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Wednesday, October 14, 2020
During the 2021 Legislative Session the Oregon Health Authority, Health Licensing Office will be requesting licensing fee increases for the Board of Cosmetology (Board). The Board must increase fees to cover the cost of licensing and regulating the Board’s professionals and protecting the public.
Prior to 2013, the Oregon Health Licensing Agency (OHLA) operated as an independent state agency. During the 2013 Legislative Session OHLA was moved to the Oregon Health Authority, creating the Health Licensing Office (HLO). This changed the indirect costs from funding an independent small agency to being part of the Oregon Health Authority (OHA). HLO now contributes to OHA’s and Public Health’s operations, which distributes shared costs among divisions.
This change increased expenses to the Board without an increase in fees to offset the additional costs. Each board pays these shared costs based on the number of licenses provided by the HLO and the services provided to licensees. The Board of Cosmetology carries more than 90 percent of the total cost allocation due to the number of licenses the HLO administers which is upwards of 30,000 licenses. Cosmetology fees are no longer adequate to cover the costs, since fees have not been increased since June 2011. In fact, in July 2015, the HLO began offering a discount for cosmetology licensees renewing online as it takes less staff time to process online renewals but stopped offering the discount in December 2019, to address the revenue shortfall.
Revenue and expenditure forecasts predict the Board will slip into a budget deficit in 2020, that will continue in 2021-23. Without an increase in fees, the HLO will not be able to:
• Issue licenses to applicants in a timely manner;• Protect the public from potential health and safety violations;• Protect the public from unqualified practitioners;• Inspect facilities;• Administer examinations in multiple languages; and• Investigate complaints.
The HLO and the Board designed the fees to be less for individuals entering the profession and more for individuals who are established including businesses. The fee increases would go into effect January 1, 2022, and would include the following:
• Individuals who are entering the profession out of school will see an increase on average of $10 per license;• Licensees renewing or coming from another state will see an increase on average of $20 per license;• Applications for business licenses (facility, independent contractors, freelance, etc.) will see an increase on average of $34 per license; and• Business license renewals will see an increase on average of $43 per license.
If fees are increased the Board of Cosmetology's revenue will stabilize allowing the Board and the HLO to continue its mission of protecting Oregonians who receive services from these professionals.
For questions contact Samie Patnode, Policy Analyst at (503) 373-1917 or by email at
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