We will now move to piece amount 1, SB 896. Senator Nguyen. >> Mr. Chairman, is there a prospect I can take them out of order since I have witnesses on some of them- >> That would be fine, certainly. Where would you like to- >> Can I make SB 1044? >> Item number three, SB 1044, members. I predict we will take that item next. >> Thank you. Good afternoon, Chairman Hill and members. Actually, it’s almost morning. SB 1044 would give the board of barbering and cosmetology authority to assess by regulation whether fine to be given to both the owner and private individuals for the same violation as well as establish a payment plan for penalties that exceed $ 500. The committee currently issues citation with fines to both individual licensees and the owner of an organisation for a violation that has been committed by the individual.For illustration, if the board finds that a licensed cosmetologist is using a unclean hairbrush, a fine of $100 is issued to both the cosmetologist and to the owner. SB 1044 will not take away the responsibility of the owner of the establishment but will allow the board to determine when the punishment shall be assessed to both private individuals and proprietor. This allows the board to hold any individual licensee to a higher level of responsibility by insuring that the individual who has attended school and surpassed the licensing interrogation is a firstly front of consumer protection and therefore responsible for up bracing the health and safety laws of the board. Many establishment owners have agreements with booth renters that require the booth renter to pay both the individual find as well as a fine assessed to the establishment owned. This will eliminate these characters having to pay a doubled punishment. The greenback also stood the board to enter to your payment plan for citation that outdoes $ 500. The board often publishes cites that straddle from $2,000 to $5,000. This can be significant impact to small business and licensee and simply allows the board to establish a procedure for the individual to make payments as opposed to paid in entire summit one time which will also allow them not to loose their permission for the establishment or the licensee.So that they continue to work and establish the remittance. SB 1044 would allow the board to work with beings on a client by instance basis to try and setup a payment plan for any excellent punishments. It is for these rationale I ask for your aye referendum. I have with me Kristy Underwood with the Board of Barbering and Cosmetology now to speak in support. >> Very good, thank you. Please. >> Thank you. I’m Kristy Underwood, executive officer with the human rights committee, our timber did take a position to support.We think that this is a good move for us. We currently issue our citations by way of review once labour inspectors does their inspection at the parlours, the report comes back into our bureau and then we’re able to determine who gets the citation. And so right now we have that ability to easily constitute that finding on who actually went to school and who actually surpassed our licensing exam. Whereas an owner can be somebody from a corporate place in another state. Instead of doing the double fine, we would have the ability to issue the penalize right there to somebody we’ve tested for minimum competency.And then as for the payment plans, we believe that this has been a huge issue that licensees have come to us. We do have some significant penalties if we find that a fingernail shop is not disinfecting foot spas properly, that’s a $500 punishment per chair in the salon. Most could have 10 to 20 chairs. So it’s $500 per chair. So allowing them to compile the adjustment but still stay in business with a payment plan so that their permission doesn’t lapse was that we accept would be helpful .>> Good, thank you Ms.[ UNKNOWN ]. Others in brace? >> Thank you, Mr. Chairman, senators. Fred Jones on behalf of the Professional Beauty Federation of California in support of the legislation. We increase the fact that there is an opportunity to provide a payment plan for licenses who have benefited from sizable penalties and on behalf of the booth renters, almost every booth rental contract has an indemnification clause which mostly says if by the owner and the contractor, if the contract are fucks up and the owner intentions up having to pay something that’s reaction of that **** up, then the poor licensee expirations up having to pay the establishment owner back, so they’re give the penalty to the state board and then they’re too compensating indemnification. So, this will allow for non-egregious irreverences and the possibilities for the safe committee to consider removing that doubled penalty statu. Thank you. >> Very good, thank you very much. Jones. Others in substantiate? Seeing no one. Is there anyone here in opposition? Very good, we’ll create it back to the committee. Any criticisms or questions? We have a motion from Senator Bates to move.And did you make the- >> Yes, yes, I agreed to the amendments. Do we have, would you like to close? >> I ask for your ay vote. >> Very