April 13, 2010
Wirch Small Business Bill Passes Legislature
Final Senate vote now sends bill to the Governor
The Wisconsin State Senate passed Senate Bill 190, authored by State Senator Bob Wirch. The bill puts in place needed reforms to help small business owners when they enter into automatically renewing contracts to receive services or lease equipment from other businesses.
“Years of hard work on the part of small business owners resulted in the passage of this bill,” Wirch noted. “I’m glad that the concerns of small business owners, like Steve Rovik of Kenosha, are addressed in this bill.”
“I was trapped in a credit card processing contract. This bill will help me and other small business owners avoid having this happen again”, said Steve Rovik of SDR Transmissions of Kenosha.
Wirch’s bill simply requires the business offering a contract to a small business to provide clear disclosure if the contract has a renewal clause and notify the small business owner when the window of opportunity to terminate the contract is approaching.
“Being trapped in one of these contracts could cost a small business owner hundreds or tens of thousands of dollars – depending on the product or service covered by the contract,” Wirch noted. “Rather than having to pay out money on a contract they don’t want, small business owners will be able to use their money as they see fit. They can pay down debt, have a rainy day fund, maintain or upgrade equipment or facilities, or use it to hire new employees or better compensate the employees they already have.”
Wisconsin Independent Businesses, Inc and their small business members across the state fully supported passage of this legislation along with the Midwest Equipment Dealers Association, the Tavern League of Wisconsin and the Wisconsin Automotive Parts Association.