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, 2026, from the following funds:

DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES
Sec. 101. APPROPRIATION SUMMARY
Full-time equated unclassified positions	6.0
Full-time equated classified positions	401.0

GROSS APPROPRIATION		$	78,051,600
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers			763,800
ADJUSTED GROSS APPROPRIATION		$	77,287,800
Federal revenues:
Total federal revenues			250,000
Special revenue funds:
Total local revenues			0
Total private revenues			0
Total other state restricted revenues			77,037,800
State general fund/general purpose		$	0
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions	6.0
Full-time equated classified positions	22.0
Unclassified salaries--FTEs	6.0	$	984,100
Administrative hearings			173,700
Department services--FTEs	17.0		6,931,400
Executive director programs--FTEs	5.0		1,537,700
Property management			1,217,200
Worker's compensation			1,900
GROSS APPROPRIATION		$	10,846,000
Appropriated from:
Interdepartmental grant revenues:
Special revenue funds:
Bank fees			864,600

Captive insurance regulatory and supervision fund			69,600
Consumer finance fees			560,400
Credit union fees			1,309,000
Deferred presentment service transaction fees			240,500
Insurance bureau fund			4,744,400
Insurance continuing education fees			46,500
Insurance licensing and regulation fees			1,838,300
MBLSLA fund			1,172,700
State general fund/general purpose		$	0
Sec. 103. INSURANCE AND FINANCIAL SERVICES REGULATION
Full-time equated classified positions	379.0
Consumer services and protection--FTEs	109.0		18,413,800
Financial institutions evaluation--FTEs	138.0		23,061,300
Insurance evaluation--FTEs	132.0		22,117,900
GROSS APPROPRIATION		$	63,593,000
Appropriated from:
Interdepartmental grant revenues:
IDG from MDLARA, for debt management			763,800
Federal revenues:
Federal revenues			250,000
Special revenue funds:
Bank fees			6,564,600
Captive insurance regulatory and supervision fund			644,600
Consumer finance fees			2,415,800
Credit union fees			8,456,700

Deferred presentment service transaction fees		2,360,200
Insurance bureau fund		27,344,700
Insurance continuing education fees		548,300
Insurance licensing and regulation fees		8,266,400
MBLSLA fund		5,942,500
Multiple employer welfare arrangement		35,400
State general fund/general purpose	$	0
Sec. 104. INFORMATION TECHNOLOGY
Information technology services and projects		3,612,600
GROSS APPROPRIATION	$	3,612,600
Appropriated from:
Interdepartmental grant revenues:
Special revenue funds:
Bank fees		288,000
Captive insurance regulatory and supervision fund		23,200
Consumer finance fees		186,700
Credit union fees		436,000
Deferred presentment service transaction fees		80,500
Insurance bureau fund		1,710,800
Insurance continuing education fees		15,700
Insurance licensing and regulation fees		481,200
MBLSLA fund		390,500
State general fund/general purpose	$	0
Sec. 105. ONE-TIME APPROPRIATIONS
GROSS APPROPRIATION	$	0
Appropriated from:
Special revenue funds:

State general fund/general purpose

part 2

provisions concerning appropriations

for fiscal year 2025-2026

general sections

Sec. 201. In accordance with section 30 of article IX of the state constitution of 1963, for the fiscal year ending September 30, 2026, total state spending from state sources under part is $79,241,800.00 and state spending from state sources to be paid to local units of government 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) "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.

(f) "Standard report recipients" means the senate and house appropriations subcommittees on the department budget, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.

Sec. 204. A department or agency shall use the internet to fulfill the reporting requirements of this part. This requirement

includes transmitting reports to the standard report recipients and any other required recipients by email and posting the 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.

(d) Preference must be given to goods or services, or both, that are manufactured in facilities that employ union members.

Sec. 206. The department shall not take disciplinary action against an employee of the department for communicating with a member of the legislature or legislative staff, unless the communication is prohibited by law and the department is exercising its authority as provided by law.

Sec. 207. Consistent with section 217 of the management and budget act, 1984 PA 431, MCL 18.1217, the department shall prepare a report on out‐of‐state travel expenses not later than January 1. The report must list all travel by classified and unclassified employees outside this state in the previous fiscal year that was

funded in whole or in part with funds appropriated in the department's budget. The department shall submit the report to the senate and house appropriations committees and to the standard report recipients. The report must include all of the following information:

(a) The dates of each travel occurrence.

(b) The total transportation and related expenses of each travel occurrence and the proportions funded with state general fund/general purpose revenues, state restricted revenues, federal revenues, and other revenues.

Sec. 208. The department shall not use funds appropriated in part 1 to hire a person to provide legal services that are the responsibility of the attorney general. This section does not apply to legal services for bonding activities or to outside legal services that the attorney general authorizes.

Sec. 209. Not later than December 15, the state budget office shall prepare and submit a report that provides estimates of the total general fund/general purpose appropriation lapses at the close of the previous fiscal year. The 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 submit the report to the standard report recipients and the chairpersons of the senate and house appropriations committees.

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. Amounts appropriated under this subsection 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. Amounts appropriated under this subsection 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. A department or an agency 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.

(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. Not later than 14 days after the release of the executive budget recommendation, the department shall cooperate with the state budget office to provide an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the previous 2 fiscal years. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.

Sec. 214. To the extent permissible under the management and

budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of each department or agency receiving appropriations in part 1 shall take all reasonable steps to ensure geographically-disadvantaged business enterprises compete for and perform contracts to provide services or supplies, or both. Each director shall strongly encourage firms with which the department or agency contracts to subcontract with certified geographically-disadvantaged business enterprises for services, supplies, or both. As used in this section, "geographically-disadvantaged" business enterprises means that term as defined in Executive Directive No. 2023-1.

Sec. 215. On a quarterly basis, a department or agency receiving appropriations in part 1 shall report on the number of FTEs in pay status by type of staff and civil service classification, including a comparison by line item of the number of FTEs authorized from funds appropriated in part 1 to the actual number of FTE positions employed by the department or agency at the end of the reporting period. The report must be submitted to the senate and house appropriations committees and to the standard report recipients.

Sec. 218. The department shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow federal and state guidelines for short-term and long-term retention of records. The department may electronically retain copies of reports unless otherwise required by federal or state guidelines.

Sec. 219. 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 previous calendar year. The department shall submit the report to the

standard report recipients, the senate and house appropriations committees, and the joint committee on administrative rules.

Sec. 220. Unless prohibited by law, the department may accept credit card or other electronic means of payment for licenses, fees, or permits. If electronic payment is offered, at least one method of electronic payment must not incur the licensee additional fees.

Sec. 221. (1) Funds appropriated in part 1 must not be used to restrict or impede a marginalized community's access to government resources, programs, or facilities.

(2) From the funds appropriated in part 1, local governments shall report any action or policy that attempts to restrict or interfere with the duties of a local health officer.

Sec. 222. Appropriations in part 1 must, to the extent possible by the department, not be expended until all existing work project authorization available for the same purposes is exhausted.

Sec. 223. (1) General fund appropriations in part 1 shall not be expended for items if federal funding or private grant funding is available for the same expenditures.

(2) If the department is required to make a reduction in expenditures under section 395(1) or (2) of the management and budget act, 1984 PA 431, MCL 18.1395, for any appropriation under this part or part 1, the department must notify the standard report recipients not later than 10 days after the reduction. The notification must include, but not be limited to, the following:

(a) A description of the fund source that is insufficient to support the expenditures being reduced and the amount of the reduction.

(b) A description of the cause for the reduction, if any such

cause is known.

Sec. 224. (1) Not later than 10 days after the effective date of this act, the department must provide a report to the standard report recipients containing the following information:

(a) A list of any sections in this act that the department determines to be unenforceable, with a detailed legal rationale for those determinations, as applicable.

