SLS 24RS-1478 RE-REENGROSSED
2024 Regular Session
SENATE BILL NO. 494
BY SENATORS MIZELL, ABRAHAM, BARROW, BOUDREAUX, CATHEY, CLOUD,
COUSSAN, EDMONDS, FESI, HENRY, JACKSON-ANDREW S,
KLEINPETER, MILLER, MORRIS, PRESSLY, STINE AND
WOMACK
ECONOMIC DEVELOP DEPT. Provides for the Department of Economic Development.
(gov sig)
1 AN ACT
2 To amend and reenact R.S. 36:4(A)(2), 101(A), 102, 104(A)(6), the introductory paragraph
3 of R.S. 47:318(B)(2), R.S. 47:318(B)(2)(a), and R.S. 51:2311(A)(2) and (B), 2403(E)
4 and (F)(3), to enact R.S. 36:104(A)(16),(17), and (B)(10), and 110, and R.S.
5 51:2312(D)(15), and to repeal R.S. 36:106 and 107, relative to the economic
6 development; to provide relative to Louisiana Economic Development; to provide
7 for the powers, duties, and organization of Louisiana Economic Development; to
8 provide for powers and duties of the secretary of Louisiana Economic Development;
9 to provide for an advisory committee to Louisiana Economic Development; to
10 provide for membership of the advisory committee; to provide relative to the
11 membership of the Louisiana Economic Development Corporation; to provide for
12 the development and implementation of a strategic plan and an economic
13 development plan; to provide for the distribution and investment of certain funds; to
14 provide relative to terms, conditions, exceptions, and procedures; and provide for
15 related matters.
16 Be it enacted by the Legislature of Louisiana:
17 Section 1. R.S. 36:4(A)(2), 101(A), 102, 104(A)(6) are hereby amended and
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1 reenacted and R.S. 36:104(A)(16),(17), and (B)(10), and 110 are hereby enacted to read as
2 follows:
3 §4. Structure of executive branch of state government
4 A. In accordance with the provisions of Article IV, Section 1 and Article
5 XIV, Section 6 of the Constitution of Louisiana, all offices, boards, commissions,
6 agencies, and instrumentalities of the executive branch of state government, whether
7 constitutional or statutory, and/or their functions, powers, duties, and responsibilities
8 shall be allocated, either in the Act by which this Title was created or by legislation
9 enacted subsequent thereto, within the departments listed in this Section, except as
10 provided in Subsections B and C of this Section, and in order to comply with this
11 constitutional mandate, the agencies of the executive branch of state government
12 hereinafter enumerated, whether heretofore created by the constitution or by statute,
13 and/or their functions, powers, duties, and responsibilities are allocated, in the
14 manner hereinafter set forth in this Title, within the following designated
15 departments:
16 * * *
17 (2) Department of Louisiana Economic Development.
18 * * *
19 CHAPTER 3. DEPARTMENT OF LOUISIANA ECONOMIC DEVELOPMENT
20 §101. Department of Louisiana Economic Development; creation; domicile;
21 composition; purposes and functions
22 A. The Department of Louisiana Economic Development is created and shall
23 be a body corporate with the power to sue and be sued. The domicile of the
24 department shall be in Baton Rouge.
25 * * *
26 §102. Officers of the department; Louisiana Economic Development;
27 compensation for one office only
28 A. The officers of the department Louisiana Economic Development shall
29 be the secretary, the undersecretary, and the deputy secretary if a deputy secretary
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1 is appointed, and assistant secretaries, each of whom shall be selected and shall
2 perform functions as provided in this Title.
3 B. No person serving as a secretary, or deputy secretary, undersecretary, or
4 assistant secretary shall receive any additional salary from the state other than that
5 salary which he receives by virtue of serving in any one of such offices. Any Neither
6 the secretary nor the deputy secretary shall be a statewide elected official
7 appointed to serve as a secretary, deputy secretary, undersecretary, or assistant
8 secretary shall not receive any additional salary from the state other than that salary
9 which he receives as a statewide elected official.