good. We have a motion from Senator Bates to go with the amended, the legislation as amended. Please call the role. >> Do pass as amended to senate allotments. Hill? >> Ay. >> Hill, aye. Bates? >> Aye. >> Bates, aye. Berryhill? Block? >> Aye. >> Block, aye. Galgiani? Hernandez? >> Aye. >> Hernandez, aye. Jackson? >> Aye. >> Jackson, aye. Mendoza? >> Aye. >> Mendoza, aye. Wieckowski? >> Aye. >> Wieckowski, aye. Galgiani aye? >> The statute has eight elects. We’ll encumber the go for absent-minded representatives. Thank you very much. And where would you like to move now? >> SB 1125. Mr. Chairman. >> SB 1125, very good. Item number six. Please begin. >> Thank you. I’m pleased to present SB 1125 who are in need of the board of trustees of barbering and cosmetology to required nail salon owners to acknowledge that they understand their responsible are required to comply with the state strive constitutions when they are applying for or are revitalizing their licences. This acknowledgement will roll an existing or brand-new applicable proletariat regulations. I believe that salon proprietors want to comply with the law but in their past have had difficulty understanding our complex labor laws. I recently[ UNKNOWN] a town or in my territory where several shop owneds had basic questions about how to comply with the mood proletariat constitutions like craftsmen compensation.The hammer manufacture in California is dominated by Vietnamese technicians and nail shop owneds which are approximately 80% of the fingernail manufacture are Vietnamese Americans in California. Language railings and cultural rights divergences have sometimes led to unintended irreverences. I’m working with the board to educate salon owneds in a more effective way, and SB 1125 reflects that commitment by ensuring that all nail care establishment are on the same page regarding the labor laws of California. I argued that stipulating tack establishment proprietors a document that includes revised strive laws at the time they procure or revamp their permissions will help salon owneds take care on labor laws so that there are no unintended irreverences, it is for this reason I ask for your aye buoy, and I too have Fred Jones .>> Very good, expressed appreciation for. >> Thank you again, Mr. Chairman, senators. Fred Jones on behalf of the Professional Beauty Federation of California. We are in support of this measure. There’s other invoices that will be coming from the lower residence. We anticipate that we’ll be tackling this issue as well as a result of a New York Times series. In which by the way I need to commend your committee staff for a very thorough analysis on this greenback, but all of Senator Nguyen’s monies. We think this is basically a no brainer. You need to understand the basic labor laws to be able to employee people in California, whether it’s in a nail salon or anywhere else. And this will remove one of the apologies that we often do hear at disciplinary evaluate committees that I didn’t know and for things like proletarians compensation, there really isn’t any office for imploring ignorance.So this is a simple acknowledgement that you are familiar with basically over constitution. And the statute actually says for specific areas, so it’s specific. It’s acceptable, we think it’s counterbalance then so we support it. Thank you very much. >> Thank you Mr. Gonzales. Other in supporting? Is there anyone here in opposition. Very good. Questions? Very good. We will have a motion then from Senator Page. I approximate and the Senator and I chatted about this, and some of issues of concern that I had is certainly, we want to make sure that we ensure, peculiarly ladies mainly in this occupation and primarily immigrants who have come here and working in the nail services industries, but I guess the challenge, the two issues that I receive before is one, is how we’re we going to, if given the board does not know today, which foundations would have to comply with the acknowledgement because they don’t know who is that claw shop and who’s not a tack salon.So, that’s the first challenge that I examine. And the other is, is this seems like more of disagreement of labor standards enforcement matter, rather than an prosecution of, in terms of enforcement of labor standards. What we’re basically telling someone to do, is sign that you agree to something that you’ve already agreed to do, and you already know the law, or should know the law. So, we’re really reminding person that, to follow constitutions that they should already know that they’re on the books, and that they should be following. So I imply, I’m going to support relate in our conversation you’re willing to see how we can address those issues, and see how we can perhaps get it to work a little better in there too, so. >> Yes, thank you very much. Chairman. I remember, the barber and cosmetology place is likely to be answer most of your questions. And so let me really hand it over to Kristie. >> So we do, our committee hasn’t taken a position on this greenback, but we do recognize the importance of things that had happened in New York and we have a