ENROLLED
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Regular Session, 2013
HOUSE BILL NO. 629
BY REPRESENTATIVES BROADWATER, BARRAS, BURFORD, GUI LLORY,
HAZEL, HOFFMANN, JAMES, STOKES, THOMPSON, WHITNEY, AND
PATRICK WILLIAMS AND SENATORS JOHNS AND WALSWORTH
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
AN ACT1
To amend and reenact R.S. 6:333(B)(introductory paragraph) and R.S. 36:451(C) and to2
enact R.S. 6:333(F)(18), R.S. 36:458(H) and R.S. 47:1508(B)(33), 1676, and 1677,3
relative to collections by the Department of Revenue; to establish the office of debt4
recovery within the Department of Revenue to collect certain delinquent debts owed5
to or collected by the state; to provide for the authority of the attorney general's6
office in collecting certain debts; to provide for the administration of the collection7
of certain debts; to provide relative to the procedure for collection of certain debts;8
to provide for certain requirements and limitations; to authorize the collection of a9
fee; to provide for the establishment of an electronic debt registry; to provide relative10
to the information maintained in the registry; to authorize the promulgation of rules11
and regulations; to authorize establishment of certain programs; to authorize the12
establishment and use of a financial institution data match system; to authorize the13
acquisition and use of certain information from a financial institution; to authorize14
the payment of certain fees for acquisition of data match request files; to provide for15
the confidentiality of certain information; to authorize the disclosure of certain16
financial records under certain circumstances; to provide for an effective date; and17
to provide for related matters.18
Be it enacted by the Legislature of Louisiana:19
Section 1. R.S. 6:333(B)(introductory paragraph) is hereby amended and reenacted20
and R.S. 6:333(F)(18) is hereby enacted to read as follows: 21 ENROLLEDHB NO. 629
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§333. Disclosure of financial records; reimbursement of costs1
* * *2
B. Notwithstanding any other provision of law to the contrary, except R.S.3
9:151 et seq., R.S. 13:3921 et seq., Code of Civil Procedure Article 2411 et seq., and4
R.S. 46:236.1.4, R.S. 47:1676(D)(2), and R.S. 47:1677, no bank or its affiliate shall5
disclose any financial records to any person other than the customer to whom the6
financial records pertain, unless such financial records are disclosed:7
* * *8
F. The following disclosures by a bank or any affiliate are hereby9
specifically authorized and, except as otherwise provided in this Subsection, nothing10
in this Section shall prohibit, restrict, or otherwise apply to:11
* * *12
(18) The disclosure by a bank or any of its subsidiaries or affiliates of data13
match information on an account owner to the secretary of the Department of14
Revenue, and his or her designee in the office of debt recovery, for use in attempting15
to enforce a final tax or non-tax assessment or judgment against such individual or16
entity. Such disclosure to the department or office shall be limited to the name,17
record address, social security or taxpayer identification number, other identifying18
information, and an average daily account balance for the most recent thirty-day19
period, of a state tax or state non-tax debtor who maintains an account or is a20
customer at such institution and who purportedly owes a final state tax or state non-21
tax assessment or judgment.22
* * *23
Section 2. R.S. 36:451(C) is hereby amended and reenacted and R.S. 36:458(H) is24
hereby enacted to read as follows: 25
§451. Department of Revenue; creation; domicile; composition; purposes and26
functions27
* * *28
C. The Department of Revenue shall be composed of the executive office of29
the secretary, the office of management and finance, the office of tax administration,30 ENROLLEDHB NO. 629
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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 certain delinquent debts, accounts, or claims15
due on behalf of other state agencies. Whenever the secretary deems necessary, he16
may reassign the responsibility for the collection of a tax, account, claims due, or17
other duty assigned by this Subsection to this office to another office within the18
department created by this Section.19
Section 3. R.S. 47:1508(B)(33), 1676, and 1677 are hereby enacted to read as20
follows:21
§1508. Confidential character of tax records22
* * *23
B. Nothing herein contained shall be construed to prevent:24
* * *25
(33) The sharing or furnishing, in the discretion of the secretary, of26
information to the Louisiana Department of Health and Hospital's tax filing unit for27
the purposes of complying with mandatory requirements in accordance with federal28
law.29
* * *30 ENROLLEDHB NO. 629
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§1676. Debt recovery1
A.(1) It shall be the public policy of this state to aggressively pursue the2
collection of accounts or claims due and payable to the state of Louisiana through all3
reasonable means. The office of debt recovery, within the Department of Revenue4
and the attorney general's office shall jointly serve as debt-collecting entities for any5
agency of the state and in that capacity shall collect delinquent debts on behalf of all6
agencies which refer delinquent debts to the office for collection. All debts owed to7
the state shall be referred to either the attorney general's office or to the office of debt8
recovery for collection. However, all agencies which do not have a contract with the9
attorney general's office for debt collection on or before January 1, 2014, shall refer10
all delinquent debts to the office for collection when the debt has been final for sixty11
