SB 438-FN-LOCAL - AS AMENDED BY THE HOUSE

 

03/17/2022   0836s

21Apr2022... 1422h

4May2022... 1933h

 

 

2022 SESSION

22-3002

07/11

 

SENATE BILL 438-FN-LOCAL

 

AN ACT relative to state procurement policies intended to promote the use of American materials and certain cosmetology licensure requirements.

 

SPONSORS: Sen. Sherman, Dist 24; Sen. Hennessey, Dist 1; Sen. Ricciardi, Dist 9; Sen. Birdsell, Dist 19; Sen. Soucy, Dist 18; Sen. Watters, Dist 4; Sen. Avard, Dist 12; Sen. D'Allesandro, Dist 20; Sen. Carson, Dist 14; Sen. Perkins Kwoka, Dist 21; Rep. Creighton, Hills. 38; Rep. Hamblet, Rock. 31; Rep. Malloy, Rock. 23; Rep. Potucek, Rock. 6

 

COMMITTEE: Executive Departments and Administration

 

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AMENDED ANALYSIS

 

This bill:

 

I.  Establishes the requirement, as well as waiver and fraud processes, for the use of American made steel products in all public works projects where the state administers the contract and the contract involves at least $1,000,000 state dollars.

 

II.  Modifies the requirements for nonresident licensure by the board of barbering, cosmetology, and esthetics.

 

III.  Exempts niche beauty services from occupational and shop license requirements.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/17/2022   0836s

21Apr2022... 1422h

4May2022... 1933h 22-3002

07/11

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Two

 

AN ACT relative to state procurement policies intended to promote the use of American materials and certain cosmetology licensure requirements.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  New Subparagraphs; Department of Administrative Services; Division of Procurement and Support Services; Structural Steel Defined.  Amend RSA 21-I:11, II by inserting after subparagraph (f) the following new subparagraphs:

(g)  "Structural steel" shall mean a product consisting of the elements of the structural frame that are shown and sized in the structural design documents, essential to support the design loads as defined in the 2016 American Institute of Steel Construction (AISC) code of standard practice for steel buildings and bridges 303-16.

(h)  "Domestic fabricated structural steel" shall mean an iron or steel product where all manufacturing must take place in the United States, from the initial melting stage, through fabrication, and application of coatings, except metallurgical processes involving the refinement of steel additives.  The miscellaneous steel or iron components, subcomponents, and hardware necessary to encase, assemble, and construct such components, including, but not limited to, cabinets, covers, shelves, clamps, fittings, sleeves, washers, bolts, nuts, screws, tie wire, spacers, chairs, lifting hooks, faucets, and door hinges, shall not be subject to the United States manufacturing requirement of this definition.

(i)  "Permanently incorporated product" shall mean a product that is required to remain in place at the completion of the project contract, in a fixed location, affixed to the public work to which it was incorporated and shall not mean a product that will be removed from the project at or before its completion.

2  New Paragraph; Department of Administrative Services; Division of Procurement and Support Services; Established Preference of American Made Materials in State Administered Contracts.  Amend RSA 21-I:11 by inserting after paragraph II the following new paragraph:

III.(a)  Notwithstanding any law to the contrary relating to procurement and to the extent permitted by federal law, any state administered contract for construction, reconstruction, alteration, repair, improvement, or maintenance of a public building or public works with the state shall contain a provision that the permanently incorporated iron, structural steel, and fabricated structural steel used or supplied in the performance of the contract or any subcontract as defined in RSA 21-I:11, II shall be fabricated in the United States.  Such provision shall only be required if there is at least $1,000,000 state dollars being used in the contract.

(b)  Departments and agencies of this state affected by subparagraph (a) shall identify what steel products need Buy America certification in the contract documents.

(c)  Departments and agencies of this state affected by subparagraph (a) may request a waiver from the department of administrative services, which shall provide an opportunity for public hearing and comment at least 30 days before finalizing a waiver, in the same manner as described in RSA 541-A:11.  The department of administrative services may grant a waiver upon finding that:

(1)  Application of the project would be inconsistent with the public interest;  

(2)  The product is not produced or fabricated in the United States and that it would be in the public interest to provide a waiver;

(3)  The item for which a waiver is being requested is not produced and fabricated in the United States in sufficient and reasonably available quantities and of satisfactory quality; or

(d)  A request for waiver under subparagraph (c) shall include facts and justification to support the granting of the waiver.  The response to a request shall be in writing and made available to the public upon request.  In granting a waiver, the department of administrative services shall consider all appropriate factors including, but not limited to, any cost, administrative burden, and delay that would be imposed if the provision were not waived.

