REPORT ON LEGISLATION BY THE COMMITTEE ON MILITARY AFFAIRS AND JUSTICE. A.4394 M. of A. Ortiz S.2947 Sen. Ritchie

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1 REPORT ON LEGISLATION BY THE COMMITTEE ON MILITARY AFFAIRS AND JUSTICE CONTACT LEGISLATIVE AFFAIRS DEPARTMENT MARIA CILENTI ELIZABETH KOCIENDA A.4394 M. of A. Ortiz S.2947 Sen. Ritchie AN ACT to amend the education law, the general business law, the insurance law and the real property law, in relation to licensing of military spouses with out-of-state licenses in equivalent occupations. INTRODUCTION THIS BILL IS APPROVED This report is respectfully submitted by the Committee on Military Affairs and Justice (the Committee ) of the New York City Bar Association (the City Bar ), an organization of more than 24,000 legal professionals dedicated to improving the administration of justice. The City Bar supports A.4394/S.2947, 1 which would amend New York s education law, general business law, insurance law, and real property law, as the bill would make it easier for military spouses to obtain a license, certification, or registration in their field or profession where the military spouse has already obtained an equivalent license, certification, or registration in that field or profession in another state. Military members and their families are often subjected to frequent relocation to different states every few years. Many military spouses are employed in fields that require licensing, certification, or registration by the state in which they reside. Relocation of a military family to New York may render the spouse unemployable in his or her field until he or she becomes licensed, certified, or registered in New York. Thus, dual-income military families are placed at an economic disadvantage until the spouse is admitted to his or her profession in New York. The proposed legislation seeks to remove this disadvantage by granting New York licenses in particular occupations and professions to military spouses who previously met the licensing requirements of another state in the same occupation or profession and where it has been determined that the out-of-state licensing standards are not lower than New York s. The Committee has reviewed this bill, and submits this memorandum in support of the 1 The bill passed unanimously in the Senate in 2014 (S.5205). THE ASSOCIATION OF THE BAR OF THE CITY OF NEW YORK 42 West 44 th Street, New York, NY

2 proposed legislation. RATIONALE FOR THE LEGISLATION Members of the U.S. Armed Forces dedicate their careers to the service of this country, often in dangerous locations, placing their lives at risk. Accordingly, all efforts should be made to ensure that military families are provided with all opportunities to maximize their families' earning potential. For military spouses, this goal means providing them with the ability to practice and advance in the occupation or profession of their choice, with their spouses military service having minimal impact on their careers and working lives. The average assignment to a stateside military installation lasts two to four years and can be as short as six months to one year. A career service member who spends 20 years in the military may be forced to relocate his or her family many times throughout those 20 years. Each transfer not only takes a psychological and emotional toll on the family, but also creates serious challenges to continuity of spousal employment. This problem is especially acute when military spouses are employed in professions and occupations requiring state licenses, certificates, or registrations (e.g., plumbers, real estate professionals, cosmetologists). These transfers slow spouses prospects for career advancement; and they burden the military spouses with the challenge of acquiring new licenses in their new state, while at the same time forcing them to adapt to a new job market in a different part of the country. Due to the modest wages of service members, many military families are dual-income, and onerous state licensing requirements can result in military families losing an entire source of income for a significant period of time. All too often, this can result in underemployment or reliance on state assistance programs (e.g., food stamps). 2 New York is home to numerous active duty and reserve military installations, including Fort Drum, the United States Military Academy at West Point, Fort Hamilton, Garden City, multiple air bases, and hundreds of recruiting centers. The economic impact on military families that are transferred to New York has prompted the New York State Senate to pass a bill that would ease licensing requirements for military spouses licensed in a particular profession in another state. HIGHLIGHTS OF THE BILL The bill was introduced as AN ACT to amend the education law, the general business law, the insurance law and the real property law, in relation to licensing of military spouses with out-of-state licenses in equivalent occupations. The bill amends Section 6501 of the Education Law 3 by offering military spouses 2 Nationwide, an average of $100 million in food stamp assistance is given to military families each year. 3 This section covers all professions licensed under Title 8 of the Education Law, including, for example, chiropractors, pharmacists, architects, social workers, dieticians and nutritionists, interior designers, and athletic trainers. 2