days.12
(2) Each agency shall refer non-final delinquent debts requiring legal action13
or legal proceedings, other than administrative proceedings within such agency, to14
the attorney general’s office for collection when the debt has been delinquent for15
sixty days, or other time period as provided pursuant to the referral guidelines16
established by the attorney general which are incorporated into agreements between17
the attorney general and any such agency or pursuant to rules promulgated by the18
attorney general pursuant to the Administrative Procedure Act.19
B. For purposes of this Section, the following words shall have the following20
meanings unless the context clearly indicates otherwise:21
(1) "Agency" means any state office, department, board, commission,22
institution, division officer or other person, or functional group, existing or created,23
that is authorized to exercise, or that does exercise, any function of state government24
in the executive branch.25
(2) "Authenticated" means that the referring agency has certified the amount26
of the delinquent debt, the debtor's liability, the debtor's name, address, telephone27
number, social security number, and the federal or state taxpayer identification28
number.29 ENROLLEDHB NO. 629
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(3) "Debt" means any legally collectible liquidated sum due and owing an1
agency, or due and owing a person and collectible by any agency, or a judgment,2
order of the court, or bond forfeiture that is properly certified by the clerk and that3
orders the payment of a fine or other court-ordered penalty. The legally collectible4
and liquidated sum due includes principal and accruing interest, fees, and penalties,5
if appropriate. For purposes of this Section, "debt" shall not include any legally6
collectible liquidated sum due and owing to an agency or an individual pursuant to7
the following federal programs: Title IV-A, Title IV-B, Title IV-D, Title IV-E, Title8
XX of the federal Social Security Act, 7 United States Code (U.S.C.) 2011 et seq.,9
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.10
10401 et seq.; or, any sums due on account of overpaid unemployment compensation11
benefits or unpaid contributions or reimbursements pursuant to Louisiana12
Employment Security Law under R.S. 23:1471 et seq.13
(4) "Department" means the Louisiana Department of Revenue.14
(5) "Delinquent debt" means a final debt that is sixty days or more past due.15
(6) "Final" means the amount due is no longer negotiable and that the debtor16
has no further right of administrative and judicial review.17
(7) “Non-final delinquent debt” means any debt that an agency has notified18
a debtor is owed but the debt remains unpaid, due, or negotiable for a period of sixty19
days or more and such debt is not final and the debtor has further administrative or20
judicial review rights to challenge the validity of the debt or the amount owed.21
(8) "Office" means the office of debt recovery within the Department of22
Revenue.23
(9) "Secretary" means the secretary of the Department of Revenue.24
C.(1) Notwithstanding any other provision of law to the contrary, in addition25
to any duties, powers, or responsibilities otherwise conferred, the secretary of the26
Department of Revenue, through the office of debt recovery, shall collect and27
enforce certain delinquent debts due to agencies according to rules promulgated by28
the department.29 ENROLLEDHB NO. 629
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(2)(a) No later than January 1, 2014, agencies which do not have collection1
contracts with the attorney general's office for the collection of delinquent debts shall2
refer all delinquent debts to the office as provided by rule. Such referrals shall3
include data and information in the required format necessary to institute collection4
procedures. All delinquent debts shall be authenticated by the agency or5
participating political subdivision or officer prior to being referred to the office.6
Once the debt becomes final, and prior to referral to the office, the agency shall7
notify the debtor that failure to pay the debt in full within sixty days shall subject the8
debt to an additional collection fee as provided for in this Section. All agencies shall9
refer non-final delinquent debts to the attorney general’s office for collection when10
the debt has been delinquent for sixty days pursuant to the referral guidelines11
established by the attorney general as incorporated into agreements between the12
attorney general and other agencies or pursuant to the rules promulgated by the13
attorney general pursuant to the Administrative Procedure Act. Such non-final14
delinquent debts shall be authenticated by the agency prior to their referral to the15
attorney general.16
(b) After transferring the debt to the office for collection, the referring17
agency shall terminate all collection activities with respect to that debt except to18
provide assistance to the office as may be requested. The department shall notify the19
debtor by letter, within fifteen days of receiving the referral, that such debt has been20
referred to the office for collection. Upon receipt of the debt referral, the office shall21
assume all liability for its actions without recourse to the agency and shall comply22
with all applicable state and federal laws governing the collection of the debt. For23
purposes of this Section, the office shall not be considered a collection agency as24
defined in R.S. 9:3534.1.25
(3) At the discretion of the secretary, the department may contract with the26
attorney general's office or a third-party collection contractor for the collection of27
delinquent debt on behalf of the office. However, any contract entered into by the28
secretary for the collection of delinquent debt on behalf of the state shall be subject29
to review by the Cash Management Review Board. Additionally, the Legislative30 ENROLLEDHB NO. 629
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Auditor shall have authority to conduct audits of such contracts in accordance with1
the law.2
(4) If, in the course of collecting delinquent debt, the secretary determines3
that the office requires the additional assistance of legal counsel, the secretary shall4
first seek assistance from the office of the attorney general. If the office of the5
attorney general is unable to or declines to offer legal counsel, the secretary is6
authorized to contract with a third-party for such services. Additionally, the7
legislative auditor shall have authority to conduct audits of such contracts in8
accordance with the law.9
D.(1) Notwithstanding any other provision of law to the contrary, the10
secretary of the Department of Revenue may treat a delinquent debt referral in the11
same manner as an assessment that has become final without restriction or delay.12
The secretary, through the office, may use any collection remedy provided by state13
law to facilitate the collection of taxes to collect the delinquent debt; however, the14
financial institution data match shall only be used in accordance with the provisions15
of R.S. 47:1677. The office may use a participating agency's statutory collection16
authority to collect the participating agency's or participating political subdivision's17
delinquent debts owed to or being collected by the state or participating political18
subdivision. The office may also use authority granted in R.S. 47:299.3 regarding19
offset from income tax refunds or other accounts payable by the state for any20
delinquent debt transferred by agencies and political subdivisions. The secretary has21
the discretion to determine which method or combination thereof is most suitable to22
collect the delinquent debt.23
(2) The department and the office may establish and use an electronic24
financial institution data match system as authorized in R.S. 47:1677 for comparison25
of certain account information held by financial institutions with the department and26
office's databases of state tax and state nontax debtors against whom an assessment27
or judgment for debt owed to the state has become final.28
(3)(a) The office shall be granted and may exercise the authority granted in29
R.S. 47:296.2 and 296.3.30 ENROLLEDHB NO. 629
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(b)(i) The office may also submit a request for the suspension, revocation or1
denial of any type of professional or other license, permit, or certification to a2
Louisiana entity or body that governs, regulates, or issues such licenses, permits or3
certifications for the exercise or practice of certain professions, trades, or any other4
kind of work being performed in Louisiana.5
(ii) In exercising the authority provided for in this Paragraph or in R.S.6
47:296.2 or 296.3, the office may assume the obligation for the payment of such7
services in order to collect delinquent debt.8
(c) The legislature hereby recognizes the judicial power vested in the state9
supreme court pursuant to Article V, Section I of the Constitution of Louisiana to10
regulate the practice of law and accordingly, and requests that the supreme court11
consider rules and regulations relative to attorneys licensed to practice law consistent12
with the provisions of this Chapter.13
E. The office shall charge the debtor a fee not to exceed twenty-five percent14
of the total liability of debt which has become final after the initial effective date of15
this Section. The amount of the fee shall be established by rule promulgated by the16
department and shall be uniformly applied to all debts. Fees collected under this17
Subsection shall be retained by the office after the debt is collected and shall be18
divided in accordance with an agreement between the office and the office of the19
attorney general after payment of costs set forth in the agreement. Monies collected20
by the office pursuant to the provisions of this Section shall be transferred to the21
referring agency within thirty days after the end of the month in which the monies22
were collected and shall be used by such agency as they would have been had they23
been timely collected. However, any monies collected for delinquent debt as a result24
of nonpayment of tax liabilities pursuant to Title 47 of the Louisiana Revised25
Statutes of 1950, as amended, after deposit into the state general fund, the first five26
million dollars shall be appropriated by the legislature beginning in Fiscal Year27
2013-2014, and for four consecutive fiscal years thereafter, to the Office of State28
Police for a training academy class.29 ENROLLEDHB NO. 629
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F.(1) Notwithstanding any law to the contrary, agencies shall be authorized1
to transmit data to the office of debt recovery deemed necessary by the secretary to2
aid in the collection efforts of the office. The secretary shall establish a centralized3
electronic debt registry to compile the information provided by agencies and shall4
maintain all information provided from all sources within the state concerning5
addresses, financial records, and any other information useful in assisting the office6
in collection services of the centralized registry. The data compiled in the registry7
from the department, referring agencies, and the office shall be available for cross-8
referencing and for the identification of debtors necessary for the collection of9
delinquent debt.10
