EDITORIAL: Ease occupational licensing requirements — starting with Uber

If Gov. Brian Sandoval and state lawmakers are serious about pushing Nevada’s economy into the 21st century and putting more people to work, they’ll follow the lead of Portsmouth, N.H., and Arizona taxi regulators.

Last week, the Portsmouth Taxi Commission recommended the elimination of itself and the creation of a much less costly and burdensome system of regulating drivers for hire. The commission voted unanimously to ask the City Council to end the regulation of taxis and fares and instead require drivers for hire to register with the city clerk, provide proof of insurance and submit to a criminal background check by the police department.

The move was an acknowledgment that the old model of taxi regulation, which inflates fares and slows service, is obsolete in the age of Uber and other ride-share services based on smartphone platforms. Through an app, Uber connects drivers to passengers, generally in less time and for less money — at a fixed price settled before the ride starts.

Meanwhile, this week Arizona Gov. Doug Ducey declared taxi regulations “outdated,” suspended all state investigations into ride-share drivers and cleared the way for such companies to operate without further government interference.

Uber has not received such a warm welcome in Nevada. Protectionist transit regulators and the courts cracked down on the company even though its service was in high demand and provided income to hundreds of people. Nevada is the only state to have shut down Uber, and that’s not a good thing. The action was proof that over-regulation keeps people out of work. Gov. Sandoval and lawmakers should resolve to reverse that policy when the 2015 Legislature convenes Monday.

The Review-Journal’s 23rd of 25 policy recommendations to the Nevada Legislature in 25 days: easing industry and job licensing requirements across all regulated fields.

Blowing up the state’s taxicab regulatory structure should be just the start. Absurd occupational licensing standards are everywhere, from interior design — why does Nevada license interior designers at all? — to cosmetology. Nevada’s teacher shortage, for example, is partially rooted in burdensome licensing standards. Experienced teachers licensed in some states can’t work here because of the classes they took in college.

These standards are especially harmful to minorities and low-income Americans who possess skills but not the resources to become credentialed.

Lawmakers can start by expanding reciprocity — granting credentials to health care professionals, teachers and others licensed in different states. And the governor and lawmakers should examine which occupational licensing standards can be abolished altogether. Removing barriers to employment will create more opportunity — and a stronger Nevada economy.