Louisiana House Bill HB409

Louisiana 2016 Regular Session

• Introduced: 3/3/16
• Refer: 3/3/16
• Refer: 3/14/16
• Report Pass: 5/9/16
• Engrossed: 5/16/16
• Refer: 5/17/16
• Report Pass: 5/31/16
• Enrolled: 6/6/16
• Chaptered: 6/17/16
• Passed: 6/17/16

Caption

Provides for the transfer, deposit, and use of monies among state funds (EN SEE FISC NOTE GF RV See Note)

Impact

This legislative measure creates a clearer framework for managing state revenues arising from significant legal settlements, particularly those associated with the Deepwater Horizon incident. By directing funds into the Fiscal Year 2015-2016 Deficit Elimination Fund and establishing a special trust fund for economic damages, the bill aims to bolster the state’s ability to address its fiscal challenges. This could potentially allow for better funding of essential services and restoration efforts after the environmental crisis spurred by the oil spill.

Summary

House Bill 409 focuses on the financial management of state funds in Louisiana, specifically concerning the allocation and transfer of certain funds stemming from the Deepwater Horizon oil spill litigation. It establishes mechanisms for depositing lease payments from public/private partnerships involving hospital facilities into the state general fund and outlines how funds recovered through litigation should be allocated for various state needs involving environmental restoration and budget deficits. Additionally, it emphasizes the need for transparency regarding the reporting of these funds to the Joint Legislative Committee on the Budget.

Sentiment

The sentiment surrounding HB 409 appears to be generally positive, particularly among lawmakers who see it as a necessary step towards fiscal responsibility and effective fund management. However, there are concerns regarding the prioritization of certain funds and whether they adequately provide for direct community needs affected by the Deepwater Horizon disaster. Stakeholders, including environmental advocates, may view the allocation of funds with caution, emphasizing the need for comprehensive environmental restoration and accountability.

Contention

While the discussion around HB 409 has largely been supportive, notable points of contention may arise as the specifics of fund allocation are executed. Advocates for environmental recovery suggest that the settlement funds should be allocated directly to initiatives focused on restoring habitats and communities affected by the oil spill, ensuring that the funds benefit those most impacted. Moreover, transparency in the management of these funds is crucial to maintain public trust and ensure that funds are used appropriately and effectively.