HLS 16RS-1249 ORIGINAL 2016 Regular Session HOUSE BILL NO. 695 BY REPRESENTATIVE BROADWATER REVENUE DEPARTMENT: Provides relative to the types of debt the office of debt recovery is charged with collecting 1 AN ACT 2To amend and reenact R.S. 47:1676(B)(4) and (7) and (C)(2)(a), relative to the collection 3 of state debt by the office of debt recovery; to provide for the types of debt the office 4 of debt recovery is authorized to collect; to provide for definitions; and to provide 5 for related matters. 6Be it enacted by the Legislature of Louisiana: 7 Section 1. R.S. 47:1676(B)(4) and (7) and (C)(2)(a) are hereby amended and 8reenacted to read as follows: 9 ยง1676. Debt recovery 10 * * * 11 B. For purposes of this Section, the following words shall have the following 12 meanings unless the context clearly indicates otherwise: 13 * * * 14 (4) "Delinquent debt" means a final debt that is sixty days or more past due. 15 * * * 16 (7) "Non-final delinquent debt" means any debt that an agency has notified 17 a debtor is owed but the debt remains unpaid, due, or negotiable for a period of sixty 18 days or more and such debt is not final and the debtor has further administrative or 19 judicial review rights to challenge the validity of the debt or the amount owed. 20 * * * Page 1 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1249 ORIGINAL HB NO. 695 1 C. 2 * * * 3 (2)(a) Agencies that do not have collection contracts with the attorney 4 general's office for the collection of delinquent debts shall refer all delinquent debts 5 to the office as provided by rule. Such referrals shall include data and information 6 in the required format necessary to institute collection procedures. All delinquent 7 debts shall be authenticated by the agency or officer prior to being referred to the 8 office. Once the debt becomes final delinquent, and prior to referral to the office, the 9 agency shall notify the debtor that failure to pay the debt in full within sixty days 10 shall subject the debt to an additional collection fee as provided for in this Section. 11 All agencies shall refer non-final delinquent debts to the attorney general's office for 12 collection when the debt has been delinquent for sixty days pursuant to the referral 13 guidelines established by the attorney general as incorporated into agreements 14 between the attorney general and other agencies or pursuant to the rules promulgated 15 by the attorney general pursuant to the Administrative Procedure Act. Such non- 16 final delinquent debts shall be authenticated by the agency prior to their referral to 17 the attorney general. 18 * * * 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 695 Original 2016 Regular Session Broadwater Abstract: Provides relative to the types of debt the office of debt recovery, within the Dept. of Revenue, is charged with collecting. Present law charges the office of debt recovery (hereinafter "office") and the attorney general's office with collecting the delinquent debts of state agencies which refer delinquent debts to them for collection. Further provides for the general powers and authority of the office in collecting delinquent debt that has become final and is 60 or more days past due. Present law requires agencies that do not have collection contracts with the attorney general's office for the collection of delinquent debts to refer all delinquent debts to the office for collection. Once the debt becomes final, and prior to referral to the office, the agency shall notify the debtor that failure to pay the debt in full within 60 days shall subject the debt to an additional collection fee as provided for in this Section. Page 2 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1249 ORIGINAL HB NO. 695 Proposed law retains present law but changes the debt that is required to be referred to the office from final debt to delinquent debt. Present law defines a "delinquent debt" as a final debt that is 60 days or more past due. Additionally, defines "non-final delinquent debt" as any debt that an agency has notified a debtor that is owed but the debt remains unpaid, due, or negotiable for a period of 60 days or more and the debt is not final and the debtor has further administrative or judicial review rights to challenge the validity of the debt or the amount owed. Proposed law changes the definition of "delinquent debt" by removing references to the debt being final. Further changes the definition of "non-final delinquent debt" by removing the references to the debt being delinquent. Present law requires all agencies to refer non-final delinquent debts to the attorney general's office for collection when the debt has been delinquent for 60 days pursuant to the referral guidelines established by the attorney general. Proposed law repeals this present law requirement. (Amends R.S. 47:1676(B)(4) and (7) and (C)(2)(a)) Page 3 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions.