The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Beth O'Quin.
DIGEST
SB 75 Engrossed 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.
(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)"Department" means the Department of Economic Development.
(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 January 1, 2021, the attorney general shall receive written
notification from an enterprise that participates in an incentive or rebate program with the
department. The notice shall contain the following information: (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 that within 60 calendar days after the enterprise receives funding from the
department, the enterprise shall submit written notice to the attorney general on a form prescribed
by the attorney general.
Proposed law provides that if the notification is not submitted to the attorney general as required by
proposed law, the existing contract with the department is void and the attorney general shall bring
proceedings against the enterprise to recover the funds.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 51:3211 and 3212)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the original bill
1. Makes technical corrections.
2. Removes the definition of "non-predatory transactions".
3. Defines the term "department" as the Department of Economic Development.
4. Removes requirement of the attorney general to approve certain transactions
involving the People's Republic of China or an enterprise.
5. Requires an enterprise to submit to the attorney general written notice within 60
calendar days of receiving the incentive or rebate from the department.
6. Provides that failure to comply with proposed law will nullify the contract and allows
the attorney general to recover funds received by the enterprise.