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, 2023, from the following funds:

DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES
APPROPRIATION SUMMARY
Full-time equated unclassified positions	6.0
Full-time equated classified positions	372.5

GROSS APPROPRIATION		$	74,335,500
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers			736,500
ADJUSTED GROSS APPROPRIATION		$	73,599,000
Federal revenues:
Total federal revenues			1,017,100
Special revenue funds:
Total local revenues			0
Total private revenues			0
Total other state restricted revenues			72,581,900
State general fund/general purpose		$	0
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions	6.0
Full-time equated classified positions	23.5
Unclassified salaries--FTEs	6.0	$	1,740,300
Administrative hearings			183,700
Department services--FTEs	20.0		6,846,400
Executive director programs--FTEs	3.5		1,914,200
Property management			2,589,700
Worker's compensation			1,300
GROSS APPROPRIATION		$	13,275,600
Appropriated from:
Interdepartmental grant revenues:
IDG from LARA, debt management			71,600
Special revenue funds:
Bank fees			1,226,100

Captive insurance regulatory and supervision fund			67,900
Consumer finance fees			556,400
Credit union fees			2,058,300
Deferred presentment service transaction fees			520,000
Insurance bureau fund			3,675,500
Insurance continuing education fees			112,300
Insurance licensing and regulation fees			3,355,800
MBLSLA fund			1,630,300
Multiple employer welfare arrangement			1,400
State general fund/general purpose		$	0
Sec. 103. INSURANCE AND FINANCIAL SERVICES REGULATION
Full-time equated classified positions	349.0
Consumer services and protection--FTEs	88.0	$	27,449,200
Financial institutions evaluation--FTEs	135.0		14,470,000
Insurance evaluation--FTEs	126.0		14,441,300
GROSS APPROPRIATION		$	56,360,500
Appropriated from:
Interdepartmental grant revenues:
IDG from LARA, debt management			639,700
Federal revenues:
Federal revenues			1,017,100
Special revenue funds:
Bank fees			5,131,700
Captive insurance regulatory and supervision fund			624,500
Consumer finance fees			2,486,500

Credit union fees		7,779,900
Deferred presentment service transaction fees		2,152,800
Insurance bureau fund		21,827,800
Insurance continuing education fees		809,700
Insurance licensing and regulation fees		8,358,300
MBLSLA fund		5,444,200
Multiple employer welfare arrangement		88,300
State general fund/general purpose	$	0
Sec. 104. INFORMATION TECHNOLOGY
Information technology services and projects	$	4,699,400
GROSS APPROPRIATION	$	4,699,400
Appropriated from:
Interdepartmental grant revenues:
IDG from LARA, debt management		25,200
Special revenue funds:
Bank fees		460,000
Captive insurance regulatory and supervision fund		21,200
Consumer finance fees		212,200
Credit union fees		785,100
Deferred presentment service transaction fees		197,800
Insurance bureau fund		1,171,700
Insurance continuing education fees		38,600
Insurance licensing and regulation fees		1,206,200
MBLSLA fund		581,400
State general fund/general purpose	$	0

part 2

provisions concerning appropriations

for fiscal year 2022-2023

general sections

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1 for fiscal year 2022-2023 is $72,581,900.00 and state spending from state sources to be paid to local units of government for fiscal year 2022-2023 is $0.00.

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.

(d) "IDG" means interdepartmental grant.

(e) "LARA" means the department of licensing and regulatory affairs.

(f) "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.

(g) "Subcommittees" means the subcommittees of the house of representatives and senate appropriations committees with jurisdiction over the budget for the department.

Sec. 204. The department shall use the internet to fulfill the reporting requirements of this part. This requirement shall include transmission of reports via email to the recipients identified for each reporting requirement and it shall include placement of 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 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 or departmental agency in the state classified civil service because the employee communicates with a member of the legislature or a member's staff unless the communication is prohibited by law and the department or agency taking disciplinary action is exercising its authority as provided by law.

Sec. 207. The department 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 senate and house appropriations committees, the senate and house fiscal agencies, and the state budget office. 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. 208. Funds appropriated in this part and part 1 must 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 state budget office shall transmit the report to the chairpersons of the senate and house appropriations committees and the senate and house fiscal agencies.

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. 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 $1,000,000.00 for state restricted contingency authorization. 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. 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. Within 14 days after the release of the executive budget recommendation, the department shall cooperate with the state budget office to provide the chairpersons of the senate and house appropriations committees, the chairpersons of the subcommittees, 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 prior 2 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 under part 1 for legacy costs for the fiscal year ending September 30, 2023 are estimated at $8,906,500.00. From this amount, total agency appropriations for pension-related legacy costs are estimated at $5,407,400.00. Total agency appropriations for retiree health care legacy costs are estimated at $3,499,100.00.

Sec. 215. 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 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. 216. (1) On a quarterly basis, the department shall report to the senate and house appropriations committees, the subcommittees, and the senate and house fiscal agencies the following information:

(a) The number of FTEs in pay status by type of staff and civil service classification.

