GREEN SHEET REDIGEST
HB 786 2022 Regular Session Willard
FUNDS/FUNDING: Establishes the Small Business Innovation Retention Fund.
DIGEST
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 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 signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 51:2312(A)(1); adds R.S. 51:2401)
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Prepared by Michelle D. Ridge. 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.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the reengrossed bill
1. Change effective date from effective upon appropriation to effective upon
signature of the governor.
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Prepared by Michelle D. Ridge.