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HB 5600

Appropriations: department of insurance and financial services; appropriations for fiscal year 2026-2027; provide for. Creates appropriation act.

2025-2026 Regular Session Introduced by Timmy Beson

HB 5600 sets a $100 GF/GP appropriation for the Department of Insurance and Financial Services for FY 2026-27, while adding broad reporting, transparency, and policy changes.

bill electronically reproduced 02/26/2026
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Bill Summary · HB 5600

Summary of HB 5600 (2025-2026) – Michigan

Jurisdiction: Michigan
Bill: House Bill No. 5600
Introduced: February 26, 2026 (Rep. Beson)
Committee: Appropriations

Purpose
- HB 5600 is an appropriation bill establishing the fiscal year 2026-2027 funding for the Department of Insurance and Financial Services (DIFS) and detailing how those funds may be used, consistent with Michigan’s annual appropriations process and the state constitution.

Overall funding level
- Part 1 provides a gross appropriation of $100 for the department for the fiscal year ending September 30, 2027.
- The same amount is shown as State General Fund/General Purpose (GF/GP) of $100.
- The supporting document indicates a broader FY 2026-27 funding picture in the House-submitted analysis, including restricted funds and other line items, but the bill text itself lists the appropriation as $100 GF/GP for the period.

Key provisions and changes (highlights from the bill text and accompanying analysis)
- General appropriations framework:
- Sec. 101: Establishes the department’s appropriation for the fiscal year ending Sept. 30, 2027.
- Sec. 201-202: States total state spending from state sources for the department and adherence to the Management and Budget Act (1984 PA 431).

  • Boilerplate and reporting requirements (as reflected in the bill’s general sections and accompanying fiscal notes):

    • Revisions and retention of various reporting and governance provisions (e.g., reporting on internet-based reporting; FTE reporting; contingency allowances; and in some cases, requiring specific public-facing disclosures).
    • Several provisions reflect House modifications to Executive language, including:
    • Sec. 204 (Internet Reporting) revised to require internet posting and email transmission of reports; House concurs.
    • Sec. 217 (Policy change reporting) revised to include Senate and House standing committees as recipients.
    • Sec. 220 (In-Person Work) revised to require at least 80% in-person occupancy and to report on remote work and building usage.
    • Sec. 221 (E-Verify) revised to prohibit contracting with known or suspected foreign adversaries (instead of broad E-Verify obligations).

  • Contingencies and expenditures:

    • Sec. 209 (Contingency Authorization) allows spending up to $1.0 million in state-restricted contingency and up to $200,000 in federal contingency after transfer to specific line items; the House preserves and adjusts these figures relative to Executive language.

  • Legislative directed spending and new reporting requirements:

    • Sec. 224 (New, in House) requires a department scorecard and annual strategic plan elements; introduces a framework for legislatively directed spending items and related grant administration and audits (LARA/sbo coordination, with reporting to SBO and auditor general). House includes these provisions; Executive language differs or omits.
    • Sec. 226 (Fund Use Restrictions for Non-Citizens) and Sec. 226 (Private and Third-Party Funds) emphasize transparency and restrictions on non-citizen services (the latter requires disclosure of private/third-party funds).

  • Diversity, Equity, and Inclusion:

    • Sec. 227 (NEW in House) prohibits state funds from being used for DEI initiatives or programs (a House addition not included in the Executive package).

  • Other notable provisions:

    • Sec. 251 (Insurance Bureau Fund Use) modifies allowed uses of Insurance Bureau Fund appropriations with respect to legislative participation.
    • Sec. 251-307 cover various reporting and regulatory guidance items for health insurance rate changes, annual reports, and industry examinations; many provisions reflect House retention or revision of Executive items.

Who is affected
- Primary: Department of Insurance and Financial Services (DIFS) and its operations, staffing, and budgeting.
- Sub-state entities and contractors: any contracts or grantees tied to DIFS, especially under new reporting and legislative-directed spending provisions.
- Public and stakeholders: through increased transparency requirements (public reports, scorecards, and restricted fund disclosures); potential impact on DEI-related spending (per Sec. 227).

Timeline and procedural notes
- Effective and operative dates align with the Michigan fiscal year: starting October 1, 2026, through September 30, 2027 (fiscal year 2026-27).
- The bill follows the standard appropriation process, with status: introduced and referred to Appropriations (as of the February 26, 2026 filing).
- Some provisions anticipate ongoing reporting throughout the fiscal year and annual updates (e.g., scorecards, contingency reporting, work-project accounts).

Bottom line
- HB 5600 sets a narrowly stated explicit appropriation for DIFS for FY 2026-27 in the bill text, while the accompanying fiscal analysis outlines broader funding and multiple policy changes proposed by the House, including enhanced reporting, in-person work requirements, restrictions tied to non-citizens, DEI limitations, and new legislative-directed spending processes. If enacted, the bill would shape DIFS operations, transparency measures, and compliance requirements for the upcoming fiscal year.

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

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