MD
Maryland House Bill HB622

Maryland 2023 Regular Session

Maryland House Bill HB622 Compare Versions

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1- WES MOORE, Governor Ch. 498
21
3-– 1 –
4-Chapter 498
5-(House Bill 622)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *hb0622*
89
9-Economic Development – Industry 4.0 Technology Grant Program
10+HOUSE BILL 622
11+C8 3lr1241
12+ CF SB 906
13+By: Delegates Qi, Phillips, and Stonko Stonko, Hartman, Vogel, and Wu
14+Introduced and read first time: February 3, 2023
15+Assigned to: Ways and Means
16+Committee Report: Favorable with amendments
17+House action: Adopted
18+Read second time: March 5, 2023
1019
11-FOR the purpose of establishing the Industry 4.0 Technology Grant Program in the
12-Department of Commerce to provide grants to certain small and medium–sized
13-manufacturing enterprises to assist those manufacturers with implementing new
14-Industry 4.0 technology or related infrastructure for certain purposes; establishing
15-the Industry 4.0 Technology Grant Fund as a special, nonlapsing fund; requiring the
16-Governor to include in the annual budget bill a certain appropriation to the Fund in
17-certain fiscal years; and generally relating to the Industry 4.0 Technology Grant
18-Program for manufacturers.
20+CHAPTER ______
1921
20-BY adding to
21- Article – Economic Development
22-Section 5–2301 through 5–2304 to be under the new subtitle “Subtitle 23. Industry
23-4.0 Technology Grant Program”
24- Annotated Code of Maryland
25- (2018 Replacement Volume and 2022 Supplement)
22+AN ACT concerning 1
2623
27- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
28-That the Laws of Maryland read as follows:
24+Economic Development – Industry 4.0 Technology Grant Program 2
2925
30-Article – Economic Development
26+FOR the purpose of establishing the Industry 4.0 Technology Grant Program in the 3
27+Department of Commerce to provide grants to certain small and medium–sized 4
28+manufacturing enterprises to assist those manufacturers with implementing new 5
29+Industry 4.0 technology or related infrastructure for certain purposes; establishing 6
30+the Industry 4.0 Technology Grant Fund as a special, nonlapsing fund; requiring the 7
31+Governor to include in the annual budget bill a certain appropriation to the Fund in 8
32+certain fiscal years; and generally relating to the Industry 4.0 Technology Grant 9
33+Program for manufacturers. 10
3134
32-SUBTITLE 23. INDUSTRY 4.0 TECHNOLOGY GRANT PROGRAM.
35+BY adding to 11
36+ Article – Economic Development 12
37+Section 5–2301 through 5–2304 to be under the new subtitle “Subtitle 23. Industry 13
38+4.0 Technology Grant Program” 14
39+ Annotated Code of Maryland 15
40+ (2018 Replacement Volume and 2022 Supplement) 16
3341
34-5–2301.
42+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
43+That the Laws of Maryland read as follows: 18
3544
36- (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
37-INDICATED.
45+Article – Economic Development 19
3846
39- (B) “FUND” MEANS THE INDUSTRY 4.0 TECHNOLOGY GRANT FUND.
47+SUBTITLE 23. INDUSTRY 4.0 TECHNOLOGY GRANT PROGRAM. 20
48+ 2 HOUSE BILL 622
4049
41- (C) (1) “INDUSTRY 4.0 TECHNOLOGY ” MEANS SMART HARDWARE AND
42-SOFTWARE MANUFACTURI NG TECHNOLOGIES .
4350
44- (2) “INDUSTRY 4.0 TECHNOLOGY ” INCLUDES:
51+5–2301. 1
4552
46- (I) ADVANCED SENSOR INTE GRATION;
53+ (A) IN THIS SUBTITLE THE FO LLOWING WORDS HAVE T HE MEANINGS 2
54+INDICATED. 3
4755
48- (II) EMBEDDED SOFTWARE SY STEM APPLICATIONS ; Ch. 498 2023 LAWS OF MARYLAND
56+ (B) “FUND” MEANS THE INDUSTRY 4.0 TECHNOLOGY GRANT FUND. 4
4957
50-– 2 –
58+ (C) (1) “INDUSTRY 4.0 TECHNOLOGY ” MEANS SMART HARDWARE AND 5
59+SOFTWARE MANUFACTURI NG TECHNOLOGIES . 6
5160
52- (III) ROBOTICS AND AUTONOM OUS EQUIPMENT THAT C OLLECT
53-DATA;
61+ (2) “INDUSTRY 4.0 TECHNOLOGY ” INCLUDES: 7
5462
55- (IV) ENTERPRISE RESOURCE PLANNING (ERP) AND DATA
56-ANALYTICS SOFTWARE ;
63+ (I) ADVANCED SENSOR INTE GRATION; 8
5764
58- (V) CLOUD COMPUTING AND CYBERSECURITY SO LUTIONS;
65+ (II) EMBEDDED SOFTWARE SY STEM APPLICATIONS ; 9
5966
60- (VI) ARTIFICIAL INTELLIGE NCE (AI) FOR CONTINUOUS
61-IMPROVEMENT OF EFFIC IENCY AND PRODUCTIVI TY; AND
67+ (III) ROBOTICS AND AUTONOM OUS EQUIPMENT THAT C OLLECT 10
68+DATA; 11
6269
63- (VII) INFRASTRUCTURE REQUI RED TO IMPLEMENT A
64-QUALIFYING TECHNOLOG Y.
70+ (IV) ENTERPRISE RESOURCE PLANNING (ERP) AND DATA 12
71+ANALYTICS SOFTWARE ; 13
6572
66- (D) “PROGRAM” MEANS THE INDUSTRY 4.0 TECHNOLOGY GRANT
67-PROGRAM.
73+ (V) CLOUD COMPUTING AND CYBERSECURITY SOLUTI ONS; 14
6874
69- (E) “PROGRAM ADMINISTRAT OR” MEANS THE ENTITY THA T HAS
70-AUTHORITY TO ADMINIS TER THE PROGRAM.
75+ (VI) ARTIFICIAL INTELLIGE NCE (AI) FOR CONTINUOUS 15
76+IMPROVEMENT OF EFFIC IENCY AND PRODUCTIVI TY; AND 16
7177
72- (F) “SME MANUFACTURER ” MEANS A SMALL OR MED IUM–SIZED
73-ENTERPRISE MANUFACTU RER.
78+ (VII) INFRASTRUCTURE REQUI RED TO IMPLEMENT A 17
79+QUALIFYING TECHNOLOG Y. 18
7480
75-5–2302.
81+ (D) “PROGRAM” MEANS THE INDUSTRY 4.0 TECHNOLOGY GRANT 19
82+PROGRAM. 20
7683
77- (A) THERE IS AN INDUSTRY 4.0 TECHNOLOGY GRANT PROGRAM IN THE
78-DEPARTMENT .
84+ (E) “PROGRAM ADMINISTRATOR ” MEANS THE ENTITY THA T HAS 21
85+AUTHORITY TO ADMINIS TER THE PROGRAM. 22
7986
80- (B) THE DEPARTMENT MAY ENTER INTO A MEMORANDUM OF
81-UNDERSTANDING WITH A STATE–CHARTERED CORPORATIO N UNDER TITLE 10 OF
82-THIS ARTICLE TO AUTH ORIZE THE STATE–CHARTERED CORPORATIO N TO
83-ADMINISTER THE PROGRAM IN ACCORDANCE WITH THIS SUBTITLE .
87+ (F) “SME MANUFACTURER ” MEANS A SMALL OR MED IUM–SIZED 23
88+ENTERPRISE MANUFACTU RER. 24
8489
85- (C) THE PURPOSE OF THE PROGRAM IS TO ASSIST SME MANUFACTURERS
86-IN THE PURCHASE , IMPLEMENTATION , AND RELATED EMPLOYEE TRAINING OF
87-INDUSTRY 4.0 TECHNOLOGY AND RELAT ED INFRASTRUCTURE IN ORDER TO
88-INCREASE PRODUCTIVIT Y, EFFICIENCY, AND COMPETITIVENESS IN THE STATE AND
89-NATIONAL MANUFA CTURING ENVIRONMENT .
90+5–2302. 25
9091
91- (D) TO QUALIFY FOR A GRAN T UNDER THE PROGRAM, AN SME
92-MANUFACTURER SHALL S UBMIT TO THE PROGRAM ADMINISTRATOR AN
93-APPLICATION THAT DEM ONSTRATES THAT :
94- WES MOORE, Governor Ch. 498
92+ (A) THERE IS AN INDUSTRY 4.0 TECHNOLOGY GRANT PROGRAM IN THE 26
93+DEPARTMENT . 27
94+ HOUSE BILL 622 3
9595
96-– 3 –
97- (1) THE COMPANY IS A QUA LIFYING SME MANUFACTURER ;
9896
99- (2) THE COMPANY HAS BUSI NESS OPERATIONS IN MARYLAND; AND
97+ (B) THE DEPARTMENT MAY ENTER INTO A MEMORANDUM OF 1
98+UNDERSTANDING WITH A STATE–CHARTERED CORPORATIO N UNDER TITLE 10 OF 2
99+THIS ARTICLE TO AUTH ORIZE THE STATE–CHARTERED CORPORATIO N TO 3
100+ADMINISTER THE PROGRAM IN ACCORDANCE WITH THIS SUBTITLE . 4
100101
101- (3) THE COMPANY HAS BEEN IN EXISTENCE FOR OVE R 1 YEAR.
102+ (C) THE PURPOSE OF THE PROGRAM IS TO ASSIST SME MANUFACTURERS 5
103+IN THE PURCHASE , IMPLEMENTATION , AND RELATED EMPLOYEE TRAINING OF 6
104+INDUSTRY 4.0 TECHNOLOGY AND RELAT ED INFRASTRUCTURE IN ORDER TO 7
105+INCREASE PRODUCTIVIT Y, EFFICIENCY, AND COMPETITIVENESS IN THE STATE AND 8
106+NATIONAL MANUFACTURI NG ENVIRONMENT . 9
102107
103- (E) (1) IN AWARDING GRANTS UN DER THE PROGRAM, THE PROGRAM
104-ADMINISTRATOR SHALL AWARD GRANTS ON A CO MPETITIVE BASIS BASE D ON:
108+ (D) TO QUALIFY FOR A GRAN T UNDER THE PROGRAM, AN SME 10
109+MANUFACTURER SHALL S UBMIT TO THE PROGRAM ADMINISTRATOR AN 11
110+APPLICATION THAT DEM ONSTRATES THAT : 12
105111
106- (I) THE PROPOSED PROJECT ’S ALIGNMENT WIT H ADOPTION OF
107-INDUSTRY 4.0 TECHNOLOGIES ;
112+ (1) THE COMPANY IS A QUA LIFYING SME MANUFACTURER ; 13
108113
109- (II) THE APPLICANT ’S DEMONSTRATED OVERA LL COMMITMENT
110-TO, OR STRATEGY FOR , INDUSTRY 4.0 TECHNOLOGY ADOPTION ;
114+ (2) THE COMPA NY HAS BUSINESS OPER ATIONS IN MARYLAND; AND 14
111115
112- (III) THE DEMONSTRATED POS ITIVE IMPACT OF THE INDUSTRY
113-4.0 TECHNOLOGY ON THE AP PLICANT’S BUSINESS O PERATIONS AND
114-COMPETITIVENESS ; AND
116+ (3) THE COMPANY HAS BEEN IN EXISTENCE FOR OVE R 1 YEAR. 15
115117
116- (IV) ANY OTHER INFORMATIO N REQUESTED BY THE PROGRAM
117-ADMINISTRATOR .
118+ (E) (1) IN AWARDING GRANTS UN DER THE PROGRAM, THE PROGRAM 16
119+ADMINISTRATOR SHALL AWARD GRANTS ON A CO MPETITIVE BASIS BASE D ON: 17
118120
119- (2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , THE
120-DEPARTMENT SHALL AWAR D TO AN ELIGIBLE SME MANUFACTURER A GRANT OF AT
121-LEAST $25,000, BUT NOT EXCEEDING $500,000.
121+ (I) THE PROPOSED PROJECT ’S ALIGNMENT WITH ADO PTION OF 18
122+INDUSTRY 4.0 TECHNOLOGIES ; 19
122123
123- (3) (I) AN SME MANUFACTURER THAT RE CEIVES A GRANT UNDER
124-THIS SUBSECTION SHAL L PROVIDE MATCHING F UNDS IN THE AMOUNTS SPECIFIED
125-UNDER THIS PARAGRAPH .
124+ (II) THE APPLICANT ’S DEMONSTRATED OVERA LL COMMITMENT 20
125+TO, OR STRATEGY FOR , INDUSTRY 4.0 TECHNOLOGY ADOPTION ; 21
126126
127- (II) THE DEPARTMENT SHALL ESTA BLISH A SLIDING SCAL E
128-FORMULA FOR THE MATC HING FUNDS REQUIRED BY AN SME MANUFACTURER TO
129-BE PROVIDED A GRANT UNDER THIS SECTION , WITH SME MANUFACTURERS WITH
130-FEWER EMPLOYEES REQU IRING A LESSER PERCE NTAGE AND SME
131-MANUFACTURERS WITH M ORE EMPLOYEES REQUIR ING A HIGHER PERCENT AGE.
