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HB 5513

Appropriations: department of insurance and financial services; appropriations for fiscal year 2024-2025; provide for. Creates appropriation act.

2023-2024 Regular Session Introduced by Phil Skaggs and 1 co-sponsor

Funds and staffing to operate DIFS for FY 2024-25, including regulatory enforcement, a small net FTE increase, and targeted outreach and reporting requirements.

roll call Roll Call # 130 Yeas 51 Nays 55 Excused 0 Not Voting 4
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Bill Summary · HB 5513

Summary — HB 5513 (Substitute H‑2)

A bill to appropriate funds for the Michigan Department of Insurance and Financial Services (DIFS) for FY 2024‑25 (fiscal year ending September 30, 2025) and to set terms for expenditure and reporting.

Main purpose

Provide line‑item and restricted fund appropriations to operate DIFS during FY 2024‑25, including funding for regulation/enforcement of insurance and financial services, limited staffing increases, one‑time outreach, and related administrative and reporting requirements.

Key fiscal provisions and figures

  • Total gross appropriation (House substitute): $77,771,400.
  • State spending from state sources (per bill): $76,317,900.
  • Authorized positions: increases from 394.5 FTE to 401.5 FTE (net +7.0 FTE).
  • Major line items (House substitute):
    • Insurance & Financial Services Regulation: $67,588,100 (majority funded by various restricted fees).
    • Departmental Administration & Support: ~$7.56 million.
    • Information Technology: $2,369,100.
  • Staffing increase: $1,314,100 gross authorization to hire 7 FTE (2 analysts, 2 management, 1 licensing technician, 1 enforcement attorney, 1 communications rep). Funding covers salaries/benefits and IT licenses.
  • Pharmacy Benefit Manager (PBM) regulation: $660,000 state restricted authorization (Insurance Bureau Fund) to support PBM regulatory activities required under earlier law (2022 PA 11).
  • One‑time outreach: $250,000 (state restricted; Insurance Licensing & Regulation Fees) for a media campaign to raise consumer awareness of insurance complaint processes and health plan appeals/review rights.
  • Economic adjustments: ~$1.4 million gross for negotiated wage increases (5.0% on Oct 1, 2024) and other inflationary costs.
  • Technical adjustments: net reductions and federal transfers (e.g., -$317,100 in one area).

Policy/administrative provisions (boilerplate highlights)

  • Prohibits disciplinary action against DIFS employees for communicating with legislators (Sec. 206).
  • Requires transparency/reporting: searchable expenditure/employee data cooperation, quarterly FTE/vacancy reports, retention of reports, and an annual out‑of‑state travel expenses report (due Jan. 1).
  • Legislative contingency transfer authorization retained (limits for increases in federal and state restricted authorizations).
  • Prohibits using DIFS appropriations to hire attorneys for services that are the responsibility of the Attorney General (with limited exceptions).

Who is affected

  • DIFS operations and staffing.
  • Regulated entities: insurers, state‑chartered banks/credit unions, mortgage brokers/lenders/servicers, consumer finance entities, PBMs (via enhanced regulatory resources).
  • Consumers: expected benefit from outreach about complaint and appeal rights and from increased regulatory capacity.

Timeline and legislative status (selected actions)

  • Introduced (House): Feb 22, 2024 (Rep. Phil Skaggs).
  • House substitute (H‑2) adopted and passed House: May 8, 2024 (Roll Call #75 — Yeas 56, Nays 49).
  • Senate substitute/consideration and subsequent actions recorded (including roll calls and committee reports); most recent committee report entries dated May 12, 2025.
  • The bill contains provisions for FY 2024‑25 (ending Sept. 30, 2025).

Note: Multiple versions and substitutes (H‑2, S‑1) and subsequent committee activity are reflected in the legislative history; readers should consult the legislative docket for the current enactment/conference status.

Compiled from official sources — confirm details with the bill’s official record.

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