serious language barrier in this industry.Everyone in every ethnic background gets services, so we’ve done a large part of trying to create and improve our usage access. But we do still find that there is a lot of information that parties just don’t know. And this being one in those areas is some of the labor regulations. So while we do not enforce labor ordinances. It’s not our sovereignty. We do think we could be helpful in determining, in getting that datum out to our licensees.We’re on the gale structure. We has so far been checked to see if there’s a approach that we could use to identify parlours and what type of services they provide. And we think that we would be able to easily do that with sail. And so, it’s definitely something that I consider our board would be supportive of. And we think we could be the privilege avenue to at least get that initial understanding out to our beings playing for an establishment license. >> He’ll be looking at that, when and if you do and are able to determine the parlours and what the fuck is do, and what special specialty they have. >> Right. We would have, our five individual license characters, they would have to tell us what type of service they’re equipping in their shops, would be a fairly simple task. >> Thank you Ms. Underwood. Other the issues or criticisms? Irina, would you like to close us? >> I respectfully asking questions your aye election. >> Thank you Senator.We do have a motion from Senator Bates. Please call the roll. >> Motion is due pass to senate appropriation. Hill? >> Aye. >> Hill, aye. Baites? >> Aye. >> Baites, aye. Berryhill? Block? >> Aye. >> Block, aye. Galgiani? >> Aye. >> Galgiani, aye. Hernandez? >> Aye. >> Hernandez, aye. Jackson? >> Aye. >> Jackson, aye. Mendoza? >> Aye. >> Mendoza, aye. Wieckowski? >> Aye. >> Wieckowski, aye. >> 8-0. We’ll grasp the roll over for the absent-minded member and thank you very much.Now I guess we’ll move back to item number one. >> Yes, thank you very much. Chairman. I am honored to present SB 896 which will require any nail salon that admits a debit or credit cards as payments for services to likewise mounted a debit or credit card payment for a tip. Currently, fingernail lounges in the mood consented various forms of payment for services provided and any gratuity left for the technician. Some stores merely acquire money for both service and tips. Most establishments admit clients to use a debit or credit card for the cost of the service and to leave the technician a tip on the debit or credit card. A small number of establishments abide paying for a service with a credit card or debit card but do not earmark a tip to be charge.As analysis points out, according to the United Country Small Business Administration, credit and debit card have evolved into the most common method of patron payment. This bill will not require shops give the use of credit or debit cards. This is a business decision. Patients at cash parlours know to making currency for tip as well as for the services. Nonetheless, for a client who frequents a salon that countenances debit or credit cards, they often do not carry currency with them, because they assume that they would be able to leave a tip on their debit or credit cards. Tips-off are the property of the employees and are an important source of income for most technicians. If an constitution doesn’t allow for gratuities to be made with a debit or a credit cards, the technician may not be tipped.Requiring parlours to allow clients to use credit or debit cards to also leave a tip on a credit cards or debit card would not only be more convenient for the client but will likewise ensure that technicians are appropriately compensated for their labor as well. And, for this, I ask for an aye vote. >> Okay, expressed appreciation for, Senator Nguyen. Other onlookers here in support? Those in opposition. Mr. Jones, you’re a busy humanity today. >> Yes, Senator Winn’s becoming “peoples lives” busy.Obviously it doesn’t make me feel good to come up and resist Senator Winn’s proposal. We guess establishments that only ply mean for tips-off through credit cards have a moral obligation to provide it. That doesn’t necessarily mean that we think they should have a statutory obligation. And for the simple occurrence of we believe this starts a little too far in statutorily micromanaging how organizations choose to operate, we have to oppose.There are issues about credit card accusations. Usual frequency is about 3% on anything accused that the lounge owned has to pay. And while it is possible to back that out of the tips-off, it does become somewhat of a paperwork hallucination because according to law, if the remuneration point is the next day, they have to provide tips-off 100%. And then they were required to retroactively bill a 3% in the next wage period.So, it does been difficult. So, at least at an scholastic height, we can relate to salons who say, you know what for gratuities we’re not going to take it. I don’t deal with that 3% are you able merely compensate cash? I will tell you admittedly that most technicians would prefer tips pay them cash. We won’t explains why, but, nevertheless, there’s a moral, and then there’s a statutory. We agree with the intent behind this greenback but we can’t concur with the statutory micromanagement. So we oppose. >> Thank you, Mr.Jones. Others in opposition?