Bill Text: MI HB4237 | 2019-2020 | 100th Legislature | Engrossed
Bill Title: Appropriations; zero budget; department of insurance and financial services; provide for fiscal year 2019-2020. Creates appropriation act.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2019-08-29 - Reassigned To Committee On Appropriations [HB4237 Detail]
Download: Michigan-2019-HB4237-Engrossed.html
HB-4237, As Passed House, June 12, 2019
SUBSTITUTE FOR
HOUSE BILL NO. 4237
A bill to make appropriations for the department of insurance
and financial services for the fiscal year ending September 30,
2020; 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, 2020, from the following funds:
DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES
APPROPRIATION SUMMARY
Full-time equated unclassified positions.......... 6.0
Full-time equated classified positions.......... 346.5
GROSS APPROPRIATION.................................... $ 68,889,800
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 723,100
ADJUSTED GROSS APPROPRIATION........................... $ 68,166,700
Federal revenues:
Total federal revenues................................. 1,017,600
Special revenue funds:
Total other state restricted revenues.................. 67,099,100
State general fund/general purpose..................... $ 50,000
State general fund/general purpose schedule:
Ongoing state general fund/general
purpose........................................ 50,000
One-time state general fund/general
purpose............................................. 0
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions.......... 6.0
Full-time equated classified positions........... 22.5
Unclassified salaries--6.0 FTE positions............... $ 816,200
Administrative hearings................................ 182,500
Department services--19.0 FTE positions................ 3,823,300
Executive director programs--3.5 FTE positions......... 1,091,900
Property management.................................... 1,283,500
Worker's compensation.................................. 2,900
GROSS APPROPRIATION.................................... $ 7,200,300
Appropriated from:
Special revenue funds:
Bank fees.............................................. 523,600
Captive insurance regulatory and supervision fund...... 3,000
Consumer finance fees.................................. 207,700
Credit union fees...................................... 877,100
Deferred presentment service transaction fees.......... 279,000
Insurance bureau fund.................................. 2,587,900
Insurance continuing education fees.................... 65,700
Insurance licensing and regulation fees................ 1,934,700
MBLSLA fund............................................ 670,300
Multiple employer welfare arrangement.................. 1,300
State general fund/general purpose..................... $ 50,000
Sec. 103. INSURANCE AND FINANCIAL SERVICES REGULATION
Full-time equated classified positions.......... 324.0
Consumer services and protection--70.0 FTE positions... $ 9,402,600
Financial institutions evaluation--133.0 FTE positions. 24,993,600
Insurance evaluation--121.0 FTE positions.............. 25,017,300
GROSS APPROPRIATION.................................... $ 59,413,500
Appropriated from:
Interdepartmental grant revenues:
IDG from LARA, debt management......................... 723,100
Federal revenues:
Federal revenues....................................... 1,017,600
Special revenue funds:
Bank fees.............................................. 5,811,100
Captive insurance regulatory and supervision fund...... 491,200
Consumer finance fees.................................. 2,870,200
Credit union fees...................................... 8,986,000
Deferred presentment service transaction fees.......... 2,432,900
Insurance bureau fund.................................. 21,290,100
Insurance continuing education fees.................... 863,700
Insurance licensing and regulation fees................ 7,958,500
MBLSLA fund............................................ 6,481,900
Multiple employer welfare arrangement.................. 487,200
State general fund/general purpose..................... $ 0
Sec. 104. INFORMATION TECHNOLOGY
Information technology services and projects........... $ 2,276,000
GROSS APPROPRIATION.................................... $ 2,276,000
Appropriated from:
Special revenue funds:
Bank fees.............................................. 227,900
Consumer finance fees.................................. 94,000
Credit union fees...................................... 373,100
Deferred presentment service transaction fees.......... 114,500
Insurance bureau fund.................................. 445,400
Insurance continuing education fees.................... 23,000
Insurance licensing and regulation fees................ 735,400
MBLSLA fund............................................ 262,700
State general fund/general purpose..................... $ 0
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2019-2020
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 2019-2020 is $67,149,100.00 and state
spending from state sources to be paid to local units of government
for fiscal year 2019-2020 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.
(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.
Sec. 204. The department 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 where the travel is approved by a departmental
employee's immediate supervisor and 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.
(c) The travel is necessary to produce budgetary savings or to
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 the 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 all of 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.
(c) The dates 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. 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 funds. 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 or each
agency:
(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 senate and house of
representatives appropriations committee 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, 2019 and September 30, 2020.
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
under part 1 for legacy costs for the fiscal year ending September
30, 2020 are estimated at $9,068,100.00. From this amount, total
agency appropriations for pension-related legacy costs are
estimated at $4,408,200.00. Total agency appropriations for retiree
health care legacy costs are estimated at $4,659,900.00.
Sec. 215. Unless prohibited by law, the department may accept
credit card or other electronic means of payment for licenses,
fees, or permits.
Sec. 216. The department shall not take disciplinary action
against an employee for communicating with a member of the
legislature or his or her staff.
Sec. 217. The department, in conjunction with the department
of health and human services, shall maintain an accounting
structure within this state's accounting system that will allow
expenditures associated with the administration of the Healthy
Michigan plan to be identified.
Sec. 218. The amount appropriated from the general fund in
part 1 for executive director programs 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.
Sec. 219. 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 director 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.
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. 304. (1) The department shall enhance the reporting
requirements of the 0850 report to better capture enrollment and
other appropriate data.
(2) The department shall update the 0850 report to
differentiate the primary and specific claims functions of the
third party administrator that it governs. The claims processing
designations in the 0850 report must include all of the following:
(a) Medical/surgical.
(b) Dental.
(c) Vision.
(d) Pharmaceutical.
(e) Disability.
(f) Long-term care.
(g) Cafeteria plans.
(h) Worker's compensation.
(i) Credit disability.
(3) As used in this section, "0850 report" means the financial
statement for third party administrators report.
Sec. 305. From the funds appropriated in part 1, the
department shall conduct a study to determine the feasibility of an
auto insurance marketplace including, but not limited to, the
ability to allow consumers to compare insurance rates, discounts,
and features from different insurance producers.
Sec. 306. The department shall provide a report to the
subcommittees, the senate and house fiscal agencies, and the state
budget director by September 30 providing a total calculation of
cost savings that the anti-fraud unit within the department has
achieved for this state and consumers throughout the fiscal year.
If the necessary data is available, the report must include an
itemized listing and description of cost savings that the anti-
fraud unit has achieved. Any itemization must also state which of
the following industries the applicable savings were achieved in:
(a) Financial services.
(b) Auto insurance.
(c) Health insurance.
(d) Life insurance.
(e) Any other category of insurance.
Sec. 307. The department must produce a report and transmit
the report to the subcommittees, senate and house fiscal agencies,
and state budget director by December 31. The report must include
all of the following information for the prior fiscal year:
(a) The number of complaints received by the office of
consumer services, with number of complaints specified for auto
insurers, health insurers, life insurers, other types of insurers,
banks, credit unions, deferred presentment service providers,
mortgage loan originators, and other consumer finance license
types.
(b) A description of the process that the office of consumer
services uses to resolve complaints.
(c) A description of the types of complaints received by the
office of consumer services pertaining to auto insurers, with
counts of the number of complaints of that type received.
(d) The number of investigations that the office of consumer
services initiated and the number of investigations that the office
closed.
(e) The number of recoveries that the office of consumer
services secured and the total value of those recoveries.
(f) The number and type of enforcement actions taken against
licensees as a result of complaints received by the office of
consumer services.
(g) A description of the staffing level and staff
responsibilities in the office of consumer services.
