EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0622*
HOUSE BILL 622
C8 3lr1241
By: Delegates Qi, Phillips, and Stonko
Introduced and read first time: February 3, 2023
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Economic Development – Industry 4.0 Technology Grant Program 2
FOR the purpose of establishing the Industry 4.0 Technology Grant Program in the 3
Department of Commerce to provide grants to certain small and medium–sized 4
manufacturing enterprises to assist those manufacturers with implementing new 5
Industry 4.0 technology or related infrastructure for certain purposes; establishing 6
the Industry 4.0 Technology Grant Fund as a special, nonlapsing fund; requiring the 7
Governor to include in the annual budget bill a certain appropriation to the Fund in 8
certain fiscal years; and generally relating to the Industry 4.0 Technology Grant 9
Program for manufacturers. 10
BY adding to 11
Article – Economic Development 12
Section 5–2301 through 5–2304 to be under the new subtitle “Subtitle 23. Industry 13
4.0 Technology Grant Program” 14
Annotated Code of Maryland 15
(2018 Replacement Volume and 2022 Supplement) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Article – Economic Development 19
SUBTITLE 23. INDUSTRY 4.0 TECHNOLOGY GRANT PROGRAM. 20
5–2301. 21
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 22
INDICATED. 23
2 HOUSE BILL 622
(B) “FUND” MEANS THE INDUSTRY 4.0 TECHNOLOGY GRANT FUND. 1
(C) (1) “INDUSTRY 4.0 TECHNOLOGY ” MEANS SMART HARDWARE AND 2
SOFTWARE MANUFACTURI NG TECHNOLOGIES . 3
(2) “INDUSTRY 4.0 TECHNOLOGY ” INCLUDES: 4
(I) ADVANCED SENSOR INTEGRATION ; 5
(II) EMBEDDED SOFTWA RE SYSTEM APPLICATIO NS; 6
(III) ROBOTICS AND AUTONOMOUS EQUIP MENT THAT COLLECT 7
DATA; 8
(IV) ENTERPRISE RESOURCE PLANNING (ERP) AND DATA 9
ANALYTICS SOFTWARE ; 10
(V) CLOUD COMPUTING AND CYBERSECURITY SO LUTIONS; 11
(VI) ARTIFICIAL INTELLIGEN CE (AI) FOR CONTINUOUS 12
IMPROVEMENT OF EFFIC IENCY AND PRODUCTIVI TY; AND 13
(VII) INFRASTRUCTURE REQUIRED TO IMPLEMENT A 14
QUALIFYING TECHNOLOG Y. 15
(D) “PROGRAM” MEANS THE INDUSTRY 4.0 TECHNOLOGY GRANT 16
PROGRAM. 17
(E) “PROGRAM ADMINISTRATOR ” MEANS THE ENTITY THA T HAS 18
AUTHORITY TO ADMINIS TER THE PROGRAM. 19
(F) “SME MANUFACTURER ” MEANS A SMALL OR MED IUM–SIZED 20
ENTERPRISE MANUFACTURER . 21
5–2302. 22
(A) THERE IS AN INDUSTRY 4.0 TECHNOLOGY GRANT PROGRAM IN THE 23
DEPARTMENT . 24
(B) THE DEPARTMENT MAY ENTER INTO A MEMORANDUM OF 25
UNDERSTANDING WITH A STATE–CHARTERED CORPORATIO N UNDER TITLE 10 OF 26
THIS ARTICLE TO AUTH ORIZE THE STATE–CHARTERED CORPORATIO N TO 27
ADMINISTER THE PROGRAM IN ACCORDANCE WITH THIS SUBTITLE. 28 HOUSE BILL 622 3
(C) THE PURPOSE OF THE PROGRAM IS TO ASSIST SME MANUFACTURERS 1
IN THE PURCHASE , IMPLEMENTATION , AND RELATED EMPLOYEE TRAINING OF 2
INDUSTRY 4.0 TECHNOLOGY AND RELATE D INFRASTRUCTURE IN ORDER TO 3
INCREASE PRODUCTIVIT Y, EFFICIENCY, AND COMPETITIVENESS IN THE STATE AND 4
NATIONAL MANUFACTURI NG ENVIRONMENT . 5
(D) TO QUALIFY FOR A GRAN T UNDER THE PROGRAM, AN SME 6
MANUFACTURER SHALL SUBMIT TO THE PROGRAM ADMINISTRATOR AN 7
APPLICATION THAT DEMONSTRATES THAT : 8
(1) THE COMPANY IS A QUA LIFYING SME MANUFACTURER ; 9
(2) THE COMPANY HAS BUSI NESS OPERATIONS IN MARYLAND; AND 10
(3) THE COMPANY HAS BEEN IN EXISTENCE FOR OVE R 1 YEAR. 11
(E) (1) IN AWARDING GRANTS UNDE R THE PROGRAM, THE PROGRAM 12
ADMINISTRATOR SHALL AWARD GRANTS ON A COMPETIT IVE BASIS BASED ON: 13
(I) THE PROPOSED PROJECT ’S ALIGNMENT WITH ADO PTION OF 14
INDUSTRY 4.0 TECHNOLOGIES ; 15
(II) THE APPLICANT ’S DEMONSTRATED OVERA LL COMMITMENT 16
TO, OR STRATEGY FOR , INDUSTRY 4.0 TECHNOLOGY ADOPTION ; 17
(III) THE DEMONSTRATED POS ITIVE IMPACT OF THE INDUSTRY 18
4.0 TECHNOLOGY ON THE AP PLICANT’S BUSINESS OPERATION S AND 19
COMPETITIVENESS ; AND 20
(IV) ANY OTHER INFORMATIO N REQUESTED BY THE PROGRAM 21
ADMINISTRATOR . 22
(2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION, THE 23
DEPARTMENT SHALL AWAR D TO AN ELIGIBLE SME MANUFACTURER A GRANT OF AT 24
LEAST $25,000, BUT NOT EXCEEDING $500,000. 25
(3) (I) AN SME MANUFACTURER THAT RE CEIVES A GRANT UNDER 26
THIS SUBSECTION SHAL L PROVIDE MATCHING F UNDS IN THE AMOUNTS SPECIFIED 27
UNDER THIS PARAGRAPH . 28
(II) THE DEPARTMENT SHALL ESTABLISH A SLIDING SCALE 29
FORMULA FOR THE MATCHING FUNDS REQUI RED BY AN SME MANUFACTURER TO 30 4 HOUSE BILL 622
BE PROVIDED A GRANT UNDER THIS SECTION , WITH SME MANUFACTURERS WITH 1
FEWER EMPLOYEES REQUIRING A LESSER PERCENTAGE AND SME 2
MANUFACTURERS WITH M ORE EMPLOYEES REQUIRING A HIGHER PERCENTAGE . 3
(F) (1) A GRANT AWARDED UNDER THE PROGRAM MAY BE USED F OR 4
PROJECTS THAT DIRECTLY AFFECT MANUFACTURING PROCESSES AND FOCUS ON 5
INVESTMENTS IN INDUSTRY 4.0 TECHNOLOGY COMMERCIAL –READY EQUIPMENT 6
THROUGH ESTABLISHED VENDORS OR RELATED INFRASTRUCTURE . 7
(2) WITHIN 1 YEAR AFTER RECEIVING A GRANT UNDER THE 8
PROGRAM, AN SME MANUFACTURER SHALL SUBMIT TO THE DEPARTMENT A 9
LETTER THAT: 10
(I) DESCRIBES HOW THE GR ANT FUNDING WAS USED ; AND 11
(II) INCLUDES ANY INVOICE S RELATED TO THE 12
IMPLEMENTATION OF TH E INDUSTRY 4.0 TECHNOLOGY OR RELATED 13
INFRASTRUCTURE . 14
(3) THE DEPARTMENT MAY REQUIR E A GRANT RECIPIENT THAT 15
FAILS TO FULFILL THE REQUIREMENTS OF THE GRANT TO RETU RN ALL OR PART OF 16
THE GRANT TO THE PROGRAM. 17
5–2303. 18
(A) (1) THERE IS AN INDUSTRY 4.0 TECHNOLOGY GRANT FUND. 19
(2) THE SECRETARY SHALL ADMIN ISTER THE FUND. 20
(3) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT 21
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 22
(II) THE STATE TREASURER SHALL HOLD THE FUND 23
SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 24
(B) THE FUND CONSISTS OF: 25
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 26
(2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 27
THE BENEFIT OF THE FUND. 28
HOUSE BILL 622 5
(C) THE FUND MAY BE USED ONLY FOR PROVIDING GRANTS UND ER THE 1
PROGRAM TO ELIGIBLE A PPLICANTS. 2
(D) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 3
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 4
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 5
THE GENERAL FUND OF THE STATE. 6
(3) FOR EACH OF FISCAL YEARS 2024 THROUGH 2028, THE 7
GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIA TION OF 8
$10,000,000 TO THE FUND. 9
5–2304. 10
THE SECRETARY SHALL ADOPT REGULATIONS NECESSAR Y TO CARRY OUT 11
THIS SUBTITLE. 12
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 13
October 1, 2023. 14