House Bill 1422, sponsored by Rep. Randy Boyd, would create a pilot program to reduce state regulations.
The way the bill works is the Mississippi Departments of Health, Transportation, Agriculture and Commerce, and Information Technology Services would have review its existing regulations, accept written comments from the public for 60 days following the review and conduct at least two public hearings for citizens and businesses to identify any rule or regulation that is burdensome.
The review would have to be conducted within 120 days of HB 1422 becoming law. Each of the agencies covered in the pilot program would have to reduce their regulations by:
- 10 percent by December 31, 2020.
- 20 percent by December 31, 2021.
- 30 percent by December 31, 2022.
According to the bill, if one of the agencies hasn’t reduced its regulations by 30 percent by February 1, 2023, the House Appropriations and Senate Finance committees would conduct a budgetary audit to determine the obstacles preventing the agency from reducing its regulations by 30 percent.
The Joint Legislative Committee on Performance Evaluation and Expenditure Review (PEER) would also have to conduct a review of the regulatory reduction efforts of the agencies involved in the pilot program and make a report to the legislature.
There’s plenty to cut. According to a study by the Mercatus Center at George Mason University, wading through Mississippi’s morass of regulations would take 13 weeks to absorb its 9.3 million words and 117,558 restrictions.
This bill is a good start at untangling the Gordian knot of Mississippi regulations, which choke businesses with compliance costs which are later passed on to consumers.
MCPP has reviewed this legislation and finds that it is aligned with our principles and therefore should be supported.
Read HB 1422.
Track the status of this bill and all bills in our legislative tracker.
House Bill 326, sponsored by Rep. Casey Eure, would raise the cap on annual sales for those in the cottage food industry to $35,000 and expressly permit operators to advertise on social media.
Currently, cottage food operators are capped at $20,000. This is the third lowest cap in the country, and only serves to discourage an individual from earning additional income. Neighboring Arkansas and Tennessee have no cap.
Also, the Department of Health had interpreted vague language in the current law that restricts internet sales to mean an individual could not share pictures on social media. Soon, cottage food operators began to receive notices from the department. They have since said they’ve stopped that practice, but the uncertainty remains. This will clarify for cottage food operators that they can, indeed, share images of food they make on social media.
An identical bill passed the House last year , but died in the Senate without a vote.
There has not been evidence to suggest that lightly regulated states pose a threat to public health as some like to indicate. The limitations really just serve to limit competition for established businesses. By eliminating restrictions in Mississippi, we can give consumers new options, grow the economy, and encourage entrepreneurship.
MCPP has reviewed this legislation and finds that it is aligned with our principles and therefore should be supported.
Read the bill here.
Track the status of this bill and all bills in our legislative tracker.
Senate Bill 2117, sponsored by Sen. Chuck Younger, and House Bill 1510, sponsored by Rep. Steve Hopkins, would require the state to recognize an occupational license from another state for military families.
These bills would require occupational licensing boards to issue licenses to military spouses who have obtained a similar license in another state. This would make it easier for military families to work when they move to Mississippi.
MCPP has reviewed this legislation and finds that it is aligned with our principles and therefore should be supported.
Track the status of this bill and all bills in our legislative tracker.
On March 12, the Senate overwhelmingly killed a bill to permit direct shipment of wine in Mississippi. This vote didn’t age well.
The bill would have made Mississippi the 44th state in the country to allow consumers to purchase wine and have it shipped directly to their house. Currently in Mississippi, a control state, you are limited to what the state has in stock, limiting your freedom to choose the wine you prefer.
If ABC doesn’t have it available, you don’t have the option without jumping through traditional government hoops. All to acquire a bottle of wine, something that’s been legal at the national level for 90 years.
But on deadline day, the bill came to the floor and was defeated 32-13. Just thirteen Republicans voted for the bill. A majority of Republicans voted no, as did the entire Democratic caucus.
Just a few days later, the legislature went home, schools were closed, and a large chunk of the state was shut down because of the coronavirus pandemic. Mississippians were staying in, and using technology to work from home, order groceries, and have food from their favorite restaurant delivered to their front door.
Almost overnight, we realized how important technology was, how it impacts virtually every area of our life, and how limitations generally come from government, not the lack of entrepreneurs. A glaring example, the inability to have alcohol delivered to your house in Mississippi.
If you wanted wine delivered to your house from a winery in California, or if you just wanted something from a local liquor store to be delivered via an app like Drizly, you are out of luck. After the direct shipment vote in the Senate failed, it looked like alcohol freedom was never coming to Mississippi. But the pandemic changed things. Soon, the Department of Revenue was repealing regulations.
