Create Equitable Access to Licensing
Background
Rural business owners create employment opportunities and generate critical economic activity. New rural business owners today are likely to be immigrants, formerly incarcerated people, or others who may face obstacles as they apply for the licenses they need to run their business. Barriers to obtaining both business and driver’s licenses can limit the success of aspiring entrepreneurs.
State lawmakers can address these challenges in several ways. They can create pathways for immigrants to get the resources and support needed to create, maintain, and grow their businesses, regardless of immigration status. Some states have begun to make occupational licenses[1] and loans easier for formerly incarcerated individuals to obtain, but restrictions[2] still vary widely. Some industries dominated by people of color still have excessive licensing[3] or fee requirements; policymakers can seek to reduce these requirements. Finally, in rural areas, the most important license for a new business owner to be assured of may be a reliable driver’s license, without which they cannot even get to their place of business. State policymakers can make driver’s licenses available to all state residents, regardless of citizenship or legal status. Last updated April 2025 [1] “State Occupational Licensing Reforms for Workers with Criminal Records.” Institute for Justice, 2 Nov. 2021, https://ij.org/activism/legislation/state-occupational-licensing-reforms-for-people-with-criminal-records/. [2] Sibilla, Nick. Institute for Justice, 2020, Barred from Working: A Nationwide Study of Occupational Licensing Barriers for Ex-Offenders, https://ij.org/wp-content/uploads/2020/08/Barred-from-Working-August-2020-Update.pdf. [3] Jackson, Chris, and Jason Wiens. “Occupational Licensing: A Barrier to Entrepreneurship.” Ewing Marion Kauffman Foundation, 24 Nov. 2014, https://www.kauffman.org/resources/entrepreneurship-policy-digest/occupational-licensing-a-barrier-to-entrepreneurship/.
State Policy Priorities
- Ensure business and professional licenses and permits are accessible to people regardless of immigration status or former incarceration.
- Remove excessive requirements, training, and fees to obtain business licenses, particularly in industries with large numbers of women and people of color.
- Allow all state residents to apply for a driver’s license regardless of citizenship or legal status.
State Examples
- South Carolina (2023 SC HB 3605) passed the “Earn and Learn Act” to reform occupational licensing by restricting denials, requiring that licensing boards can no longer deny licenses based solely on criminal convictions unless the offense directly relates to the occupation; removing ambiguous criteria like “good moral character” from licensing decisions; and ensuring fair process, granting applicants the right to a hearing and a written explanation if denied a license.
- New laws in Colorado (2024 CO HB 24-1004), South Dakota (2024 SD SB 57), and Nebraska (2024 NE LB 16) all expand licensure in ways that will increase access for rural people in areas where jobs are scarce. By standardizing the licensing process, the bill seeks to expand employment opportunities in various sectors, including trades and healthcare.
- Georgia (2023 GA SB 207) proposed measures to assist individuals with criminal records in obtaining occupational license by allowing applicants to assess their eligibility before investing in training.
- Colorado (2021 CO SB 199) lawmakers repealed a law[4] that prohibited individuals from receiving a professional or commercial license without verification of lawful presence in the country. The bill also repealed a law that prohibited state agencies or political subdivisions from contracting with a contractor that knowingly employs or contracts undocumented persons.
- Michigan (2021 MI HB 4835 and HB 4836) proposed providing noncommercial driver’s licenses or state personal ID cards to individuals who are unable to provide documents verifying their identity and legal presence in the U.S. The bills also prohibited discrimination against an individual who holds this type of license or ID.
- Nevada (2019 NV AB 275) legislators enacted a bill that repealed citizenship requirements for all professional licenses and prohibits state licensing boards from denying an applicant based on their immigration status.
- Indiana (2018 IN HB 1245) legislation requires state and local licensing agencies and bodies to explicitly list the crimes that disqualify an individual from an occupational license and to show that these crimes directly relate to the responsibilities of the occupation itself. Before disqualifying an applicant, the licensing agency is also required to consider the nature and seriousness of the crime, how long ago it was committed, and evidence of rehabilitation or treatment of the applicant.
- Missouri (2018 MO HB 1500) passed a bill to cut regulations for businesses offering ethnic hair braiding. Previously, hair braiders were required to complete hundreds of hours of training and pay high licensing fees that were disproportionate to the activity.
- New York’s Green Light Law (NY 2019 NY A03675, S0174) allows New Yorkers age 16 and older to apply for a standard noncommercial driver’s license regardless of their citizenship or lawful status in the U.S.
Toolkits
Inspired? Ready to dig in on these issues with your rural neighbors? Our practical communications toolkits will help you connect with new communities through common values. The toolkits provide examples on narrative framing, press release templates, sample talking points, and more.
Click here for the communications toolkit on Access to Rural Economic Opportunity.