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.
*hb0622*
HOUSE BILL 622
C8 3lr1241
CF SB 906
By: Delegates Qi, Phillips, and Stonko Stonko, Hartman, Vogel, and Wu
Introduced and read first time: February 3, 2023
Assigned to: Ways and Means
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 5, 2023
CHAPTER ______
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
2 HOUSE BILL 622
5–2301. 1
(A) IN THIS SUBTITLE THE FO LLOWING WORDS HAVE T HE MEANINGS 2
INDICATED. 3
(B) “FUND” MEANS THE INDUSTRY 4.0 TECHNOLOGY GRANT FUND. 4
(C) (1) “INDUSTRY 4.0 TECHNOLOGY ” MEANS SMART HARDWARE AND 5
SOFTWARE MANUFACTURI NG TECHNOLOGIES . 6
(2) “INDUSTRY 4.0 TECHNOLOGY ” INCLUDES: 7
(I) ADVANCED SENSOR INTE GRATION; 8
(II) EMBEDDED SOFTWARE SY STEM APPLICATIONS ; 9
(III) ROBOTICS AND AUTONOM OUS EQUIPMENT THAT C OLLECT 10
DATA; 11
(IV) ENTERPRISE RESOURCE PLANNING (ERP) AND DATA 12
ANALYTICS SOFTWARE ; 13
(V) CLOUD COMPUTING AND CYBERSECURITY SOLUTI ONS; 14
(VI) ARTIFICIAL INTELLIGE NCE (AI) FOR CONTINUOUS 15
IMPROVEMENT OF EFFIC IENCY AND PRODUCTIVI TY; AND 16
(VII) INFRASTRUCTURE REQUI RED TO IMPLEMENT A 17
QUALIFYING TECHNOLOG Y. 18
(D) “PROGRAM” MEANS THE INDUSTRY 4.0 TECHNOLOGY GRANT 19
PROGRAM. 20
(E) “PROGRAM ADMINISTRATOR ” MEANS THE ENTITY THA T HAS 21
AUTHORITY TO ADMINIS TER THE PROGRAM. 22
(F) “SME MANUFACTURER ” MEANS A SMALL OR MED IUM–SIZED 23
ENTERPRISE MANUFACTU RER. 24
5–2302. 25
(A) THERE IS AN INDUSTRY 4.0 TECHNOLOGY GRANT PROGRAM IN THE 26
DEPARTMENT . 27
HOUSE BILL 622 3
(B) THE DEPARTMENT MAY ENTER INTO A MEMORANDUM OF 1
UNDERSTANDING WITH A STATE–CHARTERED CORPORATIO N UNDER TITLE 10 OF 2
THIS ARTICLE TO AUTH ORIZE THE STATE–CHARTERED CORPORATIO N TO 3
ADMINISTER THE PROGRAM IN ACCORDANCE WITH THIS SUBTITLE . 4
(C) THE PURPOSE OF THE PROGRAM IS TO ASSIST SME MANUFACTURERS 5
IN THE PURCHASE , IMPLEMENTATION , AND RELATED EMPLOYEE TRAINING OF 6
INDUSTRY 4.0 TECHNOLOGY AND RELAT ED INFRASTRUCTURE IN ORDER TO 7
INCREASE PRODUCTIVIT Y, EFFICIENCY, AND COMPETITIVENESS IN THE STATE AND 8
NATIONAL MANUFACTURI NG ENVIRONMENT . 9
(D) TO QUALIFY FOR A GRAN T UNDER THE PROGRAM, AN SME 10
MANUFACTURER SHALL S UBMIT TO THE PROGRAM ADMINISTRATOR AN 11
APPLICATION THAT DEM ONSTRATES THAT : 12
(1) THE COMPANY IS A QUA LIFYING SME MANUFACTURER ; 13
(2) THE COMPA NY HAS BUSINESS OPER ATIONS IN MARYLAND; AND 14
(3) THE COMPANY HAS BEEN IN EXISTENCE FOR OVE R 1 YEAR. 15
(E) (1) IN AWARDING GRANTS UN DER THE PROGRAM, THE PROGRAM 16
ADMINISTRATOR SHALL AWARD GRANTS ON A CO MPETITIVE BASIS BASE D ON: 17
(I) THE PROPOSED PROJECT ’S ALIGNMENT WITH ADO PTION OF 18
INDUSTRY 4.0 TECHNOLOGIES ; 19
(II) THE APPLICANT ’S DEMONSTRATED OVERA LL COMMITMENT 20
TO, OR STRATEGY FOR , INDUSTRY 4.0 TECHNOLOGY ADOPTION ; 21
(III) THE DEMONSTRATED POS ITIVE IMPACT OF THE INDUSTRY 22
4.0 TECHNOLOGY ON THE APPLICANT’S BUSINESS OPERATION S AND 23
COMPETITIVENESS ; AND 24
(IV) ANY OTHER INFORMATIO N REQUESTED BY THE PROGRAM 25
ADMINISTRATOR . 26
(2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , THE 27
DEPARTMENT SHALL AWAR D TO AN ELIGIBLE SME MANUFACTURER A GRANT OF AT 28
