Tuesday, September 2, 2008

Designing Cartels Through Censorship

"Designing Cartels through Censorship" by
DICK M. CARPENTER II AND JOHN K. ROSS

http://www.cato.org/pubs/regulation/regv31n2/v31n2-3.pdf

A must read for anyone interested in Interior Design Legislation.

Wednesday, August 27, 2008

NARI Joins With the NKBA To Oppose ALL forms of INTERIOR DESIGN TITLE AND PRACTICE ACTS

August 18th, 2008

NARI Joins With The NKBA To Oppose Interior Design Title And Practice Acts

The National Association of the Remodeling Industry issued the following news release:
The National Association of the Remodeling Industry (NARI) has joined with the National Kitchen & Bath Association (NKBA) and other national organizations in opposing restrictive and unnecessary design regulation. The proposed regulation stems from the efforts of a small, but influential group of interior designers who are lobbying state legislatures across the United States for legislation that would regulate who may provide interior design services to the public and would prohibit the large majority of designers from practicing their profession.

"The NKBA is very pleased to have NARI join us in our efforts to oppose the attempts of a handful of interior designers who seek to limit their competition by imposing arbitrary licensing restrictions on the design community," said Edward S. Nagorsky, General Counsel and Director of Legislative Affairs for the NKBA. "There is a concerted effort on the part of a select few designers who insist that everyone seeking to practice interior design attend their approved schools, pass their approved exam, and apprentice under them, all without any demonstration that the current practice of interior design by those who don't meet these self-imposed standards is in any way a cause for concern. Such unnecessary and anti-competitive legislation will limit consumer choice in retaining the services of a professional designer, while increasing the costs of design services beyond the reach of the ordinary consumer."

The broad sweep of the proposed regulation includes many of the services that members of NARI provide on a daily basis. "NARI resolutely supports the NKBA's efforts on this issue," said Gwen Biasi, Director of Marketing and Communications for NARI. "It is essential to protect the remodeling industry from disruptions in businesses that already face significant challenges by market conditions."

The NKBA has been instrumental in educating the design community about these attempts to limit the market for interior design and dictate who may or may not provide these services. Through its legislative website at www.capwiz.com/nkba, in addition to articles, publications, and presentations to local NKBA chapters, trade associations, and other grassroots organizations, much of the industry is now aware of what is at stake.

NARI joins the NKBA, American Institute of Architects (AIA), Interior Design Society (IDS), and the International Furnishings and Design Association (IFDA), in addition to numerous other organizations, in their efforts to defeat interior design licensing. For more information on title and practice acts, please visit www.capwiz.com/nkba or contact Edward S. Nagorsky, NKBA General Counsel and Director of Legislative Affairs, at 800-THE-NKBA (843-6522).

About the NKBA
The National Kitchen & Bath Association (NKBA) is a non-profit trade association that owns the Kitchen/Bath Industry Show & Conference (K/BIS®). With more than 40,000 members, the NKBA has educated and led the kitchen and bath industry for 45 years. The mission of the NKBA is to enhance member success and excellence, promote professionalism and ethical business practices and provide leadership and direction for the kitchen and bath industry worldwide. For more information, please visit the NKBA Press Room at NKBA.org/Press or call 800-THE-NKBA (843-6522).

Contact: Gwen Biasi, Director of Marketing and Communications, gbiasi@nari.org

Monday, August 11, 2008

NKBA Applauds Governor Patrick's VETO of HB 4731-Massachusetts Interior Design Legislation

From Ed Nagorsky of the NKBA:


MASSACHUSETTS GOVERNOR VETOES INTERIOR DESIGN BILL:

Dear Member:

HB 4731, An Act to Recognize the Profession of Interior Designers to Bid on State Contracts, has been VETOED by Massachusetts Governor Deval Patrick.The Governor has now joined with the governors of Indiana, New York and Colorado, as well as legislators, state agencies and courts throughout the country, in concluding that the regulation of the design profession would hinder creativity, stifle competition and afford no additional protection to the public beyond that which is already available through the enforcement of building codes, inspections and the permitting process. Congratulations to all of our members and the many independent designers who took the time to write and call the Governor about the bill. We have demonstrated, once again, that the design legislation proposed by a small segment of the design community was unnecessary, anti-competitive and contrary to the best interests of the residents of Massachusetts.

Sunday, August 10, 2008

INSTITUTE FOR JUSTICE PUBLISHES NEW WHITE PAPER EXPOSING THE INTERIOR DESIGN CARTEL

New Report Exposes Misinformation From Interior Design Cartel

Cartel Fails to Refute Findings that Insiders Unnecessarily Cut Out Competition

Download: Misinformation & Interior Design Regulation: How the Interior Design Cartel’s Attack on IJ’s Designing Cartels Misses the Mark

WEB RELEASE: August 5, 2008

CONTACT:Lisa Knepper or Bob Ewing(703) 682-9320[Economic Liberty]

Despite continued claims by a faction of industry insiders within the interior design community, entrepreneurs should not need the government’s permission to become interior designers, according to a report released today.

“The interior design industry is a case study in how special interests team up with government to pass anti-competitive laws,” said Dr. Dick M. Carpenter II, director of strategic research at the Institute for Justice, a national public interest law firm that defends the rights of entrepreneurs. “In more than 30 years of advocating for protectionist legislation, the interior design cartel has not presented one shred of evidence to justify cutting out competition from entrepreneurs.”

In September 2006, the Institute for Justice released Designing Cartels: How Industry Insiders Cut Out Competition. Authored by Carpenter, this analysis of the interior design industry established that there is no need for regulation of the industry and that consumers do not benefit where the industry is regulated. Further, the study detailed that the push for interior design regulation comes exclusively from a faction within the industry itself, as a subset of current practitioners seek the economic advantages of excluding competitors from the market.

In November 2007, Dr. Caren Martin, an advocate of interior design regulation, released a report purporting to rebut the key claims of Designing Cartels. Martin’s report, however, provided no evidence of the need for or benefits from regulation, while essentially conceding that the push for such regulation comes exclusively from industry insiders. Martin’s attack does not disprove the key findings of Designing Cartels and, as such, is yet another in a long line of examples of design industry insiders’ failure to make a persuasive case for regulation.
“Caren Martin’s missive presents absolutely no evidence to refute our findings or support the cartel’s justification to exclude competition,” said Carpenter. “Our rebuttal demonstrates that her report is laced with logical and factual errors that severely undermine its conclusions.”

Carpenter’s rebuttal, Misinformation & Interior Design Regulation: How the Interior Design Cartel’s Attack on IJ’s Designing Cartels Misses the Mark, is now available.

Carpenter’s work on interior design regulation with IJ Research Associate John K. Ross is featured in the current issue of Regulation magazine at www.cato.org/pubs/regulation/regv31n2/v31n2-3.pdf and is forthcoming in the peer-reviewed journal Regulation and Governance.

Founded in 1991, the Institute for Justice has represented entrepreneurs nationwide who overcame discriminatory government regulation, opening up long-closed markets and securing the right to earn an honest living. The Institute has successfully worked with designers in New Mexico and Washington and is currently representing four Texas designers in a federal lawsuit.

Wednesday, July 30, 2008

INTERIOR DESIGN LEGISLATION VETOED IN MASSACHUSETTS

(August 8th, 2008)
Boston, Massachusets

Press Release

Governor Deval Patrick of Massachusetts Vetoes Interior Design Legislation.

House Bill 4731 Rejected.

With the VETO of Interior Design Legislation by Governor Deval Patrick, the Massachusetts Governor joins other Governors, Legislators and Judges across the United States who are rejecting the Interior Design Licensing Schemes being pushed by the Interior Design Cartel (ASID, IIDA, NCIDQ, CIDA and the College Interior Design Instructors).

