Increasing Economic and Geographic Mobility
| Published date | 17 December 2020 |
| Citation | 85 FR 81777 |
| Record Number | 2020-27948 |
| Section | Presidential Documents |
| Court | Executive Office Of The President |
Presidential Documents
81777
Federal Register
Vol. 85, No. 243
Thursday, December 17, 2020
Title 3—
The President
Executive Order 13966 of December 14, 2020
Increasing Economic and Geographic Mobility
By the authority vested in me as President by the Constitution and the
laws of the United States of America, including section 305 of title 5,
United States Code, and section 301 of title 3, United States Code, it is
hereby ordered as follows:
Section 1. Policy and Principles. As expressed in Executive Order 13777
of February 24, 2017 (Enforcing the Regulatory Reform Agenda), it is the
policy of the United States to alleviate unnecessary regulatory burdens placed
on the American people. Overly burdensome occupational licensing require-
ments can impede job creation and slow economic growth, which undermines
our Nation’s prosperity and the economic well-being of the American people.
Such regulations can prevent American workers and job seekers from earning
a living, maximizing their personal and economic potential, and achieving
the American Dream. The purpose of this order is to reduce the burden
of occupational regulations in order to promote the free practice of commerce,
lower consumer costs, and increase economic and geographic mobility, in-
cluding for military spouses.
My Administration is committed to continuing this important work by
partnering with State, local, territorial, and tribal leaders throughout the
country to eliminate harmful occupational regulations, which are frequently
designed to protect politically connected interest groups. To this end, in
October 2019, my Administration announced the establishment of the Gov-
ernors’ Initiative on Regulatory Innovation, which works with State, local,
and tribal leaders to advance occupational licensing reforms, better align
State and Federal regulations, and eliminate unnecessary regulations that
drive up consumer costs.
Occupational regulations can protect practitioners from competition rather
than protect the public from malpractice. Unfortunately, the number of
occupational regulations has substantially increased over the last few dec-
ades. Since the 1950s, the percentage of jobs requiring a government-man-
dated occupational license has increased from less than 5 percent to between
25 and 30 percent. By requiring workers to acquire new licenses when
they move to a new jurisdiction, occupational regulations reduce worker
mobility, disproportionately harm low-income Americans, and are particu-
larly burdensome to military spouses who must relocate to support the
service members committed to keeping our country safe. Additionally, blan-
ket prohibitions that prevent individuals with criminal records from obtaining
occupational licenses may exacerbate disparities in employment opportunity
and increase the likelihood of recidivism, particularly as regulatory barriers
to enter lower- and middle-income occupations are associated with higher
recidivism rates. Licensing requirements unnecessary to protect consumers
from significant and demonstrable harm also frequently impose expensive
educational requirements on potential job seekers, even for occupations with
limited future earnings potential. According to recent research, licensing
requirements have cost our country an estimated 2.85 million jobs and
over $200 billion annually in increased consumer costs.
Therefore, it is the policy of the United States Government to support
occupational regulation reform throughout the Nation, building on occupa-
tional licensing reforms enacted most recently in Arizona, Florida, Iowa,
Missouri, and South Dakota, guided by six principles:
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Principle 1. All recognized occupational licensure boards should be subject
to active supervision of a designated governmental agency or office.
Principle 2. All occupational licensure boards recognized by a State, terri-
torial, or tribal government that oversee personal qualifications related to
the practice of an occupation should adopt and maintain the criteria and
methods of occupational regulation that are least restrictive to competition
sufficient to protect consumers from significant and demonstrable harm to
their health and safety. The policies and procedures of such boards should
be designed to protect consumer and worker safety and to encourage competi-
tion.
Principle 3. State, territorial, and tribal governments should review existing
occupational regulations, including associated scope-of-practice provisions,
to ensure that their requirements are the least restrictive to competition
sufficient to protect consumers from significant and demonstrable harm.
State, territorial, and tribal governments should also regularly review and
analyze all occupational regulations, including associated personal qualifica-
tions required to obtain an occupational license, to ensure the adoption
of the least restrictive requirements necessary to protect consumers from
significant and demonstrable harm.
Principle 4. Individuals with criminal records should be encouraged to submit
to the appropriate licensure board a preliminary application for an occupa-
tional license for a determination as to whether the criminal record would
preclude their attainment of the appropriate occupational license.
Principle 5. A State, territorial, or tribal government should issue an occupa-
tional license to a person in the discipline applied for and at the same
level of practice if the individual satisfies four requirements:
(a) the individual holds an occupational license for that discipline from
another jurisdiction in the United States and is in good standing;
(b) the individual verifies having met, as applicable, the minimum examina-
tion, education, work, or clinical-supervision requirements imposed by the
State, territory, or tribe;
(c) the individual:
(i) has not had the license previously revoked or suspended;
(ii) has not been disciplined related to the license by any other regulating
entity; and
(iii) is not subject to any pending complaint, allegation, or investigation
related to the license; and
(d) the individual pays all applicable fees required to obtain the new
license.
