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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 R.S. 47:1603(A) and to enact R.S. 36:458(H) and2
R.S. 47:1676, 1676.1, and 1677, relative to collections by the Department of3
Revenue; to establish the office of debt recovery within the Department of Revenue4
to collect certain delinquent debts owed to or collected by the state; to provide for5
definitions; to provide for the administration of the collection of certain debts; to6
authorize the office to collect certain debt of political subdivisions under certain7
circumstances; to provide relative to the procedure for collection of certain debts; to8
provide for certain requirements and limitations; to authorize the collection of a fee;9
to provide for the establishment of an electronic debt registry; to provide relative to10
the information maintained in the registry; to authorize the promulgation of rules and11
regulations; to provide for the waiver of penalty for delinquent filing or delinquent12
payment under certain circumstances; to authorize establishment of certain13
programs; to establish the Debt Recovery Fund as a special treasury fund; to provide14
for the deposit, use, and investment of the monies in the fund; to authorize the15
establishment and use of a financial institution data match system; to authorize the16
acquisition and use of certain information from a financial institution; to authorize17
the payment of certain fees for acquisition of data match request files; to provide for18
the confidentiality of certain information; to provide for an effective date; and to19
provide for related matters.20 HLS 13RS-439 REENGROSSED
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Be it enacted by the Legislature of Louisiana:1
Section 1. R.S. 36:451(C) is hereby amended and reenacted and R.S. 36:458(H) is2
hereby enacted to read as follows: 3
§451. Department of Revenue; creation; domicile; composition; purposes and4
functions5
* * *6
C. The Department of Revenue shall be composed of the executive office of7
the secretary, the office of management and finance, the office of tax administration,8
group I, the office of tax administration, group II, the office of tax administration,9
group III, the office of alcohol and tobacco control, the office of legal affairs, the10
office of charitable gaming, the office of debt recovery, and such other offices as11
shall be created by law. Whenever the secretary determines that the administration12
of the functions of the department may be more efficiently performed by eliminating,13
merging, or consolidating existing offices or establishing new offices, he shall14
present a plan therefor to the legislature for its approval by statute; provided that,15
whenever the secretary deems necessary, he may reassign the responsibility for the16
collection of a specific tax from one office to another office.17
* * *18
§458. Offices; purposes and functions19
* * *20
H. The office of debt recovery shall be responsible for, in accordance with21
applicable laws and under the direction of the secretary, the collection of a tax and22
may be responsible for the collection of delinquent debts, accounts, or claims due on23
behalf of other state agencies. The office of debt recovery may collect delinquent24
debts, accounts, or claims due to political subdivisions which are not statewide25
political subdivisions pursuant to a formal agreement with the Department of26
Revenue. Whenever the secretary deems necessary, he may reassign the27
responsibility for the collection of a tax, account, claims due, or other duty assigned28 HLS 13RS-439 REENGROSSED
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by this Subsection to this office to another office within the department created by1
this Section.2
Section 2. R.S. 47:1603(A) is hereby amended and reenacted and R.S. 47:1676,3
1676.1, and 1677 are hereby enacted to read as follows:4
§1603. Waiver of penalty for delinquent filing or delinquent payment5
A.(1) If the failure to make any return at the time such return becomes due6
or the filing of a return without remittance of the full amount due, is attributable, not7
to the negligence of the taxpayer, but to other cause set forth in written form and8
considered reasonable by the secretary of the Department of Revenue, the secretary9
may remit or waive payment of the whole or any part of the specific penalty10
provided for such failure; but in any case when the penalty exceeds five thousand11
dollars, it can be waived by the secretary only after approval by the board of tax12
appeals.13
(2) In order to promote the effective administration of the tax laws of this14
state, the secretary may promulgate rules and regulations in accordance with the15
Administrative Procedure Act , including but not limited to the establishment of a16
voluntary disclosure program and the remittance or waiver of any portion of17
penalties provided for in this Subtitle.18
* * *19
§1676. Debt recovery20
A. It shall be the public policy of this state to aggressively pursue the21
collection of accounts or claims due and payable to the state of Louisiana through all22
