Jobs for Californians: Strategies to Ease Occupational Licensing Barriers

Jobs for Californians: Strategies to Ease Occupational Licensing Barriers REPORT #234, October 2016 LITTLE HOOVER COMMISSION DEDICATED TO PROMOTING ECONOMY AND EFFICIENCY IN CALIFORNIA STATE GOVERNMENT Little Hoover Commission Pedro Nava To Promote Economy and Efficiency Chairman Jack Flanigan The Little Hoover Commission, formally known as the Milton Vice Chairman Marks “Little Hoover” Commission on California State Government Scott Barnett Organization and Economy, is an independent state oversight agency. David Beier† Anthony Cannella By statute, the Commission is a bipartisan board composed of five Senator public members appointed by the governor, four public members Chad Mayes appointed by the Legislature, two senators and two assemblymembers. Assemblymember Don Perata In creating the Commission in 1962, the Legislature declared its p urpose: Sebastian Ridley-Thomas* Assemblymember ...to secure assistance for the Governor and itself in promoting economy, efficiency and improved services in the transaction of the public business Richard Roth Senator in the various departments, agencies and instrumentalities of the executive Jonathan Shapiro branch of the state government, and in making the operation of all state departments, agencies and instrumentalities, and all expenditures of Janna Sidley public funds, more directly responsive to the wishes of the people as Helen Torres expressed by their elected representatives... Sean Varner Former Commissioners Who The Commission fulfills this charge by listening to the public, Served During The Study consulting with the experts and conferring with the wise. In the course Loren Kaye* of its investigations, the Commission typically empanels advisory committees, conducts public hearings and visits government operations David Schwarz* in action. Sumi Sousa † Served as subcommittee chair Its conclusions are submitted to the Governor and the Legislature for * Served on study subcommittee their consideration. Recommendations often take the form of legislation, Commission Staff which the Commission supports through the legislative process. Carole D’Elia Executive Director Jim Wasserman Deputy Executive Director Contacting the Commission Krystal Beckham Project Manager All correspondence should be addressed to the Commission Office: Matthew Gagnon Little Hoover Commission Research Analyst 925 L Street, Suite 805, Sherry McAlister Sacramento, CA 95814 Administrative Analyst (916) 445-2125 Sierra Grandbois littlehoover@lhc.ca.gov Intern This report is available from the Commission’s website at www.lhc.ca.gov. Aleksander Klimek Intern Letter from the Chair Letter from the Chair October 4, 2016 The Honorable Edmund G. Brown, Jr. Governor, State of California The Honorable Kevin de León The Honorable Jean Fuller President pro Tempore of the Senate Senate Minority Leader and members of the Senate The Honorable Anthony Rendon The Honorable Chad Mayes Speaker of the Assembly Assembly Minority Leader and members of the Assembly Dear Governor and Members of the Legislature: One out of every five Californians must receive permission from the government to work. For millions of Californians, that means contending with the hurdles of becoming licensed. Sixty years ago the num- ber needing licenses nationally was one in 20. What has changed? What once was a tool for consumer protection, particularly in the healing arts professions, is now a vehicle to promote a multitude of other goals. These include professionalism of occupations, standardization of services, a guarantee of quality and a means of limiting competition among practitioners, among others. Many of these goals, though usually well intentioned, have had a larger impact of preventing Californians from working, particularly harder-to-employ groups such as former offenders and those trained or educated outside of California, including veterans, military spouses and foreign-trained workers. In its study on occupational licensing, the Commission sought to learn whether the state properly balances consumer protection with ensuring that Californians have adequate access to jobs and services. It learned the state is not always maintaining this balance, as evidenced by discrepancies in requirements for jobs that pose similar risks to the consumer. Manicurists, for example, must complete at least 400 hours of education, which can cost thousands of dollars, and take a written and practical exam before becoming licensed. In contrast, tattoo artists simply register with their county’s public health department and take an annual bloodborne pathogens class, which can be completed online for $25. The effects of occupational licensing extend well beyond people encountering hurdles to entering an occupation, the Commission learned. When government limits the supply of providers, the cost of services goes up. Those with limited means have a harder time accessing those ser- vices. Consequently, occupational licensing hurts those at the bottom of the economic lad- der twice: first by imposing significant costs on them should they try to enter a licensed oc- cupation and second by pricing the services provided by licensed professionals out of reach. The Commission found that over time, California has enacted a thicket of occupational regulation that desperately needs untangling in order to ease barriers to entering occupations and ensure services are available to consumers of all income levels. Little Hoover Commission | 1 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers Fortunately, there is an effort underway to review licensing laws and adopt evidence-based approaches to consumer protection: The White House is providing $7.5 million in grant funding for a consortium of states to assess whether their current levels of occupational regulation are appropriate. California should be part of this effort. Additionally, the state should consider the impact of licensing on groups disproportionately harmed by these regulations, including: • Former offenders. Witnesses testified there is no evidence demonstrating that having a criminal record is related to providing low quality services. Unnecessary restrictions on criminal convictions simply punish again people who have already served their time. • Military spouses. When military spouses cannot transfer their licenses across state lines due to state restrictions, they spend precious time and resources re-completing requirements they already have, or taking, in all likelihood, a lower-paying, lower-skilled job. Married service members overwhelmingly report their spouse’s ability to maintain a career affects their decision to remain in the military. • Veterans. Veterans often face difficulty transferring their military education and experience into civilian licensing requirements. Sometimes they must repeat these requirements for a job they have been performing for years. Taxpayers then pay twice for them to learn the same set of skills: once while in the military and again through the G.I. Bill. • Foreign-trained workers. Like veterans, foreign-trained workers often have difficulty translating their education and experience into state licensing requirements and often take lower-skilled jobs instead. With worker shortages looming in mid- and high-skilled professions, the state should embrace these workers instead of erecting barriers to keep them out of jobs. Examining and assessing California’s occupational regulations does not mean stripping consumer protection. Rather, experts should consider whether the current level of regulation strikes the appropriate balance between protecting consumers and limiting access to occupations and services. California once tried an ambitious restructuring of its boards and commissions, including many licensing boards, as part of the 2004 California Performance Review. Governor Arnold Schwarzenegger, informed by the work of the California Performance Review, sent a Governor’s Reorganization Plan to the Little Hoover Commission in January 2005 that went far beyond a review of occupational regulation: It was a complete overhaul of the state’s boards and commissions. Facing insurmountable hurdles, Governor Schwarzenegger withdrew the plan from consideration a month later. No comprehensive attempts at reform have occurred since. By participating in a more focused review of occupational regulation, potentially subsidized and supported by the federal government, by beginning reforms where the barriers are egregious and worker shortages loom, and by taking action based on the recommendations of independent experts, the state can avoid repeating the errors of the past and position itself to make a long-term difference for Californians. The Commission respectfully submits these findings and recommendations and stands prepared to help you take on this challenge. Sincerely, Pedro Nava Chair, Little Hoover Commission 2 | www.lhc.ca.gov Contents Contents 5 Executive Summary Since Statehood: A Jumble of Licensing Politics...................................................................... 5 Effects of Licensing on Consumer Prices................................................................................. 5 Some Groups are More Vulnerable to Licensing Regulations.................................................. 6 Legitimate Arguments for Licensing........................................................................................ 6 California Needs a Holistic Regulatory Strategy...................................................................... 6 Recommendations.................................................................................................................. 7 11 Introduction 13 Occupational Licensing in California What is Occupational Licensing.............................................................................................. 15 Occupational Licensing in California....................................................................................... 15 How Does Licensing Work in California.................................................................................. 16 Why License?.......................................................................................................................... 17 Real World Conditions Disadvantage Some Unlicensed Occupations..................................... 19 Effects of Occupational Licensing............................................................................................ 20 Gatekeeping and Inequality.................................................................................................... 22 Licensing Silos and Missing Data............................................................................................. 23 Recommendations.................................................................................................................. 25 26 Pathways to Upward Mobility Former Offenders.................................................................................................................... 27 Those Who Serve.................................................................................................................... 30 Foreign-Trained Workers......................................................................................................... 33 Models to Get People Working............................................................................................... 35 Summary................................................................................................................................. 37 Recommendations.................................................................................................................. 38 39 Appendices Appendix A: Public Hearing Witnesses................................................................................... 39 Appendix B: Public Meeting Witnesses.................................................................................. 40 41 Notes Little Hoover Commission | 3 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers 4 | www.lhc.ca.gov Executive Summary Executive Summary Californians rely on occupational regulation to protect The Commission found that the licensing boards within the them. Doctors must prove proficiency in medical Department of Consumer Affairs are semi-autonomous, knowledge before they treat patients. Electricians must governed by a rulemaking process. But their considerable demonstrate they know their trade before they wire a autonomy results in no holistic vision on how occupations house. Yet for all these important protections, there is a should be regulated in California. Licensing authorities flip side of occupational licensing: The requirements to under the Department of Consumer Affairs undergo a prove proficiency often serve as a gate, keeping people sunset review process every four years to determine out of occupations. whether the authority is best serving Californians. If not, legislative fixes are made or the licensing authority Licensing is more stringent than other types of is dissolved. But even when a licensing authority is occupational regulation because not being able to obtain disbanded it may not be gone for good. When the a license means someone cannot practice the profession. Legislature eliminated the Board of Barbering and Certification or registration allows practitioners to Cosmetology in 1997, Senator Richard Polanco resurrected demonstrate they meet certain standards of quality or it with legislation in 2002. allows the state to know certain types of businesses are operating without barring people from the occupation. This is the heart of problems the Commission found with occupational licensing: The process often is a political activity instead of a thoughtful examination of how Since Statehood: A Jumble of Licensing best to protect consumers. Multiple witnesses told Politics the Commission that consumers are not key players in creating and governing licensing regulations, even though the regulations are ostensibly made in their interest. When the Commission began its study on occupational Occupational licensing is not about consumers going licensing in California, it aimed to learn whether the to the Legislature and asking for protection, said one State of California is striking the appropriate balance witness. It is about practitioners telling legislators that between protecting consumers and erecting barriers to consumers need to be protected from them. Substantial entry into occupations. It found more than 165 years of benefits accrue to practitioners of licensed occupations. accumulated regulations creating a nearly impenetrable Working in occupations licensed in some, but not all, thicket of bureaucracy for Californians. No one could states raises wages by 5 percent to 8 percent. Working give the Commission a list of all the licensed occupations in occupations licensed in all states drives up wages by in California. Licensing is heavily concentrated within 10 percent to 15 percent, witnesses told the Commission. the Department of Consumer Affairs, but it also is scattered throughout other government departments and agencies. Want to become a registered nurse? Go Effects of Licensing on Consumer to the Board of Registered Nursing. Want to become a Prices licensed vocational nurse? Go to the Board of Vocational Nursing and Psychiatric Technicians. Want to become a certified nursing assistant? Go to the Department of It stands to reason that if wages within licensed Public Health. professions increase, so will costs to consumers. Witnesses shared research showing that, depending on occupation, instituting licenses raised consumer Little Hoover Commission | 5 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers prices by 5 percent to 33 percent. One Commission occupations should be licensed. Commercial interior witness estimated that licensing costs consumers more designers, for example often do building code-impacted than $200 billion a year nationally. Meanwhile, there is design work – moving walls that entail electrical, lighting, not necessarily a corresponding increase in consumer HVAC and other changes. They design the layout safety due to licensing. Researchers reported to the of prisons, where the safety of correctional officers Commission that for many occupations, bad outcomes and inmates is on the line. Even though the people did not increase when licensing restrictions were relaxed performing this commercial work typically have extensive to make it easier to enter those occupations. educational and work experience, city and county inspectors do not recognize their unlicensed voluntary Some Groups are More Vulnerable to credentials. Architects or engineers must sign off on their plans, resulting in time and cost delays. Licensing Regulations Other advocates see licensing as a vehicle to The Commission learned that certain groups are professionalize an occupation. This is particularly true especially vulnerable to licensing regulations: of low-wage caretaker occupations, often practiced by minorities. Licensing presents opportunities for  Former offenders must withstand scrutiny that is practitioners to offer government-guaranteed quality of not always straightforward and typically have no care in return for being treated like professionals. advance guidance on whether a conviction will disqualify them from an occupation. Finally, many pleas for the health and safety benefits  Military spouses can spend a year or two of licensing are, indeed, genuine. Different people are recompleting requirements to meet California- willing to accept different degrees of risk. As long as specific regulations for a job they have practiced humans are allowed to practice an occupation, there for years in other states. By the time they will be human errors and bad outcomes. Stricter levels become licensed in California, their spouse is of regulation often will reduce, but never completely soon transferred to a new state. eliminate, those errors and outcomes. Where is the line for acceptable risk? One person might be comfortable  Veterans, too, often have to redo education and with caveat emptor, while another might see a consumer training that taxpayers already paid for while threat that must be regulated. they were in the military. The state has enacted many bills to make it easier for veterans to California Needs a Holistic Regulatory become licensed. But that legislation has gaps: it is predominately directed at the Department Strategy of Consumer Affairs and not other licensing authorities, and no one tracks implementation. California needs a holistic well-reasoned strategy for regulating occupations. The specific details of who  Foreign-trained workers, particularly bilingual can and cannot practice will vary by occupation. But professionals, are well suited to ease California’s the underlying principles of what level of consumer impending worker shortages. But they face protection the state hopes to achieve – and how many of the same obstacles as veterans: their education and experience abroad is difficult to difficult or easy it should be to enter occupations – apply to state licensing requirements. should be set by state policymakers and implemented across all occupations. The Commission offers eight recommendations as guiding principles and a way Legitimate Arguments for Licensing forward. The first four recommendations address systemic issues in how California licenses occupations It would be unfair to characterize all attempts to license and governs its regulatory process. The last four an occupation as a means to artificially inflate wages recommendations offer ways to make it easier to enter for licensed practitioners. Witnesses made compelling licensed occupations without overhauling California’s arguments to the Commission about why their licensing structure or lowering standards. 