Page 1 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2010 ENROLLED SENATE BILL NO. 53 BY SENATORS N. GAUTREAUX AND WALSWORTH AND REPRESENTATIVES ARNOLD, BOBBY BADON, BALDONE, BARRAS, HENRY BURNS, TIM BURNS, CARMODY, CARTER, CHAMPAGNE, CORTEZ, GISCLAIR, HAZEL, HENDERSON, HI NES, HOFFMANN, HOWARD, HUTTER, JOHNSON, SAM JONES, LABRUZZO, LANDRY, LIGI, LORUSSO, MILLS, MORENO, NORTON, NOWLIN, PEARSON, PERRY, POPE, RICHARDSON, RITCHIE, SMILEY, GARY SMITH, JANE SMITH, TALBOT, TEMPLET, WHITE AND WILLMOTT AN ACT1 To amend and reenact R.S. 46:236.15(D)(1)(introductory paragraph) and (a), and to enact2 R.S. 27:2(C) and (D) and 24(A)(5), relative to support; to provide for public policy3 regarding gaming and child support; to provide for the intercept and seizure of4 payments of progressive slot machine annuities and cash gaming winnings for the5 payment of child support and overpayments to the department; to provide certain6 procedures and conditions; and to provide for related matters.7 Be it enacted by the Legislature of Louisiana:8 Section 1. R.S. 27:2(C) and (D) and 24(A)(5) are hereby enacted to read as follows:9 §2. Public policy of state concerning gaming; status of licenses, contracts, and10 permits11 * * *12 C. The legislature further finds and declares it to be the public policy of13 the state that parents should provide financial support to their minor children14 who cannot care for themselves. Thus, intervention by the state, through the15 enforcement of child support orders and the collection of child support, is in the16 best interest of its citizens and is necessary when the parents fail to meet their17 support obligations. Since children are adversely affected when parents who18 have outstanding support obligations divert their financial support to gaming,19 a parent's winnings from money diverted from a child's support should be20 applied to the parent's outstanding support obligations. The legislature further21 finds and declares that this policy is consistent with the public policy of22 protecting the general welfare of the state's people.23 ACT No. 425 SB NO. 53 ENROLLED Page 2 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. D. In accordance with this finding, the Department of Social Services1 shall report to the joint committees on Civil Law and Procedure and Judiciary2 A, no later than fifteen days following the commencement of the regular3 legislative session each year, on the interception and seizure of gaming winnings4 for the payment of child support and overpayments owed to the department.5 This report shall be a public record and shall include but not be limited to the6 number of jackpots intercepted pursuant to this Section and the amount of each7 jackpot intercepted.8 * * *9 §24. Rulemaking authority; fees and fines, collection10 A. The board, in accordance with the Administrative Procedure Act and R.S.11 27:15(B)(8), shall promulgate all rules and regulations necessary to carry out the12 provisions of this Title, including but not limited to the following:13 * * *14 (5) A procedure requiring the withholding of payments of progressive15 slot machine annuities and cash gaming winnings of persons who have16 outstanding child support arrearages or owing child support overpayments,17 prior to the payment of a progressive slot machine annuity, beginning with the18 second annuity payment, or cash gaming winnings. Progressive slot machine19 annuities or cash gaming winnings shall only include payments for which the20 entity licensed or permitted under Chapters 1, 4, 5 or 7 of Title 27 of the21 Louisiana Revised Statutes of 1950, is required to file form W2-G, or a22 substantially equivalent form, with the United States Internal Revenue Service.23 (a) The board may require that the agency reporting current child24 support arrearages or overpayments to provide information relating to such25 arrearages or overpayments in a manner, format, or record approved by the26 board that gives the entity licensed or permitted under Chapters 1, 4, 5 or 7 of27 Title 27 of the Louisiana Revised Statutes of 1950, real-time or immediate28 electronic database access to the information. If the information relating to such29 arrearages or overpayments by the agency reporting current child support30 SB NO. 53 ENROLLED Page 3 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. arrearages or overpayments is not available through real-time or immediate1 electronic database access, the licensee shall not be responsible for withholding2 cash gaming winnings in accordance with the provisions of this Subparagraph.3 (b) The board or any entity licensed or permitted under Chapters 1, 4,4 5 or 7 of Title 27 of the Louisiana Revised Statutes of 1950, including any of its5 officers, employees, attorneys, accountants, or other agents, shall not be civilly6 or criminally liable to any person, including any customer, for any disclosure7 of information made in accordance with this Section, for