Bill Text: MI SB0196 | 2023-2024 | 102nd Legislature | Engrossed
Bill Title: Appropriations: department of insurance and financial services; appropriations for fiscal year 2023-2024; provide for. Creates appropriation act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2023-05-16 - Notice Given To Discharge Committee [SB0196 Detail]
Download: Michigan-2023-SB0196-Engrossed.html
Substitute For
SENATE BILL NO. 196
A bill to make appropriations for the department of insurance and financial services for the fiscal year ending September 30, 2024; and to provide for the expenditure of the appropriations.
the people of the state of michigan enact:
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part 1
line-item appropriations
Sec. 101. There is appropriated for the department of insurance and financial services for the fiscal year ending September 30, 2024, from the following funds:
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DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES |
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(1) APPROPRIATION SUMMARY |
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Full-time equated unclassified positions |
6.0 |
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Full-time equated classified positions |
384.5 |
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GROSS APPROPRIATION |
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$ |
74,147,900 |
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Interdepartmental grant revenues: |
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Total interdepartmental grants and intradepartmental transfers |
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732,100 |
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ADJUSTED GROSS APPROPRIATION |
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$ |
73,415,800 |
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Federal revenues: |
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Total federal revenues |
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1,017,100 |
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Special revenue funds: |
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Total local revenues |
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0 |
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Total private revenues |
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0 |
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Total other state restricted revenues |
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72,398,700 |
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State general fund/general purpose |
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$ |
0 |
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(2) DEPARTMENTAL ADMINISTRATION AND SUPPORT |
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Full-time equated unclassified positions |
6.0 |
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Full-time equated classified positions |
23.5 |
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Unclassified salaries--FTEs |
6.0 |
$ |
910,000 |
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Administrative hearings |
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173,700 |
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Department services--FTEs |
20.0 |
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4,065,300 |
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Executive director programs--FTEs |
3.5 |
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912,400 |
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Property management |
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1,348,100 |
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Worker's compensation |
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1,300 |
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GROSS APPROPRIATION |
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$ |
7,410,800 |
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Appropriated from: |
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Interdepartmental grant revenues: |
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IDG from MDLARA, for debt management |
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70,600 |
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Special revenue funds: |
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Bank fees |
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585,400 |
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Captive insurance regulatory and supervision fund |
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56,000 |
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Consumer finance fees |
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285,100 |
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Credit union fees |
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967,400 |
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Deferred presentment service transaction fees |
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260,300 |
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Insurance bureau fund |
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2,365,300 |
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Insurance continuing education fees |
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67,500 |
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Insurance licensing and regulation fees |
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1,992,300 |
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MBLSLA fund |
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759,600 |
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Multiple employer welfare arrangement |
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1,300 |
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State general fund/general purpose |
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$ |
0 |
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(3) INSURANCE AND FINANCIAL SERVICES REGULATION |
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Full-time equated classified positions |
361.0 |
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Consumer services and protection--FTEs |
91.0 |
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13,329,100 |
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Financial institutions evaluation--FTEs |
137.0 |
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25,720,300 |
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Insurance evaluation--FTEs |
133.0 |
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25,343,400 |
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GROSS APPROPRIATION |
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$ |
64,392,800 |
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Appropriated from: |
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Interdepartmental grant revenues: |
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IDG from MDLARA, for debt management |
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636,300 |
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Federal revenues: |
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Federal revenues |
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1,017,100 |
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Special revenue funds: |
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Bank fees |
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6,234,800 |
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Captive insurance regulatory and supervision fund |
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770,900 |
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Consumer finance fees |
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3,035,700 |
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Credit union fees |
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9,315,900 |
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Deferred presentment service transaction fees |
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2,350,200 |
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Insurance bureau fund |
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22,478,900 |
