Senate Commerce Committee backs smaller cosmetology fee increase after heated debate over board finances

The Senate Committee on Commerce moved House Bill 326 favorably as amended on a voice vote Wednesday, approving an amendment that raised certain cosmetology licensing fees from $25 to $35.

The change, offered as an amendment and adopted without recorded opposition, reduces an earlier proposal that would have doubled some fees. The committee then moved the bill as amended.

The measure’s sponsors and supporters said the modest fee increase is meant to stop an ongoing operating deficit at the Louisiana State Board of Cosmetology and fund basic maintenance, licensing systems and inspections. "With the amendment, sir, we would be able to operate for several years," said Steve Young, who testified for the board.

Board staff and supporters told the committee the board faces a recurring annual shortfall and aging infrastructure. Kiwan Wade, described in testimony as the board’s compliance investigator, told senators, "our operating expenses exceed our revenue," and said the board’s current computer system is decades old and needs replacement.

Opponents and outside critics pressed for greater transparency and questioned the board’s prior legal and policy choices. Reverend Freddie Phillips said the committee was being asked to approve a fee increase without enough detail on how additional revenue would be spent, calling the process akin to "writing a blind check." Robert Burns, a CPA who testified in opposition, said audited financial statements showed a fund balance of about $1.5 million as of June 30, 2024 and argued that litigation costs had distorted prior-year operating results.

Committee members pressed both sides for clarity. Senator Abraham asked whether the board’s apparent year-end fund balance meant the agency had a large unrestricted reserve; board representatives replied that cash balances fluctuate daily and that the figure on an audit report reflected a point-in-time balance. Committee members also urged the board to seek a performance audit to clarify long-term needs and ensure the requested funds would address core problems rather than one-time items.

Representative Butler, the bill’s author, corrected an earlier misstatement about typical tuition costs for cosmetology schools and said the fee change is intended to sustain operations and avoid staff layoffs. Committee members noted staff estimates that the board runs about a $150,000 annual deficit and that capital repairs to the board’s facilities and systems have been estimated at figures ranging from several hundred thousand dollars to over $1 million; the board said the $35 fee would not cover all capital needs but would help operations.

After extended public comment and questions, Senator Koenig moved the bill favorable as amended; with no objection, the committee approved the measure for the floor.

The bill now heads to the full Senate for further consideration. Committee members requested additional financial detail and suggested a legislative performance audit to establish a longer-term plan for the board’s finances and services.