reasonable means. The office of debt recovery, within the Department of Revenue23
shall serve as a debt-collecting entity for the state and in that capacity shall collect24
delinquent debts on behalf of all state agencies which refer delinquent debt to the25
office for collection. All debts owed to the state shall be referred to either the26
attorney general's office or to the office of debt recovery for collection. However,27
all state agencies which do not have a contract with the attorney general's office for28
debt collection on or before July 1, 2013, shall refer all delinquent debts to the office29 HLS 13RS-439 REENGROSSED
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for collection when the debt has been delinquent for sixty days. All agencies which1
do not have collection contracts with the attorney general's office shall begin to refer2
delinquent debts to the office no later than January 1, 2014.3
B. For purposes of this Section, the following words shall have the following4
meanings unless the context clearly indicates otherwise:5
(1) "Agency" means any state office, department, board, commission,6
institution, division officer or other person, or functional group, existing or created,7
that is authorized to exercise, or that does exercise, any function of state government8
in the executive branch, but does not mean any governing body or officer of any9
local government or subdivision of the state, or any parochial officer who exercises10
functions coterminous with the municipality in which he performs those functions.11
(2) "Authenticated" means that the referring agency has certified the amount12
of the delinquent debt, the debtor's liability, the debtor's name, address, telephone13
number, social security number, and the federal or state taxpayer identification14
number.15
(3) "Debt" means any legally collectible liquidated sum due and owing an16
agency, or due and owing a person and collectible by any agency, or a judgment,17
order of the court, or bond forfeiture that is properly certified by the clerk and that18
orders the payment of a fine or other court-ordered penalty. The legally collectible19
and liquidated sum due includes principal and accruing interest, fees, and penalties,20
if appropriate. For purposes of this Section, "debt" shall not include any legally21
collectible liquidated sum due and owing to an agency or an individual pursuant to22
the following federal programs: Title IV-A, Title IV-B, Title IV-D, Title IV-E, Title23
XX of the federal Social Security Act, 7 United States Code (U.S.C.) 2011 et seq.,24
42 U.S.C. 9858 et seq., 42 U.S.C. 5101 et seq., 42 U.S.C. 5116 et seq., 42 U.S.C.25
10401 et seq.; or any state tax debt collected under Title 47 of the Louisiana Revised26
Statutes of 1950, as amended; or, any sums due on account of overpaid27
unemployment compensation benefits or unpaid contributions or reimbursements28
pursuant to Louisiana Security Law under R.S. 23:1471 et seq.29 HLS 13RS-439 REENGROSSED
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(4) "Department" means the Louisiana Department of Revenue.1
(5) "Delinquent debt" means a final debt that is sixty days or more past due.2
(6) "Final" means the amount due is no longer negotiable and that the debtor3
has no further right of administrative or judicial review.4
(7) "Office" means the office of debt recovery within the Department of5
Revenue.6
(8) "Secretary" means the secretary of the Department of Revenue.7
C.(1) Notwithstanding any other provision of law to the contrary, in addition8
to any duties, powers, or responsibilities otherwise conferred, the secretary of the9
Department of Revenue, through the office of debt recovery, shall collect and10
enforce certain delinquent debts due to state agencies according to rules promulgated11
by the department.12
(2)(a) No later than January 1, 2014, state agencies which do not have13
collection contracts with the attorney general's office for the collection of delinquent14
debts shall refer all delinquent debts to the office as provided by rule. Such referrals15
shall include data and information in the required format necessary to institute16
collection procedures. All debts must be final and authenticated by the state agency17
prior to being referred to either the office or to the attorney general's office.18
(b) After transferring the debt to the office for collection, the referring state19
agency or political subdivision shall terminate all collection activities with respect20
to that debt except to provide assistance to the office as may be requested. The21
department shall notify the debtor by letter, within fifteen days of receiving the22
referral, that such debt has been referred to the office for collection. Upon receipt23
of the debt referral, the office shall assume all liability for its actions without24
recourse to the agency or political subdivision and shall comply with all applicable25
state and federal laws governing the collection of the debt. For purposes of this26
Section, the office shall not be considered a collection agency as defined in R.S.27
9:3534.1.28 HLS 13RS-439 REENGROSSED
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(3) The office may collect delinquent debts owed to political subdivisions1
that are not statewide political subdivisions, pursuant to a formal agreement with the2
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. However, any contract entered into by the6
secretary for the collection of delinquent debt on behalf of the state shall be subject7
to review by the Cash Management Review Board. Additionally, the Legislative8
Auditor shall have authority to conduct audits of such contracts in accordance with9
the law.10
(5) If, in the course of collecting delinquent debt, the secretary determines11
that the office requires the additional assistance of legal counsel, the secretary shall12
first seek assistance from the office of the attorney general. If the office of the13
attorney general is unable to or declines to offer legal counsel, the secretary is14
authorized to contract with a third-party for such services. However, any contract15
entered into by the secretary for legal services shall be subject to review by the Cash16
Management Review Board. Additionally, the legislative auditor shall have17
authority to conduct audits of such contracts in accordance with the law.18
D.(1) Notwithstanding any other provision of law to the contrary, the19
secretary of the Department of Revenue may treat a delinquent debt referral in the20
same manner as an assessment that has become final without restriction or delay.21
The secretary, through the office, may use any collection remedy provided by state22
law to facilitate the collection of taxes to collect the delinquent debt. The office may23
use a participating agency's or political subdivision's statutory collection authority24
to collect the participating agency's delinquent debts owed to or being collected by25
the state. The office may also use authority granted in R.S. 47:299.3 regarding offset26
from income tax refunds or other accounts payable by the state for any delinquent27
debt transferred by state agencies and agencies of political subdivisions. The28 HLS 13RS-439 REENGROSSED
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secretary has the discretion to determine which method or combination thereof is1
most suitable to collect the delinquent debt.2
(2) The department and the office may establish and use an electronic3
financial institution data match system as authorized in R.S. 47:1677 for comparison4
of certain account information held by financial institutions with the department and5
office's databases of state tax and state nontax debtors against whom an assessment6
or judgment for debt owed to the state has become final.7
(3) The office shall be granted and may exercise the authority granted in R.S.8
47:296.2 and 296.3. Additionally, the office shall be allowed to suspend, revoke,9
deny, or request the suspension, revocation, or denial of any professional license or10
other license or permit issued, granted, or renewed by the state of Louisiana due to11
a debtor owing the state a delinquent debt. In exercising the authority provided for12
in this Section or in R.S. 47:296.2 or 296.3, the office may assume the obligation for13
the payment of such services in order to collect delinquent debt. The office's method14
and procedure for the request of or suspension, revocation, or denial of a professional15
license, or other license or permit pursuant to the provisions of this Section shall16
comport with the method utilized according to the provisions of R.S. 47:296.2 and17
296.3.18
(4) The office shall be authorized to withhold, offset, levy, garnish, or seize19
payments of progressive slot machine annuities and cash gaming winnings in the20
same manner set forth in R.S. 27:24 and may assume the obligation for payment of21
such services in order to collect delinquent debt.22
E. The office shall charge the debtor a fee not to exceed twenty-five percent23
of the total liability of the delinquent debt. Fees collected under this Subsection shall24
be retained by the office after the debt is collected and shall be divided equally25
between the office and the office of the attorney general after all of the expenses26
incurred in the initial establishment of the office and initial establishment of debt27
collection in the office of the attorney general are paid. Monies collected by the28
office pursuant to the provisions of this Section shall be deposited into the Debt29 HLS 13RS-439 REENGROSSED
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Recovery Fund established in accordance with the provisions of R.S. 47:1676.1,1
within thirty days after the end of the month in which the monies were collected.2
F. Notwithstanding any law to the contrary, state agencies shall be3
authorized to transmit data to the office of debt recovery deemed necessary by the4
secretary to aid in the collection efforts of the office. The secretary shall establish5
a centralized electronic debt registry to compile the information provided by state6
agencies and participating political subdivisions and shall maintain all information7
provided from all sources within the state concerning addresses, financial records,8
and any other information useful in assisting the office in collection services of the9
centralized registry. The data compiled in the registry from the department, referring10
agencies, and the office shall be available for cross-referencing and for the11
identification of debtors necessary for the collection of delinquent debt. However,12
all data, records, and files utilized for debt collection as provided herein shall be13
deemed confidential and privileged, and no person shall divulge or disclose any14
information obtained from such records and files except in the administration and15
enforcement of these provisions. Compilation of tax data in the electronic registry16
by the department shall not be a violation of R.S. 47:1508, and any information or17
data gathered by the department and the office in accordance with the law may be18
used for purposes of collecting tax and nontax debt.19
G. The secretary shall promulgate rules and regulations in accordance with20
the Administrative Procedure Act to implement the provisions of this Section,21
including rules authorizing any reasonable procedure or requirement for agencies22
or political subdivisions referring delinquent debt to the department for collection,23
requirements regarding information necessary to collect the debt and the formatting24
of that information, and the priority or ranking of debt payments against multiple25
agency debts. Any rule promulgated by the department shall be construed in favor26
of the secretary.27
H. Reciprocal debt collection agreement with federal government. The28
secretary may enter into one or more reciprocal collection and offset of indebtedness29 HLS 13RS-439 REENGROSSED
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agreements with the federal government, pursuant to which the state shall agree to1
offset from state tax refunds and payments otherwise due to vendors and contractors2
providing goods or services to state agencies, non-tax debt owed to the federal3
government, and the federal government shall agree to offset from federal payments4
to vendors, contractors, and taxpayers debt owed to the state.5
I. After the office exercises and employs its collection methods and tools, it6
shall evaluate and recommend any uncollectible debt for sale or securitization in7
accordance with the provisions of R.S. 39:88.2 and 88.3.8
J. The operations of the office shall be subject to annual review by the Cash9
Management Review Board.10
§1676.1. Debt Recovery Fund11
A. There is hereby established as a special fund within the state treasury the12
"Debt Recovery Fund", hereinafter referred to as the "fund". After satisfying the13
requirements of Article VII, Section 9(B) of the Constitution of Louisiana relative14
to the Bond Security and Redemption Fund, the state treasurer shall annually deposit15
into the fund an amount equal to the monies collected pursuant to the provisions of16
R.S. 47:1676 for the collection of delinquent debt.17
B. All unexpended and unencumbered monies in the fund at the end of the18
fiscal year shall remain in the fund. The monies in the fund shall be invested by the19
state treasurer in the same manner as monies in the state general fund, and all20
earnings on the investment of the monies in the fund shall be deposited into the fund.21
C. Monies in the fund shall be appropriated by the legislature to be utilized22
and expended solely as provided for in this Subsection. A portion of the monies in23
the fund shall be appropriated to any state agency which referred its delinquent debt24
to the office of debt recovery for collection to be used solely for purposes of federal25
reimbursements. However, in no case shall the amount of monies appropriated to26
any state agency exceed the actual amount of delinquent debt monies collected by27
the office of debt recovery on behalf of the state agency.28 HLS 13RS-439 REENGROSSED
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§1677. Financial Institution Data Match1
A. A financial institution or its processor shall provide to the department or2
the office, the name, record address, social security number or other taxpayer3
identification number, any other identifying information, and an average daily4
account balance for the most recent thirty-day period, for each calendar quarter for5
each account owner who maintains an account at such institution and who the office6
purports is a tax or nontax debtor.7
B. For purposes of this Section, the following words or phrases shall have8
the following meanings unless the context clearly indicates otherwise:9
(1) "Account" shall mean any money held in the name of an account owner,10
individually or jointly with another, including but not limited to a deposit account,11
demand account, savings account, negotiable order of withdrawal account (NOW12
account), share account, member account, time certificate of deposit, or money13
market account. "Account" shall not include money held by a financial institution14
