Board moves fee increases and compact plan forward as reserves shrink

The Cosmetology & Barber Examiners Board on June 1 approved a package of fee increases and authorized legal counsel to add the changes to a rulemaking package, a step staff said is necessary to address a projected budget deficit and declining reserves.

Executive Director Roxanna Gamusio presented March 2026 financials showing a $324,233 deficit and reserve balance of $805,676. Finance staff projected reserves could be depleted by 2028 under current trends. To improve solvency, the board approved increases including raising individual license initial/renewal charges (from $60 to $80), increasing shop inspection fees (from $50 to $75), and adjustments to school application fees; the board also approved moving fee language into the formal rulemaking process so the public may comment.

"We're not going to have a choice but to do the fee increases, because if the board is not self sufficient, it can cease to exist," Gamusio said. Members asked about penalties and statutory caps; legal counsel Joe Warden said the civil‑penalty ceiling is set by statute at $1,000 and that changes to that ceiling would require legislative amendment.

The board also discussed the cosmetology multistate compact, which allows cosmetologists to opt in for a multistate license (an optional one‑time additional fee discussed at $40). Gamusio said Tennessee is among the states that have passed compact legislation and that the compact database and public verification tools are being tested.

Separately, board counsel summarized legislative action: Public Chapter 1039 (signed May 21, 2026) creates a statutory exemption, effective July 1, 2026, for makeup‑application services from board regulation; counsel clarified the exemption does not include eyelash services, which remain regulated.