HLS 13RS-439 ORIGINAL
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Regular Session, 2013
HOUSE BILL NO. 629
BY REPRESENTATIVES BROADWATER AND JAMES
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
REVENUE DEPARTMENT: Establishes the office of debt recovery at the Dept. of
Revenue for the collection of delinquent debts owed to certain governmental entities
AN ACT1
To amend and reenact R.S. 36:451(C) and to enact R.S. 36:458(H) and R.S. 47:1676,2
relative to collections by the Department of Revenue; to establish the office of debt3
recovery within the Department of Revenue to collect certain delinquent debts owed4
to or collected by the state; to provide for definitions; to provide for the5
administration of the collection of certain debts; to authorize the office to collect6
certain debt of political subdivisions under certain circumstances; to provide relative7
to the procedure for collection of certain debts; to provide for certain requirements8
and limitations; to authorize the collection of a fee; to provide for the establishment9
of an electronic debt registry; to provide relative to the information maintained in the10
registry; to authorize the promulgation of rules and regulations; to provide for an11
effective date; and to provide for related matters.12
Be it enacted by the Legislature of Louisiana:13
Section 1. R.S. 36:451(C) is hereby amended and reenacted and R.S. 36:458(H) is14
hereby enacted to read as follows: 15
§451. Department of Revenue; creation; domicile; composition; purposes and16
functions17
* * *18
C. The Department of Revenue shall be composed of the executive office of19
the secretary, the office of management and finance, the office of tax administration,20 HLS 13RS-439 ORIGINAL
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group I, the office of tax administration, group II, the office of tax administration,1
group III, the office of alcohol and tobacco control, the office of legal affairs, the2
office of charitable gaming, the office of debt recovery, and such other offices as3
shall be created by law. Whenever the secretary determines that the administration4
of the functions of the department may be more efficiently performed by eliminating,5
merging, or consolidating existing offices or establishing new offices, he shall6
present a plan therefor to the legislature for its approval by statute; provided that,7
whenever the secretary deems necessary, he may reassign the responsibility for the8
collection of a specific tax from one office to another office.9
* * *10
§458. Offices; purposes and functions11
* * *12
H. The office of debt recovery shall be responsible for, in accordance with13
applicable laws and under the direction of the secretary, the collection of a tax and14
may be responsible for the collection of delinquent debts, accounts, or claims due on15
behalf of other state agencies. The office of debt recovery may collect delinquent16
debts, accounts, or claims due to political subdivisions which are not statewide17
political subdivisions pursuant to a formal agreement with the Department of18
Revenue. Whenever the secretary deems necessary, he may reassign the19
responsibility for the collection of a tax, account, claims due, or other duty assigned20
by this Subsection to this office to another office within the department created by21
this Section.22
Section 2. R.S. 47:1676 is hereby enacted to read as follows: 23
§1676. Debt Recovery24
A. It shall be the public policy of this state to aggressively pursue the25
collection of accounts or claims due and payable to the state of Louisiana through all26
reasonable means. The office of debt recovery, hereinafter referred to as "office",27
within the Department of Revenue shall serve as a debt collecting entity for the state28
and in that capacity shall collect delinquent debts on behalf of all state agencies29 HLS 13RS-439 ORIGINAL
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which refer delinquent debt to the office for collection. All debts owed to the state1
shall be referred to either the Attorney General's office or to the office of debt2
recovery for collection. However, all state agencies which do not have a contract3
with the Attorney General's office for debt collection on or before January 1, 2013,4
shall refer all delinquent debts to the office for collection when the debt has been5
delinquent for sixty days. All agencies which do not have collection contracts with6
the Attorney General's office shall begin to refer delinquent debts to the office no7
later than January 1, 2014.8
B. For purposes of this Section, the following words shall have the following9
meanings unless the context clearly indicates otherwise:10
(1) "Agency" means any state office, department, board, commission,11
institution, division officer or other person, or functional group, existing or created,12
that is authorized to exercise, or that does exercise, any function of state government13
in the executive branch, but does not mean any governing body or officer of any14
local government or subdivision of the state, or any parochial officer who exercises15
functions coterminous with the municipality in which he performs those functions.16
(2) "Authenticated" means that the referring agency has certified the amount17
of the delinquent debt, the debtor's liability, the debtor's name, address, telephone18
number, and social security number.19
(3) "Debt" means any legally collectible liquidated sum due and owing an20
agency, or due and owing a person and collectible by any agency, or a judgment,21
order of the court, or bond forfeiture which is properly certified by the clerk and22
which orders the payment of a fine or other court-ordered penalty. The legally23
collectible and liquidated sum due includes principal and accruing interest, fees, and24
penalties, if appropriate.25
(4) "Department" means the Louisiana Department of Revenue.26
(5) "Delinquent debt" means a debt that is sixty days or more past due.27
(6) "Final" means the amount due is no longer negotiable and that the debtor28
has no further right of administrative or judicial review.29 HLS 13RS-439 ORIGINAL
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(7) "Office" means the office of debt recovery within the Department of1
Revenue.2
(8) "Secretary" means the secretary of the Department of Revenue.3
C.(1) Notwithstanding any other provision of law to the contrary, in addition4
to any duties, powers, or responsibilities otherwise conferred, the secretary of the5
Department of Revenue, through the office of debt recovery, shall collect and6
enforce certain delinquent debts due to state agencies according to rules promulgated7
by the department.8
(2)(a) No later than January 1, 2014, state agencies which do not have9
collection contracts with the attorney general's office for the collection of delinquent10
debts shall refer all delinquent debts to the office as provided by rule. Such referrals11
shall include data and information in the required format necessary to institute12
collection procedures. All debts must be final and authenticated by the state agency13
prior to being referred to either the office or to the attorney general's office.14
(b) After transferring the debt to the office for collection, the referring state15
agency or political subdivision shall terminate all collection activities with respect16
to that debt except to provide assistance to the office as may be requested. The17
department shall notify the debtor by letter, within fifteen days of receiving the18
referral, that such debt has been referred to the office for collection. Upon receipt19
of the debt referral, the office shall assume all liability for its actions without20
recourse to the agency or political subdivision and shall comply with all applicable21
state and federal laws governing the collection of the debt. For purposes of this22
Section, the office shall not be considered a collection agency as defined in R.S.23
9:3534.1.24
(3) The office may collect delinquent debts owed to political subdivisions25
which are not statewide political subdivisions, pursuant to a formal agreement with26
the department.27 HLS 13RS-439 ORIGINAL
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(4) At the discretion of the secretary, the department may contract with the1
attorney general's office or a third-party collection contractor for the collection of2
delinquent debt on behalf of the office.3
D.(1) Notwithstanding any other provision of law to the contrary, the4
secretary of the Department of Revenue may treat a delinquent debt referral in the5
same manner as an assessment that has become final without restriction or delay.6
The secretary, through the office, may use any collection remedy provided by state7
law to facilitate the collection of taxes to collect the delinquent debt. The office may8
use a participating agency's or political subdivision's statutory collection authority9
to collect the participating agency's delinquent debts owed to or being collected by10
the state. The office may also use authority granted in R.S. 47:299.3 regarding offset11
from income tax refunds or other accounts payable by the state for any delinquent12
debt transferred by state agencies and agencies of political subdivisions. The13
secretary has the discretion to determine which method or combination thereof is14
most suitable to collect the delinquent debt.15
(2) The office may exercise the same authority granted in R.S. 46:236.1.416
and may assume the obligation for the payment of such services in order to collect17
delinquent debt. No financial institution, including directors, officers, employees,18
attorneys, accountants, or other agents, which provides information to the office shall19
be liable civilly or criminally for the disclosure of such information pursuant to the20
provisions of this Section.21
E. The office shall charge the debtor a fee not to exceed twenty-five percent22
of the total liability of the delinquent debt. Fees collected under this Subsection shall23
be retained by the office after the debt is collected. The office shall transfer any24
monies collected from a debtor to the referring agency within thirty days after the25
end of the month in which the monies were collected. Money received by the26
secretary from the fees imposed pursuant to this Section are designated self-27
generated revenues of the department.28 HLS 13RS-439 ORIGINAL
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F. Notwithstanding any law to the contrary, state agencies shall be1
authorized to transmit data to the office of debt recovery deemed necessary by the2
secretary to aid in the collection efforts of the office. The secretary shall establish3
a centralized electronic debt registry to compile the information provided by state4
agencies and participating political subdivisions and shall maintain all information5
provided from all sources within the state concerning addresses, financial records,6
and any other information useful in assisting the office in collection services of the7
centralized registry. The data compiled in the registry from the department, referring8
agencies, and the office shall be available for cross-referencing and for the9
identification of debtors necessary for the collection of delinquent debt. However,10
all data, records and files utilized for debt collection as provided herein shall be11
