Title
Treasurer-Tax Collector, Revenue Recovery Division, recommending the Board authorize the Chair to sign Agreement for Services 3464 with the California Franchise Tax Board, for the term January 1, 2019 to December 31, 2021, to allow for the 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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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 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, 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 the Penal Code Sections 1463.010 through 1463.012. Administrative fees that will be retained by the Franchise Tax Board throughout the three year term are unknown because the fee is based on amounts collected.
ALTERNATIVES
If the item is not approved, Treasurer-Tax Collector, Revenue Recovery Division, will not be able to perform revenue recovery services for the court ordered debt collection program.
PRIOR BOARD ACTION
N/A
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 BOAR...
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