U.S. Bancorp PAC Program

Transcription

1 2015 U.S. Bancorp PAC Program 2015 Annual Report U.S. Bancorp Political Participation Program PAC U.S. Bancorp Federal PAC usbank.com

2 Dear U.S. Bancorp PAC Contributors, Thank you for your support of the U.S. Bancorp PAC Program. We are pleased to share our 2015 Annual Report with you. We publish this report to highlight the importance the public policy process has on all of our lines of business and to provide information on the current legislative and regulatory issues driving the agenda in Washington, D.C. and across the states. This is our third annual report, and we hope it provides useful information on the U.S. Bancorp PACs and what makes us successful. Your support of the PAC Program is critical to accomplishing our goal of helping elect leaders who share our public policy objectives. As a benefit to you, we continued our quarterly Policy and Politics conference calls, which featured U.S. Chamber of Commerce Political Director Rob Engstrom, Rep. Joe Crowley (D-NY), Rep. Ed Royce (R-CA) and a 2016 election preview with the U.S. Bancorp Government Relations team. Our Capital Club members (those who contribute $1,000 or more annually) received additional benefits for their commitments to the PACs. We hope that you enjoyed these opportunities to connect, and we look forward to expanding them in In January, our two PACs started with a balance of $285,000. Over the course of the year, eligible U.S. Bank employees contributed an additional $470,000. Throughout 2015, the PACs contributed $450,000 to federal and state candidates, party committees, leadership PACs and trade association PACs that understand and support the financial services industry. We are optimistic the 2016 election year will provide a great opportunity to educate eligible employees on the importance of our PAC program. We will be conducting our 2016 annual solicitation in May and hope to expand our outreach and increase participation. Political involvement is integral to the success of U.S. Bank, and employees like you make this possible by staying informed on public policy issues, assisting with outreach to our lawmakers and contributing to the PAC Program. The extent to which we can achieve our public policy goals depends on our ability to assist in the election of lawmakers who share those goals. On behalf of the U.S. Bancorp PAC Program, I would like to personally thank you for your generous support and leadership. Please let us know if you have suggestions or insights into how we can continue to make our PACs successful and provide value to you as a PAC member. Sincerely, Kevin MacMillan Managing Director, Federal Government Relations Treasurer, U.S. Bancorp Federal PAC Treasurer, U.S. Bancorp Political Participation Program PAC U.S. Bancorp PAC Annual Report

3 2015 U.S. Bancorp Federal PAC Board of Directors Christine Hobrough (Chair) Metropolitan Region Manager Twin Cities Pat Burchill Regional President Rapid City, South Dakota Paul DiPaola Regional President New Mexico Sean Foley Regional President Southern California Jim Grigsby Division President Idaho/Washington Division Jeff Hastings Former Market President Central Ohio Bill Jones Community Banking Division Manager East Central and Lower Midwest Mark Jorgenson Group Head Community Banking Mike Nickels Regional President Eastern and Northwest Wisconsin Kareina Westlund Metropolitan Regional Manager Colorado and Utah U.S. Bancorp Government Relations Team Deborah Burke* Senior Vice President Government and Community Relations Kevin MacMillan Managing Director Federal Government Relations Dave Swartley Managing Director State Government Relations Stacie Holden Vice President State Government Relations Jim Nikolai Vice President State Government Relations Ashley Winfree PAC Director and Communications Specialist Rob Griner Vice President Federal Government Relations *PPP PAC Administrator U.S. Bancorp PAC Annual Report

4 How the U.S. Bancorp PAC Program, government and you are connected. GOVERNMENT FEDERAL AND STATE BILLS Tens of thousands of bills introduced at federal and state level each year. NOT SO GOOD VS. GOOD FOR US! Policies can have positive or negative impact on the operations of our company. SMALL POLICY CHANGES = + BIG IMPACT POLITICAL ACTION COMMITTEE SINGLE UNITED CAN YOU HEAR US NOW? The U.S. Bancorp PAC Program gives our employees a unified voice in the political process. We pool voluntary contributions to support candidates and committees who understand our business. The U.S. Bancorp PACs support BOTH parties. Our voice is louder with your valuable support. U.S. BANK AND YOU GOVERNMENT DECISIONS AFFECT US Bank regulation Tax policy Cyber security Housing finance Payments Every U.S. Bank business line is affected by laws and policies made by federal and state governments. We can build the U.S. Bancorp PAC Program together to support our company and its long-term success U.S. Bancorp PAC Annual Report

