HB 5833 Summary

• Establishes the Community Bank of Michigan as a state-owned bank operating under the name "the Bank of Michigan," managed by the Director of the Department of Insurance and Financial Services.

• Authorizes the bank to engage in standard banking operations including making loans to financial institutions, farmers, nonprofits, state agencies, and rural businesses; purchasing loan participations; and investing in authorized securities.

• Creates a 7-member advisory board appointed by the Governor, including at least 2 officers from state-owned banks and 1 officer from a state or federally chartered financial institution, to review operations and make recommendations.

• Directs the State Treasurer to deposit all surplus state funds in the bank, with deposits guaranteed by the state and exempt from state and local taxation.

• Authorizes the state to issue notes up to $10,000,000 with terms not exceeding 12 months to cover general fund shortfalls, with the bank directed to purchase such notes at rates set by the Director.