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Regular Session, 2013
HOUSE BILL NO. 565
BY REPRESENTATIVE PATRICK WILLIAMS
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
REVENUE DEPARTMENT: Authorizes the Department of Revenue to establish and use
an electronic financial institution data match system for purposes of tax collection
administration and enforcement
AN ACT1
To enact R.S. 47:1543.1, relative to the collection of taxes by the Department of Revenue;2
to authorize the secretary of the department to implement and use an electronic data3
matching system for use in tax administration and enforcement; to authorize4
contracts with certain financial institutions and other entities; to authorize the5
acquisition and use of certain personal account information received from a financial6
institution under certain circumstances; to provide requirements for confidentiality7
of certain information; to provide for rulemaking; to provide for an effective date;8
and to provide for related matters.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 47:1543.1 is hereby enacted to read as follows: 11
ยง1543.1. Electronic financial institution data match system12
A. The secretary may establish and use an electronic financial institution13
data match system for comparison of certain account information held by financial14
institutions with the secretary's database of tax debtors against whom an assessment15
or judgment for the tax has become final.16
B. As used herein, the following words, terms, and phrases have the meaning17
ascribed to them, except where the context indicates otherwise:18 HLS 13RS-1024 ORIGINAL
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(1) "Account" means a demand deposit account, checking or negotiable1
order of withdrawal account, savings account, time deposit account, brokerage2
account, mutual fund account, money market mutual fund account, or a life3
insurance policy with a cash surrender value. "Account" also includes an equity4
securities account if permitted under federal law. "Account" does not include an5
account to which a tax debtor does not have access due to the pledge of funds as6
security for a loan or other obligation, an account to which a financial institution has7
a present right to exercise a right of setoff, an account to which the tax debtor does8
not have an unconditional right of access, or an account that has an account holder9
of interest named as an owner on the account.10
(2) "Account holder of interest" means any person, other than the tax debtor,11
who asserts an ownership interest in an account.12
(3) "Account information" means the name, record address, social security13
number or other taxpayer identification number, other identifying data, account type,14
account number, and an average daily account balance for the most recent thirty-day15
period for each calendar quarter for each account held by the tax debtor. Except as16
provided in Paragraph (1) of this Subsection, if an account is jointly owned, the name17
and address of any account holder of interest shall be considered account18
information.19
(4) "Financial institution" or "institution" means a state or federally chartered20
bank, savings bank, savings and loan or credit union, a benefit association, insurance21
company, safe deposit company, money market mutual fund, and any other similar22
entity which is authorized to do business in the state. "Financial institution" shall23
also include an investment and loan corporation if permitted under federal law any24
broker, brokerage firm, trust company, and unit investment trust authorized to do25
business in this state.26
(5) "Electronic financial institution data match system" means a system27
established for the computerized comparison of government data to government or28 HLS 13RS-1024 ORIGINAL
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nongovernment data for use by the secretary for purposes of administering and1
enforcing the collection of taxes from a tax debtor.2
(6) "Person" means any individual, partnership, limited partnership,3
unincorporated association, joint stock company, corporation, limited liability4
company, limited liability partnership, state, city, parish, municipality, or other5
governmental subdivision.6
(7) "Secretary" means the secretary of the Department of Revenue.7
(8) "Tax debtor" means a person liable for a tax, including interest, penalties,8
and related fees, that has been reduced to a final assessment or a judgment and is9
collectable by the secretary.10
C.(1) The secretary is authorized to contract with financial institutions for11
purposes of the electronic financial institution data match system whereby the12
secretary may request assistance and information from those institutions for the13
purpose of enforcing the collection of assessments or judgments that have become14
final. The contract shall contain such provisions as the secretary and the financial15
institution deem appropriate, as well as those provisions contained in Paragraph (2)16
of this Subsection.17
(2) No more than once every calendar quarter, or as otherwise may be agreed18
to by the financial institution, the secretary may provide to the institution a list of tax19
debtors. The financial institution shall determine whether the name of any tax debtor20
contained on the secretary's list matches the name of any person maintaining an21
account at the institution. If a match is found, the tax debtor's account information22
shall be provided by the financial institution to the secretary. This shall be23
accomplished through the provision of a file or report containing account24