5 PAC Member Benefits The goal of the U.S. Bancorp PAC Program is to provide value to contributors by communicating with them on political and legislative activities in Washington, D.C. and the states. Members receive benefits including: U.S. Bancorp PAC Program Annual Report Quarterly Policy and Politics Calls speakers included: Washington political update with Rob Engstrom, Senior Vice President and National Political Director at the U.S. Chamber of Commerce Legislative overview and discussion of top Congressional issues with Congressman Joe Crowley (D-NY) Washington update and legislative overview with Congressman Ed Royce (R-CA) 2016 election outlook and policy update with the U.S. Bancorp Government Relations team Capitol Club The U.S. Bancorp PAC Program has a recognition program for members who contribute $1,000 or more annually. Capitol Club members receive the following benefits in addition to general membership benefits: Extra Policy and Politics calls and communications, such as The Cook Political Report Annual gift Opportunity for attendance at political events Richard Davis with U.S. Congressman Erik Paulsen (R-MN) U.S. Bancorp PAC Annual Report

6 Thank you to the 2015 U.S. Bancorp PAC Program Capitol Club Members Todd Ackerman Douglas Fink Jeff Lara Kathy Rogers Rick Aneshansel Sean Foley Tim Leach Carolyn Rothzen Mary J. Baker Roger Foy Joe Ledbetter Mark Runkel Christopher Baucom David Friedman Chris Lenhart Hassan Salem Thomas Bergstrom Ryan Gage Scott Lockard Steve Saloutos John Besse Cheryl Garcia Judi Long Matt Sargent Rick Bollin Hans Getty Thomas Lueke Brian Schwallie Wayne Brander Carol Gilstrap Kevin MacMillan Brett Scribner Pat Burchill Leslie Godridge Timothy Maloney Michael Shelley Deb Burke Jen Goldstein Charlotte Manison Steve Sherline Oliver Burns Shanna Graykowski Barry Martin Dale Smith Bryan Calder Jim Grigsby Mary Martuscelli Beth Solomon Ross Carey Rob Griner David S. Miller Mark Sparano Jennie Carlson Gary Guthrie Joe M. Miller Jeffrey Spetrino Diane Carney David Gutzke Kevin D. Miller Daniel Spiller Steve Caves Tim Hennessy Terry Mills John Stern Andy Cecere David Heyson Steve J. Moore Kent Stone Jim Chosy Christopher Higgins Mic Mount Lee Strom Cheri Colbus Christine Hobrough Sally Mullen Dave Swartley Tony Cracchiolo Bill Hoffman Joe Murphy Jonathan Tholen Debra Cyborski Brian Hogan Shanks Muthuswami Phil Trier Erik Daniels Joseph Hord Dee O Dell Jacob Trimble Seth Daniels Julie Huston Michael Ott Glen Ulrich Richard Davis Elliot Jaffee Don Pafford Darren Van t Hof Paul Dipaola Thomas James Bill Parker Judie Verb Stacey Dodson Ann Marie Janke Dick Payne Jeff von Gillern Terry Dolan Bill Jones J.P. Perfili Tony Vuoto Michael Donohue Mark Jordahl Samuel Philbrick Mike J. Ward Ed Dwyer Deborah Julian Matt Philpott Ward Wilson Linda Elkin Eve Kaplan Scott Powell Jason Witty Jack Ellis Mike Katz Gary Quinn David Wombwell John Elmore Gregory Kaye Kate Quinn Clark Wood Bob Erickson Jeff Kerr Kenneth Rector Michael Yeatts Steve Erwin Carolyn Krall Ron Richter Roy Young Bill Fanter John Lam Dana Ripley Joe Zappa Jeannie Fichtel John Lambert Thomas Roberts Tom Zirbs U.S. Bancorp PAC Annual Report

7 2015 Federal Legislative and Regulatory Year in Review Bank Regulation Banking regulation moved erratically last year with multiple bills making minor changes to the regulatory landscape passing the House and Senate while other larger-scale changes moved forward at a slower pace. A provision repealing the requirement that banks send privacy notices annually to all customers was passed and now these notices are only required for new customers or if there is a change in a bank s privacy policies. This will save U.S. Bank nearly $1 million annually. Efforts to include significant changes to the Systemically Important Financial Institution (SIFI) designation in must pass legislation funding the government at the end of the year fell short as members of the Senate were unwilling to agree to a $500 billion asset threshold. We expect Congress to consider additional changes to the Dodd-Frank Act in 2016 as the Chairman of the House Financial Services Committee is planning a comprehensive legislative package for this year. Meanwhile, regulators remained active, issuing regulations on mortgage lending, auto finance, capital requirements and others. A rule by the Department of Education to regulate the relationship between schools and banks was finalized and will be implemented later this year. We expect 2016 to be very active on the regulatory front with all agencies seeking to finalize rules before the end of the Obama Administration. Regulation of payday lending, overdrafts and investment advisors are all expected before the end of Payments Congress continues to look closely at payment security issues as high profile data breaches occur. Congressional committees have held hearings and considered legislation to establish data standards, breach notification standards and liability for a breach. We expect the issue to gain traction in In this environment, other industries continue to argue the interchange is too high and continue to push for lowering debit interchange and regulating credit interchange. Cybersecurity Major cybersecurity legislation was enacted into law in 2015 as a result of U.S. Bank-led efforts to coordinate the financial services engagement with the government on cybersecurity issues. U.S. Bank was key in working with trade associations, legislators and regulators to craft cohesive policies relating to cybersecurity. In December, Congress passed and the President signed legislation, which ensured stronger cybersecurity standards, infrastructure and protocols to improve the coordination of a response to cyberattacks. In 2016, the cybersecurity focus will be on implementation of the new cybersecurity law and on legislation to address data breach standards and liability for such events. Tax and Budget Policy Late last year, Congress reached an agreement to fund the government through 2016, eliminating any risk of a government shutdown. Congress also passed a package of tax extenders bills that extended several expiring tax credits, including the New Markets Tax Credit and the Production Tax Credit, for five years. On the broader tax policy front, comprehensive reform faltered in We expect reform will not proceed far in 2016 given the pending Congressional and Presidential elections. Congress is expected to focus on international tax issues in 2016 and on finalizing trade agreements U.S. Bancorp PAC Annual Report

8 2015 State Legislative Issues In most states, 2015 was a budget year, which meant a significant amount of time was spent debating revenue and tax issues in both the public and private sectors. Although the economy continued to improve, state legislators maintained focus on a variety of consumer protection issues that are of daily relevance and importance to their constituents, including data security and privacy, minimum wage, and earned sick leave. Melissa Borino and Bill Bertha with U.S. House Speaker Paul Ryan (R-WI) Revenue and Tax Despite experiencing economic growth and lower unemployment in 2015, many states struggled to balance their budgets amid fiscal challenges and declining revenues. Indeed, a handful of states, including Pennsylvania and Wisconsin, missed their budget deadlines, and Illinois has yet to pass a budget. Many legislatures felt pressure to increase spending on programs like education and transportation. However, the 2014 midterm elections resulted in increased Republican majorities in statehouses around the country who had little appetite for increasing taxes to pay for these programs. States looked at various ways of generating revenue without increasing taxes, such as eliminating tax credits and deductions and broadening the sales tax base to include services. Many of these same challenges will continue to exist in 2016 due to slow economic growth. Public Sector Banking State treasurers worked with the banking industry to identify ways to revise public funds requirements to meet the new risk environment and right-size collateral requirements for public funds. One such way was to expand the types of collateral a public depository may pledge for state deposits to include letters of credit from their Federal Home Loan Bank (California). Other legislatures took a more holistic approach by modernizing their pooled collateral statutes (Ohio, Washington). In North Dakota, legislation was passed giving political subdivisions more flexibility when choosing investment vehicles. These changes will result in significant costs savings and revenue opportunities for banks and other public depositories. In contrast, the banking industry faced challenges from advocacy groups attempting to influence the activity of financial institutions that serve as public depositories. A number of cities across the country introduced Responsible Banking Ordinances (RBOs) in an effort to require financial institutions to submit data related to foreclosures, community investments and other criteria when bidding to become a public depository (Chicago). Despite a federal court decision that struck down New York City s RBO, advocacy groups will likely continue to pursue these ordinances in U.S. Bancorp PAC Annual Report

9 2015 State Legislative Issues, cont. Data Security and Card Issues In the aftermath of a number of high-profile breaches by major retailers, state legislators continue to scrutinize data security and card issues (Illinois). Organized labor continued to target payroll card programs (Iowa, Washington). While interchange continued to be a contentious issue (Colorado), the focus largely shifted to state legislatures (California) and attorney generals debating mandating EMV and chip technology; measures opposed by the banking industry. In the absence of a federal law regarding data breach notification, as well as evolving technology, we will continue to see a focus on data privacy and security concerns at the state level for the foreseeable future. Employment Issues During the last few years, a number of states and a growing number of cities have passed ordinances aimed at human resources policies. State and local governments have attempted to establish employee wage and leave requirements, including minimum wage, earned sick and safe time, and fair scheduling. Typically, these policies apply to all companies, not just financial institutions, which is especially burdensome for a national employer to comply with similar but not identical laws. Often, these measures do not take into account the effect on business, applicability outside of urban areas or other economic impacts. In 2015, we saw attempts at regulating employer-employee relations at the state level in California, Minnesota, Oregon and Washington, and at the municipal level in Chicago, St. Louis, Kansas City and Minneapolis. As many attempts have been stymied before state legislatures, advocacy groups have found the strongest support at the municipal level. We expect to see the most activity at the local level in U.S. Bancorp PAC Annual Report

10 U.S. Bancorp Federal PAC Contributions January 1, December 31, 2015 The U.S. Bancorp Federal Political Action Committee makes contributions to federal candidates, provided those candidates are not state or local officeholders at the time of their candidacy. The Federal PAC may also make contributions to national party committees and certain other federal political committees, like national trade association PACs. U.S. HOUSE OF REPRESENTATIVES Andy Barr R KY $3,000 Joyce Beatty D OH $2,500 Xavier Becerra D CA $1,000 John Boehner R OH $5,000 John Carney D DE $2,500 Jason Chaffetz R UT $1,000 Emanuel Cleaver D MO $2,500 Mike Coffman R CO $1,000 Joe Crowley D NY $5,000 John Delaney D MD $2,000 Bob Dold R IL $1,000 Sean Duffy R WI $4,500 Tom Emmer R MN $3,000 Stephen Fincher R TN $1,000 Scott Garrett R NJ $2,000 Denny Heck D WA $4,000 Jeb Hensarling R TX $5,000 French Hill R AR $2,000 Jim Himes D CT $4,000 Steny Hoyer D MD $5,000 Randy Hultgren R IL $1,000 Robert Hurt R VA $2,000 Lynn Jenkins R KS $500 Dan Kildee D MI $1,000 Derek Kilmer D WA $1,000 Raul Labrador R ID $1,000 Mia Love R UT $1,000 Blaine Luetkemeyer R MO $5,000 Carolyn Maloney D NY $3,500 Patrick McHenry R NC $5,000 Gregory Meeks D NY $3,000 Luke Messer R IN $1,000 Mick Mulvaney R SC $1,000 Patrick Murphy D FL $2,500 Richard Neal D MA $2,000 Randy Neugebauer R TX $1,000 Devin Nunes R CA $2,000 Erik Paulsen R MN $2,500 Ed Perlmutter D CO $5,000 Bill Posey R FL $1,000 Peter Roskam R IL $1,000 Dennis Ross R FL $2,000 Keith Rothfus R PA $1,000 Ed Royce R CA $2,000 Paul Ryan R WI $5,000 Steve Scalise R LA $5,000 David Scott D GA $3,500 Pete Sessions R TX $5,000 Terri Sewell D AL $4,000 Kyrsten Sinema D AZ $2,000 Adrian Smith R NE $1,000 Jason Smith R MO $1,000 Chris Stewart R UT $1,000 Steve Stivers R OH $1,000 Marlin Stutzman R IN $2,000 Pat Tiberi R OH $5,000 Scott Tipton R CO $2,000 Juan Vargas D CA $3,000 Ann Wagner R MO $2,000 Greg Walden R OR $1,000 Tim Walz D MN $1,000 Debbie Wasserman Schultz D FL $2,500 Lynn Westmoreland R GA $1,000 TOTAL $153, U.S. Bancorp PAC Annual Report

11 U.S. Bancorp Federal PAC Contributions, cont. U.S. SENATE Michael Bennet D CO $5,500 Roy Blunt R MO $5,500 Richard Burr R NC $1,000 Tom Carper D DE $1,000 Mike Crapo R ID $5,000 Joe Donnelly D IN $3,500 Dianne Feinstein D CA $1,000 Deb Fischer R NE $1,500 Cory Gardner R CO $1,000 Heidi Heitkamp D ND $1,000 Dean Heller R NV $2,500 John Hoeven R ND $1,000 Ron Johnson R WI $1,000 Mark Kirk R IL $3,000 Amy Klobuchar D MN $2,500 Jerry Moran R KS $1,000 Chris Murphy D CT $1,000 Patty Murray D WA $2,000 Rand Paul R KY $1,000 Gary Peters D MI $1,000 Rob Portman R OH $4,500 Jim Risch R ID $1,000 Mike Rounds R SD $1,000 Ben Sasse R NE $1,000 Chuck Schumer D NY $6,000 Tim Scott R SC $1,000 Richard Shelby R AL $7,000 Jon Tester D MT $3,500 John Thune R SD $6,500 Thom Tillis R NC $1,000 Pat Toomey R PA $5,000 TOTAL $79,500 NATIONAL TRADE ASSOCIATION PACS American Bankers Association PAC $5,000 Commercial Real Estate Finance Council PAC $2,500 Consumer Bankers Association PAC $5,000 Equipment Leasing and Finance Association PAC $2,500 Financial Services Roundtable PAC $5,000 Investment Company Institute PAC $2,500 Mortgage Bankers Association PAC $2,500 National Association of Government Guaranteed Lenders PAC $2,500 Securities Industry and Financial Markets Association PAC $2,500 TOTAL $30, U.S. Bancorp PAC Annual Report

12 U.S. Bancorp Political Participation Program PAC Contributions January 1, December 31, 2015 The U.S. Bancorp Political Participation Program PAC makes contributions to state and local candidates, political parties and PACs. The PPP PAC may also make contributions to federal candidates, national party committees and other federal PACs, including leadership PACs. Leadership PACs are PACs established by former and current members of Congress. Funds from a leadership PAC may not be contributed to that official s own campaign but can be used for contributions to other candidates and committees and various other expenses. NATIONAL PARTY COMMITTEES, LEADERSHIP PACS AND OTHER FEDERAL PACS AMERIPAC: The Fund for a Greater America Rep. Steny Hoyer D MD $5,000 Bluegrass Committee Sen. Mitch McConnell R KY $1,000 Building Relationships in Diverse Geographic Environments PAC (BRIDGE PAC) Rep. Jim Clyburn D SC $5,000 Building Leadership & Inspiring New Enterprise PAC Rep. Blaine Luetkemeyer R MO $5,000 Citizens for Prosperity in America Today PAC Sen. Pat Toomey R PA $1,500 Common Sense Colorado Sen. Michael Bennet D CO $5,000 Dakota Prairie PAC Sen. Heidi Heitkamp D ND $5,000 Defend America PAC Sen. Richard Shelby R AL $5,000 Democrats Win Seats (DWS PAC) Rep. Debbie Wasserman Schultz D FL $5,000 Democratic Senatorial Campaign Committee (DSCC) $15,000 Freedom Fund Sen. Mike Crapo R ID $5,000 Heartland Values PAC Sen. John Thune R SD $5,000 HellerHighWater PAC Sen. Dean Heller R NV $2,500 Hoosiers First PAC Sen. Joe Donnelly D IN $2,500 House Conservatives Fund $5,000 ICE PAC Rep. Erik Paulsen R MN $1,000 (continued next page) U.S. Bancorp PAC Annual Report

13 U.S. Bancorp Political Participation Program PAC Contributions, cont. NATIONAL PARTY COMMITTEES, LEADERSHIP PACS AND OTHER FEDERAL PACS Jobs & Innovation Matter PAC (JIM PAC) Rep. Jim Himes D CT $2,500 Jobs, Economy & Budget Fund (JebFund) Rep. Jeb Hensarling R TX $5,000 Jobs, Opportunities & Education PAC (JOE-PAC) Rep. Joe Crowley D NY $5,000 Majority Committee PAC MC PAC Rep. Kevin McCarthy R CA $5,000 Moderate Democrats PAC $5,000 National Republican Congressional Committee (NRCC) $15,000 National Republican Senatorial Committee (NRSC) $15,000 New Democrat Coalition PAC $5,000 Orrin PAC Sen. Orrin Hatch R UT $1,000 Prosperity Action, Inc. Rep. Paul Ryan R WI $5,000 Rock City PAC Sen. Bob Corker R TN $2,500 The Freedom Project Rep. John Boehner R OH $5,000 The Madison PAC Rep. Richard Neal D MA $2,500 Treasure State PAC Sen. Jon Tester D MT $5,000 TOTAL $152,000 State Trade Association PACs $34,000 Contributions to Other State and Federal Candidates and Committees $5,350 Due to regulatory constraints, Government Relations staff is not permitted to discuss PPP PAC contributions, either past or future. Contributions made at the state and local levels are made solely at the discretion of the Government Relations staff. Contributions are reported to the FEC and state campaign finance agencies and disclosed in the U.S. Bancorp Semi-Annual Political Contribution Report posted to the U.S. Bancorp investor website U.S. Bancorp PAC Annual Report

14 About the U.S. Bancorp PACs What is a PAC and why does U.S. Bancorp need one? A political action committee (PAC) is a group of individuals with a common purpose who join together to financially support political candidates. U.S. Bancorp sponsors two nonpartisan political action committees the U.S. Bancorp Political Participation Program PAC (PPP PAC) and the U.S. Bancorp Federal PAC (Federal PAC) that provide an opportunity for employees to participate in the political process. Through the PACs, we stay a step ahead and help support candidates who agree with us on critical issues affecting our company, employees and shareholders, as well as the financial services industry. How are PAC funds used? PAC funds are used to support candidates running for elected office, political party committees and other PACs that are supportive of the financial services sector. Our PACs do not make any contributions in support of or opposition to initiatives or referenda, nor do they contribute to independent expenditure committees organized under Section 527 of the Internal Revenue Code or special interest lobbying groups organized under Section 501(c)(4) of the Internal Revenue Code, even when legally permissible. The U.S. Bancorp Federal Political Action Committee makes contributions to federal candidates, provided those candidates are not state or local officeholders at the time of their candidacy. The Federal PAC may also make contributions to certain other federal political committees, including national trade association PACs, leadership PACs and national party committees. The U.S. Bancorp Political Participation Program Political Action Committee makes contributions to state and local candidates, political parties and PACs. The PPP PAC may also make contributions to federal candidates, national party committees and other federal PACs. Why does U.S. Bancorp have two PACs? U.S. Bancorp has two PACs in order to accommodate employees who are subject to various pay-to-play regulations. Generally, an employee s contributions may fund either PAC unless he or she is a Covered Person subject to regulations that restrict contributions to state or local candidates. An employee is a Covered Person if he or she is subject to: (1) MSRB Rule G-37 relating to municipal securities business; (2) SEC Rule 206(4)-5 relating to investment advisory business; or (3) CFTC Rule relating to derivatives business. Contributions from Covered Persons can only fund the Federal PAC. Government Relations works with Compliance to ensure employees contributions are directed to the appropriate PAC. Who manages and has oversight of the U.S. Bancorp PAC Program? The U.S. Bancorp Government Relations Department is responsible for the day-to-day management of both PACs. These officers are responsible for the solicitation of contributions to and the disbursement of funds from the PACs consistent with state and federal law, the PPP PAC Bylaws and the Federal PAC Bylaws. The Federal PAC is governed by the Federal PAC Board of Directors, made up of no fewer than three U.S. Bank leaders. The PPP PAC is administered by the head of Government Relations. Additionally, the Community Reinvestment and Public Policy Committee of the U.S. Bancorp Board of Directors semiannually reviews the contribution activity of the PACs for the previous period. The U.S. Bancorp PAC Program also undergoes periodic evaluation by U.S. Bancorp Corporate Audit Services U.S. Bancorp PAC Annual Report

15 About the U.S. Bancorp PACs, cont. Wayne Hirsch with U.S. Senator Jon Tester (D-MT) May I request that a PAC make a contribution to a certain candidate or committee? To ensure compliance with state and federal regulations, it is the policy of Government Relations to accept only contribution requests for federal candidates. If you are a member of either PAC, you may request that the Federal PAC contribute to a candidate for federal office by completing a contribution request form (available on the Government Relations intranet page) detailing the amount and nature of the contribution request. All Federal PAC contributions must have Federal PAC Board approval. Due to federal regulations, employees cannot make recommendations for contributions at the state or local level. Contributions to candidates, officials, political parties, or other political committees at the state or local level are made solely at the discretion of the Government Relations staff. What factors are considered when making a contribution? Candidates and committees are evaluated on a case-by-case basis by the Government Relations team, and in the case of contributions from the Federal PAC, also by the Federal PAC Board. A number of criteria are considered when making contribution decisions, including: The organization s or candidate s understanding of and support for the banking and financial services industry and the issues affecting the industry The presence of U.S. Bancorp employees, branches and facilities in the candidate s district or state The candidate s demonstrated leadership or potential for leadership The candidate s committee assignments and seniority within Congress or state government The likelihood of the candidate s election success The candidate s need for financial assistance Recommendations by U.S. Bancorp PAC Program members Questions about the U.S. Bancorp PAC Program? Contact Ashley Winfree at ashley.winfree@usbank.com U.S. Bancorp PAC Annual Report

16 Participation in the U.S. Bancorp PAC Program is completely voluntary. You have the right to refuse to contribute without reprisal. Any guidelines for contributing are merely suggestions. You may contribute more or less than the guidelines suggest or nothing at all and will not be favored or disadvantaged by reason of the amount of your contribution or your decision not to contribute. Contributions to the U.S. Bancorp Political Participation Program PAC will be used in connection with federal, state and local elections and are subject to the prohibitions and limitations of the Federal Election Campaign Act and applicable state and local laws. The U.S. Bancorp Federal PAC does not contribute to candidates for state or local office or those holding state or local office at the time of their candidacy. You must be a U.S. citizen or Permanent Resident Alien (i.e., Green Card holder residing in the U.S.) to be solicited or make a contribution to the PACs. Contributions to the PACs are not deductible for federal income tax purposes. Member FDIC U.S. Bancorp. All rights reserved U.S. BANCORP PAC ANNUAL REPORT