SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2388
As Amended by House Committee of the Whole
Brief*
HB 2388, as amended, would require licensing bodies to
provide verified electronic credentials, in addition to paper-
based credentials, to all credential holders and utilize a
centralized electronic credential data management system.
Paper-based and Verified Electronic License,
Registration, or Certification
The bill would require licensing bodies to provide verified
electronic credentials to persons regulated by the licensing
body not later than January 1, 2025.
The bill would require licensing bodies, upon submission
of a completed application, to issue a paper-based and
verified electronic license, registration, or certification to an
applicant so that the applicant may lawfully practice the
person’s occupation.
The bill would also require that an applicant who holds a
valid current license, registration, or certification in another
state, district, or territory of the United States receive a paper-
based and verified electronic license, registration, or
certification if certain conditions are met.
The bill would allow a licensing body to satisfy any
requirement to provide a paper-based license, registration,
certification, or permit by issuing an electronic credential to an
applicant in a format that permits the applicant to print a
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
paper copy of such electronic credential. Such paper copy
would be considered a valid license, registration, certification,
or permit.
Centralized Electronic Credential Data Management
Systems
Subject to appropriations, the bill would require the
Secretary of Administration (Secretary) to develop and
implement a uniform or singular license verification portal for
the purpose of verifying or reporting license statuses such as
credentials issued, renewed, revoked, or suspended by
licensing bodies or that have expired or otherwise changed in
status on or before January 1, 2025. The Secretary would be
permitted to utilize the services or facilities of a third party for
the central electronic record system. The bill would also
require the central electronic record system to comply with
the requirements adopted by the Information Technology
Executive Council.
The centralized electronic credential data management
system would include an instantaneous verification system
that is operated by the licensing body’s respective secretary,
the secretary’s designee, or the Secretary’s third party agent
on behalf of the licensing body for the purpose of instantly
verifying the authenticity and validity of electronic credentials
issued by the licensing body. The bill would require the
centralized electronic credential data management systems
to maintain an auditable record of credentials issued by each
licensing body.
The bill would require each licensing body, beginning
January 1, 2025, to integrate with the uniform or singular
license verification portal in the manner and format required
by the Secretary indicating any issuance, renewal,
revocation, suspension, expiration, or other change in status
of an electronic credential.
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The bill would state that no charge for the establishment
or maintenance of the uniform or singular license verification
portal shall be imposed on any licensing body or any person
with a license, registration, certification, or permit issued by a
licensing body.
The bill would also state that a licensing body would not
be prohibited or prevented from developing, operating,
maintaining, or using a separate electronic credential system
of the licensing body or of a third party in addition to making
reports to the central electronic record system or from
participating in a multi-state compact or a reciprocal
licensure, registration, or certification process as long as the
separate electronic credential system of the licensing body
integrates with the uniform or singular license verification
portal.
Exception for Certification of Law Enforcement Officers
The bill would exempt the certification of law
enforcement officers pursuant to the Kansas Law
Enforcement Training Act from the credentialing provisions
related to military servicemembers, military spouses, and
individuals establishing residency in Kansas, including the
electronic credentialing requirements.
Definitions
The bill would define the term “electronic credential” or
“electronic certification, license or registration” to mean an
electronic method by which a person may display or transmit
to another person information that verifies the status of a
person’s certification, licensure, registration or permit as
authorized by a licensing body and is equivalent to a paper-
based certification, license, registration or permit.
The bill would define the term “person” to mean a
natural person.
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The bill would also define the term “verification system”
to mean an electronic method by which the authenticity and
validity of electronic credentials are verified.
Background
The bill was introduced by the House Committee on
Commerce, Labor and Economic Development at the request
of a representative of ASPIRE.
House Committee on Commerce, Labor and Economic
Development
In the House Committee hearing, proponent testimony
was provided by a representative of ASPIRE. The proponent
stated the bill would provide a centralized digital infrastructure
for license and credential reciprocity and would help support
military spouses.
Neutral testimony was provided by a representative of
the Kansas State Board of Nursing.
No other testimony was provided.
On February 20, 2023, the House Committee amended
the bill to exempt the certification of law enforcement officers
pursuant to the Kansas Law Enforcement Training Act.
On February 22, 2023, the bill, as amended by the
House Committee, was withdrawn from the House Calendar
and referred to the House Committee on Appropriations. On
March 1, 2023, the bill was withdrawn from the House
Committee on Appropriations and rereferred to the House
Committee on Commerce, Labor and Economic
Development.