6 | www.lhc.ca.gov Executive Summary Recommendations This review should specifically analyze barriers to former offenders, military spouses, veterans and people with education, training or experience outside California. Federal Data Collection funding exists to perform this analysis and California is invited to participate in a consortium applying for this It is difficult to assess the impact of licensing regulations funding. California should not pass up the opportunity. on various demographic groups because no one collects demographic data for people who work in many licensed Recommendation 2: The State of California should join a occupations or apply for licenses. Anecdotal reports say consortium of states organizing to attain federal funding minorities are often negatively and disproportionately to review their licensing requirements and determine affected by licensing regulations. But without whether those requirements are overly broad or demographic information it is impossible to know for sure. burdensome to labor market entry or labor mobility. As part of this process, the state should consider whether The Commission recommends collecting demographic there are alternative regulatory approaches that information on licensed workers and applicants so might be adequate to protect public health and safety, policymakers better understand the impact of regulations including, but not limited to, professional certification. on different groups of Californians. Yet safeguards must accompany the collection and analysis of demographic Reciprocity data. Race or gender should not be part of information officials consider when deciding to issue a license or License transferability across state lines is important when making disciplinary decisions. Demographic data to people who need immediately to begin working will have to be tied to specific applicants in order to following a move to California. It is particularly important understand outcomes, such as whether they are issued to military spouses, who move frequently. Licensing a license or what reason they were denied. Modifying authorities should grant reciprocity to applicants licensed multiple IT systems used by licensing authorities to in other states. In occupations with dramatically differing ensure this information is not visible to licensing and requirements across the country, California should grant enforcement personnel will come with costs. The partial reciprocity to states with similar requirements as Legislature should ensure the department receives the its own. California should start by assessing reciprocity funds necessary for this enterprise. Finally, supplying this in the occupations facing significant worker shortages, demographic information should be voluntary, and not a such as teachers and nurses. There may be some requirement for licensure. licenses for which California’s standards are so unique that reciprocity is not an option, and in those cases, Recommendation 1: The Legislature should authorize the licensing authority should justify why reciprocity or the mandatory collection of demographic information partial reciprocity is not feasible. for license applications across all licensed occupations in California, including those outside of the Department Recommendation 3: The Legislature should require of Consumer Affairs. This demographic information reciprocity for all professionals licensed in other states should not be made available to staff members issuing as the default, and through the existing sunset review licenses or conducting enforcement actions, but should process, require boards to justify why certain licenses be studied in the aggregate to determine the impact of should be excluded. Specifically, licensing boards should licensing requirements on various demographic groups. be required to: Comprehensive Licensing Review  Identify whether licensing requirements are the same or substantially different in other states. California has created occupational licensing regulations for more than 165 years. It is long past time for a  Grant partial reciprocity for professionals licensed in states with appropriately comparable comprehensive review of these accumulated rules to testing and education requirements. determine whether gains for consumer health and safety justify the barriers they present to entering occupations. Little Hoover Commission | 7 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers Sunrise and Sunset Review automatically disqualify people. Those decisions are made on a case-by-case basis. This provides flexibility In the sunrise review process, a group trying to become to allow people into occupations from which they might licensed supplies the Assembly Committee on Business otherwise be excluded. Yet it also results in people and Professions and the Senate Committee on Business, investing time and money for education and training for Professions and Economic Development with evidence occupations they might never be allowed to practice. The demonstrating that consumers are best protected by Commission recommends making publicly available the licensing the occupation in question. In the sunset list of criteria by which applicants are evaluated. While it review process, the two committees evaluate information might not provide a firm answer to potential applicants submitted by the licensing authority to determine its on whether they will qualify, it will provide more performance and whether it still continues to present the information with which they can assess their educational best method of consumer protection. The committees decisions. will introduce legislative bills to fix problems found during the review. Applicants also sometimes face difficulty when asked to list their convictions. If significant time has passed since Though the Commission was impressed with the the conviction, if they had substance use disorders or professionalism and dedication of the business and mental health problems at the time or if they pled to a professions committee staff, the two committees are different charge than they remembered being arrested inundated with information that they must verify and for, the convictions they list on their application might not analyze in a relatively short period of time. Some match what returns on a background check. Even when have suggested that the state might benefit from the this mistake is unintentional they can be disqualified automatic sunset of licensing authorities periodically, for lying on their application. When criminal conviction perhaps every four or eight years. Licensing authorities history is required, the Commission recommends asking and their performance would then be scrutinized by the only for official records and not relying on applicants’ entire Legislature when bills to reauthorize them were memories. The Commission also urges expediting the introduced – a more robust process than tasking the background check fee waiver process so lower-income two committees with reviewing licensing authorities. applicants can begin working sooner. Short of that, the Legislature should provide additional resources to enhance the committees’ capacity to verify Applicants who are denied a license may engage in an and analyze the information used in the sunrise and appeals process, but many find it intimidating. Further, sunset reviews. It also should authorize audits when the some licensing authorities rely on an administrative law business and professions committees deem necessary. hearing to process denials. The Commission learned that some applicants – particularly those who are legally unsophisticated or have lower levels of education Recommendation 4: The Legislature should provide – believe that the appeals process involves simply additional resources, in the form of additional staff or explaining the red flags on their application. Most are outside support, to assist the Assembly Committee on unprepared for an encounter with a judge and state Business and Professions and the Senate Committee attorney. The Commission recommends creating an on Business, Professions and Economic Development intermediate appeals process where applicants can in verifying and evaluating information for sunrise explain the problems with their application before and sunset reviews. The Legislature should request encountering an administrative law hearing. the California State Auditor conduct an audit when warranted. Recommendation 5: With the Department of Consumer Affairs serving as a clearinghouse of best practices and Former Offenders providing guidance to other departments as needed, all licensing authorities should take the following steps to Californians with convictions on their record face several make it easier for former offenders to gain employment: challenges when trying to become licensed. Most licensing authorities do not list specific convictions that 8 | www.lhc.ca.gov Executive Summary  Post on their website the list of criteria used to Recent Veteran and Military Spouse evaluate applicants with criminal convictions so Licensing Bills that potential applicants can be better informed about their possibilities of gaining licensure These bills were designed to make it faster and before investing time and resources into easier for veterans and military spouses to become education, training and application fees. licensed. Some have only recently taken effect, while others, anecdotally, have not been as effective as  When background checks are necessary, follow lawmakers hoped. The Commission recommends a the Department of Insurance model and require applicants with convictions to provide certified study on the implementation of these bills: court documents instead of manually listing SB 1226 (2014, Correa): Requires Department of convictions. This will prevent license denials due to unintentional reporting errors. The State Consumer Affairs (DCA) boards to expedite licensure of California also should expedite the fee-waiver of honorably-discharged veterans. Took effect July 1, process for all low-income applicants requesting 2016. background checks. AB 186 (2014, Maienschein): Requires DCA boards  Follow the Bureau of Security and Investigative to issue 12-month temporary licenses to military Services model and create an informal appeals spouses with out-of-state licenses for the following process between an initial license denial and an occupations: registered nurse, vocational nurse, administrative law hearing. psychiatric technician, speech-language pathologist, audiologist, veterinarian, all licenses issued by the Board for Professional Engineers, Land Surveyors Implementation of Veteran and Military and Geologists and all licenses issued by the Medical Spouse Legislation Board. California has passed many laws to make it easier for AB 1057 (2013, Medina): Requires DCA boards to veterans and military spouses to become licensed quickly renew licenses that expire while an individual is on and easily. These laws are summarized in the box to the active duty without penalties or examination. right. Some of these laws have only just begun to take AB 1588 (2012, Atkins): Requires DCA boards to effect, and others, the Commission heard anecdotally, are not having the intended effects. Veterans and military waive renewal fees for licenses that expire while the spouses still face delays in receiving licenses. Helping practitioner is on active duty. veterans transition to civilian jobs has long been a goal AB 1904 (2012, Block): Requires DCA boards to of state policymakers. Military spouses’ ability to get expedite licensure for military spouses. and hold jobs is important in retaining experienced military personnel: A U.S. Department of Defense witness AB 2462 (2012, Block et al.): Requires the Chancellor testified that the military loses good people because of the California Community College to determine of spouses having difficulty finding work, making it a which courses should receive credit for prior national security issue. The Commission recommends military experience, using the descriptors and that the Legislature authorize a research institute to study the implementation of laws designed to ease transitions recommendations provided by the American Council of veterans and their spouses. The study should on Education. determine if they are being implemented effectively, AB 2783 (2010, Salas et al.): Requires DCA boards identify how to bridge gaps between the intent of the to promulgate regulations to evaluate and credit legislation and current outcomes, and show how to better educate veterans and military spouses about these military education, training, and experience if licensing benefits. applicable to the profession. Little Hoover Commission | 9 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers Recommendation 6: The Legislature should authorize a Interim Work and Apprenticeship Models research institute, in conjunction with federal partners as needed, to study the implementation of recent There are models to help people work while they legislation that requires the Department of Consumer are meeting California requirements for licensing or Affairs to ease or waive licensing requirements for improving their skills to progress up a career path. In veterans and military spouses. The review should the California Teacher Credentialing Commission model, identify gaps between the intent of the laws and teachers licensed outside of California are allowed to outcomes, and issue recommendations for executive or work immediately, but must complete their missing legislative action to bridge those gaps. The review also requirements during the five years before their license should assess the effectiveness of licensing authorities’ needs to be renewed. outreach campaigns to inform veterans of their eligibility for expedited licensing. Additionally, the Department of Industrial Relations’ Division of Apprenticeship Standards has a promising Bridge Education apprenticeship model. Individuals complete supervised hands-on training during apprenticeships and receive pay Many people who move to California meet most of the for the work they do. This model, applied as a bridge state’s licensing requirements, but fall short on a few training program, would allow people to work and earn components. Few options exist for them to quickly make a living while completing missing requirements. It also up those missing requirements. The state has created would provide an income while training individuals a promising model with its veteran field technician- wishing to improve their skills and education for to-nurse program, in which nursing programs lose upward mobility. The Legislature would have to adjust authorization to teach nursing if they do not fast track occupational practice acts to allow apprenticeships in veterans. The state should replicate this model for all some occupations. But since many of these occupations veterans and those qualified outside California in other already allow or require student practicums, this occupations. This should begin in occupations facing represents a language change and not a shift in consumer worker shortages. protection. Recommendation 7: The Legislature should require Recommendation 8: The State of California should California colleges and training academies to create develop interim work and apprenticeship models bridge education programs for veterans and workers to provide opportunities for people missing certain trained outside of California to help them quickly meet qualifications to work while meeting their requirements, missing educational requirements. Specifically: and to promote upward mobility within career paths.  California licensing boards and other departments providing licenses and credentials should identify common educational gaps between the qualifications of returning service members and state licensing requirements.  California colleges should create and offer programs to fill these gaps and expedite enrollment – or risk losing authorization for these programs. 10 | www.lhc.ca.gov Introduction Introduction The Little Hoover Commission began its study on The Commission held a second hearing in March 2016, in occupational licensing in October 2015, following a which it heard from people representing those personally review of the July 2015 White House report, Occupational affected by occupational licensing laws. This included Licensing: A Framework for Policymakers. Commissioners people who experienced difficulty becoming licensed expressed interest in understanding how the barriers to due to past convictions or received training or education entering occupations highlighted in the report applied out of state, including the military. It heard from people to California. Licensed occupations in California often who wanted their occupations to become licensed are good jobs that open a path for upward mobility for because they faced difficulties competing without lower- and middle-income residents. Commissioners state-recognized credentials. It also heard from people initiated the study to determine if the financial, time and in licensed industries who discussed the consumer opportunity costs imposed on a person trying to become protection and accountability benefits of licensing. licensed are justified by gains in consumer protection. The Commission decided not to study the requirements In June 2016, the Commission held a roundtable of specific occupations. Instead, Commissioners opted with policymakers from several licensing authorities, to examine and make recommendations on California’s business and professions committee consultants and licensing system as a whole to serve as a guide for Assemblymember Rudy Salas, Chair of the Assembly policymakers confronting licensing decisions across the Committee on Business and Professions. Commissioners entire spectrum of occupations. and participants discussed different ideas shared by witnesses in the preceding two hearings to assess The Commission’s Study Process whether it would be possible to implement those ideas, and if implemented, whether there might be unintended The Commission held its first occupational licensing consequences. hearing in February 2016. The hearing broadly introduced the Commission to the economics and politics of occupational licensing. Commissioners Profession versus Occupation heard from a leading economist about the linkages between occupational licensing and effects on wages For the purpose of this report, the Commission uses and employment and the price, quality and availability the terms occupation and profession interchange- of services. Researchers from national think tanks ably. California courts, however, have drawn a explained the impact of occupational licensing on upward distinction between the two. Licenses that require mobility and entrepreneurship. The director of a state- character, responsibility, good faith and sound focused public law institute discussed what it means to financial status are considered to be for nonprofes- protect the public interest and offered his assessment of sional occupational services. Licenses that require the state’s licensing entities in protecting that interest. education, training and a rigorous exam are consid- The Commission also heard from consultants from the ered to be for professional services. Assembly Committee on Business and Professions and the Senate Committee on Business, Professions and Source: Julia Bishop, Legislative Manager - Division of Legislative & Regulatory Review, Department of Consumer Affairs. September 21, Economic Development on how licensing statutes are 2015. Written communication with Commission staff. created and reviewed, through the sunrise and sunset process. Little Hoover Commission | 11 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers North Carolina State Board of Dental Examiners v. Federal Trade Commission The Commission’s report does not address a topic related to occupational licensing recently in the headlines: the February 2015 Supreme Court decision on North Carolina State Board of Dental Examiners v. Federal Trade Commission. The Court ruled that the practicing dentist- dominated North Carolina Board of Dental Examiners wrongly sent cease-and-desist letters to non-dentist teeth whiteners and had no antitrust immunity from a federal challenge to its order. While many states, in response, have begun to review the composition of their licensing boards and California continues discussions about the ruling, the Commission did not assess whether California complies with the ruling. The California Attorney General’s Office, Legislature and Department of Consumer Affairs have paid close attention to the case and are reassessing the structure of California’s licensing boards.1 The Senate Committee on Business, Professions and Economic Development and the Assembly Committee on Business and Professions held a hearing on the topic in October 2015. Legislation subsequently was introduced that would give the director of the Department of Consumer Affairs more authority to review board decisions, but that bill failed to pass committee. Though discussions continue, representatives from the Attorney General’s Office maintain the structure of California’s licensing boards under the umbrella of the Department of Consumer Affairs, coupled with a robust rulemaking process, prevents a North Carolina scenario from occurring in California. Report Format The report largely follows the Commission’s hearing format. The first chapter provides a high-level overview of occupational licensing, its effects and the justification for it, and a discussion of Commission findings on the barriers to entering occupations. It concludes with high-level recommendations to help the state better understand the effects of occupational licensing and guide future decision- making. The second chapter examines how the vulnerable groups outlined in the White House report – former offenders, military spouses, veterans, and people trained in other countries – fare in California. The chapter offers recommendations to better incorporate these groups into licensed occupations without loosening licensing standards. 12 | www.lhc.ca.gov Occupational Licensing in California Occupational Licensing in California C alifornia’s history of licensing began in its very an exam to demonstrate proficiency in the field, plus infancy as a state. With hundreds of thousands of pay a $5 fee to cover the expenses of verifying their people pouring into California looking for gold, easily competency.7 accessible claims were exhausted seemingly overnight. To ease competition, in April 1850 – five months before These examples highlight the challenge that occupational California was admitted to the union – the first session licensing presents to policymakers. It can serve as of California’s Legislature required foreigners to become a gatekeeper to keep people out of occupations licensed before they could mine for gold. Specifically, or protect the public from harm. In many cases, it non-Americans were required to pay $20 per month simultaneously does both. There is no one-size-fits-all for the license,2 or an estimated $569 per month in policy for occupational licensing. Nuance matters – no 2015 dollars.3 Over the next 20 years, the licensing easy task when it comes to creating and administering requirements were repealed, reinstated and reinvented laws to regulate a workforce of 19 million to protect as part of anti-Chinese sentiment until nullified in 1870 California’s 40 million inhabitants. “The devil is in the through federal civil rights legislation.4 implementation,” the director of California’s top licensing department told the Commission.8 The regulatory regime Again, on the heels of the 49ers flooding into that makes sense for one occupation does not make California came disease and doctors to fight it.5 sense for another, and new technologies and evolving Alongside dedicated doctors serving their community consumer demand render even the most thoroughly- were fraudsters who preyed on the uneducated, vetted rules and regulations obsolete. Racism, sexism unsophisticated and desperate. Some borrowed liberally and xenophobia are no longer explicitly written into from religious texts to describe the miracles they could licensing regulations, but lurk quietly in the outcomes. perform.6 In response, California’s Legislature opted to regulate who could practice as a doctor. The 1876 Impeding entry into occupations matters in California. As Medical Practice Act resulted in practitioners having one reporter noted, approximately 100 miles separates to prove they had completed medical school or pass those with the highest quality of life in the in the United An 1853 iteration of the Foreign Miner’s License. Source: State Legislature Records, California State Archives Little Hoover Commission | 13 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers States from those with the lowest.9 Removing licensing conscientious state officials working diligently to answer barriers will not fix all the ills that contribute to this that question, often in the face of powerful political economic inequality. But it is an important step because forces. The Commission found silos and structural the impacts of licensing fall hardest on some of the most barriers that prevent people from answering those difficult groups to employ: former offenders, military questions as effectively as they otherwise could. spouses, veterans, and people who were educated and trained outside of the state.10 Evaluating occupational This chapter provides a high level overview of occupational regulation is bigger than simply modernizing the State of licensing, the justification for it, its effects and some of the California’s regulatory regime: It allows the state to step obstacles the Commission found. It concludes with high- out of people’s way as they seek a good job. Because level recommendations to help the state better understand every occupational regulation creates a barrier to entry the effects of occupational licensing and to guide future into the occupation, there is one question that must be decision-making. The next chapter will discuss the asked every time a new regulation is considered: Does groups of people who face the most difficulties becoming that particular barrier provide the most appropriate licensed. It provides recommendations on how the state level of consumer protection? Over the course of its can help them move into licensed occupations – without study, the Commission consulted astute, dedicated and relaxing licensing standards. Spectrum of Occupational Regulation, from Most to Least Restrictive Governments should select the least restrictive form of regulation necessary to protect consumer safety Sources: Dick M. Carpenter II. February 4, 2016. Written testimony to the Commission. Also, Dick M. Carpenter II and Lee McGrath. July 2014. “The Balance Between Public Protection and the Right to Earn a Living.” Institute for Justice Research Brief. 