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January 2015 Policy Study, Number 15-2


SEA 421 Report: Establishing A Process For Self-Certification Registration





[1] SEA 421 Report on Self-Certification Registration: Hearing Before the SEA 421 Study Panel, 114 (2014) [hereinafter

Hearing] (testimony of Prof. Morris M. Kleiner).
[2] A proposal to move away from licensing towards voluntary certification is not unique to this report. See e.g., Byron

Schlomach, Six Reforms to Occupational Licensing Laws to Increase Jobs and Lower Costs, 247 Goldwater Inst. Pol’y Rep. 3

& 22-24 (July 10, 2012) (“Reform 4: Create an environment that encourages and legally enforces private certification”).
However, no state has implemented a widespread, regulatory structure based on the principles of certification, while also

incorporating elements of licensure and registration.
[3] This language originated in Senate Bill 244 (2014), which the Senate passed 48-0. Subsequently, the House

Committee on Employment, Labor, and Pensions (Gutwein, Chair) amended its language into Senate Bill 421. Ultimately, the

Indiana House of Representatives passed SB421 96-0. Indiana Governor Mike Pence signed SEA 421 on March 25, 2014.  
[4] “Acknowledgments,” § IV infra at 16; in addition, the panel was co-chaired by Nicholas Rhoad and Adam H. Berry.
[5] See Ex. 1 (list of witnesses and their written testimony, if available).
[6] Total number of active licensees as of August 4, 2014; these boards oversee 27,167 entity licenses spread across 63

different types.
[7] Indiana agencies with largest number of active individual licenses are as follows: 172,984 by Alcohol & Tobacco

Commission (209,180 total, including business permits, as of Sept. 26, 2014); 6460 by Dept. of Natural Resources (as of

Sept. 25, 2014); 18,538 by Indiana Supreme Court (as of May 15, 2014); 12,158 by Gaming Commission (as of May 15,

2014); 63,247 by Dept. of Insurance (as of April 8, 2014); 58,709 [teachers] by Dept. of Education (as of 2010-2011 school

[8] IN Dep’t of Workforce Development, Hoosiers by the Numbers. Available at (“For statistical purposes, the labor force is the sum of persons employed

and persons unemployed and looking for work.”)
[9] 3,042,650 employed/188,294 unemployed; seasonally adjusted. Indiana University's Kelley School of Business, STATS

IndianaAvailable at (as of Sept. 26, 2014).
[10] Calculation adjusted for out-of-state residents to whom state agencies have issued licenses.

[11]2013 “Per Capita Personal Income” in Indiana. U.S. Dept. of Commerce, Bureau of Economic Analysis. Available at





[12] Estimate based sample population of professionals working in different geographic areas in Indiana.
[13] Hearing, supra note 1, at 115 (testimony of Kleiner) (Research by Professor Kleiner, Professor Alan Krueger of

Princeton University and the former chairman of President Obama’s White House Council of Economic Advisers, and

Professor Alexandre Mas of Princeton University and former Chief Economist in the U.S. Department of Labor and the Office

of Management and Budget under President Obama.)
[14] Hearing, supra note 1, at 112 (testimony of Kleiner) (“[C]ertification has benefits over licensing for workers.

Certification doesn’t fence out workers or cause the type of problems in the labor market that licensing does.”)
[15] Hearing, supra note 1, at 135 (testimony of Prof. Gary Wolfram).
[16] Id. at 153-54 (statement by Rep. Jud McMillin).
[17] Id. at 115 (testimony of Kleiner).
[18] United States Department of Agriculture, Economic Research Service. Based on 2013 census data. Available at

[19] Population Reference Bureau, “People Below the Poverty Level in the Past 12 Months (1-Year ACS).” (2012).

Available at (last visited September 30, 2014).
[20] Barriers to Opportunity: Do Occupational Licensing Laws Unfairly Limit Entrepreneurship and Jobs?: Hearing to

examine the proliferation of occupational licensing laws and the impact these have on business opportunities Before the

Subcomm. on Contracting and Workforce of the H. Comm. on Small Business, 113th Cong. 2-3 (2014) (written statement of

Melony Armstrong, African Hairbraider, Owner of “Naturally Speaking” Salon, Tupelo, MS) (requirements included 3200

hours of cosmetology school and tuition, exam fees, and three different licensing fees).
[21] Id. at 3.
[22] Id. at 3-4.
[23] Ind. Code § 25-8-9-3.
[24] Id. § 25-1-11-19(b)(1) (“The board may refuse to issue a license … to an applicant for licensure if the applicant

practiced without a license in violation of the law.”).
[25] Id. § 25-8-2-5
[26] Dick M. Carpenter, Lisa Knepper, Angela C. Erickson & John K. Ross, License to Work: A National Study of Burdens

from Occupational Licensing 6 (Institute for Justice 2012) (“An ‘occupational license’ is just that – government permission to

work in a particular field”); see also exh. 1 (hearing, supra note 1, at 3 (written testimony of Lee McGrath)).
[27] See exh. 1 (hearing, supra note 1, at 3 (written testimony of McGrath)); see also Expanding Opportunity in America:

A Discussion Draft from the H. Budget Comm. 66 113th Cong. (2014) (authored by Chairman Paul Ryan & House Budget

