Summary — HB 5367 (amends MCL 750.219e & 750.219f)

Status & procedural note
- Bill number: HB 5367

- Title: Crimes: other; citations to the motor vehicle sales finance act in the Michigan penal code; revise. (Amends sections 219e & 219f of 1931 PA 328 — MCL 750.219e & 750.219f.)

- Introduced: March 14, 2025 (filed); placed on third reading.

- Sponsors (version text): Reps. Donavan McKinney and Phil Skaggs.

- Conditional effective date: The amendment does not take effect unless companion legislation that amends the Motor Vehicle Sales Finance Act (e.g., House Bill 5354 or a Senate bill referenced in the text) is enacted.

Purpose and intent
- HB 5367 makes technical and citation updates to two criminal provisions of the Michigan Penal Code (sections 219e and 219f) that prohibit preparing, possessing, forwarding, or otherwise handling fraudulent loan or credit applications and devices. The principal substantive change is to revise the statutory definition/citation list of what constitutes a “financial institution” so that persons regulated under the Motor Vehicle Sales Finance Act are explicitly included.

Key provisions and changes
- Adds (or clarifies) that a “financial institution” for purposes of sections 219e and 219f includes persons subject to the Motor Vehicle Sales Finance Act (MCL 492.101 to 492.137a).

- Updates/corrects wording referencing federal banking regulators (Office of the Comptroller of the Currency, FDIC, Federal Reserve) in the statute.

- Leaves intact the core criminal prohibitions and the statutory exceptions for bona fide financial institutions and their affiliates, officers, employees, or licensees when they act without prior actual knowledge of fraud or when they submit suspect applications or devices to law enforcement, regulatory agencies, or credit reporting agencies.

- Criminal penalties remain:

- Section 219e (preparing/submitting/possessing fraudulent loan applications or devices): felony — up to 4 years imprisonment, or up to $2,500 fine, or both.

- Section 219f (receiving/forwarding fraudulent applications or devices with knowledge): felony — up to 4 years imprisonment, or up to $100,000 fine, or both.

Who is affected
- Entities newly and explicitly covered: motor vehicle sales finance companies, installment sellers, and other persons subject to the Motor Vehicle Sales Finance Act — i.e., vehicle finance actors that may not previously have been expressly listed as “financial institutions” in these penal provisions.

- Other affected parties: motor vehicle dealers, lenders that finance vehicle sales, regulatory authorities, prosecutors, and consumers (by clarifying enforcement scope for loan/application fraud involving vehicle finance).

Practical impact
- The bill primarily clarifies and expands statutory cross-references so that fraud and related offenses involving motor-vehicle financing fall squarely within existing criminal prohibitions. It is largely technical/codification in nature rather than creating new offenses or changing penalty ranges. Because the bill’s effectiveness is tied to enactment of related Motor Vehicle Sales Finance Act legislation, its practical effect depends on the companion bill(s) passing.