Principle 6. Accommodations should be made for any applicant for an
occupational license who is the spouse of an active duty member of the
uniformed services and who is relocating with the member due to the
member’s official permanent change of station orders.
Sec. 2. Review of and Report on Authorities, Regulations, Guidance, and
Policies. The head of each executive department and agency (agency) shall,
within 90 days of the date of this order and every 2 years thereafter:
(a) review the agency’s authorities, regulations, guidance, and polices to
identify changes necessary to ensure alignment with the principles set forth
in section 1 of this order; and
(b) submit a report to the Director of the Office of Management and
Budget (Director of OMB), the Assistant to the President for Domestic Policy,
and the Assistant to the President and Director of Intergovernmental Affairs
(Director of IGA) identifying all necessary changes identified pursuant to
subsection (a) of this section.
Sec. 3. Identification and Report of Opportunities to Encourage Occupational
Regulation Reform. (a) Within 90 days of the date of this order, and every
2 years thereafter, the head of each agency shall submit a report to the
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Director of OMB, the Assistant to the President for Domestic Policy, and
the Director of IGA identifying a list of recommended actions available
to any and all agencies to recognize and reward State, territorial, and tribal
governments that have in place policies and procedures regarding occupa-
tional regulation that are consistent with the principles set forth in section
1 of this order; and
(b) Within 120 days of the date of this order, and every 2 years thereafter,
the Assistant to the President for Domestic Policy, in consultation with
the Secretary of Commerce, the Secretary of Labor, the Director of OMB,
the Administrator of the Small Business Administration, the Director of
IGA, and the heads of other agencies and offices as appropriate, shall submit
a report to the President identifying:
(i) recommended changes to Federal law, regulations, guidance, and other
policies to ensure alignment with the principles set forth in section 1
of this order;
(ii) recommended actions to be taken by agencies to recognize and reward
State, territorial, and tribal governments that have in place policies and
procedures regarding occupational regulation that are consistent with the
principles set forth in section 1 of this order; and
(iii) a list of criteria that may be used to evaluate whether a State, territorial,
or tribal government has in place policies and procedures that are con-
sistent with the principles set forth in section 1 of this order.
Sec. 4. Implementation of Recommendations to Recognize and Reward State,
Territorial, and Tribal Regulatory Reform. (a) Within 180 days of the date
of this order, and every 2 years thereafter, the Administrator of the Small
Business Administration, in consultation with the Secretary of Commerce,
the Secretary of Labor, the Secretary of Health and Human Services, and
the heads of other agencies as appropriate, shall seek and report on informa-
tion from State, territorial, and tribal governments regarding whether they
have in place policies and procedures consistent with the principles set
forth in section 1 of this order and shall make the report publicly available,
including on agencies’ websites. The information sought shall be consistent
with the criteria identified as required by section 3(b)(iii) of this order.
(b) Consistent with applicable law, and to the extent that the President
approves any of the actions recommended pursuant to section 3(b)(ii) of
this order, agencies shall implement such actions for the purpose of recog-
nizing and rewarding a State, territorial, or tribal government that has in
place policies and procedures regarding occupational regulation that are
consistent with the principles set forth in section 1 of this order.
Sec. 5. Definitions. For the purposes of this order:
(a) ‘‘Active supervision’’ means:
(i) reviewing proposed occupational licensure board rules, policies, or
other regulatory actions that may restrict market competition prior to
issuance;
(ii) ensuring that any entity seeking to impose occupational licensing
criteria adopts the criteria that are least restrictive to competition sufficient
to protect consumers from significant and demonstrable harm to their
health or safety; and
(iii) analyzing, where information is readily available, the effects of pro-
posed rules, policies, and other regulatory actions on employment opportu-
nities, consumer costs, market competition, and administrative costs.
(b) ‘‘Agency’’ has the meaning given that term in section 3502(1) of title
44, United States Code, except that the term does not include the agencies
described in section 3502(5) of title 44, United States Code, other than
the Bureau of Consumer Financial Protection.
(c) ‘‘Occupational license’’ means a license, registration, or certification
without which an individual lacks the legal permission of a State, local,
territorial, or tribal government to perform certain defined services for com-
pensation.
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(d) ‘‘Occupational regulation’’ includes:
(i) licensing or government certification, by which a government body
requires personal qualifications in order to be permitted to practice an
occupation; and
(ii) registration, bonding, or inspections, by which a government body
does not require personal qualifications in order to be permitted to practice
an occupation.
Sec. 6. General Provisions. (a) Nothing in this order shall be construed
to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency,
or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget
relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and
subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit,
substantive or procedural, enforceable at law or in equity by any party
against the United States, its departments, agencies, or entities, its officers,
employees, or agents, or any other person.
THE WHITE HOUSE,
December 14, 2020.
[FR Doc. 2020–27948
Filed 12–16–20; 8:45 am]
Billing code 3295–F1–P
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