 |
 |
 |
|||
 |
 |
 |
 |
 |
 |
NOTICE OF INTENT
Department of Economic Development
Office of the Secretary
Office of Business Development
Small and Emerging Business Development Program (LAC 19:II.105-115)
In accordance with R.S. 49:950 et seq., the Administrative Procedure Act, the Department of Economic Development, Office of Business Development, hereby proposes to amend its existing rules and regulations relative to its Small and Emerging Business Development Program, and to adopt the following amended rules and regulations relative to the Small and Emerging Business Development Program. The intended action complies with the statutory law administered by the agency, as authorized by R.S. 51:941 et seq.
The department proposes to amend §§105 through 115 of Chapter 1. The proposed amendments change the definition of a small and emerging business by changing the percentage ownership and net worth requirements; provide that an application must be submitted on-line through the department's website; and increases the duration of certification from 7 to 10 years.
Title 19
CORPORATIONS AND BUSINESS
Part II. Small and Emerging Business Development
Program
Chapter 1. General Provisions
§105. Definitions
A. When used in these regulations, the following terms shall have meanings as set forth below.
* * *
Full-Time-working in the firm at least 20 hours per week.
* * *
Small and Emerging Business (SEB)?a small business organized for profit and performing a commercially useful function which is at least 51 percent owned and controlled by one or more small and emerging business persons and which has its principal place of business in Louisiana. A nonprofit organization is not a small and emerging business for purposes of this Chapter.
* * *
AUTHORITY NOTE: Promulgated in accordance with R.S. 51:942.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Office of the Secretary, Division of Economically Disadvantaged Business Development, LR 23:50 (January 1997), amended LR 24:430 (March 1998), amended by the Department of Economic Development, Office of Business Development, LR 29:542 (April 2003), LR 30:753 (April 2004), LR 33:
§107. Eligibility Requirements for Certification
A. …
B. - B.2. …
3. Net Worth. The person's net worth may not exceed $400,000. The market value of the individual owner's personal residence, 401K, IRA, and other legal retirement funds will be excluded from the net worth calculation.
C. Small and Emerging Business
1. Ownership and Control. At least 51 percent of the company must be owned and controlled by one or more small and emerging business persons.
2. - 3. ...
4. Business Net Worth. The business' net worth at the time of application may not exceed
$1,500,000.
5. Full Time. Managing owners who claim small and emerging business person status must work a minimum of 20 hours per week in the applicant firm.
6. Job Creation. An applicant firm anticipates creating new full-time jobs.
D. Requirement for Certification. Must have an e-mail address and appropriately complete the on-line application located at www.ledsmallbiz.com.
AUTHORITY NOTE: Promulgated in accordance with R.S.51:942.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Office of the Secretary, Division of
Economically Disadvantaged Business Development, LR 23:50 (January 1997), amended LR 24:430 (March 1998), LR 25:1084 (June 1999), LR 26:1572 (August 2000), amended by the Department of Economic Development, Office of Business Development, LR 29:542 (April 2003), LR 30:754 (April 2004), LR 33:
§109. Control and Management
A. …
1. The small and emerging business person(s) upon whom eligibility is based shall control the board of directors of the firm, either in actual numbers of voting directors or through weighted voting. In the case of a two-person board of directors where one individual on the board is a small and emerging business person and one is not, the formers vote must be weighted by share ownership, worth more than one vote to achieve a minimum of 51 percent control, in order for the firm to be eligible for the program. This does not preclude the appointment of nonvoting or honorary directors. All arrangements regarding the structure and voting rights of the board must comply with state law and with the firm's articles of incorporation and/or bylaws.
A.2. - B.4. …
AUTHORITY NOTE: Promulgated in accordance with R.S.51:942.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Office of the Secretary, Division of
Economically Disadvantaged Business Development, LR 23:51 (January 1997), amended by the Department of Economic Development, Office of Business Development, LR 29:543 (April 2003), LR 30:754 (April 2004), LR 33:
§ 111. Responsibility for Applying
A. …
B. Certification in the SEBD Program is accomplished on-line at www.ledsmallbiz.com. Applicants must have an e-mail address to become certified in the SEBD Program.
C. …
AUTHORITY NOTE: Promulgated in accordance with R.S. 51:942.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Office of the Secretary, Division of Economically Disadvantaged Business Development, LR 23:52 (January 1997), amended by the Department of Economic Development, Office of Business Development, LR 29:543 (April 2003), LR 30:755 (April 2004), LR 33:
§113. Certification Application Procedure
A. Applicant completes and submits an on-line
application at www.ledsmallbiz.com to the SEBD office.
B. …
C. The director, or designee, notifies the applicant by
e-mail of the decision whether or not to grant certification.
AUTHORITY NOTE: Promulgated in accordance with R.S.51:942.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Office of the Secretary, Division of Economically Disadvantaged Business Development, LR 23:52 (January 1997), amended by the Department of Economic Development, Office of Business Development, LR 29:544 (April 2003), LR 30:755 (April 2004), LR 33:
§115. Duration of Certification
A. The maximum amount of time that a firm may be granted certification by the SEBD Program is 10 years or when the owner or firm no longer qualifies, whichever occurs first.
B. …
AUTHORITY NOTE: Promulgated in accordance with R.S. 51:942.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Office of the Secretary, Division of Economically Disadvantaged Business Development, LR 23:52 (January 1997), amended LR 26:1572 (August 2000), amended by the Department of Economic Development, Office of Business Development, LR 29:544 (April 2003), LR 30:755 (April 2004), amended by the House Concurrent Resolution Number 8 of the
2006 Regular Legislative Session, LR 32:1536 (August 2006), amended by the Department of Economic Development, Office of Business Development, LR 33:
Family Impact Statement
The proposed Rule in LAC 19:II.Chapter 1, Small and Emerging Business Development Program, should not have any known or foreseeable impact on any family as defined by R.S. 49:972.D or on family formation, stability and autonomy. Specifically there should be no known or foreseeable effect on:
1. the stability of the family;
2. the authority and rights of parents regarding the education and supervision of their children;
3. the functioning of the family;
4. family earnings and family budget;
5. the behavior and personal responsibility
Published: 08/30/2007
Visit: Small Business Alert Archive
Return to: LSBA Home Page