Rep. Valarie Hodges Blocks Loop Funding

BATON ROUGE — State Rep. Valarie Hodges Tuesday convinced the Louisiana House of Representatives to adopt an amendment that could block funding for the proposed Baton Rouge Loop.

Mayor-President Kip Holden has twice been to Communist China to seek funding for the Loop from a bank controlled by the Peoples Republic of China. The House was considering SB 723, which would allow the Louisiana Secretary of Economic Development to enter into “cooperative endeavor agreements” with foreign governments and foreign companies for the construction of infrastructure in Louisiana.

Hodges expressed concern about the bill and offered an amendment to prohibit foreign governments from acquiring public roads, bridges, airports, and ports in Louisiana.  Hodges distributed news articles showing the announcement by China’s government-owned shipping company, COSCO, that it is seeking to purchase a major port on the Gulf of Mexico.

The ports of South Louisiana, New Orleans, and Baton Rouge together constitute the largest port complex in the Western Hemisphere.  Hodges pointed out that there is currently no federal or Louisiana state law prohibiting a foreign government from purchasing public roads, bridges, toll-roads, airports, or ports.

Hodges said China has acquired port facilities on both the Atlantic and Pacific entrances to the Panama Canal as well as major ports in Mexico.  China recently purchased a major bank with branches in California.  Hodges cited China’s purchase this week of AMC movie theaters, which includes 346 theaters across the nation and 23 of the largest 50 movie theaters.

Hodges said China has the cash to buy up America.  She said the Louisiana Legislature can’t stop China from purchasing private businesses but it can and should stop them from purchasing Louisiana’s government-owned infrastructure.

However, several House members led by House Commerce Committee chairman Eric Ponti (R-Baton Rouge) fought Hodges’ amendment, saying it might have unintended consequences.

Hodges said it would be dangerous to sell off America’s infrastructure, especially to a hostile dictatorship.

After 30 minutes of debate, her first amendment failed 23-66.

Then the first-term legislator offered a second amendment to try to stop funding for the Baton Rouge Loop.  Mayor-President Kip Holden has been unable to get significant local, state, or federal funding for the Loop but he has tried to get the Chinese government bank to become the “private” partner in a “public-private” partnership to build the Loop.  The Chinese would only have to put up $200 to $300 million to become the owner of the entire Loop project, which could cost $4 to $6 billion.

Hodges’ amendment prohibited the Secretary of Economic Development from adopting a Master Plan that includes funding of a toll-road in East Baton Rouge or Livingston parishes.  After some discussion, the amendment was approved unanimously.

Hodges said that, while the amendment does not prevent the Loop from being funded by local, state, or federal government, it should serve as a major barrier to any plan to allow Chinese or other foreign funding of the Loop.