RÉSUMÉ DIGEST
ACT 629 (HB 683) 2024 Regular Session Owen
Prior law required the office of motor vehicles (OMV) to refer a final delinquent debt for
which a debtor has not entered into an installment agreement for payment to the office of
debt recovery as provided in existing law. Specified final delinquent debt referrals must
include data and information in the required format necessary to institute collection
procedures. Specified that once the delinquent debt becomes final, and prior to referral to
the office of debt recovery, the OMV must notify the debtor in writing that failure to pay the
debt in full within 60 days will subject the debt to the maximum amount owed together with
the additional fee collected by the office of debt recovery provided for in existing law.
New law modifies prior law by removing the requirement that OMV refer final delinquent
debt to the office of debt recovery and requires that prior to the referral to the office of debt
recovery, that the OMV notify the debtor in writing regarding failure to pay the debt.
New law authorizes the OMV, through the commissioner, to compromise and settle all debt
whether such debt is delinquent debt, final debt, or a debt that has been referred to the office
of debt recovery as a final delinquent debt to avoid litigation and further collection expenses
of the state upon satisfactory showing of substantial compliance with the law and
determination that no fee or lesser fee is due.
Prior law defined "delinquent debt" as a debt that is 60 days or more past due.
New law increases the past due amount from debt that is 60 days or more past due to 180
days or more past due.
Prior law defined "final debt" as the amount due is no longer negotiable and that the debtor
has no further right of administrative and judicial review.
New law removes a specification that the amount due is no longer negotiable.
New law retains existing law but gives the OMV the option to refer a final delinquent debt
for which a debtor has not entered into an installment agreement for debt recovery to the
office of debt recovery, within the Dept. of Revenue.
New law requires a debtor to provide a valid electronic mail address to the OMV to receive
all notices and updates. Specifies it is the debtor's obligation to maintain a valid electronic
mail address during the entire term of any installment agreement. Requires the debtor to
promptly update the installment agreement system with any new or changed electronic mail
address.
Prior law established an installment agreement payment schedule that required a debtor to
provide fixed and equal monthly payments in the following amounts, with the first payment
due upon the execution of the agreement:
(1)If the debtor owed $250, the debtor was required to pay six equal monthly
installments.
(2)If the debtor owed from $251 to $750, the debtor was required to pay 12 equal
monthly installments.
(3)If the debtor owed from $751 to $1,000, the debtor was required to pay 24 equal
monthly installments.
(4)If the debtor owed from $1,501 to $2,500, the debtor was required to pay 36 equal
monthly installments.
(5)If the debtor owed from $2,501 to $4,999, the debtor was required to pay 48 equal
monthly installments. (6)If the debtor owed $5,000 or more, the debtor was required to pay up to 60 monthly
installment payments. However, the commissioner of the OMV may grant longer
payment terms for amounts of five thousand dollars or more owed based on proof of
income indicating a debtor's financial limitations to pay within 60 months.
New law removes the execution process in prior law and gives the commissioner of the
OMV discretion to consider factors such as the debtor's income, financial obligations, as well
as any other factors that affect the debtor's ability to pay the outstanding debt when the
commissioner is determining the number of payments and the amount of each payment in the
debtor's installment agreement.
Existing law provides for the termination of installment agreement upon failure to make
payment. Specifies that if any installment payment is not paid on or before the date fixed for
its payment, the entire amount unpaid pursuant to the installment agreement is to be paid by
the debtor within a 60 day period from the date of notice and demand from the commissioner
of the OMV. Further specifies that the notice is to advise the debtor that his driver's license
will be suspended upon the expiration of the 60 day period if the payments due pursuant to
the installment agreement are not made current within that 60-day period or the agreement
is not reinstated by the commissioner of the OMV within that sixty-day period. Specifies
that this notice is known as "Notice of Installment Agreement Termination and Demand".
New law adds that existing law is only triggered if the debtor fails to make up the missed
payment as provided in new law.
Existing law requires Notice of Installment Agreement Termination and Demand satisfy all
notice requirements of existing law (R.S. 32:8 and R.S. 47:1676). Specifies in the event an
installment agreement includes payment of delinquent or final debt as defined by existing
law (R.S. 32:8), such notice must include all information required by existing law (R.S.
32:8). Further specifies the event that an installment agreement includes payment of
delinquent or final debt as defined by existing law (R.S. 47:1676), such notice must include
all information required by existing law (R.S. 47:1676). Additionally the notice required
must satisfy the notice requirements of existing law (R.S. 32:8 and R.S. 47:1676).
New law retains existing law and clarifies that the Notice of Installment Agreement
Termination and Demand must satisfy all notice requirements contained in R.S. 32:8 and
R.S. 47:1676.
Existing law specifies that upon the request of the debtor within the 60 day period from the
date of the notice and demand required in existing law and approval of the commissioner of
the OMV, the office may reinstate the installment agreement after payment of the missed
installment.
New law modifies existing law and specifies that the OMV may reinstate the installment
agreement after payment of all missed installments and associated late fees.
Existing law specifies if no request for reinstatement of an installment agreement is made
within 60 days of the notice and demand required in existing law, or if the commissioner of
the OMV rejects a request to reinstate an installment agreement, the installment agreement
will be terminated and any remaining sums due under the installment agreement will be
delinquent and final debt as defined in existing law and will apply to the following:
(1)Sums due which are not debt as defined by present law, the OMV may refer any
unpaid balance due under the installment agreement for collection by the appropriate
office pursuant to existing law.
(2)For sums due which are debt as defined by existing law, the OMV must refer any
unpaid balance due under the installment agreement to the Dept. of Revenue, office
of debt recovery, for collection as provided in existing law.
New law retains existing law but makes it optional for the OMV to refer any unpaid balance
due under the installment agreement to the Dept. of Revenue, office of debt recovery, for
collection as provided in existing law. Existing law requires driving privileges and vehicle registration be reinstated when an
installment agreement is executed by the debtor and the OMV. Specifies that all blocks on
the debtor's license record be removed at that time. Further specifies the OMV may include
the applicable fee for reinstatement of driving privileges in the total to be owed pursuant to
an installment agreement entered into pursuant to existing law.
Existing law establishes administration of installment agreements. Requires the Dept. of
Public Safety and Corrections, public safety services, to authorize a third party, including but
not limited to the Dept. of Revenue, office of debt recovery, to administer installment
agreements executed pursuant to present law. Additionally, allows such authorized third
party to collect payments due pursuant to installment agreements executed pursuant to
existing law.
Existing law specifies that any such authorized third party be an authorized agent of the Dept.
of Public Safety and Corrections, public safety services, and may collect the following fees
for each transaction completed pursuant to existing law:
(1)A fee not to exceed three dollars for each payment made pursuant to an installment
agreement.
(2)Fees authorized by existing law.
(3)Fees authorized pursuant to existing law.
Specifies that the provisions of existing law do not apply to services provided by the Dept.
of Revenue, office of debt recovery, pursuant to existing law.
Further specifies that the OMV and the office of debt recovery cannot be considered a
collection agency as defined in existing law.
Existing law further specifies that the OMV and the Dept. of Revenue, office of debt
recovery, may adopt rules and regulations in accordance with the Administrative Procedure
Act to implement the provisions of existing law.
New law creates the Reinstatement Relief Program. Specifies that the commissioner of the
OMV is authorized to implement a Reinstatement Relief Program for persons who owe
reinstatements fees imposed pursuant to existing law for having a lapse in insurance
coverage.
New law requires the commissioner to determine the amount of reinstatement fees a person
owes. Requires the person promptly pay the amount determined to be owed no later than 10
calendar days from the date the commissioner sets the amount that is owed. Additionally,
specifies that if the person needs to make payment arrangements, the person is to execute an
installment agreement with the OMV. Further provides that such an installment agreement
will only be fore the amount determined to be owed by the commissioner together with all
fees associated with the installment agreement as provided existing law.
New law specifies if a person executes an installment contract; that person must maintain
eligibility to remain in the Reinstatement Relief Program only if they make all payments
required in the installment agreement. Further specifies, that if a person fails to make a
timely payment; and fails to pay the missed payment with the associated late fee before the
next scheduled payment, the person must be removed from the Reinstatement Relief Program
and will not be eligible to reenter the Reinstatement Relief Program.
New law allows the commissioner to request documentation and information from the person
that is necessary to determine the amount of any payment and the number of any payment
including but not limited to income tax returns and prior bankruptcy filings.
New law establishes that if the person successfully completes the Reinstatement Relief
Program, the OMV must issue documentation to the person indicating the amount of debt
that was paid and the amount of debt that was forgiven. New law requires the provisions of new law retroactively apply to all persons whose debt on
the effective date of the Act, even if the debt has already been referred to the office of debt
recovery.
New law specifies any debt referred to the office of debt recovery on or before the effective
date of this Act, will be considered delinquent debt if the debt was 60 days or more past due,
as provided in Act No. 414 of the 2015 R.S.
Effective upon signature of the governor (June 11, 2024).
(Amends R.S. 32:8(A)(2) and (3) and (B) and 429.4(B) and (E)-(H); Adds R.S. 32:8(D),
414(X), 429.4(A)(5) and (I), and 863.1.2)