Bill Text: MI SB0765 | 2023-2024 | 102nd Legislature | Engrossed
Bill Title: Appropriations: department of insurance and financial services; appropriations for fiscal year 2024-2025; provide for. Creates appropriation act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-05-21 - Returned To Senate [SB0765 Detail]
Download: Michigan-2023-SB0765-Engrossed.html
Substitute For
SENATE BILL NO. 765
A bill to make appropriations for the department of insurance and financial services for the fiscal year ending September 30, 2025; 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, 2025, 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 |
400.5 |
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GROSS APPROPRIATION |
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$ |
79,271,400 |
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Interdepartmental grant revenues: |
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Total interdepartmental grants and intradepartmental transfers |
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753,500 |
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ADJUSTED GROSS APPROPRIATION |
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$ |
78,517,900 |
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Federal revenues: |
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Total federal revenues |
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700,000 |
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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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77,817,900 |
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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 |
$ |
955,500 |
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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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4,127,900 |
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Executive director programs--FTEs |
3.5 |
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916,800 |
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Property management |
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1,389,100 |
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Worker's compensation |
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1,200 |
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GROSS APPROPRIATION |
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$ |
7,564,200 |
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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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72,100 |
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Special revenue funds: |
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Bank fees |
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598,800 |
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Captive insurance regulatory and supervision fund |
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57,000 |
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Consumer finance fees |
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292,000 |
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Credit union fees |
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985,000 |
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Deferred presentment service transaction fees |
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265,200 |
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Insurance bureau fund |
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2,409,700 |
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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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2,036,700 |
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MBLSLA fund |
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778,900 |
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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 |
377.0 |
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Consumer services and protection--FTEs |
107.0 |
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17,470,600 |
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Financial institutions evaluation--FTEs |
140.0 |
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25,574,900 |
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Insurance evaluation--FTEs |
130.0 |
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26,042,600 |
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GROSS APPROPRIATION |
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$ |
69,088,100 |
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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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656,200 |
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Federal revenues: |
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Federal revenues |
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700,000 |
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Special revenue funds: |
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Bank fees |
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6,913,100 |
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Captive insurance regulatory and supervision fund |
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790,200 |
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Consumer finance fees |
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2,857,800 |
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Credit union fees |
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8,798,400 |
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Deferred presentment service transaction fees |
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2,371,100 |
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Insurance bureau fund |
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26,455,100 |
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Insurance continuing education fees |
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1,022,700 |
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Insurance licensing and regulation fees |
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11,613,400 |
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MBLSLA fund |
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6,821,000 |
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Multiple employer welfare arrangement |
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89,100 |
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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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2,369,100 |
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GROSS APPROPRIATION |
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$ |
2,369,100 |
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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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147,300 |
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Captive insurance regulatory and supervision fund |
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13,700 |
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Consumer finance fees |
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73,300 |
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Credit union fees |
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248,900 |
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Deferred presentment service transaction fees |
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50,000 |
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Insurance bureau fund |
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466,400 |
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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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1,143,400 |
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MBLSLA fund |
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191,900 |
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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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Auto insurance reform study |
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250,000 |
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GROSS APPROPRIATION |
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$ |
250,000 |
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Appropriated from: |
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Special revenue funds: |
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Insurance licensing and regulation fees |
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250,000 |
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Total other state restricted revenues |
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250,000 |
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State general fund/general purpose |
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$ |
0 |
part 2
provisions concerning appropriations
for fiscal year 2024-2025
general sections
Sec. 201. In accordance with section 30 of article IX of the state constitution of 1963, for the fiscal year ending September 30, 2025, total state spending under part 1 from state sources is $77,871,900.00 and state spending from state sources to be paid to local units of government for the fiscal year ending September 30, 2025 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
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licensing act, 1987 PA 173, MCL 445.1658.
(g) "Subcommittees" means the subcommittees of the house of representatives and senate appropriations committees on the department budget.
Sec. 204. The department shall use the internet to fulfill the reporting requirements of this part. This requirement includes transmitting reports to required recipients by email and posting the reports on an internet site.
Sec. 205. Except as otherwise provided in this part, all reports required under this part must be submitted to the subcommittees, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.
Sec. 206. 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. 207. The department shall not take disciplinary action against an employee of the department who is in the state classified civil service because the employee communicates with a
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member of the senate or house or a member's staff, unless the communication is prohibited by law and the department is exercising its authority as provided by law.
Sec. 208. Consistent with section 217 of the management and budget act, 1984 PA 431, MCL 18.1217, each department and agency receiving appropriations in part 1 shall prepare a report on out‐of‐state travel expenses not later than January 1. The report must list all travel by classified and unclassified employees outside this state in the preceding fiscal year that was funded in whole or in part with funds appropriated in the department's or agency's budget. The department shall submit the report to the senate and house appropriations committees and to report recipients required in section 213. The report must include all of the following information:
(a) The dates of each travel occurrence.
(b) The total transportation and related expenses of each travel occurrence and the proportions funded with state general fund/general purpose revenues, state restricted revenues, federal revenues, and with other revenues.
Sec. 209. (1) The department shall not use funds appropriated in part 1 to hire a person to provide legal services that are the responsibility of the attorney general. This section does not apply to legal services for bonding activities or to outside legal services that the attorney general authorizes.
