The bill amends the Debt Management Act of 1975 by updating Section 8a, which outlines the procedures for addressing individuals engaged in fraudulent activities within the financial sector. Key changes include the requirement for the director to provide a written notice of intention to prohibit an individual from being licensed or employed in the financial industry, which must now include a statement of facts supporting the prohibition and set a hearing date no later than 60 days after the notice. Additionally, the bill specifies that if an individual does not appear at the hearing, they are considered to have consented to the order, and it introduces a provision for immediate suspension if the individual poses an imminent threat of financial loss to customers.

Further amendments clarify the process for judicial review of orders issued under this section, including the stipulation that the commencement of such proceedings does not stay the director's order unless ordered by the court. The bill also updates the penalties for violating a final order, making it a misdemeanor punishable by imprisonment for up to one year and/or a fine of up to $5,000. The definition of "financial licensing act" is expanded to include specific acts related to consumer financial services and mortgage loan origination. Overall, these changes aim to enhance the regulatory framework for managing fraud in the financial sector in Michigan.

Statutes affected:
House Introduced Bill: 451.418