Green light for social reinsertion! Law allows ex-convicts to obtain occupational licenses in Puerto Rico; ILE celebrates milestone.
Photo: InDiario
The Puerto Rico Institute for Economic Freedom (ILE) celebrated the signing of the Law Num. 3-2025 Jenniffer González Colón, calling it her “first public policy achievement”. The new law, which originated in Senate Bill 31 introduced by Senate President Thomas Rivera Schatz and Senator Joanne Rodríguez Veve, establishes that having a criminal record will no longer be an automatic impediment to obtaining professional licenses in Puerto Rico.
According to the law, no examining board under the Department of State or the Department of Health “may reject outright the application of an applicant for a profession [...] on the grounds that he or she has a criminal record.” Instead, boards will now have “a duty to individually review the application of an applicant who has a criminal record and determine his or her eligibility.” This evaluation must take into account four key factors: the legal requirements of the profession, “the nature of the offense,” whether the applicant is on probation or parole, and whether the record “is directly and specifically related to the duties and responsibilities of the occupation for which he or she is applying.”
The ILE emphasized that this elimination of the general prohibition was one of the main recommendations of its public policy report entitled “Unleashing Potential, The Burdens of Occupational Licensing and How It Can Be Reformed in Puerto Rico”. The institute celebrated this milestone, which they described as “the fruit of a year and a half of research in collaboration with the University of Puerto Rico, the Institute for Justice and the Knee Regulatory Research Center at West Virginia University.”.
The ILE statement argues that Law No. 3-2025 is crucial for social reinsertion. By allowing people with criminal records to apply for occupational licenses, it “gives them the opportunity to insert themselves into society and work to support themselves and their families.” The organization cited data indicating that restricting occupational access to ex-offenders can increase the rate of criminal recidivism “by more than 9%; this figure is 3.5 times the average of 2.6%.”.
Finally, the ILE contextualized this bill as part of a broader Senate-driven reform effort based on their recommendations. They indicated that S. 31 is part of a package of four measures (along with S. 6, 274 and 275) introduced by Rivera Schatz. According to the ILE, occupational licensing reform “represents an opportunity to facilitate labor force participation and balance protecting the public with creating more accessible and equitable avenues of economic freedom for all.”
Rivera Schatz details agenda against “suffocating overregulation” at ILE forum
In a recent forum organized by the Institute for Economic Freedom and the Puerto Rico Chapter of the Federalist Society, Senate President Thomas Rivera Schatz outlined the legislative strategy he is promoting against what he called "suffocating overregulation. Before an audience of professionals, lawyers and businessmen, Rivera Schatz affirmed that this fight “is not an ideological fight,” but "the battle to take the foot off the foot of those who want to work, those who want to start a business, those who want to move forward.
The President of the Senate detailed several pieces of legislation presented to combat these barriers. He mentioned Senate Bills 274 and 275, aimed at standardizing processes in examining boards, establishing the automatic approval of provisional licenses due to agencies' inaction, and eliminating requirements or deregulating professions where the license did not contribute to public safety. He also referred to Senate Bill 81, which seeks to expedite permits by establishing that the lack of response from a consulted agency implies that it has no objection.
Rivera Schatz specifically highlighted Senate Bill 31, now Senate Bill 3-2025 (discussed earlier in this report), which prohibits automatic rejection based on a criminal record and requires individualized evaluation. He called this measure an “act of justice” and a way to promote “truly second chances,” adding, “Because we firmly believe that a past mistake, already served before society, should not be a life sentence that prevents a person from earning an honest living!” He also mentioned Senate Bill 273 to modernize government structures such as the Institute of Puerto Rican Culture, seeking to eliminate duplicity and streamline permits.
The senatorial leader called on those present, whom he described as “indispensable allies” and “protagonists of this process”, asking for their ‘expertise’ to identify obsolete regulations, “concrete and well-founded proposals”, and their “voice in the public debate” to educate and “actively combat misinformation”. He pledged a partnership based on candor, where the answers, whether yes or no, will be clear and substantiated, because, he said, he believes in the “efficiency of truth.”
Finally, quoting Ronald Reagan - “the best social program is a job” - he reaffirmed that the goal of these reforms is to create conditions for private initiative and decent work to flourish. He assured that this agenda “is not a static stamp; it is a work in progress” that requires vigilance and continuous action. He thanked the ILE and the Federalist Society for the platform and their commitment.
Background: legislative momentum for licensing reform
The recent approval of Act No. 3-2025 and the remarks made by Senate President Thomas Rivera Schatz at the Institute for Economic Freedom (ILE) forum are part of a broader legislative effort initiated last March to reform Puerto Rico's occupational licensing system, as previously reported by INDIARIO.
At that time, Rivera Schatz presented a package of measures aimed at eliminating bureaucracy and facilitating access to the labor market. Among them was Senate Bill 6, co-sponsored by Senators Migdalia Padilla Alvelo (NPP) and Joanne Rodríguez Veve (Proyecto Dignidad), which proposed the automatic recognition in Puerto Rico of professional and occupational licenses issued in the 50 U.S. states, seeking to attract talent, especially in the health sector.
Senate Bill 274 was also filed, which sought to modernize and streamline the processes of the Examining Boards attached to the Department of State, establishing maximum terms of 30 days to resolve applications and the automatic approval of provisional licenses in case of non-compliance. The justification was that the current processes were “inconsistent, burdensome and bureaucratic, seriously affecting our economic development”.
Perhaps the most ambitious measure in the original package was Senate Bill 275, titled “Puerto Rico Occupational Licensing Reform Act”. This bill proposed the elimination of several occupational licenses (such as those for public relations, actors, interior designers, barbers and beauty specialists, among others) arguing that “Puerto Rico has at least fifteen (15) occupational licenses that are not required in any other state or that are only required in less than five (5) states,” which limited competition.
This legislative effort was supported by findings from previous studies. A September 2022 report by the University of Puerto Rico (UPR) revealed the existence of 129 occupations with mandatory licensing on the island, many of them not required or with more lax requirements in the U.S. Likewise, a February 2023 study by the Institute for Economic Freedom (ILE) already highlighted the negative impact of this overregulation on job creation and labor mobility.
This article was published originally in Spanish by InDiario.
