HLS 16RS-2894 ORIGINAL 2016 Regular Session HOUSE BILL NO. 1152 (Substitute for House Bill No. 1063 by Representative Robby Carter) BY REPRESENTATIVE ROBBY CARTER MOTOR VEHICLES: Places a monetary limitation on the amount of certain debt owed to the office of motor vehicles in certain circumstances 1 AN ACT 2To amend and reenact R.S. 32:8(B), 57.1(C), 863(A)(3)(a), and 863.1(C)(1)(b) and to enact 3 R.S. 47:1676(L), relative to debt owed to the office of motor vehicles; to limit the 4 amount of debt that may be owed to the office of motor vehicles in certain 5 circumstances; and to provide for related matters. 6Be it enacted by the Legislature of Louisiana: 7 Section 1. R.S. 32:8(B), 57.1(C), 863(A)(3)(a), and 863.1(C)(1)(b) are hereby 8amended and reenacted to read as follows: 9 §8. Final delinquent debt; office of motor vehicles 10 * * * 11 B. The office of motor vehicles shall refer all final delinquent debts to the 12 office of debt recovery as provided in R.S. 47:1676. Final delinquent debt referrals 13 shall include data and information in the required format necessary to institute 14 collection procedures. All delinquent debts shall be authenticated by the office of 15 motor vehicles prior to being referred to the office of debt recovery. Once the 16 delinquent debt becomes final, and prior to referral to the office of debt recovery, 17 the office of motor vehicles shall notify the debtor in writing that failure to pay the 18 debt in full within sixty days shall subject the debt to the maximum amount owed Page 1 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-2894 ORIGINAL HB NO. 1152 1 together with the additional fee collected by the office of debt recovery provided for 2 in R.S. 47:1676. However, if a debtor has multiple violations of R.S. 32:57.1, 863, 3 or 863.1, or any combination thereof, the total amount of final delinquent debt, as 4 defined by R.S. 32:8, shall not exceed five thousand dollars, inclusive of the 5 additional fee collected by the office of debt recovery as provided by R.S. 47:1676. 6 * * * 7 §57.1. Failure to honor written promise to appear; penalty; disposition of fines 8 * * * 9 C.(1) If after sixty calendar days from the date of receipt of the notification 10 issued by the Department of Public Safety and Corrections as required in Subsection 11 A of this Section by R.S. 32:8, the arrested person has failed to comply, the fees 12 provided for in this Section shall be considered final delinquent debt. 13 (2) However, if a debtor has multiple violations of R.S. 32:57.1, 863, or 14 863.1, or any combination thereof, the total amount of final delinquent debt, as 15 defined by R.S. 32:8, shall not exceed five thousand dollars, inclusive of the 16 additional fee collected by the office of debt recovery as provided for in R.S. 17 47:1676. 18 * * * 19 §863. Sanctions for false declaration; reinstatement fees; revocation of registration; 20 review 21 A. 22 * * * 23 (3)(a) Sanctions for a violation of Paragraph (1) of this Subsection shall be 24 imposed until proof of required liability security is provided to the secretary and all 25 reinstatement fees are paid. Sanctions for a violation of Paragraph (2) of this 26 Subsection shall be imposed for a period of not less than twelve months nor more 27 than eighteen months. However, in no event shall these sanctions be removed until 28 such time as proof of the required security is provided to the secretary along with all 29 appropriate fees required by law, including a reinstatement fee of one hundred Page 2 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-2894 ORIGINAL HB NO. 1152 1 dollars per violation of Paragraph (1) of this Subsection if the vehicle was not 2 covered by the required security for a period of one to thirty days, two hundred fifty 3 dollars if the vehicle was not covered by required security for a period of thirty-one 4 to ninety days, and five hundred dollars if the vehicle was not covered by required 5 security for a period in excess of ninety days. No reinstatement fee shall be imposed 6 by the secretary if the vehicle was not covered by required security for a period of 7 ten days or less and the insured surrenders the vehicle's license plate to the secretary 8 within ten days. The reinstatement fees for violations of Paragraph (2) of this 9 Subsection shall be as follows: two hundred fifty dollars for a first violation, five 10 hundred dollars for a second violation, and one thousand dollars for a third or 11 subsequent violation. The reinstatement fee shall not be owed for an alleged 12 violation of Paragraph (2) of this Subsection when proof of the required security is 13 provided to the secretary within sixty days of the date of the notice. If at the time of 14 reinstatement, a person has multiple violations and is within sixty days of the notice, 15 the total amount of fees to be paid shall not exceed eight hundred fifty dollars, for 16 violations of Paragraph (1) of this