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Signed Into Law
Signed May 29, 2025Effective 2025-09-01
SB1018

Regular Session

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

Government Affairs & Regulatory Compliance Analysis

SB1018: Government Affairs Overview

Senate Bill 1018 mandates a statutory reallocation of state traffic fine revenue effective September 1, 2025, shifting the split from a 70/30 allocation to a 50/50 allocation between the General Revenue Fund and the Designated Trauma Facility and EMS Account. This legislation does not increase traffic fines or create new penalties for fleet operators; however, it creates a projected $16 million annual funding increase for trauma facilities and EMS providers while potentially reducing "overflow" revenue available for the Texas Mobility Fund.

Sen. Joan Huffman·Senate Bill·Regular Session

Low
Low Cost
Effective:2025-09-01
Business Impact

Who SB1018 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: low

Standard regulatory changes (effective 2025-09-01). Review during normal business planning.

🏥

Healthcare

Affected business types:

  • Hospitals
  • Healthcare systems
  • Medical practices
  • Health insurance providers
View all healthcare legislation
🚛

Transportation

Affected business types:

  • Trucking companies
  • Towing operators
  • Fleet operators
  • Logistics providers
View all transportation legislation

Key Operational Considerations

  • 1Physician 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.
  • 2General Industry: No changes required.
  • 3Healthcare Finance Directors: Staff must update revenue forecasting models to reflect the 20% increase in the allocation percentage of traffic fine revenue.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SB1018
Low
Relating to distribution of state traffic fine revenue received by the comptroller.
Low Compliance Urgency
Requires routine attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
Comptroller of Public Accounts
Primary Author: Sen. Joan Huffman
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: September 1, 2025 (State Comptroller implementation). For healthcare grant recipients, fiscal impact will materialize in Q1/Q2 2026 as funds accumulate.
  • Agency Rulemaking: The Department of State Health Services (DSHS) is not strictly required to write new rules but is expected to issue guidance regarding the disbursement of the additional ~$16 million annual surplus in Account 5111. Watch for Texas Register notices in Q4 2025.

Immediate Action Plan

  • 1. Fleet Operators: Issue a memo to operations leadership confirming that traffic fine liabilities remain unchanged for FY2026.
  • 2. Trauma Centers/Hospitals: Direct the CFO to adjust FY2026 revenue projections to account for an approximate proportional share of the $15M-$16M statewide increase.
  • 3. EMS Providers: Assign a compliance officer to monitor DSHS announcements in late 2025 for supplemental grant application windows.
  • 4. Road Contractors: Review backlog and projected state lettings; anticipate minor tightening in Texas Mobility Fund availability.

Operational Changes Required

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.

Strategic Ambiguities & Considerations

  • The Mobility Fund "Overflow" Trap: Under current law, once the General Revenue portion of traffic fines hits $250 million, the excess flows to the Texas Mobility Fund. By reducing the General Revenue share from 70% to 50%, it will take significantly longer to reach that $250 million cap. Infrastructure contractors should note that this mathematically reduces or delays the liquidity flowing into the Texas Mobility Fund from this revenue stream, potentially impacting future road project lettings.
  • Disbursement Prioritization: The law increases the *amount* of money but does not mandate how DSHS prioritizes the *new* surplus. It is unclear if DSHS will apply the existing distribution formula or create a new grant tier for rural vs. urban trauma centers.

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JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Jan 30, 2025
Passed Senate
Mar 26, 2025
Passed House
May 20, 2025
Signed
May 29, 2025
Effective
Sep 1, 2025
TopicsHealthHealth--emergency Services & PersonnelState FinancesState Finances--management & ControlVehicles & TrafficVehicles & Traffic--rules of RoadComptroller of Public AccountsFees & Other Nontax RevenueFees & Other Nontax Revenue--state
03

Senate Authors

Sen. Joan HuffmanRepublican · Primary Author
Coauthors (3)

House Sponsor

Rep. Greg BonnenRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about SB1018

Q

What does Texas SB1018 do?

Senate Bill 1018 mandates a statutory reallocation of state traffic fine revenue effective September 1, 2025, shifting the split from a 70/30 allocation to a 50/50 allocation between the General Revenue Fund and the Designated Trauma Facility and EMS Account. This legislation does not increase traffic fines or create new penalties for fleet operators; however, it creates a projected $16 million annual funding increase for trauma facilities and EMS providers while potentially reducing "overflow" revenue available for the Texas Mobility Fund.

Q

Who authored SB1018?

SB1018 was authored by Texas Senator Joan Huffman during the Regular Session.

Q

When was SB1018 signed into law?

SB1018 was signed into law by Governor Greg Abbott on May 29, 2025.

Q

Which agencies enforce SB1018?

SB1018 is enforced by Comptroller of Public Accounts.

Q

How significant are the changes in SB1018?

The regulatory priority for SB1018 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB1018?

The cost impact of SB1018 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB1018 address?

SB1018 addresses topics including health, health--emergency services & personnel, state finances, state finances--management & control and vehicles & traffic.

Q

What are the key dates for SB1018?

Key dates for SB1018: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by SB1018?

SB1018 primarily affects healthcare providers and medical facilities. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026