HOUSE SUBSTITUTE FOR

SB-0189, As Passed Senate, April 30, 2013

SUBSTITUTE FOR

SENATE BILL NO. 189

A bill to make appropriations for the department of insurance

and financial services and certain other state purposes for the

fiscal year ending September 30, 2014; to provide for the

expenditure of those appropriations; to provide for the imposition

of certain fees; to provide for the disposition of fees and other

income received by the state agencies; to provide for reports to

certain persons; and to prescribe powers and duties of certain

state departments and certain state and local agencies and

officers.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

FOR FISCAL YEAR 2013-2014

Sec. 101. The amounts listed in this part are appropriated for

the department of insurance and financial services, subject to the

conditions set forth in this act, for the fiscal year ending

September 30, 2014, from the funds identified in this part. The

following is a summary of the appropriations in this part:

DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES

APPROPRIATION SUMMARY

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

Full-time equated classified positions.......... 347.0

GROSS APPROPRIATION.................................... $ 76,335,500

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

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

ADJUSTED GROSS APPROPRIATION........................... $ 75,627,900

Federal revenues:

Total federal revenues................................. 2,000,000

Special revenue funds:

Total local revenues................................... 0

Total private revenues................................. 0

Total other state restricted revenues.................. 61,627,900

State general fund/general purpose..................... $ 12,000,000

State general fund/general purpose schedule:

Ongoing state general fund/general

purpose................................... 12,000,000

One-time state general fund/general

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

Sec. 102. DEPARTMENTAL ADMINISTRATION

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

Full-time equated classified positions........... 41.0

Unclassified salaries--6.0 FTE positions............... $ 700,000

Department services--41.0 FTE positions................ 8,967,000

Property management.................................... 792,000

Rent................................................... 258,800

Worker's compensation.................................. 12,700

GROSS APPROPRIATION.................................... $ 10,730,500

Appropriated from:

Interdepartmental grant revenues:

Federal revenues:

Special revenue funds:

Bank fees.............................................. 1,330,000

Consumer finance fees.................................. 632,800

Credit union fees...................................... 1,123,700

Deferred presentment service transaction fees.......... 500,600

Insurance bureau fund.................................. 3,409,500

Insurance continuing education fees.................... 221,600

Insurance licensing and regulation fees................ 2,827,000

MBLSLA fund............................................ 685,300

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

Sec. 103. INSURANCE AND FINANCIAL SERVICES REGULATION

Full-time equated classified positions.......... 306.0

Financial evaluation--176.0 FTE positions.............. $ 31,824,800

Regulatory compliance and consumer assistance--130.0

FTE positions........................................ 19,529,000

GROSS APPROPRIATION.................................... $ 51,353,800

Appropriated from:

Interdepartmental grant revenues:

IDG - LARA............................................. 707,600

Federal revenues:

Federal revenues....................................... 2,000,000

Special revenue funds:

Bank fees.............................................. 6,742,300

Captive insurance regulatory and supervision fund...... 279,400

Consumer finance fees.................................. 4,129,600

Credit union fees...................................... 6,207,500

Deferred presentment service transaction fees.......... 2,525,100

Insurance bureau fund.................................. 18,964,000

Insurance continuing education fees.................... 886,300

Insurance licensing and regulation fees................ 4,725,600

MBLSLA fund............................................ 4,107,000

Multiple employer welfare arrangement.................. 79,400

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

Sec. 104. INFORMATION TECHNOLOGY

Information technology services and projects........... $ 2,251,200

GROSS APPROPRIATION.................................... $ 2,251,200

Appropriated from:

Interdepartmental grant revenues:

Federal revenues:

Special revenue funds:

Bank fees.............................................. 253,800

Consumer finance fees.................................. 35,400

Credit union fees...................................... 251,400

Deferred presentment service transaction fees.......... 114,100

Insurance bureau fund.................................. 728,800

Insurance continuing education fees.................... 11,300

Insurance licensing and regulation fees................ 752,300

MBLSLA fund............................................ 104,100

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

Sec. 105. AUTISM COVERAGE

Autism coverage fund................................... $ 12,000,000

GROSS APPROPRIATION.................................... $ 12,000,000

Appropriated from:

Interdepartmental grant revenues:

Federal revenues:

Special revenue funds:

State general fund/general purpose..................... $ 12,000,000

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2013-2014

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 2013-2014 is $73,627,900.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2013-2014 is $0.00.