encumbering or8 surrendering assets in response to information provided by the Department of9 Social Services, or for any claims for damages arising from withholding or10 failing to withhold any progressive slot machine annuities or cash gaming11 winnings, based upon information provided to it.12 (c) If any entity licensed or permitted under Chapters 1, 4, 5 or 7 of Title13 27 of the Louisiana Revised Statutes of 1950, determines that the winner of a14 progressive slot machine annuity or cash gaming winnings is a person who has15 outstanding child support arrearages or owes child support overpayments, the16 entity licensed or permitted under Chapters 1, 4, 5 or 7 of Title 27 of the17 Louisiana Revised Statutes of 1950, shall deduct the child support arrearage or18 child support overpayment from the payment of the progressive slot machine19 annuity or cash gaming winnings. The deducted amount shall be forwarded to20 the Department of Social Services within seven days and the entity licensed or21 permitted under Chapters 1, 4, 5 or 7 of Title 27 of the Louisiana Revised22 Statutes of 1950, shall pay the remainder to the person who has outstanding23 child support arrearages or owes child support overpayments. If the remainder24 is equal to or less than zero, the person who has an outstanding child support25 arrearage or child support overpayment shall not receive a payment.26 (d) Any entity licensed or permitted under Chapters 1, 4, 5 or 7 of Title27 27 of the Louisiana Revised Statutes of 1950, may deduct an administrative fee28 from each payment of a progressive slot machine annuity, beginning with the29 second annuity payment, or cash gaming winnings, of persons who have30 SB NO. 53 ENROLLED Page 4 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. outstanding child support arrearages or owe child support overpayments per1 singular or periodic payment, not to exceed thirty-five dollars.2 (e) The board shall also require that the entity licensed or permitted3 under Chapters 1, 4, 5, or 7 of Title 27 of the Louisiana Revised Statutes of4 1950, adopt procedures designed to prevent employees from willfully failing to5 withhold payments of progressive slot machine annuities or cash gaming6 winnings from persons who have outstanding child support arrearages or child7 support overpayments, based upon the information provided by the8 Department of Social Services that allows the licensee to identify such persons.9 (f) Not later than January 1, 2011, the board shall institute rulemaking10 procedures as necessary to implement the provisions of this Paragraph.11 * * *12 Section 2. R.S. 46:236.15(D)(1)(introductory paragraph) and (a) is hereby amended13 and reenacted to read as follows:14 §236.15. Limited administrative authority for certain paternity and child support15 actions16 * * *17 D. Authority to seize and intercept.18 (1) In cases in which there is a child support arrearage or child support19 overpaymen t made to a custodial parent, and after notice of such arrearage or20 overpayment has been made by certified or regular mail, personal service, or21 domiciliary service, the agency shall have the administrative authority to:22 (a) Intercept, encumber, freeze, or seize periodic or lump sum payments from23 a state or local agency or any entity licensed or permitted by any state agency or24 board under Chapters 1, 4, 5, or 7 of Title 27 of the Louisiana Revised Statutes of25 1950, including but not limited to unemployment compensation benefits, workers'26 compensation, and other benefits, judgments, settlements, lottery winnings,27 progressive slot machine annuities beginning with the second annuity payment, cash28 gaming winnings, assets held in financial institutions, and public and private29 retirement funds. The provisions of R.S. 13:3881 providing general exemptions from30 SB NO. 53 ENROLLED Page 5 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. seizure are applicable to the provisions of this Subparagraph. After the agency1 encumbers, intercepts, or freezes any assets set out in this Subsection, it shall notify2 the payor that he has thirty days to advise the agency that he wishes to appeal the3 seizing of said assets. Upon receipt of such notice, the agency shall either release the4 property or schedule a hearing with the appropriate court. If the payor fails to file an5 appeal within thirty days, the agency may institute proceedings through6 administrative process to seize or sell the property in accordance with state law.7 * * *8 Section 3. This Act shall become effective upon signature by the governor or, if not9 signed by the governor, upon expiration of the time for bills to become law without signature10 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If11 vetoed by the governor and subsequently approved by the legislature, this Act shall become12 effective on the day following such approval.13 PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED: