Tennessee reduces unnecessary occupational licensing barriers for people with criminal records

Tennessee Gov. Bill Lee signed House Bill 1859 into law on May 1, reducing unnecessary employment barriers for people with criminal records by providing clarity to individuals denied licensure based on a prior conviction. The legislation passed unanimously in both chambers of the Tennessee General Assembly.

Access to gainful employment is a key factor in the effective reintegration of former criminal offenders. However, occupational licensing laws and regulations often impose barriers to employment opportunities for individuals with a prior criminal conviction.

An occupational license is a government-issued stamp of approval to work in certain regulated fields. One in five workers in Tennessee is required to hold an occupational license to do their jobs. The state issues more than 166 licenses, including licenses for many entrepreneurial occupations, like barber, cosmetologist, athletic trainer, and construction contractor roles. Obtaining an occupational license generally involves fulfilling training and education prerequisites, paying applicable fees, and formally applying to a licensing board for evaluation.

Beyond burdensome fees and training requirements, state laws and regulations often make it particularly difficult or even impossible for individuals with criminal records to obtain occupational licenses. There is some research evidence that occupational licensing restrictions may lead to higher rates of property crime and reoffending by closing off work opportunities for former offenders.

In 2018, Tennessee passed the Fresh Start Act to address many of the common obstacles faced by former criminal offenders seeking licensure. The Fresh Start Act prohibits licensing boards from denying a license application based solely on a prior conviction unless the conviction is directly related to the occupation. The act requires licensing boards to provide written notice and an explanation of their decision before denying an application based on an individual’s criminal history. If an applicant challenges a board’s intent to deny, the board must demonstrate by “a preponderance of the evidence” that the applicant’s record is indeed relevant to the occupation. Additionally, prospective applicants can petition licensing boards to receive a written notice of whether their conviction record is disqualifying before applying. This transparent petition process helps inform prospective applicants before they expend the time, money, and effort to receive any education and training required for licensure.

House Bill 1859 maintains and strengthens the safeguards established by the Fresh Start Act. The new legislation clarifies that boards cannot use vague terms like “good moral character” or “character and fitness” in written denial notices without clearly explaining whether and why a prior conviction is disqualifying. This reform will help ensure that licensing decisions are focused on protecting consumers and that applicants won’t be denied employment opportunities for convictions that aren’t relevant to the goals of occupational licensure. Moreover, clarity regarding the justification for denial empowers applicants to appeal board decisions or take corrective action before reapplying in the future.

Reason Foundation contributed to the success of H.B. 1859 by raising awareness of the issue among lawmakers and providing technical assistance alongside a coalition of criminal justice reform groups and other stakeholders.

The sponsor of House Bill 1859, state Rep. Elaine Davis (R-Knoxville), explained the significance of the bill in a conversation with Reason Foundation: “Providing specific explanations for licensure denials in plain terms allows individuals wanting to pursue a license to determine if there is a viable path forward. In Tennessee, we appreciate those who are working hard to turn their lives around.”

House Bill 1859 builds on the success of Tennessee’s Fresh Start Act by providing greater clarity for occupational licensing applicants who are denied licensure based on their criminal history. Tennessee lawmakers should be applauded for their continued efforts to reduce employment barriers that individuals with prior criminal convictions face.

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