GREEN SHEET REDIGEST
HB 245 2016 Regular Session Marcelle
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
MOTOR VEHICLES. Provides for methods of payment for debts owed to the office
of motor vehicles.
DIGEST
INSTALLMENT AG REEMENTS
Present law requires 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 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 taxes, 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, proposed 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 inform such person that he 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 all installment agreements to be in writing and signed by both parties.
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 would not be valid.
Proposed law provides that a debtor who owes the office of motor vehicles $250 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 been 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 upon termination of an installment agreement executed pursuant
to proposed law, all outstanding amounts due under the installment agreement would be final
debt as defined by present law (R.S. 32:8 or R.S. 47:1676).
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Prepared by Sharon F. Lyles. Proposed law provides that any installment agreement entered into pursuant to proposed law
would constitute a waiver by the debtor of any right to administrative or judicial review
regarding sums due under an installment agreement.
Proposed law provides that any notices provided to a debtor who enters into an installment
agreement pursuant to proposed law would constitute satisfaction of the notice requirements
of present law (R.S. 32:8 and R.S. 47:1676).
INSTALLMENT AG REEMENT TERMS
Proposed law requires any installment agreement to require a debtor to provide fixed and
equal monthly payments as follows:
If the debtor owes $250, the debtor must pay six equal monthly installments.
If the debtor owes from $251 to $750, the debtor must pay 12 equal monthly
installments.
If the debtor owes from $751 to $1500, the debtor must pay 24 equal monthly
installments.
If the debtor owes from $1,501 to $2,500, the debtor must pay 36 equal monthly
installments.
If the debtor owes from $2,501 to $4,999, the debtor must pay 48 equal monthly
installments.
If the debtor owes $5,000 or more, the debtor must pay up to 60 monthly installment
payments.
Proposed law permits the commissioner of the office of motor vehicles to grant longer
payment terms for amounts of $5,000 or more owed based on proof of income indicating a
debtor's financial limitations to pay within 60 months.
Proposed law requires the first payment of an installment agreement to be due upon
execution of the installment agreement.
Proposed law allows prepayment of sums due pursuant to an installment agreement to be
made without imposition of penalty.
Proposed law requires all installment agreement payments to be made through an electronic
automated transaction initiated by the office of motor vehicles or a third party on behalf of
the office of motor vehicles.
Proposed law permits such installment agreement payments to be made by bank draft,
electronic funds transfer, or credit or debit card, including but not limited to reloadable
prepaid credit or debit cards.
Proposed law requires all debtors to provide necessary information for installment payments
to be paid by electronic automated transactions.
Proposed law requires that each time an installment agreement payment is made that the
debtor will be issued a statement or receipt indicating the amount paid and the amount
outstanding under the installment agreement.
Proposed law allows the commissioner of the office of motor vehicles to suspend an
installment agreement executed pursuant to proposed law for up to 60 days following a
request based upon good cause. Specifies that good cause would be determined by the
commissioner.
Proposed law prohibits installment payments from being made during the period of
suspension and requires that payments would resume upon the day following the last day of
the suspension period.
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Prepared by Sharon F. Lyles. Proposed law requires that any suspension of an installment agreement pursuant to proposed
law would extend the term of the installment agreement by the length of any suspension.
Requires a debtor's driving privileges would remain active during the suspension period
unless otherwise blocked, revoked, or suspended.
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 commissioner
of the office of motor vehicles or the commissioner 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.
FAILURE TO MAKE PAYMENTS DUE UNDER AN INSTALLMENT
AGREEMENT
Proposed law requires that in the event that 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 60 days from the date of notice and demand
from the commissioner of the office of motor vehicles.
Proposed law requires the notice from the office of motor vehicles to advise the debtor that
his driver's license shall be suspended upon the expiration of the 60 days if the payments due
pursuant to the installment agreement are not made current within that 60 day period or the
agreement is not reinstated by the commissioner of the office of motor vehicles within that
60 day period.
Proposed law requires that in the event that an installment agreement includes payment of
delinquent or final debt as defined by present law (R.S. 32:8), such notice must include all
information required by present law (R.S. 32:8).
Proposed law in the event that an installment agreement includes payment of delinquent or
final debt as defined by present law (R.S. 47:1676), the notice must include all information
required by present law (R.S. 47:1676).
The notice required by proposed law would satisfy the notice requirements of present law
(R.S. 32:8 and R.S. 47:1676).
Proposed law permits the commissioner of the office of motor vehicles to reinstate an
installment agreement if the request for reinstatement is made within 60 days from the date
of the required notice of a missed payment and the debtor makes the payment.
INSTALLMENT AG REEMENTS AND REF ERRAL 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".
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Prepared by Sharon F. Lyles. 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 no request for reinstatement of an installment agreement is
made within 60 days of the notice and demand required by proposed law, or the
commissioner of the office of motor vehicles rejects a request to reinstate an installment
agreement, the installment agreement will be terminated and any remaining sums due under
the installment agreement will be delinquent and final debt as defined by present law for
which the following shall apply:
(1)For sums due which are not debt as defined by R.S. 32:8, the office of motor vehicles
may refer any amounts outstanding under the installment agreement for collection
by the appropriate office.
