HLS 12RS-1190 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 507
BY REPRESENTATIVE PONTI
ECONOMIC DEVELOPMENT: Increases the maximum gross receipts threshold for the
La. Initiative for Small Entrepreneurships (Hudson Initiative) and the Veteran
Initiative
AN ACT1
To amend and reenact R.S. 39:2006(A)(4) and 2176(A)(4), relative to small businesses; to2
increase the maximum gross receipts threshold for small businesses applying to the3
Louisiana Initiative for Small Entrepreneurships (Hudson Initiative); to increase the4
maximum gross receipts threshold for small businesses applying to the Louisiana5
Initiative for Veteran and Service-Connected Disabled Veteran-Owned Small6
Entrepreneurships (Veteran Initiative); to provide for an effective date; and to7
provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 39:2006(A)(4) and 2176(A)(4) are hereby amended and reenacted10
to read as follows: 11
§2006. Certification of businesses by Department of Economic Development;12
listing of small entrepreneurships; reporting13
A. The secretary of the Department of Economic Development, hereinafter14
the "department", shall certify businesses as small entrepreneurships for the purposes15
of this Chapter. "Small entrepreneurship" means any corporation, partnership,16
individual, sole proprietorship, joint stock company, joint venture, or any other legal17
entity which meets all of the following criteria:18
* * *19 HLS 12RS-1190 ORIGINAL
HB NO. 507
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(4) Together with any of its affiliate entities, has fewer than fifty full-time1
employees with average annual gross receipts not exceeding five ten million dollars2
per year for construction operations and three five million dollars per year for non-3
construction operations, for each of the previous three tax years.4
* * *5
§2176. Certification of businesses by Department of Economic Development;6
listing of veteran and service-connected disabled veteran-owned small7
entrepreneurships; reporting8
A. The secretary of the Department of Economic Development, hereinafter9
referred to in this Section as the "department", shall certify businesses as veteran and10
service-connected disabled veteran-owned small entrepreneurships for the purposes11
of this Chapter. "Veteran-owned small entrepreneurship" and "service-connected12
disabled veteran-owned small entrepreneurship" means any corporation, partnership,13
individual, sole proprietorship, joint stock company, joint venture, or any other legal14
entity which meets all of the following criteria:15
* * *16
(4) Together with any of its affiliate entities, has fewer than fifty full-time17
employees with average annual gross receipts not exceeding five ten million dollars18
per year for construction operations and three five million dollars per year for19
nonconstruction operations, for each of the previous three tax years.20
* * *21
Section 2. This Act shall become effective upon signature by the governor or, if not22
signed by the governor, upon expiration of the time for bills to become law without signature23
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If24
vetoed by the governor and subsequently approved by the legislature, this Act shall become25
effective on the day following such approval.26 HLS 12RS-1190 ORIGINAL
HB NO. 507
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Ponti HB No. 507
Abstract: Increases the maximum gross receipts threshold for small businesses applying
to the La. Initiative for Small Entrepreneurships (Hudson Initiative) and the La.
Initiative for Veteran and Service-Connected Disabled Veteran-Owned Small
Entrepreneurships (Veteran Initiative).
Present law establishes the La. Initiative for Small Entrepreneurships (Hudson Initiative) to
foster utilization by state interests of the business offerings available for state procurement
and public contracts from La.'s small entrepreneurships.
Proposed law retains present law.
Present law requires the secretary of the Dept. of Economic Development to certify
businesses as small entrepreneurships if the businesses meet all of the following criteria:
(1)Independently owned and operated.
(2)Not dominant in its field of operations, which shall be determined by consideration
of the business' number of employees, volume of business, financial resources,
competitive status, and ownership or control of materials, processes, patents, license
agreements, facilities, and sales territory.
(3)Is owned by and has officers who are citizens or legal residents of the U.S., all of
whom are domiciled in La., and who maintain the principal business office in La.
(4)Together with any of its affiliate entities, has fewer than 50 full-time employees with
average annual gross receipts not exceeding $5,000,000 per year for construction
operations and $3,000,000 per year for nonconstruction operations, for each of the
previous three tax years.
Proposed law retains present law but increases the minimum gross receipts threshold to
$10,000,000 per year for construction operations and $5,000,000 per year for
nonconstruction operations, for each of the previous three tax years.
Present law establishes the La. Initiative for Veteran and Service-Connected Disabled
Veteran-Owned Small Entrepreneurships (Veteran Initiative) to foster utilization by state
interests of the business offerings available for state procurement and public contracts from
La.'s veteran and service-connected disabled veteran-owned small entrepreneurships, and
to provide a clearinghouse of information to these entrepreneurships.
Proposed law retains present law.
Present law requires the secretary of the Dept. of Economic Development to certify
businesses as veteran and service-connected disabled veteran-owned small entrepreneurships
if the businesses meet all of the following criteria:
(1)Independently owned and operated.
(2)Not dominant in its field of operations, which shall be determined by consideration
of the business' number of employees, volume of business, financial resources, HLS 12RS-1190 ORIGINAL
HB NO. 507
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
competitive status, and ownership or control of materials, processes, patents, license
agreements, facilities, and sales territory.
(3)Is owned by and has officers who are citizens or legal residents of the U.S., all of
whom are domiciled in La., and who maintain the principal business office in La.
(4)Together with any of its affiliate entities, has fewer than 50 full-time employees with
average annual gross receipts not exceeding $5,000,000 per year for construction
operations and $3,000,000 per year for nonconstruction operations, for each of the
previous three tax years.
Proposed law retains present law but increases the minimum gross receipts threshold to
$10,000,000 per year for construction operations and $5,000,000 per year for
nonconstruction operations, for each of the previous three tax years.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 39:2006(A)(4) and 2176(A)(4))