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Reason #1 to Attend AACS Annual Convention and Expo Sep 27 – 30 | MGM Grand Hotel, Las Vegas, NV The 2019 Annual Convention & Expo is next week. Our countdown has reached the #1 reason to attend: YOU. Where else will you get to mix and mingle, share tips and gain expertise from those who are also leading beauty schools across the nation? From exploring business governance and succession plans with other family-owned schools; frank discussions on "the good, the bad, and the ugly" of school ownership, management and leadership; to case studies of school owners who sued their states over regulations - you will walk away from Las Vegas with action plans you can implement when you return home. 
In addition to updates recent federal and state regulations, you’ll learn best practices in beauty school compliance, and engaging with the media. Learn from other school owners about best practices and tips to streamline your operations. Join us in Las Vegas as we unite to learn, engage, and connect around the Power of One. For the full list of scheduled events please click here. DON’T FORGET TO PLAN FOR... A scooter: If you need to rent an electric convenience vehicle (aka scooter), contact the MGM Bell Desk or Scooterbug to reserve one.
The schedule: Don’t forget to download the AACS app for the event schedule, speakers, exhibitors and connect with other attendees. Save the dates! CEA & AMP 2020
Member Benefits
Beauty Changes Lives Takes Make Your Mark to ISPA Community During the ISPA Conference & Expo September 10-13, attendees from around the nation learned how spas and brands are connecting with Beauty Changes Lives’ Make Your Mark campaign. Targeting Gen Z, the campaign showcases the pathways and potential available to licensed beauty and wellness professionals. Make Your Mark also responds to growing demand for licensed professionals in all sectors of the beauty industry. In 10 years, there could be 1.3 million beauty jobs left vacant – a statistic that is rallying spas, brands, and salons to support beauty education. Watch the video and learn more about this campaign here.
GRC News
GRC News Federal Updates U.S. Department of Education September 10, 2019 – The Department announced that it will be sending institutions participating in the Perkins Loan program a letter regarding the amount and deadlines by which the institutions must return to the Department the Federal Share and remove and return to the institution the Institutional share of the Perkins Loan Revolving Fund. Institutions must return to the Department only the Federal share that has been requested. September 13, 2019 – The Department provides notice of the re-establishment of a matching program between the ED and the Department of Homeland Security, U.S. Citizenship and Immigration Services. ED seeks access to information contained in the DHS-USCIS database for the purpose of verifying immigration status of applicants for assistance for title IV federal student aid. September 16, 2019 – The Department published a notice in the Federal Register announcing the availability of funds and the application deadline for new grants to institutions of higher education (IHEs) under the Emergency Assistance to Institutions of Higher Education (2019 EAI) Program, Catalog of Federal Domestic Assistance (CFDA) number 84.938T, under title VIII of the Additional Supplemental Appropriations for Disaster Relief Act of 2019 for education-related disaster recovery activities. The Department published a notice in the Federal Register proposing to extend the Foreign Schools Eligibility Criteria Apply to Participate in Title IV HEA Programs. The Department posted an electronic announcement reminding institutions that the Secretary will require assignment to the Department of all Perkins loans that have been in default for two or more years. The Department will notify institutions individually of their obligation to provide documentation of their collection efforts on these loans and the deadline by which loans without documentation must be assigned after the next Fiscal Operations and Application to Participate (FISAP) is filed in October 2019. September 30, 2019 – Deadline for electronically transmitting Pell Grant and Ira and Afghanistan Service Grant records for the 2018-2019 Award Year to the Common Origination and Disbursement (COD) System- see more here Processing deadline to submit TEACH Grant award and disbursement records is 9 p.m. ET. However, for actual disbursements to generate the appropriate funding level increase in G5 prior to the scheduled G5 shutdown, they must be received, and subsequently accepted, by the COD System no later than 8 a.m. ET on Monday, September 30, 2019. Schools should plan final closeout efforts accordingly- see more here October 1, 2019 – Deadline for schools to submit 2020–21 FISAP electronically and mail in the required signature page - see more here Deadline for institutions, that did not choose to early implement the rescission of the GE rule, to report GE data for the 2018-2019 Award Year to the National Student Loan Data System (NSLDS)- see more here Looking Ahead – 2019 FSA Training Conference. The Federal Student Aid Office has opened registration for the 2019 FSA Training Conference scheduled for December 3 to 6 in Reno, Nevada. The FSA Training Conference is training provided for financial aid professionals by the government for those institutions receiving Title IV funds and is the largest training program in the United States serving the financial aid community. In 2018 more than 2,000 unique schools registered for the conference. Registration is free. U.S. Congress – Newly Introduced Legislation of Note S.2471 – A bill to give middle-class families access to the maximum Federal Pell Grant, to increase college transparency, and State maintenance of efforts, and for other purposes. a. Status: Referred to the Senate Committee on Finance, 9/12/19 b. Sponsor: Sen. Martin Heinrich (D-NM) 0 Cosponsors H.R. 4327 – To amend the Higher Education Act of 1965 to promote comprehensive campus mental health and suicide prevention plans, and for other purposes a. Status: Referred to the House Committee on