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Regular Session, 2014
SENATE BILL NO. 658
BY SENATOR BUFFINGTON
FUNDS/FUNDING. Provides for deposits of monies from certain settlement proceeds as
a result of the Deepwater Horizon oil spill into the Budget Stabilization Fund and the
Medicaid Trust Fund for the Elderly. (7/1/14)
AN ACT1
To amend and reenact R.S. 46:2691(A) and to enact Subpart A of Part II-A of Chapter 1 of2
Subtitle I of Title 39 of the Louisiana Revised Statutes of 1950, comprised of R.S.3
39:91, relative to the deposit of monies received by the state from the Deepwater4
Horizon oil spill; to establish the Deepwater Horizon Economic Damages Collection5
Fund; to provide for deposits of monies into the Medicaid Trust Fund for the Elderly;6
to provide for an effective date; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. Subpart A of Part II-A of Chapter 1 of Subtitle I of Title 39 of the9
Louisiana Revised Statutes of 1950, comprised of R.S. 39:91, is hereby enacted to read as10
follows: 11
SUBPART A. DEEPWATER HORIZON ECONOMIC12
DAMAGES COLLECTION FUND13
§91. Deepwater Horizon Economic Damages Collection Fund14
A. There shall be established in the state treasury as a special permanent15
trust fund, the Deepwater Horizon Economic Damages Collection Fund. After16
allocation of money to the Bond Security and Redemption Fund as provided in17 SB NO. 658
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words in boldface type and underscored are additions.
Article VII, Section 9(B) of the Constitution of Louisiana, the treasurer shall1
deposit in and credit to the Deepwater Horizon Economic Damages Collection2
Fund all proceeds from the settlement, judgment, or final disposition of the3
state's economic damages claims asserted in State of Louisiana v. BP4
Exploration & Production, et al., MDL NO. 2179 (E.D.LA. pending)5
(hereinafter "DWH litigation") to recover economic damages sustained by the6
state from the Deepwater Horizon explosion and oil spill that occurred on or7
about April 20, 2010, at the MC 252 site in the Gulf of Mexico.8
B. Within thirty days of each deposit of the economic damages proceeds9
from the DWH litigation into the Deepwater Horizon Economic Damages10
Collection Fund, the treasurer shall make transfers from the fund as follows:11
(1) Fifty percent of each deposit shall be transferred to the Budget12
Stabilization Fund until the balance of such fund is equal to the balance as of13
April 20, 2010.14
(2) Fifty percent of each deposit shall be transferred to the Medicaid15
Trust Fund for the Elderly until an amount not to exceed seven hundred million16
dollars has been deposited into such fund.17
C. This Subpart shall be null, void, and of no effect at the later of the18
conclusion of the DWH litigation or July 1, 2024.19
Section 2. R.S. 46:2691(A) is hereby amended and reenacted to read as follows:20
§2691. Medicaid Trust Fund for the Elderly21
A. (1) There is hereby established as a permanent trust fund in the state22
treasury designated the "Medicaid Trust Fund for the Elderly", hereinafter referred23
to as the "fund". After allocation of money to the Bond Security and Redemption24
Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana, the25
treasurer shall deposit in and credit to the fund the following sources:26
(a) all All money that is received from any source, including but not limited27
to an intergovernmental transfer program provided for in this Chapter and all income28
on investment of monies in the fund.29 SB NO. 658
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(b) As provided in R.S. 39:91(B)(2) , a portion of the proceeds of the1
settlement, judgment, or final disposition of the state's economic damages2
claims asserted in State of Louisiana v. BP Exploration & Production, et al.,3
MDL NO. 2179 (E.D.LA. pending) to recover economic damages sustained by4
the state from the Deepwater Horizon explosion and oil spill that occurred on5
or about April 20, 2010, at the MC 252 site in the Gulf of Mexico as provided for6
in R.S. 39:91, not to exceed seven hundred million dollars, except when the7
terms and conditions stipulated in the settlement or judgment require8
otherwise. Deposits into the fund from such proceeds received by the state9
associated with the Deepwater Horizon oil spill shall cease when either of the10
following occurs:11
(i) An amount not to exceed seven hundred million dollars has been12
deposited into the fund.13
(ii) The full amount of the monies available as provided for in this14
Subparagraph has been deposited into the fund.15
(2) Monies in the fund shall be invested by the treasurer in the manner16
hereinafter provided. All unencumbered and unexpended monies in the fund at the17
end of the fiscal year shall remain in the fund.18
(3) Monies in the fund may be used as the source of state matching funds for19
Medicaid funds to make enhanced payments to local government-owned health care20
facilities.21
* * *22
Section 3. This Act shall become effective on July 1, 2014; if vetoed by the governor23
and subsequently approved by the legislature, this Act shall become effective on July 1,24
2014, or on the day following such approval by the legislature, whichever is later.25 SB NO. 658
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jay R. Lueckel.
DIGEST
Buffington (SB 658)
Present law establishes the Budget Stabilization Fund and the Medicaid Trust Fund for the
Elderly and provides for deposits and uses of the fund.
Proposed law creates the Deepwater Horizon Economic Damages Collection Fund and
deposits proceeds of the settlement, judgment, or final disposition of the state's economic
damages claims asserted in State of Louisiana v. BP Exploration & Production, et al., MDL
NO. 2179 (E.D.LA. pending) (hereinafter "DWH litigation") to recover economic damages
sustained by the state from the Deepwater Horizon explosion and oil spill that occurred on
or about April 20, 2010, at the MC 252 site in the Gulf of Mexico into the fund.
Proposed law further provides that within thirty days of each deposit of economic damages
proceeds from the DWH litigation into the fund, the treasurer shall make the transfers from
the fund as follows:
(1)50% of the deposits shall be transferred to the Budget Stabilization Fund until the
fund reaches the balance of the fund as of April 20, 2010.
(2)50% of the deposits shall be transferred to the Medicaid Trust Fund for the Elderly
until an amount not to exceed seven hundred million dollars has been deposited into
the fund.
The provisions of proposed law relative to the Deepwater Horizon Economic Damages
Collection Fund shall be null, void, and of no effect at the later of the conclusion of the
DWH litigation or July 1, 2024.
Proposed law provides that a portion of the monies received by the state from the settlement,
judgment, or final disposition of the state's economic damages claims asserted in State of
Louisiana v. BP Exploration & Production, et al. associated with the Deepwater Horizon oil
spill as provided for in proposed law, not to exceed $700 million, shall be deposited into the
Medicaid Trust Fund for the Elderly, except when the terms and conditions stipulated in the
settlement or judgment require otherwise.
Effective July 1, 2014.
(Amends R.S. 46:2691(A); adds R.S. 39:91)