Relates to authorizing the secretary of state to order the cessation of unlicensed appearance enhancement activity and to register trainees in the practice of nail specialty.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7630A
SPONSOR: Kim (MS) TITLE OF BILL: An act to amend the general business law, in relation
to authorizing the secretary of state to order the cessation of unli-
censed appearance enhancement activity and to register trainees in the
practice of nail specialty
PURPOSE:
This bill would amend Article 27 of the General Business Law ("GBL") to
authorize the Secretary of State ("Secretary") to order the cessation of
unlicensed appearance enhancement activity. This bill would also author-
ize the Department of State ("Department") to register trainees in the
practice of nail specialty.
SUMMARY OF PROVISIONS:
Section 1 of the bill would amend GBL § 400 to define a "trainee" as
someone pursuing, in good faith, a course of study in the practice of
nail specialty under the tutelage and supervision of a licensed nail
practitioner. A trainee must also be employed by a licensed appearance
enhancement business.
Section 2 of the bill would amend GBL § 401 to assure that no person
shall act as a trainee or perform any service without having first
registered with the Department.
Section 3 of the bill would amend GBL § 404 to authorize the Secretary
to promulgate rules and regulations to protect the health, safety and
welfare of appearance enhancement licensees and trainees.
Section 4 of the bill would amend GBL § 404-b to require appearance
enhancement businesses to make gloves and face masks available to nail
salon employees and trainees.
Section 5 of the bill would amend GBL § 406 to grant a trainee a nail
specialty license after he or she has been actively engaged in an
apprenticeship for a period of one year and has taken a course of study
set forth by the Secretary.
Section 6 of the bill would add a new GBL § 408-a to set forth require-
ments and restrictions related to trainee registration. A certificate
for registration as a trainee shall be for one year, renewable for a
second year, and may be renewed for additional terms at the Secretary's
discretion.
Section 7 of the bill would amend GBL § 409 to allow the Secretary to
impose a fee not to exceed $20 for trainee registration if the Secretary
determines that it is in the public's best interest to do so.
Section 8 of the bill would amend GBL § 410 to allow the Secretary to
suspend or revoke a registration issued to a trainee. This section would
also add compelling prostitution and sex trafficking to the list of
crimes for which a license or registration may be suspended or revoked.
Section 9 of the bill would amend GBL § 410 to authorize the Secretary
to issue a notice of violation to an appearance enhancement practitioner
or business operating without a valid license and subject them to an
adjudicatory proceeding. Appearance enhancement businesses would be
afforded an opportunity to be heard no sooner than three days from
delivery of such notice of violation. Practitioners would be afforded
an opportunity to be heard no sooner than ten days from delivery of such
notice of violation. If documentary proof that the deficiency is cured
is not provided at or before such hearing, the Secretary may issue an
immediate order directing the cessation of any activity for which an
appearance enhancement license is required.
Section 9 of the bill would further amend GBL § 410 to subject an
appearance enhancement business operating without a bona or liability
insurance to an adjudicatory proceeding held pursuant to GBL § 411.
Enforcement may only be effectuated if the Department of Financial
Services has certified in writing that such financial products are read-
ily available.
Section 10 of the bill would amend GBL § 411 to make the department's
current procedure for denial of a license applicable to trainee regis-
trations. This section would also make the department's current proce-
dures for revocation or suspension of a license, and imposing fines or
reprimands on licensees, applicable to trainee registrations.
Section 11 of the bill would amend GBL § 412 to set forth new civil and
criminal penalties for the unlicensed operation of an appearance
enhancement business. This section would also set forth a new civil
penalty for the operation of an appearance enhancement business without
the required bond or liability coverage.
Section 12 of the bill would establish an immediate effective date,
except that newly created GBL § 410(2)(c) and § 412(3) would take effect
sixty days after the Department of Financial Services certifies in writ-
ing to the Secretary that any bonds or liability insurance required by
the Department is readily available to businesses.
EXISTING LAW:
Article 27 of the GBL governs the issuance of appearance enhancement
licenses, but it does not provide an expedited method for the Secretary
to order appearance enhancement businesses to cease and desist when
operating unlicensed. Further, the operation of appearance enhancement
businesses without a license is a violation of law punishable by civil
penalties, and is not considered a misdemeanor. Finally, current law
does not permit traineeships for appearance enhancement licensees.
STATEMENT IN SUPPORT:
Many nail salon employees endure unsafe working conditions and unfair
labor practices. The unlicensed operation of appearance 'enhancement
businesses, inadequate ventilation, wage theft, and lack of (i) personal
protective equipment, (ii) workers' compensation insurance coverage, and
(iii) business liability insurance, jeopardizes the health and safety of
employees and patrons alike. The Secretary should be afforded the abili-
ty to act swiftly to protect nail salon employees and the public.
This bill would provide the Secretary the necessary tools to order the
cessation of unlicensed or uninsured business activities and appropri-
ately penalize unscrupulous operators. This bill would also provide a
critical new path to employment through a trainee program.
BUDGET IMPLICATIONS:
Revenue derived from increased statutory compliance would offset any
costs associated with this bill.
EFFECTIVE DATE:
This act shall take effect immediately.
