FIRST CONFERENCE REPORT

The Committee of Conference on the matters of difference between the two Houses concerning

Senate Bill No. 125, entitled

A bill to make appropriations for the department of insurance and financial services for the fiscal year ending September 30, 2016; and to provide for the expenditure of the appropriations.

Recommends:

First: That the House recede from the Substitute of the House as passed by the House.

Second: That the Senate and House agree to the Substitute of the Senate as passed by the Senate, amended to read as follows:

(attached)

Third: That the Senate and House 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, 2016; and to provide for the expenditure of the appropriations.

_______________________ ________________________

Marty Knollenberg Chris Afendoulis

_______________________ ________________________

Jim Marleau Michael D. McCready

_______________________ ________________________

Coleman Young II Harvey Santana

Conferees for the Senate Conferees for the House

SUBSTITUTE FOR

SENATE BILL NO. 125

A bill to make appropriations for the department of insurance

and financial services for the fiscal year ending September 30,

2016; 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, 2016, from the following funds:

DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES

APPROPRIATION SUMMARY

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

Full-time equated classified positions.......... 337.0

GROSS APPROPRIATION.................................... $ 65,057,700

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

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

ADJUSTED GROSS APPROPRIATION........................... $ 64,350,100

Federal revenues:

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

Special revenue funds:

Total other state restricted revenues.................. 62,200,100

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........... 23.0

Department services--19.0 FTE positions................ $ 3,802,100

Unclassified Salaries--6.0 FTE positions............... 728,300

Executive director programs--4.0 FTE positions......... 1,084,300

Property management.................................... 869,300

Worker's compensation.................................. 5,200

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

Information technology services and projects........... 2,185,900

GROSS APPROPRIATION.................................... $ 8,857,600

Appropriated from:

Special revenue funds:

Bank fees.............................................. 782,900

Captive insurance regulatory and supervision fund...... 1,800

Consumer finance fees.................................. 395,200

Credit union fees...................................... 1,004,700

Deferred presentment service transaction fees.......... 520,700

Insurance bureau fund.................................. 3,409,400

Insurance continuing education fees.................... 81,400

Insurance licensing and regulation fees................ 1,766,400

MBLSLA fund............................................ 744,300

Multiple employer welfare arrangement.................. 800

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............... $ 12,732,300

Insurance rates and forms--30.0 FTE positions.......... 5,840,400

Financial institutions evaluation--132.0 FTE positions. 23,810,300

Regulatory compliance, market conduct and

licensing--34.0 FTE positions........................ 5,350,300

Consumer services and protection--64.0 FTE positions... 8,466,800

GROSS APPROPRIATION.................................... $ 56,200,100

Appropriated from:

Interdepartmental grant revenues:

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

Federal revenue:

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

Special revenue funds:

Bank fees.............................................. 6,357,700

Captive insurance regulatory and supervision fund...... 279,000

Consumer finance fees.................................. 4,122,000

Credit union fees...................................... 7,647,300

Deferred presentment service transaction fees.......... 3,086,200

Insurance bureau fund.................................. 20,148,000

Insurance continuing education fees.................... 1,060,600

Insurance licensing and regulation fees................ 6,354,100

MBLSLA fund............................................ 4,357,000

Multiple employer welfare arrangement.................. 80,600

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

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2015-2016

GENERAL SECTIONS

Sec. 201. In accordance with the provisions of section 30 of

article IX of the state constitution of 1963, total state spending

from state resources in this appropriation act for the fiscal year

ending September 30, 2016 is $62,350,100.00 and state

appropriations paid to local units of government are $0.

Sec. 202. The appropriations made and expenditures authorized

under this part and part 1 and the departments, commissions,

boards, offices, and programs for which appropriations are made

under this part 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.

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 all members of the subcommittees of

the house and senate appropriations committees with jurisdiction

over the budget for the department.

Sec. 205. 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 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. 208. 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. 209. 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. 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 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. 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 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

appropriations committees and the fiscal agencies.

Sec. 218. The departments and agencies receiving

appropriations in this part and part 1 shall prepare a report on

out-of-state travel expenses not later than January 1 of each year.

The travel report must list 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 must

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 this part and 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 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. 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.

(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 pursuant to 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. 228. Unless prohibited by law, the department may accept

credit card or other electronic means of payment for licenses,

fees, or permits.

Sec. 229. (1) 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.

(2) 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.

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. 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 immediately preceding and current fiscal

years.

Sec. 235. Total authorized appropriations from all sources

under this part and part 1 for legacy costs for the fiscal year

ending September 30, 2016 is $9,998,900.00. From this amount, total

agency appropriations for pension-related legacy costs are

estimated at $5,675,400.00. Total agency appropriations for retiree

health care legacy costs are estimated at $4,323,500.00.

Sec. 245. 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, 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 groups administrative

costs.

Sec. 246. 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. 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 or 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 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.

AUTISM COVERAGE

Sec. 802. (1) Each fiscal year, if expenditures are made from

the autism coverage fund, created by section 7 of the autism

coverage reimbursement act, 2012 PA 101, MCL 550.1837, the

department shall produce a report that contains all of the

following information on the autism coverage reimbursement program,

established by section 5 of the autism coverage reimbursement act,

2012 PA 101, MCL 550.1835, for the fiscal year:

(a) The total number of claims for reimbursement approved and

the number approved within each county, based on the provider's

location.

(b) The total amount expended from the autism coverage fund

for reimbursements and the amount for each carrier receiving

reimbursement.

by the department, all of the following information:

(i) The date the department received the claim.

(ii) The dollar amount of the claim.

(iii) The date of birth of the patient receiving diagnosis or

treatment under the claim.

(iv) Whether the claim was under a self-insured plan.

(v) The date of the service that was the basis for the claim.

(vi) The identity of the carrier that submitted the claim.

(2) By October 31 following the end of the fiscal year, the

department shall provide the report required under subsection (1)

to the subcommittees, the fiscal agencies, and the state budget

director.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS

FOR FISCAL YEAR 2016-2017

GENERAL SECTIONS

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

appropriations for the fiscal year ending on September 30, 2017 for

the line items listed in part 1. The fiscal year 2016-2017

appropriations are anticipated to be the same as those for fiscal

year 2015-2016, 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 2016 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,

2017 for the line items listed in part 1.