By Rob Moritz
Arkansas News Bureau
LITTLE ROCK — A new state fund would offer financial incentives for the development of new technologies under a bill a Senate panel endorsed Monday.
Senate Bill 920 by Sen. Shane Broadway, D-Bryant, which would create the Technology Acceleration Fund and fund it with $30 million from either the state’s surplus or federal stimulus money, now goes the full Senate.
Broadway said the fund would be similar to Gov. Mike Beebe’s Quick Action Closing Fund, which had a $50 million appropriation in 2007 and has been used to seal economic deals. That fund has been used to grant incentives to new businesses, including $2 million to Cooper Tire to keep its Texarkana plant open and $3 million to Caterpillar Inc. to open a new road grader plant in North Little Rock.
The governor is seeking another $50 million this session from the state’s expected $300 million surplus.
“Sometimes what they need is that extra boost to get them into that market place to where they can begin manufacturing that product, hopefully here,” Broadway told the Senate Committee on Transportation, Technology and Legislative Affairs.
Colleges and universities as well as companies would be eligible for the funding, he said.
Under the bill, the fund would be used by the Arkansas Economic Development Commission, the Science and Technology Authority and the Development Finance Authority to create, attract or keep the businesses in the state.
“This would give the governor, the AEDC and these other agencies another possible tool to work with startup companies in information technology, alternative energy, biotechnical, a lot of different fields that we’re really trying to target and go after,” Broadway said.
The committee also endorsed House Bill 2222 by Rep. Pam Adcock, D-Little Rock, which would create an animal rescue and shelter trust fund. The fund would be financed by selling special license plates for the support of animal rescue and shelters.
Also recommended was HB 1843 by Rep. Randy Stewart, D-Kirby, which would allow the state Department of Finance and Administration to issue gold star family license plates to the spouse or parents of someone who dies in combat.
