REPORT: Nevada Is The Second-Most Burdensome State For Regulations

A report from Nevada Policy reveals that Nevada is the second-most burdensome state for regulations that have a detrimental effect on small businesses and lower income households. The Silver State is home to an eye-watering 200 boards and commissions of which 84 percent are categorized as “regulatory,” 14 percent as “advisory” and three percent as “task forces.” 35 percent of the 200 boards were established in the 21 century and their establishment has increased almost yearly.

“The impact of these regulations – and the boards that enforce them – falls heavily on the poor, middle class and small businesses, as economic theory would predict and empirical research has shown in many locations, many time periods. Nevada is a firmly middle class state, ranking seventh in the country with a middle class that takes up 49.3 percent of all the households in the state,” the report declares.

Nevada Policy highlights five professions–Dental hygienists, cosmetologists, physical therapists, chiropractors and veterinarians, that are negatively impacted by regulations and related fees, and concludes that Nevada’s licensing and regulatory regime depresses the number of practitioners available to Nevadans. In fact, the Institute for Justice ranks Nevada second most burdensome in terms of “Average Burdens for Licensed Occupations,” and has declared that “Nevada is the most widely and onerously licensed state.”

Regulation often “disproportionately hurts American households with lower incomes through reducing competition by creating barriers or hurdles that limit the ability of new individuals or companies to enter a market. Regulations can raise prices, slow wage growth and diminish economic opportunities for low-income workers. After the passage of new regulation and the concomitant increase in prices, low-income families may find that their incomes no longer go as far and they are forced to cut expenses elsewhere to pay for regulated goods and services, making them worse off,” the report warns.

There are 283,333 small businesses in Nevada representing 99.2 percent of all businesses in the state and employee 42.2 percent of Nevada’s workforce. The report reveals that, on average, a small business or licensed professional loses nearly 900 days to provide a good or a service due to the amount of regulations, licensing requirements and associated fees.

The executive branch, led by Governor Lombardo, has very little influence over the boards and commissions, outside of gubernatorial appointments. According to Nevada Revised Statutes, the only power the governor has with regard to the boards and commissions is to appoint members.

“The members appointed to these regulatory boards are then charged with overseeing licensing, handling complaints and enforcing disciplinary actions of individuals or industries that fall within the jurisdiction of the board’s authority. The governor does not set any rules, terms or constraints. The laws establishing the boards and commissions are clear, and only the legislative branch can change them. After the governor’s initial appointments of members to boards, commissions or similar bodies, all such members shall hold office for terms of 3 years or until their successors have been appointed and have qualified,” the report discloses, so any attempt by Governor Lombardo to implement necessary reforms need to be driven by the Democratic majority in the legislature.

However, looking at the chart above, the Democratic majority has ushered in a record-breaking amount of regulatory boards and commissions since their majority took legislative control of the Silver State.