EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*sb0906*
SENATE BILL 906
C8 3lr3112
CF HB 622
By: Senator Rosapepe
Introduced and read first time: February 15, 2023
Assigned to: Rules
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 SENATE BILL 906
(B) “FUND” MEANS THE INDUSTRY 4.0 TECHNOLOGY GRANT FUND. 1
(C) (1) “INDUSTRY 4.0 TECHNOLOGY ” MEANS SMART HARDWARE AN D 2
SOFTWARE MANUFACTURI NG TECHNOLOGIES . 3
(2) “INDUSTRY 4.0 TECHNOLOGY ” INCLUDES: 4
(I) ADVANCED SENSOR INTE GRATION; 5
(II) EMBEDDED SOFTWARE SY STEM APPLICATIONS ; 6
(III) ROBOTICS AND AUTONOM OUS EQUIPMENT THAT C OLLECT 7
DATA; 8
(IV) ENTERPRISE RESOURCE PLANNING (ERP) AND DATA 9
ANALYTICS SOFTWARE ; 10
(V) CLOUD COMPUTING AND CYBERSECURITY SO LUTIONS; 11
(VI) ARTIFICIAL INTELLIGE NCE (AI) FOR CONTINUOUS 12
IMPROVEMENT OF EFFIC IENCY AND PRODUCTIVI TY; AND 13
(VII) INFRASTRUCTURE REQUI RED 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 SENATE BILL 906 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 RELAT ED INFRASTRUCTURE IN ORD ER 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 S UBMIT 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 UN DER THE PROGRAM, THE PROGRAM 12
ADMINISTRATOR SHALL AWARD GRANTS ON A CO MPETITIVE BASIS BASE D 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 ESTA BLISH A SLIDING SCAL E 29
FORMULA FOR THE MATC HING FUNDS REQUIRED BY AN SME MANUFACTURER TO 30 4 SENATE BILL 906
BE PROVIDED A GRANT UNDER THIS SECTION , WITH SME MANUFACTURERS WITH 1
FEWER EMPLOYEES REQU IRING A LESSER PERCENTAGE AND SME 2
MANUFACTURERS WITH M ORE EMPLOYEES REQUIR ING A HIGHER PERCENT AGE. 3
(F) (1) A GRANT AWARDED UNDER THE PROGRAM MAY BE USED F OR 4
PROJECTS THAT DIRECT LY AFFECT MANUFACTUR ING PROCESSES AND FO CUS ON 5
INVESTMENTS IN INDUSTRY 4.0 TECHNOLOGY COMMER CIAL–READY EQUIPMENT 6
THROUGH ESTABLISHED VENDORS OR RELATED I NFRASTRUCTURE . 7
(2) WITHIN 1 YEAR AFTER RECEIVING A GRANT UNDER THE 8
PROGRAM, AN SME MANUFACTURER SHALL S UBMIT 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 RELATE D 13
INFRASTRUCTURE . 14
(3) THE DEPARTMENT MAY REQUIR E A GRANT RECIPIENT THAT 15
FAILS TO FULFILL THE REQUIREMENTS OF THE GRANT TO RETURN 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
SENATE BILL 906 5
(C) THE FUND MAY BE USED ONLY FOR PROVIDING GRANTS UNDER 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 YE ARS 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