NC to recognize occupational licenses from border states under new law

North Carolina professionals moving from neighboring states will soon have a clearer path to continuing their careers, thanks to the advancement of the Neighbor State License Recognition Act (House Bill 763). Sen. Timothy Moffitt, R-Henderson, presented the bill to the Senate Rules and Operations Committee on June 19.

The legislation allows individuals licensed in Georgia, South Carolina, Tennessee, Virginia, or West Virginia to apply for equivalent occupational licenses in North Carolina without having to start the process from scratch.

The law applies to a wide range of professions regulated by state licensing boards, but excludes certain fields, including healthcare providers, architects, engineers, lawyers, CPAs, veterinarians, and licensed financial professionals. Those industries will continue to operate under their own licensing standards and reciprocity agreements.

Opening doors across state lines

When answering a question posed by Sen. Warren Daniel, R-Burke, on whether this is a reciprocity bill, Moffitt explained that this bill aims to make it easier for license holders to continue their occupations.

“If you’re an occupational license holder in one of these five states, and you establish residency in North Carolina, instead of going through the hurdles to get that occupational license, this would grant you an automatic license,” he said.

Daniel followed up with a hypothetical situation.

“Say you’re licensed in North Carolina, but you live in Virginia. In order for this to apply, are we requiring the other state to give us the same treatment, or is this a unilateral benefit that we are giving to these other states?” he asked.

Moffitt deffered to staff to answer the question.

“It would be unilateral,” said Aaron McGlothlin of the Legislative Analysis division.

“So, the recognition of somebody who may be licensed in Virginia, but then moves and has residency in North Carolina, it wouldn’t be contingent on how Virginia treats North Carolina licensees,” he furthered.

Daniel contended that it may be worth seeing reciprocity from other states under this bill.

“If you think we ought to require some goodwill from the other states, then think about it,” he said.

Sen. Paul Lowe, D-Forsyth, echoed the concerns of Daniel regarding reciprocity.

“There ought to be some kind of reciprocity here. And if they don’t recognize us, why are we recognizing them?” he asked Moffitt.

Moffitt agreed but noted that it would be difficult to “move the legislative bodies of five neighboring states.”

North Carolinians in need of easing license barriers

North Carolina licenses more occupations than 40 other states, according to a paper released in March by economists Edward Timmons and Conor Norris for the John Locke Foundation.

Moffitt emphasized the need for occupational licensing reform in North Carolina by referring to the history of the bill.

“This was actually born out of the recovery issues that we’re having regarding Helene,” he said.

“We don’t have enough occupational license holders for the amount of work that needs to be done,” Moffitt said. “When these folks come to North Carolina to do the work, and they establish residency — because this is going to be over several years — this is a way to go ahead and deploy them into the field to let them do the work.”

The bill passed out of the Senate Rules committee and is headed to the floor for a vote next week.

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