Legislation recently introduced in Wisconsin could change
the way the state studies proposed occupational licensing regulations. Sponsored
by Senator Chris Kapenga and Representative Rob Hutton, Senate Bill 541 calls for the establishment of a
sunrise review process that would formally require certain information to be collected
and analyzed during the legislative process.
On November 13th, The Council of State Governments, the National Conference of State Legislatures, the National Governor’s Association, and representatives from the states participating in the Occupational Licensing Policy Learning Consortium were on hand to share some of the successes stemming from the multi-year, Department of Labor funded project. The event saw over 60 individuals in attendance, representing a variety of public and nonprofit policy organizations.
Nevada hosted its 2019 Occupational Licensing Policy and
Practice Learning Consortium In-State meeting on Sept. 6 in Las Vegas. The
state’s Occupational Licensing Consortium Core Team of legislators, executive
branch employees and regulatory board members convened to review this year’s
progress and plan for future success. The Nevada officials were joined by
representatives from The Council of State Governments, the National Conference
of State Legislatures and the National Governor’s association to provide
technical assistance and facilitation.
On Sept. 3, 2019, Virginia became the first state to fully digitize its professional licensing and credentialing system. Many professions take advantage of current technology to offer digital copies of licenses and certifications, but before September, no state offered universal electronic licensing. Through a partnership between the Virginia Department of Professional and Occupational Regulation and the free online credentialing service, Merit, all licensed professionals in Virginia will be able to receive a digital copy of their license. According to the 2018-2020 Virginia appropriations bill, electronic licenses now satisfy any statute or regulation that requires credentials to be posted, displayed or produced.
Occupational licensure is one of the most overarching labor market issues facing low-income workers. The proportion of the labor force required to obtain a license exceeds that of both minimum wage earners and union members.1,2,3 The costs of licensing, such as exams, training courses, continuing education, and application and renewal fees, can present significant barriers to work, particularly for those for whom money is the tightest: Americans who are low-income, unemployed, and/or dislocated workers.
If you’ve studied the issue of occupational licensing reform for any length of time, you’ve undoubtedly heard about African hair braiders. The issue of state government regulating the hair braiding industry is a compelling one. Why would a state subject a hair braider to obtain a full cosmetology license, endure hundreds of hours of unnecessary coursework and pay thousands of dollars before they can legally work? Furthermore, the courses required to obtain the required license do not even directly apply to hair braiding but are more focused on general cosmetology issues like handling chemicals and cutting hair.
Often a licensed professional wishing to enter into a new state finds difficulty obtaining the license needed to practice their profession. The delay in obtaining their professional license could mean a lack of income, lost employment opportunities or even a decision to not move into the state.
In his 2019 State of the State address, Arizona Gov. Doug Ducey, former CSG Toll Fellow, urged the Legislature to pass legislation granting universal recognition for occupational licenses, saying “workers don’t lose their skills simply because they move to Arizona.” HB 2569 which was signed into law by Gov. Ducey in April, makes Arizona the first state in the country that allows an individual licensed in another state to receive a comparable license upon moving to Arizona if they meet certain criteria.
Traditional occupational licensing standards typically require that applicants achieve a certain number of hours of training, education and/or experience and pass a cumulative examination before a license is granted by a state. However, the time-based requirements that states implement can vary widely. For example, aspiring barbers can be required to complete between 1,000 and 2,100 hours of training, depending on the state, before they are eligible for a license. This variance in standards demonstrates the discretion states can take in setting regulations that seek to balance public protection with economic opportunity. While licensing is a means to safeguard public health and safety, overly burdensome regulations can exacerbate the economic costs of licensing such as lower economic outputs and fewer jobs.
With the number of jobs requiring an occupational license at an all-time high, The Council of State Governments (CSG), the National Conference of State Legislatures (NCSL), and the National Governors Association (NGA) have come together to assist states in improving their understanding of occupational licensure issues and enhancing licensure portability.