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The Benefits of Universal Licensing Reciprocity

Universal licensing reciprocity (sometimes called universal recognition) means … legally validate the occupational licenses earned by people in other states. … who move to Michigan with a valid license from another part of our country … business. This policy brief explains how licensing reciprocity currently works in Michigan …

Let’s Get to Work

How to fix Michigan’s licensing laws

Occupational licensing is when the government requires people to complete educational and training programs, … typically determine the requirements. Occupational licenses are meant to protect the public from people unfit … research finds little evidence that occupational licensing laws improve the quality of services or public …

Occupational licensing

Occupational licensing is a potential factor affecting employment and migration, … occupations with state-specific licensing exam requirements is 36 percent … authors estimate that occupational licensing requirements have significantly … Statistics found that occupational licensing had no impact on net migration patterns, …

Occupational licensing in Michigan

… people in Michigan have active licenses that are overseen by the Bureau of Professional Licensing.[16] This represents 17% … the state's occupational licenses, there are dozens more that … employees, some of whom need licenses or certifications.[18] Altogether, including some licenses required of businesses, Michigan …

Licensing and Criminal Justice

… eligible for an occupational license. According to state law, good … good moral character as a licensing standard or a deportation … give helpful guidance to license applicants and license holders. They argue that the … professional or occupational license.[60] In Michigan, many occupations …

Occupational Licensing Reform Efforts

… reforms to occupational licensing. Historically, the removal of occupational licensing laws has rarely occurred. … removal of occupational licensing laws in the last 40 years.[18] … comprehensive occupational licensing reform.[19] Interestingly, … effects of occupational licensing.[*] As states begin to implement …

Introduction to Occupational Licensing

What is Licensing? Occupational licensing is the requirement that a … certain jobs. Obtaining such a license typically requires aspiring … from being eligible for a license. In most states, this is enforced through a requirement that license applicants exhibit “good moral …

Licensing at the Local Level: Detroit

… pre-emption law when it comes to licensing, which means that municipalities … cities create few occupational licenses, but Detroit is a major exception. … a significant number of licensing requirements on people trying … legally in the city. Detroit licenses approximately 60 occupations. … half of the occupational licenses Detroit requires are for …

Alternatives to Occupational Licensing

Subjecting all current licensing requirements to this type of … removing a significant number of licenses in Michigan. But repealing a license does not necessarily mean … alternatives to mandatory licensing. Michigan could, for instance, … discussion of repealing a license, there are many options available …

Victims of licensing laws

Occupational licensing laws harm people in subtle ways that … directly harmed by state licensing laws. Here are some examples. … she needed a cosmetology license even though this license is not required to braid hair. … shampooing hair. Getting the license requires 1,500 hours of training, …

Theory and Evidence on the Effects of Occupational Licensing

… effects should occupational licensing have in the marketplace? … theories on how occupational licensing should affect workers and … hypothesized that occupational licensing imposes a barrier to entry … education and take tests, licensing makes it more expensive for … effects of occupational licensing are unambiguously negative …

Occupational Licensing Requirements Unique to Michigan

… licensure, Michigan has many licensing requirements that are considerably … where Michigan mandates a license when a majority of states … occupations that the state licenses — and highlighted in the … following table lists these licenses and the number of states … Michigan, that require a similar license. Graphic 2: Licenses Michigan …

How to Analyze Occupational Licensing Laws

A Model Review Process

… regularly reviewing occupational licensing laws. These laws can create needless … for consumers. To determine which licenses are helpful and which ones are not, … explains how to analyze occupational licensing laws and provides four examples of reviewed licenses.

Why states create licensing laws

… it comes to occupational licensing mandates, however, the regulated … would-be competitors to get a license before operating legally. … supportive of occupational licensing. Efforts to scale back these … change. As a result, reforming licensing laws remains of little importance … create regulations, such as licensing requirements. These laws …

Recognize licenses obtained in other states

… supply of medical professionals is the state’s licensing regime, which makes it needlessly more difficult … Michigan. Universal reciprocity of all occupational licenses, certifications and training would help. If the state would automatically recognize licenses approved by other states, businesses could hire …

What Academic Research Says About the Effects of Licensing

The research on state licensing laws is robust and has been … associated with occupational licensing. Licensing an occupation restricts the … consumers. Research suggests that licensing increases wages for licensed … restrictive the occupational licensing requirements are.[3] Some …

Annually review state licenses and repeal unnecessary ones

… are about 180 occupational licenses on Michigan’s books. Many … newly proposed occupational licenses, while a sunset process would … 2012 analyzed occupational licensing and called for eliminating licenses covering two dozen jobs. … when determining whether a license was necessary and effective.[76] …

Appendix A: Model Legislation — Occupational Licensing Reform Act

… certification,[**] specialty occupational license for medical reimbursement,[††] and occupational license. Subd. 5. Occupational license. “Occupational license” is a nontransferable authorization … an occupation for which a license is required, it is illegal …

Cutting the Competition?: The Effects of Licensing Barbers in Alabama

… Alabama’s reintroduction of barbering licensing requirements on the receipts and … analysis show that after barber licensing was introduced in Alabama, barber … the state. In other words, barber licensing requirements appear to have limited … economic theory that occupational licensing restricts competition and harms …

Appendix B: Full List of Michigan Licenses

Click here for the full list of Michigan licensing fees.

This Isn’t Working: How Michigan’s Licensing Laws Hurt Workers and Consumers

… gathers data on every occupational license in Michigan. It describes the impact … this issue. It explains how and why licensing requirements are typically created, … fundamental problems with a broad licensing regime. Finally, it compares Michigan’s licensing requirements to those of other states …

Review restrictions that block people with criminal records from getting a license

Nearly one million jobs in Michigan require a license or certification, and most of these jobs were … people with a criminal background from obtaining a license, and only prohibit a license for people who committed serious crimes that are …

Recommendations for Reforms

… and the arbitrariness of licensing laws, Michigan should take … review all of its current licensing requirements and establish … creating an occupational license. For all current licensing requirements, the state should … associated with managing these licensing requirements. If a license …

Summary of national research

… evidence that occupational licensing laws improve the quality … The evidence suggests that licensing laws persist primarily because … their income and profit. Licensing requirements also present … the economic effects of licensing at the national and state … misallocated resources.[4] Licensing laws do not appear to produce …

Analytic Framework for Reviewing Occupational Regulation 4

… over the years? Does the licensing law appear to be enforced? … rarely or never enforces the licensing requirement suggests that … fewer people are getting new licenses, this may reflect decreasing … be found from the state licensing agency — the Michigan Department of Licensing and Regulatory Affairs, or …

Reforms in Michigan

… higan passed a series of licensing reforms over the past decade. The state repealed eight license or registration requirements … allowing barbers to meet their licensing hours through an apprenticeship and recognizing the licenses of dental therapists earned … mandating their own occupational licenses. Specifically, no city, township, …

Endnotes

… Data on Certifications and Licenses” (Bureau of Labor Statistics, … https://perma.cc/DA8N-ETFL. “Occupational Licensing: A Framework for Policymakers” … M. Carpenter II et al., “License to Work: A National Study … Burdens from Occupational Licensing” (Institute for Justice, … Working: How Michigan’s Licensing Laws Hurt Workers and Consumers” …

Introduction and Summary of Results

… held an active occupational license.[1] To obtain a license, workers are typically required … comprehensive report on licensing requirements in the state … measuring the impact that licensing has on the economy and consumers … outcomes from a period when licenses were required to a period …

Public Health and Safety

… benefits from occupational licensing laws. The number of studies … and safety effects from licensing are very rare. In fact, licensing experts could only point … which has found evidence of licensing requirements leading to an … safety when it comes to state licensing laws.[13] And even in the …

Arbitrary regulations

… suggests that occupational licensing rules are established for … for example, one needs a license to lay wood or tile floors … carpet flooring. You need a license to construct a concrete driveway … Roofing a house requires a license but not erecting awnings under the roof. You need a license to knock down a house, but …

How Michigan Compares to Other States

Michigan’s licensing burden is generally seen as about average … states. Michigan required licenses for 42 of the 102 “moderate-income” … Wyoming required the fewest licenses with 24 and Louisiana had … factoring in the number of licenses required in a state and the … and training required for licenses, IJ ranked Michigan 21st …

Current Legislation in Michigan

… eliminated seven occupational licenses and rolled back regulations … he would only support new licensing rules that protect public … process of occupational licensing requirements and remove automatic … backgrounds from obtaining licenses. Interest groups supporting … the state from denying a license to someone based solely on …

Introduction

… about the impact that these licenses have on workers. Far more … unions than occupational licensing. But, in Michigan, less than … are required to obtain a license in order to work legally.[2] … argue that occupational licensing laws have a larger effect … were required to obtain a license in order to work. Today, nearly …

