IOWA S CREDIT UNION AT THE STATE AND FEDERAL LEVEL

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1 IOWA S CREDIT UNION ALLIES AT THE STATE AND FEDERAL LEVEL follow like us facebook.com/iowalittleguy w visit us IowaCreditUnions.com/OneMillionStrong

2 YOUR VOTE MATTERS. Thank you for advocating the credit union difference. Your leadership in the Iowa credit union movement is a very important reason that Iowans have an alternative to for-profit banking institutions. All Iowans and their communities benefit because of the competition provided by credit unions in the marketplace. Your grassroots participation in the legislative process helps lawmakers be mindful of the taxes credit unions pay, the products and services offered, as well as the membership and communities served. The support shown through grassroots activities and contributions to the Credit Union Political Action Committee (CUPAC) are vital in our efforts to help lawmakers better understand the credit union industry and elect legislative candidates who share in the credit union philosophy. As part of our member engagement plan efforts, we have included in this brochure a list of those candidates running in the 2012 election who are being supported by CUPAC. We hope you will share this information with your credit union team as well as your membership. Thank you for the time and energy you spend to improve the Iowa credit union movement, and for your contributions to CUPAC. Sincerely, Patrick S. Jury CEO/President Iowa Credit Union League Justin Hupfer CEO PolicyWorks follow like us facebook.com/iowalittleguy w visit us IowaCreditUnions.com/OneMillionStrong

3 IOWA S STATE House of Representatives Scott Ourth (D Ackworth) Joe Judge (D Albia) Lisa Heddens (D Ames) Beth Wessel-Kroeschell (D Ames) Kevin Koester (R Ankeny) John Landon (R Ankeny) Linda Miller (R Bettendorf) Phyllis Thede (D Bettendorf) Dennis Cohoon (D Burlington) Bob Kressig (D Cedar Falls) Walt Rogers (R Cedar Falls) Tyler Olson (D Cedar Rapids) Kirsten Running-Marquardt (D Cedar Rapids) Renee Schulte (R Cedar Rapids) Todd Taylor (D Cedar Rapids) Linda Upmeyer (R Clear Lake) Mary Wolfe (D Clinton) Dave Jacoby (D Coralville) Mark Brandenburg (R Council Bluffs) Mary Ann Hanusa (R Council Bluffs) Cindy Winckler (D Davenport) Jim Lykam (D Davenport) Ako Abdul-Samad Marti Anderson Bruce Hunter Kevin McCarthy Jo Oldson Rick Olson Chuck Isenhart (D Dubuque) Pat Murphy (D Dubuque) Helen Miller (D Fort Dodge) Henry Rayhons (R Garner) Clel Baudler (R Greenfield) Jack Drake (R Griswold) Kraig Paulsen (R Hiawatha) Vicki Lensing (D Iowa City) Mary Mascher (D Iowa City) Jake Highfill (R Johnston) Chuck Soderberg (R Le Mars) Tom Schueller Nick Wagner Mark Smith Dave Heaton Pat Grassley Joel Fry David Dawson Chris Hall Deborah Berry Anesa Kajtazovic Bill Heckroth Chris Hagenow Peter Cownie Rob Taylor State Senate Jake Chapman Amy Sinclair Brian Schoenjahn Jerry Behn Tom Courtney Rob Hogg Mike Gronstal Matt McCoy Janet Petersen Shawn Hamerlinck Pam Jochum Merlin Bartz Randy Feenstra Kent Sorenson Nate Willems Rich Taylor Bill Anderson Rick Bertrand Steve Sodders Brad Zaun Mark Segebart Jeff Danielson Pat Ward (D Maquoketa) (R Marion) (D Marshalltown) (R Mount Pleasant) (R New Hartford) (R Osceola) (D Sioux City) (D Sioux City) (D Waterloo) (D Waterloo) (D Waverly) (R Windsor Heights) (R West Des Moines) (R West Des Moines) (R Adel) (R Allerton) (D Arlington) (R Boone) (D Burlington) (D Cedar Rapids) (D Council Bluffs) (R Dixon) (D Dubuque) (R Grafton) (R Hull) (R Indianola) (D Lisbon) (D Mount Pleasant) (R Pierson) (R Sioux City) (D State Center) (R Urbandale) (R Vail) (D Waterloo) (R West Des Moines)

