HLS 19RS-686 ENGROSSED
2019 Regular Session
HOUSE BILL NO. 578
BY REPRESENTATIVES MAGEE, AMEDEE, CHAD BROWN, DAVIS, EDMONDS,
GISCLAIR, JAMES, JORDAN, RICHARD, AND ZERINGUE AND SENATORS
CHABERT, LAMBERT, WARD, AND WHITE
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
FUNDS/FUNDING: Dedicates the economic proceeds from the Deepwater Horizon
litigation to transportation projects and redirects funding to the Construction Subfund
of the Transportation Trust Fund
1 AN ACT
2To amend and reenact R.S. 39:91(B)(1) and (2) and (C)(2)(a) and to repeal R.S. 39:91(B)(3)
3 and (4) and (C)(2)(b), and R.S. 46:2691(A)(1)(b), relative to the Deepwater Horizon
4 Economic Damages Collection Fund; to dedicate payments from the litigation to the
5 Construction Subfund of the Transportation Trust Fund for transportation projects;
6 to authorize the proceeds from the Deepwater Horizon litigation to fund certain
7 transportation projects; to provide for certain restrictions; to provide for an effective
8 date; and to provide for related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 39:91(B)(1) and (2) and (C)(2)(a) are hereby amended and reenacted
11to read as follows:
12 §91. Deepwater Horizon Economic Damages Collection Fund
13 * * *
14 B. All economic damages proceeds from the DWH litigation in excess of the
15 first two hundred million dollars deposited in the Fiscal Year 2015-2016 Deficit
16 Elimination Fund shall be deposited by the treasurer as follows:
17 (1) Notwithstanding any provision of law to the contrary including the
18 provisions of Paragraphs (2), (3), and (4) of this Subsection, and Subsection C of this
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HB NO. 578
1 Section, in For Fiscal Year 2018-2019, the annual payment of fifty-three million
2 three hundred thirty-three thousand three hundred thirty-three dollars to the state
3 general fund.
4 (2) Forty-five percent of each such receipt of economic damages proceeds
5 to the Budget Stabilization Fund until that fund reaches the amount statutorily
6 mandated by R.S. 39:94. For Fiscal Years 2021-2026, the annual payments of fifty-
7 three million three hundred thirty-three thousand three hundred thirty-three dollars
8 shall be utilized as follows:
9 (a) For Fiscal Years 2021-2026, twenty-five million dollars shall be dedicated
10 to phase two of the LA 1 improvement project between Golden Meadow, Louisiana
11 and Leeville, Louisiana.
12 (b) For Fiscal Years 2021-2026, twenty-five million dollars shall be
13 dedicated to the planning and construction of the LA 415 Bridge at the Intracoastal
14 Canal.
15 (c) The remainder of the settlement proceeds shall be deposited in the
16 Construction Subfund of the Transportation Trust Fund, which shall be utilized as
17 follows:
18 (i) Fifty percent of each receipt of economic damages shall be dedicated to
19 preservation, bridges, and safety projects.
20 (ii) Fifty percent of each receipt of economic damages shall be dedicated to
21 the construction of capacity projects designated in the Louisiana Statewide
22 Transportation Plan.
23 * * *
24 C.
25 * * *
26 (2)(a) Appropriations from the Deepwater Horizon Economic Damages
27 Collection Fund shall be limited to an annual amount not to exceed the estimated
28 aggregate annual earnings from interest earned on the investment of monies in the
29 fund and shall be made to the Board of Regents to be equitably allocated to public
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HB NO. 578
1 postsecondary education institutions in the state in accordance with Article VIII,
2 Section 5(D)(4) of the Constitution of Louisiana. The board may also distribute such
3 appropriations to independent institutions for higher learning in accordance with R.S.
4 17:2053. The payment dollars pursuant to the provisions of this Section shall not be
5 used by the Department of Transportation and Development for any project that is
6 to be funded through Grant Anticipation Revenue Vehicle (GARVEE) bonds.
7 * * *
8 Section 2. Notwithstanding Section 12 of Act No. 612 of the 2018 Regular Session
9of the Legislature, R.S. 39:91(B)(4) as amended by that Act, shall not become effective.
