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SB-0136, As Passed Senate, May 4, 2017

SUBSTITUTE FOR

SENATE BILL NO. 136

A bill to make appropriations for the department of insurance

and financial services for the fiscal year ending September 30,

2018; and to provide for the expenditure of the appropriations.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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, 2018, from the following funds:

DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES

APPROPRIATION SUMMARY

Full-time equated unclassified positions.......... 6.0

Full-time equated classified positions.......... 336.5

GROSS APPROPRIATION.................................... $ 66,741,400

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

transfers............................................ 707,600

ADJUSTED GROSS APPROPRIATION........................... $ 66,033,800

Federal revenues:

Total federal revenues................................. 2,014,700

Special revenue funds:

Total other state restricted revenues.................. 63,869,100

State general fund/general purpose..................... $ 150,000

State general fund/general purpose schedule:

Ongoing state general fund/general

purpose...................................... 150,000

One-time state general fund/general

purpose............................................ 0

Sec. 102. DEPARTMENT SERVICES

Full-time equated unclassified positions.......... 6.0

Full-time equated classified positions........... 22.5

Unclassified salaries--6.0 FTE positions............... $ 769,100

Department services--19.0 FTE positions................ 3,752,200

Executive director programs--3.5 FTE positions......... 1,066,400

Property management.................................... 1,244,200

Worker's compensation.................................. 4,700

Administrative hearings................................ 182,500

GROSS APPROPRIATION.................................... $ 7,019,100

Appropriated from:

Special revenue funds:

Bank fees.............................................. 615,100

Captive insurance regulatory and supervision fund...... 4,100

Consumer finance fees.................................. 271,400

Credit union fees...................................... 810,500

Deferred presentment service transaction fees.......... 368,200

Insurance bureau fund.................................. 2,232,200

Insurance continuing education fees.................... 69,600

Insurance licensing and regulation fees................ 1,860,300

MBLSLA fund............................................ 636,400

Multiple employer welfare arrangement.................. 1,300

State general fund/general purpose..................... $ 150,000

Sec. 103. INSURANCE AND FINANCIAL SERVICES REGULATION

Full-time equated classified positions.......... 314.0

Insurance evaluation--118.0 FTE positions.............. $ 24,480,500

Financial institutions evaluation--132.0 FTE positions. 24,354,400

Consumer services and protection--64.0 FTE positions... 8,660,800

GROSS APPROPRIATION.................................... $ 57,495,700

Appropriated from:

Interdepartmental grant revenues:

IDG-LARA, for debt management.......................... 707,600

Federal revenue:

Federal revenues....................................... 2,014,700

Special revenue funds:

Bank fees.............................................. 6,059,600

Captive insurance regulatory and supervision fund...... 285,100

Consumer finance fees.................................. 3,073,200

Credit union fees...................................... 8,023,300

Deferred presentment service transaction fees.......... 3,306,500

Insurance bureau fund.................................. 21,242,800

Insurance continuing education fees.................... 998,900

Insurance licensing and regulation fees................ 5,928,700

MBLSLA fund............................................ 5,572,900

Multiple employer welfare arrangement.................. 282,400

State general fund/general purpose..................... $ 0

Sec. 104. INFORMATION TECHNOLOGY

Information technology services and projects........... $ 2,226,600

GROSS APPROPRIATION.................................... $ 2,226,600

Appropriated from:

Special revenue funds:

Bank fees.............................................. 197,900

Consumer finance fees.................................. 90,100

Credit union fees...................................... 261,800

Deferred presentment service transaction fees.......... 108,000

Insurance bureau fund.................................. 634,200

Insurance continuing education fees.................... 22,500

Insurance licensing and regulation fees................ 716,900

MBLSLA fund............................................ 195,200

State general fund/general purpose..................... $ 0

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2017-2018

GENERAL SECTIONS

Sec. 201. Pursuant to section 30 of article IX of the state

constitution of 1963, total state spending from state resources

under part 1 for fiscal year 2017-2018 is $64,019,000.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2017-2018 is $0.

