WES MOORE, Governor Ch. 498
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Chapter 498
(House Bill 622)
AN ACT concerning
Economic Development – Industry 4.0 Technology Grant Program
FOR the purpose of establishing the Industry 4.0 Technology Grant Program in the
Department of Commerce to provide grants to certain small and medium–sized
manufacturing enterprises to assist those manufacturers with implementing new
Industry 4.0 technology or related infrastructure for certain purposes; establishing
the Industry 4.0 Technology Grant Fund as a special, nonlapsing fund; requiring the
Governor to include in the annual budget bill a certain appropriation to the Fund in
certain fiscal years; and generally relating to the Industry 4.0 Technology Grant
Program for manufacturers.
BY adding to
Article – Economic Development
Section 5–2301 through 5–2304 to be under the new subtitle “Subtitle 23. Industry
4.0 Technology Grant Program”
Annotated Code of Maryland
(2018 Replacement Volume and 2022 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Economic Development
SUBTITLE 23. INDUSTRY 4.0 TECHNOLOGY GRANT PROGRAM.
5–2301.
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(B) “FUND” MEANS THE INDUSTRY 4.0 TECHNOLOGY GRANT FUND.
(C) (1) “INDUSTRY 4.0 TECHNOLOGY ” MEANS SMART HARDWARE AND
SOFTWARE MANUFACTURI NG TECHNOLOGIES .
(2) “INDUSTRY 4.0 TECHNOLOGY ” INCLUDES:
(I) ADVANCED SENSOR INTE GRATION;
(II) EMBEDDED SOFTWARE SY STEM APPLICATIONS ; Ch. 498 2023 LAWS OF MARYLAND
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(III) ROBOTICS AND AUTONOM OUS EQUIPMENT THAT C OLLECT
DATA;
(IV) ENTERPRISE RESOURCE PLANNING (ERP) AND DATA
ANALYTICS SOFTWARE ;
(V) CLOUD COMPUTING AND CYBERSECURITY SO LUTIONS;
(VI) ARTIFICIAL INTELLIGE NCE (AI) FOR CONTINUOUS
IMPROVEMENT OF EFFIC IENCY AND PRODUCTIVI TY; AND
(VII) INFRASTRUCTURE REQUI RED TO IMPLEMENT A
QUALIFYING TECHNOLOG Y.
(D) “PROGRAM” MEANS THE INDUSTRY 4.0 TECHNOLOGY GRANT
PROGRAM.
(E) “PROGRAM ADMINISTRAT OR” MEANS THE ENTITY THA T HAS
AUTHORITY TO ADMINIS TER THE PROGRAM.
(F) “SME MANUFACTURER ” MEANS A SMALL OR MED IUM–SIZED
ENTERPRISE MANUFACTU RER.
5–2302.
(A) THERE IS AN INDUSTRY 4.0 TECHNOLOGY GRANT PROGRAM IN THE
DEPARTMENT .
(B) THE DEPARTMENT MAY ENTER INTO A MEMORANDUM OF
UNDERSTANDING WITH A STATE–CHARTERED CORPORATIO N UNDER TITLE 10 OF
THIS ARTICLE TO AUTH ORIZE THE STATE–CHARTERED CORPORATIO N TO
ADMINISTER THE PROGRAM IN ACCORDANCE WITH THIS SUBTITLE .
(C) THE PURPOSE OF THE PROGRAM IS TO ASSIST SME MANUFACTURERS
IN THE PURCHASE , IMPLEMENTATION , AND RELATED EMPLOYEE TRAINING OF
INDUSTRY 4.0 TECHNOLOGY AND RELAT ED INFRASTRUCTURE IN ORDER TO
INCREASE PRODUCTIVIT Y, EFFICIENCY, AND COMPETITIVENESS IN THE STATE AND
NATIONAL MANUFA CTURING ENVIRONMENT .
(D) TO QUALIFY FOR A GRAN T UNDER THE PROGRAM, AN SME
MANUFACTURER SHALL S UBMIT TO THE PROGRAM ADMINISTRATOR AN
APPLICATION THAT DEM ONSTRATES THAT :
WES MOORE, Governor Ch. 498
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(1) THE COMPANY IS A QUA LIFYING SME MANUFACTURER ;
(2) THE COMPANY HAS BUSI NESS OPERATIONS IN MARYLAND; AND
(3) THE COMPANY HAS BEEN IN EXISTENCE FOR OVE R 1 YEAR.
(E) (1) IN AWARDING GRANTS UN DER THE PROGRAM, THE PROGRAM
ADMINISTRATOR SHALL AWARD GRANTS ON A CO MPETITIVE BASIS BASE D ON:
(I) THE PROPOSED PROJECT ’S ALIGNMENT WIT H ADOPTION OF
INDUSTRY 4.0 TECHNOLOGIES ;
(II) THE APPLICANT ’S DEMONSTRATED OVERA LL COMMITMENT
TO, OR STRATEGY FOR , INDUSTRY 4.0 TECHNOLOGY ADOPTION ;
(III) THE DEMONSTRATED POS ITIVE IMPACT OF THE INDUSTRY
4.0 TECHNOLOGY ON THE AP PLICANT’S BUSINESS O PERATIONS AND
COMPETITIVENESS ; AND
(IV) ANY OTHER INFORMATIO N REQUESTED BY THE PROGRAM
ADMINISTRATOR .
(2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , THE
DEPARTMENT SHALL AWAR D TO AN ELIGIBLE SME MANUFACTURER A GRANT OF AT
LEAST $25,000, BUT NOT EXCEEDING $500,000.
(3) (I) AN SME MANUFACTURER THAT RE CEIVES A GRANT UNDER
THIS SUBSECTION SHAL L PROVIDE MATCHING F UNDS IN THE AMOUNTS SPECIFIED
UNDER THIS PARAGRAPH .
(II) THE DEPARTMENT SHALL ESTA BLISH A SLIDING SCAL E
FORMULA FOR THE MATC HING FUNDS REQUIRED BY AN SME MANUFACTURER TO
BE PROVIDED A GRANT UNDER THIS SECTION , WITH SME MANUFACTURERS WITH
FEWER EMPLOYEES REQU IRING A LESSER PERCE NTAGE AND SME
MANUFACTURERS WITH M ORE EMPLOYEES REQUIR ING A HIGHER PERCENT AGE.
(4) (I) THE DEPARTMENT SHALL RESERVE AT LEAST 20% OF THE
FUNDS AVAILABLE DURI NG EACH FISCAL YEAR FOR AWARDING GRANTS UNDER THIS
SUBSECTION TO SME MANUFACTURERS THAT E MPLOY 50 OR FEWER EMPLOYEES .
(II) IF THE TOTAL AMOUNT O F GRANTS APPLIED FOR BY SME
MANUFACTURERS THAT E MPLOY 50 OR FEWER EMPLOYEES IS L ESS THAN THE
AMOUNT OF FUNDS RESE RVED UNDER SUBPARAGR APH (I) OF THIS PARAGRAPH
DURING A FISCAL YEAR , THE DEPARTMENT MAY UTILIZ E THE BALANCE OF THE Ch. 498 2023 LAWS OF MARYLAND
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RESERVED FUNDS FOR A WARDING GRANTS UNDER THIS SUBSECTION TO SME
MANUFACTURERS THAT E MPLOY MORE THAN 50 EMPLOYEES.
(F) (1) A GRANT AWARDED UNDER THE PROGRAM MAY BE USED F OR
PROJECTS THAT DIRECT LY AFFECT MANUFACTUR ING PROCESSES AND FO CUS ON
INVESTMENTS IN INDUSTRY 4.0 TECHNOLOGY COMMERCIA L–READY EQUIPMENT
THROUGH ESTABLISHED VENDORS OR RELATE D INFRASTRUCTURE .
(2) WITHIN 1 YEAR AFTER RECEIVING A GRANT UNDER THE
PROGRAM, AN SME MANUFACTURER SHALL S UBMIT TO THE DEPARTMENT A
LETTER THAT:
(I) DESCRIBES HOW THE GR ANT FUNDING WAS USED ; AND
(II) INCLUDES ANY INVOICE S RELATED TO THE
IMPLEMENTATION OF TH E INDUSTRY 4.0 TECHNOLOGY OR RELATE D
INFRASTRUCTURE .
(3) THE DEPARTMENT MAY REQUIR E A GRANT RECIPIENT THAT
FAILS TO FULFILL THE REQUIREMENTS OF THE GRANT TO RETURN ALL OR PART OF
THE GRANT TO THE PROGRAM.
5–2303.
(A) (1) THERE IS AN INDUSTRY 4.0 TECHNOLOGY GRANT FUND.
(2) THE SECRETARY SHALL ADMIN ISTER THE FUND.
(3) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE.
(II) THE STATE TREASURER SHALL HOLD THE FUND
SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND.
(B) THE FUND CONSISTS OF :
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND
(2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR
THE BENEFIT OF THE FUND.
(C) THE FUND MAY BE USED ONLY FOR PROVIDING GRANTS UND ER THE
PROGRAM TO ELIGIBLE A PPLICANTS.
WES MOORE, Governor Ch. 498
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(D) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED.
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO
THE GENERAL FUND OF THE STATE.
(3) FOR EACH OF FISCAL YE ARS 2024 2025 THROUGH 2028, THE
GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIA TION OF
$10,000,000 $1,000,000 TO THE FUND.
5–2304.
THE SECRETARY SHALL ADOPT REGULATIONS NECESSARY TO CARRY O UT
THIS SUBTITLE.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2023.
Approved by the Governor, May 8, 2023.