CHARLESTON – When regulations make it hard to earn a living, West Virginians suffer.
As a former state Senator and Secretary of Commerce, I know first-hand how important it is to create a business atmosphere that is attractive and easy to navigate. Removing occupational licensing obstacles is critical not only to providing opportunities for our sons and daughters but also to welcoming those who see West Virginia as a potential home.
The 2024 legislative session is upon us with lawmakers poised to pursue reforms that bolster the economy and provide relief to struggling families. Among these, lawmakers should address overregulation and remove barriers that stand between West Virginians and their right to earn a living.
Overregulation in occupational licensing routinely impacts Mountain State families and businesses. Initially limited to a small number of professions, licensing requirements have ballooned in recent years — nearly a quarter of America’s workforce is now required to possess a license.
Occupational licenses are intended to signal that a worker has met a minimum standard for training or education. Unfortunately, they have morphed into self-serving tools of protectionism, frequently limiting entry into the workforce. Licensing regulations are widely-recognized for reducing the supply of workers in a profession and driving up the cost of consumer goods and services. This results in a ‘less for more’ dynamic that has real-world implications for West Virginians of all kinds.
On an individual level, burdensome licensing regulations are also painfully regressive. Occupational licenses come at great personal cost, both financially and with respect to time spent away from work and family. West Virginia licenses 67 of 102 lower-income occupations, many of which are not licensed elsewhere.
While West Virginia has made strides in reforming licensing in recent years, including eliminating unnecessary licenses, there is still much to do. Policymakers are well-positioned to attract new businesses and retain talent by pursuing a best-in-nation licensing reform package.
In Arizona, lawmakers enacted a first-of-its-kind universal recognition reform to ease the licensing burden for workers entering the state. This law allows qualified professionals in good standing to apply their out-of-state training toward a similar-level license without having to repeat costly training or testing.
Arizona’s reform has been effective. Over 8,000 skilled workers were safely licensed in just four years. Among these are thousands of tradesmen, 500 physicians, hundreds of dentists, and numerous other professionals in dozens of occupations. Arizona’s law has been an economic boon for the state as well. A recent study estimates the reform will increase the state’s GDP by $1.5 billion over 10 years while bringing in nearly 16,000 additional workers.
In 2022, West Virginia's legislature enacted an Arizona-style reform to recognize out-of-state licenses for a small handful of jobs. This year, lawmakers should quickly expand that reform to as many workers as possible. Such action would send a strong signal to workers and companies that West Virginia is serious about breaking down unnecessary barriers to work for all.
Licensing reform is also necessary to stay regionally competitive. West Virginia’s neighbors to the north and south have already enacted universal recognition reforms. In 2023, Ohio Governor Mike DeWine approved legislation to expand an already landmark military licensure bill to include recognition for numerous civilian professions. Virginia Governor Glenn Youngkin also signed a version of universal recognition into law.
Adopting a broader version of universal recognition that applies to even more occupations would position West Virginia as the best in the region to welcome workers.
There are other reforms that should be top of mind for legislators, too.
In Louisiana, the legislature recently advanced a reform known as the Right to Earn a Living Act. This law creates a public health and safety standard by which all occupation-related regulations must be measured, and it creates a way for workers to directly challenge rules that don’t meet that standard. It shifts the balance of power away from unelected regulators and back to hard working Louisianans, who are now empowered to act when government impedes their right to earn a living.
Further, the Cardinal Institute recently released a report highlighting the potential impact that licensing reform could have on recidivism rates. The authors discussed recent West Virginia reforms as well as actions other states have taken to reduce the deleterious impact of collateral consequence laws. Providing a pathway to dignified work is an essential piece of the reform puzzle.
West Virginia lawmakers should prioritize these licensing reforms to break down unnecessary barriers to work for all Mountaineers.
Gaunch is a former state Senator, Secretary of Commerce and current board member for the Cardinal Institute for WV Policy.