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Occupational Licensing Reform to Address Workforce Shortages in Florida and Colorado

2024-04-17 17:20:47.773000

Florida lawmakers have opportunities to address the state's ongoing workforce shortage during the 2024 Legislative Session. The state is facing a shortage of skilled workers, particularly in the healthcare industry, with a projected shortage of nearly 60,000 nurses by 2034 [16c558bb]. To address this shortage, lawmakers should create new paths to employment through workforce development strategies, support workforce-focused interstate compacts, and pass legislation to recognize all out-of-state occupational licenses. Florida is one of 28 states that has not passed a universal licensing recognition law. By investing in the workforce, Florida can continue leading the nation in population and economic growth [16c558bb] [c60ca031].

In addition to addressing the workforce shortage, Florida lawmakers have the opportunity to embrace immigrants and their contributions to the state through the Welcoming Florida Act. The Act, also known as HB 1527 and SB 1598, aims to counter anti-immigration state laws and embrace the essence of being a Floridian [8082c009]. Immigrants play a pivotal role in shaping Florida's landscape, with one in four workers in Florida being an immigrant. They contribute significantly to the state's workforce, economy, and cultural richness [8082c009].

The Welcoming Florida Act expands eligibility for driver's licenses, guarantees equal opportunities for child care, education, and professional licensure regardless of immigration status, addresses the issue of E-Verify, and prohibits discrimination by employers based on immigration status. It also aims to prevent 'notario' fraud, which is a form of immigration fraud [8082c009]. The Act is about building a state where every individual has the chance to fulfill their potential and pursue their dreams [8082c009]. The legislation is supported by the Women's Chamber of Commerce of Miami-Dade [8082c009].

Occupational licensing reform has also been a topic of discussion in Colorado. Currently, one-sixth of Colorado's workforce is required to have an occupational license, which can prevent individuals with criminal records from entering the workforce. The proposed reform aims to make it easier for individuals with records to obtain licenses by expanding eligibility, requiring licensing boards to consider individuals on a case-by-case basis, and allowing individuals to inquire about potential license denial before completing the process [8896f3bb]. The U.S. economy loses over $6 billion annually due to restrictive occupational licensing, and nearly 2 million people are prevented from entering the workforce as a result. The proposed reform is seen as a way to address the ongoing labor shortage in Colorado and benefit both the workforce and the statewide economy [8896f3bb].

Virginia enacted a universal license recognition law in 2023, allowing individuals with out-of-state licenses to access an expedited relicensing process. Since then, 276 workers have earned licenses under its provisions. The law has benefited tradespeople, real estate professionals, estheticians, and other beauty professionals the most. The reform has helped resolve worker shortages in industries such as waterworks and wastewater works operators. Occupational licensing reform promotes interstate mobility and raises workforce participation rates while lowering unemployment rates. It allows individuals to live and work where they choose, creating economic and social value for communities. Universal license recognition is expected to add at least 67,000 new jobs to the United States [c60ca031].

Several states, including Florida and Colorado, are facing a shortage of skilled workers and have responded by cutting red tape around their occupational licensing laws. Occupational licenses often impose barriers that limit where workers are allowed to work, requiring re-training or additional fees if they move to another state. To address this, 21 states have passed universal license recognition (ULR) laws, making it easier to transfer licenses between states. Arizona was the first state to automatically grant occupational licenses to anyone who moved there with a clean credential from another state. Over 8,000 professionals have been granted a license to work in Arizona thanks to the law [8a02eb56]. Reform efforts to cut occupational licensing red tape have received support from both Republicans and Democrats. Research shows that licensing laws can lead to higher prices and reduce job opportunities. The share of workers requiring a license to do their job has increased from about 1 in 20 to almost 1 in 4 over the past 60 years. Licensing requirements vary from state to state, and some jobs are regulated in only one state while others are regulated in all 50 states. The push for more licensing often comes from licensed practitioners and associations who benefit from raising barriers to entry. Licensing drives up labor costs and reduces interstate mobility. Reform efforts have gained bipartisan support as both Republicans and Democrats criticize cumbersome regulations. Universal licensure could continue to gain traction in state legislatures as states work to address ongoing labor challenges [8a02eb56].

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