SECTIONS 19270-19276 - California Statutes

REVENUE AND TAXATION CODE

SECTION 19270-19276

19270. (a) Consistent with the development and implementation of
the California Child Support Automation System (CCSAS), the Franchise
Tax Board and the Department of Child Support Services shall enter
into a letter of agreement and an interagency agreement whereby the
Department of Child Support Services shall assume responsibility for
collection of child support delinquencies and the Financial
Institution Data Match System as set forth in this article. The
letter of agreement and the interagency agreement shall, at a
minimum, set forth all of the following:
(1) Contingent upon the enactment of the Budget Act, and staffing
authorization from the Department of Finance and the Department of
Personnel Administration, the Department of Child Support Services
shall assume responsibility for leadership and staff of collection of
child support delinquencies and the Financial Institution Data Match
System.
(2) All employees and other personnel who staff or provide support
for the collection of child support delinquencies and the Financial
Institution Data Match System at the Franchise Tax Board shall become
the employees of the Department of Child Support Services at their
existing or equivalent classification, salaries, and benefits.
(3) Any other provisions necessary to ensure continuity of
function and meet or exceed existing levels of service, including,
but not limited to, agreements for continued use of automated systems
used by the Franchise Tax Board to locate child support obligors and
their assets.
(b) It is the intent of the Legislature that any provision of
income tax return information by the Franchise Tax Board to the
Department of Child Support Services pursuant to this article shall
be done in accordance with the privacy and confidential information
laws of this state and the United States, and to the satisfaction of
the Franchise Tax Board.

19271. (a) (1) For purposes of this article:
(A) "Child support delinquency" means a delinquency defined in
subdivision (c) of Section 17500 of the Family Code.
(B) "Earnings" may include the items described in Section 5206 of
the Family Code.
(2) At least 20 days prior to the date that the Franchise Tax
Board commences collection action under this article, the Franchise
Tax Board shall mail notice of the amount due to the obligated parent
at the last known address and advise the obligated parent that
failure to pay will result in collection action. If the obligated
parent disagrees with the amount due, the obligated parent shall be
instructed to contact the local child support agency to resolve the
disagreement.
(b) (1) (A) Except as otherwise provided in subparagraph (B), when
a delinquency is transferred to the Franchise Tax Board pursuant to
subdivision (c) of Section 17500 of the Family Code, the amount of
the child support delinquency shall be collected by the Franchise Tax
Board in any manner authorized under the law for collection of a
delinquent personal income tax liability. Notwithstanding Sections
5208 and 5246 of the Family Code, the issuance of an order and levy
under Article 4 (commencing with Section 706.070) of Chapter 5 of
Division 2 of Title 9 of Part 2 of the Code of Civil Procedure in the
manner provided for earnings withholding orders for taxes is hereby
authorized until the California Child Support Automation System is
operational in all 58 California counties. When the California Child
Support Automation System is operational in all 58 counties, any levy
or other withholding of earnings of an employee by the Franchise Tax
Board to collect an amount pursuant to this section shall be made in
accordance with Sections 5208 and 5246 of the Family Code. Any other
law providing for the collection of a delinquent personal income tax
liability shall apply to any child support delinquency transferred
to the Franchise Tax Board in the same manner and with the same force
and effect and to the full extent as if the language of those laws
had been incorporated in full into this article, except to the extent
that any provision is either inconsistent with a provision of this
article or is not relevant to this article.
(B) When a delinquency is transferred to the Franchise Tax Board,
or at any time thereafter, if the obligated parent owes a delinquent
personal income tax liability, the Franchise Tax Board shall not
engage in, or shall cease, any involuntary collection action to
collect the delinquent personal income tax liability, until the child
support delinquency is paid in full. At any time, however, the
Franchise Tax Board may mail any other notice to the taxpayer for
voluntary payment of the delinquent personal income tax liability if
the Franchise Tax Board determines that collection of the delinquent
personal income tax liability will not jeopardize collection of the
child support delinquency. However, the Franchise Tax Board may
engage in the collection of a delinquent personal income tax
liability if the obligor has entered into a payment agreement for the
child support delinquency and is in compliance with that agreement,
and the Franchise Tax Board determines that collection of the
delinquent personal income tax liability would not jeopardize
payments under the child support payment agreement.
(C) For purposes of subparagraph (B):
(i) "Involuntary collection action" includes those actions
authorized by Section 18670, 18670.5, 18671, or 19264, by Article 3
(commencing with Section 19231), or by Chapter 5 (commencing with
Section 706.010) of Division 2 of Title 9 of Part 2 of the Code of
Civil Procedure.
(ii) "Delinquent personal income tax liability" means any taxes,
additions to tax, penalties, interest, fees, or other related amounts
due and payable under Part 10 (commencing with Section 17001) or
this part.
(iii) "Voluntary payment" means any payment made by obligated
parents in response to any notice for voluntary payment mailed by the
Franchise Tax Board.
(2) Any compensation, fee, commission, expense, or any other fee
for service incurred by the Franchise Tax Board in the collection of
a child support delinquency authorized under this article shall not
be an obligation of, or collected from, the obligated parent. A
transferred child support delinquency shall be final and due and
payable to the State of California upon written notice to the
obligated parent by the Franchise Tax Board.
(3) For purposes of administering this article:
(A) This chapter and Chapter 7 (commencing with Section 19501)
shall apply, except as otherwise provided by this article.
(B) Any services, information, or enforcement remedies available
to a local child support agency or the Title IV-D agency in
collecting child support delinquencies or locating absent or
noncustodial parents shall be available to the Franchise Tax Board
for purposes of collecting child support delinquencies under this
article, including, but not limited to, any information that may be
disclosed by the Franchise Tax Board to the California Parent Locator
Service under Section 19548. However, in no event shall the
Franchise Tax Board take any additional enforcement remedies if a
court has ordered an obligor to make scheduled payments on a child
support arrearages obligation and the parent is in compliance with
that order, unless the Franchise Tax Board is specifically authorized
to take an enforcement action to collect a child support delinquency
by another provision of law.
(C) A request by the Franchise Tax Board for information from a
financial institution shall be treated in the same manner and to the
same extent as a request for information from a local child support
agency referring to a support order pursuant to Section 17400 of the
Family Code for purposes of Chapter 20 (commencing with Section 7460)
of Division 7 of Title 1 of the Government Code (relating to
governmental access to financial records), notwithstanding any other
provision of law which is inconsistent or contrary to this paragraph.
(D) The amount to be withheld in an order and levy to collect
child support delinquencies under Article 4 (commencing with Section
706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code
of Civil Procedure is the amount required to be withheld pursuant to
an earnings withholding order for support under Section 706.052 of
the Code of Civil Procedure.
(E) Nothing in this article shall be construed to modify the tax
intercept provisions of Article 8 (commencing with Section 708.710)
of Chapter 6 of Division 2 of Title 9 of Part 2 of the Code of Civil
Procedure.
(c) Interest on the delinquency shall be computed pursuant to
Section 685.010 of the Code of Civil Procedure.
(d) (1) In no event shall a collection under this article be
construed to be a payment of income taxes imposed under this part.
(2) In the event an obligated parent overpays a liability imposed
under this part, the overpayment shall not be credited against any
delinquency collected pursuant to this article. In the event an
overpayment of a liability imposed under this part is offset and
distributed to a local child support agency pursuant to Sections
12419.3 and 12419.5 of the Government Code or Section 708.740 of the
Code of Civil Procedure, and thereby reduces the amount of the
referred delinquency, the local child support agency shall
immediately notify the Franchise Tax Board of that reduction, unless
the Franchise Tax Board directs otherwise.
(e) (1) The Franchise Tax Board shall administer this article, in
conjunction with regulations adopted by the Department of Child
Support Services in consultation with the Franchise Tax Board,
including those set forth in Section 17306 of the Family Code.
(2) The Franchise Tax Board may transfer to or allow a local child
support agency to retain a child support delinquency for a specified
purpose for collection where the Franchise Tax Board determines,
pursuant to regulations established by the Department of Child
Support Services, that the transfer or retention of the delinquency
for the purpose so specified will enhance the collectibility of the
delinquency. The Franchise Tax Board, with the concurrence of the
Department of Child Support Services, shall establish a process
whereby a local child support agency may request and shall be allowed
to withdraw, rescind, or otherwise recall the transfer of an account
that has been transferred to the Franchise Tax Board.
