New report ranks Alabama 47th most burdensome occupational licensing laws

hair cut

According to a new state-by-state study by the Institute for Justice Alabama ranks among the most burdensome states in the country when it comes to occupational licensing. In the new report, License to Work: A National Study of Burdens from Occupational Licensing, Alabama ranked as the 47th most burdensome state. The state licenses more lower-income occupations than average—63 of the 102 occupations included in the study require licensing. In fact, the state requires workers in over 140 fields to have licenses to practice. From doctors and beauticians to bartenders and locksmiths. What’s an occupational license? Simply put, an “occupational license” is express industry board/government permission to work in a chosen field. To earn the necessary license, an aspiring worker may have to anything from simply registering with the state board, all the way to examinations, or even hundreds of hours of classroom or practical experience. Nominally, the licenses exist to protect consumers from any harm that could be caused by an unqualified worker. “Licensing laws force people to spend a lot of time and money earning a license instead of earning a living,” said Dick Carpenter, an Institute for Justice director of strategic research and co-author of the report. “They create roadblocks for workers hoping to break into new occupations, change careers or build new businesses.” According to the report, these roadblocks are rife with inconsistencies and irrationalities that often undermine the case for licensing. For example, most of the 102 occupations are unlicensed somewhere, suggesting they can be safely practiced without a state license. And licensing barriers often make little sense: In most states, it takes 12 times longer to get a license to cut hair as a cosmetologist than to get a license to administer life-saving care as an emergency medical technician. “Research provides scant evidence that licensing does what it is supposed to do—raise the quality of services and protect consumers,” said Lisa Knepper, an Institute for Justice director of strategic research and co-author of the report. “Instead, it limits competition, leading to higher prices and reduced access to jobs.” How Alabama compares to the rest of the country Many of the required license requirements in Alabama don’t add up. For example, the state imposes burdens on some occupations that seem excessive compared to those for other occupations that may present greater risks to the public. Take an auctioneer in Alabama. The profession requires $500 in licensing fees and 385 days of education and experience (comprising an 85-hour course and a one-year apprenticeship). Meanwhile, an EMT needs only pay $90 and complete approximately 42 days (180 hours) of education to become licensed. According to the report: Alabama licenses 63 of the 102 lower-income occupations studied. On average, breaking into these occupations takes $329 in fees, 142 days of education and experience, and about one exam, making Alabama’s licensing laws the 47th most burdensome out of all 50 states and the District of Columbia. Considering both the number of licensed occupations and the difficulty of their requirements, Alabama ranks as the 25th most widely and onerously licensed state. What Alabama could do to improve its ranking “To expand opportunity for workers in the state, Alabama should reduce or repeal irrational licensing burdens, or—if government regulation is necessary—replace them with less restrictive regulatory alternatives,” said the Institute for Justice in the report released Tuesday.    

Occupational licensing runs amok in Alabama

red tape economy jobs

Want to professionally wash hair in Alabama? You’re going to need a occupational license. Want to be a massage therapist? You’ll need a license for that  too. A bartender? An interior designer? A locksmith? An architect? You get the idea, you’re going to need a license for those jobs as well. Simply put, an “occupational license” is express industry board/government permission to work in a chosen field. To earn the necessary license, an aspiring worker may have to anything from simply registering with the state board, all the way to examinations, or even hundreds of hours of classroom or practical experience. In 1950, roughly one in twenty Americans worked in a job that required a state-approved license or certification. Today, it is at least one in four — a whopping 500 percent increase. In Alabama, more than 140 different occupations require occupational licenses. Meaning over a fourth of the state’s workforce is affected by licensing restrictions. This form of regulation has quickly become one of the most significant and restrictive factors affecting labor markets across the Yellowhammer State. In 2015, the Institute for Justice completed a national study titled License to Work national study, ranked Alabama as being the 24th most extensively and onerously licensed state. Part of the reason for Alabama’s ranking is that the state regulates many professions that aren’t widely licensed elsewhere in the country. For example, Alabama has licensing requirements for auctioneers, tree trimmers, locksmiths, salon hair shampooers, massage therapists, and sign language interpreters, among many other jobs. Here’s what the study found of occupational licenses in Alabama: Number of low-income occupations licensed: 47 Percentage of 102 low-income occupations licensed: 46% Average fees: $328  (which is only exceeded by four states) Average education and experience (in days): 182 days Currently, occupational licensing is carried out at the state level, leaving the state Legislature to decide what occupations to license, as well as the extent of the licensing requirements. While the licenses are intended is “to ensure quality and reputability in specified professions by restricting unqualified or unscrupulous personnel from practicing,” research suggests all of these regulations and red tape are accomplishing little more than creating unnecessary barriers for those who want to work. In our nation’s capital lawmakers have begun to tackle the tackle the issue and are working “to identify and eliminate excessive occupational licensure.” In April, Michigan-Republican U.S. Rep. Tim Walberg introduced the New HOPE Act, to allow governors to use existing federal funds for technical education and do just that. And he’s not alone. Texas-Republican U.S. Sen. John Cornyn has introduced similar legislation in the Senate. “The data has shown that simply adding layers of licensing rules does not yield better safety outcomes in most fields. It’s also important to note that there are other ways to promote safety for workers and the public,” Walberg explained to Forbes. “Through inspections or insurance and registration requirements, states can protect consumers without full licenses. Where licensing laws have become too excessive, it’s time for state policymakers to roll them back to create greater opportunity for aspiring workers and entrepreneurs.” Here’s a look at 47 of moderate-income occupations licensed in Alabama:

