Where Does Arkansas Stand on Universal Licensing Recognition and How Can it Improve?

by ACRE Policy Analyst Zachary Burt

If you’re a license-holding professional, it may be harder than you’d expect to move your out-of-state license to Arkansas. Licensed workers from other states often have to go through the same licensing process all over again when relocating to Arkansas. These are unnecessary barriers that could convince you to move to other states. A solution many states, including neighboring Missouri, Mississippi, and Oklahoma, along with 16 other states, have recently implemented is a process known as universal licensing recognition (ULR). ULR refers to a system in which the licenses and certifications obtained by professionals in one state are recognized and accepted as valid in another state. This eliminates the need for professionals to obtain separate licenses and certifications in each state they work in, which can be a time-consuming and expensive process.

ULR allows licensed workers from other states to automatically or expeditiously become licensed in a new state. Exact processes differ slightly between states, but typically as long as applicants have one year of experience, are in good standing, and intend to establish residence in the new state, their licensing qualifications are recognized. When someone moves to Arkansas, we don’t make them pass additional qualifications to get an Arkansas driver’s license, since we know the rules don’t differ significantly between states. The same is true of licensing, yet we often do make individuals meet licensing requirements that exceed national standards before they can work in the state. Under the current status quo, Arkansas risks losing talented professionals to neighboring states with friendlier licensing recognition policies.

One of the primary benefits of ULR is increased mobility for professionals. With their licenses and certifications recognized across state lines, they are free to work in any state they choose, without the need to go through a cumbersome licensing process. This can be particularly beneficial for individuals who are looking to relocate their careers to a new job market, as they can take advantage of opportunities in other states without the added hassle of obtaining new licenses. While state ULR laws are fairly new, early research shows that residents of counties that border states that have enacted ULR policies are more likely to seek employment in neighboring counties across state lines, suggesting that friendlier licensing policy does have an effect on where people choose to work. 

Another benefit of universal licensing recognition is the improvement of standards in the industry. By establishing a universal set of licensing standards, it becomes easier for organizations to identify and recruit top talent from around the country. ULR also helps reduce the economic burden of licensing, since license holders moving to a new state will not have to pay the often high initial licensing and exam fees another time. 

Universal licensing recognition is a powerful tool that can benefit professionals, organizations, and consumers alike. By promoting mobility and lowering barriers to good jobs, it creates a more level playing field for professionals and helps to drive progress in the industry. State and many local governments spend millions of dollars each year on “economic development incentives” to try to attract jobs and businesses to Arkansas. ULR could do just that, without spending a dime of taxpayer money .As the world becomes increasingly interconnected, ULR will become increasingly important, and it is a concept that should be embraced by all stakeholders. A legal precedent for universal recognition already exists in Arkansas, since Act 135 of 2021 was enacted in the legislative session of that year for the spouses of active duty military personnel. It makes sense that if universal recognition benefits military spouses, it would also benefit other individuals who are either interested or compelled to move states. 

As of February 2023, 19 states have enacted universal licensing recognition legislation. 

1. Arizona (2019)
2. Colorado (2020)
3. Idaho (2020)
4. Iowa (2020)
5. Kansas (2021)
6. Mississippi (2021)
7. Missouri (2020)
8. Montana (2020)
9. Nevada (2017)
10. New Hampshire (2018)
11. New Jersey (2018)
12. New Mexico (2016, 2020)
13. Oklahoma (2021)
14. Ohio (2023)
15. Pennsylvania (2019)
16. South Dakota (2021)
17. Utah (2020)
18. Vermont (2020)
19. Wyoming (2021)

In a recently released study by the Institute for Justice, a public interest law firm, Arkansas was ranked as the 9th most burdensome state for licensing in the country. That’s compared to neighboring states like Mississippi and Louisiana at 44th and 45th most burdensome respectively. This is in part because Arkansas licenses more occupations on average than most other states. Out of a sample of 102 licensed occupations, Arkansas licenses 71 percent, compared to the 53 percent national average. Universal licensing recognition would therefore be a particularly efficient method for effective licensing reform in Arkansas. 

Arkansas should enact universal licensing recognition legislation comparable to laws passed already in the neighboring states of Missouri, Mississippi, and Oklahoma. Fortunately, there is a bill currently under consideration by the Arkansas State Legislature that would do just that. SB90, sponsored by Senator Ricky Hill (R-Cabot), entitled “To Create the Automatic Occupational Licensure for Out-of-State Individuals Act” would be a massive improvement over the status quo in the state. 

 

SB90 would require Arkansas licensing boards to recognize out of state licenses provided the license holder has been in good standing for one year. If a professional is moving to Arkansas from a state that does not license their occupation, but Arkansas does license it, the bill requires that they have at least three years of experience in the occupation to be granted licensure in Arkansas. Additionally, licensing boards would be allowed to administer jurisprudence exams to out-of-state license holders where relevant. SB90 takes it one step further than some other states, since it does not contain a residency requirement – but only 5 of the current ULR states require residency to be established (see Table 1 of this policy brief).

 

Our legislators should strongly consider enacting SB90. A growing wave of states are adopting universal licensing policies, and Arkansas should do the same, or risk lagging behind our neighbors. ULR is a good policy that improves professional mobility, improves industry standards, and lowers the economic and legal burdens of professional licensure. 

 

References:

 

Follett, T., Herman, Z., and Hentze, I. (2021). Universal licensure recognition. National Conference of State Legislatures. https://www.ncsl.org/research/labor-and-employment/universal-licensure-recognition.aspx

 

Deyo, D. and Plemmons, A. (2022). Have license, will travel: measuring the effects of universal licensing recognition on mobility. Economics Letters. 219. 

 

Institute for Justice. (2023). State Reforms for Universal Licensing Recognition. https://ij.org/legislative-advocacy/states-reforms-for-universal-recognition-of-occupational-licensing/

 

Knepper, L., Deyo, D., Sweetland, K., Tiezzi, J., and Mena, A. (2022). License to Work: A National Study of Burdens from Occupational Licensing. 3rd Edition. Institute for Justice. https://ij.org/report/license-to-work-3/