Introduced
by
To “securitize” or sell three-quarters of the revenue stream from the 1998 tobacco company lawsuit settlement, the entire amount of which is approximately $280 million per year. Selling the entire revenue stream for 20 years would reportedly generate a lump sum of approximately $4 billion. Among other things, money from the sale would be used to pay for the grants, loans and subsidies programs proposed by either <a href="http://www.michiganvotes.org/2005-HB-5006">House Bill 5006</a> or <a href="http://www.michiganvotes.org/2005-HB-5047">House Bill 5047</a>.
Referred to the Committee on Commerce
Reported without amendment
With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one that revises many details of the revenue sources, governance, and allocation of the proposed subsidies, but does not change the thrust of the bill as previously described.
The substitute passed by voice vote
Amendment offered
by
To tie-bar the bill to a package of related subsidy bills and business tax cut bills, meaning this bill cannot become law unless those ones do also. Specifically, these are House Bills 4972, 4973, 5047, 5108, and 5109, and Senate Bills 359 and 533.
The amendment passed by voice vote
Substitute offered
by
To replace the previous version of the bill with one that reflects negotiations involving House Bill 5047, which would require the "securitization" of approximtely one-third of the tobacco settlement revenu.
The substitute passed by voice vote
Amendment offered
by
To require that one of the three financial institutions or brokerages that the bill requires be used to handle the securitization process to be based in Michigan.
The amendment passed by voice vote
Passed in the House 103 to 1 (details)
To establish a state board to “securitize” or sell approximately one-third of the revenue stream from the 1998 tobacco company lawsuit settlement, the entire amount of which is approximately $280 million per year, and create regulations for this. This will reportedly generate a lump sum of $1 billion, which will be used to pay for the grants, loans and business subsidy programs proposed by <a href="http://www.michiganvotes.org/2005-HB-5047">House Bill 5047</a>.
Referred to the Committee on Government Operations and Reform
Reported without amendment
With the recommendation that the substitute (S-1) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one 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 not give the independent public financial advisor authorized by the bill oversight authority over the state budget director, but only over the Michigan tobacco settlement finance authority created by the bill.
The amendment passed by voice vote
Passed in the Senate 34 to 4 (details)
To establish a state board to “securitize” or sell approximately one-third of the revenue stream from the 1998 tobacco company lawsuit settlement, the entire amount of which is approximately $280 million per year, and create regulations for this. This will reportedly generate a lump sum of $1 billion, which will be used to pay for the grants, loans and business subsidy programs proposed by <a href="http://www.michiganvotes.org/2005-HB-5047">House Bill 5047</a>.
Substitute offered
by
To adopt a version of the bill that reflects the agreement struck between Gov. Jennifer Granholm and Republican legislative leaders to adopt a modest business tax cut and a scaled-down "21st Century Jobs Fund." The latter would be given $400 million of "securitized" tobacco settlement revenue right away, and $75 million per year for eight years from the remaining “unsecuritized” settlement revenue stream. Future legislatures would not be bound by the $75 million per year agreement, however.
The substitute passed by voice vote
Amendment offered
by
To make more explicit the definition of a Michigan financial institution in the provision that requires a portion of the securitization process go through Michigan companies. The latest version specifies at least two financial institutions, one of which must have facilities in Michigan.
The amendment passed by voice vote
Passed in the House 98 to 7 (details)
To "securitize" tobacco settlement revenue as part of an 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 latter would be given $400 million of "securitized" tobacco settlement revenue right away, and $75 million per year for eight years from the remaining “unsecuritized” settlement revenue stream. Future legislatures would not be bound by the $75 million per year agreement, however. The tax cut is described under the final votes on <a href="http://www.michiganvotes.org/RollCall.aspx?ID=176636">Senate Bill 633</a>, and details of the full package by a Senate Fiscal Agency <a href="http://senate.michigan.gov/sfa/Publications/BudUpdates/EconDevProposal2005.pdf">analysis</a> <i>(pdf)</i>.
Passed in the Senate 35 to 3 (details)
