RÉSUMÉ DIGEST
ACT 443 (HB 578) 2019 Regular Session Magee
Existing 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.
Existing law creates the Deepwater Horizon Economic Damages Collection Fund.
Prior law required 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.
New law, for Fiscal Year 2019-2020 only, requires that the proceeds from the Deepwater
Horizon Economic Damages Collection Fund be deposited into the Budget Stabilization
Fund, the Trust Fund for the Elderly, and the Health Trust Fund.
New law for Fiscal Years 2021-2034, requires that, after paying amounts due on bonds and
related expenses, the state treasurer shall 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:
(1)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
(2)LA 415 Bridge at the Intracoastal Canal $125,000,000
(3)I-49 South $150,000,000
(4)LA. Highway 3241 from I-12 to Bush, La. $50,000,000
(5)I-49 North Inter-City Connector in Caddo Parish $100,000,000
(6)Acquisition of a New Cameron Parish Ferry $20,000,000
(7)On-System Bridge Program for the replacement
and rehabilitation program for highway bridges
on any federal-aid system, railroads,
and replacement and rehabilitation of highway
bridges on state highways that are ineligible
for federal highway funding assistance $40,000,000
(8)Sugarhouse Road Extension/Eddie Williams
Boulevard to LA 43 Highway 1, Phase I and II $19,000,000
(9)Acquisition of Two Cranes for the Port of
New Orleans $20,000,000
(10)Hooper Road Widening from LA 3034 to LA 37 $15,000,000
New law exempts the projects in new law from the requirements of being included in the
annual comprehensive capital budget and from legislative approval. New law establishes a special fund where the source of the monies within the fund shall be
the economic proceeds from the Deepwater Horizon litigation beginning in Fiscal Year 2021
through Fiscal Year 2034. The monies in the fund shall be used for the projects listed in new
law.
New law authorizes the State Bond Commission to pledge the economic proceeds from the
Deepwater Horizon litigation to securitize the bonds that may be issued to construct the
projects in new law.
New law provides for the issuance of the bonds, the procedure to contest the validity of the
issuance of the bonds, the rights of bondholders, issue refunding bonds, and other procedures
related to the issuance of the bonds. Provides that the bonds shall not be full faith and credit
debt of the state.
New law listed the amounts that may be financed for each of the projects in new law to the
dollar value listed, plus an amount equal to 10%, plus the costs of issuance, capitalized
interest, if any, credit enhancements and related costs.
New 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.
Existing law defines net state tax supported debt. New law exempts any bond, note, or other
evidence of indebtedness issued for the purpose of financing the projects in new law or any
bonds issued to refund the bonds, notes, or other evidence of indebtedness from the
definition of net state tax supported debt.
Prior law (§12 of Act No. 612 of 2018 R.S.) directed the balance of economic damages
proceeds to the state general fund beginning on July 1, 2020.
Prior law required all unspent monies in the fund to remain in the fund at the end of the year.
Further required the monies to 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 were required to be credited to the fund.
Prior law limited appropriations from the fund to annual interest earnings to the Board of
Regents for distribution to state public postsecondary education institutions and authorized
appropriations to be distributed to independent institutions of higher learning. Prior law
specified that appropriations to the Board of Regents from the fund shall not displace,
replace, or supplant funding for higher education.
Prior law established the economic damages from the Deepwater Horizon litigation as a
source of funding for the Medicaid Trust Fund for the Elderly and for the Health Trust Fund.
Prior law sunset at the conclusion of the DWH litigation or July 1, 2024, whichever is later.
New 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 existing law from excess revenues of the current fiscal year, or by an appropriation from
the state general fund.
Effective upon signature of the governor (June 25, 2019).
(Amends R.S. 39:91(B)(2), (3), and (4) and (C); Adds R.S. 39:91(B)(5) through (8) and (E)
through (T) and 1367(E)(2)(B)(vii); Repeals R.S. 39:91(E), 46:2691(A)(1)(b) and
2731(B)(2))