Provides relative to collection of payments due to the office of motor vehicles and the office of debt recovery. (gov sig)
Impact
One of the significant changes made by SB 387 is the inclusion of installment agreements as a recognized method of addressing debts. The bill retains definitions of 'delinquent debt' and affects existing statutes by clarifying that once a debt is declared 'final', the debtor loses all rights to challenge the validity or amount owed. By mandating that debtors receive advance written notice via certified mail, the bill aims to ensure that individuals are aware of their debts and the potential consequences for failing to address them in a timely manner.
Summary
Senate Bill 387, introduced during the 2016 Regular Session, seeks to amend existing provisions regarding the collection of debts owed to the office of motor vehicles in Louisiana. The bill specifically aims to streamline the notification and collection processes for final debts. It formalizes changes to how debts are categorized, defines 'final debt,' and establishes requirements for written notices to debtors before debts are referred to the debt recovery office. This adjustment is intended to create a more structured and transparent approach to debt collection for motor vehicle fees.
Sentiment
Discussions surrounding SB 387 showed a generally supportive sentiment from legislative members who praised the bill as a necessary reform to improve the efficiency of debt collection processes. Most supporters emphasized the importance of ensuring compliance while safeguarding the rights of debtors through clear communication. However, there were concerns related to the implications of the 'final debt' designation, particularly regarding the loss of recourse options for individuals unable to pay their debts, which sparked opposing views from some members and advocacy groups.
Contention
The main point of contention within SB 387 revolves around the balance between efficient debt recovery processes and the rights of debtors. Critics expressed apprehension that the bill's provisions could lead to harsher penalties for debtors who may be unable to settle their debts, arguing that the loss of administrative and judicial review rights could unduly harm financially vulnerable individuals. This tension highlights a broader debate about governmental authority in debt enforcement and the implications for community members facing outstanding fees.
Establishes the office of debt recovery at the Dept. of Revenue for the collection of delinquent debts owed to certain governmental entities (EN SEE FISC NOTE GF RV See Note)
Establishes the La. Debt Recovery Program at the Dept. of Revenue for the collection of delinquent debts owed to certain governmental entities (RE INCREASE SG EX See Note)