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HB 5952

Worker's compensation: benefits; post-traumatic stress disorder injury fund; create. Amends 1969 PA 317 (MCL 418.101 - 418.941) by adding sec. 409.

2025-2026 Regular Session Introduced by Joey Andrews and 32 co-sponsors

Creates a dedicated state PTSD Injury Fund to finance and administer PTSD-related workers’ compensation claims with established payment priority, reporting, and oversight.

bill electronically reproduced 05/12/2026
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Bill Summary · HB 5952

Summary of HB 5952 (Michigan 2025-2026)

Main purpose

  • Create and govern a dedicated Post-Traumatic Stress Injury Fund within the state treasury to support workers’ compensation claims related to post-traumatic stress disorder (PTSD) injuries.
  • Extend the state’s workers’ disability framework to explicitly include PTSD-related injury claims funding and administration.

Key provisions and changes

  • Establishment of the PTSD Injury Fund: Sec. 409(a) creates the Post-Traumatic Stress Injury Fund in the state treasury.
  • Fund administration and management:
    • The State Treasurer will deposit assets from various sources into the fund and direct investments, with earnings credited to the fund.
    • The Director (presumably of the relevant workers’ compensation system) serves as the fund administrator for audits.
  • Authorized uses of the fund (Sec. 409(d)):
    • Payment of claims authorized under section 407 (presumably PTSD-related claims under the workers’ compensation act).
    • Payment of costs associated with administering the PTSD Injury Fund.
  • Priority and handling of insufficient funds (Sec. 409(e)):
    • If fund money is insufficient to pay approved claims, those paid claims take priority once funds become available; previously approved but unpaid claims may be paid before later-approved claims.
    • The Director must develop a notification process to inform the legislature when fund revenues may be insufficient to cover future claims, including:
    • A specific date when funds would become insufficient.
    • A clear payment order for claims pending at the time of insufficiency.
    • A clear plan for how pending claims would be paid if funds later become available.
  • Annual and periodic reporting (Sec. 409(f)–(g)):
    • By April 1 each year, the Director must submit to the State Budget Director and the Senate/House Appropriations committees:
    • Total number of PTSD fund claims received in the prior year.
    • Number of claims approved and total dollars paid in the prior year.
    • Costs of administering the PTSD Fund in the prior year.
    • By March 31 each year, the agency must report to appropriation chairs the estimated:
    • Anticipated cost of next year’s benefits for claims payable by the fund.
    • Any anticipated shortfall that would prevent payment of current-year claims.
  • Fund rights (Sec. 409(h)):
    • The PTSD Fund has the same rights under the workers’ compensation act as an employer or carrier (i.e., capable of pursuing recoveries, credits, etc., consistent with the act).
  • Trigger for enactment:
    • The act’s enactment is contingent on the passage of related Senate or House bills (an enacting clause linking to another legislative action in the 103rd Legislature).

Affected parties and scope

  • Beneficiaries: Workers with PTSD-related injuries seeking compensation under Michigan’s workers’ disability system.
  • Administrators and agencies: State Treasurer, the Director (as fund administrator), and relevant appropriations and fiscal committees.
  • Public disclosure and accountability: The bill imposes annual reporting requirements and a quarterly/public notice framework if funds risk insufficiency.

Procedural and timeline aspects

  • Effective date contingent on concurrent enactment of related bills (not yet enacted at the time of this summary).
  • Administrative reporting deadlines:
    • Annual report due by April 1 (claims, payments, administration costs).
    • Annual estimate of next year’s benefit costs and potential shortfalls due by March 31.
  • Funding priority rules apply if the fund lacks sufficient revenue to cover all approved claims, with a structured payment order once funds become available.

Potential impacts

  • Creates a dedicated, state-funded mechanism for PTSD-related workers’ compensation claims, potentially improving predictability and timeliness of PTSD benefits for injured workers.
  • Introduces financial safeguards and transparency through explicit reporting and contingency planning.
  • Establishes a formal process to notify lawmakers about potential shortfalls, enabling legislative oversight and potential budget adjustments.
  • Aligns PTSD claim administration with existing rights and procedures available to employers or carriers under the act.

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

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