Press

PEWAUKEE, WI (April 21, 2015) — Representatives from credit unions across the state, The Wisconsin Credit Union League and Cooperative Network will voice opposition to Senate Bill 119, a proposal to merge state agencies, during a Senate Committee Public Hearing on Wednesday. Legislators will be asked to maintain the status quo.

The proposal, which is identical to language included in the governor’s budget bill, 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, with the Department of Safety and Professional Services (DSPS). DSPS has oversight for the cemetery board, family therapists, hydrogeologists, bodywork therapists, perfusionists, home inspection, mixed martial arts and cosmetology.

Credit unions have expressed concern that the merger:

• lacks any identified problems that need to be resolved;
• 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 Administration that government should be responsive, efficient and accountable,” said The Wisconsin Credit Union League’s Senior Vice President of Advocacy Tom Liebe. “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.”

The state’s credit unions (cooperative financial institutions), and banks are thriving under an effective, efficient and focused regulatory agencies.

A study, prepared by Governor 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. “As 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.”

Senate Bill 119 was introduced by Sen. Roger Roth and Rep. Joan Ballweg and will be considered by the Senate Committee on Workforce Development, Public Works, and Military Affairs on Wednesday, April 22, at 1 p.m. in Room 411 South at the Capitol in Madison.

“The Wisconsin Credit Union League and 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,” observed Liebe.