Laws need not be clear as mud; clean them up

I have seen entrepreneurs overcome challenges that defy description, that would bring an average person to their knees or that otherwise would represent an insurmountable obstacle.  There is a level of pride in the sheer tenaciousness of an entrepreneur to never give up. One of my favorite definitions of an entrepreneur is “a person who is too stupid to quit.”

But all entrepreneurs have their limits. Some of these limits are encoded in laws and regulations that govern how businesses may conduct themselves. Some of these limits are the laws and regulations. There is a need for rules that enable everyone to work with everyone else. But there is no need for laws and regulations that are “clear as mud.”

This expression came up occasionally when I was growing up in eastern Kansas. It might be attributed to a political speech, a set of instructions or anything else that lacked clarity: including certain laws and regulations.

I recently engaged in a search for an answer regarding a legal issue involving securities law. As a licensed attorney, I did not start this search unprepared and without a good start. However, I was working with two sets of laws that contradicted each other and made no provision for resolution.  I asked other attorneys with more experience than myself and got a series of I don’t knows, nos, maybes and possiblys, but no yeses and no consensus. I found myself in a situation where I became frozen by the law. I wanted to obey the law, but it was impossible.

Entrepreneurs have to face this same challenge every day when dealing with more and more laws and regulations. Many of these laws are conflicting, confusing and simply beyond comprehension. Like a medical patient who is taking a number of prescribed drugs from different doctors, there is the potential for a negative interaction.

Having participated in drafting new laws and regulations, I know the difficulty of being clear while creating something that is practically useful. My contribution to this process was greater as an entrepreneur that understood how the market worked than any of my legal training. I supported all of the individuals contributing to the wording of new legislation: giving input on how the legislation might work when applied in a variety of business situations.  I provided context. You could say I served as a crash dummy. At the end of the day, the new laws and regulations were not perfect, but they were far better than many laws and regulations that are drafted within the input of the business community.

Entrepreneurs can help themselves by contacting their legislators and offering themselves as experts. The Colorado Legislature is currently in session. All of the proposed laws can be viewed at its website, www.leg.state.co.us. All of the contact information for each legislator also is on this site.

Contact your local chamber of commerce, professional or business association. Most of these organizations have a person, committee or even a lobbyist that tracks new legislation. Talk with them about which laws are proposed where you may contribute your experience to make them clearer and beneficial. Many of these laws will require new regulations that require a public posting and an opportunity for public comment. Take this opportunity.

As much as our elected and appointed officials are our representatives, they do not and cannot know all the things that entrepreneurs may have learned through all of their experiences. Without the input of entrepreneurs, some of the new laws and regulations may be clear as mud. Do your part to keep this from happening.

Contact Karl Dakin of Dakin Capital Services LLC at 720-296-0372 or kdakin@dakincapital.com.

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