Occupational Regulation - Office of the Legislative Auditor

12 OCCUPATIONAL REGULATION
Sunrise Legislation
A sunrise
law, like
Minnesota’s,
requires a
demonstration
of the public
benefit of
regulation prior
to enactment.
Given the concerns that were being raised in the 1960s and 1970s about
occupational fencing and the fact that many state legislatures were facing an
increasing demand to regulate more and more occupations, it is not surprising that
several states began looking for a way to screen such requests for validity and true
public purpose. One solution was “sunrise” legislation. Sunrise provisions place
into statute the idea that “credentialing should be enacted only when it is clearly in
the public’s best interest. Moreover, the level of regulation should be no more
restrictive than necessary to protect the public.” 36
In 1971 a set of criteria for regulation was developed by a New Jersey legislative
commission. Under what are now referred to as the Bateman criteria, professions
should be licensed only when:
1. Their unregulated practice can clearly harm or endanger the health, safety,
and welfare of the public and when the potential for such harm is easily
recognizable and not remote or dependent upon tenuous argument; and,
2. The public needs, and will benefit by, assurance of initial and continuing
professional and occupational ability; and,
3. The public is not effectively protected by other means; and
4. It can be demonstrated that licensing would be the most appropriate form
of regulation. 37
In 1976 Minnesota became one of the first states to enact sunrise legislation when
it adopted a slightly modified version of these criteria. 38
Sunrise is the least widespread of any of the four major reform efforts outlined in
this chapter. In addition to Minnesota, sunrise has been adopted in 10 states:
Tennessee (1977), Texas and Colorado (1985), Maine, Georgia and Hawaii
(1986), Montana and Washington (1987), South Carolina (1988), and Florida
(1991). 39 Wisconsin has enacted a sunrise policy through department rules rather
than statute. Additionally, several states, including Arizona and Virginia, have
more limited sunrise provisions that only apply to health-related occupations.
Regardless of the scope of sunrise legislation, some form of the Bateman criteria
were used by every state whose statutes we reviewed. 40 An additional criterion
that has been added in Minnesota and elsewhere is: “Whether the overall cost
36 Schmitt and Shimberg, Demystifying Occupational and Professional Regulation, 17.
37 Ibid., 17.
38 The history of Minnesota’s sunrise statute, Minn. Stat. §214, is discussed in greater detail below.
39 Richard C. Kearney, “Sunset: A Survey and Analysis of the State Experience,” Public Administration
Review, vol. 50 (January-February 1990): 52.
40 Statutes from other states that we reviewed include: Arizona, §32-3103 (applies only to
health-related occupations); Florida Ch. 11.62; Maine, Title 32, Ch. 1A (§60-J); Virginia,
§54.1100 (applies only to health-related occupations); Revised Code of Washington, Ch.
18.120.010; and Wisconsin, department rules.