SB0157: ANALYSIS AS ENACTED (Date Completed: 8-17-22) - LICENSIN REQ.; VETERAN EXEMPTIONS

RATIONALE

According to the United Service Organizations, a nonprofit organization supporting members of the military and their families, most military families relocate every two to three years. The frequency of relocation can create difficulties for members of military families who have occupations that require licensure because licensure requirements can cost time and money that the military family members cannot afford. Michigan's Department of Licensing and Regulatory Affairs (LARA) waived fees and has modified requirements for spouses of members of the Armed Forces who relocate to the State and apply for certain licenses, registrations, and certificates that they held in another state. Some people believe that the fee waivers and modified requirements should be expanded for members of military families. Accordingly, it was suggested that LARA waive fees and modify requirements for more occupations that require licensure in the State and that the fee waivers and modified requirements apply to more dependents of members of the Armed Forces or uniformed services.

CONTENT

Senate Bill 157 amended the Public Health Code to do the following:

-- Require LARA to waive the fee for an initial license or initial registration otherwise required under Article 15 (Occupations), or an application processing fee, if the applicant is actively serving in the Armed Forces or the uniformed services, served in the Armed Forces or the uniformed services and was discharged honorably, or is a dependent of a member of the Armed Forces, a member of the uniformed services, or a veteran.

-- Require an applicant to be granted an initial license or registration, without examination, if the applicant demonstrates to the satisfaction of LARA that he or she is a member of the Armed forces or the uniformed services, a veteran, or a dependent of a member of the Armed forces, a member of the uniformed services, or a veteran, and that the applicant holds a current license or registration in good standing in another State or country for the health profession for which he or she is seeking licensure or registration, among other criteria.

-- Modify the requirements an applicant who is a dependent of a member of the Armed Forces, a dependent of a member of the uniformed services, or a dependent of a veteran must meet to receive a temporary license or registration.

Senate Bill 312 amended the Occupational Code to do the following:

-- Require LARA to issue a license or certificate of registration for an occupation under the Code without examination to an individual who demonstrates to the satisfaction of LARA that he or she is a member of the Armed Forces or uniformed services, a veteran, or a dependent of a member in the Armed Forces, a member of the uniformed services, or a veteran, and holds a valid license or registration in that occupation from another state, among other criteria.

-- Prohibit LARA from issuing a license or registration as described above if it determines that the issuance of a license or registration for an occupation under the Code could result in a violation of a Federal oversight or licensing guideline for that occupation.

House Bill 4376 amended the State License Fee Act to require LARA to waive the fee for an initial license or initial registration otherwise required under the Act, or an application processing fee, if the applicant is actively serving in the Armed Forces or the uniformed services, is an individual who served in the armed forces or uniformed services and was discharged honorably, or is a dependent of a member of the armed forces, a dependent of a member of the uniformed services, or a dependent of a veteran.

House Bill 4377 amended the Skilled Trades Regulation Act to do the following:

-- Require LARA to waive the fee for an initial license or initial registration that is otherwise required under the Act, or an application processing fee, if the applicant is actively serving in the Armed Forces or the uniformed services, is an individual who served in the Armed Forces or uniformed services and was discharged honorably, or is a dependent of a member of the Armed Forces, a dependent of a member of the uniformed services, or a dependent of a veteran.

-- Modify the requirements that an applicant who is a dependent of a member of the Armed Forces, a dependent of a member of the uniformed service, or a dependent of a veteran must meet to receive a temporary license or registration.

-- Require LARA to issue a license or a certificate of registration for an occupation under the Act without examination to an individual who demonstrates to the satisfaction of LARA that he or she is a member of the Armed Forces or uniformed services, a veteran, or a dependent of a member of the Armed Forces, a member of the uniformed services, or a veteran and holds a valid license or registration in that occupation from another state, among other criteria.

Each bill took effect September 7, 2021.

