MADISON, Wis. - Two weeks ago, the Wisconsin Credit Union League was looking at the Wisconsin Bankers Association as its main obstacle to the passage of the Credit Union Consumer Choice Bill, S.B. 274. When the political chessboard changed last week after the Wisconsin Credit Union League, the Wisconsin Bankers Association, legislators, the Wisconsin Department of Financial Institutions, the Office of Credit Unions and the Community Bankers of Wisconsin reached a historical financial agreement compromise (CU Times, April 5), the chances looked good for passage of a substitute omnibus bill incorporating the pending Credit Union Consumer Choice Bill, S.B. 274, and the WBA's Universal Bank Bill, A.B. 563.
With the bill down to the one-yard line, progress has been sidelined by a piece of legislation to fund nearly $170 million of a $295 million renovation of Lambeau Field, home of the NFL's Green Bay Packers.
The state Senate's last regular day for deliberations was March 31.
Tom Knabel, vice president, WCUL called the omnibus bill "a victim of political maneuvering."
"The problem is not with any provisions of the bill, no legislator in either state house or on either side of aisle has a problem with the bill. There are a number of issues going on between the Senate Democrats and the Assembly Republicans and the substitute omnibus bill is the victim.
"It's ironic that after coming this far and reaching a compromise with the bankers, that this is the situation we're faced with," said Knabel.
Among the provisions of the omnibus bill, it:
* permits community-chartered CU field-of-membership to include more than one neighborhood, community, rural district, or multicounty region, as long as they are contiguous;
* permits an organization to qualify for membership in a CU if a majority of directors, owners or members individually qualify, or if its principal business location is within the geographic limits of the field-of-members;
* repeals the statutory definition of `members of the immediate family' of a person qualifying for membership. CUs will still be constrained by the literal meaning of the term `immediate family member.'
* removes the 25-mile limitation on branch offices located outside of the state, allowing full-service branches rather than limited service offices;
* allows CUSOs to be organized as any one of the various legal structures permitted under state law and approved by the Office of Credit Unions;
* permits CUs to offer Roth and Education IRAs. CUs can also offer other employee benefit accounts or funds allowed by federal law.
* removes language that implies that credit unions are limited to selling only credit life and credit accident and sickness insurance.
* revises the current provision for interstate acquisition and merger of credit unions.
The bill also would have given Wisconsin's state-chartered banks most of the same powers that federal banks gained from passage of the Gramm-Leach-Bliley Financial Modernization Act.
Knabel explained that the decision on which bills should come up for a vote is up to the state Democrat Senate Majority Leader Chuck Chvula. "It was his call to make," said Knabel, noting that Chvula professes to be a friend of credit unions and participated with the league during the initial announcement of the bill.
Evan Bane, vice president of public affairs for the WCUL preferred to describe the omnibus bill's status as "in a holding pattern."
He explained that "at this time, all we're waiting for is a concurrence vote by the Senate and that doesn't require a lot of debate.
"The Lambeau Field stadium bill has become a huge political football," Bane remarked with an intended pun. "There is a lot of brinkmanship going on between Gov. Tommy Thompson and Sen. Chvula."
Knabel noted that the credit union bill isn't the only bill being held up by the state Senate. "There's a huge number of bills waiting for the final vote," he commented.
What makes the situation even more lamentable is that Gov. Thompson had pushed for the league and WBA to reach a compromise financial agreement and Knabel said the governor "was elated" when the two groups reached an accord.
Asked by Credit Union Times whether Gov. Thompson had released a statement-or planned to-about the Senate's inaction on the bill, an aide to the governor referred all comments to the Department of Financial Institutions.
David Anderson of the DFI said the department "was disappointed" the omnibus financial services bill didn't get consideration during the state Senate's regular session. However, "we are optimistic the Senate will take up the measure when it returns in May.
"The legislation itself has gained a great deal of momentum," Anderson continued. "The fact that it has the unanimous support of the three major financial trade groups in the state - the Wisconsin Credit Union League, Wisconsin Bankers Association and Community Bankers of Wisconsin - only contributes to that momentum. We're sure the Senate will see the benefit of passing this landmark piece of legislation."
The next opportunity to get the bill passed will be during the Senate's last few `clean up' days May 2-4.
If the Senate does not vote on the omnibus bill, the Wisconsin Credit Union League will have to start again next year when the state legislature reconvenes. If that happens, Bane said "the league will work arm and arm with the bankers to make sure the omnibus bill is passed."
In the meantime, Bane said the WCUL is continuing to monitor the situation and strategize what they have to do to make sure the omnibus bill is among the stack of bills the state Senate will consider in the handful of days in early May.
"We have our work cut out for us over the next 30 days," said Evan Bane, vice president of public affairs for the WCUL. -
ekingoff@cutimes.com
