HLS 15RS-815 ENGROSSED
2015 Regular Session
HOUSE BILL NO. 357
BY REPRESENTATIVE RITCHIE
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
BANKS/BANKING: Provides with respect to banks and financial institutions
1 AN ACT
2To amend and reenact R.S. 6:333(F)(14) and (18), R.S. 46:236.1.4(A) and (C), and R.S.
3 47:1677(A) and (F)(2), relative to financial disclosure authorizations; to require
4 banks or their subsidiaries or affiliates to disclose certain information; to authorize
5 financial institutions to provide certain information of joint account holders to the
6 Department of Revenue; to authorize financial institutions to provide certain
7 information of joint account holders to the Department of Children and Family
8 Services; to provide for the payment of the reimbursement fee received by financial
9 institutions conducting data match; to provide relative to the participation fee
10 payment from the Department of Revenue; and to provide for related matters.
11Be it enacted by the Legislature of Louisiana:
12 Section 1. R.S. 6:333(F)(14) and (18) are hereby amended and reenacted to read as
13follows:
14 §333. Disclosure of financial records; reimbursement of costs
15 * * *
16 F. The following disclosures by a bank or any affiliate are hereby
17 specifically authorized and, except as otherwise provided in this Subsection, nothing
18 in this Section shall prohibit, restrict, or otherwise apply to:
19 * * *
20 (14) The disclosure by a bank or any affiliate of data match information on
21 an individual to the secretary of the Department of Children and Family Services, or
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HB NO. 357
1 his designee in the office of children and family services, child support enforcement
2 section, for use in attempting to establish, modify, or enforce a child support
3 obligation of such individual. Such disclosure to the department shall be limited to
4 the name, record address, social security or taxpayer identification number, and an
5 average daily account balance for the most recent thirty-day period, of a noncustodial
6 parent who maintains an account at such institution and who owes past-due support
7 as identified by the state by name and social security or taxpayer identification
8 number. The disclosure authorization provided for in this Paragraph shall apply to
9 all co-owners listed on the applicable account.
10 * * *
11 (18) The disclosure by a bank or any of its subsidiaries or affiliates of data
12 match information on an account owner to the secretary of the Department of
13 Revenue, and his or her designee in the office of debt recovery, for use in attempting
14 to enforce a final tax or non-tax assessment or judgment against such individual or
15 entity. Such disclosure to the department or office shall be limited to the name,
16 record address, social security or taxpayer identification number, other identifying
17 information, and an average daily account balance for the most recent thirty-day
18 period, of a state tax or state non-tax debtor who maintains an account or is a
19 customer at such institution and who purportedly owes a final state tax or state non-
20 tax assessment or judgment. The disclosure authorization provided for in this
21 Paragraph shall apply to all co-owners listed on the applicable account.
22 * * *
23 Section 2. R.S. 46:236.1.4(A) and (C) are hereby amended and reenacted to read as
24follows:
25 §236.1.4. Family and child support programs; financial institution duties;
26 responsibilities
27 A. A financial institution shall provide the name, record address, social
28 security number or other taxpayer identification number, other identifying
29 information and an average daily account balance for the most recent thirty-day
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HB NO. 357
1 period for each calendar quarter for each noncustodial parent who maintains an
2 account at such institution and who owes past due support. A financial institution
3 may provide the information described in this Subsection pertaining to any co-owner
4 listed on the applicable account.
5 * * *
6 C. The Department of Children and Family Services may pay a reasonable
7 reimbursement fee to a financial institution for conducting the data match, not to
8 exceed the actual costs incurred by such financial institution. The reimbursement fee
9 may be paid quarterly or annually at the end of the state fiscal year upon request of
10 any financial institution. The department may require documentation proving actual
11 cost incurred for all quarters once per state fiscal year. A financial institution
12 complying with this Section shall be reimbursed for all quarters in a state fiscal year
13 for which it complies with this Section and submits invoices by July 15 following the
14 end of the state fiscal year.
15 * * *
16 Section 3. R.S. 47:1677(A) and (F)(2) are hereby amended and reenacted to read as
17follows:
18 §1677. Financial institution data match
19 A. A financial institution or its processor shall provide to the department or
20 the office, the name, record address, social security number or other taxpayer
21 identification number, any other identifying information, and an average daily
22 account balance for the most recent thirty-day period, for each calendar quarter for
23 each account owner who maintains an account at such institution and who the office
24 purports is a tax or nontax debtor. A financial institution may also provide the
25 information described in this Subsection pertaining to any co-owner of such account.
26 * * *
27 F.
28 * * *
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HB NO. 357
1 (2) Before a financial institution receives a participation fee, the financial
2 institution must show it has incurred costs under R.S. 46:236.1.4 and this Section.
3 The department or office may require a financial institution to submit paperwork
4 such as invoices and other documentation to substantiate the costs that have been
5 incurred. After actual costs are established by a financial institution under Paragraph
6 (1) of this Subsection through submitted paperwork, the office shall automatically
7 remit payment to the financial institution on a quarterly basis without the financial
8 institution having to resubmit additional paperwork each quarter thereafter.
9 However, the office may request additional paperwork from a financial institution
10 on a periodic basis, not to exceed once every two years, to verify their actual costs
11 in complying with this Section. The participation fee provided for in this Subsection
12 shall be paid annually at the end of the state fiscal year upon request of any financial
13 institution that submits invoices or other documentation showing actual costs
14 incurred in compliance with this Section. The department shall require invoices or
15 other documentation proving actual costs incurred to be submitted once per state
16 fiscal year. In all circumstances, a financial institution complying with this Section
17 shall be reimbursed its actual costs for all quarters in a state fiscal year for which it
18 complies with this Section.