Senate Bill 157

Fee Waiver

Generally, the Public Health Code governs the licensing of health professionals in Michigan. The Code requires each application for a license or registration to be accompanied by a nonrefundable application processing fee. The Code also allows LARA to require that the application be accompanied by a fee for a required examination or inspection or the fee for the initial license or registration period. The bill specifies that these provisions do not apply as described below.

Under the bill, LARA must waive the fee for an initial license or initial registration that was otherwise required under Article 15 (Occupations), or an application processing fee charged by LARA for an initial license or initial registration, if the applicant meets one of the following requirements:

-- Is actively serving in the armed forces or the uniformed services.

-- Is an individual who served in the Armed Forces and he or she provided to LARA a form DD214, form DD215, or any other form that was satisfactory to LARA that demonstrated he or she was separated from that service with an honorable character of service or under honorable conditions (general) character of service.

-- Provides proof acceptable to LARA that he or she is a dependent of either a member of the Armed Forces, a member of the uniformed services, or a veteran.

Previously, the Code defined "Armed Forces" as the United States Army, Air Force, Navy, Marine Corps, or Coast Guard or other military force designated by Congress as part of the Armed Forces of the United States. The bill defines "Armed Forces" as the United States Army, Air Force, Navy, Marine Corps, Space Force, or Coast Guard or other military force designated by Congress as part of the Armed Forces of the United States, including the reserve components.

Under the bill, "dependent" means a spouse, surviving spouse, child who is under 26 years of age, or surviving child who is under 26 years of age. "Veteran" means that term as defined in Section 1 of Public Act 190 of 1965: an individual who served in the United States Armed Forces, including the reserve components, and was discharged or released under conditions other than dishonorable, including an individual who died while on active duty in the United States Armed Forces. "Uniformed services" means the Commissioned Corps of the United States Public Health Service and the National Oceanic and Atmospheric Administration Commissioned Officer Corps.

The Code also prescribes certain fees for an individual licensed or seeking licensure to practice as a dentist, dental assistant, dental hygienist, or dental therapist. The Code requires LARA to waive the application processing and license fees for an initial license to engage in practice as a dental assistant if he or she, while on active duty as a member of the Armed Forces, serves as a military dental specialist and was separated from service with an honorable character of service or under honorable conditions (general) character of service in the armed forces. The Code required the applicant to provide a form that was satisfactory to LARA to be eligible for this waiver. The bill deleted this requirement.

(Generally, Form DD214 is issued to a military service member after retirement, separation, or discharge from active duty in the United States Armed Forces. A Form DD215 is used to correct errors to a Form DD214.)

Initial License or Registration

Under the bill, notwithstanding any other provision of Article 15 to the contrary, an applicant must be granted an initial license or initial registration, without examination, if the applicant meets all the following:

-- Demonstrates to the satisfaction of LARA that he or she is a member of the Armed forces or the uniformed services, a veteran, or a dependent of either a member of the Armed forces, a member of the uniformed services, or a veteran.

-- Demonstrates to the satisfaction of LARA that he or she holds a current license or registration in good standing in another State or country for the health profession for which the applicant is seeking licensure or registration in the State and LARA determines that the requirements for licensure or registration in the other state or country are substantially equivalent to or exceed the requirements of Article 15 and rules promulgated by LARA, in consultation with the applicable board, under Article 15.

-- Demonstrates to the satisfaction of LARA that he or she is competent in the health profession for which he or she is seeking licensure or registration, as demonstrated by the applicant's training or experience or by another method prescribed by LARA, in consultation with the applicable board.

-- He or she complies with Section 16174(3) so that a criminal history check is conducted in the manner prescribed.

(Section 16174(3) of the Code requires an applicant for initial licensure or registration to submit his or her fingerprints to the Department of State Police (MSP) to have a criminal history check conducted. The Section also requires the MSP to forward the fingerprints to the Federal Bureau of Investigation (FBI) for a national criminal history check.)

Temporary License; Veterans

Previously, the Code authorized LARA to issue a temporary license to an individual who met certain conditions, including an applicant who met all the following:

-- He or she provided proof acceptable to the board that he or she was married to a member of the Armed Forces of the United States who was on active duty.

-- He or she provided proof acceptable to the board that he or she held a current license in good standing, or a current registration in good standing, in that health profession, issued by an equivalent licensing department, board, or authority in another state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, another territory or protectorate of the United States, or a foreign country.

-- He or she provided proof acceptable to the board that his or her spouse was assigned to a duty station in Michigan and that he or she was also assigned to a duty station in Michigan under his or her spouse's permanent change of station orders.

-- He or she complied with Section 16174(3) so that a criminal history check was conducted in the prescribed manner.

Under the bill, instead, LARA must grant a temporary license or registration to an applicant who meets all the following:

-- He or she provides proof acceptable to LARA that he or she is a dependent of a member of the Armed Forces, a dependent of a member of the uniformed services, or a dependent of a veteran.

-- The applicant provides proof acceptable to LARA that he or she holds a current license or registration in good standing, in that health profession, issued by an equivalent licensing department, board, or authority in another state or country, as determined by LARA, in consultation with the applicable board.

-- He or she complies with Section 16174(3) so that a criminal history check is conducted in the prescribed manner.

Senate Bill 312

Temporary License or Certificate

Generally, the Occupational Code governs the licensing of certain occupations in the State including accountancy, cosmetology, and residential building, among other things. The Code allows LARA to grant a nonrenewable temporary license or certificate of registration to an applicant for licensure or registration, or a transfer thereof, if the applicant previously has not been denied a license or certificate of registration or had a license or a certificate of registration revoked or suspended.

In addition to a temporary license or certificate of registration described above, the Code required LARA to grant a temporary license or certificate of registration for an occupation under the Code to an applicant who met all the following requirements:

-- He or she provided proof acceptable to LARA that he or she was married to a member of the Armed Forces who was on active duty.

-- He or she provided proof acceptable to LARA that he or she held a current license or registration in good standing in that occupation, issued by an equivalent licensing department, board, or authority, as determined by LARA, in another state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, another territory or protectorate of the United States, or a foreign country.

-- He or she provided proof acceptable to LARA that his or her spouse was assigned to a duty station in Michigan and that he or she was also assigned to a duty station in the State under his or her spouse's permanent change of station orders.

Under the bill, instead, LARA must grant a temporary license or certificate of registration to an applicant who meets both of the following:

-- Provides proof acceptable to LARA that he or she is a dependent of a member of the Armed Forces, a dependent of a member of the uniformed services, or a dependent of a veteran.

-- Provides proof acceptable to LARA that he or she holds a current license in good standing, or a current registration in good standing, in that occupation, issued by an equivalent licensing department, board, or authority, as determined by LARA, in consultation with the board, in another state of the United States or a foreign country.

The Code defines "Armed Forces" as that term is defined in Section 2 of the Veteran Right to Employment Services Act. Instead, under the bill, "Armed Forces" means the United States Army, Air Force, Navy, Marine Corps, Space Force, or Coast Guard or other military force designated by Congress as part of the Armed forces of the United States, including the reserve components.

"Uniformed services" means the Commissioned Corps of the United States Public Health Service and the National Oceanic and Atmospheric Administration Commissioned Officer Corps.

"Dependent" means a spouse, surviving spouse, child under 26 years of age, or surviving child under 26 years of age. "Veteran" means that term as defined in Section 1 of Public Act 190 of 1965: an individual who served in the United States Armed Forces, including the reserve components, and was discharged or released under conditions other than dishonorable, including an individual who died while on active duty in the United States Armed Forces.

