RULES AND REGULATIONS
Title 49—PROFESSIONAL AND VOCATIONAL STANDARDS
STATE BOARD OF COSMETOLOGY
[49 PA. CODE CH. 7]
Fees
[52 Pa.B. 6846]
[Saturday, November 5, 2022]The State Board of Cosmetology (Board) and the Acting Commissioner of the Bureau of Professional and Occupational Affairs (Acting Commissioner) amend § 7.2 (relating to fees) to read as set forth in Annex A.
Effective Date
This final-form rulemaking will be effective upon notice or publication in the Pennsylvania Bulletin. The initial graduated increase for application fees will be implemented on the date of publication of this final-form rulemaking in the Pennsylvania Bulletin and then on July 1, 2024. The increased biennial renewal fees will be effective on the date of publication of this final-form rulemaking in the Pennsylvania Bulletin, which the Board anticipates will increase the biennial renewal fees beginning with the February 1, 2023—January 31, 2025, renewal period. This fee increase will impact licenses that expire on January 31, 2023, and licenses that expire on January 31, 2024. The increased biennial renewal fees will increase again on July 1, 2024, which will increase the biennial renewal fees beginning with the February 1, 2025—January 31, 2027, renewal period. This fee increase will impact licenses that expire on January 31, 2025, and also licenses that expire on January 31, 2026, and thereafter.
Statutory Authority
Under section 16(a) of the Cosmetology Law (act) (63 P.S. § 522(a)), the Board shall, by regulation, fix fees for: cosmetology salon owners, teachers, cosmetologists, nail technicians, nail technology salons, estheticians, esthetician salons, natural hair braiders, natural hair braiding salons, students and cosmetology schools and registration fees for apprentices. Section 16(a) also provides authority to fix fees for the biennial renewal of cosmetology salon owners, school instructors, cosmetologists, nail technicians, estheticians, natural hair braiders, cosmetology schools, nail technology salons, esthetician salons and natural hair braiding salons.
Additionally, under section 16(c) of the act, all fees required under this act shall be fixed by the Board by regulation and shall be subject to the Regulatory Review Act (71 P.S. §§ 745.1—745.14). ''If the revenues raised by fees, fines and civil penalties imposed pursuant to this act are not sufficient to meet expenditures over a two-year period, the board shall increase those fees by regulation so that the projected revenues will meet or exceed projected expenditures.'' Section 16(d) of the act provides, ''If the Bureau of Professional and Occupational Affairs determines that the fees established by the board pursuant to subsection (c) of this section are inadequate to meet the minimum enforcement efforts required by this act, then the bureau, after consultation with the Board and subject to the ''Regulatory Review Act,'' shall increase the fees by regulation in an amount that adequate revenues are raised to meet the required enforcement effort.''
The Acting Commissioner is appointed by the Governor and has a number of powers and duties. Specifically, under section 810(a)(7) of The Administrative Code of 1929 (71 P.S. § 279.1(a)(7)), the Acting Commissioner has the power and duty, ''[u]nless otherwise provided by law, to fix the fees to be charged by the several professional and occupational examining boards within the department.''
Background and Purpose of Amendment
This final-form rulemaking increases application fees to reflect updated costs of processing applications and increases the Board's biennial renewal fees to ensure its revenue meets or exceeds the Board's current and projected expenses. This final-form rulemaking increases the following application fees on a graduated basis: cosmetologist, nail technician, esthetician, natural hair braider, cosmetology teacher, limited practice teacher (nail technician teacher, esthetician teacher and natural hair braider teacher) cosmetology salon, limited practice salon (nail technician salon, esthetician salon and natural hair braider salon) cosmetology school, licensure by reciprocity and registration of cosmetology apprentice. Approximately 11,029 applicants will be impacted annually by the increased application fees.
The Board is also implementing graduated biennial renewal fee increases for the following licenses, certificates and registrations: cosmetologist, nail technician, esthetician, natural hair braider, cosmetology teacher, limited practice teacher (nail technician teacher, esthetician teacher, and natural hair braider teacher) cosmetol-ogy salon, limited practice salon (nail technician salon, esthetician salon and natural hair braider salon) andcosmetology school. There are approximately 125,467 individuals who possess current licenses, certificates and registrations issued by the Board who are required to pay more to renew their licenses, certifications or registrations. Licensees under the Board have different renewal periods; some renew in the 2023—2025 biennial renewal period and others renew in the 2025—2027 renewal period.
In addition, this final-form rulemaking increases other miscellaneous fees including, approval of cosmetology school supervisor application, change in cosmetology salon or limited practice salon (inspection required), change in cosmetology salon or limited practice salon (no inspection required), change in cosmetology school (inspection required), change in cosmetology school (no inspection required), reinspection of cosmetology salon or limited practice salon or cosmetology school, certification of student or apprentice training hours and verification of license, registration, permit or approval.
Under section 16 of the act, the Board is required to support its operations from the revenue it generates from fees, fines and civil penalties. The act further provides that the Board shall increase fees when expenditures outpace revenue. The majority of general operating expenses of the Board are borne by the licensee population through revenue generated by the biennial renewal of licenses. A small percentage of its revenue comes from application fees, fines and civil penalties. Board expenses are the result of direct charges, timesheet-based charges and licensee-based charges. On an annual basis, the Board reviews its fiscal status and receives an annual report from the Department of State's Bureau of Finance and Operations (BFO) regarding the Board's income and expenses.
The Board receives an annual report from the Department of State's BFO regarding the Board's income and expenses. The Board's revenue and expenses for Fiscal Years (FY) 2018-2019 and 2019-2020 and the projected revenue and expenses through FY 2021-2022, and FY 2022-2023, are as follows: during FY 2018-2019, the Board received revenue of $5,257,912.96 and incurred expenses of $5,171,879.74, and ended with a deficit of $1,674,126.54, during FY 2019-2020, the Board received revenue of $4,942,576.49 and incurred expenses of $5,409,577.32, and ended with a deficit of $2,140,868.37, during FY 2020-2021, the Board received revenue of $5,256,402.78 and incurred expenses of $5.36 million, and ended with a deficit of $2,244,724.59, and for combined FYs 2021-2022 and 2022-2023, the Board is expected to generate revenue of $10,616,000, incur expenses of $11,093,000, and end with a deficit of $2,721,724.59.
Based on the information presented by the BFO, the revenues generated by fees, fines and civil penalties imposed in accordance with the provisions of the act are not sufficient to meet expenditures over a 2-year period.
Description of Amendments
The Board amends § 7.2 to set forth graduated fee schedules for application fees, biennial renewal fees and other fees. The Board also deletes the existing fee schedule and adds a new graduated fee schedule. Subsection (a) lists the graduated schedule of fees for applications for licensure, certification and registration with corresponding fees and effective dates. The Board adds subsection (b), which lists the graduated schedule of fees and corresponding effective dates for biennial license renewal. The Board also adds subsection (c), which lists other fees not associated with a profession or type of facility.
Under subsection (a), application fees increase on a graduated level for the licenses and registrations of cosmetologists, nail technicians, estheticians, natural hair braiders, cosmetology teachers, limited practice teacher (nail technician teacher, esthetician teacher and natural hair braider teacher) cosmetology salon, limited practice salon (nail technician salon, esthetician salon and natural hair braider salon) cosmetology school, licensure by reciprocity and registration of cosmetology apprentices. The application fees are increased on a graduated basis so that the application fees collected during each biennium reflect the anticipated costs of processing applications for that biennium. These fees are designed to cover the cost to process applications and are borne by individual applicants.
Under subsection (b), biennial renewal fees also increase on a graduated basis for cosmetologist, nail technician, esthetician, natural hair braider, cosmetology teacher, limited practice teacher (nail technician teacher, esthetician teacher and natural hair braider teacher) cosmetology salon, limited practice salon (nail technician salon, esthetician salon and natural hair braider salon) and cosmetology school.
Other miscellaneous application fees are listed under subsection (c), including approval of cosmetology school supervisor application, change in cosmetology salon or limited practice salon (inspection required), change in cosmetology salon or limited practice salon (no inspection required), change in cosmetology school (inspection required), change in cosmetology school (no inspection required), reinspection of cosmetology salon or limited practice salon or cosmetology school, certification of student or apprentice training hours and verification of license, registration, permit or approval. These fees increase on a graduated schedule on the date of publication of this final-form rulemaking in the Pennsylvania Bulletin, and July 1, 2024.