On March 6, 2023, the House Committee further
amended the bill to:
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● Change the definition of “electronic credential” to
include “electronic certification, license or
registration” and mean an electronic method by
which a person may display or transmit to another
person information that verifies the status of a
person’s certification, licensure, registration or
permit as authorized by a licensing body and is
equivalent to a paper-based certification, license,
registration or permit;
● Define the term “person”;
● Allow for the paper credentialing requirement to be
met if applicants can print a paper copy of their
electronic credential;
● Require licensing bodies to provide verified
electronic credentials to persons regulated by the
licensing body not later than January 1, 2025;
● Require the Secretary to develop and implement a
central electronic record system or utilize a third
party’s services or facilities to maintain a central
record of electronic credentials, on or before
January 1, 2025, and subject to appropriations;
● Require licensing bodies to provide reports
indicating any issuance, renewal, revocation,
suspension, expiration, or other change in statue of
an electronic credential to the central electronic
record system in the manner and format required
by the Secretary beginning January 1, 2025;
● Prohibit licensing bodies and any person with a
license, registration, certification, or permit issued
by a licensing body from being charged for the
establishment or maintenance of the central
electronic record system; and
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● Provide that a licensing body would not be
prohibited or prevented from developing, operating,
maintaining, or using a separate electronic
credential system in addition to making reports to
the Secretary or participating in a multi-state
compact or a reciprocal licensure, registration, or
certification process.
House Committee of the Whole
The House Committee of the Whole amended the bill to
clarify the Secretary would develop and implement a uniform
or singular license verification portal (in some instances,
verification portal replaces prior reference to a central record
system) and licensing bodies would integrate with such
license verification portal for the purpose of verifying or
reporting license statuses.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Board of Barbering
states the bill would require the agency to create and
maintain a new database. The agency currently does not
have the funds to create or support such a database. The
agency cannot estimate the fiscal effect to purchase and
maintain the database. The agency does state that revenues
would be negligible because the agency does not charge a
fee to send out electronic and paper licensure to reciprocal
states.
The Office of the Attorney General states the bill’s
provisions would require the agency to purchase additional
software for its licensing and registration programs. The
agency estimates it would need $532,275 from the State
General Fund (SGF) in FY 2024 to purchase required
software, hire a 0.50 FTE Administrative Specialist position,
and for related operating expenditures.
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The Board of Veterinary Examiners states it would need
to hire a vendor to create and maintain a database as
required by the bill. In addition, the agency would need to
increase fees to cover the additional expenditures for the
database. The agency cannot estimate the cost of a new
system and related maintenance costs.
The Kansas Real Estate Commission states that since
the bill would require paper-based credentials to be provided,
the agency’s expenditures would increase by over $10,000
from its fee fund for FY 2024 because the agency
discontinued this practice in FY 2018. The agency did not
mention whether it currently had an electronic system that
would meet the requirements of the bill.
The Behavioral Sciences Regulatory Board states
passage of the bill would increase expenditures by $5,000
from its fee funds for FY 2024 to mail a paper license for
renewals. The agency currently sends paper licenses when
initially licensed. The agency did not mention whether it
currently has an electronic system that would meet the
requirements of the bill.
The Abstracters’ Board of Examiners indicates it has
one part-time employee and does not have a website;
therefore, the bill would require additional unknown
expenditures to implement the provisions of the bill. The
agency does not have the funds available to purchase the
required system and would require SGF moneys for the
purchase and maintenance of the system.
The Board of Mortuary Arts, Board of Accountancy,
Kansas Board of Examiners in Fitting and Dispensing of
Hearing Instruments, and Board of Technical Professions
currently do not have an electronic system as required by the
bill. The agencies cannot estimate the cost to purchase and
maintain such system. The agencies would either have to
raise fees or request SGF moneys to purchase and maintain
the required system.
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The Board of Examiners in Optometry does not currently
have an electronic system as required by the bill. The agency
is in the process of acquiring a system for this purpose. The
Governor’s budget recommendation for FY 2024 did not
include funding from its fee funds for this purpose, but the
cost to acquire and maintain the entire system is unknown.
The Board of Healing Arts indicates that is is in the
process of having all the professional licenses verified by a
third party. Currently, 9 of the 16 professions are verified. The
agency states that even though it is working towards having
all licenses verified by a third party, not all would be
converted to this process by July 1, 2023, and therefore
would not meet the requirements of the bill.
The Kansas Dental Board states that it currently does
not have a licensing system that would support the provisions
of the bill. It would have to hire a vendor to create and
maintain an electronic licensing system. The agency’s budget
submission requested $130,000 for FY 2024 and $135,000
for FY 2025 from its fee fund to create a system that should fit
the requirements of the bill, and the Governor recommended
the agency’s request. The agency cannot estimate the
ongoing yearly maintenance costs of the system.
The Insurance Department, Department of Education,
Board of Cosmetology, Department for Aging and Disability
Services, Board of Nursing, Department of Health and
Environment, and Board of Pharmacy all state that the bill
would not have a fiscal effect because the agencies already
utilize a system that meets the requirements of the bill.
A revised fiscal note on the amended bill was not
immediately available. Any fiscal effect associated with the bill
is not reflected in The FY 2024 Governor’s Budget Report.
Electronic credentials; occupational licenses; license verification; electronic
credential systems; Secretary of Administration
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Statutes affected: As introduced: 48-3406
As Amended by House Committee: 48-3406
As Further Amended by House Committee: 48-3406
{As Amended by House Committee of the Whole}: 48-3406