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Regular Session, 2010
HOUSE BILL NO. 1019
BY REPRESENTATIVES GREENE, FANNIN, HENRY, HOFFMANN, AND JANE
SMITH
REVENUE DEPARTMENT: Establishes the La. Debt Recovery Program at the Dept. of
Revenue for the collection of delinquent debts owed to certain governmental entities
AN ACT1
To enact R.S. 47:1676, relative to collections by the Department of Revenue; to establish the2
Louisiana Debt Recovery Program in the Department of Revenue to collect certain3
delinquent debts owed to or collected by the state; to provide for definitions; to4
provide for the administration of the program; to authorize political subdivisions to5
participate in the program under certain circumstances; to provide relative to the6
procedure for collection of certain debts; to provide for certain requirements and7
limitations; to authorize the collection of a fee; to authorize the secretary of the8
department to establish an electronic debt registry; to authorize the promulgation of9
rules and regulations; to provide for an effective date; and to provide for related10
matters.11
Be it enacted by the Legislature of Louisiana:12
Section 1. R.S. 47:1676 is hereby enacted to read as follows: 13
§1676. Louisiana Debt Recovery Program14
A. It shall be the public policy of this state to aggressively pursue the15
collection of accounts or claims due and payable to the state of Louisiana through all16
reasonable means. The Louisiana Debt Recovery Program, hereinafter referred to17
as "program", of the Department of Revenue shall serve as the primary debt18
collecting entity for the state and in that capacity shall collect delinquent debts on19 HLS 10RS-1592 REENGROSSED
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behalf of all state agencies. All debts owed the state shall be referred to the program1
when delinquent for more than sixty days.2
B. For purposes of this Section, the following words shall have the following3
meanings unless the context clearly indicates otherwise:4
(1) "Agency" means any state office, department, board, commission,5
institution, division officer or other person, or functional group, existing or created,6
that is authorized to exercise, or that does exercise, any function of state government7
in the executive branch, but does not mean any governing body or officer of any8
local government or subdivision of the state, or any parochial officer who exercises9
functions coterminous with the municipality in which he performs those functions.10
(2) "Authenticated" means that the referring agency has certified the amount11
of the delinquent debt, the debtor's liability, the debtor's name, address, telephone12
number, and social security number.13
(3) "Debt" means any legally collectible liquidated sum due and owing an14
agency, or due and owing a person and collectible by any agency, or a judgment,15
order of the court, or bond forfeiture which is properly certified by the clerk and16
which orders the payment of a fine or other court-ordered penalty. The legally17
collectible and liquidated sum due includes principal and accruing interest, fees, and18
penalties, if appropriate.19
(4) "Department" means the Louisiana Department of Revenue.20
(5) "Delinquent debt" means a debt that is more than sixty days past due.21
(6) "Final" means the amount due is no longer negotiable and that the debtor22
has no further right of administrative or judicial review.23
(7) "Secretary" means the secretary of the Department of Revenue.24
C.(1) Notwithstanding any other provision of law to the contrary, in addition25
to any duties, powers, or responsibilities otherwise conferred, the secretary of the26
Department of Revenue shall collect and enforce certain delinquent debts due to state27
agencies according to rules promulgated by the department.28 HLS 10RS-1592 REENGROSSED
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(2)(a) State agencies shall refer delinquent debts which are due the state to1
the secretary as provided by rule. Such referrals shall include data and information2
in the required format necessary to institute collection procedures. All debts must3
be final and authenticated by the state agency prior to being referred to the secretary.4
(b) After transferring the debt to the department for collection, the referring5
state agency or political subdivision shall terminate all collection activities with6
respect to that debt except to provide assistance to the department as may be7
requested. The department shall notify the debtor by letter, within fifteen days of8
receiving the referral, that such debt has been referred to the department for9
collection. Upon receipt of the debt referral, the department shall assume all liability10
for its actions without recourse to the agency or political subdivision and shall11
comply with all applicable state and federal laws governing the collection of the12
debt. For purposes of this Section, the department shall not be considered a13
collection agency as defined in R.S. 9:3534.1.14
(3) Political subdivisions which are not statewide political subdivisions may15
participate in the Louisiana Debt Recovery Program pursuant to a formal agreement16
with the department.17
D. Notwithstanding any other provision of law to the contrary, the secretary18
may treat a delinquent debt referral in the same manner as an assessment that has19
become final without restriction or delay. The secretary may use any collection20
remedy provided by state law to facilitate the collection of taxes to collect the21
delinquent debt. The department may use a participating agency's or political22
subdivision's statutory collection authority to collect the participating agency's23
delinquent debts owed to or being collected by the state. The department may also24
use authority granted in R.S. 47:299.3 regarding offset from income tax refunds or25
other accounts payable by the state for any delinquent debt transferred by state26
agencies and agencies of political subdivisions. The secretary has the discretion to27
determine which method or combination thereof is most suitable to collect the28
delinquent debt.29 HLS 10RS-1592 REENGROSSED
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E. The department shall charge the debtor a fee not to exceed twenty-five1
percent of any monies the department collects for an agency. Notwithstanding any2
other law concerning delinquent debts, the twenty-five percent fee shall be added to3
the amount due to the state when the collection is made. Fees collected under this4
Subsection shall be retained by the department after the debt is collected. The5
department shall transfer any monies collected from a debtor to the referring agency6
within thirty days after the end of the month in which the monies were collected.7
Money received by the secretary from the fees imposed pursuant to this Section are8
designated self-generated revenues of the department.9
F. The secretary shall establish a centralized electronic debt registry to10
compile the information provided by state agencies and participating political11
subdivisions and shall maintain all information provided from all sources within the12
state concerning addresses, financial records, and any other information useful in13