deemed confidential and privileged, and no person shall divulge or disclose any12
information obtained from such records and files except in the administration and13
enforcement of these provisions.14
G. The secretary shall promulgate rules and regulations in accordance with15
the Administrative Procedure Act to implement the provisions of this Section,16
including rules authorizing any reasonable procedure or requirement for agencies17
or political subdivisions referring delinquent debt to the department for collection18
and any requirements regarding information necessary to collect the debt and the19
formatting of that information. Any rule promulgated by the department shall be20
construed in favor of the secretary.21
H. Reciprocal debt collection agreement with federal government. The22
secretary may enter into a reciprocal collection and offset of indebtedness agreement23
with the federal government, pursuant to which the state shall agree to offset from24
state tax refunds and payments otherwise due to vendors and contractors providing25
goods or services to state agencies, non-tax debt owed to the federal government, and26
the federal government shall agree to offset from federal payments to vendors,27
contractors and taxpayers debt owed to the state.28 HLS 13RS-439 ORIGINAL
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Section 3. This Act shall become effective upon signature by the governor or, if not1
signed by the governor, upon expiration of the time for bills to become law without signature2
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If3
vetoed by the governor and subsequently approved by the legislature, this Act shall become4
effective on the day following such approval.5
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)]
Broadwater HB No. 629
Abstract: Establishes the office of debt recovery within the Dept. of Revenue which shall
aid in the collection of delinquent debts on behalf of state agencies which do not
have debt collection contracts with the attorney general's office.
Present law provides for the establishment and organization of the Department of Revenue
(DOR) and all of the offices that are part of the department.
Proposed law retains present law and adds the office of debt recovery within DOR which
shall be responsible for the collection of tax payable to DOR and may be responsible for the
collection of delinquent debts, accounts, or claims due on behalf of all other state agencies.
Proposed law authorizes the Dept. of Revenue (DOR), office of debt recovery, hereinafter
"office", to serve as a debt collecting entity for the state for the collection of delinquent debts
on behalf of all state agencies which refer delinquent debt to the office for collection.
Proposed law requires all debts owed to the state to be referred to either the attorney
general's office or to the office of debt recovery for collection. However, all state agencies
which do not have a contract with the attorney general's office for debt collection on or
before Jan. 1, 2013, shall refer all delinquent debts to the office for collection when the debt
has been delinquent for 60 days. All agencies which do not have collection contracts with
the attorney general's office shall begin to refer delinquent debts to the office no later than
Jan. 1, 2014. 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 either the office or the attorney general. Further requires the office 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 the office to collect delinquent debts owed to political subdivisions
which are not statewide political subdivisions pursuant to a formal agreement with the
department. HLS 13RS-439 ORIGINAL
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Proposed law authorizes the secretary to contract with the Attorney General's office or a
third-party collection contractor for the collection of delinquent debt on behalf of the office.
Proposed law authorizes the office to use a participating agency's or political subdivision's
statutory collection authority to collect delinquent debts. The office 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.
Proposed law additionally authorizes the office to exercise the same authority granted in
present law and to assume the obligation for the payment of such services in order to collect
delinquent debt. No financial institution, including directors, officers, employees, or other
agents, which provides information to the office shall be liable civilly or criminally for the
disclosure of such information.
Proposed law requires the department to charge the debtor a fee not to exceed 25% of the
of the total delinquent debt liability. Fees collected according to the provisions of proposed
law shall be retained by the office 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 authorizes state agencies to transmit data to the office deemed necessary to aid
in the collection efforts of the office. Requires the secretary to establish and maintain
centralized electronic debt registry to compile the information provided by state agencies
and participating political subdivisions. The data compiled in the registry shall be available
for cross-referencing and for the identification of debtors necessary for the collection of
delinquent debt; however, all data, records and files utilized for debt collection shall be
deemed confidential and privileged, and no person shall divulge or disclose any information
obtained from such records and files except in the administration and enforcement of these
provisions.
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.
(Amends R.S. 36: 36:451(C); Adds R.S. 36:458(H) and R.S. 47:1676)