The new fee structure is projected to produce biennial revenues of $12,863,000 in FYs 2022-2023 through 2023-2024, which will allow the Board to meet or exceed its projected expenditures of $11.260 million and reduce its deficit. The biennial revenues of $14.792 million in FYs 2024-2025 through 2025-2026 will allow the Board to meet or exceed its projected expenditures of $11.598 million which will eliminate the Board's deficit.
Comments to the Proposed Rulemaking
The Board published a notice of proposed rulemaking at 52 Pa.B. 2588 (April 30, 2022), for 30 days of public comment. The Board did not receive any public comments relating to the proposed rulemaking. The Independent Regulatory Review Commission (IRRC) reviewed the proposed rulemaking and informed the Board that it had no objections, comments, or recommendation to offer on the proposed rulemaking. The Board did not receive any comments from the House Professional Licensure Committee (HPLC) or the Senate Consumer Protection and Professional Licensure Committee (SCP/PLC) as part of their review of proposed rulemaking under the Regulatory Review Act.
Fiscal Impact and Paperwork Requirements
The amendments increase application and biennial renewal fees on a graduated basis. The applicants, licensees and registrants are required to comply with the regulation. The fees may be paid by applicants, licensees or registrants or may be paid by their employers, should their employers choose to pay these fees. This final-form rulemaking should have no other fiscal impact on the private sector, the general public or political subdivisions of the Commonwealth.
Approximately 11,029 applicants are impacted by the increased application fees. Specifically, the number of applicants effected are as follows: 4,000 cosmetologists, 925 nail technicians, 1,350 estheticians, 15 natural hair braiders, 155 cosmetology teachers, 1,325 cosmetology salons, 10 cosmetology schools, 2 nail technician teachers, 8 esthetician teachers, 1 natural hair braider teacher, 140 nail technician salons, 160 esthetician salons, 5 natural hair braider salons, 578 licensures by reciprocity and 20 cosmetology apprentices.
Based on the graduated application fee increases, the total economic impact per fiscal year is as follows:
FY 2022-2023: $182,483
FY 2023-2024: $182,483
FY 2024-2025: $ 23,094
FY 2025-2026: $ 23,094
Total: $411,154Approximately 125,467 licensees are impacted by the increased biennial renewal fees. Specifically, the number of licensees effected are as follows: 14,809 nail technicians, 8,602 estheticians, 77,854 cosmetologists, 54 natural hair braiders, 7,324 cosmetology teachers, 11,930 cosmetology salons, 158 cosmetology schools, 15 nail technician teachers, 41 esthetician teachers, 3 natural hair braider teachers, 2,306 nail technician salons, 2,359 esthetician salons and 12 natural hair braider salons who possess current licenses and registrations issued by the Board who are required to pay more to renew their licenses and registrations. Current licensed individuals are affected as follows:
Based on the previous biennial renewal fee increases, the economic impact is as follows:
FY 2022-2023: $963,735
FY 2023-2024: $918,270
FY 2024-2025: $963,735
FY 2025-2026: $918,270
Total: $3,764,010Thus, the total economic impact to applicants, licensees, registrants or employers, if employers choose to pay application or licensing fees, is $4,175,164. This amount reflects the economic impact that will occur as a result of the fee increases.
This final-form rulemaking requires the Board to revise its printed and online application forms. The amendments will not create additional paperwork for the regulated community or for the private sector.
Sunset Date
The Board continuously monitors the effectiveness of its regulations. Therefore, no sunset date has been assigned. Additionally, the BFO provides the Board with an annual report detailing the Board's financial condition. In this way, the Board continuously monitors the adequacy of its fee schedule.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P.S. § 745.5(a)), on April 14, 2022, the Board submitted a copy of this proposed rulemaking published at 52 Pa.B. 2588 and a copy of a Regulatory Analysis Form to IRRC and to the Chairpersons of HPLC and SCP/PLC for review and comment. A copy of this material is available to the public upon request.
Under section 5(c) of the Regulatory Review Act, the Board shall submit to IRRC, the HPLC and the SCP/PLC copies of the comments received during the public comment period, as well as other documents when requested. No public comments were received. The Board also received no comments from the HPLC, SCP/PLC or IRRC.
