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	2.0
Full-time equated classified positions	327.0

GROSS APPROPRIATION		$	74,335,700
Total interdepartmental grants and intradepartmental transfers			736,500
ADJUSTED GROSS APPROPRIATION		$	73,599,200
Federal revenues:
Total federal revenues			1,017,100
Special revenue funds:
Total local revenues			0
Total private revenues			0
Total other state restricted revenues			72,582,100
State general fund/general purpose		$	0
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions	2.0
Full-time equated classified positions	20.0
Unclassified salaries--FTEs	2.0	$	1,740,300
Administrative hearings			183,700
Department services--FTEs	17.0		6,846,400
Executive director programs--FTEs	3.0		1,914,200
Property management			2,589,700
Worker's compensation			1,300
GROSS APPROPRIATION		$	13,275,600
Appropriated from:
IDG from MDLARA, for 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	307.0
Consumer services and protection--FTEs	83.0	$	27,449,200
Financial institutions evaluation--FTEs	117.0		14,470,000
Insurance evaluation--FTEs	107.0		14,441,300
GROSS APPROPRIATION		$	56,360,500
Appropriated from:
Interdepartmental grant revenues:
IDG from MDLARA, for 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:
IDG from MDLARA, for 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
Sec. 105. ONE-TIME APPROPRIATIONS
Auto no-fault insurance market conduct study	$	100
Behavioral health parity review of health insurance market		100
GROSS APPROPRIATION	$	200

Appropriated from:
Special revenue funds:
Insurance bureau fund		200
Total other state restricted revenues		200
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 $72,582,100.00 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 and agencies receiving appropriations in this part and part 1 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 part 1 may be used by a principal executive department, state agency, or authority to hire a person to provide legal services that the attorney general has the responsibility or the discretion to provide. A principal executive department, state agency, or authority may request reimbursement from the office of the attorney general for costs incurred for the purposes of hiring outside counsel to provide legal services.

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 of representatives appropriations committees and the senate and house fiscal agencies.

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 or each agency:

(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 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 article, 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 article for the particular department, board, commission, officer, or institution.

Sec. 219. The department and agencies receiving appropriations in this part and 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 of representatives 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 house and senate appropriations committees, the house and senate fiscal agencies, the house and senate 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 house and senate appropriations subcommittees on the department budget, the house and senate fiscal agencies, the house and senate 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. Unless prohibited by law, the department may accept credit card or other electronic means of payment for licenses, fees, or permits.

Sec. 224. The department shall submit a report to the subcommittees, the senate and house fiscal agencies, and the state budget director 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. 225. 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 director 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. 306. 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 director at the time of the publication of the report.

Sec. 307. 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.

Sec. 308. From any federal funds received by the department for the establishment of a state or regional health care claims database, the department shall consider all of the following

qualifications for potential entities when awarding any grant for the creation of the database:

(a) Status as a not-for-profit Michigan-based organization or partnership.

(b) Prior experience collecting and analyzing health care data, preferably claims data or similar datasets.

(d) Prior experience working with public health officials on public health outcomes and utilization.

(e) Prior experience collecting and analyzing data related to health care pricing.

(f) Ability of organization to provide data that could enhance the value of a database, such as health outcomes, health status, and analysis of care delivery models.

Sec. 309. (1) Beginning October 1, 2023, any results or findings from an audit conducted by the department must be reported to the audited entity within 180 days after the audit start date. If at that time the director determines that the initial audit findings merit additional investigation, the department may extend the audit period up to an additional 180 days for a total of not more than 360 days after the audit start date.

(2) The department shall take all reasonable and necessary measures to complete audits within the same fiscal year in which they were initiated, subject to the timeframe requirements of this section.

(3) The department shall finalize any outstanding audits with a start date before October 1, 2020 before initiating any new audit after September 30, 2022.

Sec. 311. From the funds appropriated in part 1, by October 30, 2022, the department shall make publicly available on its website and electronically transmit to the subcommittees and the house and senate fiscal agencies a report listing all initiated audits since April 30, 2018. The report must list for each audit a summary of the audit's current status, a statement as to whether the audit had yet produced findings, the audit start date, an estimated or actual completion date, and date of notice of completion sent to the audited entity.