SLS 202ES-105 ORIGINAL
2020 Second Extraordinary Session
SENATE BILL NO. 75
BY SENATOR MILLIGAN
COMMERCIAL REGULATIONS. Provides relative to certain transactions involving
investments by certain Chinese enterprises. (gov sig) (Item #28)
1 AN ACT
2 To enact Chapter 61 of Title 51 of the Louisiana Revised Statutes of 1950, to be comprised
3 of R.S. 51:3211 through 3213, relative to the attorney general; to provide relative to
4 certain transactions by certain countries or entities; to provide for responsibilities of
5 the attorney general; to provide for written notification of certain transactions to state
6 agencies; to provide for inspection of certain property; to provide for definitions; to
7 provide for terms, conditions, and procedures; and to provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. Chapter 61 of Title 51 of the Louisiana Revised Statutes of 1950,
10 comprised of R.S. 51:3211 through 3213, is hereby enacted to read as follows:
11 CHAPTER 61. TRANSACTIONS BY THE P EOPLE'S REPUBLIC
12 OF CHINA OR CHINESE STATE-OWNED ENTERP RISES
13 IN LOUISIANA
14 §3211. Definitions
15 As used in this Chapter, the following words and phrases shall have the
16 following meanings:
17 (1) "Chinese state-owned enterprise" or "enterprise" means an entity
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1 controlled, directly or indirectly, including through formal or informal
2 arrangements to act in concert, by any of the following:
3 (a) The People's Republic of China.
4 (b) A person owned, controlled by, or acting on behalf of, the People's
5 Republic of China.
6 (c) A person in which the People's Republic of China has, directly or
7 indirectly, including through formal or informal arrangements to act in concert,
8 a five percent or greater interest.
9 (d)(i) A person in which the People's Republic of China has, directly or
10 indirectly, the right or power to appoint, or approve the appointment of, any
11 member of the board of directors, board of supervisors, or equivalent governing
12 body of an entity that holds, directly or indirectly, including formal or informal
13 arrangements to act in concert, a five percent or greater interest in that person
14 within the past three years.
15 (ii) A person in which the People's Republic of China has, directly or
16 indirectly, the right or power to appoint, or approve the appointment of, any
17 officer of an entity that holds, directly or indirectly, including formal or
18 informal arrangements to act in concert, a five percent or greater interest in
19 that person within the past three years.
20 (e)(i) A person in which any member of the board of directors, board of
21 supervisors, or equivalent governing body of an entity that holds, directly or
22 indirectly, including formal or informal arrangements to act in concert, a five
23 percent or greater interest in that person, is a member of the Chinese
24 Communist Party or was a member of the Chinese Communist Party within the
25 previous three years.
26 (ii) A person in which any officer of an entity that holds, directly or
27 indirectly, including through formal or informal arrangements to act in concert,
28 a five percent or greater interest in that person, is a member of the Chinese
29 Communist Party or was a member of the Chinese Communist Party within the
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1 previous three years.
2 (2) "Non-predatory transaction" means a transaction that does not take
3 advantage of the harm caused by COVID-19 to the state of Louisiana, any
4 person registered to do business in the state, or any resident of the state.
5 (3) "People's Republic of China" means the national and subnational
6 governments within the state of the People's Republic of China including but
7 not limited to their respective departments, agencies, and instrumentalities.
8 (4) "Person" means a natural person or juridical person.
9 §3212. Non-Predatory transaction; written approval by the attorney general;
10 notice to secretary of state
11 A.(1) Beginning December 1, 2020, the attorney general shall approve in
12 writing, as a non-predatory transaction, any proposed or pending transaction
13 that involves the purchase or lease by the People's Republic of China or an
14 enterprise of any immovable property in the state, the establishment of a
15 business to operate a factory or other facility on the immovable property, or the
16 acquisition of any equity interest in a person registered to do business in this
17 state.
18 (2) A transaction not approved by the attorney general as required by
19 Paragraph (1) of this Subsection shall be void.
20 B.(1) Not later than sixty calendar days before the transaction provided
21 in Subsection A of this Section is completed, the People's Republic of China or
22 an enterprise shall submit written notice of the proposed or pending transaction
23 to the secretary of state on a form prescribed by the secretary of state.
