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Regular Session, 2010 ENROLLED
SENATE BILL NO. 130
BY SENATOR MORRELL
AN ACT1
To enact R.S. 46:236.1.5(D) and Chapter 13-B of Title 51 of the Louisiana Revised Statutes2
of 1950, to be comprised of R.S. 51:1441 through 1448, relative to child support; to3
provide relative to the collection of child support through private party child support4
collection agencies; to provide for definitions; to provide for the regulation of5
services of private party child support collection agencies; to provide relative to6
prohibited practices and penalties; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 46:236.1.5(D) is hereby enacted to read as follows: 9
§236.1.5. Family and child support programs; FITAP; other service recipients;10
rights; responsibilities11
* * *12
D. No applicant or recipient who has accepted FITAP for or on behalf13
of himself or another individual shall be permitted to enter into a contract for14
the collection of support pursuant to R.S. 51:1441 et seq. Any such contract15
shall be considered a violation of public policy and shall be void. 16
Section 2. Chapter 13 -B of Title 51 of the Louisiana Revised Statutes of 1950,17
comprised of R.S. 51:1441 through 1448, is hereby enacted to read as follows:18
CHAPTER 13-B. LOUISIANA CHILD SUPPORT19
COLLECTION PROTECTION ACT20
ACT No. 872 SB NO. 130 ENROLLED
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§1441. Short title1
This Chapter shall be known and may be cited as the "Louisiana Child2
Support Collection Protection Act".3
§1442. Definitions4
As used in this Chapter, the following words and phrases shall have the5
following meanings:6
(1) "Arrears" or "arrearages" means amounts of past due and unpaid7
monthly support obligations established by a court order issued by any court8
of this state or another state, including any judgment or order issued in9
accordance with an administrative procedure established by state law that10
affords substantial due process and is subject to judicial review, or any other11
judgment created by operation of any state law.12
(2) "Child support" means any amount required to be paid pursuant to13
a court order issued by any court of this state or another state, including any14
judgment or order issued in accordance with an administrative procedure15
established by state law that affords substantial due process and is subject to16
judicial review.17
(3) "Contract" means a contract or agreement, as described in R.S.18
51:1444, pursuant to which a private child support collection agency agrees to19
perform support enforcement services for an obligee for a fee or other20
compensation.21
(4) "Department" means the Department of Social Services, office of22
family support, support enforcement services.23
(5) "FITAP" means Family Independence Temporary Assistance24
Program.25
(6) "Obligee" means an individual who is owed child support under a26
child support order and who has entered or may enter into a contract with a27
collection agency.28
(7) "Obligor" means a resident of this state required to pay child29
support in accordance with an order of support issued by a court or other30 SB NO. 130 ENROLLED
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tribunal.1
(8) "Order of support" or "child support order" means any judgment2
or order for the support of dependent children issued by any court of this state3
or another state, including any judgment or order issued in accordance with an4
administrative procedure established by state law that affords substantial due5
process and is subject to judicial review.6
(9)(a) "Private child support collection agency" or "collection agency"7
means an individual or nongovernmental entity that solicits and contracts8
directly with obligees to provide child support collection services for9
compensation.10
(b) For the purposes of this chapter, the following persons or entities are11
not considered a private child support collection agency:12
(i) The department or any government agency providing services in13
accordance with Title IV-D of the Social Security Act and corresponding state14
laws and regulations;15
(ii) An attorney duly licensed to practice law in the state of Louisiana if16
he is not employed by a private child support collection agency or does not17
derive a substantial portion of business from the collection or enforcement of18
child support. As used in this Section, "substantial" means that at least fifty19
percent of the attorney's business, either in terms of remuneration or time20
spent, is comprised of the activity of seeking to collect or enforce child support21
obligations.22
(iii) A collection agency that performs support enforcement services23
while under contract with the department to provide such services in24
accordance with Title IV-D of the Social Security Act and corresponding state25
laws and regulations.26
(iv) A public officer, judicial officer, receiver, or trustee acting in27
accordance with a court order.28
(10) "Support services" and "support enforcement services" means:29
(a) Any action taken by the department, upon receipt of an application30 SB NO. 130 ENROLLED
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or referral for services or a request made under the Uniform Interstate Family1
Support Act, in accordance with the federal requirements of Title IV-D of the2
