Authorize the Chief Financial Officer to execute an agreement with the California Franchise Tax Board Court-Ordered Debt Collections Program for collection services for the period of January 1, 2026 to December 31, 2029.  (No general fund impact) (Haynes/Sorensen)

Authorize the Chief Financial Officer to execute an agreement with the California Franchise Tax Board Court-Ordered Debt Collections Program for collection services for the period of January 1, 2026 to December 31, 2029.

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. Historically, these fines and fees have been 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 20% and is subsequently adjusted to the actual percentage. Private collection agencies charge approximately 30%-50% of the amount collected to perform similar services.