HLS 14RS-1126 REENGROSSED
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2014
HOUSE BILL NO. 994
BY REPRESENTATIVE PONTI
ECONOMIC DEVELOPMENT: Provides relative to financing requirements of the
Louisiana Business and Industrial Development Company Act
AN ACT1
To amend and reenact R.S. 51:2395(A)(7), relative to the Louisiana Business and Industrial2
Development Company Act; to provide an exception for certain financing3
requirements of entities licensed in this state to transact business as a business and4
industrial development company; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 51:2395(A)(7) is hereby amended and reenacted to read as follows:7
ยง2395. Transaction of business8
A.9
* * *10
(7) Unless approved by the commissioner, the total amount of financing11
assistance provided by a licensee outside of this state shall not exceed fifty percent12
of the total financing assistance provided by such licensee on a cumulative basis.13
The limitation of this Subsection shall not apply to a licensee that has complied with14
both of the following:15
(a) Provided financing assistance in this state in excess of one hundred16
million dollars. A licensee may count financing assistance provided by a licensed17
affiliate or licensed affiliates in this state towards the satisfaction of the requirements18
of this Subparagraph.19
(b) Held a license for at least ten years.20
* * *21 HLS 14RS-1126 REENGROSSED
HB NO. 994
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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. 994
Abstract: Provides that the total amount of financing assistance provided by a business and
industrial development company (BIDCO) outside of this state is not to exceed 50%
of the total financing assistance provided by such licensee on a cumulative basis,
unless the BIDCO, with affiliates, has provided $100,000,000 of financing assistance
in Louisiana and has held a license at least 10 years.
Present law provides for the creation of a system of licensing that will enable business and
industrial development companies to satisfy eligibility requirements to voluntarily
participate in the programs of the Small Business Administration, and other programs.
Proposed law retains present law.
Present law provides that a La. corporation or La. limited liability company may apply to the
commissioner of the office of financial institutions (OFI) for licensure as a business and
industrial development company.
Proposed law retains present law.
Present law provides that the business of a licensee shall be the business of providing
financing assistance and management to other business firms and shall not engage in another
business.
Proposed law retains present law.
Present law provides that unless approved by the commissioner, the total amount of
financing assistance provided by a licensee outside of this state shall not exceed 50% of the
total financing assistance provided by such licensee on a cumulative basis.
Proposed law retains present law, but states that this provision of present law shall not apply
to a licensee that has provided financing assistance in this state in excess of $100,000,000
and has held a license for at least 10 years.
Proposed law further provides that a licensee may count financing assistance of a licensed
affiliate or licensed affiliates to satisfy the requirement of providing an excess of
$100,000,000 financing assistance within the state.
(Amends R.S. 51:2395(A)(7))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Commerce to the original
bill.
1. Made technical changes.
2. Clarified that a business and industrial development company licensee may count
financing assistance provided by a licensed affiliate or licensed affiliates to
satisfy the requirement of providing in-state financing assistance in excess of
$100,000,000, pursuant to proposed law. HLS 14RS-1126 REENGROSSED
HB NO. 994
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
House Floor Amendments to the engrossed bill.
1. Made technical changes.