HB 1241: CHILDREN/SUPPORT: Directs insurers to conduct data matches and to withhold and remit certain insurance and settlement payments to satisfy child support obligations (EN INCREASE SG RV See Note) - Louisiana

HB1241 Original → HB1241 Act 720 · 4 edits

MODERATE

The bill was finalized into Act 720, updating the text to reflect its enacted status and clarifying the definitions of who must pay child support. The most significant policy change is the addition of a 60-day window for the Department of Children and Family Services to verify debts and return any overpayments, replacing a previous 20-day deadline. This change aims to reduce errors and prevent the wrongful withholding of funds from claimants.

TIMELINE

The deadline for the Department to verify child support debts and return overpayments was extended from 20 days to 60 days after receiving a payment notice.

DEFINITION

The definition of 'Claimant' was simplified to include anyone filing a liability claim for bodily injury, wrongful death, or workers' compensation benefits.

The definition of 'Claim for bodily injury' was updated to explicitly exclude claims under uninsured or underinsured motor vehicle coverage.

REQUIREMENT

New requirements were added to ensure information provided by the Department is used by insurers only for conducting data matches and not for other purposes.

HB1241 Enrolled → HB1241 Original · 4 edits

MODERATE

The bill was renumbered and formatted for its original introduction, and the definition of a 'Claimant' was significantly expanded to include individuals receiving disability insurance benefits, not just those filing liability claims. Additionally, the law now explicitly excludes medical payments coverage from claims subject to child support withholding, and the Department of Children and Family Services is granted priority over liens and property damage claims when withholding funds.

Scope change

The bill's scope was broadened to cover a wider range of individuals receiving financial benefits and clarified which types of insurance coverage are excluded from child support enforcement.

DEFINITION

The definition of 'Claimant' was expanded to include any person receiving disability insurance benefits or workers' compensation benefits, in addition to those filing tort liability claims.

A new provision clarifies that 'Claim for bodily injury' does not include claims for medical payments coverage under motor vehicle liability policies.

ELIGIBILITY

The criteria for who must have child support obligations withheld from insurance payments were broadened to include recipients of disability and workers' compensation benefits.

REQUIREMENT

The priority rules for withholding payments were updated to explicitly state that child support debts take precedence over liens, property damage claims, and medical or funeral expenses.

HB1241 Reengrossed → HB1241 Enrolled · 2 edits · May 27, 2026

MINOR

The bill was finalized and formatted for official enactment, removing internal draft headers and page numbers. The substantive policy content regarding child support enforcement remains unchanged, though the line numbering was reset to reflect the final enrolled version.

Scope change

No change in the bill's scope or applicability; the text represents the same legislative intent as the previous version.

TECHNICAL

Removed draft headers, page numbers, and internal coding instructions that were used during the legislative process.

Adjusted line numbering to match the final enrolled format, shifting the starting line number from 1 to 15 in the first section to align with the document structure.

HB1241 Engrossed → HB1241 Reengrossed · 5 edits · May 19, 2026

MODERATE

The bill was reengrossed to expand the definition of 'Claimant' to include individuals seeking workers' compensation benefits, alongside those filing tort liability claims. This change broadens the scope of the child support enforcement program to capture potential payments from workers' comp claims. Additionally, the bill clarifies the definition of 'Qualifying payment' to explicitly include payments for general damages or lost wages exceeding $500, ensuring these funds are subject to child support withholding.

Scope change

The bill's scope was expanded to include workers' compensation claims, whereas the previous version focused primarily on tort liability and disability insurance benefits.

DEFINITION

The definition of 'Claimant' was updated to explicitly include a person filing a claim for workers' compensation benefits, in addition to tort liability and disability insurance claims.

A new definition for 'Claim for bodily injury' was added to clarify that it does not include claims under uninsured or underinsured motor vehicle coverage.

The definition of 'Qualifying payment' was refined to specify that it includes payments for general damages or lost wages over $500 intended for the claimant, not a third party.

A new definition for 'Insurance claim data collection organization' was added to describe entities maintaining centralized databases for processing claims and preventing fraud.

REQUIREMENT

Requirements for insurers to exchange data with the child support office were clarified to ensure compliance with privacy laws, including the federal Health Insurance Portability and Accountability Act.

CHILDREN/SUPPORT: Directs insurers to conduct data matches and to withhold and remit certain insurance and settlement payments to satisfy child support obligations (EN INCREASE SG RV See Note)

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