where the tax or nontax debtor is listed in a capacity other than owner, such as15
custodian, tutor, or agent.16
(2) "Financial institution" shall mean a state or federally chartered bank,17
savings bank, savings and loan association, or credit union operating in this state18
with a main office or one or more branch offices.19
(3) "Nontax debtor" shall mean an individual against whom an assessment20
or judgment for a debt owed to the state has become final and is currently21
enforceable in accordance with the law.22
(4) "Tax debtor" shall mean an individual against whom an assessment or23
judgment for state taxes payable has become final and is currently enforceable in24
accordance with law.25
C.(1) If a financial institution or its processor has a current data match26
system developed or used to comply with the child support data match system27
provided for in R.S. 46:236.1.4, the financial institution or its processor may use that28
system to comply with the provisions of this Section. The office shall not require a29 HLS 13RS-439 REENGROSSED
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financial institution or its processor to change their data match system or file format1
established under R.S. 46: 236.1.4 in order to comply with this Section.2
(2) For Louisiana domiciled financial institutions having no branch offices3
outside the state, the office or its data match vendor shall ensure that compliance4
with both the provisions of this Section and R.S. 46:236.1.4 may be accomplished5
with a single data match file. Louisiana domiciled institutions having no branch6
offices outside the state, or their processor, shall not be required to process multiple7
data match files to comply with this Section.8
D. A financial institution may, but is not required to, disclose to its9
depositors or account holders that the department or the office has the authority to10
request and receive certain identifying information provided for in this Section for11
state tax and nontax debt collection purposes.12
E.(1) No financial institution, including its directors, officers, employees,13
attorneys, accountants, or other agents, shall incur liability to any person, including14
any depositor or other customer, as a result of providing account information to the15
department or office in compliance with a request that conforms to the provisions of16
this Section.17
(2) A financial institution, including any of its directors, officers, employees,18
attorneys, accountants, or other agents, shall not be civilly or criminally liable to any19
person, including any customer, for any disclosure of information made in20
accordance with this Section, including any disclosure of account balances.21
F.(1) Notwithstanding any other law or rule to the contrary, the department22
or office shall pay a participation fee to each financial institution that actually23
receives a data match request file. The participation fee to a financial institution24
shall be for actual costs incurred for conducting the data match and otherwise25
complying with the provisions of this Section. Actual costs incurred for complying26
with this Section shall be the total cost incurred by the financial institution to process27
all data match request files under R.S. 46:236.1.4 and this Section minus the costs28
incurred to process data match request files under R.S. 46:236.1.4. In order to29 HLS 13RS-439 REENGROSSED
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receive the participation fee authorized by this Section, the financial institution must1
be FDIC insured.2
(2) Before a financial institution receives a participation fee, the financial3
institution must show it has incurred costs under R.S. 46:236.1.4 and this Section.4
The department or office may require a financial institution to submit paperwork5
such as invoices and other documentation to substantiate the costs that have been6
incurred. After actual costs are established by a financial institution under Paragraph7
(1) of this Subsection through submitted paperwork, the office shall automatically8
remit payment to the financial institution on a quarterly basis without the financial9
institution having to resubmit additional paperwork each quarter thereafter.10
However, the office may request additional paperwork from a financial institution11
on a periodic basis, not to exceed once every two years, to verify their actual costs12
in complying with this Section.13
(3) Notwithstanding any other law or rule to the contrary, if a financial14
institution assesses a fee to its customer for processing a state tax or state nontax levy15
received from the office or the department, the fee shall be collected by the financial16
institution from the proceeds of the customer's account before any account proceeds17
are remitted to the office or the department to satisfy the state tax or state nontax18
levy.19
(4) Any fees paid under this Section shall not be comprised of or constitute20
any amounts due to a financial institution for its compliance with R.S. 46:236.1.4.21
The department or office shall be responsible for the reconciliation and tracking of22
data and information regarding the number of sent data match request files, received23
completed data match accounts, and amounts paid in accordance with this Section.24
The department shall also be responsible for tracking and reporting all statistical25
information regarding financial data match activities to the commissioner of26
administration or his designee every six months and to report the information to the27
Joint Legislative Committee on the Budget every session prior to the last day of each28
legislative session.29 HLS 13RS-439 REENGROSSED
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G. The department, office, and their designated vendor for the data match1
program, shall keep all information received from financial institutions pursuant to2
this Section confidential, and any employee, agent, or representative of the3
department, office, and their designated vendor is prohibited from disclosing that4
information to any other third party.5
H. The department or office shall generally conduct the data match program6
provided for in this Section on a quarterly basis. However, if the department or7
office decides to conduct data match with a particular financial institution less8
frequently than every quarter, the department or office shall provide written notice9
to the chief operating officer of the financial institution at least ninety days before10
the next scheduled quarterly data match date. If the department or office provides11
the required notice to change the frequency of data match, the department or office12
shall not further change the frequency of data match with that financial institution13
for at least one year from the date written notice was provided to the financial14
institution originally changing the frequency of the data match schedule. After the15
one year period has accrued, any subsequent changes to the frequency of the data16
match schedule with a financial institution shall also only be done by the department17
or office after providing written notice to the chief operating officer of the financial18
institution at least ninety days in advance of the next quarterly data match date.19
Section 3. This Act shall become effective upon signature by the governor or, if not20
signed by the governor, upon expiration of the time for bills to become law without signature21
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If22
vetoed by the governor and subsequently approved by the legislature, this Act shall become23
effective on the day following such approval.24 HLS 13RS-439 REENGROSSED
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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.
Present law provides that if the failure to make any return at the time such return becomes
due or the filing of a return without remittance of the full amount due, is attributable, not to
the negligence of the taxpayer, but to other cause set forth in written form and considered
reasonable by the secretary of DOR, the secretary may remit or waive payment of the whole
or any part of the specific penalty provided for such failure; however, when the penalty
exceeds $5,000, it can be waived by the secretary only after approval by the board of tax
appeals.
Proposed law deletes authority of the secretary of DOR to waive a penalty in excess of
$5,000 only after approval of the board of tax appeals but adds authority of the secretary to
promulgate rules and regulations to establish a voluntary disclosure program and the
remittance or waiver of any portion of penalties provided for in present law.
Proposed law retains present law and adds the office of debt recovery, hereinafter "office",
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 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 July 1, 2013, shall refer all delinquent debts to the office for collection when the debt
is final and 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. However, debt shall not include
any legally collectible, liquidated sum due and owing to an agency pursuant to certain
federal programs, state tax debt collected under present law and overpaid unemployment
compensation benefits or unpaid contributions or reimbursements pursuant to Louisiana
Security Law.
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 REENGROSSED
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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;
however, any contract entered into by the secretary for the collection of delinquent debt shall
be subject to review by the Cash Management Review Board and audit by the Legislative
Auditor.
Proposed law provides that if, in the course of collecting delinquent debt, the secretary
determines that the office requires the additional assistance of legal counsel, the secretary
shall first seek assistance from the Attorney General. If the Attorney General is unable to
or declines to offer legal counsel, the secretary may contract with a third-party for such
services. However, any contract entered into by the secretary for legal services shall be
subject to review by the Cash Management Review Board and audit by the Legislative
Auditor.
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 authorizes the department and the office to establish and use an electronic
financial institution data match system for comparison of certain account information held
by financial institutions with the department and office's databases of state tax and state non-
tax debtors against whom an assessment or judgment for debt owed to the state has become
final.
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 and shall be divided equally between
the office and the Attorney General after all of the expenses incurred in the initial
establishment of the office and initial establishment of debt collection in the Attorney
General's office are paid. Requires monies collected by the office for delinquent debt to be
deposited into the Debt Recovery Fund within 30 days after the end of the month in which
the monies were collected.
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 provides that compilation of tax data in the electronic registry by the
department shall not be a violation of present law relative to confidentiality of tax records,
and any information or data gathered by the department and the office may be used for
purposes of collecting tax and non-tax debt. HLS 13RS-439 REENGROSSED
HB NO. 629
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
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.
Proposed law requires that the operations of the office be subject to annual review by the
Cash Management Board.
Proposed law establishes the "Debt Recovery Fund", hereinafter fund, as a special treasury
fund. After satisfying the requirements of present constitution relative to the Bond Security
and Redemption Fund, the state treasurer shall annually deposit into the fund an amount
equal to the monies collected pursuant to proposed law for the collection of delinquent debt.
Further requires that monies in the fund be appropriated by the legislature and utilized solely
as provided for in proposed law. A portion of the monies in the fund shall be appropriated
to any state agency which referred its delinquent debt to the office of debt recovery for
collection to be used solely for purposes of federal reimbursements. However, in no case
shall the amount of monies appropriated to any state agency exceed the actual amount of
delinquent debt monies collected by the office on behalf of the state agency.
Proposed law requires a financial institution or it's processor to provide to the department
or the office, the name, record address, social security number or other taxpayer
identification number, any other identifying information, and an average daily account
balance for the most recent 30 day period, for each calendar quarter for each account owner
who maintains an account at such institution and who the office purports is a tax or non-tax
debtor.
Proposed law provides that if a financial institution or its processor has a current data match
system developed or used to comply with the child support data match system, the financial
institution or its processor may use that system to comply with the provisions of proposed
law.
Proposed law provides that for La. domiciled financial institutions having no branch offices
outside the state, the office or its data match vendor shall ensure that compliance with
proposed law and present law may be accomplished with a single data match file. Louisiana
domiciled institutions having no branch offices outside the state, or their processor, shall not
be required to process multiple data match files.
Proposed law provides that a financial institution may, but is not required to, disclose to its
depositors or account holders that the department or the office has the authority to request
and receive certain identifying information for state tax and non-tax debt collection
purposes.
Proposed law prohibits a financial institution, including its directors, officers, employees,
or other agents, from incurring liability to any person as a result of providing account
information to the department or office in compliance with a request that conforms to the
provisions of proposed law. Further prohibits a financial institution, including any of its
directors, officers, employees, or other agents, from incurring civil or criminal liability for
any disclosure of information made in accordance with proposed law.
Proposed law requires the department or office to pay a participation fee to each financial
institution that actually receives a data match request file. The participation fee shall be for HLS 13RS-439 REENGROSSED
HB NO. 629
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
actual costs incurred for conducting the data match. However, in order to receive the
participation fee, the financial institution must be FDIC insured and the financial institution
must show it has incurred costs under present law and proposed law. The department or
office may require a financial institution to submit paperwork such as invoices and other
documentation to substantiate the costs that have been incurred. After actual costs are
established by a financial institution, the office shall automatically remit payment to the
financial institution on a quarterly basis without the financial institution having to resubmit
additional paperwork each quarter thereafter.
Proposed law provides that if a financial institution assesses a fee to its customer for
processing a state tax or state non-tax levy received from the office or the department, the
fee shall be collected by the financial institution from the proceeds of the customer’s account
before any account proceeds are remitted to the office or the department to satisfy the state
tax or state non–tax levy.