Additional Reforms

… its rules regarding the licensing of ex-offenders. Unless a person is trying to get a license for a job directly related … their way. Finally, local licensing regimes are in need of reform … restriction. If the state licenses the occupation, local municipalities … from creating their own licensing requirement for that job. …

The Rise of Occupational Licensure Laws

… states’ use of occupational licensing regulations casts doubts … reducing or eliminating licensing requirements. Another one … “inherent defects in the licensing systems:” The licensing laws are urged by associations … association majority status on the licensing board. The examinations and …

Public health and safety effects

… the effect occupational licensing has on public health or safety. … administration reported: “Stricter licensing was associated with quality … also evidence that many licensing boards are not diligent in … quality improvement under licensing.”[9] If licensing fails to show clear benefits …

Example: Painters

… March 2019, an occupational license for “painting and decorating” … “maintenance and alteration” license.[19] The law specified the … supplemental” work without needing a license, and that the regulation does … a painting and decorating license in Michigan, as of May 2017.[21] The number of new licenses per year wavered between …

Endnotes

… Influence of Occupational Licensing on the Labor Market,” Journal … Influence of Occupational Licensing on the Labor Market,” Journal … and Boilerplate Summary: Licensing and Regulatory Affairs” (Michigan … Karen Greene, “Occupational Licensing and the Supply of Nonprofessional … “Reforming Occupational Licensing Policies” (Brookings Institution, …

Example: Roofers

… requires an occupational license for individuals who want to … and alteration contractor” license.[*] The law specifies the … supplemental” work without needing a license and that the licensing requirement does not apply … the Michigan Department of Licensing and Regulatory Affairs, there …

Legislation in Other States

… “sunset” provisions attached to licensing laws, which trigger a periodic … assessments of their current licensing laws. In the past few years, … Louisiana each initiated a licensing review process.[16] The new … speaking, actively supervise licensing boards and promote competition … occupations. Going forward, licensing boards in those states must …

Conclusion

… safely. Policymakers or state licensing departments, however, only … reasons to suspect that licensing requirements do not per se … states do not require this license.[78] Unmentioned too was the research that suggests licensing funeral homes needlessly … paid their fees. But the licensing requirement and the state’s …

Economic Impacts

Occupational licensing is costly. Dr. Morris Kleiner of the … leading expert on occupational licensing laws, has found little evidence … literature suggests that licensing has had an important influence … analysis for all proposed licenses as well as for those already … proposals and repeal existing licenses and associated rules that …

Introduction

Occupational licensing is when the government requires people … requirements. Occupational licenses are meant to protect the … services. Proponents of licensing believe that requiring people … quality. But lawmakers and licensing agencies rarely consider … and for consumers. State licensing requirements restrict who …

Arbitrary Licensure Laws

Different licensing requirements in states and across occupations … strategically implemented. If these licenses really did provide a benefit … themselves is that these licensing laws are created arbitrarily. … creation of occupational licenses is not lawmakers’ interest … stand to benefit from these licensing requirements — namely, people …

Inconsistencies in Michigan

… the Michigan has chosen to license certain occupations. For instance, … disparities between the licensing requirements for workers … seemingly arbitrary way. Licensing standards can vary greatly … Michigan that requires a license and similar construction-related work that does not require a license. Graphic 1: Licensing Disparities …

Endnotes

… “Michigan’s Occupational Licensing Requirements” (Mackinac Center … https://perma.cc/ZTH4-BP79. 2 “Occupational Licensing: A Framework for Policymakers” … Acosta Addresses Occupational Licensing Reform” (U.S. Department … al., “Relaxing Occupational Licensing Requirements: Analyzing Wages … Growth How Occupational Licensing Matters for Wages and Careers” …

Conclusion

… the introduction of barber licensing requirements in Alabama has … the introduction of barber licensing in Alabama is associated … after the adoption of barber licensing. These results are supportive … the economic theory that licensing primarily has negative supply-side … benefits of occupational licensing, this case study of barbering …

Endnotes

… influence of occupational licensing and regulation” (IZA World … Analysis of Occupational Licensing in U.S. States” (National … https://perma.cc/VLG2-LH7C; “Occupational Licensing: A Framework For Policymakers” … Kleiner, “Is Occupational Licensing a Barrier to Interstate Migration” … Economic Costs of Occupational Licensing” (Institute for Justice, …

Recent Reforms in Michigan

… established an occupational licensing advisory rules committee. … Michigan’s occupational licensing regime.[51] In February … calling for reforms to state licensing laws. It suggested changes … other things, on whether a license protected consumers from harm, … requirements and reviewing licensing boards on “necessity, authority …