Title
Treasurer-Tax Collector, Revenue Recovery Division, recommending the Board approve and authorize the Purchasing Agent to sign Agreement for Services 9095 with the California Franchise Tax Board, to be effective upon execution through December 31, 2027, to allow for participation in the Franchise Tax Board’s Court-Ordered Debt Collection Program.
FUNDING: The Franchise Tax Board retains an administrative fee pursuant to Revenue & Taxation Code Sections 19280-19283 to cover the cost of administering this Program.
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DISCUSSION / BACKGROUND
Since 2006, the Revenue Recovery Division has contracted with the Franchise Tax Board to participate in the Franchise Tax Board's Court-Ordered Debt Collection Program ("FTB-COD") for the purpose of collecting unpaid court-ordered fines, forfeitures and penalties. The FTB-COD is a comprehensive collections Program offered by the Franchise Tax Board to counties. The Program supplements collection efforts when court-ordered debt goes unpaid. The Franchise Tax Board can garnish wages and bank accounts and intercept tax refunds to collect the debts. The Revenue Recovery Division is authorized to operate a Comprehensive Court Collection Program pursuant to Penal Code Section 1463.007. The legal authority for the FTB-COD program is contained in Revenue and Taxation Code Sections 19280 through 19283 and Penal Code Sections 1463.010 through 1463.012.
Administrative fees that will be retained by the Franchise Tax Board throughout the one-year term are unknown because the fee is based on amounts collected.
ALTERNATIVES
If the item is not approved, Treasurer-Tax Collector Office, Revenue Recovery Division, will not be able to participate in the FTB-COD Program, potentially resulting in a reduced amount of debt collections.
PRIOR BOARD ACTION
Legistar #21-1988, January 25, 2022 - FTB-COD Program
Legistar #18-1156, November 20, 2018 - FTB-COD Program
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
No change to Net County Cost. The Franchise Tax Board retains an administrative fee pursuant to Revenue & Taxation Code Sections 19280-19283 to cover the cost of administering this Program.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Upon Board approval and execution, please forward signed amendment to the Treasurer-Tax Collector Office for execution.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
K. E. Coleman, MBA