24 (2) The notice shall contain, at a minimum, the following information:
25 (a) The terms of purchase or lease.
26 (b) The identity and chain of ownership of the buyer and seller and the
27 lessor and leasee.
28 (c) The buyer's purpose and reason for making the investment.
29 (d) The sources of all funds used to make the investment.
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1 (e) Whether the buyer or any affiliate of the buyer will acquire
2 intellectual property as a result of the transaction.
3 (f) Whether the buyer or lessor has received subsidies from the People's
4 Republic of China.
5 §3213. Inspection of property and business
6 The governor, attorney general, secretary of state, or secretary of the
7 Louisiana Department of Health may inspect the immovable property, facility,
8 or factory subject to a transaction approved in accordance with the provisions
9 of R.S. 51:3212.
10 Section 2. The provisions of this Act shall become effective upon signature by the
11 governor or, if not signed by the governor, upon expiration of the time for bills to become
12 law without signature by the governor, as provide by Article III, Section 18 of the
13 Constitution of Louisiana. If vetoed by the governor and subsequently approved by the
14 legislature, the provisions of this Act shall become effective on the day following such
15 approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Beth O'Quin.
DIGEST
SB 75 Original 2020 Second Extraordinary Session Milligan
Proposed law defines the following terms:
(1)"Chinese state-owned enterprise" or "enterprise" means an entity controlled, directly
or indirectly, including through formal or informal arrangements to act in concert,
by the following:
(a) The People's Republic of China.
(b) A person owned, controlled by, or acting on behalf of, the People's Republic
of China.
(c) A person in which the People's Republic of China has, directly or indirectly,
including through formal or informal arrangements to act in concert, a 5% or
greater interest.
(d) A person in which the People's Republic of China has, directly or indirectly,
the right or power to appoint, or approve the appointment of, any members
of the governing body, or any officer of an entity that holds, directly or
indirectly, including through formal or informal arrangements to act in
concert, a 5% or greater interest in that person within the past three years.
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(e) A person in which any member of the governing body or any officer of an
entity that holds, directly or indirectly, including through formal or informal
arrangements to act in concert, a 5% or greater interest in that person, is a
member of the Chinese Communist Party, or was a member of the Chinese
Communist Party within the previous three years.
(2)"Non-predatory transaction" means a transaction that does not take advantage of the
harm caused by COVID-19 to the state, any person registered to do business in the
state, or resident of the state.
(3)"People's Republic of China" means the national and subnational governments within
the state of the People's Republic of China, including but not limited to their
respective departments, agencies, and instrumentalities.
(4) "Person" means a natural person or juridical person.
Proposed law provides that beginning December 1, 2020, the attorney general shall approve
in writing, as a non-predatory transaction, any proposed or pending transaction that involves
the purchase or lease by the People's Republic of China an enterprise of any immovable
property in the state, the establishment of a business to operate a factory or other facility on
such property, or the acquisition of any equity interest in a person registered to do business
in this state. Proposed law provides if the transaction is not approved as provided by law, the
transaction shall be void.
Proposed law provides that not later than 60 calendar days before the transaction is
completed, the People's Republic of China or an enterprise shall submit written notice of the
transaction to the secretary of state on a form prescribed by the secretary of state.
Proposed law provides the notice shall contain, at a minimum, the following:
(1)The terms of purchase or lease.
(2) The identity and chain of ownership of the buyer and seller and the lessor and leasee.
(3) The buyer's purpose and reason for making the investment.
(4) The sources of all funds used to make the investment.
(5) Whether the buyer or any affiliate of the buyer will acquire intellectual property as
a result of the transaction.
(6) Whether the buyer or lessor has received subsidies from the People's Republic of
China.
Proposed law provides the governor, attorney general, secretary of state, or secretary of the
La. Department of Health may inspect the immovable property, facility, or factory subject
to a transaction approved in accordance with proposed law.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 51:3211-3213)
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