MAY 16, 2012

Who Should Need the Government's Permission to Work?

What's more dangerous, an incompetent barber or incompetent emergency medical worker? Most people would say and EMT, but a barber has to undergo almost nine times the hours of training as an EMT before they can get a license to practice in Pennsylvania.

The Institute for Justice this week released a new report looking at occupational licensing requirements across the 50 states for mid- and low-income jobs. They discovered dramatic occupational licensing inconsistencies that undermine the public safety argument used by licensing proponents. For instance, only three states license interior designers and only five states license shampooers.

In Pennsylvania, 44 of the 102 occupations surveyed required licenses, including manicurist and upholsterers. Overall, Pennsylvania's occupational licensing burden is lighter than many states—ranking 38th among the states in licensing burden on residents, due to relatively low fees and education requirements.

As we've pointed out before, these regulations are often not about protecting consumers, but preventing competitors to existing businesses. For those truly worried about ugly living rooms from unlicensed interior designers or a bad hairdo from an unlicensed hair braider, there are less costly ways to protect consumers.

posted by ELIZABETH STELLE | 03:52 PM | 0 comment

MAY 15, 2012

New Healthcare Regs Would Cost PA Taxpayers $50 Million

A bill on the floor of the state House would circumvent consumer freedom when it comes to prescription drugs. Many employers, including the state, encourage employees to buy less costly prescription drugs through mail order pharmacies.

HB 511 would prohibit companies from offering incentives to employees to utilize mail order pharmacies.

Prohibiting incentives to use mail order drugs would cost state taxpayers nearly $50 million in the first year, according to a Pennsylvania Office of the Budget analysis. HB 511's fiscal note states:

As a cost-savings measure, OA [Office of Administration] and PEBTF [Pennsylvania Employee Benefit Trust Fund] have encouraged the use of a mail order pharmacy. HB 511 would eliminate these savings, increasing overall costs by decreasing the effective discount rate and guaranteed minimum formulary rebate and increasing the dispensing fee. . . Although HB 511 allows for the possibility of an exemption for PEBTF, the process for evaluating and determining such an exemption is unclear. Assuming that the PEBTF is not exempt from the requirements of HB 511, we anticipate an increase of more than $47.5 million in the first year alone.

Even with an exemption for state employees, is it fair to enact one set of rules for government and another for private business? HB 511 is an anti-competitive bill that takes away choices from consumers in order to enact a one-size-fits-all system that will increase health insurance costs.

posted by ELIZABETH STELLE | 02:40 PM | 2 comments

SEPTEMBER 8, 2011

Senseless Regulations Cause Job Loss

Tuesday's Pennsylvania Independent article on the new state independent contract rules demonstrates the clear need for regulatory streamlining in the commonwealth. After Deborah Webster's husband lost his job, she started cleaning buildings part-time as a contractor. She kept her cleaning job after her husband found new work, in part to help subsidize her son's private education. But when state lawmakers passed HB 400, nicknamed the Subcontractor Extinction Act last year, she quickly learned she could no longer earn a living that way.

As CF reported last year, the new union-backed law makes it difficult for companies to hire independent contractors, a goal of construction union bosses. While the law was intended to affect only the construction industry, it has, as predicted, spilled over into other contracting fields. Webster realized she couldn't afford to comply with the new law, which mandates the purchase of liability insurance.

Pennsylvania lawmakers should look to reduce mandates—such as HB 400—that inhibit economic growth, and repeal costly regulations that only benefit special interests. Check out CF's report Streamlining State Government to learn more.

posted by KATRINA CURRIE | 00:10 PM | 0 comment

SEPTEMBER 2, 2011

Pennsylvania Lost $5 Billion in Annual Income from Residents Movin' Out

When it comes to interstate migration, Pennsylvania is among the biggest losers of residents and the income they earn, according to a Tax Foundation map using IRS data. Between 1999 to 2009, Pennsylvania lost $4.9 billion in net annual income from residents who moved to states, most with lower taxes, less regulation and greater job growth.

posted by KATRINA CURRIE | 02:22 PM | 2 comments

JUNE 21, 2011

PA Ranks 27th on Economic Freedom Index

The Mercatus Center's annual report of the Freedom in the 50 States ranked the Keystone State 27^th in economic freedom. Pennsylvania's overall freedom ranking has declined three places since 2007. Mercatus ranked both Pennsylvania's fiscal and regulatory policy as mediocre. The analysis noted consistent increases in health care mandates that raise the cost of coverage and higher than average spending on  transportation and welfare.

