205 (C.45:5B-12) is amended to read as follows:

12. In addition to any practice declared unlawful pursuant to P.L.1978, c.73 (C.45:1-14 et seq.), it shall be unlawful for any person to engage in the following practices:

a. Advertise in a manner which would tend to mislead consumers of cosmetology and hairstyling services;

b. Advertise, practice or attempt to practice under another's name or trade name;

c. Continue to practice while knowingly having an infectious, contagious or communicable disease which could reasonably be expected to be transmitted during the course of rendering cosmetology and hairstyling services;

d. Engage in fraudulent practices for the purpose of securing financial aid from any institution or agency offering that aid to students of cosmetology and hairstyling;

e. Aid, abet, or knowingly permit a person not licensed pursuant to this act to render any of the services encompassed within the definition of cosmetology and hairstyling;

f. Fail to display a practicing license at any place at which the licensee renders services; or

g. Engage in one or more of the practices included in the definition of cosmetology and hairstyling in premises which is not a licensed [as a] shop or [a] an approved school, except as provided in section 8 of [this act] P.L.1984, c.205 (C.45:5B-8).

(cf: P.L.1995, c.82, s.5)

¹[30.] 27.¹ Section 15 of P.L.1984, c.205 (C45:5B-15) is amended to read as follows:

15. In addition to any practice declared unlawful pursuant to P.L.1978, c.73 (C.45:1-14 et seq.), it shall be unlawful for a licensed teacher to engage in the following practices:

a. Advertise in a manner which would tend to mislead potential students or consumers of cosmetology and hairstyling services offered in the school clinic;

b. Advertise[,] or teach [or attempt to open a school] under another person's name;

c. Knowingly permit students to practice upon each other or members of the public while having an infectious, contagious or communicable disease which could reasonably be expected to be transmitted during the course of rendering cosmetology and hairstyling services;

d. Demonstrate cosmetology and hairstyling services on students while knowingly having an infectious, contagious or communicable disease which could reasonably be expected to be transmitted during the course of rendering cosmetology and hairstyling services;

e. Engage in fraudulent practices for the purpose of securing financial aid from any institution or agency offering aid to students of cosmetology and hairstyling;

f. Aid, abet or permit a person not licensed pursuant to this act to teach any of the services included in the definition of cosmetology and hairstyling to registered students;

g. Teach cosmetology and hairstyling in a manner which is unsatisfactory or unsafe;

h. Fail to display in a conspicuous place a valid teacher's license at the school; or

i. Fail to accurately and truthfully record attendance by registered students.

(cf: P.L.1995, c.82, s.8)

¹[31.] 28.¹ Section 17 of P.L.1984, c.205 (C.45:5B-17) is amended to read as follows:

17. An applicant seeking licensure as a cosmetologist-hairstylist, who does not at the time of that application hold a license to practice barbering issued by the Board of Barber Examiners or the board or a license to practice beauty culture issued by the Board of Beauty Culture Control or the board, shall:

a. Demonstrate successful completion of high school or its equivalent; and

b. Demonstrate successful completion of a course in cosmetology and hairstyling consisting of:

(1) 1,200 hours of instruction at a school of cosmetology and hairstyling [licensed] approved in this State, or

(2) A program in a public school approved by the State Board of Education to offer a vocational program in cosmetology and hairstyling, or

(3) 1,200 hours of instruction at a school of cosmetology and hairstyling, beauty culture or barbering licensed in another state or a foreign country which, in the opinion of the board, offers curricula which is substantially similar to that offered at [licensed] approved schools of cosmetology and hairstyling within the State; and

c. Take and pass an examination conducted by the board, as provided by this act.

(cf: P.L.1985, c.272, s.1)

¹[32.] 29.¹ Section 18 of P.L.1984, c.205 (C.45:5B-18) is amended to read as follows:

18. Any applicant holding a license to practice beauty culture issued by the Board of Beauty Culture Control or by the board, who is seeking licensure as a cosmetologist-hairstylist shall be given two opportunities within seven years of the effective date of this act to take and pass an examination conducted by the board, which shall demonstrate to the board's satisfaction that the applicant has attained proficiency in shaving, without undertaking additional training. If the applicant does not pass the examination on either one of the two examination opportunities, the applicant may not take the examination again until the applicant can demonstrate successful completion of a course in shaving, the length of which is to be established by the board pursuant to regulation, and which is offered at:

a. A school of cosmetology and hairstyling in this State; or

b. A public school approved by the State Board of Education to offer a vocational program in cosmetology and hairstyling; or

c. A school of cosmetology and hairstyling, beauty culture or barbering licensed in another state or foreign county, which, in the opinion of the board, offers curricula which are substantially similar to that offered at [licensed] approved schools of cosmetology and hairstyling within this State.