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Insurance continuing education fees |
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1,309,600 |
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Insurance licensing and regulation fees |
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10,249,000 |
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MBLSLA fund |
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6,906,100 |
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Multiple employer welfare arrangement |
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88,300 |
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State general fund/general purpose |
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$ |
0 |
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(4) INFORMATION TECHNOLOGY |
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Information technology services and projects |
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2,344,300 |
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GROSS APPROPRIATION |
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$ |
2,344,300 |
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Appropriated from: |
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Interdepartmental grant revenues: |
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IDG from MDLARA, for debt management |
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25,200 |
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Special revenue funds: |
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Bank fees |
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145,500 |
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Captive insurance regulatory and supervision fund |
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13,500 |
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Consumer finance fees |
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72,000 |
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Credit union fees |
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246,000 |
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Deferred presentment service transaction fees |
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49,500 |
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Insurance bureau fund |
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459,000 |
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Insurance continuing education fees |
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9,000 |
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Insurance licensing and regulation fees |
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1,135,300 |
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MBLSLA fund |
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189,300 |
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State general fund/general purpose |
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$ |
0 |
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(5) ONE-TIME APPROPRIATIONS |
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GROSS APPROPRIATION |
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$ |
0 |
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Appropriated from: |
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Special revenue funds: |
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State general fund/general purpose |
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$ |
0 |
part 2
provisions concerning appropriations
for fiscal year 2023-2024
general sections
Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1 for fiscal year 2023-2024 is $72,398,700.00 and state spending from state sources to be paid to local units of government for fiscal year 2023-2024 is $0.00.
Sec. 202. The appropriations authorized under this part and part 1 are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "Department" means the department of insurance and financial services.
(b) "Director" means the director of the department.
(c) "FTE" means full-time equated.
(d) "IDG" means interdepartmental grant.
(e) "LARA" means the department of licensing and regulatory affairs.
(f) "MBLSLA fund" means the restricted account established under section 8 of the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1658.
(g) "Subcommittees" means the subcommittees of the house of representatives and senate appropriations committees with jurisdiction over the budget for the department.
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Sec. 204. The department shall use the internet to fulfill the reporting requirements of this part. This requirement must include transmission of reports via email to the recipients identified for each reporting requirement, and it must include placement of reports on an internet site.
Sec. 205. To the extent permissible under section 261 of the management and budget act, 1984 PA 431, MCL 18.1261, all of the following apply to funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign goods or services, or both, if competitively priced and of comparable quality American goods or services, or both, are available.
(b) Preference must be given to goods or services, or both, manufactured or provided by Michigan businesses, if they are competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both, that are manufactured or provided by Michigan businesses owned and operated by veterans, if they are competitively priced and of comparable quality.
Sec. 206. The department shall not take disciplinary action against an employee of the department in the state classified civil service because the employee communicates with a member of the legislature or a member's staff, unless the communication is prohibited by law and the department is exercising its authority as provided by law.
Sec. 207. Consistent with section 217 of the management and budget act, 1984 PA 431, MCL 18.1217, the department and agencies receiving appropriations in part 1 shall prepare a report on out‐of‐state travel expenses not later than January 1 of each year. The
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travel report must be a listing of all travel by classified and unclassified employees outside this state in the immediately preceding fiscal year that was funded in whole or in part with funds appropriated in the department's budget. The report must be submitted to the senate and house appropriations committees, the senate and house fiscal agencies, and the state budget office. The report must include the following information:
(a) The dates of each travel occurrence.
(b) The transportation and related costs of each travel occurrence, including the proportion funded with state general fund/general purpose revenues, the proportion funded with state restricted revenues, the proportion funded with federal revenues, and the proportion funded with other revenues.
Sec. 208. Funds appropriated in part 1 must not be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. This prohibition does not apply to legal services for bonding activities and for those outside services that the attorney general authorizes.
Sec. 209. Not later than December 31, the state budget office shall prepare and transmit a report that provides for estimates of the total general fund/general purpose appropriation lapses at the close of the prior fiscal year. This report must summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The report must be transmitted to the chairpersons of the senate and house appropriations committees and the senate and house fiscal agencies.
Sec. 210. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $1,000,000.00 for
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federal contingency authorization. These funds are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $5,000,000.00 for state restricted contingency authorization. These funds are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 211. The department shall cooperate with the department of technology, management, and budget to maintain a searchable website accessible by the public at no cost that includes, but is not limited to, all of the following for the department:
(a) Fiscal-year-to-date expenditures by category.
(b) Fiscal-year-to-date expenditures by appropriation unit.
(c) Fiscal-year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.
(d) The number of active department employees by job classification.
(e) Job specifications and wage rates.
Sec. 212. Within 14 days after the release of the executive budget recommendation, the department shall cooperate with the state budget office to provide the chairpersons of the senate and house appropriations committees, the chairpersons of the subcommittees, and the senate and house fiscal agencies with an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund
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expenditures for the prior 2 fiscal years.
Sec. 213. The department shall maintain, on a publicly accessible website, a department scorecard that identifies, tracks, and regularly updates key metrics that are used to monitor and improve the department's performance.
Sec. 214. (1) Funds appropriated in part 1 must not be used to restrict or interfere with actions related to diversity, equity, and inclusion (DEI); to restrict or impede a marginalized community's access to government resources, programs, or facilities; or to diminish, interfere with, or restrict an individual's ability to exercise the right to reproductive freedom.
(2) From the funds appropriated in part 1, a local unit of government shall report any action or policy that attempts to restrict or interfere with the duties of the local health officer.
Sec. 215. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director shall take all reasonable steps to ensure geographically disadvantaged business enterprises compete for and perform contracts to provide services or supplies, or both. The director shall strongly encourage firms with which the department contracts to subcontract with certified businesses in depressed and deprived communities for services, supplies, or both.
Sec. 216. (1) On a quarterly basis, the department shall report to the senate and house appropriations committees, the subcommittees, and the senate and house fiscal agencies the following information:
(a) The number of FTEs in pay status by type of staff and civil service classification.
(b) A comparison by line item of the number of FTEs authorized
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from funds appropriated in part 1 to the actual number of FTEs employed by the department at the end of the reporting period.
(2) By March 1 of the current fiscal year, the department shall report to the senate and house appropriations committees, the subcommittees, and the senate and house fiscal agencies the following information:
(a) Number of employees that were engaged in remote work in 2023.
(b) Number of employees authorized to work remotely and the actual number of those working remotely in the current reporting period.
(c) Estimated net cost savings achieved by remote work.
(d) Reduced use of office space associated with remote work.
Sec. 217. Appropriations in part 1, to the extent possible by the department, must not be expended until all existing work project authorization available for the same purposes is exhausted.
Sec. 219. The department and agencies receiving appropriations in part 1 shall receive and retain copies of all reports funded from appropriations in part 1. Federal and state guidelines for short-term and long-term retention of records shall be followed. The department may electronically retain copies of reports unless otherwise required by federal or state guidelines.
Sec. 220. Not later than April 1, the department shall report on each specific policy change made to implement a public act affecting the department that took effect during the prior calendar year to the senate and house appropriations committees, the subcommittees, the joint committee on administrative rules, and the senate and house fiscal agencies.
Sec. 221. (1) From the funds appropriated in part 1, the
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department shall do all of the following:
(a) Report to the senate and house appropriations committees, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office any amounts of severance pay for a department director, deputy director, or other high-ranking department official not later than 14 days after a severance agreement with the director or official is signed. The name of the director or official and the amount of severance pay must be included in the report required by this subdivision.
(b) Maintain an internet site that posts any severance pay in excess of 6 weeks of wages, regardless of the position held by the former department employee receiving severance pay.
(c) By February 1, report to the subcommittees, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office on the total amount of severance pay remitted to former department employees during the fiscal year ending September 30, 2023, and the number of former department employees that were remitted severance pay during the fiscal year ending September 30, 2023.
(2) As used in this section, "severance pay" means compensation that is both payable or paid upon the termination of employment and in addition to either wages or benefits earned during the course of employment or generally applicable retirement benefits.
Sec. 223. It is the intent of the legislature that the department maximize the efficiency of the state workforce and, where possible, prioritize in-person work. Each executive branch department, agency, board, or commission that receives funding under part 1 must post its in-person, remote, or hybrid work policy
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on its website.
