Archive for March, 2012

Legislative Update February 10 2012

Legislative Update

 February 10, 2012

 

The Division of Financial Management reports that January General Fund revenue collections were $6.3 million above projections putting cumulative collections through January at 0.9% above projections. Taking this revenue into account, the current year estimated ending balance is $113.6 million more than JFAC assumed when it set the budget last session.  Cumulative collections through January were $83.5 million or 5.8% more than last year.  JFAC continues to hear agency budgets for another week, and will begin setting budgets on February 21st

One of financial crisis’s the state and most states are dealing with is the huge amount of infrastructure that has not been funded over the past several years.  The Division of Public Works has $80 million in request for repairs and replacement of public buildings.  The current amount available for such projects is $17 million, far short of needs.

Late last fall and early in the session, efforts by the Governor and the Department of  Insurance on developing a Health Insurance Exchange took top billing.  In recent weeks, legislators’ increasingly balked at taking $20 million in federal funds to develop a program associated with the federal health care act (Obama care).  They feel that taking this money is inappropriate, given that the state is suing the federal government alleging that the law violates the US constitution.  The Insurance Exchange proposal brought forth by the Department has now firmly stalled and will not move forward.  In the meantime, we hear reliable rumors that another Exchange proposal is in the works, to be brought forth by the business community.  Detail is not yet known.  In a related matter, Rep. Janice McGeachin, Chair of the House Health and Welfare Committee, today introduced a bill to create a Federal Health Care Reform Oversight Committee to provide legislative oversight and policy direction to any state effort to comply or implement any law or regulation regarding health care coming down from the federal government.  If this bill should become law, all health care reform measures must pass through this committee before being considered by the legislature or any state agency.  Regardless of passage of this legislation, its introduction sends a clear message to all that the chances for passage of any Insurance Exchange proposal related to the federal Patient Protection Affordable Care Act are very slim.  Any such proposal must go through Rep. McGeachin’s committee.

            The anti-texting bill has again brought a lot of activity.  The day of the hearing, several dozen motorcycle groups were at the capitol to oppose the section in the bill that would allow police officers to text and drive.  In addition another bill was introduced that would increase the penalty for texting a driving if it was done in conjunction with another traffic violation.

 

 

 

 

 

 

 

 

Cosmetology:

 

Taxes: 

HB 354 would implement a sales tax on services and delete some exemptions is not moving forward.  The bill is fatally flawed and not supported.  There have been three hearings in the Senate Local Government and Taxation Committee over the past several weeks.  These have included presentations for and against getting rid of the personal property tax, as well as a general overview of where Idaho’s tax structure compares to the rest of the country and surrounding states.  The Governor did propose a tax cut of some kind to the tune of $45 million.  However, the revenue projection committee’s projection for the 2013 fiscal year is $33million less than the Governor’s projection so there is talk that there may not be enough money for a tax cut this year. 

This legislation is fatally flawed and is not moving forward. 

 

SB 1234:

This legislation would require that propriety schools make disclosures to students 15 days prior to entering into any contract or binding agreement with them. The required disclosures for the selected course of study include the time required, the costs, the number of years offered, data regarding the number of students enrolled and the number who completed the course of study, and data regarding job placement for those who completed the course of study. Bold face disclosures regarding loan repayment obligations, employment eligibility, and transferability of credits are also required. Failure to provide this disclosure in advance entitles a student to rescind the contract or agreement for up to 15 days after the disclosure has been given to the student. If the student elects to rescind, the school must deliver a full refund and a refund of any third party payments.

            The Board of Education has opined that these requirements are “completely redundant and un-necessary”  The State Board of Education would oppose this legislation, along with others, therefore it is doubtful it will be moving forward. 

 

We remain vigilant in looking for legislation that would impact the cosmetology school industry and look forward to working with you in the upcoming months. 

Advertisements

Leave a comment

Legislative Update February 2012

Legislative Update

February 24, 2012

 

The legislature has completed 7 weeks of the anticipated 13 week legislative session.  The Joint Finance and Appropriations Committee started the week passing supplemental budgets to allow spending authority for federal grants, and 2013 budgets for dedicated fund agencies such as the Department of Finance and the Public Utilities Commission.  Later in the week, budgets for the offices of the governor and the lieutenant governor were quickly approved on a unanimous  20-0 votes.  Neither contained any new line items and the only increases are for the 2 percent raises for state employees and statutorily required increases in these two elected officials’ salaries.  This 2 percent is expected to be the standard for most budgets moving forward. 

 U.S. District Judge Lynn Winmill held a hearing on Friday on a motion to block a new law that would evict the Occupy Boise encampment from state property across from the Capitol.  He told attorneys for both sides that he will issue his ruling on Monday. The legislature and the Governor enacted legislation that will prohibit any group from occupying any state owned land and require those who are currently living on the grounds adjacent to the Capitol to vacate the site by 5 p.m. on Monday.

On a somber note, former Senate Majority Caucus Chair John McGee (R-10) resigned on Wednesday after an attaché alleged sexual harassment.  His replacement will be chosen by the Governor from 3 names submitted by the Republican Party in Canyon County.

To date, there are at least 26 members of the legislature who have decided not to be candidates for re-election or who will be running for a different seat than they currently occupy.  This, combined with the redrawing of the district maps, is likely to lead to the greatest amount of turnover in the legislature we have seen in many years.

