A review of Ohio’s licensing requirements has recommended that the state eliminate the mandates for many jobs.
However, a Columbus, Ohio-based think tank has identified nearly four dozen licenses that the state should eliminate or reform. Doing so would improve Ohio's economic competitiveness and end “permission-slip policies” that make earning a living difficult for many residents.
According to The Buckeye Institute, nearly one in five Ohio workers are subject to state occupational licensing requirements, limiting job prospects and restricting economic opportunities and career choices. The licensing mandates also impose bureaucratic costs, serving as government permission slips to obtain employment in some professions.
The Buckeye Institute previously identified 47 licenses the state should nix or reform.
“Such requirements especially burden low-income individuals, minorities, and those with criminal records, discouraging entry into some professions and delaying workforce participation,” Greg R. Lawson, a research fellow at The Buckeye Institute and author of “Opening Doors III: Occupational Licensing Reform in Ohio,” a policy brief, said in a new policy memo.
Senate Bill 255, enacted in 2019, requires Ohio lawmakers to evaluate and reaffirm the state's occupational licensing boards every six years. The Buckeye Institute said that since lawmakers passed Senate Bill 255 more than five years ago, the state has scrapped or minimized requirements for 55 licenses based on its recommendations.
The Buckeye Institute previously “urged lawmakers to reevaluate Ohio’s approach to occupational licensing—encouragement that led to Senate Bill 255, which laid the groundwork for streamlining occupational licensing by requiring the General Assembly to review all occupational licensing boards every six years and sunset any licensing entity that the legislature did not reauthorize,” Lawson added.
Meanwhile, the Ohio Senate Government Oversight Committee will consider House Bill 238, which would eliminate several requirements and better align Ohio with nearby states. The House passed the legislation in February.
The measure would eliminate the two-year post-secondary education requirement for real estate brokers. It would also extend license durations and reduce renewal fees for other occupations, including real estate appraisers and private investigators.
In testimony to the Senate Government Oversight Committee earlier this year, state Rep. Roy Klopfenstein, R-Haviland, said the measure would “reduce burdensome regulations” and reduce or eliminate fees where appropriate, “minimizing barriers to occupational entry and retention while maintaining respected and meaningful competency standards and consumer quality safeguards.”
During the process, the committee worked with state agencies and interested parties to review 19 boards with 244 licenses. It identified 25 licenses that should be eliminated and 14 that would benefit from reduced fees.
“While it might not end all of our problems these changes will serve as a step in resolving our state’s skilled workforce shortage and will help those experiencing financial hardship to find satisfying careers and provide for their families,” Klopfenstein said.
One area that proponents said should be explored centers on cosmetology and barber licenses.
“Legislators can improve House Bill 238 by reducing the hours required to obtain cosmetology and barber licenses,” Lawson said in a policy memo. “The Buckeye Institute has long argued that Ohio’s 1,500-hour training requirement for cosmetologists—which exceeds Pennsylvania’s mandate by 250 hours and New York and Texas by 500 hours—puts aspiring cosmetologists in Ohio at a significant disadvantage.”
Additionally, earlier this year, Senate President Matt Huffman, R-Lima directed the Senate Government Oversight Committee to review one-third of all occupational licensing boards and licenses.
While a committee report recommended that the state maintain many licensing requirements, it also called for the state to eliminate many required licenses. This included several licenses under the State Racing Commission’s purview, including telephone operators, concessions managers and parking lot employees.
