While I agree with you, this creates another level of state, county, or municiple bureaucracy that must be paid for by tax dollars. Or it places the duty into the hands of an existing bureaucracy.
Which is part of the reason I tend to oppose licensing or regulation of people or businesses unless it serves a well-defined public need.
The two examples I've been able to find so far show examples of both. The registration required in NH seems to be aimed at protecting the consumer from shady operators that play silly buggers with contracts. The Connecticut law seems more concerned with public safety.
In either case, you'll have licensing standards being made by people who really don't have the qualifications to do so. What criteria would you use?
Is the building licensed?
Is the owner licensed?
Do the individual instructors need to be licensed?
If yes to that last one, then
Is it merely license saying that the state is aware that you're teaching some sort of MA or...
Would a class be required, along with a requisite test (like the driver's license).
Is there a minimum age?
Is there a maximum age?
Would only certain arts be recognized?
That last question would be my biggest concern.
Typically, such licensing is not undertaken without public input, and often, with the assistance and guidance of advisory boards made up of professionals from the community of professionals to be licensed.
One benefit that a license gives is this - regardless of what the basis for licensing might be - if a license is required to operate, then there is a legal way to shut down dangerous or unethical operators, based on a license review board.
Others have mentioned in this thread that the 'bad guys' are well-known or soon makes themselves known. True - and most of us know of the McDojo's and belt factories, etc. Some of us have even heard horror stories of instructors who like the young ladies in the class a bit too much, etc. It happens. It's great that they are identified - BUT THEN WHAT?
Without licensing, if no crime has been committed, it may be next to impossible to get such a business shut down.
Again, my first criteria for deciding whether I am in favor of government intervention in any aspect of my life is whether or not there is a problem that needs fixing. My second question is whether or not the proposed solution can fix the problem if there is one. If the answer to either one is 'no', then I'm not in favor of licensing. If the answer is 'yes', then I suspect ways can be found that are not unfair to the martial arts community and yet which protect the public interest. We've been doing it for years - without breaking the public budget or unfairly limiting business, with a variety of professions. It can be done - the only question is should it be done - in my opinion.