SLS 16RS-1036 ENGROSSED 2016 Regular Session SENATE BILL NO. 400 BY SENATOR BARROW MOTOR VEHICLES. Provides debt amnesty program to individuals for excessive debt due the office of motor vehicles. (8/1/16) 1 AN ACT 2 To enact R.S. 32:9, relative to motor vehicles; to require the office of motor vehicles to 3 establish a debt amnesty program; to provide for an amnesty period; to provide the 4 terms and conditions applicable to the program; and to provide for related matters. 5 Be it enacted by the Legislature of Louisiana: 6 Section 1. R.S. 32:9 is hereby enacted to read as follows: 7 ยง9. Amnesty program; office of motor vehicles 8 A. The office of motor vehicles shall develop and implement a debt 9 amnesty program to collect debt for fines, penalties, and fees due to the office 10 of motor vehicles as defined in R.S. 32:8. The office shall publicize the debt 11 amnesty program to maximize the public's awareness of and participation in 12 the program. 13 B. The debt amnesty program shall be effective for a period of at least 14 two months duration in 2016 occurring prior to December 31, 2016. 15 C. The debt amnesty program shall apply to all debt due to the 16 Department of Public Safety and Corrections, office of motor vehicles, pursuant 17 to R.S. 32:863, including debt transferred to the Department of Revenue, office Page 1 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 400 SLS 16RS-1036 ENGROSSED 1 of debt recovery, or the attorney general for collection, on the effective date of 2 this Section. 3 D. Debtors with debt in the amount of one thousand dollars or more are 4 eligible to participate in the debt amnesty program. Amnesty debt payments 5 shall be paid in full during the amnesty period. 6 (1)(a) The amnesty debt payment for fees charged for alleged violations 7 of R.S. 32:863(A)(1) that occurred on or before June 30, 2014, shall not exceed 8 fifty dollars per violation and at no time shall the total amnesty debt payment 9 for alleged multiple violations, including administrative and collection fees, 10 exceed five hundred dollars, when the debtor pays the debt in full during the 11 amnesty period and provides proof of insurance on any vehicle registered in the 12 debtor's name on the date of the amnesty debt payment. 13 (b) The amnesty debt payment for fees charged for alleged violations of 14 R.S. 32:863(A)(1) that occurred on or after July 1, 2014, shall not exceed one 15 hundred dollars per violation and at no time shall the total amount of debt for 16 fees, including administrative and collection fees, exceed eight hundred fifty 17 dollars, when the debtor pays the debt in full during the amnesty period and 18 provides proof of insurance on any vehicle registered in the debtor's name on 19 the date of the amnesty debt payment. 20 (c) The amnesty debt payment for fees charged for alleged violations of 21 R.S. 32:863(A)(2) that occurred on or before June 30, 2014, shall not exceed fifty 22 dollars per violation and at no time shall the total amnesty debt payment for 23 alleged multiple violations, including administrative and collection fees, exceed 24 five hundred dollars, when the debtor pays the debt in full during the amnesty 25 period and provides proof of insurance on any vehicle registered in the debtor's 26 name on the date of the amnesty debt payment. 27 (d) The amnesty debt payment for fees charged for alleged violations of 28 R.S. 32:863(A)(2) that occurred on or after July 1, 2014, shall not exceed one 29 hundred dollars per violation and at no time shall the total amount of debt for Page 2 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 400 SLS 16RS-1036 ENGROSSED 1 fees, including administrative and collection fees, exceed one thousand seven 2 hundred fifty dollars, when the debtor pays the debt in full during the amnesty 3 period and provides proof of insurance on any vehicle registered in the debtor's 4 name on the payment date of the amnesty debt. 5 (2)(a) No amnesty payment for debt of a person sixty-five years or older 6 for alleged violations that occurred on or before June 30, 2014, including 7 administrative and collection fees, shall exceed two hundred dollars. 8 (b) No amnesty payment for debt of a person sixty-five years or older for 9 alleged violations that occurred on or after July 1, 2014, including 10 administrative and collection fees, shall exceed two hundred fifty dollars. 11 (3)(a) No amnesty payment for a debtor who has alleged violations of 12 R.S. 32:863(A)(1) that occurred on or before June 30, 2014, and on or after 13 July 1, 2014, including administrative and collection fees, shall exceed one 14 thousand three hundred fifty dollars. 15 (b) No amnesty payment of a debtor who has alleged violations of R.S. 16 32:863(A)(2) that occurred on or before June 30, 2014, and on or after July 1, 17 2014, including administrative and collection fees, shall exceed two thousand 18 two hundred dollars. 19 E. Upon receipt of the amnesty payment, the office of motor vehicles 20 shall clear the debtor's record at the office of motor vehicles and reinstate the 21 debtor's driver's license and motor vehicle registration. 22 F.(1) Prior to January 1, 2017, the office of motor vehicles shall develop 23 a debt amnesty program for collection of debts for failure to pay a fee pursuant 24 to either R.S. 32:57.1 or 863.1 and shall present such program for approval to 25 the House and Senate committees on transportation, highways, and public 26 works. 27 (2) Notwithstanding any provision of law to the contrary, prior to July 1, 28 2017, the office of motor vehicles shall take no action to refer to the office of 29 debt recovery any debt which arises from a debtor's failure to pay a fee Page 3 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 400 SLS 16RS-1036 ENGROSSED 1 pursuant to either R.S. 32:57.1 or 863.1 when the debt was incurred prior to the 2 effective date of the Act which originated as Senate Bill No. 400 of the 2016 3 Regular Session of the Legislature. The original instrument was prepared by Sharon F. Lyles. The following digest, which does not constitute a part of the legislative instrument, was prepared by Leonore F. Heavey. DIGEST SB 400 Engrossed 2016 Regular Session Barrow Proposed law requires the office of motor vehicles (OMV) to develop and implement a debt amnesty program for a period of at least two months duration in 2016 that occurs prior to December 31, 2016, and to collect debt for fines, penalties, and fees due the OMV as defined in R.S. 32:8 for violations R.S. 32:863 (no insurance). Requires the office to publicize the debt amnesty program to maximize the public's awareness of and participation in the program. Proposed law provides that OMV debtors with debt incurred under R.S. 32:863 are eligible to participate in the debt amnesty program. Requires amnesty debt payments to be paid in full during the amnesty period and provides the following schedule of amnesty debt payments. (1)For debt for violation or for multiple violations of R.S. 32:863(A)(1) before July 1, 2014, the per violation amnesty payment will be $50 and the total amnesty debt payment due shall not exceed $500. (2)For debt for violation or for multiple violations of R.S. 32:863(A)(1) on or after July 1, 2014, the per violation amnesty payment will be $100 and the total amnesty debt payment due shall not exceed $850. (3)For debt for violation or for multiple violations of R.S. 32:863(A)(2) before July 1, 2014, the per violation amnesty payment will be $50 and the total amnesty debt payment due shall not exceed $500. (4)For debt for violation or for multiple violations of R.S. 32:863(A)(2) on or after July 1, 2014, the per violation amnesty payment will be $100 and the total amnesty debt payment due shall not exceed $1,750. (5)No amnesty debt payment for debt of a person 65 years or older for multiple violations of R.S. 32:863(A)(1) and (2) before July 1, 2014, including administrative fees, shall exceed $200. (6)No amnesty debt payment for debt of a person 65 years or older for multiple violations of R.S. 32:863(A)(1) and (2) on or after July 1, 2014, including administrative fees, shall exceed $250. Proposed law requires the OMV to clear the debtor's record and reinstate his driver's license and motor vehicle registration upon receipt of the amnesty payment. Proposed law requires OMV to propose an amnesty program for violations of R.S. 32:57.1 (failure to honor a promise) and R.S. 32:863.1 (no evidence of insurance) to be approved by the House and Senate committees on transportation, highways, and public works by January 1, 2017. Page 4 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 400 SLS 16RS-1036 ENGROSSED Proposed law prohibits OMV from pursuing collection of fines for violations of R.S. 32:57.1 and R.S. 32:863.1 until July 1, 2017. Effective August 1, 2016. (Adds R.S. 32:9) Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Transportation, Highways, and Public Works to the original bill 1. Limits the amnesty program to violations of R.S. 32:863 (no insurance). 2. Provides for different per violation and total amnesty caps for violations before July 1, 2014, penalty rate increase and for violations on or after July 1, 2014. 3. Requires OMV to propose an amnesty program for fines for failure to appear and no evidence of insurance. 4. Prohibits collection action on fines for failure to appear and no evidence of insurance until July 1, 2017. Page 5 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.