(2) All data, records, and files utilized for debt collection as provided herein11
shall be deemed confidential and privileged, and no person shall divulge or disclose12
any information obtained from such records and files except in the administration13
and enforcement of these provisions. Compilation of tax data in the electronic14
registry by the department shall not be a violation of R.S. 47:1508, and any15
information or data gathered by the department and the office in accordance with the16
law may be used for purposes of collecting tax and nontax debt. Except as provided17
for in R.S. 47:1508 et seq., or in any other applicable provision of law, information18
concerning the identity of a debtor, the amount of the debt owed, and the amount of19
any collections or settlements shall be a public record subject to disclosure under the20
Public Records Law, R.S. 44:1 et seq.21
(3) The attorney general shall have access to all data and information22
compiled which is needed for further debt collection and accounting pursuant to this23
Section.24
G. The secretary shall promulgate rules and regulations in accordance with25
the Administrative Procedure Act to implement the provisions of this Section,26
including rules authorizing any reasonable procedure or requirement for agencies27
referring delinquent debt to the department for collection, requirements regarding28
information necessary to collect the debt and the formatting of that information, and29 ENROLLEDHB NO. 629
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the priority or ranking of debt payments against multiple agency debts. Any rule1
promulgated by the department shall be construed in favor of the secretary.2
H. Reciprocal debt collection agreement with federal government. The3
secretary may enter into one or more reciprocal collection and offset of indebtedness4
agreements with the federal government, pursuant to which the state shall agree to5
offset from state tax refunds and payments otherwise due to vendors and contractors6
providing goods or services to agencies, non-tax debt owed to the federal7
government, and the federal government shall agree to offset from federal payments8
to vendors, contractors, and taxpayers debt owed to the state. The secretary shall9
include all eligible collection accounts placed with the attorney general’s office for10
all available offsets.11
I. After the office exercises and employs its collection methods and tools, it12
shall evaluate and recommend any uncollectible debt for sale or securitization in13
accordance with the provisions of R.S. 39:88.2 and 88.3.14
J. The operations of the office shall be subject to annual review by the Cash15
Management Review Board.16
§1677. Financial Institution Data Match17
A. A financial institution or its processor shall provide to the department or18
the office, the name, record address, social security number or other taxpayer19
identification number, any other identifying information, and an average daily20
account balance for the most recent thirty-day period, for each calendar quarter for21
each account owner who maintains an account at such institution and who the office22
purports is a tax or nontax debtor.23
B. For purposes of this Section, the following words or phrases shall have24
the following meanings unless the context clearly indicates otherwise:25
(1) "Account" shall mean any money held in the name of an account owner,26
individually or jointly with another, including but not limited to a deposit account,27
demand account, savings account, negotiable order of withdrawal account (NOW28
account), share account, member account, time certificate of deposit, or money29
market account. "Account" shall not include money held by a financial institution30 ENROLLEDHB NO. 629
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where the tax or nontax debtor is listed in a capacity other than owner, such as an1
authorized signer only, custodian, tutor, or agent.2
(2) "Financial institution" shall mean a state or federally chartered bank,3
savings bank, savings and loan association, or credit union operating in this state4
with a main office or one or more branch offices.5
(3) "Nontax debtor" shall mean an individual against whom an assessment6
or judgment for a debt owed to the state has become final and is currently7
enforceable in accordance with the law.8
(4) "Tax debtor" shall mean an individual against whom an assessment or9
judgment for state taxes payable has become final and is currently enforceable in10
accordance with law.11
C.(1) If a financial institution or its processor has a current data match12
system developed or used to comply with the child support data match system13
provided for in R.S. 46:236.1.4, the financial institution or its processor may use that14
system to comply with the provisions of this Section. The office shall not require a15
financial institution or its processor to change their data match system or file format16
established under R.S. 46: 236.1.4 in order to comply with this Section.17
(2) For Louisiana domiciled financial institutions having no branch offices18
outside the state, the office or its data match vendor shall ensure that compliance19
with both the provisions of this Section and R.S. 46:236.1.4 may be accomplished20
with a single data match file. Louisiana domiciled institutions having no branch21
offices outside the state, or their processor, shall not be required to process multiple22
data match files to comply with this Section.23
D. A financial institution may, but is not required to, disclose to its24
depositors or account holders that the department or the office has the authority to25
request and receive certain identifying information provided for in this Section for26
state tax and nontax debt collection purposes.27
