HB 6: CRIME/THEFT: Creates the crime of misappropriation of funds in connection with the payment of utility services (EN SEE FISC NOTE GF EX) - Louisiana

HB6 Original → HB6 Act · 5 edits

MODERATE

This bill transforms a draft proposal into an official act, formally enacting a new crime for misappropriating utility funds. It establishes specific penalties based on the amount of money diverted and adds a 'good faith' exception for administrative errors, ensuring the law targets intentional fraud rather than simple mistakes.

Scope change

The bill's scope is now finalized as law, expanding the definition of 'utility services' to explicitly include heat and steam, and clarifying that the law applies to both individuals and business entities.

ENFORCEMENT

Formally enacted R.S. 14:71.5 as a new criminal statute with tiered penalties ranging from six months to twenty years in prison depending on the value of misappropriated funds.

EXCEPTIONS

Introduced a specific exception stating the law does not apply if the failure to pay is due to administrative, clerical, or technical errors by the utility company.

DEFINITION

Updated the definition of 'utility services' to explicitly list heat and steam, and clarified that 'person' includes representatives and officers of corporations.

REQUIREMENT

Added a legislative intent statement to clarify that the law targets a pattern of intentional misconduct rather than isolated disputes.

TECHNICAL

Changed the document status from a prefiled bill to an enrolled act and updated the page count to reflect the final version.

HB6 Enrolled → HB6 Original · 6 edits

MODERATE

This bill transforms the handling of utility fund misappropriation from a general fraud charge into a specific crime with stricter penalties and broader consequences. The changes increase the maximum prison sentence from ten years to ten years (unchanged) but raise the maximum fine significantly from $50,000 to $100,000. Additionally, the law now mandates restitution for victims and allows for the seizure of property used in the crime, while also adding this offense to the list of crimes that can trigger racketeering investigations.

Scope change

The scope expanded to explicitly include broadband, cable television, heat, and steam services under the definition of 'utility services,' whereas the original text was more limited. The bill also adds a new requirement for restitution and forfeiture proceedings that were not explicitly detailed in the original version.

ENFORCEMENT

Increased the maximum fine for the crime from $50,000 to $100,000.

Added a mandatory requirement for convicted persons to make full restitution to victims and those who suffered financial loss.

Added provisions allowing for the seizure and forfeiture of property used to commit the offense.

ELIGIBILITY

Added the misappropriation of utility funds as a specific element of racketeering activity.

DEFINITION

Expanded the definition of 'utility services' to include broadband, cable television, heat, and steam services.

REQUIREMENT

Added a provision for indigent defendants to pay restitution through a court-approved periodic payment plan.

HB6 Reengrossed → HB6 Enrolled · 4 edits · Jun 11, 2025

MODERATE

The bill was finalized as an enrolled law, removing procedural notes and adding official signatures. The core criminal statute was expanded to include specific exceptions for tenants who cannot pay due to administrative errors or lack of funds, and the penalty structure was reorganized into four distinct tiers based on the amount of misappropriated funds.

Scope change

The bill's scope was broadened to explicitly exempt individuals from criminal liability if they failed to pay utility bills due to administrative errors by the utility company or an inability to pay, whereas the previous version lacked these specific defenses.

ELIGIBILITY

Added exceptions stating the law does not apply if the person is unable to pay due to administrative errors by the utility provider or a genuine inability to pay the bill.

ENFORCEMENT

Reorganized penalties into four specific tiers based on the value of misappropriated funds, ranging from under $1,000 to over $25,000, with corresponding prison terms and fines for each level.

DEFINITION

Added a new definition for 'Utility services' to clarify that it includes water, electricity, gas, heat, or sewer services regardless of the provider type.

TECHNICAL

Removed the 'Prefiled pursuant to...' constitutional note and the House Legislative Services digest, as these are procedural documents not required in the final enrolled version.

HB6 Engrossed → HB6 Reengrossed · 1 edit · Jun 8, 2025

MINOR

The bill was reengrossed to correct a drafting error where the legislative intent and definitions were accidentally placed after the new criminal statute. The substantive policy changes remain consistent with the previous version, establishing a new crime for misappropriating utility funds collected under lease agreements.

Scope change

The bill's scope and applicability remain unchanged; the reengrossed version simply reorders the text to place the legislative intent and definitions before the new statute.

TECHNICAL

Reordered the text to move the legislative intent and definitions sections to appear before the new criminal statute, fixing a structural error in the previous draft.

CRIME/THEFT: Creates the crime of misappropriation of funds in connection with the payment of utility services (EN SEE FISC NOTE GF EX)

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