4 IOWA S FEDERAL Iowa Congressional Overview District One BRUCE BRALEY (D Waterloo) BEN LANGE (R Independence) Q: The regulatory burden on credit unions (and other financial institutions) has increased significantly over the past several years. While government regulation is needed to protect safety and soundness, the compliance burden is increasing significantly and, in turn, increasing costs to the member-owners of Iowa credit unions. Would you support efforts to provide credit unions with regulatory relief? BRALEY: Yes. That is why I have added my support to H.R. 3461, the Financial Institutions Examination Fairness and Reform Act. This legislation brings fairness to the financial institutions examination process and more transparency to an uncertain regulatory climate. The bill would establish openness within the examination process and make sure credit unions receive their results in a timely manner. It would also allow for a more independent appeals process when there is a legitimate disagreement between the credit union and the regulator. LANGE: Did not respond. Q: Currently, federal law limits credit unions from making member business loans beyond 12.25% of their assets. There is bi-partisan legislation pending before U.S. Congress that would raise this lending limit to 27.5% of credit union assets. Would you support raising the member business lending cap? BRALEY: Yes. That is why I am a cosponsor of H.R. 1418, the Small Business Lending Enhancement Act. This legislation raises the current credit union member business lending cap from percent to 27.5 percent. Raising the lending cap will help small businesses create jobs and grow the economy. LANGE: Did not respond. Q: Do you support the current tax status of credit unions? BRALEY: Yes. I agree with the current tax structure for credit unions because credit unions exist to serve their members. LANGE: Did not respond. Q: Would you support legislation permitting credit unions to accept additional forms of supplemental capital? BRALEY: I understand the importance of raising capital for all financial institutions and particularly rebuilding capital ratios for those impacted by the financial crisis, and I am open towards permitting credit unions to accept additional forms of supplemental capital. LANGE: Did not respond.

5 IOWA S FEDERAL Iowa Congressional Overview District Two DAVID LOEBSACK (D Iowa City) JOHN ARCHER (R Bettendorf) Q: The regulatory burden on credit unions (and other financial institutions) has increased significantly over the past several years. While government regulation is needed to protect safety and soundness, the compliance burden is increasing significantly and, in turn, increasing costs to the member-owners of Iowa credit unions. Would you support efforts to provide credit unions with regulatory relief? LOEBSACK: Yes. I am a co-sponsor of H.R. 3461, the Financial Institutions Examination Fairness and Reform Act which will ensure credit unions receive timely exams and also institute a new appeal process. I believe that regulations should be tailored to ensure that smaller institutions are not disadvantaged by one-size-fits-all regulations that give larger institutions an advantage. I have worked in the past to ensure regulations are made with smaller community institutions in mind and will continue to focus on common-sense rules and regulations. Access to capital is critical for our economy to recover and credit unions should be able to focus on serving their members, not complying with unnecessary regulations. ARCHER: Did not respond. Q: Currently, federal law limits credit unions from making member business loans beyond 12.25% of their assets. There is bi-partisan legislation pending before U.S. Congress that would raise this lending limit to 27.5% of credit union assets. Would you support raising the member business lending cap? LOEBSACK: I am willing to discuss this issue further and examine proposals that would increase the lending rules for certain member business loans. I have also cosponsored legislation to allow credit unions to build net worth through new capital investments. Access to capital is also extremely important for small businesses to grow and create jobs and I have worked in the past to ensure businesses are aware of Iowa credit union services in the business lending arena. I also understand that Iowa credit unions do an outstanding job of making business loans that many larger financial institutions are unwilling to take on, which is critical to helping Iowa s small businesses. Q: Do you support the current tax status of credit unions? LOEBSACK: Yes. I believe that as non-profits that serve their members for the purposes they were chartered, credit unions should not be subject to taxation. While we must address our long-term deficit issues and I have previously worked to push forward a large-scale and balanced deficit reduction proposal. Credit unions have a unique structure that benefits their members and the community and so long as they are different from a for-profit institution and serve the community, their treatment should remain the same. ARCHER: Did not respond. ARCHER: Did not respond. Q: Would you support legislation permitting credit unions to accept additional forms of supplemental capital? LOEBSACK: Yes. I am happy to say I am cosponsor of H.R. 3993, the Capital Access for Small Businesses and Jobs Act which will allow credit unions to receive additional forms of capital and redefine net worth to include the additional forms of capital investments. I know it is also important to maintain the member-owner non-profit cooperative structure in order to preserve the traditional relationship with the community that credit unions have historically maintained. I hope this legislation will help credit unions better meet the needs of the families and small businesses that are their customers. ARCHER: Did not respond. Iowa Iowa Credit Credit Union Union League League NW NW 118th 118th Street Street Des Des Moines, Moines, IA IA IowaCreditUnions.com/OneMillionStrong

