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HB 1173

MTR VEHICLE/OFFICE: Provides with respect to installment agreements entered into through the Reinstatement Relief Program operated by the office of motor vehicles

2026 Regular Session Introduced by Tehmi Chassion and 1 co-sponsor

HB 1173 extends the first three missed payments, adds a late fee from the fourth miss, and ties Reinstatement Relief Program eligibility to compliance with these updated installmen

Effective date: 08/01/2026.
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WeVote Research Nonpartisan
Bill Summary · HB 1173

Summary of HB 1173 (2026, Louisiana)

Purpose and intent

HB 1173 modifies terms related to installment agreements for outstanding fines, penalties, and fees owed to the Louisiana Office of Motor Vehicles (OMV) under the Reinstatement Relief Program. The bill clarifies how late payments are treated, extends the handling of missed payments, and refines the conditions for removal from the Reinstatement Relief Program.

Key provisions and changes

  • Installment agreements (R.S. 32:429.4(E))

    • Current law: A missed scheduled payment triggers a $25 late fee; the missed payment must be paid before the next scheduled date, otherwise the agreement remains in place and action ends there.
    • HB 1173 change:
    • The first three missed payments are added to the end of the installment payment schedule.
    • A fourth or any subsequent missed payment triggers the $25 late fee in addition to the amount due.
    • The installment agreement remains in place through a fourth (and any subsequent) missed payment.
    • If a missed payment occurs, the debtor may still pay the missed amount plus the late fee after receiving an electronic notice, and the agreement continues.

  • Reinstatement Relief Program (R.S. 32:863.1.2(B))

    • Present law: The commissioner sets reinstatement fees; the person must promptly pay within 10 days; eligibility to remain in the program requires timely payments per the installment agreement; failure to pay on time or to pay the missed payment with the late fee before the next scheduled payment results in removal from the program and ineligibility to reenter.
    • HB 1173 change:
    • A person enrolled in the Reinstatement Relief Program will be removed for failing to meet the requirements of the proposed law (i.e., the installment-agreement-based rules in 32:429.4), rather than simply for failing to make a timely payment and to pay the associated late fee.

  • Interaction between provisions

    • If a debtor falls behind, eligibility to remain in the Reinstatement Relief Program hinges on complying with the updated installment-agreement framework (the “first three missed payments” rule and the fourth+ missed payment late fee mechanism).

Who is affected

  • Individuals who owe fines, penalties, and fees to the OMV and enter the Reinstatement Relief Program or an OMV installment agreement.
  • OMV as the administrator of the program and the installment agreements.

Procedural and timeline aspects

  • Installment agreements:
    • First three missed payments are not immediately grounds for removal; they are added to the end of the payment schedule.
    • A fourth or later missed payment triggers the $25 late fee and maintains the agreement while the debtor can still cure the missed payment (with notice) prior to the next scheduled date.
  • Removal from the program:
    • Under the bill, removal from the Reinstatement Relief Program occurs for failing to meet the requirements of the updated installment-agreement rules (32:429.4), rather than solely for missing a payment and late fee under current law. This potentially broadens or alters the basis for removal to the specific compliance with the installment terms.

Effective date

  • The bill relates to existing statutes (amending and reenacting 32:429.4(E) and 32:863.1.2(B)). The text provided does not specify an effective date; typically, such bills become effective on August 1 following enactment or upon signature, unless otherwise specified in the act.

Summary evaluation

HB 1173 clarifies and adjusts how late fees and missed payments are handled within OMV installment agreements and ties program eligibility more directly to compliance with these installment terms. It offers a structured approach to handling missed payments (via schedule extension for the first three misses) and standardizes the removal criteria to reflect adherence to the revised payment framework.

Compiled from official sources — confirm details with the bill’s official record.

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