Subsection, one thousand seventy-five dollars for 17 violations of Paragraph (2) of this Subsection. At no time shall the total amount of 18 fees, including administrative fees, exceed two hundred fifty dollars for persons 19 sixty-five years or older. After sixty days of the date of the notice, all fees shall be 20 considered final delinquent debt and therefore owed, and the eight hundred fifty 21 dollar limit for persons under sixty-five years shall no longer apply. However, if the 22 debtor has multiple violations of R.S. 32:57.1, 863, or 863.1, or any combination 23 thereof, the total amount of final delinquent debt, as defined by R.S. 32:8, shall not 24 exceed five thousand dollars, inclusive of the additional fee collected by the office 25 of debt recovery as provided for in R.S. 47:1676. 26 * * * 27 §863.1. Evidence of compulsory motor vehicle liability security contained in 28 vehicle; enforcement; penalty; fees 29 * * * Page 3 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-2894 ORIGINAL HB NO. 1152 1 C.(1) 2 * * * 3 (b) The owner of the vehicle shall have three calendar days, excluding 4 Saturdays, Sundays, and legal holidays, from the date that the notice of 5 noncompliance was issued to present to the office of motor vehicles proof of 6 insurance coverage or security in effect at the time of the issuance of the notice of 7 noncompliance. If the vehicle was properly insured at the time the notice was issued, 8 any valid license plate shall be returned within forty-eight hours, exclusive of legal 9 holidays, to the owner of the vehicle at no cost to the owner. However, if, within 10 sixty days from the date the notice of noncompliance is issued, the owner fails to 11 provide proof of the fact that the vehicle was properly insured at the time the notice 12 of noncompliance was issued, the chief administrative officer of the office of motor 13 vehicles shall destroy, or shall cause to be destroyed, the license plate removed from 14 that owner's vehicle and shall notify the secretary that the owner of the vehicle is not 15 in compliance with the compulsory liability law. Upon receipt of such notification, 16 the secretary shall revoke the registration of such vehicle. Sixty days after the date 17 of issuance of the notice of noncompliance, the fees imposed in this Section shall be 18 owed even if the owner subsequently provides proof the motor vehicle was insured, 19 and all such fees shall be considered final delinquent debt. In the event that the 20 debtor has multiple violations of R.S. 32:57.1, 863, or 863.1, or any combination 21 thereof, the total amount of final delinquent debt, as defined by R.S. 32:8, shall not 22 exceed five thousand dollars, inclusive of the additional fee collected by the office 23 of debt recovery as provided for in R.S. 47:1676. 24 * * * 25 Section 2. R.S. 47:1676(L) is hereby enacted to read as follows: 26 §1676. Debt recovery 27 * * * 28 L. Notwithstanding any provision of the contrary, in the event that a debtor 29 has multiple violations of R.S. 32:57.1, 863, or 863.1, or any combination thereof, Page 4 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-2894 ORIGINAL HB NO. 1152 1 the total amount of final delinquent debt, as defined by R.S. 32:8, owed to the office 2 of motor vehicles to be collected by the office of debt recovery shall not exceed five 3 thousand dollars, inclusive of the collection fee for the office of debt recovery 4 provided for in this Section. 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 1152 Original 2016 Regular Session Robby Carter Abstract: Places a maximum on the amount of debt owed to the office of motor vehicles in certain circumstances. Present law requires that the office of motor vehicles to assess certain fees upon the owner of an automobile for failure to maintain the minimum limits of liability insurance and for failure to provide proof of insurance. Further provides that the office of motor vehicles shall assess fees for failure to honor a written promise to appear before a magistrate or judge. Present law provides that failure to pay such debt within 30 days of the final notice causes certain fees to be declared final delinquent debt, turned over to the office of debt recovery, and increased to the maximum amount owed together with an additional 25% collection fee to be retained by the office of debt recovery. Proposed law provides that in the event that a debtor has multiple violations pertaining to failure to maintain the minimum limits of liability insurance, failure to provide proof of insurance, and failure to honor a written promise to appear before a magistrate or judge, the total amount of final delinquent debt owed for such violations shall not exceed $5,000, inclusive of the additional fee collected by the office of debt recovery. (Amends R.S. 32:8(B), 57.1(C), 863(A)(3)(a), and 863.1(C)(1)(b); Adds R.S. 47:1676(L)) Page 5 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions.