In an effort to reduce the amount of court-ordered debt owed in the state, the California Legislature authorized the Franchise Tax Board (FTB) and county superior, municipal and justice courts to form partnerships to collect court-ordered debts. FTB collects criminal fines, penalties, forfeitures and restitution orders, as well as most Vehicle Code violations. FTB's Court-Ordered Debt Collection program is authorized under Section 19280 of the California Revenue and Taxation Code.
In locating an individual's assets, FTB has the ability to search through more than 220 million income records, including wage information on all California employee and interest and dividend information on all California accounts. These income records also show all other reportable income on California residents, such as commissions, rents, and royalties. Once assets are located, FTB can issue levies that are not limited by intrastate jurisdictional boundaries. FTB also has the authority to seize real and personal property, such as vacant land, cash safe deposit boxes, vehicles and boats.
By establishing a partnership with the State, Revenue Services will broaden the scope of collection resources available for securing debts owed to the County. This agreement will assist Revenue Services in maximizing our collection efforts. Utilizing the Franchise Tax Board to assist with collections for the County was also recommended by the County auditors.
In reviewing the contract from the State, we observed that their non-discrimination clause does not speak to discrimination due to a person's sexual orientation. However, the State Attorney's office will not approve changes to the language. We understand that the State non-discrimination language is not consistent with the County standard; however, we have entered into other agreements with them with no problems. |
The amount of the contract will be based on the amount of revenue collected by the Franchise Tax Board. Their collection fee is 15%. This contract will be for an amount not to exceed $200,000 over a period of 19-months. If collections exceed projections, we will request a modification to increase the total amount of the contract. |