Bill > HB5238

This bill prohibits banks 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 bank with an environmental, social, and governance (ESG) commitment takes such action, it is presumed to be discriminatory unless the bank can provide clear and convincing evidence that the decision was based solely on a legitimate business purpose unrelated to environmental goals. The bill defines an "agriculture producer" as someone who owns or operates a farm and "financial service" as any financial product including lending, fund transfers, and deposit taking. An "ESG commitment" is broadly defined as any public or private commitment to reduce emissions, achieve environmental standards beyond legal requirements, or participate in initiatives that encourage environmental, social, or political goals. Banks found in violation of this prohibition can be subject to a civil fine of up to $10,000. The legislation appears designed to protect agricultural businesses from potential financial service restrictions based on environmental policy considerations.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5238