Social Security Act and corresponding state laws and regulations without3
regard to whether there is any existing court order, delinquency, or4
presumption of paternity.5
(b) A service, including related financial accounting services, performed6
directly or indirectly for the purpose of causing a payment required, or7
allegedly required, by an order of support to be made to the obligee or to an8
agent of that individual.9
§1443. Registration10
Any private child support collection agency providing support11
enforcement services to an obligee who is a resident of this state or collecting12
any child support or arrearages from an obligor shall comply with the13
following:14
(1) Register with the secretary of state and provide information as15
requested, including the name of the private child support collection agency, the16
office address, and the registered agent in this state on whom service of process17
is to be made.18
(2) Submit to the state treasurer not later than 4:30 p.m. on the fifth19
business day after registering with the secretary of state all of the following:20
(a) A surety bond filed, held, and approved by the state treasurer. The21
surety bond shall be issued by a surety authorized to do business in this state in22
the amount of fifty thousand dollars in favor of the state for the benefit of a23
person damaged by a violation of this Chapter, and conditioned on the private24
child support collection agency's compliance with this Chapter and the faithful25
performance of the obligations under the private child support collection26
agency's agreements with its clients.27
(b) A deposit of money in the amount of fifty thousand dollars may be28
made in lieu of the surety bond. The state treasurer shall deposit any amounts29
received under this Chapter in an insured depository account.30 SB NO. 130 ENROLLED
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§1444. Contracts between obligees and private child support collection1
agencies; contents; provisions2
A. Any contract for the collection of child support between a private3
child support collection agency and an obligee shall be in writing, in at least4
ten-point font or the equivalent, and dated and signed by the obligee and an5
authorized representative of the collection agency. The contract shall be6
delivered to the obligee in paper form. The contract shall include all of the7
following:8
(1) A clear description of the child support enforcement services that9
may be provided.10
(2) An explanation of the amount to be collected from the obligor and11
a statement of a sum certain of the total amount that is to be collected.12
(3) An explanation in dollar figures of the maximum amount of fees13
which may be collected under the contract and an example of how the fees are14
calculated and deducted.15
(4) A statement that fees shall be charged only for collecting past due16
child support, even if the contract includes provisions to collect current and past17
due child support.18
(5) A statement that a private child support collection agency shall not19
retain fees from collections that are primarily attributable to the actions of the20
department and the collection agency shall be required to refund any21
improperly retained fee.22
(6) An explanation of the opportunities available to the obligee or23
private child support collection agency to cancel the contract or other24
conditions under which the contract terminates.25
(7) The mailing address, street address, telephone numbers, facsimile26
numbers, and Internet address or location of the collection agency and any27
agents who assist the collection agency.28
(8) A statement that the private child support collection agency shall29
collect only money owed to the obligee and not child support assigned to the30 SB NO. 130 ENROLLED
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state of Louisiana.1
(9) A statement that the private child support collection agency is not a2
government agency and is not affiliated with any government agency and that3
the department provides support enforcement services at little or no cost to the4
obligee.5
(10) A statement that the obligee may continue to receive or pursue6
support enforcement services through the department and the collection agency7
may not prohibit this in any way.8
(11) A provision that the collection agency cannot alienate, encumber,9
sell or assign any rights to the contract to a third party. This shall include using10
the contract as collateral to secure any debt owed by the collection agency to a11
third party.12
(12) A copy of any other document the collection agency requires the13
obligee to sign.14
(13) A notice that the collection agency is required to keep and maintain15
case records for a period of two years after the termination of the contract and16
may thereafter destroy or otherwise dispose of the records. The obligee may,17
prior to destruction or disposal, retrieve his entire record.18
(14) The expected duration of the contract, stated as a length of time or19
as an amount to be collected.20
B. A private child support enforcement service contract shall not include21
any of the following:22
(1) A requirement that the obligee waive the right to pursue any civil or23
criminal matter, agree to resolve disputes in a jurisdiction other than the24
obligee's, or agree to the application of laws other than those of the residence25
of the obligee. Any waiver, including an agreement to arbitrate or a choice of26
