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 Reengrossed 2022 Regular Session Willard
Abstract: Creates the Small Business Innovation Retention Fund for the purpose of providing funds
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 (STTR) grant funds for applications submitted or received after
Jan. 1, 2023.
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 department 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
department shall establish criteria for grant eligibility, provide for an application process, and select
eligible applicants to receive the grants.
Proposed law provides up to $1,105,000 million shall be annually disbursed from the fund as follows:
(1)Up to $500,000 per year shall be allocated for 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)Up to $500,000 per year shall be allocated for 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.
(3)Up to $105,000 per year for administrative expenses.
Proposed law provides that each grant shall be disbursed in equal amounts to the selected applicants
over a period of two consecutive years.
Effective upon appropriation of funds by the legislature.
(Amends R.S. 51:2312(A)(1); Adds R.S. 51:2401)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the original bill:
1. Change certain references from the La. Economic Development Corporation to the
Department of Economic Development.
2. Add an eligibility requirement that the federal application provided for in present law is
to be submitted or received prior to Jan. 1, 2023.
3. Move the duty of administering the fund from the La. Economic Development
Corporation and the La. Technology Transfer Office to the Department of Economic
Development.
4. Modify the disbursement amounts to allow for a lesser grant than the previously
mandated disbursement amounts.
5. Provide that the disbursement of funds is to occur annually.
6. Change the disbursement period from three years to two years.
7. Make technical changes.
The Committee Amendments Proposed by House Committee on Appropriations to the engrossed
bill: 1. Make technical changes.
2. Add provision requiring the Dept. of Economic Development to use monies in the fund
for awarding grants pursuant to proposed law.
3. Lower administrative cost allowed to be paid from the fund from $115,000 per year to
$105,000 per year.
4. Make effectiveness of proposed law subject to appropriation.