Constitutional Limits on State Residency Rules for Professional Licensure

In the case of Polk v. Crawford, the United States Court of Appeals for the Fifth Circuit addressed whether Texas could constitutionally deny an escrow-officer license based solely on an applicant's geographic residency. The plaintiff, an attorney living in Illinois, challenged a state law that restricts licenses to residents of Texas or its adjacent states, arguing it violated the Privileges and Immunities Clause of Article IV. The court determined that escrow work is a protected common calling essential to the national economy, meaning the state cannot discriminate against nonresidents without a substantial justification. Because Texas failed to prove that residents of distant states pose a unique risk compared to those in neighboring states, the court found the law likely unconstitutional. Consequently, the appellate court reversed the lower court's decision and ordered a preliminary injunction to allow the plaintiff to pursue his profession while the litigation continues. This ruling emphasizes that geographic happenstance cannot serve as a valid legal barrier to professional opportunities in a national economic union.