19 * * *
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)]
HB 357 Engrossed 2015 Regular Session Ritchie
Abstract: Requires certain financial disclosures of banks and financial institutions relative
to data match and the respective institutions' receipt of applicable fees.
Present law requires financial institution data match (FIDM), a partnership between a child
support program and the state's financial institutions to identify financial accounts belonging
to delinquent obligors.
Present law authorizes a bank or any affiliate of data match to disclose certain account
information of individuals to the secretary of the Department of Children and Family
Services (DCFS) or his designee in the office of children and family services, child support
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HB NO. 357
enforcement section, for the purposes of establishing, modifying, or enforcing a child
support obligation.
Present law limits such disclosures to the name, record address, social security or taxpayer
ID number, and an average daily account balance for the most recent 30-day period of a
noncustodial parent who maintains an account with the bank or affiliate and who owes past-
due support as identified by the state by the noncustodial parent's name and social security
or taxpayer ID number. Proposed law retains present law and requires the disclosure
authorization of present law to be made applicable to all persons who co-own an account
with the noncustodial parent.
Present law authorizes a bank or its subsidiary or affiliate of data match to disclose certain
account information of individuals to the secretary of the Department of Revenue (DOR) or
his designee in the office of debt recovery, hereinafter "office", within the DOR, for
purposes of enforcing a final tax or non-tax assessment or judgment against the individual
or entity.
Present law limits such disclosures to the name, record address, social security or taxpayer
ID number, other identifying information, and an average daily account balance for the most
recent 30-day period of person who is: (1) a state tax or state non-tax debtor who maintains
an account or (2) a customer of the bank, subsidiary, or affiliate, who purportedly owes a
final state tax or state non-tax assessment or judgment. Proposed law retains present law and
requires the disclosure authorization of present law to be made applicable to all persons who
co-own an account with the state tax or state non-tax debtor, or customer.
Present law requires financial institutions to disclose to DCFS the name, record address,
social security or taxpayer ID number, other identifying information, and an average daily
account balance for the most recent 30-day period for each calendar quarter for each
noncustodial parent owing past due support and who maintains an account at the financial
institution. Proposed law retains present law and authorizes financial institutions to make
the disclosures of present law applicable to all persons who co-own an account with the
noncustodial parent.
Present law authorizes DCFS to pay a financial institution a reasonable fee not exceeding
the actual cost incurred by such financial institution for conducting the data match.
Proposed law retains present law and provides for the fee to be a reasonable reimbursement
fee.
Proposed law authorizes the reimbursement fee to be paid quarterly or annually at the end
of the state fiscal year upon request of any financial institution. Provides that DCFS may
require documentation proving actual cost incurred for all quarters once per state fiscal year.
Requires DCFS to reimburse a financial institution for all quarters in a state fiscal year that
such financial institution complies with the provisions of both present law and proposed law,
which includes the submission of invoices to DCFS by July 15 following the end of the state
fiscal year.
Present law requires a financial institution or its processor to provide the DOR or office with
the name, record address, social security or taxpayer ID 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 the financial institution
and who the office purports is a tax or nontax debtor. Proposed law retains present law and
authorizes a financial institution to provide this information for all persons who co-own an
account with the purported tax or nontax debtor.
Present law requires the DOR or office to pay a participation fee to each financial institution
that actually receives a data match request file. Further requires the participation fee to be
paid for actual costs incurred for conducting the data match. To receive the participation fee,
the financial institution must be FDIC insured. Proposed law retains present law.
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HB NO. 357
Present law requires a financial institution to show that it has incurred costs under present
law prior to receiving a participation fee. Further authorizes the DOR or office to require
a financial institution to submit paperwork such as invoices and other documentation to
substantiate the cost incurred. After actual costs are established by a financial institution,
the office is required to automatically remit payment to the financial institution on a
quarterly basis without the financial institution having to resubmit additional paperwork each
quarter, though the office may periodically request additional paperwork, but not more than
once every two years for the purpose of verifying actual costs incurred by the financial
institution. Proposed law deletes this provision of present law.
Proposed law requires the participation fee to be paid annually at the end of the state fiscal
year upon request of any financial institution submitting invoices or other documentation
showing actual cost incurred in compliance with present law and proposed law. Further
provides that DOR can require invoices or other documentation proving actual cost incurred
to be submitted once per state fiscal year. In all circumstances, a financial institution that
complies with present law and proposed law is required to be reimbursed by DOR its actual
cost for all quarters in a state fiscal year that it complies with the provisions of present law
and proposed law.
(Amends R.S. 6:333(F)(14) and (18), R.S. 46:236.1.4(A) and (C), and R.S. 47:1677(A) and
(F)(2))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the
original bill:
1. Restore present law that authorizes DCFS to pay a reasonable reimbursement fee
to a financial institution not to exceed actual cost incurred by such institution for
conducting data match.
2. Authorize the reimbursement fee to be paid quarterly or annually at the end of
the state fiscal year upon request of such financial institution.
3. Provide that DCFS may require documentation proving actual cost incurred for
all quarters once per state fiscal year.
4. Require DCFS to reimburse a financial institution for all quarters in a state fiscal
year that such financial institution complies with the provisions of both present
law and proposed law, including the submission of invoices to DCFS by July 15
following the end of the state fiscal year.
5. Make technical changes.
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