Relating to distribution of state traffic fine revenue received by the comptroller.

Contracts

• Trauma Facilities & EMS Providers: Review existing state grant agreements and vendor contracts with DSHS. If your funding is formula-based under Health and Safety Code Section 780.003, anticipate amendments to disbursement schedules for FY2026.
• Physician Groups: Hospitals should review on-call trauma surgeon agreements. Increased state subsidies for uncompensated trauma care may impact Fair Market Value (FMV) calculations for stipends.
• General Industry: No changes required.

Hiring/Training

• Healthcare Finance Directors: Staff must update revenue forecasting models to reflect the 20% increase in the allocation percentage of traffic fine revenue.
• Fleet Managers: Do not alter driver training regarding fine amounts. Explicitly inform management that this bill is an internal state accounting shift and does not justify increased budget allocations for traffic violations.

Reporting & Record-Keeping

• Grant Utilization (Healthcare Only): Recipients of the increased Account 5111 funds must maintain strict segregation of duties and reporting to prove funds are used solely for uncompensated trauma care and EMS services, as DSHS audit scrutiny will likely increase with the funding volume.

Fees & Costs

• Traffic Fines: No change. The cost of a citation remains static.
• Insurance Premiums: Alert your risk management teams: Insurance carriers should not use SB1018 as a justification for rate increases, as the statutory liability and penalty costs have not changed.