DOR began allowing liquor stores to take orders online or over the phone, while providing curbside delivery rather than having to enter the retail establishment. Then as restaurants were forced to close their dining halls, DOR allowed customers to purchase a sealed bottle of wine with their to-go order. And finally, DOR began allowing residents of Leisure and Recreation Districts to order a mixed drink with their to-go order and take it home. All of these small changes were previously illegal, as ridiculous as that sounds.
All of a sudden, regulations that many of us have been saying were unnecessary as they simply limit consumer freedom were being lifted during an emergency so consumers could have more freedoms. We hear about “health and safety” often when listening to proponents of regulations, but we can safely write that during an actual health crisis, alcohol prohibitions don’t contribute to our health or safety.
If you didn’t want to go into a crowded store, it was quite the opposite. One could argue the prohibition on alcohol delivery makes us less safe. Or if you’re having a party at your house (while following social distancing guidelines, of course), you could also argue that it’s safer to have a new bottle of wine delivered rather than someone taking their chances on the road.
We know current prohibitions don’t stem from health and safety concerns, but from the protectionist tendencies that are built by the current government policies. It’s not inherently safer to purchase alcohol from a liquor store than a grocery store, but liquor stores have an obvious financial incentive, created by the government, to maintain their monopoly. At the same time, there are plenty of limitations on what liquor stores can sell that also serve no purpose.
But this is all overshadowed by the fact that all alcohol runs through a state warehouse, not a traditional distributor. And guess what would happen if we allowed Walmart or Kroger to sell wine? We wouldn’t have enough room at the warehouse and taxpayers would have to fund a bigger facility. Or so we are told.
I don’t know about you, but I don’t feel any safer by having the state handle alcohol. Nor are our roads safer because you can't buy alcohol from a grocery store or on Sundays (or Christmas Day).
Rather, we need to back away from overburdensome regulations and prohibition-inspired laws. While this will just be a footnote from the pandemic, when it comes to alcohol policy, we’ve learned to ease off protectionist monopolies and trust consumers and technology to allow the market to work.
The cottage food industry is a popular and growing slice of Mississippi’s economy. But as is usually the case, the state has not kept up with consumer demands in new markets and current laws are holding entrepreneurs in Mississippi back.
Of course, we are using the word “new” loosely. People have been selling food they make at home longer than we’ve had stores or restaurants. Still, it was just in the past few years that Mississippi “legalized” the industry.
But in a world where the economy has changed, where millions are out of work, and where we’re still a little unsure about going back to the office, home-based businesses like cottage food operations stand to grow even faster. If government allows the market to work.
The Mississippi cottage food law has an annual sales cap of $20,000. Most operators don’t approach the cap, but why is it there? This is the third lowest cap among states with a cap, something the majority of states, including Arkansas and Tennessee, do not even have. All the cap does is restrict an entrepreneur’s ability to earn a living, which then negatively impacts the state’s tax base. If a single mom can sell $100,000 worth of goodies she bakes in her kitchen while trying to homeschool her child during the pandemic, she should be able to.
The state has already said it is okay for her to make up to $20,000 in her kitchen, why can’t she make more? If “health and safety” is the concern, as established restaurants and bakeries would like to claim, it doesn’t matter whether they are making $5 a year or $10,000 a month.
But, of course, we know there’s no real health concern. There has not been evidence to suggest that the lack of comprehensive regulations pose a threat to public health as some indicate. Consumers know what they are purchasing, where they are purchasing it from, and that it does not come from a government-inspected kitchen. They willingly accept the so-called risk.
And as we know, today’s technology makes it easy to find high-quality food, read reviews from happy (or unhappy) customers, and make knowledgeable decisions. Online reviews and apps are doing the job of a government inspector. The free market is the most effective regulator. Instead of needing the cookie police, we know an individual who sells an awful-tasting cookie or cake won’t remain in business long.
The other unnecessary regulation on cottage food operators is a prohibition on internet sales. Initially, the Department of Health interpreted this to mean that you couldn’t even post a picture of the food you just made on Facebook or Instagram. We clearly had a lot of outlaws on the streets in Mississippi.
They even went so far as to send cease and desist letters to home bakers who dared to post pictures on social media. They’ve said that’s no longer their practice, but the vague law remains. Cottage food operators are also currently prohibiting from selling to restaurants and retail stores.
Fortunately, the legislature has shown an interest in expanding and updating the current law. While we don’t know exactly what bills the legislature will be tackling for the remainder of this session, the House passed a bill, House Bill 326, that would remove the internet prohibition and expand the cap to $35,000. While there is no reason for a cap other than protectionism, this is a step in the right direction. That bill passed the House unanimously and awaits action in the Senate.
By eliminating the current restrictions on the cottage food industry in Mississippi, we can give consumers new options, grow the economy, and encourage entrepreneurship. Barriers to economic liberty have long existed in Mississippi, but this is something we should be interested in removing, especially during the current times.