Here's a few highlights:

• State and local taxation as percentage of income: 10.4%
• State and local debt as percentage of income: 23.7%
• State and local government spending as a percentage of income: 22.4%
• Health insurance mandates added cost to premiums: 42.9%
• Workforce covered by a state-level occupational license: 22.4%

You can also play policymaker and use the state freedom calculator to see what reforms would give Pennsylvanians greater economic freedom. To read the entire report click here.

posted by JONATHAN HUMMA | 11:19 AM | 0 comment

MAY 9, 2011

Should States Stop Regulating Telephones?

Land line use in the United States continues to decline as more households are going "wireless" and relying exclusively on their cell phones. About 17 percent of Pennsylvania households fall into this category.

Telephone regulations are extremely complicated and were designed for an era with little competition. New wireless products are regulated exclusively by the federal government, not by states.

All this has many states questioning whether they should continue to spend precious time and resources regulating land-line phones. More than 20 states have abandoned strict telecommunications regulation, and this year Florida, New Jersey, Texas and Wisconsin have debated the issue.

Pennsylvania's costly and complex telecommunication regulations were a focus of our recent streamlining government report.

posted by ELIZABETH STELLE | 03:00 PM | 0 comment

APRIL 14, 2011

Good News for Home Builders

Back in January 2010, I noted the unwise decision by the Department of Labor & Industry to implement new building codes based on recommendations by the International Code Commission (ICC). The most costly and controversial was the requirement that sprinklers be included in every new home built, adding $6,000 to the cost of homes.

Good news for future home builders, HB 377 (subscription required), which repeals the sprinkler mandate and requires a two-thirds majority vote before implementing future ICC recommendations, has been sent to the governor.

While the ICC is followed by 48 of the 50 states, virtually no states are implementing the 2009 recommendations because of the burdensome and unnecessary mandates—further, 20 states still comply with the ICC's 2006 residential code. Other states such as Minnesota, New Jersey, Texas and South Dakota have decided that all or parts of the 2009 code are not in the best interests of the public and refused implantation.

Without HB 377, Pennsylvania would continue to automatically adopt new ICC building codes regardless of their economic impact or better alternatives.

posted by KATRINA CURRIE | 02:53 PM | 0 comment

NOVEMBER 17, 2010

PA House Passes Recycling Mandate

Monday's State House voting session focused on the pension bailout, but in the flurry of activity, a little discussed recycling bill that will cost manufacturers thousands annually and deter new tech start-ups passed with only 26 no votes.

HB 708 requires manufacturers of computers and TVs to collect and recycle their old products. Special interest groups tout the bill's creation of "green jobs," but, as usual, they leave out the part about higher administrative costs that will undermine any manufacturing start-ups, costing "jobs of other colors". And the costs are significant—a $5,000 annual registration fee!

Additionally, the Department of Environmental Protection (DEP) is given expansive power to determine recycling quotas and levy fines. Manufacturers must submit plans for DEP's approval. If a manufacturer doesn't recycle its quota, as determined by DEP, it must pay a fine to make up the difference, plus a 10% penalty. The program is expected to cost $430,000 each year—funded by the fees and fines placed in a restricted revenue General Fund account.

Environmentally-conscious consumers already have a variety of recycling options. CostCo, Best Buy, and Staples are just a few of the retailers who accept used electronics, and some reward you with gift cards. Consumer may also donate used appliances to schools or charities like Goodwill. In the end, this bill relieves the individual of personal responsibility, and forces it upon manufacturers through a new mandate that can only result in less productivity, fewer jobs, and higher consumer costs.

posted by ELIZABETH STELLE | 01:00 PM | 0 comment

NOVEMBER 9, 2010

The New Food Justice Agenda

The food police are coming to Pennsylvania. The Pennsylvania State Board of Education is considering new nutrition guidelines for events at public schools, which would mean the end of cake and cookies at birthday celebrations in class. The new guidelines would only allow one birthday celebration a month, three holiday parties a year, and only one dessert per party; all other food would be ordered from the district's food services. If a school didn't comply, it would lose federal aid reimbursements, and the food police would remove school vending machines.

Earlier this year, we reported on the national attack against Happy Meal by the Center for Science in the Public Interest (CSPI), which is ironic since science (i.e., an evidence-based case for assertion) does not support the CSPI claim that advertising has an independent effect on childhood weight gain.

Despite statistical evidence and common sense that says parents should be in charge of their children's diets—it appears San Francisco, CA is going ahead with the happy meal toy ban.

San Francisco Supervisor Eric Mar stated that the city is part of a "food justice" movement, but giving government power over the diet of our children feels more of an attack on personal responsibility than justice. Parents are capable of making smart nutritional decisions for their children, both when deciding where to eat out and during school events.

posted by KATRINA CURRIE | 03:00 PM | 0 comment