A Lone Star Standoff

A dispute in Texas over the subcontracting of electric-sign hookups will carry universal ramifications. The number-one issue? The reputation of the on-premise sign industry. It certainly can do without any adverse publicity.

Currently in the Lone Star state, only sign companies that employ a licensed sign electrician are permitted to sell and install an electric sign. An unlicensed sign company can’t legally sub out the electrical hookup. However, state House and Senate bills seek to change that. The House’s measure, HB 1352, already passed (133-7), but the Texas Legislature only meets until May 28, and the Senate bill hasn’t yet reached the floor.

Regardless of any laws, unlicensed activity occurs. The electric-sign companies say the issue is safety and accountability. The unlicensed companies view opposition to the bill as restraint-of-trade attempts in a modern scenario in which subcontracting pervades.

I believe the underlying conflict is a holdover of resentments from the mid-1980s, when sign franchises first surfaced. I see it as, partially, class warfare between the hands-on, multi-generation sign companies, and newer sign companies owned by astute businesspeople who have come from different vocations.

There’s an excellent, multi-view discussion on the Sign Syndicate website. One Texan speaks of seeing an HVAC company illegally installing channel letters. Both electric and non-electric sign companies chime in. Someone points out that Texas has only two sign inspectors, so adequate enforcement seems impossible.
Any time you add variables to a situation, you add the possibility/probability of abuses. Surely, the passage of such a bill would increase illegal activity. Yet subcontracting is so prevalent in the sign industry. It only increases in difficult economies.

In a larger context, a democratic society opens itself to abuses as well. Freedom of choice allows really bad things to happen. In a free society, horrible events such as the Boston Marathon bombings occasionally occur.

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I’m not aware of how other states handle the licensing issue. Perhaps their experiences can provide insights that point toward the best solution.