SB 307
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader
Senate Bill 307 (Senator Guzzone)
Finance and Budget and Taxation Economic Matters
Labor and Employment - Direct Care Workforce Innovation Program
This bill establishes a Direct Care Workforce Innovation Program (DCWIP) within the
Division of Workforce Development and Adult Learning (DWDAL) under the Maryland
Department of Labor (MDL). The purpose of DCWIP is to provide matching grants to
eligible entities to create and expand on successful recruitment and retention strategies that
address the range of potential barriers to increasing the number of direct care workers, with
the goal of ensuring the availability of trained direct care workers across the State. The
Governor must include in the annual budget bill an appropriation of at least $250,000 for
the program.
Fiscal Summary
State Effect: General fund expenditures for MDL increase by $250,000 in FY 2023 for
grant funding; future years reflect ongoing grants, which assumes that program funds can
be used for administration. Although discretionary, this analysis also assumes funding is
provided in FY 2022. Revenues are not affected. This bill establishes a mandated
appropriation beginning in FY 2023.
(in dollars) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Revenues $0 $0 $0 $0 $0
GF Expenditure 250,000 250,000 250,000 250,000 250,000
Net Effect ($250,000) ($250,000) ($250,000) ($250,000) ($250,000)
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: None.
Small Business Effect: Minimal.
 Analysis
Bill Summary: “Direct care worker” is defined as an individual whose occupation is
classified as a home health aide, a personal aide, a nursing assistant, or a psychiatric aide.
It includes a geriatric nursing assistant.
DWDAL must administer DCWIP and may adopt regulations to implement the bill. Each
year, DWDAL must issue a request for applications from eligible entities for matching
grants offered under the program. To receive a matching grant under the program, an
eligible entity must submit with the entity’s application a project plan for each project to
be developed and carried out or for activities to be continued with the grant. The bill
specifies what the project plan must include and how DWDAL must evaluate and select
eligible entities.
An eligible entity must secure contributions for the project that at least equal the amount
of money requested from the program, and DWDAL may not award more than $50,000 to
an eligible entity each year. If DWDAL receives applications for matching grants that
exceed the program’s appropriation, DWDAL must award the grants on a pro rata basis.
A matching grant is valid for at least three years. DWDAL must encourage eligible entities
receiving matching grants to consult with specified entities, including institutions of higher
education and the Maryland Department of Health (MDH).
An eligible entity that carries out activities for purposes of recruiting, retaining, or
providing advancement opportunities to direct care workers before receipt of a matching
grant may use the grant to continue carrying out those activities. An eligible entity
receiving a matching grant under the program must use the funds in a manner to develop
and implement a strategy for the recruitment, retention, or advancement of direct care
workers that includes an activity described in the eligible entity’s application and provides
compensation to each direct care worker for any training received under the project or
activity. An eligible entity must use at least 5% of the funds to provide direct financial
assistance to direct care workers and may not use more than 10% of the funds for the
administration of a project.
An eligible entity receiving a matching grant must use the grant to supplement, not
supplant, the amount of funds that, in the absence of the grant, would be available to
address the recruitment, retention, or advancement of direct care workers in the region
served by the eligible entity.
Appropriations and expenditures made for the purpose of implementing the program are
subject to audit by the Office of Legislative Audits (OLA). By December 1, 2022, and each
year thereafter, DWDAL must report to the Senate Finance Committee and the
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House Health and Government Operations Committee on the program’s progress and
outcomes.
Current Law: DWDAL has as its mission ensuring businesses have the skilled workforce
they need to be competitive in today’s environment, as well as helping people get jobs.
Specifically, DWDAL serves the unemployed, jobless veterans, newly dislocated workers,
trade-impacted workers, New Americans, ex-offenders, low-wage workers, and
individuals with barriers to employment. As the State’s main workforce development
entity, DWDAL oversees operation of Maryland’s 32 American Job Centers, with at least
1 such center located in each county of the State. DWDAL also oversees the Maryland
Workforce Exchange, which is Maryland’s job bank. Additionally, DWDAL oversees
workforce programs for New Americans and veterans and the processing of a number of
federal and State tax credits.
Employment Advancement Right Now Program
The Employment Advancement Right Now (EARN) program was established in 2013 to
create industry-led partnerships to advance the skills of the State’s workforce, grow the
State’s economy, and increase sustainable employment for working families. Specifically,
the program provides general fund grants on a competitive basis for industry partnerships,
workforce training programs, and job-readiness and skills training, including direct care
workforce training programs. Under the EARN program, DWDAL has invested in several
direct care workforce training programs across the State.
State Expenditures: General fund expenditures for DWDAL increase by at least
$250,000 in fiscal 2023 to meet the bill’s mandated appropriation for the program to make
grants to eligible entities. To the extent that the Governor provides more than $250,000 for
grants under the program in any year, the increase in general fund expenditures will be
greater. Although discretionary, this analysis assumes $250,000 is also provided in
fiscal 2022 for grants.
MDL reports existing staff can implement the bill. However, DWDAL is staffed largely
with federally funded personnel who cannot work on State-funded programs without the
program reimbursing the federal government for their time. The bill does not prohibit the
use of the mandated funds for program administration, so this analysis assumes that costs
of administering the program are taken from the mandated appropriation. To the extent that
existing personnel administer grants and provide oversight to the program, general fund
expenditures for reimbursement payments to the federal government increase on an annual
basis and funding for grants decreases by an equivalent amount.
OLA can use existing resources to audit DCWIP. The Office of Population Health
Improvement within MDH and higher education institutions may need to provide
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consulting services on developing and carrying out a project to an eligible entity receiving
a matching grant, which they can likely do with existing resources.
Additional Information
Prior Introductions: SB 449 of 2020 passed the Senate with amendments and was
referred to the House Economic Matters and Appropriations committees. The
House Economic Matters Committee held a hearing, but no further action was taken on the
bill.
Designated Cross File: None.
Information Source(s): University System of Maryland; Morgan State University;
St. Mary’s College of Maryland; Department of Budget and Management; Maryland
Department of Health; Maryland Department of Labor; Department of Legislative Services
Fiscal Note History: First Reader - January 19, 2021
rh/mcr Third Reader - February 19, 2021
Analysis by: Michael E. Sousane Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 307/ Page 4


Statutes affected:
Text - First - Labor and Employment - Direct Care Workforce Innovation Program: 11-1401 [], 11-1402 [], 11-1403 [], 11-1404 [], 11-1405 [], 11-1404 [], 11-1406 [], 11-1407 []
Text - Third - Labor and Employment - Direct Care Workforce Innovation Program: 11-1401 Labor and Employment, 11-1402 Labor and Employment, 11-1403 Labor and Employment, 11-1404 Labor and Employment, 11-1405 Labor and Employment, 11-1404 Labor and Employment, 11-1406 Labor and Employment, 11-1407 Labor and Employment