Louisiana Senate Bill SB658

Louisiana 2014 Regular Session

• Introduced: 4/1/14
• Refer: 4/2/14

Caption

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) (OR DECREASE GF RV See Note)

Impact

The proposed law mandates that 50% of any economic damages deposits go to the Budget Stabilization Fund until it balances to its pre-spill level from April 2010. The remaining 50% will be directed to the Medicaid Trust Fund for the Elderly until it receives up to $700 million. This legislation is crucial in providing financial support to local health care facilities and stabilizing state finances following significant economic disruptions caused by the disaster. The bill's provisions will remain in effect until either the conclusion of the DWH litigation or until July 1, 2024, whichever comes first.

Summary

Senate Bill 658, introduced by Senator Buffington, establishes the Deepwater Horizon Economic Damages Collection Fund to manage financial proceeds stemming from economic damages caused by the Deepwater Horizon oil spill, which occurred on April 20, 2010. Under this bill, proceeds from the state's claims against BP and other responsible parties will be allocated into two main funds: the Budget Stabilization Fund and the Medicaid Trust Fund for the Elderly. The intent is to ensure that the state can recover financially from the damages while directing essential funds toward social services for the elderly.

Sentiment

The sentiment surrounding SB 658 appears to be generally positive among its proponents, who view the fund as a necessary step toward financial recovery from the oil spill's long-term effects. Supporters emphasize the bill's potential to provide immediate resources for elderly health care and stabilize the state budget. However, there may be contention regarding the adequacy of funds and how the settlements will be managed, especially concerning the potential financial oversight and constraints associated with the deposited funds.

Contention

Key points of contention may arise around the distribution mechanism and the bill's expiration, creating uncertainty about future financial allocations after 2024. Stakeholders might debate whether sufficient protections are in place to ensure the responsible use of the funds for their intended purposes. Additionally, while the bill aims to deliver crucial funding to health services for the elderly, there may be discussions about addressing the attention and resources needed for other affected industries and communities that also suffered due to the spill.