Tag Archive for: Advocacy

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March Madness Begins, and Ends…

By Lorenzo Cruz

March Madness marks the start of the NCAA basketball tournament and the conclusion to an active 2022 legislative session for the Wisconsin Bankers Association (WBA) government relations (GR) team.

A Successful Legislative Session in the Books

WBA successfully defeated two bills which would have negatively impacted the banking industry. AB 478/SB 451 would have broadened the powers of credit unions by allowing for: non-member participation in loans, the ability to issue and offer supplemental forms of capital for all credit unions, the automatic adoption of federally chartered credit union activities or powers for state-chartered credit unions, and the broadening of the authority of credit unions on holding property. During the negotiations, it became evident that the priority for the Wisconsin Credit Union League (WCUL) was their supplemental capital change which contributed to the demise of the bill. WBA effectively lobbied and defeated the bills in the Assembly and Senate.

Another piece of legislation that drew a great amount of WBA’s lobbying attention was a bill related to interchange fees. AB 587/SB 572 would have prohibited the application of the interchange fee to the tax portion of the credit card transaction and would have provided a penalty for a violation. A retailer coalition advocated aggressively for the legislative change and WBA, WCUL, and several credit card companies opposed the effort. If passed, the bill would have required credit card companies to implement a split tender transaction for purchasing products or services, which means customers would have to swipe their credit card for the retail sum purchase and then pay with either cash or check for the tax portion of the transaction. WBA warned legislators of the cost shift, customer confusion and frustration that could follow from the change. The bills died in the Senate and Assembly Financial Institutions Committees.

Other bills worth noting are AB 596/SB 596 related to banking modernization and AB 45/SB 19 and AB 46/ SB 20 related to elder fraud. The banking modernization bill would have removed outdated regulation and other impediments to banking and the elder fraud bill would have provided banks with more tools to help protect older customers from fraud and abuse. The legislative proposals passed overwhelmingly in one House but then failed to be acted upon in committee or placed on the calendar for a floor vote. In some ways, the bills became collateral damage from the credit union battle. WBA did make considerable progress on both issues and will collaborate with legislators to reintroduce similar bills in the next legislative session.

Looking Ahead to Next Year

With the end of the March session, WBA GR shifts the team’s focus to political fundraising, member outreach, and strategic planning for the 2023 session. Many of the legislative issues identified above will return and be debated in the next state budget or advanced as separate pieces of legislation. WBA needs to prepare and lay the groundwork for the fight ahead on these critical public policy initiatives.

All members — big, medium, and small — must be more engaged financially in the political process and committed to grassroots advocacy to advance the industry’s priorities. Political campaigns have continued to trend upwards in cost, and the 2022 fall elections should see more spending records broken for state and federal races. With control for the East Wing in play and majorities at stake in both State and Federal Houses, expect hundreds of millions of dollars to be spent in Wisconsin which has become a battleground state for the rest of the country. WBA can ill afford to be a spectator. Sitting on the sidelines runs the risk of electing anti-banking candidates which could have severe negative consequences for our industry. It is imperative to have the political funds in place for WBA to support pro-banking incumbent legislators and challengers. Individual members are strongly encouraged to give to the Wisbankpac or Alliance of Bankers for Wisconsin (ABW) Conduit and corporations are urged to contribute generously to WBA’s issue advocacy fund. For more information go to www.wisbank.com/give.

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U.S. Supreme Court Tosses Recently Adopted Wisconsin Redistricting Plan

By John Cronin

In a 7–2 decision released Wednesday afternoon, the U.S. Supreme Court reversed the decision the Wisconsin Supreme Court delivered three weeks ago on new state legislative district maps. The U.S. Supreme Court denied a similar request to overturn congressional boundaries set by the Wisconsin Supreme Court. A brief timeline:

  • November 11, 2021 – GOP-controlled Legislature passes new legislative and congressional maps
  • November 18, 2021 – Dem. Governor Tony Evers vetoes those maps
  • November 30, 2021 – Wisconsin Supreme Court sets “least change” approach to analyzing proposed maps parties submit to the Court
  • January 19, 2022 – Wisconsin Supreme Court oral arguments on redistricting case, proposed maps submitted by interested parties (Legislature, Governor, Wisconsin members of Congress, etc.)
  • March 3, 2022 – Wisconsin Supreme Court delivers a 4–3 ruling in favor of maps Gov. Evers submitted to the Court (Ziegler, R. Bradley, and Roggensack dissent)
  • March 7, 2022 – GOP-controlled Legislature appeals the Wisconsin Supreme Court ruling to the U.S. Supreme Court, arguing the Governor’s maps adopted by the Court were inconsistent with the Equal Protection Clause in the 14th Amendment of the U.S. Constitution. In question were seven districts fully or partially located in the City of Milwaukee.
  • March 23, 2022 – U.S. Supreme Court rules the Wisconsin Supreme Court erred in their application of Court decisions on the guarantee of equal protection and the Voting Rights Act. (7–2 decision, Justices Sotomayor and Kagan dissent)
What’s next?

The U.S. Supreme Court remanded the case back to the Wisconsin Supreme Court to either select a different map submission or reconsider the Governor’s maps in a manner consistent with the Court’s opinion today.

An April 15 deadline looms: this will be the first day legislative candidates may circulate nomination papers to get on the ballot for the Fall election.

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Statement on the Recent Acquisition of a Taxpaying Wis. Bank by a Credit Union

By Wisconsin Bankers Association President and CEO Rose Oswald Poels 

In a deal announced yesterday, Summit Credit Union will acquire West Bend’s Commerce State Bank. This marks the sixth acquisition of a taxpaying Wisconsin bank by a tax-exempt credit union in a decade, continuing a concerning trend of taxpaying community banks being bought by large, growth-oriented credit unions. The acquisition will bring Summit Credit Union to nearly $6 billion in assets with 54 locations. With Commerce State Bank’s $837 million in assets, this is one of the largest credit union acquisitions of a bank nationwide to date.

Wisconsin taxpayers should be very concerned about this transaction as the state alone will lose over $1 million annually in future tax revenues with this sale because credit unions do not pay any state or federal income tax. With large credit unions becoming indistinguishable from tax-paying banks, it is time for the public and elected officials to question the public policy rationale for this significant tax benefit. Why should the 14 Wisconsin-based credit unions over $1 billion in asset size pay nothing in state income tax to support social services, law enforcement, schools, and other public services? Individuals, families, and tax-paying businesses are left to shoulder these growing expenses. Not only is tax revenue lost in these transactions, but jobs in the state are often lost when the acquirer is an out-of-state credit union and/or when certain functions are consolidated. This type of consolidation is not in the public’s interest.  

While Wisconsin now has two pending bank acquisition transactions by credit unions, credit unions are also actively seeking expansionist powers from the legislature and their regulator that, among other things, would permit credit unions to raise capital from private equity investors. The days of small, employer- or neighborhood-focused credit unions are long gone. Elected officials should carefully scrutinize this legislation and strongly oppose Wisconsin AB 478/SB451 as it is in direct conflict with the public policy intent behind the tax exemption granted by this same body decades ago.  

It is time for growth-oriented credit unions to be paying their fair share of taxes. Competition in any industry is fair and healthy, but only when the playing field is level. Taking a tax-paying business off the tax roll by a “not-for-profit,” tax-exempt entity directly harms the citizens of this state and threatens the vibrancy and diversity of our state’s financial system.

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Executive Letter: WBA Trademark Legal Action Resolution

Rose Oswald PoelsBy Rose Oswald Poels

Friends are people we all want in our lives both personally and professionally, and I’m very humbled to say that Wisconsin Bankers Association (WBA) has many friends across the banking association industry. This was very evident as we navigated, since May 2021, the trademark legal matter that I discussed earlier last month involving Western Bankers Association. Since my last communication to you, 10 states in the West sent a letter to Steve Andrews, the president and CEO of Western Bankers, expressing their concerns and requesting that he address them — including the trademark legal matter. Following that, the states involved in the trademark legal matter organized 17 state associations outside of the West and 15 state association board chairs, including the Wisconsin Bankers Association’s, to sign on to a coalition letter to Mr. Andrews and his executive committee, supporting the concerns of the 10 western states indicating that something needs to be done to resolve these issues and repair the fracture that exists across the Alliance of state bankers associations.

