201 KAR 12:105. School districts.

 

      RELATES TO: KRS 317A.060(1)(a)

      STATUTORY AUTHORITY: KRS 317A.030(1), 317A.060(1)(a)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 317A.060(1)(a) requires the board to promulgate administrative regulations establishing the location, housing of cosmetology schools, and the number of licenses issued for cosmetology schools. This administrative regulation establishes cosmetology school divisions within Congressional Districts and sets factors to be considered for approval of a school in the district.

 

      Section 1. The state shall be divided into six (6) districts which shall be the same as the United States Congressional Districts and shall change if the Congressional Districts are changed.

 

      Section 2. A new license for a school of cosmetology shall not be issued unless an application is filed with the board and the board approves the application.

 

      Section 3. (1) A school of cosmetology presently existing and licensed or hereafter licensed, shall not move or transfer from one (1) Congressional District to another without an application being filed with and approved by the board.

      (2) A school of cosmetology presently existing and licensed, or hereafter licensed, shall not be permitted to move or transfer from one (1) district to another district, if the move or transfer would cause the district to have more schools than is practicable and necessary to provide students with the opportunity to receive adequate training and education.

 

      Section 4. Sections 1 through 8 of this administrative regulation shall not be construed to prevent the issuance or the reissuance of a license to an existing cosmetology school except in the event there is a change of ownership. For this administrative regulation to apply the change of ownership shall provide for the transfer of all ownership interests in the school.

 

      Section 5. This administrative regulation controls the location of private schools only.

 

      Section 6. In order to determine whether an application for a school should be approved in the district, the board shall consider the following factors:

      (1) The existing number of licensed cosmetology schools in the district;

      (2) The current population in the district;

      (3) The need or aptitude of the citizenry in the district for cosmetology education, as determined by the following:

      (a) Market conditions;

      (b) Population of the district;

      (c) The number of licensed schools currently in the district; and

      (d) The number of salons employing cosmetologists;

      (4) The cost of the proposed facility and the economic feasibility of the proposed school for the number of students to be served;

      (5) The potential for future growth in the district; and

      (6) The type of area involved (rural or heavily populated).

 

      Section 7. The application for a new school shall contain the following:

      (1) The geographic location and the address of the proposed facility;

      (2) The number of students the facility is set up to teach;

      (3) The names and the credentials of the proposed faculty;

      (4) A survey of persons who are residents in the district indicating an interest in attending the school;

      (5) The educational aids and equipment the school shall provide;         (6) An economic feasibility plan for the school as demonstrated by the following:

      (a) Potential net income;

      (b) Prior business experience;

      (c) Growth of the district;

      (d) Cost of the facility;

      (e) Cost of tuition;

      (f) Cost of equipment and supplies for students; and

      (g) Assets and liabilities-equity.

      (7) The amount of tuition that will be charged per student;

      (8) The cost of any text books, educational aids or equipment the students are required to purchase;

      (9) The application fee of $1,500 as provided for by 201 KAR 12:260, Section 8(1) and (2); and

      (10) Proof of the ability to file the bonding requirement established in Section 8(1) and (2).

 

      Section 8. Financial Security Requirements for Schools. (1) Each school shall maintain a surety bond in the amount of $15,000.

      (2) In lieu of a school surety bond the board shall accept an irrevocable letter of credit made in favor of the Kentucky State Board of Hairdressers and Cosmetologists from a verifiable licensed financial institution in the amount of $15,000.00.

      (3) A school surety bond or letter of credit shall be required for each school campus.

      (4) The school surety bond and the letter of credit shall indemnify students, parents, and guardians for any loss or damage they suffer as a result of a school closing before course work can be completed.

 

      Section 9. Incorporation by Reference. (1) "Application for Kentucky School of Cosmetology", 10/09, is incorporated by reference.

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Board of Hairdressers and Cosmetologists, 111 St. James Court, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. (KBHC:Sch:Dist-1; 2 Ky.R. 73; eff. 9-10-1975; Am. 12 Ky.R. 671; eff. 1-3-1986; 19 Ky.R. 1825; eff. 3-12-1993; 36 Ky.R. 147; 1016; eff. 12-4-2009.)