FY 2023-24: INSURANCE AND FINANCIAL SERVICES
Summary: As Passed by the House
House Bill 4281 (H-1)
Analyst: Marcus Coffin
Difference: House
FY 2022-23 YTD FY 2023-24 FY 2023-24 FY 2023-24 FY 2023-24 From FY 2022-23 YTD
as of 2/8/23 Executive House Senate Conference Amount %
IDG/IDT $736,500 $732,100 $732,100 ($4,400) (0.6)
Federal 1,017,100 1,017,100 1,017,100 0 0.0
Local 0 0 0 0 --
Private 0 0 0 0 --
Restricted 72,581,900 72,398,700 72,398,700 (183,200) (0.3)
GF/GP 0 0 500,000 500,000 --
Gross $74,335,500 $74,147,900 $74,647,900 $312,400 0.4
FTEs 390.5 390.5 390.5 0.0 0.0
Notes: (1) FY 2022-23 year-to-date figures include mid-year budget adjustments through February 8, 2023. (2) Appropriation
figures for all years 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 the 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 2022-23 FY 2023-24
Year-to-Date House
Major Budget Changes from FY 2022-23 YTD Appropriations (as of 2/8/23) Change
1. Insulin Prescription Drug Market Study Gross NA $500,000
House includes $500,000 GF/GP (one-time) to conduct a study GF/GP NA $500,000
assessing Michigan’s insulin market and opportunities to reduce the
price of insulin for consumers. The study would collect information and
data from insurers, pharmacy benefit managers, pharmacies, insulin
consumers, and other relevant stakeholders involved in the insulin
market.
2. Economic Adjustments Gross NA ($187,600)
Executive reflects decreased net costs of $187,600 Gross ($0 GF/GP) IDG/IDT NA (4,400)
for negotiated salary and wage increases (2.0% on October 1, 2023), Restricted NA (183,200)
overtime, longevity, actuarially required retirement contributions, other GF/GP NA $0
employee retirement costs, building occupancy charges, and other
economic adjustments. House concurs.
Major Boilerplate Changes from FY 2022-23
Sec. 205. Standard List of Report Recipients – NEW
Requires submission of all reports to the subcommittees, the senate and house fiscal agencies, the senate and house
policy offices, and the state budget office. Executive does not include. House includes new language.
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 retains.
House Fiscal Agency 1 5/23/2023
Major Boilerplate Changes from FY 2022-23
Sec. 211. Legislative Contingency Transfer Authorization – REVISED
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 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.
Sec. 212. Transparency Website – RETAINED
Requires DIFS, in cooperation with DTMB, to maintain a searchable website accessible by 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. 213. Restricted Fund Report – REVISED
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 revises to align report recipients with section 205.
Sec. 214. Legacy Costs – DELETED
States that estimated funding to be expended on legacy costs in FY 2022-23 is $8.9 million ($5.4 million on pension
related legacy costs and $3.5 million on health care legacy costs). Executive deletes. House deletes.
Sec. 214. Department Scorecard Website – RETAINED
Requires DIFS to maintain, on a publicly accessible website, a scorecard that identifies, tracks, and regularly updates key
metrics used to monitor and improve department performance. Executive deletes. House retains.
Sec. 216. FTE Vacancies and Remote Work Reports – REVISED
Requires DIFS to submit quarterly reports containing FTE volumes and a comparison of actual and authorized FTE
position counts; requires an annual report on the number of employees engaged in remote work in 2022, number of
employees authorized to work remotely and the actual number working remotely, and estimated net cost savings and
reduced use of office space achieved by remote work. Executive revises to delete all reporting requirements except for
quarterly comparison of actual and authorized FTEs. House revises to delete all reporting requirements except for
quarterly comparison of actual and authorized FTEs.
Sec. 217. 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. 218. State Administrative Board Transfers – DELETED
Stipulates that the legislature may intertransfer funds via concurrent resolution if the State Administrative Board transfers
funds. Executive deletes. House deletes.