Committee Staff) (“Eliminating irrational or unnecessary licensing requirements would not be a panacea, but it would open

up new opportunities for low-income families and reduce costs for consumers.”).
[28] Hearing, supra note 1, at 185 (testimony of McGrath).
[29] Id. at 98 (testimony of Prof. Dick Carpenter).
[30] Id. at 14 (testimony of Connie Jung).
[31] Ind. Code § 25-20.7-5
[32] Hearing, supra note 1, at 18 (testimony of Jung) (discussing title protection with Sen. Greg Taylor).
[33] Id. at 154 (statement by Rep. McMillin); Id. at 115 (testimony of Kleiner).
[34] Id. at 113 (testimony of Kleiner).
[35] Id. at 115.
[36] Id. at 113.
[37] Id. at 117.
[38] Id. at 101 (testimony of Carpenter).
[39] See generally exh. 1.
[40] Agricultural Products Dealer; Art Therapists; Court Reporters; Electricians; Fire Alarm Inspectors; Genetic

Counseling; Ginseng Growers; Heating and Cooling professionals; High Pressure Boiler Operators; Irrigation System and

Water Vessel Pump Installers; Music Therapists; Painters; Pet Store Operators; Sprinkler System Inspectors; Unmanned

Aerial Systems Operator.
[41] Hearing, supra note 1, at 113 (testimony of Kleiner).
[42] Morris M. Kleiner & Charles Wheelan, C., Occupational Licensing Matters: Wages, Quality and Social Costs. 30 CESif

DICE Report. (March 2010).
[43] Hearing, supra note 1, at 136 (testimony of Wolfram) (referencing Nobel Laureate George Akerlof’s research on

asymmetric information).
[44] Id. at 161.
[45] Id. at 201 (testimony of McGrath).
[46] Id.
[47] Kleiner & Wheelan, supra note 42, at 30; see also exh. 1 (Hearing, supra note 1, at 2 (written testimony of Charles

Wheelan) (There are relatively few professionals who fall into the first category; even highly skilled professionals, such as

brain surgeons, typically pose little risk to the general public.).
[48] Hearing, supra note 1, at 148 (statement by Rep. Christina Hale).
[49] Kleiner & Wheelan, supra note 42, at 30.
[50] See Hearing, supra note 1, at 99-101 (testimony of Carpenter).
[51] Home Inspector, Genetic Counselor, Residential Care Administrator, Nurse Midwife, Embalmer, Plumbing Apprentice,

Marriage and Family Health Associate, Mental Health Associate.
[52] Home Inspector, Residential Care Administrator, Athletic Trainer, Dietician, Acupuncturist, Landscape Architect,

Auctioneer, and Plumbing Apprentice. 
[53] The JCC may call a special meeting or add the SCR applications to a previously scheduled meeting’s agenda.
[54] Ind. Code § 25-1-16-3.
[55] See generally hearing, supra note 1, at 131 (testimony of Kleiner).
[56] See exh. 1 (hearing, supra note 1, at 3 (written testimony of Wheelan)); see also hearing, supra note 1, at 129

(testimony of Kleiner).
[57] Hearing, supra note 1, at 194 (testimony of McGrath).
[58] FTC regulations are located at Title 16 of the Code of Federal Regulations. These include regulations covering the

funeral industry, ophthalmic practices and deceptive advertising.
[59] Hearing, supra note 1, at 189 (testimony of McGrath).
[60] See generally hearing, supra note 1, at 190 (testimony of McGrath).
[61] Legislators’ preference is to incorporate minimum “character” eligibility standards for PCR professionals. For

example, individuals who have outstanding tax liabilities or violent criminal histories may require special consideration

before they are eligible to register.
[62] Hearing, supra note 1, at 195 (testimony of McGrath).
[63] Estimate based on fifty (50) hours of labor by an Indiana Office of Technology (“IOT”) (state) employee.
[64] Estimate based on twenty (20) hours of labor by an IOT (state) employee.
[65] Estimate based on two (2) hours of labor by an IOT (state) employee, plus additional technology overhead.
[66] Hearing, supra note 1, at 206-211 (testimony of McGrath about using the “least restrictive form of regulation”

ranging from licensure to market competition and private litigation – see McGrath’s written testimony for an illustration of

the same)).
[67] Id. at 205 (statement by Hale) (discussing the importance of practical and theoretical considerations to balance

over- and under-regulation.  “I think there’s a sweet spot … and I would love to find that sweet spot here [in Indiana].”); Id.

at 213 (statement by Sen. Patricia Miller) (“I think we have a lot to consider … but I think it will help us move Indiana

forward and I hope to be able to be a part of that.”); Id.  (statement by Sen. Greg Taylor) (responding to Miller’s statement,

“Ditto.”); Id. at 214 (statement by Nicholas Rhoad) (“I think we've got a wonderful framework to work with and launch off[.]

… And the Indiana Professional Licensing Agency is ready to work with our members at the Indiana general assembly to

work as partners to make this a successful outcome.”); Id. at 214-15 (statement by Jud McMillin) (“There are going to be

people out there who want to oppose this just because its change and we need to … have the courage to say we’re willing

to have the conversation, we’re going to collect the data and listen to people who have expertise in this area. I just hope

that our legislative caucus [agrees] to do that.”).




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