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.
(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 (ยง12 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.
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.