We applaud and thank the Governor for his support of the Creative Economy in Massachusetts.

Saturday, July 26, 2008

New York State Interior Design Legislation VETOED by Governor Paterson

July 24, 2008 (Albany, New York)

New York State Interior Design Legislation Vetoed by Governor Patterson.

For the third time, Interior Design Legislation was vetoed in New York. Following the leadership shown by New York Governor Pataki in 2004 and 2005, New York Governor David Patterson rejected the attempt by the Interior Design Cartel (ASID/IIDA/NCIDQ and College Interior Design Schools) to restrict the practice of Interior Design in the State of New York stating that:

"no evidence has been presented that harm is occuring to the public by the unregulated practice of interior design".

Friday, May 30, 2008

California Interior Design Legislation Defeated

From CLCID

For Immediate Release
Contact:
Betty Wood,
Executive DirectorCalifornia Legislative Coalition for Interior Design (CLCID)
Voice: (800) 79-CLCID / FAX 909-899-7129www.CLCID.org


In the face of growing opposition, Senate Bill 1312 was removed from consideration and not voted on by the State Senate. The bill cannot be considered again in the Senate this year.
SB 1312 is strongly opposed by the California Legislative Coalition for Interior Design (CLCID) who for the last twenty five years has served as the primary interior design coalition in the state of California.

The membership consists of California Chapter Members of the National Kitchen and Bath Association, Interior Design Society and International Furnishing and Design Association, independent Interior Designers, Individual Members affiliated with the American Society of Interior Designers or International Interior Design Association, students, educators, and individuals in the interior design industry.

The legislation was also opposed by the Community College League of California who is concerned the bill would have a devastating impact on careers of current and future students who attend community colleges who would not be eligible to become registered interior designers.

The opponents successfully argued that SB 1312 is a restrictive practice act that would deny access to practice registered interior design to current interior designers who have professional experience, but who didn't graduate from schools with specific qualifications.
The California Architects Board, who would have be called upon to administer the regulation opposed SB 1312 stating the cost to be approximately $1.5 million per year, adding unnecessary cost and administrative overhead to the interior design industry that must be passed on to the consumer.

CLCID wishes to thank the many individuals and organizations that opposed SB 1312. The organizations who lobbied to defeat SB 1312 include:

California Building Officials (CALBO), Community College League of California, National Kitchen and Bath Association - California Chapters (NKBA), American Institute of Architects - (AIA California Council), California Architects Board (CAB), Building Owners and Managers Association (BOMA), California Legislative Coalition for Interior Design (CLCID), Los Rios Community College District, The Interior Design Society (IDS) - California, Western Home Furnishings Association, Lumber Association of California & Nevada, National Association of the Remodeling Industry (NARI), International Furnishings and Design Association (IFDA) - Northern Calif. Chapter, The Home Depot, American Lighting Association (ALA), American Institute of Building Designers (AIBD) and the California Retailers Association.

Thursday, May 29, 2008

CALIFORNIA-INTERIOR DESIGN PRACTICE ACT FAILS IN SENATE!

CALIFORNIA-INTERIOR DESIGN PRACTICE ACT FAILS IN SENATE!!

INTERIOR DESIGN PRACTICE ACT, SB 1312, DIES IN THE SENATE.

This is just a quick alert to let you know that SB 1312 was placed in the inactive file for this legislative term. We're told that there were not enough votes to pass the bill, so rather than have the practice act voted down by an overwhelming margin, Senator Yee decided to not introduce it.

We will give you more details once the dust settles, but thanks are not enough to express our appreciation to our members and allied professionals who spent an unbelievable amount of time and effort in spreading the word about the negative impact that this legislation would have on the design community.

Uncountable hours spent meeting with legislators, calling and sending letters and emails, writing position papers opposing the legislation and garnering the opposition from so many trade groups, organizations, businesses and independent designers really had an impact; we're told only a handful of Senators would vote in favor of licensing after all of the opposition to the bill.

A special note of thanks must go to all of the Community Colleges and the Community College League of California who sent in letters and made calls opposing the bill, and encouraged their students to do the same. Also, the grass-roots efforts of the CLCID and the Interior Design Protection Council were instrumental in defeating this bill.

We could not have achieved this result without the hard-fought efforts of all of the individuals, associations, and companies who took an active role in opposing licensing. You should all feel justly proud of what you accomplished.

Congratulations California!

Monday, May 26, 2008

California Interior Design Legislaton-SB 1312

A comment we received from another Blog on SB 1312, the legislation being pushed by a bunch of ASID bullies (in our opinion):

THIS TURF WAR CR*P IS ALL ABOUT PECKING ORDERS, A SYSTEM OF organized professionals where one pecks another who is of lower rank; but the 'so-called lower' professional doesn't like that, and says, WE'RE EQUAL. And the ONLY way to prove we're equal is to have a state license like the architects.

Hey everyone, just do your jobs and stop trying so hard. You'll live longer. Fighting with each other over social stratification and dominance hierarchy is a WASTE OF TIME AND MONEY, something that NO ONE CAN AFFORD to throw away. WHO CARES WHO is the top professional? There is plenty of work for all. No one is going to starve here. And despite what ASID says, the public has not been so significantly harmed by any interior designer so as to DEMAND designers be licensed by the state (as though that, in and of itself, is some kind of "badge" of excellence. LOL.

What a bunch of fools to actually WANT to submit yourself to state rules and regulations..... geezis, ENJOY YOUR FREEDOM! And stop all this nonsense. If not, you're no better than a bunch of chickens in the middle, who peck on certain chickens but are, in turn, pecked on by other chickens higher up on the scale.

http://brentwilliams.wordpress.com/2008/05/25/correction-about-students-ncidq-under-sb-1312/#comments

We couldn't agree more

Friday, May 9, 2008

Stop Minnesota Inteior Design Legislation & Licenisng- earings Scheduled for May 13th

MINNESOTA - THEY'RE BACK ! NEW INTERIOR DESIGN PRACTICE ACT HEARING IN SENATE COMMERCE COMMITTEE MAY 13, 2008
OPPOSE HF 991 Interior Design Practice Act

