SSHB786 3264 5319
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 786 2022 Regular Session Willard
FUNDS/FUNDING: Establishes the Small Business Innovation Retention Fund
Synopsis of Senate Amendments
1.Changes the effective date from effective upon appropriations to effective upon
the signature of the governor.
Digest of Bill as Finally Passed by Senate
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. Proposed law retains present law.
Present law requires the corporation to serve as the review board for certain financial
assistance programs for La. small businesses. Further requires the corporation to 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 to require the corporation to provide the support to
businesses that applied for or received federal Small Business Innovation Research (SBIR)
or Small Business Technology Transfer (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 requires monies in the fund to be used for providing
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. Requires interest earned on invested monies to be credited to the fund.
Further requires unexpended and unencumbered monies in the fund at the end of the fiscal
year to remain in the fund.
Proposed law requires the department to administer the fund and provide for the
disbursement of monies in the fund to eligible applicants in the form of grants. Further
requires the department to establish criteria for grant eligibility, provide for an application
process, and select eligible applicants to receive the grants.
Proposed law requires up to $1,105,000 to 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.
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Proposed law requires each grant to be disbursed in equal amounts to the selected applicants
over a period of 2 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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