EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb1384*
HOUSE BILL 1384
C8 2lr2879
By: Delegate Qi
Introduced and read first time: February 11, 2022
Assigned to: Ways and Means
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 26, 2022
CHAPTER ______
AN ACT concerning 1
Economic Development – Industry 4.0 Technology Grant Program 2
(Maryland Manufacturing Innovation Act of 2022) 3
FOR the purpose of establishing the Industry 4.0 Technology Grant Program in the 4
Department of Commerce to provide grants to certain small and medium–sized 5
manufacturing enterprises to assist those manufacturers with implementing new 6
Industry 4.0 technology or related infrastructure for certain purposes; creating the 7
Maryland Manufacturing 4.0 Initiative Governance Committee; requiring the 8
Governor to include in the annual budget bill a certain appropriation to the Program; 9
and generally relating to the Industry 4.0 Technology Grant Program for 10
manufacturers. 11
BY adding to 12
Article – Economic Development 13
Section 5–1901 and 5–1902 through 5–1903 to be under the new subtitle “Subtitle 14
19. Industry 4.0 Technology Grant Program” 15
Annotated Code of Maryland 16
(2018 Replacement Volume and 2021 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Economic Development 20
SUBTITLE 19. INDUSTRY 4.0 TECHNOLOGY GRANT PROGRAM. 21 2 HOUSE BILL 1384
5–1901. 1
(A) IN THIS SUBTITLE THE FO LLOWING WORDS HAVE T HE MEANINGS 2
INDICATED. 3
(B) “COMMITTEE” MEANS THE MARYLAND MANUFACTURING 4.0 4
INITIATIVE GOVERNANCE COMMITTEE. 5
(B) (C) (1) “INDUSTRY 4.0 TECHNOLOGY ” MEANS SMART HARDWARE 6
AND SOFTWARE MANUFAC TURING TECHNOLOGIES . 7
(2) “INDUSTRY 4.0 TECHNOLOGY ” INCLUDES: 8
(I) INDUSTRIAL INTERNET OF THINGS INFRASTRUCTURE 9
HARDWARE ; 10
(II) PREDICTIVE MAINTENAN CE SOFTWARE CLOUD COMPUTING 11
AND CYBERSECURITY SO LUTIONS; 12
(III) SENSOR INTEGRATION I NTO INDUSTRIAL TOOLS AND 13
MACHINERY T O DETERMINE WEAR OR FLAWS ARTIFICIAL INTELLIGENCE (AI) FOR 14
CONTINUOUS IMPROVEME NT OF EFFICIENCY AND PRODUCTIVITY ; 15
(IV) INDUSTRIAL WEARABLE TECHNOLOGY INTEGRATI ON TO 16
PREVENT EMPLOYEE INJ URIES ROBOTS AND AUTONOMOU S EQUIPMENT TO HELP 17
AUTOMATE WORKFLOW ; 18
(V) DATA ANALYTICS AND V ISUALIZATION SOFTWAR E; 19
(VI) SENSOR TRANSMISSION OF REAL–TIME INFORMATION 20
FROM FACTORY FLOOR T O CUSTOMERS OR SUPPL IERS CYBER PHYSICAL SYSTEMS 21
(CPS) TO ENABLE SEAMLESS C OMMUNICATION WITH OT HER “SMART” DEVICES; 22
AND 23
(VII) RADIO FREQUENCY IDENTIFICATION (RFID) TAGGING 24
SOFTWARE AND EQUIPME NT UTILIZED TO TRACK INVENTORY AUGMENTED REALITY , 25
VIRTUAL REALITY , AND DIGITAL TWIN TO DIGITALLY REPRESENT PHYSICAL 26
PRODUCTS OR SYSTEMS WITHOUT REQUIRING IN VESTMENT TO ITERATIV ELY 27
CREATE THE ACT UAL PRODUCTS . 28
(D) “MINORITY BUSINESS ENT ERPRISE” HAS THE MEANING STAT ED IN § 29
14–301 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 30
HOUSE BILL 1384 3
(C) (E) “PROGRAM” MEANS THE INDUSTRY 4.0 TECHNOLOGY GRANT 1
PROGRAM. 2
(D) (F) “SME MANUFACTURER ” MEANS A SMALL OR MED IUM–SIZED 3
ENTERPRISE MANUFACTU RER. 4
5–1902. 5
(A) THERE IS A MARYLAND MANUFACTURING 4.0 INITIATIVE 6
GOVERNANCE COMMITTEE IN THE DEPARTMENT . 7
(B) (1) THE SECRETARY SHALL APPOI NT THE MEMBERS OF TH E 8
COMMITTEE, INCLUDING REPRESENTATIVES OF M ANUFACTURING ORGANIZ ATIONS 9
IN THE STATE AND THE DEPARTMENT . 10
(2) THE MEMBERSHIP OF THE COMMITTEE SHALL REPRE SENT THE 11
DIVERSITY OF THE STATE. 12
(C) THE COMMITTEE SHALL : 13
(1) RESEARCH BEST PRACTI CES FROM OTHER STATE S IN 14
IMPLEMENTING PROGRAMS SIMILAR TO THE PROGRAM, INCLUDING ELIGIBILIT Y 15
CRITERIA, APPLICATION PROCESSE S, PROGRAM REQUIREMENTS , WORKFORCE 16
TRANSITION SUPPORT S TRATEGIES, AND THE DISSEMINATIO N OF FUNDS; 17
(2) ESTABLISH THE PROGRAM APPLICATION P ROCESS FOR SME 18
MANUFACTURERS TH AT REPRESENTS BEST P RACTICES; 19
(3) ESTABLISH ELIGIBILIT Y CRITERIA FOR PARTI CIPATION IN THE 20
PROGRAM THAT REPRESEN T BEST PRACTICES , INCLUDING WITH RESPE CT TO 21
MANUFACTURER SIZE ; 22
(4) CREATE GUIDELINES FO R THE DISTRIBUTION A ND USE OF 23
PROGRAM FUNDS THAT RE PRESENT BEST PRACTICE S; AND 24
(5) IN COLLABORATION WIT H THE GOVERNOR’S OFFICE OF SMALL, 25
MINORITY, AND WOMEN BUSINESS AFFAIRS, ENCOURAGE PARTICIPAT ION OF 26
MINORITY BUSINESS EN TERPRISES IN THE PROGRAM. 27
5–1903. 28
(A) THERE IS AN INDUSTRY 4.0 TECHNOLOGY GRANT PROGRAM IN THE 29
DEPARTMENT . 30
4 HOUSE BILL 1384
(B) THE PURPOSE OF THE PROGRAM IS TO ASSIST SME MANUFACTURERS 1
IN ADOPTING INDUSTRY 4.0 TECHNOLOGY AND RELAT ED INFRASTRUCTURE IN 2
ORDER TO INCREASE PR ODUCTIVITY, EFFICIENCY, AND COMPETITIVENESS IN THE 3
STATE AND NATIONAL MA NUFACTURING ENVIRONMENT . 4
(C) TO QUALIFY FOR A GRAN T UNDER THE PROGRAM, AN SME 5
MANUFACTURER SHALL S UBMIT TO THE DEPARTMENT AN APPLICA TION THAT: 6
(1) MEETS THE REQUIREMEN TS ESTABLISHED BY TH E COMMITTEE 7
UNDER § 5–1902 OF THIS SUBTITLE; 8
(1) (2) DEMONSTRATES THAT THE COMPANY IS A QUALIFYING SME 9
MANUFACTURER ; AND 10
(2) (3) DESCRIBES THE SME MANUFACTURER ’S PLANS TO: 11
(I) MAKE A CAPITAL INVES TMENT IN THE FORM OF SMART 12
INDUSTRY 4.0 TECHNOLOGY MANUFACTU RING TECHNOLOGIES WI THIN ITS 13
MARYLAND OPERATION ; OR 14
(II) MAKE A CAPITAL INVES TMENT FOR THE PROPER 15
INFRASTRUCTURE FOR I MPLEMENTATION OF INDUSTRY 4.0 TECHNOLOGY . 16
(D) (1) SUBJECT TO THE LIMITA TION UNDER PARAGRAPH (2) OF THIS 17
SUBSECTION, IN AWARDING GRANTS U NDER THE PROGRAM, THE DEPARTMENT 18
SHALL AWARD A DOLLAR –FOR–DOLLAR MATCHING GRAN T FOR THE COST OF EA CH 19
ELIGIBLE PROJECT . 20
(2) THE DEPARTMENT MAY NOT AW ARD MORE THAN $25,000 IN 21
QUALIFYING GRANTS TO A SINGLE SME MANUFACTURER A GRANT AWARDED TO AN 22
SME MANUFACTURER SHALL B E AT LEAST $25,000. 23
(E) (1) A GRANT AWARDED UNDER THE PROGRAM MAY BE USED , IN 24
ACCORDANCE WITH THE GUIDELINES ESTABLISH ED BY THE COMMITTEE, FOR 25
PROJECTS THAT DIRECT LY AFFECT MANUFACTUR ING PROCESSES AND FO CUS ON 26
INVESTMENTS IN INDUSTRY 4.0 TECHNOLOGY COMMERCIA L–READY EQUIPMENT 27
THROUGH ESTABLIS HED VENDORS , OR RELATED INFRASTRU CTURE. 28
(2) WITHIN 1 YEAR AFTER RECEIVING A GRANT UNDER THE 29
PROGRAM, AN SME MANUFACTURER SHALL S UBMIT TO THE DEPARTMENT A 30
LETTER THAT: 31
(I) DESCRIBES HOW THE GR ANT FUNDING WAS USED ; AND 32
HOUSE BILL 1384 5
(II) INCLUDES ANY INVOICE S RELATED TO THE 1
IMPLEMENTATION OF TH E INDUSTRY 4.0 TECHNOLOGY OR RELATE D 2
INFRASTRUCTURE . 3
(3) THE DEPARTMENT MAY REQUIR E A GRANT RECIPIENT THAT 4
FAILS TO FULFILL THE REQUIREMENTS OF THE GRANT TO RETURN ALL OR PART OF 5
THE GRANT TO THE PROGRAM. 6
(F) FOR FISCAL YEAR 2024 AND EACH FISCAL YEAR THEREAFTER , THE 7
GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIA TION OF 8
$5,000,000 $1,000,000 FOR THE PROGRAM. 9
(G) THE SECRETARY SHALL ADOPT REGULATIONS NECESSAR Y TO CARRY 10
OUT THIS SECTION . 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 12
October 1, 2022. It shall remain effective for a period of 3 years and, at the end of September 13
30, 2025, this Act, with no further action required by the General Assembly, shall be 14
abrogated and of no further force and effect. 15
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.