LANSING – Bills that would allow the state to securitize $1 billion of its tobacco settlement monies to encourage investment in Michigan technology start ups cleared the Senate Government Operations Committee on Tuesday, after the panel stripped $60 million the House had earmarked for one company’s wireless technology. The package likely will be acted on in the full Senate next week.
The earmarked money, which was described as a “drafting error” within the package (HB 5047, HB 5048, HB 5109, HB 5215 and HB 5216), was to have gone to a Gross Pointes Shores business executive to develop a new type of wireless technology.
Senate Majority Leader Ken Sikkema (R-Wyoming) said the technology involved is the type that would allow the company to compete for funding under the package. But the earmarking of the funds has been removed.
Sen. Valde Garcia (R-Howell), who worked with Rep. Bill Huizenga (R-Zeeland) and Rep. Andy Dillon (D-Redford) on the package, said the bills should help boost the state’s economy especially in the small business arena. It will also help get state companies into some technology areas like homeland defense that it does not now have a significant presence in and give the state a greater presence in venture capital financing.
Senate Minority Leader Bob Emerson (D-Flint) said the package will be a giant shot in the arm to help Michigan workers get good paying jobs. And given recent economic events, including the bankruptcy filing of Delphi Corporation, the state does not have any time to lose in moving the bills.
Sen. Nancy Cassis (R-Novi) voted against the package, saying the state does a poor job of picking winners and losers and should have cut business taxes instead to encourage development.
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