Occupational Licensing and Advisory Commission

Framework for Analysis and Reform

The Occupational Regulation Blueprint, in conjunction with informational meetings between the Commission, licensing entities, industry participants, and the public, formed the basis for analyzing licensing requirements. This Blueprint created an objective, practical tool to determine whether an occupational license was necessary or if a lesser form of regulation, such as insurance, bonding, or registration, could be equally effective.

Key Evaluation Questions

The Blueprint contained questions to assess whether there was a government interest in regulating an occupation, such as public safety, public health, a fiduciary duty, or preservation of a fundamental right. It also considered the composition of Oklahoma licensing boards.

Review Process

• Newly created licenses were reviewed by the Commission within 90 days of enactment.
• Licenses were reviewed every four years.
• In 2019, the Commission examined critical occupations with high economic potential and licenses that appeared to be outliers.
• In 2020, the focus was on remaining critical occupation licenses identified by Oklahoma Works and the Occupational Licensing Policy Learning Consortium's targeted occupations list.
• Subsequent years were to examine the balance of Oklahoma's occupational licenses, with Commission members able to add licenses to the review schedule by majority vote.

Annual Reviews and Recommendations

The Commission prioritized reviews of critical occupations vital to Oklahoma’s economy. Each December, recommendations for reform or modification were made to the Oklahoma Legislature, following public meetings and extensive input from stakeholders. This process aimed to streamline licensing requirements and enhance efficiency.

Data Compilation and Transparency

The Commission compiled data to determine the number of differing occupational licenses issued by Oklahoma's agencies, boards, and commissions, continually updating an online database created by the Task Force. This ensured transparency and accessibility for all stakeholders.

Occupational licensing ensures the integrity of trades and protects the public. Licensing encourages workers to become more professional, builds community and cohesiveness within occupations, and standardizes work functions. Consumers benefit by being able to research information through licensing entities before seeking services. Licensing also creates incentives for workers to invest in increased training and skill development for high-quality services.

Origins and Establishment

Oklahoma began addressing occupational licensing issues by convening an Occupational Licensing Task Force in 2017, per Executive Order 2016-39 by Governor Mary Fallin. The Task Force found a state of disarray in licensing review and administration, recommending further analysis by an independent entity using an Occupational Regulation Blueprint. This led to the creation of the Occupational Licensing Advisory Commission (OLAC) by SB1475, effective July 1, 2018.

Composition and Tasks

The Commission was comprised of a broad representation of needed stakeholders, including legislators, industry members, information technology representatives, license holders, and others. It was tasked with conducting a comprehensive review of all Oklahoma occupational licenses and making recommendations to the Legislature.

Sunset Provision

SB1725 (Pugh, Osburn) established a sunset provision for the Commission, rendering it inactive as of December 31, 2022. Despite this, the Commission’s work continues to influence occupational licensing practices in Oklahoma.

Initial Task Force and Executive Orders

In December 2016, Governor Fallin issued Executive Order 2016-39, creating the Occupational Licensing Task Force to conduct a comprehensive review of occupational licensing in Oklahoma. The Task Force recommended removing license requirements that did not promote health and/or safety and were unreasonable barriers to workforce entry.

Occupational Licensing Task Force Report

Role of the Oklahoma Department of Labor

Executive Order 2018-02 designated the Oklahoma Department of Labor as the central coordinating entity for reporting information regarding occupational licenses in Oklahoma. This led to the establishment of the OLAC by SB1475, which conducted comprehensive reviews every four years and provided recommendations to the Legislature, balancing free market principles with public safety and workforce entry considerations.