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)]
HB 754 Engrossed 2018 Regular Session Foil
Abstract: Requires the maximum gross receipts thresholds for small businesses applying for
certification as small entrepreneurships or veteran-owned small entrepreneurships be
adjusted annually.
Present law requires the secretary of the Dept. of Economic Development to certify a business as a
veteran and service-connected disabled veteran-owned small entrepreneurship if the business meets
all of the following criteria:
(1)Independently owned and operated.
(2)Not dominant in its field of operations, to be determined by consideration of the busines
s '
number
o f
employ
ees,
volume
o f
busines
s ,
financi
a l
resourc
es,
compet
itive
status,
and
owners
hip or
control
o f
materia
ls,
process
es, patents,
license
agreem
ents,
faciliti
es, and
sales
territor
y.
(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 a maximum of $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.
Proposed law requires the Dept. of Economic Development to annually adjust the maximum
amounts in present law based on the Consumer Price Index for All Urban Consumers (CPI-U) for
the South.
Present law requires the secretary of the Dept. of Economic Development to certify businesses as
small entrepreneurship if the business meets all of the following criteria:
(1)Independently owned and operated.
(2)Not dominant in its field of operations, to 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 a maximum of $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.
Proposed law requires the Dept. of Economic Development to annually adjust the maximum
amounts in present law based on the Consumer Price Index for All Urban Consumers (CPI-U) for
the South.
Proposed law otherwise retains present law. Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 39:2006(A)(4) and 2176(A)(4))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the original bill:
1. Add the Hudson Initiative to proposed law.
2. Require maximum amount limits, relative to small entrepreneurships, be adjusted
annually based on Consumer Price Index.
3. Replace previously deleted language providing maximum amount limits relative to
veteran-owned entrepreneurships.
4. Require maximum amount limits, relative to veteran-owned entrepreneurships, be
adjusted annually based on Consumer Price Index.