POSTPONE REDUCTION IN TRAUMA SYSTEM FUNDING

House Bill 5901 as introduced

Sponsor:  Rep. Mary Whiteford

Committee:  Appropriations

Complete to 5-8-18

SUMMARY:

House Bill 5901 would amend the Crime Victim’s Rights Services Act (the Act) to postpone a 50 percent reduction in the amount of Crime Victim’s Rights Fund (the Fund) money that may be used to pay for the statewide trauma system from October 1, 2018, to October 1, 2021.

        

The Act establishes the Fund and currently authorizes 3 allowable uses of fund money:

·   First, for crime victim services. 

·   Second, amounts in excess of the necessary revenues for services may be used for crime victim compensation.

·   Third, any additional excess revenue, up to $3.5 million, that has not been used for victim compensation may be used for the statewide trauma system. However, beginning October 1, 2018, trauma system appropriations from the Fund are capped at $1,750,000 (50 percent of the $3.5 million) unless a higher amount can be shown to be proportional to crime victims’ utilization of the statewide trauma system.

Public Act (PA) 280 of 2010, the act that expanded the allowable use of the Fund to pay for the statewide trauma system reduced the maximum allowable amount by 50 percent beginning October 1, 2014.  PA 299 of 2014 later postponed the reduction by 4 years.  The bill would postpone the reduction another 3 years to October 1, 2021. 

The bill would take effect 90 days after enactment.

MCL 780.904

BACKGROUND:

PAs 580, 581, and 582 of 2004 established the statewide trauma care system which is defined as “a comprehensive and integrated arrangement of the emergency services personnel, facilities, equipment, services, communications, medical control authorities, and organizations necessary to provide trauma care to all patients within a particular geographic region”.

The bill package and subsequently adopted administrative rules require the Department of Health and Human Services to do all of the following:

·         Establish regional trauma networks statewide and ensure coordination of performance of the networks. 

·         Establish minimum standards for system performance and trauma patient care. 

·         Establish a comprehensive data collection system.

·         Develop processes for designation of trauma facilities, verification of trauma resources, approval of regional trauma triage protocols, evaluation of trauma system effectiveness, trauma system performance improvement, monitoring of the statewide trauma system, and other functions.

FISCAL IMPACT:

The bill would allow for the continuation of current funding of $3.5 million appropriated for the statewide trauma system in the Department of Health and Human Services budget. There is a sufficient balance in the Crime Victim's Rights Fund to continue the use of up to $3.5 million for the statewide trauma system, in addition to funding priority crime victim services and compensation.

The Crime Victim's Rights Fund receives sufficient revenue to fully fund all purposes listed above which are currently budgeted at a total of $19.7 million.  The balance in the Fund at the end of FY 2016-17 was $30.0 million, and the estimated balance anticipated at the end of FY 2017-18 after expenditures is $31.4 million.  Revenue for the Fund comes from fees assessed on individuals convicted of felonies and misdemeanors.

 

                                                                                                Fiscal Analyst:   Susan Frey

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.