The direct cost of obtaining a license to operate a cosmetology establishment or school will be borne by the applicant
for licensure. A cosmetology establishment license will be required for mobile salons and cosmetology suites, as
they are now included in the definition of a cosmetology establishment by statute. No additional costs will be
imposed on any businesses or groups. Approximately 97 licensed schools and 9,754 licensed establishments will be
directly affected by any cost burden or benefit from the proposed rules.
B. What additional costs will be imposed on businesses and other groups as a result of these proposed rules (i.e.
new equipment, supplies, labor, accounting, or recordkeeping)? Please identify the types and number of businesses
and groups. Be sure to quantify how each entity will be affected.
No additional costs will be imposed on any businesses or groups.
29. Estimate the actual statewide compliance costs of the proposed rules on individuals (regulated individuals or
the public). Include the costs of education, training, application fees, examination fees, license fees, new
equipment, supplies, labor, accounting, or recordkeeping.
It is estimated that there will be no new compliance costs imposed on individuals as a result of the proposed rules.
A. How many and what category of individuals will be affected by the rules?
All licensees and applicants are affected by the proposed rules.
B. What qualitative and quantitative impact do the proposed changes in rules have on these individuals?
There is no qualitative or quantitative impact on individuals as a result of the proposed rules because the proposed
rules are not expected to increase or decrease costs for education, training, experience, application fees, examination
fees, or licensure fees.
30. Quantify any cost reductions to businesses, individuals, groups of individuals, or governmental units as a result
of the proposed rules.
The proposed rules are expected to result in several cost reductions on businesses, individuals, and the department.
Eliminating branch facility licensure will reduce costs for licensed schools of cosmetology who currently pay a $200
initial branch facility licensure fee and a biennial $200 branch facility renewal fee. Current branch facilities can
operate under the primary school of cosmetology license, assuming the branch facility has met the requirements
under the code and rules.
Eliminating unnecessary school equipment requirements and apprentice program equipment requirements will reduce
costs for licensees who are currently maintaining equipment that will no longer be required under the proposed rules.
Clarifying the record reporting and completion of training certification requirements will reduce costs for licensed
schools and apprenticeship programs that currently submit to the department more information than is necessary to
properly administer the act and rules.
Clarifying the sanitation requirements will make it easier for licensees and the department to remain compliant with
the rules, which should result in fewer disciplinary actions and reduce costs associated with failing to comply with
the current requirements.
31. Estimate the primary and direct benefits and any secondary or indirect benefits of the proposed rules. Please
provide both quantitative and qualitative information, as well as your assumptions.
The proposed rules update standards and eliminate ambiguous and outdated language to provide greater clarity to
licensees and assist them with understanding and complying with the requirements under the rules. The clear and
concise language allows the public and licensees to better understand the requirements for the profession.
32. Explain how the proposed rules will impact business growth and job creation (or elimination) in Michigan.
The rules are not expected to have an impact on business growth, job creation, or job elimination in Michigan.
33. Identify any individuals or businesses who will be disproportionately affected by the rules as a result of their
industrial sector, segment of the public, business size, or geographic location.
The department does not expect any individuals or businesses to be disproportionately impacted by the rules as a
result of their industrial sector, segment of the public, business size, or geographic location.
34. Identify the sources the agency relied upon in compiling the regulatory impact statement, including the
methodology utilized in determining the existence and extent of the impact of the proposed rules and a cost-
benefit analysis of the proposed rules.