Sec. 218. 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. 219. Report on Policy Changes for Public Act Implementation – REVISED
Requires DIFS to report on policy changes made to implement public acts that took effect during the prior calendar year.
Executive deletes. House revises to align report recipients with section 205.
Sec. 220. Severance Pay Reporting – REVISED
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; maintain an internet site posting any severance pay in excess of 6 weeks of wages;
report the total amount of severance pay remitted and the number of DIFS employees receiving severance pay in FY
2021-22. Executive deletes. House revises to align report recipients with section 205, delete the requirement to maintain
an internet site posting any severance pay in excess of 6 weeks of wages, and update fiscal year references.
Sec. 221. In-Person Work – RETAINED
Expresses legislative intent that DIFS maximize the efficiency of the state workforce and prioritize in-person work where
possible; requires DIFS to post its in-person, remote, or hybrid work policy on its website. Executive deletes. House
retains.
House Fiscal Agency 2 5/23/2023
Major Boilerplate Changes from FY 2022-23
Sec. 222. COVID-19 Vaccine Stipulations – DELETED
Prohibits requiring proof of having received a COVID-19 vaccine as a condition of accessing any facility or services,
except as required by federal law; prohibits producing, developing, issuing, or requiring a COVID-19 vaccine passport;
prohibits developing a database or making an existing database publicly available to access an individual’s COVID-19
vaccine status; prohibits requiring proof of having received a COVID-19 vaccine as a condition of employment, with
exceptions for hospitals and medical facilities; prohibits adverse employment consequences due to an individual’s COVID-
19 vaccination status; requires that exemptions be created for individuals who medically cannot receive the vaccine or
who have religious or consistently held objections to vaccination if a federal mandate requires establishment of a COVID-
19 vaccine policy. Executive deletes. House deletes.
Sec. 222. Access to State and Local Services – NEW
Prohibits appropriations from being used to restrict or interfere with actions related to diversity, equity, and inclusion; to
restrict or impede community access to government programs; or restrict an individual’s ability to exercise the right to
reproductive freedom; requires local governments to report on actions that attempt to restrict duties of local health officers.
Executive includes new language. House includes new language.
Sec. 224. Insurance Bureau Fund Use – RETAINED
Authorizes Insurance Bureau Fund appropriations for use to support legislative participation in insurance activities
coordinated by insurance and legislative associations, in accordance with the Insurance Code of 1956. Executive deletes.
House retains.
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 deletes.
Sec. 301. Health Insurers Rate Filings Report – REVISED
Requires DIFS to submit a report based on health insurer annual rate filings; delineates information to be included.
Executive deletes. House revises to align report recipients with section 205.
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 $400,000. Executive revises to remove the $400,000
cap. House revises to increase the cap to $1,000,000.
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 $400,000.
Executive revises to remove the $400,000 cap. House revises to increase the cap to $1,000,000.
Sec. 304. Annual Reports Transmission – REVISED
Requires DIFS to electronically transmit specific annual reports required under the Insurance Code of 1956 and the
Banking Code of 1999. Executive deletes. House revises to align report recipients with section 205.
Sec. 305. Financial Institutions Marijuana Evaluation Guidance – RETAINED
Requires DIFS to update examination manuals and letters of guidance for institutions providing financial services to
businesses involved in the marijuana industry to reflect how those institutions will be evaluated. Executive deletes. House
retains.
Sec. 306. State or Regional Health Care Claims Database Grant Award Criteria – DELETED
Requires DIFS to consider not-for-profit and Michigan-based status, prior experience collecting and analyzing relevant
information, and prior work experiences when awarding any grant for the creation of a state or regional health care claims
database utilizing federal funds. Executive deletes. House deletes.
Sec. 401. Insulin Prescription Drug 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 does not include. House includes new language.
House Fiscal Agency 3 5/23/2023