Minnesota Economic Liberty

Creating a Statutory Right to an Occupation

	Entrepreneur Jim Dolphy (at podium), is a tree trimmer from Inver Grove Heights, Minnesota, was shut down by the City of Minneapolis.  He'd like only to work without excessive regulations.

During tough economic times, the government should encourage job creation, not stifle it with unnecessary regulations. But in Minnesota entrepreneurs are often forced to get permission from the government before they can go into business or hire new employees.

During the 2012 legislative session, Governor Mark Dayton and the Minnesota Legislature have a historic opportunity to pass comprehensive reforms of the state’s needlessly restrictive occupational regulations. Such laws create barriers to entry, decrease the number of jobs and restrict consumer choices without providing real consumer protection.

The bipartisan-sponsored Licensing Relief and Job Creation Act (LRJCA) (SF 1629/HF 2002), authored by Senator Chris Gerlach and Representative Keith Downey, requires the government to show there is a real threat to public health and safety before it enacts future occupational regulations or enforces current laws.

The legislation recognizes that licensing laws are bad for Minnesota entrepreneurs and consumers. Entrepreneurs are hurt because such laws protect industry insiders from honest competition. Licensing reduces jobs by forcing entrepreneurs to meet expensive and unnecessary requirements before they can start working. In fact, converting licensing laws to certification laws could help create more than 15,000 new jobs in Minnesota.

Moreover, Minnesota’s consumers are worse off because licensing laws reduce the number of providers from which consumers can choose and force them to pay up to $3.6 billion more for services, while reducing economic growth in the state by up to $1.1 billion annually.

Most importantly, the Licensing Relief and Job Creation Act shifts the burden to the government to justify restrictions on Minnesotans’ right to pursue an occupation. In the process, it liberates entrepreneurs not only to create jobs and increase economic activity but also to fulfill their American dreams.