Promising Occupational Licensing Reform Deserves Passage Before Session Ends

Unnecessary, and often inconsistent, licensing requirements should not be standing in the way of qualified and motivated job seekers entering the workforce in the Buckeye state.

Unfortunately, that is exactly what is happening right now.

Ohio’s harmful occupational licensing practices led to nearly 7,000 Ohioans between the ages of 25-45 being denied licenses to work due to unfair requirements. The state places significant barriers in front of workers when a license is required, on average, 341 days of training, fees of $137, and one exam (Economic Research Center at Buckeye Institute).

Fortunately, before legislative session ends, there is a chance to do something about this.

Reform legislation, Senate Bill 255, is currently up for consideration in the Ohio House of Representatives. The bill, sponsored by Senator McColley, passed the Senate in late June.

Under existing law, Ohio’s occupational licensing boards have free reign over fees, rules regarding conduct and the processes of licenses. SB 255 reins in this power by establishing legislative oversight, and sunsetting of licensing boards if the legislature does not review and take proactive steps to keep them.

To help scale back the licensing burdens, the bill would require the Legislative Service Commission to submit a public report on every board’s impacts when a board is created.

Additionally, the bill requires that the Speaker of the House and President of the Senate appoint committees that review 20 percent of all licensing boards every year, which means that every board will be reviewed once every five years. If the board cannot prove its necessity, then it will be abolished effective at the end of the fifth year after it was established or last renewed.

SB 255 was referred to the Federalism and Interstate Relations Committee for consideration in the House. There is a public hearing on November 27th.

Americans for Tax Reform President Grover Norquist’s letter in support of the bill can be found here.

This bill is an absolutely essential set of reforms to reduce unnecessary occupational licensing burdens for Ohio’s workers. The bill was passed 24-8 in the Senate, along party lines.

It is important to voice your support to Federalism and Interstate Relations Committee members as they consider the bill in the coming days – their contact information can be found here.

Posted in Economy & Innovation, Regulatory Reforn, Workforce.