14 | www.lhc.ca.gov Occupational Licensing in California What is Occupational Licensing? Most States License More People than California Economist Morris Kleiner defines occupational licensing as the process by which a government establishes the Rank State % of Workforce Licensed qualifications required to practice a trade or profession.11 1 Iowa 33.3 2 Nevada 30.7 The government may set its own standards or adopt 3 Washington 30.5 those of a national body, but regardless of which 4 Florida 28.7 qualifications it requires, practitioners may not legally 5 Kentucky 27.8 practice without meeting them. This differs from 6 Hawaii 26.6 certification in that individuals who do not meet the 6 North Dakota 26.6 requirements for certification may continue to practice, 8 Oregon 26.1 9 New Mexico 25.9 but cannot present themselves as certified. The act 10 West Virginia 25.8 of credentialing individuals is called different things by 11 Alaska 25.5 different authorities. The Commission refers to any 12 Oklahoma 25 occupation in which an individual cannot practice without 13 Connecticut 24.7 meeting qualifications set by the government as licensed, 13 Illinois 24.7 15 Nebraska 24.6 regardless of what the credentialing agency calls it. For 16 Texas 24.1 example, the Commission considers teachers to be 17 Utah 23.8 licensed, even though the credential they receive is called 18 Mississippi 23.1 a certification. 18 Tennessee 23.1 20 Idaho 22.8 21 Arizona 22.3 Occupational Licensing in California 21 Louisiana 22.3 23 North Carolina 22 Approximately 21 percent of California’s 19 million 24 South Dakota 21.8 25 Massachusetts 21.3 workers are licensed, a dramatic increase from the 1950s, 25 Missouri 21.3 when approximately one in 20 workers nationwide were 25 Montana 21.3 required to apply for permission from the government 28 Wyoming 21.2 to practice their profession.12 California licenses a lower 29 Alabama 20.9 percentage of its workforce than many other states: 30 California 20.7 30 Maine 20.7 According to data by economists Morris Kleiner and 30 New Jersey 20.7 Evgeny Vorotnikov published in the White House report, 30 New York 20.7 29 states license a higher percentage of their population 34 Michigan 20.6 than California.13 35 Arkansas 20.2 35 Pennsylvania 20.2 California compares poorly, however, to the rest of 37 District of Columbia 19.7 38 Wisconsin 18.4 the nation in the amount of licensing it requires for 39 Ohio 18.1 occupations traditionally entered into by people of 40 Colorado 17.2 modest means. Researchers from the Institute for Justice 40 Maryland 17.2 selected 102 lower-income occupations – defined by 40 Virginia 17.2 the Bureau of Labor Statistics as making less than the 43 Vermont 16.8 national average income – and examined what, if any, 44 Georgia 15.7 45 Delaware 15.3 licensing requirements were required to enter these 46 Minnesota 15 professions in the 50 states and District of Columbia.14 47 Indiana 14.9 These occupations ranged from manicurist to pest control 47 Kansas 14.9 applicator. Of the 102 occupations selected, California 49 New Hampshire 14.7 required licensure for 62 – or 61 percent – of them. Here 50 Rhode Island 14.5 it ranked third most restrictive among 50 states and 51 South Carolina 12.4 Source: White House. July 2015. “Occupational Licensing: A Framework for Policy- the District of Columbia, following only Louisiana and makers.” Quoting Kleiner and Vorotnikov (2015), Harris data. Little Hoover Commission | 15 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers Arizona. California ranked seventh of 51 when measuring the burden imposed on entrants into these lower- and California Licenses More Lower- moderate-income occupations: On average, California Income Jobs than Other States applicants must pay $300 in licensing fees, spend 549 Rank State % of Low-Income Occupations Licensed days in education and/or training and pass one exam.15 1 Louisiana 70 2 Arizona 63 How Does Licensing Work in 3 California 61 4 Oregon 58 California? 5 Mississippi 54 5 Nevada 54 7 Connecticut 53 California’s licensing boards, bureaus, commissions and 7 Iowa 53 programs are created by the Legislature. The creation 7 Washington 53 of a new regulatory entity requires a “sunrise” review 10 Tennessee 52 before a bill is introduced. In this review, the requestor 11 Arkansas 51 11 New Mexico 51 of the new regulation completes a questionnaire that is 13 South Carolina 50 disseminated to the Assembly Committee on Business 14 Delaware 48 and Professions, the Senate Committee on Business, 14 Rhode Island 48 Professions and Economic Development and other 14 West Virginia 48 relevant committees to review when considering the 17 New Jersey 47 necessity of the legislation. There are three concepts 17 North Carolina 47 19 Alabama 46 that guide the sunrise review process: 19 Idaho 46  The public is best served by minimal 19 Wisconsin 46 22 Utah 45 governmental intervention. 22 Virginia 45  The decision to regulate an occupation involves 24 Florida 44 weighing the right of individuals to do work 24 Nebraska 44 26 Alaska 43 of their choosing against the government’s 26 Montana 43 responsibility to protect the public when 26 Pennsylvania 43 protection is needed. 29 Hawaii 42 30 Maryland 41  Small or poorly-funded groups should not be 30 Michigan 41 deterred from making legitimate requests for 32 District of Columbia 40 regulation. (Most requests for regulation come 33 Illinois 39 from professional associations that can provide 33 North Dakota 39 extensive statistics and documentation in 35 Maine 38 support of their proposal. Here, the Legislature 36 Massachusetts 36 37 Minnesota 35 is concerned that private citizens, even if they are 38 Kansas 33 not able to afford a formal data-collection process, 38 New Hampshire 33 have the ability to propose new statutes).16 38 Texas 33 41 Georgia 32 The nine-part questionnaire seeks to establish: 41 New York 32 43 Missouri 30  If the proposed regulation benefits public health, 43 Ohio 30 safety or welfare; 45 Oklahoma 28 46 Colorado 27  If the proposed regulation is the most effective 46 Indiana 27 way to correct existing problems; 46 South Dakota 27 49 Kentucky 26  And, if the level of proposed regulation is 49 Vermont 26 appropriate. 51 Wyoming 24 Source: Dick M. Carpenter II, Ph.D., Lisa Knepper, Angela C. Erickson and John K. Ross, Institute for Justice. May 2012. “License to Work.” 16 | www.lhc.ca.gov Occupational Licensing in California After creation, a licensing entity is reviewed every four years by a joint session of the Assembly Committee on Top 10 Licensed Occupations in Business and Professions and the Senate Committee on California Business, Professions and Economic Development. This Occupation Number Licensed process is called sunset review. The box on page 18 outlines the goals and objectives of the sunset review Registered Nurse 400,134 process. If problems are found with the licensing entity, Insurance Agent/Broker 390,000 legislators will introduce bills to provide fixes and it will be Teacherᶧ 295,025 asked to reappear before the Legislature sooner than its Investment Agent/Rep 287,197 regularly-scheduled four-year review. On rare occasions, the Legislature has used the sunset review to dissolve a Security Guard 282,189 licensing body. Notably, in 1997, the Legislature eliminated Cosmetologist 254,271 the Board of Barbering and Cosmetology and transferred Real Estate Salesperson 264,816 its functions to the Department of Consumer Affairs. In Contractor 230,204 2002, Senator Richard Polanco successfully authored Lawyer* 187,190 legislation to reconstitute the board. In 2016, the Legislature enacted Senate Bill 1039 (Hill), which sunsets Real Estate Broker 138,121 the Telephone Medical Advice Services Bureau. In 1986, ᶧIndicates teachers in public schools. the Legislature dissolved the Board of Dry Cleaning and *Active members. Fabric Care. But such dissolutions of licensing authorities Sources: Please see endnote 18 in Notes. are few and far between. occupational licensing. Given that the health and safety The 40 boards, bureaus, commissions and programs components of licensing healthcare professions seem within the Department of Consumer Affairs (DCA) obvious to many, the Commission invited witnesses from oversee most licensing in California. In addition to seemingly less-intuitive industries to speak about their licensed individuals, the department also oversees health and safety considerations. Myra Irizarry Reddy of many licensed facilities in California, such as smog check the Professional Beauty Association told the Commission stations and funeral homes. In 2015, approximately that many people think of the cosmetology industry as 3.5 million individuals and facilities were licensed by simply a haircut. “They think that if someone doesn’t like DCA.17 Significant numbers of Californians, however, their haircut, their hair will grow back and they can leave are licensed by other authorities: The Department a bad review on Yelp – no harm done,” she said. of Insurance, State Bar Association, Department of Public Health and California Commission on Teacher The problem, she said, is that many of the procedures Credentialing collectively license more than a million cosmetologists do can result in irreparable damage. The Californians.18 chemicals used by hair stylists to color hair are stronger than those available in drug stores. If used improperly, Why License? they can burn the scalp to the extent that hair will not grow back. Light chemical peels – the process of Proponents of occupational licensing argue that it applying acid to the skin to cause it to blister and peel protects health and safety, prevents the privatization of off for a more youthful appearance – are performed by health and safety standards, is sometimes necessary for estheticians, who must perform the procedure without upward mobility and provides an accessible means of going too deep and must assess if the patient is a good candidate for a peel, as the acid can change a poor accountability. candidate’s skin color. Even simple manicures leave customers at risk for blood-borne diseases, viruses, and Health and Safety Concerns bacterial and fungal infections if the manicurist does not follow proper safety procedures.19 California has a legal obligation to protect its residents’ health and safety: This is the primary purpose of Little Hoover Commission | 17 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers Legislative Goals and Objectives in Sunset Review Goals of Sunset Review:  Eliminate unneeded, nonfunctional or redundant boards or programs, or any unnecessary rules and regulations.  Improve the quality of services provided to the consumer by examining the board’s requirements for education, experience and testing of professionals and other actions to assure competency.  Eliminate overly restrictive eligibility standards, or standards of practice that unduly limit competition between professionals or place undue burdens on those who want to enter the occupation.  Ensure people know where to go if injured or harmed by a licensed or unlicensed person, what actions they can take and what the outcomes may be.  Ensure the public’s complaints are handled in a courteous and expeditious manner.  Ensure boards are providing the appropriate remedy for the consumer: mediation, arbitration, restitution, disciplinary action and/or criminal action against the licensee or person posing as a licensee.  Ensure the public is informed about any complaints, disciplinary actions, judgments and criminal actions against a licensed professional.  Use information technology advancements to provide better and more uniform information on licensed professionals for the consumer to make informed decisions about using the services of particular professionals. Objectives of the Sunset Review Process:  Determine if the membership of the board adequately represents both consumer interests and the licensing population, and whether the board encourages public participation in its decision-making.  Examine the board’s organization and management and recommend elimination, consolidation and reorganization of programs where appropriate.  Identify opportunities for improvements in the management of the board’s daily operations and for providing more efficient and effective consumer services.  Identify consumer concerns and those of the regulated profession regarding the way the board operates.  Establish appropriate performance measures for each board reviewed.  Evaluate the board’s programs and policies to identify overlapping functions and outmoded methodologies.  Determine whether the board’s licensing, examination and enforcement programs are administered so as to protect the public, or if they are instead self-serving to the profession, industry, or individuals being regulated by the board.  Review the law and regulations pertaining to the board and determine whether they restrict competition in the marketplace, the extent to which they are still necessary to regulate the profession and whether the board is carrying out its legal mandate or has exceeded its authority.  Examine the board’s fiscal management practices and financial relationships with other agencies. Sources: Joint Committee on Boards, Commissions & Consumer Protection. Also, Le Ondra Clarke Harvey, Consultant, Assembly Committee on Business and Professions. October 6, 2015. Communication with Commission staff. 18 | www.lhc.ca.gov Occupational Licensing in California Deborah Davis, a commercial interior designer, said They can still practice their occupation without a license. that the health and safety impacts of her work cannot He also told the Commission that certification benefits be regulated by the free market. Many people think of consumers. This is because it signals that someone interior designers as people who pick out pillows, carpets has met the government’s requirements to work in the and curtains, she told the Commission. While those occupation, yet uncertified individuals are still able to are components of her job, she continued, a lot of her work so long as they do not call themselves certified. job involves code-impacted work. Interior designers, Consequently, certification identifies standards without who currently are not licensed in California, she said, lowering the supply of practitioners.23 can design all interior elements of a building outside of seismic components and load-bearing walls.20 When she Licensing advocates argue that, in practice, governments is hired to move a wall four feet, she adjusts the HVAC often turn their authority over to a private certification system, fire sprinklers, electrical wiring, lighting and other authority, and the private certification authority then sets elements. “This is the interior designer’s purview,” she the standards instead of the state – essentially privatizing told Commission staff. “Architects don’t want this job. the protection of the public interest.24 Assembly Bill 1279 No one becomes an architect to move a wall four feet.”21 (Holden, 2015) would have done just that, for example, had it not been vetoed by Governor Brown. The bill was Licensing opponents say that there is a spectrum of a “right to title” act for music therapists, meaning that activities to manage health and safety risks and that music therapists would have had to meet the standards licensing should be considered the nuclear option. It set by the Certification Board for Music Therapists in can make sense to license many of the healing arts order to use that title.25 professions, for example, because of the potential adverse effects on public health. But for many A representative for the California Nurses Association occupations, they say, there are ways that the state and told the Commission that the rationale for occupational the private sector can work together to ensure standards licensing is the protection of public health and safety. If are met. Lee McGrath, an attorney from the Institute for the state identifies a threat to public health and safety Justice, gave an example to Commission staff: Outside that justifies intervening in the economy, she said, of driving, he said, eating out is one of the most harmful then the state – not a private entity – should set the activities the average consumer will do on a regular basis. standards.26 But the state doesn’t license food handlers, he continued. Consumers may spend time researching a restaurant, Real World Conditions Disadvantage but outside of a few establishments with celebrity chefs, they don’t research who works for the restaurant Some Unlicensed Occupations and assess their qualifications. Yet, millions of people eat out every day without dying, thanks to inspections Some people in unlicensed occupations face immediate and shutting down unsafe establishments, quick action disadvantages that cannot be discounted when by public health officials on suspected food poisoning considering upward mobility. Commercial interior and restaurateurs’ concern for their reputations, he designers, for example, push for occupational regulation contended. The costs of regulations and standards to because they are disadvantaged by other industries’ protect public safety do not fall on the backs of the cooks, occupational regulations, according to industry servers and bussers.22 advocates. Because commercial interior designers work in code-impacted environments, their plans must be Prevents Privatization of Health and Safety approved by a licensed architect. A small percentage Standards of interior designers work for architectural firms, where obtaining a colleague’s approval can be quick Some licensing opponents argue that certification offers and inexpensive. However, if the interior designer is a viable alternative to licensing. Dr. Morris Kleiner, the self-employed, this requirement results in a delay and national expert on occupational licensing, advocates for increased costs to the interior designer. As 90 percent certification because it allows more flexibility for workers: of the industry is women-owned small businesses, Little Hoover Commission | 19 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers this disproportionately impacts female small business price of well-child exams by 10 percent. Dr. Kleiner, citing owners.27 By asking to be licensed, commercial his and colleagues’ work with economic models on the interior designers are asking to drop the requirement topic, estimates that occupational licensing restrictions that architects sign off on their plans, and establish cost consumers nationwide $203 billion annually.30 qualifications so the public can trust their work without architectural oversight.28 Consumer health and safety does not necessarily increase with the price of the service, according to witnesses. Practical Means of Accountability Researchers found that more lenient dentistry licensing policies did not result in more bad outcomes. Stricter licensing, however, resulted in higher prices and a Ms. Irizarry Reddy disputed the commonly-held idea reduced supply of dentists.31 In the preceding nurse that the court system should ensure accountability and practitioner example, the 10 percent increase in cost be the first recourse in disputes between practitioners that accompanied the restrictions had no effect on and consumers. It’s just not practical, she told the child mortality or malpractice insurance rates. A study Commission. The delays from an already-overwhelmed in Louisiana and Texas found that licensed florists in and backlogged court system would be extensive and Louisiana did not generate any perceivable increase in expensive for the consumer, practitioner and the state. consumer protection while increasing the price of floral The mediation and complaint systems created through arrangements. the licensing boards provide a practical resolution for most problems consumers have, she said, and the In some cases, however, licensure does improve the state should not switch to a system that disadvantages quality of service. A study found that giving building consumers and practitioners.29 contractor licenses to people who previously did not meet licensing requirements resulted in a modest Effects of Occupational Licensing decrease in quality.32 These studies suggest that occupational regulation is nuanced and there is no “one- size-fits-all” policy of regulating who can work. Critics of occupational licensing contend that it raises prices, slows growth and costs jobs. They add