forum or law, required as a condition of doing business with the collection27
agency shall be presumed against public policy and unenforceable.28
(2) A clause that requires the obligee to change the payee or redirect29
child support payments that would otherwise be payable to the obligee, the30 SB NO. 130 ENROLLED
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department or other agency administering a state plan approved under Title1
IV-D of the Social Security Act and corresponding state laws and regulations,2
or a state disbursement unit, if payment is ordered to be made through a state3
disbursement unit.4
(3) A requirement that the obligee not pursue a child support case with5
the department or other agency administering a state plan approved under Title6
IV-D of the Social Security Act and corresponding state laws and regulations.7
(4) A requirement that the obligee waive his right to review and consent8
to any modification of the contract.9
(5) A prohibition against termination of the contract for the collection10
of child support payments until the arrears are paid.11
(6) A requirement that the obligee waive his right to accept a settlement12
offer.13
C. A private child support enforcement contract may not be modified14
by subsequent agreement unless the obligee has signed the subsequent15
agreement after receiving a written copy of the modifications.16
D. The provisions of this Subsection shall be attached to the contract as17
an addendum, in at least ten-point font, and be signed and dated by the obligee.18
In addition to any other cancellation or termination provisions provided in the19
contract, it shall be cancelled or terminated if any of the following:20
(1) The obligee requests cancellation in writing within thirty days of21
signing the contract.22
(2) No payment of child support has been collected by such debt23
collection agency for a period of six consecutive months.24
(3) The collection agency breaches any term of the contract or violates25
any provision contained in this Chapter.26
(4) The contract term has expired or the contract amount has been27
collected, whichever occurs first.28
§1445. Duties of private child support collection agencies29
A. A private child support collection agency shall comply with all of the30 SB NO. 130 ENROLLED
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following:1
(1) Enter into a written contract with the obligee, as provided in R.S.2
51:1444, before providing support enforcement services.3
(2) Have an affirmative duty to act as a trustee and fiduciary for the4
benefit of the obligee.5
(3) Advise an obligee before entering into a contract that he is not6
obligated to hire a collection agency to collect child support.7
(4) Provide the obligee and the department, when the department is8
providing support enforcement services, with an accounting of any money9
collected and forwarded to the obligee every thirty days until the collection10
agency ceases all collection activity. The statement shall be sent by first class11
mail. The statement shall contain all of the following information:12
(a) The name of the obligor and any other identifying information.13
(b) The amount of support collected.14
(c) The date each amount was received.15
(d) The date each amount received was forwarded to the obligee.16
(e) The amount of each payment forwarded to the obligee.17
(f) The source of payment and the actions taken by the collection agency18
which resulted in the payment.19
(g) The amount and percentage of each payment retained by the20
collection agency as its fee.21
(h) A copy of all correspondence, both paper and electronic, sent or22
received by the collection agency during the preceding thirty days, excluding23
correspondence required by law to be kept confidential.24
(5) Forward that portion of the collections due to the obligee within two25
days of receipt.26
(6) Maintain records of all child support collections made on behalf of27
an obligee for the duration of the contract plus a period of two years after the28
termination of the contract. In addition to a copy of the contract, the collection29
agency shall maintain all of the following:30 SB NO. 130 ENROLLED
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(a) A copy of the order establishing the child support obligation under1
which a collection was made by the collection agency.2
(b) Records of all correspondence between the collection agency and the3
obligee or obligor in a case.4
(c) Any other pertinent information relating to the child support5
obligation, including any case, cause, or docket number of the court having6
jurisdiction over the matter and official government payment records obtained7
by the collection agency on behalf of and at the request of the obligee.8
(7) Safeguard case records in a manner reasonably expected to prevent9
the disclosure of information pertaining to the obligee or obligor, including10
protections for records maintained in an automated system.11
(8) Ensure that every person who contracts with a collection agency has12
the right to obtain copies of all files and documents, both paper and electronic,13
in the possession of the collection agency as provided in this Paragraph. The14
obligee shall be provided reasonable access during regular business hours to15
originals and copies of the files and records of the collection agency regarding16
