Natural State News

Gov. Asa Hutchinson on April 15 signed Senate Bill 567, which aims to reduce state licensing and certification requirements. 

Act 567, formerly House Bill 1460, prohibits cities and counties in Arkansas from enacting a requirement for licensing certification, or registration for any profession or occupation in a manner that duplicates a requirement for licensing certification, or registration that is already enacted by the state. 

According to a report by The Reason Foundation, Arkansas ranks fifth in America for the amount occupational licensing regulations, tripling the regulations of neighboring Missouri. The Reason Foundation’s report also found that having stricter licensing requirements has led to fewer employment opportunities and higher prices in licensed industries, which has decreased the rate of job growth by 20%, costing Arkansas between $34.8 billion and $41.7 billion per year. The same report also ranked Arkansas’s licensing regime the second-most burdensome in the nation.

The Reason Foundation also finds that unnecessary licensing laws may lead to the health and safety quality of workers and employers by leading to artificially high prices, arbitrary training requirements, and pressure on businesses to provide better quality service.

Arkansas requires a license for 52 low-to-moderate- income occupations, according to a 2012 study by the Institute for Justice. 

In 2015, Arkansas implemented extensive licensing requirements, with 25.5% of the workforce holding a license or certification, according to a report from the Mercatus Center at George Washington University. The same report also found that Arkansas requires licenses for occupations that do not usually require them, including plant nursery worker, funeral attendant, psychiatric technician, drywall installer, and landscape contractor. 

According to the Mercatus Center, Kentucky and Nebraska have also made changes regarding licenses in recent years. In 2016, Kentucky passed a bill eliminating the licensing requirement for hair braiders, and pending legislation in Nebraska aims to reform licensing requirements for potato shippers, car salespeople, barbers, as well as other workers.