(cf: P.L.1991, c.313, s.1)

¹[33.] 30.¹ Section 19 of P.L.1984, c.205 (C.45:5B-19) is amended to read as follows:

19. An applicant holding a license to practice barbering issued by the Board of Barber Examiners or the board, who is seeking licensure as a cosmetologist-hairstylist shall be given two opportunities within seven years of the effective date of this act to take and pass an examination conducted by the board, which shall demonstrate to the board's satisfaction that the applicant has attained proficiency in services included within the definition of beauty culture which are not encompassed within the definition of barbering, without undertaking additional training. If the applicant does not pass that examination on either one of the two examination opportunities, the applicant may not take the examination again until the applicant can demonstrate successful completion of a 500-hour course in beauty culture services offered at:

a. A school of cosmetology and hairstyling in this State; or

b. A public school approved by the State Board of Education to offer a vocational program in cosmetology and hairstyling; or

c. A school of cosmetology and hairstyling or beauty culture licensed in another state or foreign county, which, in the opinion of the board, offers curricula which are substantially similar to that offered at [licensed] approved schools of cosmetology and hairstyling within this State.

(cf: P.L.1991, c.313, s.2)

¹[34.] 31.¹ Section 22 of P.L.1984, c.205 (C.45:5B-22) is amended to read as follows:

22. An applicant seeking initial licensure as a manicurist who does not hold a license to practice manicuring issued by the Board of Beauty Culture Control must:

a. Demonstrate successful completion of high school or its equivalent; and

b. Demonstrate successful completion of a 200 hour course of instruction in manicuring at:

(1) a school of cosmetology and hairstyling [licensed] approved in this State; or

(2) a public school approved by the State Board of Education to offer a vocational program in cosmetology and hairstyling; or

(3) a school of cosmetology and hairstyling, beauty culture or barbering licensed in another state or foreign country which, in the opinion of the board, offers curricula which is substantially similar to that offered at [licensed] approved schools of cosmetology and hairstyling within this State; and

c. Take and pass an examination conducted by the board as provided by this act.

(cf: P.L.1984, c.205, s.22)

¹[35.] 32.¹ Section 23 of P.L.1984, c.205 (C.45:5B-23) is amended to read as follows:

23. An applicant for a license to teach cosmetology and hairstyling who does not hold a license to teach beauty culture issued by the Board of Beauty Culture Control shall submit to the board satisfactory evidence that he:

a. Is of good moral character;

b. Is at least 18 years of age;

c. Does not have a communicable, contagious or infectious disease;

d. Has successfully completed high school or its equivalent;

e. Holds a cosmetologist-hairstylist license issued by the board or an operator's license issued by the Board of Beauty Culture Control prior to the effective date of this act or a beautician's license issued within two years of the effective date of this act;

f. Has successfully completed a teacher training course of 500 hours consisting of practice and theory of teaching conducted at [a licensed] an approved school of cosmetology and hairstyling in this State or a school of cosmetology and hairstyling or beauty culture licensed in another state or foreign country which, in the opinion of the board, offers a curriculum which is substantially similar to that offered at [licensed] approved schools within this State;

g. Has successfully completed a 30-hour teaching methods course conducted by a college approved by the [State Board of] Commission on Higher Education and recognized by the board or a substantially equivalent teaching methods course conducted by a college in another state which is approved by the higher education authorities of that state and recognized by the board;

h. Has attained six months' employment experience in a licensed shop within this State which may be obtained prior to, at the same time as, or subsequent to the period during which the applicant is attending the teacher training course offered by [a licensed] an approved school of cosmetology and hairstyling of this State or has attained six months' licensed employment in another state or foreign country; and

i. Has successfully completed an examination conducted by the board.

(cf: P.L.1987, c.92, s.2)

¹[36.] 33.¹ Section 25 of P.L.1984, c.205 (C.45:5B-25) is amended to read as follows:

25. To be eligible to obtain a student permit, a manicurist student permit or a skin care specialty student permit, an applicant shall submit to the board satisfactory evidence that he:

a. Is a registered student in a course of instruction in cosmetology and hairstyling or manicuring or skin care, as appropriate, or is enrolled in a public school approved by the State Board of Education to offer a vocational program in cosmetology and hairstyling or manicuring or skin care, as appropriate, and has completed 600 hours of a cosmetology and hairstyling course, 100 hours of a manicuring course or 300 hours of the skin care specialty course; and

b. Does not have a communicable, contagious or infectious disease which could reasonably be expected to be transmitted during the course of rendering cosmetology and hairstyling services.

All permits shall remain valid only during the period that the student is registered at [a licensed] an approved school of cosmetology and hairstyling or enrolled in an approved vocational program and shall expire upon a student's graduation, withdrawal or leave of absence from the school or program for more than 90 consecutive days.

