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The Case Against State Occupational Licensing Boards
CATO
2025.10.10
On their face, occupational licensing laws―the requirement that members of a regulated profession obtain a mandated license issued by the government before they can legally conduct business and which impact nearly one out of every five workers―look like many other state regulations. However, licensing laws are enforced differently than other state laws. Instead of relying on the traditional executive branch enforcement, state governments often delegate that power to a quasi-governmental board of industry insiders who have a strong financial incentive to box out their business competitors. Many of these boards operate independently with little oversight.