Last week, Missouri Governor Mike Parson signed HB 2046 into law, making it easier for individuals possessing out-of-state occupational licenses to operate in Missouri. The legislation was championed by the Kansas City-based Women’s Foundation, a member of the Start Us Up coalition that has, for years, been a leader in the push for occupational licensing reform across Kansas and Missouri.
With rising job insecurity amid the enduring COVID-19 pandemic, the issue of occupational licensing has been at the forefront of policy conversation — with the National Council of State Legislatures (NCSL) tracking state responses to laws surrounding licensing. Thanks to the hard work of the Women’s Foundation and advocates, HB 2046 now joins this list.
While Missouri’s new reciprocity law was enacted by the state legislature, many of the reforms compiled by NCSL are executive actions framed as emergency responses to the pandemic. Yet common sense occupational licensing reform cannot be temporary; it’s necessary for creating opportunities for prospective business owners, particularly those underrepresented in entrepreneurship today.
As policymakers across all levels of government debate the next phase of new and small business relief, it’s important to think beyond funding and to consider common sense solutions to existing barriers that needlessly restrict opportunity.
As noted in research from the Women’s Foundation, relocating disproportionately impairs career development for women and low income populations due to strict and inconsistent relicensing laws.
Occupational licensing laws also pose major barriers to formerly incarcerated people. In America’s New Business Plan, we highlight research that suggests stricter occupational licensing requirements lead to higher recidivism rates, increasing recidivism by more than 9% in strict states and decreasing it by as much as 2.5% in more lenient ones.
That’s particularly important in the age of COVID-19 as incarcerated populations shrink in virus hotspots. As noted by Cynthia A. Golembeski in a recent article featured in The Conversation, re-entering society is difficult enough in non-pandemic conditions thanks to burdensome restrictions — the bulk of which relate to employment. Ongoing public health and economic crises will only make it more difficult for formerly incarcerated people to rebuild their lives.
As policymakers across all levels of government debate the next phase of new and small business relief, it’s important to think beyond funding and to consider common sense solutions to existing barriers that needlessly restrict opportunity.
Among those solutions: reining in occupational licensing — by reducing blanket bans and “good character” clauses, replacing licensing with certifications or permits in certain industries, eliminating licensing fees, and streamlining requirements across states. Thanks to leadership from the Women’s Foundation on that last front, Missouri is one step closer to the future entrepreneurs need to succeed.