Federal Updates

U.S. Department of Education

January 15, 2020 – The Chief Operating Officer for Federal Student Aid announced the interest rates for loans made under the Federal Family Education Loan (FFEL) Program that have variable interest rates. The rates announced in this notice are in effect for the period July 1, 2019, through June 30, 2020.

The Chief Operating Officer for Federal Student Aid announced the interest rates for Federal Direct Stafford/Ford Loans (Direct Subsidized Loans), Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans), and Federal Direct PLUS Loans (Direct PLUS Loan) with first disbursement dates before July 1, 2006, and for Federal Direct Consolidation Loans (Direct Consolidation Loans) for which the application was received before February 1, 1999. The rates announced in this notice are in effect for the period July 1, 2019, through June 30, 2020. Catalog of Federal Domestic Assistance (CFDA) Number: 84.268.

January 16, 2020 – The Department announced that, in accordance with sections 413D(d)(2) and 442(d)(2) of the Higher Education Act of 1965 as amended (HEA), if a school returns more than 10 percent of its Federal Supplemental Educational Opportunity Grant (FSEOG) or Federal Work-Study (FWS) allocations in a given award year, the allocation for the second succeeding award year is reduced by the dollar amount returned unless the Secretary waives this provision. The deadline to request a waiver of the 2020–21 Award Year penalty of FWS and FSEOG for the underuse of 2018–19 Award Year funds is February 3, 2020.

January 17, 2020 – The Department published a notice in the Federal Register proposing an extension of the William D. Ford Federal Direct Loan Program Repayment Plan Selection Form information collection system. The Repayment Plan Request form serves as the means by which Direct Loan borrowers notify the Department of their choice of an initial repayment plan under the Standard, Extended or Graduated options before their loans enter repayment. The form may also be used by borrowers to request a change in the Standard, Extended or Graduated repayment plans options after their loans have entered repayment.

January 21, 2020 – The Department published a notice in the Federal Register announcing the DCIA Aging and Compliance Data Requirements for Guaranty Agencies information collection system. The Department is required to report to the U.S. Department of the Treasury (Treasury) the status and condition of its non-tax debt portfolio in accordance with the requirements of the Debt Collection Improvement Act of 1996 (DCIA) and the Digital Accountability and Transparency Act of 2014 (DATA Act). The Department is unable to prepare an accurate and compliant Treasury Report based on the data it currently receives from its Guaranty Agencies (GAs). The new guidance will require the GAs to: Age debt according to DCIA; report the eligibility of DCIA-aged debt for referral to the Treasury Offset Program (TOP); and report compliance with Form 1099-C reporting. The new reporting requirements are titled DCIA Aging and Compliance Data Requirements for Guaranty Agencies (the Requirements). The Department plans to issue the Requirements to the GAs by April 1, 2020 for implementation by the first quarter of FY 2021.

U.S. Congress – Newly Introduced Legislation of Note

H.R.5654 – To amend the Public Health Service Act to authorize grants to institutions of higher education for the establishment of schools of medicine (or branch campuses) in underserved areas, and for other purposes.

a. Status: Referred to House Committee on Energy and Commerce, 1/17/20
b. Sponsor: Rep. Jim Costa (D-CA) 2 Cosponsors

H.R.5647 – To authorize the Secretary of Education to make grants to support fire safety education programs on college campuses.

a. Status: Referred to House Committee on Education and Labor, 1/16/20
b. Sponsor: Rep. Bill Pascrell (D-NJ) 5 Cosponsors

H.R.5620 – To provide for a Federal partnership to ensure educational equity and quality.

a. Status: Referred to House Committee on Education and Labor, 1/15/20
b. Sponsor: Rep. David Trone (D-MD) 2 Cosponsors

H.R.5613 – RISE Act

a.       Summary: To amend the Higher Education Act of 1965 to allow qualified entrepreneurs to temporarily defer Federal student loan payments after starting a new business.
b.       Status: Referred to House Committee on Education and Labor, 1/15/20
c.       Sponsor: Rep. Ruben Gallego (D-AZ) 2 Cosponsors

S.3209 – A bill to authorize the Secretary of Education to make grants to support fire safety education programs on college campuses.

a. Status: Referred to Senate HELP Committee, 1/16/20
b. Sponsor: Sen. Robert Menendez (D-NJ) 0 Cosponsors

State Update

Licensure Reciprocity Bills Introduced in Virginia and Washington

There are 32 state legislatures actively meeting this week, including the legislatures in Alaska, New Mexico and Ohio, which commenced their respective 2020 legislative sessions this week. As always, AACS keep you apprised of the latest state legislative and regulatory developments of interest to member schools.

