License Reform bill would save applicants $32 million over two years

A bill that would cap registration and fees for over 60 types of occupational licenses is sitting on the Senate calendar. Fiscal analysis projects the state will lose $32 million in revenue over the next two years, which translates to $32 million in savings for applicants.

The bill would cap fees for initial licensure, license renewal, permits, and certifications issued for certain professions licensed by the Department of Consumer Protection at $100. Currently, the affected fees range from $60 to $1,100. Affected professions include public accountants, architects, professional engineers, contractors, tradespersons, landscape architects, interior designers, and others.

It would also cap the fees for certain business organization certificates of registration. Initial fees for mechanical contractor registrations, as well as renewals, would be capped at $100. Renewal registrations for landscape architecture corporations would also be capped at $100.

The bill would also cap fees for certain occupations, including real estate brokers and home inspectors, that are licensed biennially at $200.

In addition, it would make changes to fees for new home construction contractor registrations. Under current law, those registrations expire on March 31 each year. Previously, certain contractors had a two-year registration that expired on September 30, 2025. They were given a one-time 18-month renewal, set to expire on March 31, 2025.

Under current law, contractors subject to the 18-month renewal must pay a $180 fee. The bill would lower the fee to $150 for contractors whose renewal date is between July 1, 2024 and March 31, 2025.

According to analysis of the bill performed by the Office of Legislative Research (OLR), DCP received nearly 120,000 applications and renewal requests for licenses affected by the bill during fiscal year 2023.

The change to fees is expected to result in $16 million in lost revenue in both fiscal years 2024 and 2025. Revenue loss is also projected farther into the future, but the amount will depend on the number of applications and renewals DCP receives.

Despite the revenue loss, public testimony submitted for the bill, which has 25 sponsors, was unanimously in support of the fee reductions.

DCP did not offer any comment on the bill, but a number of legislators, as well as professional trade associations, labor unions, and individuals employed in industries the bill would effect offered testimony in support of the bill. Many cited Connecticut’s comparatively higher occupational license fees to surrounding states, which they said discouraged individuals from moving to the state and contributed to workforce shortages.

In total, over 50 people and organizations testified in favor of the bill.

If passed, it would go into effect on July 1, 2024. A section giving DCP the authority to adopt regulations to implement the fee caps would go into effect immediately upon passage.

The bill is not the only one this session to address occupational licensure.

Another bill before the Senate would allow members of the armed services and their spouses to transfer licensure from other states, in accordance with the federal Servicemembers Civil Relief Act. Currently, Connecticut statute is at odds with the federal requirement.

Gov. Ned Lamont also proposed eliminating initial application fees for educator certificates, home childcare licenses, registered nurse licenses, practical nurse licenses, and advanced practice registered nurse licenses as part of his fiscal year 2025 budget adjustment proposal.

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