that it Slows Growth in Licensed Professions does not provide the same benefits to lower-earning occupations as higher-earning occupations, inhibits entrepreneurship and is subject to political forces that According to Dr. Kleiner’s research, working in a favor practitioners over consumers and the unlicensed universally licensed occupation appears to increase without justifiable protections to health and safety. In hourly earnings by 10 percent to 15 percent compared other words, licensing causes unwarranted barriers to to unlicensed individuals with similar qualifications.33 entry to many occupations. Working in an occupation that is licensed in some states, but not others, results in a 5 percent to 8 percent increase in wages.34 Due to grandfather clauses often Raises Prices Without Always Increasing the included in legislation, it typically takes 10 years to see Quality of Service the effects of licensing on employment. By the end of the initial 10 years following the legislation, entry Witnesses told the Commission that occupational into occupations is limited. Employment growth in an licensing essentially is the government granting a occupation that is licensed in one state will be slower monopoly to a subsection of service providers within than in a state that does not license it.35 Dr. Kleiner a given occupation. The results are what economists estimates that occupational licensing restrictions expect from a monopoly: higher prices and fewer have resulted in approximately 2.8 million fewer jobs providers. Dr. Kleiner’s research found that licensing nationwide.36 raises prices by 5 percent to 33 percent, depending on occupation. Restrictive licensing for dentistry, for example, raises prices between 8.5 percent and 18 percent. Restrictions on nurse practitioners raise the 20 | www.lhc.ca.gov Occupational Licensing in California Benefits are Concentrated in Higher-Income entrepreneurship are key to upward mobility, researchers from the Goldwater Institute combined data from the Professions Institute for Justice and Kauffman Foundation and found that states that license more lower-income occupations Increases in wages and limited competition are most have a lower entrepreneurship rate. They also found concentrated in higher-paying licensed occupations, the converse: states that license fewer lower-income such as physicians, dentists and attorneys.37 The effect occupations have a higher entrepreneurship rate.41 of licensing on wages and limiting competition for lower- income occupations, including those that have expensive Professional and occupational organizations argue that educational or training requirements such as teachers, consumers are receiving better services in exchange nurses and cosmetologists, range from little to none.38 for the higher prices: Better-trained dentists with more This suggests that middle- and lower-class occupations training, for example, provide a higher quality of care for are the least likely to enjoy the financial benefits from the consumer with higher-quality equipment because of licensing. better standards. But economists worry that, particularly in high-income income professions such as dentistry and Services are Standardized, Entrepreneurship law, wealthier consumers can steer the supply of services Suffers away from the reach of low- and middle-income consumers. If wealthier consumers demand the highest standards of Occupational licensing requirements standardize service. cosmetic dentistry as the basis for licensing requirements, Professional and occupational organizations argue that for example, lower-income consumers who might care standardization improves service and reduces uncertainty more about access to fillings and root canals might find in consumers’ minds. Critics argue that standardization themselves with less access to services and at a higher price. inhibits innovation and entrepreneurship. Jason Wiens of the Kauffman Foundation offered the example of Inhibits Interstate Mobility barbershops. The foundation worked with someone who wanted to open a mobile barbershop, though the State licensing requirements make it difficult for many regulations of that state required a fixed location for a to work in states other than the one that licensed them barbershop. State officials were unwilling to work with due to different training or educational requirements. the entrepreneur to find a solution that would allow for One expert gave the following example: Anyone who the mobile barbershop. Eventually he gave up on his attended one of the approximately 40 non-American Bar idea even though he had data indicating demand for that Association (ABA)-accredited law schools in California service.39 is ineligible to sit for the bar exam in Minnesota, no matter whether his or her school was accredited by The problem becomes magnified with low-income the California Committee of Bar Examiners, how well entrepreneurship. Decades of research have shown he or she performed on the California Bar Exam or entrepreneurship in low-income populations is an how distinguished his or her career in California.42 The important path out of poverty. The University of attorney would need to re-complete his or her law school Michigan’s Panel Survey of Entrepreneurial Dynamics education at an ABA-accredited school in order to sit for found that nearly 40 percent of nascent entrepreneurs the Minnesota Bar Exam. live in low- and moderate-income areas. Nearly 10 percent of emerging entrepreneurs come from While these policies affect anyone who moves across households below the poverty line. Researchers state lines, they often fall hardest on those who can least from the Aspen Institute followed 1,500 low-income afford them. In the example above, non-ABA law schools entrepreneurs for five years, and found that 72 percent often educate people with families and are working full- of them increased their household income by an average time jobs while in school43 – people who might move of $15,000 during the study period. Fifty-three percent across state lines for reasons other than their job and moved out of poverty.40 who might not have the resources to take out more loans to repeat their law school education. Working under the assumption that policies that promote Military families also are disproportionately affected Little Hoover Commission | 21 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers by occupational licensing laws, which will be discussed defined, rent-seeking is an attempt to influence the further in the next chapter. Veterans may be trained political, social or other environment to achieve an for an occupation in the military only to discover economic gain for oneself without contributing to upon discharge that they do not meet state licensing productivity.45 In occupational licensing, the rules serve requirements. Service members’ spouses and sometimes to keep competitors out of the industry. Most of the working-age children may discover that they are not time, experts told Commission staff, the groups behind eligible to work in their occupation when the service requirements for occupational licensing are industry member is transferred to a new state. Simply requiring that all state licenses be portable across “Usually it’s not consumer groups going to the state lines would not necessarily solve the problem, Legislature and saying that consumers need however. With licensing regulations varying wildly protections from certain practitioners. It’s the other across the nation, it often would be difficult to tailor way around. It is practitioners telling legislators, a set of licensing requirements to meet every other state’s requirements. Some occupations have a national ‘you need to protect consumers from us.’” standard developed by a credentialing or professional Jason Wiens, Policy Director, Kauffman Foundation association. The standards set by a private organization do not always put consumers first, and sometimes may create as many barriers as would be removed by adopting a national standard. For example, the national associations trying to create regulations to keep out the standard to become a physician assistant, set by the competitors.46 Accreditation Review Commission on Education for the Robert Fellmeth of the Center for Public Interest Law Physician Assistant, was recently changed to require explained that occupational regulation does not reflect a master’s degree to become a physician assistant. the consumer’s point of view due to the concept of California previously had a pathway to becoming a concentrated benefits and diffuse (sometimes called physician assistant through its community colleges. dispersed) costs.47 This is a key point in what political Because community colleges are unable to award masters scientists call public choice theory. The higher costs degrees, this pathway is now no longer an option.44 By caused by occupational licensing are dispersed among adopting the national standard California has solved the a large number of consumers, while the benefits are reciprocity problem, yet has enacted more barriers to limited to a relatively small number of practitioners. upward mobility for lower-income Californians. Therefore, the practitioners who receive the benefit have The state should consider license portability and strive an incentive to lobby and take other action to protect to make its licenses reciprocal where possible. In some their benefit. Consumers, on the other hand, might cases, it may not make sense for the state to have spend more to lobby against the regulation than the reciprocity with every state, but it could grant partial increase in cost they would pay for the service due to a reciprocity with some states with similar licensing functional monopoly. Quite simply, witnesses told the requirements. In situations where meeting a national Commission, practitioners benefit from the system, not or other states’ standards would create more barriers to consumers, and certainly not the workers who are unable entry for Californians, the licensing boards should explain to become practitioners. to the sunrise and sunset review committees why the state is not opting for reciprocity. Gatekeeping and Inequality The Political Forces of Licensing The effects and political nature of occupational licensing combine to create formidable challenges for those with Occupational licensing regulations are made in the fewer means. Licensing requirements protect those who name of protecting the public interest. The reality, are already licensed at the expense of those who are not, witnesses told the Commission, is that occupational and California licenses more occupations traditionally regulation often amounts to rent-seeking. Briefly entered into by lower-income people than nearly every 22 | www.lhc.ca.gov Occupational Licensing in California other state. The financial and time costs to become existence. Legislation to improve occupational licensing licensed are not insignificant. Licensing results in higher often targets the Department of Consumer Affairs. For prices and reduces the availability of services to lower- example, if a recent bill, AB 1939 (Patterson, 2016), had income people. The costs of organizing to be represented passed, it would have required the Legislative Analyst’s in occupational regulation often are insurmountable Office to review the occupations under the Department for the underrepresented. Though the testimony of of Consumer Affairs and identify any unnecessary barriers economists, researchers and legal experts featured to entry.49 prominently in the Commission’s hearings, it is important to remember that for most Californians, this conversation The focus on the Department of Consumers Affairs is not academic. It is many Californians’ reality in a misses the enormous numbers of Californians who are society with ever-increasing income inequality. licensed by other entities. More than 250,000 people are licensed by the State Bar.50 The Department of Insurance Licensing Silos and Missing Data licenses some 390,000 insurance agents and brokers.51 The California Teacher Credentialing Commission licenses more than 295,000 teachers.52 Other departments Policymakers focus much of their attention on the license smaller numbers of Californians. The California Department of Consumer Affairs because the boards, Department of Public Health licenses nursing home bureaus, commissions and programs under its umbrella administrators and certified nursing assistants. The license so many Californians. More than 3.5 million Division of Labor Standards Enforcement under the individuals and facilities are licensed by the department Department of Industrial Relations licenses farm labor across more than 250 occupations.48 Proposals to contractors. No government official asked was able to license new occupations under the department must provide the Commission with a comprehensive list of undergo the sunrise review process discussed previously. every licensed occupation in California. New rules made by the boards and bureaus under the department are subjected to a public rulemaking It is impossible for the state to holistically evaluate its process. Every four years the department’s licensing performance in protecting the public and determine authorities undergo legislative scrutiny to justify their Discrepancies in Occupational Requirements The discrepancies in requirements to become manicurists and tattoo artists highlight the need to review California’s occupational regulations. Both occupations involve hands-on contact with customers’ bodies. Practitioners of these occupations are exposed to bloodborne diseases, bacteria and fungi, yet the requirements to work in each occupation vary dramatically. Manicurists must complete at least 400 hours of classwork and training. At some schools this costs thousands of dollars. They then must take written and practical exams before becoming licensed. The practical exam only is offered in two cities: Fairfield and Glendale. Applicants are assigned dates for both portions of the exam and are unable to reschedule the date assigned to them for the practical exam. If they cannot travel to one of those two cities on the date assigned to them, their candidacy is terminated, they lose their application fee and they must begin the application process all over again. Conversely, tattoo artists must register with their county’s public health department, provide proof of Hepatitis B vaccination and take an annual two-hour bloodborne pathogens class, available online for $25. If state and local governments successfully protect consumers through the lighter regulatory regime for tattoo artists, state officials might consider whether the burdens imposed on aspiring manicurists are justifiable and whether lower levels of regulations might result in the same public safety outcomes. Little Hoover Commission | 23 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers whether it is unnecessarily acting as a gatekeeper to to assess which pathways applicants are using to enter upward mobility if there is no single authority that the occupation. knows who is licensed. Fortunately, there currently is Given the impact of licensing on prices, availability, an initiative underway that can provide the groundwork. wages both inside and outside the licensed occupation, Dr. Kleiner, funded in part by the Kauffman Foundation geographic mobility and entrepreneurship, it is critical and Smith Richardson Foundation, is cataloguing the that the state be absolutely sure that effects are justified nation’s universally licensed occupations. The goal is to by the consumer health and safety provided by each provide data for a comprehensive cross-comparison study regulation. Most licensing authorities were created of licensing. Most academic studies of occupational before the institution of the sunrise process, and never licensing focus on a single occupation because getting had to prove that the level of regulation requested was data from multiple states is time-consuming and difficult. necessary to protect consumers. The sunset review The work is expected to be completed within a year.53 process cannot completely escape political forces, California officials across all departments that license and requires a small legislative staff to sort through a one or more occupations should work with Dr. Kleiner mountain of data compiled by the very boards under to share their licensing data with this initiative, as the review in a relatively short period of time. results of cross-comparison studies based on this data would help inform evidence-based policy decisions. It is long past time for a nonpartisan research body to They should then build on this effort and catalog all of sift through the complete body of California’s licensed California’s licensing requirements in a single, easily occupations to determine whether each requirement and publicly accessible location, so that policymakers justifiably protects public health and safety, then make and stakeholders can better understand the extent of recommendations for legislative action. California has California’s licensing regime. the opportunity to participate in just such a venture. The U.S. Department of Labor is issuing a grant of Knowing which occupations are licensed in the state is up to $7.5 million to consortia of states to examine only a start, however. For most occupations, demographic licensing criteria, licensing portability issues and information is collected on a voluntary basis; the whether licensing requirements are overly broad or Legislature must authorize mandatory collection of burdensome.55 Additionally, the Department of Labor information. The reasoning behind this is valid: “The indicates that states may consider the approaches to person who decides whether someone receives a license licensing to protect public health and safety, such as should be blind to the individual’s race and ethnicity,” said certification.”56 The Upjohn Institute of Employment Department of Consumer Affairs Director Awet Kidane. He Research is organizing a consortium of states to apply for went on to say that he believes in the utility of data and grant funding, and has invited California to participate. that demographic information in the aggregate would be The opportunity to evaluate California’s licensing laws helpful, but licensing and enforcement authorities should with the assistance of federal funding, a nonprofit to not have an individual’s demographic information in front coordinate the work, and the expertise of economists of them while they’re making decisions.54 such as Dr. Kleiner is too valuable to squander. California should accept the Upjohn Institute’s invitation and Not collecting demographic data, however, leaves the begin reviewing its licensing laws and regulations across state unable to track whether a licensing requirement is all licensing authorities, not just the Department of having an adverse racial, gender or other demographic Consumer Affairs. impact. As will be discussed further in the next chapter, there is significant anecdotal evidence that some Finally, California’s sunrise and sunset review process is licensing requirements harm certain groups. But without critical to ensuring occupational regulation erects the data, it is difficult to know for certain. The Legislature fewest barriers to entry into occupations while protecting should authorize the collection of demographic data, health and safety. It is incumbent upon the state to including race, ethnicity, gender, age, education level provide the committees that carry out this important and languages spoken. For some occupations, it may be function with the resources they need. For future beneficial to collect other types of data, such as specific sunrise and sunset reviews, the Legislature should fund pre-licensure programs the applicant completed in order additional resources to assist the Assembly Committee 24 | www.lhc.ca.gov Occupational Licensing in California on Business and Professions and Senate Committee Recommendation 3: The Legislature should require on Business, Professions and Economic Development reciprocity for all professionals licensed in other states to verify information submitted to the committees. as the default, and through the existing sunset review This could take the form of dedicated analysts within process, require boards to justify why certain licenses the committees or funding for additional help from should be excluded. Specifically, licensing boards should nonpartisan research bureaus or consultants outside the be required to: committees. When the data supplied by licensing entities is incomplete or questionable, legislators should request  Identify whether licensing requirements are the an audit by the state auditor. same or substantially different in other states.  