Occupational Licensing Reform in South Carolina and what it could mean for entrepreneurs, lower-wage income earners, and efforts toward Justice Reform.
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Occupational licensing is the process which one must go through to be permitted to perform specific services. The idea behind occupational licensing is to have a mechanism by which the State can “protect the public” by regulating certain types of business and certain industries. If you are interested, SC Code of Laws Section 40 is the section of the SC Code which addresses this process.
There are/have been three Bills in South Carolina related to Occupational Licensing Reform. In May, our Legislature passed, and our Governor signed, House Bill 3605 called the “EARN AND LEARN ACT”. This revision to the Code Section 40 was to go into effect immediately upon signature of the Governor, and it does three things:
This theoretically adds a layer of accountability, but you’ll forgive us if we are skeptical. There are plenty of things in place to hold our government responsible for its actions, yet here we are, week after week, talking about how the government has failed. But, I digress.
As decided by who? There is no specification as to what “certain” prior convictions qualify and which ones disqualify a person. While it may seem this is a step in the right direction toward Criminal Justice Reform, it is never a good idea to leave something so important, without specific parameters, up to Bureaucrats.
The second Bill is Senate Bill 165. This Bill is currently in the Senate, out of committee and pending vote. If passed in the Senate, it will go to the House, then to the Governor. This Bill is very similar to House Bill 3605, but has more emphasis on the denial based on criminal conviction.
This Bill (165) provides stricter parameters for those decisions by clarifying that denial cannot be based on a prior criminal conviction unless it is a conviction related to a crime in that field of business where the individual is seeking licensure. This bill repeals, in its entirety, the previous sections addressing the issue. This Bill also allows for apprenticeship as a qualification standard.
The last, and perhaps the most impactful of the three, is House Bill 3515, also called the “ENTREPRENEUR FREEDOM ACT”. This Bill is in Committee, but my sources say that it is highly likely to die there. Do you wonder why? This Bill (3515) provides for the deregulation of a number of professions requiring licensure:
HAIR BRAIDING PRACTITIONER
EMBALMERS AND FUNERAL DIRECTORS
DIETITIANS
LANDSCAPE ARCHITECTS
PSYCHOLOGISTS
SOCIAL WORKERS
SPEECH PATHOLOGISTS AND AUDIOLOGISTS
PROFESSIONAL COUNSELORS
MARRIAGE AND FAMILY THERAPISTS
LICENSED PSYCHO-EDUCATIONAL SPECIALISTS
GEOLOGISTS
AUCTIONEER
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