Louisiana House Bill HR132

Louisiana 2017 Regular Session

• Introduced: 5/18/17
• Refer: 5/18/17
• Report Pass: 5/22/17
• Passed: 6/5/17

Caption

Provides for the examination of certain matters relative to the fiduciary duties of the RACER trust

Impact

The bill underscores the state's responsibility to ensure economic growth and development in Louisiana through effective policy creation and oversight. It seeks to tackle the challenges that have hindered the anticipated automotive manufacturing activities and job creation by investigating the dealings between the RACER Trust, local economic development entities, and Elio Motors, the prospective operator of the plant. The resolution's findings are intended to equip the legislature and economic development officials with crucial data to improve policies that satisfy local economic needs.

Summary

House Resolution 132 (HR132) proposes the establishment of a subcommittee within the House Committee on Commerce to scrutinize the fiduciary responsibilities of the Revitalizing Auto Communities Environmental Response Trust (RACER Trust), particularly in relation to the former General Motors Shreveport plant. This resolution emerges from concerns regarding the effectiveness of the RACER Trust in facilitating economic development post the General Motors bankruptcy and their subsequent management of the property in question.

Sentiment

The sentiment around HR132 appears to be cautiously optimistic, reflecting a desire for accountability and effective management of the RACER Trust. While there is recognition of the potential for significant economic benefit from the redevelopment of the former GM plant, concerns persist about the lack of automobile manufacturing activity and the failure to create the promised jobs. Stakeholders are eager for thorough investigations that may lead to revitalized efforts to spur economic activity.

Contention

There exists notable contention regarding the previous dealings surrounding the RACER Trust, particularly in terms of the management decisions made during the transition of the former GM-Shreveport plant. Critics suggest that the trust may have failed in its fiduciary duties, leading to missed opportunities for economic development that could have resulted from operational automotive manufacturing. Furthermore, skepticism exists over whether current management under Industrial Realty Group and the lack of local oversight will lead to the expected job creation and revitalization efforts that were initially envisioned.