3 admission in a profession requiring a license by submitting: a signed affidavit to accompany the application for licensure stating that the entries in the application are true and accurate and that documentation has been requested providing satisfactory verifying evidence of licensure to practice an equivalent occupation issued by any other state... in lieu of the submissions required by the article of this chapter for the particular profession. The board of regents shall issue a license based on the application, provided that the entries in such application show that such license was granted in compliance with standards which were, in the judgment of the board of regents, not lower than those of this state. Similarly, Article 2-A is added to amend the General Business Law (GBL) 4 to read: Section 20. Admission to a profession; licensing, certification or registration. * * *... Admission to practice of a profession governed by this chapter in this state is accomplished, where required, by a license, certification or certificate of registration being issued to a qualified applicant by the secretary of state. To qualify for a license, certification or certificate of registration an applicant shall meet the requirements prescribed in the article for the particular profession and shall meet the requirements prescribed in section of the general obligations law; provided that, notwithstanding any provision of the law to the contrary, any applicant who is the spouse of a member of the armed forces of the United States, national guard or reserves may submit a signed affidavit to accompany the application for licensure, certification or registration, stating that the entries in the application are true and accurate, and that documentation has been requested providing satisfactory verifying evidence of licensure, certification or registration to practice an equivalent occupation issued by any other state, territory, protectorate or dependency of the United States in lieu of the submissions required by the article of this chapter for the particular profession. Like the amendment to Educ. Law 6501, new GBL Article 2-A would only allow a license, certificate or registration to be issued to a military spouse provided the entries in such 4 This section covers commercial businesses such as junk dealers, collateral loan brokers, and security guards licensed by the Department of State rather than the Department of Education. 3

4 application show that such license, certification or certificate of registration was granted in compliance with standards which were, in the judgment of the secretary, not lower than those of this state. Currently, subsection (d) of section 2136 of the New York Insurance Law provides reciprocity to insurance agents and brokers, excess line brokers, reinsurance intermediaries, insurance consultants, and adjusters if: (a) the applicant has a current and valid license in his or her home state and is in good standing in his or her home state; (b) the applicant has submitted a completed application in the form prescribed by the superintendent or submitted the application for licensure submitted to his or her home state; (c) the applicant has paid the fees required by this chapter; and (d) the applicant's home state awards nonresident insurance producer licenses to residents of this state on the same basis as provided in this subsection. The bill would amend subsection (d) to provide reciprocity in an additional circumstance where the applicant is the spouse of a member of the armed forces of the United States, national guard or reserves. Section 442-g(6) of the New York Real Property Law (RPL) already extends reciprocity to military spouses who are licensed real estate brokers and real estate salespeople in other states. Section 442-g would be amended to allow nonresident military spouses to engage in the real estate business in New York even if their real estate license was issued by another state. However, in such circumstances, the license must have been granted in compliance with standards which were, in the judgment of the secretary, not lower than those of this state. Similarly, Section 444-e of the RPL already provides reciprocity for professional home inspectors generally. This section would be amended to require the applicant to submit a signed affidavit... providing satisfactory verifying evidence of licensure to practice an equivalent occupation issued by any other state... in lieu of the evidence of education, experience and examination required by subdivision one of this section. Again, the application must show that such license was granted in compliance with the standards which were, in the judgment of the secretary, not lower than those of this state. SUPPORT FOR THE LEGISLATION A number of states have already had success in passing similar legislation. For example, in April 2013, the Governor of Maryland approved Senate Bill 273, the Veterans Full Employment Act, which expedites the licensing, certification, and registration process for service members, veterans, and military spouses engaged in certain health and financial service occupations. 5 Similarly, in Massachusetts, on May 31, 2012, Governor Patrick signed into law 5 See 4

5 the Veterans Access, Livelihood, Opportunity and Resources Act (VALOR Act). Under the VALOR Act, the Division of Professional Licensure (DPL) is required to expedite the licensure process for military spouses who are licensed by professional licensing boards of other states. The VALOR Act II, signed by Governor Patrick on April 3, 2014, provides that the DPL will also waive a portion of the licensure fees for applicants under the VALOR Act. 6 While RPL sections 442-g and 444-e assist military spouses in obtaining New York real estate licenses, New York is only one of a few states that have not enacted similar legislation to assist military spouses engaged in a wider group of occupations. 7 Military service members, along with their families, are asked to make numerous sacrifices as they dedicate their careers to defending America. As service members are paid modest wages, a military spouse should be provided with every opportunity to earn a living and develop a career, regardless of where the Department of Defense decides to station the service member. The numerous relocations that a military family may be subjected to throughout the service member s career should not be a detriment to that family s earning potential. By allowing military spouses who are licensed to practice a particular profession to practice that profession in New York without requiring them to repeat the licensure process they completed in another state, the proposed legislation provides both economic and stress relief to military families. CONCLUSION In New York, acquiring a professional license, registration or certification can be timeconsuming and expensive. The proposed bill would result in a military spouse obtaining a license, registration or certification in less time, and without sacrificing the standards of the profession at issue. Indeed, applicants must demonstrate that their former state license meets all of the minimum requirements for licensure in the equivalent profession in New York. For these reasons, we support enactment of the bill. Reissued February See 7 A complete list of states that have enacted legislation supporting portability of military spouse careers, either by endorsements, temporary licensure, or expedited review, can be found on the National Military Family Association webpage, at 5