Grant partial reciprocity for professionals Recommendations licensed in states with appropriately comparable testing and education requirements. Recommendation 1: The Legislature should authorize the mandatory collection of demographic information for license applications across all licensed occupations Recommendation 4: The Legislature should fund in California, including those outside of the Department additional resources, in the form of additional staff or of Consumer Affairs. This demographic information outside support, to assist the Assembly Committee on should not be made available to staff members issuing Business and Professions and the Senate Committee licenses or conducting enforcement actions, but should on Business, Professions and Economic Development be studied in the aggregate to determine the impact of in verifying and evaluating information for sunrise licensing requirements on different demographic groups. and sunset reviews. The Legislature should request the California State Auditor conduct an audit when Recommendation 2: The State of California should join warranted. a consortium of states organizing to attain federal funding to review their licensing requirements and determine whether those requirements are overly broad or burdensome to labor market entry or labor mobility, particularly for individuals who have moved to California from another state or country, transitioning service members, military spouses and former offenders. As part of this process, the state should consider whether there are alternative regulatory approaches that might be adequate to protect public health and safety, including, but not limited to, professional certification. Little Hoover Commission | 25 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers Pathways to Upward Mobility At the heart of all conversations about occupational maintain their career is an important factor when regulation are people: protecting people, removing deciding whether to remain in the service – and barriers for people, enabling upward mobility for people. Department of Defense personnel say they lose The 2015 White House Report on occupational licensing some of their best people because of spouses’ described several groups of people particularly vulnerable career difficulties. Ensuring that military spouses to occupational licensing laws: former offenders, military have rewarding careers has a positive impact on spouses, veterans and immigrants.57 With ever-increasing national security. economic inequality, policymakers must think about the  Veterans: Veterans may be trained in the service impact of occupational licensing policies on vulnerable in occupations that are licensed in the civilian groups. That is, how to create pathways for upward sector. Sometimes, upon separation from the mobility for those who have the hardest time becoming military, they have difficulties gaining credit for employed – even though they may be qualified. In their military education and experience and have this chapter, the Commission explores how the groups to begin again. Not only does this impose a cost identified in the White House report fare in California on the veteran, it also affects taxpayers who pay and offers recommendations on how the state can break for the veteran to learn an occupation in the down the barriers preventing them from finding good military, then pay for it again upon separation jobs: through the G.I. Bill. Lawmakers have been proactive in passing laws to make it easier for  Former Offenders: People with convictions on veterans to become licensed. The Commission their record often face difficulties in becoming learned, however, that there may be a disconnect licensed. They typically must demonstrate between the intent of the laws that were passed that their convictions were not substantially and the reality on the ground. related to the duties of the occupation, or if their convictions were, that they have been  Foreign-trained Workers: Workers trained in rehabilitated. The problem is that “substantially other countries often possess the skill sets for related” and “rehabilitated” are not always occupations in which California faces shortages, clearly defined. Advocates report encountering but there are a number of obstacles preventing some arbitrariness in licensing authorities’ them from gaining licensure in the state. Many decisions. Further, appealing a denial can be have gaps in their training or experience. But confusing and expensive for former offenders. there are few gap, or bridge, education programs to quickly fill those gaps, forcing them to begin  Military Spouses: Military spouses suffer when again. Even those fully qualified may not be their licenses do not transfer across state lines able to practice due to licensing statutes and with them. Already at a disadvantage when regulations. This matters because California job searching because employers know they not only needs qualified personnel to meet its will likely move again in a few years, starting impending shortages, but it particularly needs over by spending a year or two redoing professionals who are fluent in languages other licensing requirements further diminishes their than English and familiar with other cultures – employability. The cost of lost job opportunities needs that foreign-trained workers can easily and of repeatedly meeting licensing requirements meet. is considerable to military families. Most service members say their spouses’ ability to 26 | www.lhc.ca.gov Pathways to Upward Mobility This chapter offers recommendations to help these minimum wage.65 The ability of former offenders to hold groups more easily enter occupations, without stable jobs is enormously important to society. overhauling California’s regulatory regime or reducing standards. Further, these recommendations will help Nationally, there is an ongoing bipartisan conversation all Californians – not just those belonging to vulnerable about the loss of employment as a collateral groups – more easily enter licensed occupations: a rising consequence of incarceration. In November 2015, tide that lifts all boats. President Obama directed federal agencies to “ban the box.” Ban the box refers to not asking applicants Former Offenders about their convictions on the initial job application, instead waiting until later on in the hiring process to discuss convictions. Twenty-four states and more than Approximately eight million Californians have criminal 100 counties and cities also have adopted ban the box records.58 Ninety-six percent of Californians who are sent policies.66 More than 100 companies, ranging from to prison will re-enter their communities.59 This figure Google to Coca Cola, also have pledged to give people does not include the thousands of Californians who are with convictions opportunities to work there through sent to county jails for lesser offenses, who also will re- actions such as banning the box, providing internship enter their communities after completing their sentences. opportunities to ex-offenders and hosting job fairs for In 2012, more than 18,000 prisoners were paroled and former offenders.67 Yet these efforts are limited in their nearly 29,000 offenders were released from prison to effectiveness if people with convictions on their records post-release community supervision.60 Tens of thousands face barriers to obtaining the credentials needed to work. more are released from county jails every year. A 2015 survey found that nearly 35 percent of unemployed men The Problems Former Offenders Encounter had a criminal record.61 Former offenders are most likely to recidivate in their first year after release.62 A 2008 in Being Licensed Urban Institute Justice Policy Center Study found that at fewer than half of the former offenders were employed Several levels of regulation and guidelines govern how at eight months after release.63 former offenders may be licensed. Licenses issued by the entities under the Department of Consumer Affairs are regulated by the California Business and Professions “…no available evidence demonstrates that the Code, which states that a license may be denied if the mere existence of a criminal record is related offense is substantially related to “the qualifications, to poor occupational performance or low- functions, or duties of the business or profession for quality services. In other words, simply having which application is made.”68 Convictions that are not some type of a past record does not predict an substantially related are not supposed to be a cause for individual’s ability to perform in an occupation.” denial. The Business and Professions Code also says that Michelle Natividad Rodriguez, Senior Staff Attorney, licenses cannot be denied if applicants meet the criteria for rehabilitation. The Business and Professions Code National Employment Law Project goes on to give the boards, bureaus, commissions and programs under the Department of Consumer Affairs A job does not guarantee successful re-entry into society. authority to develop the criteria for what constitutes That requires housing, mental and physical health care “substantially related” and “rehabilitation.”69 and other services tailored to the specific needs of the individual. But researchers have found employment The many licenses issued by other licensing authorities is essential to helping former offenders. In addition are governed by a patchwork of laws across many legal to allowing former offenders to support themselves codes that, as one witness told the Commission, may and their families, a job develops pro-social behavior, allow license denial even for a conviction not substantially strengthens community ties, enhances self-esteem and related to the duties of the occupation.70 Under federal improves mental health – all of which reduce recidivism.64 law for example, the Insurance Commissioner must These effects are strengthened the longer the individual provide permission for anyone convicted of a felony holds the job and especially when it pays more than Little Hoover Commission | 27 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers involving dishonesty or breach of trust who wants to people. For example, sex offenders may not be licensed work in the business of insurance, including jobs without as teachers.75 Beyond that, however, it is often up to the access to sensitive information.71 Hearing witness CT discretion of the licensing entity. This is problematic for Turney, a lawyer for the Los Angeles-based A New Way former offenders who must decide whether to invest in of Life Reentry Project, told the Commission that often the education, training, and application process – which licensing entities have internal guidelines that further often requires an expensive test and fees – when there determine how a former offender is evaluated. While is no certainty they will be eligible for licensure. For these criteria usually can be obtained through a Freedom example, individuals applying for employment at facilities of Information Act request, they’re sometimes not easily licensed by the Department of Social Services technically available to applicants.72 may be denied employment for anything beyond a traffic violation.76 Applicants face similar challenges in some occupations that technically are non-licensed. California licenses The problem, however, with creating a list of automatic many types of facilities, and the regulations governing the disqualifications is the state loses the flexibility to assess facilities’ licenses may have employment requirements applicants according to the nuances of their offenses. that make it difficult for former offenders to find Awet Kidane, director of the Department of Consumer employment. Witnesses cited the California Department Affairs told the Commission, “There is a difference of Social Services and the Department of Developmental between a doctor who gets a DUI driving home after a Services as two examples for which employees would shift versus a doctor who gets a DUI on the way to the “provid[e] care for children, elderly, and developmentally operating room.”77 Licensing officials reiterated the need disabled adults”.73 CT Turney emphasized that the ability for flexibility throughout the Commission’s study process. to work in these types of jobs is important to the re-entry One licensing board cited the case of a woman convicted community.74 of assault that, when it examined the case, transpired to be a mother confronting someone who assaulted her child. By outright rejecting assault convictions, licensing “When policies and decisions are made based officials warned, people who pose no legitimate threat to on visceral fear rather than on a reasoned consumers also will get caught in that net. analysis of actual risk, they reach far beyond Director Kidane told the Commission that his department the justification of public safety. Instead they constantly evaluates room for improvement in licensing merely serve as additional punishment for former offenders. He said there is significant discussion a past offense. In the process, such policies about what “substantially related” means and of what impose greater burdens on individuals, who constitutes “mitigating circumstances.”78 Representatives lose out on stable work and better pay, and on from other licensing entities also told the Commission communities, who lose out on financially stable that they, too, aim to improve their licensing processes members as well as the services of otherwise for former offenders. qualified professionals.” CT Turney, Senior Staff Attorney, Background Checks A New Way of Life Reentry Project Applicants with criminal convictions on their records face another barrier: what CT Turney called the candor trap. Applicants often are asked to list criminal convictions on The Tradeoff Between Certainty and Flexibility their applications, as well as undergo background checks. If the convictions an applicant lists do not match the There is a fine balance between outlining specific convictions on the background check, the applicant may offenses that will disqualify an individual from licensure be disqualified for lying. CT Turney explained there are and leaving licensure requirements vague enough to reasons an applicant may unintentionally err when listing allow for flexibility. For some occupations in California, previous convictions. Many, particularly those who are there are a few crimes that automatically disqualify less educated or legally unsophisticated, see three lines 28 | www.lhc.ca.gov Pathways to Upward Mobility on the application and assume they only need to write and not straightforward. When applicants appeal a broad overview instead of obtaining police reports denials, advocates said, they often believe they are and a lawyer to get the details right. People also often simply meeting with licensing board officials to explain do not remember their conviction histories correctly. their convictions. In some cases, however, they find People with 30-year-old convictions or addiction or themselves in formal legal hearings overseen by mental health issues, and those who have accepted administrative law judges with attorneys representing plea agreements to charges differing from what they the licensing boards. There, they discover they need remember being arrested for, often unintentionally to present evidence and witnesses to prove they meet make misstatements on their application form. All certain legal standards. People often do not understand of society loses when former offenders cannot get a the process, CT Turney said, and the client base A New good job because they were automatically disqualified Way of Life Reentry Project serves often cannot afford due unintentional misstatements not matching their attorneys. Further, very few organizations provide pro background checks. bono occupational licensing-related legal services to low- income applicants. Applicants often lack the knowledge The Department of Insurance offers an alternative or experience to defend themselves against state model to learn about applicants’ criminal convictions. attorneys, advocates said, and consequently, often lose.84 The department asks applicants to submit certified court documents regarding their convictions with their An intermediate review process would help mitigate applications. In this way, applicants are not inadvertently some of the barriers these applicants face. That caught in the candor trap. However, this model comes process, between an applicant’s initial denial and an with a price: Applicants pay $32 for a state background administrative law hearing, allows applicants to meet check, $17 for a federal background check, plus fees with licensing officials and explain why they believe their charged by the live scan locations and the costs of denial was erroneous. Advocates cited the good results procuring other requested documentation.79 The state of the Bureau of Security and Investigative Services’ has a fee-waiver program for low-income applicants intermediate review program as a model for other for the state background check, but there is room for licensing authorities.85 Further, because administrative improvement. Applicants must first apply for a fee waiver law proceedings require judges, lawyers, and court and cannot proceed with their background check until reporters, they are costly for the state. Instituting an they receive a response, which can take several weeks. intermediate review process between licensing entity Then they must wait for the background check, which also officials and the applicant could save the state money. takes several weeks.80 Implementing instant responses to requests for fee waivers would make important progress in Steps to Help Former Offenders Gain getting applicants to work faster, advocates said.81 Employment Complex Appeals Process The entire community benefits when former offenders are gainfully employed. Yet as a group they face severe Application processes vary by licensing authority. But obstacles when looking for work. Easing licensing in general, when individuals with convictions on their barriers does not mean unconditionally allowing former records apply for licenses, their applications are flagged offenders to work in any job. No one suggests allowing and reviewed by analysts, who are not necessarily legal convicted child molesters to become schoolteachers or professionals. In many cases, these analysts work with convicted elder abusers to become nurses. But a 10-year- internal guidelines based on the licensing authority’s old drug conviction should not keep individuals from interpretation of substantially-related duties and finding a job to support themselves and their families. rehabilitation. Advocates working with former offenders said that sometimes denials seem arbitrary.82 As discussed in the previous chapter, a thorough review of all of California’s occupational licensing regulations Many applicants do not appeal denials because they is needed and part of the review must include whether are intimidated, advocates told the Commission.83 there are unnecessary barriers for ex-offenders. In the When applicants do appeal, the process is expensive Little Hoover Commission | 29 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers meantime, the state can take steps to ease barriers to Department of Consumer Affairs is a logical choice to licensing for former offenders. Among them: develop best practices for licensing former offenders. The Department of Consumer Affairs also should share  Make the criteria licensing authorities use to its best practices with licensing authorities not under its evaluate former offenders more transparent. purview, and periodically coordinate roundtables with Some licensing authorities do this, and the rest these other authorities to promote the exchange of ideas should follow suit. The Commission recognizes and assess whether California is helping its eight million that the final determination of whether a license residents with criminal records find employment. is issued or not results from a conversation between the licensing authorities and the Those Who Serve applicant. The Commission understands that addressing applicants with convictions on a case- Separating service members and military spouses also by-case basis allows flexibility. But applicants are hard hit by occupational licensing regulations. Every should not have to file Freedom of Information few years there is a burst of legislation designed to ease Act requests to know the guidelines by which the barriers they face, yet on-the-ground reports say they will be evaluated. Having this information that little changes. The men and women who serve our up front can help potential applicants make country, as well as their families, deserve better than informed decisions about how to invest their to be kept out of occupations for which they qualify. time and resources. California must focus less on new legislation and more on  Follow the Department of Insurance model implementing past legislation. by relying on background checks and court documents for reviewing convictions. For Military Spouses occupations that require background checks, the licensing authority should not rely on applicants’ Military spouses are particularly vulnerable to state recollection of convictions to make its decision. licensing laws. In the civilian population, approximately Requiring applicants to outline their criminal 1.1 percent of spouses move across state lines each year histories in addition to a background check due to their spouse’s job. In the military population, serves no purpose. The state also could make 14.5 percent of spouses move across state lines annually. its background check fee waiver more efficient Thirty-four percent of military spouses hold occupational for low-income applicants so they do not have to licenses, and 19 percent of military spouses report wait as long to begin working. challenges in maintaining their licenses through moves.86  Institute an intermediate review process within the licensing authorities that do not have one. “We know that most decisions to stay in the Some licensing authorities keep the lines of military are made around the kitchen table and communication open with applicants throughout not in the personnel office. To retain our trained the entire application process, while others do and experienced military, we must retain the not. An intermediate review process allows family. … Sixty-eight percent of married service applicants who are not legally sophisticated to members reported their spouse’s ability to discuss problems with their applications with maintain a career impacts their decision to licensing authorities before it turns into an remain in the military by a large or moderate administrative law hearing. This saves the state extent, thus making the ability of the spouse money as well. to obtain a professional license in each state of assignment an influence on national security.” Though the specific convictions that qualify as “substantially related” will vary by occupation, the Laurie Crehan, Regional State Liaison, Southwest, principles guiding the development and application of Office of the Deputy Assistant Secretary of Defense, those standards will not. As the umbrella organization Military Community and Family Policy over most of the state’s licensing authorities, the 30 | www.lhc.ca.gov Pathways to Upward Mobility This affects more than the military spouse, however. for lower-ranking service members. Secondly, being Sixty-eight percent of married service members report employed, many military spouses report, provides a their spouse’s ability to maintain a career affects their distraction and boosts their morale while the service decision to remain in the military.87 “We lose good member is deployed.89 service members and we see this as a national security issue,” a Department of Defense witness told the Veterans Commission.88 Military spouses report that employment is critical for two reasons. One, it is difficult to support a More than one million