§429.4. Installment agreement; outstanding penalties, fines, and fees owed to the office of motor vehicles

A. Installment agreements and eligibility. (1)(a) All outstanding penalties, fines, and fees owed to the Department of Public Safety and Corrections, office of motor vehicles, hereinafter referred to as the "office of motor vehicles", shall be paid no later than the date allowed by law. However, the office of motor vehicles shall enter into installment agreements, as authorized by this Section, with eligible persons for payment of their outstanding fines, penalties, and fees owed to the office of motor vehicles. All notices of any outstanding fines, penalties, and fees owed to the office of motor vehicles shall inform the debtor that he may qualify to pay sums due by installment agreement, if eligible, and shall include instructions on how to inquire with the office of motor vehicles to determine eligibility and terms.

(b) An installment agreement shall not be used to pay sales or use taxes or related penalties and interest, vehicle registration license taxes, or titling fees when submitting a transaction to title or register a motor vehicle. However, if the office of motor vehicles has previously sent a notice to the debtor that the payment made on a motor vehicle title or registration transaction was dishonored by a bank processing the transaction, the office of motor vehicles may accept an installment agreement to collect that dishonored payment in addition to any outstanding fees, penalties, or interest that may be added to the total due to the dishonored payment.

(2) A debtor who owes the office of motor vehicles two hundred fifty dollars or more in outstanding fines, penalties, or fees, or any combination thereof, is eligible to pay such amounts by means of an installment agreement with the office of motor vehicles, should all of the following conditions be met:

(a) All conditions of reinstatement other than payment of outstanding fines, penalties, and fees owed to the office of motor vehicles have been satisfied.

(b) A request for an installment agreement is made as required by and within the time provided for in the notice from the office of motor vehicles informing the debtor of any outstanding fines, penalties, and fees owed to the office of motor vehicles.

(3) Upon termination of an installment agreement executed pursuant to this Section, all outstanding amounts due under the installment agreement shall be final debt as defined by R.S. 32:8 or R.S. 47:1676. Any installment agreement entered into pursuant to this Section shall constitute a waiver by the debtor of any right to administrative or judicial review regarding sums due under an installment agreement. Any notices provided to a debtor who enters into an installment agreement pursuant to this Section shall constitute satisfaction of the notice requirements of R.S. 32:8 and R.S. 47:1676.

(4) Any installment agreement entered into by the office of motor vehicles and a debtor shall be in writing and signed by both parties. The office of motor vehicles shall develop an official form to be utilized for installment agreements authorized by this Section. Installment agreements not on this form shall be invalid.

B. Installment agreement payment schedule. Any installment agreement shall require 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 owes two hundred fifty dollars, the debtor shall pay six equal monthly installments.

(2) If the debtor owes from two hundred fifty-one dollars to seven hundred fifty dollars, the debtor shall pay twelve equal monthly installments.

(3) If the debtor owes from seven hundred fifty-one dollars to one thousand five hundred dollars, the debtor shall pay twenty-four equal monthly installments.

(4) If the debtor owes from one thousand five hundred one dollars to two thousand five hundred dollars, the debtor shall pay thirty-six equal monthly installments.

(5) If the debtor owes from two thousand five hundred one dollars to four thousand nine hundred ninety-nine dollars, the debtor shall pay forty-eight equal monthly installments.

(6) If the debtor owes five thousand or more, the debtor shall pay up to sixty monthly installment payments. However, the commissioner of the office of motor vehicles 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 sixty months.

C. Payments. (1) All installment agreement payments shall be made through an electronic automated transaction initiated by the office of motor vehicles or a third party on behalf of the office of motor vehicles. Such installment agreement payments may be made by bank draft, electronic funds transfer, or credit or debit card, including but not limited to reloadable prepaid credit or debit cards. All debtors shall provide necessary information for installment payments to be paid by bank draft, electronic funds transfer, or credit or debit cards.

(2) The debtor shall be issued a statement or receipt indicating the amount paid and the amount outstanding under the installment agreement each time an installment agreement payment is made.

(3) Prepayment of sums due on an installment agreement may be made without the imposition of a penalty.

