Committee Approves Occupational License Fee Cap Bill
The legislature’s General Law Committee unanimously approved a bill March 7 that sets a maximum fee for a range of occupational licenses, certifications, permits, and registrations.
SB 135 caps fees the Department of Consumer Protection charges for more than 60 types of licenses impacting a range of occupations, including tradespeople, accountants, and engineers.
DCP received over 130,000 application and renewal requests in fiscal 2022 for the types of licenses, certifications, permits, and registrations impacted by the bill, with fees ranging from $60 to $600.
According to a study conducted in November 2022 by the Institute for Justice, Connecticut’s occupational fees are higher than the national average, totaling $290.
These fees include charges for application review and license issuance, exams, background checks, credit reports, and fingerprinting.
This cost, however, does not include the cost of the thousands of educational hours required to even apply for official licensing.
Job, Economic Costs
AdvanceCT also found that licensing costs the state of Connecticut about 48,000 full-time jobs and shrinks the state economy by $400 million.
The organization’s 2021 Annual Report noted “Connecticut’s relatively burdensome occupational licensing requirements are a significant barrier to entrepreneurship and upward mobility into the trades for economically disadvantaged individuals and those looking to work in the state.”
At a hearing last month, CBIA’s Wyatt Bosworth told the committee licensing costs are a barrier to entry for many individuals, especially those looking to raise themselves out of poverty through higher paying, in-demand careers.
High-cost licensing is correlated to depressed levels of low-income entrepreneurship, holding our state back from unlocking its full economic potential.
SB 135 also complements Gov. Ned Lamont’s proposal to eliminate initial licensing fees for teachers, nurses, and childcare workers, along with SB 74, which caps healthcare professional license fees at $200.
A priority issue this session for CBIA, SB 135 plays a critical role in helping lower the cost of employment for approximately a quarter of the state’s workforce and makes Connecticut a more attractive place to work, a necessary factor to keep our economic momentum moving in a positive direction.
The bill now awaits action by the state Senate.
For more information, contact CBIA’s Chris Davis (860.244.1931).
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