HLS 22RS-1040 ORIGINAL
2022 Regular Session
HOUSE BILL NO. 796
BY REPRESENTATIVES WILLARD, PRESSLY, BACALA, DAVIS, AND NELSON
FUNDS/FUNDING: Establishes the Small Business Innovation Fund
1 AN ACT
2To amend and reenact R.S. 51:2312(A)(1) and to enact R.S. 51:2401, relative to certain
3 small business grants; to provide for the authority of the Louisiana Economic
4 Development Corporation; to create the Small Business Innovation Fund; to provide
5 for uses of monies in the fund; to provide for the administration of grants; to provide
6 for eligibility of applicants; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 51:2312(A)(1) is hereby amended and reenacted and R.S. 51:2401
9is hereby enacted to read as follows:
10 §2312. Powers and authority; duties
11 A. The corporation shall serve as the single review board for all financial
12 assistance, loans, incentives or inducements, customized workforce training,
13 investment programs, and any related appropriations, grants, or joint ventures
14 administered by the Department of Economic Development, excluding those
15 financial incentive programs administered by the State Board of Commerce and
16 Industry. The corporation shall formulate and implement the policies for the
17 delivery of services to obtain the following effects:
18 (1) The support of innovative private sector research and development
19 activities by Louisiana businesses intended to generate commercial products,
20 processes, or services by providing matching funds to those Louisiana small
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1 businesses that will apply for or have received federal Small Business Innovative
2 Innovation Research (SBIR) Phase I or Small Business Technology Transfer
3 (STTR) grant funds.
4 * * *
5 §2401. Small Business Innovation Fund; purpose; program administration
6 A. There is hereby created in the state treasury, as a special fund, the "Small
7 Business Innovation Fund", hereinafter referred to as the "fund".
8 B. The monies in the fund shall be used to provide financial assistance to
9 certain Louisiana businesses applying for Small Business Innovation Research,
10 hereinafter referred to as "SBIR", or Small Business Technology Transfer,
11 hereinafter referred to as "STTR", federal research grants.
12 C. After compliance with the requirements of Article VII, Section 9(B) of
13 the Constitution of Louisiana relative to the Bond Security and Redemption Fund,
14 all monies received for the purpose of the fund shall be deposited into the fund.
15 D. Monies in the fund shall be invested in the same manner as monies in the
16 general fund. Interest earned on investment of monies in the fund shall be credited
17 to the fund. Unexpended and unencumbered monies in the fund at the end of the
18 fiscal year shall remain in the fund.
19 E. The Louisiana Economic Development Corporation, hereinafter referred
20 to as "corporation", in conjunction with the Louisiana State University and
21 Agricultural and Mechanical College Louisiana Technology Transfer Office,
22 hereinafter referred to as "LTTO", shall administer the fund and provide for
23 disbursements to selected applicants in the form of grants. The LTTO shall establish
24 criteria for grant eligibility, provide for an application process, and select eligible
25 Louisiana business applicants to receive monies from the fund.
26 F. One hundred fifty thousand dollars shall be disbursed from the fund as
27 follows:
28 (1) Sixty thousand dollars shall be disbursed to selected applicants in the
29 form of grants for the purpose of assisting in the completion of Phase I SBIR or
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HB NO. 796
1 STTR federal grant applications. Any grant received pursuant to this Paragraph shall
2 not exceed five thousand dollars per applicant.
3 (2) Sixty thousand dollars shall be disbursed to selected applicants in the
4 form of grants for the purpose of assisting in the completion of Phase II SBIR or
5 STTR federal grant applications. Any grant received pursuant to this Paragraph shall
6 not exceed ten thousand dollars per applicant.
7 (3) Thirty thousand dollars shall be appropriated to the LTTO for the purpose
8 of funding outreach programs and program-related promotions.
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 796 Original 2022 Regular Session Willard
Abstract: Creates the Small Business Innovation Fund for the purpose of providing
financial assistance to certain businesses applying for certain federal grants.
Present law provides for the La. Economic Development Corporation (corporation) within
the Department 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 (STTR) grant funds.
Proposed law creates the "Small Business Innovation Fund" (fund), as a special fund in the
state treasury fund. Further provides that monies in the fund shall be used to provide
financial assistance to certain La. businesses applying for 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 that 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 monies in the fund and provide for
disbursements to eligible applicants in the form of grants. Further requires the LTTO to
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establish criteria for grant eligibility, provide for an application process, and select eligible
applicants to receive the grants.
Proposed law provides $150,000 shall be disbursed from the fund as follows:
(1)$60,000 shall be disbursed to eligible applicants to assist in the completion of Phase
1 applications for SBIR or STTR federal grants. These grants shall not exceed
$5,000 per business.
(2)$60,000 shall be disbursed to eligible applicants to assist in the completion of Phase
2 applications for SBIR or STTR federal grants. These grants shall not exceed
$10,000 dollars per business.
(3) $30,000 shall be appropriated to the LTTO for the purpose of outreach programs and
program-related promotions.
(Amends R.S. 51:2312(A)(1); Adds R.S. 51:2401)
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