HB 1055
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
First Reader
House Bill 1055 (Delegate B. Barnes)
Appropriations
Capital Budget - Legislative Initiatives - Alterations
This bill (1) specifies that the Board of Public Works (BPW) is not required to approve the
expenditure of general obligation (GO) bond proceeds for legislative bond initiative grants
authorized in the 2019 and 2020 capital budget bills for which the total authorized amount
is less than $500,000 and (2) repeals matching fund certification requirements for
legislative bond initiative grants authorized in the 2019 and 2020 capital budget bills. The
bill further specifies that the Department of General Services (DGS) must notify the
recipient of a legislative bond initiative grant within 90 days of the effective date of the
enabling act and, on receipt of a completed grant application, (1) promptly request that
BPW approve the expenditure of the grant funds or (2) if the total amount authorized for
the grant is less than $500,000, notify the Comptroller to expend the money. Finally, the
bill makes various conforming changes. The bill takes effect June 1, 2021.
Fiscal Summary
State Effect: As the bill generally streamlines release of funds to grant recipients, the
Comptroller’s Office and BPW benefit from operational efficiencies. Although DGS likely
must process approvals more quickly, which may strain resources temporarily, it is
assumed that the bill’s changes can be implemented within existing budgeted resources.
State finances are not otherwise materially affected.
Local Effect: The disbursement of grant funds to local government grantees may be
accelerated due to the removal of specified approval and certification requirements. Local
government finances are not otherwise materially affected.
Small Business Effect: None.
 Analysis
Bill Summary: On notice by DGS, the Comptroller must expend money from the State
and Local Facilities Loan Fund for any expenditure authorized by an enabling act for which
the total authorized amount is less than $500,000, regardless of whether the bonds have
been sold to specifically fund the enabling act. The bill further specifies that BPW approval
is not required for a contract to spend the proceeds of a GO loan if the total amount of the
expenditure authorized by the enabling act is less than $500,000.
Current Law: Proceeds from the sale of State GO bonds are deposited in the State and
Local Facilities Loan Fund. On approval by BPW, the Comptroller may expend money
from the fund for any expenditure authorized by an enabling act, regardless of whether the
bonds have been sold to specifically fund that enabling act.
Section 8-301 of the State Finance and Procurement Article specifies that, except as
otherwise provided by law, a contract to spend the proceeds of a GO loan that has been
authorized by any act of the General Assembly may not be executed until BPW approves
the contract. Language in the annual capital budget bill also requires BPW approval for the
expenditure of proceeds from the sale of bonds authorized in the capital budget bill.
In addition, language in the annual capital budget bill specifies requirements related to the
provision and certification of matching funds for legislative bond initiative grants. When
matching funds are required, a grantee generally must present evidence of a matching fund
to BPW within two years of the authorization for State debt. The 2019 and 2020 capital
budget bills require (in Section 1) that specified grantees provide evidence of matching
funds by June 1, 2021, and June 1, 2022, respectively.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Comptroller’s Office; Department of Budget and Management;
Department of General Services; Board of Public Works; Department of Legislative
Services
HB 1055/ Page 2
Fiscal Note History: First Reader - March 2, 2021
md/ljm
Analysis by: Elizabeth J. Allison Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 1055/ Page 3


Statutes affected:
Text - First - Capital Budget - Legislative Initiatives - Alterations: 4-211 State Finance and Procurement, 8-101 State Finance and Procurement, 8-117 State Finance and Procurement, 8-125 State Finance and Procurement, 8-301 State Finance and Procurement, 8-129 State Finance and Procurement