Governor Signs Historic ILC Legislation
Mary Lou Santovec
On March 18 at the Milwaukee Bar Association, Governor Jim Doyle signed into law Act 112, advanced by Community Bankers of Wisconsin to close the ILC branching loophole. CBW introduced this legislation to prohibit any bank and specifically industrial loan companies (ILCs) from establishing a banking office within 1.5 miles of property owned by the same corporation and used for commercial activity.
Lead sponsors were Sen. Jim Sullivan (D-Wauwatosa) and Rep. Roger Roth (R-Appleton). The bill passed the Assembly and Senate, with support from CBW and many bankers from across the state.
Act 112 ensures a competitive playing field for Wisconsin banks, which along with thrifts and their holding companies, are restricted by federal law from engaging in commercial retail activities that are not financial in nature. Banks for example do not have the opportunity to offer grocery, pharmacy, automotive or other retail products and services to their customers. ILCs, however, can be owned by commercial firms thereby allowing for competitive opportunities not available to Wisconsin banks and thrifts.
Note that the new law does not impact the ability of Wisconsin banks to open bank offices in grocery stores and other retail establishments since these enterprises are not owned or controlled by the bank.
Published by Community Bankers of Wisconsin
through Client Communications
EDITOR AND PUBLISHER: Doris Green
CONTRIBUTOR: Mary Lou Santovec
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Jeffrey Mueller, Wisconsin State Bank, Random Lake
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