Louisiana House Bill HR242

Louisiana 2017 Regular Session

• Introduced: 6/8/17
• Passed: 6/8/17

Caption

Memorializes the United States Congress to investigate the current condition of economic development in the state of Louisiana concerning the RACER Trust's fulfillment of fiduciary obligations regarding the former General Motors Shreveport plant and operations

Impact

The resolution highlights the ramifications of the RACER Trust’s actions regarding the former GM plant. Since its closure and the bankruptcy of GM, the potential economic benefits of redeveloping the plant have not been realized, as Elio Motors has failed to commence automobile production as projected. The resolution implicates the poor management of the asset by the RACER Trust and local entities, suggesting that without proper oversight, the promise of job creation and revitalization will remain unfulfilled, thus affecting local employment rates and economic growth.

Summary

House Resolution 242 calls upon the United States Congress to investigate the economic development situation concerning the Revitalizing Auto Communities Environmental Response Trust (RACER Trust) and its management of the former General Motors (GM) Shreveport plant. Given the plant's history as a significant source of employment and economic activity prior to its closure, the resolution underscores concerns regarding the future of this facility and the implications of its management on local economic opportunities. It emphasizes the need for federal oversight to ensure that the transition and subsequent decisions related to the plant do not disadvantage the state of Louisiana.

Sentiment

The sentiment surrounding HR242 appears to be one of urgency and concern. Legislators and stakeholders seem to be worried that the lack of transparency and effectiveness in the negotiations and contracts around the former GM plant may jeopardize the state's economic future. While some view the request for investigation as an essential step towards accountability and revitalization, others may see this resolution as a necessary political maneuver to attract attention to a neglected asset that once served as a cornerstone of local employment.

Contention

A point of contention arises from the perceived mismanagement and lack of productive outcomes stemming from the relationship between the RACER Trust and local entities like the Caddo Parish Industrial Development Board and Industrial Realty Group. The delays and failures in delivering on the promised rejuvenation and job creation have sparked debate over the appropriateness of the current arrangements. Critics argue that the state should have stricter oversight and clearer expectations set for companies like Elio Motors to ensure that the local populace does not continue to suffer from unfulfilled economic commitments.