Florida’s agency laws promote fair competition | Opinion
A recent article in the Tallahassee Democrat highlighted important facts regarding our state employment workforce. Most notably, the article detailed how Florida has the most efficient and lowest cost per capita state government in America.
During the past 30 years, our governors – several of whom I served under – saw the need to keep Florida’s employed workforce lean. And to a large extent that has been a successful strategy.
Florida has been successful at keeping our overhead low while providing necessary consumer protections and here is one way we do that.
In businesses that deal with consumer or taxpayer dollars, we rely on state-licensed agents; licensed professionals who must meet regulatory requirements and are trained, tested, and certified to act ethically, disclose key information to consumers and follow prescribed state regulations. This model is especially vital in areas where the public’s money is involved – areas like real estate or financial services where consumers could be especially vulnerable.
Does the system work perfectly? No. That is why each year, lawmakers return to review the systems and make necessary adjustments as needed and why it is possible, with the right leadership and judicious use of resources, to have strong and efficient oversight.
It is important to recognize that our government should not be a hammer squelching business or stymying competition, but should promote a vibrant, competitive marketplace while protecting those who are unable to protect themselves. In this regard, the process of licensure and agency – with a strong enforcement mechanism to hold agents accountable – is a proven model that works.
With that in mind, I am disturbed by a new and what appears to be a growing trend where certain businesses are by-passing this system to do an end-around the laws that protect Florida’s businesses, workers and consumers alike.
For example, recently the Florida Department of Business and Professional Regulation received a complaint that a very large out-of-state company by the name of Deel (which is noted as one of the largest employee leasing companies in America) was allegedly by-passing our state’s laws to act without a license while offering employee leasing services. To make matters worse, it appears that Deel may have also been offering insurance products – again, without a license to do so. After reading the complaint and observing other business trends, I am deeply concerned that this complaint is a harbinger of things to come. If left unchecked, this system is going to get worse; worse for businesses that do comply with the law, worse for consumers who may experience bad outcomes, and worse for taxpayers who must ultimately foot the bill.
I think it’s fair to say that additional laws may be warranted to promote better consumer protection and enhance our regulatory architecture. As the leanest state in America, we operate under a cost-effective model that promotes consumer protection and provides a framework to hold wrongdoers accountable.
But as this disturbing trend appears to be on the upswing, it may be time for us to tighten the reigns on out-of-state employing leasing companies who are not licensed and do not play by the rules that are in place to promote a competitive marketplace that is reasonably safe and fair for everyone.
Kevin McCarty was the first person to hold the position of Florida Commissioner of Insurance Regulation since it became an appointed position. While serving in the role, his focus was stabilizing the Florida property insurance market, reforming personal injury protection law and protecting consumers. McCarty founded Celtic Global Consulting in 2016.
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This article originally appeared on Tallahassee Democrat: Florida’s agency laws promote fair competition