(b) A comparison by line item of the number of FTEs authorized from funds appropriated in part 1 to the actual number of FTEs employed by the department at the end of the reporting period.

(2) By March 1 of the current fiscal year, the department shall report to the senate and house appropriations committees, the subcommittees, and the senate and house fiscal agencies the following information:

(a) Number of employees that were engaged in remote work in 2022.

(b) Number of employees authorized to work remotely and the actual number of those working remotely in the current reporting period.

(d) Reduced use of office space associated with remote work.

Sec. 217. Appropriations in part 1 shall, to the extent possible by the department, not be expended until all existing work project authorization available for the same purposes is exhausted.

Sec. 218. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under this act, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each chamber, intertransfer funds within this act for the particular department, board, commission, officer, or institution.

Sec. 219. 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 of reports unless otherwise required by federal or state guidelines.

Sec 220. 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 prior calendar year to the senate and house appropriations committees, the subcommittees, the joint committee on administrative rules, and the senate and house fiscal agencies.

Sec. 221. (1) From the funds appropriated in part 1, the department shall do all of the following:

(a) Report to the senate and house appropriations committees, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office any amounts of severance pay for a department director, deputy director, or other high-ranking department official not later than 14 days after a severance agreement with the director or official is signed. The name of the director or official and the amount of severance pay must be included in the report required by this subdivision.

(b) Maintain an internet site that posts any severance pay in excess of 6 weeks of wages, regardless of the position held by the former department employee receiving severance pay.

(c) By February 1, report to the subcommittees, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office on the total amount of severance pay remitted to former department employees during the fiscal year ending September 30, 2022, and the number of former department employees that were remitted severance pay during the fiscal year ending September 30, 2022.

(2) As used in this section, "severance pay" means compensation that is both payable or paid upon the termination of employment and in addition to either wages or benefits earned during the course of employment or generally applicable retirement benefits.

Sec. 222. (1) Any department, agency, board, commission, or public officer that receives funding under part 1 shall not:

(a) Require as a condition of accessing any facility or receiving services that an individual provide proof that he or she has received a COVID-19 vaccine except as provided by federal law or as a condition of receiving federal Medicare or Medicaid

funding.

(b) Produce, develop, issue, or require a COVID-19 vaccine passport.

(c) Develop a database or make any existing database publicly available to access an individual's COVID-19 vaccine status by any person, company, or governmental entity.

(d) Require as a condition of employment that an employee or official provide proof that he or she has received a COVID-19 vaccine. This subdivision does not apply to any hospital, congregate care facility, or other medical facility or any hospital, congregate care facility, or other medical facility operated by a local subdivision that receives federal Medicare or Medicaid funding.

(2) A department, agency, board, commission, or public officer may not subject any individual to any negative employment consequence, retaliation, or retribution because of that individual's COVID-19 vaccine status.

(3) Subsection (1) does not prohibit any person, department, agency, board, commission, or public officer from transmitting proof of an individual's COVID-19 vaccine status to any person, company, or governmental entity, so long as the individual provides affirmative consent.

(4) If a department, agency, board, commission, subdivision, or official or public officer is required to establish a vaccine policy due to a federal mandate, it must provide exemptions to any COVID-19 vaccine policy to the following individuals:

(a) An individual for whom a physician certifies that a COVID-19 vaccine is or may be detrimental to the individual's health or is not appropriate.

(b) An individual who provides a written statement to the effect that the requirements of the COVID-19 vaccine policy cannot be met because of religious convictions or other consistently held objection to immunization.

(5) As used in this section, "public officer" means a person appointed by the governor or another executive department official or an elected or appointed official of this state or a political subdivision of this state.

Sec. 223. An executive branch department, agency, board, or commission that receives funding under part 1 shall not permit a state employee who was not working remotely, either full-time or part-time, before February 28, 2020 to work remotely, either full-time or part-time, during the current fiscal year.

Sec. 224. Unless prohibited by law, the department may accept credit card or other electronic means of payment for licenses, fees, or permits.

Sec. 225. The department shall submit a report to the subcommittees, the senate and house fiscal agencies, and the state budget office by September 30 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, 2023. The report must include all of the following information for each expenditure:

(a) Total amount of the expenditure.

(b) Fund source for the expenditure.

(d) Purpose of the production.

Sec. 226. 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 provide a report to the subcommittees, the senate and house fiscal agencies, and the state budget office by September 30 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.

(d) The average number of calendar days to process rate filings.

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. The total amount appropriated under this section and section 303 must not exceed $400,000.00.

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 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. The total amount appropriated under this section and section 302 must not exceed $400,000.00.

Sec. 304. The department must electronically transmit the annual report prepared pursuant to 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 subcommittees, senate and house fiscal agencies, and state budget office at the time of the publication of the report.

Sec. 305. The department must 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 marijuana-related businesses or businesses that transport, test, grow, process, or sell marijuana based on the most recent state laws and guidance. The department may also include guidance or information on how federal law and regulations may impact state-chartered institutions.