We've just learned that, despite the decision of the Senate Commerce and Consumer Protection Committee to not hear the Senate's version of the Interior Design Practice Act, the sponsors of the Bill have somehow convinced the House Commerce and Labor Committee to consider it this Tuesday, May 13th at 9:00 a.m. at the Basement Hearing Room of the State Office Building.
IT IS IMPORTANT FOR YOU TO LET THE COMMITTEE MEMBERS KNOW THAT THIS BILL IS BAD FOR YOUR BUSINESS AND THE CITIZENS OF MINNESOTA!
This bill will add nothing to the health, safety and welfare of the public. Rather, it will enable a handful of interior designers to corner the design market at the expense of our members and others in the design community who will essentially be barred from working. Study after study has shown no evidence to suggest that harm is occurring to the public as a result of the unregulated practice of interior designers, and the sponsors of the bill have presented no such evidence here. Instead, all this bill will accomplish is limit your ability to practice your profession and limit the ability of your clients to retain your services.
ACT NOW! CALL OR WRITE THE COMMITTEE MEMBERS TO SHOW YOUR OPPOSITION TO THIS ANTI-COMPETITIVE, ANTI-CONSUMER LEGISLATION! An analysis of the bill may be found by clicking this link .
Due to the short time frame before the hearing, the best way to contact a member of the Committee will be by telephone. While we would prefer that you take the time to contact each member of the Committee personally, at the very least, you should contact the Committee Chair, Representative Joe Atkins (District 39B) and let him know of your opposition to the bill (especially if you reside in his District). Just a quick message to the legislative office will be sufficient, letting them know your name, the name of your business and why you oppose further governmental regulation of an industry that has, for so long, served the public without concern or harm. If you are unable to call, you could send an e-mail to the Committee Members individually. The mailing address, phone numbers and e-mails of the Committee members are at the bottom of this message.
Key points to consider include:
- this bill does nothing to protect the public beyond the protections that already exist from architects, engineers, licensed plumbers, electricians and contractors, building code enforcement officials, building inspectors and fire marshals.
- the educational requirements of the bill virtually assures that students in Minnesota will be unable to find jobs in the state and may never be able to achieve licensure, thus establishing a small group of designers who can capture the market for themselves.
- there is no need for additional governmental regulation of an industry which has for so long served the public interest without cause for concern. Remember, it is not the public, or Division on Consumer Affairs, or Attorney Generals Office, or Better Business Bureau, or any other consumer advocacy group which is seeking such legislation. Rather, it is a handful of designers who wish to enlist your state government in eliminating their competition.
- the public already has the ability to make a distinction between the credentials of interior designers. They may rely on existing credentialing systems developed by interior design professional organizations (such as NKBA, ASID, IDS and IIDA) that essentially duplicate the qualifications required under the proposed law.
Here is a listing of the Committee members along with their contact information:Joe Atkins (DFL) 39B (Chair)503 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155(651) 296-4192 E-mail: rep.joe.atkins@house.mn
Leon Lillie (DFL) 55A (Vice Chair)353 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155(651) 296-1188 E-mail: rep.leon.lillie@house.mn
Kurt Zellers (R) 32B 315 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155(651) 296-5502 E-mail: rep.kurt.zellers@house.mn
Sarah Anderson (R) 43A 229 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155(651) 296-5511 E-mail: rep.sarah.anderson@house.mn
Tom Anzelc (DFL) 03A 417 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155(651) 296-4936 E-mail: rep.tom.anzelc@house.mn
John Berns (R) 33B 311 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155(651) 296-4315 E-mail: rep.john.berns@house.mn
Jim Davnie (DFL) 62A 545 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155(651) 296-0173 E-mail: rep.jim.davnie@house.mn
Tom Tillberry (DFL) 51B 501 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155(651) 296-5510 E-mail: rep.tom.tillberry@house.mn
Assistant Minority LeaderDean Simpson (R) 10B 295 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155(651) 296-4293 (800) 914-3172E-mail: rep.dean.simpson@house.mn
Assistant Majority LeaderAaron Peterson (DFL) 20A 451 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155(651) 296-4228 (888) 682-1388E-mail: rep.aaron.peterson@house.mn
Erik Paulsen (R) 42B 309 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155(651) 296-7449 E-mail: rep.erik.paulsen@house.mn
Joe Mullery (DFL) 58A 367 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155(651) 296-4262 E-mail: rep.joe.mullery@house.mn
Tim Mahoney (DFL) 67A 591 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155(651) 296-4277 E-mail: rep.tim.mahoney@house.mn
Kate Knuth (DFL) 50B 429 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155(651) 296-0141 E-mail: rep.kate.knuth@house.mn
Sheldon Johnson (DFL) 67B 549 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155(651) 296-4201 E-mail: rep.sheldon.johnson@house.mn
Augustine "Willie" Dominguez (DFL) 58B 539 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155(651) 296-8659 E-mail: rep.augustine.dominguez@house.mn
Chris DeLaForest (R) 49A 323 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155(651) 296-4231 E-mail: rep.chris.delaforest@house.mn
With your help, we can make sure that Minnesota remains a favorable place to do business where you can compete solely on the merits of your work. The time to act is now to protect your business and the right of your clients to hire the designer of their choice.

Saturday, May 3, 2008

STOP INTERIOR DESIGN LEGISLATION AND LICNESING IN CALIFORNIA-OPPOSE CALIFORNIA BILL SB 1312-INTERIOR DESIGN PRACTICE ACT

ACT NOW TO SAVE THE FREE PRACTICE OF INTERIOR DESIGN IN CALIFORNIA!

DON'T LET ASID PUT YOU OUT OF BUSINESS!

HEARINGS SCHEDULED BEFORE THE CALIFORNIA SENATE APPROPRIATIONS COMMITTEE IN SACRAMENTO ON MONDAY MAY 12TH.

COMM. LOCATION : SEN APPROPRIATIONSHEARING DATE : 05/12/2008

STOP INTERIOR DESIGN LEGISLATION & LICNESING IN CALIFORNIA-OPPOSE CALIFORNIA BILL SB 1312-INTERIOR DESIGN PRACTICE ACT

California Legislative Coalition for Interior Design OPPOSES CALIFORNIA BILL SB1312.

http://www.clcid.org/

Letter from CLCID:

This letter is to express the continued opposition from to SB 1312. We do not feel the amendments made to the bill in the policy committee address the reasons for our opposition. We still see SB 1312 as creating a Practice Act, as stated in the bill, for a select group of interior designers in California to allow this group to engage in activities that would be denied to the rest of the interior design industry.

For twenty five years CLCID has served as the primary interior design coalition in the state of California. The membership consists of designers from all over the State with various affiliations and backgrounds. The CLCID includes members of the California Chapters of the National Kitchen and Bath Association, Interior Design Society and International Furnishing and Design Association; independent Interior Designers, Individual Members affiliated with the American Society of Interior Designers or International Interior Design Association; students, educators, the interior design industry, and allies of CLCID. All of these groups continue to oppose SB 1312.

Submission of Plans and Drawings

The stated purpose for Senate Bill 1312 is to assure that, by creating the title of “registered interior designer”, interior designers will be able to legally submit plans and drawings to local building officials. Without SB 1312 it has been stated that current interior designers would be prohibited from doing so by the International Building Code.

Neither California, nor any local officials that we are aware of, have adopted the International Building Code (IBC) or any restrictions as to who can submit plans and drawings to local agencies. California has adopted its own version of the IBC, the California Building Code (CBC) that does not contain any restriction concerning the submission of plans to local agencies or requirement that only registered design professionals are allowed to submit plans and drawings. SB 1312 is merely a solution looking for a problem. If there were a few isolated instances where a construction code enforcement official mistakenly required that the submission be made by a registered design professional where there was clearly no structural or life safety issues involved, this is easily rectified by clarifying the CBC with the officials; the licensing of an entire industry, establishment of a new Board and adverse impact on a large segment of the design community which this bill would have is certainly not necessary or warranted.

California Already Certifies Interior Designers

Section 5800 of the Business and Professions Code already establishes the Certified Interior Designer Law and the California Council for Interior Design Certification (CCIDC). California certification is a voluntary program that requires an interior designer to follow a “Code of Ethics” and pass an exam covering California Codes and Regulations (CCRE) to become a Certified Interior Designer. It already recognizes the NCIDQ exam as one of several tests, plus a codes exam, as qualifying a designer for
Certification. Thus, the mechanism is already in place to achieve the purposes that the proponents of SB 1312 seek to rectify, without needlessly retracing anyone from practicing their profession or forcing them to take one, private, unregulated exam that is unrelated to California codes and law.

The Codes exam, given by the California Council for Interior Design Certification, is really the only exam that would test the minimum competency of a designer for California codes and laws, but with one very significant difference – it is open to anyone who can qualify and pass the exams and demonstrate sufficient competencies in design, not just a select few who go to the “right” schools and programs, who take the “right” test as determined by the sponsors of SB 1312.

NCIDQ Exam is Discriminatory

We strongly disagree that a single exam serving only a small portion of the industry should serve as an industry standard and deny access to all other interior design professionals. To become registered, Senate Bill 1312 requires an interior designer to pass an exam (called the NCIDQ exam) given by a private organization based in Washington D.C. This is an expensive exam over which California has no control, has an historically low passage rate, requires that you graduate from select design programs and forces an internship on designers from two to four years under the direct supervision of an NCIDQ certificate holder or architect. The NCIDQ exam ignores experience in the profession to even qualify to take the exam. If you can’t sit for the exam, you can’t become registered, and the qualifications to take the test may be changed at any time at the whim of the NCIDQ (as has been done repeatedly in past years). As mentioned above, the NCIDQ exam also does not test for knowledge of California Codes and Regulations as provided by current state law.


