HB 658
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Enrolled
House Bill 658 (Delegate Qi)
Economic Matters Finance
Transforming Manufacturing in a Digital Economy Workgroup (Making It in
Maryland)
This bill establishes the Workgroup to Study the Transformation of Manufacturing in
Maryland’s Emerging Digital Economy, staffed by the Department of Commerce. The
workgroup is charged with a wide variety of issues to examine and on which to make
recommendations, such as relevant professional research, public-private partnerships, State
funding levels, new tax credits, and the State’s current statutory and regulatory authority
over manufacturing. A member of the workgroup may not receive compensation but is
entitled to reimbursement for travel expenses. By December 1, 2021, the workgroup must
submit an interim report of its findings to the Governor and the General Assembly. By
December 1, 2022, the workgroup must report its final findings and recommendations to
the Governor and General Assembly. The bill takes effect July 1, 2021, and terminates
June 30, 2023.
Fiscal Summary
State Effect: General fund expenditures increase by $438,100 in FY 2022 and by
$411,700 in FY 2023, to staff and advise the workgroup. Expense reimbursements for
workgroup members are assumed to be minimal and absorbable within existing budgeted
resources. Revenues are not affected.
(in dollars) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Revenues $0 $0 $0 $0 $0
GF Expenditure 438,100 411,700 0 0 0
Net Effect ($438,100) ($411,700) $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
Bill Summary: The workgroup must:
 identify the new and emerging digital technologies that are shaping the work of the
future, the education and skills needed, and the viable strategies for businesses to
adopt these technologies;
 examine specified research conducted by the Massachusetts Institute of Technology
on the relationships between emerging technologies and the workforce to enable a
future of shared prosperity;
 examine existing financial resources available to manufacturers seeking to invest in
Industry 4.0 (described below) technology;
 make recommendations to facilitate the State’s robust entry into Industry 4.0
technology to improve the perception of manufacturing careers;
 examine new and viable tax credits and programs for manufacturers to be more
competitive and marketable in the new digital economy;
 examine the State’s current statutory and regulatory authority over manufacturing
to examine potential reforms to attract new manufacturing businesses brought by
Industry 4.0 to invest in the State’s economy and workforce;
 recommend additional financial support delivery mechanisms, as needed, to enable
State manufacturers to adopt Industry 4.0 technology and enhance the ability of
industry service providers to increase the scope of their industry support;
 propose annual State funding to create a statewide training program to address the
growing skills gap in the manufacturing workforce; and
 develop recommendations for long-term private-public partnerships between
educational institutions and manufacturers to develop curriculums that address the
rapidly changing needs of the manufacturing industry.
State Expenditures: Given the extensive and groundbreaking nature of the workgroup’s
charge and the variety of issues it is tasked with evaluating, Commerce advises that it
requires both a part-time contractual staff person and significant assistance from
consultants to support the workgroup’s work. The Department of Legislative Services
concurs with this assessment.
Accordingly, general fund expenditures increase by $438,105 in fiscal 2022, which
accounts for the bill’s July 1, 2021 effective date and the breadth of work to be undertaken.
HB 658/ Page 2
This estimate reflects the cost of hiring one half-time contractual employee to staff the
workgroup and coordinate with the consultant. It includes a salary, fringe benefits,
one-time start-up costs, ongoing operating expenses, and one-half of the estimated
$788,000 total consultant cost.
Contractual Position 0.5
Salary and Fringe Benefits $38,360
Half of Total Consultant Cost 394,000
Other Operating Expenses 5,745
Total FY 2022 State Expenditures $438,105
Fiscal 2023 expenditures of $411,741 reflect the continuation of the part-time contractual
position through December 2022 (when the workgroup’s report is due), ongoing operating
expenses, and the other half of the total consultant cost. Actual costs in fiscal 2022 and
2023 depend on the timing of payments made to the consultant, which may vary from this
estimate.
This estimate does not include any health insurance costs that could be incurred for
specified contractual employees under the State’s implementation of the federal Patient
Protection and Affordable Care Act.
Additional Comments: “Industry 4.0” is a term used to capture the way emerging
technologies will affect the manufacturing industry in the future. The concept focuses on
interconnectivity, automation, artificial intelligence, robotics, 3D printing, machine
learning, and real-time data.
Additional Information
Prior Introductions: A similar bill, SB 369 of 2020, received a hearing in the Senate
Finance Committee, but no further action was taken. Its cross file, HB 804, received an
unfavorable report from the House Economic Matters Committee.
Designated Cross File: SB 444 (Senator West) - Finance.
Information Source(s): Department of Commerce; University System of Maryland;
Department of Legislative Services
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Fiscal Note History: First Reader - February 14, 2021
rh/mcr Third Reader - March 22, 2021
Revised - Amendment(s) - March 22, 2021
Enrolled - April 8, 2021
Analysis by: Michael E. Sousane Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 658/ Page 4