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Child Support Services, Revenue Recovery Division, recommending the Board authorize the Chair to sign Agreement for Services 184-S1711 with the California Franchise Tax Board, for the term December 1, 2016 to November 30, 2019, to allow for the continued participation in the Court Ordered Debt Collection Program.
FUNDING: Administrative Fees charged by the Franchise Tax Board on amounts collected from debtors.
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DEPARTMENT RECOMENDATION
The Department is requesting Board approval of this agreement as the total amount of administrative fees that will be retained by the State Franchise Board throughout the three year term is unknown. This is due to the fact that the fee is based on the amount collected. The legal authority for the FTB COD program is contained in Revenue and Taxation Code Sections 19280 through 19283 and Penal Code Section 1463.010.
DISCUSSION/BACKGROUND
Since 2006, the Revenue Recovery Division has contracted with the Franchise Tax Board to participate in the Court Ordered Debt Collection Program (FTB-COD) for the purpose of collecting unpaid court ordered fines, forfeitures and penalties. The Revenue Recovery Division is mandated to operate a Comprehensive Court Collection program pursuant to Penal Code Section 1463.007. The Department's MOU with the Superior Court requires participation in this program and the vast majority of payments collected through this process are court-related debts.
ALTERNATIVES
If the item is not approved, Child Support Services, Revenue Recovery Division, will not be able to perform revenue recovery services for the court ordered debt collection program.
CAO RECOMMENDATION
It is recommended that the Board approve this item.
OTHER DEPARTMENT/AGENCY INVOLVEMENT
County Counsel and Human Resources
FISCAL 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
1. Board Chair to sign three (3) originals of Agreement 184-S1711.
2. Board Clerk to return three (3) signed original Agreements to Child Support Services.
3. Child Support Services to obtain State signatures on Agreements.
4. Child Support Services to distribute fully executed Agreements as appropriate.
STRATEGIC PLAN
N/A
CONTACT
Don Semon, Child Support Services Director, ext. 7363