Louisiana House Bill HCR99

Louisiana 2018 Regular Session

• Introduced: 5/8/18
• Engrossed: 5/11/18

Caption

Requests the Department of Economic Development to study and report on commercial activities by state-owned companies or organizations based in and subsidized by certain foreign governments and requests the state treasurer to certify that no public funds are used to support commercial activities in certain foreign governments

Impact

The proposed study aims to inform the legislature about the economic implications of allowing state-owned companies from communist countries to operate in Louisiana. By examining the repercussions on local industries and businesses, including the chemical and shellfish sectors critical to the state's economy, the resolution seeks to protect Louisiana's economic interests and uphold its standards of fair competition. The assessment is expected to promote awareness about intellectual property concerns and the long-term viability of local businesses in the face of foreign competition that does not operate under the same economic principles as those domestically.

Summary

HCR99 is a concurrent resolution from the Louisiana Legislature that requests the Department of Economic Development to study the effects of predatory investments and unfair trade practices by companies that are state-owned or subsidized by communist countries. The bill's intent is to scrutinize the impact these companies have on Louisiana's existing industries, including worker safety, employment, and competition, ensuring that local businesses are not adversely affected. Additionally, the resolution calls for the state treasurer to certify that no state funds have been allocated to support these companies, highlighting the seriousness of economic security concerns related to international relations and trade.

Sentiment

General sentiment surrounding HCR99 appears to be cautious with a focus on safeguarding Louisiana's economic future. Supporters of the resolution advocate for awareness over potential threats posed by these foreign entities, arguing that a thorough investigation will help prevent potential harm to the state's economy. Conversely, there might be concerns among opponents regarding the implications of categorizing all state-owned companies based on their country of origin, potentially complicating relationships with foreign investors who contribute positively to local economies.

Contention

While HCR99 primarily calls for a study rather than imposing immediate restrictions, notable contention could arise regarding the classification of investments and the determination of what constitutes predatory practices by foreign companies. Additionally, the resolution raises questions about how to balance economic growth through foreign investments while ensuring that local businesses are not undermined. The effectiveness and objectivity of the Department of Economic Development's findings will be closely scrutinized, particularly if the study leads to recommendations that restrict investment from specific nations.