Bill Summary – FastDemocracy

HB 251
                                  Department of Legislative Services
                                             Maryland General Assembly
                                                   2021 Session
                                         FISCAL AND POLICY NOTE
                                              Enrolled - Revised
House Bill 251                                  (Delegate Carr)
Appropriations                                             Education, Health, and Environmental Affairs
         Maryland Funding Accountability and Transparency Act - Real Property
             Records Improvement Fund and Nonbudgeted State Agencies
This emergency bill alters the Maryland Funding Accountability and Transparency Act to
require the Department of Information Technology (DoIT) to update payment data on the
existing searchable website on a monthly basis (by the 15th day of the month that follows
the month in which an agency makes a payment to a payee). The bill also requires
nonbudgeted State agencies to submit their payment data for inclusion in the website,
repeals obsolete language, and makes stylistic changes. Additionally, the bill authorizes
the Judiciary to transfer up to $12.0 million of its fiscal 2021 general fund appropriation to
the Circuit Court Real Property Records Improvement Fund on or before June 30, 2021.
Any amount transferred under the bill may not revert to the general fund.
                                                      Fiscal Summary
State Effect: Special fund revenues increase by up to $12.0 million in FY 2021; general
fund revenues decrease by the same amount, as discussed below. Nonbudgeted
expenditures increase by at least $18,000 only in FY 2021, as discussed below. In addition,
general fund expenditures for the Comptroller’s Office may increase beginning as early as
FY 2022 (not shown below).
      (in dollars)               FY 2021                FY 2022                FY 2023               FY 2024               FY 2025
   GF Revenue                  ($12,000,000)                        $0                     $0                    $0                    $0
   SF Revenue                    $12,000,000                        $0                     $0                    $0                    $0
   NonBud Exp.                       $18,000                        $0                     $0                    $0                    $0
   Net Effect                      ($18,000)                        $0                     $0                    $0                    $0
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: None.
Small Business Effect: None.
                                         Analysis
Current Law:
Maryland Funding Accountability and Transparency Act
The Maryland Funding Accountability and Transparency Act of 2008 (Chapter 659)
requires DoIT to develop and operate a free, public, searchable website that includes
detailed information on State payments of $25,000 or more, beginning with data for
fiscal 2008. Payments to State employees and retirees as compensation or retirement
allowance, respectively, are exempt from inclusion on the website. The site is also required
to include a search function that allows the public to submit queries based on, at a
minimum:
      the name and zip code of the payee receiving a payment;
      the amount of a payment; and
      the agency making a payment.
The website must allow the user to search the data for fiscal 2008 and each year thereafter.
State agencies must provide appropriate assistance to the Secretary of Information
Technology to ensure the existence and ongoing operation of the website.
Circuit Court Real Property Records Improvement Fund
The Circuit Court Real Property Records Improvement Fund supports the operating and
equipment expenses of the land records offices of the clerks of the circuit courts as well as
the Judiciary’s major information technology (IT) development projects. The fund is
managed and supervised by the State Court Administrator with advice from a five-member
oversight committee. Revenues for the fund are generated through a recordation surcharge
on all real estate transactions and other specified court surcharges.
State Revenues: The bill authorizes the transfer of up to $12.0 million from the Judiciary’s
fiscal 2021 general fund appropriation to the Circuit Court Real Property Records
Improvement Fund on or before June 30, 2021. Assuming the Judiciary exercises its
authority to transfer funds, special fund revenues for the Judiciary increase by up to
$12.0 million in fiscal 2021; under the assumption that, absent the bill, those funds would
have reverted to the general fund, general fund revenues decrease by the same amount.
State Expenditures: DoIT, in consultation with the Department of Budget and
Management (DBM), operates the website on the Maryland Transparency Portal.
HB 251/ Page 2
Currently, the website is updated on an annual basis to include the most recent budget
appropriation and audited financial data from the prior fiscal year.
DoIT can extract data from the State’s Financial Management Information System (FMIS)
to upload monthly financial data on the website with existing resources. DoIT and DBM
can train nonbudgeted agencies on how to submit the required data with existing resources.
However, nonbudgeted State government units that do not use FMIS may incur additional
expenses to submit data.
MDTA estimates one-time IT costs of $18,000 to extract the requested data from its
financial system and provide it to DoIT. Based on an analysis of similar prior legislation,
the Maryland Environmental Service may also experience minimal one-time IT costs.
Thus, nonbudgeted expenditures increase by at least $18,000, presumably in fiscal 2021
(due to the bill’s emergency status), for nonbudgeted agencies to meet the bill’s reporting
requirements.
Comptroller’s Office
Under current law, DoIT uploads audited financial data from FMIS to the website
following the end of each fiscal year. Thus, neither the Comptroller’s Office nor DoIT
conducts any significant quality control on the data being uploaded. The bill requires that
unaudited financial data be uploaded on a monthly basis. The Comptroller’s Office
indicates that it may want to verify the data being transferred to DoIT, but the bill does not
require it to do so. To the extent that the Comptroller’s Office elects to manage and verify
the data, general fund expenditures increase by about $55,000 annually to hire a fiscal
accounts technician beginning in fiscal 2022.
                                Additional Information
Prior Introductions: HB 71 of 2020, a similar bill, passed the House and was referred to
the Senate Education, Health, and Environmental Affairs Committee, but no further action
was taken on the bill.
Designated Cross File: SB 244 (Senator Lam) - Education, Health, and Environmental
Affairs.
Information Source(s): Department of Budget and Management; Comptroller’s Office;
Maryland Department of Labor; Department of Information Technology; Judiciary
(Administrative Office of the Courts); Maryland Automobile Insurance Fund; Maryland
Food Center Authority; Maryland Department of Transportation; Treasurer’s Office;
Department of Legislative Services
HB 251/ Page 3
Fiscal Note History:    First Reader - January 18, 2021
rh/mcr                  Third Reader - February 16, 2021
                        Enrolled - May 10, 2021
                               Revised - Amendment(s) - May 10, 2021
Analysis by: Elizabeth J. Allison                 Direct Inquiries to:
                                                  (410) 946-5510
                                                  (301) 970-5510
HB 251/ Page 4