How to Fix Maryland's Regulatory Morass

Feb 29, 2016

ROCKVILLE, MD  (March 1, 2016) — The Maryland Public Policy Institute today released an exhaustive study of the State’s most dubious, ineffective and duplicative regulations and offered common sense reforms that would promote job security for workers and economic opportunity for entrepreneurs. The full study can be viewed online at mdpolicy.org.

“Maryland state government should not be in the business of regulating wine tastings and seed mixing,” said Christopher B. Summers, president of the Institute. “Like barnacles on an aging ship, the State’s regulatory morass has grown beyond recognition over the course of several decades. To truly expand economic opportunity, we must repeal problematic and outdated regulations and make simple reforms that unleash the full potential of our citizens and small businesses.”

Maryland has one of the nation’s worst regulatory environments. A 2013 report from the Mercatus Center at George Mason University rated it the sixth worst in the nation and a 2015 Pacific Research Institute study focusing specifically on small business regulation ranked Maryland 11th worst.

The Institute’s recommendations include the following:

Rework the state’s occupational licensing rules: Occupational licensure often protects professionals from virtuous competition blocking new business methods. A deregulatory team should be tasked with identifying licensures that should be repealed and to eliminate dubious continuing education requirements for professionals and fees for license certification.

Consolidate economic development subsidies: Maryland has dozens of overly specific economic development programs that benefit only a few industries or politically connected applicants who know how to navigate complex application processes. Consolidating these into a handful of broad, straightforward programs would better direct state benefits to promising projects rather than to projects overseen by experts in the political system.

Get one-stop-shop permitting right: Maryland should emulate the streamlining model recently adopted in Devin, Massachusetts. Devin officials put all permitting and application functions under one unified commission, which boasts an unparalleled 75-day permitting process. As a result, the town’s permitting process has gained popularity for being able to assess major projects more efficiently than nearly anywhere in the nation. For instance, not long ago, the town famously permitted a $750 million pharmaceutical plant in only 49 days.

Include private sector in environmental remediation: The health of the Chesapeake Bay has been a problem for decades, yet billions of dollars of government funding and an ever-expanding regulatory framework have done little to turn the tide.  The State has failed to produce a long-term solution for handling, storing and recycling sediment and other materials dredged materials that can threaten water quality in the Bay. The State should explore partnerships with private enterprise to recycle dredge materials for commercial use, thereby lowering sediment’s threat to the health of the Bay and saving the State $300 million in the process.  

 

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