10 C. Notwithstanding any provision herein to the contrary, subject to approval
11 of the governor, any person, including any statewide elected official, serving or
12 appointed to serve as a secretary, undersecretary, or deputy secretary, or assistant
13 secretary may receive additional compensation for part-time services rendered as an
14 instructor in post-secondary educational institutions, or as a member of the National
15 Guard.
16 * * *
17 §104. Powers and duties of the secretary of economic development
18 A. In addition to the functions, powers, and duties otherwise vested in the
19 secretary by law, he shall:
20 * * *
21 (6) Act as the sole agent of the state or, in necessary cases, designate one of
22 the offices within the department or its assistant secretary, to cooperate with the
23 federal government and with other state and local agencies in matters of mutual
24 concern and in the administration of federal funds granted to the state or directly to
25 the department or an office thereof to aid in the furtherance of any function of the
26 department and its offices. For this purpose he may take such actions, in accordance
27 with any applicable state law, necessary to meet such federal standards as are
28 established for the administration and use of such federal funds, except as otherwise
29 specifically provided in this Title or by the constitution and laws of this state. The
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1 office shall develop and implement a plan to actively seek federal, private, and
2 other grants to support the activities of the department and advance the
3 economic growth and prosperity of the state.
4 * * *
5 (16) Develop a comprehensive strategic plan and long range economic
6 development plan in consultation with, and advice from, the Louisiana
7 Economic Development Partnership.
8 (17) Notwithstanding any provision of law to the contrary, enter into a
9 lease of an industrial megasite with the approval of the governor, consisting of
10 immovable property under the control and supervision of Louisiana Economic
11 Development as of May 1, 2024, that has been certified by the department as
12 development-ready, to a nongovernmental entity in connection with a state
13 economic development project.
14 B. The secretary shall have the authority to:
15 * * *
16 (10) Notwithstanding any provision of law to the contrary, exercise
17 discretion in reconsidering the disallowance of any amounts of an incentive
18 administered by Louisiana Economic Development when the basis of the
19 disallowance relates to the expiration of filing deadlines or the failure to
20 perform a requirement of the program due to the occurrence of an event
21 beyond the control of the incentive recipient.
22 * * *
23 §110. Louisiana Economic Development Partnership; advisory committee
24 A. There is hereby created an advisory committee to be known as the
25 Louisiana Economic Development Partnership. The committee shall advise the
26 department on matters relating to economic development policies, strategies,
27 programs, and initiatives to promote economic growth in the state.
28 B.(1) The committee shall consist of eleven appointed members as
29 follows:
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1 (a) Nine members appointed by the governor, one from within the
2 geographic boundaries of each of the state's eight regional economic
3 development organizations and one at large.
4 (b) One member appointed by the president of the Senate.
5 (c) One member appointed by the speaker of the House of
6 Representatives.
7 (2) The secretary of Louisiana Economic Development or his designee
8 shall serve as an ex-officio and nonvoting member of the committee.
9 C. No member of the advisory committee shall hold an elected office
10 while serving as an appointed member of the advisory committee.
11 D. Vacancies on the advisory committee shall be filled in the same
12 manner as the original appointment.
13 E. The secretary of Louisiana Economic Development or his designee
14 shall serve a term coterminous with the term of the governor. The remaining
15 members shall serve four-year terms, except that, of the initial appointments,
16 four shall be for two-year terms, four shall be for three-year terms, and three
17 shall be for four-year terms. Vacancies shall be filled in the manner of original
18 appointment. No member shall be eligible to serve more than two terms;
19 however, after the expiration of the term of a member appointed to serve three
20 years or less, two additional terms may be served if appointed thereto. A person
21 appointed to fill a vacancy may be appointed to serve two additional terms.
22 F. The committee shall meet at least quarterly and may hold additional
23 meetings as necessary.
24 G. A majority of the appointed members of the committee shall
25 constitute a quorum.
26 H. Members of the committee shall serve without compensation, but each
27 member shall be entitled to reimbursement of actual and necessary expenses
28 incurred in the performance of official duties in accordance with state travel
29 regulations.
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1 I. The committee shall annually elect a chairman and other officers as
2 may be deemed necessary.
