Score Two For Bay State Businesses
The economic development bill signed into law by Gov. Deval Patrick Aug. 5 includes two key provisions advocated by the Massachusetts Chamber of Business & Industry. Chamber officials spent many hours in public hearings and informational meetings, as well as writing and campaigning in favor of language that increases the cap on small claims court actions and gives Massachusetts businesses preference on state contracts.
We are very pleased that these important items were included in the economic development bill. This is an excellent example of the public and private sectors working together to make positive changes for our businesses.
Preferred Treatment
One successful initiative was the change in Chapter 30B of the general laws that added language to allow a governmental body to establish a preference for the procurement of products or services by businesses with their principal place of business in the commonwealth. This means Massachusetts-based businesses have a better chance at being awarded state contracts.
The economic development law has drawn praise from industry leaders in the state, including James Debney, president of Springfield-based Smith & Wesson’s Firearms Division. He said that “all Massachusetts-based companies, including ours, stand a better chance to be awarded future state contacts. We view that as beneficial to our own company as well as to the business environment statewide. Future purchases of firearms from the state, for example, would not only benefit Smith & Wesson, but it would help to support existing and potentially new jobs, and would help keep revenues in the commonwealth.”
The second successful initiative was the increase in small claims maximum from the previous $2,000 limit to $7,000. This increase gives our small businesses a better chance to collect money owed to them. The cost of filing a claim, attending court hearings and hiring an attorney usually exceeded the actual claim amount when the rate was $2,000. Many businesses end up losing money in an effort to collect.
Now businesses will be able to files claims for up to $7,000 in the small claims courts. This new measure will return millions of dollars back to the business community.
Holly Demers, who owns West Yarmouth-based Cape Cod Docks Inc. along with her husband Larry, called the increase “a huge benefit,” explaining that earlier this year her company went to small claims court because a client owned $3,875. Cape Cod Docks could only try to collect $2,000 and ended up receiving just $1,500, less than half the original amount.
With the new $7,000 cap, Demers said her company has “a fighting chance to recoup what we rightfully earned.”
The Massachusetts Chamber advocates for positive change on both a state and federal level. We have many issues on our legislative agenda, and continue to add issues as they are presented to us. You are invited to contact us to discuss issues of concern to your business.
Debra A. Boronski is president of the Massachusetts Chamber of Business & Industry. She can be reached at president@masscbi.com.
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