Campaign for Liberty supports ending “occupational licensing”

Campaign for Liberty has joined a coalition letter supporting the Alternatives to Licensing that Lower Obstacles to Work (ALLOW) Act (S. 3158). This legislation, introduced by Senator Mike Lee of Utah, limits the use of “occupational licenses” in the District of Columbia and on military bases.

Occupational licenses are one of the worst forms of crony capitalism. They enrich existing business interests while limiting entrepreneurial opportunities for lower-income Americans.

S. 3158 is limited to those in DC and military bases because they are areas where Congress has constitutional jurisdiction. However, passage of the bill will spur efforts at the state and local level to repeal, or at least limit the scope of, these laws.

Campaign for Liberty members who oppose laws that enrich special interests, at the expense of denying economic opportunity to low-income Americans, should call their Senators and ask them to cosponsor S. 3158.

Text of the letter below. For more on occupational licensing see here.

Over 30 Organizations to Congress: Support Occupational Licensing Reform
August 16, 2016

Dear Senators:
On behalf of our groups and organizations representing millions of Americans from across the political spectrum, we urge you to support legislation sponsored by Senators Mike Lee and Ben Sasse that reforms occupational licensing laws, the Alternatives to Licensing that Lower Obstacles to Work (ALLOW) Act. This bill would increase economic opportunity for people living in the District of Columbia and our nation’s military bases.

One of the most significant barriers to earning a living that people face across the country is strict occupational licensing laws. Over the past 50 years the number of professions requiring licenses has risen dramatically, from approximately one in twenty workers to one in four workers. These laws force people to undergo thousands of hours of training and spend hundreds, if not thousands, of dollars obtaining these licenses to work.

These barriers are often too high for people who are beginning their careers or those who are economically disadvantaged.These licenses place disproportionate impact on women, young people, and minorities, threatening their access to good-paying job opportunities. Young people without a college degree face an unemployment rate twice as high if they do not have an occupational license.

Cosmetology licenses in many states prevent African Americans from practicing hair braiding unless they complete hundreds of hours of often unrelated education and incur thousands of dollars of expenses. Additionally, many women returning to workforce often find difficulty obtaining a job without an occupational license.

Support for reforming occupational licensing laws is bipartisan. Even the White House recognizes the damage of excessive occupational licensing. According to a 2015 White House Report, “he current licensing regime in the United States also creates substantial costs, and often the requirements for obtaining a license are not in sync with the skills needed for the  job. There is evidence that licensing requirements raise the price of goods and services, restrict employment opportunities, and make it more difficult for workers to take their skills across State lines.”

The licensing laws in the District of Columbia are especially onerous, and they have contributed to an unemployment rate that is consistently one of the highest in the country. According to the non-partisan Institute for Justice, DC has the 23rd most burdensome licensing laws in the nation. Reforming these laws will improve job opportunities for people living in the District.

Congress should take action to help the residents of the District of Columbia and also provide multiple reform models for the rest of the country. For example, this legislation would also promote reciprocity, by allowing occupational licenses to transfer between military instillations for our brave men and women in uniform and reform and provide a framework for rethinking many unnecessary licenses in DC.

We urge you and your colleagues to support the Alternatives to Licensing that Lower Obstacles to Work (ALLOW) Act sponsored by Senator Lee.
Sincerely,
Americans for Prosperity
60 Plus Association
American Commitment
Americans for Competitive Enterprise
Americans for Constitutional Liberty
Americans for Tax Reform
Campaign For Liberty
Center for Freedom and Prosperity
Center for Nutrition Advocacy
Citizens for Health
Competitive Enterprise Institute
Concerned Veterans for America
Freedom Partners
FreedomWorks
Generation Opportunity
Heritage Action for America
Hispanic Leadership Fund
Independent Women’s Forum
Independent Women’s Voice
Institute for Justice
Institute for Liberty
Jeffersonian Project
Less Government
Maryland University of Integrative Health
National Center for Public Policy Research
National Taxpayers Union
Our America Initiative
Secure America’s Future Economy
Taxpayers Protection Alliance
Tea Party Nation
The LIBRE Initiative
The Weyrich Lunch