TRAUMA SYSTEM FUNDING                                                                           H.B. 5901:

                                                                                                    SUMMARY OF BILL

REPORTED FROM COMMITTEE

House Bill 5901 (as reported without amendment)

Sponsor:  Representative Mary Whiteford

House Committee:  Appropriations

Senate Committee:  Appropriations

CONTENT

The bill would amend Public Act 196 of 1989, which created the Crime Victim's Rights Fund, to delay the date that triggers a reduction in spending authorization from the Fund for a statewide trauma system.

The Act establishes the Crime Victim's Rights Fund and authorizes the uses of Fund money. After revenue needed to pay for crime victim's rights services is spent, the Fund may be used to provide compensation to crime victims under the Crime Victim's Compensation Act. Public Act 280 of 2010 directed that up to $3.5 million in excess Crime Victim's Rights Fund revenue be used to establish and maintain a statewide trauma system, including staff support associated with trauma and related emergency medical services program activities.

Beginning October 1, 2018, the amount spent from the Fund for the statewide trauma system may not exceed $1.75 million, or 50% of the maximum allowed under that provision, unless the amount spent is reasonably proportional to crime victims' use of the system. The bill would delay the date lowering the amount authorized for the system by three years, from October 1, 2018, to October 1, 2021.

MCL 780.904

FISCAL IMPACT

There is sufficient revenue in the Crime Victim's Rights Fund to continue current programming unrelated to the trauma system (about $16.9 million) and fund the trauma system at $3.5 million. The balance in the Crime Victim's Rights Fund at the end of FY 2016-17 was $30.0 million, and the estimated balance anticipated at the end of FY 2017-18 is $31.4 million. Therefore, while the bill would limit the ability of the State to expand other programming funded with Crime Victim's Rights Fund revenue, it would not result in the need for any programmatic reductions.

Date Completed:  5-24-18                                                 Fiscal Analyst:  Ellyn Ackerman

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.