House Hearing Explores Occupational Licensing

The U.S. House Subcommittee on Higher Education and Workforce Development last week heard testimony on the value of occupational licensing, and concurred overall that it is up to states to determine whether certain professions are over-regulated, reports Associations Now . "Occupational licensing plays an important role in protecting consumers and ensuring high-quality service," said Rep. Brett Guthrie (R-Ky.). "In many cases, it makes sense that a professional would be credentialed to operate, like in the case of a doctor performing surgery or a pilot flying a commercial plane. But in other instances, the need for a license is more of a stretch." Meanwhile, Albert Downs with the National Conference of State Legislatures noted the U.S. population of licensed professionals has swelled to one in four workers. "Research suggests that, in some cases, licensing can benefit the public by limiting the risk of public health and safety hazards arising from the incompetent practice of a given occupation or profession," he said. "In many more cases, the risk of harm to public health and safety is not well established, and research shows that consumer welfare is unchanged, or sometimes reduced, by licensing regulations." Institute for Justice attorney Robert McNamara stated that voluntary certification is "one of the most important, and often overlooked, alternatives to occupational licensing." Associations have this year raised issues with licensing reform legislation in Louisiana and Missouri, with bill authors in both states concerned with over-regulation of different occupations. However, critics that include the American Society of Association Executives claimed the bills overreached into nongovernmental professional certifications.