Idaho legislators are adding to their impressive regulatory reform efforts with the introduction of House Bill 107, the Occupational Licensing Reform Act. Instead of abandoning licensure requirements to the unelected bureaucrats, HB 107 requires all new licensures to be expressly authorized by statute, establishes universal licensing practices, and requests a report to the legislature that would outline needed changes to come into compliance.
The main objective of the proposed legislation is to bring all new licensure requirements under the express authority of statute, instead of discretionary rulemaking. House Bill 107 reads:
“Pursuant to this policy:
(1) No new licensure of a person to practice a profession or occupation may be created by an administrative rule or policy in the absence of express statutory authorization; and
(2) By July 1, 2026, all licensure fees shall be established in statute or rule.”
The act also allows for universal licensing practice, meaning a licensed professional can perform any act aligning with their education, training, and experience. This new section is designated as Section 67-9407. Universal licensing practice will allow for a professional to function in the full capacity of their role, while still preserving the authority of the licensing board or commission to ensure compliance with applicable state laws and regulations.
A third component of the bill requests a report to the legislation regarding compliance actions, reciprocity statutes, and modifications needed to legislative language to ensure full compliance with sections 67-9407, 67-9409, and 67,9414. A similar report was due five years ago, and HB 107 would repeal and replace the original request. The licensing authority shall have until January 1, 2026, to deliver the report.
Occupational licensing reform is a critical component of maintaining a free market and reducing barriers to entry. Despite, Idaho’s many efforts to reduce government bureaucracy, occupational licensing reform in Idaho still needs some work. Idaho ranked 28th nationally in 2023, with the first being the most burdensome. Kansas has the fewest legal barriers, with 30 less than Idaho.
Why has non-universal occupational licensing grown from 5% to 22% since the 1950s? The answer has little to do with quality improvement in services and everything to do with excessive government overreach. Research has shown that occupational licensing decreases the quality of service, increases prices, decreases employment, and hurts low to middle-income earners the most. A certification from the government doesn’t change the quality of skills a person possesses. But service review websites like Yelp and Angie will inform customers very quickly if the service is acceptable.
The government cannot play the role of gatekeeper to high- and poor-quality service providers, but customer feedback can. It is time for the government to recognize the unnecessary nature of many occupational licensing requirements and get out of the way of the revitalizing energy of free market interactions, which strengthen local economies. This proposed legislation will empower Idaho legislators with the needed tools to reduce the occupational licensing burdens still existing in the state.
By requiring statutory authority for new licenses, permitting universal licensing practices, and requesting a report outlining compliance needs the legislature would be able to remove unneeded bureaucratic red tape from the already complicated process of starting a new career or business.