Report is one that may help lawmakers

OKLAHOMA has been identified as one of the most onerous states when it comes to occupational licensing, and many regulations defy logic. Until recently, hair braiders were required to undergo four times as much training as emergency medical responders.

A new report proposes reforming the system by incorporating private-sector organizations into the process. The recommendation deserves serious consideration.

In “A Win-Win for Consumers and Professionals Alike: An Alternative to Occupational Licensing,” Byron Schlomach, director of the Oklahoma-based 1889 Institute, and the Goldwater Institute’s Christina Sandefur and Murray Feldstein, argue that private-sector certification would better serve the public while increasing market competition and entry into professions.

While occupational licensing is supposed to provide shorthand information or signals of quality and competence, the report notes this is often not the case and that “stories of how licensing boards fail to discipline licensees are legion.” On the whole, the report notes, government licensing boards directly and indirectly serve to reduce supply, drive up prices and compromise quality.

Put another way, there’s a reason few people check Department of Health records when considering a new restaurant, but instead go to non-government sources such as Yelp for consumer reviews. The latter is seen as far more credible and relevant.

The report recommends lawmakers authorize a voluntary system in which private certifying organizations register with the state, privately certify individuals to practice an occupation, and share consumer-rating systems via modern technology, such as smartphone apps.

Under the proposed law, a privately certified individual could “engage in the lawful occupation for which that individual is privately certified notwithstanding any other occupational regulation enacted by the government.” Multiple certifying organizations could provide certificates in the same industry, and the resulting competition to be the most credible certifying organization would benefit consumers.

The proposed legislation includes some transparency measures, including a requirement that privately certified individuals prominently display a sign explaining that they’re privately certified and not licensed by a government agency.

According to federal agency estimates, 25 percent of the Oklahoma workforce is licensed by the state. That’s a higher percentage than in all but 11 states. In some instances, Oklahoma is in a distinct minority. The 1889 Institute previously found Oklahoma is one of seven states that requires licensing of social and human service assistants, and one of only six that requires licensing for title examiners.

There’s no reason for Oklahoma to be such an outlier when other states have less regulation and no obvious problems. Gov.-elect Kevin Stitt has identified licensing reform as a priority. Outgoing Labor Commissioner Melissa McLawhorn Houston, a member of Stitt’s transition team, has also been involved in licensing reform efforts.

With new executive leadership and many first-term legislators with fewer ties to the status quo, 2019 may be the perfect time to address licensing reform. This new report provides policymakers a good foundation on which to build those efforts.