GREEN SHEET REDIGEST
HB 578 2019 Regular Session Magee
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
DIGEST
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 2021-2034, proposed law requires, after paying of amounts due on bonds
and related expenses, the state treasurer to immediately transfer the balance of the annual
payments of $53,333,333 from the Deepwater Horizon litigation to the Construction Subfund
of the Transportation Trust Fund. The economic damage proceeds and the bonds shall be
issued, after paying the costs associated with the issuance of the bonds, solely and
exclusively for the following projects and in the following amounts:
(a)For Fiscal Years 2021-2026, $25,000,000
per year for Phase Two of the LA 1 Improvement
Project between Golden Meadow, La. and
Leeville, La. $150,000,000
(b)LA 415 Bridge at the Intracoastal Canal $125,000,000
(c)I-49 South $150,000,000
(d)LA. Highway 3241 from I-12 to Bush, La. $50,000,000
(e)Additional two lanes for the Jimmy Davis
Bridge (LA 511) and Repair of the Existing
Bridge $100,000,000
(f)Acquisition of a New Cameron Parish Ferry $20,000,000
(g)On-System Bridge Program for the
replacement and rehabilitation program
for highway bridges on any federal-aid
system over waterways, other topographical
barriers, other highways, and railroads $40,000,000
(h)Sugarhouse Road Extension/Eddie Williams
Boulevard to LA 43 Highway 1, Phase I and II $19,000,000
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Prepared by Martha Hess. (i)Acquisition of Two Cranes for the Port of
New Orleans $20,000,000
(j)Hooper Road Widening from LA 3034 to LA 37 $15,000,000
Proposed law authorizes the State Bond Commission to securitize the remaining proceeds
from the Deepwater Horizon, and provides that the proceeds of the bonds, after paying the
costs of issuance, shall be used solely on the listed projects.
Proposed law provides relative to the issuance of the bonds, the procedure to contest the
validity of the issuance of the bonds, the rights of bondholders, authorizes the issuance of
refunding bonds, and other procedures and details relative to the issuance of the bonds.
Provides that the bonds will not be full faith and credit debt of the state.
Proposed law provides that payments into the Budget Stabilization Fund shall be fulfilled
first from surplus revenues from the prior fiscal year, secondly, after fulfilling the
requirements of R.S. 39:100.61 from excess revenues of the current fiscal year, or by an
appropriation from the state general fund.
Proposed law provides that the dollar value listed, plus an amount equal to ten percent,
together with other requirements including but not limited to costs of issuance, capitalized
interest, if any, credit enhancement and related costs, is the maximum amount that may be
financed for each of the following projects.
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 repeals 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.
Present law establishes the economic damages from the Deepwater Horizon litigation to be
a source of funding for the Health Trust Fund. Proposed law repeals present law.
Present law sunsets at the later of the conclusion of the DWH litigation or July 1, 2024.
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
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Prepared by Martha Hess. 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.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the
reengrossed bill
1. Beginning FY 2021-2034, requires the remaining proceeds from the
Deepwater Horizon litigation to be used solely on listed projects.
2. Repeals sunset provision of present law and repeals payments to the Health
Trust Fund beginning in FY 21.
3. Authorizes the State Bond Commission to securitize the remaining proceeds
from the Deepwater Horizon and provides relative to the bonds.
4. Provides that the proceeds of the bonds, after paying the costs of issuance,
shall be used solely on the listed projects.
5. Provides relative to the issuance of the bonds, the procedure to contest the
validity of the issuance of the bonds, the rights of bondholders, authorizes the
issuance of refunding bonds, and other procedures and details relative to the
issuance of the bonds.
6. Provides that the bonds will not be full faith and credit debt of the state.
7. Provides that payments into the Budget Stabilization Fund shall be fulfilled
first from surplus revenues from the prior fiscal year, secondly, after fulfilling
the requirements of R.S. 39:100.61 from excess revenues of the current fiscal
year, or by an appropriation from the state general fund.
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Prepared by Martha Hess.