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SB-0770, As Passed Senate, April 29, 2014

SUBSTITUTE FOR

SENATE BILL NO. 770

A bill to make appropriations for the department of insurance

and financial services for the fiscal year ending September 30,

2015; and to provide for the expenditure of the appropriations.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

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 part 2, for the fiscal year ending

September 30, 2015, 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.......... 337.0

GROSS APPROPRIATION.................................... $ 65,134,800

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

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

ADJUSTED GROSS APPROPRIATION........................... $ 64,427,200

Federal revenues:

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

Special revenue funds:

Total other state restricted revenues.................. 62,427,100

State general fund/general purpose..................... $ 100

State general fund/general purpose schedule:

Ongoing state general fund/general

purpose.......................................... 100

One-time state general fund/general

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

Sec. 102. DEPARTMENT SERVICES

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

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

Department services--37.0 FTE positions................ $ 8,241,900

Unclassified--6.0 FTE positions........................ 717,500

Executive director programs--4.0 FTE positions......... 956,300

Property management.................................... 628,100

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

Worker's compensation.................................. 6,200

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

GROSS APPROPRIATION.................................... $ 10,991,300

Appropriated from:

Special revenue funds:

Bank fees.............................................. 1,424,000

Consumer finance fees.................................. 637,200

Credit union fees...................................... 1,168,000

Deferred presentment service transaction fees.......... 502,700

Insurance bureau fund.................................. 3,583,800

Insurance continuing education fees.................... 224,000

Insurance licensing and regulation fees................ 2,754,900

MBLSLA fund............................................ 696,600

State general fund/general purpose..................... $ 100

Sec. 103. INSURANCE AND FINANCIAL SERVICES REGULATION

Full-time equated classified positions.......... 296.0

Insurance evaluation--54.0 FTE positions............... $ 13,249,700

Insurance rates and forms--30.0 FTE positions.......... 5,354,600

Financial institutions evaluation--131.0 FTE positions. 18,869,800

Regulatory compliance, market conduct, and

licensing--58.0 FTE positions........................ 10,355,900

Consumer services and protection--23.0 FTE positions... 4,045,800

GROSS APPROPRIATION.................................... $ 51,875,800

Appropriated from:

Interdepartmental grant revenues:

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

Federal revenue:

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

Special revenue funds:

Bank fees.............................................. 6,754,700

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

Consumer finance fees.................................. 4,149,500

Credit union fees...................................... 6,296,300

Deferred presentment service transaction fees.......... 2,553,500

Insurance bureau fund.................................. 19,122,900

Insurance continuing education fees.................... 890,800

Insurance licensing and regulation fees................ 4,892,800

MBLSLA fund............................................ 4,147,600

Multiple employer welfare arrangement.................. 80,700

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

Sec. 104. INFORMATION TECHNOLOGY

Information technology services and projects........... $ 2,267,700

GROSS APPROPRIATION.................................... $ 2,267,700

Appropriated from:

Special revenue funds:

Bank fees.............................................. 255,700

Consumer finance fees.................................. 35,600

Credit union fees...................................... 253,300

Deferred presentment service transaction fees.......... 114,900

Insurance bureau fund.................................. 734,100

Insurance continuing education fees.................... 11,400

Insurance licensing and regulation fees................ 757,900

MBLSLA fund............................................ 104,800

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

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2014-2015

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 2014-2015 is $63,134,800.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2014-2015 is $0.00.

Sec. 202. The appropriations authorized under 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:

(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. The departments and agencies receiving

appropriations in 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. 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. 210. 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. 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 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 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 fiscal

agencies.

Sec. 218. The departments and agencies receiving

appropriations in part 1 shall prepare a report on out-of-state

travel expenses not later than January 1 of each year. The travel

report shall be a listing of 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 house and senate appropriations committees, the

fiscal agencies, and the state budget director. The report shall

include the following information:

(a) The dates of each travel occurrence.

(b) The total 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.

Sec. 219. No later than April 1, the department shall submit

to the subcommittees and the fiscal agencies a report pertaining to

the following information:

(a) The amount, in square footage, of office space paid for

with the appropriation in part 1 for both state-owned and leased

office space, respectively, during the previous fiscal year.

(b) The amount, in square footage, of office space actually

utilized by the department for both state-owned and leased office

space, respectively, during the previous fiscal year.

be utilized during the current and subsequent fiscal years.

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 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.

(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 part 1

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 part 1

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.

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 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 fiscal years ending September 30, 2014 and

September 30, 2015.

Sec. 235. Total authorized appropriations from all sources

under part 1 for legacy costs for the fiscal year ending September

30, 2015 are $10,148,200.00. From this amount, total agency

appropriations for pension-related legacy costs are estimated at

$5,627,200.00. Total agency appropriations for retiree health care

legacy costs are estimated at $4,521,000.00.

Sec. 240. (1) It is the intent of the legislature that

departments and agencies receiving appropriations in part 1

properly account for their spending and do not use full-time

equated positions as placeholders for spending in other parts of

their budgets.

(2) No later than February 1, the department shall provide a

report to the legislature specifying the number of filled, full-

time equated positions in pay status within each agency receiving

appropriations in part 1 during the immediately preceding fiscal

year. When reporting on the number of filled, full-time equated

positions in pay status, the department shall provide the maximum

number of filled, full-time equated positions in pay status by

appropriation line item in the last pay period of each quarter of

the immediately preceding fiscal year. The report shall also

include a list of all funded, full-time equated positions by

position title. The report shall indicate which full-time equated

positions are allocated to economic development and economic

development planning.

INSURANCE AND FINANCIAL SERVICES REGULATION

Sec. 310. (1) No later than February 1, the department shall

submit a report to the subcommittees and the fiscal agencies

providing the following information:

(a) The amounts expended, by fund source, by the department to

support the economic development of the insurance or financial

industries during the preceding fiscal year.

(b) The number of full-time equated positions utilized by the

department to support the economic development of the insurance or

financial industries during the preceding fiscal year.

support the economic development of the insurance and financial

industries.

(2) For purposes of subsection (1), "economic development"

includes any activities to encourage, promote, or advocate for the

expansion, retention, or attraction of business or nonprofit

entities engaged in or involved with the insurance or financial

industries.

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. 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, 2015:

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

each county.

(b) The average cost of a diagnosis reimbursement.

(2) By October 30, 2015, 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.