FY 2024-25: INSURANCE AND FINANCIAL SERVICES
Summary: As Passed by the House
House Bill 5513 (H-2)
Analyst: Marcus Coffin
Difference: House
FY 2023-24 From FY 2023-24
Enacted FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25 Enacted
as of 2/7/24 Executive House Senate Conference Amount %
IDG/IDT $732,100 $753,500 $753,500 $21,400 2.9
Federal 1,017,100 700,000 700,000 (317,100) (31.2)
Local 0 0 0 0 --
Private 0 0 0 0 --
Restricted 72,398,700 76,317,900 76,317,900 3,919,200 5.4
GF/GP 0 0 0 0 --
Gross $74,147,900 $77,771,400 $77,771,400 $3,623,500 4.9
FTEs 394.5 401.5 401.5 7.0 1.8
Note: Appropriation figures for FY 2024-25 include all proposed appropriation amounts, including amounts designated as "one-
time."
Overview
The Department of Insurance and Financial Services (DIFS) is responsible for regulating and promoting the insurance
and financial services industries operating within this state. The department also provides consumer protection by
managing consumer information and inquiries and investigating consumer complaints. DIFS administers and enforces
state statutes pertaining to state-chartered banks and credit unions; mortgage brokers, lenders, and servicers; consumer
finance entities; insurance companies, agents, and products; and health maintenance organizations.
FY 2023-24 FY 2024-25
Enacted House
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
1. Staffing Increase FTE 225.0 7.0
Executive includes $1.3 million Gross ($0 GF/GP) and authorization for Gross $38,672,500 $1,314,100
7.0 FTE positions to hire additional staff to address increased work IDG/IDT 61,600 2,800
volumes due to insurance sector growth. This increase would impact two Federal 1,017,100 0
line items and the additional staff that would be hired includes 2 analyst Restricted 37,593,800 1,311,300
positions, 2 management positions, 1 licensing technician, 1 GF/GP $0 $0
enforcement attorney, and 1 communications representative. The
funding would support salaries and benefits associated with the FTE
positions, as well as IT licenses that would be necessary for the new
positions. House concurs.
2. Pharmacy Benefit Manager Licensure and Registration Act Gross NA $660,000
Executive includes $660,000 of state restricted funding authorization Restricted NA 660,000
from the Insurance Bureau Fund to support regulatory activities related GF/GP NA $0
to pharmacy benefit managers required under 2022 PA 11. House
concurs.
3. Insurance Complaints and Healthcare Appeals Outreach Gross $0 $250,000
Campaign Restricted 0 250,000
Executive includes $250,000 of state restricted funding authorization GF/GP $0 $0
from Insurance Licensing and Regulation Fees (one-time) to support an
outreach campaign to raise awareness of consumer rights regarding
filing insurance complaints and seeking appeals of health insurance
denials. These rights are established under the Insurance Code of 1956
(1956 PA 218) and the Patient's Right to Independent Review Act (2000
PA 251). It is anticipated that funding would be used for media purchases
(billboards, TV, radio, social media, etc.) and contracted production
services. House concurs.
House Fiscal Agency 1 5/10/2024
 FY 2023-24 FY 2024-25
Enacted House
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
4. Technical Adjustments Gross NA $0
Executive includes internal FTE adjustments, funding adjustments, and Federal NA (317,100)
transfers throughout the budget, which have no overall impact on Gross, Restricted NA 317,100
GF/GP, or FTE position authorization. Adjustments are made to reflect GF/GP NA $0
employee counts more accurately and to align funding authorization with
revenue received and department operations and activities. House
concurs.
5. Economic Adjustments Gross NA $1,399,400
Executive reflects increased costs of $1.4 million Gross ($0 GF/GP) for IDG/IDT NA 18,600
negotiated salary and wage increases (5.0% on October 1, 2024), Restricted NA 1,380,800
insurances, actuarially required retirement contributions, worker's GF/GP NA $0
compensation, building occupancy charges, and other economic
adjustments. House concurs.
Major Boilerplate Changes from FY 2023-24
Note: Boilerplate throughout the bill was revised to include non-substantive technical changes agreed to by the
House, the Senate, and the Legislative Service Bureau. Boilerplate section numbers listed in this document are
section numbers as they appear in the House bill substitute.
Sec. 206. Communication With the Legislature – RETAINED
Prohibits DIFS from taking disciplinary action against employees for communicating with legislators or their staff, unless
the communication is prohibited by law. Executive deletes. House retains.
