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HOUSE BILL NO. 6192
A bill to amend 1975 PA 148, entitled
"Debt management act,"
by amending section 8a (MCL 451.418a), as added by 2014 PA 362.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 8a. (1) If in the opinion of the director an individual 1
has engaged in fraud, the director may serve on that individual a 2
written notice of intention to prohibit that individual from being 3
licensed under this act, licensed or registered under any of the 4
financial licensing acts, or employed by, an agent of, or a control 5
July 03, 2026, Introduced by Reps. Frisbie, Tisdel, Alexander and Kuhn and referred to Committee
on Finance.
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person of a licensee. 1
(2) A notice issued under subsection (1) shall must contain a 2
statement of the facts supporting the prohibition and shall must 3
set a hearing on a date within not later than 60 days after the 4
date of the notice. If the individual does not appear at the 5
hearing, he or she the individual is considered to have consented 6
to the issuance of an order in accordance with the notice. 7
(3) If the director finds after a hearing held under 8
subsection (2) that any of the grounds specified in the notice have 9
been established, the director may issue an order of suspension or 10
prohibition from being licensed under this act or employed by, an 11
agent of, or a control person of a licensee. 12
(4) An order issued under subsection (2) or (3) is effective 13
when served on an individual. The director shall also serve a copy 14
of the order on the licensee of which the individual is an employee 15
or agent. An order issued under subsection (2) or (3) remains in 16
effect until it is stayed, modified, terminated, or set aside by 17
the director or a reviewing court. 18
(5) After 5 years from the date of an order issued under 19
subsection (2) or (3), the individual subject to the order may 20
apply to the director to terminate the order. 21
(6) If the director considers that an individual served a 22
notice under subsection (1) poses an imminent threat of financial 23
loss to customers, the director may serve on that individual an 24
order of suspension from being employed by, an agent of, or a 25
control person of a licensee. A suspension is effective on the date 26
the order is issued and, unless stayed by a court, remains in 27
effect until the director completes the review required under this 28
section and the director has dismissed the charges specified in the 29
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order. 1
(7) Unless otherwise agreed to by the director and the 2
individual served with an order issued under subsection (6), the 3
director shall hold a hearing required under subsection (2) to 4
review a suspension not earlier than 5 days or later than 20 days 5
after the date of the notice. 6
(8) If an individual is convicted of a felony involving fraud, 7
dishonesty, or breach of trust, the director may issue an order 8
suspending or prohibiting him or her individual from being licensed 9
under this act or employed by, an agent of, or a control person of 10
a licensee. After 5 years from the date of the order, the 11
individual subject to the order may apply to the director to 12
terminate the order. 13
(9) The director shall mail a copy of any notice or order 14
issued under this section to the employer or principal of the 15
individual who is subject to the notice or order. 16
(10) Within Not later than 30 days after the director has 17
notified the parties that a matter described in this section has 18
been submitted to him or her, the director, the director shall 19
render a decision that includes findings of fact supporting the 20
decision and serve on each party to the proceeding a copy of the 21
decision and an order consistent with the decision. 22
(11) Except for a consent order, a party to the proceeding or 23
a person affected by an order issued under this section may obtain 24
a judicial review of the order. A consent order may be reviewed as 25
provided under the administrative procedures act of 1969, 1969 PA 26
306, MCL 24.201 to 24.328. Except for an order under judicial 27
review, the director may terminate or set aside any order. The 28
director may terminate or set aside an order under judicial review 29
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with the permission of the court. 1
(12) Unless ordered by the court, the commencement of 2
proceedings for judicial review under subsection (11) does not stay 3
the director's order. 4
(13) The director may apply to the Ingham County circuit court 5
of Ingham county for the enforcement of any outstanding order 6
issued under this section. 7
(14) Any individual who violates a final order issued under 8
this section is guilty of a misdemeanor punishable by imprisonment 9
for not more than 1 year, a fine of not more than $5,000.00, or 10
imprisonment for not more than 1 year, or both. 11
(15) as As used in this section: 12
(a) "Financial licensing act" means the any of the following: 13
(i) The consumer financial services act, 1988 PA 161, MCL 14
487.2051 to 487.2072. ; any 15
(ii) Any of the acts listed in the definition of financial 16
licensing acts under section 2 of the consumer financial services 17
act, 1988 PA 161, MCL 487.2052. ; the 18
(iii) The deferred presentment service transactions act, 2005 PA 19
244, MCL 487.2121 to 487.2173. ; and the 20
(iv) For 6 months after the effective date of the residential 21
mortgage licensing and supervision act, the mortgage loan 22
originator licensing act, 2009 PA 75, MCL 493.131 to 493.171. 23
(b) "Fraud" includes actionable fraud, actual or constructive 24
fraud, criminal fraud, or extrinsic or intrinsic fraud, or fraud in 25
the execution, in the inducement, in fact, or in law, or any other 26
form of fraud. 27
Enacting section 1. This amendatory act does not take effect 28
unless House Bill No. 6177 (request no. H05171'25) of the 103rd 29
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Final Page
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Legislature is enacted into law. 1