Louisiana House Bill HCR59

Louisiana 2023 Regular Session

• Introduced: 4/25/23
• Refer: 4/26/23
• Report Pass: 5/8/23
• Engrossed: 5/17/23
• Refer: 5/18/23
• Report Pass: 5/24/23
• Passed: 5/31/23

Caption

Requests the U.S. Securities and Exchange Commission to withdraw its proposed rule with respect to climate-related disclosures for investors

Impact

If implemented, this SEC rule would impose substantial compliance costs on companies, particularly those in the fossil fuel sector, which forms a significant part of Louisiana's economy. Legislators argue that the extensive requirements of the proposed rule would divert vital resources from businesses, potentially harming their economic viability amidst rising regulatory expenses. Proponents of HCR59 assert that the SEC's actions exceed its intended mission and expertise, leading to unnecessary burdens on publicly traded companies and their customers within the state.

Summary

House Concurrent Resolution 59 (HCR59) urges the U.S. Securities and Exchange Commission (SEC) to withdraw its proposed rule regarding climate-related disclosures for investors. The proposal requires publicly traded companies in Louisiana and elsewhere to disclose detailed information about their greenhouse gas emissions, including emissions from their entire value chain. This move aims to enhance transparency around corporate impacts on the environment but raises concerns among state legislators regarding its feasibility and implications for local industries.

Sentiment

The sentiment surrounding HCR59 is predominantly critical of the SEC's proposed rule, reflecting a defensive stance towards the local business climate. Supporters of the resolution include members of the Louisiana legislature who believe that enforced climate disclosures would harm the state's fossil fuels industry and emphasize the need for economic resilience in the face of increasing environmental regulations. Critics of the proposed rule argue that it would result in confusion rather than clarity regarding corporate environmental responsibility.

Contention

A notable point of contention in discussions around HCR59 is the balance between corporate accountability on climate issues and the economic interests of local industries. While environmental advocates may support strong disclosures as a means to combat climate change, Louisiana legislators argue that the proposed SEC rule represents an overreach that could dismantle crucial sectors of their economy. The ongoing dialogue highlights the complexities of environmental regulation versus economic development, with legislators urging the SEC to reconsider its approach.