Proposed law provides that any fees paid according to the provisions of proposed law shall
not be comprised of or constitute any amounts due to a financial institution for its
compliance with present law. The department or office shall be responsible for the
reconciliation and tracking of data and information regarding the number of sent data match
request files, received completed data match accounts, and amounts paid. The department
shall also be responsible for tracking and reporting all statistical information regarding
financial data match activities to the Commissioner of Administration or his designee every
six months and to report the information to the Joint Legislative Committee on the Budget
every session prior to the last day of each legislative session.
Proposed law requires the department, office, and their designated vendor for the data match
program, to keep all information received from financial institutions confidential, and any
employee, agent or representative of the department, office, and their designated vendor is
prohibited from disclosing that information to any other third party.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 36:451(C) and R.S. 47:1603(A); Adds R.S. 36:458(H) and R.S. 47:1676,
1676.1, and 1677)
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. HLS 13RS-439 REENGROSSED
HB NO. 629
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
House Floor Amendments to the engrossed bill.
1. Deletes requirement for the secretary of the Dept. of Revenue to waive penalties
which exceed $5,000 receive approval of the board of tax appeals.
2. Adds authority for the secretary of the Dept. of Revenue to promulgates rules in
accordance with the APA including the establishment of a voluntary disclosure
program and the remittance or waiver of any portion of penalties provided by
present law.
3. Changes the date in which state agencies have to enter into contracts with the
Attorney General's office for debt collection in order to avoid sending delinquent
debt to the office of debt collection from January 1, 2013 to July 1, 2013.
4. Adds provision that the term "debt" shall not include legally collectible
liquidated sum due and owning pursuant to certain federal programs, state tax
debt, or sums due on account of overpayment of certain unemployment
compensation.
5. Adds requirement that contracts entered into by the secretary for the collection
of delinquent debt on behalf of the state shall be subject to review by the Cash
Management Review Board and subject to audit by the Legislative Auditor.
6. Adds provision that if the secretary determines the office requires the assistance
of additional legal counsel, the secretary shall first seek assistance from the the
Attorney General. If the Attorney General declines to offer assistance, the
secretary may contract with a third-party for such services. However, the contract
shall be subject to review by the Cash Management Review Board and subject
to audit by the Legislative Auditor.
7. Establishes the "Debt Recovery Fund", as a special treasury fund for the deposit
of monies collected pursuant to proposed law for the collection of delinquent
debt. Further requires that a portion of the monies in the fund be appropriated
to any state agency which referred its delinquent debt to the office for collection
to be used solely for purposes of federal reimbursements.
8. Provides that compilation of tax data in the electronic registry by the department
shall not be a violation of present law relative to confidentiality of tax records,
and any information or data gathered by the department and the office may be
used for purposes of collecting tax and non-tax debt.
9. Authorizes the establishment of an electronic financial institution data match
system for comparison of certain account information held by financial
institutions with the databases of the department and the office of state tax and
non-tax debtors.
10.Adds provision that a financial institution may, but is not required to, disclose to
its depositors or account holders that the department or the office has the
authority to request and receive certain identifying information for state tax and
non-tax debt collection purposes.
11.Adds prohibition that a financial institution, including its directors, officers,
employees, or other agents, incur liability to any person as a result of providing
account information to the department or office in compliance with a request that
conforms to the provisions of proposed law. Further prohibits a financial
institution, including any of its directors, officers, employees, or other agents,
from incurring civil or criminal liability for any disclosure of information made
in accordance with proposed law. HLS 13RS-439 REENGROSSED
HB NO. 629
Page 19 of 19
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
12.Adds requirement that the department or office to pay a participation fee to each
financial institution that actually receives a data match request file. The
participation fee shall be for actual costs incurred for conducting the data match.