Bill Text: MI HB5513 | 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 2-0)
Status: (Engrossed) 2024-05-22 - Roll Call Roll Call # 130 Yeas 51 Nays 55 Excused 0 Not Voting 4 [HB5513 Detail]
Download: Michigan-2023-HB5513-Engrossed.html
Substitute For
HOUSE BILL NO. 5513
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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APPROPRIATION SUMMARY |
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Full-time equated unclassified positions |
6.0 |
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Full-time equated classified positions |
395.5 |
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GROSS APPROPRIATION |
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$ |
77,771,400 |
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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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$ |
77,017,900 |
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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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76,317,900 |
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State general fund/general purpose |
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$ |
0 |
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Sec. 102. 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, 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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Sec. 103. INSURANCE AND FINANCIAL SERVICES REGULATION |
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Full-time equated classified positions |
372.0 |
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Consumer services and protection--FTEs |
102.0 |
$ |
15,970,600 |
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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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$ |
67,588,100 |
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Appropriated from: |
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Interdepartmental grant revenues: |
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IDG from MDLARA, 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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24,955,100 |
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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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Sec. 104. 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, 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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Sec. 105. ONE-TIME APPROPRIATIONS |
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Insurance complaints and health care appeals outreach campaign |
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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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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 $76,317,900.00 and state spending under part 1 from state sources to be paid to local units of government is $0.00.
Sec. 202. The appropriations 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) "MDLARA" means the Michigan department of licensing and regulatory affairs.
(f) "MBLSLA fund" means the restricted account established
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under section 8 of the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1658.
(g) "Standard report recipients" means the senate and house appropriations subcommittees on the department budget, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.
Sec. 204. The department shall use the internet to fulfill the reporting requirements of this part. This requirement includes transmitting reports to the standard report recipients and any other required recipients by email and posting the 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 the expenditure of 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 for communicating with a member of the legislature or legislative staff, unless the communication is prohibited by law and the department is exercising
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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 shall prepare a report on out‐of‐state travel expenses not later than January 1. The report must list all travel outside this state by classified and unclassified employees in the previous 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 standard report recipients and to the senate and house appropriations committees. 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 other revenues.
Sec. 208. 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.
Sec. 209. 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 previous fiscal year. The 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 submit the report to the standard report recipients and to the chairpersons of the senate and house
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appropriations committees.
Sec. 210. (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. Amounts appropriated under this subsection 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. Amounts appropriated under this subsection 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. 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
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projected revenues, and state restricted fund expenditures for the previous 2 fiscal years. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.
Sec. 213. (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 a local health officer.
Sec. 214. 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 certified 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. 2019-8.
Sec. 215. On a quarterly basis, the department shall report on the number of full-time equated positions in pay status by civil service classification, including 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. The report must be submitted to the standard report recipients and to the senate and house appropriations committees.
Sec. 216. It is the intent of the legislature that the
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department maximize the efficiency of the state workforce and, if possible, prioritize in-person work and post its in-person, remote, or hybrid work policy on its website.
Sec. 217. 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. 218. 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 report to the standard report recipients, to the senate and house appropriations committees, and to the joint committee on administrative rules.
Sec. 219. To the extent possible, the department shall not expend appropriations under part 1 until all existing authorized work project funds available for the same purposes are exhausted.
Sec. 220. Unless prohibited by law, the department may accept credit card or other electronic means of payment for licenses, fees, or permits.
Sec. 221. Not later than September 30, the department shall submit a report to the standard report recipients 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, 2025. The report must include all of the following information for each expenditure:
(a) The total amount of the expenditure.
(b) The fund source for the expenditure.
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(c) The name of any vendor that created the production and the amount paid to each vendor.
(d) The purpose of the production.
Sec. 222. 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 electronically transmit the annual health insurance rate change report prepared pursuant to 45 CFR 154.301(b), to the standard report recipients at the time the report is published.
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
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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. 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 standard report recipients 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.