information on all such tax debtors maintaining an account at the institution, with25
each account holder's information listed separately. The secretary and the financial26
institution shall determine the mechanism and method by which this file or report27
shall be transmitted. An intermediary may be retained for any purpose related to28 HLS 13RS-1024 ORIGINAL
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administration of the provisions of this Section, and shall be bound by the1
confidentiality provisions contained in both this Section and R.S. 47:1508.2
D. Upon receipt of this file or report, the secretary shall match the account3
information received through the electronic financial institution data match system4
against the Department of Revenue's files of taxpayers whose tax liabilities are5
delinquent or against the files of any other persons for whom the information is6
authorized.7
E.(1) A financial institution shall not divulge or disclose any information8
contained in any request for information or other communication by the secretary,9
with the exception of authorized employee s of the institution engaged in the10
operation of the electronic financial institution data match system and authorized11
employees of the Department of Revenue. Any information furnished by the12
financial institution shall be considered and held privileged by the secretary and the13
institution to the same extent as provided in R.S. 47:1508.14
(2) Unless otherwise required by law, a financial institution furnishing a file15
or report or providing other information to the secretary shall be prohibited from16
disclosing to a depositor or an account holder that their name has been received from17
or disclosed to the secretary.18
(3) A financial institution may disclose to its depositors or account holders19
that according to the provisions of the electronic financial institution data match20
system, the secretary may request certain identifying information regarding21
depositors or account holders.22
F. A financial institution that submits a report or file to the secretary in23
accordance with this Section shall not be liable under R.S. 6:333(C) to any person24
for any disclosure of information to the secretary, nor for any other action taken in25
good faith to comply with the requirements of this Section.26
G. The procedures established herein shall be in addition to any of the27
special remedies provided in this Subtitle, the alternative remedies provided in R.S.28 HLS 13RS-1024 ORIGINAL
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47:1561, and any other legal remedy available to the secretary for the collection of1
tax indebtedness.2
H. The secretary may promulgate rules and regulations in accordance with3
the Administrative Procedure Act necessary for the administration of this Section.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)]
Patrick Williams HB No. 565
Abstract: Authorizes the Dept. of Revenue to establish and use an electronic financial
institution data match system for purposes of enforcement of tax collection from tax
debtors.
Proposed law authorizes the secretary of the Dept. of Revenue to establish and use an
electronic financial institution data match system (hereinafter "system") for comparison of
personal account information held by financial institutions with the secretary's database of
tax debtors against whom an assessment or judgment for the tax has become final.
Proposed law defines terms, including: account, account holder of interest, account
information, financial institution, electronic financial institution data match system, and tax
debtor.
Proposed law authorizes the secretary to contract with financial institutions for the purpose
of enforcing the collection of assessments and judgments that have become final. The
contract shall contain such provisions as the secretary and the financial institution deem
necessary. The contract shall also provide with respect to the transmission of information
from the secretary to the financial institution regarding the names of tax debtors, and the
transmission of information from the financial institution to the secretary regarding the
names of any account holders who match the names of the tax debtors as identified by the
secretary. Further, an intermediary may be retained for any purpose related to proposed law.
Proposed law authorizes the provision of the following data elements for account holders
matching the list of tax debtors provided by the secretary: name, record address, social
security number, taxpayer identification number, other identifying data, account type,
account number, and an average daily account balance for the most recent 30-day period for
each calendar quarter for each account held by a tax debtor.
Proposed law authorizes the secretary to use the information received from a financial
institution to match against the Dept. of Revenue files of taxpayers whose tax liabilities are
delinquent or against the files of any other persons for whom the information is authorized. HLS 13RS-1024 ORIGINAL
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Proposed law provides for confidentiality of account information and limits liability of the
financial institution with regard to the provision of data to the secretary.
Proposed law provides that the procedures established in proposed law are additional to any
other legal remedy available to the secretary for the collection of tax indebtedness.
Proposed law authorizes the promulgation of rules and regulations to implement the
provisions of proposed law.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 47:1543.1)