SLS 19RS-221 ENGROSSED
2019 Regular Session
SENATE BILL NO. 37
BY SENATOR PEACOCK
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/TAXATION. Authorizes the office of debt recovery to collect delinquent debts on
behalf of local government subdivisions. (8/1/19)
1 AN ACT
2 To amend and reenact R.S. 47:299.2(1)(d), and (3), 299.11(9), and 1676(B)(3) and to enact
3 R.S. 1676(B)(1.1), relative to delinquent debt collection; to authorize all units of
4 local government to participate in the income tax refund offset program; to provide
5 limitations for debt related to school meals; to authorize all units of local government
6 to refer delinquent debt to the Office of Debt Recovery; and to provide for related
7 matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 47:299.2(1)(d), and (3), 299.11(9), and 1676(B)(3) are hereby
10 amended and reenacted and R.S. 47:1676(B)(1.1) is hereby enacted to read as follows:
11 §299.2. Definitions
12 For purposes of this Part, the following words, terms, and phrases have the
13 meaning ascribed to them by this Section unless the context clearly indicates a
14 different meaning:
15 (1) * * *
16 (d) "Agency" shall also mean a municipality, parish, or any other unit of
17 local government, authorized by law to perform governmental functions,
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1 including a school board, and a special district, or any entity which submits
2 claims on behalf of the municipality, or parish, or other unit of local government.
3 * * *
4 (3) "Debt" means any legally collectible, liquidated sum due and owing an
5 agency, or due and owing a person and collectible by any agency, or a judgment,
6 order of the court, or bond forfeiture which is properly certified by the clerk and
7 which orders the payment of a fine or other court ordered penalty, if the amount of
8 the debt is twenty-five dollars or more. "Debt" shall not include any amount due
9 for an unpaid public elementary or secondary school meal balance.
10 * * *
11 §299.11. Ranking and priority of claims
12 If two or more agencies file offset claims with the secretary against an
13 individual's refund, the secretary shall remit the refund to the claimants if sufficient
14 funds exist in the following order with the first offset claim to be paid being
15 completely satisfied before a second or subsequent offset claim is paid:
16 * * *
17 (9) Claims made by a municipality or a parish, parish, or any other unit of
18 local government, authorized by law to perform governmental functions,
19 including a school board and a special district.
20 * * *
21 §1676. Debt recovery
22 * * *
23 B. For purposes of this Section, the following words shall have the following
24 meanings unless the context clearly indicates otherwise:
25 * * *
26 (1.1) "Agency" shall also mean any municipality, parish, or any other
27 unit of local government, authorized by law to perform governmental functions,
28 including school boards and special districts. Notwithstanding any provision of
29 this Section to the contrary, local government subdivisions shall be permitted
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1 but not required to refer their delinquent debt to the Office of Debt Recovery
2 for collection.
3 * * *
4 (3) "Debt" means any legally collectible liquidated sum due and owing an
5 agency, or due and owing a person and collectible by any agency, or a judgment,
6 order of the court, or bond forfeiture that is properly certified by the clerk and that
7 orders the payment of a fine or other court-ordered penalty. The legally collectible
8 and liquidated sum due includes principal and accruing interest, fees, and penalties,
9 if appropriate. "Debt" shall not include any legally collectible liquidated sum due and
10 owing to an agency or an individual pursuant to the following federal programs: Title
11 IV-A, Title IV-B, Title IV-D, Title IV-E, or Title XX of the federal Social Security
12 Act, 7 U.S.C. 2011 et seq., 42 U.S.C. 9858 et seq., 42 U.S.C. 5101 et seq., 42 U.S.C.
13 5116 et seq., 42 U.S.C. 10401 et seq.; or, any sums due on account of overpaid
14 unemployment compensation benefits or unpaid contributions or reimbursements
15 pursuant to the Louisiana Employment Security Law under R.S. 23:1471 et seq.
16 "Debt" shall not include any amount due for an unpaid public elementary or
17 secondary school meal balance.
18 * * *
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 37 Engrossed 2019 Regular Session Peacock
Present law authorizes municipalities and parishes to refer unpaid debt to the Department
of Revenue for offset against individual income tax refunds.
Proposed law authorizes all units of local government, including school boards and special
districts, to refer unpaid debt to the Department of Revenue for offset against individual
income tax refunds.
Present law defines debt as any legally collectible, liquidated sum due and owing an agency
that is in excess of $25.
Proposed law provides that an unpaid balance for public elementary and secondary school
meals will not be considered debt for purposes of the income tax refund offset program.
Present law provides for a priority ranking of refund offset claims.
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Proposed law retains present law priority for municipalities and parishes and adds all other
local government units authorized to perform governmental functions, including a school
board or special district to this priority level.
Present law requires state agencies to refer certain delinquent debts to the Office of Debt
Recovery for collection.
Proposed law retains present law for state agencies and authorizes all units of local
government to refer final delinquent debts to the Office of Debt Recovery for collection.
Present law defines debt as any legally collectible, liquidated sum due and owing an agency
and provides for exceptions.
Proposed law retains present law exceptions from the definition of debt and further provides
that an unpaid balance for public elementary and secondary school meals will not be
considered debt that may be referred to the office of debt recovery.
Effective August 1, 2019.
(Amends R.S. 47:299.2(1)(d), (3), 299.11(9), and 1676(B)(3); adds R.S. 47:1676(B)(1.1))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill
1. Adds exceptions to debt collection programs for unpaid school meals.
2. Makes technical changes.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.