FEDERALhearing transcript

Congressional Hearing on Occupational Licensing and Small Business

Original title: OCCUPATIONAL HAZARDS: HOW EXCESSIVE LICENSING HURTS SMALL BUSINESS

January 1, 2018

small business occupational licensing labor market economic regulation workforce development

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The Frame

What this does

The hearing explores whether current state-level professional licensing requirements create barriers to entry for workers and increase costs for small businesses, potentially affecting job mobility and consumer prices.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Small business owners

They must navigate varying state licensing requirements to operate their businesses and hire employees.

Workers

They must meet specific state-mandated training, fee, and education requirements to legally practice certain occupations.

What changed

Last recorded activity January 1, 2018.

What's next

Next step not available in the current record.

Summary

The House Subcommittee on Economic Growth, Tax, and Capital Access held a hearing to examine how state-level requirements impact small businesses and the labor market. Lawmakers and witnesses discussed the growth of licensing requirements and the potential economic effects of inconsistent regulations across state lines.

Key Facts

Occupational licensing requires individuals to obtain government permission to practice certain professions.
The percentage of the U.S. workforce requiring an occupational license has grown from less than 5% in the 1950s to nearly 33% today.
There are approximately 1,100 occupations in the U.S. that are licensed in at least one state.
Only 60 occupations require a license in all 50 states.
Licensing requirements vary significantly by state; for example, auctioneer licensing ranges from a $52 fee with no training in Missouri to a $650 fee and 756 days of training in Tennessee.
The hearing was held on February 27, 2018, in the Rayburn House Office Building.

Frequently Asked Questions

What is occupational licensing?

It is a process where the government requires a worker to meet specific standards or obtain permission before they are legally allowed to perform a job.

Why is Congress looking at this issue?

The Subcommittee is examining whether these regulations increase consumer prices, contribute to job vacancies, and create unnecessary barriers for small businesses.

Why It Matters

News Coverage

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Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Growth of Licensing

The document highlights a significant long-term trend of increasing occupational licensing from 5% to 33% of the workforce over 60 years.

Committee on Small Business

Connected Entities

personDwight Evans“Ranking Member of the Subcommittee”Map →

personFrank Zona“Owner of Zona Salons”Map →

personDave Brat“Chairman of the Subcommittee on Economic Growth, Tax, and Capital Access”Map →

organizationCommittee on Small Business“House of Representatives committee hosting the hearing”Map →

personKeith Hall“CEO of the National Association for the Self-Employed”Map →

personMorris Kleiner“Professor at the University of Minnesota”Map →

personC. Jarrett Dieterle“Senior Fellow at the R Street Institute”Map →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100

Significance65
How much this matters to a regular citizen
Controversy40
Intensity of disagreement among stakeholders
Entertainment10
Compellingness for a non-policy-wonk reader
Buzz15
Current news / social attention level

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