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Regular Session, 2014
HOUSE BILL NO. 309
BY REPRESENTATIVE SMITH
REVENUE DEPARTMENT: Requires the issuance of an economic hardship license under
certain circumstances if a driver's license has been suspended or denied renewal for
failure to pay individual income taxes
AN ACT1
To amend and reenact R.S. 32:414(R) and R.S. 47:296.2(A), relative to individual income2
tax; to provide relative to the authority of the Department of Revenue to collect3
unpaid individual income tax; to require an investigation and issuance of an4
economic hardship license under certain circumstances if a driver's license has been5
suspended or renewal denied for unpaid individual income tax; to provide for certain6
limitations; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 32:414(R) is hereby amended and reenacted to read as follows: 9
§414. Suspension, revocation, renewal, and cancellation of licenses; judicial review10
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R.(1) The secretary of the Department of Public Safety and Corrections shall12
suspend and deny the renewal of a taxpayer's driver's license when notified by the13
Department of Revenue that the department has an assessment or judgment against14
the individual that has become final and nonappealable.15
(2) The reinstatement and renewal of a taxpayer's driver's license shall be16
denied until such time as the individual has paid or made arrangements to pay the17
delinquent tax, interest, penalty, and all costs and the Department of Revenue18 HLS 14RS-529 ENGROSSED
HB NO. 309
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notifies the Department of Public Safety and Corrections, office of motor vehicles,1
of the payment or arrangement to pay.2
(3) (2) The Department of Public Safety and Corrections, office of motor3
vehicles, shall not issue an economic hardship license when an individual's driver's4
license is suspended and has not been renewed under the provisions of this Section,5
if the licensee alleges that suspension of his driving privileges will deprive him or6
his family from earning a livelihood. The Department of Public Safety and7
Corrections, office of motor vehicles, in conjunction with the Department of8
Revenue, shall promptly investigate the allegation made by the licensee. If the office9
of motor vehicles finds the allegation to be true, the office of motor vehicles shall10
issue an economic hardship license for the period of the suspension provided for in11
R.S. 47:296.2. The economic hardship license shall authorize the licensee to operate12
a motor vehicle on streets or watercraft or waterways of the state which enable the13
licensee to earn his livelihood and such operation shall be restricted to times during14
which he is involved in earning a livelihood. The licensee shall be responsible for15
promptly notifying the office of motor vehicles and the Department of Revenue if,16
during the period of suspension, any circumstance changes which necessitates a17
change in the original restrictions imposed by the office of motor vehicles. Notice18
of the restriction shall be attached to the license.19
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Section 2. R.S. 47:296.2(A) is hereby amended and reenacted to read as follows: 21
§296.2. Suspension and denial of renewal of drivers' licenses; economic hardship22
license; restrictions23
A.(1) A suspension and driver's license shall be suspended or renewal of a24
driver's license shall be denied if the Department of Revenue has an assessment or25
judgment against an individual that has become final and nonappealable if the26
amount of the final assessment or final judgment is in excess of one thousand dollars27
of individual income tax, exclusive of penalty, interest, costs, and other charges.28 HLS 14RS-529 ENGROSSED
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(2) However, if the licensee alleges that suspension of his driving privileges1
will deprive him or his family from earning a livelihood, the Department of Revenue,2
in conjunction with the Department of Public Safety and Corrections, office of motor3
vehicles, shall promptly investigate the allegation made by the licensee. If the4
allegation is found to be true, the licensee shall be issued an economic hardship5
license for the period of the suspension provided for in Subsection B of this Section.6
The economic hardship license shall authorize the licensee to operate a motor vehicle7
on streets or watercraft or waterways of the state which enable the licensee to earn8
his livelihood and such operation shall be restricted to times during which he is9
involved in earning a livelihood. The licensee shall be responsible for promptly10
notifying the office of motor vehicles and the Department of Revenue if, during the11
period of suspension, any circumstance changes which necessitates a change in the12
original restrictions imposed by the office of motor vehicles.13
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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)]
Smith HB No. 309
Abstract: Requires the issuance of an economic hardship license if the suspension of, or
denial of renewal of a driver's license for failure to pay individual income taxes will
deprive the licensee of earning a livelihood.
Present law requires the suspension of or denial of renewal of a driver's license if the Dept.
of Revenue (DOR) has a final, nonappealable assessment or judgment against an individual
in excess of $1,000 of individual income tax, exclusive of penalty, interest, and other
charges. The suspension shall be effective until the taxpayer pays or makes arrangements
to pay the delinquent tax, interest, penalty, and all costs and DOR notifies the office of motor
vehicles (OMV) of the payment or arrangement to pay.
Present law prohibits OMV from issuing an economic hardship license when an individual's
driver's license has been suspended or renewal denied for failure to pay individual income
taxes.
Proposed law changes present law to delete the prohibition of issuance of an economic
hardship license in cases where a driver's license is suspended or renewal denied for failure
to pay individual income taxes.
Proposed law authorizes the issuance of an economic hardship license if a licensee alleges
that suspension of his driving privileges will deprive him or his family from earning a HLS 14RS-529 ENGROSSED
HB NO. 309
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livelihood. Proposed law requires DOR and OMV to investigate the allegation made by the
licensee and, if found to be true, the licensee shall be issued an economic hardship license
for the period of the suspension provided for in present law. The economic hardship license
authorizes the licensee to operate a motor vehicle or watercraft which enable the licensee to
earn his livelihood and such operation is restricted to times during which he is involved in
earning a livelihood. Further requires the licensee to notify OMV and DOR if, during the
period of suspension, any circumstance changes which necessitates a change in the original
restrictions imposed by OMV.
(Amends R.S. 32:414(R) and R.S. 47:296.2(A))