Bill Summary – FastDemocracy

Legislative Analysis
                                                                        Phone: (517) 373-8080
REPORT ON PAYDAY LOANS                                                  http://www.house.mi.gov/hfa
House Bill 4343 (S-2) as passed by the Senate                  Analysis available at
Sponsor: Rep. Jennifer A. Conlin                               http://www.legislature.mi.gov
House Committee: Insurance and Financial Services
Senate Committee: Finance, Insurance, and Consumer Protection
Complete to 5-9-24
                                                     (Enacted as Public Act 46 of 2024)
SUMMARY:
       House Bill 4343 would amend the Deferred Presentment Service Transactions Act to
       require the director of the Department of Insurance and Financial Services (DIFS) to
       submit, each year for seven years, a report on deferred presentment service transactions
       (commonly known as payday loans) to the House and Senate committees concerned with
       banking and financial services. DIFS would also have to post the report on its website.
       The report would have to be submitted and posted on the DIFS website by October 31,
       2025, and every following October 31 through October 31, 2031. The report would have
       to include all of the following:
           • The number of persons engaged in the business of providing deferred presentment
               service transactions in Michigan during the immediately preceding calendar year.
           • A general report on the business of providing deferred presentment service
               transactions in Michigan during the immediately preceding calendar year. This
               report would have to include information about the number of licensees, the number
               of customers, and the number and amount of transactions, reported in the following
               format:
                   o A summary of the deferred presentment service transaction program fees
                       received by DIFS.
                   o Statewide statistics concerning transaction volumes by month, transaction
                       amounts, fees, and averages, active license locations, the total number of
                       customers, and drawer usage of repayment plans.
                   o Statistics, reported by county or zip code, concerning provider locations,
                       transaction volumes, total amount of advances, total fees for advances,
                       average advance amounts, average advance fees, the total number of repeat
                       drawers, and the total number of licensee locations.
           • The name and street address of each licensee in the state during the immediately
               preceding calendar year.
           • The number of complaints filed with DIFS against licensees and nonlicensees
               arising from transactions that took place in this state during the immediately
               preceding calendar year.
           • Any additional information the director of DIFS considers relevant.
       MCL 487.2171
House Fiscal Agency                                                                     Page 1 of 2
BACKGROUND:
       The bill is substantially similar to House Bill 4828 of the 2021-22 legislative session as
       that bill was passed by the House of Representatives.
       According to committee testimony, DIFS already collects this information but does not
       compile and publish it.
FISCAL IMPACT:
       House Bill 4343 would not have a significant fiscal impact on the Department of Insurance
       and Financial Services or on other units of state or local government. The bill would require
       additional reporting from the department, but that activity could likely be sufficiently
       conducted utilizing existing department resources.
POSITIONS:
        Representative of the following entities testified in support of the bill (5-11-23):
           • Department of Insurance and Financial Services
           • Michigan Catholic Conference
           • Community Economic Development Association of Michigan
       The following entities indicated support for the bill:
          • Community Development Advocates of Detroit (5-11-23)
          • Regulated Lenders Association of Michigan (5-11-23)
          • Michigan League for Public Policy (5-11-23)
          • Lake Trust Credit Union (5-11-23)
          • Michigan Poverty Law Program (5-11-23)
          • Center for Civil Justice (5-11-23)
          • Michigan Credit Union League (5-11-23)
          • Michigan Bankers Association (5-11-23)
          • Team Wellness (5-18-23)
                                                         Legislative Analyst: Alex Stegbauer
                                                              Fiscal Analyst: Marcus Coffin
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency                                    HB 4343 (S-2) as passed by the Senate   Page 2 of 2
Statutes affected: 
Substitute (H-1): 487.2171
Substitute (H-2): 487.2171
Substitute (S-1): 487.2171
Substitute (S-2): 487.2171
House Introduced Bill: 487.2171
As Passed by the House: 487.2171
As Passed by the Senate: 487.2171
House Concurred Bill: 487.2171
Public Act: 487.2171
House Enrolled Bill: 487.2171