State Bill of the Month — March 2024: Connecticut SB 135

TPA’s State Bill of the Month for March 2024 is Connecticut’s SB 135, which would establish a maximum charge for certain occupational licenses, certifications, permits and registrations while also eliminating application fees for the licenses. The bill was introduced by the House General Law Committee and a bipartisan group of 26 legislators. This legislation would create a flat rate charge for certain occupational licenses, while eliminating the fees altogether.

Background:

Occupational licensing is not new, but it has gotten more prevalent across the nation since the 1950s. According to the West Virginia University Knee Regulatory Research Center, only five percent of occupations in the 1950s required a license or certification. Today, however, 22 percent of workers are working a profession that requires a license. Occupational licensing is a form of protectionism by entrenched players who have the resources to comply with such onerous requirements.

Like protectionism in trade, protectionism in licensing leaves consumers out in the cold. It ends up insulating existing market players from legitimate competition. Limiting the number of professionals in a field will cause prices for services to rise considering the scarcity of services being offered. Giving consumers less access to goods and services they need will only increase the costs of those services for taxpayers and consumers. SB 135 is currently moving through the Connecticut Senate.

SB 135 would reduce barriers to employment and improve upward mobility in the Constitution state. Occupational licensing is only pragmatic for professions that need to place a greater emphasis on health and safety standards. Requiring licensing for certain professions only hurts Americans from entering new careers and raises prices for consumers.

This is why TPA is proud to make SB 135, introduced by the House General Law Committee and a bipartisan group of 26 legislators, its State Bill of the Month for March 2024.