The Workforce Expansion Act was sent to the governor on April 13. | Unsplash
The Workforce Expansion Act was sent to the governor on April 13. | Unsplash
Arkansas' Workforce Expansion Act, which was introduced as Senate Bill 153, will waive fees that are associated with obtaining occupational licenses for those entering a government-regulated profession or entrepreneurs starting a small business.
The bill was sent to Gov. Asa Hutchinson for signing on April 13.
The Reason Foundation ranked Arkansas fifth in occupational licensing regulations, which is triple the regulations of neighboring Missouri.
“The General Assembly finds that Arkansas should waive initial fees associated with occupational and professional regulations and the formation of a business for low-income individuals,” the bill states.
Although licensing requirements aim to protect the community from unsafe or substandard practices, the processes and rules to obtain these do not reflect that it enhances quality service and safety, critics say. On the contrary, it is becoming burdensome. According to a Mercatus Center report, Arkansas has implemented extensive licensing requirements, “with 20.2% of the workforce licensed and another 5.3% certified in 2015.”
The report also showed that Arkansas licenses many rarely licensed occupations like plant nursery worker, funeral attendant, psychiatric technician, drywall installer and landscape contractor, which insulates the market from competition.
With the Workforce Expansion Act, now Act 725, legislators expect more low-income individuals to enter the workforce and start small businesses as a result of the fee waiver because it will become easier to obtain the licenses and certifications required in government-regulated industries.
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