States to watch on regulatory reform in 2024

OPINION:

As 2024 begins, a lot of eyes will be on Washington, and understandably so, given that it is a critical election year. Like many Americans, I am pessimistic about the future of the Oval Office, Congress, and the circus that is our nation’s capital.

But hope should not be lost. At the state level, there is reason for excitement in 2024.

Let’s begin with Georgia, where the Atlanta metropolitan statistical area is booming and rapidly approaching 6 million residents. Employers will need skilled workers, so it is important that outdated regulations do not present barriers to growth for the region.

The Georgia General Assembly seems to recognize this, and it may be making some important moves this year. Over the closing months of 2023, the state Senate Study Committee on Occupational Licensing gathered information on the landscape of occupational licensing in the state. In its final report, which cites the Knee Regulatory Research Center’s work, the committee recommended reform that includes the elimination of licensing requirements “where licensing has not been proven necessary.”

Further, the Georgia Senate also tasked a separate study committee to examine the state’s certificate of need law, which forces certain health care facilities to seek agency approval before expanding their service capacity. At the end of November, the committee released its findings and recommended broad reform, including a consideration of full repeal. Research by my Knee Center colleague Matthew Mitchell suggests that Georgia has nothing to lose by moving forward with certificate of need reform.

Scaling back or eliminating occupational licensing and certificate of need regulations in the Peach State would tear down needless barriers to residents gaining access to the labor market. The quality of life and health of Georgia residents would also stand to benefit from cutting needless red tape.

Georgia wouldn’t be going out on a limb by eliminating outdated regulations such as certificate of need. South Carolina eliminated nearly all of its certificate of need regulations in 2023.

Mississippi will be another state to watch in 2024 on regulatory reform. Mississippi Secretary of State Michael Watson has noted on several occasions that the state needs to move forward with reform. In 2022, the state launched its “29 by 29” initiative, subjecting all of its licensing boards to review by 2029. And in recent years, the Mississippi Legislature has given the governor’s office the ability to veto new licensing regulations and review its existing regulations.

So far, Mississippi has not been able to move forward with the removal of licensing regulations, but 2024 could be different. Like in Georgia, Mississippi policymakers have expressed interest in certificate of need reform as well.

One other state that we should keep an eye on in 2024 is out west. Utah may be a mover on regulatory reform this year. Like Mississippi, Utah is reviewing its occupational licensing requirements. In 2022, legislation was enacted establishing the Office of Professional Licensing Review within the state’s Department of Commerce, strengthening the review process.

Last year, the new office released some preliminary results of its review of behavioral health profession licensing. The report notes that Utah, like most states, has a shortfall of health care providers. The report also finds that the state needs more pathways for behavioral health care providers, particularly for providers who lack advanced degrees.

Another important reform discussed in the report is granting psychologists the authority to write prescriptions. This reform could help ease gaps in care for patients lacking access to mental health treatment. Research by my Knee Center colleague Alicia Plemmons shows that this change may also reduce mental health mortality.

These are just three examples of states that seem primed for action on regulatory reform this year. While many will be consumed by Washington’s political theater in 2024, the real action will come in the states, and that is good news. Here’s to a new year filled with regulatory reform that improves the lives of U.S. citizens state by state.

• Edward Timmons is director of the Knee Regulatory Research Center at West Virginia University. He is also a senior research fellow with the Archbridge Institute.