Bill > HB5240

This bill prohibits credit unions in Michigan from denying, restricting, or canceling financial services to agricultural producers based on their greenhouse gas emissions, use of fossil fuel-derived fertilizer, or use of fossil fuel-powered machinery. If a credit union with an environmental, social, and governance (ESG) commitment takes such an action, it is presumed to be discriminatory, unless the credit union can provide clear and convincing evidence that the decision was based solely on a documented ordinary business purpose unrelated to environmental goals. The bill defines an "agriculture producer" as a person who owns or operates a farm, and "financial service" broadly includes lending, funds transfers, fiduciary activities, trading, and deposit taking. An "environmental, social, and governance commitment" can be demonstrated through various means such as advertising, public statements, participation in environmental initiatives, or commitments to reduce greenhouse gas emissions. Credit unions found in violation of this provision can be subject to a civil fine of up to $10,000, and the bill modifies existing law to accommodate these new restrictions, allowing the commissioner to assess these specific fines against domestic credit unions that violate the new section.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5240