(e)  Waivers granted by the department of administrative services under subparagraph (b), shall be granted on a project-by-project basis and shall be nontransferable.

(f)  If a court or federal or state agency has determined that any person intentionally affixed a "Made in America" label to structural steel under this paragraph that was not made in the United States or otherwise falsely represented that structural steel under this paragraph was produced in the United States, the department of administrative services shall withhold contract payment until the structural steel can be replaced, a waiver is granted, or the noncompliance of this paragraph is otherwise remedied.  Failure to comply or produce a satisfactory remedy to the state may result in debarment proceedings in accordance with RSA 21-I:11-c, III.

(g)  If any provision of this paragraph or application thereof is held to be invalid or in conflict with any applicable laws, this invalidity or conflict shall not affect the other provisions or applications which shall be given affect without the invalid provisions or applications, and to this end, the provisions and applications of this paragraph are severable.

3  Barbering, Cosmetology, and Esthetics; Nonresident Licensure.  Amend RSA 313-A:14 to read as follows:

313-A:14  Nonresidents.  The board shall license any applicant who is similarly licensed in any other state, provided the [other state's licensing requirements are substantially equivalent to or higher than those of this state] applicant holds a current and valid license.

4  New Paragraph; Barbering, Cosmetology, and Esthetics; Definitions; Blow-dry Styling.  Amend RSA 313-A:1 by inserting after paragraph III the following new paragraph:

III-a.  "Blow-dry styling" means the practice of shampooing, conditioning, drying, arranging, curling, straightening, or styling hair using only mechanical devices, hair sprays, and topical agents such as balms, oils, and serums.  "Blow-dry styling" includes the use and styling of hair extensions, hair pieces, and wigs, but excludes cutting hair or the application of dyes, bleach, reactive chemicals, keratin treatments, other preparations to color or alter the structure of hair, or other cosmetology services and is distinct from the practice of cosmetology.

5  Barbering, Cosmetology, and Esthetics; Definitions; Cosmetology.  Amend RSA 313-A:1, VI to read as follows:

VI.  "Cosmetology" means [arranging, dressing, curling, waving, cleansing,] cutting, bleaching, coloring, chemically altering, or similarly treating the hair of any person, and performing other work customarily performed by a cosmetologist such as giving facials, manicures, pedicures, and artificial nail enhancements[, applying makeup or eyelashes] to any person[, and removing superfluous hair].

6  Barbering, Cosmetology, and Esthetics; Definitions.  Amend RSA 313-A:1, VIII-a to read as follows:

VIII-a.  "Eyelash extension application" means the application, removal, and trimming of threadlike natural or synthetic fibers to an eyelash.  It includes the cleaning of lashes.  "Eyelash extension application" excludes the use of color agents, straightening agents, permanent wave solutions, bleaching agents, or other cosmetology services and is distinct from the practices of cosmetology and esthetics.

VIII-b.  "Fitzpatrick scale" means the following scale for classifying the 6 skin types, based on the skin's reaction to the first 10 to 45 minutes of sun exposure after the winter season:

Skin Type Sunburning and Tanning History

1 Always burns easily; never tans

2 Always burns easily; tans minimally

3 Burns moderately; tans gradually

4 Burns minimally; always tans well

5 Rarely burns; tans profusely

6 Never burns; deeply pigmented.

VIII-c.  "Makeup application" means the application of a cosmetic to enhance the appearance of the face or skin, including powder, foundation, rouge, eyeshadow, eyeliner, mascara, and lipstick.  "Makeup application" includes the application of makeup applied using an airbrush, but excludes the application of permanent makeup, tattooing, or other cosmetology services and is distinct from the practices of cosmetology and esthetics.

7  New Paragraph; Barbering, Cosmetology, and Esthetics; Definitions; Threading.  Amend RSA 313-A:1 by inserting after paragraph XV the following new paragraph:

XV-a.  "Threading" means a method of removing hair from the eyebrows, upper lip, or other body parts by using a cotton thread to pull hair from follicles.  "Threading" includes the use of over the counter astringents, gels, powders, tweezers, and scissors incidental to threading, but excludes other cosmetology services and is distinct from the practice of cosmetology and esthetics.