Sec. 202. The appropriations authorized under this act are

subject to the management and budget act, 1984 PA 431, MCL 18.1101

to 18.1594.

Sec. 203. As used in this act:

(a) "Department" means the department of insurance and

financial services.

(b) "Director" means the director of the department.

Michigan senate fiscal agency.

(d) "Subcommittees" means all members of the subcommittees of

the house and senate appropriations committees with jurisdiction

over the budget for the department.

Sec. 208. Unless otherwise specified, the department shall use

the Internet to fulfill the reporting requirements of this act.

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. 209. Funds appropriated in 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. 212. The department and agencies receiving appropriations

in part 1 shall receive and retain copies of all reports funded

from appropriations in 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. 215. The department shall not take disciplinary action

against an employee for communicating with a member of the

legislature or his or her staff.

Sec. 216. Not later than November 30, the department shall

work with the state budget office to 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 shall 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

state budget office, the chairpersons of the senate and house

appropriations committees, and the senate and house fiscal

agencies.

Sec. 217. (1) Due to the current budgetary problems in this

state, 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.

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, each 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 appropriations committees, the senate and house

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.

(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. 221. Funds appropriated in 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. 223. (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 this act 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 this act under section 393(2) of the management and budget act,

1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in part 1, there is

appropriated an amount not to exceed $200,000.00 for local

contingency funds. These funds are not available for expenditure

until they have been transferred to another line item in this act

under section 393(2) of the management and budget act, 1984 PA 431,

MCL 18.1393.

(4) In addition to the funds appropriated in part 1, there is

appropriated an amount not to exceed $200,000.00 for private

contingency funds. These funds are not available for expenditure

until they have been transferred to another line item in this act

under section 393(2) of the management and budget act, 1984 PA 431,

MCL 18.1393.

Sec. 228. Unless prohibited by law, the department may accept

credit card or other electronic means of payment for licenses,

fees, or permits.

Sec. 229. 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. 231. 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.

Senate Bill No. 189 as amended April 30, 2013

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. 232. The department shall not develop or produce any

television or radio productions.

Sec. 234. 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 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, 2013 and September 30, 2014.

INSURANCE AND FINANCIAL SERVICES REGULATION

Sec. 391. In addition to the funds appropriated in part 1, the

funds collected by the office of financial and insurance regulation

in connection with a conservatorship pursuant to 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 pursuant to 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.

AUTISM COVERAGE

Sec. 801. Of the amount appropriated in part 1 for the autism

coverage fund, $12,000,000.00 is appropriated and may be expended

by the department as provided in the autism coverage reimbursement

act, 2012 PA 101, MCL 550.1831 to 550.1841.

Sec. 802. (1) From the funds appropriated in part 1, the

department shall produce a report that contains all of the

following information on the autism coverage program for the fiscal

year ending September 30, 2014:

(a) The number of reimbursements for diagnosis or treatment in

each county.

(b) The average cost of a diagnosis reimbursement.

(2) By September 30, 2014, the department shall provide the

report required under subsection (1) to the house and senate

appropriations committees, the fiscal agencies, and the state

budget director using all available information at that time.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS

FOR FISCAL YEAR 2014-2015

GENERAL SECTIONS

Sec. 1201. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, 2015 for

the line items listed in part 1. The fiscal year 2014-2015

appropriations are anticipated to be the same as those for fiscal

year 2013-2014, except that the line items will be adjusted for

changes in caseload and related costs, federal fund match rates,

economic factors, and available revenue. These adjustments will be

determined after the January 2014 consensus revenue estimating

conference.

Sec. 1202. It is the intent of the legislature that the

department identify the amounts for normal retirement costs and

legacy retirement costs for the fiscal year ending on September 30,

2015 for the line items listed in part 1.