Federal lawsuit challenges Alabama requirement for ethics training before lobbying public officials

Can the state of Alabama require an ethics law class before exercising First Amendment rights? According to the Alabama Ethics Commission, it can and does. Virginia-based public interest law firm Institute for Justice filed a new federal lawsuit on behalf of Maggie Ellinger-Locke and the Marijuana Policy Project (MPP). At issue is an Alabama law requiring all registered lobbyists to attend an ethics class offered only four times a year and in only one place – Montgomery. Founded in 1995, MPP is the largest organization in the U.S. focused on ending the prohibition on marijuana. According to the group’s website: “MPP’s mission is to change federal law to allow states to determine their own marijuana policies without federal interference, as well as to regulate marijuana like alcohol in all 50 states, D.C., and the five territories.” Part of Ellinger-Locke’s job, says IJ Senior Attorney Paul Sherman in a recent op-ed, is to talk with legislators and government officials in nearly a dozen states on ways to make marijuana policy “more just, sensible and humane.” “Unfortunately for her,” Sherman writes, “all lobbyists in Alabama are required to take an in-person ethics class.” The problem is, Ellinger-Locke lives in Arlington, Virginia and works at the MPP headquarters in Washington DC. Sherman also points out that mayors, city and county council members, as well as members of local boards of education, are each required to take similar training – a program that could easily be offered online. Nevertheless, Sherman adds that such a requirement is not only bad public policy but also unconstitutional. That is why IJ filed a First Amendment challenge in federal court. “If a person wants to talk to an elected official about a matter of public policy,” Sherman concludes, “they shouldn’t have to take a government-mandated class. Instead, the only thing they should need is an opinion.” Sherman and MPP Director of State Policies Karen O’Keefe will be available to discuss the case and answer questions on the case through IJ’s conference line – 800-326-6981 (Password: 415681) – beginning 9:30 a.m. CST (10:30 EST) Wednesday.

Eco-friendly cemetery haunted by Alabama funeral directors, law

casket coffin

When Sheila Champion founded The Good Earth Burial Ground in Madison County she did not expect the type of legal backlash to come. The business is designed to create a “green” burial space for families wanting to provide their loved ones with an all-natural burial. However, Alabama law only allows licensed funeral directors to sell caskets, urns or shrouds, which are often made of material that is not conducive to a “green” burial. For her part, Champion wants to design these types of items to allow a body to decompose naturally and fertilize the Earth as it does so. On Tuesday, Champion and lawyers from the Institute for Justice (IJ) filed a lawsuit demanding that anyone be able to manufacture and sell caskets, urns and shrouds. A failure to do so only allows Champion to act as a counselor and provide a “green” cemetery space – the grounds of which won’t allow the mass-manufactured caskets commonly used. The IJ has filed lawsuits of this nature all across the country, most recently in Louisiana when monks for Saint Joseph’s Abby sought the right to sell their own caskets – they won. “I feel I should have the right to sell caskets, urns and shrouds,” Champion said. “There’s no reason that only licensed Alabama funeral directors should have that right. It’s just ridiculous.” Champion also lambasted an Alabama law that requires families to hire a licensed funeral director to be involved in a home memorial, thereby hiking the cost even further. “Families should have the right to have a memorial for their loved ones in their home,” Champion said. “People just don’t pay attention to the stupid laws that get passed.” Champion’s attorneys have alleged that the laws are a ploy to funnel money into the pockets of funeral directors. “A casket is just a box and the law does not even require one for burial,” said IJ Attorney Renée Flaherty, who is representing Champion. “There is no legitimate health or safety reason to license casket sellers.” According to Champion’s website, the cost for a standard funeral is staggering, both financially and environmentally. Champion’s dream is to design bio-degradable funeral merchandise for the natural decomposition of a body and lower the expense levied upon grieving families. “Four out of five federal courts that have ruled on this issue have struck down restrictions on casket sales as unconstitutional,” IJ Senior Attorney Jeff Rowes said in a press release. “More broadly, there is disagreement among the federal courts over whether the government can restrict economic liberty just to protect favored industries from competition, and Shelia’s case may be the one that goes all the way to the U.S. Supreme Court to resolve that conflict.”