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HB-5783, As Passed House, June 17, 2026
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HOUSE BILL NO. 5783
A bill to amend 2003 PA 215, entitled
"Credit union act,"
by amending section 207 (MCL 490.207), as amended by 2016 PA 155.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 207. (1) The director or his or her the director's 1
authorized agent shall examine the condition and affairs of each 2
domestic credit union, and may examine the condition and affairs of 3
any subsidiary of a domestic credit union, at least once every 18 4
months. The director shall determine whether the domestic credit 5
union transacts its business in the manner prescribed by law and 6
April 14, 2026, Introduced by Reps. B. Carter, Harris, Woolford, McFall, DeBoyer, Bierlein and
BeGole and referred to Committee on Insurance.
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the rules promulgated under law. 1
(2) In connection with an examination under subsection (1), 2
the director or the director's authorized agent may examine under 3
oath a board member, officer, agent, or employee of a domestic 4
credit union concerning the affairs and business of the domestic 5
credit union. The director or the director's authorized agent may 6
examine an affiliate of a domestic credit union if necessary to 7
fully disclose the relationship between the domestic credit union 8
and the affiliate and the effect of the relationship on the 9
domestic credit union. 10
(3) The director may examine a branch or branches located in 11
this state of a foreign credit union. 12
(4) In an examination under this section, the director may use 13
an examination made under the federal credit union act, 12 USC 1751 14
to 1795k, any other federal law related to the chartering or 15
insuring of financial institutions, or the law of another state 16
governing the activities of foreign credit unions organized in or 17
regulated by that state. The director may require a credit union to 18
furnish a copy of any report required by a federal or state credit 19
union regulatory agency. 20
(5) The director may contract with another state credit union 21
regulatory agency to assist in the conduct of examinations of 22
domestic credit unions with 1 or more branches located in that 23
other state and in examinations of foreign credit unions with 1 or 24
more branches located in this state. 25
(6) The contents of a report of an examination and 26
examination-related documents, materials, or information that are 27
prepared or obtained under this act remain the property of the 28
director. Any document, material, or information related to an 29
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examination under this act is confidential by law and privileged, 1
is not subject to the freedom of information act, 1976 PA 442, MCL 2
15.231 to 15.246, is not subject to subpoena, and is not subject to 3
discovery or admissible in evidence in any private civil action. 4
However, the director is authorized to use the documents, 5
materials, or information in the furtherance of any supervisory 6
activity or legal action brought as part of the director's duties. 7
(7) The director, or any person that received documents, 8
materials, or information while acting under the director's 9
authority, is not permitted and may not be required to testify in 10
any private civil action concerning any confidential documents, 11
materials, or information described in subsection (6). 12
(8) To assist in the performance of the director's duties 13
under this act, the director may do any of the following: 14
(a) Share documents, materials, or information, including the 15
confidential and privileged documents, materials, or information 16
that are subject to subsection (6), with other state, federal, and 17
international regulatory agencies, and with state, federal, and 18
international law enforcement authorities, provided that the 19
recipient agrees to maintain the confidentiality and privileged 20
status of the documents, materials, or information. 21
(b) Share documents, materials, or information, including the 22
confidential and privileged documents, materials, or information 23
that are subject to subsection (6), with a qualified private 24
insurance organization as that term is defined in section 387, 25
provided that the documents, materials, or information relates to a 26
credit union whose shares are primarily insured by the qualified 27
private insurance organization and the qualified private insurance 28
organization agrees to maintain the confidentiality and privileged 29
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status of the documents, materials, or information. 1
(c) (b) Receive documents, materials, or information, 2
including otherwise confidential and privileged documents, 3
materials, or information, from regulatory and law enforcement 4
officials of other foreign or domestic jurisdictions. The director 5
shall maintain as confidential or privileged any documents, 6
materials, or information received with notice or the understanding 7
that the documents, materials, or information the director receives 8
are confidential or privileged under this act or the laws of the 9
