Introduced
by
To authorize $1 billion in government borrowing (bonds) for grants and loans to public entities and private businesses engaged in the research, development, marketing and commercialization of life sciences technology; advanced automotive, manufacturing and materials technology; homeland security and defense technology; and basic research in “competitive edge” technologies. A government “strategic economic investment board” appointed by the governor with the advice and consent of the Senate, and composed of representatives of the various organizations likely to receive the money, would disburse the borrowed money. This is the Senate Republican "counter-offer" to Gov. Jennifer Granholm’s $2 billion <a href="http://www.michiganvotes.org/2005-SB-488">"Jobs for Michigan"</a> debt proposal. In addition to authorizing less new debt than the governor, this proposal does not repeal an 1851 prohibition on purchases by the state of equity interest in private companies, requires more legislative oversight and is somewhat more restrictive on the uses for the borrowed money.
Referred to the Committee on Appropriations
Reported without amendment
With the recommendation that the substitute (S-4) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one that revises details. Among these are clarifications of the administration and lines of authority over the borrowed money, and revisions to the allocation of the money. At least $60.0 million would go to the state Forest Development Fund. At least half of the balance would be go to life sciences technology, and the rest to advanced automotive, manufacturing, and materials technology; homeland security and defense technology; and alternative energy technology. Not more than 10 percent could be spent for basic research, not more than 3 percent for administrative expenses, and not more than 2.5 percent to any one business.
The substitute passed by voice vote
Co-sponsored by Sens.
To revise the makeup of the board that would decide who gets the borrowed money, adding more members with expertise in the "high tech venture capital" business, and requiring one of the members to be from the Van Andel Institute in Grand Rapids.
The amendment passed by voice vote
Co-sponsored by Sens.
To change the name of the “Michigan Strategic Fund” to the “Jobs For Michigan Fund,” and revise some details regarding the administration and governance of the fund.
The amendment passed by voice vote
Amendment offered
by
To raise the amount of new government debt the measure would authorize from $1 billion to $2 billion. Assuming a 5-percent interest rate and 30 year amortization, this would raise the annual debt service payments from $66 million to $132 million, and increase the total interest expense from approximately $932 million to $1.865 billion.
The amendment failed by voice vote
Amendment offered
by
To require any individual or entity that contributes to the election campaign urging the public to vote "yes" on this debt proposal to wait at least two years before getting any grants or loans from the borrowed money.
The amendment passed by voice vote
Amendment offered
by
To eliminate a tie bar to Senate Bills 358 and 359, which create a state “life sciences authority” that would subsidize research companies and other entities that develop, market, or commercialize life science products.
The amendment failed by voice vote
Amendment offered
by
To require that extra consideration be given to "minority-owned, female-owned, and businesses representative of traditionally underserved communities" when the borrowed money is distributed.
The amendment failed 15 to 22 (details)
Passed in the Senate 31 to 7 (details)
To authorize $1 billion in government borrowing (bonds) for grants and loans to public entities and private businesses engaged in the research, development, marketing and commercialization of various “competitive edge” technologies identified by the state (see Senate substitute for details). A government “Strategic Economic Investment Board” composed of government officials and representatives of the types of organizations likely to receive the money would disburse the borrowed money. Assuming a 5-percent interest rate and 30 year amortization, the new debt would require annual debt service payments of $66 million, and incur approximately $930 million in interest expense. The proposal would be on the Nov. 8, 2005 ballot.
Referred to the Committee on Appropriations
Referred to the Committee on Commerce
Reported without amendment
With the recommendation that the substitute (H-2) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one that reflects ongoing negotiations. This was subsequently superceded by the Huizenga substitute, described below.
The substitute failed by voice vote
Substitute offered
by
To replace the previous version of the bill with one that incorporates changes reflecting ongoing negotiations that continued even as a preliminary version of the bill was reported out of committee to "move the process along." In these negotiations House Bill 5047 became the primary bill in the legislative package, which no longer proposes $1 billion in government borrowing, but instead "securitizes" or sells tobacco lawsuit setttlement revenue and uses the proceeds for a similar purpose. This latest substitute includes stronger fiduciary oversight of that process than the defeated committee substitute.
The substitute passed by voice vote
Amendment offered
by
To require the government committee and board that will determine who gets the subsidies to cooperate with a "compliance officer" employed by the state Auditor General (who is hired by the legislature).
The amendment passed 101 to 0 (details)
Passed in the House 100 to 1 (details)
To create a "Strategic Economic Investment Board” to select which entities will be given a portion of the $1 billion in subsidies proposed by House Bill 5047 for research, development, marketing and commercialization of various “competitive edge” technologies.
Substitute offered
by
To adopt a Senate version of the bill that does not require that the business tax cuts passed by the House in House Bill 5108 go into effect for this and related business subsidy bills to go into effect.
The substitute passed by voice vote
Amendment offered
by
To adopt "clean up" language correcting and clarifying other provisions of the bill and revising certain dates specified in the bill.
The amendment passed by voice vote
Amendment offered
by
To revise certain dates specified in the bill.
The amendment passed by voice vote
Passed in the Senate 34 to 4 (details)
To create a "Strategic Economic Investment and Commercialization Board” to select which entities will be given the $1 billion in subsidies proposed by House Bill 5047 for research, development, marketing and commercialization of various “competitive edge” technologies, including state ownership of shares of private companies.
Substitute offered
by
To replace the previous version of the bill with one that reflects the agreement struck between Gov. Jennifer Granholm and Republican legislative leaders to adopt modest business tax cuts and a scaled-down "21st Century Jobs Fund".
The substitute passed by voice vote
Amendment offered
by
To give preference in the allocation of the proposed subsidies to entities that forecast revenues within two years, and which have both outside directors and other investors who are experienced in the targeted industry.
The amendment passed by voice vote
Passed in the House 92 to 13 (details)
To create a "Strategic Economic Investment and Commercialization Board” to select which entities will be given the $1 billion in subsidies proposed by House Bill 5047 for research, development, marketing and commercialization of various “competitive edge” technologies, including state ownership of shares of private companies.
Passed in the Senate 35 to 3 (details)
To create a "Strategic Economic Investment and Commercialization Board” with governance and procedures that reflect the agreement struck between Gov. Jennifer Granholm and Republican legislative leaders on <a href="http://www.michiganvotes.org/RollCall.aspx?ID=176636">modest business tax cuts</a> and <a href="http://www.michiganvotes.org/RollCall.aspx?ID=176597">subsidies for selected businesses</a>.