(b) If a determination under subdivision (a) would affect the operations of a program or programs within the department, the department must report the estimated difference in cost between the policy outlined in the section determined to be unenforceable and the policy the department intends to pursue.

(2) The department may coordinate with the executive office of the governor or other state departments or agencies to compile a statewide report for any departments or agencies required to submit a report substantially similar to the report described under subsection (1).

Sec. 225. The department shall provide a quarterly report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:

(a) Affect the operations of the department.

(b) Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.

(c) Affect regulations that currently protect the public to the extent that the regulations affect an industry, community, population, or other group regulated or served by, or that

otherwise engages with, the department.

(d) Create a regulatory gap that could negatively impact the public.

226. (1) For any grant program or project funded in part 1 intended for a single recipient organization or unit of local government, the grant program or project is for a public purpose and the department shall follow procurement statutes for this state, including any bidding requirements, unless the department can fully validate, through information detailed in this part or public supporting documents, both of the following:

(a) The specific organization or unit of local government that will receive or administer the funds.

(b) How the funds will be administered and expended.

(2) To be eligible to receive a grant described in subsection (1), both of the following must occur:

(a) A recipient must submit the application under subsection (3) not later than 60 days after the effective date of this act.

(b) A recipient must be 1 of the following:

(i) A unit of local government, as that term is defined in section 115 of the management and budget act, 1984 PA 431, MCL 18.1115.

(ii) An institution of higher education.

(iii) A state agency, as that term is defined in section 115 of the management and budget act, 1984 PA 431, MCL 18.1115.

(iv) An entity registered with the department of licensing and regulatory affairs or the department of attorney general that has been in existence for at least the 12 months preceding the effective date of this act.

(v) Another entity that can demonstrate, through state or

federal tax filings or other state or federal government records, that it has been in existence for at least the 12 months preceding the effective date of this act.

(3) Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall work with the state budget office to perform at least all of the following activities to administer the grants described in subsection (1):

(a) Develop a standard application process using the electronic submission portal developed by the state budget office, grantee reporting requirements, and any other necessary documentation, including sponsorship information as specified under subsection (4). If the electronic submission portal identified in this subdivision is not fully functional by 60 days after the effective date of this act, the state budget office shall ensure that the standard application process and form are available promptly and paper submission is acceptable. The state budget office shall promptly submit application material received to the department for departmental review.

(b) Establish a process to review, complete, and execute a grant agreement with a grant recipient. The department shall not execute a grant agreement unless all necessary documentation has been submitted and reviewed.

(c) Verify to the extent possible that a grant recipient will use funds for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.

(d) Review and verify all necessary information to ensure that the grant recipient is reasonably able to execute the grant agreement, perform its fiduciary duty, and comply with all applicable state and federal statutes. The department may deduct

the cost of background checks and any other efforts performed as part of this verification from the amount of the designated grant award.

(e) Establish a standard timeline to review all documents submitted by grant recipients and provide a response within 45 business days stating whether submitted documents by a grant recipient are sufficient or in need of additional information. If additional information is needed, the 60-day deadline in subsection (2) is considered to have been met if a sponsor has been identified for that grant. If a grant recipient does not provide information sufficient to execute a grant agreement not later than 60 days after being notified by the department of grant approval, the department shall return funds associated with the grant to the state treasury.

(f) Make an initial disbursement of up to 50% of the grant to the grant recipient not later than 60 days after a grant agreement has been executed. Disbursements must be consistent with part II, chapter 10, section 200 of the Financial Management Guide.

(g) Disburse the funds remaining after the initial disbursement under subdivision (f) per the grant disbursement schedule in the executed grant agreement on a reimbursement basis after the grantee has provided sufficient documentation, as determined by the department, to verify that expenditures were made in accordance with the project purpose.

(4) The identification and process for sponsorship of a grant described in subsection (1) is as follows:

(a) Not later than the effective date of this act, the state budget office shall provide an initial list of grants that require legislative sponsorship to the legislature and shall make public an

initial list of grants that likely will be sponsored by the department or by the state budget office.

