The bill, HB 851, introduces the crime of tax sale property fraud, making it unlawful for individuals to engage in deceptive practices related to tax sale certificates and tax lien certificates. Specifically, it prohibits actions such as employing schemes to defraud tax debtors, making false statements, and unlawfully receiving funds from tax debtors. The bill establishes penalties for violations, including imprisonment for up to two years, fines of up to $5,000, or both. Additionally, convicted individuals will forfeit their rights to the tax sale certificates and must make restitution to victims, with provisions for a payment plan if they are indigent.

The bill also includes several amendments, such as the addition of a new section (R.S. 14:71.3.2) that defines the crime and outlines the penalties, while repealing the existing section R.S. 14:71.3.1. It specifies that the new provisions will take effect on January 1, 2026, contingent upon the adoption of a proposed constitutional amendment at a statewide election. The bill aims to protect tax debtors and encourage them to seek legal counsel to safeguard their ownership rights.

Statutes affected:
HB851 Enrolled:
HB851 Act 738:
Conference Committee Report, #5119, House Proposed, Senate Proposed:
Conference Committee Report, #5119, House Adopted, Senate Adopted: