Introduced
by
To revise and update the Michigan Credit Union Act. In addition to revising many technical regulatory requirements and procedures, the bill would allow credit unions to offer more services and have more flexible field of membership (FOM) requirements. A credit union would be allowed to recruit members from several different organizations. Under current law, a credit union my only serve one specific group, such as a particular town or company. Unlike banks, they are tax-exempt non-profit entities. The bill is part of a legislative package comprised of Senate Bills 490 to 496. Senate Bill 496 is the lead bill; the same legislation is contained in House Bills 4694 to 4700.
Referred to the Committee on Banking and Financial Institutions
Reported without amendment
With the recommendation that the substitute (S-3)* be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one recommended by the Banking and Financial Institutions Committee. The substitute incorporates changes resulting from extensive negotiations involving committee members and representatives of banks and credit unions. For-profit banks were concerned about the potential competition from non-profit credit unions allowed greater "fields of membership." The substitute is a compromise.
The substitute passed by voice vote
Passed in the Senate 38 to 0 (details)
To revise and update the Michigan Credit Union Act. In addition to revising many technical regulatory requirements and procedures, and clarifying the powers of the state with regard to failing or struggling credit unions, the bill would allow credit unions to offer more services and have more flexible field of membership (FOM) requirements. A credit union would be allowed to recruit members from several different organizations. (Under current law, a credit union my only serve one specific group, such as a particular town or company.) It could make 30-day, $1,000 loans to members, similar to "payday loans," with restrictions such as a 10 percent ceiling on interest, fees and other costs. Unlike banks, credit unions are tax-exempt non-profit entities. The bill is part of a legislative package comprised of Senate Bills 490 to 496. Senate Bill 496 is the lead bill; the same legislation is contained in House Bills 4694 to 4700.
Referred to the Committee on Commerce
Reported without amendment
Without amendment and with the recommendation that the bill pass.
Amendment offered
by
To transfer to the governor certain authority granted by the bill to the state insurance commissioner. This affects enforcement actions against financially troubled credit unions.
The amendment failed by voice vote
Amendment offered
by
To require credit unions which require members to give a 60-day notice of their intention to withdraw shares or a 30-day notice of their intention to withdraw deposits to provide its members with an annual written notice of these requirements.
The amendment failed by voice vote
Amendment offered
by
To require legislative approval in the form of an appropriations bill for the use as operating funds by the Office of Financial and Insurance Services of fees, fines, or other money received from credit unions under the provisions of this bill.
The amendment failed by voice vote
Passed in the House 106 to 0 (details)
To revise and update the Michigan Credit Union Act. In addition to revising many technical regulatory requirements and procedures, and clarifying the powers of the state with regard to failing or struggling credit unions, the bill would allow credit unions to offer more services and have more flexible field of membership (FOM) requirements. A credit union would be allowed to recruit members from several different organizations. (Under current law, a credit union my only serve one specific group, such as a particular town or company.) It could make 30-day, $1,000 loans to members, similar to "payday loans," with restrictions such as a 10 percent ceiling on interest, fees and other costs. Unlike banks, credit unions are tax-exempt non-profit entities. The bill is part of a legislative package comprised of Senate Bills 490 to 496. Senate Bill 496 is the lead bill; the same legislation is contained in House Bills 4694 to 4700.
