SB 212 : SMALL BUSINESS PROTECTION

PREPARED FOR : THE WISCONSIN SENATE

DATE                     : January 13, 2008 

The Wisconsin Senate will vote today on SB 212, essential small businesses protection against predatory hidden automatic renewal clauses in multi-year equipment and service contracts.  Wisconsin Independent Businesses urges Senate support for the most important small business bill of 2008. 

SB 212 supporters are owners of small, Wisconsin businesses.  SB 212 opponents are big out-of-state businesses including giant waste hauling companies, sellers of credit card processing machines and services, business uniform services, specialized computer equipment and software services, telephone system and telephone services, cash transaction machines (cash registers) and industry-specific diagnostic equipment.   

Just since January 2^nd, the 1^st day of business in the New Year, WIB has heard about 4 contracts automatically renewed because of hidden clauses.  We have been contacted by  Suzanne Hansen of All-Star Heating in Hartland about a uniform contract; Tom Short of Hypneumat in Franklin about both trash collection & uniform contracts; and from Karen Zucharias of the Baldwin Veterinary Clinic about their trash collection contract.  This is a statewide problem.  SB 212 corrects the problem for your constituents.  

SB 212 tells the out-of-state big corporations using automatic renewal contract clauses that they MUST tell the small Wisconsin firm that the contract will be automatically renewed unless the small business specifically cancels the contract in a specified time frame.  That is all SB 212 requires.  A typical small business may have up to 10 contracts on equipment and services. It is impossible to keep track of the agreements and notices that go with each contract.  The out-of-state giants that use the hidden renewal clause tactic count on it being difficult, almost impossible, for a small Wisconsin business to know about the clause.  Small businesses get trapped. 

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