Licensing And Regulation

Black-Gold Associates LLC

Licensing and Regulation

Commercial Business Enterprise in the 20th Century


The Rationale and Nature of Government Intervention in

Commerce– Consumer Protection– Preventing Unfair competition and Predatory

business practices– Limiting Activity in certain areas of

regulatory concern– Identifying Competence of Actors in the

marketplace


Who are the Actors in the Licensing and Regulatory

Process?

• The consuming public• The service providers• The regulated “industry”• The government regulatory agencies

or Enforcement officials• Law making bodies, such as the

legislature


Who Regulates Commercial Activity?

Government Directly

Federal Government

State Government

Local and Municipal Government

Government contractual agencies or appointees


Role of Governmental Regulators

• Legislature– Statutes and Regulations

• Executive Branch– Licensing and Enforcement

• Judiciary– Interpretation of regulatory laws– Limited Licensing of Legal Profession


Government Police Power

• The Power to License is an aspect of the power of government to regulate activity. Federal and state constitutions give to the government the right to use the “police power” to regulate commercial activity as well as other actions of citizens


Police Power as it relates to Licensing

• Regulation of otherwise lawful activity, administered through a licensing process (eg. Occupational and Professional Licensing)

• State sanctioned activity which might otherwise be illegal (eg. Licensed gambling)

• Activity conducted by licensees on behalf of the state to raise revenue (eg. Liquor licensing)


What is a License?

• “License includes the whole or part of an agency permit, certificate, approval, registration, charter, or similar form of permission required by law, but does not include a license required solely for revenue purposes, or a license or registration issued under the (motor vehicle code) … “

-- Michigan Administrative Procedures Act


What is Licensing?

• “Licensing includes agency activity involving the grant, denial, renewal, suspension, revocation, annulment, withdrawal, recall, cancellation, or amendment of a license.”

-- Michigan Administrative Procedures Act


Licensing Occurs when …

• An applicant seeks an initial license;• When an existing licensee attempts to

renew or otherwise reapply for another license; (or)

• When an agency seeks to revoke, suspend, or otherwise restrict an existing license.


Examples of Occupational Licenses

• Medical Doctors, Nurses, Psychologists, and other Health Professionals

• Builders, Real Estate Agents, Appraisers

• Insurance companies, their agents, and representatives

• Others


Other Professional Licenses

• Hospitals, nursing homes, foster care homes, child day care homes

• Athletic licenses (boxing, racing)

• Liquor Licenses

• Lottery sales licenses

• Utility Licenses

• Other


Other Licensing Types of Regulatory Activities

• Building permits and construction code enforcement and variances

• Zoning

• Review of Workplace activity to assure safety and to allow continued operation of business according to statutes and regulations (MIOSHA)


The Licensing Process

• Application Review (self reporting)

• Qualification Review (Credentialing)

• Competence Review (Testing)

• Good Moral Character Review

• Public Interest or Necessity Review

• Threat or danger or safety to the public review


The “Unlicensing” or Enforcement Process

• Complaint review against licensees

• Investigations

• Audits for finances and also practices

• Counseling and Consulting for licensees to assure continued compliance

• Disciplinary Action


Enforcement Options

• Fine• Suspension• Revocation• Required Probationary oversight• Restitution to consumers and others• Other statutorily specified sanctions• Warnings, and Reprimands• Complaint tracking and data sharing

between jurisdictions


APA Process for Discipline

• Opportunity to Show Compliance

• Formal Administrative Hearing

• Review or Appeal by Statutory agency

• Appeal of adverse actions to the Judiciary


General Issues in Licensing

• Dealing with the “Unlicensed” offender• Fairness and equal treatment of licensees

in the licensing and disciplinary processes• Timeliness in licensing actions to assure

consumer protection• The politics of the “failed” licensing case• Enforcement of regulations and statutes in

a fair and meaningful way


Additional Licensing Issues

• Economics of the profession or industry – protecting the consumer from abusive or predatory pricing and inappropriate treatment

• Prioritization of Licensing and Regulatory efforts

• Over regulation of the profession and industry

• Others


Overview

• Give the big picture of the subject

• Explain how all the individual topics fit together

Licensing And Regulation

Documents

Transcript of Licensing And Regulation