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 786 Original 2022 Regular Session Willard
Abstract: Creates the Small Business Innovation Retention Fund for the purpose of providing fund
to certain La. business that have received certain federal grants.
Present law provides for the La. Economic Development Corporation (corporation) within the Dept.
of Economic Development (department) and provides for the powers and authority of the
corporation.
Present law provides that the corporation shall serve as the review board for certain financial
assistance programs for La. small businesses. Further provides that the corporation shall provide
support for certain activities by La. businesses to generate commercial products or services by
providing matching funds to businesses that received federal Small Business Innovative Research
Phase I grant funds.
Proposed law changes present law and provides that the corporation shall provide support for
activities by La. businesses to generate commercial products or services by providing funds to
businesses that applied for or received federal Small Business Innovation Research (SBIR) or Small
Business Technology Transfer Funds (STTF) grant funds.
Proposed law creates the "Small Business Innovation Retention Fund" (fund), as a special fund in
the state treasury. Further provides that monies in the fund shall be used to provide financial
assistance to certain La. businesses that have received SBIR or STTR federal grants.
Proposed law requires all monies within the fund to comply with Article VII, Section 9(B) of the
Constitution of La. relative to the Bond Security and Redemption Fund.
Proposed law requires monies in the fund to be invested in the same manner as monies in the general
fund. Further provides interest earned on investment of monies be credited to the fund. Unexpended
and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.
Proposed law provides that the corporation in conjunction with the Louisiana Technology Transfer
Office (LTTO) shall administer the fund and provide for the disbursement of monies in the fund to
eligible applicants in the form of grants. Further provides the LTTO shall establish criteria for grant
eligibility, provide for an application process, and select eligible applicants to receive the grants.
Proposed law provides $1 million shall be disbursed from the fund as follows: (1)$500,000 shall be allocated to Phase I SBIR or STTR recipients. Each selected applicant
shall receive an amount equal to 25% of the applicant's Phase I SBIR or STTR grant. These
grants shall not exceed $50,000, per applicant.
(2)$500,000 shall be allocated to Phase II SBIR or STTR recipients. Each selected applicant
shall receive an amount equal to 20% of the applicant's Phase II SBIR or STTR grant. These
grants shall not exceed $100,000. per applicant.
Proposed law provides that the grants shall be disbursed in equal amounts to the selected applicants
over a period of 3 consecutive years.
(Amends R.S. 51:2312(A)(1); Adds R.S. 51:2401)