Missouri recently eliminated the “compact exception” for occupational licensing reciprocity. Show-Me Institute analysts have flagged this loophole numerous times, and it is gratifying to see these recommendations reflected in policy.
What Is the Compact Exception, and Why Does It Matter?
Currently, state law allows most professionals licensed in other states who relocate to Missouri an expedited path to receiving an occupational license. If the professional has been licensed for at least one year and remains in good standing, Missouri’s occupational licensing bodies must waive the state’s requirements and issue a license within six months of application.
This makes it easier for workers to relocate to Missouri. However, two key weaknesses remained:
- The relevant oversight body can wait up to six months to issue a waiver for those who meet the reciprocity guidelines.
- According to the old statue, Missouri’s licensing reciprocity “shall not apply to an oversight body that has entered a compact with another state for the regulation of practice under the oversight body’s jurisdiction.”
The second issue—the “compact exception”—was addressed by the recent passage of Senate Bill (SB) 150. SB 150 resolves this issue entirely.
Under the current language, if a Missouri licensing board joins a compact, it could actually make things worse for Missouri consumers. For example, all states require cosmetologists to have a license. Today, Missourians could have access to cosmetologists moving from all 50 states, because licensing requirements would be waived in our state. Now suppose Missouri joins a cosmetology compact that only has six member states. Due to the compact exception, licensing reciprocity would not apply to the other 43 states that have not joined the cosmetology compact (unless the language of the compact explicitly says otherwise).
Let’s Keep the Momentum Going in Occupational Licensing
SB 150 also expedites licensing timelines for qualified spouses of law enforcement officers moving to Missouri. The bill mandates that spouses of law enforcement officers who have a professional license in another state and remain in good standing receive a temporary license for their occupation in 30 days or less. Currently, this expedited process is only available to spouses of military members. This change in SB 150 points to the need for broader reform. As mentioned earlier, Missouri law allows the relevant oversight body to issue a reciprocal license in six months or less. Six months is far too long to wait to begin working, and all professionals seeking work in Missouri should have their applications reviewed in a timelier manner.
SB 150 eliminates one weakness of Missouri’s universal licensing reciprocity regime. It is a meaningful win, and hopefully we’ll see more reform in the future to make Missouri a more attractive state to move to.
