Did you know Texas licenses egg brokers, rose graders, and drain cleaners?
This month, the Texas Legislative Council released an exhaustive 299-page report detailing more than 500 regulated occupations and related criminal penalties. The study was conducted pursuant to an interim charge of the House Government Reform Committee on the overcriminalization of occupational licensing.
The report unearths numerous occupations that most Texans probably never thought were regulated. Those who must obtain a government license to practice their trade include florists, vegetable seed sellers, racehorse tattooists, talent agency operators, sports referees, and wig servicers. Who knew that one needed government authorization to tattoo a racehorse or adjust a wig?
However, ignorance is no excuse, as there are 129 pages of penalties – many of which are criminal offenses – for failure to obtain or comply with the terms of an occupational license. The default penalty is a Class A misdemeanor, punishable by up to a year in jail, for violating any occupational rule. Also, there are many occupation-specific felonies, such as delivering grain without proper documentation.
Excessive licensing is problematic for several reasons. First, it expands the scope of criminal law beyond those who harm others and are therefore truly blameworthy. Second, it undermines job growth and drives up prices for consumers by artificially excluding capable service providers. Economist Morris Kleiner has estimated that the deadweight loss to society from occupational licensing is between $34.8 billion and $41.7 billion per year.
Finally, when locksmiths were licensed in 2003, thousands of locksmiths who had perfect professional records were purged due to a prior criminal offense – often a long-ago and unrelated misdemeanor such as drunk driving.
Policymakers should heed this study and focus on improving our state’s economic climate and encouraging competition by rolling back the number of licensed occupations and associated criminal penalties and disqualifications. This is one area where less would be more.
– Marc Levin