EDITORIAL: Follow Florida’s lead on licensing reform
Nevada’s bruised and battered economy is going to need all the help it can get. That’s why lawmakers should emulate the licensing reforms Florida passed recently.
There may be no other state whose economy is more upended by the coronavirus. Nevada and especially Clark County rely heavily on tourists and conventions to power our economy. While Las Vegas remains the world’s premier destination for business or pleasure, it’s going to take time for travel to reach its previous peaks.
That means there are going to be many Nevadans looking for work or trying to start their own business. In many cases, unfortunately, they’re going to face a new obstacle — occupational licensing. Before you run a child care facility or work as a landscape contractor, you have to get a license. According to a 2017 study by the nonpartisan Institute for Justice, Nevada had the second-most burdensome licensing laws in the country. The Silver State was also the second-“most broadly and onerously licensed state.”
Hardly something to brag about.
These aren’t just requirements to become a heart surgeon or lawyer, either. Of the 102 lower-income occupations evaluated by the institute, Nevada required a license in 75 of them.
In many cases, the hoops you have to jump through are plainly absurd. Nevada requires four years of experience to be a landscape or painting contractor. On average, it cost $700 in fees and required 860 calendar days of experience or education to receive a license in those 75 professions. Not exactly helpful for someone who lost their job in April and needs to pay the mortgage next month.
That’s precisely the point of these requirements. They aren’t mainly about public safety, but limiting competition. These barriers to entry raise the wages of those already in the system by reducing their competition. If the supply of child care facilities is low, those who have their license can charge more money.
Last month, Florida showed that there is a better way. Florida Gov. Ron DeSantis signed a major overhaul of the state’s licensing laws. The institute said it repealed “more occupational licensing laws than any licensing reform ever passed by any other state.” The bill repealed or reformed over 30 licenses, including barbers, makeup artists, hair braiders and landscape architects. It also included a provision protecting food trucks.
There are rumblings that a second special session is likely to occur soon. If Gov. Steve Sisolak does call one, he should make licensing reform a priority. Those out of a job, especially in lower-income professions, shouldn’t need the government’s permission to work.