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The Industrial Exemption: Which States Have Them and Which States Do Not? - PE Licensing

The Industrial Exemption: Which States Have Them and Which States Do Not?

This is the second in what will be a series of articles regarding industrial exemptions to engineering licensure requirements in state engineering statutes. The NSPE Licensure and Qualifications for Practice Committee has a charge this year to examine industrial exemptions. The current status of industrial exemptions in each jurisdiction is described below.

A few years ago, Neil A. Norman, P.E., currently a member of the Washington Board of Registration for Professional Engineers and Land Surveyors, prepared an outstanding summary of the genesis of industrial exemptions in the U.S. This treatise makes for interesting reading.

NSPE’s General Counsel Arthur Schwartz prepared a listing of the verbatim language in each state’s engineering statute regarding exemptions for either utilities (electrical and/or telecommunications) or manufacturers.

The table below provides a summary of the status of industrial exemptions in the U.S. as of 2010. This summary is taken from a table prepared from the listing above. The characterizations of each state aren’t definitive, and a few of the statutes aren’t entirely clear as to whether the industrial exemption applies to manufacturing, utilities, or both. The state-by-state summary, and the overall summary below, provide a general sense of where things stand today. For definitive information on each state, read the statute, and contact the state PE board for clarification.

Status of Industrial Exemptions in U.S. Jurisdictions, 2010

 

 

Number of Jurisdictions

 

Total Population
(in millions, 2009)

 

No Industrial Exemption

 

9 

30 

Industrial Exemptions for Utilities Only

 

6 

56 

Subtotal, Jurisdictions with No Industrial Exemption for Manufacturing

 

14

74

Jurisdictions with Industrial Exemptions for BOTH Manufacturers and Utilities

 

25

137

Jurisdictions with Industrial Exemptions Only for Manufacturers, not Utilities

 

11 

86 

Subtotal, Jurisdictions with Industrial Exemptions for Manufacturers

 

36

223

Jurisdictions Unclear (Michigan) 

1 

10 

Total 

51 

307

The eight jurisdictions that currently appear not to have any industrial exemptions are Arkansas, Hawaii, Minnesota, Montana, New Hampshire, Oklahoma, South Dakota, and West Virginia. Those jurisdictions that have industrial exemptions for utilities, either electrical or telecommunications, or both, but do NOT appear to have industrial exemptions for manufacturers are Alabama, California, the District of Columbia, Nevada, South Carolina, and Tennessee.

The majority of jurisdictions (36 of 51), having a combined 2009 population of 223 million people or 2/3 of the U.S. population, have engineering statutes that exempt employees of manufacturing firms.

So, that’s what we have now.

Editorial input for this article was provided by J. Steven Almon, P.E., L. Robert Smith, P.E. and Bernard R. Berson, P.E.

Published Wednesday, October 06, 2010 11:37 AM by Craig Musselman, P.E., F.NSPE

Comments

# re: The Industrial Exemption: What States Have Them and What States Do Not?

The law regarding engineering practice in the state of Ohio most certainly does have an industrial exemption which is implicitly written into the definition of engineering.  What we would define as the design and/or production of manufactured products falls outside of the legal definition of engineering and thus provides for an implicit industrial exemption.

Wednesday, October 27, 2010 8:41 PM by Jeff in Ohio

# re: The Industrial Exemption: What States Have Them and What States Do Not?

Could you please send me a break down of these two categories (that were not detailed out in the article):

1) Jurisdictions with Industrial Exemptions for BOTH Manufacturers and Utilities.

2) Jurisdictions with Industrial Exemptions Only for Manufacturers, not Utilities.

Thank you!

bill.whitworth@aes.com

Wednesday, October 27, 2010 11:01 PM by Bill Whitworth (bill.whitworth@aes.com)

# re: The Industrial Exemption: What States Have Them and What States Do Not?

Craig,

Very interesting information. Am I correct in understanding that California has no industrial exemption for manufacturing companies? Most of the "engineers" that I am aware of that work for high tech silicon valley companies are not licensed. Does this mean that they or their employers can be prosecuted?

Thanks,

Jim

Thursday, October 28, 2010 4:07 PM by James C. Oswalt, P.E., CSP

# re: The Industrial Exemption: What States Have Them and What States Do Not?

This is great information.  Thanks for compiling it for us.  The TN Society will be looking at the issue and this is a great place to start.

Thursday, October 28, 2010 4:22 PM by Candy Toler

# re: The Industrial Exemption: Which States Have Them and Which States Do Not?

The Industrial Exemption Table prepared by NSPE’s General Counsel Arthur Schwarz is great info. on the topic.  The table would be much better if there was the legal citation of where in each of these state codes such text is found.  Can that be put into the table as well as a date the information pertains to as if the law changes, the text will no be current.

Friday, March 18, 2011 12:16 PM by Dave Devine

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