MI HB5020

Director must examine each domestic credit union at least once every 18 months to determine compliance with applicable law and rules.

Examination reports and related documents are confidential, privileged, not subject to FOIA or subpoena, and not admissible in private civil actions; director may share with regulatory agencies and law enforcement if recipient maintains confidentiality.

Director may use federal credit union examinations and reports, contract with other state regulators for multi-state examinations, and examine foreign credit union branches in Michigan.

Director cannot take enforcement action against a credit union based solely on its failure to follow suggested best practices or informal examiner recommendations; credit unions have discretion in addressing non-mandatory operational improvements.

Director must issue guidance within one year of enactment establishing examination scope, consistency standards, and due process procedures for resolving examination issues; effective date September 7, 2016.