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Occupational Licensure Interstate Compacts

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Key Message

Licensure compacts create seamless licensure portability for all members of a profession, including military spouses and service members. Compacts are state-to-state agreements that establish uniform standards to multistate practice while preserving a state’s practice act and initial licensure process. By adopting licensure compacts, states can improve military spouse employment and military family financial readiness.

Analysis

The Defense Department was authorized in the National Defense Authorization Act for fiscal year 2020 to enter into a cooperative agreement with the Council of State Governments to develop occupational licensure compacts that support professions with a high participation rate of military spouses. Section 705A of the Servicemembers Civil Relief Act recognizes that occupational licensure compacts, when available, are the preferred method for military member and spouse licensure portability.

Insights

According to the Office of People Analytics 2021 survey of active-duty spouses, 36% of military spouses require a state-issued occupational license to practice their chosen profession. And of the spouses who experienced a PCS move, 31% needed to acquire new licensure/certification at the new location, increasing their odds of low financial well-being: https://download.militaryonesource.mil/12038/MOS/Presentations/2021-active-duty-spouse-overview-briefing.pdf.

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