(2)For sums due which are debt as defined by R.S. 32:8, the office of motor vehicles
must refer any amounts outstanding under the installment agreement to the Dept. of
Revenue, office of debt recovery, for collection as provided in present law and the
Dept. of Revenue, office of debt recovery, will provide a credit for amounts paid
under an installment agreement executed pursuant to proposed law.
OFFICE OF DEBT RECOVERY AUTHORIZED TO ADMINISTER
INSTALLMENT AG REEMENTS AND COLLECT INSTALLMENT P AYMENTS
Proposed law authorizes the Dept. of Revenue, office of debt recovery, to provide services
for the administration and collection of payments due pursuant to installment agreements
entered into by a debtor and the office of motor vehicles pursuant to proposed law.
Proposed law authorizes the Dept. of Revenue, office of debt recovery, to collect a
transaction fee not to exceed $3 for each payment made pursuant to an installment
agreement.
Proposed law provides that the Dept. of Revenue, office of debt recovery, may charge fees
authorized by present law relating to electronic transactions (R.S. 40:1322 and R.S.
49:316.1) to be completed pursuant to proposed law.
Proposed law provides that present law regarding installment agreements for tax related debt
and payment of other types of debt administered by the Dept. of Revenue, office of debt
recovery, would not apply to installment agreements executed pursuant to proposed law.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 32:8(A)(3) and (B); Adds R.S. 32:429.4 and R.S. 47:1676(L))
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Prepared by Sharon F. Lyles. Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Transportation,
Highways and Public Works to the original bill:
1. Make all outstanding amounts due under an installment agreement final debt
upon termination of an installment agreement.
2. Provide that upon termination of an installment agreement executed pursuant to
proposed law, all outstanding amounts due under the installment agreement
would be final debt as defined by present law (R.S. 32:8 or R.S. 47:1676).
3. Provide that any installment agreement entered into pursuant to proposed law
would constitute a waiver by the debtor of any right to administrative or judicial
review regarding sums due under an installment agreement.
4. Provide that any notices provided to a debtor who enters into an installment
agreement pursuant to proposed law would constitute satisfaction of the notice
requirements of present law (R.S. 32:8 and R.S. 47:1676).
5. Specify that notice provided to a debtor who enters into an installment agreement
with the office of motor vehicles would constitute satisfaction of any notice
required by present law (R.S. 32:8 or R.S. 47:1676).
6. Change the minimum amount owed for which a debtor can enter into an
installment agreement to pay from $100 to $250.
7. Require a debtor to make fixed monthly equal installment payments. Specify that
the number of payments would be based upon the total amount owed, with a
longer period of time to pay if the debtor owes more.
8. Require that the first payment of an installment agreement be made when the
installment agreement is executed.
9. Require that all installment agreement payments would have to be by electronic
automated transactions. Specify that this could be a bank draft, electronic funds
transfer, credit or debit card including but not limited to reloadable prepaid debit
or credit cards.
10.Authorize the commissioner of the office of motor vehicles to suspend an
installment agreement for up to 60 days upon a showing of good cause. Specify
that any such suspension would increase the term of the installment agreement
by that time.
11.Allow a debtor 60 days rather than 30 days to become current with installment
payments upon a missed payment.
12.Specify that if a debtor did not bring his installment agreement current or have
the agreement reinstated within that 60-day period, certain debt would be final
and required to be turned over to the office of debt recovery for collection and
other debt would be final and allowed to be turned over to the office of debt
recovery for collection.
13.Provide that the office of motor vehicles is not to be considered a debt collection
agency as defined in present law (R.S. 9:3524.1).
14.Allow the office of debt recovery to provide administrative and collection
services for installment agreements.
15.Allow the office of debt recovery to charge certain transaction and processing
fees for collecting installment payments.
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Prepared by Sharon F. Lyles. 16.Provide that during the term of an installment agreement that debt cannot be
referred to the office of debt recovery or the attorney general for collection.
17.Make technical changes.
The House Floor Amendments to the engrossed bill:
1. Make technical changes.
2. Correct an effective date for a section of the bill.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Transportation, Highways,
and Public Works to the reengrossed bill
1. Make technical changes.
2. Change effective date to governor's signature.
3. Removes debt for which a debtor has an installment agreement from requirement
to refer final debt to the office of debt recovery and requires all notices to a
debtor to include that he may be eligible to pay his debt by installment
agreement.
4. Provides a debtor with $250 or more in outstanding fines, penalties, or fees is
eligible for an installment agreement provided all conditions of reinstatement
other than payment are satisfied and a request to pay by installment agreement
is timely made.
5. Provides that there is no prepayment penalty due on an installment agreement.
6. Allows the DPSC to authorize a third party, including the office of debt recovery,
to administer and collect payments under installment agreements and to collect
certain fees provided by law, including a not-to-exceed $3 per payment
transaction fee and a convenience fee for use of debit and credit cards to make
payments.
7. Provides that the office of motor vehicles and the office of debt recovery are not
considered a collection agency as defined in R.S. 9:3534.1.
8. Provides that debt for which a debtor enters into an installment agreement on the
effective date of proposed law shall not be referred to the office of debt recovery
or the office of attorney general during the term of an installment agreement.
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Prepared by Sharon F. Lyles.