So for my quasi-imperialistic Island-jumping setting where the average educated person has about the same understanding of Magic as a high-schooler understands Science, I have established the Magic License system.
Under the nation that the PCs will be spending most of their time in, there is a federal law that states that if a spellcaster(Arcane, a few places also put this limit on Divine Magic too...) wants to cast 5th level spells, they must take a test to get a License to cast 5th level or higher spells. The punishments range from severe to light depending on the land that the nobles have.
Here are the rules
1. Miminum age for getting a license is Adult age for the race of the spellcaster
2. You must get this License if you wish to cast 5th-level spells and up or use scrolls with a spell level of 4th and above and caster level of 8th and above(For example a Wizard could not use a Scroll of Orb of Acid if the caster level was 8th)
3. You must take a test provided or assigned by the local guild, cabal, or Temple if Divine.
SPECIAL NOTE: Wizards or Clerics that worship Boccob always have the matters of a License handled by a Temple whenever possibal.
4. The test may be written, an adventure, or both.
5. Depending on the grade you get on the last test
F: FAILED. RETAKE IT IF YOU CAN.
D-: See F
D: 20% Discount on the retry at the same place.
D+: 25% Discount on the retry.
C-: 50% Discount on the retry.
C: Renew in two years.
C+: Renew in Two years and six months
B-: Renew in Three years
B: Renew in Five years
B+: Renew in Five Years six months
A-: One minor magical item with 3 levels worth of magic put in it and renew in seven years
A: Two minor magical items with 3 levels worth of magic put in it and renew in seven years and ten months
A+: Renew in Ten years, and one medium magical item.
NOTE: For Limited Wish, Wish, and Miracle, you must take a HARDER test to cast these objects.
NOTE: After this test you can now use medium and up magical items.
FEATS DO NOT AFFECT A MAGICAL LICENSE
The license manifests as a mark that glows whenever a higher magical authority demands to see it, however the licensee can make a will save of 10+the modifier of whatever magical class has for bonus spells(Such as a bard would use his Cha modifier for the save)+the level of the highst level class not to show it.
A person who does not cast the same type of magic as the licensee cannot demand to see it(Such as an arcane spellcaster cannot demand to see the license of a divine spellcaster and vice verse).
I'm thinking of making ranks and would like constructive crit on this system, please!