(b) A sponsor of a grant described in subsection (1) must be a legislator, the department, or the state budget office.

(c) A legislative sponsor must be identified through a letter submitted by that legislator's office to the department and state budget director containing the name of the grant recipient, the intended amount of the grant, a certification from that legislator that the grant is for a public purpose, and specific citation of the section and subsection of the public act that authorizes the grant, as applicable.

(d) Not later than 10 business days after the effective date of this act, the senate and house of representatives shall compile an initial list of legislative grant sponsors for their respective chambers and submit those compiled lists to the state budget office and the department, and the state budget office shall identify department- or state budget office-sponsored grants. The state budget director may grant an extension of this deadline of not more than 30 days on a case-by-case basis. The state budget office shall make the compiled lists public within 14 business days after the effective date of this act.

(e) Not later than 60 days after the effective date of this act, the state budget office shall publish a final list of grants requiring sponsorship. If a legislative sponsor is not identified within 60 days after the effective date of this act, the department shall do 1 of the following:

(i) Identify the department or the state budget office as the sponsor.

(ii) Decline to execute the grant agreement and lapse the

associated funds at the end of the fiscal year.

(f) At any point during the fiscal year, legislative grant sponsors may be added to a grant request.

(5) An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:

(a) All necessary identifying information for the grant recipient, including any tax and financial information for the department to administer funds under this section.

(b) A description of the project for which the grant funds will be expended, including tentative timelines and the estimated budget. The department shall not reimburse expenditures that are outside of the project purpose, as stated in the executed grant agreement, from appropriations in part 1. The grantee shall return to the treasury any interest in excess of $1,000.00 earned on the grant funds while unexpended and in possession of the grantee.

(c) Unless otherwise specified in department policy, a requirement that funds appropriated for the grants described in subsection (1) may be used only for expenditures that occur on or after the effective date of this act.

(d) A requirement for reporting by the grant recipient to the department and the legislative sponsor that provides the status of the project and an accounting of all funds expended by the grant recipient, as determined by the department.

(e) A clawback provision that allows the department of treasury to recoup or otherwise collect any funds that are declined, unspent, or otherwise misused.

(f) The signed legislative sponsorship letter required under subsection (4), incorporated into the grant agreement and included

as an appendix or attachment.

(g) If a grant recipient has provided information sufficient to execute a grant agreement, the state budget office shall promptly transmit that information to the department for the department's review of the grant application. If a grant recipient has provided information sufficient to execute a grant agreement within 60 days after the effective date of this act, but the grant application needs technical fixes or additional legislative action, as identified by the state budget office, the 60-day deadline in this subdivision is considered to have been met, if a sponsor has been identified for that grant. If a grant recipient does not provide information sufficient to execute a grant agreement not later than 60 days after being notified by the department of grant approval, the department shall return funds associated with the grant to the state treasury.

(6) If appropriate to improve the administration or oversight of a grant described in subsection (1), the department may adopt a memorandum of understanding with another state department to perform the required duties under this section.

(7) A grant recipient shall respond to all reasonable information requests from the department related to grant expenditures and retain grant records for not less than 7 years, and the grant may be subject to monitoring, site visits, and audits as determined by the department. The grant agreement required under this section must include signed assurance by the chief executive officer or other executive officer of the grant recipient that the requirements of this subsection will be met.

(8) The grant recipient shall expend all funds awarded and complete all projects not later than September 30, 2030. If at that

time any unexpended funds remain, the grant recipient shall return those funds to the state treasury.

(9) Any funds that are granted to a state department are appropriated in that department for the purpose of the intended grant.

(10) The state budget director may, on a case-by-case basis, extend the deadline in subsection (8) on request by a grant recipient if a sponsor has been identified for the grant. The state budget director shall notify the chairs of the senate and house of representatives appropriations committees not later than 5 days after an extension is granted.

