Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the State Agency Reorganization topic
No spam. Unsubscribe anytime.
Senate committee clears LED reorganization bill creating innovation fund, clarifying land authority
Summary
SB 161, a follow‑on to last year—s LED restructuring, was reported with amendments after testimony that the bill creates a non‑funded Louisiana Economic Development Innovation Fund, clarifies LED land purchase and sale authority, and consolidates several statutory offices under LED while revising board memberships.
Senate Commerce reported SB 161 with amendments after a full hearing on April 23.
Sen. Mizell, sponsor of SB 161, told the committee the bill—informally called "reorganization 2"—builds on last year—s LED restructure by creating the Louisiana Economic Development Innovation Fund, clarifying LED's authority to purchase, lease and sublease land, and absorbing certain statutory offices into the LED department. "This creates the Louisiana Economic Development Innovation Fund," Mizell said, noting the bill does not appropriate money to that fund in its current form.
Susan Bourgeois, Secretary of Louisiana Economic Development, described the bill as both "gap filling" and statutory cleanup. Bourgeois said the innovation fund is a placeholder only: "We're not putting money in it right now. This is not a funding request. This doesn't have a funding mechanism attached to it," she said. Bourgeois told the committee the land provisions are intended to give LED tools to move quickly on large projects, citing the Meta site in Richland Parish as an example where LED previously lacked authority to buy additional acreage and to place lease payments into a dedicated state account.
Josh Flegg, Chief Innovation Officer at LED, described the intended mission of the innovation fund as providing "capital, coaching, and connections" for high‑growth technology startups and for efforts to modernize legacy industries. Flegg and Bourgeois said the fund must be funded separately by future appropriations or legislation.
Committee members pressed for clarity on several points. Senator Koenig asked about the fiscal note; Bourgeois said the committee's fiscal note showed a zero fiscal impact pending the removal of language authorizing an LED‑created nonprofit. The sponsor and staff explained amendment set 672 removed the language that would have created a nonprofit state development company tied to a now‑obsolete federal loan program. Senator Morris subsequently offered and the committee adopted amendment set 803 to further eliminate redundant statutory language.
The committee discussed LED's existing boards and authorities. Bourgeois outlined four boards associated with LED that would remain in some form: the Louisiana Board of International Commerce (LABIC), Louisiana Economic Development Corporation (LEDAC), the Board of Commerce and Industry (BCI), and the Louisiana Economic Development Partnership (an advisory council). Bourgeois and witnesses emphasized that LEDAC controls certain financial transactions and audits and that existing procurement and appropriation rules would still apply to any land purchases.
Committee members also asked about lease payments from Meta. Bourgeois said the state currently receives lease income from the Meta site but has "no ability to use it" under current law; SB 161 would allow LED to accept and place such income into an appropriate fund subject to appropriation.
After questions and explanation of adopted technical and substantive amendments, Sen. Mizell moved SB 161 favorably as amended. The committee reported the bill favorably by unanimous consent; amendments adopted during the hearing include amendment set 672 and amendment set 803 as noted on the record.
The bill does not appropriate funds for the innovation fund or the land investment authority; committee testimony emphasized future appropriation would be required before deploying any collected lease income or other proceeds.
Votes at a glance: SB 161 (as amended) — Motion to report favorable made by Senator Mizell; reported favorable by unanimous consent/no objection (roll call not recorded).