service members are expected family on the service member’s salary alone, particularly to leave military service and enter the civilian workforce between 2014 and 2020,90 joining the approximately 11 million veterans of working age.91 California, home to Helping Military Spouses Become approximately 1.9 million veterans, has more veterans Licensed than any other state.92 Though the unemployment rate for veterans in general is not significantly different from The Department of Defense asks state licensing that of the civilian population, there is an important boards to do three things to help military spouses exception: Male veterans between the ages of 25 and gain licensure in a new state: 35 post-September 2001 (what the U.S. Bureau of 1. Endorse the license if a military spouse or Labor Statistics defines as the Gulf War II era) have a separating service member holds a license significantly higher unemployment rate than their civilian significantly similar to the state’s license. If counterparts, at 6.8 percent versus 5.4 percent.93 As military spouses must spend a year or two nearly half of the veterans in the Gulf War II era are 25- becoming re-credentialed, they become 35 years old,94 their higher rate of unemployment is a virtually unemployable – as employers know challenge states must address. their service member spouse will soon be transferred again. The primary occupational licensing problem for separating service members is licensing boards’ not 2. Issue temporary licenses. Allow military accepting their military-acquired knowledge, skills spouses to work under the direction of others and abilities toward credentialing requirements. This who are fully licensed while they complete the common roadblock impacts taxpayers as well as service state licensing process. members, noted Commission witness Laurie Crehan, of 3. Expedite the licensing process. It takes too long the Department of the Defense. Taxpayers foot the bill to collect and validate paperwork, a problem twice to train service members for the same job: the first compounded by licensing tests that are offered time while they’re in the military, then again following infrequently. The Department of Defense asks discharge to meet licensing requirements.95 states to simply take the supporting documents applicants supply and allow them to practice The Department of Defense is taking steps to make instead of waiting while the documents are it easier for state licensing boards to credit military being verified. If there is a problem with the experience and education to licensing requirements. documents, the licensee’s ability to practice can In the past, each branch of the military had its own be revoked. transcript for the education its service members received. The department now has a standardized The Department of Defense stresses that it is not transcript so that employers can more easily understand asking states to remove or dumb down standards, the document. The department has hired consultants only to make the licensing process more flexible to to cross reference the knowledge, skills and abilities support service members and their spouses. acquired in each military job to their civilian equivalent. Finally, the military is working with the American Council Source: Laurie Crehan, Regional State Liaison, Southwest, Office of the Deputy Assistant Secretary of Defense, Military Community and Family of Education to analyze military training to see if it meets Policy. February 12, 2016. Phone call with Commission staff. the rigor, content and criteria for college credit. The goal is to prevent separating service members from having to Little Hoover Commission | 31 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers start from scratch. Many need only “bridge education”  AB 1904 (2012, Block): Requires DCA boards to (also called gap education) to fill in the gap between what expedite licensure for military spouses. they learned in the military and what they need to learn  AB 2462 (2012, Block et al.): Requires the for their license.96 However, even after all this work, the Chancellor of the California Community College Department of Defense cannot force licensing boards to to determine which courses should receive use these translations to credit veterans for their past credit for prior military experience, using the experience or to provide bridge education programs. descriptors and recommendations provided by the American Council on Education. “Taxpayers pay for the service member to  AB 2783 (2010, Salas et al.): Requires DCA boards be trained twice. Once while in the military, to promulgate regulations to evaluate and credit then again when the service member returns, military education, training, and experience if through the GI Bill.” applicable to the profession. Laurie Crehan, Regional State Liaison, Southwest, Despite the state’s having enacted appropriate legislation, Office of the Deputy Assistant Secretary of Defense, the Commission heard anecdotally that veterans and Military Community and Family Policy military spouses still face difficulties in becoming licensed. No studies or implementation tracking have been done to assess how effectively the legislation has Legislative Fixes, but What Progress? been implemented. One glaring omission in the above legislation is state licensing authorities outside of the Enacting legislation to make employing veterans and Department of Consumer Affairs. military spouses easier is popular. Since 2010, California has enacted numerous laws to ease licensing barriers Experts identify common problems in state laws for veterans and military spouses. Some are limited nationwide intended to ease licensing barriers for to specific occupations, while others are far-reaching, veterans and military spouses: including:  Broadly written laws provide too little guidance.  SB 1226 (2014, Correa): Requires Department  Veterans may be unaware of their licensing of Consumer Affairs (DCA) boards to expedite eligibility. licensure of honorably-discharged veterans. Took  Legitimate skills gaps may go unaddressed. effect July 1, 2016.  AB 186 (2014, Maienschein): Requires DCA  Insufficient partnerships between state, schools and the military. boards to issue 12-month temporary licenses to military spouses with out-of-state licenses  Lack of consistent metrics to measure licensure for the following occupations: registered nurse, challenges.97 vocational nurse, psychiatric technician, speech- language pathologist, audiologist, veterinarian, Many laws are in place in California. But we do not all licenses issued by the Board for Professional know if they are having the desired effect. Because the Engineers, Land Surveyors and Geologists and all retention of experienced military personnel depends on licenses issued by the Medical Board. spouses’ ability to hold a job – making military spouse  AB 1057 (2013, Medina): Requires DCA boards to licensure a national security concern – and because renew licenses that expire while an individual is helping veterans secure gainful employment after their on active duty without penalties or examination. service is often stated as a policymaker priority, the  AB 1588 (2012, Atkins): Requires DCA boards to Commission recommends that the Legislature authorize a research institute to work in collaboration with the waive renewal fees for licenses that expire while Department of Defense to conduct a study on the the practitioner is on active duty. implementation of the legislation listed on this page. The 32 | www.lhc.ca.gov Pathways to Upward Mobility review should identify gaps between the intent of the the licensing board may not be able to translate the laws and practice outcomes, and issue recommendations applicant’s foreign education and experience to the for executive or legislative action on how to bridge board’s requirements. Often, there will be differences those gaps. The review should examine and include between the education and experience an individual recommendations on whether the legislative focus on needs to successfully practice in an individual’s country the Department of Consumer is sufficient or whether of origin and what the individual needs to practice policymakers should encourage other departments to successfully in California. A researcher from the prioritize veterans and military spouses. The review Migration Policy Institute writes: also should assess licensing authorities’ outreach efforts to inform veterans that they are eligible for expedited “Perhaps the central problem that makes licensing, and provide recommendations on how the credential recognition difficult is that foreign state can better educate veterans about these benefits. professionals, especially the newly arrived, are not interchangeable with their locally trained The beneficial effects of finding work are personal. A counterparts. … Professionals with the same job representative from Swords to Plowshares, a San title do not always perform exactly the same set of Francisco-based nonprofit that provides wraparound tasks in different countries, creating real differences services for veterans including employment assistance, in knowledge and skills gained on the job. In told Commission staff that the impact of not being able to the medical field, for example, different medical secure a job in the field that the veteran has been working procedures and responsibilities may be delegated to in for perhaps the last eight or 10 years is significant. Being nurses as compared to doctors, and to generalists experienced in a field and leaving the military only to as compared to specialists; certain medical devices discover that they are considered unqualified to work in are not as widely available in all countries, giving that field is a rude awakening, she said.98 practitioners less experience in their use; institution or administrative functions such as medical referral Foreign-Trained Workers processes can differ widely; and some health- care practitioners require relatively high levels of language proficiency to communicate with patients The impacts of occupational licensing regulations on out- and colleges.”101 of-state workers were discussed in the first chapter. This problem is magnified when it comes to foreign-trained José Ramón Fernández-Peña, associate professor at San workers. Foreign-trained workers can be a sensitive Francisco State University and policy chair of IMPRINT, subject. To some it conjures images of undocumented an immigrant advocacy organization, testified that there immigrants. To others the topic brings to mind the are few options for bridge education for foreign-trained questionable use of H-1B temporary work permits to hire workers in California who meet all but a few licensing foreign professionals, often in the information technology requirements.102 Many find themselves having to start industry, at lower wages than Americans.99 While these over. In some cases this borders on the absurd. Foreign- issues deserve thoughtful attention by policymakers, they trained doctors with many years of experience, for should not obscure the fact that foreign-trained workers example, must complete an entire residency program to are a legal and dynamic part of California’s workforce, be licensed in the United States, often enduring the same and in many cases, are native or naturalized Californians residency matching process and low pay as students who were educated or trained abroad. freshly graduated from medical school.103 A foreign- trained doctor cannot even work as a physician assistant High-skilled workers who are trained abroad typically in California without completing an approved physician have a post-secondary degree, are more likely than assistant training program.104 Dental hygienists can have others to speak English or take classes to build English equivalent experience in their home country and earn proficiency, and often work in a high-demand field. a perfect score on the exam, but cannot be licensed Currently that field is STEM, or Science, Technology, because they did not graduate from an accredited dental Engineering and Math.100 The licensing difficulties they hygiene program.105 face are similar to those of veterans: An applicant may have the appropriate skill set for the occupation, but Little Hoover Commission | 33 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers Foreign-trained dentists used to be able to become ratios and 135,000 teachers short of national average licensed in California after successfully passing dental student-teacher ratios.111 The greatest deficiency exams, Mr. Fernández-Peña testified. But professional is in mathematics, science and special education.112 associations lobbied to have that right removed. Now Mathematics and science are the fields in which current there are two ways foreign-trained dentists can become waves of high-skilled immigrants are trained.113 Foreign- licensed in California. They can attend a foreign dental trained workers often possess many, if not all, the program that has been approved by the Dental Board qualifications to fill these gaps, if the state eases barriers of California. As the program must teach California that keep them from practicing. Occupational Safety and Health Standards, few foreign schools qualify. Currently, only the University de La Salle California Needs Professionals Fluent in Other in Leon, Guanajuato, Mexico is approved.106 The second Languages and Cultures way to qualify is to take a two-year Advanced Standing Program and earn a Doctor of Dental Surgery degree. California has a diverse population and needs There are four schools in California that offer this two- professionals and workers who can fluently serve its year program, with an average total cost of $150,000, Mr. diversity. Lack of diversity in the health workforce, for Fernández-Peña told the Commission.107 instance, is a contributing factor to racial and ethnic health disparities, witnesses testified.114 In California, Why it Matters that Foreign-Trained 37 percent of the population is Latino, yet only 5 percent Workers Face Barriers to Licensure of doctors, 8 percent of registered nurses and 7 percent of dentists are Latino.115 By 2025, 48 percent of the senior population in California will be non-white.116 By 2025, California will have a shortfall of one million Positive health outcomes will depend on access to workers with four-year degrees and 2.5 million workers geriatric care providers who can communicate with and with other levels of degrees, certificates and diplomas.108 understand them. When qualified foreign-trained workers are stuck working lower-level jobs because they did not graduate from an Inefficient Labor Market Outcomes Result in Lower accredited school or are missing a couple of classes, it Paychecks hurts all Californians. Consumers have a harder time finding service providers and may have to pay more. Lesser-qualified Californians are pushed out of lower- Many high-skilled immigrants take lower-skilled jobs skilled jobs and face unemployment or menial tasks. for which they immediately qualify, or which require Then there are the impacts of a lower income on workers only minimal training, instead of the occupations they and their families. This is an inefficient use of resources practiced in their countries of training. The Migration and it exacerbates growing economic inequality. Policy Institute found that many people accept a lower- skilled position as a more attractive option than starting Professional Shortages are Looming from the beginning again in their own profession.117 California is home to approximately 1.7 million foreign- born, college-educated immigrants. (This figure includes As described above, in fewer than 10 years, California will foreign-born immigrants who were educated in California face a workforce shortfall of approximately 3.5 million and excludes California-born residents who were workers with varying levels of education and expertise. educated abroad.) Of these, 400,000 are unemployed Looking at shortfalls in specific industries gives a clearer or working in low-skilled jobs.118 Sometimes this may picture of how this affects Californians. By 2030, be a lower-skilled job within the individual’s industry, California will have only two-thirds of the primary care such as a physician becoming a laboratory technician. physicians it needs to maintain its current physician- Sometimes this means taking a low-paying job outside of to-population ratio – which already is worse than the the industry. IMPRINT offered the Commission numerous national average.109 By 2030, according to projections, examples, such as foreign psychologists becoming California will have 193,000 fewer registered nurses housekeepers and doctors becoming car wash attendants than it needs.110 California already is 60,000 teachers in the U.S.119 The problem is that these individuals and short to maintain pre-recession student-teacher their families will live on less money than the market rate 34 | www.lhc.ca.gov Pathways to Upward Mobility for their skill sets, and they take lower-skilled jobs from nursing programs that fail to comply: Schools those who legitimately have fewer qualifications. These that are not in compliance by the deadline will be situations aggravate California’s upcoming shortages of stripped of their approval to teach nursing. trained professionals.  It required continuous monitoring of nursing programs’ performance in fast tracking veterans. Models to Get People Working The Board of Registered Nursing must review schools’ policies and procedures for granting The state need not wait for a complete overhaul of credit to veterans for their military education and occupational licensing regulation to reduce the barriers training at least once every five years.122 keeping people out of jobs. Several models exist that could be applied to other licensed occupations. Not all The State Workforce Plan: Mid- of these models are appropriate for all occupations. But Skilled Jobs as a Path to Upward collectively they present a variety of options for workers Mobility already qualified and licensed, and individuals who want to develop qualifications for upward mobility. The state The Commission recommends piloting bridge could implement these programs now to help move people into good jobs. Moreover, none of these models education and apprenticeship programs in the require lessening requirements or abolishing licensing: state’s own facilities. The state also should look They only require policy or statute changes to let people to its own State Workforce Plan and concentrate into the occupations. resources on developing pathways for upward mobility within the areas of expected job needs. California Commission on Teacher Below are the top 12 mid-skilled – defined as needing more than a high school education but Credentialing Model less than a four-year degree – occupations with anticipated worker needs: The California Commission on Teacher Credentialing has a straightforward model for teachers who possess Occupation Annual New Workers out-of-state licenses. It issues licenses to teachers with Needed, 2012-22 a provision that they meet all of California’s education Registered Nurses 9,230 and training requirements during the five years before Teacher Assistants 4,470 they are required to renew their licenses.120 The state could use this model to allow people in other licensed Truck Drivers 4,410 occupations to work while meeting requirements. Nursing Assistants 4,180 Medical Assistants 3,450 Medical Service Technician-to-Registered Licensed Vocational Nurses 3,040 Nurse Model Computer User Support Specialists 2,490 In 2015, the Legislature enacted a bill, SB 466, requiring Preschool Teachers 1,820 nursing programs to grant credit for military education Hairstylists / and training to fast track veterans who were medical service technicians in the military to become registered Cosmetologists 1,750 nurses.121 In this model, the Legislature took several Dental Assistants 1,640 steps to better position the initiative for success: Actors 1,500 Dental Hygienists 1,060  It gave a deadline, January 1, 2017, for nursing programs to have their processes in place to Source: California Workforce Development Board. State begin fast tracking veterans. Workforce Plan.  