SB 550
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader
Senate Bill 550 (Senator Beidle, et al.)
Finance and Budget and Taxation Health and Government Operations and
Appropriations
Sheila E. Hixson Behavioral Health Services Matching Grant Program for
Service Members and Veterans – Establishment
This bill establishes the Sheila E. Hixson Behavioral Health Services Matching Grant
Program for Service Members and Veterans administered by the Maryland Department of
Health (MDH). Beginning in fiscal 2022, the Governor may include an annual
appropriation of $2.5 million for the program in the operating budget. The bill takes effect
July 1, 2021.
Fiscal Summary
State Effect: General fund expenditures increase by $2.5 million annually beginning in
FY 2022, as discussed below. Revenues are not affected.
(in dollars) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Revenues $0 $0 $0 $0 $0
GF Expenditure 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000
Net Effect ($2,500,000) ($2,500,000) ($2,500,000) ($2,500,000) ($2,500,000)
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: None.
Small Business Effect: None.
Analysis
Bill Summary: The program is established to help serve the behavioral health needs of
service members, veterans, and specified family members, based on the following
definitions:
“Eligible individual” means a service member, a veteran, or the spouse, child, or
stepchild of a service member or veteran.
“Service member” means an individual who is an active-duty member of the
U.S. Armed Forces, a reserve component of the U.S. Armed Forces, or the
National Guard of any state.
“Veteran” means a former service member who was discharged from active duty.
Sheila E. Hixon Behavioral Health Services Matching Grant Program
The program must award competitive matching grants to local nonprofit organizations to
establish and expand community behavioral health programs that (1) serve the behavioral
health needs of eligible individuals in the locality served by the nonprofit organization;
(2) meet national standards; (3) integrate the delivery of mental health and substance use
treatment; and (4) connect eligible individuals to appropriate community-based care in a
timely manner on discharge from the community behavioral health program.
Maryland Department of Health – Requirements
MDH must establish (1) selection criteria to evaluate applicant proposals, including a
positive scoring system that takes into account specified information; (2) application
procedures; (3) a statewide system of outcome measurement to assess the effectiveness and
adequacy of services provided by each nonprofit organization that receives a grant;
(4) guidelines that require a nonprofit organization that receives a grant to bill third-party
insurers or Medicaid; and (5) any other procedures necessary to implement the bill.
When awarding grants, MDH must give priority to proposals that best meet the established
selection criteria, regardless of the proposal’s projected cost.
Nonprofit Organizations – Applying for and Receiving Grants from the Program
Nonprofit organizations with a mission to provide behavioral health services or provide
services to eligible individuals are entitled to submit a proposal requesting a matching grant
from the program. An eligible nonprofit organization must secure contributions equal in
value to the amount of money requested from the program. Additionally, a nonprofit
organization that receives a grant from the program must submit any information that MDH
determines is necessary for the statewide system of outcome measurement.
Reporting Requirements
By December 1, 2023, and annually thereafter, MDH must submit a report for the most
recent fiscal year that includes the number of grants distributed, the funds distributed by
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county, information about grant recipients and the services provided through grant funding,
and outcome data reported under the statewide system of measurement.
Current Law:
Veteran and Armed Services Member Suicide Reporting
Chapters 154 and 155 of 2018 require the Secretary of Health to publish an annual report
on the suicides of veterans and members currently serving in the U.S. Armed Forces. The
report may only include specified demographic information, the nature of service, and the
method of suicide.
Maryland Veterans Service Animal Program
Chapter 416 of 2017 established the Maryland Veterans Service Animal Program. The
program is designed to refer eligible veterans to selected nonprofit organizations to be
paired with service dogs or support dogs and facilitate their training. The program has been
expanded to also encompass equine therapy. One of the stated purposes of the program is
to assist in the reduction of the Maryland veteran suicide rate.
Maryland’s Commitment to Veterans
Chapter 555 of 2008 established Maryland’s Commitment to Veterans within MDH and
administered by the Behavioral Health Administration. The program assists veterans in
coordinating comprehensive wellness and behavioral health services and directs veterans
to federal services specifically available to veterans or to State resources when no federal
services are available.
State Expenditures: General fund expenditures increase by $2.5 million annually
beginning in fiscal 2022 for the new grant program. The bill does not preclude this funding
from being used to administer the program. Previous estimates for similar legislation
advised that MDH could handle the bill’s requirements with existing resources. However,
due to the ongoing demands of the COVID-19 pandemic, the Department of Legislative
Services advises that MDH likely needs additional resources to fulfill the requirements of
the bill.
Therefore, a portion of the total funding is used by MDH to hire a grants administrator to
administer all aspects of the program and support the development of the mandated annual
report. Specifically, $58,508 of the $2.5 million is used for this purpose in fiscal 2022,
which reflects a 90-day start-up delay from the bill’s July 1, 2021 effective date. This
estimate includes a salary, fringe benefits, one-time start-up costs, ongoing operating
expenses, and residual funding being available for grant awards. After accounting for
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administrative expenses, approximately $2.44 million in fiscal 2022 is available to provide
grants to eligible nonprofit organizations.
Position 1.0
Salary and Fringe Benefits $52,927
Operating Expenses 5,581
Grant Awards 2,441,492
Total FY 2022 State Expenditures $2,500,000
Future year expenditures reflect a full salary with annual increases and employee turnover
and ongoing operating expenses. Therefore, slightly less residual funding is available for
grant awards.
Unexpended funds revert to the general fund. Funding for the program is entirely
discretionary; however, this analysis assumes the Governor appropriates the entire
$2.5 million authorized in the bill.
Additional Information
Prior Introductions: SB 904 of 2020 received a hearing in the Senate Finance and Budget
and Taxation committees, but no further action was taken. Its cross file, HB 1515, received
a hearing in the House Health and Government Operations and Appropriations committees,
but no further action was taken.
Designated Cross File: HB 872 (Delegate Charles) - Health and Government Operations
and Appropriations.
Information Source(s): Department of Budget and Management; Maryland Department
of Health; Department of Veterans Affairs; Department of Legislative Services
Fiscal Note History: First Reader - February 19, 2021
rh/jc Third Reader - March 24, 2021
Analysis by: Thomas S. Elder Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 550/ Page 4
Statutes affected: Text - First - Sheila E. Hixson Behavioral Health Services Matching Grant Program for Service Members and Veterans – Establishment: 21-257 Health General
Text - Third - Sheila E. Hixson Behavioral Health Services Matching Grant Program for Service Members and Veterans – Establishment: 21-257 Health General