Universal recognition of professional licenses to be discussed in the legislature

Photo: Jonathan Borba vía Pexels

At the beginning of the new legislative session that begins on January 13, 2025, the Senate will have before it for consideration a proposal to establish the Universal Recognition of Occupational and Professional Licenses Act in Puerto Rico, a measure authored by Senate President Thomas Rivera Schatz.

Senate Bill No. 6 proposes to facilitate labor mobility and promote economic development by simplifying and harmonizing licensing processes for professionals and regulated occupations coming from other jurisdictions in the United States.

The bill's explanatory memorandum highlights the recommendations of the Federal Trade Commission (FTC) to make these licenses transferable given that each state establishes different regulations and requirements for the various occupations and professions, which can result in an onerous burden for individuals interested in moving to other states.

It is noted that licensing laws not only create barriers to innovation, market competition, among others, but also deter people from moving from one state to another for fear of having to go through the entire process again to obtain a new occupational license. Occupational and professional licenses affect an estimated 1 in 5 workers in the United States, and these can be a substantial barrier to mobility between jurisdictions in the country and to citizens' economic freedoms.

It is reported that, at present, a total of 20 states have enacted universal recognition for occupational license holders from other states and jurisdictions in the United States.

You can read the bill here

The measure also states that the proposal is consistent with the first Fiscal Plan for Puerto Rico of 2017, entitled “Restoring Growth and Prosperity” by aligning with the proposed structural reforms, particularly with the Ease of Doing Business (EODB) initiative.

In this context, it is emphasized that reducing the requirements and simplifying the processes for granting occupational licenses facilitates labor force participation, promoting the Island's economic development.

The Fiscal Plan also mentions the importance of reviewing and streamlining occupational licenses because, compared to the continental United States, Puerto Rico has more extensive regulations. Therefore, implementing a universal licensing recognition system will increase competitiveness, reduce bureaucratic barriers, and promote the retention and attraction of skilled workers, which is essential to meet the Fiscal Plan's goals related to economic growth and improving the business environment.

Senate Bill No. 6 establishes:

• Recognition of licenses issued in other jurisdictions: The law will allow valid occupational and professional licenses from other states to be recognized in Puerto Rico, provided they meet certain requirements, such as previous experience, absence of criminal record, and good professional history.
• Facilitating the issuance of provisional licenses: The issuance of 30-day temporary licenses is authorized while validation procedures are being completed.
• Promotion of the return and retention of professionals: Seeks to attract back Puerto Rican professionals who have emigrated, especially in critical areas such as medicine, to address the shortage of essential services.
• Simplified regulation: A framework is established for local boards to evaluate and issue licenses based on harmonized criteria and in shorter times, promoting administrative efficiency.
• Emergency measures: During declared emergencies, licenses issued in other states or countries may be provisionally recognized to ensure the continuity of essential services.

The measure should be referred to the legislative committee for analysis and discussion.

This article was published originally in Spanish by Microjuris.