assisting the department in collection services in the centralized registry.14
Notwithstanding any other provision of law to the contrary, the data compiled in this15
registry from the referring agencies and the department shall be available for cross-16
referencing and for the identification of debtors necessary for the collection of the17
delinquent debt. For purposes of this Subsection, the provisions of R.S. 47:150818
shall be inapplicable.19
G. The secretary shall promulgate rules and regulations in accordance with20
the Administrative Procedure Act to implement the provisions of this Section,21
including rules authorizing any reasonable procedure or requirement for agencies22
or political subdivisions referring delinquent debt to the department for collection23
and any requirements regarding information necessary to collect the debt and the24
formatting of that information. Any rule promulgated by the department shall be25
construed in favor of the secretary.26
H. Reciprocal debt collection agreement with federal government. The27
secretary may enter into a reciprocal collection and offset of indebtedness agreement28
with the federal government, pursuant to which the state shall agree to offset from29 HLS 10RS-1592 REENGROSSED
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state tax refunds and payments otherwise due to vendors and contractors providing1
goods or services to state agencies, non-tax debt owed to the federal government, and2
the federal government shall agree to offset from federal payments to vendors,3
contractors and taxpayers debt owed to the state.4
Section 2. This Act shall become effective upon signature by the governor or, if not5
signed by the governor, upon expiration of the time for bills to become law without signature6
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If7
vetoed by the governor and subsequently approved by the legislature, this Act shall become8
effective on the day following such approval.9
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)]
Greene HB No. 1019
Abstract: Establishes the La. Debt Recovery Program whereby the Dept. of Revenue will
serve as the primary debt collecting entity for the state for the collection of
delinquent debts on behalf of all state agencies.
Proposed law establishes the La. Debt Recovery Program, hereinafter "program", which
authorizes the Dept. of Revenue (DOR) to serve as the primary debt collecting entity for the
state for the collection of delinquent debts on behalf of all state agencies.
Proposed law requires all debts owed to the state to be referred to the program when
delinquent for more than 60 days. Defines "debt" as any legally collectible, liquidated sum
due and owing an agency, or due and owing a person and collectible by any agency, or a
judgment, order of the court, or bond forfeiture which is properly certified by the clerk and
which orders the payment of a fine or other court ordered penalty. Further provides that the
legally collectible and liquidated sum due includes principle and accruing interest, fees, and
penalties, if appropriate.
Proposed law requires that all debts be final and authenticated by the state agency prior to
being referred to the program. Further requires the department to comply with all state and
federal law applicable to the collection of the debt and for the state to assume all liability for
its actions without recourse to the agency or political subdivision owed the debt.
Proposed law permits political subdivisions which are not statewide political subdivisions
to participate in the program pursuant to a formal agreement with the department.
Proposed law authorizes the department to use a participating agency's or political
subdivision's statutory collection authority to collect delinquent debts. The department may
also use authority granted in present law regarding offset from income tax refunds or other
accounts payable by the state for any delinquent debt transferred by state agencies or
political subdivisions. Grants the secretary discretion to determine which collection method
or combination of methods is most suitable to collect the delinquent debt. HLS 10RS-1592 REENGROSSED
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Proposed law requires the department to charge the debtor a fee not to exceed 25% of any
monies the department collects for an agency. Further provides that the 25% fee shall be
added to the amount due to the state when the collection is made. Fees collected according
to the provisions of proposed law shall be retained by the department after the debt is
collected. Requires DOR to transfer any monies collected from a debtor to the referring
agency within 30 days after the end of the month in which the collection was made.
Proposed law provides that money received by the secretary from the fees imposed pursuant
to proposed law shall be designated self-generated revenues of the department.
Proposed law requires the department to establish a centralized electronic debt registry to
compile the information provided by state agencies and participating political subdivisions
and to maintain all information provided from all sources concerning addresses, financial
records, and any other information useful in assisting the department in collection services
in the centralized registry. Further provides that the data compiled in the registry from
referring agencies, and the department shall be available for cross-referencing and
identifying debtors necessary for collecting delinquent debts.
Proposed law requires the department to promulgate rules and regulations in accordance with
the APA to implement the provisions of proposed law. Further provides that any rule
promulgated by the department shall be construed in favor of the secretary.
Proposed law authorizes the secretary to enter into reciprocal collection and offset of
indebtedness agreements with the federal government.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 47:1676)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Ways and Means to the
original bill.
1. Expanded the definition of "agency" and "debt" and added definitions for
"authenticated" and "final".
2. Deleted authority for the secretary to assign a debt to a collection contractor or
to any other private collection agency for collection.
3. Changed authority of the secretary to treat a delinquent debt referral in the same
manner as a final assessment without restriction or delay from mandatory to
permissive.
4. Authorized the secretary to use any collection remedy provided in present law
to collect the delinquent debt and granted the secretary discretion to determine
which collection methods are suitable to collect the delinquent debt.
5. Added designation that the money received from the fees imposed by proposed
law shall be considered self-generated revenues of the department.
6. Added provision that the data compiled in the registry shall be available for
cross-referencing and identifying debtors who owe delinquent debts.
7. Deleted provision whereby the debt recovery program established in proposed
law would not be available to state agencies unless the department received
appropriations to design, implement, and operate the centralized electronic debt
recovery registry.