The Michigan House has passed a bill directing the state to join a national licensing compact for physical therapists. National compacts exist for many occupations, and they let people licensed similarly in one state immediately begin working in all the states in the compact.

House Bill 4504 enters the state into the Physical Therapy Licensure Compact and House Bill 4505 makes related changes to state law governing physical therapists. Together, the bills would make it easier for physical therapists to work in Michigan and they increase the chances that some will move here. Studies show that licensing requirements significantly reduce the chance people will move into a state, with one estimating it makes them 36% less

Joining a compact for a specific occupation is good. But universal recognition would be better.

What’s universal recognition? “Under universal license recognition,” the Institute for Justice says, “eligible applicants must hold a license in good standing in their home state. Applicants also cannot have any pending disciplinary action from the relevant board or a criminal record that would disqualify them from obtaining the license in the recognizing state. Applicants may still be required to pay fees or take exams administered by the board in the recognizing state. Universal recognition does not affect interstate compacts.”

In Arizona, anyone can move into the state and have their license or experience in an occupation immediately accepted. More than 4,000 people have taken advantage of this policy.

Michigan is quickly becoming an outlier for not passing universal recognition. Twenty states, including neighboring Ohio, have passed some version of this law.

The state should pass a universal recognition bill to help stem the worker shortage and turn around Michigan's population crisis.

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