SOUTH CAROLINA REVENUE AND FISCAL AFFAIRS OFFICE
S
TATEMENT OF ESTIMATED FISCAL IMPACT
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This fiscal impact statement is produced in compliance with the South Carolina Code of Laws and House and Senate rules. The focus of
the analysis is on governmental expenditure and revenue impacts and may not provide a comprehensive summary of the legislation.
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S. 0002
Fiscal Impact Summary
Sections 1 – 14 and Sections 25 – 28 of this bill restructure the current mental health agencies by
creating the Department of Behavioral Health and Developmental Disabilities (DBHDD) in FY
2025-26. This department will consist of the Office of Intellectual and Developmental
Disabilities (OIDD), the Office of Mental Health (OMH), and the Office of Substance Abuse
Services (OSAS). The Department of Alcohol and Other Drug Abuse Servies (DAODAS), the
Department of Disabilities and Special Needs (DDSN), and the Department of Mental Health
(DMH) will dissolve, and all existing FTEs and appropriated funds of these agencies will move
to the appropriate office within DBHDD. All applicable bonded indebtedness, real and personal
property, assets, liabilities, contracts, regulations, or policies of DDSN, DMH, or DAODAS will
continue in effect in the name of the DBHDD or the appropriate component division. The
Department of Administration (Admin) will assist with the transfer of operating expenses and
any other such transfers as specified in this bill. Further, the bill makes conforming changes
throughout the code to reflect the newly formed department and offices.
DDSN anticipates a one-time expense of less than $100,000 in FY 2025-26 related to changing
the department name and logo that can be managed within existing appropriations. Additionally,
dependent upon any additional responsibilities that may arise due to the restructuring, DDSN
anticipates this bill may have an additional undetermined expenditure impact beginning in FY
2025-26.
DMH anticipates that this bill will result in an undetermined expenditure impact in FY 2025-26
as this bill would likely affect the overall SCEIS master data structure, organizational workflows,
systematic program workflows, such as procurement authority and budget authorization, and
additional changes needed for contractual agreements held by DMH. DMH also anticipates a
potential increase in expenditures due to this bill, dependent upon any additional responsibilities
that may arise due to the restructuring.
Dependent upon any additional responsibilities that may arise due to the restructuring, DAODAS
anticipates this bill may have an additional undetermined expenditure impact beginning in FY
2025-26
Admin anticipates that any costs associated with this bill can be managed with existing staff and
appropriations.
Bill Number: S. 0002 Introduced on Januar
y 14, 2025
Subject: Department of Beha vioral Health and Developmental Disabilities
Requestor: Senate Medical Affairs
RFA Anal
yst(s): Boggs
Impact Date: January 29, 2025
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S. 0002
Sections 15 – 16 of this bill make changes regarding declaration of a state of emergency for all or
part of the state. The Governor’s Office anticipates being able to manage the responsibilities of
this bill within the normal course of business.
Section 17 of this bill permits a pharmacist the right to refuse to fill or refill a prescription under
specific circumstances. Based on a response on similar legislation, this bill will have no
expenditure impact for the Board of Pharmacy, which is under the administration of the
Department of Labor, Licensing and Regulation (LLR), because the bill does not alter the
responsibilities of the department or its boards.
Sections 18 – 24 of this bill give sheriffs and police officers the discretion as to whether they will
aid and assist the director of the Department of Public Health (DPH) in carrying out orders
during a state of public health emergency. Additionally, this bill removes DPH’s ability during a
public health emergency to require in state health providers to assist in the performance of
vaccinations, treatment, examination, or testing of any individual as a condition of licensure,
authorization, or the ability to continue to function as a health care provider in the state. Further,
this bill provides a deadline for a petition for an order authorizing the isolation or quarantine of
an individual or group of individuals. DPH expressed concerned that limiting the agency’s ability
to respond to a public health emergency could result in costs to the state, as well as a loss of
Federal Funds that could potentially aid the state in an emergency. However, due to the unknown
nature of future health emergencies, DPH is unable to provide an estimate of the potential impact
to the General Fund and Federal Funds.
Explanation of Fiscal Impact
Introduced on January 14, 2025
State Expenditure
Sections 1 – 14 and Sections 25 – 28 of this bill restructure the current mental health agencies
by creating DBHDD in FY 2025-26. This department will consist of the OIDD, OMH, and
OSAS. DAODAS, DDSN, and DMH will dissolve, and all existing FTEs and appropriated funds
of these agencies will be moved to the appropriate office within DBHDD. All applicable bonded
indebtedness, real and personal property, assets, liabilities, contracts, regulations, or policies of
DDSN, DMH, or DAODAS will continue in effect in the name of the DBHDD or the appropriate
component division. Employees of DAODAS, DDSN, and DMH shall maintain their same status
with the appropriate component department of DBHDD. Admin will assist with the transfer of
operating expenses and any other such transferred as specified in this bill.
