Louisiana House Bill HR6

Louisiana 2018 3rd Special Session

• Introduced: 6/20/18
• Refer: 6/21/18

Caption

Provides for examination relative to the fiduciary duties of the RACER trust and constitutionality of the current lease agreement for the General Motors Shreveport plant

Impact

The establishment of this subcommittee is intended to gather detailed findings that could lead to proposed legislation to enhance oversight and regulatory measures concerning public assets and industrial development practices in Louisiana. The resolution highlights the importance of understanding how the production and management decisions at the GM-Shreveport plant potentially impact state laws and economic outcomes in the region, aiming for improved governance and accountability in public-private partnerships.

Summary

House Resolution 6 (HR6) was introduced to create a subcommittee under the House Committee on Commerce aimed at examining the fiduciary duties of the Revitalizing Auto Communities Environmental Response Trust (RACER Trust) in relation to the former General Motors Shreveport plant. The resolution stems from concerns that there may have been mismanagement in the handling of the plant's lease agreements and related economic development processes. A key aspect of this investigation is whether the existing lease agreement for the plant violates provisions of the Louisiana Constitution regarding the use of public resources.

Sentiment

The generally supportive sentiment for HR6 reflects recognition of the need for thorough investigation and potential reform in the handling of public contracts and resources. However, there exists contention related to the criticism of the RACER Trust's actions, particularly concerning its negotiation processes with companies like Industrial Realty Group and Elio Motors. Discussions have highlighted concerns about whether local communities have had adequate oversight and involvement in decisions that affect their economic futures.

Contention

Key points of contention include allegations that the RACER Trust may have failed its fiduciary responsibilities by possibly ignoring better options for the use of the Shreveport plant, including its potential for job creation and economic revitalization. There are worries that the subcommittee's findings may uncover serious breaches of duty or even constitutional violations, which could lead to significant changes in how local economic development is managed in the state. These factors set the stage for heated discussions about the balance between state oversight and local autonomy in economic matters.