On this pop-up episode, Kelsey Bolar, senior policy analyst at Independent Women’s Forum, talks with Iowa state senator Waylon Brown about what occupational licensing is, why it’s necessary and how Iowa is leading the nation in making these reforms.
Transcript
Beverly Hallberg:
Hey, everyone. It’s Beverly Hallberg. Welcome to a special pop-up episode of She Thinks, your favorite podcast from the Independent Women’s Forum, where we talk with women, and sometimes men, about the policy issues that impact you and the people you care about most. Enjoy.
Kelsey:
Hey, there. I’m Sophie Bowler, a senior policy analyst at Independent Women’s Forum. I’m joined today by a special guest to discuss occupational licensing. You don’t know what that is? Well, we will explain and tell you why you should care about it. Our guest today is Iowa State Senator Waylon Brown. Welcome, Senator Brown.
Senator Brown:
Thank you. Thank you for having me.
Kelsey:
So, for those who aren’t familiar, what are occupational licenses? Why are they important? And why do they need to be reformed?
Senator Brown:
Sure. So occupational licenses are essentially government permission slips for wanting to do business in the state. There’s a need for this regulation when it comes to protecting the health and safety of individuals, but those reasonings have been inflated and have essentially created layers of protectionism in industries.
Iowa is one of the highest licensed states in the country, and nearly 33% of our workforce requires some form of license in order to earn a living. Nationally, nearly one in four workers across all occupations are licensed. However, it was one in 20 of the workforce in the 1950s. The government’s control on the right to earn a living has gone too far to sustain economic growth, promote entrepreneurship and support a competitive market.
Kelsey:
Now, I know you are also a small businessman. Why did you decide to take this up? Did you have any personal experience in occupational licensing?
Senator Brown:
So, I am a small business owner. I have a construction company. And what I’ve seen over the 18 years that I’ve been in business for myself is that it’s becoming harder and harder to find individuals in the trades, in our skilled trades. And part of that has to do with the occupational licensing and the educational requirements that go along with it. So, so I guess, yeah, in that aspect, I’ve seen it in my own personal business as to get that skilled workforce that we need, these are some of the barriers that do stand in our way.
Kelsey:
So, the tricky thing about being a policy analyst who tries to track what’s happening with occupational licensing reform is that, as you said, these requirements differ from state to state, and they are often non-transferrable. So for example, if you’re a nurse in one state, you might move to another state, and your credentials no longer apply. And you have to start from scratch with some testing and fees and other requirements that you have to meet. So I’m wondering if you can give us, you already gave us the lay of the land in Iowa, but what types of reforms are you now advocating for?
Senator Brown:
Sure. So a key reform with occupational licensing is having clear definitions on how the state protects its citizens with regulations. The Institute for Justice has a great scale on measuring how burdensome a regulation through licensing can be on an individual. From the free market to occupational licensing, there’s plenty of alternatives to achieve the state’s goal. The Senate had been working in this past session on Senate file 2392. And 2392 would have stopped the growth of government and implemented both sunset and sunrise reviews of current or future legislation and regulations. But due to COVID-19 and our suspended session, we didn’t have time to advance that legislation clear through the process.
Another area is having uniformed policies and regulations if a license is required. And the passage and that going to House file 2627 resulted in significant reforms to achieve that goal. The key provision of that act is universal licensing recognition. And that will allow individuals already licensed in another state to move to Iowa and be recognized for their experience professionalism without having to jump through the additional hoops to be able to work in our state.
In addition to that, an additional component to that legislation is recognizing work experience. This will allow individuals who work in a state that doesn’t have a licensure requirement to move to Iowa and use at least three years of their work experience to equate towards the education requirements that Iowa has in order to obtain licensure. Now, no other states enacted this reform that supports on the job training as a form of qualified educational experience, but I do believe that it’s extremely important that we look at all pathways to be able to award people those licenses.
Kelsey:
I imagine these reforms would attract a lot of new Americans to your state and simulate Iowa’s economy, so they could be very good in that regard. Another reason that I personally am a big advocate for occupational licensing reform is that it also kind of doubles as criminal justice reform in giving individuals who have served a sentence the opportunity to reenter the workforce. Before learning about this issue, I didn’t realize the barriers that individuals with criminal records faced to applying for jobs in an industry where the crime they committed had nothing to do with that industry. So can you expand on how your reform could also be a part of a criminal justice reform package?
Senator Brown:
Yeah, definitely. In House file 2627, one of the elements was a uniform criminal conviction standard. Iowa’s licensing boards were using a good moral clause to limit applicants with criminal record, whether it’s conceded or if it occurred 15 years ago. Governor Kim Reynolds is a strong, strong advocate for recidivism and second chances. So the policy mirrors those beliefs. Individuals with criminal records are often further burdened by their personal history, which impacts their economic stability, their mobility, and self-improvement. So, by limiting their convictions to specific duties of the occupation, this will allow for applicants to have a stronger chance to become self-dependent and feel a part of their community and society.