Bills were introduced in Virginia and Washington to allow one-to-one licensure reciprocity for individuals licensed in another state for at least a year. The Virginia bill is not occupation specific and the Washington State bill applies to multiple occupations, including beauty industry professions. A Virginia House Professions/Occupations and Administrative Subcommittee hearing on HB 982 was scheduled for last week but the bill remains in the Subcommittee. Washington SB 6465 was referred to the Senate Labor and Commerce Committee.

A Rhode Island bill was introduced last week to repeal the current requirement that licensed beauty industry professions be “of good moral character,” and either a citizen of the of the United States or legally permitted to be in the country. H7112, which has been referred to the House Health, Education & Welfare Committee, would also eliminate shop licensure fees.

Finally, a bipartisian group of four West Virginia delegates introduced HB 4426 last week. The measure, referred to the House Government Organization Committee, would establish cosmetology apprenticeships and repeal the requirement for shampoo assistants to have permits. While most of the apprenticeship requirements would be established by the state’s Board of Barbers and Cosmetologists, the bill specifically states that apprentice sponsors will need to be cosmetologists with at least five years of shop experience. Under current regulations, shampoo assistants must complete three hours of sanitation training with a continuing education provider, licensed school or county health board.

The text of the bills listed in this report can be found in AACS’ Bill Tracking Portal.

Please do not hesitate to contact Brian Newman at bnewman@abingdonstrategies.com or by phone at 202-491-5254 with comments or questions.

Additional Bill Introductions

Alabama SB 28
This bill would extend the sunset of the state’s Board of Cosmetology and Barbering until October 1, 2024.

Missouri SB 647
This “Fresh Start Act” bill would prohibit a state licensing authority from denying a license solely or in part because of a prior conviction of a crime, unless the crime is directly related to the duties and responsibilities for the licensed occupation.

New Jersey A607
The measure clarifies that applicants can be issued more than one practicing license under the state’s Cosmetology and Hairstyling Act.

New Jersey A1256
This bill provides that persons who, prior to moving to New Jersey, rendered barbering services in a professional capacity in another state or foreign country that does not issue licenses to render barbering services, may qualify for a temporary permit under an existing three-year pilot program. Temporary permits would be valid for a period of 120 days and can be extended if the applicant continues to meet the requirements of the pilot program and the application for issuance of a license remains pending.

New Jersey A1276
According to an official statement, the bill “provides that the New Jersey State Board of Cosmetology and Hairstyling may grant licensure to applicants who have an education equivalent to the successful completion of high school… The statutory requirement that an individual has successfully completed high school excludes New Jersey residents who have been educated in a non-traditional setting. This bill seeks to provide these applicants with an opportunity to be licensed by the board.”

New Jersey A1750
According to the official bill statement, “this bill establishes a new chair or booth rental license for qualifying individuals, who already are licensed by the New Jersey State Board of Cosmetology and Hairstyling to perform cosmetology and hairstyling services or ancillary services, in cases when these individuals engage in a business arrangement entered into by a written contract whereby they rent or lease a chair or booth from the owner of a shop that is licensed by the board. The bill specifically provides that no licensed shop owner shall enter into a chair or booth rental arrangement unless the practicing licensee holds a chair or booth rental license as provided in this bill.”

New Mexico HB 30
The bill would waive licensure fees for three year for military service members, military spouses and dependent children, and veterans.

South Dakota SB 10
This bill introduced by the Senate Committee on Commerce and Energy at the request of the Department of Labor and Regulation would require the state’s Cosmetology Commission to “allow credit for general coursework in areas not specific to the practice of cosmetology, nail technology, or esthetics, that is completed in other programs or institutions, to be applied to any course of study required for licensure.”

South Dakota SB 23
The bill would repeal the high school graduation or equivalent requirement for professions under the state’s Cosmetology Commission.

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