No Demonstrated Need for SB 1312.

There is no public outcry or threat to public safety, health or welfare that requires licensing of the interior design industry. The proposal to create a practice act and restrict who can be called a “registered interior designer” is designed to allow a single organization, the American Society for Interior Design (ASID), to essentially only allow their own members to be considered registered interior designers and exclude all others. ASID has attempted to enact a practice act in many other states, but nothing has been adopted since the 1990s. In the three states that do have such legislation, all make a distinction between residential and commercial design, unlike the proposed bill which would exclude anyone except their members from performing registered design services. Furthermore, the Alabama Supreme Court recently declared that state’s interior design practice act unconstitutional. That practice act was much less restrictive than the one proposed here, and still the Supreme Court found that the law achieved no valid public purpose other than to benefit the select few designers who met their own self-imposed standards. As Justice Parker stated in that case:

“Not only are [the designer’s ] rights to contract and to engage in her chosen occupation at stake in this case, but also the rights of the people of Alabama to contract with her. If a homeowner or businessperson wants to express himself by decorating his home or his office in a certain way, and if that person believes [the designer] can best provide the design that he desires, the State should not tell that person that he may not contract with [the designer] merely because [th designer] lacks state certification or an academic degree. Nor should this Court embrace the paternalistic notion that the average citizen is incapable of choosing a competent interior designer without the State's help.”

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Sunday, April 20, 2008

OPPOSE OHIO INTERIOR DESIGN LEGISLATION-HEARINGS SCHEDULED FOR TUESDAY, APRIL 22ND

OPPOSE OHIO INTERIOR DESIGN LEGISLATION-HEARINGS SCHEDULED FOR TUESDAY APRIL, 22nd.

FROM THE NKBA (NATIONAL KITCHEN & BATH ASSOICATION):

We understand that the House Commerce and Labor Committee will be taking opposition testimony on the Ohio Interior Design Title Act, House Bill 340, on Tuesday April 22, 2008 at the Statehouse. The Statehouse is located in the center of downtown Columbus, at the corner of Broad and High Streets. We are not positive about the time or room number (it may be 1:30, Room 114) but you can contact Mark McKiernan at (513) 735-2393 or at the email address below:mark.livingspaces@fuse.netPlease make every effort to attend this Hearing and let your oppsition by heard.

As you may recall, the first hearing was held on April 8, and only four interior designers spoke on behalf of the bill. No opposing testimony was permitted! The hearing on the 22nd is the opportunity for the rest of the design community to let the legislature know that it will not tolerate being made "second class citizens" by this unnecessary, anti-competitive title act which will be used by a small handful of "designers" to claim that they are state licensed (and you're not) and that they have been recognized by the state as having expertise and skills which you do not possess.

These designers already have the means and ability to distinguish themselves from others who do not meet their self-imposed "qualifications" by marketing themselves as NCIDQ Certified or Professional Members of ASID. But it is much easier and less costly (for them) to have the State of Ohio do that on their behalf! And as we have seen throughout the country, once a title act is in place, it is only the first step towards the ultimate goal of ASID and their lobby --- an interior design practice act which will impact your ability to work.

Don't sit back and let this happen in Ohio. There is very little support for a licensing bill, but it will pass unless we take action and let the Committee know that we oppose the bill. Attend the hearing on Tuesday and let your voice be heard. Even if you can't be there in person, call or email the Committee members and let them know that this type of legislation should not be passed.

More information about the bill and it's affect on your ability to compete, along with the contact information for the Committee members, can be found at the Ohio Chapters pages on the NKBA website at
http://www.nkba.org/chapters_region3_Ohio_State.aspx http://www.nkba.org/chapters_region3_Central_Ohio.aspx

Saturday, April 19, 2008

ASID MEMBERS OPPOSE ASID LEGISLATIVE EFFOTS AND APPLAUD EFFORTS BY NKBA TO OPPOSE LEGISLATION

A comment posted on our Blog:

ASID MEMBERS OPPOSE ASID LEGISLATIVE EFFOTS AND APPLAUD EFFORTS BY NKBA TO OPPOSE LEGISLATION!

Congratulations to the National Kitchen and Bath Association for taking a stand against the American Society of Interior Designers position on its self-serving legislative efforts.

I am an interior design professional. I have graduated with an interior design education, (including all NKBA standards) passed state-required exams, worked in the real world of interior design, paid ASID dues for years and have suffered under the discombobulated efforts of ASID.

The whole thing is simple: ASID is an insular, insecure group of professionals trying to use the government to profit. They entangle interior design colleges (also wanting to profit) into their web (via Council for Interior Design Accreditation. They strangle people in the interior design profession by creating self-made credentials and changing the parameters for those who can pay their dues and those who cannot. They smother students who have dreams of becoming an interior designer with ever-increasing levels of education, inadequate tools of measurement such as the NCIDQ Exam and of late, a required two-year slavery (oops, I mean apprenticeship) requirement.

And now, let us open our eyes to the big elephant in the room . . . . The real enemy of an interior designer is public perception. We have over 100 home-décor related televisions shows showing the cheery, slap-happy life of an interior designer! ASID has made no effort to help create a professional image of interior design in the public eye. One the most popular shows on HGTV portrays the interior designer as a mini-skirted, cleavage-heaving, dipsh*t who struts around in 3-inch high-heels. The format of the show is: designer helps client find their style by having moving men switch numerous pieces of furniture in and out of the room. No interior design plan is formed and it all gets wrapped up in 20 minutes. What are the credentials for the interior designer? The designer is assumed to have authority because of the 3-inch heels and style because she wears big dangly earrings. There is never mention of the designer’s fees.

Where is ASID? They are busy preaching to the choir about the dangers of not being NCIDQ certified and training designers to become lobbyists! The last ASID Newsletter, sent to the members, devoted two pages on how to communicate the importance of legislating interior design to the government officials! ASID spends their members’ dues to buy (oops, I mean lobby) the government to police an interior designer’s activities. ASID should be helping members promote themselves in the free market, via the most powerful elephant in the room (now in high-definition).Regardless of how strongly an interior designer stands behind their credentials, the general public has no clue as to which appellation – ASID, NKBA, IIDA, IDS, is in their best interest. Because after watching HGTV, a design professional just needs a pair of big dangly earrings!

ASID wants to protect the public’s health, safety and welfare by having the government control and regulate interior designers. WAKE-UP! The US Government is out of money, we are at war, our kids are not getting properly educated, people are losing their jobs, crime is going up and sick and dying Americans can’t get medical help because they are poor and uninsured. Are there really enough resources within our government to police and monitor space planning, wall color selection, furniture placement and window treatment concepts? ASID puts forth enormous effort funding creation of the law, but are they planning on monitoring and reinforcing the law as well? Unions were created to help workers unite because they were being mistreated, ASID was created to promote individual businesses profit. Now they want to use the public’s taxes to police their own interests. They should not be allowed to have individuals profit on the backs of the taxpayers.

ASID credentials have no weight in the free market. No matter what you call yourself, it does not matter to the client. If ASID efforts succeed in limiting the use of the term Interior Designer in more states, it still won’t matter to the general public. Interior Designer, Interior Re-designer, Interior Stylist, Home-Stager, Interior Decorator all mean the same thing to a client. In reality, all home décor professionals affect the safe, health and well-being of the public so just where does government regulation start and end? The only people who care about ASID credentials are people with ASID credentials.

However, according to this article, NKBA has spent in excess of $1,000,000 wisely, as they are gaining a foothold in consumer recognition. In college, we used NKBA standards to learn competencies for kitchen and bath design, not ASID standards.The general public makes no distinction between a registered interior designer and the ever-increasing abundance of home decorators, home-stylists, home-stagers, furniture-sales consultants, re-designers, closet-cleaning coordinators, flower re-arrangers and napkin-folding specialists. Many of these home industry entrepreneurs call themselves interior designers and have no idea there are state laws that may apply to them. I live in a state where interior design is regulated, so why do all these people continue to consider themselves interior designers? Because the laws sit on the books and no one is enforcing them.

Since it is not ASID but the general public that hires design professionals, it is logical that ASID should focus on helping all their members generate income and not be the self-serving behemoth it has become.Why are ASID interior designers pretending to be architects? Unsuspecting students are applying to CIDA design schools in droves and the first thing they are expected to do is join ASID. They get fooled (oops, I mean informed) that a degree in interior design holds the same weight as a degree in architecture. What they don’t realize is an interior designer is not an architect. In most states an interior designer cannot seal or stamp plans (which means legally authorize). That is what an architect does. Some interior design schools use the term interior architect. This means you go through the similar training and education as an architect, but you don’t get to be an architect. ASID is pushing for educational requirements to acknowledge only four-year interior design colleges that meet their criteria. Yet, in most states an interior designer does not have the legal authority to make structural decisions. Why would a person go to a four-year interior design school and try to be an architect?

It seems ASID’s agenda is to treat interior design as architecture. It is clear the term interior design does not elevate itself to that of architect. Since many of ASID members have been “grandfathered” in, it really would be a danger to the health, welfare and safety if they suddenly had the authority of an architect without passing the Architect Registration Exam. The precious words “interior design” that ASID is guarding and protecting mean little to the outside world -- now a global economy not simply a “society” of American interior designers.

The National Kitchen and Bath Association is earning greater respect in the design community and since they have taken this position against ASID, they have earned my respect as well.

Sunday, April 13, 2008

NKBA (National Kitchen & Bath Association) Reconfirms Opposition to Interior Design Legislation & Licensing

From the NKBA Website:

http://www.nkba.org/industry_legislation_position.aspx

Approved February 29, 2008

The National Kitchen & Bath Association (“NKBA”), as the leading trade and professional organization in the kitchen and bathroom industry, takes seriously its role in educating our members and the public at large of the importance of retaining the services of a professional designer when contemplating new or remodeled kitchen and bath projects. It is only through education of the public that they become familiar with the services that a trained kitchen and bath professional can offer, and determine for themselves the level of skill and expertise that is required to meet their needs and budget. Because of this, the NKBA is justly concerned about the efforts of a small segment of the interior design community, primarily those belonging to the American Society of Interior Designers (“ASID”), to limit the right of the public to retain the services of a designer of their choosing and restrict our members from practicing their profession, a profession in which we have been engaged in for many years without complaint or concern by the public. As a result of the limited success that those interior designers have had across the nation, and our belief that their anticompetitive efforts will continue in the future, the National Kitchen & Bath Association has developed this Position Statement to make clear where we stand on interior design licensing and how this organization will react to any further attempts to restrict the profession.

ASID has for over 30 years, conducted a campaign through local coalitions to convince a small but vocal part of its membership along with various state legislators that there is a desperate need for interior design licensing to “protect the public” from those designers who they have decided are unqualified and who do not meet the self-imposed standards which they have arbitrarily set. They have had some qualified success in obtaining licensing laws, primarily due to the fact that such efforts went largely unnoticed by the design community at large. Members of the National Kitchen & Bath Association generally historically were not concerned about “titling” laws – regulations that merely restricted the ability to use a term such as “Certified Interior Designer” or “Registered Interior Designer” – since our members did not consider themselves “interior designers” and had no desire to use the regulated term. In fact, under the broad definition of interior design which these bills regulate, our members do provide interior design services and would come well within the proscriptions of the law.

Titling acts such as these have been adopted in some twenty-two jurisdictions; however, the adoption of these types of laws is not the stated goal of the ASID and its supporters. Instead, they wish to impose their will on all interior designers by saying who may or may not perform any design work in a home or commercial establishment and mandating passage of their supported exam, the National Council for Interior Design Qualification exam (“NCIDQ”) and graduation from a limited number of higher educational institutions who have been accepted by their supported agency, the Council of Interior Design Accreditation (“CIDA”). As we have witnessed repeatedly in the past, if ASID and their coalitions are unable to obtain a governmental sanctioned monopoly in interior design by the initial passage of a practice act, they will “settle” for a title act in the hopes of introducing much more restrictive practice acts once the dust settles.

NKBA has many concerns about these efforts by a select few individuals to corner the interior design market. Our primary objections, however, are centered on two specific issues:
Such laws do nothing to further the protection of public health, safety, and welfare.
Despite the glossy language intended to lend credence to these laws as a necessary form of consumer protection, the truth is that the end result of such laws is increased cost to the consumer and increased consumer confusion.

Public Health, Safety, and Welfare

The NKBA firmly believes that the purpose of licensure is to protect the public and that one of state government's top responsibilities is to safeguard its citizens.1 Regulation by nature limits entry into a profession, makes it more difficult for those already working in the industry to compete and should be reserved for professions and occupations that, if unregulated, pose a serious threat to public health, safety, and welfare. In other words, to take the serious step of restricting the marketplace, thereby impacting the ability of persons to compete effectively, a state must determine whether a profession provides services that directly and significantly affect the public health, safety, and welfare.

These laws do nothing to achieve their purported desire of safeguarding the public health, safety and welfare. Their sole purpose is to protect the interests of a few individuals within the interior design community and in no way promotes nor advances any rational, justifiable or necessary public policy. If anything, these laws present a threat to the public health, safety and welfare in that they imply to the public that the person certified thereunder is in fact regulated by the State when in truth, the state has virtually no authority over the practice of that individual. The state’s only jurisdiction is over the individual’s use of the regulated title; the requirements to become certified and sit for the exam are determined by third parties over whom the state has no input or control.

In addition, these laws are anti-competitive in that they favor one group of interior designers over other members of the design community and, again, do so without serving any identifiable, valid public policy. These laws seek to bestow upon one segment of the interior design industry a potential commercial benefit that is attendant with state regulation. It is reasonable to presume that consumers may attach value to the state certification, thus placing non-certified interior design professionals at an unfair competitive disadvantage.

Consumer Protection

Proponents of these regulations contend that they are needed as some form of consumer protection. However, they add nothing to the level of protection in the built environment afforded to a state’s citizens.

There is no indication that poor interior design work is a problem for any consumer warranting the regulation of an entire profession. What is the showing of "public health, safety and welfare" that is currently unprotected by a state and which is not being adequately addressed by existing law (e.g., consumer protection statutes, building codes, licensing of contractors, plumbers and electricians)? How many consumer complaints have been filed because of unregulated interior designers? Virtually every study conducted has concluded that there is no compelling need for interior design legislation and in fact, such laws harm the public by artificially inflating consumer prices, erecting unnecessary barriers to entry into the profession, giving government-imposed advantages to those already practicing and failing to demonstrate any social benefit.
Similarly, there is no evidence that the public desires additional regulation. Consumers already have the means to verify the credentials of interior designers through verification of membership in existing private sector interior design professional associations, such as the National Kitchen & Bath Association, the American Society of Interior Designers, the Interior Design Society, the International Interior Design Association, the International Furnishings and Design Association, the Home Furnishings Independents Association, the Organization of Black Designers and the International Council of Interior Architects and Designers. In fact, the qualification standards for membership in many professional associations, particularly our Certified Kitchen and Certified Bath Designers, are more stringent than the licensing criteria contained in many of the interior design licensing bills. We would submit that no industry is more readily accessible to the public than the interior design profession. Aside from the organizations listed above, there are numerous consumer publications, websites and television programs (and networks such as HGTV) which educate the public on the role of interior designers and the qualifications of the various disciplines. Surely, the public does not lack the ability to make informed choices about who they retain for design services.

The NKBA’s National Position

The NKBA has formally adopted a position to oppose Title and/or Practice Acts in general and specifically for numerous reasons.

There is no guarantee that a Title Act will not lead to a more restrictive Practice Act in the future.

There is no guarantee that exemptions in Title or Practice Acts today will not be removed tomorrow – once on the books, they may be easily and without much fanfare, changed
Once a state (anywhere) enacts a Title or Practice Act, it gives credence to the movement in other states to encourage additional interior design legislation in those states that may not offer similar or any exemptions

Regulatory enforcement of a new law does not always accurately reflect the intent of the law. Agencies charged with creating and administering the rules and procedures to approve applicants for licensure often have no state oversight and frequently interpret their requirements in the most restrictive way imaginable in an effort to limit those who may perform interior design services and compete for their work. The result is costly litigation and an uncertain outcome.

Title and Practice Acts create another unnecessary bureaucracy without adding value
The NKBA does not accept the proposition that only the NCIDQ exam tests the minimum competencies to perform interior design services. Other exams, such as our CKD and CBD exams, the Council for Qualification of Residential Interior Designers (“CQRID”) exam and state code exams are equally valid and should be recognized. In fact, the State of California does just that and has rejected repeated efforts of ASID to accept only their supported (both financially and philosophically) test. The NCIDQ exam, an independent, unregulated test with a historically low pass rate of under 40%, should not be granted a monopoly on saying who does and who does not possess the minimum skills necessary to practice interior design, including kitchen and bath design.

The NKBA does not accept the proposition that only CIDA accredited schools are competent to train designers to practice their profession. Aside from the many other educational institutions which offer valid and rigorous interior design programs, including our accredited colleges and universities, NKBA supports various pathways of entry into the profession. Many people can acquire the necessary skills through extended work experience or through shorter degree programs combined with other education. Many others have started in one area and evolved into competent practitioners in another. Society does not benefit by a narrowing of access to creative fields.

Competence is best judged on the basis of the work produced rather than credentials alone. Credentials are a result of, but not substitutes for, competence. Competence can and often does exist in the absence of a credential. Many of our kitchen and bath professionals have chosen not to seek the credentials that our certification programs provide.

There has been no demonstration of harm to the “public health, safety or welfare” to warrant increased governmental regulation of a profession which has, for so many years, operated without such interference. Since 1988, five state agencies have examined the need for titling and/or licensing laws for interior designers and all five found no benefit to the public, concluding that consumers already possessed the means to make informed decisions about interior designers and their services. There has been no evidence whatsoever that a failure to license interior designers has adversely impacted the consuming public.

Interior design title and practice act legislation is not being advocated by the public through consumer advocacy groups, attorneys general offices or divisions of consumer affairs. Rather, such laws are being pushed by a small group of designers who have a personal stake in limiting competition under the guise of “consumer safety” and are asking that the State give a select few a competitive and economic advantage over others, including kitchen and bath designers
Existing state and local laws and codes already afford the consumer with protection against unqualified persons performing construction and remodeling in the home. Building inspectors, code enforcement officials, licensed electricians, licensed plumbers and others all have a role inverifying that work performed by contractors meets the code and safety requirements enacted to protect the public. Additional licensure merely duplicates those efforts and creates another layer of bureaucracy and oversight.

The NKBA believes that the consumer should be given a choice in retaining the services of a design professional. Our Members wish to compete on the merits of their work and abilities and do so through their portfolios, references, design competitions, certification and continuing education. The NKBA spends in excess of 1 million dollars each year in educating the public as to the benefits of retaining the services of an NKBA Member; we do not support efforts to limit freedom of choice among consumers by dictating who they can and cannot hire to perform design work, with the attendant increased cost to the consumer which always follows when competition is restricted.

While interior designers are deserving of respect for their role in the design process, special legislative consideration is not warranted based on an objective review of the facts. As such, NKBA joins with the vast majority of the design community in opposing these unjustifiable attempts to monopolize the interior design profession by the ASID and it’s supporters.

Thursday, April 3, 2008

INTERIOR DESIGN LICENSING BATTLE HEATS UP-CLARK NEILY WSJ ARTICLE EXPOSES ASID LOBBYING EFFORTS

Licensing Battle within the Interior Design Industry Heats Up!

(April 1st, 2008) Wall Street Journal Op-Ed article by Clark Neily of The Institute For Justice exposes ASID lobbying effort to pass Interior Design Legislation:

Read the Article:

Here's the article: http://online.wsj.com/article/SB120701341410579079.html?mod=opinion_main_commentaries

The Wall Street Journal Blog is RED HOT. Make your voice heard!

Here's the Blog: http://forums.wsj.com/viewtopic.php?start=0&t=1974&topic_view=threads#POST_AREA

Read the Article:

Watch Out for That Pillow

By CLARK NEILYApril 1, 2008; Page A17

Imagine you were a state legislator and some folks asked you to pass a law making it a crime to give advice about paint colors and throw pillows without a license. And imagine they told you that the only people qualified to place large pieces of furniture in a room are those who have gotten a college degree in interior design, completed a two-year apprenticeship, and passed a national licensing exam. And by the way, it is criminally misleading for people who practice interior design to use that term without government permission.

You might stare at them incredulously for a moment, then look down at your calendar and say, "Oh, I get it -- April Fool!" Right? Wrong.

These folks represent the American Society of Interior Designers (ASID), an industry group whose members have waged a 30-year, multimillion-dollar lobbying campaign to legislate their competitors out of business. And those absurd restrictions on advice about paint selection, throw pillows and furniture placement represent the actual fruits of lobbying in places like Alabama, Nevada and Illinois, where ASID and its local affiliates have peddled their snake-oil mantra that "Every decision an interior designer makes affects life safety and quality of life."

Legislative analysis by a half-dozen states that rebuffed ASID's attempts to cartelize interior design -- including Colorado, Washington and South Carolina -- has failed to support ASID's claim that the location of your couch or the color of your bedroom walls is literally a matter of life and death. As the Colorado Department of Regulatory Agencies put it, there is "no evidence of physical or financial harm being caused to . . . consumers by the unregulated practice of interior designers."

Lacking any factual support for its sweeping public welfare claims, ASID and its supporters often resort to fear-mongering. For example, licensing proponents frequently say the tragic fire at the MGM Grand Hotel in Las Vegas that killed 87 people in 1980 was the result of inappropriate fixtures and furnishings.

The fire was actually caused by an electrical fault and allowed to spread by a grossly inadequate sprinkler system. Investigators later identified 83 different building code violations. Another favorite is the 2003 fire at The Station nightclub in Rhode Island, in which 100 people perished. Again, that tragedy had nothing to with substandard interior design services. It was caused by an illegal indoor fireworks display and the absence of a code-mandated sprinkler system.
If there were any credible evidence that unregulated interior design presents a genuine risk to consumers, ASID would certainly have found it by now. They have had plenty of time (more than three decades), resources (dues for ASID's 40,000 members average several hundred dollars per year), and incentive. Furthermore, despite ASID's best efforts, only three states regulate the practice of interior design. That leaves 47 (including California and New York) where the ravages of unlicensed interior design could be easily documented -- if there were any.
So what is really behind ASID's relentless push for more regulation? Simple: naked economic protectionism.

It is no accident that the credentials required for licensure in ASID-backed occupational licensing bills are the same credentials required for membership in ASID itself. This includes a four-year degree from an accredited interior design college, a two-year apprenticeship, and a two-day, thousand-dollar licensing exam so irrelevant to the actual practice of interior design that many ASID members have never bothered to pass it themselves and simply get a waiver instead.
In vetoing interior design legislation last May, Indiana Gov. Mitch Daniels explained that the "principal effect" of the law would have been "to restrain competition and limit new entrants into the occupation." Mr. Daniels noted that interior designers were "hardly the only profession" seeking government protection from potential competitors.

The numbers certainly bear him out. Fifty years ago, only 5% of the American workforce was licensed; today it is nearly 30%. We're not talking about brain surgeons or airline pilots, either. Louisiana requires florists to be licensed (yes, florists), and in several states -- including Louisiana, Oklahoma and Virginia -- only licensed funeral directors may sell caskets, a state-sanctioned monopoly they use to jack up prices anywhere from 400% to 600%, a fact established in litigation by the Institute for Justice in Tennessee and Oklahoma.
Until it was struck down by the state supreme court last year, Alabama's interior design law made it a crime to offer advice about throw pillows and paint colors without a license. To anyone who thinks that law -- or others like it currently being pushed by interest groups like ASID in state capitols around the nation -- was motivated by a genuine concern for public health and welfare, I can only say this: It's going to be a rough day.

Mr. Neily is a senior attorney at the Institute for Justice.

Monday, March 31, 2008

Occupational Licensing Laws Cost The US Economy $100 Billion-Read the IJ Interview with Professor Morris Kleiner

From The Institute For Justice Website:

http://www.ij.org/publications/liberty/2008/17_2_08_g.html

By Lee Mcgrath

Whether we realize it or not, irrational occupational licensing laws—which restrict entry into jobs that don’t require a great deal of education or capital to enter—affect each of us in our daily lives. When government power is used to limit who may enter a field, what services they may provide, where they may be located, and how much they may charge, our freedom to secure these services is curtailed.

We asked Professor Morris M. Kleiner, a nationally recognized scholar on occupational licensing who teaches labor economics and public policy at the University of Minnesota’s Humphrey Institute and Carlson School of Management, a series of questions on the issue. Prof. Kleiner authored Licensing Occupations: Ensuring Quality or Restricting Competition? (Upjohn Institute), which was chosen as a “noteworthy book” for 2006 by Princeton University’s Industrial Relations Section.

Here are our questions and his responses.

What are the major findings from the occupations you have studied?

Occupational licensing has either no impact or even a negative impact on the quality of services provided to customers by members of the regulated occupation. Additionally, as occupations become licensed, members of regulated occupations see their earnings go up.

Have these findings been consistent across occupations?

Yes. For example, tougher occupational regulation has no significant impact on service quality for dentists or teachers. For mortgage brokers, certain types of regulations are associated with fewer loans and higher prices for those transactions.

What are the costs of occupational licensing?

In current dollars, occupational licensing costs the national economy about $100 billion in lost output. This is a “dead-weight loss” because it results from higher prices unaccompanied by a measurable quality benefit. In addition there is also about $300 billion redistributed from consumers to licensed occupations.

What are the benefits of occupational licensing?

Consumers, especially ones with higher incomes, think that licensing ensures that lower-quality purveyors of a service are kept out of the occupation, thereby raising standards for the service. However, there is no evidence that licensing provides any greater benefits to consumers than certification that allows for competition.

What are “regulatory capture” and “rent-seeking”?

“Regulatory capture” exists when the regulated occupation dominates the regulatory agency. “Rent-seeking” occurs when members of an occupation seek regulatory power to insulate themselves from competition and to increase their earnings or “rents” on their labor.

Why do trade associations and others seek to advance occupational licensing?


Primarily to restrict entry into an occupation to increase earnings. Further, if there is a perception of higher quality that licensing may suggest, there can be an increasing demand for regulated services that also can raise incomes for practitioners.

Why do legislators and governors enact occupational licensing?

Legislators may enact occupational licensing to receive financial and in-kind support from the licensed occupation. Additionally, because revenues generated from licensing are typically much greater than the costs of regulatory monitoring, governors have an incentive to enact licensing in order to increase revenues and gain political favor.

How has licensing changed over the past 50 years?

Occupational licensing has skyrocketed. Fifty years ago, only about five percent of the workforce was licensed. Last year the number was almost 30 percent. By contrast, 50 years ago, 35 percent of the workforce was unionized; now that number is about 12 percent.

In the past few years, has there been greater recognition of the costs to consumers from licensing?

Yes. For example, Governor Charlie Crist of Florida recently vetoed a proposed new licensing law for nail salon workers and cosmetologists. I think that there is greater recognition of the costs to consumers from licensing.

How important is IJ’s work in the effort to fight licensing and advance economic liberty?

IJ’s work is critical. IJ is the only major public interest organization that has sustained an institutional effort to stop the growth of occupational licensing. IJ has focused a spotlight on the abuses of occupational licensing through its high-profile litigation that will educate the public and the judiciary.

Lee McGrath is the Institute for Justice Minnesota Chapter executive director.

Designs on Success: How IJ (Institute for Justice) Helped Defeat A Would Be Cartel In Washington-Interior Design Legislation in Washington State

From the Institute for Justice website:

http://www.ij.org/publications/liberty/2008/17_2_08_e.html

By Michael Bindas

Thanks to a grassroots group of interior designers in Washington state, economic liberty won a mighty victory in February. With the assistance of the Institute for Justice Washington Chapter (IJ-WA), these dogged designers defeated a menacing attempt to cartelize the Evergreen State’s interior design industry.

A perhaps unlikely front in the battle for economic liberty, the interior design industry has been under siege by a powerful group of industry insiders and their nationwide campaign to “professionalize” (read: restrict entry into) the industry. Simply put, these special interests want to control competition by regulating their competition out of business. They have succeeded in a number of states, securing legislation in two forms: “title acts,” which restrict who may use titles such as “interior designer”; and “practice acts,” which prohibit anyone from practicing interior design without first obtaining a completely unnecessary government-issued license.
When IJ learned of this cartelization effort, we committed ourselves to defending the economic liberty of the tens of thousands of designers who simply want the freedom to earn an honest living in the field they love. To that end, IJ launched a massive counteroffensive, taking advantage of our many capabilities. We used litigation to successfully challenge New Mexico’s title act, and we continue to litigate a challenge to a similar law in Texas. We used our strategic research assets to publish “Designing Cartels: How Industry Insiders Cut Out Competition,” a devastating exposé of the self-serving motivations behind the national regulation effort. We placed op-eds that took on the pro-regulatory push. And we used our experience in outreach and grassroots activism to host a 2007 conference to train designers from across the country to fight the cartelization effort in their own states.


The victory in Washington is yet another success in this counteroffensive. One of the attendees at IJ’s 2007 activist conference was Leslie Jensen, a kitchen and bath designer from Tacoma. Shortly after Leslie returned from the conference, she learned that pro-regulation interests would be pushing an interior design bill in the Washington Legislature’s 2008 session. Using the skills she learned at the conference, Leslie and fellow designer Shiela Off launched a grassroots movement to defeat the bill.

Leslie and Shiela formed Washington Professionals Protecting Design Freedom (WA-PPDF), a group of designers committed to preserving economic liberty. Between October 2007 and January 2008, when the legislative session commenced, WA-PPDF hosted nine townhall-style meetings to discuss the legislation and the consequences it would have for designers, related industries that rely on the business designers generate, and consumers. I attended these meetings to discuss IJ’s efforts in fighting design regulation and the constitutional problems that such regulation presents.

Once the legislative session began and the bill—a full-blown practice act—was introduced, things kicked into high gear. IJ’s media team helped secure coverage of the bill, which was roundly criticized on the talk radio airwaves. I testified against the bill before the Senate Labor, Commerce, Research and Development Committee as did designers Marie Blackburn and Vonda Marsland, and WA-PPDF even organized a “lobby day” at the legislature, providing designers from around the state the opportunity to meet with their respective senators and representatives to voice their concerns about the bill.

The overwhelming opposition was more than the pro-regulation faction—or the Legislature—anticipated. In an Associated Press article published the day after the bill’s Senate committee hearing, the committee chair announced, “[T]here’s too much controversy with this bill for us to adequately deal with it all in a short session.” Just a few days later, the bill died in committee.
As a result of WA-PPDF’s and IJ’s coordinated efforts, interior designers remain free to practice their profession in the Evergreen State. But the battle to preserve the constitutional rights of designers goes on. (In early March, for example, we helped defeat a bill in Minnesota that would have expanded the states’s titling act into a full-blown practice act, limiting the economic liberty of hundreds in the state.) IJ will continue this fight in state legislatures and courtrooms across the country so that designers, and all of us, remain free to work in the fields we love.


Michael Bindas is an Institute for Justice Washington Chapter staff attorney.

Friday, March 28, 2008

Stop Interior Design Legislation in California-NKBA (National Kitchen & Bath Association) OPPOSES CALIFORNIA INTERIOR DESIGN LEGISLATION

From the NKBA:

CALIFORNIA - OPPOSE INTERIOR DESIGN PRACTICE ACT

OPPOSE SENATE BILL 1312, Interior Design Practice Act.

We have just learned that Senate Bill 1312 has been scheduled to be heard on Monday, April 14, 2008 by the Senate Business, Professions and Economic Development Committee. NKBA will actively oppose this legislation.

At Issue: Practice Act which requires anyone performing interior design services to be licensed; passage of NCIDQ exam required

Impact: Members may no longer perform kitchen and bath design services, including drawings, specifying fixtures and furnishings, and analyzing client’s needs, as well as any services “to enhance the quality and function of an interior area”.

Action: Contact your Representatives and Members of the Committee to Voice Objections
Timing: ACT NOW.
Dear Member:

NKBA needs your help in letting the members of the Senate Business, Professions and Economic Development Committee know that it should reject the efforts of a handful of interior designers who do not represent the design community to corner the market on interior design and not support Senate Bill 1312.

California already has a voluntary, self-certification regulation that is not mandated or supported by state law. This bill would establish a state agency to regulate (and tax) the profession, put many thousands of our members and interior designers out of business, increase the cost to the consumer and do nothing to protect the public. THIS LAW WILL ABSOLUTELY PLACE YOUR BUSINESS AT RISK!

YOU ARE AN INTERIOR DESIGNER UNDER THE PROPOSED BILL. The bill contains a broad, sweeping definition of Interior design which will surely cover the many services you provide. Interior design is defined in the bill to include, but is not limited to, the following:

- rendering services to enhance the quality and function of an interior area within a structure;

- analysis of a client's needs and goals for the interior area;

- use of a systematic and coordinated methodology, including research, analysis, and integration of knowledge into the creative process, to satisfy the needs of a client in order to produce an interior space that fulfills a project's goals;

- formulation of preliminary and final designs and contract documents;

- preparation of specifications for partitions, materials, finishes, furniture, fixtures and equipment; and

- collaboration with other registered design professionals!

Unless you are licensed or otherwise exempt, this Bill will affect your ability to work in the State of California. While there are a number of requirements and conditions for licensure, the basic requirement is that you must have passed the NCIDQ exam, completed two-four years of design education and completed an internship of two-four years depending on the program from which you graduate.

LIMITED RETAIL: You will be told that retailers will be exempt from the license requirements. THAT IS NOT TRUE. Employees of a retail establishment will be permitted to provide consultationdecoration or furnishings on the premises of the retail establishment or in the furtherance of a retail sale or prospective retail sale.

WHAT YOU DO ON A DAILY BASIS WILL NOT BE CONSIDERED “CONSULTATION REGARDING INTERIOR DECORATION”. Excluded from this “grant” is any form of design service whatsoever. Furthermore, this exemption applies only to employees of retail businesses

– left out are owners, independent contractors and independent designers who work out of a studio or other location, those who do not sell at retail and others who are not considered “employees” of a retail business.

LIMITED RIGHT TO PRACTICE: Unless licensed, you will only be “allowed” to prepare drawings of the layout of materials or furnishings or provide assistance in the selection of materials or furnishings provided that the implementation or installation of the materials or furnishings is not regulated by a building code or other regulation.

IS THIS ALL YOU DO?

GRANDFATHERING? If you are already a Certified Interior Designer in California, you must take and pass Section I of the NCIDQ exam, provided that NCIDQ allows you to take the exam (which is doubtful given its strict education and internship eligibility requirements).

Make no mistake, if this bill passes, it will impact your business and ability to continue to offer kitchen and bath design services in the State of California.

It is imperative that our members let the Committee know that the design community does not support this restrictive, anticompetitive legislation and how much this law would hurt your businesses and the economy of the State of California. Let your fellow designers (both NKBA and non-NKBA interior designers, remodelers, and builders) know about this proposal and the need to act now. Please follow the link below to send a letter or email to the Committee members letting them know of your concern about the bill, how it will negatively impact your business, and your desire that it not be considered further.

With your help, we can make sure that California remains a favorable state in which to continue to do business. Our members are happy to compete on the merits and will match their skill and expertise with anyone; let's just keep the playing field even and allow the free market decide who should be hired for a project.

Let your state legislators know that increased governmental regulation of your business is not necessary. You can send a letter or email to the Committee Members by following this link
PLEASE NOTE: The link will only send an email to representatives on the Committee who are in your legislative district. If a member is not in your district, then the email will go to your state representative. That is fine, but we need to let all of the Committee members know how many people this bill will affect. If your representative is not on the Senate Business, Professions and Economic Development Committee, please also send a copy of your message to each Committee member as well. Phone calls are also important.

Here is a listing of the Committee members along with their phone numbers, email addresses and fax numbers:

Senate Business, Professions and Economic Development Committee
Please use name and address only for letters.
Committee Chair
Senator for District 26

Senator Mark Ridley-Thomas
State Capitol, Room 4061
Sacramento, CA 94248
Phone: 916-651-4026
Fax: 916-445-8899
Senator.Ridley-Thomas@senate.ca.gov

Senator Sam AanestadState Capitol, Room 2054Sacramento, CA 94248Phone: 916-651-4004Fax: 916-445-7750 Senator.Aanestad@senate.ca.gov

Committee Members

Senator from District 30
Senator Ron CalderonState Capitol, Room 4088Sacramento, CA 94248Phone: 916-651-4030Fax: 916-327-8755 Senator.Calderon@senate.ca.gov

Senator from District 10
Senator Ellen CorbettState Capitol, Room 3092Sacramento, CA 94248Phone: 916-651-4010Fax: 916-327-2433 Senator.Corbett@senate.ca.gov

Senator from District 12
Senator Jeff DenhamState Capitol, Room 3076Sacramento, CA 94248Phone: 916-651-4012Fax: 916-445-0773 Senator.Denham@senate.ca.gov

Senator from District 16
Senator Dean FlorezState Capitol, Room 5061Sacramento, CA 94248Phone: 916-651-4016Fax: 916-327-5989 Senator.Florez@senate.ca.gov

Senator from District 35
Senator Tom HarmanState Capitol, Room 2052Sacramento, CA 94248Phone: 916-651-4035Fax: 916-445-9263Senator.Harman@senate.ca.gov

Senator from District 11
Senator Joseph S. SimitianState Capitol, Room 2080Sacramento, CA 94248Phone: 916-651-4011Fax: 916-3234529 Senator.Simitian@senate.ca.gov

Bill AuthorSenator from District 8
Senator Leland YeeState Capitol, Room 4048Sacramento, CA 94248Phone: 916-651-4008Fax: 916-327-2186