Now, applicants will still have to meet the education requirements, the work experience, still have to take the examinations and have to meet the fee requirements to receive their licenses. But another benefit of this policy change is the opportunity to petition the licensing board to provide guidance on the individual’s background and whether it would be a disqualifying conviction. This will save those individuals time and resources, and it will also allow them to apply their talents in another field if those convictions would inhibit their ability to obtain that license in a certain area.
Kelsey:
Right. We should all want those to have served the sentence to be able to reenter society and become productive contributing members. And without the ability to get a job, that’s very difficult and absolutely contributes to recidivism rates. So I thin that’s such an important aspect of occupational licensing reform that doesn’t always get the attention it deserves. So we certainly appreciate your efforts on that front in Iowa.
You also mentioned saving resources and that’s important too. These reforms are important for Americans with limited education and limited financial resources. Can you tell me anything about that? Because if you’ve never had a job that requires a government permission slip, you often have no idea how much money and time this can cost.
Senator Brown:
Yeah, you’re exactly right with that. And that’s also another element that we addressed in this piece of legislation. A lot of times, proponents for more occupational licensing will argue that the license provides higher wages and more economic opportunities. However, those costs are shifted to the consumer without receiving higher quality of the goods or services rendered. And the government is erecting barriers for those that can’t afford that education and training to obtain a license, while those with a license are charging more for services without regard to quality in order to maintain the cost of that license. So in this file, we waived all application fees for any newly licensed individuals making less than 200% of the federal poverty level, meaning individuals making $25,520 or less annually, or household of four making $52,400 or less annually, qualify for no application fees. And those are often a barrier for entry into certain licensed occupations, especially for those lower income individuals.
Now I will note that there is more to be done in the area, but we are, as a state, heading in the right direction to eliminate these barriers.
Kelsey:
Right. So there’s clearly a lot of incentive to push forward with occupational licensing reform. But I’m curious to know what you’re up against, what groups or individuals have you struggled to get their support? And quite frankly, why would anybody oppose these reforms?
Senator Brown:
Well, changing government is hard, and it’s a slow methodical process. But unlike the private sector, where research and past performance dictates policy and goals, the public sector weighs the interest of multiple perspectives. For example, to pass any legislation, you need the support of, in Iowa, a minimum of 26 Senators, 51 Representatives, and the Governor. And that consensus is shaped by constituents, lobbyists, executive branch departments and agencies, licensing boards, current licensees and industry groups. Iowa has nearly 40 licensing boards across 70 departments and agencies. And that doesn’t even include internal licensing functions. This brings in different perspectives on the purpose and need for certain occupational licensing, which may differ from the objectives of the legislature.
Industries with licenses have the strongest objections to any deregulation because it impacts their monopoly on the occupation. They’ve been able to gain hold of licensing boards and dictate policies to improve their position in the state.
Now in Iowa, we do have a public presence on all of our licensing boards, but that public presence is always in a minority position.
Kelsey:
Yeah. I’ve actually heard some of these boards be compared to cartels. So I think we’re overdue for a shakeup.
The last question I wanted to ask you today is why these reforms are particularly important in the COVID economy.
Senator Brown:
Oh, sure. So when a government entity is facing a crisis, there are new challenges that highlight the necessary reforms or reviews of our current way of life. And the situation we’re facing with COVID-19 has already resulted in some permanent changes and started conversations on future changes regarding occupational licensing. It’s been a priority of myself and my fellow senators to address licensing reforms and burdensome regulation in our state for many years. And we’ve been successful prior to COVID-19 in eliminating red tape and regulations, but the pandemics= has really highlighted the need for reforms to promote a strong economic recovery. And the steps we’ve taken with our policies and goals during this recovery will continue to make Iowa one of the best states to live, work and invest in.
Kelsey:
Well, I can speak from experience. My husband, he was born and raised in Iowa. His family still lives there. I’ve visit often. It is a great state. These are great reforms that you are advocating for. We appreciate you taking the time to break them down for us in IWF today. And we hope to hear from you soon.
Senator Brown:
Well, thank you. Like I said in the beginning, I appreciate the opportunity to be able to visit with you about occupational licensing. It’s always a pleasure to be able to have conversations and go more deeper into the policies, as to why they are needed and what positive impacts can come out of good policy. So thank you for allowing me to have a conversation with you today.
Kelsey:
Absolutely. Thank you so much and stay safe.
Senator Brown:
Thank you. You too.
Kelsey:
We hope you take away something new from today’s conversation. And if you enjoyed this episode of She Thinks, or like the podcast in general, we’d love if you could take a moment to leave us a rating or review on iTunes. This helps ensure that our message reaches as Americans as possible. Share this episode and let your friends know they can find more She Thinks episodes on their favorite podcast app.
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