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HB 5779

Financial institutions: credit unions; commitment for insurance from a qualified private insurance organization; allow for domestic credit unions in certain filings. Amends sec. 301 of 2003 PA 215 (MCL 490.301). TIE BAR WITH: HB 5780'26, HB 5781'26, HB 5782'26, HB 5783'26

2025-2026 Regular Session Introduced by Brian BeGole and 5 co-sponsors

The bill requires a firm insurance commitment from a federal agency or a qualified private insurer for share and deposit accounts in order to organize a domestic Michigan credit un

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Bill Summary · HB 5779

Summary of Michigan House Bill 5779 (2025-2026)

Proposed change to: Credit Union Act, 2003 PA 215 (MCL 490.301)

Status: Introduced and referred to Committee on Insurance (April 14-15, 2026)

Tied to: HB 5780, HB 5781, HB 5782, HB 5783

1) Purpose and intent

  • The bill amends Section 301 of the Credit Union Act to modify the process and criteria for organizing domestic credit unions.

  • It explicitly requires that, for the organization of a domestic credit union, a firm commitment of insurance for share and deposit accounts must be obtained from either:

    • a federal agency authorized to insure deposits, or
    • a qualified private insurance organization (as defined in section 387).

  • In practice, this links the green light to organization to the assurance of insurance coverage, potentially broadening the landscape of eligible insurers beyond traditional federal backing and enabling private insurance arrangements under specified conditions.

2) Key provisions and changes

Eligibility and application (Section 301(1)-(2))

  • Seven applicants, majority residents of Michigan and all within the proposed field of membership, may file an application to organize a domestic credit union (note: this does not apply to corporate credit unions).
  • Required contents of the application:
    • Name and any assumed names
    • Principal place of business and initial branches
    • Names/addresses of applicants and number of shares subscribed
    • Par value of shares (par value not to exceed $100 per share)
    • Proposed field of membership
    • Any other information the commissioner/director requires
  • An application must be delivered with an application fee determined by the commissioner/director.

Review and decision timeline (Section 301(2)-(3))

  • Within 60 days after receipt of the application (or last amendment), the commissioner/director must:
    • Review the application and conduct necessary investigations
    • Determine if organization benefits members
    • Determine whether a firm insurance commitment exists from a federal agency or qualified private insurer
    • Assess consistency with the purposes of the Act
    • Approve or disapprove the proposed field of membership based on safety and soundness
  • If approved, a certificate of approval is issued, and organizers may finalize organizational steps (certificate of organization and approved bylaws). Issuance of the final certificate of approval allows commencement of business.

Hearing and appeals (Section 301(3))

  • If disapproved, applicants may request a hearing within 30 days.
  • A hearing must be scheduled within 60 days of the request.
  • If still not approved after a reconsideration hearing, applicants may appeal to the circuit court (within 30 days of mailing the decision).
  • The commissioner retains hearing exhibits for the circuit court, and applicants cover stenographer costs for the reconsideration hearing.

Operational consequences (Section 301(4)-(6))

  • Issuance of a certificate of approval enables the organization of the domestic credit union to commence business.
  • The commissioner-director retains the original certificate of organization and bylaws but issues copies to the credit union.
  • The commissioner prescribes the form of the certificate of organization and bylaws, providing them upon request.

3) Who/what is affected

  • Prospective organizers of domestic credit unions in Michigan (groups of seven residents meeting field-of-membership requirements).
  • Domestic credit unions seeking to organize with insurance backing from either a federal agency or a qualified private insurer.
  • Michigan residents and stakeholders relying on credit union insurance arrangements, including potential private insurance arrangements that meet defined qualifications.

4) Procedural and timeline aspects

  • Trigger: Filing of application by seven residents within the proposed field of membership.
  • Review window: Up to 60 days to determine organization viability and insurance commitment, among other factors.
  • Appeals: If disapproved, a structured process allowing hearings (within 30-60 days) and potential circuit court appeal (within 30 days of mailing).
  • Finalization: Upon approval, certificate of organization and approved bylaws are issued; organization may commence business.

5) Notable considerations

  • The bill’s effectiveness is contingent upon enactment of related bills in the tied package (HB 5780, HB 5781, HB 5782, HB 5783).
  • The insurance requirement could broaden or alter the pool of acceptable insurance providers for credit union deposits, depending on the definition and qualification criteria for “qualified private insurance organization” in section 387.

If you’d like, I can provide a side-by-side comparison with current law or a plain-language summary tailored for a lay audience.

Compiled from official sources — confirm details with the bill’s official record.

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