On March 26, 2014, the House Small Business Committee held a hearing on the anti-competitive effects of state licensing boards. Consisting mostly of licensed and credentialed practitioners in any of the over 800 licensed occupations nationwide, these boards can institute requirements that protect incumbents and limit competition. Since most of these boards are state-sanctioned, quasi-official regulatory bodies, they operate largely outside of Sherman Act anti-trust supervision.
Did you know that, in many states, if you file your horse's teeth, you are required to be a licensed veterinarian? Or, were you aware that, in order to braid someone's hair in some states, you are required to be a licensed cosmetologist (which in some jurisdictions requires more training than an emergency medical technician (EMT)!?! The result of such licensing regimes: less competition, higher prices, with no discernable effect on quality.
As a largely state-licensed profession, private investigators know this situation all too well.
Then, on July 16, 2014, the House Committee held a second hearing, this time taking testimony from the Andrew Gavil, Director, Office of Policy Planning, Federal Trade Commission ((FTC) who stated:
We have seen many examples of licensure restrictions that likely impede competition and hamper entry into professional and services markets, yet offer few, if any, significant consumer benefits. In these situations, regulations may lead to higher prices, lower quality services and products, and less convenience for consumers.
Of particular note, the FTC has begun challenging licensing regimes in states where such regulation does not appear to serve the public interest, and welcomes examples of where regulation extends beyond any reasonable public purpose, but instead serves to protect the economic interests of a few entrenched practitioners.
We believe that this is a situation calling for the input of NCISS members from across America. We are asking you, our members, to call attention to how this situation impacts our ability to conduct business. We need examples of state-based regulation of private investigators that exceeds the boundaries of common sense or the public interest, acting instead to protect the business of entrenched practitioners. Where are NCISS members practicing, where the fox is guarding the proverbial henhouse?
Send your comments with the subject line: "FTC - Licensing"
to Investigator and Security Legislative Chairs:
Francie Koehler at Francie@NCISS.org
or
Maria Landry at mlandry@vinsonguard.com
Once we identify appropriate examples, NCISS and Lobbyit will then turn on the NCISS Advocacy Hub so these comments to be channeled into the FTC and Congress.
Lobbyit and NCISS have been working on the next phase of this series of hearings (soon to be scheduled), wherein Committee Chairman Graves will be exploring the impact on small businesses of various and ever-accumulating Federal regulations (health and safety, labor, environmental, etc.).