Sec. 224. Unless prohibited by law, the department may accept credit card or other electronic means of payment for licenses, fees, or permits.
Sec. 225. The department shall submit a report to the subcommittees, the senate and house fiscal agencies, and the state budget office by September 30 detailing any expenditure of funds for a television or radio production that was made to a third-party vendor in the fiscal year ending September 30, 2024. The report must include all of the following information for each expenditure:
(a) Total amount of the expenditure.
(b) Fund source for the expenditure.
(c) Name of any vendor that created the production and the amount paid to each vendor.
(d) Purpose of the production.
Sec. 226. From the funds appropriated in part 1 from the insurance bureau fund, funds may be expended to support legislative participation in insurance activities coordinated by insurance and legislative associations, in accordance with section 225 of the insurance code of 1956, 1956 PA 218, MCL 500.225.
INSURANCE AND FINANCIAL SERVICES REGULATION
Sec. 301. The department shall provide a report to the subcommittees, the senate and house fiscal agencies, and the state budget office by September 30 based on the annual rate filings from health insurance issuers that includes all of the following:
(a) The number that are approved by the department.
(b) The number that are denied by the department.
(c) The percentage of rate filings processed within the
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applicable statutory time frames.
(d) The average number of calendar days to process rate filings.
Sec. 302. In addition to the funds appropriated in part 1, the funds collected by the department in connection with a conservatorship under section 32 of the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1682, and funds collected by the department from corporations being liquidated under the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302, must be appropriated for all expenses necessary to provide for the required services. Funds are available for expenditure when they are received by the department of treasury and must not lapse to the general fund at the end of the fiscal year.
Sec. 303. The department may make available to interested entities customized listings of nonconfidential information in its possession. The department may establish and collect a reasonable charge to provide this service. The revenue from this service is appropriated when received and must be used to offset expenses to provide the service. Any balance of this revenue collected and unexpended at the end of the fiscal year must lapse to the appropriate restricted fund.
Sec. 305. The department shall update examination manuals and letters of guidance to state-chartered financial institutions as necessary to reflect how the department will evaluate institutions that provide banking or other financial services to marihuana-related businesses or businesses that transport, test, grow, process, or sell marihuana based on state law and guidance. The department may also include guidance or information on how federal
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law and regulations may impact state-chartered institutions.
Sec. 307. From the funds appropriated in part 1, within 15 days after the catastrophic claims association charges its members the total premium under section 3104(7)(d) of the insurance code of 1956, 1956 PA 218, MCL 500.3104, the department shall work with the catastrophic claims association to disclose to the public on its website all data used in computing the premium and expected losses and expenses, including the amount that covers incurred but not reported losses for the period and any adjustment for any excess or deficient premiums from previous periods and the actuarial computation used in making these determinations, including estimates and assumptions. The disclosure must include, but not be limited to, all of the following:
(a) The actuarial computation used in making determinations of unpaid losses and loss adjustment expenses.
(b) All documents used in establishing the following:
(i) The calculation of the present value of disbursements expected to be made in the ultimate settlement of the claims reported.
(ii) The actuarial tables used to reflect the probabilities of each claimant surviving to incur the costs projected.
(iii) The calculation of incurred but not reported losses.
(iv) The actuarial assumptions and calculations used in producing the short-term discount rate and the long-term discount rate.
(v) The forecasts producing the economic assumptions for claim cost inflation and investment returns used.
(vi) The current economic data and historical long-term Consumer Price Index data for any cost component categories used in
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producing inflation assumptions.
(vii) The loss development analysis undertaken in connection with the provision for unpaid losses and loss adjustment expenses.
(viii) The trend analysis for both frequency and severity undertaken in connection with the provision for unpaid losses and loss adjustment expenses.
(c) The annual actuarial evaluation used in establishing the premium.
(d) The annual assessment reports of members used in establishing the premium.
(e) The annuity model used by the opining actuary in his or her actuarial opinion projecting future payment streams at the claimant level and the mortality adjustment applied.
(f) Any explanatory memorandum explaining the various components of the premium and the judgments made to produce the premium.