(3) If an obligor is disabled, meets the SSI resource test, and is
receiving Supplemental Security Income/State Supplementary Payments
(SSI/SSP), or, but for excess income as described in Section 416.1100
et seq. of Part 416 of Title 20 of the Code of Federal Regulations,
would be eligible to receive as Supplemental Security Income/State
Supplementary Payments (SSI/SSP), pursuant to Section 12200 of the
Welfare and Institutions Code, and the obligor has supplied the local
child support agency with proof of his or her eligibility for, and,
if applicable, receipt of, SSI/SSP or Social Security Disability
Insurance benefits, then the child support delinquency shall not be
referred to the Franchise Tax Board for collection, and if referred,
shall be withdrawn, rescinded, or otherwise recalled from the
Franchise Tax Board by the local child support agency. The Franchise
Tax Board shall not take any collection action, or if the agency has
already taken collection action, shall cease collection actions in
the case of a disabled obligor when the delinquency is withdrawn,
rescinded, or otherwise recalled by the local child support agency in
accordance with the process established as described in paragraph
(2).
(f) Except as otherwise provided in this article, any child
support delinquency transferred to the Franchise Tax Board pursuant
to this article shall be treated as a child support delinquency for
all other purposes, and any collection action by the local child
support agency or the Franchise Tax Board with respect to any
delinquency referred pursuant to this article shall have the same
priority against attachment, execution, assignment, or other
collection action as is provided by any other provision of state law.
(g) Except as otherwise specifically provided in subparagraph (B)
of paragraph (1) of subdivision (b), the child support collection
activities authorized by this article shall not interfere with the
primary mission of the Franchise Tax Board to fairly and efficiently
administer the Revenue and Taxation Code for which it is responsible.
(h) Information disclosed to the Franchise Tax Board shall be
considered information that may be disclosed by the Franchise Tax
Board under the authority of Section 19548 and may be disseminated by
the Franchise Tax Board accordingly for the purposes specified in
Sections 17505 and 17506 of the Family Code (in accordance with, and
to the extent permitted by, Section 17514 of the Family Code and any
other state or federal law).
(i) A local child support agency may not apply to the Department
of Child Support Services for an exemption from the transfer of
responsibilities and authorities to the Franchise Tax Board under the
Family Code or participation under Section 19271.6.
(j) Except in those cases meeting the specified circumstances
described in the regulations or in accordance with the processes
prescribed in paragraphs (2) and (3) of subdivision (e), a local
child support agency shall not request or be allowed to retain,
withdraw, rescind, or otherwise recall the transfer of a child
support delinquency transferred to the Franchise Tax Board.

19271.6. (a) The Franchise Tax Board, through a cooperative
agreement with the Department of Child Support Services, and in
coordination with financial institutions doing business in this
state, shall operate a Financial Institution Match System utilizing
automated data exchanges to the maximum extent feasible. The
Financial Institution Match System shall be implemented pursuant to
guidelines prescribed by the Department of Child Support Services and
the Franchise Tax Board. These guidelines shall include a structure
by which financial institutions, or their designated data processing
agents, shall receive from the Franchise Tax Board the file or files
of past-due support obligors compiled in accordance with subdivision
(c), that the institution shall match with its own list of
accountholders to identify past-due support obligor accountholders at
the institution. To the extent allowed by the federal Personal
Responsibility and Work Opportunity Reconciliation Act of 1996, the
guidelines shall include an option by which financial institutions
without the technical ability to process the data exchange, or
without the ability to employ a third-party data processor to process
the data exchange, may forward to the Franchise Tax Board a list of
all accountholders and their social security numbers, so that the
Franchise Tax Board shall match that list with the file or files of
past-due support obligors compiled in accordance with subdivision
(c).
(b) The Financial Institution Match System shall not be subject to
any limitation set forth in Chapter 20 (commencing with Section
7460) of Division 7 of Title 1 of the Government Code. However, any
use of the information provided pursuant to this section for any
purpose other than the enforcement and collection of a child support
delinquency, as set forth in Section 19271, shall be a violation of
Section 19542.
(c) (1) Each county shall compile a file of support obligors with
judgments and orders that are being enforced by local child support
agencies pursuant to Section 17400 of the Family Code, and who are
past due in the payment of their support obligations. The file shall
be compiled, updated, and forwarded to the Franchise Tax Board, in
accordance with the guidelines prescribed by the Department of Child
Support Services and the Franchise Tax Board.
(2) The Department of Child Support Services, shall compile a file
of obligors with support arrearages from requests made by other
states for administrative enforcement in interstate cases, in
accordance with federal requirements (42 U.S.C. Sec. 666(a)(14)).
This file shall be compiled and forwarded to the Franchise Tax Board
in accordance with the guidelines prescribed by the Department of
Child Support Services and the Franchise Tax Board. The file shall
include, to the extent possible, the obligor's address.
(d) To effectuate the Financial Institution Match System,
financial institutions subject to this section shall do all of the
following:
(1) Provide to the Franchise Tax Board on a quarterly basis the
name, record address and other addresses, social security number or
other taxpayer identification number, and other identifying
information for each noncustodial parent who maintains an account at
the institution and who owes past-due support, as identified by the
Franchise Tax Board by name and social security number or other
taxpayer identification number.
(2) Except as provided in subdivision (j), in response to a notice
or order to withhold issued by the Franchise Tax Board, withhold
from any accounts of the obligor the amount of any past-due support
stated on the notice or order and transmit the amount to the
Franchise Tax Board in accordance with Section 18670 or 18670.5.
(e) Unless otherwise required by applicable law, a financial
institution furnishing a report or providing information to the
Franchise Tax Board pursuant to this section shall not disclose to a
depositor or an accountholder, or a codepositor or coaccountholder,
that the name, address, social security number, or other taxpayer
identification number or other identifying information of that person
has been received from or furnished to the Franchise Tax Board.
(f) A financial institution shall incur no obligation or liability
to any person arising from any of the following:
(1) Furnishing information to the Franchise Tax Board as required
by this section.
(2) Failing to disclose to a depositor or accountholder that the
name, address, social security number, or other taxpayer
identification number or other identifying information of that person
was included in the data exchange with the Franchise Tax Board
required by this section.
(3) Withholding or transmitting any assets in response to a notice
or order to withhold issued by the Franchise Tax Board as a result
of the data exchange. This paragraph shall not preclude any liability
that may result if the financial institution does not comply with
subdivision (b) of Section 18674.
(4) Any other action taken in good faith to comply with the
requirements of this section.
(g) Information required to be submitted to the Franchise Tax
Board pursuant to this section shall only be used by the Franchise
Tax Board to collect past-due support pursuant to Section 19271. If
the Franchise Tax Board has issued an earnings withholding order and
the condition described in subparagraph (C) of paragraph (1) of
subdivision (i) exists with respect to the obligor, the Franchise Tax
Board shall not use the information it receives under this section
to collect the past-due support from that obligor.
(1) With respect to files compiled under paragraph (1) of
subdivision (c), the Franchise Tax Board shall forward to the
counties, in accordance with guidelines prescribed by the Department
of Child Support Services and the Franchise Tax Board, information
obtained from the financial institutions pursuant to this section. No
county shall use this information for directly levying on any
account. Each county shall keep the information confidential as
provided by Section 17212 of the Family Code.
(2) With respect to files compiled under paragraph (2) of
subdivision (c), the amount collected by the Franchise Tax Board
shall be deposited and distributed to the referring state in
accordance with Section 19272.
(h) For those noncustodial parents owing past-due support for
which there is a match under paragraph (1) of subdivision (d), the
amount past due as indicated on the file or files compiled pursuant
to subdivision (c) at the time of the match shall be a delinquency
under this article for the purposes of the Franchise Tax Board taking
any collection action pursuant to Section 18670 or 18670.5.
(i) A child support delinquency need not be referred to the
Franchise Tax Board for collection if a jurisdiction outside this
state is enforcing the support order.
(j) (1) Each county shall notify the Franchise Tax Board upon the
occurrence of the circumstances described in the following
subparagraphs with respect to an obligor of past-due support:
(A) A court has ordered an obligor to make scheduled payments on a
child support arrearages obligation and the obligor is in compliance
with that order.
(B) An earnings assignment order or an order/notice to withhold
income that includes an amount for past-due support has been served
on the obligated parent's employer and earnings are being withheld
pursuant to the earnings assignment order or an order/notice to
withhold income.
(C) At least 50 percent of the obligated parent's earnings are
being withheld for support.
(2) Notwithstanding Section 704.070 of the Code of Civil
Procedure, if any of the conditions set forth in paragraph (1) exist,
the assets of an obligor held by a financial institution are subject
to levy as provided by paragraph (2) of subdivision (d). However,
the first three thousand five hundred dollars ($3,500) of an obligor'
s assets are exempt from collection under this subdivision without
the obligor having to file a claim of exemption.
