BACKGROUND

For the last several legislative sessions in Madison, DSA staff and member companies have actively engaged in either defeating or offering substitute amendments to traveling sales crew legislation in Wisconsin that in our industry’s view would likely lead to unintended and detrimental consequences for the direct selling industry. Our goal is to assure that our industry is not unintentionally harmed by unnecessarily broad and vague legislation that, while serving a very important public interest, may unfairly burden our channel or set a precedent for future burdensome regulations. As a result of November’s election, Republicans lost control of the Wisconsin Assembly when the Legislature reconvened during the first week of January.  Additionally, Representative Terry Moulton, the primary sponsor of DSA’s supported substitute amendment was unsuccessful in his reelection effort.

UPDATE

On January 15, 2009, Senator John Erpenbach, the chief sponsor of the traveling sales force legislation, formally re-introduced the bill, which is filed as Senate Bill 4 (S.B. 4).  For text of the bill, please go to: http://www.legis.state.wi.us/2009/data/SB-4.pdf.  S.B. 4 is identical to last session’s traveling sales crew bill, Senate Bill 80.  It defines traveling sales crews as two or more individuals employed as salespersons or in related support work who travel together in a group and who are absent overnight from their permanent residences for the purpose of selling goods or services to consumers from house to house, on any street, or in any other place that is open to the public. 

Although a hearing has not been scheduled, S.B. 4 will be heard before the Senate Committee on Children and Families and Workforce Development.  The members of the Committee are:

Senator Robert Jauch (Chair) (D-Poplar)
Senator Julie Lassa (D-Stevens Point)
Senator Kathleen Vinehout (D-Alma)
Senator Neal Kedzie (R-Elkhorn)
Senator Randy Hopper (R-Oshkosh)

The Senate sponsors for S.B. 4 are:

John Erpenbach (D-Middleton)
Judy Robson (D-Beloit)
Dave Hansen (D-Green Bay)
Ted Kanavas (R-Brookfield)
Julie Lassa (D-Stevens Point)
Fred Risser (D-Madison)
Spencer Coggs (D-Milwaukee)
John Lehman (D-Racine)
 
The Assembly sponsors for S.B. 4 are:
 
Sondy Pope-Roberts (D-Middleton)
Mike Sheridan (D-Janesville -- Assembly Speaker)
Terese Berceau (D-Madison)
Christine Sinicki (D-Milwaukee)
Terry Van Akkeren (D-Sheboygan)
Mark Pocan (D-Madison)
Amy Sue Vruwink (D-Milladore)
Sandy Pasch (D-Whitefish Bay)
Jon Richards (D-Milwaukee)
Al Ott (R-Forest Junction)
Annette "Polly" Williams (D-Milwaukee)
Kristen Dexter (D-Eau Claire)

DSA staff recently spoke with Senator Erpenbach’s chief of staff and he indicated he expected S.B. 4 will pass easily. However, he indicated Senator Erpenbach was willing to consider further suggestions that DSA might make so long as they would not “destroy and gut” the Senator’s legislation. Overall, however, it was clear to DSA staff that Senator Erpenbach is convinced that prospects of passing an unmodified traveling sales crew bill are quite high.  As discussed and approved by the GRC, DSA staff forwarded the Senator’s chief of staff a list of small modifications that we believe will protect legitimate direct sellers while addressing the very serious problem of traveling sales crews.

DSA continues to gather critical political intelligence from various Wisconsin contacts. We have received reports that it is likely that a public hearing on the bill could occur late this month or in early February, but more likely the week following the Presidential Inauguration.

In addition to speaking at the hearing to reiterate our suggested modifications, DSA staff plans to reach out to Members of the State Assembly and Senate to seek support for modifications to the bill that our industry has recommended.

DSA will continue to closely monitor developments in Madison and will continue to keep you informed.