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Lawmakers consider standard definition for 'substantial equivalency' to speed licensure

Senate Business, Labor, and Economic Affairs Committee · February 25, 2025
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Summary

House Bill 246 would define 'substantial equivalency' across Montana's licensing code so boards and the Department of Labor apply consistent standards to out‑of‑state qualifications, aiming to reduce time-to-license and help employers recruit.

Representative Ed Buttrey presented House Bill 246 to create a single statutory definition of "substantial equivalency" for Montana's occupational licensing system so boards and department programs use a consistent standard when evaluating out-of-state qualifications.

Commissioner Sarah Swanson told the committee the issue was central to debate over prior licensing reforms and that stakeholders worked in the interim to reach consensus. Kevin Bragg, bureau chief for professional licensing, said the change would improve time-to-license for applicants by allowing licensing authorities to accept substantially equivalent education, examination and experience from other jurisdictions and by standardizing the decision-making process.

Supporters included hospitals, professional associations, trades councils and business groups, who said timely licensure helps recruit out-of-state professionals into Montana. "This will allow our health care providers the ability to timely recruit and hire professional licensees to meet the needs of our Montana communities," said Heather O'Hara of the Montana Hospital Association. Representatives of labor and business groups also testified in favor.

Committee members asked about military-training equivalency, board authority, and whether the change would apply to both trades and professions; department staff said boards retain authority to declare equivalency under the statutory definition and that the department would continue to evaluate programs without boards. The hearing ended with broad stakeholder support and readiness to consider technical amendments.