The Wisconsin State Senate planned a hearing today to consider a bill that would protect small businesses from being trapped by hidden automatic renewal clauses in equipment and service contracts.
According to the Wisconsin Independent Businesses (WIB) advocacy organization, the hidden clauses are often used by large businesses to trick small businesses that sign contracts for credit card processing services and machines, business uniform services, waste hauling, specialized computer equipment & software services, telephone system services, cash transaction machines and industry-specific diagnostic equipment.
WIB executive director Wayne Corey said the only reason for a hidden automatic renewal clause is to trick them into more years of a contract they may not want.
Senate Bill 212 would require formal notification of such renewal clauses.
The bill was scheduled for a public hearing today at 11 a.m. before the Senate Committee on Small Business, Emergency Preparedness, Workforce Development, Technical Colleges & Consumer Protection.
"A business owner is often completely unaware of the hidden automatic renewal clause. As a result, a small business may be stuck with simultaneous contracts with two companies for the same service. The unsuspecting small business buys a replacement contract believing that the original contract has expired," Corey said.
Attorney Gary Antoniewicz of The Boardman Law Firm, corporate counsel to WIB, said the bill "does not prohibit automatic renewal but simply makes a requirement for those seeking to enforce them that they must provide a reminder notice of the automatic renewal clause."
The committee has been given a copy of the fine print on the second page of a credit card processing services agreement.
"The merchant was told at the signing that it was a three-year agreement. What the merchant wasn't told was that it would renew for an additional two-year period unless the merchant sent notice between 90 and 120 days prior to expiration," Antoniewicz said.
SB 212 would require the service seller to notify the merchant that an automatic renewal clause is about to be implemented.

Were you there when the Beatles played at the Milwaukee Arena? Did Father Groppi's trek across the 16th Street Viaduct influence your life? Did your experience at the 1982 World Series make you proud to call Milwaukee your home?
If you documented these or other famous "Milwaukee Moments" with your camera, you could be a winner in the Milwaukee Press Club's photo contest for the 162nd City of Milwaukee Birthday Party to be held Jan. 29 at The Pfister Hotel.
"No doubt many in our city will be prompted to pull out the shoe box or dust off the photo album to pick out photos that represent the fun times and memorable moments that they've had with family and friends in Milwaukee," said Julie Pedretti, chair of the City Birthday Party committee for The Milwaukee Press Club and director of public relations for Children's Hospital of Wisconsin. "The popularity of electronic photos makes this contest so easy to enter."
The public is invited to submit personal photos for consideration in the Milwaukee Moments contest at www.MilwaukeeMoments.com.
If you have not yet created digital images of your memorable photos, all FedEx/Kinko's locations throughout metro Milwaukee are available to scan photos and assist residents in submitting their snapshots.
"Images have always been a powerful storytelling tool and our modern-day version of the folk tale," Pedretti said. "Photos shared by those who were there often play a role in defining key moments in Milwaukee's history. This year, the Milwaukee Press Club would like its members and the community of Milwaukee to celebrate that role."
The public will vote for the winning photo from 10 selected finalists at www.MilwaukeeMoments.com Jan. 18-25. The winner will be announced by Milwaukee Mayor Tom Barrett at the City of Milwaukee's 162nd Birthday Party, Tuesday, Jan. 29, from 5:30 to 8 p.m.
This year's party will be held at the recently renovated Grand Ballroom of The Pfister Hotel. The public is invited. Tickets are $25 and can be purchased at www.MilwaukeePressClub.org.
Recently, the Milwaukee County Historical Society acquired 45,000 color photo slides from the estate of Lyle Oberwise, a Milwaukee resident who had documented Milwaukee architecture, transportation and special events for his own enjoyment from the 1930s to the 1980s.
"Oberwise's collection was very large and includes a rare glimpse of the city as it appeared following World War II," Pedretti said. "But, we imagine there are many other area residents who have taken snapshots of their favorite Milwaukee landmarks, celebrations and people throughout history. Oberwise proves that you don't have to be a professional photographer to have taken historically important photos."
Only amateur submissions will be considered for the Milwaukee Moments contest.

Cudahy-based Ladish Co., Inc. today announced plans to invest $16 million to $20 million to build a new investment casting foundry in Mexico.
The new facility will produce titanium components for Ladish's aerospace customers in Mexico, the rest of North America and worldwide.
Kerry Woody, president and chief executive officer, said, "Our unprecedented backlog of orders, approaching $600 million, coupled with build-schedule requirements locked in by an array of long-term agreements, has shaped this expansion strategy."
Ladish is finishing due-diligence analysis of several possible locations for the new Mexican plant, which will span about 60,000 square feet. The company expects to complete the site-selection process during the first quarter of 2008.
"Mexico has the industrial infrastructure to support aerospace. Different states in Mexico offer different advantages and opportunities, so there are details that enter into negotiations before final commitments can be made," Schroeder said.
Randy Turner, president of Pacific Cast Technologies (PCT), Ladish's investment casting operation located in Albany, Ore., said, "Our previously announced factory expansion in Albany will fully utilize the space available for adding capacities. However, customer demand points to the need for even more capacity. That's what's driving our decision to extend PCT's capabilities into Mexico, because such a move meets customer expectations for greater affordability and global presence."
Woody expects that the move to invest in a second North American titanium investment casting facility will have a positive impact on the company's established casting operation.
"Since we acquired a second forge shop in Poland in 2005, employment in our Wisconsin forging operation has grown 10 percent. We anticipate an even stronger trend will be triggered at PCT by opening a second investment-casting operation," Woody said.

Aurora St. Luke's South Shore in Cudahy announced today it is offering free wireless Internet access to patients and visitors.
The service is intended to enhance the overall patient experience at Aurora, which plans to expand the wireless Internet access program to other Aurora Medical Centers throughout the year.
“It is a way for us to make our guests feel more comfortable and at home during the time they spend with us," said Carolynn Glocka, vice president and chief administrative officer at Aurora St. Luke's South Shore.
Patients and visitors can gain access to Aurora's wireless network using their laptop computers in various areas of the hospital, including family lounges, the lobby, the cafeteria and patient rooms.

RedPrairie Corp. today introduced its Food Service Management solution will be expanded to be available for petroleum and convenience stores.
The solution optimizes food service operations for retailers, including food preparation, production planning, recipes and fresh item management. The information can be fully integrated with inventory, labor and sales data for an accurate forecast of production and labor requirements and assistance with minimizing waste.
The technology is widely used by food service operators such as Culver's, Dunkin Brands, Cara, Popeye's and Church's Chicken.
RedPrairie's Food Service Management solution is now available to petroleum and convenience stores.
"Petroleum and convenience retailers have been looking hard at the inside of the store to make up for the shrinking margins on fuel," said Kevin Saum, vice president and general manager of petroleum C-stores for the RedPrairie Retail Productivity Solutions division. "Many operators are now looking towards fresh and prepared foods to improve their in-store margins and add customer visits and loyalty. RedPrairie is unique in our ability to provide a fully integrated convenience store and food service solution."
RedPrairie is based in the Town of Brookfield.

Franck's Compounding Lab of Ocala, Fla., announced today it has acquired Island Pharmacy Services in Woodruff, Wis.
Island Pharmacy owners Randy Reek and Dave Rice said they have decided to pursue other interests. Selling their pharmacy to Franck's Compounding Lab was based on a business decision made to ensure the continuance of high-quality prescriptions and customer service, they said.
"The purchase of Island Pharmacy adds a tremendous opportunity for us to expand our full-service veterinary compounding business," said Paul Franck, owner and chief executive officer of Franck's Pharmacy.
The buyout will add about 8,000 patients and 4,000 prescribing veterinarians to Franck's Compounding Lab.

Lowe's Companies Inc. is considering opening its first store in Waukesha County. Read more in the new edition of the Small Business Times Real Estate Weekly bulletin.

Milwaukee-based Vetter Denk Architecture received an extension from the Green Bay Redevelopment Authority to begin construction of the proposed 17-story, Astor Place development, which would have 95 condos and 17,000 square feet of retail space along the Fox River in downtown Green Bay. Read more in SBT's daily roundup of headlines from newspapers across the state at www.biztimes.com.

Wisconsin needs to restore funding for public education, according to Ruth Jones, author of today's Milwaukee Biz Blog.

The BizTimes Stock Index gained 4.44 points to close at 169.78 Tuesday, and local stocks rose with the broader market in early morning trading today. The largest local advancers this morning were Bucyrus International Inc. (up $3.90 to $92.56) and Rockwell Automation Inc. (up $1.87 to $71.05). The largest local decliners this morning were Joy Global Inc. (down $2.87 to $58.13) and Koss Corp. (down 48 cents to $18.27). The BizTimes Stock Index was created by Small Business Times and is monitored by North Shore Bank. The index, which measures the stock values of publicly held companies based in southeastern Wisconsin, is updated daily and can be viewed at www.biztimes.com.