Louisiana House Bill HR207

Louisiana 2019 Regular Session

• Introduced: 5/22/19
• Passed: 5/31/19

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 its operations

Impact

This resolution raises significant questions about the current governance and operational effectiveness of the RACER Trust in relation to its duty to utilize the GM-Shreveport plant's assets for economic benefit. Investigating these issues may lead to changes in how industrial development boards function in Louisiana, particularly concerning the management of publicly owned assets that hold potential for growth and employment. The resolution also indicates that existing legislative provisions may need reevaluation to ensure proper oversight and accountability.

Summary

House Resolution 207 memorializes the United States Congress to investigate the economic development status in Louisiana concerning the RACER Trust's fulfillment of fiduciary duties related to the former General Motors (GM) Shreveport plant. The resolution highlights the transition of the plant's oversight from General Motors to the RACER Trust following GM's bankruptcy, with an emphasis on the potential inefficiencies and mismanagement of the resulting assets intended for local economic revitalization.

Sentiment

The sentiment surrounding HR 207 reflects a sense of urgency and concern among legislators over the economic prospects of Louisiana, particularly in areas formerly reliant on the GM plant. There is a bipartisan recognition of the need for transparency in how critical assets are managed and a collective interest in protecting the economic interests of communities affected by the plant's closure. However, the discussions may carry undercurrents of frustration with local governance structures and their inability to effectively leverage state resources for public good.

Contention

Notable points of contention arise from the handling of the GM-Shreveport plant and the lease agreements established with the Industrial Realty Group and Elio Motors, which have drawn scrutiny over their adherence to constitutional mandates. Concerns regarding potential violations of Article VII, Section 14(A) of the Louisiana Constitution imply that some actions taken in the plant's management may not serve the best interest of the public, leading to calls for deeper investigations and reforms in industrial development practices.