September continued to reinforce a clear direction across healthcare regulation: modernization is increasingly about verification, data, interoperability and operational resilience—not simply changes to statute. For healthcare and regulatory leaders, the implication is significant. Regulatory systems are increasingly being expected to identify risk earlier, verify information across systems, support mobility across jurisdictions and maintain continuity when technology or operational infrastructure is challenged. Read this and more in our latest government relations update.
Federal updates
PROOF Act — H.R. 10326
H.R. 10326, the Preventing Rip-offs and Obtaining Oversight of Funds Act, passed the U.S. House on September 16 and moved to the Senate. The legislation would establish a mechanism for the U.S. Attorney General to request information from state agencies when investigating fraud involving federally funded programs. The bill reflects a broader federal interest in connecting information that currently sits across state and federal systems. For state healthcare agencies and boards, that puts greater emphasis on whether records are accessible, reliable, structured and capable of being shared when oversight or enforcement requires it.
Propelus takeaway: Requests like these are answered with records, not intentions, so the practical question is whether licensure and credential information can be located, verified and shared on a short timeline. That readiness is worth assessing while the bill is still moving.
CMS strengthens proactive fraud prevention
CMS is expanding the use of data analytics, provider screening, enrollment controls and payment safeguards to identify potential fraud before federal healthcare dollars are paid. In September, CMS barred 11 medical equipment suppliers associated with more than $3.4 billion in suspected fraudulent billing, including claims involving deceased beneficiaries. CMS specifically cited data analytics, enrollment authorities, payment safeguards and the Preclusion List as tools used to identify and stop suspicious activity. The federal program-integrity model is increasingly moving from “find the problem after payment” to “validate and identify risk before payment.”
Propelus takeaway: Screening before payment depends on credential and eligibility data being accurate at the moment of the check, not at the moment of the last audit. The currency of license and sanction status is quietly becoming a program-integrity variable.
State legislative and regulatory updates
Texas: CE compliance and electronic management system required, effective September 1, 2026
September 1 marked a major implementation date for Texas SB 912 and its new CE-compliance and renewal framework. Healthcare professionals must now demonstrate continuing education compliance as part of the renewal process, shifting Texas from an audit-based documentation model toward verification of compliance at the point of renewal.
Propelus takeaway: Texas licensed professionals should contact their licensing board and prepare for continuing education compliance as part of the renewal process. Under the new law, a license will not be renewed if required CE compliance is incomplete. Employers should prepare as well by understanding the new requirements and putting processes in place to monitor employees’ CE compliance and renewal readiness. Propelus CE Broker is the official partner supporting this process for the Texas Medical Board, Behavioral Health Executive Council, Optometry Board and Pharmacy. Professionals should activate their CE Broker account now, begin tracking their requirements and plan ahead for renewal.
California nursing practice act updates
California — SB 1302: Governor Newsom signed SB 1302 on September 20, extending the Board of Registered Nursing and making broad changes to nursing education, practice, licensure and regulation. One significant change takes effect January 1, 2029, when nurses will be required to provide documentation verifying continuing education at renewal.
Propelus takeaway: With Texas now live and California legislated for 2029, documented CE at renewal is becoming a multi-state trend—not a single-state requirement. New Jersey has also recently enacted similar legislation, scheduled to take effect in 2027. In California, the runway to 2029 provides an opportunity to align data, systems and workflows well ahead of the deadline.
Behavioral health workforce
New York A.11677 expands the definition of “qualified mental health professional” for mobile crisis outreach teams to include licensed mental health counselors and marriage and family therapists. The bill was referred to the Assembly committee on September 2, 2026.
Propelus takeaway: Setting-specific scope expansions widen the population whose credentials, supervision and CE must be tracked in a care setting that previously sat outside it. Worth monitoring while the bill is still in committee.
Licensure compacts
Pennsylvania — H.B. 2774: The bill would authorize Pennsylvania to join four professional licensure compacts: Audiology and Speech-Language Pathology, Dentistry and Dental Hygiene, Physician Assistant, and Social Work. It was referred to the Professional Licensure Committee on September 16.
Propelus takeaway: An omnibus approach would move four boards into implementation at the same time, which compresses the operational work considerably. Stakeholders in those professions may want to follow the bill early rather than at enactment.
Tennessee began issuing Counseling Compact privileges September 1, making it the ninth state to complete the technical and regulatory steps necessary to go live.
Propelus takeaway: Tennessee is a useful reminder that the milestone that matters operationally is privilege issuance, not enactment. The distance between the two is largely a data and systems exercise.
The Social Work Compact is preparing for early 2027.
Propelus takeaway: Thirty-five enacted states against an early 2027 launch means a substantial implementation runway opens over the next several months. Employers of social workers across state lines have time now to get credential records in order ahead of privilege issuance.
Licensing infrastructure and resilience
In Maryland, the newly established Health Centralization Commission is examining administrative and information-technology challenges affecting the state’s health occupations boards. The commission was created in response to concerns identified through state audits, including delays in responding to complaints and other oversight functions, and is charged with recommending ways to improve efficiency, accountability and potentially establish a more comprehensive licensing system across boards.
Propelus takeaway: Centralization tends to concentrate efficiency and risk in the same place, which is why accountability and continuity are being examined alongside technology. Other states weighing consolidated licensing will likely read the Commission’s recommendations closely.
In Alabama, on September 1, a cybersecurity incident rendered the Alabama Board of Nursing’s servers inoperable and took its online licensing system offline during the state’s nursing renewal period. Approximately 80,000 nurses were entering a renewal cycle, while new graduates and advanced practice nurses also needed licensing services. The Board has been working to restore systems in phases while using paper applications and external primary-source reviews as interim processes.
Propelus takeaway: When a licensing system experiences an outage, verification and onboarding timelines can be impacted at the very moment renewal deadlines are approaching. Specialized third-party solutions that integrate with licensing systems can provide an important layer of support and continuity during high-volume renewal periods—complementing the core licensing system’s broader responsibilities and helping maintain access to critical verification and compliance functions when system capacity or availability is challenged.
Telehealth
The Georgia Board of Dentistry held a public hearing September 4 to consider proposed rules governing teledentistry, as well as proposed changes involving dental hygienists. The Board’s teledentistry framework addresses notification to the Board, clinical standards, supervision, recordkeeping, referral relationships and limitations on services delivered remotely. The Board has not yet completed the rulemaking process, with additional action and public input expected.
Propelus takeaway: Remote-delivery rules generally add supervision and recordkeeping obligations rather than replacing existing ones. Following this rulemaking to completion will be more useful than adjusting workflows around a partial framework.
Stay tuned
The fourth quarter will set the stage for what comes next, with the November elections serving as a major inflection point for the 2027 healthcare regulatory agenda. Changes in governors, legislative leadership, and committee priorities could shape the direction of workforce mobility, competency, modernization and regulatory policy heading into the new year.
We’ll continue tracking the developments that matter most, from post-election policy shifts and regulatory implementation to licensing infrastructure, interstate compacts, AI, credential verification and continuing education compliance.
Stay tuned for the next Propelus Government Relations update, where we’ll continue connecting the dots between what’s happening today and what it could mean for healthcare regulation in 2027.