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 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.
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.