It gave the Board of Registered Nursing the authority to apply swift and severe sanctions to Little Hoover Commission | 35 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers option to efficiently integrate veterans and others trained This bridge education model could be applied for other outside of California into the workforce. Additionally, veteran employment categories, as well as for workers there are apprenticeships designed to integrate former from outside California to rapidly complete missing offenders into the workforce – sometimes starting while requirements and begin working. the offender is still in prison, through the Prison Industry Authority. These often operate as pre-apprenticeship The Apprenticeship Model programs focusing on training, with the offender eligible to join an apprenticeship program upon release.125 Though hundreds of years ago apprenticeships were Approximately 70 percent of California’s apprenticeships gateways into the original guilds, which limited who are in the construction industry.126 The prevalence of could practice an occupation, today they represent construction apprenticeships likely can be attributed an opportunity for inclusion into, instead of exclusion in part to California’s requirements that public works from, occupations. Instead of placing the burden of projects include apprenticeship programs.127 Outside educational costs and training onto the job seeker, of construction there are not many apprenticeships California’s apprenticeship model pays job seekers while in licensed industries, Department of Apprenticeship they complete their education and training and gain the Standards officials reported. In some practice areas, experience and skills necessary to thrive in their jobs. particularly healthcare occupations, scope-of-practice restrictions prevent it, they said.128 Learners still gain California has the largest apprenticeship program in the hands-on experience. For example, nursing students are United States.123 Its programs, overseen by the Division required to have clinical experience, but in the current of Apprenticeship Standards (DAS) within the Department nursing school model, they pay for the practical learning of Industrial Relations, are created through partnerships experience. Whereas in an apprenticeship, learners between post-secondary educational institutions and would be paid for their time and work. employers. There is a minimum requirement of 144 hours of training in the classroom with one year of There is, however, a new pilot program in the California on-the-job training. Most programs last 3.5 years.124 Health Care Facility in Stockton to create a pathway for 50 Employers can, on an individual basis, give credit for licensed vocational nurses (LVNs) to become registered past experience, making apprenticeships a potential Whats in a Name? Making Apprenticeship Programs Accessible The Little Hoover Commission has long advocated clarity and plain language in state job titles and program descriptions. Most recently, in its 2015 report on customer interactions with government, the Commission wrote, “Government can perhaps most easily improve the customer experience by changing the way it communicates with the public: being succinct, clear, accurate, precise, as well as approachable, and easy to find and understand.” In its 2014 report on civil service, the Commission detailed how job-seekers could not find state jobs by searching for commonly-used job titles, such as policy analyst. If they did not know the complicated language the state used for job titles, their state job search yielded zero results. The Commission’s call for clear, easily-understandable communication applies to the state’s apprenticeship programs as well. The title of the state’s new “Earn and Learn” program is catchy, but it does not immediately convey that it is an apprenticeship program. The term often is used to describe youth job programs. Job-seekers would not be blamed for thinking that it might refer to a college grant or tuition reimbursement program, or a typical work-study program not designed to build skills for an upwardly mobile career path. “Earn and Learn” is an apprenticeship program: The first step in recruiting people to it is to call it what it is. Sources: Little Hoover Commission. October 2015. A Customer-Centric Upgrade for California Government. Page 43. Also, Little Hoover Commission. February 2014. From Hiring to Retiring: Strategies for Modernizing State Human Resources. Page 14. 36 | www.lhc.ca.gov Pathways to Upward Mobility Nonpartisan and Bipartisan Support for Occupational Licensing Reform Support for occupational licensing reform can be found in nonpartisan think tanks as well as institutions that span the political spectrum. Below is a list of recent studies calling for states to reevaluate their occupational licensing policies: Dick M. Carpenter II, Lisa Knepper, Angela C. Erickson. May 2012. License to Work: A National Study on the Burdens of Occupational Licensing. Institute for Justice. Kauffman Foundation. January 2012. A License to Grow: Ending State, Local, and Some Federal Barriers to Innovation and Growth in Key Sectors of the U.S. Economy. Morris M. Kleiner. January 2005. Reforming Occupational Licensing Policies. The Brookings Institution Hamilton Project. Michelle Natividad Rodriguez and Beth Avery. April 2016. Unlicensed and Untapped: Removing Occupational Barriers to State Occupational Licenses for People with Records. National Employment Law Project. Stephen Slivinski. February 2015. Bootstraps Tangled in Red Tape. Goldwater Institute. The White House. July 2015. Occupational Licensing: A Framework for Policymakers. nurses. In this apprenticeship program, called “Earn and developmental centers. It found that in 2014-15, Learn,” LVNs spends 20 hours a week in the classroom state health professionals logged 3.75 million hours of and 20 hours a week in hands-on training, and are overtime – at a cost to taxpayers of nearly $179 million paid for both the classroom and the practical portions. – often due to staffing shortages.134 Instead of spending The demand to participate in this pilot program was excessively on overtime, the state could better use the overwhelming: Ninety-seven LVNs expressed interest in money to create apprenticeship programs within its being chosen for one the 50 spots.129 This pilot program own institutions. This would train a new generation of opens a path for upward mobility from a lower-paying healthcare professionals to meet its staffing needs while occupation into a higher-paying profession, while also helping more Californians move into better-paying jobs. addressing some racial disparities. Statewide, 80 percent of LVNs are minorities, while only 33 percent of registered Summary nurses are minorities.130 Certain populations are more vulnerable to occupational California’s apprenticeship programs are proving effective licensing regulations than others. People with convictions at reaching minorities. In 2014, 59 percent of the 53,000 on their records can face uncertainty in knowing whether Californians participating in apprenticeship programs they are eligible for the job in the first place, an application were minorities.131 The gender divide is bleaker: Women process that can seem arbitrary and confusing, and an represented 5.3 percent of apprenticeship participants intimidating appeals process. People who move across in 2014.132 The concentration of apprenticeships within state lines face problems of licensing portability and the construction sector explains a lot of the gender may have to re-complete education or training. This is differentials, Department of Apprenticeship Standards particularly challenging for military spouses who move officials said. They are working to counteract the inequity more than most and may only have a limited amount by promoting apprenticeships in other industries – and of time at a new location. Veterans and foreign-trained encouraging women to participate in construction workers face similar challenges in that their existing apprenticeships.133 credentials may not be recognized by licensing authorities, or they may have completed most, but not all, of a state’s In April 2016, the Commission released a report on excess licensing requirements and there are no programs to overtime for state healthcare personnel in state hospitals, help them quickly complete missing requirements and correctional facilities, veterans’ homes and start working. Many laws have been passed to expedite Little Hoover Commission | 37 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers licensing for veterans and military spouses, but those laws primarily focus on occupations under the Department of  Follow the Bureau of Security and Investigative Consumer Affairs and no one is tracking outcomes. Services model and create an informal appeals process between an initial license denial and an administrative law hearing. Though there should be a comprehensive review of California’s licensing statutes and regulations, there are many ways to help Californians start working quickly and more easily without overhauling California’s licensing Recommendation 6: The Legislature should authorize a system. Make the application process more transparent research institute, in conjunction with federal partners and straightforward. When conviction histories are as needed, to study the implementation of recent needed, rely on background checks instead of applicants’ legislation that requires the Department of Consumer memories, and make the fee-waiver process more Affairs to ease or waive licensing requirements for customer-friendly. Give applicants a chance to explain veterans and military spouses. The review should red flags on their application before proceeding with identify gaps between the intent of the laws and an administrative law hearing. Create bridge education outcomes, and issue recommendations for executive or programs to help those who are mostly qualified swiftly legislative action to bridge those gaps. The review also complete the gaps in their education. Allow interim should assess the effectiveness of licensing authorities’ licensing so those who come to California with other outreach campaigns to inform veterans of their states’ qualifications can work under supervision while eligibility for expedited licensing. finishing California-specific requirements. Create apprenticeship programs to allow people to develop their Recommendation 7: The Legislature should require skills through hands-on experience. California does not California colleges and training academies to create have to sacrifice consumer protection to make it easier bridge education programs for veterans and workers for its residents to hold good jobs. trained outside of California to help them quickly meet missing educational requirements. Specifically: Recommendations  California licensing boards and other departments providing licenses and credentials Recommendation 5: With the Department of Consumer should identify common educational gaps Affairs serving as a clearinghouse of best practices and between the qualifications of returning service providing guidance to other departments as needed, all members and state licensing requirements. licensing authorities should take the following steps to make it easier for former offenders to gain employment:  California colleges should create and offer programs to fill these gaps and expedite  Post on their website the list of criteria used to enrollment – or risk losing authorization for evaluate applicants with criminal convictions so these programs. that potential applicants can be better informed about their possibilities of gaining licensure before investing time and resources into Recommendation 8: The State of California should education, training and application fees. develop interim work and apprenticeship models  When background checks are necessary, follow to provide opportunities for people missing certain the Department of Insurance model and require qualifications to work while meeting their requirements, applicants with convictions to provide certified and to promote upward mobility within career paths. court documents instead of manually listing convictions. This will prevent license denials due to unintentional reporting errors. The State of California also should expedite the fee-waiver process for all low-income applicants requesting background checks. 38 | www.lhc.ca.gov Appendices Appendices Appendix A Public Hearing Witnesses The lists below reflect the titles and positions of witnesses at the time of the hearings in 2016. February 4, 2016 Sacramento, California Dick Carpenter II, Ph.D., Director of Strategic Research, Morris Kleiner, Ph.D., Professor, Humphrey School of Institute for Justice Public Affairs, University of Minnesota Le Ondra Clark Harvey, Ph.D., Chief Consultant, Sarah Mason, Consultant, Senate Committee on Assembly Committee on Business and Professions Business, Professions and Economic Development Robert Fellmeth, Executive Director, Center for Public Jason Wiens,* Policy Director in Research and Policy, Interest Law, University of San Diego Ewing Marion Kauffman Foundation March 30, 2016 Culver City, California Laurie Crehan, Ed.D., Regional State Liaison, Michelle Natividad Rodriguez, Senior Staff Attorney, Southwest, Office of the Deputy Assistant Secretary of National Employment Law Project Defense, Military Community and Family Policy Deborah Davis, President & CEO, Deborah Davis Tracy Rhine, Chief Deputy Director, Department Design of Consumer Affairs for Awet Kidane,* Director, Department of Consumer Affairs José Ramón Fernández-Peña, MD, MPA, Associate Jane Schroeder, Regulatory Policy Specialist, California Professor, Health Education, San Francisco State Nurses Association University; Policy Chair, IMPRINT; Director, Welcome Back Initiative Myra Irizarry Reddy, Government Affairs Director, CT Turney, Senior Staff Attorney, A New Way of Life Professional Beauty Association Reentry Project *Submitted written testimony but was unable to attend in person Little Hoover Commission | 39 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers Appendix B Public Meeting Witnesses The lists below reflect the titles and positions of witnesses at the time of the hearings in 2016. Roundtable on Occupational Licensing June 30, 2016 Sacramento, California Shannon Carrion, Manager, Curriculum and Office Adam Quiñonez, Assistant Deputy Director of Review Bureau, Department of Insurance Legislative and Regulatory Review, Department of Consumer Affairs Vincent Chee, Consultant, Assembly Committee on Assemblymember Rudy Salas, Chair, Assembly Business and Professions Committee on Business and Professions Awet Kidane, Director, Department of Consumer Joshua Speaks, Legislative Representative, California Affairs Commission on Teacher Credentialing Keith Kuzmich, Chief, Licensing Services, Department Peter Williams, Deputy Secretary and General of Insurance Counsel, California Business, Consumer Services and Housing Agency Sarah Mason, Consultant, Senate Committee on Business, Professions and Economic Development 40 | www.lhc.ca.gov Notes Notes 9 Tami Luhby. May 6, 2016. 15 Dick M. Carptenter II, Lisa Knepper, “California: The Nation’s Most Unequal Angela Erickson and John K. Ross. May State.” CNN Money. http://money. 2012. “License to Work: A National 1 Office of the Attorney General. cnn.com/2015/05/05/news/economy/ Study of Burdens from Occupational September 10, 2015. Opinion of Kamala california-unequal/. Accessed August Licensing.” Pages 44-45. D. Harris, Attorney General and Susan 3, 2016. Also, Sarah Burd-Sharps Duncan Lee, Deputy Attorney General. and Kristen Lewis. April 22, 2015. 16 Assembly Committee on Business No 15-402. “Geographies of Opportunities: Ranking and Professions. Rev. February 11, 2 Department of the Interior. 1918. Well-Being by Congressional District. 2015. “Review of Occupational “California Mining Statutes Annotated.” http://ssrc-static.s3.amazonaws. Regulation and the ‘Sunrise’ Process.” Bulletin 161. Law Serial 13. Page 33. com/wp-content/uploads/2015/04/ http://abp.assembly.ca.gov/sites/abp. Citing Laws 1850, P. 221; Apr. 13, 1850. Geographies-of-Opportunity-4.22.2015. assembly.ca.gov/files/publications/ pdf. Accessed August 3, 2016. Description%20of%20Sunrise%20 3 Federal Reserve Bank of Minnesota. Process-%20Asm.pdf. Accessed October “Consumer Price Index (Estimate) 10 White House. July 2015. 6, 2015. 1800 –” https://www.minneapolisfed. “Occupational Licensing: A Framework org/community/teaching-aids/cpi- for Policymakers.” https://www. 17 California Department of Consumer calculator-information/consumer-price- whitehouse.gov/sites/default/ Affairs, Division of Legislative and index-1800. Accessed July 8, 2016. files/docs/licensing_report_final_ Regulatory Review. November nonembargo.pdf. Accessed September 2015. “2016 Legislative Resource 4 Jean Pfaelzer. 2007. “Foreign Miners 10, 2015. Page 8. Booklet.” http://www.dca.ca.gov/ Tax.” Encyclopedia of U.S. Labor and publications/2016_legislative_resource. Working Class History. Volume 1: A-F. 11 Morris Kleiner. March 2015. pdf. Accessed March 8, 2016. Ed. Eric Arnesen. Routledge: New York. “Reforming Occupational Licensing Pages 468-470. Policies.” Brookings Institute Hamilton 18 Keith Kuzmich, Licensing Services Project. Discussion Paper 2015-01. Division Chief, California Department 5 Linda A. McCready and Billie Harris. Page 1. of Insurance. April 20, 2016. Written 1995. “From Quackery to Quality communication with Commission Assurance: The First Twelve Decades 12 White House. July 2015. staff. Also, California Department of of the Medical Board of California.” “Occupational Licensing: A Framework Education. August 18, 2015. “Fingertip Medical Board of California. Page 2. for Policymakers.” https://www. Facts on Education in California http://www.mbc.ca.gov/publications/ whitehouse.gov/sites/default/ – CalEdFacts.” http://www.cde. quackery.pdf. Accessed July 1, 2016. files/docs/licensing_report_final_ ca.gov/ds/sd/cb/ceffingertipfacts. nonembargo.pdf. Accessed September asp. Accessed May 18, 2016. Also, 6 Linda A. McCready and Billie Harris. 10, 2015. Also, Employment the State Bar of California. August 1995. “From Quackery to Quality Development Department. “Labor 17, 2016. Member Demographics. Assurance: The First Twelve Decades Market Information.” http://www. https://members.calbar.ca.gov/search/ of the Medical Board of California.” labormarketinfo.edd.ca.gov/. Accessed demographics.aspx. Also, California Medical Board of California. Page 3. October 6, 2015. Department of Consumer Affairs. http://www.mbc.ca.gov/publications/ See endnote 17. Also, Department quackery.pdf. Accessed July 1, 2016. 13 White House. July 2015. of Business Oversight. “Number of “Occupational Licensing: A Framework Licensees 2015-16.” Commission 7 Linda A. McCready and Billie Harris. for Policymakers.” https://www. staff communication with Legislative 1995. “From Quackery to Quality whitehouse.gov/sites/default/ Analyst’s Office. September 27, 2016. Assurance: The First Twelve Decades files/docs/licensing_report_final_ of the Medical Board of California.” nonembargo.pdf. Accessed September 19 Myra Irizarry Reddy, Government Medical Board of California. Pages 3-5. 10, 2015. Page 24. Affairs Director, Professional Beauty http://www.mbc.ca.gov/publications/ Association. February 25, 2016. Phone quackery.pdf. Accessed July 1, 2016. 14 Dick M. Carptenter II, Lisa Knepper, call with Commission staff. Angela Erickson and John K. Ross. May 8 Awet Kidane, Director, Department 2012. “License to Work: A National 20 Deborah Davis, President & CEO, of Consumer Affairs. June 23, 2016. Study of Burdens from Occupational Deborah Davis Design. February 25, Sacramento, CA. Little Hoover Licensing.” Page 7. 2016. Phone call with Commission staff. Commission Roundtable. Little Hoover Commission | 41 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers 21 Deborah Davis, President & CEO, 32 Morris M. Kleiner. March 2015. How State Occupational Licensing Deborah Davis Design. February 25, “Reforming Occupational Licensing Hinders Low-Income Entrepreneurship.” 2016. Phone call with Commission staff. Policies.” Brookings Institute Hamilton https://goldwater-media.s3.amazonaws. Project. Discussion Paper 2015-01. com/cms_page_media/2015/4/15/ 22 Lee McGrath, Managing Attorney, Page 13. OccLicensingKauffman.pdf. Accessed Institute for Justice. October 1, 2015. September 24, 2015. Phone call with Commission staff. 33 Morris M. Kleiner. March 2015. “Reforming Occupational Licensing 42 Lee McGrath, Managing Attorney, 23 Morris Kleiner, Professor, Humphrey Policies.” Brookings Institute Hamilton Institute for Justice. October 1, 2015. School of Public Affairs, University of Project. Discussion Paper 2015-01. Phone call with Commission Staff. Minnesota. February 4, 2016. Written Page 13. Also, Minnesota State Board of Bar testimony to the Commission. Examiners. October 2015. “Character 34 Morris M. Kleiner. March 2015. and Fitness for Admission to the 24 Jane Schroeder, Regulatory Policy “Reforming Occupational Licensing Bar.” https://www.ble.state.mn.us/ Specialist, California Nurses Association. Policies.” Brookings Institute Hamilton resource-center/character-and-fitness- February 16, 2016. Sacramento, CA. Project. Discussion Paper 2015-01. for-admission-to-bar.aspx. Accessed Meeting with Commission staff. Page 13. October 5, 2015. 25 Assembly Bill 1279. Holden. 35 Morris M. Kleiner. 2015. “Guild- 43 Menachem Wicker. December 2015. http://leginfo.legislature. Ridden Labor Markets: The Curious Case 17, 2015. “Weighing the Benefits, ca.gov/faces/billTextClient.xhtml?bill_ of Occupational Licensing.” Upjohn Disadvantages of Attending a Non- id=201520160AB1279. Institute for Employment Research. ABA Law School.” U.S. News & World 26 Jane Schroeder, Regulatory Policy Page 31. Report. http://www.usnews.com/ Specialist, California Nurses Association. 36 Morris M. Kleiner. March 2015. education/best-graduate-schools/ February 16, 2016. Sacramento, CA. “Reforming Occupational Licensing top-law-schools/articles/2012/12/17/ Meeting with Commission staff. Policies.” Brookings Institute Hamilton weigh-the-benefits-disadvantages- of-attending-a-non-aba-law-school. Project. Discussion Paper 2015-01. Page 6. 27 Susan Stuart, Partner and Erin Accessed October 5, 2015. Evans-Fudem, Legislative Counsel, 37 Morris M. Kleiner. March 2015. Capitol Advisors. February 22, 2016. “Reforming Occupational Licensing 44 Physician Assistant Board. Sacramento, CA. Meeting with Policies.” Brookings Institute Hamilton December 1, 2015. “2016 Sunset Commission staff. Project. Discussion Paper 2015-01. Review Report.” http://www.pac. ca.gov/forms_pubs/sunset_2016. Page 13. 28 Susan Stuart, Partner and Erin pdf. Accessed September 7, 2016. Evans-Fudem, Legislative Counsel, 38 Morris M. Kleiner. March 2015. Attachment G. Capitol Advisors. February 22, 2016. “Reforming Occupational Licensing Sacramento, CA. Meeting with Policies.” Brookings Institute Hamilton 45 Robert J. Schiller. September 30, Commission staff. Project. Discussion Paper 2015-01. 2013. “The Best, Brightest and Least Productive?” http://www.project- Page 13. 29 Myra Irizarry Reddy, Government syndicate.org/commentary/the-rent- Affairs Director, Professional Beauty 39 Jason Wiens, Policy Director, seeking-problem-in-contemporary- Association. February 25, 2016. Phone Kauffman Foundation. October 1, 2015. finance-by-robert-j--shiller. Accessed call with Commission staff. Phone call with Commission staff. October 5, 2015. 30 Morris M. Kleiner. March 2015. 40 Stephen Slivinski. February 23, 46 Jason Wiens. Policy Director, “Reforming Occupational Licensing 2015. “Bootstraps Tangled in Red Tape: Research and Policy. Kauffman Policies.” Brookings Institute Hamilton How State Occupational Licensing Foundation. October 1, 2015. Phone Project. Discussion Paper 2015-01. Hinders Low-Income Entrepreneurship.” call with Commission staff. Page 6. https://goldwater-media.s3.amazonaws. 47 Robert Fellmeth, Price Professor com/cms_page_media/2015/4/15/ 31 Morris M. Kleiner and Robert T. of Public Interest Law, University of OccLicensingKauffman.pdf. Accessed Kudrle. October 2000. “Does Regulation San Diego. February 4, 2016. Written September 24, 2015. Affect Economic Outcomes? The Case testimony to the Commission. of Dentistry.” Journal of Law and 41 Stephen Slivinski. February 23, Economics 43:2. Pages 547-82. 