No LSD for now.
As described before, this bill sets up a scheme that creates a
non-profit entity under the Biotech Center that makes loans to biotech
start up companies funded by Golden Leaf money and private investors
guaranteed by the taxpayer.
Rep Pryor Gibson, D Anson loves the bill and says it’s innovative, creative and brings a new day for NC.
Rep Johnathan Rhyne, R Lincoln compares this to the bailout of the
automobile industry. Says he never thought the state would get into
the venture capital business. First question should not be, is there
good that can come from this? But instead, should government do this?
Rep Marilyn Avila, R Wake, says the taxpayers are assuming the
risk, not venture capitalists. Hypocritical to sing the praises of
business on one hand but just passed a budget that slammed business
every way possible.
Rep Leo Daughtry, R Johnston asks Gibson where the money is coming
from. If the private investors lose, if the investments go bad, will
they get paid back? Yes. With taxpayers’ money. Gibson says the tax
credits are used to ensure the investments are “less risky.”
Rep Phil Haire, D Jackson asks more about the debt. Does the state have any security interest? Answer is no.
Taking a brief break, they vote to continue until 10:30 and finish
up all the substantive business tonight, leaving only ceremonial duties for a skeleton crew til tomorrow.
Minority Leader Rep Skip Stam, R Wake makes the three
constitutional arguments laid out here and speaks to the estimated losses – over $100 Million losses.
References the losing Eno River Capital fund that the Biotech Center
put millions in and lost most of it several years ago. Argues that any money from
the Golden Leaf is still public money.
Majority Leader, Rep Hugh Holliman, D Davidson sings praises of the
bill, says it’s innovative and the biotech industry is a good
investment.
Rep George Cleveland, R Onslow says it’s another bailout and Rep.
Earl Jones, D Guilford (sponsor of the Star Wars project and video
poker and medical marijuana supporter) says this will move NC to the
21st Century.
Rep Jennifer Weiss, D Wake says save it for the short session and
address some of the constituion questions and accountability.
Rep Dale Folwell asks about what happens when there is a default. Where are the taxpayers in line? Last in line to redeem the tax
certificate. Could the constitutional questions be worked out before
the short session? Gibson says the legislation will be massaged.
Rep Rick Glazier, D Cumberland who has always supported economic
incentives says this one has bridged too far for him. He doesn’t
think it’s constitutional particularly the delegation question. True
substance of the bill violates many provisions in the constitution. He
can’t support it.
Gibson moves to remove the bill and put it on the calendar for May 12. At least for now, the bill is dead.
