Occupational Licensing Reform


Obtaining a license to do business in Illinois should not create unnecessary barriers for entrepreneurs or be an overly burdensome process. The number of businesses subjected to this state oversight has increased exponentially since the 1950s when licensing was limited to a small number of professions. Today, an Illinois state license is now required for roughly 400 occupations. While public health and safety must come first, new licenses should not be created unless they are necessary to protect the safety and welfare of the public.  New licenses that are established by the legislature should also be crafted in the least restrictive manner to achieve its objectives.

The following reforms are recommended to ensure that a holistic approach is taken with occupational licensing. We recommend that state official pass legislative reform that includes: (1) stricter sunset reviews, taking into account economic impacts of licensing (2) creation of sunrise reviews for proposed occupational licenses (3) increase of vocational training in grade school public education (4) increased reciprocity for workers looking to relocated to Illinois and (5) criminal justice reform.

The SBAC supports HB5212, an IDFPR initiative know as the Sunrise Review Act. HB5212 will provide legislators with a process to receive information and analysis from independent parties regarding whether a new license is warranted, the reasons for the license, how it will impact the economy and how to craft necessary licenses in the least restrictive way to ensure it is effective.

This legislation passed the Illinois House of Representatives on April 25, 2018. It was not brought up for consideration in the Senate.

Related Documents:
[100th General Assembly: HB5212]
IDFPR HB5212 Fact Sheet