Universal Licensure Recognition

Khadija Murad 4/3/2020

Occupational licensing laws require workers to submit verification of training, testing, and education—and often pay associated fees—before beginning a job in their chosen field. When implemented appropriately, this can help ensure qualified individuals are practicing in a given profession and increase overall public safety and welfare. 

However, because licensing laws are established independently by each state government, significant differences and disparities in licensing requirements often exist across states. The National Bureau of Economic Research has found that interstate migration becomes limited as occupational licensing laws require workers to reverify and test to practice each time they move to or wish to work in another state. 

What Is Universal Licensure Recognition? 

Universal licensure is a state recognizing when a person’s occupational license that was granted in one state is recognized as valid in another state. This process is not automatic. Licensees must meet certain residency, testing, background check and other requirements, as well as pay all applicable fees in order to practice in the new state.  

Currently, only ArizonaMontanaNew Jersey and Pennsylvania have enacted bills that require their occupational boards to allow individuals with out-of-state licenses to obtain a valid occupational license to practice, with some limitations. 

Previous Limited-Uses of Universal Licensure

Some states have previously implemented forms of “universal" licensure at different times, typically in cases of emergencies, when involving the vocational licenses of military spouses who frequently move between states or temporary workers. Many states are currently passing bills that help ease the strain on military spouses who move frequently and want to practice an occupation that usually requires a new license. For example, in Texas, a military spouse can apply for an occupational license without new training requirements if they’re in good standing in another state that has licensing requirements substantially equivalent to their own. 

A number of states have laws that allow out-of-state license holders in certain occupations to work in a different state in the case of a state or national disaster or emergency. employees who perform disaster or emergency-related work that is specific to a state disaster or emergency to The license holder could work without being subject to state licensing or registration requirements as long as they’re in good standing with their original state’s license. If the employee stays in the state after the emergency or disaster has been mitigated, they are then subject to the normal occupational licensing laws of the state. 

These states include: 

With the recent COVID-19 pandemic, more states are looking at changing their occupational licensing requirements in emergency situations to better prepare for the high demand of certain professions. Current state legislation on the issue also aims at broadening universal licensure beyond temporary situations that focus on individual professions. 

Common Aspects Explained 

Universal licensing laws can still contain specifications about exactly how someone can transfer their licenses with them. 

Universal licensure laws, while allowing for people to bring their occupational licensing with them between states, still contain specifications licensees must meet to qualify. Qualifications can include: additional training requirements, substantially similar scope of practice, length of time applicant has had their current license, no active disciplinary proceedings or complaints, paying all applicable fees, or taking state exams. 

For example, Arizona allows a person who has held an out-of-state occupational license for at least one year to practice as long as they are a licensed professional in good standing with no pending allegations against them in their home state. 

Out-of-state occupational licenses are not automatically recognized as a person moves, and workers must still put in a new application in the states that they move to. 

Workers who move to a different state must still apply for a license through the appropriate state licensing authority before being able to work. What is commonly waived is the requirement to duplicate training for a certain amount of years that comes with most occupational licenses. The licensing requirements from the original state also might have to match the state where the individual is moving to. This is the case in Pennsylvania, where licenses from another state must have substantially similar requirements to those that are required by the occupational boards inside the state. 

Security paperwork and background checks do not move between different states. 

For example, Arizona still requires individuals who work in occupations that require background checks to complete those background checks when applying for an occupational license. A criminal background can still disqualify an individual seeking to practice inside the state. 

Individuals with out-of-state licenses typically must pay the licensing fee or take the individual state licensing test when applying in a different state.   

Individuals who apply for licensure by this model must pay all fees relevant to that application. Some universal recognition laws also require that an applicant pass the state licensing exam to qualify. Test scores from one state to another are not guaranteed to transfer. 

https://www.flsenate.gov/Session/Bill/2020/1193/BillText/er/PDF

Current State Legislation on the Issue 

State 

Bill 

Bill Description and Requirements 

Status 

Arizona 

 

 

HB 2569 

Occupational licenses shall be issued for applicants who pay all applicable fees and are residents of Arizona or are the accompanying family member of an active duty member, if: the person is currently licensed in another state for the same discipline and practice level, their license is in good standing, they have been licensed for at least one year,  and have passed a criminal background check. 

Enacted. A.R.S. § 32-4302

California 

FROM 2185 

This bill would require each board within the department to issue a license to an applicant in the discipline for which the applicant applies if the person currently holds a license in good standing in another state in the discipline and practice level for which the person applies and if the person meets specified requirements, including that the person has held the license and has practiced in the licensed field in the other state for at least three of the last five years and pays all applicable fees. 

Pending. 

Colorado 

HB 1326 

Concerning an expansion of an individual's ability to practice an occupation in Colorado through creation of an occupational credential portability program. It would apply to most professions and occupations regulated by the division of professions and occupations within the department of regulatory agencies. Requires the director of the division and most regulatory boards and commissions within the division (regulators) to strive to reduce certification, registration, and licensure barriers for applicants. 

Enacted

Florida HB 1193 An act relating to the deregulation of professions and occupations Enacted

Georgia 

HB 773 

A bill to be entitled an act to amend Title 43 of the Official Code of Georgia Annotated, relating to professions and businesses, so as to provide for reciprocal licensing of professions, occupations, and trades for individuals licensed outside of the State of Georgia; to provide for definitions; to provide for exceptions; to provide for related matters; to repeal conflicting laws; and for other purposes. 

Pending. 

Iowa 

HF 2470 

 

 

S 2393 

A bill for an act relating to qualifications for holding professional licensure in this state, including the granting of licenses to persons licensed in other states and acquiring residence in Iowa, disqualification provisions for criminal convictions, the waiver of application fees, and licensee discipline, and including effective date provisions. 

 

A bill for an act relating to the granting of professional licenses, certificates, and registrations to persons licensed in other states, and including effective date provisions. 

Pending. 

 

 

 

Pending. 

Ohio 

HB 432 

A bill to require an occupational licensing authority to issue a license or government certification to an applicant who holds a license, government certification, or private certification or has satisfactory work experience in another state under certain circumstances. 

Pending. 

Missouri 

HB 2046 

Allows individuals licensed in certain trades who move to Missouri to be able to apply for a state license by reciprocity. The individual would need to have had his or her out-of-state license for at least a year and be in good standing. 

Pending. 

Montana 

HB 105 

A board shall issue a license to practice without examination to an applicant if the board determines that the original state’s license standards are substantially equivalent and is in good standing. This does not prevent a board from entering into a reciprocity agreement with another state. 

Enacted. 

MCA § 37-1-304. 

New Jersey 

A 1531 

An act that allows for boards to issue occupational licenses to applicants who have paid the application fee and consented to a criminal background check, if: the state they received their original license from has requirements substantially similar to New Jersey’s, they have held their license for at least five years, and they are in good standing with the original state board. 

Enacted. 

NJ Rev Stat § 45: 1-7.5. 

Pennsylvania 

HB 1172 

An act providing for licensure by endorsement. Licensing board or commissions shall issue occupational licenses to applicants who hold a current license in a state whose licensing requirements are substantially equivalent to their own, have at least two years of experience, hold licenses in good standing, and pay any fees established by the board. 

Enacted. 

P.L. 292, No.41. 

Washington 

HB 2354 

The department of licensing must establish procedures to expedite the issuance of professional licenses to a person who is licensed in another state that is substantially equivalent to those required in Washington and whose license is in good standing. Applicants will be granted a temporary license to keep practicing in the state while waiting for their application to be approved. 

Pending.