D. Suspension of installment agreement. The commissioner of the office of motor vehicles may suspend an installment agreement executed pursuant to this Section for up to sixty days following a request by the debtor based upon good cause. Good cause shall be determined by the commissioner. During the term of the suspension of the installment agreement, no payments shall be accepted on the installment agreement. Payments shall resume upon the day following the last day of the suspension period. Any suspension of an installment agreement pursuant to this Subsection shall extend the term of the installment agreement by the length of any suspension. A debtor's driving privileges shall remain active during the suspension period unless otherwise blocked, revoked, or suspended.

E. Termination of installment agreement upon failure to make payment. (1) 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 shall be paid by the debtor within a sixty-day period from the date of notice and demand from the commissioner of the office of motor vehicles. The notice shall further advise the debtor that his driver's license shall be suspended upon the expiration of the sixty-day period if the payments due pursuant to the installment agreement are not made current within that sixty-day period or the agreement is not reinstated by the commissioner of the office of motor vehicles within that sixty-day period. This notice shall be known as "Notice of Installment Agreement Termination and Demand".

(2) The Notice of Installment Agreement Termination and Demand shall satisfy all notice requirements of R.S. 32:8 and R.S. 47:1676. In the event an installment agreement includes payment of delinquent or final debt as defined by R.S. 32:8, such notice shall include all information required by R.S. 32:8. In the event that an installment agreement includes payment of delinquent or final debt as defined by R.S. 47:1676, such notice shall include all information required by R.S. 47:1676. The notice required by this Paragraph shall satisfy the notice requirements of R.S. 32:8 and R.S. 47:1676.

(3) Upon request of the debtor within the sixty-day period from the date of the notice and demand required in Paragraph (1) of this Subsection and approval of the commissioner of the office of motor vehicles, the office of motor vehicles may reinstate the installment agreement after payment of the missed installment.

(4) If no request for reinstatement of an installment agreement is made within sixty days of the notice and demand required by Paragraph (1) of this Subsection, or if the commissioner of the office of motor vehicles rejects a request to reinstate an installment agreement, the installment agreement shall be terminated and any remaining sums due under the installment agreement shall be delinquent and final debt as defined by R.S. 32:8 or R.S. 47:1676 for which the following shall apply:

(a) For sums due which are not debt as defined by R.S. 32:8, the office of motor vehicles may refer any unpaid balance due under the installment agreement for collection by the appropriate office pursuant to R.S. 47:1676 and this Section.

(b) For sums due which are debt as defined by R.S. 32:8, the office of motor vehicles shall refer any unpaid balance due under the installment agreement to the Department of Revenue, office of debt recovery, for collection as provided in R.S. 32:8 and R.S. 47:1676.

F. Driving privileges and vehicle registration. (1) A debtor's Class "E" driving privileges and motor vehicle or truck registration privileges shall be reinstated when an installment agreement is executed by the debtor and the office of motor vehicles. All blocks on the debtor's license record shall be removed at that time. The office of motor vehicles 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 this Section.

(2) If a debtor fails to timely make an installment payment and no request for reinstatement of the installment agreement is made following the commissioner's sending the Notice of Installment Agreement Termination and Demand, or the commissioner of the office of motor vehicles rejects a request to reinstate an installment agreement, the debtor's driving privileges and motor vehicle or truck registration privileges shall be suspended. The provisions of R.S. 32:414 shall apply with regard to judicial review of the suspension and reinstatement of the suspension.

G. Administration of installment agreements. (1) The Department of Public Safety and Corrections, public safety services, may authorize a third party, including but not limited to the Department of Revenue, office of debt recovery, to administer installment agreements executed pursuant to this Section. Such authorized third party may collect payments due pursuant to installment agreements executed pursuant to this Section. Any such authorized third party shall be an authorized agent of the Department of Public Safety and Corrections, public safety services, and may collect the following fees for each transaction completed pursuant to this Section:

(a) A fee not to exceed three dollars for each payment made pursuant to an installment agreement.

(b) Fees authorized by R.S. 40:1322.

(c) Fees authorized pursuant to R.S. 49:316.1.

(2) The provisions of R.S. 47:1576.2 shall not apply to services provided by the Department of Revenue, office of debt recovery, pursuant to this Subsection.

(3) For purposes of this Section, the office of motor vehicles and the office of debt recovery shall not be considered a collection agency as defined in R.S. 9:3534.1.

H. Rules. The office of motor vehicles and the Department of Revenue, office of debt recovery, may adopt rules and regulations in accordance with the Administrative Procedure Act to implement the provisions of this Section.

Acts 2016, No. 397, §1, eff. June 8, 2016.