E.(1) No financial institution, including its directors, officers, employees,28
attorneys, accountants, or other agents, shall incur liability to any person, including29
any depositor or other customer, as a result of providing account information to the30 ENROLLEDHB NO. 629
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department or office in compliance with a request that conforms to the provisions of1
this Section.2
(2) A financial institution, including any of its directors, officers, employees,3
attorneys, accountants, or other agents, shall not be civilly or criminally liable to any4
person, including any customer, for any disclosure of information made in5
accordance with this Section, including any disclosure of account balances.6
F.(1) Notwithstanding any other law or rule to the contrary, the department7
or office shall pay a participation fee to each financial institution that actually8
receives a data match request file. The participation fee to a financial institution9
shall be for actual costs incurred for conducting the data match and otherwise10
complying with the provisions of this Section. Actual costs incurred for complying11
with this Section shall be the total cost incurred by the financial institution to process12
all data match request files under R.S. 46:236.1.4 and this Section minus the costs13
incurred to process data match request files under R.S. 46:236.1.4. In order to14
receive the participation fee authorized by this Section, the financial institution must15
be FDIC insured.16
(2) Before a financial institution receives a participation fee, the financial17
institution must show it has incurred costs under R.S. 46:236.1.4 and this Section.18
The department or office may require a financial institution to submit paperwork19
such as invoices and other documentation to substantiate the costs that have been20
incurred. After actual costs are established by a financial institution under Paragraph21
(1) of this Subsection through submitted paperwork, the office shall automatically22
remit payment to the financial institution on a quarterly basis without the financial23
institution having to resubmit additional paperwork each quarter thereafter.24
However, the office may request additional paperwork from a financial institution25
on a periodic basis, not to exceed once every two years, to verify their actual costs26
in complying with this Section.27
(3) Notwithstanding any other law or rule to the contrary, if a financial28
institution assesses a fee to its customer for processing a state tax or state nontax levy29
received from the office or the department, the fee shall be collected by the financial30 ENROLLEDHB NO. 629
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institution from the proceeds of the customer's account before any account proceeds1
are remitted to the office or the department to satisfy the state tax or state nontax2
levy.3
(4) Any fees paid under this Section shall not be comprised of or constitute4
any amounts due to a financial institution for its compliance with R.S. 46:236.1.4.5
The department or office shall be responsible for the reconciliation and tracking of6
data and information regarding the number of sent data match request files, received7
completed data match accounts, and amounts paid in accordance with this Section.8
The department shall also be responsible for tracking and reporting all statistical9
information regarding financial data match activities to the commissioner of10
administration or his designee every six months and to report the information to the11
Joint Legislative Committee on the Budget every session prior to the last day of each12
legislative session.13
G. The department, office, and their designated vendor for the data match14
program, shall keep all information received from financial institutions pursuant to15
this Section confidential, and any employee, agent, or representative of the16
department, office, and their designated vendor is prohibited from disclosing that17
information to any other third party.18
H. The department or office shall generally conduct the data match program19
provided for in this Section on a quarterly basis. However, if the department or20
office decides to conduct data match with a particular financial institution less21
frequently than every quarter, the department or office shall provide written notice22
to the chief operating officer of the financial institution at least ninety days before23
the next scheduled quarterly data match date. If the department or office provides24
the required notice to change the frequency of data match, the department or office25
shall not further change the frequency of data match with that financial institution26
for at least one year from the date written notice was provided to the financial27
institution originally changing the frequency of the data match schedule. After the28
one year period has elapsed, any subsequent changes to the frequency of the data29
match schedule with a financial institution shall also be done by the department or30 ENROLLEDHB NO. 629
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office only after providing written notice to the chief operating officer of the1
financial institution at least ninety days in advance of the next data match date.2
Section 4. This Act shall become effective upon signature by the governor or, if not3
signed by the governor, upon expiration of the time for bills to become law without signature4
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If5
vetoed by the governor and subsequently approved by the legislature, this Act shall become6
effective on the day following such approval.7
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: