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Traveling sales legislation stalls in Assembly again

MADISON — Another year, another wasted opportunity.

That’s the viewpoint of state Sen. Jon Erpenbach as he watched his legislation die in an Assembly committee for the second year in a row as the legislative session drew to a close Thursday.

Erpenbach, D-Waunakee, has been working on legislation to restrict traveling sales crews for eight years now, motivated by a horrific van accident that killed seven young people. All 14 people in the van were members of a traveling sales crew.

March 25 marks the nine-year anniversary of the crash.

Phil Ellenbecker, father of one of the victims, says traveling sales crew companies exploit and abuse young workers by withholding pay, physically abusing employees and restricting communication with their families.

The companies also put homeowners in jeopardy by not performing thorough background checks on their employees, he said.

Erpenbach’s legislation would require all traveling sales workers in Wisconsin to register with the Wisconsin Department of Workforce Development. It would require the companies to consider sellers as employees, not independent contractors, and provide regular work hours and payment.

The legislation passed the Senate by a wide margin this session but stalled in the Assembly Small Business Committee for the second year in a row.

Some direct selling companies and legislators worried the bill would hurt legitimate businesses. Rep. Terry Moulton, chairman of the Assembly committee, proposed an amendment to exempt sellers that can prove residency in the state.

“The problem I have with the original bill is that it could severely affect some companies, reputable companies, and the way they do business in Wisconsin, and I felt it just wasn’t acceptable to affect those legitimate companies,” Moulton, R-Chippewa Falls, said.

Erpenbach and Ellenbecker said the amendment would have removed the effectiveness of the bill because it’s too easy to falsify residency documents.

“It’s been eight years now, and we have tried to change the legislation or modify it as best we can,” Erpenbach said. “If we change it any further, we’ll have a bill … but the door will still be open (to sales crews).”

Erpenbach said he will reintroduce the bill when the 2009 legislative session starts in January. He also might introduce legislation creating a “no-knock” list, similar to the state’s no-call list.

The legislation would allow residents to sign up if they don’t want sales crews coming to their homes.

A no-knock list would solve part of the problem but not address the issue of young people being recruited to abusive companies, Ellenbecker said.

Ellenbecker said he’s disappointed the Assembly committee listened to corporate interests instead of residents.

“They’re more loyal to the special interests groups than they are to the Wisconsin residents,” he said.