Date:
October 6, 2026 05
To: Board of Supervisors
Title
Authorize Renewal Agreement with the California Franchise Tax Board for the Collection of Court-Ordered Debt (Districts: All)
End
Overview
The County of San Diego (County) began participating in the Court-Ordered Debt Collection Program (Program) administered by the California Franchise Tax Board (FTB) in 2000. Through the Program, the County refers qualifying delinquent accounts to the FTB, which has access to information and statewide collection resources not available through the County’s local collection operations. The FTB uses these resources to identify sources of payment and pursue collection.
The County continues to conduct its own collection activities using available local resources. Participation in the FTB Program expands and strengthens the County’s collection efforts by providing an additional resource to pursue delinquent courtordered debt. This partnership enhances the County’s ability to fulfill courtordered obligations and expedite restitution to victims, while improving collections performance, maximizing cost recovery, and reinforcing public confidence in the justice system.
Pursuant to California Revenue and Taxation Code Sections 19280–19283, the FTB is authorized to recover its costs of administration by retaining a portion of amounts collected through the Program. The administrative fee is established by statute and reflected in the agreement between the County and the FTB. The FTB deducts that fee from collections prior to distribution of net proceeds to the County. Under the AB 132 Trailer Bill, Revenue and Taxation Code Section 19282 was amended to increase the maximum administrative fee from 15% to 20%. The Governor approved this bill to take effect on July 1, 2025. The administrative fee increase applies to all contracts that are set to renew on or after July 1, 2025. The County’s contract with the FTB is set to expire and subject to renewal on November 30, 2...
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