We need to embolden small business growth, even the smallest of businesses. Freeing home-based businesses like cottage food operators is the right thing to do.
This column appeared in the Starkville Daily News on May 19, 2020.
Technology has done amazing things for us, as individuals and as a society. We take our ability to order items online and have them delivered to our front door for granted.
We can order groceries online and either have them brought to our car in the parking lot without having to enter a store or have them delivered to our house. And that information we freely provide on Facebook and Instagram has allowed aspiring entrepreneurs to target us down to a specific niche with products we didn’t realize we wanted and most likely don’t need.
But perhaps it takes a pandemic for us to appreciate this technology and expand it. Because there are many other areas of our lives that could be positively impacted by technology, if only we would allow it.
As the coronavirus began to spread, two of the immediate healthcare concerns revolved around limited access to medical professionals and a fear of being in the same facility of someone who has the virus. After all, we’re supposed to be social distancing. Thankfully, telemedicine is available to provide you healthcare access in your living room.
To expand access, we began to see states waive the requirement that you can only use an in-state physician in March. Mississippi did that. And then just as quickly walked back that change to only allow this if you have a prior patient-physician relationship, greatly limiting your options as a consumer. Mississippians should be able to access the doctor or nurse practitioner of their choosing, regardless of the state they are licensed and whether or not you have had a previous face-to-face visit.
The same story holds in education. As every school in the state was shut down, an order from Gov. Tate Reeves called for all school districts to adopt distance learning for their students. Prior to that, Mississippi has had a number of chances to make online learning a reality. Unfortunately, the decision makers have shown no interest in the idea.
Mississippi has a virtual public school, but it’s simply a couple courses a student can take, not a full distance learning program. Every student in the state should have the ability to choose from a plethora of digital options to serve their needs. We are told how hard it is to bring teachers for specific subjects to the most rural or impoverished regions of the state. This could fill that void.
Moreover, virtual charter schools are prohibited in Mississippi’s limited charter law. Some states even have a hybrid mix of homeschool/ charter school facilities where students attend a couple days per week while still doing most of their education at home. Families are able to decide if and what is the best option for their children. Some do a 100 percent virtual program. But not here.
And the renewal of the Education Scholarship Account program for students with special needs strips online learning from the inclusion of educational expenses families can be reimbursed for, a move that was championed by opponents of the program. It hasn’t exactly aged well.
Where else do we limit technology? After healthcare regulations, the most commonly lifted regulations during the pandemic revolved around alcohol. Which makes sense because it is one of the most overregulated industries, often related to prohibition-era policies.
In another move that hasn’t aged well, the Senate soundly defeated a bill to allow direct shipment of wine to your house just a couple days before the legislature originally recessed. We then saw some alcohol regulations lifted by the Department of Revenue, but having alcohol delivered to your door – either what you purchase from a winery in California or by using a delivery app like Drizly, which functions similar to Uber Eats or DoorDash – remains illegal.
Is this the most important issue in the state? Obviously not. But it is symbolic of a state that often does not trust its citizens to make the best decision for themselves and rewards incumbents who play the political game. The technology is there, whether it’s for your child’s education, to sell food you make from home online, or something that an entrepreneur creates tomorrow, we just need to let it happen. Unleash technology and consumers will benefit.
This column appeared in the Meridian Star on May 8, 2020.
Healthcare has long lagged behind other industries when it comes to innovation. But that is usually because of regulations, not because of a lack of entrepreneurs.
Telemedicine is an option that has picked up momentum as the coronavirus pandemic spread and people began looking for safer options than an in-person visit at a healthcare facility. But it is often underutilized – both by healthcare professionals and individuals, often because of state or federal regulations.
The same is true of the delivery of medications.
About half the states in America, mostly west of the Mississippi River, allow some form of telepharmacy. What is telepharmacy? As the name implies, it is the delivery of pharmaceutical care via technology to patients at a distance, often in areas where access to a pharmacist is limited or not available.
The regulations around telepharmacy vary greatly by state. For example, a common anti-competitive regulation is to prohibit telepharmacies from operating near traditional pharmacies.
This may be another store, which serves as an expansion of a current retail pharmacy or a kiosk.
The store-based model is staffed by one or more certified pharmacy technicians, supervised by a pharmacist, who reviews prescriptions and conducts live-video consulting with patients before drugs are dispensed.
Beyond stores, we also have kiosks that allow patients to get their prescription from what is essentially a vending machine. When we speak about social distancing, this is the tool that can meet that need, along with newfound convenience.
No, you can’t just go and get whatever you’d like without a prescription. The kiosks, which have a pharmacist on call for your help, have a digital address to which prescribers can e-prescribe or users can scan their phone with their prescription. Depending on the provider, you can upload your prescription to an app and know when it will be ready. Customers then enter their identification and insurance information and can pay with cards or cash. In some cases, the kiosks may be outside a hospital or on a college campus. Or they may be outside a retailer.