(11) Not later than March 1, the state budget office shall post a report in a publicly accessible location on its website. The report must list the grant recipient, project purpose, and location of the project for each grant described in subsection (1), the status of funds allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. After March 1, the state budget office shall update the report monthly and shall post the updated report each month. The state budget office shall include in the report the most comprehensive information the office has available at the time of posting for grants awarded. The state budget office may compile the information required in this report across all departments. The department shall assist the state budget office with the compilation of the report required under this subsection.

(12) On request, beginning 75 days after the effective date of this act, the state budget office shall release information received for grant applications.

(13) As applicable, the legislative sponsor of a grant

described in subsection (1) shall not sponsor a grant, or ask another legislator to sponsor a grant, if there is a conflict of interest related to the grant recipient.

(14) If the department reasonably determines that the funds allocated for an executed grant agreement under this section were misused or that use of the funds was misrepresented by the grant recipient, the department shall not award any additional funds under the executed grant agreement and shall refer the grant for review following internal audit protocols.

Sec. 228. The state budget director shall take steps to ensure that all state fiscal recovery funds allocated to this state under the American rescue plan act of 2021, Public Law 117-2, are expended by December 31, 2026, as required by law. A department or agency receiving an appropriation under this part or part 1 must notify the standard report recipients if an appropriation of funds described under this section is projected to lapse.

Sec. 229. (1) 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.

(2) Not later than September 30, the department shall submit a report to the standard report recipients that provides all of the following:

(a) The names of those seeking reimbursements.

(b) The number of times each individual seeks a reimbursement.

INSURANCE AND FINANCIAL SERVICES REGULATION

Sec. 301. The annual health insurance rate change report

prepared pursuant to 45 CFR 154.301(b) must include the total number of objections issued by the department for health insurance filings in the report.

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, are 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 $1,000,000.00.

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 $1,000,000.00.

Sec. 304. The department must electronically transmit the annual report prepared under 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 standard report recipients at the time of the publication of the report.

Sec. 305. Not later than March 30, the department shall provide a report to the standard report recipients and the chair of the senate standing committee that addresses financial and insurance issues based on filings received from insurers for automobile insurance as that term is defined in section 2102 of the insurance code of 1956, 1956 PA 218, MCL 500.2102, in the previous calendar year that includes all of the following:

(a) The number of automobile insurance rate filings received by the department.

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

(c) Pursuant to section 2111f of the insurance code of 1956, 1956 PA 218, MCL 500.2111f, the weighted average, aggregated personal protection insurance rate change for policies subject to the coverage limits under section 3107c(1)(a) to (d) of the insurance code of 1956, 1956 PA 218, MCL 500.3107c.

(d) The number of objections issued by the department for automobile insurance filings.

Sec. 306. (1) From the funds appropriated in part 1 for consumer services and protection, the department shall expend $600,000.00 to add up to 3.0 FTEs to provide customer service outreach or education related to financial services and insurance, including automobile insurance and automobile accident care claims. At least 1.0 FTE must be trained and experienced to assist catastrophic accident survivors.

(2) Not later than September 30, the department shall submit a report to the standard report recipients and the chair of the senate standing committee that addresses financial and insurance issues that provides all of the following:

(a) The number of automobile insurance consumers assisted.

(b) The number of complaints addressed.

Sec. 308. (1) Not later than March 30, the department shall submit a plan to the standard boilerplate recipients to increase outreach, education, and support services to the public, taking into consideration demographic variables and analyzing areas of this state with the greatest needs. The department may partner with other state agencies to meet the requirements of this section. The department shall consider methods to achieve the requirements of this section, such as providing disaster relief support and identifying events and other opportunities for direct public interaction.

(2) Not later than December 1, the department shall create a plan to establish satellite offices to provide in-person services to customers. The plan must consider demographic variables and analyze areas of the state with the highest needs when choosing locations for satellite offices. The department may partner with the secretary of state to meet the requirements of this section.