2015. “Bootstraps Tangled in Red Tape: 48 Division of Legislative and Regulatory Review, California 42 | www.lhc.ca.gov Notes Department of Consumer Affairs. NOI-ETA-16-14.pdf. Accessed June 27, Annual/MISC5/MISC5d2012.pdf. November 2015. “2016 Legislative 2016. Accessed September 1, 2016. Also, Resource Booklet.” http://www.dca. Chief Probation Officers of California. ca.gov/publications/2016_legislative_ 57 The White House. July 2015. California Realignment Dashboard. resource.pdf. Accessed February 25, “Occupational Licensing: A Framework http://www.cpoc.org/assets/ 2016. for Policymakers.” https://www. Realignment/dashboard.swf. Accessed whitehouse.gov/sites/default/ September 6, 2016. 49 AB 1939. Patterson. 2016. files/docs/licensing_report_final_ http://leginfo.legislature.ca.gov/ nonembargo.pdf. Accessed September 61 Benyamin Appelbaum. February faces/billTextClient.xhtml?bill_ 10, 2015. Pages 8-10. 28, 2015. “Out of Trouble, but Criminal id=201520160AB1939. Records Keep Men Out of Work.” The 58 Note: There are 11.4 million people New York Times. http://www.nytimes. 50 The State Bar of California. July listed in the California’s database of com/2015/03/01/business/out-of- 9, 2016. “Member Demographics.” arrests and convictions. The database trouble-but-criminal-records-keep- Accessed July 10, 2016. https:// includes people who no longer reside men-out-of-work.html?_r=1. Accessed members.calbar.ca.gov/search/ in California and who are deceased, September 1, 2016. demographics.aspx. however. At the national level, the National Employment Law Project 62 U.S. Department of Justice. April 51 Kuzmich, Keith, Licensing Services estimates approximately 30 percent of 2014. “Recidivism of Prisoners Released Division Chief, California Department states’ rolls to be deceased or double- in 30 States in 2005: Patterns from 2005 of Insurance. April 20, 2016. Written counted. to 2010.” http://www.bjs.gov/content/ communication with Commission staff. pub/pdf/rprts05p0510.pdf. Accessed Citation: Michelle Natividad Rodriguez, September 6, 2016. 52 California Department of Education. Senior Staff Attorney, National “Fingertip Facts on Education in Employment Law Project. March 14, 63 Christy Visher, Sara Debus California – CalEdFacts.” Number of 2016. Communication with Commission and Jennifer Yahner. October teachers in public schools: 2014–15. staff. 2008. “Employment after Prison: A http://www.cde.ca.gov/ds/sd/cb/ Longitudinal Study of Releasees in ceffingertipfacts.asp. Accessed August 59 California Department of Three States.” Urban Institute Justice 18, 2016. Corrections. September 2013. Policy Center. http://www.urban.org/ “Prison Census Data as of June 30, sites/default/files/alfresco/publication- 53 Jason Wiens, Policy Director, 2013.” http://www.cdcr.ca.gov/ pdfs/411778-Employment-after-Prison- Kauffman Foundation and Chris Jackson, reports_research/offender_ A-Longitudinal-Study-of-Releasees-in- Research Analyst, Kauffman Foundation. information_services_branch/Annual/ Three-States.PDF. Accessed September October 1, 2015. Phone call with Census/CENSUSd1306.pdf. Accessed 6, 2016. Commission staff. February 12, 2014. Also, Little Hoover Commission. February 2014. “Sensible 64 The Council of State Governments 54 Awet Kidane, Director, Department Sentencing for a Safer California.” Justice Center. September 2013. of Consumer Affairs. June 23, 2016. “Integrated Reentry and Employment Sacramento, CA. Little Hoover 60 Note: Comprehensive parolee Strategies: Reducing Recidivism and Commission Roundtable. data after 2012 is not readily available, Promoting Job Readiness.” https:// 55 U.S. Department of Labor but 2012 is an adequate sample www.bja.gov/Publications/CSG-Reentry- Employment and Training year because it represents prisoner and-Employment.pdf. Accessed Administration. Notice of Intent to release after prison realignment via February 24, 2016. Assembly Bill 109 in 2011, but before Fund Project on Occupational Licensing the reclassification of many crimes to 65 The Council of State Governments Review and Portability: NOI-ETA-16-14. misdemeanors through Proposition 47 Justice Center. September 2013. https://www.doleta.gov/grants/pdf/NOI- in 2014. “Integrated Reentry and Employment ETA-16-14.pdf. Accessed June 27, 2016. Strategies: Reducing Recidivism and 56 U.S. Department of Labor Citation: Department of Corrections Promoting Job Readiness.” https:// Employment and Training and Rehabilitation. January 2013. www.bja.gov/Publications/CSG-Reentry- Administration. Notice of Intent to “County and Region of Parole: and-Employment.pdf. Accessed Fund Project on Occupational Licensing Calendar Year 2012.” Page 3. http:// February 24, 2016. www.cdcr.ca.gov/Reports_Research/ Review and Portability: NOI-ETA-16-14. Offender_Information_Services_Branch/ https://www.doleta.gov/grants/pdf/ Little Hoover Commission | 43 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers 66 Michelle Natividad Rodriguez and 30, 2016. Written testimony to the www.usa4militaryfamilies.dod.mil/ Beth Avery. September 1, 2016. “Ban Commission. MOS/f?p=USA4:ISSUE:0::::P2_ISSUE:7. the Box: U.S. Cities, Counties, and States Accessed March 8, 2016. Adopt Fair Hiring Policies.” National 75 California Education Code. Section Employment Law Project. http://www. 44346. http://leginfo.legislature.ca.gov/ 87 Department of Defense. nelp.org/publication/ban-the-box-fair- faces/codes_displaySection.xh “Removing Licensure Impediments chance-hiring-state-and-local-guide/. tml?lawCode=EDC&sectionNum=44346. for Transitioning Spouses.” http:// Accessed September 2, 2016. www.usa4militaryfamilies.dod.mil/ 76 CT Turney, Senior Staff Attorney, A MOS/f?p=USA4:ISSUE:0::::P2_ISSUE:7. 67 Bourree Lam. May 2, 2016. New Way of Life Reentry Project. March Accessed March 8, 2016. Also, “Obama’s Proposal to ‘Ban the Box’ 30, 2016. Written testimony to the Laurie Crehan, Regional State Liaison, for Government Jobs.” The Atlantic. Commission. Southwest, Office of the Deputy http://www.theatlantic.com/business/ Assistant Secretary of Defense, Military 77 Awet Kidane, Director, Department archive/2016/05/obama-memorandum- Community and Family Policy. March of Consumer Affairs. June 23, 2016. opm/480909/. Accessed September 2, 30, 2016. Written testimony to the Little Hoover Commission Roundtable 2016. Also, The White House. “Take Commission. on Occupational Licensing. the Fair Chance Pledge.” https:// www.whitehouse.gov/issues/criminal- 78 Awet Kidane, Director, Department 88 Laurie Crehan, Regional State justice/fair-chance-pledge. Accessed of Consumer Affairs. June 23, 2016. Liaison, Southwest, Office of the Deputy September 2, 2016. Little Hoover Commission Roundtable Assistant Secretary of Defense, Military Community and Family Policy. March 30, on Occupational Licensing. 68 CT Turney, Senior Staff Attorney, A 2016. Testimony to the Commission. New Way of Life Reentry Project. March 79 Office of the Attorney General. 30, 2016. Written testimony to the “Fingerprint Background Checks.” 89 Laurie Crehan, Regional State Commission. https://oag.ca.gov/fingerprints. Liaison, Southwest, Office of the Deputy Assistant Secretary of Defense, Military Accessed May 24, 2016. Also, California 69 CT Turney, Senior Staff Attorney, A Community and Family Policy. February Department of Justice. August 2012. New Way of Life Reentry Project. March 12, 2016. Phone call with Commission “Applicant Fingerprint Processing Fees.” 30, 2016. Written testimony to the staff. https://oag.ca.gov/sites/all/files/agweb/ Commission. pdfs/fingerprints/forms/fees.pdf?. 90 United States Government 70 CT Turney, Senior Staff Attorney, A Accessed May 24, 2016. Accountability Office. September 2014. New Way of Life Reentry Project. March “Veterans Affairs: Better Understanding 80 Endria Richardson, Staff Attorney, 30, 2016. Written testimony to the Needed to Enhance Services to Veterans Legal Services for Prisoners with Commission. Adjusting to Civilian Life.” http:// Children. May 23, 2016. Phone call www.gao.gov/assets/670/665725.pdf. 71 California Department of Insurance. with Commission staff. Accessed August 5, 2016. Notice – Filing Requirement for Written 81 Endria Richardson, Staff Attorney, Consent Pursuant to U.S.C. §1033. 91 Lisa Lutz, President, Solid LLC. May Legal Services for Prisoners with http://www.insurance.ca.gov/0200- 4, 2015. Facilitating State Licensing Children. May 23, 2016. Phone call industry/0200-prod-licensing/0100- of Service Members and Veterans. with Commission staff. applicant-info/0600-1033-application/. Presentation to National Attorneys Accessed September 21, 2016. 82 CT Turney, Senior Staff Attorney, A General Training and Research Institute. New Way of Life Reentry Project. March 72 CT Turney, Senior Staff Attorney, A 92 Rebecca E. Blanton, Senior Policy 30, 2016. Written testimony to the New Way of Life Reentry Project. March Analyst, California Research Bureau. Commission. 30, 2016. Written testimony to the March 20, 2013. “Overview of Veterans Commission. 83 See Endnote 82. in California.” Testimony before the Joint Hearing of the Assembly 73 CT Turney, Senior Staff Attorney, A 84 See Endnote 82. Committee on Veteran Affairs and the New Way of Life Reentry Project. March Assembly Committee on Housing and 30, 2016. Written testimony to the 85 See Endnote 82. Community Development. https:// Commission. www.library.ca.gov/crb/13/13-020.pdf. 86 Department of Defense. Accessed July 27, 2016. 74 CT Turney, Senior Staff Attorney, A “Removing Licensure Impediments New Way of Life Reentry Project. March for Transitioning Spouses.” http:// 44 | www.lhc.ca.gov Notes 93 U.S. Bureau of Labor Statistics. “Tackling Brain Waste: Strategies to job-seekers/american-licensed- March 22, 2016. “Economic News Improve the Recognition of Immigrants’ professions/california/dentist/california- Release: Employment Situation of Foreign Qualifications.” Migration dentist-professional-licensing-guide. Veterans Summary – 2015.” http:// Policy Institute. http://www. Accessed March 10, 2016. www.bls.gov/news.release/vet.nr0.htm. migrationpolicy.org/sites/default/files/ Accessed July 26, 2016. publications/Sumption-Credentialing- 108 Hans Johnson and Ria Sengupta. FINAL.pdf. Accessed March 4, 2016. April 2009. “Closing the Gap: Meeting 94 U.S. Bureau of Labor Statistics. California’s Need for College Graduates.” March 22, 2016. “Economic News 102 José Ramón Fernández-Peña, Public Policy Institute of California. Release: Employment Situation of Associate Professor, Health Education, http://www.ppic.org/content/pubs/ Veterans Summary – 2015.” http:// San Francisco State University; Policy report/R_409HJR.pdf. Accessed www.bls.gov/news.release/vet.nr0.htm. Chair, IMPRINT; Director, Welcome Back September 21, 2016. Also, Little Hoover Accessed July 26, 2016 Initiative. March 30, 2016. Testimony Commission. October 2013. A New to the Commission. Plan for a New Economy: Reimagining 95 Laurie Crehan, Regional State Liaison, Higher Education. Southwest, Office of the Deputy Assistant 103 Upwardly Global. 2011. Secretary of Defense, Military Community “California Physician Professional 109 Robert Graham Center. and Family Policy. February 12, 2016. Licensing Guide.” https://www. “California: Projecting Primary Care Phone call with Commission staff. upwardlyglobal.org/skilled-immigrant- Physician Workforce.” http://www. job-seekers/american-licensed- graham-center.org/content/dam/rgc/ 96 Laurie Crehan, Regional State professions/california/physician/ documents/maps-data-tools/state- Liaison, Southwest, Office of the Deputy california-physician-professional- collections/workforce-projections/ Assistant Secretary of Defense, Military licensing-guide. Accessed March 4, California.pdf. Accessed September 21, Community and Family Policy. March 2016. 2016. 30, 2016. Written testimony to the Commission. 104 José Ramón Fernández-Peña, 110 Stephen P. Juraschek, Xiaoming Associate Professor, Health Education, Zhang, Vinoth K. Ranganathan, and 97 Michael Behm, Co-Chief Executive San Francisco State University; Policy Vernon Lin. January 1, 2012. “United Officer & Principal, Stateside Associates. Chair, IMPRINT; Director, Welcome Back States Registered Nurse Workforce September 2014. “Initiatives to Assist Initiative. March 30, 2016. Written Report Card and Shortage Forecast.” Transitioning Service Members and Testimony to the Commission. Public Health Resources. Paper 149. Veterans.” Presentation to Council on http://digitalcommons.unl.edu/cgi/ Licensure, Enforcement & Regulation 105 José Ramón Fernández-Peña, viewcontent. cgi?article= Pre-Conference Workshop. Associate Professor, Health Education, 1148&context=publichealthresources. San Francisco State University; Policy Accessed September 21, 2016. 98 Erica Trejo, Director, Employment Chair, IMPRINT; Director, Welcome Back Programs and Training Services, Swords Initiative. March 9, 2016. Phone call 111 Linda Darling-Hammond, Roberta to Plowshares. March 1, 2016. Phone with Commission staff. Furger, Patrick M. Shields, and Leib call with Commission staff. Sutcher. 2016. “Addressing California’s 106 Upwardly Global. “California Emerging Teacher Shortage: An Analysis 99 Michael Hiltzik. February 20, 2015. Dentist Professional Licensing Guide.” of Sources and Solutions.” www. “A Loophole in Immigration Law is https://www.upwardlyglobal.org/ learningpolicyinstitute.org/address-ca- Costing Thousands of American Jobs.” skilled-immigrant-job-seekers/american- teacher-shortage. Accessed March 4, Los Angeles Times. http://www.latimes. licensed-professions/california/dentist/ 2016. com/business/hiltzik/la-fi-hiltzik- california-dentist-professional-licensing- 20150222-column.html. Accessed July guide. Accessed March 10, 2016. 112 Linda Darling-Hammond, Roberta 27, 2016. Furger, Patrick M. Shields, and Leib 107 José Ramón Fernández-Peña, Sutcher. 2016. “Addressing California’s 100 Barry R. Chiswick. July 2011. Associate Professor, Health Education, Emerging Teacher Shortage: An Analysis “Immigration: High Skilled vs. Low San Francisco State University. March of Sources and Solutions.” www. Skilled Labor?” Institute for the Study 30, 2016. Written Testimony to the learningpolicyinstitute.org/address-ca- of Labor IZA Policy Paper No. 28. http:// Commission. Also, Upwardly Global. teacher-shortage. Accessed March 4, ftp.iza.org/pp28.pdf. Accessed March 4, “California Dentist Professional 2016. 2016. Page 2. Licensing Guide.” https://www. upwardlyglobal.org/skilled-immigrant- 101 Madeleine Sumption. July 2013. Little Hoover Commission | 45 Jobs for Californians: Strategies to Ease Occupational Licensing Barriers 113 Barry R. Chiswick. July 2011. 122 SB 466 (2015, Hill). 132 Division of Apprenticeship “Immigration: High Skilled vs. Low Standards. “Overview of DAS.” http:// Skilled Labor?” Institute for the Study 123 Interagency Working Group on www.dir.ca.gov/das/DAS_overview. of Labor IZA Policy Paper No. 28. http:// Earn and Learn Job Training Strategies html. Accessed July 27, 2016 ftp.iza.org/pp28.pdf. Accessed March 4, and Apprenticeship in California. 2016. Page 2. December 2012. “Apprenticeship 133 Diane Ravnik, Chief, Division of as a Critical Component of an “Earn Apprenticeship Standards, Department 114 José Ramón Fernández-Peña, and Learn” Job Training Strategy in of Industrial Relations. July 25, Associate Professor, Health Education, California.” http://www.dir.ca.gov/DAS/ 2016. Sacramento, CA. Meeting with San Francisco State University. March reports/WhitePaperApprenticeship.pdf. Commission staff. 30, 2016. Written Testimony to the Accessed July 27, 2016. Page 10. Commission. 134 Little Hoover Commission. April 124 Diane Ravnik, Chief, Division of 2016. “Time and Again: Overtime in 115 José Ramón Fernández-Peña, Apprenticeship Standards, Department State Facilities.” http://www.lhc.ca.gov/ Associate Professor, Health Education, of Industrial Relations. July 25, studies/231/Report231.pdf. San Francisco State University. March 2016. Sacramento, CA. Meeting with 30, 2016. Written Testimony to the Commission staff. Commission. 125 California Prison Industry 116 José Ramón Fernández-Peña, Authority. “Career Technical Associate Professor, Health Education, Education.” http://pia.ca.gov/ San Francisco State University. March OffenderDevelopment/CTE.aspx. 30, 2016. Written Testimony to the Accessed July 28, 2016. Commission. 126 Division of Apprenticeship 117 Madeleine Sumption. July 2013. Standards. “Overview of DAS.” http:// “Tackling Brain Waste: Strategies to www.dir.ca.gov/das/DAS_overview. Improve the Recognition of Immigrants’ html. Accessed July 27, 2016. Foreign Qualifications.” Migration Policy Institute. http://www. 127 Division of Apprenticeship migrationpolicy.org/sites/default/files/ Standards. “Apprentices on Public Work publications/Sumption-Credentialing- Projects Summary of Requirements.” FINAL.pdf. Accessed March 4, 2016. http://www.dir.ca.gov/das/ Page 7. DASApprenticesO nPublicWorksSummaryOfRequirements. 118 José Ramón Fernández-Peña, htm. Accessed July 27, 2016. Associate Professor, Health Education, San Francisco State University. March 128 Diane Ravnik, Chief, Division of 30, 2016. Written Testimony to the Apprenticeship Standards, Department Commission. of Industrial Relations. July 25, 2016. Sacramento, CA. Meeting with 119 IMPRINT. Skilled Immigrants Commission staff. 101. IMPRINT 101 Issue Brief. http:// www.imprintproject.org/images/ 129 Hellan Roth Dowden, Principal, SkilledImmigrants101.pdf. Accessed HR Dowden & Associates. July 25, March 29, 2016. 2016. Sacramento, CA. Meeting with Commission staff. 120 Joshua Speaks, Legislative Representative, California Commission 130 See Endnote 129. on Teacher Credentialing. June 23, 2016. 131 Division of Apprenticeship Little Hoover Commission Roundtable Standards. “Overview of DAS.” http:// on Occupational Licensing. www.dir.ca.gov/das/DAS_overview. 121 SB 466 (2015, Hill). http://leginfo. html. Accessed July 27, 2016. legislature.ca.gov/faces/billNavClient. xhtml?bill_id=201520160SB466. 46 | www.lhc.ca.gov Little Hoover Commission Members Chairman Pedro Nava (D-Santa Barbara) Appointed to the Commission by former Speaker of the Assembly John Pérez in April 2013. Government relations consultant. Former state Assemblymember from 2004 to 2010. Former civil litigator, deputy district attorney and member of the state Coastal Commission. Elected chair of the Commission in March 2014. Vice Chairman Jack Flanigan (R-Granite Bay) Appointed to the Commission by Governor Edmund G. Brown Jr. in April 2012. A member of the Flanigan Law Firm. Co-founded California Strategies, a public affairs consulting firm, in 1997. Scott Barnett (R-San Diego) Appointed to the Commission by former Speaker of the Assembly Toni Atkins in February 2016. Founder of Scott Barnett LLC, a public advocacy company, whose clients include local non- profits, public charter schools, organized labor and local businesses. Former member of Del Mar City Council and San Diego Unified School District Board of Trustees. David Beier (D-San Francisco) Appointed to the Commission by Governor Edmund G. Brown Jr. in June 2014. Managing director of Bay City Capital. Former senior officer of Genentech and Amgen. Former counsel to the U.S. House of Representatives Committee on the Judiciary. Serves on the board of directors for the Constitution Project. Senator Anthony Cannella (R-Ceres) Appointed to the Commission by the Senate Rules Committee in January 2014. Elected in November 2010 and re-elected in 2014 to represent the 12th Senate District. Represents Merced and San Benito counties and a portion of Fresno, Madera, Monterey and Stanislaus counties. Assemblymember Chad Mayes (R-Yucca Valley) Appointed to the Commission by former Speaker of the Assembly Toni Atkins in September 2015. Elected in November 2014 to represent the 42nd Assembly District. Represents Beaumont, Hemet, La Quinta, Palm Desert, Palm Springs, San Jacinto, Twentynine Palms, Yucaipa, Yucca Valley and surrounding areas. Don Perata (D-Orinda) Appointed to the Commission in February 2014 and reappointed in January 2015 by the Senate Rules Committee. Political consultant. Former president pro tempore of the state Senate, from 2004 to 2008. Former Assemblymember, Alameda County supervisor and high school teacher. Assemblymember Sebastian Ridley-Thomas (D-Los Angeles) Appointed to the Commission by former Speaker of the Assembly Toni Atkins in January 2015. Elected in December 2013 and re-elected in 2014 to represent the 54th Assembly District. Represents Century City, Culver City, Westwood, Mar Vista, Palms, Baldwin Hills, Windsor Hills, Ladera Heights, View Park, Crenshaw, Leimert Park, Mid City, and West Los Angeles. Senator Richard Roth (D-Riverside) Appointed to the Commission by the Senate Rules Committee in February 2013. Elected in November 2012 to represent the 31st Senate District. Represents Corona, Coronita, Eastvale, El Cerrito, Highgrove, Home Gardens, Jurupa Valley, March Air Reserve Base, Mead Valley, Moreno Valley, Norco, Perris and Riverside. Jonathan Shapiro (D-Beverly Hills) Appointed to the Commission in April 2010 and reappointed in January 2014 by the Senate Rules Committee. Writer and producer for FX, HBO and Warner Brothers. Of counsel to Kirkland & Ellis. Former chief of staff to Lt. Governor Cruz Bustamante, counsel for the law firm of O’Melveny & Myers, federal prosecutor for the U.S. Department of Justice Criminal Division in Washington, D.C., and the Central District of California. Janna Sidley (D-Los Angeles) Appointed to the Little Hoover Commission by Governor Edmund Brown Jr. in April 2016. General counsel at the Port of Los Angeles since 2013. Former deputy city attorney at the Los Angeles City Attorney’s Office from 2003 to 2013. Helen Torres (NPP-San Bernardino) Appointed to the Little Hoover Commission by Governor Edmund Brown Jr. in April 2016. Executive director of Hispanas Organized for Political Equality (HOPE), a women’s leadership and advocacy organization. Sean Varner (R-Riverside) Appointed to the Little Hoover Commission by Governor Edmund Brown Jr. in April 2016. Managing partner at Varner & Brandt LLP where he practices as a transactional attorney focusing on mergers and acquisitions, finance, real estate and general counsel work. Full biographies available on the Commission’s website at www.lhc.ca.gov. “Democracy itself is a process of change, and satisfaction and complacency are enemies of good government.” Governor Edmund G. “Pat” Brown, addressing the inaugural meeting of the Little Hoover Commission, April 24, 1962, Sacramento, California