Michigan House Bill HB5240

Michigan 2025-2026 Regular Session

• Introduced: 11/6/25
• Refer: 11/6/25

Caption

Financial institutions: banking practices; manufacture, sale, or distribution of certain medical products containing PVC or DEHP; prohibit under certain circumstances. Amends sec. 220 of 2003 PA 215 (MCL 490.220) & adds sec. 401a.

Impact

If enacted, HB 5240 would introduce significant changes to the lending practices of credit unions in Michigan, particularly in how they assess the qualifications of agricultural producers for financial services. The bill creates a presumption that denying services based on environmental commitments would violate the law unless it can be rebutted with clear evidence that the denial was based on legitimate business reasons. Moreover, credit unions that violate this provision would face civil fines up to $10,000, marking a shift in how agricultural producers could be treated under the financial services offered by credit unions.

Summary

House Bill 5240 seeks to amend the Credit Union Act to prohibit domestic credit unions from denying, restricting, or canceling financial services to agricultural producers based on their greenhouse gas emissions, the use of fossil fuel-derived fertilizers, or machinery. This legislation is aimed at ensuring that agricultural producers receive equitable access to financial services without the adverse restrictions that may stem from environmental commitments made by credit unions. These commitments should not impede the business operations of farmers who depend on these financial resources.

Contention

Notable points of contention around HB 5240 stem from concerns about balancing environmental responsibility with the needs of the agricultural sector. Supporters of the bill argue that it protects farmers from potentially discriminatory practices linked to strict environmental policies, facilitating greater access to necessary financial services. Detractors, however, may contend that this bill could undermine credit unions' ability to enforce responsible lending practices that consider environmental impacts, potentially diminishing the overall accountability of financial services in regards to sustainable agricultural practices.