HLS 19RS-686 REENGROSSED
2019 Regular Session
HOUSE BILL NO. 578
BY REPRESENTATIVES MAGEE, AMEDEE, BAGLEY, BAGNERIS, BERTHELOT,
BOURRIAQUE, CHAD BROWN, CARMODY, STEVE CARTER, CONNICK,
CREWS, DAVIS, DUBUISSON, EDMONDS, FOIL, GAINES, GISCLAIR,
HILFERTY, HOLLIS, IVEY, JAMES, JONES, JORDAN, LACOMBE, PEARSON,
RICHARD, SCHEXNAYDER, STAGNI, STOKES, THOMAS, AND ZERINGUE
AND SENATORS CHAB ERT, 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)(2), (3), and (4) and (C)(2), to enact R.S. 39:91(B)(5),
3 and to repeal R.S. 46:2691(A)(1)(b), relative to the Deepwater Horizon Economic
4 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)(2), (3), and (4) and (C)(2) are hereby amended and
11reenacted and R.S. 39:91(B)(5) is hereby enacted to 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 * * *
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1 (2) For Fiscal Year 2019-2020, forty-five Forty-five percent of each such
2 receipt of economic damages proceeds to the Budget Stabilization Fund until that
3 fund reaches the amount statutorily mandated by R.S. 39:94.
4 (3) For Fiscal Year 2019-2020, forty-five Forty-five percent of each such
5 receipt of economic damages proceeds to the Medicaid Trust Fund for the Elderly
6 provided for in R.S. 46:2691 until an amount not to exceed seven hundred million
7 dollars has been deposited into such fund.
8 (4) For Fiscal Year 2019-2020, ten Ten percent of each such receipt of
9 economic damages proceeds to the Health Trust Fund provided for in R.S. 46:2731
10 until an amount not to exceed thirty million dollars has been deposited into such
11 fund.
12 (5) For Fiscal Years 2021-2026, the annual payments of fifty-three million
13 three hundred thirty-three thousand three hundred thirty-three dollars shall be
14 utilized as follows:
15 (a) For Fiscal Years 2021-2026, twenty-five million dollars shall be
16 dedicated to phase two of the LA 1 Improvement Project between Golden Meadow,
17 Louisiana and Leeville, Louisiana.
18 (b) For Fiscal Years 2021-2025, twenty-five million dollars shall be
19 dedicated to the planning and construction of the LA 415 Bridge at the Intracoastal
20 Canal.
21 (c) The remainder of the settlement proceeds shall be deposited in the
22 Construction Subfund of the Transportation Trust Fund, which shall be utilized as
23 follows:
24 (i) Fifty percent of each receipt of economic damages shall be dedicated to
25 preservation, bridges, and safety projects divided equally among each of the
26 Department of Transportation and Development highway districts.
27 (ii) Fifty percent of each receipt of economic damages shall be dedicated to
28 the construction of capacity projects designated in the Louisiana Statewide
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HB NO. 578
1 Transportation Plan divided equally among each of the Department of Transportation
2 and Development highway districts.
3 * * *
4 C.
5 * * *
6 (2)(a) Appropriations from the Deepwater Horizon Economic Damages
7 Collection Fund shall be limited to an annual amount not to exceed the estimated
8 aggregate annual earnings from interest earned on the investment of monies in the
9 fund and shall be made to the Board of Regents to be equitably allocated to public
10 postsecondary education institutions in the state in accordance with Article VIII,
11 Section 5(D)(4) of the Constitution of Louisiana. The board may also distribute such
12 appropriations to independent institutions for higher learning in accordance with R.S.
13 17:2053. The payment dollars pursuant to the provisions of this Section shall not be
14 used by the Department of Transportation and Development for any project that is
15 to be funded through Grant Anticipation Revenue Vehicle (GARVEE) bonds.
16 (b) The monies appropriated by the legislature and disbursed from the
17 Deepwater Horizon Economic Damages Collection Fund shall not displace, replace,
18 or supplant funding for higher education. This Subparagraph shall mean that no
19 appropriation for any fiscal year from the Deepwater Horizon Economic Damages
20 Collection Fund shall be made for any purpose for which a general fund
21 appropriation was made in the previous year unless the total appropriations for that
22 fiscal year from the state general fund for such purpose exceed general fund
23 appropriations for the previous year. This Subparagraph shall in no way limit
24 general fund appropriations in excess of the minimum amounts herein established.
25 * * *
26 Section 2. Notwithstanding Section 12 of Act No. 612 of the 2018 Regular Session
27of the Legislature, R.S. 39:91(B)(4) as amended by that Act, shall not become effective.
28 Section 3. R.S. 46:2691(A)(1)(b) is hereby repealed in its entirety.
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1 Section 4. This Act shall become effective upon signature by the governor or, if not
2signed by the governor, upon expiration of the time for bills to become law without signature
3by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
4vetoed by the governor and subsequently approved by the legislature, this Act shall become
5effective 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 Reengrossed 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.
(3)10% to the Health Trust Fund.
Proposed law requires, for Fiscal Year 2019-2020 only, that the proceeds from the
Deepwater Horizon Economic Damages Collection Fund to go to the Budget Stabilization
Fund, the Trust Fund for the Elderly, and the Health Trust Fund.
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. Funding for
such projects must be divided equally among each of the Dept. of Transportation and
Development highway districts.
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(2)50% shall be dedicated to capacity projects as specified in the La. Statewide
Transportation Plan. Funding for such projects must be divided equally among each
of the Dept. of Transportation and Development highway districts.
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)(2), (3), and (4) and (C)(2); Adds R.S. 39:91(B)(5); Repeals 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.
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.
The House Floor Amendments to the engrossed bill:
1. Require the proceeds from the Deepwater Horizon litigation to go to the Budget
Stabilization Fund, the Trust Fund for the Elderly, and the Health Trust Fund
only for Fiscal Year 2019-2020.
2. Require the remaining settlement proceeds from the Deepwater Horizon
litigation to be divided equally among each of the Dept. of Transportation and
Development highway districts.
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