HLS 24RS-718 ORIGINAL 2024 Regular Session HOUSE BILL NO. 475 BY REPRESENTATIVE BOURRIAQUE REVENUE/TAXATION DEPT: Provides for digital transaction providers 1 AN ACT 2To enact R.S. 47:532.4, relative to digital transaction providers; to authorize the 3 commissioner to enter into agreements related to digitized credentials; to authorize 4 digital transaction providers to collect fees and process applications and transactions; 5 to provide for terms of contracts with digital transaction providers; to require surety 6 bond and insurance for digital transaction providers; and to provide for related 7 matters. 8Be it enacted by the Legislature of Louisiana: 9 Section 1. R.S. 47:532.4 is hereby enacted to read as follows: 10 ยง532.4. Digital transaction provider 11 A.(1) The commissioner may enter into an agreement with digital transaction 12 providers, who may be private persons or public or private agencies, for the purpose 13 of carrying out the provisions authorized in R.S. 39:17.2 and R.S. 39:17.5. 14 (2) The Department of Public Safety and Corrections, office of motor 15 vehicles may deny a contract to any person, natural or juridical, seeking to be a 16 digital transaction provider if that person has been found to be in violation of any 17 rule or regulation promulgated by the Department of Public Safety and Corrections, 18 office of motor vehicles. Page 1 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 24RS-718 ORIGINAL HB NO. 475 1 B.(1) Digital transaction providers may collect the registration and renewal 2 license taxes and fees associated with issuance of driver's license or identification 3 cards or for reinstatement of driving and motor vehicle registration privileges. 4 (2) Digital transaction providers shall be authorized to collect a convenience 5 charge not to exceed the amount authorized by R.S. 47:532.1(C), provided that the 6 charges are disclosed immediately to the consumer prior to the initiation of the 7 transaction. 8 C. The commissioner may authorize the digital transaction provider to 9 process additional applications or transactions. 10 D. The contract between the Department of Public Safety and Corrections, 11 office of motor vehicles and a person who contracts to perform services pursuant to 12 this Section shall be for a term of two years and may be automatically renewed by 13 the Department of Public Safety and Corrections, office of motor vehicles. 14 E.(1) Each digital transaction provider shall execute a good and sufficient 15 surety bond with a surety company qualified to do business in Louisiana as surety 16 in a sum of one hundred thousand dollars, if surety bond is available for purchase, 17 which bond shall name the Department of Public Safety and Corrections, office of 18 motor vehicles as obligee and shall be subject to the condition that, if such digital 19 transaction provider shall, throughout the entire term of the bond, timely file with the 20 Department of Public Safety and Corrections, office of motor vehicles all 21 applications delivered to such digital transaction provider for filing, and all fees 22 collected by such digital transaction provider, the obligation shall be void. If the 23 company does not do so, the obligation of the surety shall remain in full force and 24 effect. 25 (2) The surety bond furnished pursuant to this Paragraph shall be delivered 26 to and filed with the Department of Public Safety and Corrections, office of motor 27 vehicles. 28 F. Digital transaction providers shall obtain a cyber liability insurance policy 29 with a company qualified to do business in Louisiana in the amount of one million Page 2 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 24RS-718 ORIGINAL HB NO. 475 1 dollars, which names the state of Louisiana, the department, the department's 2 employees, and the office of technology services and its employees as additional 3 insureds. 4 G. The commissioner may promulgate rules necessary to implement the 5 provisions of this Section. 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 475 Original 2024 Regular Session Bourriaque Abstract: Authorizes the commissioner to enter into agreements related to digitized credentials. Provides for digital transaction providers to collect fees and process applications and transactions and provides for terms of contracts with digital transaction providers. Requires a surety bond and insurance for digital transaction providers. Proposed law allows the commissioner to enter into an agreement with public or private persons or agencies to be digital transaction providers who can provide and renew digital credentials and provides a contract can be denied if the person or organization has violated any rule or regulation of the office of motor vehicles. Proposed law provides that digital transaction providers may collect registration license taxes and fees and may collect a convenience charge as provided in present law. Proposed law allows the commissioner to authorize the digital transaction provider to process additional applications or transactions. Proposed law provides for the term of the contract to be for a term of two years and to be automatically renewed. Proposed law provides that the digital transaction provider must execute a surety bond of $100,000 naming the Dept. of Public Safety and Corrections, office of motor vehicles, as obligee. Further provides the surety bond must be delivered to the Dept. of Public Safety and Corrections, office of motor vehicles. Proposed law requires the digital transaction provider to acquire a cyber liability insurance policy for $1,000,000 that names the state of La., the Dept. of Public Safety and Corrections, office of motor vehicles, department employees, and the office of technology services and its employees as additional insureds. Proposed law allows for the commissioner to promulgate rules as necessary to implement proposed law. (Adds R.S. 47:532.4) Page 3 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions.