Florida Republicans Deregulate, Opposing Their Own Values (HB 5005)

Conservatism and minimizing government are ideas that go hand in hand. Florida republicans are selling their bill HB 5005 as a good way to turn back the clock on a system that is strangling the private sector. Unfortunately, they are using a sledge hammer to crack a nut. Much of the bill repeals consumer protection legislation that coincides with conservative ideology.

With the GOP always pushing to privatize government functions, you would think Florida representatives would do likewise when it comes to HB 5005. Unfortunately, they are repealing numerous surety bond requirements that not only protect the public, but do so by bringing in the private insurance sector to do the financial backing.

The current laws they are trying to repeal are oddly familiar with Republican solutions for Medicaid/Medicare. It makes one wonder if they truly understand the legislation they are so adamantly trying to repeal.

It is very possible that the legislatures do not fully realize the full implications of their drastic actions should the bill pass.

The surety associations report Florida as one of the most fraudulent in the country with an average 58.1% loss ratio for used car dealers from 2004-2009 compared to the 31.2% national average in the same time period. A large public outcry from the increase in fraud is bound to occur.

As a result, it is likely that the public will demand new consumer protection. Perhaps consumer protection that would expand the role of government and take the private sector out completely, such as they did with the Hawaii mortgage industry government trust fund; a true implementation of socialism over capitalism.

In other words, the political pendulum effect just might have the opposite result that the GOP stands for. Whether you are a Republican or Democrat, this bill is making it so everyone loses.

Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog. He has held a range of different roles within the surety industry, from agent assistant to bond issuer, which gives him a unique insider perspective on surety related topics.

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