The Governor, with the advice and consent of the Senate, must appoint the director to act as the
head and governing authority of DBHDD. Further, this bill lists the duties of the director to
include developing a cohesive and comprehensive plan for services provided by the component
offices housed within the department so that there is a maximum level of coordination among the
component offices. The director shall appoint a Director of Community Living Integration who
will be responsible for providing oversight in the assessment of the current state of community
integration in South Carolina and in the creation of the community integration goals and
objectives to be included in the State Health Plan. The Director of Community Living will report
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S. 0002
to the director and shall select an Americans with Disabilities Coordinator. The director shall
also establish and appoint members to a health planning advisory committee to provide advice in
the development of the plan. Members of the advisory committee should include health care
providers, representatives from the disabled community, disability advocacy agencies,
consumers, payers, and public health professionals. Members of the advisory committee are
allowed the usual mileage and subsistence as provided for members of boards, committees, and
commissions.
The component offices shall be headed by an office director appointed by the department’s
director. The director may, to the extent authorized through the annual appropriations act or
relevant permanent law, organize the administration of the department, including the assignment
of personnel to the offices and among its component departments, as is necessary to carry out the
department's duties. Except as outlined in this bill, OIDD, OMH, and OSAS shall operate as
component departments of DBHDD in FY 2025-26 using the authority and funds appropriated to
DDSN, DMH, and DAODAS as standalone agencies in the appropriations act of 2024. Further,
all applicable bonded indebtedness, real and personal property, assets, liabilities, contracts,
regulations, or policies of the merging agencies shall continue in effect in the name of DBHDD
or the appropriate component division.
Department of Disabilities and Special Needs. DDSN anticipates a one-time expense of less
than $100,000 in FY 2025-26 related to changing the department name and logo that can be
managed within existing appropriations. Additionally, dependent upon any additional
responsibilities that may arise due to the restructuring, DDSN anticipates this bill may have an
additional undetermined expenditure impact beginning in FY 2025-26.
Department of Mental Health. DMH anticipates that this bill would likely affect the overall
SCEIS master data structure, organizational workflows, systematic program workflows, such as
procurement authority and budget authorization, and additional changes needed for contractual
agreements held by DMH. DMH anticipates this bill may increase expenses, dependent upon the
department responsibilities under the new structure. Therefore, this bill will have an
undetermined expenditure impact for DMH beginning in FY 2025-26.
Department of Alcohol and Other Drug Abuse Services. Dependent upon any additional
responsibilities that may arise due to the restructuring, DAODAS anticipates this bill may have
an additional undetermined expenditure impact beginning in FY 2025-26
Department of Administration. Admin anticipates being able to manage the responsibilities of
this bill with existing staff and within existing appropriations. Therefore, this bill will have no
expenditure impact for Admin.
Sections 15 – 16 of this bill make changes regarding declaration of a state of emergency for all
or part of the State. The Governor’s Office anticipates being able to manage the responsibilities
of this bill within the normal course of business.
__________________________________
Frank A. Rainwater, Executive Director
DISCLAIMER: THIS FISCAL IMPACT STATEMENT REPRESENTS THE OPINION AND INTERPRETATION OF THE
AGENCY OFFICIAL WHO APPROVED AND SIGNED THIS DOCUMENT. IT IS PROVIDED AS INFORMATION TO
THE GENERAL ASSEMBLY AND IS NOT TO BE CONSIDERED AS AN EXPRESSION OF LEGISLATIVE INTENT.
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Section 17 of this bill permits a pharmacist the right to refuse to fill or refill a prescription under
specific circumstances. Based on a response on similar legislation, this bill will have no
expenditure impact for the Board of Pharmacy, which is under the administration of the
Department of Labor, Licensing and Regulation (LLR), because the bill does not alter the
responsibilities of the department or its boards.
Sections 18 – 24 of this bill give sheriffs and police officers the discretion as to whether they
will aid and assist the director of DPH in carrying out orders during a state of public health
emergency. Additionally, this bill removes DPH’s ability during a public health emergency to
require in state health providers to assist in the performance of vaccinations, treatment,
examination, or testing of any individual as a condition of licensure, authorization, or the ability
to continue to function as a health care provider in the state. Further, this bill provides a deadline
for a petition for an order authorizing the isolation or quarantine of an individual or group of
individuals. DPH expressed concerned that limiting the agency’s ability to respond to a public
health emergency could result in costs to the state, as well as a loss of Federal Funds that could
potentially aid the state in an emergency. However, due to the unknown nature of future health
emergencies, DPH is unable to provide an estimate of the potential impact to the General Fund
and Federal Funds.
State Revenue
This bill will result in a transfer of an undetermined amount of revenue from current mental
health agencies to the newly created DBHDD in FY 2025-26.
Local Expenditure
N/A
Local Revenue
N/A