FY 2024-25: INSURANCE AND FINANCIAL SERVICES
Summary: As Passed by the Senate
Senate Bill 765 (S-2)
Analyst: Marcus Coffin
Difference: Senate
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 $753,500 $21,400 2.9
Federal 1,017,100 700,000 700,000 700,000 (317,100) (31.2)
Local 0 0 0 0 0 --
Private 0 0 0 0 0 --
Restricted 72,398,700 76,317,900 76,317,900 77,817,900 5,419,200 7.5
GF/GP 0 0 0 0 0 --
Gross $74,147,900 $77,771,400 $77,771,400 $79,271,400 $5,123,500 6.9
FTEs 394.5 401.5 401.5 406.5 12.0 3.0
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 Senate
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 and Senate concur.
2. Customer Service for Auto Insurance and Auto Accident FTE NA 5.0
Survivors Gross NA $1,500,000
Senate includes $1.5 million of state restricted funding authorization Restricted NA 1,500,000
from the Insurance Bureau Fund and authorization for 5.0 FTE positions GF/GP NA $0
to provide customer service related to auto insurance and for auto
accident care claimants.
3. 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 and
Senate concur.
4. Auto Insurance Reform Study Gross $0 $250,000
Senate includes $250,000 of state restricted funding authorization from Restricted 0 250,000
Insurance Licensing and Regulation Fees (one-time) to contract with a GF/GP $0 $0
university or research institute to study the effects of the 2019 auto no-
fault insurance reforms.
House Fiscal Agency 1 6/19/2024
 FY 2023-24 FY 2024-25
Enacted Senate
Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
5. Insurance Complaints and Healthcare Appeals Outreach Gross $0 $0
Campaign Restricted 0 0
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. Senate does not include.
6. 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 and
Senate concur.
7. 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 and Senate concur.
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 Senate bill.
Sec. 207. 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 and Senate retain.
Sec. 209. Hiring of External Legal Counsel – REVISED
Prohibits using appropriations to hire a person to provide legal services that are the responsibility of the attorney general;
prohibition does not apply to legal services for bonding activities or services authorized by attorney general. Executive
and House revise to include different stylistic changes. Senate revises to include stylistic changes and to allow the
Department of Attorney General to assess penalties for late payments for legal services provided to DIFS.
Sec. 211. 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 and
Senate retain.
Sec. 212. 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 and Senate retain.
Sec. 213. 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 and Senate retain.
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, House, and Senate delete.
House Fiscal Agency 2 6/19/2024
Major Boilerplate Changes from FY 2023-24
Sec. 216. FTE Positions and Vacancies Reports – REVISED
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. Senate revises to include detailed
reporting on vacant positions.
Sec. 217. Work Project Usage – DELETED
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. Senate deletes.
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, House, and Senate delete.
Sec. 219. 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 and Senate retain.
Sec. 220. 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 and Senate retain.
Sec. 221. Severance Pay Reporting – RETAINED
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. Senate retains.
Sec. 222. In-Person Work – DELETED
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. Senate
deletes.
Sec. 225. Television and Radio Production Expenditure Report – DELETED
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. Senate deletes.
Sec. 301. Health Insurance Rate Change Report – REVISED
Requires DIFS to electronically transmit the annual health insurance rate change report prepared pursuant to 45 CFR
154.301(b). Executive deletes. House retains. Senate revises to require a report on heath insurer annual rate filings
and details reporting requirements.
Sec. 302. Conservatorship and Insurance Liquidation Funds – RETAINED
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. Senate retains.
Sec. 303. Fees for Customized Listings – RETAINED
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. Senate retains.
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 and Senate retain.
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 and Senate retain.
Sec. 306. Auto Insurance Rate Filings Report – NEW
Requires DIFS to report on auto insurer annual rate filings, including the number of approvals and denials, processing
times, justifications for rate filing approvals, and the average change in rates. Executive and House do not include.
Senate includes new language.
House Fiscal Agency 3 6/19/2024
Major Boilerplate Changes from FY 2023-24
Sec. 307. Auto Insurance and Auto Accident Care Customer Service – NEW
Requires DIFS to expend $1.5 million and allocate 5.0 FTEs to provide customer service to auto insurance and auto
accident care claimants, with at least 1.0 FTE designated to assist catastrophic auto accident survivors. Executive and
House do not include. Senate includes new language.
Sec. 308. Satellite Offices – NEW
Requires DIFS to create a plan to establish satellite offices to provide in-person services, provides criteria DIFS must
consider when choosing satellite office locations, and allows DIFS to partner with the Secretary of State. Executive and
House do not include. Senate includes new language.
Sec. 401. Auto Insurance Reform Study – NEW
Requires DIFS to contract with a university or research institute to conduct a study of the effects of the 2019 auto no-fault
insurance reforms. Executive and House do not include. Senate includes new language.
Sec. 402. Insulin Market Study – NEW
Requires DIFS to conduct a study of the insulin market and to submit recommendations to lower the price of insulin;
requires the study to include information and data regarding insurers, pharmacy benefit managers, pharmacies, insulin
consumers, and any other relevant stakeholders. Executive and House do not include. Senate includes new language.
House Fiscal Agency 4 6/19/2024