(3) An obligor may apply for a claim of exemption pursuant to
Article 2 (commencing with Section 703.510) of Chapter 4 of Division
2 of Title 9 of Part 2 of the Code of Civil Procedure for an amount
that is less than or equal to the total amount levied. The sole basis
for a claim of exemption under this subdivision shall be the
financial hardship for the obligor and the obligor's dependents.
(4) For the purposes of a claim of exemption made pursuant to
paragraph (3), Section 688.030 of the Code of Civil Procedure shall
not apply.
(5) For claims of exemption made pursuant to paragraph (3), the
local child support agency responsible for enforcement of the obligor'
s child support order shall be the levying officer for the purpose of
compliance with the provisions set forth in Article 2 (commencing
with Section 703.510) of Chapter 4 of Division 2 of Title 9 of Part 2
of the Code of Civil Procedure except for the release of property
required by subdivision (e) of Section 703.580 of the Code of Civil
Procedure.
(6) The local child support agency shall notify the Franchise Tax
Board within two business days of the receipt of a claim of exemption
from an obligor. The Franchise Tax Board shall direct the financial
institution subject to the order to withhold to hold any funds
subject to the order pending notification by the Franchise Tax Board
to remit or release the amounts held.
(7) The superior court in the county in which the local child
support agency enforcing the support obligation is located shall have
jurisdiction to determine the amount of exemption to be allowed. The
court shall consider the needs of the obligor, the obligee, and all
persons the obligor is required to support, and all other relevant
circumstances in determining whether to allow any exemption pursuant
to this subdivision. The court shall give effect to its determination
by an order specifying the extent to which the amount levied is
exempt.
(8) Within two business days of receipt of an endorsed copy of a
court order issued pursuant to subdivision (e) of Section 703.580 of
the Code of Civil Procedure, the local child support agency shall
provide the Franchise Tax Board with a copy of the order. The
Franchise Tax Board shall instruct the financial institution to remit
or release the obligor's funds in accordance with the court's order.
(k) For purposes of this section:
(1) "Account" means any demand deposit account, share or share
draft account, checking or negotiable withdrawal order account,
savings account, time deposit account, or a money market mutual fund
account, whether or not the account bears interest.
(2) "Financial institution" has the same meaning as defined in
Section 669A(d)(1) of Title 42 of the United States Code.
(3) "Past-due support" means any child support obligation that is
unpaid on the due date for payment.
(l) Out of any money received from the federal government for the
purpose of reimbursing financial institutions for their actual and
reasonable costs incurred in complying with this section, the state
shall reimburse those institutions. To the extent that money is not
provided by the federal government for that purpose, the state shall
not reimburse financial institutions for their costs in complying
with this section.

19271.6. (a) The Franchise Tax Board, through a cooperative
agreement with the Department of Child Support Services, and in
coordination with financial institutions doing business in this
state, shall operate a Financial Institution Match System utilizing
automated data exchanges to the maximum extent feasible. The
Financial Institution Match System shall be implemented pursuant to
guidelines prescribed by the Department of Child Support Services and
the Franchise Tax Board. These guidelines shall include a structure
by which financial institutions, or their designated data-processing
agents, shall receive from the Franchise Tax Board the file or files
of past-due support obligors compiled in accordance with subdivision
(c), that the institution shall match with its own list of
accountholders to identify past-due support obligor accountholders at
the institution. To the extent allowed by the federal Personal
Responsibility and Work Opportunity Reconciliation Act of 1996, the
guidelines shall include an option by which financial institutions
without the technical ability to process the data exchange, or
without the ability to employ a third-party data processor to process
the data exchange, may forward to the Franchise Tax Board a list of
all accountholders and their social security numbers, so that the
Franchise Tax Board shall match that list with the file or files of
past-due support obligors compiled in accordance with subdivision
(c).
(b) The Financial Institution Match System shall not be subject to
any limitation set forth in Chapter 20 (commencing with Section
7460) of Division 7 of Title 1 of the Government Code. However, any
use of the information provided pursuant to this section for any
purpose other than the enforcement and collection of a child support
delinquency, as set forth in Section 19271, shall be a violation of
Section 19542.
