§ 47:1677 — Financial institution data match

§1677. Financial institution data match
A. A financial institution or its processor shall provide to the department or the
office, the name, record address, social security number or other taxpayer identification
number, any other identifying information, and an average daily account balance for the most
recent thirty-day period, for each calendar quarter for each account owner who maintains an
account at such institution and who the office purports is a tax or nontax debtor. A financial
institution may also provide the information described in this Subsection pertaining to any
co-owner of such account.
B. For purposes of this Section, the following words or phrases shall have the
following meanings unless the context clearly indicates otherwise:
(1) "Account" shall mean any money held in the name of an account owner,
individually or jointly with another, including but not limited to a deposit account, demand
account, savings account, negotiable order of withdrawal account (NOW account), share
account, member account, time certificate of deposit, or money market account. "Account"
shall not include money held by a financial institution where the tax or nontax debtor is listed
in a capacity other than owner, such as an authorized signer only, custodian, tutor, or agent.
(2) "Financial institution" shall mean a state or federally chartered bank, savings
bank, savings and loan association, or credit union operating in this state with a main office
or one or more branch offices.
(3) "Nontax debtor" shall mean an individual against whom an assessment or
judgment for a debt owed to the state has become final and is currently enforceable in
accordance with the law.
(4) "Tax debtor" shall mean an individual against whom an assessment or judgment
for state taxes payable has become final and is currently enforceable in accordance with law.
C.(1) If a financial institution or its processor has a current data match system
developed or used to comply with the child support data match system provided for in R.S.
46:236.1.4, the financial institution or its processor may use that system to comply with the
provisions of this Section. The office shall not require a financial institution or its processor
to change their data match system or file format established under R.S. 46:236.1.4 in order
to comply with this Section.
(2) For Louisiana-domiciled financial institutions having no branch offices outside
the state, the office or its data match vendor shall ensure that compliance with both the
provisions of this Section and R.S. 46:236.1.4 may be accomplished with a single data match
file. Louisiana-domiciled institutions having no branch offices outside the state, or their
processor, shall not be required to process multiple data match files to comply with this
Section.
D. A financial institution may, but is not required to, disclose to its depositors or
account holders that the department or the office has the authority to request and receive
certain identifying information provided for in this Section for state tax and nontax debt
collection purposes.
E.(1) No financial institution, including its directors, officers, employees, attorneys,
accountants, or other agents, shall incur liability to any person, including any depositor or
other customer, as a result of providing account information to the department or office in
compliance with a request that conforms to the provisions of this Section.
(2) A financial institution, including any of its directors, officers, employees,
attorneys, accountants, or other agents, shall not be civilly or criminally liable to any person,
including any customer, for any disclosure of information made in accordance with this
Section, including any disclosure of account balances.
F.(1) Notwithstanding any other law or rule to the contrary, the department or office
shall pay a participation fee to each financial institution that actually receives a data match
request file. The participation fee to a financial institution shall be for actual costs incurred
for conducting the data match and otherwise complying with the provisions of this Section.
Actual costs incurred for complying with this Section shall be the total cost incurred by the
financial institution to process all data match request files under R.S. 46:236.1.4 and this
Section minus the costs incurred to process data match request files under R.S. 46:236.1.4.
In order to receive the participation fee authorized by this Section, the financial institution
must be FDIC insured.
(2) Before a financial institution receives a participation fee, the financial institution
must show it has incurred costs under R.S. 46:236.1.4 and this Section. The department or
office may require a financial institution to submit paperwork such as invoices and other
documentation to substantiate the costs that have been incurred. After actual costs are
established by a financial institution under Paragraph (1) of this Subsection through
submitted paperwork, the office shall automatically remit payment to the financial institution
on a quarterly basis without the financial institution having to resubmit additional paperwork
each quarter thereafter. However, the office may request additional paperwork from a
financial institution on a periodic basis, not to exceed once every two years, to verify their
actual costs in complying with this Section.
(3) Notwithstanding any other law or rule to the contrary, if a financial institution
assesses a fee to its customer for processing a state tax or state nontax levy received from the
office or the department, the fee shall be collected by the financial institution from the
proceeds of the customer's account before any account proceeds are remitted to the office or
the department to satisfy the state tax or state nontax levy.
(4) The department or office shall be responsible for the reconciliation and tracking
of data and information regarding the number of sent data match request files, received
completed data match accounts, and amounts paid in accordance with this Section. The
department shall also be responsible for tracking and reporting all statistical information
regarding financial data match activities to the commissioner of administration or his
designee every six months and to report the information to the Joint Legislative Committee
on the Budget every session prior to the last day of each legislative session.
(5) At the discretion of the secretary, the department or office and the Department
of Children and Family Services may enter into an agreement to share the costs of
reimbursement fees paid to financial institutions for complying with financial institution data
match laws pursuant to R.S. 46:236.1.4 or this Section. As part of any such agreement, the
department shall make reimbursement out of current allocations.
G. The department, office, and their designated vendor for the data match program,
shall keep all information received from financial institutions pursuant to this Section
confidential, and any employee, agent, or representative of the department, office, and their
designated vendor is prohibited from disclosing that information to any other third party.
H. The department or office shall generally conduct the data match program provided
for in this Section on a quarterly basis. However, if the department or office decides to
conduct data match with a particular financial institution less frequently than every quarter,
the department or office shall provide written notice to the chief operating officer of the
financial institution at least ninety days before the next scheduled quarterly data match date.
If the department or office provides the required notice to change the frequency of data
match, the department or office shall not further change the frequency of data match with that
financial institution for at least one year from the date written notice was provided to the
financial institution originally changing the frequency of the data match schedule. After the
one year period has elapsed, any subsequent changes to the frequency of the data match
schedule with a financial institution shall also be done by the department or office only after
providing written notice to the chief operating officer of the financial institution at least
ninety days in advance of the next data match date.

Legislative History

Acts 2013, No. 399, §3, eff. June 17, 2013; Acts 2015, No. 215, §3.