2006 Louisiana Laws - RS 25:318 — Louisiana arts and entertainment industry development fund; disposition of funds; funding qualification requirements; annual reports

§318.  Louisiana Arts and Entertainment Industry Development Fund; disposition of funds; funding qualification requirements; annual reports

A.  It is the intent of the legislature to recognize the importance of the arts and entertainment industries to Louisiana's culture and economy, by establishing an Arts and Entertainment Industry Development Fund, and to encourage economic development in the arts and entertainment industries by establishing a program to assist in the development of music recording and music publishing, music software and technology businesses, and providing for the promotion of such program.

B.  The "Louisiana Arts and Entertainment Industry Development Fund", hereinafter referred to as the "fund", is hereby created within the state treasury to be used to provide for a program to assist in the development of music recording, publishing, software and technology businesses and to provide for the promotion of such program.  The sources of money to be deposited into the fund shall be appropriations, grants, gifts, donations, interest earnings, loan payments, and any other monies as may be provided by law.  Monies in the fund shall be subject to appropriation exclusively to the Louisiana Economic Development Corporation, hereinafter referred to as the "corporation", to be used in this Section.  All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.  Monies in the fund shall be invested by the state treasurer in the same manner as monies in the state general fund, and interest earned on the investment of these monies shall be credited to the fund, after compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana, relative to the Bond Security and Redemption Fund.

C.(1)  The monies appropriated from the fund each year to the corporation shall be used to provide a program for financial assistance in the development of music recording, publishing, software, and technology businesses in Louisiana.  The corporation shall provide no-interest loans, low-interest loans, and grants to qualified businesses, which shall include but not be limited to recording label businesses, recording studios, music publishers, emerging music technologies, new music distribution methods, musical instrument manufacturing and engineering, acoustic and sound engineering technologies, and new music encryption software and technologies.  In the provision of such loans and grants, the corporation shall facilitate the expansion and growth of current music businesses and industries, provide incentives for new music-related businesses and industries, develop new music technologies, and attract out of state music businesses and industries to locate offices in Louisiana and employ Louisiana residents.

(2)  All businesses seeking an award of loan or grant monies must meet the following criteria:

(a)  The ability to produce a complete business plan detailing the specific business initiation or expansion sought.

(b)  Be domiciled in Louisiana, or if not domiciled in Louisiana, demonstrate conclusively the proposed project's financial impact on the state's economy.

(c)  In the case of a loan, the ability to produce a verifiable plan for repayment of the loan.

(d)  In addition to the foregoing criteria, a qualifying business shall also meet at least one of the following requirements:

(i)  Have a net worth of no more than fifteen million dollars.

(ii)  Have an average annual net income, after federal income taxes, of no more than eight million dollars for the preceding two completed fiscal years, excluding any carryover losses.

(iii)  Have fewer than one hundred full-time employees and a total full-time and part-time staff of no more than one hundred fifty.

(3)  Loans and grants shall not be awarded for promotion of live performances, festivals, or concerts.

(4)  The corporation shall have the sole authority to review applications and consider, develop, structure and issue awards of loans or grants from monies appropriated from the fund.

(5)  The corporation shall develop a process for application, consideration, and issuance of loans and grants which ensures that awards are made no later than the fifteenth day of January of any fiscal year in which funds are available for this purpose.

(6)  A single business shall not receive more than fifteen percent of the total monies available to music businesses and ventures from the funds appropriated in a single year.

(7)  The corporation shall promulgate rules and issue guidelines for administration of this program, including eligibility criteria, application processes, loan and grant satisfaction requirements, and any other elements which the corporation may deem appropriate for the proper administration of the program.

D.  Of the total amount appropriated from the fund to the corporation each year, the corporation shall determine which portion of the monies may be used for promotion of local, regional, and national markets with respect to the fund and opportunities it provides.

E.(1)  The Louisiana Economic Development Corporation shall file a report with the Louisiana Department of Economic Development and the Joint Legislative Committee on the Budget on February fifteenth of each year identifying each business or venture receiving funds and the amount received.

(2)  The Louisiana Economic Development Corporation shall file a report with the Senate Commerce, Consumer Protection, and International Affairs Committee and the House Commerce Committee on February fifteenth of each year which details the economic and financial impact of the fund on Louisiana businesses.

Acts 2003, No. 767, §1.