6 IOWA S FEDERAL Iowa Congressional Overview District Three LEONARD BOSWELL TOM LATHAM (R Clive) Q: The regulatory burden on credit unions (and other financial institutions) has increased significantly over the past several years. While government regulation is needed to protect safety and soundness, the compliance burden is increasing significantly and, in turn, increasing costs to the member-owners of Iowa credit unions. Would you support efforts to provide credit unions with regulatory relief? BOSWELL: I support the review of unnecessary regulations and their repeal where it is determined to be warranted so that credit unions and other financial institutions can focus their energies on serving their customers and communities while maintaining a high level of financial security and soundness. LATHAM: I would like to make a particular note of legislation I authored and introduced this year H.R the Regulatory and Economic Freedom Act. The legislation is the culmination of a yearlong effort hosting roundtables with small business leaders in communities across Iowa to draft legislation that creates a more accountable federal regulatory process and offers consumers and businesses relief from our bloated and misguided regulatory process. The Regulatory and Economic Freedom Act contains three major features to shed sunlight on harmful federal regulations through the Red Tape Reduction Commission that is designed to give American small business owners a stronger voice. The second major feature of the legislation mandates all federal agencies to do a c cost-benefit analysis of every regulation as it is proposed to give those who are effected the proper information to comment and determine how it will affect them, and to ensure that the proposed regulation will truly provide a net benefit to the American people. The final part of the legislation place full accountability for the federal regulatory process on the shoulders of elected government leaders. Each new significant regulation will be required to be approved by an open roll call vote by both houses of Congress and then signed by the Presidents before it can take effect. The Administration will no longer be able to skirt the legislative process and overstep its constitutional authority, and lawmakers will have to answer for every regulation they supported or opposed. Q: Currently, federal law limits credit unions from making member business loans beyond 12.25% of their assets. There is bi-partisan legislation pending before U.S. Congress that would raise this lending limit to 27.5% of credit union assets. Would you support raising the member business lending cap? BOSWELL: At a time when our economy is in recovery and the need for capitol is high, I would review and consider proposals to spur an increase in lending from all financial institutions so that entrepreneurial opportunities can be expanded and our small businesses can continue to grow and create jobs. LATHAM: I understand how important this is to credit unions and I believe it has considerable merit. I welcome the chance to further discuss this with your members as I continue to study the proposal. Q: Do you support the current tax status of credit unions? BOSWELL: Yes. LATHAM: Yes. Q: Would you support legislation permitting credit unions to accept additional forms of supplemental capital? BOSWELL: I would review and consider proposals that will increase capital for financial institutions so that they can grow and with that growth, increase opportunities for business generation and job creation within their communities. LATHAM: Yes.

7 IOWA S FEDERAL Iowa Congressional Overview District Four CHRISTIE VILSACK (D Ames) STEVE KING (R Kiron) Q: The regulatory burden on credit unions (and other financial institutions) has increased significantly over the past several years. While government regulation is needed to protect safety and soundness, the compliance burden is increasing significantly and, in turn, increasing costs to the member-owners of Iowa credit unions. Would you support efforts to provide credit unions with regulatory relief? VILSACK: Yes. I have and always will champion smart, effective regulation. Pruning unnecessary and burdensome requirements should be a constant, ever-evolving process with open dialogue. KING: Yes. Q: Currently, federal law limits credit unions from making member business loans beyond 12.25% of their assets. There is bi-partisan legislation pending before U.S. Congress that would raise this lending limit to 27.5% of credit union assets. Would you support raising the member business lending cap? VILSACK: Yes. I would fully support the spirit and intent of this provision. I understand the current number is an outdated and arbitrary limit. It is restricting Iowa s entrepreneurial spirit and innovation, job growth and denies credit unions the right to adequately serve their community. This number is further misleading as credit unions must reserve an additional cushion for current borrowers who might need additional or increased access to existing credit facilities. KING: Not at this time. Credit unions play an important role in our nation s financial system. That role is based on credit unions limited mission and charter. Raising the MBL limit could allow credit unions to compete directly against banks, but on an unlevel playing field since banks operate under a different tax and regulatory structure. Q: Do you support the current tax status of credit unions? VILSACK: Yes. KING: Yes. Q: Would you support legislation permitting credit unions to accept additional forms of supplemental capital? VILSACK: Yes. I will take to Congress my experiences of credit unions as vital to the rural economic communities of Iowa s heartland as well as the vibrant cities of Sioux City and Ames. I will fully support legislation and policies that promote economic growth, mitigate systemic risk and encourage private investment. KING: Possibly. Part of credit unions special tax and regulatory treatment is because of the unique structure of credit unions as members-serving-members. Allowing credit unions to build significant outside capital could, depending on how it s done, change this structure and undermine credit unions arguments for continued tax-exempt status.

8 HELPFUL RESOURCES Registering to Vote & Voting in Iowa: The Iowa Secretary of State s office has a user friendly site that can answer any question you have about registering to vote and voting in Iowa. On this site, you can also find your legislative and congressional district, request an absentee ballot and the procedures for early voting. Additional Resources & Information: Iowa Democratic Party: Iowa Republican Party: Iowa Ethics & Campaign Disclosure Board: Project Vote Smart Resources: votesmart.org/elections/voter-registration/ia follow like us facebook.com/iowalittleguy w visit us IowaCreditUnions.com/OneMillionStrong