127+ (III) THE DEMONSTRATED POS ITIVE IMPACT OF THE INDUSTRY 22
128+4.0 TECHNOLOGY ON THE APPLICANT’S BUSINESS OPERATION S AND 23
129+COMPETITIVENESS ; AND 24
132130
133- (4) (I) THE DEPARTMENT SHALL RESERVE AT LEAST 20% OF THE
134-FUNDS AVAILABLE DURI NG EACH FISCAL YEAR FOR AWARDING GRANTS UNDER THIS
135-SUBSECTION TO SME MANUFACTURERS THAT E MPLOY 50 OR FEWER EMPLOYEES .
131+ (IV) ANY OTHER INFORMATIO N REQUESTED BY THE PROGRAM 25
132+ADMINISTRATOR . 26
136133
137- (II) IF THE TOTAL AMOUNT O F GRANTS APPLIED FOR BY SME
138-MANUFACTURERS THAT E MPLOY 50 OR FEWER EMPLOYEES IS L ESS THAN THE
139-AMOUNT OF FUNDS RESE RVED UNDER SUBPARAGR APH (I) OF THIS PARAGRAPH
140-DURING A FISCAL YEAR , THE DEPARTMENT MAY UTILIZ E THE BALANCE OF THE Ch. 498 2023 LAWS OF MARYLAND
134+ (2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , THE 27
135+DEPARTMENT SHALL AWAR D TO AN ELIGIBLE SME MANUFACTURER A GRANT OF AT 28
136+LEAST $25,000, BUT NOT EXCEEDING $500,000. 29
141137
142-– 4 –
143-RESERVED FUNDS FOR A WARDING GRANTS UNDER THIS SUBSECTION TO SME
144-MANUFACTURERS THAT E MPLOY MORE THAN 50 EMPLOYEES.
138+ (3) (I) AN SME MANUFACTURER THAT RE CEIVES A GRANT UNDER 30
139+THIS SUBSECTION SHAL L PROVIDE MATCHING F UNDS IN THE AMOUNTS SPECIFIED 31
140+UNDER THIS PARAGRAPH . 32 4 HOUSE BILL 622
145141
146- (F) (1) A GRANT AWARDED UNDER THE PROGRAM MAY BE USED F OR
147-PROJECTS THAT DIRECT LY AFFECT MANUFACTUR ING PROCESSES AND FO CUS ON
148-INVESTMENTS IN INDUSTRY 4.0 TECHNOLOGY COMMERCIA L–READY EQUIPMENT
149-THROUGH ESTABLISHED VENDORS OR RELATE D INFRASTRUCTURE .
150142
151- (2) WITHIN 1 YEAR AFTER RECEIVING A GRANT UNDER THE
152-PROGRAM, AN SME MANUFACTURER SHALL S UBMIT TO THE DEPARTMENT A
153-LETTER THAT:
154143
155- (I) DESCRIBES HOW THE GR ANT FUNDING WAS USED ; AND
144+ (II) THE DEPARTMENT SHALL ESTA BLISH A SLIDING SCAL E 1
145+FORMULA F OR THE MATCHING FUND S REQUIRED BY AN SME MANUFACTURER TO 2
146+BE PROVIDED A GRANT UNDER THIS SECTION , WITH SME MANUFACTURERS WITH 3
147+FEWER EMPLOYEES REQU IRING A LESSER PERCE NTAGE AND SME 4
148+MANUFACTURERS WITH M ORE EMPLOYEES REQUIR ING A HIGHER PERCENT AGE. 5
156149
157- (II) INCLUDES ANY INVOICE S RELATED TO THE
158-IMPLEMENTATION OF TH E INDUSTRY 4.0 TECHNOLOGY OR RELATE D
159-INFRASTRUCTURE .
150+ (4) (I) THE DEPARTMENT SHALL RESE RVE AT LEAST 20% OF THE 6
151+FUNDS AVAILABLE DURI NG EACH FISCAL YEAR FOR AWARDING GRANTS UNDER THIS 7
152+SUBSECTION TO SME MANUFACTURERS THAT E MPLOY 50 OR FEWER EMPLOYEES . 8
160153
161- (3) THE DEPARTMENT MAY REQUIR E A GRANT RECIPIENT THAT
162-FAILS TO FULFILL THE REQUIREMENTS OF THE GRANT TO RETURN ALL OR PART OF
163-THE GRANT TO THE PROGRAM.
154+ (II) IF THE TOTAL AMOUNT O F GRANTS APPLIED FOR BY SME 9
155+MANUFACTURE RS THAT EMPLOY 50 OR FEWER EMPLOYEES I S LESS THAN THE 10
156+AMOUNT OF FUNDS RESE RVED UNDER SUBPARAGR APH (I) OF THIS PARAGRAPH 11
157+DURING A FISCAL YEAR , THE DEPARTMENT MAY UTILIZ E THE BALANCE OF THE 12
158+RESERVED FUNDS FOR A WARDING GRANTS UNDER THIS SUBSECTION TO SME 13
159+MANUFACTURERS THAT EMPLO Y MORE THAN 50 EMPLOYEES. 14
164160
165-5–2303.
