PEWAUKEE, Wis. — The Wisconsin Credit Union League, the Cooperative Network and representatives from credit unions across the state are strongly opposing a bill in the state senate that calls for a merger of several state regulators — including the body that oversees state-chartered CUs — into one super agency.
Senate Bill 119, introduced by Sen. Roger Roth and Rep. Joan Ballweg (both Republicans), will be considered by the Senate Committee on Workforce Development, Public Works, and Military Affairs Wednesday.
The league said the credit union lobby will be asking legislators to "maintain the status quo."
Under terms of the proposal, the state would create the Department of Financial Institutions and Professional Services (DFIPS) by combining the Office of Credit Unions and the Department of Financial Institutions (OCU/DFI), which regulate and oversee the state's financial institutions, along with the Department of Safety and Professional Services (DSPS).
The league indicated that DSPS has oversight over such diverse activities as the cemetery board, family therapists, hydro-geologists, and even bodywork therapists, perfusionists, home inspection, mixed martial arts and cosmetology.
Credit unions are concerned that the proposed merger lacks any identified problems in need of resolution; offers no benefits to financial institutions; was not requested by private sector stakeholders; jeopardizes consumers' current satisfaction and effective service at each agency; provides no evidence of cost savings or efficiencies for credit unions or banks as OCU/DFI operate on fees paid by the regulated industries; and creates a larger bureaucracy.
"We're in the heat of agreement with the [state] Administration that government should be responsive, efficient and accountable," said Tom Liebe, the league's senior vice president of advocacy, in a statement. "However, merging the agencies tasked with regulation of the state's 350 financial intuitions with the agency responsible for credentialing massage therapists, soil scientists and boxing regulation is something that isn't needed right now. Furthermore, the status quo is working extremely well for the state's financial institutions that employ more than 15,000 Wisconsinites and currently hold approximately $75 billion in assets."
Indeed, the league noted that the state's credit unions and banks are "thriving under an effective, efficient and focused regulatory agencies." In addition, a study, prepared by Wisconsin's Republican Gov. Scott Walker's Department of Administration, reported satisfaction with DSPS service and recommended against merging with a different agency.
"DSPS currently reviews nearly 50 diverse boards and councils with which the Department of Financial Institutions has little overlap," said Bill Oemichen, president and CEO of Cooperative Network, which represents the interests of Wisconsin's cooperative businesses, including credit unions. "s with the unsuccessful proposal to merge DSPS and the Department of Agriculture, Trade and Consumer Protection just a couple of years ago, we fear this consolidation could dilute the new agency's focus and put at risk the safety and soundness of Wisconsin's financial institutions."
Liebe added the league and the Cooperative Network hope that legislators will hear the concerns of stakeholders, recognize the merger is unnecessary at this time, remove the proposal from the budget bill, and "direct their attention to exploring other options for efficiencies and increased accountability in state government."