(cf: P.L.1995, c.82, s.10)

¹[37.] 34.¹ Section 34 of P.L.1984, c.205 (C.45:5B-34) is amended to read as follows:

34. All practicing licenses and teachers' licenses issued shall automatically expire on September 30 of the next odd numbered year following the date of license issuance. Shop [and school] licenses shall automatically expire on July 31 of the next odd numbered year following the date of license issuance.

(cf: P.L.1984, c.205, s.34)

¹[38.] 35.¹ Section 35 of P.L.1984, c.205 (C.45:5B-35) is amended to read as follows:

35. Any practicing license issued by the Board of Cosmetology and Hairstyling, the Board of Beauty Culture Control or the Board of Barber Examiners may be renewable biennially if the expired licenses are renewed within six months following expiration. Applications shall be submitted to the board and accompanied by the fee to be determined by the board. Applications for renewal submitted more than six months after the expiration of a license shall be accompanied by a restoration fee to be determined by the board. Applicants seeking restoration of a license more than five years after the license has expired shall be required to make application for initial licensure. Shop [and school] licenses shall be renewed within 90 days following expiration. [Applicants for renewal of school licenses shall provide satisfactory evidence that a bond required pursuant to section 32 of this act has been secured and shall remain valid through the next licensing period.] No shop [or school] license may be restored after 90 days and an application for initial licensure shall be submitted.

(cf: P.L.1987, c.92, s.3)

¹[39.] 36.¹ Section 36 of P.L.1984, c.205 (C.45:5B-36) is amended to read as follows:

36. A shop [or school] owner shall notify the board prior to undertaking a change of location or undergoing a change of ownership. The shop [or school] shall submit to the board an initial application for licensure. If a change of ownership results from the death or disability of a principal shareholder in a corporation, or partner in a partnership which holds a shop [or school] license, the new owner shall notify the board within six months after the change has been effected. For purposes of this section, a change of ownership shall be deemed to have occurred if more than 50% of the outstanding

stock or other financial interest is transferred.

(cf: P.L.1984, c.205, s.36)

¹[40.] 37.¹ Section 37 of P.L.1984, c.205 (C.45:5B-37) is amended to read as follows:

37. Nothing in this act shall be construed to preclude the lawful sale of merchandise or the provision of services related to the beautification of the body or the enhancement of personal appearance which are not enumerated in the definition of cosmetology and hairstyling pursuant to section 3 of [this act] P.L.1984, c.205 (C.45:5B-3), from being undertaken within a licensed shop or approved school. To the extent that the board determines that certain ancillary beautification services pose a health hazard to the public, it may adopt regulations prohibiting the services, placing restrictions on the manner in which the services are offered or designating appropriate training levels which those offering the services shall have to attain.

(cf: P.L.1984, c.205, s.37)

¹38. Section 13 of P.L.1995, c.82 (C.45:5B-22.1) is amended to read as follows:

13. An applicant seeking initial licensure as a skin care specialist shall:

a. Demonstrate successful completion of high school or its equivalent; and

b. Demonstrate successful completion of a 600 hour course of instruction in the practice of a skin care specialty at

(1) a school of cosmetology and hairstyling [licensed] approved in this State; or

(2) a public school approved by the State Board of Education to offer a vocational program in cosmetology and hairstyling; or

c. Take and pass an examination conducted by the board, as provided by P.L.1984, c.205 (C.45:5B-1 et seq.).¹

(cf: P.L.1995, c.82, s.13)

¹[41.] 39.¹ (New section) a. Upon the effective date of P.L. , c. (C. ) (now pending before the Legislature as this bill), a private proprietary school offering courses of education in cosmetology and hairstyling shall be approved by the Commissioner of the Department of Education pursuant to the provisions of that act and in accordance with the schedule developed pursuant to that act; except that the New Jersey State Board of Cosmetology and Hairstyling shall retain the authority to approve the school's curriculum.

b. The Commissioner of the Department of Education may delegate to the New Jersey State Board of Cosmetology and Hairstyling such oversight and review of the operation of schools of cosmetology and hairstyling as the commissioner deems appropriate.

¹[42.] 40.¹ (New section) The State Board of Education shall promulgate, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the rules and regulations necessary to effectuate the purposes of this act.

¹[43.] 41.¹ The following sections are repealed:

N.J.S.18A:69-1 through 18A:69-16 inclusive;

Sections 3, 4, 5, and 6 of P.L.1987, c.375 (C.18A:69-6.1 through 18A:69-6.4);

Sections 14, 32, and 33 of P.L.1984, c.205 (C.45:5B-14, 45:5B-32, and 45:5B-33.

¹[44.] 42.¹ This act shall take effect on the 90th day following enactment.

Establishes the Private Vocational School Student Tuition Protection Fund; consolidates administration of private vocational schools.