161+ (F) (1) A GRANT AWARDED UNDER THE PROGRAM MAY BE USED F OR 15
162+PROJECTS THAT DIRECT LY AFFECT MANUFACTUR ING PROCESSES AND FO CUS ON 16
163+INVESTMENTS IN INDUSTRY 4.0 TECHNOLOGY COMMERCIA L–READY EQUIPMENT 17
164+THROUGH ESTABLIS HED VENDORS OR RELAT ED INFRASTRUCTURE . 18
166165
167- (A) (1) THERE IS AN INDUSTRY 4.0 TECHNOLOGY GRANT FUND.
166+ (2) WITHIN 1 YEAR AFTER RECEIVING A GRANT UNDER THE 19
167+PROGRAM, AN SME MANUFACTURER SHALL S UBMIT TO THE DEPARTMENT A 20
168+LETTER THAT: 21
168169
169- (2) THE SECRETARY SHALL ADMIN ISTER THE FUND.
170+ (I) DESCRIBES HOW THE GR ANT FUNDING WAS USED ; AND 22
170171
171- (3) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT
172-SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE.
172+ (II) INCLUDES ANY INVOICE S RE LATED TO THE 23
173+IMPLEMENTATION OF TH E INDUSTRY 4.0 TECHNOLOGY OR RELATE D 24
174+INFRASTRUCTURE . 25
173175
174- (II) THE STATE TREASURER SHALL HOLD THE FUND
175-SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND.
176+ (3) THE DEPARTMENT MAY REQUIR E A GRANT RECIPIENT THAT 26
177+FAILS TO FULFILL THE REQUIREMENTS OF THE GRANT TO RETURN ALL OR PART OF 27
178+THE GRANT TO THE PROGRAM. 28
176179
177- (B) THE FUND CONSISTS OF :
180+5–2303. 29
178181
179- (1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND
182+ (A) (1) THERE IS AN INDUSTRY 4.0 TECHNOLOGY GRANT FUND. 30
180183
181- (2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR
182-THE BENEFIT OF THE FUND.
184+ (2) THE SECRETARY SHALL ADMIN ISTER THE FUND. 31
185+ HOUSE BILL 622 5
183186
184- (C) THE FUND MAY BE USED ONLY FOR PROVIDING GRANTS UND ER THE
185-PROGRAM TO ELIGIBLE A PPLICANTS.
186- WES MOORE, Governor Ch. 498
187187
188-– 5 –
189- (D) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND
190-IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED.
188+ (3) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT 1
189+SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 2
191190
192- (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO
193-THE GENERAL FUND OF THE STATE.
191+ (II) THE STATE TREASURER SHALL HOLD THE FUND 3
192+SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 4
194193
195- (3) FOR EACH OF FISCAL YE ARS 2024 2025 THROUGH 2028, THE
196-GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIA TION OF
197-$10,000,000 $1,000,000 TO THE FUND.
194+ (B) THE FUND CONSISTS OF : 5
198195
199-5–2304.
196+ (1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 6
200197
201- THE SECRETARY SHALL ADOPT REGULATIONS NECESSARY TO CARRY O UT
202-THIS SUBTITLE.
198+ (2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 7
199+THE BENEFIT OF THE FUND. 8
203200
204- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
205-October 1, 2023.
201+ (C) THE FUND MAY BE USED ONLY FOR PROVIDING GRANTS UNDER THE 9
202+PROGRAM TO ELIGIBLE A PPLICANTS. 10
206203
207-Approved by the Governor, May 8, 2023.
204+ (D) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 11
205+IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 12
206+
207+ (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO 13
208+THE GENERAL FUND OF THE STATE. 14
209+
210+ (3) FOR EACH OF FISCAL YE ARS 2024 2025 THROUGH 2028, THE 15
211+GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIA TION OF 16
212+$10,000,000 $1,000,000 TO THE FUND. 17
213+
214+5–2304. 18
215+
216+ THE SECRETARY SHALL ADOPT REGULATIONS NECESSARY TO CARRY OUT 19
217+THIS SUBTITLE. 20
218+
219+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 21
220+October 1, 2023. 22
221+
222+
223+
224+
225+Approved:
226+________________________________________________________________________________
227+ Governor.
228+________________________________________________________________________________
229+ Speaker of the House of Delegates.
230+________________________________________________________________________________
231+ President of the Senate.