 

Taxes:  A major tax relief bill was introduced this week by Representative Moyle and co-sponsored by the Governor’s office.  It would permanently reduce both personal and corporate income taxes retroactive back to January 1, 2012, making Idaho’s tax rates more competitive with surrounding states.  The fiscal impact of this proposal is $35.7million to the state general fund.   It is expected there will be other tax relief bills printed in the upcoming weeks.

Insurance Exchanges:  A revised bill that would establish a committee to oversee national health care legislation and give recommendations to the legislature on how or if federal changes should be undertaken in Idaho was printed this week.  This bill was revised at the request of the Governor’s office into HB 555 as noted below.  We do know there is another proposal to implement exchanges in Idaho that has yet to be printed.  At the same time the federal government continues to revise the rules and timelines for the Affordable Care Act leaving many moving parts and challenges for states, insurance companies and individuals.

HB 354 would implement a sales tax on services and delete some exemptions is not moving forward.  The bill is fatally flawed and not supported. 

SB 1234:

This legislation would require that propriety schools make disclosures to students 15 days prior to entering into any contract or binding agreement with them. The required disclosures for the selected course of study include the time required, the costs, the number of years offered, data regarding the number of students enrolled and the number who completed the course of study, and data regarding job placement for those who completed the course of study. Bold face disclosures regarding loan repayment obligations, employment eligibility, and transferability of credits are also required. Failure to provide this disclosure in advance entitles a student to rescind the contract or agreement for up to 15 days after the disclosure has been given to the student. If the student elects to rescind, the school must deliver a full refund and a refund of any third party payments.

            The Board of Education has opined that these requirements are “completely redundant and un-necessary”  The State Board of Education would oppose this legislation, along with others, therefore it is not moving forward. 

 

Leave a comment

Paid Members

Dues Paid in 2012        
School Amount Paid Date Paid Amount Due  
Cosmetology School of Arts & Sciences $1,000 2/4/12 $0  
Evans Hairstyling College $1,000 2/5/12 $0  
The Hair Academy Paul Mitchell Partner School $1,000 2/7/12 $0  
Toni & Guy Boise $1,000 2/2/12 $0  
Headmasters Lewiston $400 2/5/12 $600  
Master Educators $250 2/5/12 $750  
Mr. Juans College $250 2/7/12 $750  

Leave a comment

Draft – Februrary Meeting Minutes 2012

Meeting Minutes

Attendees:

George Brunt, Chairman, The Hair Academy Paul Mitchell Partner School

Tyler Price, Vice Chairman, Austin Kade Academy

Ty Walker, Treasurer, The Hair Academy Paul Mitchell Partner School

Sue Plagge, Paul Mitchell The School Boise

Rhonda Hansen, Master Educators

Kim Barton, Master Educators

Ladonn Goodfeller, Cosmetology School of Arts & Sciences

Brad Perkins, Boise Barber College

Nichole Doering, Razzle Dazzle

Laurie Rowen, Razzle Dazzle

Ryan Evans, Evans Hairstyling College

Rick Evans, Evans Hairstyling College

Ronda Clark, Cosmetology School of Arts & Sciences

Ren Shaw, d’Shaw Institute of Cosmetology

Kathy Hopkins, Toni & Guy

Phil Scott, Toni & Guy

JR Scholes, Mr, Juan’s College

Nancy Roland, Mr. Juan’s College

Larry Benton, Benton, Ellis & Associates

Kris Ellis, Benton, Ellis & Associates

Johnni Whetley, Headmasters Lewiston

Debbie Hummel, American Academy of Nail Technology

Peggy Foster, Headmasters Lewiston

Justina Foster, Headmasters Lewiston

 

 

At 8:30pm George Brunt, Chairman called the meeting to order, called roll and welcomed the members.

 

The minutes of the previous meeting were read and unanimously approved after being duly moved and seconded by Peggy and JR.

 

The financial report was read, indicating that the association has $2,224 in the checking account.    Dues will be due in February each year in the amount of $1,000.  Ty will be sending out invoices to schools that have not paid dues for current year.  It was agreed that the dues can be paid each quarter in the amount of $250.  All paid association members will be posted on the association’s website www.IdahoACS.org.  A motion was made by Peggy to set the association dues at $1,000 each year, and can be paid quarterly, seconded by JR.  Motion Carried 

 

Peggy gave a brief NACCAS report on the changes for 2012 standards.  The application fee name has been changed to registration fee.  Each school is required to inform students of the schools median debt for Gainful Employment, this can be on your website or catalog as stated in standard criteria.  The 2012 NACCAS Standards are now available.

 

Larry Benton discussed the fact that we are a regulated industry and we need to have someone at the Capitol who is watching what’s happening each day and is watching out for our best interests.  A lobbyist’s job is to represent you at the Capitol.

Benton, Ellis & Associates will be putting together a proposal to represent the association.  We need to have all issues we want Benton, Ellis & Associates to work on for us ready for the June meeting.

A motion was made by Peggy to allow George to negotiate with Benton, Ellis & Associates a yearly monitoring fee for 2012, seconded by Phil.  Motion Carried

 

George then opened the discussion on the issue of reducing the number of hours required in Idaho to receive a Cosmetology License.  There was a great discussion with those who are in favor of reducing the hours and those who are opposed to reducing the number of hours required.  George asked for a straw vote for those in favor and opposed to changing the hours.  Seven members were in favor of reducing the hours to 1,800 and six were opposed to reducing the hours.  George tabled a true vote for the June meeting and reminded those in attendance that only schools who have paid their annual dues will be eligible to vote. 

  

It was proposed to adjourn the meeting.

 

The meeting lasted 1.5 hours

 

 

 __________________________________

Chairman, George Brunt

Leave a comment