HB 987
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
House Bill 987 (Delegate Qi)
Ways and Means Finance
Economic Development – Comprehensive Technical Assistance Program –
Establishment
This bill establishes the Comprehensive Technical Assistance Program in the Maryland
Technology Development Corporation (TEDCO). The purpose of the program is to provide
comprehensive technical assistance to any business that qualifies for financial assistance
under a TEDCO program. The program must (1) incorporate TEDCO’s existing services;
(2) include flexible and customized applied training services; (3) include the use of a
network of experienced advisors to serve as mentors and loaned executives; and (4) include
support with attracting and accessing private capital. TEDCO must include information
related to the program in its annual report and must adopt regulations to implement the bill.
Fiscal Summary
State Effect: General fund expenditures increase by approximately $187,500 in FY 2022
and by approximately $250,000 annually thereafter, as discussed below. Revenues are not
affected.
(in dollars) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Revenues $0 $0 $0 $0 $0
GF Expenditure 187,500 250,000 250,000 250,000 250,000
Net Effect ($187,500) ($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: The bill does not materially affect local government finances or operations.
Small Business Effect: Meaningful.
 Analysis
Current Law: TEDCO is an independent entity established by the Maryland
General Assembly in 1998 to facilitate the creation of technology companies and
encourage collaboration between these emerging businesses and federal and State research
laboratories. TEDCO also aims to promote new research activity and investments that lead
to business development in Maryland.
No comprehensive TEDCO technical assistance program exists in statute as many of
TEDCO’s public-facing programs/initiatives are not established by statute. In practice,
TEDCO offers technical assistance as part of some of its existing programs, but it is not
comprehensively provided. For example, the TEDCO Builder Fund program provides
early-stage investment along with executive management support, executive management
services, and mentorship to companies run by individuals with a socially or economically
disadvantaged background that hinders access to traditional forms of capital.
State Expenditures: TEDCO advises that it can implement the program for
approximately $250,000 annually. This estimate includes $125,000 for one full-time
employee to administer the program (salary, benefits, and related costs), plus $125,000 to
fund a speaker series ($5,000), mentors ($40,000), loaned executives ($50,000), and
general administrative expenses ($30,000). TEDCO employees are not State employees.
Therefore, accounting for the bill’s October 1, 2021 effective date, general fund
expenditures increase by approximately $187,500 in fiscal 2022 and by approximately
$250,000 annually thereafter. TEDCO advises that these are new costs.
TEDCO indicates that this level of spending could engage 130 companies each year,
totaling approximately 1,500 hours of technical assistance across the various services.
Small Business Effect: Small businesses benefit from the additional comprehensive
services provided by TEDCO under the program.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Maryland Technology Development Corporation; Department of
Legislative Services
HB 987/ Page 2
Fiscal Note History: First Reader - February 17, 2021
an/vlg Third Reader - April 12, 2021
Revised - Amendment(s) - April 12, 2021
Analysis by: Stephen M. Ross Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 987/ Page 3


Statutes affected:
Text - First - Economic Development – Comprehensive Technical Assistance Program – Establishment: 10-416 Economic Development
Text - Third - Economic Development – Comprehensive Technical Assistance Program – Establishment: 10-416 Economic Development