Michigan Senate Bill 40 would create a review process of the state’s occupational licensing regulations. The Michigan Law Revision Commission would be charged with this task and would recommend the least restrictive regulation necessary to protect consumers from harms that threaten public health and safety.
If the law is passed, the MLRC will annually review the licensing laws of approximately 20% of the occupations that are subject to licensure. Over each five-year period, then, all licensed occupations would be reviewed. In its analysis, the MLRC will employ a rebuttable presumption that market competition and private remedies are sufficient to protect consumers. If that presumption is rebutted, the MLRC will recommend licensing laws tailored to protect consumers and address specific issues identified by the commission.
Under the proposed legislation, the term “least restrictive regulation” is defined using a hierarchy of regulatory mechanisms, ordered here from least to most restrictive:
Choosing the most appropriate and least restrictive regulation requires a comprehensive evaluation of each licensed occupation in Michigan. What follows are issues that should be considered before making a judgement about which regulatory mechanism would be most appropriate for a given occupation.