In my last five posts, I provided lists of revenue licenses for each state in the US, the District of Columbia, and Puerto Rico. Here, I summarize what I found. The map above compares states by the number of revenue licenses. I define revenue licenses as occupational licenses that require a fee and no competency requirements such as minimum age, education, or training. Thus, it is very difficult to justify revenue licenses using the typical health and public welfare justification given for occupational licensing in general. States interested in reforming occupational licensing should consider eliminating all of these licenses if they are indeed meant to promote public welfare.

Here also are the top five states and bottom five states ranked by the number of revenue licenses:

Top five states (number of revenue licenses)

1. Illinois (18)

2. Texas (15)

3. Utah (14)

4. Michigan (13)

5. Arkansas/Iowa (12)

Bottom five states/jurisdictions (number of revenue licenses)

1. Puerto Rico (0)

2. Arizona/Delaware/New Mexico/West Virginia (1)

The average number of revenue licenses in each state, the District of Columbia, and Puerto Rico is 5.7 licenses (5.8 if we exclude Puerto Rico).

Consistent with what I have found with my co-author Noah Trudeau in our annual State Occupational Licensing Index, the West South Central region of the US (Arkansas, Louisiana, Oklahoma, and Texas) seems to license more occupations than any other region in the United States. All 4 states in this region have 10 or more revenue licenses with Texas licensing the second-most (15) nationally.

It is also important that states or jurisdictions do not misinterpret a low number of revenue licenses as a positive. This could also mean that the state is imposing unnecessary requirements on aspiring licensees. As an example, Vermont requires aspiring massage therapists to pay a fee to begin working. Most other states require massage therapists to complete 500 to as many as 1,000 hours of education and training. Puerto Rico has 13 licenses that do not exist in other states and also licenses interior designers. In short, revenue licenses are easy targets for reform, but policymakers should not be satisfied by solely removing this category of occupational licensing.

For more details on each state please check out my past posts:

Part 1 Alabama to Georgia

Part 2 Hawaii to Maryland

Part 3 Massachusetts to New Jersey

Part 4 New Mexico to South Carolina

Part 5 South Dakota to Wyoming