On March 22, 2018, Idaho passed Senate Bill 1324, which establishes the Barber and Cosmetology Services Act. The act was passed with almost unanimous approval and concerns the implementation of a new requirement for barber and cosmetology schools to purchase a surety bond as part of the licensing process. Effective July 1, 2018, all schools applying for a license must provide the newly-created Idaho Barber and Cosmetology Services Licensing Board with a $20,000 bond. The bond must be renewed annually for as long as the school wishes to keep their license active.
Why are cosmetology schools bonded?
Idaho cosmetology schools must be bonded as a means of protecting students from financial harm. Should the school fail to adhere to all applicable rules and regulations, and its students suffer damages as a result, a claim may be made against the school’s surety bond to collect compensation.
How to get a barber or cosmetology school bond
To get a surety bond for a barber or cosmetology school, the owner of the school must contact an agency who works with a surety company and apply for their bond. Due to the obligations of school bonds, an underwriter for the surety must review the application prior to determining what the applicant will pay for their bond. When a bond is submitted for underwriting, several factors such as credit score, relevant work experience, and liquid assets are taken into account to determine the risk associated with issuing the bond. All individuals who own 10% or more of the school will be required to submit an application for underwriting.
Selecting a surety company to write the bond
The two things to take into consideration when selecting a surety company is that they must be allowed to conduct business in the state of Idaho and they must be authorized by a member of the Idaho Board of Cosmetology.
What else changes with the enactment of SB 1324?
One of the main changes resulting from the passage of SB1324 is that the Boards for Barber Examiners and Cosmetology are being combined to form the Idaho Barber and Cosmetology Services Licensing Board, which will oversee the licensing of all beautification instruction providers. The law will also reduce the hours of instruction for both cosmetology and electrology licenses and allows for the transfer of educational hours between related licenses. Those who wish to work only as a makeup artist may now receive a certificate to do so without having to go through the whole licensing process.
Exemptions have also been established for out-of-state licensees working on productions related to theatrical or visual arts in Idaho, as well as students or nonresident licensees who are in the state for the purposes of teaching or providing demonstrations.
Have questions about cosmetology and barber school surety bonds?
Contact the experts at SuretyBonds.com by calling 1 (800) 308-4358 or, if you’re ready to get a quote, submit an online application today!