jurisdiction that is the source of the documents, materials, or 10
information. 11
(d) (c) Enter into agreements governing the sharing and use of 12
information that are consistent with this subsection. 13
(9) The disclosure of any documents, materials, or information 14
to the director, or the sharing of documents, materials, or 15
information under subsection (8), is not a waiver of, and shall 16
must not be construed as a waiver of, any privilege applicable to 17
or claim of confidentiality in those documents, materials, or 18
information. 19
(10) This article does not prohibit the director from 20
releasing final, adjudicated actions that are open to public 21
inspection under the freedom of information act, 1976 PA 442, MCL 22
15.231 to 15.246, to a database or other clearinghouse service 23
maintained by the National Credit Union Administration or its 24
affiliates or subsidiaries. 25
(11) A person to which confidential and privileged documents, 26
materials, or information is disclosed shall not further 27
disseminate those confidential and privileged documents, materials, 28
or information. 29
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(12) Any A person on which a demand for production of 1
confidential and privileged documents, materials, or information is 2
made, whether by subpoena, order, or other judicial or 3
administrative process, must shall withhold production of the 4
confidential and privileged documents, materials, or information 5
and must shall notify the director of the demand. If the director 6
is notified of a demand under this subsection, the director may 7
intervene for the purpose of enforcing the limitations of this 8
section or seeking the withdrawal or termination of the attempt to 9
compel production of the confidential and privileged documents, 10
materials, or information. 11
(13) Any request for discovery or disclosure of confidential 12
and privileged documents, materials, or information, whether by 13
subpoena, order, or other judicial or administrative process, shall 14
must be made to the director, and the director shall determine 15
within 7 days whether to disclose the documents, materials, or 16
information under this act. If the director determines that the 17
documents, materials, or information will not be disclosed, the 18
director's decision is subject to judicial review. 19
(14) The judicial review of a decision of the director under 20
subsection (13) may include in camera judicial review of the 21
confidential and privileged documents, materials, or information. 22
After judicial review, a court may only order disclosure of the 23
portions of the confidential and privileged documents, materials, 24
or information that are relevant and otherwise unobtainable by the 25
requesting party. 26
(15) The director may immediately appeal any a court order 27
described in subsection (14) that compels disclosure of 28
confidential and privileged documents, materials, or information, 29
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and the order is automatically stayed pending the outcome of the 1
appeal. 2
(16) In an addendum to a report of an examination under this 3
section, the director or his or her the director's authorized agent 4
may suggest best practices or other improvements in the operation 5
of a domestic credit union that are not required by law or 6
regulation or to address safety and soundness of the domestic 7
credit union. The manner in which a domestic credit union addresses 8
issues concerning its operations is within the discretion of the 9
domestic credit union in the exercise of its business judgment, 10
except as required by law or regulation or to address a concern 11
over safety and soundness. The director shall not take action 12
against a domestic credit union under this act based on a failure 13
or refusal of a domestic credit union to follow a best practice or 14
other recommended improvement in the operation of the domestic 15
credit union that is suggested informally by an examiner or that is 16
contained in an addendum to a report of an examination. 17
(17) Within 1 year after the effective date of the amendatory 18
act that added this subsection, Not later than September 7, 2017, 19
the director shall issue guidance to promote consistency and due 20
process in the examination process under this section, including, 21
but not limited to, establishing guidelines that define the scope 22
of the examination process and clarify how examination issues will 23
be resolved. 24
Enacting section 1. This amendatory act does not take effect 25
unless all of the following bills of the 103rd Legislature are 26
enacted into law: 27
(a) Senate Bill No. ____ (request no. S05525'25) or House Bill 28
No. 5779 (request no. H05525'25). 29
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Final Page
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(b) Senate Bill No. ____ (request no. S05532'25) or House Bill 1
No. 5780 (request no. H05532'25). 2
(c) Senate Bill No. ____ (request no. S05544'25) or House Bill 3
No. 5782 (request no. H05544'25). 4
(d) Senate Bill No. ____ (request no. S05545'25) or House Bill 5
No. 5781 (request no. H05545'25). 6