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, together with any affiliate licensees,
in excess of $100,000,000 and has held a license for at least 10 years.
(Amends R.S. 51:2395(A)(7))