3 Section 2. The introductory paragraph of R.S. 47:318(B)(2) and R.S. 47:318(B)(2)(a)
4 are hereby amended and reenacted to read as follows:
5 §318. Disposition of collections
6 * * *
7 B. * * *
8 (2) Monies in the fund shall be subject to annual appropriation to the
9 Department of Louisiana Economic Development for the following purposes:
10 (a) A minimum of one million dollars annually to be used for marketing
11 education, of which one million dollars shall be used as follows: for regional or
12 local economic development marketing, following guidelines to be developed by
13 the secretary for objective, performance-based criteria for the distribution of
14 these funds.
15 (i) Six hundred seventy-five thousand five hundred sixty-three dollars to
16 Marketing Education Retail Alliance, Inc.
17 (ii) Two hundred fifty thousand dollars to the District 2 Enhancement
18 Corporation.
19 (iii) Seventy-four thousand four hundred thirty-seven dollars to the Louisiana
20 Council for Economic Education.
21 * * *
22 Section 3. R.S. 51:2311(A)(2) and (B) and 2403(E) and (F)(3) are hereby amended
23 and reenacted and R.S. 51:2312(D)(15) is hereby enacted to read as follows:
24 §2311. Louisiana Economic Development Corporation; creation; domicile; board of
25 directors; terms; agency
26 A. * * *
27 (2) The board of directors shall be comprised of all of the following:
28 (a) The secretary of the Department of Economic Development or a designee.
29 (b) One minority member who is appointed from a list of three private sector
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1 individuals submitted by Louisiana-based organizations business owner or private
2 sector individual representing minority business interests.
3 (c) One member who is appointed from a list of three private sector
4 individuals submitted by the Louisiana Chapter of the AFL-CIO private sector
5 individual with experience as a startup founder.
6 (d) One member who is appointed from a list of three private sector
7 individuals submitted by the Louisiana Retailers Association private sector
8 individual with experience in regional economic development.
9 (e) One member who is appointed from a list of three private sector
10 individuals submitted by the Louisiana Bankers Association private sector
11 individual with experience from within a community bank, community
12 development financial institution, or credit union.
13 (f) One member who is appointed from a list of three private sector
14 individuals employed at community banks submitted by the Louisiana Bankers
15 Association private sector individual with experience in commercial banking.
16 (g) One member who is appointed from a list of three private sector
17 individuals submitted by the Society of Louisiana Certified Public Accountants
18 private sector individual with experience in local economic development.
19 (h) One female member who is appointed from a list of three private sector
20 individuals business owner or private sector individual representing women's
21 business interests.
22 (i) One member representing the Louisiana private sector individual with
23 experience in venture capital industry or the Louisiana or angel investor community
24 investing.
25 (j) One member who is appointed from a list of three private sector
26 individuals submitted by and currently serving on the Louisiana Workforce
27 Investment Council Board private sector individual appointed at large.
28 B. The secretary of the Department of Economic Development or a designee
29 shall serve a term coterminous with his term in office. The remaining members shall
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1 serve four-year terms, except that, of the initial appointments, three shall be for two-
2 year terms, three shall be for three-year terms, and two shall be for four-year terms.
3 Vacancies shall be filled in the manner of original appointment. No member shall
4 be eligible to serve more than two terms; however, after the expiration of the
5 term of a member appointed to serve three years or less, two additional terms
6 may be served if appointed thereto. Any appointment to fill a vacancy shall be
7 for the unexpired term. A person appointed to fill a vacancy may be appointed
8 to serve two additional terms. A vacant board position shall not be counted as
9 an active voting member in determining a quorum until a successor has been
10 appointed as provided in this Subsection.
11 * * *
12 §2312. Powers and authority; duties
13 * * *
14 D. The corporation is hereby authorized and shall have all the authority and
15 power necessary in order to carry out and effectuate the purposes and provisions of
16 this Chapter, including, without limiting the generality of the foregoing, the
17 following specific powers which shall be in addition to others herein granted:
18 * * *
19 (15) To direct the state treasurer to invest, in a separate portfolio, the
20 funds received for Louisiana Economic Development from any federal agency
21 in accordance with federal guidelines. All investment income, net of investment
22 expenditures, shall be credited to Louisiana Economic Development to be used
23 as program revenue for associated funding.
24 * * *
25 §2403. Small Business Innovation Fund; purpose; program administration
26 * * *
27 E. Subject to appropriation and the provisions of this Section, monies in the
28 fund shall be used by the Department of Economic Development for awarding grants
29 to selected applicants. The Louisiana Economic Development Corporation,
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1 hereinafter referred to as "corporation", in conjunction with the Louisiana State
2 University and Agricultural and Mechanical College Louisiana Technology Transfer
3 Office, hereinafter referred to as "LTTO", shall administer awards to selected
4 applicants in the form of grants. The LTTO corporation shall establish criteria for
5 grant eligibility, provide for an application process, and select eligible Louisiana
6 business applicants to receive monies from the fund.
7 F. Up to one hundred fifty thousand dollars shall be annually disbursed from
8 the fund as follows:
9 * * *
10 (3) Up to thirty thousand dollars shall be appropriated to the LTTO
11 corporation for the purpose of funding technical assistance, outreach programs, and
12 program-related promotions.
13 Section 4. R.S. 36:106 and 107 are hereby repealed.
14 Section 5. The positions of members of the board of the directors of the Louisiana
15 Economic Development Corporation serving on the effective date of this Act whose terms
16 have expired shall be considered vacant.
17 Section 6. At the expiration of the terms of the members of the board of directors
18 serving on the effective date of this Act, or in the event of any vacancy on the board of
19 directors, successors shall be appointed and serve for terms in accordance with R.S. 51:2311.
20 Section 7. The Louisiana Law Institute is hereby directed to change all references to
21 the "Department of Economic Development" to "Louisiana Economic Development"
22 throughout the Louisiana Revised Statutes of 1950.
23 Section 8. This Act shall become effective upon signature by the governor or, if not
24 signed by the governor, upon expiration of the time for bills to become law without signature
25 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
26 vetoed by the governor and subsequently approved by the legislature, this Act shall become
27 effective on the day following such approval.
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The original instrument was prepared by Michelle D. Ridge. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Xavier Alexander.
DIGEST
SB 494 Re-Reengrossed 2024 Regular Session Mizell
Present law establishes the Department of Economic Development (department) as one of
the twenty departments of the executive branch.
Proposed law renames the Department of Economic Development to Louisiana Economic
Development (LED).
Present law provides for the purposes and functions of the department.
Present law provides for officers of the department, including the secretary, undersecretary,
deputy secretary if appointed, and assistant secretaries.
Proposed law removes the present law references to the positions of undersecretary and
assistant secretaries.
Proposed law provides that neither the secretary nor the deputy secretary shall be a statewide
elected official.
Present law provides for powers, duties, and authority of the secretary.
Proposed law retains present law and adds:
(1)The secretary shall direct an office within LED to develop and implement a plan to
actively seek federal, private, and other grants to support the activities of LED and
advance the economic growth and prosperity of the state.
(2)The secretary shall develop a comprehensive strategic plan and long range economic
development plan in consultation with, and advice from, the La. Economic
Development Partnership.
(3)The secretary shall have the authority to exercise discretion in reconsidering the
disallowance of any amounts of an incentive administered by Louisiana Economic
Development when the basis of the disallowance relates to the expiration of filing
deadlines or the failure to perform a requirement of the program due to the
occurrence of an event beyond the control of the incentive recipient.
(4)The secretary shall have the authority to enter into a lease of an industrial megasite
with approval of the governor, consisting of immovable property under the control
and supervision of Louisiana Economic Development as of May 1, 2024 that has
been certified by the department as development-ready to a nongovernmental entity
in connection with a state economic development project.
Proposed law creates the La. Economic Development Partnership as an advisory committee
to LED and provides for membership and terms of the committee.
Present law provides relative to monies in the Marketing Fund, which provides for an
appropriation be made from this fund to LED for certain purposes, including one million
dollars annually to be used for marketing education.
Proposed law changes the purpose of the annual one million dollar appropriation from
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marketing education to regional or local economic development marketing, following
guidelines to be developed by the secretary for objective, performance-based criteria for the
distribution of the one million dollars.
Present law provides relative to the Louisiana Economic Development Corporation
(corporation) and provides for its membership, duties, powers, and function. Provides for
the following members:
(1)The secretary of LED or his designee.
(2)One minority member who is appointed from a list of three private sector individuals
submitted by La.-based organizations representing minority business interests.
