Interstate licensing compacts are not new.  Compacts such as the Driver’s License Compact, the Nurse Licensure Compact, and the Interstate Compact on Licensure of Participants in Horse Racing with Pari-Mutual Wagering have each been in existence for over 10 years.  In the last year though there has been a renewed emphasis on the development of licensing compacts. 

Late last month the Supreme Court heard oral arguments in the case of the Tarrant Regional Water District v. Herrmann.  At issue in the case is whether the Tarrant Regional Water District in Texas has the right to access water from the Red River in Oklahoma under the terms of the Red River Compact.  The case has received considerable attention for its potential impact on rapidly growing metropolitan areas facing water shortages and its potential impact on resource management compacts.

More than 6.7 million college students took at least one online course during the 2011-12 school year, making online classes the fastest growing segment in higher education. But while students across the country seem to be rapidly embracing online education, federal and state laws have some catching up to do. States have adopted numerous approaches to authorizing and regulating online higher education over the past two decades. This confusion has limited student access and created an inconsistent regulatory process for institutions seeking approvals to operate in multiple states.

The U.S. Supreme Court will hear oral arguments in April 2013, in the matter of Tarrant Regional Water District v. Herrmann. While the specifics of the case pertain to a dispute between Texas and Oklahoma over water from the Red River, the court’s ruling will be watched closely by the numerous interstate compacts that regulate shared bodies of water. 

In order for Excelsior College to offer online courses in Florida, staff members took five months to complete the initial state application and then waited another six months before the college was granted approval to operate. The lengthy application process is just one hurdle higher education institutions must cross before being able to provide distance learning programs across state lines. A compact known as the State Authorization Reciprocity Agreement, SARA for short, could make it easier for institutions to reach students interested in distance learning.

Leveraging technology to improve access to telehealth has the potential to significantly improve access to health care in rural areas and, in turn, reduce costs for patients, states and the federal government. An effective telehealth system that allows rural patients to connect more efficiently with specialists has the potential to streamline the process and result in better patient outcomes, all while reducing the financial burden on patients, states and the federal government. A telehealth interstate compact offers one approach to achieving these goals, and in turn improving access to health care through telehealth.

Crady deGolian, Director of CSG's National Center for Interstate Compacts, outlines the top 5 compacts to watch in 2013, including those dealing with the siting of electricity transmission lines, surplus insurance lines, interstate reciprocity regarding online education, and EMS licensing.  

Interstate Compacts to Watch in 2013

Dating back to America’s colonial past, interstate compacts are among the few tools specifically granted to states by the U.S. Constitution. The modern compact provides states with a sophisticated administrative mechanism, allowing interstate collaboration to resolve complex policy challenges.

Compacts, which are governed by the tenets of contract law, give states an enforceable, sustainable and durable tool capable of ensuring permanent change without federal intervention. With more than 215 interstate compacts in existence today and each state belonging to an average of 25 compacts, the legal and historical precedence for the development and use of the tool is considerable.