Ritchie HB No. 357
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
BANKS/BANKING: Provides with respect to banks and financial institutions
DIGEST
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.
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
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Prepared by Michelle Ducharme. 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.
Proposed law provides that at the discretion of the secretary of DOR, the department or office
and DCFS may enter into an agreement to share the costs of reimbursement fees paid to
financial institutions for complying with financial institution data match laws pursuant to
present law. As part of any such agreement, the department shall make reimbursement out
of current allocations.
(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.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the engrossed bill
1. Deletes certain provisions relative to obtaining information from financial
institutions.
2. Authorizes DOR and DCFS to enter into an agreement to share costs for
reimbursement of actual costs to financial institutions for compliance with
financial institution data match laws.
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Prepared by Michelle Ducharme.