Economic Liberty Resolution Exposed

The Economic Liberty Resolution is listed under ALEC's Commerce, Insurance, and Economic Development Task Force and was included in the 1996 ALEC Sourcebook of American State Legislation. According to ALEC.org, the Resolution was re-approved by the Board of Directors on January 28, 2013. (Accessed on 7/14/2015).

ALEC Resolution Text

Summary

This resolution calls for state legislatures to establish a Joint Legislative Committee on Economic Freedom for the purposes of identifying legal and regulatory barriers to private investment and entrepreneurship, and proposing legislation on such other actions as may be necessary to remove such barriers.

Model Resolution

WHEREAS, a prosperous economy depends upon job creation through private investment and entrepreneurship; and

WHEREAS, greater private investment and entrepreneurship is associated with greater economic prosperity; and

WHEREAS, the unparalleled success of the American economy is the result of private investment and entrepreneurship; and

WHEREAS, unnecessary legal and regulatory barriers to private investment and entrepreneurship exist, especially in overly prescriptive licensing requirements, excessive regulations, and government pre-emption of business opportunities; and

WHEREAS, private investment and entrepreneurship are discouraged by unnecessary legal and regulatory barriers, reducing the potential for economic prosperity; and

WHEREAS, poverty is an issue of significant public concern; and

WHEREAS, there are significant geographical pockets of poverty, especially in urban areas, in which legitimate economic activity is substantially impeded; and

WHEREAS, various entrepreneurial opportunities that would require little investment are closed to potential low income entrepreneurs by unnecessary legal and regulatory barriers; and

WHEREAS, the only reliable and sustainable means for reducing poverty is for the poor to climb the income ladder through entrepreneurial activity and employment; and

WHEREAS, by facilitating entrepreneurship by the poor, a means of exit from poverty would be provided for such new entrepreneurs and their employees; and

WHEREAS, increased entrepreneurship and private investment in low income communities would increase levels of tax revenue, improving the financial condition of governments;

NOW THEREFORE BE IT RESOLVED that the legislature establish the Joint Legislative Study Committee on Economic Freedom for the purposes of (1) identifying legal and regulatory barriers to private investment and entrepreneurship and (2) proposing legislation or such other actions as may be necessary to remove such barriers; and

BE IT FURTHER RESOLVED that the Joint Legislative Committee on Economic Freedom shall identify any law or regulation, in whole or in part, that precludes or discourages:

Entry into or operation of any commercial business for any reason other than legitimate health and safety regulation, whether through licensing, franchising, or other regulatory or legal mechanism, or

Operation of public services by entrepreneurs, whether without subsidy or under competitive contract, consistent with legitimate public objectives. Legitimate public objectives shall mean the interests of the population at large and the interests of the users of the corresponding public service, and shall exclude the interest of any group smaller than the population at large, other than users; and

BE IT FURTHER RESOLVED that the Joint Legislative Committee on Economic Freedom shall identify as legal or regulatory barriers any practice or activity of any business or occupational licensing board or authority that exceeds the requirements of public health and safety; and

BE IT FURTHER RESOLVED that the Joint Legislative Committee on Economic Freedom shall identify as legal or regulatory barriers any legal or regulatory obligation to pay more, in wages or benefits, than the standard federal minimum wage, and any other labor or work rule legal or regulatory requirement that does not apply universally to all public and private employers in the particular business sector; and

BE IT FURTHER RESOLVED that the Joint Legislative Committee on Economic Freedom shall propose the most effective means of removing all identified legal and regulatory barriers to entrepreneurship and private investment; and

BE IT FURTHER RESOLVED that in its deliberations, the Joint Legislative Committee on Economic Freedom shall give priority consideration to business sectors with lower private investment requirements and business sectors anticipated to provide the greatest opportunity for expansion of entrepreneurship and private investment in low income communities; and

BE IT FURTHER RESOLVED that the Joint Legislative Committee on Economic Freedom shall report to the legislature no later (insert appropriate date, such as one year following ratification of the resolution), listing and describing the legal and regulatory barriers identified and the required corrective mechanisms.

1996 Sourcebook of American State Legislation