License or Certificate

Under the bill, subject to provisions described below, LARA must issue a license or a certificate of registration for an occupation under the Code without examination to an individual who demonstrates to LARA's satisfaction that he or she meets all the following at the time of application:

-- Provides proof that the individual is a member of the Armed Forces or uniformed services, a veteran, or a dependent of a member of the Armed Forces, a member of the uniformed services, or a veteran.

-- Has not had a license or registration revoked, and has not surrendered voluntarily a license or registration, in any other state of the United States or a foreign country while under investigation for unprofessional conduct.

-- Has not had discipline imposed by an equivalent licensing department, board, or authority in another state of the United States, and if so, LARA must determine if the cause for the action is corrected and the matter resolved and may not issue or deny a license or registration until the matter is resolved.

-- Does not have a complaint, allegation, or investigation pending before an equivalent licensing department, board or authority in another state of the United States or a foreign country that relates to unprofessional conduct, and if so, LARA must suspend the application process and may not issue or deny a license or registration to the applicant until the complaint, allegation, or investigation is resolved.

-- Pays all applicable fees.

-- Is of good moral character.

-- Meets the age requirement of that occupation under the Code, if applicable.

In addition, the bill requires an applicant, at the time of application, to hold a valid license or registration in that occupation from an equivalent licensing department, board, or authority, as determined by LARA, in at least one other state of the United States. For each license or registration that he or she holds, all the following must be met:

-- The license or registration is in good standing and he or she has held that license or registration for at least one year.

-- There are minimum education requirements and, if applicable, work experience requirements in effect for license or registration in the other state, and the other state verifies that he or she meets those requirements for licensure or registration in that state.

-- If the other state required an examination for licensure or registration, he or she passed the examination.

-- The requirements for licensure or registration in the other state are substantially equivalent to or exceed the requirements of the Code and any rule promulgated under the Code for the license or registration.

The bill specifies that if LARA determines that the issuance of a license or a certificate of registration as described above may result in a violation of a Federal oversight or licensing guideline for that occupation, LARA may not issue a license or a certificate of registration. The bill also specifies that the provisions above do not prevent LARA from issuing a temporary license under Section 213, a courtesy license under Section 1806a, or issuing a license under Section 726, Section 1108(2), Section 1211, Section 1806(9), Section 2013, Section 2209, or Section 2623 of the Code.

(Section 213 of the Code allows LARA to grant a temporary license or certificate of registration as described above. Section 1806a allows LARA to issue a courtesy license, a license that is subject to certain restrictions, to engage in the practice of mortuary science to an individual who meets certain requirements. Section 2013 requires LARA to issue a license to a person who holds an appropriate certificate of qualification from another state or national council for the registration of architects, professional engineers, or professional surveyors under certain circumstances.

Sections 1211, 1108(2), 1806(8), 726, 2209, and 2623 require LARA to issue a license under certain circumstances provided in those Sections to individuals licensed in another state to perform cosmetology, barber services, mortuary science services, accountancy, landscape architect services, or services provided by certain real estate appraisers.)

Residential Builder Initial License

Under the Code, an applicant for initial licensure either as a residential builder or as a residential maintenance and alteration contractor must complete successfully the prelicensure course of study requirements prescribed by the Code to obtain a license unless he or she is exempt from those requirements. Subject to certain provisions, an applicant for initial licensure as a residential builder or residential maintenance and alteration contractor is exempt from the requirement above if he or she meets certain conditions with respect to his or her service in the Armed Forces. As used here, the Code defined "Armed Forces" as that term is defined in Section 2 of the Veteran Right to Employment Services Act. The bill deleted this definition.

House Bill 4376

Fee Waiver

The State License Fee Act provides for the establishment and collection of fees for certain occupations in the State, such as public accountants, architects, and barbers, among other occupations. The Act requires LARA to waive the fee for an initial license or initial registration that is otherwise required under the Act, or an application processing fee charged by LARA for an initial license or registration, if the applicant is an individual who served in the Armed Forces and he or she provides LARA a form DD214, form DD215, or any other form that is satisfactory to LARA that demonstrates he or she was separated from that service with an honorable character of service or under honorable conditions (general) character of service.

