RDCSB494 4463 4888
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)]
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 cooperative endeavor agreement
providing for the lease of property under the control and supervision of Louisiana
Economic Development for establishment and operation of a facility for the purpose
of creating economic benefits to the state, including new jobs, payroll, or other
benefits.
Present law provides for information technology procurement.
Present law provides for the scope of the office of technology services.
Proposed law provides that the purchase, lease, and rental of all information technology
equipment, related services, and software by LED shall be exempt from present law and the
oversight and procurement authority of the chief information officer and office of technology
services provided for in present law. Proposed law requires LED to continue as a LaGov
agency for use of the enterprise resource planning. Proposed law provides that LED shall
develop rules and regulations for the purposes adopted in proposed law in accordance with
present law. LED and the office of technology services shall establish a transition plan that
shall be completed by June 30, 2025. The actions taken pursuant to proposed law are subject
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to the approval of the commissioner of administration before they are sent to committees
required for review of agency rules.
Present law provides for the Louisiana Procurement Code.
Proposed law provides that present law shall not apply to LED; however, LED shall be
required to continue as a LaGov agency, and shall adopt procurement provisions pursuant
to rules adopted in accordance with present law. The rules created by LED pursuant to
proposed law shall be subject to the approval of the commissioner of administration before
they are sent to committees required for review of agency rules. In addition, the House
Committee on Appropriations and the Senate Committee on Finance shall also have
authority for review of agency rules as provided for in present law.
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
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:
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(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.
(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 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, R.S. 39:196(D) and 1554(T), 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.
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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.
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.
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the re-
reengrossed bill:
1. Make technical changes.
2. Remove proposed law regarding leasing of an industrial megasite.
3. Add that the secretary has the authority to enter into a cooperative endeavor
agreement providing for the lease of property under the control and supervision
of LED for establishment and operation of a facility for the purpose of creating
economic benefits to the state, including new jobs, payroll, or other benefits.
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4. Provide that the purchase, lease, and rental of all information technology
equipment, related services, and software by LED shall be exempt from present
law and the oversight and procurement authority of the chief information officer
and office of technology services provided for in present law.
5. Require LED to continue as a LaGov agency for use of the enterprise resource
planning.
6. Provide that LED shall develop rules and regulations for the purposes adopted
in proposed law in accordance with present law. LED and the office of
technology services shall establish a transition plan that shall be completed by
June 30, 2025. The actions taken pursuant to proposed law are subject to the
approval of the commissioner of administration before they are sent to
committees required for review of agency rules.
7. Provide that present law shall not apply to LED; however, LED shall be required
to continue as a LaGov agency, and shall adopt procurement provisions pursuant
to rules adopted in accordance with present law. The rules created by LED
pursuant to proposed law shall be subject to the approval of the commissioner of
administration before they are sent to committees required for review of agency
rules. In addition, the House Committee on Appropriations and the Senate
Committee on Finance shall also have authority for review of agency rules as
provided for in present law.
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