[ UNKNOWN] Senator Jackson. >> Yeah, only a question. Are the workers, are they exempt from minimum wage because they’re tip-off proletarians? >> No, absolutely not. All laborers have to be provided at least a minimum wage in California. Whether they’re working, whether they’re on standby, etc. It is possible to pool tips and weigh that against the wages, as long as it’s not about$ 3 an hour or more. But long story short , no. Everyone working in the state of California has to receive minimum wage. >> So if I, so that minimum wage can include the amount of my gratuities .>> It can to a certain amount. If it’s more than$ 7 of your minimum wage, then no, you get everything over and above that. That’s separate. But one step back, if I may, Senator. All tips are 100% the property of the stylist or technician not the employer. >> Right, but in fact, I predict my concern is in factoring what that 100% of the gratuity is, are. >> If I may ask the Senator, are you anticipating that if these tips are to be provided on credit cards, there is often a two or three percent carrying charge by the card company. How would that be.Would the owners of the lounges be able to reduce the amount when they determine minimum wage by that 3 %? I’m concerned about older workers. I’ve been to these stores, and it’s hard work and it’s dreary wield, and you can’t, unless you’re absolutely brilliant at it, you can’t really run five or six customers through in an hour. So the amount that you can realise is not a lot. And I simply want to make sure that these kinfolks are paid fairly for this. >> And that’s why I propose Senator. Let me going to go, your question is are these someones minimum wage? Some of them are booth renters so gratuities is actually a lot of where they make their money and not so, because they’re booth renters it’s not like, they’re not a W-2, so they don’t get a wage on top of the tips-off. So half of their payment will be tips. And I have to disagree with Mr. Jones and his criticism. I know that it’s sarcastic, but I want to make sure that we are aware of, you know you >> We’re not asking.I mean these technicians demand their tip. Whether it’s cash or credit card. I know he made a comment that, well, of course everyone wants cash. And, for whatever reason, we’re not going to talk about it. Let’s not even get into that kind of discussion, I don’t think that’s correct. I think that all I’m asking here is to allow them to have tips, because this adds to their salary. Some of them are minimum wages, that are W2, actual the staff members of the shop. On others or not in their kiosk renters. And so I imagine within the bill is the owner and the employees can also have an agreement with each other if they choose to allow the credit card, they can charge the employees or not.However if you think about this, let’s just use for an example. It is a$ 1 million revenue auction. If you do 20% gratuity that’s about $200,000. But if you merely did 1% that the lounge owneds have to pay to the credit card company, that’s only $3,000 out of$ 1 million revenue for the lounge. So I don’t think it’s unreasonable to ask that if you’re going to allow credit care and debit used for services that a little tip-off could also be added. because I’ll be honest, most of the individuals like myself who were generation x. We tend to use, if we’re a credit card user, we use credit cards, if we use currency, we use currency. You know, even in the salon that I’ve gone to, recently they started going on to you can pay for the service credit card and then, you have to tip and occasionally, I would have to run out, go to the bank down the street and then, get some currency and it’s not a lot,$ 7,$ 8 in gratuity then, I come back. But, I’ll be honest, I’m one of the few who would do that and especially be on the coastal area A spate limits really marches in, get their fingernail done real quick and then leave.So there’s not an opportunity for them to actually was down the street and get currency. And so I’m just hoping that these employees are given that opportunity so they don’t loose out on that extra money. >> Senator, I got a question on the, you talked about booth rentals. If you’re rent the booth, then you’re not individual employees. You’re rent a kiosk. You’re not a contractor either, because you are paying so much in payment for that space.You’re paying a monthly fee. So, all of the revenue that comes in for your services will go immediately to you, the tip as well as the other part. Is it your understanding that then that would be paid separately or typically if you’re rent a office, that purchaser bribes instantly to that “providers “. And would take a credit card and, could be all in the service or nonetheless it would be done. >> My understanding, so it’s a little tricky. Some kiosk renters, they have their own establishment but they also have an agreement