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 245 Original 2016 Regular Session Marcelle
Abstract: Authorizes the office of motor vehicles to enter into installment agreements to pay
outstanding fees, penalties, and fines owed to the office of motor vehicles.
INSTALLMENT AG REEMENTS
Present law authorizes the Dept. of Public Safety and Corrections, office of motor vehicles, to collect
certain fees, penalties, and fines.
Present law does not authorize or prohibit the office of motor vehicles from accepting partial
payments on these outstanding amounts.
Proposed law requires, on or before Jan. 1, 2017, the office of motor vehicles enter into installment
agreements with eligible persons to pay outstanding fines, penalties, and fees owed to the office of
motor vehicles.
Proposed law prohibits an installment agreement from being used to pay sales or use taxes or related
penalties and interest, vehicle registration license tax, or titling fees when submitting a transaction
to title or register a motor vehicle. Specifies that if the office of motor vehicles has previously sent
a notice to the individual that the payment made on a motor vehicle title or registration transaction
was dishonored by the bank processing the transaction, present law authorizes the office of motor
vehicles to accept an installment agreement to collect that dishonored payment in addition to any
fees, penalties, or interest that may be added to the total due to the dishonored payment.
Proposed law requires all notices provided by the office of motor vehicles notifying a person of
outstanding fines, penalties, or fees to inform they may be eligible to pay the outstanding amount due
by installment agreement and to inquire with the office of motor vehicles to determine eligibility and
requirements.
Proposed law requires the office of motor vehicles to develop an official form to be utilized for
installment agreements and provides that an installment agreement with the office of motor vehicles
which does not utilize this form will not be valid.
Proposed law provides that a debtor who owes the office of motor vehicles $100 or more in
outstanding fines, penalties, or fees, or any combination thereof, is eligible to pay such amounts by
means of an installment agreement with the office of motor vehicles should the following conditions
be met: (1)All conditions of reinstatement other than payment of outstanding fines, penalties, and fees
owed to the office of motor vehicles have be satisfied.
(2)A request for an installment agreement is made within the time provided for in the notice
from the office of motor vehicles informing the debtor of the outstanding fines, penalties, and
fees owed to the office of motor vehicles.
Proposed law provides that any installment agreement entered into by the office of motor vehicles
and a debtor shall be in writing and signed by both parties.
INSTALLMENT AG REEMENT TERMS
Proposed law provides that the terms of an installment agreement between the office of motor
vehicles and a debtor require the following:
(1)The debtor to pay the outstanding fines, penalties, and fees owed to the office of motor
vehicles in at least four installments.
(2)The debtor to prepay sums due pursuant to the installment agreement in full at any time
without penalty.
Proposed law requires all payments made pursuant to an installment agreement be paid by check,
bank draft, post office money order, express money order, electronic funds transfer, or credit or debit
cards.
Proposed law specifies that each time a debtor makes a payment pursuant to an installment
agreement he must be issued a receipt stating the amount paid and the amount outstanding pursuant
to the installment agreement.
Proposed law specifies that if any installment payment is not paid on or before the date fixed for its
payment, the entire amount unpaid pursuant to the installment agreement shall be paid by the debtor
within 30 days upon notice and demand from the secretary.
Proposed law further specifies that if no request for reinstatement of an installment agreement is
made following demand from the secretary to pay the entire amount unpaid, or the secretary rejects
a request to reinstate an installment agreement to pay the entire amount of unpaid debt associated
with the suspension of an operator's license for failure to appear before a court subject to a written
promise to appear or failure to abide by certain insurance requirements, the debt shall be final
delinquent debt, as those terms are defined in present law, and referred to the Dept. of Revenue,
office of debt recovery, for collection subject to the maximum amount owed, with a credit provided
for amounts paid pursuant to the installment agreement entered into pursuant to this proposed law,
together with the additional fee collected by the office of debt recovery.
REINSTATEMENT OF DRIVING PRIVILEGES UPON EXECUTION OF
INSTALLMENT AG REEMENT Present law requires the office of motor vehicles to revoke or suspend a person's driver's license or
motor vehicle registration privileges when certain fees, penalties, and fines for failure to abide by
certain highway regulatory laws or regulations, driver's license laws or regulations, motor vehicle
compulsory security laws or regulations are not satisfied within the time period allowed by law or
regulation.