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.

(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.

Sec. 204. The departments and agencies receiving

appropriations in this part and part 1 shall use the internet to

fulfill the reporting requirements of this part. This requirement

may include transmission of reports via electronic mail to the

recipients identified for each reporting requirement, or it may

include placement of reports on an internet or intranet site.

Sec. 205. Funds appropriated in this part and part 1 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. 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. In addition, 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 director shall take all reasonable steps to

ensure businesses in deprived and depressed communities 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. 207. (1) Out-of-state travel must be limited to

situations in which 1 or more of the following conditions apply:

(a) The travel is required by legal mandate or court order or

for law enforcement purposes.

(b) The travel is necessary to protect the health or safety of

Michigan citizens or visitors or to assist other states in similar

circumstances.

increase state revenues, including protecting existing federal

funds or securing additional federal funds.

(d) The travel is necessary to comply with federal

requirements.

(e) The travel is necessary to secure specialized training for

staff that is not available within this state.

(f) The travel is financed entirely by federal or nonstate

funds.

(2) The department shall not approve the travel of more than 1

departmental employee to a specific professional development

conference or training seminar that is located outside of this

state unless a professional development conference or training

seminar is funded by a federal or private funding source and

requires more than 1 individual from a department to attend, or the

conference or training seminar includes multiple issues in which 1

employee from the department does not have expertise.

(3) Not later than January 1, the department shall prepare a

travel report listing 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 department shall submit the report to

the senate and house of representatives standing committees on

appropriations, the senate and house fiscal agencies, and the state

budget director. The report must include the following information:

(a) The name of each person receiving reimbursement for travel

outside this state or whose travel costs were paid by this state.

(b) The destination of each travel occurrence.

(d) A brief statement of the reason for each travel

occurrence.

(e) 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.

(f) A total of all out-of-state travel funded for the

immediately preceding fiscal year.

Sec. 208. Funds appropriated in this part and 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 November 30, 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 state

budget office shall transmit the report to the chairpersons of the

senate and house of representatives 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

federal contingency funds.

(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 funds.

(3) Funds appropriated under this section 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 each department or agency:

(a) Fiscal-year-to-date expenditures by category.

(b) Fiscal-year-to-date expenditures by appropriation unit.

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 senate and house of

representatives appropriations chairs, the senate and house

appropriations subcommittees chairs, 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 expenditures for the fiscal years ending September

30, 2017 and September 30, 2018.

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. Total authorized appropriations from all sources in

part 1 for legacy costs for the fiscal year ending September 30,

2018 are $9,551,300.00. From this amount, total agency

appropriations for pension-related legacy costs are estimated at

$4,915,200.00. Total agency appropriations for retiree health care

legacy costs are estimated at $4,636,100.00.

Sec. 215. Unless prohibited by law, the department may accept

credit card or other electronic means of payment for licenses,

fees, or permits.

Sec. 218. The department shall not take disciplinary action

against an employee for communicating with a member of the

legislature or his or her staff.

Sec. 219. The department shall not develop or produce any

television or radio productions.

Sec. 220. The department, in conjunction with the department

of health and human services, shall maintain an accounting

structure within the Michigan administrative information network

that will allow expenditures associated with the administration of

the Healthy Michigan plan to be identified. By October 1, if there

are changes from the previous fiscal year, the department shall

provide the state budget office and the fiscal agencies with the

relevant accounting structure and associated business objects

script and report that group's administrative costs.

Sec. 221. The amount appropriated from the general fund in

part 1 for executive director program may only be expended to

comply with reporting requirements regarding the Healthy Michigan

plan under section 105d(9) of the social welfare act, 1939 PA 280,

MCL 400.105d.

INSURANCE AND FINANCIAL SERVICES REGULATION

Sec. 301. The department shall provide a report to the

legislature 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.

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