10 Section 3. R.S. 39:91(B)(3) and (4) and (C)(2)(b), and R.S. 46:2691(A)(1)(b) are
11hereby repealed in their entirety.
12 Section 4. This Act shall become effective upon signature by the governor or, if not
13signed by the governor, upon expiration of the time for bills to become law without signature
14by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
15vetoed by the governor and subsequently approved by the legislature, this Act shall become
16effective on the day following such approval.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 578 Engrossed 2019 Regular Session Magee
Abstract: Dedicates the economic proceeds from the Deepwater Horizon litigation to
transportation projects and redirects funding to the Construction Subfund of the
Transportation Trust Fund.
Present law requires the annual payment of $53,333,333 from the Deepwater Horizon
litigation to be deposited into the state general fund for Fiscal Year 2018-2019. Proposed law
retains present law.
Present law creates the Deepwater Horizon Economic Damages Collection Fund, and
requires all economic damages from the Deepwater Horizon litigation, in excess of the first
$200 million deposited into the FY 15-16 Deficit Elimination Fund, to be deposited into the
Deepwater Horizon Economic Damages Collection Fund and then deposited as follows:
(1)45% to the Budget Stabilization Fund.
(2)45% to the Trust Fund for the Elderly.
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HB NO. 578
(3)10% to the Health Trust Fund.
Proposed law repeals present law. For Fiscal Years 2021-2026, proposed law requires $50
million of the annual payments of $53,333,333 from the Deepwater Horizon litigation to be
used as follows:
(1)For Fiscal Years 2021-2026, $25 million per year shall fund phase 2 of the LA 1
Improvement Project between Golden Meadow, LA and Leeville, LA.
(2)For Fiscal Years 2021-2025, $25 million per year shall fund the planning and
construction of the LA 415 Bridge at the Intracoastal Canal.
Proposed law requires the remainder of the economic damages from the Deepwater Horizon
litigation to be deposited into the Construction Subfund of the Transportation Trust Fund to
be utilized as follows:
(1)50% shall be dedicated to preservation, bridges, and safety projects.
(2)50% shall be dedicated to capacity projects as specified in the Louisiana Statewide
Transportation Plan.
Proposed law prohibits the use of any of the economic proceeds from the Deepwater Horizon
litigation by the Dept. of Transportation and Development for any project that is funded
through GARVEE bonds.
Present law (§12 of Act No. 612 of 2018 R.S.) directs the balance of economic damages
proceeds to the state general fund beginning on July 1, 2020. Proposed law repeals present
law.
Present law requires all unspent monies in the fund to remain in the fund at the end of the
year. The monies shall be invested by the state treasurer in the same manner as the monies
in the state general fund and the interest earned on the investment of monies in the fund shall
be credited to the fund. Proposed law retains present law.
Present law limits appropriations from the fund to annual interest earnings and to be made
to the Board of Regents for distribution to state public postsecondary education institutions.
Additionally, allows appropriations to be distributed to independent institutions of higher
learning. Also requires that appropriations to the Board of Regents from the fund shall not
displace, replace, or supplant funding for higher education. Proposed law repeals present
law.
Present law establishes the economic damages from the Deepwater Horizon litigation to be
a source of funding for the Medicaid Trust Fund for the Elderly. Proposed law repeals
present law.
(Amends R.S. 39:91(B)(1) and (2) and (C)(2)(a); Repeals R.S. 39:91(B)(3) and (4) and
(C)(2)(b), and R.S. 46:2691(A)(1)(b))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the
original bill:
1. Change the fiscal years of the annual payments from the Deepwater Horizon
Economic Damages Collection Fund for the phase 2 of the LA 1 Improvement
Project between Golden Meadow, LA and Leeville, LA from 2020-2026 to 2021-
2026.
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HB NO. 578
2. Change the fiscal years of the annual payments from the Deepwater Horizon
Economic Damages Collection Fund for the planning and construction of the LA
415 Bridge at the Intracoastal Canal from 2020-2025 to 2021-2025.
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