Bill > HB5239

This bill amends the Savings Bank Act to prohibit savings 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. Specifically, if a savings bank has made an environmental, social, and governance (ESG) commitment—which could include advertising, public statements, or participation in environmental initiatives—and then denies services to an agricultural producer, there is a presumption that the action violates the law. The bank can rebut this presumption by providing clear and convincing evidence that the service denial was based solely on a documented ordinary business purpose unrelated to environmental goals. An agricultural producer is defined as a person who owns or operates a farm, and financial services include lending, funds transfers, fiduciary activities, trading, and deposit taking. The bill establishes a potential civil fine of up to $10,000 for savings banks that violate this provision, with the intent of preventing financial institutions from using ESG commitments to potentially discriminate against or limit services to agricultural producers based on environmental criteria.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5239