FIRST CONFERENCE REPORT
The Committee of Conference on the matters of difference between the two Houses concerning
House Bill No. 5306, entitled
Recommends:
First: That the Senate recede from the Substitute of the Senate as passed by the Senate.
Second: That the House and Senate agree to the Substitute of the House as passed by the House, amended to read as follows:
(attached)
Third: That the House and Senate agree to the title of the bill to read as follows:
A bill to make appropriations for the department of insurance and financial services for the fiscal year ending September 30, 2017; and to provide for the expenditure of the appropriations.
_______________________ ________________________
Chris Afendoulis Marty Knollenberg
_______________________ ________________________
Michael D. McCready Jim Marleau
_______________________ ________________________
Pam Faris Coleman Young II
Conferees for the House Conferees for the Senate
SUBSTITUTE FOR
HOUSE BILL NO. 5306
A bill to make appropriations for the department of insurance
and financial services for the fiscal year ending September 30,
2017; 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, 2017, 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.................................... $ 66,257,200
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 707,600
ADJUSTED GROSS APPROPRIATION........................... $ 65,549,600
Federal revenues:
Total federal revenues................................. 2,000,000
Special revenue funds:
Total local revenues................................... 0
Total private revenues................................. 0
Total other state restricted revenues.................. 63,399,600
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............... $ 746,500
Executive director programs--3.5 FTE positions......... 1,059,200
Department services--19.0 FTE positions................ 3,730,700
Property management.................................... 1,175,700
Worker's compensation.................................. 5,200
Administrative hearings................................ 182,500
Information technology services and projects........... 2,216,100
GROSS APPROPRIATION.................................... $ 9,115,900
Appropriated from:
Special revenue funds:
Bank fees.............................................. 801,600
Captive insurance regulatory and supervision fund...... 3,900
Consumer finance fees.................................. 355,800
Credit union fees...................................... 1,056,800
Deferred presentment service transaction fees.......... 469,900
Insurance bureau fund.................................. 2,829,300
Insurance continuing education fund.................... 90,500
Insurance licensing and regulation fees................ 2,537,300
MBLSLA fund............................................ 819,600
Multiple employer welfare arrangement.................. 1,200
State general fund/general purpose..................... $ 150,000
Sec. 103. INSURANCE AND FINANCIAL SERVICES
REGULATION
Full-time equated classified positions.......... 314.0
Insurance evaluation--54.0 FTE positions............... $ 12,908,900
Insurance rates and forms--30.0 FTE positions.......... 5,942,500
Financial institutions evaluation--132.0 FTE positions. 24,212,800
Regulatory compliance, market conduct, and licensing--
34.0 FTE positions................................... 5,482,000
Consumer services and protection--64.0 FTE positions... 8,595,100
GROSS APPROPRIATION.................................... $ 57,141,300
Appropriated from:
Interdepartmental grant revenues:
IDG - LARA, for debt management........................ 707,600
Federal revenues:
Federal revenues....................................... 2,000,000
Special revenue funds:
Bank fees.............................................. 6,018,100
Captive insurance regulatory and supervision fund...... 282,900
Consumer finance fees.................................. 3,061,000
Credit union fees...................................... 7,968,800
Deferred presentment service transaction fees.......... 3,293,200
Insurance bureau fund.................................. 20,988,400
Insurance continuing education fund.................... 995,000
Insurance licensing and regulation fees................ 6,004,500
MBLSLA fund............................................ 5,540,100
Multiple employer welfare arrangement.................. 281,700
State general fund/general purpose..................... $ 0
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2016-2017
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 2016-2017 is $63,549,600.00 and state
spending from state resources to be paid to local units of
government for fiscal year 2016-2017 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) "Fiscal agencies" means Michigan house fiscal agency and
Michigan senate fiscal agency.
(d) "FTE" means full-time equated.
(e) "IDG" means interdepartmental grant.
(f) "LARA" means the department of licensing and regulatory
affairs.
(g) "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.
(h) "Subcommittees" means the subcommittees of the house of
representatives and senate appropriations committees with
jurisdiction over the budget for the department.
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 shall 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 shall 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 shall 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 shall 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.
(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 person 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 report shall be submitted to the
senate and house of representatives standing committees on
appropriations, the fiscal agencies, and the state budget director.
The report shall 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.
(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 shall 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 report
shall be transmitted to the chairpersons of the senate and house of
representatives appropriations committees and the 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.
(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 chairs, the subcommittees chairs,
and the fiscal agencies with an annual report on estimated state
restricted fund balances, state restricted fund projected revenues,
and state restricted fund expenditures for the immediately
preceding and current 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. Total authorized appropriations from all sources in
part 1 for legacy costs for the fiscal year ending September 30,
2017 are $10,214,700.00. From this amount, total agency
appropriations for pension-related legacy costs are estimated at
$5,663,800.00. Total agency appropriations for retiree health care
legacy costs are estimated at $4,550,900.00.
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. In addition to the metrics required under section
447 of the management and budget act, 1984 PA 431, MCL 18.1447, for
each new program or program enhancement for which funds in excess
of $500,000.00 are appropriated in part 1, the department shall
provide not later than November 1 a list of program-specific
metrics intended to measure its performance based on a return on
taxpayer investment. The department shall deliver the program-
specific metrics to members of the senate and house of
representatives subcommittees that have subject matter jurisdiction
for this budget, fiscal agencies, and the state budget director.
The department shall provide an update on its progress in tracking
program-specific metrics and the status of program success at an
appropriations subcommittee meeting called for by the subcommittee
chair.
Sec. 217. The department and agencies receiving appropriations
in this part and part 1 shall receive and retain copies of all
reports funded from appropriations in this part and part 1. Federal
and state guidelines for short-term and long-term retention of
records shall be followed. The department may electronically retain
copies or reports unless otherwise required by federal and state
guidelines.
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.
(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) An estimated percentage of this state's population that is
without any form of health insurance coverage for more than 6
months in any given calendar year.
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, shall 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 shall 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 shall be used to offset expenses to
provide the service. Any balance of this revenue collected and
unexpended at the end of the fiscal year shall lapse to the
appropriate restricted fund.