Consent-General Government # 28.
Board of Supervisors
Financial Services
- Meeting Date:
- 12/06/2022
- Brief Title
- Franchise Tax Board - Court Ordered Debt Agreement
From:
Chad Rinde, Chief Financial Officer, Department of Financial Services
Staff Contact:
Sou Xiong, Treasury and Revenues Manager, Department of Financial Services, x8212
Supervisorial District Impact:
Countywide
Subject
Authorize the Chief Financial Officer to execute agreement with the California Franchise Tax Board Court-Ordered Debt Collections Program for collection services for the period January 1, 2023 to December 31, 2025. (No general fund impact) (Rinde/Xiong)
Recommended Action
Authorize the Chief Financial Officer to execute agreement with the California Franchise Tax Board Court-Ordered Debt Collections Program for collection services for the period of January 1, 2023 to December 31, 2025.
Strategic Plan Goal(s)
 |
In Support of All Goals (Internal Departments Only) |
Reason for Recommended Action/Background
Yolo County Collection Services in the Department of Financial Services, has successfully used the Franchise Tax Board's Court-Ordered Debt Collections Program (FTB-COD) to collect court ordered delinquent fines and fees since December 1, 2004. These fines and fees are primarily for Probation fees, Public Defender fees, Sheriff's booking fees, and restitution that are ordered to be paid as part of a Court order. Since fees for County departments have been eliminated with AB1869 and AB177, the collection program will now only be used to collect delinquent restitution payments.
The proposed agreement would allow Collection Services to continue to use the FTB-COD program. The partnership with FTB-COD has resulted in the collection of over $2.5 million in delinquent fines and fees since December 1, 2004. FTB-COD charges a fee based on their actual costs to administer the program pursuant to R&T Code Sections 19280 - 19283 calculated as a percentage of actual collections. The percentage is estimated at 15% and is subsequently adjusted to the actual percentage. In the last several years, the percentage averaged approximately 12%. Private collection agencies charge approximately 30%-50% of the amount collected to perform similar services.
The proposed agreement would allow Collection Services to continue to use the FTB-COD program. The partnership with FTB-COD has resulted in the collection of over $2.5 million in delinquent fines and fees since December 1, 2004. FTB-COD charges a fee based on their actual costs to administer the program pursuant to R&T Code Sections 19280 - 19283 calculated as a percentage of actual collections. The percentage is estimated at 15% and is subsequently adjusted to the actual percentage. In the last several years, the percentage averaged approximately 12%. Private collection agencies charge approximately 30%-50% of the amount collected to perform similar services.
Collaborations (including Board advisory groups and external partner agencies)
The Department of Financial Services has collaborated with County Counsel on this agreement.
Competitive Bid Process/Vendor Performance
Not applicable.
Fiscal Impact
No Fiscal Impact
Fiscal Impact (Expenditure)
- Total cost of recommended action:
- $ 0
- Amount budgeted for expenditure:
- $ 0
- Additional expenditure authority needed:
- $ 0
- One-time commitment:
- Yes
Source of Funds for this Expenditure
- General Fund
- $0
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Tom Haynes | Tom Haynes | 11/21/2022 10:44 AM |
| Financial Services | crinde | 11/22/2022 08:37 AM |
| County Counsel | Hope Welton | 11/22/2022 09:03 AM |
- Form Started By:
- sxiong
- Started On:
- 10/28/2022 12:08 PM
- Final Approval Date:
- 11/22/2022