2012 Wisconsin ESOP Capitol Hill Visit Recap

Transcription

1 2012 Wisconsin ESOP Capitol Hill Visit Recap During the national ESOP Association Annual Conference in Washington, DC, members of our Wisconsin Chapter visited Capitol Hill to meet with members of congress and their staff. During these visits we achieved our main objectives: Educate about ESOPs and the benefits of employee ownership. Discuss the current pro-esop legislation that encourages the creation of ESOPs (H.R.1244). Raise awareness about the possibility of the DOL re-proposing regulations re-defining the definition of fiduciary. Strengthen our relationship and rapport with congressional leaders, so that they know us and our cause. Reinforce our position with congressional members and their key advisors to make our voices heard (particularly in the case where tax law is drafted that negatively impacts ESOPs). This was our fourth annual organized effort as a chapter, and we made a total of four visits, one for each of the house members that represent those ESOP companies in attendance. A brief recap on our visits follows; the individuals who attended either one or multiple Hill visits include: Park Manor, Ltd: Sharon Schultz, Debbe Klatkiewicz, Karren Balzar (WI ESOP Company of the Year) Sentry Equipment: Mike Farrell, Sherri McDermott, Rich Gaffney, Dan Hentges, John Ivans, Marcease Warren Realityworks, Inc.: Timm Boettcher, Mary Stenvig EMCS: Annette Mueller Priority Sign: Lance McTrusty (WI Employee Owner of the Year) IEWC Corp: Lou Ann Brown Enterprise Services: Sandy Paavola, Craig Olinger ESOP Partners: Aaron Juckett, Kevin Rusch Principal Financial: Renee Stadtmueller Congressman Sean Duffy Our chapter met with Congressman Duffy and his Legislative Assistant, Jon Hoelter. Leading the visit was Park Manor, Ltd., the Wisconsin Chapter ESOP Company of the Year. The Congressman was interested in hearing how Park Manor was doing and discussed healthcare and Medicare/Medicaid funding issues with the group. We also discussed current proposed legislation, explained ESOPs, and shared employee ownership culture issues. We asked for the Congressman s support on issues relating to ESOP companies, particularly as tax revenue policies are advanced. We also requested for his support on H.R 1244; he indicated he would review it. Congressman Duffy expressed his interest in visiting Park Manor in Park Falls this upcoming October during employee ownership month. Sharon Schultz, Deb Klatkiewicz, Karren Balzar (Park Manor); Congressman Sean Duffy; Sandy Paavola (ESI) May 2012

2 Congressman Ron Kind Our chapter met with Congressman Kind and his legislative assistant, Rachel Stanley. The Congressman is a strong proponent of ESOP companies, as evidenced by his initial co-sponsorship of HR Serving on the House Ways and Means committee, he is in a key position on tax and finance related legislative issues. Congressman Kind was gracious in his time with us, openly discussing educational issues that impact Realityworks (constituent from Eau Claire) as well as ESOP related issues. We thanked him for his ongoing support, and asked that he discuss H.R with other Wisconsin house members that have yet to sign on to the bill. Congressman James Sensenbrenner Our chapter met with Congressman Sensenbrenner and his legislative assistant, Matt Bisenius. Congressman Sensenbrenner is supportive of ESOPs, and made sure that we knew that we should have as many pro-esop friends as possible on the House Ways and Means committee, as tax revenue policies will be decided there and will likely come to the house floor for vote without the ability to modify the bill. We also discussed our hope to have the Congressman visit an ESOP company when he is back in the state sometime this year. Congresswoman Gwen Moore Since Congresswoman Moore was not available, we met with her Legislative Counsel, Sean Gard. We discussed current ESOP legislation, our concern about tax legislative changes, shared employee ownership statistics and benefits, and asked that he pass along our thanks for the Congresswoman s support for H.R This was our second official contact with Congresswoman Moore s office; we hope to build on our visit and continue dialogue with her. We asked for her to visit one of our ESOP companies when she is back in Wisconsin so she can see the power of employee ownership at work. Conclusion Overall, we were excited about the visits, garnering support and awareness of our cause. The time spent was a critical reminder that we must not take the current legislation benefiting ESOPs for granted. We need to constantly remind our representatives in Washington how great employee ownership is for their constituents, keeping this issue on the top of their minds as debate continues about deficit reduction and tax law changes. It is up to all of us to advocate the issues that impact the ESOP community, and we must all make a commitment to create opportunities to talk about the benefits of ESOPs with our congressional leaders. We hope to continue this effort each year in connection with the Annual ESOP Conference in DC, expanding on the number of congressional members visited. In order to do so, we look for more member companies to join us in Washington next year to talk ESOP with their district s representative. We also want to encourage you to host a congressional visit at your ESOP company. The chapter officers are here to help you with the details! Together we can continue our goal to educate and advocate for ESOPs and legislation that promotes employee ownership! Respectfully submitted, Sandy Paavola, Chair Government Relations Sub-committee The ESOP Association, Wisconsin Chapter Enterprise Services, Inc. spaavola@esi-enterprise.com May 2012

3 Wisconsin Chapter members at The ESOP Association Annual Meeting reception, May 2012 Wisconsin Chapter members at the U.S. Capitol. Shown here in front of a statue of Robert M. LaFollette, noted Congressional member having served in the US House of Representatives and the US Senate; LaFollette was also the 20th governor of Wisconsin. May 2012

4 GOVERNMENT RELATIONS August, 2012 Ryan selected as Vice Presidential nominee Paul Ryan (R WI) has been selected by former Massachusetts governor Mitt Romney to be his running mate for the 2012 Republican ticket for President and Vice President. As many of you know, Paul Ryan has been a strong supporter of ESOPs and is the current Budget Committee Chairman and an influential member of the House Ways and Means Committee. Although he has a pro ESOP stance, he is not expected to sign pro ESOP legislation due to his leadership positions. Update on the Department of Labor Initiative The Department of Labor appears to be continuing on its mission to re-introduce its proposal to mandate appraisers of ESOP stock to be fiduciaries. During testimony last year, one of the criticisms made against the DOL s position was the lack of evidence it presented in its claims of the numerous poor appraisals of ESOP stock. It now seems, based on public knowledge of DOL reviews that the Department is focusing on using the negative impact of the recession in select cases as evidence of faulty appraisals to take back to Congress. In effect, it appears that appraisers should have foreseen the length and depth of the recession in determining stock value prior to or early in the recession, as the DOL is attacking the subsequent drop in stock price to indicate poor appraisals or prohibited transactions. US Senate Bill 1232 In response to the above initiative by the DOL, Senator Kelly Ayotte (R NH) introduced S during This bill amends the Employee Retirement Income and Security Act of 1974 (ERISA) to exclude appraisers of employee stock ownership plans (ESOPs) from the meaning of a fiduciary subject to ERISA. There are currently six senators that have signed on as co-sponsors to this bill. At this time, neither Ron Johnson (R) nor Herb Kohl (D) have signed onto the bill. With the small number of co-sponsors it is important that we contact Senator Johnson and be proactive in reaching out to both Tammy Baldwin and Tommy Thompson as they vie for the open Senate seat this fall. HR 1244 and S 1512 Congratulations to everyone who has participated in the congressional visits and have hosted congressional members or their staffers at your businesses. These opportunities certainly pay dividends as over 100 Senators and Representatives have signed onto their respective bills which promote ESOPs. Just two weeks ago, Tom Petri (R) joined fellow Wisconsites Ron Kind (D), Gwen Moore (D), James Sensenbrenner (R) and Reid Ribble (R) as co-sponsors.

5 Wisconsin Employee Ownership Center Feasibility Study At the state level, a working group has been formed by the office of Senator Dale Schultz (R) to study the idea of establishing a center to support ESOP conversions in Wisconsin. Using the already proven model from the Ohio Employee Ownership Center (OEOC), the group would like to contract with the OEOC to perform the feasibility analysis. The first step in the process is raising the $10,000 feasibility fee to have the OEOC perform their analysis. The OEOC was formed in 1987, has assisted 92 companies representing 15,000 employees with a mission to promote employee ownership in order to broaden capital ownership, retail jobs locally, and increase living standards for working families and their communities. While we largely think of ESOPs at the national level, many states have initiated programs and/or legislation promoting employee ownership. Additionally, the Wisconsin Chapter is spearheading efforts with Governor Scott Walker s office in championing employee ownership and promoting ESOPs. More to follow on both items. We encourage ESOP companies that means YOU to communicate with their congressional representatives. Make a point to tell your company and your ESOP story they don t know how great an ESOP is until they hear from you! It is from legislators and their staff that we hear the #1 way to gain their support is to meet them in your local district. Whether it be an invitation to your company or visit them at their town hall meetings or at other local functions. You can visit your individual representative s website; many have section that lists a mobile calendar or when they will be in the local area. The Wisconsin chapter website has many tools to assist you, including a Quick Guide for Congressional Visit, a current legislation listing, and other resources here on this website. Please let us know your plans for congressional visits or communications, and if you ve already made contacts this year already, let us know that too! Your Wisconsin Chapter government relations committee will be following up with you soon. In the meantime, feel free to contact us. Sandy Paavola, Chair Wendy Yates Kimber Simos Sarah Trovato Enterprise Services, Inc. Wildeck, Inc. Hatco Corporation ESOP Partners LLC spaavola@esi-enterprise.com wyates@wildeck.com ksimos@hatcocorp.com STrovato@ESOPPartners.com

6 Wisconsin Congressional Members DISTRICT REPRESENTATIVE MET ON ESOPS ESOP SUPPORTER? 1 st Paul Ryan (R) Yes Yes 2 nd Tammy Baldwin (D) Yes Yes 3 rd Ron Kind (D) Yes Yes 4 th Gwenn Moore (D) Yes Yes 5 th F.James Sensenbrenner (R) Yes Yes 6 th Tom Petri (R) Yes Yes 7 th Sean Duffy (R) Yes Hopeful 8 th Reid Ribble (R) Yes Yes Senate Senator Herb Kohl (D) retiring Yes? Senate Senator Ron Johnson (R) Yes Hopeful Aug 2012

7 For Immediate Release: September 14, 2012 For More Information: Sandy Paavola, Vice President Government Relations Chair for the Wisconsin Chapter of The ESOP Association The ESOP Association Governor Walker Proclaims October 2012 as Employee Ownership Month September 14, 2012 Governor Scott Walker recognizes October 2012 as Wisconsin s Employee Ownership Month. The proclamation, for employee stock ownership plans (ESOPs), signed by Governor Walker on August 30, states that employee ownership helps Americans share in our nation s growth and prosperity by enabling citizens to accumulate capital stock in the business at which they are employed; that employee ownership has become an incentive for Americans to make the best of their talents and energies at their places of work, strengthening the potential of Wisconsin s businesses; that employee ownership helps create and retain jobs in our state; and that employee owned firms benefit both companies and employees. The ESOP Association is founded on the core belief that employee ownership will improve American competitiveness, increase productivity through greater employee participation, and strengthen our free enterprise economy. There are approximately 179 ESOP companies in Wisconsin, employing nearly 100,000 people. ###

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9 GOVERNMENT RELATIONS November, 2012 Wisconsin Federal results At the federal level, Wisconsin returns seven incumbent congressional representatives and one newcomer. Mark Pocan (D) from the 2 nd Congressional District fills the seat vacated by newly elected Senator Tammy Baldwin (D). As we currently stand, six of the eight congressional members have voiced their support for ESOPs with Sean Duffy (R 7 th ) a hopeful and newly elected Congressmen Pocan yet to be seen. We will certainly focus on getting an appointment with his office during our trip to Washington D.C. in May. Wisconsin House of Representative Members as of January 3, 2013 District Representative Met on ESOPs ESOP Supporter 1st Paul Ryan ( R ) Yes Yes 2nd Mark Pocan ( D ) No? 3rd Ron Kind ( D ) Yes Yes 4th Gwenn Moore ( D ) Yes Yes 5th F. James Sensenbrenner ( R ) Yes Yes 6th Tom Petri ( R ) Yes Yes 7th Sean Duffy ( R ) Yes Hopeful 8th Reid Ribble ( R ) Yes Yes Newly elected Senator Tammy Baldwin (D) will join Ron Johnson (R) in the Senate. Wisconsin ESOP chapter members have previously met with both of these Senators and while Senator Baldwin has committed to ESOP support Senator Johnson is still in the hopeful category. Wisconsin State results District Representative Met on ESOPs ESOP Supporter Senate Senator Ron Johnson ( R ) Yes Hopeful Senate Senator Tammy Baldwin ( D ) Yes Yes While the Wisconsin ESOP Chapter has not yet focused on educating state legislators and the current administration on the many benefits of ESOPs, this will be a focal point during the upcoming year. Other states throughout the Midwest have either passed legislation or are currently being educated on ESOPs and we intend to do the same here in Wisconsin. After the

10 latest elections, the Republican Party will hold a majority in both houses with Republican Governor Scott Walker and Lt. Governor Rebecca Kleefisch. Wisconsin State Assembly and Senate Assembly Senate Republican 60 Republican 18 Democrat 39 Democrat 15 Additionally, with the re-election of President Obama, it is unlikely that any personnel change will occur at the Department of Labor. Now more than ever we will need to communicate with our representatives to help guard against the DOL s negative attacks on ESOPs as it prepares to re-introduce its proposal to mandate appraisers of ESOP stock to be fiduciaries. We will continue to post updates regarding the DOL as the department is expected to announce its agenda for the upcoming year before month s end. We encourage ESOP companies that means YOU to communicate with their congressional representatives. Make a point to tell your company and your ESOP story they don t know how great an ESOP is until they hear from you! It is from legislators and their staff that we hear the #1 way to gain their support is to meet them in your local district. Whether it be an invitation to your company or visit them at their town hall meetings or at other local functions. You can visit your individual representative s website; many have section that lists a mobile calendar or when they will be in the local area. The Wisconsin chapter website has many tools to assist you, including a Quick Guide for Congressional Visit, a current legislation listing, and other resources here on this website. Please let us know your plans for congressional visits or communications, and if you ve already made contacts this year already, let us know that too! Your Wisconsin Chapter government relations committee will be following up with you soon. In the meantime, feel free to contact us. Feel free to contact any of the Wisconsin Chapter government relations committee should you need assistance with congressional visits or communications. Sandy Paavola, Chair Wendy Yates Kimber Simos Sarah Trovato Enterprise Services, Inc. Wildeck, Inc. Hatco Corporation ESOP Partners LLC spaavola@esi-enterprise.com wyates@wildeck.com ksimos@hatcocorp.com STrovato@ESOPPartners.com