2. The Rationale and Nature of
Government Intervention in
Commerce
– Consumer Protection
– Preventing Unfair competition and Predatory
business practices
– Limiting Activity in certain areas of
regulatory concern
– Identifying Competence of Actors in the
marketplace
Black-Gold Associates
LLC
3. Who are the Actors in the
Licensing and Regulatory
Process?
• The consuming public
• The service providers
• The regulated “industry”
• The government regulatory agencies
or Enforcement officials
• Law making bodies, such as the
legislature
Black-Gold Associates
LLC
4. Who Regulates Commercial
Activity?
Government Directly
Federal Government
State Government
Local and Municipal Government
Government contractual agencies or
appointees
Black-Gold Associates
LLC
5. Role of Governmental
Regulators
• Legislature
– Statutes and Regulations
• Executive Branch
– Licensing and Enforcement
• Judiciary
– Interpretation of regulatory laws
– Limited Licensing of Legal Profession
Black-Gold Associates
LLC
6. Government Police Power
• The Power to License is an aspect of
the power of government to regulate
activity. Federal and state constitutions
give to the government the right to use
the “police power” to regulate
commercial activity as well as other
actions of citizens
Black-Gold Associates
LLC
7. Police Power as it relates to
Licensing
• Regulation of otherwise lawful activity,
administered through a licensing
process (eg. Occupational and
Professional Licensing)
• State sanctioned activity which might
otherwise be illegal (eg. Licensed
gambling)
• Activity conducted by licensees on
behalf of the state to raise revenue
(eg. Liquor licensing)
Black-Gold Associates
LLC
8. What is a License?
• “License includes the whole or part of
an agency permit, certificate, approval,
registration, charter, or similar form of
permission required by law, but does
not include a license required solely for
revenue purposes, or a license or
registration issued under the (motor
vehicle code) … “
-- Michigan Administrative Procedures
Act
Black-Gold Associates
LLC
9. What is Licensing?
• “Licensing includes agency activity
involving the grant, denial, renewal,
suspension, revocation, annulment,
withdrawal, recall, cancellation, or
amendment of a license.”
-- Michigan Administrative Procedures
Act
Black-Gold Associates
LLC
10. Licensing Occurs when …
• An applicant seeks an initial license;
• When an existing licensee attempts to
renew or otherwise reapply for another
license; (or)
• When an agency seeks to revoke,
suspend, or otherwise restrict an
existing license.
Black-Gold Associates
LLC
11. Examples of Occupational
Licenses
• Medical Doctors, Nurses, Psychologists,
and other Health Professionals
• Builders, Real Estate Agents,
Appraisers
• Insurance companies, their agents, and
representatives
• Others
Black-Gold Associates
LLC
12. Other Professional Licenses
• Hospitals, nursing homes, foster care
homes, child day care homes
• Athletic licenses (boxing, racing)
• Liquor Licenses
• Lottery sales licenses
• Utility Licenses
• Other
Black-Gold Associates
LLC
13. Other Licensing Types of
Regulatory Activities
• Building permits and construction code
enforcement and variances
• Zoning
• Review of Workplace activity to assure
safety and to allow continued operation
of business according to statutes and
regulations (MIOSHA)
Black-Gold Associates
LLC
14. The Licensing Process
• Application Review (self reporting)
• Qualification Review (Credentialing)
• Competence Review (Testing)
• Good Moral Character Review
• Public Interest or Necessity Review
• Threat or danger or safety to the public
review
Black-Gold Associates
LLC
15. The “Unlicensing” or Enforcement
Process
• Complaint review against licensees
• Investigations
• Audits for finances and also practices
• Counseling and Consulting for licensees
to assure continued compliance
• Disciplinary Action
Black-Gold Associates
LLC
16. Enforcement Options
• Fine
• Suspension
• Revocation
• Required Probationary oversight
• Restitution to consumers and others
• Other statutorily specified sanctions
• Warnings, and Reprimands
• Complaint tracking and data sharing
between jurisdictions
Black-Gold Associates
LLC
17. APA Process for Discipline
• Opportunity to Show Compliance
• Formal Administrative Hearing
• Review or Appeal by Statutory agency
• Appeal of adverse actions to the
Judiciary
Black-Gold Associates
LLC
18. General Issues in Licensing
• Dealing with the “Unlicensed” offender
• Fairness and equal treatment of
licensees in the licensing and
disciplinary processes
• Timeliness in licensing actions to assure
consumer protection
• The politics of the “failed” licensing case
• Enforcement of regulations and statutes
in a fair and meaningful way
Black-Gold Associates
LLC
19. Additional Licensing Issues
• Economics of the profession or industry
– protecting the consumer from abusive
or predatory pricing and inappropriate
treatment
• Prioritization of Licensing and
Regulatory efforts
• Over regulation of the profession and
industry
• Others
Black-Gold Associates
LLC
20. Overview
• Give the big picture of the subject
• Explain how all the individual topics fit
together
Black-Gold Associates
LLC