(2) The department shall make timely reimbursement to the department of the attorney general for legal services provided by the department of the attorney general to the department. If the department fails to make timely reimbursement, the department of
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the attorney general may increase the amount billed to include a penalty for late reimbursement. As used in this section, "timely reimbursement" means reimbursement not later than 60 days after the department receives a bill for the legal services from the department of the attorney general.
Sec. 210. Not later than December 15, the state budget office shall prepare and submit a report that provides 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 state budget office shall transmit the report to the chairpersons of the senate and house appropriations committees.
Sec. 211. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $200,000.00 for federal contingency authorization. The funds for federal contingency authorization 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 $1,000,000.00 for state restricted contingency authorization. The funds for state restricted contingency authorization 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. 212. The department shall cooperate with the department of technology, management, and budget to maintain a searchable
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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. 213. Not later than 14 days after the release of the executive budget recommendation, the department shall cooperate with the state budget office to provide an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the previous 2 fiscal years. The report must be submitted as required under section 205 and to the chairpersons of the senate and house appropriations committees.
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 that 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 geographically-disadvantaged business enterprises for services, supplies, or both. As used in this section, "geographically-disadvantaged business enterprises" means that term as defined in Executive Directive No. 2023-1.
Sec. 216. (1) On a quarterly basis, the department shall
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report on the number of full-time equated positions in pay status by civil service classifications. The report must include all of the following information:
(a) A comparison by line item of the number of full-time equated positions authorized from funds appropriated in part 1 to the actual number of full-time equated positions employed by the department at the end of the reporting period.
(b) A detailed accounting of all vacant positions that exist within the department.
(c) A detailed accounting of all vacant positions that are health-care-related.
(d) A detailed accounting of vacant positions that are being held open for temporary nonactive employees.
(2) As used in this section, "vacant position" means any position that has not been filled at any time during the past 12 calendar months.
Sec. 219. The department shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow federal and state guidelines for short-term and long-term retention of records. 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 previous calendar year. The department shall submit the reports as required under section 205 and to the senate and house appropriations committees and the joint committee on administrative rules.
Sec. 221. (1) From the funds appropriated in part 1, the
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department shall do the following:
(a) Report as required under section 205 to the senate and house appropriations committees 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) Not later than February 1, report on the total amount of severance pay remitted to former department employees during the fiscal year ending September 30, 2024, and the total number of former department employees that were remitted severance pay during the fiscal year ending September 30, 2024.
(2) As used in this section, "severance pay" means compensation that is both payable or paid on 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. (1) Funds appropriated in part 1 must not be used to restrict or impede a marginalized community's access to government resources, programs, or facilities.
(2) From the funds appropriated in part 1, local governments shall report any action or policy that attempts to restrict or interfere with the duties of the local health officer.
Sec. 224. Unless prohibited by law, the department may accept credit card or other electronic means of payment for licenses, fees, or permits.
Sec. 226. From the funds appropriated in part 1 from the insurance bureau fund, funds may be expended to support legislative
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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 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 applicable statutory time frames.
(d) The average number of calendar days to process rate filings.
(e) The justification for approved rate filings.
(f) The average percentage change in rates.
(g) The number of rejections by the department per rate filing.
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
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year. The total amount appropriated under this section and section 303 must not exceed $1,000,000.00.
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. The total amount appropriated under this section and section 302 must not exceed $1,000,000.00.
Sec. 304. The department must electronically transmit the annual report prepared under section 238 of the insurance code of 1956, 1956 PA 218, MCL 500.238, and section 2108 of the banking code of 1999, 1999 PA 276, MCL 487.12108, to the recipients required under section 205 at the time of the publication of the report.
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 statute and guidance. The department may also include guidance or information on how federal law and regulations may impact state-chartered institutions.
Sec. 306. The department shall provide a report to subcommittees, the senate and house fiscal agencies, and the state budget office by September 30 based on the annual rate filings from
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auto 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 applicable statutory time frames.
(d) The average number of calendar days to process rate filings.
(e) The justification for approved rate filings.
(f) The average percentage change in rates.
(g) The number of rejections by the department per rate filing.
Sec. 307. From the funds appropriated in part 1, from the insurance bureau fund, the department shall expend $1,500,000 to increase 5.0 FTEs to provide customer service related to auto insurance and auto accident care claims. At least 1.0 FTE must be designated to assist catastrophic accident survivors.
Sec. 308. By February 1, 2025, the department shall create a plan to establish satellite offices to provide in-person services to customers. The plan must consider demographic variables and analyze areas of this state with the highest needs when choosing locations for satellite offices. The department may partner with the secretary of state to meet the requirements of this section.
ONE-TIME APPROPRIATIONS
Sec. 401. From the funds appropriated in part 1 for auto insurance reform study, by April 30, 2025, the department must contract with a university or research institute that has specialty in auto insurance research to conduct a study of the effects of the auto insurance reform in 2019. The study must include the impact of
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the reform on costs, participants, demographics of those impacted, access to care, access to providers, and the total impact on insured accident victims and long-term care providers since 2019.
Sec. 402. From the funds appropriated in part 1, the department must conduct a study of the insulin market in this state
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and submit recommendations to the legislature to lower the price of insulin and increase access to insulin for individuals. The study must include information and data regarding insurers, pharmacy benefit managers, pharmacies, insulin consumers, and any other relevant stakeholders when creating recommendations to lower the price of insulin and increase access to insulin for individuals.