In addition, the bill requires LARA to waive the fees as described above if the applicant meets one of the following requirements:

-- Is an individual who served in the uniformed services and he or she provides to LARA a form DD214, form DD215, or any other form that is satisfactory to LARA that demonstrates he or she was separated from that service with an honorable character of service or under honorable conditions (general) character of service.

-- Is actively serving in the Armed Forces or the uniformed services.

-- Is a dependent of a member of the Armed Forces, a dependent of a member of the uniformed services, or a dependent of a veteran and he or she provides proof acceptable to LARA that he or she is a dependent.

The Act defined "Armed Forces" as that term is defined in Section 2 of the Veteran Right to Employment Services Act. Instead, under the bill, "Armed Forces" means that term as defined in Section 103 of the Occupational Code. "Uniformed services" means that term as defined in Section 105 of the Occupational Code. "Veteran" means that term as defined in Section 1 of Public Act 190 of 1965: an individual who served in the United States Armed Forces, including the reserve components, and was discharged or released under conditions other than dishonorable. "Dependent" means that term as defined in Section 104 of the Occupational Code.

House Bill 4377

Initial Licensure

The Skilled Trades Regulation Act generally regulates certain occupations in the skilled trades and requires LARA to establish license fees for those occupations. Under the Act, LARA must waive the fee for an initial license or initial registration that is otherwise required under the Act, or an application processing fee charged by LARA for an initial license or initial registration, if the applicant is an individual who served in the Armed Forces and he or she provides to LARA a form DD214, form DD215, or any other form that is satisfactory to LARA that demonstrates he or she was separated from that service with an honorable character of service or under honorable conditions (general) character of service.

In addition, the bill requires LARA to waive the fees as described above if the applicant meets one of the following requirements:

-- Is actively serving in the Armed Forces or the uniformed services.

The Act defined "Armed Forces" as the United States Army, Air Force, Navy, Marine Corps, or Coast Guard or other military force designated by Congress as a part of the Armed Forces of the United States. Instead, under the bill, "Armed Forces" means the United States Army, Air Force, Navy, Marine Corps, Space Force, or Coast Guard or other military force designated by Congress as a part of the Armed Forces of the United States, including the reserve components. "Uniformed services" means the Commissioned Corps of the United States Public Health Service and the National Oceanic and Atmospheric Administration Commissioned Officer Corps. "Dependent" means a spouse, surviving spouse, child under 26 years of age, or surviving child under 26 years of age. "Veteran" means that term as defined in Section 1 of Public Act 190 of 1965.

Temporary License

Previously, the Act required LARA to grant a temporary license under the Act to an individual who applies for a temporary license if the applicant met the following requirements:

-- He or she provided proof acceptable to LARA that he or she was married to an individual who was serving in the Armed Forces and was on active duty.

-- He or she provided proof acceptable to LARA that he or she held a current license in good standing, or a current registration in good standing, in the trade or occupation for which he or she was seeking a temporary license, issued by an equivalent licensing department, board, or authority, as determined by LARA, in another state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, another territory or protectorate of the United States, or a foreign country.

-- He or she provided proof acceptable to LARA that his or her spouse was assigned to a duty station in the State and that he or she was also assigned to a duty station in the State under his or her spouse's permanent change of station orders.

Instead, under the bill, LARA must grant a temporary license under a specific article of the Act if the applicant meets all the following:

-- He or she provides proof acceptable to LARA that he or she is a dependent of a member of the Armed Forces, a dependent of a member of the uniformed services, or a dependent of a veteran.

-- He or she provides proof acceptable to LARA that he or she holds a current license in good standing, or a current registration in good standing, in the trade or occupation for which he or she is seeking a temporary license, issued by an equivalent licensing department, board, or authority, as determined by LARA, in consultation with the board of that occupation, in another state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, another territory or protectorate of the United States, or a foreign country.