LEAST $25,000, BUT NOT EXCEEDING $500,000. 29
(3) (I) AN SME MANUFACTURER THAT RE CEIVES A GRANT UNDER 30
THIS SUBSECTION SHAL L PROVIDE MATCHING F UNDS IN THE AMOUNTS SPECIFIED 31
UNDER THIS PARAGRAPH . 32 4 HOUSE BILL 622
(II) THE DEPARTMENT SHALL ESTA BLISH A SLIDING SCAL E 1
FORMULA F OR THE MATCHING FUND S REQUIRED BY AN SME MANUFACTURER TO 2
BE PROVIDED A GRANT UNDER THIS SECTION , WITH SME MANUFACTURERS WITH 3
FEWER EMPLOYEES REQU IRING A LESSER PERCE NTAGE AND SME 4
MANUFACTURERS WITH M ORE EMPLOYEES REQUIR ING A HIGHER PERCENT AGE. 5
(4) (I) THE DEPARTMENT SHALL RESE RVE AT LEAST 20% OF THE 6
FUNDS AVAILABLE DURI NG EACH FISCAL YEAR FOR AWARDING GRANTS UNDER THIS 7
SUBSECTION TO SME MANUFACTURERS THAT E MPLOY 50 OR FEWER EMPLOYEES . 8
(II) IF THE TOTAL AMOUNT O F GRANTS APPLIED FOR BY SME 9
MANUFACTURE RS THAT EMPLOY 50 OR FEWER EMPLOYEES I S LESS THAN THE 10
AMOUNT OF FUNDS RESE RVED UNDER SUBPARAGR APH (I) OF THIS PARAGRAPH 11
DURING A FISCAL YEAR , THE DEPARTMENT MAY UTILIZ E THE BALANCE OF THE 12
RESERVED FUNDS FOR A WARDING GRANTS UNDER THIS SUBSECTION TO SME 13
MANUFACTURERS THAT EMPLO Y MORE THAN 50 EMPLOYEES. 14
(F) (1) A GRANT AWARDED UNDER THE PROGRAM MAY BE USED F OR 15
PROJECTS THAT DIRECT LY AFFECT MANUFACTUR ING PROCESSES AND FO CUS ON 16
INVESTMENTS IN INDUSTRY 4.0 TECHNOLOGY COMMERCIA L–READY EQUIPMENT 17
THROUGH ESTABLIS HED VENDORS OR RELAT ED INFRASTRUCTURE . 18
(2) WITHIN 1 YEAR AFTER RECEIVING A GRANT UNDER THE 19
PROGRAM, AN SME MANUFACTURER SHALL S UBMIT TO THE DEPARTMENT A 20
LETTER THAT: 21
(I) DESCRIBES HOW THE GR ANT FUNDING WAS USED ; AND 22
(II) INCLUDES ANY INVOICE S RE LATED TO THE 23
IMPLEMENTATION OF TH E INDUSTRY 4.0 TECHNOLOGY OR RELATE D 24
INFRASTRUCTURE . 25
(3) THE DEPARTMENT MAY REQUIR E A GRANT RECIPIENT THAT 26
FAILS TO FULFILL THE REQUIREMENTS OF THE GRANT TO RETURN ALL OR PART OF 27
THE GRANT TO THE PROGRAM. 28
5–2303. 29
(A) (1) THERE IS AN INDUSTRY 4.0 TECHNOLOGY GRANT FUND. 30
(2) THE SECRETARY SHALL ADMIN ISTER THE FUND. 31
HOUSE BILL 622 5
(3) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT 1
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 2
(II) THE STATE TREASURER SHALL HOLD THE FUND 3
SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 4
(B) THE FUND CONSISTS OF : 5
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 6
(2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 7
THE BENEFIT OF THE FUND. 8
(C) THE FUND MAY BE USED ONLY FOR PROVIDING GRANTS UNDER THE 9
PROGRAM TO ELIGIBLE A PPLICANTS. 10
(D) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 11
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 12
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO 13
THE GENERAL FUND OF THE STATE. 14
(3) FOR EACH OF FISCAL YE ARS 2024 2025 THROUGH 2028, THE 15
GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIA TION OF 16
$10,000,000 $1,000,000 TO THE FUND. 17
5–2304. 18
THE SECRETARY SHALL ADOPT REGULATIONS NECESSARY TO CARRY OUT 19
THIS SUBTITLE. 20
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 21
October 1, 2023. 22
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.