PROPERTY/EXPROPRIATION: Prohibits foreign entities from conducting expropriation activities
Summary
HB 37 amends Louisiana’s expropriation statute to restrict which foreign entities may use eminent-domain-like powers to take property. Under current law, certain domestic and foreign corporations, limited liability companies, and other legal entities engaged in specified public-utility or infrastructure activities may expropriate needed property after attempting in good faith to reach an agreement with the owner. The bill adds new limits by prohibiting expropriation by foreign entities that are not incorporated or registered to do business in any U.S. state, territory, or the District of Columbia, and by foreign entities whose country of primary ownership or incorporation does not have a reciprocal expropriation agreement with the United States.
Impact
The bill would narrow the class of entities eligible to expropriate property under R.S. 19:2 by excluding certain foreign corporations, LLCs, and other legal entities from using Louisiana’s expropriation procedures. It would affect entities involved in infrastructure and utility projects that currently have expropriation authority under the statute, including rail, water, gas, telecommunications, electric, pipeline, and carbon dioxide transport or storage projects, to the extent those entities are foreign and fall within the new prohibitions. The measure amends existing property law and could affect project development, land acquisition, and utility siting by limiting foreign participation in expropriation.
Sentiment
The available record shows the bill was pending in the House Civil Law and Procedure Committee and does not include recorded votes or committee testimony. Based on the bill’s caption and text, the measure appears to reflect a restrictive, sovereignty-focused approach toward foreign control over property-taking authority. Because no transcripts or vote history are provided, there is no documented public debate in the record about support or opposition, but the proposal itself suggests concern about foreign entities exercising eminent-domain powers in Louisiana.
Contention
The main point of contention is likely to be whether foreign-owned or foreign-incorporated infrastructure and utility companies should retain expropriation authority if they are otherwise operating in Louisiana. Supporters would likely argue that property-taking power should be reserved to entities with stronger U.S. legal ties or reciprocal treatment from their home countries, while opponents may argue the bill could hinder investment, delay infrastructure projects, and create uncertainty for utilities and energy developers. The reciprocity requirement and the exclusion of entities not registered in a U.S. jurisdiction are the most significant limiting provisions.