Sec. 210. Legislative Contingency Transfer Authorization – RETAINED
Allows for the legislative transfer process to increase federal authorization by up to $200,000 and state restricted
authorization by up to $1.0 million. Executive revises to increase maximum amounts of contingency authorizations to
increase federal authorization by up to $1.0 million and state restricted authorization by up to $5.0 million. House retains.
Sec. 211. Transparency Website – RETAINED
Requires DIFS to cooperate with DTMB to maintain a searchable website accessible by the public at no cost that includes
information on expenditures, vendor payments, number of active employees, job specifications, and wage rates.
Executive deletes. House retains.
Sec. 212. State Restricted Funds Report – RETAINED
Requires DIFS to work with SBO to report on estimated restricted fund revenues, expenditures, and balances for the prior
two fiscal years. Executive deletes. House retains.
Sec. 214. Department Website Information – DELETED
Requires DIFS to maintain, on a publicly accessible website, information that identifies, tracks, and regularly updates key
metrics used to monitor and improve department performance. Executive and House delete.
Sec. 215. FTE Positions and Vacancies Reports – RETAINED
Requires DIFS to submit quarterly reports containing FTE volumes and a comparison of actual and authorized FTE
position counts. Executive revises to delete reporting on FTE volumes. House retains.
Sec. 216. In-Person Work – RETAINED
Expresses legislative intent that DIFS maximize the efficiency of the state workforce, prioritize in-person work where
possible, and post its in-person, remote, or hybrid work policy on its website. Executive deletes. House retains.
Sec. 217. Retention of Reports – RETAINED
Requires DIFS to receive and retain copies of all reports funded by the department's budget, while complying with federal
and state guidelines for records retention. Executive deletes. House retains.
Sec. 218. State Administrative Board Transfers – DELETED
Stipulates that the legislature may inter-transfer funds via concurrent resolution if the State Administrative Board transfers
funds. Executive and House delete.
Sec. 218. Report on Policy Changes for Public Act Implementation – RETAINED
Requires DIFS to report on policy changes made to implement public acts that took effect during the prior calendar year.
Executive deletes. House retains.
House Fiscal Agency 2 5/10/2024
Major Boilerplate Changes from FY 2023-24
Sec. 219. Work Project Usage – RETAINED
Stipulates that appropriations are not to be expended, if possible, until all existing work project authorization for the same
purpose is exhausted. Executive deletes. House retains.
Sec. 221. Severance Pay Reporting – DELETED
Requires DIFS to report any severance pay for a director or other high-ranking official not later than 14 days after a
severance agreement is signed; requires report on total amount of severance pay remitted and number of DIFS
employees receiving severance pay in FY 2022-23. Executive and House delete.
Sec. 221. Television and Radio Production Expenditure Report – RETAINED
Requires DIFS to report any expenditure of funds to a third-party vendor for television or radio productions; delineates
information to be included. Executive deletes. House retains.
Sec. 301. Health Insurance Rate Change Report – RETAINED
Requires DIFS to electronically transmit the annual health insurance rate change report prepared pursuant to 45 CFR
154.301(b). Executive deletes. House retains.
Sec. 302. Conservatorship and Insurance Liquidation Funds – REVISED
Requires funds collected by DIFS in connection with a conservatorship pursuant to section 32 of 1987 PA 173 and from
corporations being liquidated pursuant to 1956 PA 218 to be appropriated for expenses necessary to provide required
services and to not lapse to General Fund; limits appropriations to $1.0 million. Executive and House revise to remove
the $1.0 million cap.
Sec. 303. Fees for Customized Listings – REVISED
Permits DIFS to provide customized lists of non-confidential information to interested parties and to charge reasonable
fees; requires funds to lapse to appropriate restricted fund accounts and limits amount appropriated to $1.0 million.
Revises to remove the $1.0 million cap. Executive and House revise to remove the $1.0 million cap.
Sec. 304. Annual Reports Transmission – RETAINED
Requires DIFS to electronically transmit the annual report required under the Insurance Code of 1956 and the Banking
Code of 1999. Executive deletes. House retains.
Sec. 305. Financial Institutions Marihuana Evaluation Guidance – RETAINED
Requires DIFS to update examination manuals and letters of guidance for institutions providing financial services to
businesses involved in the marihuana industry to reflect how those institutions will be evaluated. Executive deletes.
House retains.
House Fiscal Agency 3 5/10/2024