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Regular Session, 2013
HOUSE BILL NO. 629
BY REPRESENTATIVES BROADWATER, BARRAS, BURFORD, GUI LLORY,
HAZEL, HOFFMANN, JAMES, STOKES, THOMPSON, WHI TNEY, AND
PATRICK WILLIAMS
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
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C. The Department of Revenue shall be composed of the executive office of1
the secretary, the office of management and finance, the office of tax administration,2
group I, the office of tax administration, group II, the office of tax administration,3
group III, the office of alcohol and tobacco control, the office of legal affairs, the4
office of charitable gaming, the office of debt recovery, and such other offices as5
shall be created by law. Whenever the secretary determines that the administration6
of the functions of the department may be more efficiently performed by eliminating,7
merging, or consolidating existing offices or establishing new offices, he shall8
present a plan therefor to the legislature for its approval by statute; provided that,9
whenever the secretary deems necessary, he may reassign the responsibility for the10
collection of a specific tax from one office to another office.11
* * *12
§458. Offices; purposes and functions13
* * *14
H. The office of debt recovery shall be responsible for, in accordance with15
applicable laws and under the direction of the secretary, the collection of a tax and16
may be responsible for the collection of delinquent debts, accounts, or claims due on17
behalf of other state agencies. The office of debt recovery may collect delinquent18
debts, accounts, or claims due to political subdivisions which are not statewide19
political subdivisions pursuant to a formal agreement with the Department of20
Revenue. Whenever the secretary deems necessary, he may reassign the21
responsibility for the collection of a tax, account, claims due, or other duty assigned22
by this Subsection to this office to another office within the department created by23
this Section.24
Section 2. R.S. 47:1676 is hereby enacted to read as follows: 25
§1676. Debt recovery26
A. It shall be the public policy of this state to aggressively pursue the27
collection of accounts or claims due and payable to the state of Louisiana through all28
reasonable means. The office of debt recovery, hereinafter referred to as "office",29 HLS 13RS-439 ENGROSSED
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within the Department of Revenue shall serve as a debt collecting entity for the state1
and in that capacity shall collect delinquent debts on behalf of all state agencies2
which refer delinquent debt to the office for collection. All debts owed to the state3
shall be referred to either the attorney general's office or to the office of debt4
recovery for collection. However, all state agencies which do not have a contract5
with the attorney general's office for debt collection on or before January 1, 2013,6
shall refer all delinquent debts to the office for collection when the debt has been7
delinquent for sixty days. All agencies which do not have collection contracts with8
the attorney general's office shall begin to refer delinquent debts to the office no later9
than January 1, 2014.10
B. For purposes of this Section, the following words shall have the following11
meanings unless the context clearly indicates otherwise:12
(1) "Agency" means any state office, department, board, commission,13
institution, division officer or other person, or functional group, existing or created,14
that is authorized to exercise, or that does exercise, any function of state government15
in the executive branch, but does not mean any governing body or officer of any16
local government or subdivision of the state, or any parochial officer who exercises17
functions coterminous with the municipality in which he performs those functions.18
(2) "Authenticated" means that the referring agency has certified the amount19
of the delinquent debt, the debtor's liability, the debtor's name, address, telephone20
number, social security number, and the federal or state taxpayer identification21
number.22
(3) "Debt" means any legally collectible liquidated sum due and owing an23
agency, or due and owing a person and collectible by any agency, or a judgment,24
order of the court, or bond forfeiture which is properly certified by the clerk and25
which orders the payment of a fine or other court-ordered penalty. The legally26
collectible and liquidated sum due includes principal and accruing interest, fees, and27
penalties, if appropriate.28
(4) "Department" means the Louisiana Department of Revenue.29 HLS 13RS-439 ENGROSSED
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(5) "Delinquent debt" means a debt that is sixty days or more past due.1
(6) "Final" means the amount due is no longer negotiable and that the debtor2
has no further right of administrative or judicial review.3
(7) "Office" means the office of debt recovery within the Department of4
Revenue.5
(8) "Secretary" means the secretary of the Department of Revenue.6
C.(1) Notwithstanding any other provision of law to the contrary, in addition7
to any duties, powers, or responsibilities otherwise conferred, the secretary of the8
Department of Revenue, through the office of debt recovery, shall collect and9
enforce certain delinquent debts due to state agencies according to rules promulgated10
by the department.11
(2)(a) No later than January 1, 2014, state agencies which do not have12
collection contracts with the attorney general's office for the collection of delinquent13
debts shall refer all delinquent debts to the office as provided by rule. Such referrals14
shall include data and information in the required format necessary to institute15
collection procedures. All debts must be final and authenticated by the state agency16
prior to being referred to either the office or to the attorney general's office.17
(b) After transferring the debt to the office for collection, the referring state18
agency or political subdivision shall terminate all collection activities with respect19
to that debt except to provide assistance to the office as may be requested. The20
department shall notify the debtor by letter, within fifteen days of receiving the21
referral, that such debt has been referred to the office for collection. Upon receipt22
of the debt referral, the office shall assume all liability for its actions without23
recourse to the agency or political subdivision and shall comply with all applicable24
state and federal laws governing the collection of the debt. For purposes of this25
Section, the office shall not be considered a collection agency as defined in R.S.26
9:3534.1.27 HLS 13RS-439 ENGROSSED
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(3) The office may collect delinquent debts owed to political subdivisions1
which are not statewide political subdivisions, pursuant to a formal agreement with2
the department.3
(4) At the discretion of the secretary, the department may contract with the4
attorney general's office or a third-party collection contractor for the collection of5
delinquent debt on behalf of the office.6
D.(1) Notwithstanding any other provision of law to the contrary, the7
secretary of the Department of Revenue may treat a delinquent debt referral in the8
same manner as an assessment that has become final without restriction or delay.9
The secretary, through the office, may use any collection remedy provided by state10
law to facilitate the collection of taxes to collect the delinquent debt. The office may11
use a participating agency's or political subdivision's statutory collection authority12
to collect the participating agency's delinquent debts owed to or being collected by13
the state. The office may also use authority granted in R.S. 47:299.3 regarding offset14
from income tax refunds or other accounts payable by the state for any delinquent15
debt transferred by state agencies and agencies of political subdivisions. The16
secretary has the discretion to determine which method or combination thereof is17
most suitable to collect the delinquent debt.18
(2) The office may exercise the same authority granted in R.S. 46:236.1.419
and may assume the obligation for the payment of such services in order to collect20
delinquent debt. No financial institution, including directors, officers, employees,21
attorneys, accountants, or other agents, which provides information to the office shall22
be liable civilly or criminally for the disclosure of such information pursuant to the23
provisions of this Section.24
(3) The office shall be granted and may exercise the authority granted in R.S.25
47:296.2 and 296.3. Additionally, the office shall be allowed to suspend, revoke,26
deny, or request the suspension, revocation, or denial of any professional license or27
other license or permit issued, granted, or renewed by the state of Louisiana due to28
a debtor owing the state a delinquent debt. In exercising the authority provided for29 HLS 13RS-439 ENGROSSED
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in this Section or in R.S. 47:296.2 or 296.3, the office may assume the obligation for1
the payment of such services in order to collect delinquent debt.2
(4) The office shall be authorized to withhold, offset, levy, garnish, or seize3
payments of progressive slot machine annuities and cash gaming winnings in the4
same manner set forth in R.S. 27:24 and may assume the obligation for payment of5
such services in order to collect delinquent debt.6
E. The office shall charge the debtor a fee not to exceed twenty-five percent7
of the total liability of the delinquent debt. Fees collected under this Subsection shall8
be retained by the office after the debt is collected. The office shall transfer any9
monies collected from a debtor to the referring agency within thirty days after the10
end of the month in which the monies were collected. Money received by the11
secretary from the fees imposed pursuant to this Section are designated self-12
generated revenues of the department.13
F. Notwithstanding any law to the contrary, state agencies shall be14
authorized to transmit data to the office of debt recovery deemed necessary by the15
secretary to aid in the collection efforts of the office. The secretary shall establish16
a centralized electronic debt registry to compile the information provided by state17
agencies and participating political subdivisions and shall maintain all information18
provided from all sources within the state concerning addresses, financial records,19
and any other information useful in assisting the office in collection services of the20
centralized registry. The data compiled in the registry from the department, referring21
agencies, and the office shall be available for cross-referencing and for the22
identification of debtors necessary for the collection of delinquent debt. However,23
all data, records, and files utilized for debt collection as provided herein shall be24
deemed confidential and privileged, and no person shall divulge or disclose any25
information obtained from such records and files except in the administration and26
enforcement of these provisions.27
G. The secretary shall promulgate rules and regulations in accordance with28
the Administrative Procedure Act to implement the provisions of this Section,29 HLS 13RS-439 ENGROSSED
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including rules authorizing any reasonable procedure or requirement for agencies1
or political subdivisions referring delinquent debt to the department for collection2
and any requirements regarding information necessary to collect the debt and the3
formatting of that information. Any rule promulgated by the department shall be4
construed in favor of the secretary.5
H. Reciprocal debt collection agreement with federal government. The6
secretary may enter into one or more reciprocal collection and offset of indebtedness7
agreements with the federal government, pursuant to which the state shall agree to8
offset from state tax refunds and payments otherwise due to vendors and contractors9
providing goods or services to state agencies, non-tax debt owed to the federal10
government, and the federal government shall agree to offset from federal payments11
to vendors, contractors, and taxpayers debt owed to the state.12
I. After the office exercises and employs its collection methods and tools, it13
shall evaluate and recommend any uncollectible debt for sale or securitization in14
accordance with the provisions of R.S. 39:88.2 and 88.3.15
Section 3. This Act shall become effective upon signature by the governor or, if not16
signed by the governor, upon expiration of the time for bills to become law without signature17
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If18
vetoed by the governor and subsequently approved by the legislature, this Act shall become19
effective on the day following such approval.20
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. HLS 13RS-439 ENGROSSED
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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.
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 authorizes the office to exercise authority granted pursuant to present law
relative to the suspension or denial of drivers' licenses, the suspension, revocation, or denial
of hunting or fishing licenses, or to withhold, offset, levy, garnish, or seize payments of
progressive slot machine annuities and cash gaming winnings in collecting delinquent debt.
Further authorizes the office to suspend, revoke, deny, or request the suspension, revocation,
or denial of any license, professional license, or permit issued, granted, or renewed by the
state due to a debtor owing the state a 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
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 HLS 13RS-439 ENGROSSED
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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.
Proposed law requires the office to evaluate and recommend any uncollectible debt for sale
or securitization in accordance with present law after the office exercises and employs its
collection methods and tools.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 36:451(C); Adds R.S. 36:458(H) and 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. Added authorization for the office to exercise authority pursuant to present law
relative to the suspension or denial of drivers' licenses, the suspension,
revocation, or denial of hunting or fishing licenses, or to withhold, offset, levy,
garnish, or seize payments of progressive slot machine annuities and cash
gaming winnings in collecting delinquent debt.
2. Added authorization for the office to withhold, offset, levy, or garnish gaming
winnings in collecting delinquent debt.
3. Added federal or state taxpayer identification numbers to the information a
referring agency must certify before send the delinquent debt to the office or the
attorney general for collection.
4. Required the office to evaluate and recommend any uncollectible debt for sale
or securitization after the office exercises its collection methods and tools.