Read the full stored bill text
HB-5550, As Passed House, June 25, 2026
WAM H04954'25_HB5550_APH_1 kdhv57
HOUSE BILL NO. 5550
A bill to amend 1988 PA 161, entitled
"Consumer financial services act,"
by amending section 10g (MCL 487.2060g), as amended by 2006 PA 252.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 10g. (1) If, in the opinion of the commissioner, a person 1
has engaged in fraud or money laundering, the commissioner may 2
serve upon that the person with a written notice of intention to 3
prohibit that person from being employed by, an agent of, or 4
control person of a licensee under this act or a licensee or 5
February 19, 2026, Introduced by Reps. Schuette, Tisdel, Lightner, Martin, B. Carter and Snyder
and referred to Committee on Finance.
2
WAM H04954'25_HB5550_APH_1 kdhv57
registrant under a financial licensing act. 1
(2) A notice issued under subsection (1) shall must contain a 2
statement of the facts supporting the prohibition and, except as 3
provided under subsection (7), set a hearing to be held not more 4
than 60 days after the date of the notice. If the person does not 5
appear at the hearing, he or she the person is considered to have 6
consented to the issuance of an order in accordance with the 7
notice. 8
(3) If, after a hearing held under subsection (2), the 9
commissioner finds that any of the grounds specified in the notice 10
have been established, the commissioner may issue an order of 11
suspension or prohibition from being a licensee or registrant or 12
from being employed by, an agent of, or control person of any 13
licensee under this act or a licensee or registrant under a 14
financial licensing act. 15
(4) An order issued under subsection (2) or (3) is effective 16
upon service upon the person. on the date that the person is served 17
with the order. The commissioner shall also serve a copy of the 18
order upon on the licensee of which to whom the person is an 19
employee, agent, or control person. The order remains in effect 20
effective until it is stayed, modified, terminated, or set aside by 21
the commissioner or a reviewing court. 22
(5) After 5 years from the date of an order issued under 23
subsection (2) or (3), the person subject to the order may apply to 24
the commissioner to terminate the order. 25
(6) If the commissioner considers that a person served a 26
notice under subsection (1) poses an imminent threat of financial 27
loss to applicants for loans, mortgage loans, secondary mortgage 28
loans, credit card arrangements, or installment sales credit, 29
3
WAM H04954'25_HB5550_APH_1 kdhv57
borrowers on loans, obligors on installment sale contracts, loan 1
servicing customers, purchasers of mortgage loans or interests in 2
mortgage loans, or purchasers of services for money transmission, 3
services as defined in section 2 of the money transmission services 4
act, the commissioner may serve upon the person with an order of 5
suspension from being employed by, an agent of, or control person 6
of any licensee. The suspension is effective on the date the order 7
is issued and, unless stayed by a court, remains in effect pending 8
the completion of a review as provided under this section and the 9
commissioner has dismissed the charges specified in the order. 10
(7) Unless otherwise agreed to by the commissioner and the 11
person served with an order issued under subsection (6), the 12
hearing required under subsection (2) to review the suspension 13
shall must be held not earlier than 5 days or later than 20 days 14
after the date of the notice. 15
(8) If a person is convicted of a crime involving fraud, 16
dishonesty, money laundering, or breach of trust, the commissioner 17
may issue an order suspending or prohibiting that person from being 18
a licensee and from being employed by, an agent of, or control 19
person of any licensee under this act or a licensee or registrant 20
under a financial licensing act. After 5 years from the date of the 21
order, the person subject to the order may apply to the 22
commissioner to terminate the order. 23
(9) The commissioner shall mail a copy of any notice or order 24
issued under this section to the licensee of which the person 25
subject to the notice or order is an employee, agent, or control 26
person. 27
(10) As used in this section: 28
(a) "Fraud" includes actionable fraud, actual or constructive 29
4
Final Page
WAM H04954'25_HB5550_APH_1 kdhv57
fraud, criminal fraud, extrinsic or intrinsic fraud, fraud in the 1
execution, in the inducement, in fact, or in law, or any other form 2
of fraud. 3
(b) "Money laundering" means conduct by 1 or more persons that 4
conceals the existence, illegal source, or illegal application of 5
income and then disguises that income to make it appear legitimate. 6
Money laundering includes, but is not limited to, conduct that 7
violates any state or federal law that imposes a criminal penalty 8
for money laundering. 9
Enacting section 1. This amendatory act takes effect January 10
1, 2026. 11
Enacting section 2. This amendatory act does not take effect 12
unless House Bill No. 5544 (request no. H02309'25) of the 103rd 13
Legislature is enacted into law. 14