Title
Chief Administrative Office recommending the Board adopt a Resolution authorizing the acceptance of credit cards, debit cards or electronic funds transfers for payment of legally permissible fines, fees and charges.
Resolution 024-2010
Body
Background:
California Government Code Section 6159 permits the Board of Supervisors to authorize the acceptance of credit cards, debit cards or electronic funds transfers for legally permissible fines, fees and charges. Once the Board authorizes acceptance of these forms of payment, contracts may be executed with one or more credit card issuers, debit card issuers, electronic funds transfer processors, or draft purchasers. Government Code 6159(g) further authorizes the County to impose a fee for the use of such forms of payment, not to exceed the costs incurred by the County.
Reason for Recommendation:
Several departments have expressed an interest in allowing alternative forms of payment for the convenience of the public and for the improved collection and tracking of accounts receivable. Government Code 6159 requires that the Board authorize such payment alternatives and specifies that once approval is obtained, contracts may be executed to facilitate such payments.
Once the proposed resolution is adopted, departments can begin identifying the fines, fees and other charges allowable for alternative form of payment under GC6159(b) and then work with the CAO, Auditor-Controller and Treasurer/Tax Collector to develop and implement the necessary contracts and internal procedures to accept such payments. Fines, fees, debts and charges allowable for alternative forms of payment include filing fees, towage or storage costs, payment of child support, payment for services rendered by the County, and payment of any fee, charge or tax due to the County.
The Chief Administrative Office acknowledges that acceptance of alternative forms of payment will require advance coordination with the Auditor-Controller, Treasurer Tax Collector, Information Technologies and the requesting department. The proposed resolution requires concurrence from the Chief Administrative Officer, Auditor-Controller and Treasurer/Tax Collector prior to the negotiation of any contract to ensure that issues regarding internal controls, system requirements, reconciliation processes and cost recovery are addressed before time and resources are committed. Should any proposed fees for the use of alternative forms of payment be recommended, the fees would be brought to the Board for approval.
The Revenue Recovery Division of Child Support Services currently accepts credit card payments under a previous resolution adopted by the Board for the Treasurer/Tax Collector. The Child Support Director is interested in expanding the current payment processes to include acceptance of debit cards, electronic funds transfers and online payments and is willing to serve as a "pilot department" for acceptance of these alternative forms of payment. The Chief Administrative Office recommends using this department pilot project to evaluate the impact of such a project on the affected departments prior to expanding this opportunity to other departments.
Action to be taken following Board approval:
1) Board Chair to sign resolution.
2) Child Support Department to work with CAO, Auditor-Controller and Treasurer/Tax Collector to develop the required internal controls, policies and procedures and proposed contracts for acceptance of alternative forms of payment.
3) Chief Administrative Office and Child Support Services will provide the Board with an update on the status of the pilot project and for the approval of any related contracts.
Contact: Terri Knowlton / Sue Hennike xt. 5530
Concurrences: County Counsel has reviewed and approved the proposed resolution.