I am very pleased to say that I received an email late on Friday, February 12 from our attorneys indicating that Western Bankers had filed on Friday in the U.S. Patent and Trademark Office (USPTO) “Surrender of Registration” documents for both CBA and WBA acronyms. This is a long-overdue result but very positive news! With the filing by Western Bankers of their surrender document without our consent, the USPTO, just this morning — pursuant to the rules — granted our Petition to Cancel and entered judgment against Western Bankers in our legal action. This morning’s action by the USPTO effectively favorably ends our legal action and because judgment on the Petition was entered in our favor, the ruling is with prejudice, which means that Western Bankers is precluded from trying to register the WBA mark in the future.

In addition to the public support of 16 other state associations signing on to the coalition letter, several other state association colleagues made phone calls to Mr. Andrews and/or California bankers to support our concerns. Furthermore, Joe Witt, president and CEO of Minnesota Bankers Association, organized a legal fund for the four states involved in the legal action that, had the legal process continued, would have helped offset legal expenses for all four states. Mr. Witt sent out communication to the associations in the central part of the country, along with others, requesting donations and seeding the fund with MBA’s own $5,000 contribution. The outpouring of financial support we received from many other state associations for this fund was inspiring.

All of these collective efforts demonstrate why it is so powerful for the state associations to work together for the benefit of the banking industry. So much good can be accomplished from collaboration and respect for one another. Certainly, this action by Western Bankers Association is a very positive step forward in the right direction toward repairing the fracture that exists in the Alliance. However, I continue to remain concerned about their attempts to cross state borders in selling education without the involvement of the state association, soliciting membership from banks with no physical presence in California, and sending general communications under the guise of “community banking” to bankers across the country. I am deeply grateful for all of your support of WBA and hope that you will continue to keep the issues we still struggle with as it relates to Western Bankers in your mind when you receive emails or other solicitations from them. I know my state association friends across the country who have supported us in this legal matter will appreciate your awareness as well.

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Executive Letter: Thank You for Your Advocacy Efforts!

Rose Oswald PoelsBy Rose Oswald Poels

As the 2021–2022 legislative sessions come to a close next month, our Government Relations team at the Wisconsin Bankers Association have been working tirelessly to ensure that the voices and needs of our member banks are heard by our legislators both in Madison and in Washington, D.C.

Grassroots advocacy is foundational to our work at WBA. On January 18, over 100 bankers from across the state met at the State Capitol in Madison for WBA’s annual Capitol Day. Along with advocating for our legislative agenda, bankers had the opportunity to hear from the elected leadership from both parties and several insiders regarding the remainder of the 2021–2022 session and the upcoming November election. I want to thank all of the 2022 Cap Day attendees for your grassroots advocacy for our industry and continued efforts in keeping our legislators informed.

Along with your general advocacy in support of issues affecting our industry, the efforts of WBA-member bankers specifically on the WBA-led banking modernization bill directly helped in this bill clearing two significant hurdles just last week. On Tuesday, the full State Senate unanimously passed SB 596 on a voice vote. Then on Wednesday, the Assembly Committee on Financial Institutions recommended the bill for passage on a 9–0 vote. I am incredibly grateful to bill authors Sen. Howard Marklein (R-Spring Green) and Rep. Terry Katsma (R-Oostburg) for their efforts in advancing this important legislation. The bill is now eligible to be voted on by the full State Assembly, the final step before it would head to Gov. Evers for signature.

This spring, WBA will also be joining both the American Bankers Association (ABA) and Independent Community Bankers of America (ICBA) for our spring Washington, D.C. visits. These summits, taking place March 7–9 and May 1–4 respectively, are critical in making your voice heard by policymakers in Washington, D.C. Please let me know if you are interested in attending one of these two key summits at your earliest convenience.

2022 is off to a fast start on policy matters and the hectic pace is only expected to continue as we approach several high-profile elections later this year. As always, I know that your grassroots involvement will not only help us shape the future of our industry, but, also, assist us in advocating successfully for the banking industry throughout the remainder of the year.

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Cherry blossoms in full bloom at the Washington monument
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Spring 2022 Washington, D.C. Trips

The Wisconsin Bankers Association is headed back to Washington D.C. this spring, and we invite you to join us! As we have in the past, WBA will be joining with both the American Bankers Association and Independent Community Bankers of America for our spring Washington visits and will be scheduling Hill visits with those in our congressional delegation willing to meet with us in person.   

