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 724 Re-Reengrossed 2022 Regular Session Bagley
Abstract: Creates a grant program that provides economic development funding to eight regional
economic development organizations in the state.
Proposed law creates the La. Competes Regional Economic Development Program, hereinafter,
"program", which is to be administered by the La. Dept of Economic Development. The program
is to provide grant funding to each of eight regional economic development organizations,
hereinafter "organizations".
Proposed law creates the La. Competes Regional Economic Development Fund, hereinafter "fund",
as a special fund in the state treasury. Further divides the fund into eight distinct subfunds, one for
each regional economic development organization named in proposed law.
Proposed law requires monies in the fund and subfunds to be invested in the same way general fund
monies are invested, with interest to be deposited back into the fund or subfund upon which the
interest was earned. Further requires unexpended and unencumbered monies in the fund and
subfunds to remain in the fund or subfund at the end of the fiscal year.
Proposed law authorizes and requires the treasurer to transfer $8M from the state general fund into
the fund.
Proposed law requires one-eighth of the initial deposit of monies into the fund be allocated to each
of the organizations.
Proposed law restricts the use of grant monies awarded pursuant to proposed law to "qualified
expenditures", hereinafter "expenditures", related to the furtherance of economic development within
the region it represents.
Proposed law provides two categories of expenditures: site development and economic development
marketing. Proposed law provides nonexclusive examples of each, such as:
(1)Site development costs:
(a)Studies.
(b)Surveys. (c)Development of plans and specifications.
(d)Entering into option agreements.
(e)Infrastructure improvements.
(f)Due diligence.
(g)Remediation.
(h)Wetland delineation.
(i)Certain professional services related to site development.
(2)Economic development marketing:
(a)Print, digital, or video marketing.
(b)Preparation, development, or implementation of an economic development marketing
plan.
(c)Competitive research.
(d)Expenses for hosting professional site selectors or business prospects traveling to the
state to explore or review sites.
Proposed law prohibits organizations from using grant monies for any of the following, to the extent
the use does not conflict with the approved purposes provided in proposed law:
(1)Salaries, wages, benefits.
(2)Travel expenses incurred by the organizations officers, employees, or contractors.
(3)Alcohol.
(4)Land, buildings, offices, equipment, or vehicles used primarily for the administrative
operations of the organization.
Proposed law requires the secretary of economic development, hereinafter "secretary", to develop
a grant request form to be used by the organizations to request funding. The form requires the
following information:
(1)Legal name and tax ID number of the organization.
(2)Legal name and contact information for the person authorized to act on behalf of the organization.
(3)Signature of the person authorized to act on behalf of the organization.
(4)Date of signature.
Proposed law requires the secretary to notify the commissioner of administration that a grant is
approved pursuant to proposed law within five calendar days of receiving a completed grant request.
Within 30 calendar days of grant approval, proposed law requires the organization and the state to
enter into a cooperative endeavor agreement as provided for in present law.
Proposed law requires the cooperative endeavor agreement to be in conformity with the intent and
purpose of proposed law, and the organization's obligations pursuant to the agreement are to be
limited to the following:
(1)Identifying high-priority sites for the purpose of attracting economic development projects.
(2)Developing high-priority sites for the purpose of attracting economic development projects.
(3)Marketing of the regional economic development organization's particular region for the
purpose of attracting economic development projects.
(4)Developing and subsequently providing a report of all activities related to the objectives of
the cooperative endeavor agreement undertaken in the previous year.
(5)Maintaining records and an accurate accounting of all expenditures.
(6)Adhering to state and federal non-discrimination laws.
(7)Adhering to provisions of present law which prohibit discriminatory boycotts of Israel in
state procurement.
(8)Applying a 10% local match as provided for in proposed law.
Proposed law provides that the initial cooperative endeavor agreement is for an initial period of two
years. Further provides that the initial agreement will automatically renew for successive year-long
periods until all initial funds provided by the agreement are expended.
Proposed law requires each organization to apply local matching funds equaling 10% of the cost
being paid.
Proposed law requires the commissioner to notify the treasurer of execution of the cooperative
endeavor agreement within five days of execution and requires the treasurer to disburse the monies
to the organization within five days of notification. Proposed law is intended to be construed liberally in order to achieve the intent of proposed law.
Effective upon appropriation of funds by the legislature.
(Adds R.S. 39:1481-1489)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the original bill:
1. Make technical changes.
The Committee Amendments Proposed by House Committee on Appropriations to the engrossed
bill:
1. Remove use of surplus monies for proposed law.
2. Make effectiveness of proposed law subject to appropriation.
3. Divide fund established in proposed law into eight subfunds, one for each regional
economic development district in proposed law.
4. Require Dept. of Economic Development to establish tax increment boundaries for each
project under proposed law and establish a sales tax baseline for each project. Further
dedicate 5% of state sales taxes collected above the baseline within the project
boundaries and require deposit into the regional economic development organization's
subfund.
5. Remove requirement that each regional economic development organization be awarded
an initial grant of one million dollars and instead award each such organization an initial
award in the amount of one-eighth of the initial deposit into the fund established in
proposed law.
6. Remove requirement that a regional economic development organization obtain a 10%
match for each project undertaken pursuant to proposed law and instead require each
organization to apply a 10% match to each such project.
7. Remove requirement that each 10% local match payment be calculated as 10% of the
funds spent during any calendar year and instead require the match to be calculated as
10% of the cost being paid.
8. Remove requirement that the treasurer, pursuant to legislative appropriation, deposit in
and credit to the Louisiana Competes Fund $8 million.
9. Make technical changes. The House Floor Amendments to the reengrossed bill:
1. Remove requirement that Dept. of Economic Development establish tax increment
boundaries for each project under proposed law and establish a sales tax baseline for each
project.
2. Remove provisions dedicating 5% of state sales taxes collected above each baseline
within the project boundaries established pursuant to proposed law and require deposit
into the regional economic development organization's subfund.
3. Add provision requiring state treasurer to deposit $8 million into the Louisiana Competes
Fund.
4. Remove provisions designating the South Louisiana Economic Council as a regional
economic development organization pursuant to proposed law.
5. Add the South Central Planning and Development Commission as a regional economic
development organization pursuant to proposed law.
6. Make technical changes.