We’ve seen this technology before. Similar to ATM machines or RedBox, the kiosks provide a new level of convenience – as well as privacy – to customers. And they usually cost less without the staffing and other overhead expenses usually incurred by traditional brick and mortar pharmacies.
This is technology that is available today that is benefiting residents of other states. It can lead to cost savings for consumers and allow us to keep our distance in a world of social distancing.
First, Mississippi would need to legalize the technology.
In this episode of Unlicensed, MCPP’s Brett Kittredge talks with James Broughel of the Mercatus Center at George Mason University about the regulatory changes we have seen in light of the coronavirus pandemic and where we go from here.
As a virus sweeps across the nation, it was revealed that we were critically short on certain medical necessities including hand sanitizer, masks, and ventilators. Many feared for what would be a soon to come shortfall on these items that are medically critical to prevent further spread of the virus and effectively treat those who have it.
Thankfully, private enterprise has stepped up to the plate in a historic way. Businesses are transitioning to fill the existing gaps and provide the supplies that the country needs. In Mississippi, we have seen local business leaders bravely take risks in order to fill critical medical needs.
A few days ago, I had the chance to speak with Wright Scott of Great Scott, a high-end clothing store from Jackson that many across Mississippi know well. Wright and his dad, who founded the company in 1986, have shifted their business and have now produced a large quantity of masks to support local healthcare workers.
It’s the classic American small business success story. What started as one man’s vision almost 25 years ago is now a thriving part of the North Jackson economy and culture. Esquire Magazine even ranked Great Scott in the top 50 of men’s stores across the entire country. Before the virus outbreak, they had a thriving professional clothing store, tailor, and even barber shop.
Unfortunately, the virus struck at the height of their events season from February to May, forcing them to shut down the store at a critical time. They acted quickly to transition their business model as much as they could. Great Scott has used a variety of technological approaches including email, texts, calls, and FaceTime to connect with their customers and check in on them.
A trip to New York, before the crisis began, showcased to Wright the rising trepidations over the virus, and he saw this upon his return to the store as more and more people feared the spread and began to change their habits. He knew that precautionary measures needed to be taken, and so the store took very early steps to guarantee as sanitary and safe an environment as possible. Wright noted to me that, “as a business, they just want to do the right thing.”
As of this writing, since shelter-in-place orders were enacted, approximately 26 million people have been forced to file for unemployment. Recognizing this, the blessing of continued employment has become all the more critical for folks trying to keep bread on the table. As Wright noted to me, “we consider everyone who works here as part of our family.” To Great Scott, this wasn’t just an aspirational principal, but something they acted on as they gave all of their tailors the opportunity to stay employed through the store.
Retaining their tailors allowed them to answer the call when Methodist Rehabilitation Center reached out to see if Great Scott might be able to make them masks. With haste, the experienced tailors of the store moved to begin making high end masks that would ensure the safety of MRC workers. Wright wasn’t the least bit surprised that his tailors were able to make the transition to masks, saying that “not only are they great tailors, but they’re great people. They can do anything!”
When it comes to reopening, the Great Scott team is hoping to get back to work as soon as possible, so they can begin once again making suits and reconnecting with their customers at the store. As to when this might be, Wright noted that he’s “hoping that’s sooner rather than later,” but his primary concern is everybody’s healthy and safety stating that, he “want[s] to do what’s best for the store, the employees, and also what’s best for everyone beyond his own walls.”
At the moment, Wright stated that they don’t have any plans to continue a luxury mask line once this crisis comes to an end, but he’s open to it if people want them. However, business will undoubtedly be different moving forward. We will likely see a transition to a shopping environment that continues to mandate limited numbers present in stores and alternative means of connection with customers, including digital options.
While many are likely missing the experience of shopping at Great Scott or getting a haircut or suit tailored there, I think that folks will appreciate the store all the more in the future, especially knowing how Wright Scott and his team took business risks to help his community when it was most in need. As Wright said to me with such great truth, “as a society we’ll emerge from this even stronger.”
I think we all hope that that’s the case, and look forward to the day, not too far in the future now, that we can return to more regular work and life routines.
These actors deserve to be highlighted, and so the Mississippi Center for Public Policy is publishing a series dedicated to doing just that. Over previous weeks, we’ve highlighted businesses making masks, making hand sanitizer, and aiding the move to online education. We aim to continue showcasing the stories of these local businesses, who have willingly given up their normal operating procedures to help as many people as they possibly can.
If you know of a local Mississippi business that is helping those in need during this critical time, we’d love to highlight the work that they’re doing. Please email Hunter Estes via [email protected] to discuss further.