[Federal Register Volume 85, Number 243 (Thursday, December 17, 2020)]
[Presidential Documents]
[Pages 81777-81780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27948]


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                         Presidential Documents 
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  Federal Register / Vol. 85, No. 243 / Thursday, December 17, 2020 / 
Presidential Documents  

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 Title 3--
 The President

[[Page 81777]]

                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 requirements 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, including 
                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 Governors' 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 decades. Since the 1950s, the percentage of jobs 
                requiring a government-mandated 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 
                particularly burdensome to military spouses who must 
                relocate to support the service members committed to 
                keeping our country safe. Additionally, blanket 
                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 occupational 
                licensing reforms enacted most recently in Arizona, 
                Florida, Iowa, Missouri, and South Dakota, guided by 
                six principles:

[[Page 81778]]

                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, territorial, 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 competition.

                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 
                qualifications 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 occupational 
                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 occupational 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 examination, 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

[[Page 81779]]

                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 occupational 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 consistent 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 information 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 recognizing 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 
proposed rules, policies, and other regulatory actions on employment 
opportunities, 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 compensation.

[[Page 81780]]

                    (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.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    December 14, 2020.

[FR Doc. 2020-27948
Filed 12-16-20; 8:45 am]
Billing code 3295-F1-P