If the real goal is to protect consumers against fly-by-night operations, the state could encourage such firms to acquire bonding and insurance with mandated coverage limits, or provide a state website where consumers could verify which firms carry such coverage. The existing law, requiring prospective entrepreneurs to prove their operations won’t affect existing firms, doesn’t accomplish that goal. Instead, it’s a protection racket – like barring Burger King and Wendy’s from locating in a town that already has a McDonald’s.
Pacific Legal already has successfully challenged similar laws in Oregon and Missouri, and it recently filed a lawsuit in Kentucky to challenge that state’s mover licensing laws. Regardless of the outcome of Mr. Underwood’s legal challenge, the 2013 Legislature should repeal this protectionist law, opening the moving business to all comers. Then they should take a similar look at the taxi cartel.