Bill would limit professional credentialing

Nebraska cities and counties would be prohibited from requiring a person to be credentialed to conduct business within their jurisdictions under a bill heard Jan. 30 by the Government, Military and Veterans Affairs Committee.

LB108, introduced by Wilber Sen. Russ Karpisek, would prohibit cities and counties from requiring a license, certificate, registration, permit or any other approval required by the state to engage in a specific profession or occupation.

The bill specifies that a credential does not include any general requirement of a business, such as a sales and use tax collection permit.

Karpisek said the bill’s provisions would not apply to plumbers or air conditioning/air distribution contractors because they currently are required by state law to have certain local credentialing.

Many general contractors who do business in the Omaha metropolitan area work in a number of Douglas and Sarpy County communities, Karpisek said. If the current trend of cities requiring credentials expands, he said, companies could need separate, expensive permits from up to 10 different cities.

Karpisek said the bill’s intent is to remove a “layer of cumbersome bureaucracy” that is a burden for many small business owners in Nebraska. He said the fees cities charge are his main concern.

“I think it’s not so much about public safety as it is a revenue stream,” he said.

Metro Omaha Property Owners Association president John Chatelain, representing the Statewide Property Owners Association, testified in support of the bill.

Chatelain said both Omaha and Bellevue require contractors to pay a licensing fee of several hundred dollars, take an exam, engage in continuing education and be recertified every few years. These requirements simply are a way for cities to raise revenue, he said.

“Taking a licensing exam has nothing to do with the quality of the work,” he said.

Kathy Siefken, executive director of the Nebraska Grocery Industry Association, also testified in support. Having city-level certification creates difficulties for those who do business in more than one municipality, she said.

If regulation is needed, she said, it should be done at the state level to provide consistency across the state.

Jay Davis, assistant planning director for the city of Omaha, testified in opposition to the bill. Inspections have indicated improvements in the quality of contractor’s work since the city’s licensing program began, he said.

The goal of the licensing is improved public safety, he said. “We don’t use it for a money grab.”

Dennis Van Moorleghem, board member of the Omaha Metro Builders Association, also opposed the bill. He acknowledged that city credentialing can be a burden for small businesses, but said standards that encourage quality work are worth imposing the $300 licensing fee.

“Nobody likes to [pay] it,” Van Moorleghem said, “but it’s a balancing act.”

The committee took no immediate action on the bill.