Final answer:
A person might not be a new licensee when applying for a license if they already hold or have held a similar license, or are renewing their existing license, in a different jurisdiction. Occupational licenses ensure professional standards but also act as barriers to new industry entrants.
Step-by-step explanation:
A person applying for a license might not be considered a new licensee if they have held a similar or the same license in another jurisdiction, or if they are renewing an existing license. In the context of occupational licenses, this situation could arise for professionals like doctors, lawyers, or real estate brokers who have already met the stringent requirements to become licensed in their field and are simply moving to a new state or renewing their credentials. The intent behind requiring an occupational license is to ascertain that a professional has met a certain level of education and passed relevant examinations, ensuring the quality of service for consumers. D espite the rationale behind them, occupational licenses also function as a barrier to entry in various industries. They can make it challenging for new entrants to compete, potentially resulting in higher prices and limited choices for consumers. This consequence is tempered by the government's judgment that the benefits of licenses, such as guaranteeing a professional standard and safeguarding the public, merit the impact on competition.