Bill Summary – FastDemocracy

SB 240
                      Department of Legislative Services
                             Maryland General Assembly
                                   2021 Session
                           FISCAL AND POLICY NOTE
                                 Third Reader
Senate Bill 240                 (Chair, Budget and Taxation Committee)(By Request -
                                Departmental - Transportation)
Budget and Taxation                                                    Appropriations
     Maryland Information Technology Development Project Fund – Sources of
                                   Revenue
This departmental bill excludes revenues collected from resource sharing agreements
(RSA) by the Maryland Department of Transportation (MDOT) from accruing to the Major
Information Technology Development Project Fund (MITDPF) within the Department of
Information Technology (DoIT); instead, the revenues accrue to the Transportation Trust
Fund (TTF). The bill takes effect June 1, 2021.
                                    Fiscal Summary
State Effect: No net effect on special fund revenues. However, MITDPF revenues
decrease by approximately $100,000 in FY 2021, with a corresponding increase in TTF
revenues. Annually thereafter, MITDPF revenues decrease by approximately $5.0 million
and TTF revenues increase correspondingly. Expenditures are not directly affected.
Local Effect: The bill does not affect local operations or finances.
Small Business Effect: MDOT has determined that this bill has minimal or no impact on
small business (attached). The Department of Legislative Services concurs with this
assessment.
                                        Analysis
Current Law: The State’s telecommunications RSA process was established by
Chapter 87 of 1996 to allow State agencies to enter into contractual agreements with
private companies for the nonexclusive, long-term use of State rights-of-way (land),
communications infrastructure (telecommunications towers), and real estate (buildings).
Generally, RSAs permit private companies to install, operate, and maintain
communications systems on State resources; in exchange, the private companies provide
the State with monetary compensation, equipment, or services. DoIT advises that most
RSAs do not include direct revenue for the State.
Funds collected from telecommunications RSAs and from the sale, lease, and exchange of
communication sites, communication facilities, or communication frequencies must
generally be deposited into MITDPF. However, funds collected from RSAs with specified
Executive Branch agencies and agencies within the Judicial and Legislative branches of
State government are retained by those agencies and not deposited into MITDPF. MDOT
was one of the agencies that retained its own RSA revenues until the Budget Reconciliation
and Financing Act (BRFA) of 2019 (Chapter 16) required MDOT’s RSA revenues to
accrue to MITDPF instead.
For a project to be eligible for funding through MITDPF, it must (1) be estimated to cost
at least $1.0 million; (2) support critical business functions associated with the public
health, education, safety, or financial well-being of the citizens of Maryland; or (3) be
determined to require special attention and consideration by the Secretary.
Background: MDOT advises that prior to the enactment of the BRFA of 2019, it had
always retained its RSA revenues in TTF. Moreover, even though MDOT’s RSA revenues
have been accruing to MITDPF, none of its major information technology projects is
funded through MITDPF. Additionally, MDOT advises that it could use the additional
revenues to issue debt and expand its capital program by $64.0 million from fiscal 2022
through 2026.
State Revenues: MDOT’s RSA agreements result in approximately $5.0 million in
revenues annually, which accrue to MITDPF in accordance with the BRFA of 2019. Under
the bill, this revenue is instead retained by MDOT and accrues to TTF, thereby decreasing
revenues for MITDPF by $5.0 million annually beginning in fiscal 2022 and increasing
TTF revenues by $5.0 million annually beginning in that same year.
In addition, MDOT estimates that about $100,000 of its RSA revenues are collected in the
month of June each year. Because the bill takes effect June 1, 2021, revenues for MITDPF
decrease by approximately $100,000 in fiscal 2021, and TTF revenues increase by
approximately $100,000 in that same year.
SB 240/ Page 2
                               Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Maryland Department of Transportation; Department of
Information Technology; Department of Budget and Management; Department of
Legislative Services
Fiscal Note History:   First Reader - January 25, 2021
rh/mcr                 Third Reader - March 19, 2021
Analysis by: Richard L. Duncan                     Direct Inquiries to:
                                                   (410) 946-5510
                                                   (301) 970-5510
SB 240/ Page 3
                 ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL:        Maryland Information Technology Development Project Fund – Sources
                      of Revenue
BILL NUMBER:          SB 240
PREPARED BY:          Maryland Department of Transportation
(Dept./Agency)
PART A. ECONOMIC IMPACT RATING
This agency estimates that the proposed bill:
       __X__ WILL HAVE MINIMAL OR NO ECONOMIC IMPACT ON
                 MARYLAND SMALL BUSINESS
                               OR
       ______    WILL HAVE MEANINGFUL ECONOMIC IMPACT ON
             MARYLAND SMALL BUSINESSES
PART B. ECONOMIC IMPACT ANALYSIS
SB 240/ Page 4
Statutes affected: 
Text - First - Maryland Information Technology Development Project Fund – Sources of Revenue: 3-216 Transportation
Text - Third - Maryland Information Technology Development Project Fund – Sources of Revenue: 3-216 Transportation