with the owner, because they don’t have their own credit card that they carry with them. So they usually too use the salon credit card machine and so they get their money at the end. So, it truly depends on the establishment. Depend on their relationship or their contract with the employer or the owner versus the booth renter. But then again then you look into the nail salon industry, there’s not many kiosk renters approximately doesn’t really exist as much because they’re petty spa now.They’re not booth renters like a hair salon. So even the terminology used hasn’t been updated since, you are familiar with, when tack parlours and hair salons has been established. And so there’s a lot more that can be fixed, I’m just trying and take it by at a time. >> Okay, the question, Senator Buck, yes. >> A question for the author >>[ UNKNOWN ]. Are there other ventures which is something we, as a legislate or mandate that gratuities be in cash or by credit cards or whatever? >> Not that I, I believe this is the first. And this is, I’ll be honest, I have not seen an industry that I are well aware that says service is this and cash is for tip. There’s not, I used to be a waitress, I made across Disneyland at various eateries in the past and you know, at restaurants, it’s very common. You either, you are eligible to have eateries that says money merely, and that’s it. But majority the restaurants that are not mom and poppings stand credit cards. And if they give credit cards, they too enabling you to employed tip as well.I has not been able to come across an industry that I’m aware of, beside this industry that has now a narrow down very specifically. And not countenance tips to be included in the credit cards. >> Okay, thank you. To me frankly that’s up to the person who owns a small business, how they want to, compile both their cost and too How they require tips-off[ INAUDIBLE ]. I guess I don’t see starting a instance where we as a assembly tell small businesses what they have to do in this regard.So, I will be opposing this. >> Thank you, Senator Mendoza. >> Thank you. I precisely want to commend the author for bringing the statement forward. I do think that in today’s age, I think these folks that are in these salons, they make really hard to earn a living. And to see the owners that are not willing to work with them and render them an opportunity to get their tips-off through a credit cards, even though they have it available for the customers to use.I don’t understand why. The more purchasers they get, the happier their purchasers are and the more convenient it is, whether it be their employees or whether it is a matter their other individual, independent contractors, whatever they want to name them, to thrive, they’re going to thrive overall in the long run. I time don’t see why, I’m perplexed on why they would be resistant to happen their own employees or their own contractor to thrive because they’re going to thrive themselves. So I do commend the authors for moving this forward and I will be supporting it, and thank you for gazing out for those folks who usually don’t have a voice in this building because they’re generally the ones that there is a tendency to just set aside, so expressed appreciation for .>> Any other questions or notes. Senator, we did have discussions about this a little while ago and I had some concerns with it, and chiefly a marry intellects. One, it is precedent designate, I trust, and as you revealed, I don’t want to say a handful, but you did say this a very small part of the industry where this occurs or may be occurring in some areas that it exists in.In the other part that I realise there are other of types of the Starbucks, the Chapoltes, a lot of those where your not coming the restaurants sector but they’re services and I ever pull out some cash and leave some for those people. If I offer by credit card, there’s never a recognise on there is in addition to that either, so its due to my charity or those patrons that come in to provide that.I just think, extremely going back to the comments that parent to the other legislation, right now the board has no way of knowing who those hammer lounges are, where they are and how to even enforce this if they were to go forward. So, I will not be able to support it today and apologies but is there a gesture? Senator Bates was going to make a gesture but Senator Mendoza, if you’d like to conclude that. I would have originated it for her on behalf, but no, she’s not here. And now Senator Mendoza is moving the statute. Please call the roll. >> Motion is do pass the Senate Appropriation. Hill? >> No. >> Hill , no. Bates? Barry Hill. Lock. >> No. >> Lock. No. Galgiani. >> Aye. >> Galgiani, aye. Hernandez. Jackson. Mendoza. >> Aye. >> Medonza, aye. Rykowsky. >> That legislation has two referendums, 2-2 and we’ll continue the roster open for the absent representatives, so expressed appreciation for much needed .>> Thank you, Senator. We will recess for conference and then convene immediately after session charges. Thank you. >> Thank you, Senator Roth ..
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