S5 E7: Mother may I?

“Mother May I?”– Occupational Licensing Reform in South Carolina and what it could mean for entrepreneurs, lower-wage income earners, and efforts toward Justice Reform.

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: 

1. It tightens the process for investigations of complaints against someone’s license and provides more visibility into the process:

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.

2. Prohibits the denial of a license to someone with certain prior criminal convictions: 

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. 

3. Allows for one, who has met all the licensure requirements for training, education, and testing, to work in a field while awaiting the completion of the licensing process. 

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: 

Why does any of this matter you might be asking… 

Occupational Licensing is a barrier to entry into the labor market, meaning that it makes it unduly burdensome for many to enter the industry of their choosing. It allows for the State to decide who does business when and where, and imposes additional and unnecessary costs for start up as well as continued operation. 

Let’s use the hair braider as an example. Let’s say I live in a community where resources for families are scarce, and I am particularly talented at braiding hair. Since I have this skill, and a desire to serve my community, I decided to offer my services to my community at a very low cost to cover my time and expenses in an effort to make it a more affordable and more available service. In the State of South Carolina this is illegal without licensure. Someone in this case has two choices: 

1. Operate illegally and run the risk of being heavily fined and possibly imprisoned; or,

2. According to the SC Department of Labor, Licensing, and Regulation website, “Hair braider applicants must submit the Hair Braider application, supporting documents (listed on the application), and the appropriate fee in the form of a check or money order. A user ID and password will be provided so that applicants can review the 6-hour training course and then take the hair braiding safety and sanitation exam.” If you would like to see the absurdity of this full process you can view the application here. Note- fees are not listed anywhere. It looks like you must apply in order to be shown the fees, and we have been unable to verify the actual cost of this process.

Consider, also, that in this community my resources are also scarce. I have no money for all the steps in #2. Most weeks are a struggle to buy food and keep a roof over my family’s heads. If I have a skill, and my community has a need for my services, and they trust me to provide that service, and they voluntarily engage me to provide that service, WHY CAN I NOT PROVIDE THE SERVICE? WHY HAVE WE MADE IT ILLEGAL TO BRAID HAIR WITHOUT PERMISSION FROM THE GOVERNMENT (Yes, I am shouting). Does anyone NOT see how ridiculous this all is? 

Now, I know what most of you are probably thinking- “But without government oversight, who would protect us from the big bad capitalists?”. That answer is simple, WE WILL. We have become far too comfortable depending on the State to do things for us, and we have lost the value in communities holding businesses accountable for their business practices. How many times have you heard the adage “word of mouth is the best advertising”? You can apply that principle to every single one of those professions/industries above, and more. 

Stay with us here…

In addition to word of mouth, or community reputation, professional organizations also exist to serve this purpose. Professional organizations can provide certifications based on specific industry standards, which would serve to notify the public of the training and education of an individual performing a service. For example, the SC Chapter of American Society of Landscape Architects could provide private licensure and continued education for Landscape Architects, similar to what the National Association of Legal Assistants does for Paralegals. (I, Jessica, use these examples because my husband is a Landscape Architect and I am educated with a professional background as a Paralegal) (I, Melissa, work in aerospace manufacturing and we go through voluntary audits to become ISO, AS, and NADCAP certified because it is required by our customers. None of these certifications or requirements are mandated by the government.) 

These reforms also aid in our efforts for Criminal Justice Reform, which is a topic we will be discussing in greater depth in the next two episodes. Occupational Licensing is a HUGE barrier for those who are re-entering society after serving their sentence. In addition to lack of housing, not being able to find gainful employment is one of the largest contributors to high recidivism rates. 

Many prisons offer courses and training to prepare inmates for re-entry. These programs have been proven to reduce recidivism rates, and include a variety of opportunities ranging from a GED/High School Diploma equivalent, to training in specific trades, all the way up to courses that qualify for college-transfer. If a trade school offers classes in, say, plumbing or HVAC, an inmate could realistically come out of prison certified in those fields and could be ready to start a business in a field where qualified tradespeople are desperately needed.  

Removing the disqualification of licensure for someone based on their criminal background allows for prisons and private companies and schools to partner in efforts to put those imprisoned on a path to be able to build a life outside of the prison walls immediately upon release. THIS would be a BIG step in the right direction. 

What does any of this have to do with parenting? Because it impacts our children. 

In the State of South Carolina, a handyman completing projects more than $5000 are required to obtain a General Contractor’s License. 

Imagine if my son wanted to start his own handyman business to pay for his own expenses and experiences. He has always been fiercely independent and mechanically inclined, and can fix just about anything around the house and yard. 

Let’s say our neighbor is an elderly lady who wishes to hire him for the summer to complete a list of various repairs and improvements to her home, but she is on a fixed income with little additional money. Since my son has the talent and time, he agrees to perform all these repairs with a market value of, let’s say, $15,000 for only $6000. They agree to the costs, and he completes the project for her on time and of satisfactory quality. 

In this case my son could be held criminally responsible for doing this business without the appropriate General Contractor’s license. Not to mention the business licensing and tax requirements that are required.  My son, who is taking on responsibility and trying to earn money while also helping someone in need, cannot fulfill this obligation without breaking the law.  

We would encourage you to contact your House and Senate Reps and ask them to support these Bills. Economic freedom for ALL people is of vital importance to the economic prosperity of our communities, and to raising our kids to be independent and self-sustaining. We all need to put our boots to the ground and do the work of holding our lawmakers and government agencies accountable. 

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