HLS 22RS-1040 REENGROSSED
2022 Regular Session
HOUSE BILL NO. 796
BY REPRESENTATIVES WILLARD, ADAMS, BACALA, CARRIER, DAVIS,
DUBUISSON, DUPLESSIS, FREEMAN, HILFERTY, HOLLIS, ILLG, JORDAN,
KERNER, LYONS, MARCELLE, MCFARLAND, NELSON, NEWELL,
PRESSLY, THOMAS, AND THOMPSON
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 Department of Economic
4 Development; to create the Small Business Innovation Fund; to provide for uses of
5 monies in the fund; to provide for the administration of grants; to provide for
6 eligibility of applicants; to provide for an effective date; and to provide for related
7 matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 51:2312(A)(1) is hereby amended and reenacted and R.S. 51:2401
10is hereby enacted to read as follows:
11 §2312. Powers and authority; duties
12 A. The corporation shall serve as the single review board for all financial
13 assistance, loans, incentives or inducements, customized workforce training,
14 investment programs, and any related appropriations, grants, or joint ventures
15 administered by the Department of Economic Development, excluding those
16 financial incentive programs administered by the State Board of Commerce and
17 Industry. The corporation shall formulate and implement the policies for the
18 delivery of services to obtain the following effects:
Page 1 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 22RS-1040 REENGROSSED
HB NO. 796
1 (1) The support of innovative private sector research and development
2 activities by Louisiana businesses intended to generate commercial products,
3 processes, or services by providing matching funds to those Louisiana small
4 businesses that will apply for received federal Small Business Innovative Innovation
5 Research (SBIR) Phase I or Small Business Technology Transfer (STTR) grant
6 funds, for such federal applications submitted or received after January 1, 2023.
7 * * *
8 §2401. Small Business Innovation Fund; purpose; program administration
9 A. There is hereby created in the state treasury, as a special fund, the "Small
10 Business Innovation Fund", hereinafter referred to as the "fund".
11 B. The monies in the fund shall be used to provide financial assistance to
12 certain Louisiana businesses applying for Small Business Innovation Research,
13 hereinafter referred to as "SBIR", or Small Business Technology Transfer,
14 hereinafter referred to as "STTR", federal research grants.
15 C. After compliance with the requirements of Article VII, Section 9(B) of
16 the Constitution of Louisiana relative to the Bond Security and Redemption Fund,
17 all monies received for the purpose of the fund shall be deposited into the fund.
18 D. Monies in the fund shall be invested in the same manner as monies in the
19 general fund. Interest earned on investment of monies in the fund shall be credited
20 to the fund. Unexpended and unencumbered monies in the fund at the end of the
21 fiscal year shall remain in the fund.
22 E. Subject to appropriation and the provisions of this Section, monies in the
23 fund shall be used by the Department of Economic Development for awarding grants
24 to selected applicants. The Louisiana Economic Development Corporation,
25 hereinafter referred to as "corporation", in conjunction with the Louisiana State
26 University and Agricultural and Mechanical College Louisiana Technology Transfer
27 Office, hereinafter referred to as "LTTO", shall administer awards to selected
28 applicants in the form of grants. The LTTO shall establish criteria for grant
Page 2 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 22RS-1040 REENGROSSED
HB NO. 796
1 eligibility, provide for an application process, and select eligible Louisiana business
2 applicants to receive monies from the fund.
3 F. Up to one hundred fifty thousand dollars shall be annually disbursed from
4 the fund as follows:
5 (1) Up to sixty thousand dollars shall be disbursed to selected applicants in
6 the form of grants for the purpose of assisting in the completion of Phase I SBIR or
7 STTR federal grant applications. Any grant received pursuant to this Paragraph shall
8 not exceed five thousand dollars per applicant.
9 (2) Up to sixty thousand dollars shall be disbursed to selected applicants in
10 the form of grants for the purpose of assisting in the completion of Phase II SBIR or
11 STTR federal grant applications. Any grant received pursuant to this Paragraph shall
12 not exceed ten thousand dollars per applicant.
13 (3) Up to thirty thousand dollars shall be appropriated to the LTTO for the
14 purpose of funding technical assistance, outreach programs, and program-related
15 promotions.
16 Section 2. The provisions of Section 1 of this Act shall become effective when an
17Act of the Louisiana Legislature containing a specific appropriation of monies for the
18implementation of the provisions of this Act becomes effective.
19 Section 3. The provisions of Sections 2 and 3 of this Act shall become effective
20upon signature by the governor or, if not signed by the governor, upon expiration of the time
21for bills to become law without signature by the governor, as provided by Article III, Section
2218 of the Constitution of Louisiana. If vetoed by the governor and subsequently approved
23by the legislature, the provisions of Sections 2 and 3 of this Act shall become effective on
24the day following such approval.
Page 3 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 22RS-1040 REENGROSSED
HB NO. 796
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 Reengrossed 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 by the department
to provide financial assistance to certain La. businesses applying for SBIR or STTR federal
grants. Requires the corporation, working in conjunction with the La. State University A&M
La. Technology Transfer Office, to administer awards to selected applicants. Further
requires the La. Technology Transfer Office to establish criteria for grant eligibility, provide
for an application process, and select eligible applicants to receive the grants.
Proposed law requires compliance with present constitution relative to the Bond Security and
Redemption Fund prior to monies being deposited into the fund. Further 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 up to $150,000 shall be annually disbursed from the fund as follows:
(1)Up to $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)Up to $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) Up to $30,000 shall be appropriated to the department for the purpose of technical
assistance, outreach programs, and program-related promotions.
Effective upon appropriation of funds by the legislature.
(Amends R.S. 51:2312(A)(1); Adds R.S. 51:2401)
Page 4 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 22RS-1040 REENGROSSED
HB NO. 796
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 Corp. to the
Dept. of Economic Development.
2. Add an eligibility requirement that the federal application provided for in present
law is submitted or received after Jan. 1, 2023.
3. Move the duty of administering the fund from the La. Economic Development
Corp. and the La. Technology Transfer Office to the Dept. 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 certain funds is to occur annually.
6. Allow the department to use certain monies for technical assistance.
7. Make technical changes.
The Committee Amendments Proposed by House Committee on Appropriations to the
engrossed bill:
1. Make effectiveness of proposed law subject to appropriation.
2. Remove provision requiring the La. Economic Development Corp. to administer
the fund.
3. Add provision requiring La. Dept. of Economic Development to use the monies
in the fund for awarding grants pursuant to proposed law and requiring the La.
Economic Development Corp. to work with the LSU La. Technology Transfer
Office to administer the awards to selected grant applicants.
Page 5 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.