Testimony In SUPPORT of HB 155, “Professions and businesses; issuance of licenses by endorsement”
Testimony from:
Marc Hyden, Director, State Government Affairs, R Street Institute
In SUPPORT to HB 155, “Professions and businesses; issuance of licenses by endorsement”
February 22, 2023
House Regulated Industries Committee
Chairman and members of the committee,
My name is Marc Hyden. I am a Georgia resident and the director of state government affairs for the R Street Institute, a nonprofit, nonpartisan public policy research organization. Our mission is to engage in policy research and outreach to promote free markets and limited, effective government in many areas, including occupational licensing policy. This is why HB 155 is of special interest to us.
To date, roughly 30 percent of workers need an occupational license to work, but Georgia does not recognize numerous out-of-state professional licenses. This means that licensed individuals who move here must begin the licensing process anew, which can be costly, time-consuming and duplicative, but it does not need to be this way.
Nineteen states, including Idaho, Montana, Kansas, Mississippi, Missouri, Ohio, South Dakota, Utah and Wyoming, have taken a different path. In order to cut red tape, help people get to work and promote a more prosperous economy, these states have adopted some form of regulated interstate-mobility licensure act. These are similar to the committee substitute for HB 155, which would be a boon to the state for several reasons:
It would ease Georgia’s workforce shortages
- Georgia is facing workforce shortages across many industries. Filling these gaps has proven difficult, given that there is a limited number of potential workers. Georgia has a low unemployment rate, and “Pre-COVID, there were 3 openings for every person looking for a job in our state,” reads a 2022 Georgia Chamber of Commerce report. One year later, not much has changed. One of the surest ways to address this quickly is to encourage qualified out-of-staters to move and work here.
It would help new residents get to work
- As of 2019, the fifth most popular state to move to was Georgia. While more than 250,000 people relocated here in that year alone, it was not enough to alleviate our workforce shortages. Individuals who move here often struggle to obtain gainful and timely employment thanks to state licensing laws.
It is good for business
- Georgia prides itself on being a business-friendly state, but its licensing paradigm is holding it back. Already, 19 states have a much more business-friendly licensing environment—making Georgia less competitive. It stands to reasons that larger companies will be less inclined to work in Georgia if they understand that they will face undue difficulties transferring their employees from one state to another. What is more, employees will be less likely to agree to a transfer if they worry that they or their spouses may not be able to obtain employment in Georgia quickly because of burdensome licensing restrictions.
It is good for consumers
- The highly regulated nature of interstate-mobility licensure acts set strict baseline requirements and regulations to protect the public, and HB 155 may be one of the strictest on record. It imposes a high threshold to ensure that only highly qualified out-of-state licensees can work in Georgia, and licensing boards would be empowered to determine which applicants meet the necessary criteria.
In order to address workforce shortages, ensure Georgia retains a competitive edge over other states and foster a healthier economy, lawmakers would be wise to support a regulated interstate-mobility licensure act, and I respectfully urge the committee to support the committee substitute to HB 155.
Thank you,
Marc Hyden
Director, State Government Affairs
R Street Institute
(404) 918-2731
[email protected]