8  New Paragraph; Barbering, Cosmetology, and Esthetics; Shop Licensure.  Amend RSA 313-A:19 by inserting after paragraph IV the following new paragraph:

V.  The owner of a salon, barbershop, or mobile barbershop licensed under this section is responsible for:

(a)  Verifying the education, training, skills, and competence of persons who work in the owner's salon, barbershop, or mobile barbershop; and

(b)  Protecting the health and safety of customers and persons who work in the owner's salon, barbershop, or mobile barbershop.  This includes the sanitation of the facility and any equipment used in it.

9  Barbering, Cosmetology, and Esthetics; Exemptions.  Amend the section heading and introductory paragraph of RSA 313-A:25 to read as follows:

313-A:25  Exemptions.  The provisions of this chapter relative to barbering, cosmetology, esthetics, [and] manicuring, and shop licensure shall not be construed to apply to the following persons:

10  New Paragraphs; Barbering, Cosmetology, and Esthetics; Exemptions.  Amend RSA 313-A:25 by inserting after paragraph XIII the following new paragraphs:

XIV.  Persons engaged in blow dry styling and hair styling.

XV.  Persons who demonstrate the use of cosmetic beauty aid or equipment for the purpose of offering for sale to the public such cosmetic beauty aid or equipment.

XVI.  Persons engaged in blow-dry styling and makeup application for theatrical, television, film, fashion, photography, or media productions or media appearances.

XVII.  Persons engaged in eyelash extension application.

XVIII.  Persons engaged in makeup application.

XIX.  Persons engaged in threading.

11  Effective Date.  

I.  Sections 1-2 of this act shall take effect January 1, 2023.

II.  The remainder of this act shall take effect 60 days after its passage.

 

LBA

22-3002

Amended 5/9/22

 

SB 438-FN-LOCAL- FISCAL NOTE

AS AMENDED BY THE HOUSE (AMENDMENT #2022-1933h)

 

AN ACT  relative to state procurement policies intended to promote the use of American materials and certain cosmetology licensure requirements.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

Estimated Increase / (Decrease)

STATE:

FY 2022

FY 2023

FY 2024

FY 2025

   Appropriation

$0

$0

$0

$0

   Revenue

$0

Indeterminable

Indeterminable

Indeterminable

   Expenditures

$0

Indeterminable

Indeterminable

Indeterminable

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [    ] Other

 

 

 

 

 

METHODOLOGY:

This bill requires the use of American made steel products in all public works projects where the state administers the contract and the contract involves at least $1,000,000 state dollars. This bill also exempts individuals who perform eyelash extension application, blow dry styling/hair styling, makeup application, threading, persons who provide cosmetology services for theatrical purposes, etc; and persons who demonstrate use of cosmetic beauty aids from the requirements of licensure by the Board of Barbering, Cosmetology & Esthetics.  It also establishes an enforcement provisions under RSA 358-A:4 for any person to use an unfair or deceptive act or practice in the provisions of any service authorized under RSA 313-A.  The enforcement provision in this bill may have an indeterminable increase in state revenues and expenditures to the extent any violations occur.

 

The Department of Administrative Services state the portion of the bill dealing with American made steel product will result in an indeterminable impact to state General fund expenditures.  The Department states the cost impacts of using American manufactured iron, steel and manufactured goods is indeterminable due to wide-ranging price fluctuations for these goods, supply-chain shortages, and United States imposed tariffs.

 

 

The Office of Professional Licensure and Certification (OPLC) states the portion of the bill dealing with certain cosmetology licensure requirements will result in an indeterminable fiscal impact on State revenue and expenditures.  OPLC states they do not capture in its licensing data the number of individuals performing specific services proposed in this bill.  However, at the close of FY 21, there were 8,447 licensed cosmetologists, 1,993 licensed esthetician, 1,727 licensed booths, and 2,130 licensed shops, who presently pay the following fees per biennium:

 

If all licensure were exempt the maximum loss in revenue each fiscal year would be $380,437.50 ($760,875 ÷ 2).  OPLC states they do not now how many individuals, booths, and shops would no longer renew under the proposed legislation.  Additionally they are not able to quantify, for similar reasons, any reduction in expenditure of resources.

 

It is assumed the fiscal impact would not occur until after FY 2023.

 

AGENCIES CONTACTED:

Department of Administrative Services and Office of Professional Licensure and Certification