APRO 2nd-front effort to focus on commerce panels
By Michael J. Knell -- Furniture Today, February 20, 2005
Austin, Texas — The Assn. of Progressive Rental Organizations wants federal legislation to protect the rental industry and is widening its efforts to achieve that goal, according to Executive Director Bill Keese.
"For the past several months, our members have made it clear that they want a federal bill passed making it clear that their transactions are a lease and not a sale," he said.
As proposed in past sessions of Congress, the Consumer Rental Purchase Agreement Act has been under the purview of the Senate Banking Committee and the House Financial Services Committee.
APRO's new effort will be focused on the Commerce committees, which have different interests and agendas.
Keese said recent conversations with congressional staff convinced him that a second front was needed.
"We were often asked why we were in front of the banking committee trying to amend the truth-in-lending laws, because to get a stand-alone bill passed is very difficult," he said.
"It makes sense to work with the commerce committees because they deal with all sorts of commercial transactions," he said, adding the definition bill APRO is now seeking could simply be attached to a much larger piece of legislation.
"What we're looking at is amending the federal trade laws," Keese said.
In a letter to members, APRO President Shannon Strunk said the association isn't abandoning one strategy for another.
"This strategy will enhance our position in Washington, not diminish or dilute any other efforts. It will also double our chances of success," he said.
APRO still supports the original Consumer Rental Purchase Agreement Act, but is focusing its efforts on the new bill, which has not yet been drafted. Keese expects it to be introduced in the spring.
Keese and Strunk pointed out that under the federal tax code, the transaction between a consumer and a rent-to-own merchant is considered a lease and not a credit sale.
That wasn't always the case. Strunk said a two-pronged effort by APRO — in tax court and in Congress — succeeded in defining the RTO transaction as a lease in the tax code.
"We were able to secure a definition in the tax code before we won in the tax court, but everyone knew that success was because of both efforts," said Strunk, who also is president of Baber's, a rent-to-own chain based in Pascagoula, Miss.
Keese said that taking more than one route to achieve desired legislation is a common practice in other industries.
He doesn't think Congress will see the RTO industry as divided.
"I don't think there's a risk of that at all. This is quite normal in Congress," he said, adding the industry will benefit regardless of which legislation becomes law.
"We don't want to do anything to derail any effort, or our past efforts," Keese said. "We want federal legislation passed to protect the industry, and we will jump for joy when it's passed."
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APRO 2nd-front effort to focus on commerce panels
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