Louisiana Senate Bill SB263

Louisiana 2011 Regular Session

• Introduced: 5/4/11
• Refer: 5/4/11

Caption

Authorizes the Department of Economic Development to create and administer a Louisiana Asset Manager Program (LA AMP). (1/1/12)

Impact

The implementation of SB263 is expected to directly influence state economic policies by offering tax exemptions, credits, and other incentives to qualified asset management companies that commit to investing in Louisiana-based businesses. It aims to address the shortcomings identified in the state's capital investment landscape, which currently ranks low nationally. This initiative is anticipated to spur job creation and stimulate revenue growth through increased business activity fueled by new investments.

Summary

Senate Bill 263 establishes the Louisiana Asset Manager Program (LA AMP), administered by the Department of Economic Development. The primary aim of this bill is to enhance private capital availability in Louisiana, particularly for early-stage investments. This move is viewed as a response to the state's struggle with a lack of funding that impedes business growth and attracts entrepreneurial talent from outside the state. By energizing the local asset management industry, the bill seeks to make Louisiana a more favorable environment for venture capital funds and related entities.

Sentiment

The sentiment around SB263 appears to lean positively among proponents who view it as a critical step towards revitalizing Louisiana’s economic landscape. Advocates argue that the bill will facilitate a much-needed influx of capital and stimulate local businesses. However, there could be underlying concerns regarding the effectiveness of tax incentives and their actual impact on driving substantial investment. The debates surrounding the bill could indicate differing opinions on the role of governmental incentives in economic development.

Contention

While SB263 is largely seen as a progressive move towards enhancing the economic viability of Louisiana, potential challenges may arise regarding the monitoring and evaluation of its outcomes. Some stakeholders could voice concerns over the efficiency of public funds and tax breaks in fostering real and sustainable business growth. Additionally, critics may emphasize that simply providing tax incentives without sufficient oversight or strategic planning might not lead to the intended benefits, raising questions about accountability and long-term results.