Louisiana House Bill HR37

Louisiana 2018 2nd Special Session

• Introduced: 6/3/18
• Refer: 6/4/18

Caption

Provides for examination relative to the fiduciary duties of the RACER trust and constitutionality of the current lease agreement for the General Motors Shreveport plant

Impact

The proposed investigation is rooted in the context of the automotive industry's economic struggles and the need for effective local and state governance regarding public assets. The subcommittee aims to analyze the decision-making processes that led to the management structure of the GM-Shreveport plant, examining if the methods employed may have compromised the interests of local communities. Potential constitutional violations regarding the lease agreements present a significant concern, potentially reshaping how industrial development boards operate within Louisiana's economic framework.

Summary

House Resolution 37 seeks to create a subcommittee within the House Committee on Commerce to investigate the role and responsibilities of the Revitalizing Auto Communities Environmental Response Trust (RACER Trust) in managing the former General Motors Shreveport plant. The resolution emphasizes the need to review the fiduciary duties of the RACER Trust, particularly regarding its leasing arrangements for the plant and whether these arrangements violate state constitutional provisions relating to public property use. The initiative arises from concerns over missed opportunities for economic development and job creation that stemmed from the plant's closure and subsequent management.

Sentiment

Overall, the sentiment surrounding HR 37 reflects a push for accountability and transparency in the management of public resources aimed at economic revitalization. The discourse indicates a recognition of the public's interest in ensuring that such developments do not favor private entities at the expense of community welfare. Supporters advocate for a thorough examination to protect local job markets and ensure that public assets are leveraged effectively for economic benefit.

Contention

Noteworthy points of contention include the effectiveness of the current lease agreement and its implications for state law regarding the permissible uses of public property. Critics of the arrangement fear that it may violate constitutional restrictions against using public resources for private gain, raising alarms about the potential for mismanagement and lack of oversight. The subcommittee's findings could lead to significant legislative changes that aim to enhance oversight mechanisms over public assets while balancing the need for economic development.