all monies received, collection attempts made, fees retained or paid to the17
collection agency, and monies disbursed to the obligee. The collection agency18
may not charge a fee for access to the files and records but may require the19
obligee to pay up to three cents per page for the copies prior to their release.20
This fee shall not apply to documents sent with a statement pursuant to21
Paragraph (4) of this Subsection.22
(9) Convey any offer of settlement or compromise made by the obligor23
to the obligee in writing.24
(10) Maintain a separate bank account for child support funds collected25
on behalf of obligees and keep such funds in the bank account until disbursed26
to the appropriate obligee.27
(B.) Notwithstanding any other provision of this Chapter, including28
provisions establishing a right of cancellation and requiring notice thereof, any29
attorney contracting with an obligee to provide child support collection services30 SB NO. 130 ENROLLED
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for compensation shall comply with all provisions governing attorney conduct.1
§1446. Provision of support enforcement services by a private child support2
collection agency; prerequisites3
A. Before commencing support enforcement services, a private child4
support collection agency shall obtain from the obligee all of the following:5
(1) A certified copy of the order of support.6
(2) A statement executed by the obligee under oath containing the7
arrears balance and the dates during which the arrears balance accrued.8
(3) Any judgments in existence at the time the contract is signed by the9
obligee setting the arrears owed.10
(4) A statement executed by the obligee under oath stating that the11
obligee is not receiving FITAP for, or on behalf of, himself or another12
individual.13
B. In addition to Subsection A of this Section, before commencing14
support enforcement services, the collection agency shall send the obligor a15
written notice no later than five days after the obligee and collection agency sign16
a contract. The notice shall include all of the following:17
(1) The name of the obligee.18
(2) A statement of the amount of the child support arrears, including19
any associated interest, late payment fee, or other charge authorized by law, and20
the current child support owed by the obligor.21
(3) A statement that the collection agency assumes that the obligor owes22
child support or arrears to the obligee and that the amounts owed as described23
in the statement are correct, unless the obligor disputes the existence or amount24
of the child support obligation within thirty days after receipt of the notice.25
(4) A statement that if the obligor provides written notice to the26
collection agency within the time period provided in Paragraph (3) of this27
Subsection, disputing the existence or amount of the child support obligation or28
arrears, the collection agency shall cease efforts to collect the support until it29
obtains and mails to the obligor written verification of the existence or amount30 SB NO. 130 ENROLLED
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of the obligation.1
(5) A statement that the arrears balance reflected does not include any2
amounts owed to the department or any other state agency administering a state3
plan approved under Title IV-D of the Federal Social Security Act, as amended.4
C. A statement in accordance with Paragraph( B)(4) of this Section shall5
not affect the enforceability of a valid income-withholding order or assignment6
issued by the department or any other state agency administering a state plan7
approved under Title IV-D of the Federal Social Security Act, as amended.8
D. The failure of an obligor to dispute the amount or existence of child9
support or arrears shall not be construed as an admission of liability by the10
obligor.11
§1447. Prohibited acts12
A private child support collection agency providing support enforcement13
services to an obligee in this state or collecting support or arrears from an14
obligor shall not engage in any act which violates any provision of the Fair Debt15
Collection Practices Act, 15 U.S.C. 1692 et seq., or the Federal Trade16
Commission Act, 15 U.S.C. 42 et seq.17
§1448. Civil penalties18
A. When a private child support collection agency is found by a court19
to have violated the provisions of R.S. 51:1443, the court shall award to the state20
a civil penalty not to exceed ten thousand dollars.21
B. A collection agency found by a court to have violated any of the22
provisions of R.S. 51:1444 through 1447 shall be ordered to pay to the plaintiff23
a civil penalty not to exceed five thousand dollars per violation and reasonable24
attorney fees, expenses, and court costs.25
C. The civil penalties provided in this Section shall be cumulative to26
each other and any other provision of law.27
Section 3. This Act shall become effective upon signature by the governor28
or, if not signed by the governor, upon expiration of the time for bills to become law29
without signature by the governor, as provided by Article III, Section 18 of the30 SB NO. 130 ENROLLED
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Constitution of Louisiana. If vetoed by the governor and subsequently approved by1
the legislature, this Act shall become effective on the day following such approval.2
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: