Michigan House advances plan eliminating duplicative measures
The Michigan House on Tuesday advanced a package of proposals, including one sponsored by state Rep. Jim Lilly, easing costs for employees in areas with occupational licensing at the local level.
Designed to roll back government red tape and diminish the burden on businesses, their employees and consumers, the plan disallows local governments in Michigan from imposing licenses on occupations that already are regulated at the state level.
“It’s counterproductive to Michigan’s continued comeback to have this level of burdensome regulation for people in these careers,” said Lilly, of Park Township. “It creates more fees and more hassle for people trying to provide for themselves and their families.”
If the state were to require a license and set standards for an occupation that was previously unregulated, a local government would be expected to remove or cease enforcement of its own licensing requirements for that particular profession.
Lilly worries more requirements mean more individuals will be less likely to pursue a career or start a business in a licensed field, creating less competition and more inherited cost for Michigan consumers.
“It’s not a job-friendly structure,” Lilly said of the licensing layers. “I’m concerned we’re squeezing people out of some of these industries or making it harder for people to enter into them due to overregulation. That doesn’t help our residents or the state in any capacity.”
The proposal’s main bill, House Bill 5955, creates the Local Government Occupational Licensing Act. Lilly’s bill, HB 5963, is part of companion legislation ensuring cities, villages, townships and counties are in accordance with the new proposal. The bill package moves to the Senate for consideration.