The first trip will be the WBA/ABA Washington Summit, scheduled for March 7–9, 2022. There is a virtual option to this Summit as well. For more information and to register, please visit www.aba.com/summit.

Please note that the District of Columbia has implemented a citywide vaccination entry requirement which requires bankers attending the Summit in person to provide proof of vaccination upon arrival at the Marriott Marquis hotel. Proof of a negative PCR test is not acceptable. Masks will also be required during all Summit-related events, except when actively eating or drinking. 

The second trip will be the WBA/ICBA Capital Summit, May 1–4, 2022. Registration for this event will open very soon. For more information, please visit www.icba.org/capitalsummit.

WBA members are welcome on either trip regardless of whether your bank is a member of one of the national trade groups. Make your voice heard and join WBA at one of these two advocacy trips! If you have any questions, please contact WBA’s Rose Oswald Poels.

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Gavel, legal papers, and statue arranged on table with books in background
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WBA-Initiated Legal Action

Rose Oswald PoelsBy Rose Oswald Poels

I have worked full time at WBA now for almost 29 years and have had the pleasure of interacting with my colleagues (legal counsels and state association executives) from around the country at various American Bankers Association (ABA) and Independent Community Bankers of America (ICBA) events throughout that time. Every banking association is focused on the same general priorities of advocating on behalf of their members in each state and with our respective congressional delegations for the good of the entire collective banking industry, as well as providing member value through various products and services. All these state associations are a family in the sense that we all are working to better the banking industry.

Particularly in the advocacy space, congressional and federal regulatory action impacts the franchise value of every bank in the country. Consequently, each state association must do its part to help elect individuals to office who are “B” for banking, and nurture relationships with their members of Congress to at least have constructive dialogue with them on issues important to the industry. The strength of our industry is inextricably tied to the strength of each individual state association working collectively with each other on these common goals. To accomplish this, we need bankers to support the trade associations in the states in which they do business, and we need the state associations to work cooperatively with each other. Unfortunately, the latter is not currently happening.

I learned last spring that the California Bankers Association (CBA) filed an application with the U.S. Patent and Trademark Office (USPTO) seeking federal trademark registration of trademark “WBA.” The application was filed in late 2017, just prior to their merger with the Western Independent Bankers (WIB) organization. After CBA’s merger with WIB, CBA changed its name to Western Bankers Association. Unfortunately, the USPTO issued the federal trademark registration in February 2020 despite the Wisconsin Bankers Association’s existing and long-standing trademark rights in the trademark “WBA,” and despite the likely similar rights of two other state banking associations in the trademark “WBA.” None of the trade association executives from the state associations with rights in the mark “WBA” were made aware of this filing by CBA.

Given the common law trademark rights the Wisconsin Bankers Association has long held in the “WBA” trademark, this situation is untenable. Last May, I joined my colleagues from Washington and Wyoming in a virtual meeting with Steve Andrews, the current Western Bankers Association President and CEO, to attempt to discuss and resolve this situation, with our requests including that he voluntarily surrender this federal trademark registration with the USPTO. It was clear in that conversation that Mr. Andrews believed they had an asset worth protecting and surrender of the registration was unlikely. The three state associations with rights in the mark “WBA” then attempted to settle with the Western Bankers Association through our respective attorneys throughout last fall.  When it became clear that an amicable final resolution would not happen, we initiated an administrative legal action in the USPTO in November seeking cancellation of CBA’s federal trademark registration.

Efforts by many association colleagues to encourage Mr. Andrews to work out these legal issues have continued, but instead he has chosen to double down on his position. In the case of the WBA trademark registration, the Western Bankers Association chose to file a response in the pending action denying our claims on January 3, 2022, so that action now continues to the discovery phase. If this legal action proceeds through the full trial schedule, the case will continue well into 2023.

To the best of my knowledge, this is the first time that an individual state bankers association has attempted to federally register a trademark in which another state bankers association owns prior trademark rights. It is incredibly disappointing that another peer association would take this action, which knowingly and purposely harms other associations and their members. I know that we all could use the money we are spending on legal fees in other ways for the benefit of all of you rather than engaging in this family feud.

Since this is the first time WBA has been a party in a legal action of this type, I wanted to bring this matter to your attention since you are members, and, therefore, owners of WBA. Furthermore, I am aware that the Western Bankers Association is regularly emailing and soliciting banks outside of the state of California for membership and for participation in their education programs, including many of you. Please consider their actions in this matter when you receive this type of communication. If you have any questions on our legal action, please don’t hesitate to contact me directly.

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Street view of Wisconsin State Capitol building
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It’s a Wrap on Cap Day 2022

Each day, bankers work for the economic wellbeing of their customers and communities. On January 18, those efforts were brought to the forefront at the State Capitol. Over 100 bankers attended WBA Capitol Day (a.k.a. “Cap Day”) in Madison; for some, it was the first-time stepping foot into a legislator’s office, and for others, it was an opportunity to build on established relationships with their elected officials.

The day kicked off at the Monona Terrace with a panel discussion moderated by WisPolitics President Jeff Mayers. Participants heard straight from Assembly Speaker Robin Vos, Senate Majority Leader Devin LeMahieu, Assembly Minority Leader Greta Neubauer, and Senate Minority Leader Janet Bewley. Discussion topics included: an outlook for the final two months of the legislative session, the state’s economy, the impact the COVID pandemic continues to have on their communities and constituencies, and ways the Legislature can work to address workforce issues.

Scott Jensen and Chuck Chvala, “The Insiders,” covered many political topics and focused on what this fall’s election likely has in store. They covered the Governor’s race, the US Senate race, and how the candidates in those races will affect other races down the ballot. They also took us back in time to the Tommy Thompson heyday several times to illustrate how much Wisconsin politics has changed over the last 25 years.

Over the lunch hour, Department of Revenue Secretary Peter Barca provided perspective on the state’s economy and outlines several of Gov. Tony Evers’ ongoing priorities as we enter the final year of his first term.

The WBA Government Relations team gave a rundown of state legislative topics, a state government 101 review, and an overview of key 2022 political races to watch. After the prep session was complete, participants headed to the Capitol to advocate on key issues with the unique perspectives only bankers can provide. Legislators learned directly from bankers how issues like credit union expansion, banking regulatory modernization, credit card swipe fees, and elder financial exploitation affect their local economies and constituents.

Thank you to the attendees and sponsors — Bankers’ Bank, FHLBank Chicago, the KeyState Companies, Mastercard, and Visa — who made the event a success! This event is the culmination of the work that the WBA Government Relations staff, Government Relations Committee, Advocacy Officers, and civically engaged bankers do year-round. The positive impact is evident in the feedback WBA receives from legislators and bankers alike — Capitol Day makes a difference!

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Redistricting Update

By John Cronin

Legislative and Congressional redistricting is one of the most significant things the state Legislature undertakes every ten years in order adjust each Assembly, Senate, and Congressional district after the census. The Legislature is responsible for redrawing lines, subject to the Governor’s veto. This saga has been playing out for several months now in all three branches of government.  

Over the summer, before census data was even available to draw new district boundaries, right- and left-leaning interest groups were filing lawsuits attempting to steer inevitable litigation to either the State Supreme Court or federal court. This was done because everyone knew the GOP-controlled state Legislature and Democratic Gov. Tony Evers would never agree on a redistricting plan. Both the Wisconsin Supreme Court (SCOWIS) and the 7th Circuit Court of Appeals accepted separate cases on the matter earlier in the fall. 

What many predicted would inevitably be a perfunctory legislative process did indeed take place in October and November. Republican leaders in the Assembly and Senate introduced new maps in late October. Those maps were approved in each house on party-line votes in mid-November. True to his word, Gov. Evers vetoed those maps a week later.  

Upon the Governor’s veto, the redistricting process ended up in its expected destination — the courts. This will be litigated over the next month in the Wisconsin Supreme Court; the federal panel paused their action, stating they were going to observe SCOWIS’s action before deciding whether to act. 

The most recent development in the case at the state level took place on November 30, when SCOWIS stated they would make the “minimum changes necessary” to the current legislative and congressional maps when it determines new boundaries. This was viewed as a big win for Republicans, who already hold significant majorities in both chambers of the State House. 

Oral arguments are expected in January before the Wisconsin Supreme Court. A decision on district boundaries must be made in advance of April 15, the first day candidates may circulate nomination papers for the November 2022 general election.

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