Wednesday, April 13, 2011

Deregulation good for economy. Maybe.

Floridians might have jobs galore pretty soon if all the deregulation bills now in the Legislature pass for the governor’s signature.

It’s open, free for all market. Just be sure as a consumer what you’re getting into when you shop for services in Florida.

Supporters say the idea is to make it easier for small business owners to set up shop. For example, interior designers who can’t get a license will now be able to expand their business. They accuse currently licensed designers of being a “cartel” that monopolizes the market.

Opponents say regulations protect consumers while giving them a way to know if services are properly delivered.  For example, SB 1330/HB 0885 would take away the Office of Insurance Regulation's ability to approve rate hikes and would allow companies to increase rates by 30 percent or less each year.

CS/HB 5005, “Deregulation of Professions and Occupations,” is a massive deregulating bill that affects athlete agents, auctioneers, auctioneer apprentices, barbers, body wrappers, charitable organizations, community association managers/firms, condominiums and cooperatives, dance studios, employee leasing companies, hair braiders, hair wrappers, health studios, home inspectors, interior designers, interstate movers, landscape architects, nail specialists, mobile home lots, mold-related services, motor vehicle repair shops, professional geology, professional surveyors and mappers, rooming houses, travel agents, talent agents, telemarketing, timeshares, yacht and ship brokers, water vending machines, television tube labeling, sales representative contracts.

CS/SB 524, “Seaports,” deletes provisions relating to statewide minimum standards for seaport security.  And SB 436, “Seaport Security,” deletes provisions requiring the Department of Law Enforcement to establish a statewide seaport access eligibility reporting system.
Deregulation is a difficult balancing act. It is true that that an unregulated marketplace opens opportunities for entrepreneurs. However, it also opens the doors to scams, exploitation, fraud and rip offs.

(This is good news for the TV guy “for the people.”)

As much as we hate it, the “heavy hand of government” often slaps the citizenry when businesses get carried away and abuse consumers.

Take for instance, HB 451, “Commercial Parasailing,” now in the Legislature, which provides licensing and liability insurance for persons conducting commercial parasailing operations. This bill comes in response to 27-year-old Alejandra White’s injuries last year, after she was dragged at 40 mph when a towline connecting the sail to a speedboat snapped off Clearwater Beach.  She smashed into several umbrellas - before finally slamming into a 4-feet wooden volleyball pole.

I believe deregulation is a good idea in general. It’s good economics at this time. I just hope the efficiency of the marketplace works out and people don’t blow it.


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