Gov. Chris Sununu made a splash on Valentine’s Day when he announced his budget would include universal license recognition for professionals in NH. “If you have a substantially similar license and are in good standing in another state, there’s no reason you shouldn’t have a license on Day One in New Hampshire,” Sununu said. Free market advocates rejoiced, and red tape manufacturers trembled in their boots.
According to some policy analysts, however, NH already offers universal license recognition. That is because for many occupations, state law directs regulatory boards to grant a NH license to someone licensed in another state if that state’s requirements are “substantially equivalent or higher.”
This language, “substantially equivalent,” is slightly different than the phrase in Gov. Sununu’s speech, “substantially similar.” There is also a third option used by some states, “similar scope of practice.”
Similar vs. Equivalent
While Gov. Sununu’s proposal is tied up in the budget process, there is also a separate bill in the NH House of Representatives that would move the state from “substantially equivalent” to “substantially similar,” HB 594. That bill directs the state to grant a license to anyone licensed in another state with “substantially similar” requirements.
At a public hearing for HB 594, Lindsey Courtney, executive director for the Office of Professional Licensure and Certification (OPLC), explained this difference. “The intent was to be a little less restrictive, because what we have observed is that equivalency language is often utilized even if you meet 95% of the requirements.”
Another key change in HB 594 is placing responsibility on the executive director of the OPLC to determine which states have “substantially similar” requirements. Many of NH’s licensing boards are made up of volunteers, and it has proved too onerous and complex a task for these boards to evaluate whether the licensing standards in 49 other states are “substantially equivalent.”
“Because we’ve observed that not all, actually I don’t think any, board has made an official determination as to what other states are substantially equivalent, we thought by giving it to the OPLC, in consultation with the boards, that would kind of force the issue a little bit,” said Courtney.
It remains to be seen if HB 594 will move forward independently or if occupational licensing reforms will stay in the budget bills, as proposed by Gov. Sununu. Regardless of what happens next, getting a license on “Day One” was probably a bit of hyperbole from the governor in his budget address. People from other states moving to NH will still need to apply for license recognition, complete a criminal history records check, if necessary, and pay a fee. However, the new process should cut out a lot of red tape.
Requirements vs. Scope of Practice
Some states, such as Arizona, Idaho and Kansas, have moved away from comparing licensing requirements altogether and instead recognize out-of-state licenses so long as they cover a “similar scope of practice.” Supporters of this model argue that on-the-job experience outweighs any possible difference in training and education requirements. Opponents are leery of leaving licensing standards completely in the hands of other states, however. Right now, there is no proposal to recognize licenses in NH based on similar scope of practice.
More radical licensing reform is popular among some of NH’s libertarian-leaning representatives. For example, Rep. Matthew Santonastaso (R-Rindge) introduced a 2023 bill (HB 507) that would allow any person to provide services in a licensed profession, without a license, so long as they disclose to the customer they are not licensed or certified in NH. While NH’s libertarians have gained influence in the legislature, Santonastaso had no cosponsors for his bill, and removing license requirements altogether is probably a step too far for most legislators. That being said, Gov. Sununu’s licensing reform plan does include eliminating 34 occupational licenses, from athlete agents to sonographers.
How Likely Are These Changes?
During his budget address Gov. Sununu warned, “This won’t be easy. I appreciate that we are fighting very entrenched politically connected bureaucracies that seek to stifle competition.” However, there is bipartisan support for occupational licensing reform in the NH legislature. With the pressure to address NH’s workforce shortage, it’s safe to bet that legislators will pass more universal license recognition this year.
Anna Brown is director of research and analysis for Citizens Count,a nonprofit that provides NH residents with information about their representatives and the policy issues shaping NH. For more information, visit CitizensCount.org.