Education and Labor, 9/12/19 b. Sponsor: Rep. Susan Wild (D-PA) 10 Cosponsors H.R. 4310 – Public Service Expansion Act a. Status: Referred to the House Committee on Education and Labor, 9/12/19 b. Sponsor: Rep. Brendan Boyle (D-PA) 0 Cosponsors H.R. 4308 – To amend the Higher Education Act of 1965 to establish an emergency grant aid program, and for other purposes a. Status: Referred to the House Committee on Education and Labor, 9/12/19 b. Sponsor: Rep. Joseph Morelle (D-NY) 7 Cosponsors H.R. 4298 – Pell Grant Restoration Act a. Status: Referred to the House Committee on Education and Labor, 9/12/19 b. Sponsor: Rep. Jahana Hayes (D-CT) 12 Cosponsors H.R. 4253 – Empower Parents in College Act of 2019 a. Status: Referred to the House Committee on Education and Labor, 9/9/19 b. Sponsor: Rep. Dusty Johnson (R-SD) 0 Cosponsors H.R. 4245 – HOPE (Heightening Opportunities for Pathways to Education) for FAFSA Act a. Status: Referred to the House Committee on Education and Labor, 9/9/19 b. Sponsor: Rep. Lucy McBath (D-GA) 1 Cosponsors H.Res.551 – Emphasizing the importance of addressing participation in career and technical education a. Status: Referred to the House Committee on Education and Labor, 9/10/19 b. Sponsor: Rep. Robert Wittman (R-VA) 0 Cosponsors
State Updates California Legislature Passes Data Reporting and Independent Contractors Bills This week finds eight state legislatures actively meeting. We will however focus on California where the legislature passed two bills of interest last week before recessing for the year on Friday the 13th. Last Tuesday, the Senate voted unanimously (39 to 0) to pass a “labor market outcome data reporting” bill – AB 1340. The Assembly subsequently cleared the bill for Governor Gavin Newsom’s (D) signature by unanimously (75 to 0) concurring with Senate Amendments. As previously reported, AB 1340 was originally drafted as a state gainful employment bill. While the adopted measure does not contain a debt-to-earning metric leading to potential enrollment limitations, it still requires cosmetology school and other institutions regulated by the Bureau for Private Postsecondary Education (BPPE) to report individual identifying information, the program the graduate was enrolled in, and specified student loan debt information. The bill would require the bureau to match the data reported by institutions pursuant to this provision with wage data from the Employment Development Department, as specified. The bill would also require the bureau to post online “relevant program-level and institution-level statistics presented line in terms of easily understood labor market measures and consistent with all pertinent state and federal privacy laws, regarding the earnings levels of graduates and the student debt information reported.” Senate amendments clarify that the bill’s provisions pertain to a graduate completing a program at a private career schools after January 1, 2020. They also state that the provisions related to reporting, matching, and internet posting would not be operative until the Director of Consumer Affairs certifies that the bureau’s information technology system has been updated to process the data stipulated in the bill. The Senate also adopted AB 5 by a vote of 29 to 11 last Tuesday. A day later the Assembly cleared the bill for Governor Newsom’s signature by voting 61 to 16 to concur with Senate amendments. The passed bill includes Senate language allowing specified beauty industry professionals – cosmetologists, barbers, electrologists, estheticians, natural hair braiders, and manicurists (until January 1, 2022) – to be an independent contractor if the following criteria are met: “(I) Sets their own rates for services performed, provided the rate is equal to or greater than two times the minimum wages for hours worked and is paid directly by their clients. (II) Sets their own hours of work and has sole discretion to decide which clients from who they will provide services. (III) Has their own book of business and schedules their own appointments. (IV) Maintains their own business license for the services offered to clients. (V) If the individual is performing services at the location of the hiring entity, then the individual issues a Form 1099 to the salon or business owner from which they rent their business space. (VI) This subdivision shall become inoperative, with respect licensed manicurists, on January 1, 2022.” The bill will become effective January 1, 2020 if Governor Newsome signs the bill as expected. The Senate Business, Professions and Economic Development Committee and the Assembly Business and Professions Committee have also begun their sunset review of California’s State Board of Barbering and Cosmetology. As I previously reported, a Joint Sunset Review Oversight Hearing was conducted before Labor Day. Representatives from the Board were the featured witnesses. Fred Jones from the Professional Beauty Federation of California and Wendy Cochran from California Esthetics Alliance also testified. Senator Steven Glazer, the Senate chair, indicated that a second hearing will likely be conducted this fall. California schools and others interested can view the hearing at this link. Additionally, California bills to impose an 85-15 Rule and establish and revise incentive compensation prohibitions will carry over to 2020. The text of the California bills mentioned in this update can be found in AACS’ Bill Tracking Portal
Please do not hesitate to contact me at bnewman@abingdonstrategies.com or by phone at 202-491-5254 with comments or questions.
Members in the News
AACS is working with Plus Communications to better position AACS members to achieve our legislative and regulatory objectives at the federal level, ensuring lawmakers don’t pass misguided legislation that could severely harm our industry. We need your help to tell the industry’s compelling story and save our industry from the negative consequences of harmful legislation. You can help by donating to help us fund this important public relations campaign, and by sharing stories and testimonials. To submit a donation, please click here. To submit a story, please click here. 
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