Comparing Universal Licensure Recognition and Interstate Compacts

In recent years, states have worked to reduce barriers to interstate mobility for licensed professionals through interstate licensure compacts—statutorily enacted agreements among states allowing licensees to practice across state lines—and universal license recognition laws, in which a single state determines its unique process to grant a license by endorsement to a license holder from another state or territory. These policies help to solve similar problems, but there are several major differences. Notably, compacts are tailored to a particular profession and allow licensees to engage in interstate practice in all compact member states, whereas universal recognition laws attempt to account for most or all professions a state regulates, but only with regard to practice within that state’s borders. The following resource provides a summary comparison of some of the benefits states may realize from each policy.

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Comparing Universal Licensure Recognition Policies

As states seek ways to improve occupational licensure portability for out-of-state workers, “universal licensure recognition” laws have gained popularity. Since 2019, eight states have either implemented new or reworked existing license portability policies that may be defined under the universal licensure recognition model. The model generally sets less restrictive and more uniform licensure portability standards across most or all licensed occupations within the state.

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Occupational Licensing – State COVID-19 Responses

  • The COVID-19 crisis has resulted in shortages of qualified, licensed health care and other related professions that are needed to support state and local responses.
  • States have been enacting measures to modify existing licensing regulations that remove barriers that may prevent an individual to assist in response efforts.
  • Many states have been granting temporary licensure for out-of-state professionals or those that are otherwise retired, still in training, or have lapsed licenses.
  • Certain health care practitioners in some states are being granted expanded scopes of practice.
  • Other states are removing barriers to allow for greater use of telemedicine services.
  • States are also waiving or suspending certain requirements related to the maintenance or attainment of licenses where they might require physical travel, interactions or might otherwise be difficult to achieve during the crisis.
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Wisconsin Considering Sunrise Legislation

Legislation recently introduced in Wisconsin could change the way the state studies proposed occupational licensing regulations. Sponsored by Senator Chris Kapenga and Representative Rob Hutton, Senate Bill 541 calls for the establishment of a sunrise review process that would formally require certain information to be collected and analyzed during the legislative process.

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Consortium States Present Occupational Licensure Reform Successes at Washington D.C. Briefing

On November 13th, The Council of State Governments, the National Conference of State Legislatures, the National Governor’s Association, and representatives from the states participating in the Occupational Licensing Policy Learning Consortium were on hand to share some of the successes stemming from the multi-year, Department of Labor funded project. The event saw over 60 individuals in attendance, representing a variety of public and nonprofit policy organizations.

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Utah Passes Legislation Allowing Competency-Based Occupational Licensing Requirements

Traditional occupational licensing standards typically require that applicants achieve a certain number of hours of training, education and/or experience and pass a cumulative examination before a license is granted by a state. However, the time-based requirements that states implement can vary widely. For example, aspiring barbers can be required to complete between 1,000 and 2,100 hours of training, depending on the state, before they are eligible for a license. This variance in standards demonstrates the discretion states can take in setting regulations that seek to balance public protection with economic opportunity. While licensing is a means to safeguard public health and safety, overly burdensome regulations can exacerbate the economic costs of licensing such as lower economic outputs and fewer jobs.

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States Explore Occupational Licensure Reform

The consortium of states participating in the U.S. Department of Labor’s Occupational Licensing: Assessing State Policy and Practice project recently began their second round of project meetings to discuss occupational license reform. The 11 states–Arkansas, Colorado, Connecticut, Delaware, Illinois, Indiana, Kentucky, Maryland, Nevada, Utah and Wisconsin–are individually meeting to further review their licensure process, engage with policy experts and develop action plans. The state team meetings will culminate this year in the project’s second multistate learning consortium summit to be held Nov. 28-30 in Clearwater, Florida.

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