Bill Summary – FastDemocracy

HB 43
                                  Department of Legislative Services
                                             Maryland General Assembly
                                                   2021 Session
                                         FISCAL AND POLICY NOTE
                                                First Reader
House Bill 43                                   (Delegate Krimm)
Economic Matters
          Department of Information Technology - Office of Broadband and Joint
                               Committee on Broadband
This bill establishes the Office of Broadband in the Department of Information Technology
(DoIT) and requires the office to be funded using (1) the Rural Broadband Assistance Fund
(RBAF) and (2) to the extent practicable and if authorized by the General Assembly,
revenues collected from sports and event wagering in the State. The bill also establishes
the Joint Committee on Broadband (JCB) that must be staffed by the Department of
Legislative Services (DLS). The bill takes effect June 1, 2021.
                                                      Fiscal Summary
State Effect: No effect in FY 2021. Establishing a new office funded by RBAF requires
that special fund to be capitalized with general funds. Thus, general fund expenditures and
special fund revenues and expenditures increase by about $1.7 million annually beginning
in FY 2022, as discussed below. DLS can staff JCB with existing resources.
    ($ in millions)               FY 2021               FY 2022               FY 2023                FY 2024               FY 2025
   SF Revenue                               $0                 $1.7                  $1.7                   $1.7                 $1.7
   GF Expenditure                           $0                 $1.7                  $1.7                   $1.7                 $1.7
   SF Expenditure                           $0                 $1.7                  $1.7                   $1.7                 $1.7
   Net Effect                              $0.0              ($1.7)                ($1.7)                 ($1.7)               ($1.7)
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: Local governments can coordinate with the Office of Broadband using
existing resources. Revenues are not affected.
Small Business Effect: None.
                                         Analysis
Bill Summary:
Office of Broadband
The bill establishes the Office of Broadband within DoIT and enumerates its
responsibilities. Among other things, the office must (1) assist and support local
jurisdictions in their improvement of access to high-speed Internet; (2) identify and
coordinate the delivery of resources to local jurisdictions to improve access to high-speed
Internet, as specified; (3) investigate new technologies that would increase the availability
of high-speed Internet; and (4) collect, analyze, and share relevant data, as specified.
In performing its duties, the office must coordinate with specified State government
agencies, local government entities, and stakeholders. The office must be funded by money
appropriated to RBAF and, to the extent practicable and if approved by the General
Assembly, revenues collected from sports and event wagering in the State. RBAF may only
be used to fund the operations of the Office of Broadband.
The office must cooperate fully with JCB, keep JCB fully informed as to its priorities and
progress, and submit an annual report to the committee by October 1 of each year that
includes specified information.
Joint Committee on Broadband
The bill establishes JCB and procedures for the selection and replacement of committee
members. JCB must assist the Office of Broadband in conducting its duties, oversee the
operations of the office, and consider recommendations provided by the office. JCB must
submit a report to the General Assembly by December 1 of each year that includes a
description of its work and any recommendations it has.
Current Law: Chapter 176 of 2018 made permanent Chapter 269 of 2006, which, among
other things, established RBAF in the Department of Business and Economic Development
(later renamed the Department of Commerce (Commerce)). The purpose of the fund is to
assist in the establishment of broadband communication services in rural and underserved
areas of the State. Commerce must administer the fund, and it may only be used only for
planning, construction, and maintenance of broadband communication services and
equipment in rural and underserved areas and related activities. RBAF has not received
any State or federal funding since 2009.
In 2017, Executive Order 01.01.2017.14 established the Office of Rural Broadband (ORB)
within DoIT; however, in 2020, the office was moved to the Department of Housing and
HB 43/ Page 2
Community Development (DHCD). The purpose of ORB is to support the State’s efforts
to provide affordable, high-speed Internet service to every Maryland home.
State Fiscal Effect: The bill’s responsibilities for the Office of Broadband are similar to
those established for ORB, but with a broader responsibility for the whole State instead of
a focus on rural jurisdictions. Thus, using ORB as a guide, DLS assumes funding of
approximately $1.7 million annually is necessary to hire a director and carry out the office’s
statutory responsibilities.
Additionally, even though the bill requires the Office of Broadband to be funded through
RBAF and, potentially, sports and event wagering, this analysis assumes that general funds
must be used. RBAF has not received any funding since 2009 and is unlikely to receive
funding in future years; sports and event wagering has yet to be implemented in the State,
although it was approved by Maryland voters at referendum during the 2020 election. Thus,
to meet the requirements of the bill, RBAF would have to first be capitalized with general
funds, and special fund revenues and expenditures would increase commensurately.
Additional Comments: As previously discussed, ORB was established within DoIT in
2017 and moved to DHCD in 2020. DoIT advises, and DLS concurs, that the bill’s
provisions could likely be met if ORB were relocated from DHCD back to DoIT, as
originally specified in the executive order. Otherwise, there would likely be duplicative
efforts between the two offices. ORB is funded with general funds at $1.7 million annually.
                                Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Department of Information Technology; Department of Housing
and Community Development; Department of Commerce; Maryland Association of
Counties; Maryland Municipal League; Comptroller’s Office; Department of Budget and
Management; Maryland Department of Planning; Maryland Department of Transportation;
Maryland State Lottery and Gaming Control Agency; Department of Legislative Services
Fiscal Note History:      First Reader - January 22, 2021
rh/mcr
Analysis by: Richard L. Duncan                          Direct Inquiries to:
                                                        (410) 946-5510
                                                        (301) 970-5510
HB 43/ Page 3
Statutes affected: 
Text - First - Department of Information Technology - Office of Broadband and Joint Committee on Broadband: 51-102 Economic Development