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Deregulation


DANIEL RADCLIFFE GETS TO BE AN AUCTIONEER, THANKS TO LICENSING REFORM


NEW YORK CITY NO LONGER REQUIRES A PERMISSION SLIP TO SELL TO THE HIGHEST
BIDDER.

Kim Norberg | 10.31.2023 11:05 AM

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The Broadway revival of Stephen Sondheim's Merrily We Roll Along has attracted
rave reviews and rewritten the musical's former status as a commercial flop. But
without some recent changes to New York City licensing laws, the performance I
saw could have triggered huge fines for the show's star, Daniel Radcliffe.

In the last few months of the year, casts often raise money after the final
curtain call for Broadway Cares, an AIDS charity. After the show I attended in
late October, this took the surprising form of an auction. Radcliffe, the former
Harry Potter star and the new Merrily lead, returned to the stage and prompted
audience members to place dozens of live bids for a signed prop from the
musical's off-Broadway run. The winner paid $1,600.

Until last year, that simple bit of fundraising would have been illegal without
a special permission slip from the city's government. Without an auctioneer's
license, he would have faced fines of hundreds of dollars.

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New York City no longer licenses auctioneers, thanks to Local Law 80, which took
effect in June 2022. The law repealed many restrictions on small businesses,
including not just the mandatory licensing for auctioneers (in place since the
1980s) but licenses for amusement arcades and laundries.

Auctioneering still requires a license in 27 states and the District of Columbia
(alongside countless municipalities). According to License to Work, a nationwide
report by my employer, the public interest law firm the Institute for Justice,
it can cost up to $800 in fees and more than a year of unpaid apprenticeship
experience and coursework to secure one of those licenses. Since 2017, nine
states have doubled down by increasing the cost, time, or other burdens for
aspiring auctioneers.

That's just one of many professions where licensing requirements can be both
nonsensical and extreme. The Institute for Justice study reviewed 102
blue-collar and/or lower-income occupations and found that these permission
slips to work require, on average, nearly a year of education and experience, at
least one exam, and $295 in fees. That's a lot of time and money spent earning a
license instead of earning a living, especially for lower-income workers—and
that doesn't include hidden costs, such as tuition for the required schooling.

Many jobs that pose little risk require a lot of training. Indeed, 71
occupations in the study require more training than entry-level emergency
medical technicians. On average, EMTs need about 36 days' worth of training, as
opposed to 342 days for cosmetologists. And 88 percent of the occupations
included in the report are unlicensed by at least one state—and 14 have been
delicensed by at least one state—suggesting these jobs can be done safely
without a license.

Proponents of licensing say it's necessary to protect consumers. But even the
fiercest defenders of NYC's former auctioneering regime acknowledge that no
similar regulations exist in comparable cities such as London or Hong Kong. And
the end of New York's auctioneering licensing scheme did not usher in chaos. A
spokesperson for Christie's, one of the industry's leaders, told The Art
Newspaper last year that the auction house maintains its own ethical standards
and would simply "continue to operate as we have been." If there are already
adequate private sector norms and ethical standards, there's no need for a
government licensing scheme.



Plenty of other laws already govern sales transactions, guarding against fraud.
Licensing has little to do with protecting consumers; instead, it mostly shields
existing businesses from competition by blocking new entrants to the market.

Merrily is about the obstacles people face on the long road to success. That
road is even longer and bumpier when the government adds extra challenges.
Thankfully, New Yorkers—and visiting Brits, like Radcliffe—are now free to
conduct auctions like Merrily's fundraiser without fear of government
retribution.

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trends every weekday morning when you subscribe to Reason Roundup.

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Δ

NEXT: Taking From IRS, Giving to Israel

Kim Norberg is the director for donor communications at the Institute for
Justice, a libertarian public interest law firm based in Arlington, Virginia.

DeregulationRegulationNew York CityOccupational LicensingGovernment ReformNanny
State
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