License or Certificate

Under the bill, LARA must issue a license or a certificate of registration for an occupation under the Act without examination to an individual who demonstrates to the satisfaction of LARA that he or she meets all the following at the time of application:

-- Has not had discipline imposed by any equivalent licensing department, board or authority in another state of the United States, and if so, LARA must determine if the cause for the action is corrected and the matter resolved and may not issue or deny a license or registration until the matter is resolved.

-- Does not have a complaint, allegation, or investigation pending before an equivalent licensing department, board, or authority in another state of the United States or a foreign country that relates to unprofessional conduct, and if so, LARA must suspend the application process and may not issue or deny a license or registration to the applicant until the complaint, allegation, or investigation is resolved.

-- Pays all applicable fees.

-- Is of good moral character.

-- Meets the age requirement of that occupation under the Act, if applicable.

In addition, the bill requires an individual to demonstrate to the satisfaction of LARA that he or she holds a valid license or registration in that occupation from an equivalent licensing department, board, or authority, as determined by LARA, in at least one other state of the United States. For each license or registration that he or she holds, the following must be met:

-- The license or registration is in good standing and he or she has held that license or registration for at least one year.

-- There are minimum education requirements and, if applicable, work experience requirements in effect for licensure or registration in the other state, and the other state verifies that he or she met those requirements for licensure or registration in that state.

-- If the other state required an examination for licensure or registration, he or she passed it.

-- The requirements for licensure or registration in the other state are substantially equivalent to or exceeded the requirements of the Act and any rule promulgated under the Act for the license or registration.

The bill specifies that the provisions above do not prevent LARA from issuing a temporary license under Section 219 or issuing a license under Section 731(5), 907(3), or 1019(1).

(Section 219 of the Act allows LARA to grant a temporary license as described above. Section 731(5) of the Act allows LARA to issue a license without examination to an individual seeking electric sign specialty licensure if he or she is licensed, registered, or otherwise regulated in another state. Section 907(3) allows the Board of Boiler Rules to register without examination an applicant for the use of a certain titles under the Act, such as "registered boiler operator" or "registered stationary engineer", if the applicant is a boiler operator or stationary engineer who is licensed as such in another state, country, or municipality. Section 1019(1) allows the State Construction Code Commission to register or reregister without examination as a building official, inspector, plan reviewer, fire protection system inspector, or fire protection system plan reviewer, an applicant who is licensed or certified under the laws of another state.)

MCL 333.16103 et al. (S.B. 157)

339.103 et al. (S.B. 312)

328.2204 (H.B. 4376)

339.5103 et al. (H.B. 4377)

ARGUMENTS

(Please note: The arguments contained in this analysis originate from sources outside the Senate Fiscal Agency. The Senate Fiscal Agency neither supports nor opposes legislation.)

Supporting Argument

Studies on the frequent relocation of military families show that these moves can disrupt family stability, deter service member retention, and decrease spousal employment. The RAND Corporation, a nonprofit, nonpartisan research organization focused on public policy, reports that problems related to spousal employment were the second-most frequently mentioned negative aspect of military families' relocations.[1] Spousal employment problems include involuntary underemployment, difficulty in finding a job, and delays in employment because of a state's licensing, registration, or certification requirements for certain occupations.

Spousal employment problems warrant policy solutions because they diminish military member retention and satisfaction. One way to deter spousal employment problems is to streamline licensing requirements. With a relocation every three years on average, state license fees can become expensive and licensing requirements, such as continued education and testing requirements, can become overbearing. In addition, these employment difficulties can apply to dependents of military members. Waiving initial license and registration fees and modifying the requirements for those initial licenses and registrations for more occupations in Michigan will

[1] Tong, P.K., et al., Enhancing Family Stability During a Permanent Change of Station: A Review of Disruptions and Policies, p. 10, 2018.