INTERSTATE MED. LIC. COMPACT; RECODIFY S.B. 303:

SUMMARY OF BILL

REPORTED FROM COMMITTEE

Senate Bill 303 (as reported without amendment)

Sponsor: Senator Roger Hauck

Committee: Health Policy

CONTENT

The bill would reenact within the Public Health Code the Interstate Medical Licensure Compact, which establishes a process that allows physicians to become licensed in multiple states.

Proposed MCL 333.16189

BRIEF RATIONALE

The bill would reenter Michigan into the Compact, which allows qualified physicians to obtain expedited licensure to practice in all other states that are Compact members. According to testimony before the Senate Committee on Health Policy, as one of the states that used to participate in the Compact, Michigan benefitted from an expedited licensure process for medical professionals across the United States that enabled them to transfer into Michigan more easily and increased the State’s number of medical professionals. Recodifying the Compact would resume these benefits.

PREVIOUS LEGISLATION

(This section does not provide a comprehensive account of previous legislative efforts on this subject matter.)

The bill is similar to House Bill 5964 from the 2023-2024 Legislative Session. House Bill 5964 passed the House, was placed on immediate passage in the Senate, but did not receive a final vote.

Legislative Analyst: Alex Krabill

FISCAL IMPACT

The bill would have a negative, indeterminate fiscal impact on the Department of Licensing and Regulatory Affairs (LARA), and likely no fiscal impact on local units of government. The aspects of the bill and the Compact described below would have a negative fiscal impact.

The bill would allow physicians to choose a qualifying state of principal licensure other than Michigan, potentially resulting in a loss of medical license revenue. It would require Michigan to issue an expedited license to an eligible physician, in addition to the licenses it currently issues for qualified allopathic and osteopathic physicians. Michigan could set a fee amount for this new expedited license, potentially offsetting the cost of establishing it.

Michigan would have to report complaints and disciplinary action against Michigan-licensed physicians to the Interstate Commission. The State also would have to share such information with other member boards upon request. Subpoenas issued by other member states would be enforceable in Michigan. This would potentially require additional regulatory and enforcement staff and resources at the Bureau of Professional Licensing within LARA.

Michigan would have to pay an annual fee to the Interstate Commission to cover its operational costs. The amount of the fee depends upon the employment and compensation decisions of the Interstate Commission's executive director. Under the Compact, the executive director has unilateral discretion to select employees and set compensation.

The executive, legislative, and judicial branches of Michigan government would have to enforce the Compact. Under the Compact, the Commission is empowered to sue a state for a failure to enforce compliance with the Compact. If Michigan were ever determined to be in default, it still would be liable for dues, obligations, and liabilities as determined by the Interstate Commission. Any State law in conflict with the Compact would be superseded by the Compact to the extent of the conflict. This could require additional costs for legal review of any laws in the Public Health Code that the Compact would supersede.

Date Completed: 5-20-25 Fiscal Analyst: Nathan Leaman

SAS\Floors2526\sb303

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.