Proposed law requires a debtor's Class "E" driving privileges and motor vehicle or truck registration
privileges be reinstated when an installment agreement is executed by the debtor and the office of
motor vehicles. Requires all blocks on the debtor's license record be removed at that time.
Authorizes the office of motor vehicles to include the applicable fee for reinstatement of driving
privileges in the total to be owed pursuant to an installment agreement entered into pursuant to
proposed law.
Proposed law provides that if an installment payment is missed and no request for reinstatement of
an installment agreement is made following demand from the secretary or the secretary rejects a
request to reinstate an installment agreement, the debtor's driving privileges and motor vehicle or
truck registration privileges will be suspended. Present law (R.S. 32:414) shall apply with regards
to judicial review of the suspension and reinstatement of the suspension.
MONIES COLLECTED P URSUANT TO INSTALLMENT AG REEMENTS OWED TO
OTHER ENTITIES
Proposed law requires the office of motor vehicles to distribute monies owed to other entities from
payment of outstanding fines, penalties, and fees owed to the office of motor vehicles and received
pursuant to an installment agreement within 30 days of receipt of the final payment pursuant to the
installment agreement or within 30 days of the termination of an installment plan for nonpayment.
INSTALLMENT AG REEMENTS AND DEBTS WHICH ARE AUTHORIZ ED BY LAW
TO BE REFERRED TO THE OFFICE OF DEBT RECOVERY
Present law provides that fees associated with the suspension of an operator's license for failure to
honor a written promise to appear before a court (R.S. 32:57.1) and failure to abide by certain
automobile insurance requirements (R.S. 32:368 and 368.1) are defined as "debt".
Present law defines "delinquent debt" as a debt that is 60 days or more past due.
Proposed law defines "delinquent debt" as a debt that is 60 days or more past due and for which the
debtor has not entered into an installment agreement with the office of motor vehicles to pay.
Present law defines "final" as the amount due is no longer negotiable and that the debtor has no
further right of administrative and judicial review.
Proposed law provides that an amount due shall not be "final" during the term of an installment
agreement between the office of motor vehicles and the debtor. Present law requires the office of motor vehicles to refer all "final delinquent debt" as those terms
are defined in present law to be referred to the office of debt recovery for collection.
Present law requires the office of motor vehicles, prior to referral to the office of debt recovery, to
notify a debtor in writing that failure to pay final delinquent debt in full within 60 days shall subject
the debt to the maximum amount owed together with an additional fee collected by the office of debt
recovery.
Proposed law permits a debtor to pay such "final delinquent debt" pursuant to an installment
agreement prior to the debt being referred to the office of debt recovery.
Proposed law provides that if the debtor fails to request reinstatement of an installment agreement
following a missed installment payment and demand from the secretary to pay the entire amount
unpaid of debt as defined in present law or the secretary rejects a request to reinstate an installment
agreement to pay entire amount unpaid of debt as defined in present law, the debt shall be final
delinquent debt as defined in present law and referred to the Dept. of Revenue, office of debt
recovery, for collection and subject to the maximum amount owed, with a credit provided for
amounts paid pursuant to the installment agreement entered into pursuant to proposed law, together
with the additional fee collected by the office of debt recovery.
EFFECTIVE DATES
Proposed law provides that the effective date for the authorization for the office of motor vehicles
to enter into installment agreements is upon signature by the governor or, if not signed by the
governor, upon expiration of the time for bills to become law without signature by the governor, as
provided by Article III, Section 18 of the Constitution of Louisiana. If vetoed by the governor and
subsequently approved by the legislature, the authorization shall be effective on the day following
such approval.
Proposed law provides that changes to laws pertaining to debt which may be referred to the office
of debt recovery for collection shall become effective on such date as the office of motor vehicles
begins entering into installment agreements as authorized by proposed law.
(Amends R.S. 32:8(A)(2) and (3) and (B), 57.1(C), 863(A)(3)(a) and 863.1(C)(1)(b); Adds R.S.
32:9)