New York City is already well-known for having one of the most expensive housing markets in the country. Politicians are now throwing a wrench in the works.
The New York City Council has overwhelmingly approved Intro 429 with regard to plumbing work in the city. Now, Mayor Adams’ veto is the last line of defense against a very costly and misguided law.
The new city law hardly seems notable, redefining some regulations around gas piping installation and services. But one provision in particular will add hundreds of dollars and lots of new headaches every time New Yorkers buy a new appliance.
Under Intro 429, all gas appliances must be installed by licensed master plumbers. Currently, consumers in New York have many options to install gas appliances. Appliance stores typically provide installation along with delivery at a minimal cost. More handy consumers can do the installation themselves. Unless Mayor Adams acts, this will soon be a thing of the past, and residents will be forced to pay hundreds of dollars while enduring long wait times for an available plumber.
Supporters argue that this move will protect residents. Licensing laws are often justified by safety concerns. Unfortunately, these laws typically fail to measurably improve standards.
This proposal is a solution in search of a problem. One councilwoman cited the 2015 Bronx gas explosion as an inspiration for this bill. The only problem is that the explosion was caused by an illegal piping, not a bad appliance hookup. It was a terrible tragedy, but not something that this proposal would have prevented.
Instead, Intro 429 is a great example of rent seeking. In other words, a well-connected industry group cozying up with elected officials to hurt everyone else. The Master Plumbers Council has lobbied hard for this protection. In fact, they openly brag about this, like most professional associations often do.
Continue reading at The New York Daily News.
Conor Norris, PhD, is a labor policy fellow at the Archbridge Institute, director of labor policy at the Knee Regulatory Research Center, and a teaching associate professor of general business at West Virginia University. He has shared his research with state legislators and policymakers, authoring white papers and providing expert testimony to state legislatures on occupational licensing reform and the practice of telemedicine. Dr. Norris received his Ph.D. in economics from the Universidad Francisco Marroquín and his M.A. in economics from George Mason University.
Edward Timmons, PhD, is Vice President of Policy at the Archbridge Institute. He leads the institute's economic policy strategy, identifying focus areas and disseminating work to key stakeholders and policymakers. His own research focuses on labor economics and regulatory policy; he is regularly asked to provide expert testimony to U.S. states on occupational licensing reform and the practice authority of nurse practitioners. Dr. Timmons received his Ph.D. in economics from Lehigh University and his B.A. in economics and actuarial science from Lebanon Valley College. He publishes a weekly newsletter on Substack with the latest research and policy insights surrounding occupational licensing.
Economics of Flourishing
New York City is already well-known for having one of the most expensive housing markets in the country. Politicians are now throwing a wrench in the works.
The New York City Council has overwhelmingly approved Intro 429 with regard to plumbing work in the city. Now, Mayor Adams’ veto is the last line of defense against a very costly and misguided law.
The new city law hardly seems notable, redefining some regulations around gas piping installation and services. But one provision in particular will add hundreds of dollars and lots of new headaches every time New Yorkers buy a new appliance.
Under Intro 429, all gas appliances must be installed by licensed master plumbers. Currently, consumers in New York have many options to install gas appliances. Appliance stores typically provide installation along with delivery at a minimal cost. More handy consumers can do the installation themselves. Unless Mayor Adams acts, this will soon be a thing of the past, and residents will be forced to pay hundreds of dollars while enduring long wait times for an available plumber.
Supporters argue that this move will protect residents. Licensing laws are often justified by safety concerns. Unfortunately, these laws typically fail to measurably improve standards.
This proposal is a solution in search of a problem. One councilwoman cited the 2015 Bronx gas explosion as an inspiration for this bill. The only problem is that the explosion was caused by an illegal piping, not a bad appliance hookup. It was a terrible tragedy, but not something that this proposal would have prevented.
Instead, Intro 429 is a great example of rent seeking. In other words, a well-connected industry group cozying up with elected officials to hurt everyone else. The Master Plumbers Council has lobbied hard for this protection. In fact, they openly brag about this, like most professional associations often do.
Continue reading at The New York Daily News.
Conor Norris
Conor Norris, PhD, is a labor policy fellow at the Archbridge Institute, director of labor policy at the Knee Regulatory Research Center, and a teaching associate professor of general business at West Virginia University. He has shared his research with state legislators and policymakers, authoring white papers and providing expert testimony to state legislatures on occupational licensing reform and the practice of telemedicine. Dr. Norris received his Ph.D. in economics from the Universidad Francisco Marroquín and his M.A. in economics from George Mason University.
Edward Timmons
Edward Timmons, PhD, is Vice President of Policy at the Archbridge Institute. He leads the institute's economic policy strategy, identifying focus areas and disseminating work to key stakeholders and policymakers. His own research focuses on labor economics and regulatory policy; he is regularly asked to provide expert testimony to U.S. states on occupational licensing reform and the practice authority of nurse practitioners. Dr. Timmons received his Ph.D. in economics from Lehigh University and his B.A. in economics and actuarial science from Lebanon Valley College. He publishes a weekly newsletter on Substack with the latest research and policy insights surrounding occupational licensing.
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