John Palatiello NSPS Government Affairs Consultant October 2, 2017 The Campaign Against Occupational Licensing John Palatiello NSPS Government Affairs Consultant October 2, 2017

Expansion of Licensing

Expansion of Licensing U.S. workforce subject to licensing has risen from 5% in 1950s to almost 30% today by some estimates Limit competition, entrepreneurship Barrier to new market entry Disproportionately restricts employment among lower income and minority workers Portability of licenses between states is a particularly problem for military spouses who are often relocated Many licenses have no benefit to public health, welfare and safety

Expansion of Licensing Is all licensing necessary? painting contractor, florist, cosmetologist, hair-braider, tour guide Virginia – boxing promoters … 4 Louisiana - only licensed undertakers could sell caskets to the public, until overturned by a court

Proponent of Reform Koch Brothers, Americans for Prosperity American Legislative Exchange Council Institute for Justice Obama Administration

Key Activities ALEC Model Law, July 2012 House Small Business Committee hearing, March 2014 COFPAES Letter on Value of A/E Licensing North Carolina State Board of Dental Examiners v. Federal Trade Commission, February 2015 White House paper, July 2015 Senate Judiciary Committee hearing, February 2016 S. 1649 (Sen. Lee R-UT) and H.R. 3446 (Rep. Issa R-CA) FTC Roundtable on Licensing, July 2017 Lee amendment to National Defense Authorization Act for FY 2018 House Judiciary Committee hearing, September 2017

Texas Supreme Court Patel v. Texas Department of Licensing and Regulation Re: eyebrow threaders , June 2015 "The requirement of 750 hours of training to become licensed is not just unreasonable or harsh [it is] so burdensome as to be oppressive."

Senate Appropriations Department of Labor, FY 2017 Occupational Licensing Portability Initiative – $8.5 million to support the continuation of a new effort to establish a consortium (or multiple consortia) of states to analyze and develop frameworks for reciprocity or other forms of portability for certain occupational licenses.  This will help reduce unnecessary barriers to mobility and re-employment for thousands of dislocated workers, transitioning service-members, military spouses, and others.

Suggested Action Keep an eye on state legislatures Coordinate with state surveying society Distinguish surveying from frivolous, ludicrous licensing schemes Use arguments from sunset review Make case for protection of public health, safety and welfare

Further Information https://www.alec.org/article/artificial-barriers-occupational-licensing/ http://smallbusiness.house.gov/calendar/eventsingle.aspx?EventID=369299 http://www.judiciary.senate.gov/meetings/license-to-compete-occupational-licensing-and-the-state-action-doctrine https://www.whitehouse.gov/sites/default/files/docs/licensing_report_final_nonembargo.pdf https://www.ij.org/images/pdf_folder/economic_liberty/occupational_licensing/licensetowork.pdf https://www.supremecourt.gov/opinions/14pdf/13-534_19m2.pdf

Further Information https://www.alec.org/model-policy/the-occupational-licensing-relief-and-job-creation-act/ http://ij.org/report/license-to-work/ http://www.txcourts.gov/media/1008501/120657.pdf http://www.cofpaes.org/documents/COFPAES_Letter-Chairman%20Graves-Licensing-09092014.pdf

John Palatiello, NSPS Government Affairs Consultant President, John M. Palatiello & Associates, Inc. 1856 Old Reston Avenue, Suite 205 Reston, VA 20190 (703) 787-6665 www.jmpa.us john@jmpa.us