Under section 5.1(a) of the Regulatory Review Act (71 P.S. § 745.5a(a)), on August 10, 2022, the Board delivered this final-form rulemaking to IRRC, the HPLC and the SCP/PLC. Under section 5.1(j.2) of the Regulatory Review Act, the final-form rulemaking was deemed approved by the HPLC and the SCP/PLC on September 14, 2022. Under section 5.1(e) of the Regulatory Review Act, IRRC met on September 15, 2022, and approved the final-form rulemaking.
Additional Information
Additional information may be obtained by writing to Valerie Eaton, Board Administrator, Bureau of Professional and Occupational Affairs, State Board of Cosmetology, P.O. Box 2649, Harrisburg, PA 17105-2649, St-COSMETOLOGY@pa.gov.
Findings
The State Board of Cosmetology and the Acting Commissioner find that:
(1) Public notice of intention to adopt a regulation at 49 Pa. Code Chapter 7, was given under sections 201 and 202 of the Act of July 31, 1968 (P.L. 769, No. 240) (45 P.S. §§ 1201 and 1202), referred to as the Commonwealth Documents Law and the regulations promulgated under those sections at 1 Pa. Code §§ 7.1 and 7.2 (relating to notice of proposed rulemaking required; and adoption of regulations).
(2) A public comment period was provided as required by law.
(3) This final-form rulemaking does not include any amendments that would enlarge the scope of the proposed rulemaking published at 52 Pa.B. 2588.
(4) This final-form rulemaking is necessary and appropriate for the regulation of the practice of cosmetology in this Commonwealth.
Order
The Board therefore orders that:
(A) The regulations of the State Board of Cosmetologists, 49 Pa. Code, Chapter 7, are amended by amending § 7.2 to read as set forth in Annex A.
(B) The Board shall submit a copy of this final-form rulemaking to the Office of the Attorney General and the Office of General Counsel for approval as required by law.
(C) The Board shall submit this final-form rulemaking to IRRC, the HPLC and the SCP/PLC as required by law.
(D) The Board shall certify this final-form rulemaking and shall deposit it with the Legislative Reference Bureau as required by law.
(E) The final-form rulemaking shall take effect immediately upon notice or publication in the Pennsylvania Bulletin.
TAMMY O'NEILL,
Chairperson
ARION R. CLAGGETT,
Acting Commissioner(Editor's Note: See 52 Pa.B. 6282 (October 1, 2022) for IRRC's approval order.)
Fiscal Note: Fiscal Note 16A-4520 remains valid for the final adoption of the subject regulation.
Annex A
TITLE 49. PROFESSIONAL AND VOCATIONAL STANDARDS
PART I. DEPARTMENT OF STATE
Subpart A. PROFESSIONAL AND OCCUPATIONAL AFFAIRS
CHAPTER 7. STATE BOARD OF COSMETOLOGY
GENERAL PROVISIONS § 7.2. Fees.
(a) An applicant for initial application and registration shall pay the following fees:
Effective November 5, 2022 Effective July 1, 2024 Cosmetologist $25 $26 Nail technician $25 $26 Esthetician $25 $26 Natural hair braider $25 $26 Cosmetology teacher or limited practice teacher $25 $26 Cosmetology salon or limited practice salon $135 $142 Cosmetology school license $220 $231 Licensure by reciprocity $85 $89 Registration of cosmetology apprentice $75 $79 (b) An applicant for biennial renewal shall pay the following fees:
Effective November 5, 2022 Effective July 1, 2024 Nail technician $82 $97 Esthetician $82 $97 Cosmetologist $82 $97 Natural hair braider $82 $97 Cosmetology teacher or limited practice teacher $120 $135 Cosmetology salon or limited practice salon $129 $144 Cosmetology school license $300 $315 (c) An applicant for other miscellaneous applications shall pay the following fees:
Effective November 5, 2022 Effective July 1, 2024 Approval of cosmetology school supervisor application $31 $32 Change in cosmetology salon or limited practice salon (inspection required) $100 $105 Change in cosmetology salon or limited practice salon (no inspection required) $43 $45 Change in cosmetology school (inspection required) $125 $131 Change in cosmetology school (no inspection required) $69 $72 Reinspection of cosmetology salon or limited practice salon or cosmetology school $87 $91 Certification of student or apprentice training hours $56 $58 Verification of license, registration, permit or approval $20 $21
[Pa.B. Doc. No. 22-1688. Filed for public inspection November 4, 2022, 9:00 a.m.]
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