HLS 20RS-1325 ORIGINAL
2020 Regular Session
HOUSE BILL NO. 862
BY REPRESENTATIVE GAROFALO
ECONOMIC DEVELOPMENT: Provides for the COVID-19 Business Recovery and
Growth Program
1 AN ACT
2To enact R.S. 51:2312(A)(11) and (D)(15) and 2342, relative to the Department of
3 Economic Development and the Louisiana Economic Development Corporation; to
4 provide authority; to provide for duties; to create the COVID-19 Business Recovery
5 and Growth Program; to provide for promulgation of rules and regulations; to
6 provide for disposition of funds; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 51:2312(A)(11) and (D)(15) and 2342 are hereby enacted to read as
9follows:
10 §2312. Powers and authority; duties
11 A. The corporation shall serve as the single review board for all financial
12 assistance, loans, incentives or inducements, customized workforce training,
13 investment programs, and any related appropriations, grants, or joint ventures
14 administered by the Department of Economic Development, excluding those
15 financial incentive programs administered by the State Board of Commerce and
16 Industry. The corporation shall formulate and implement the policies for the
17 delivery of services to obtain the following effects:
18 * * *
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1 (11) The provision of funds for qualified applicants affected by the 2019
2 coronavirus pandemic, hereinafter referred to as "COVID-19", to receive emergency
3 assistance.
4 * * *
5 D. The corporation is hereby authorized and shall have all the authority and
6 power necessary in order to carry out and effectuate the purposes and provisions of
7 this Chapter, including, without limiting the generality of the foregoing, the
8 following specific powers which shall be in addition to others herein granted:
9 * * *
10 (15)(a) To develop, implement, and oversee the COVID-19 Business
11 Recovery and Growth Program, utilizing federal funding related to the Coronavirus
12 Aid, Relief, and Economic Security Act or "CARES Act", Public Law 116-136,
13 subject to appropriation by the Louisiana legislaure.
14 (b) The Department of Economic Development shall promulgate rules and
15 regulations to govern the affairs and conduct of its business in order to effectuate the
16 provisions of this Paragraph.
17 * * *
18 §2342. COVID-19 Business Recovery and Growth Program
19 A. There is hereby created a COVID-19 Business Recovery and Growth
20 Program and placed within the Louisiana Economic Development Corporation,
21 hereinafter referred to as "the corporation". The COVID-19 Business Recovery and
22 Growth Program shall serve as a mechanism through which the Department of
23 Economic Development evaluates, financially assists, awards appropriations, grants,
24 or loans, engages in joint ventures, or provides incentives or inducements to qualified
25 applicants. The COVID-19 Business Recovery and Growth Program shall be
26 separate and distinguished from any tax exemption or incentive programs
27 administered by the Board of Commerce and Industry, all of which shall remain
28 unaffected by this Section.
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1 B. The corporation shall develop a formal award program that includes an
2 application, review, evaluation, and award process. The corporation shall develop
3 rules and regulations in accordance with law which shall include the maximum
4 amount of awards and local matching monies.
5 C. Any private, quasi public, or public entity, or political subdivision of the
6 state seeking financial assistance pursuant to this Section from the state, through the
7 Department of Economic Development, in the form of an appropriation, loan,
8 guarantee, state-backed financial inducement or incentive, or participation in a joint
9 venture where state funds are appropriated, loaned, committed, or guaranteed shall
10 make application for the assistance to the corporation. The corporation's board shall
11 evaluate each project according to established criteria. Any project funded by the
12 sale of general obligation or revenue bonds and which is subject to the capital outlay
13 review process shall be exempt from the requirements of this Section.
14 D. The corporation's board shall review each application to determine if the
15 applicant has met the established criteria to receive funding and whether the
16 applicant shall receive the funding.
17 E. The legislature shall make an immediate appropriation to the COVID-19
18 Business Recovery and Growth Program for deposit in the Louisiana Economic
19 Development Fund under the terms and conditions as provided for in R.S. 51:2315.
20 Project awards shall be disbursed by the corporation's board.
21 F. The provisions of this Section shall not apply to programs, funds, or
22 projects administered by any department other than the Department of Economic
23 Development.
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 862 Original 2020 Regular Session Garofalo
Abstract: Creates the COVID-19 Business Recovery and Growth Program.
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HB NO. 862
Present law authorizes the Louisiana Economic Development Corporation ("the
corporation") to serve as the single review board for all financial assistance, loans, incentives
or inducements, customized workforce training, investment programs, and any related
appropriations, grants, or joint ventures administered by the Department of Economic
Development, excluding financial incentive programs administered by the State Board of
Commerce and Industry.
Present law provides that the corporation shall formulate and implement policies for the
delivery of services to obtain certain effects.
Proposed law retains present law and adds the provision of funds for qualified applicants
who are affected by the 2019 coronavirus pandemic to receive emergency assistance as
another effect that the corporation is required to obtain.
Present law authorizes the corporation to carry out and effectuate the purposes and
provisions of present law.
Proposed law retains present law and further authorizes the corporation to develop,
implement, and oversee the COVID-19 Business Recovery and Growth Program that
utilizes federal funding related to the Coronavirus Aid, Relief, and Economic Security Act,
also known as the CARES Act.
Proposed law creates the COVID-19 Business Recovery and Growth Program and places the
program within the corporation.
Proposed law authorizes the corporation to promulgate rules and regulations in order to
effectuate provisions of proposed law. Further, proposed law requires the corporation to
develop a formal award program that includes an application, review, evaluation, and award
process.
Proposed law requires any entity or political subdivision of the state seeking financial
assistance pursuant to proposed law to make an application for assistance to the corporation.
(Adds R.S. 51:2312(A)(11) and (D)(15) and 2342)
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