House Commerce advances bill letting Louisiana Economic Development buy, lease and set up special-purpose entities

Senators and state economic development officials told the House Commerce Committee on May 27 that Senate Bill 161 would formalize a series of changes to Louisiana Economic Development (LED), including creating an LED Innovation Fund, clarifying LED’s authority over real estate transactions related to economic development projects, and folding two statutorily separate offices into LED.

The bill “creates — it does not fund — a Louisiana Economic Development Innovation Fund,” Secretary Susan Bourgeois told the committee. She said the purpose is to give LED a vehicle to seek federal or other funding to support in‑state innovation and business creation alongside LED’s existing roles of attracting and growing businesses.

The bill also would give LED the authority to purchase, sell, lease and sublease land for economic development projects. Bourgeois described the change as needed after the state’s handling of a large project in Richland Parish, where LED previously owned the mega‑site and now leases it for a private project. Under current law, she said, LED lacks flexibility to accept and direct revenues from such transactions.

Supporters told lawmakers they built in oversight. An amendment adopted in committee would allow LED to create a special‑purpose legal entity for individual real‑estate transactions but requires approval by the commissioner of administration; after a lease, sublease or sale is initiated, the joint legislative committee on the budget (JLCB) would have oversight of the purchase process, committee discussion showed.

“Number one is it allows us to create a special‑purpose entity…for the purpose of the real‑estate transaction,” Deputy Secretary and CFO Anne Villa said, adding the entity would isolate transactions from LED’s other accounting and legal activities. Senator Mizell, who presented the bill, said the amendment’s intent was to protect the state’s investment and ensure recovery of public costs when projects generate revenue to LED.

Committee members pressed officials about appropriation limits and procedural safeguards. Bourgeois said LED has limited appropriation authority granted by the Legislature and that purchases would follow appraisals, procurement rules and the commissioner of administration’s oversight. Representative Newell pressed for assurances that purchases would not leave LED or the state short on operating funds; Bourgeois and Villa said existing appropriation limits and the commissioner’s review would control spending.

The bill also revises the make‑up and role of the Louisiana Board of International Commerce (LeBIC). Committee amendments increased statutory representation of ports and added two members to represent state airports, shifting some operational matters for ports and airports to the Department of Transportation and Development’s multimodal office while refocusing LeBIC on international strategy.

Committee members expressed interest in ensuring rural airports and regions retain a voice. Staff offered a committee‑originated amendment to change LeBIC’s governor‑appointed seats from six to eight and to add two airport representatives; the amendment was adopted.

The committee adopted the bill’s technical amendments and the substantive changes and, by voice vote, reported SB 161 with amendments to the full House.