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HB 5403

AN ACT RELATING TO TAXATION -- BUSINESS CORPORATION TAX

2025 Regular Session Introduced by Jackie Baginski and 9 co-sponsors

HB 5403 creates a secondary school facility license allowing licensed cosmetology schools to run off-site classrooms for instruction (no public services).

05/06/2025 Committee recommended measure be held for further study
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Bill Summary · HB 5403

Summary — HB 5403 (Substitute H-1)

Title: Occupations: cosmetologists; branch/secondary facilities for a school of cosmetology; provide for. (Adds MCL 339.1205b)

Sponsor: Rep. Cynthia Neeley
Primary subject: Cosmetology schools / Occupational Code

Main purpose

HB 5403 creates a new license category — a “secondary school facility license” — allowing a person who holds a license to operate a school of cosmetology to operate one or more off‑premises classroom facilities that teach cosmetology (separate from the main licensed school). The intent is to expand classroom access and reduce barriers to operating branch instructional facilities while maintaining regulatory oversight.

Key provisions

  • LARA must issue a secondary school facility license if all requirements are met:
    • Owner/manager submits an application to the Department of Licensing and Regulatory Affairs (LARA).
    • Application includes: statement of intended use, facility address, and a current detailed floor plan showing classroom arrangement, equipment placement, and entrances/exits.
    • The secondary facility must meet all cosmetology school requirements in MCL 339.1205(2) except:
    • It must not offer cosmetology services to the public.
    • It must not contain equipment that may be used to perform services on the public (examples listed: hair‑drying chairs, hydraulic styling chairs, hair‑styling stations).
    • All training at the facility must be provided by licensed cosmetology instructors with at least 3 years’ experience in the services taught there.
    • The facility must pass LARA inspection and be approved.
  • Ongoing requirements:
    • The owner/manager must conspicuously display the secondary facility license and each instructor’s license.
    • LARA must regularly inspect facilities for compliance.
    • A secondary facility license becomes void upon sale/transfer of the facility or change of location or ownership; a new application is required to continue operation.
    • LARA, in consultation with the Board of Cosmetology, must promulgate implementing rules within 18 months of the law’s effective date.
  • Contingency / tie‑bar: The amendatory act does not take effect unless Senate Bill 1081 (which would set application and annual fees) is also enacted.

Who is affected

  • Primary: licensed cosmetology schools and their owners/managers (who may operate additional classroom facilities).
  • Instructors: must be licensed and meet the 3‑year experience requirement.
  • LARA and the Board of Cosmetology: increased inspection, approval, and rulemaking responsibilities.
  • Public: indirectly benefits from increased training capacity; secondary facilities are prohibited from providing services to the public.

Fiscal impact

  • Net fiscal impact to LARA is indeterminate. LARA would incur costs for application processing, inspections, and rule development; costs depend on the number of facilities.
  • SB 1081 (tie‑bar) would authorize fees (House Fiscal Agency cited potential fees of $100 application and $200 annual per secondary facility), creating possible revenue contingent on SB 1081’s enactment and facility uptake.

Legislative status / timeline highlights

  • Introduced: Jan 23, 2024 (sponsor Rep. Cynthia Neeley). Substitute (H‑1) adopted.
  • Passed House with immediate effect: Dec 13, 2024 (56–0).
  • Referred to Committee on Government Operations (reported and circulated in 2025).
  • Placed on General State Calendar: May 13, 2025.
  • The provision is not effective unless SB 1081 is also enacted.

Support / stakeholders

Support recorded from LARA and several cosmetology schools and associations (e.g., Douglas J Aveda Institute; Michigan Association of Beauty Professionals; Michigan College of Beauty; L’esprit Academy).

Related bills

  • SB 2581 (companion)
  • SB 1081 (tie‑bar; addresses fees and other cosmetology licensing changes)

Compiled from official sources — confirm details with the bill’s official record.

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