(3)One member who is appointed from a list of three private sector individuals
submitted by the La. Chapter of the AFL-CIO.
(4)One member who is appointed from a list of three private sector individuals
submitted by the La. Retailers Association.
(5)One member who is appointed from a list of three private sector individuals
submitted by the La. Bankers Association.
(6)One member who is appointed from a list of three private sector individuals
employed at community banks submitted by the La. Bankers Association.
(7)One member who is appointed from a list of three private sector individuals
submitted by the Society of La. Certified Public Accountants.
(8)One female member who is appointed from a list of three private sector individuals
representing women's business interests.
(9)One member representing the La. venture capital industry or the La. angel investor
community.
(10)One member who is appointed from a list of three private sector individuals
submitted by and currently serving on the La. Workforce Investment Council Board.
Proposed law retains the secretary of LED or his designee on the commission and changes
qualifications of certain members and removes nominating bodies as follows:
(1)One minority business owner or private sector individual representing minority
business interests.
(2)One private sector individual with experience as a startup founder.
(3)One private sector individual with experience in regional economic development.
(4)One private sector individual with experience from within a community bank,
community development financial institution, or credit union.
(5)One private sector individual with experience in commercial banking.
(6)One private sector individual with experience in local economic development.
(7)One female business owner or private sector individual representing women's
business interests.
(8)One private sector individual with experience in venture or angel investing.
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(9)One private sector individual appointed at large.
Proposed law provides for appointments and term limits of members of the corporations, a
quorum, and vacancies.
Present law provides for power and authority of the corporation.
Proposed law retains present law and further provides that the corporation has the power to
direct the state treasurer to invest, in a separate portfolio, the funds received for LED from
any federal agency in accordance with federal guidelines. All investment income, net of
investment expenditures, shall be credited to LED to be used as program revenue for
associated funding.
Present law provides for the Small Business Innovation Fund and requires the corporation
to work in conjunction with LSU La. Technology Transfer Office.
Proposed law removes present law provision requiring the corporation to work in
conjunction with LSU La. Technology Transfer Office.
Proposed law directs the La. Law Institute to change references to "Department of Economic
Development" to "Louisiana Economic Development" throughout the La. Revised Statutes
of 1950.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 36:4(A)(2), 101(A), 102, 104(A)(6), R.S. 47:318(B)(2)(intro para) and
318(B)(2)(a), and R.S. 51:2311(A)(2) and (B), 2403(E) and (F)(3); adds R.S. 36:104(A)(16),
(17), and (B)(10), and 110, and R.S. 51: 2312(D)(15); repeals R.S. 36:106 and 107)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the original bill
1. Allows the secretary to negotiate settlement agreements for all statutory
incentive programs administered by LED.
2. Provides that the secretary shall serve as an ex-officio and a nonvoting
committee member of the LED partnership.
3. Removes the requirement to transfer any unobligated general funds
appropriated to LED at the end of the fiscal year to the La. Economic
Development Fund.
4. Exempts the purchase, lease, and rental of all information technology
equipment, related services, and software by LED from the oversight and
procurement authority of the office of technology services.
5. Provides that the corporation has the power to direct the state treasurer to
invest in funds received for LED from any federal agency.
6. Makes technical changes.
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Committee Amendments Proposed by Senate Committee on Finance to the
engrossed bill
1. Removes provision requiring any unobligated general funds appropriated to
Louisiana Economic Development at the end of a fiscal year to be transferred
to the Louisiana Economic Development Fund.
2. Removes repeal of present law provisions authorizing the Louisiana
Economic Development Corporation to establish a nonprofit corporation.
3. Authorizes the secretary to exercise discretion in reconsidering the
disallowance of any amounts of an incentive administered by LED in certain
circumstances.
4. Authorizes the secretary to enter into a lease of an industrial megasite with
the approval of the governor, consisting of immovable property under the
control and supervision of Louisiana Economic Development as of May 1,
2024.
5. Adds provisions relative to the membership and terms of the advisory
committee.
6. Makes technical corrections.
Senate Floor Amendments to reengrossed bill
1. Removes provisions exempting LED from information technology
procurement and the La. Procurement Code.
2. Removes provisions that requires LED to be subject to administrative rules
and regulations adopted for procurement.
3. Makes technical changes.
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