Arkansas and Alabama Make Much Needed Progress on Occupational Licensing Reform
Previously, I reported on an Archbridge Institute analysis that ranked Arkansas first in the nation for imposing occupational licensing burdens. “The Natural State” has erected licensing barriers to more professions than any other. After Texas, the study placed Alabama at number three. Although Texas does not appear to be doing anything about its licensing barriers, Arkansas and Alabama are making some progress.
This week, Arkansas became the 21st state to adopt universal licensing recognition when Governor Sarah Huckabee Sanders signed SB 90 into law. The act requires Arkansas agencies to automatically grant occupational licenses to applicants that hold comparable licenses in another state, have been in the licensed profession for at least three years, and meet other requirements.
In Alabama, State Senator Chris Elliott introduced SB 156, which, if enacted, would centralize all state licensing operations under the Secretary of State. The bill does not include a universal licensing recognition provision, nor does it immediately change any of Alabama’s extensive licensing requirements.
However, consolidating licensing activities—a step recently taken in Iowa—may make life easier for applicants who might otherwise be confused about where to turn in the state bureaucracy. The bill also states: “the total amount of fees charged by the board shall approximate the total of the direct and indirect costs to the state of the operations of the board.” This may result in some lowering of fees, which range up to $900 for orthotists (professionals who make and fit braces and splints) and prosthetists (professionals who make and fit artificial limbs).
Stephanie Smith, President and CEO of the Alabama Policy Institute, cautiously welcomed the new bill, stating:
Alabama’s onerous and expensive occupational licensing system is an impediment to starting a small business in our state. SB 156 is the first step to bringing that system to account. While the bill doesn’t eliminate or reduce the number of boards or licenses required, as API’s report suggested, it would bring oversight of those boards under the purview of the Secretary of State and help put an end to the exorbitant fees and questions about management that small businesses have had to deal with for decades in the state of Alabama.
Unfortunately, even this modest reform will have a tough road to adoption. Secretary of State Wes Allen, whose office would house the consolidated licensing unit told 1819 News: “Although I understand the purpose of the bill, I do not feel that the Secretary of State’s office is the right vehicle for its implementation.”
Finally, it is worth noting that neither the new Arkansas law nor the Alabama bill, if passed, will improve their respective states ranking in the Archbridge State Occupational Licensing Index. The index assesses states solely based on the number of occupations affected by licensing barriers. To improve their rankings, Arkansas and Alabama should perform a systematic review of all their licensing requirements to see which ones can be pruned.