(c) (1) Each county shall compile a file of support obligors with
judgments and orders that are being enforced by local child support
agencies pursuant to Section 17400 of the Family Code, and who are
past due in the payment of their support obligations. The file shall
be compiled, updated, and forwarded to the Franchise Tax Board, in
accordance with the guidelines prescribed by the Department of Child
Support Services and the Franchise Tax Board.
(2) The Department of Child Support Services, shall compile a file
of obligors with support arrearages from requests made by other
states for administrative enforcement in interstate cases, in
accordance with federal requirements (42 U.S.C. Sec. 666(a)(14)).
This file shall be compiled and forwarded to the Franchise Tax Board
in accordance with the guidelines prescribed by the Department of
Child Support Services and the Franchise Tax Board. The file shall
include, to the extent possible, the obligor's address.
(d) To effectuate the Financial Institution Match System,
financial institutions subject to this section shall do all of the
following:
(1) Provide to the Franchise Tax Board on a quarterly basis the
name, record address and other addresses, social security number or
other taxpayer identification number, and other identifying
information for each noncustodial parent who maintains an account at
the institution and who owes past-due support, as identified by the
Franchise Tax Board by name and social security number or other
taxpayer identification number.
(2) Except as provided in subdivision (j), in response to a notice
or order to withhold issued by the Franchise Tax Board, withhold
from any accounts of the obligor the amount of any past-due support
stated on the notice or order and transmit the amount to the
Franchise Tax Board in accordance with Section 18670 or 18670.5.
(e) Unless otherwise required by applicable law, a financial
institution furnishing a report or providing information to the
Franchise Tax Board pursuant to this section shall not disclose to a
depositor or an accountholder, or a codepositor or coaccountholder,
that the name, address, social security number, or other taxpayer
identification number or other identifying information of that person
has been received from or furnished to the Franchise Tax Board.
(f) A financial institution shall incur no obligation or liability
to any person arising from any of the following:
(1) Furnishing information to the Franchise Tax Board as required
by this section.
(2) Failing to disclose to a depositor or accountholder that the
name, address, social security number, or other taxpayer
identification number or other identifying information of that person
was included in the data exchange with the Franchise Tax Board
required by this section.
(3) Withholding or transmitting any assets in response to a notice
or order to withhold issued by the Franchise Tax Board as a result
of the data exchange. This paragraph shall not preclude any liability
that may result if the financial institution does not comply with
subdivision (b) of Section 18674.
(4) Any other action taken in good faith to comply with the
requirements of this section.
(g) Information required to be submitted to the Franchise Tax
Board pursuant to this section shall only be used by the Franchise
Tax Board to collect past-due support pursuant to Section 19271. If
the Franchise Tax Board has issued an earnings withholding order and
the condition described in subparagraph (C) of paragraph (1) of
subdivision (i) exists with respect to the obligor, the Franchise Tax
Board shall not use the information it receives under this section
to collect the past-due support from that obligor.
(1) With respect to files compiled under paragraph (1) of
subdivision (c), the Franchise Tax Board shall forward to the
counties, in accordance with guidelines prescribed by the Department
of Child Support Services and the Franchise Tax Board, information
obtained from the financial institutions pursuant to this section. No
county shall use this information for directly levying on any
account. Each county shall keep the information confidential as
provided by Section 17212 of the Family Code.
(2) With respect to files compiled under paragraph (2) of
subdivision (c), the amount collected by the Franchise Tax Board
shall be deposited and distributed to the referring state in
accordance with Section 19272.
(h) For those noncustodial parents owing past-due support for
which there is a match under paragraph (1) of subdivision (d), the
amount past due as indicated on the file or files compiled pursuant
to subdivision (c) at the time of the match shall be a delinquency
under this article for the purposes of the Franchise Tax Board taking
any collection action pursuant to Section 18670 or 18670.5.
(i) A child support delinquency need not be referred to the
Franchise Tax Board for collection if a jurisdiction outside this
state is enforcing the support order.
(j) (1) Each county shall notify the Franchise Tax Board upon the
occurrence of the circumstances described in the following
subparagraphs with respect to an obligor of past-due support:
(A) A court has ordered an obligor to make scheduled payments on a
child support arrearages obligation and the obligor is in compliance
with that order.
(B) An earnings assignment order or an order/notice to withhold
income that includes an amount for past-due support has been served
on the obligated parent's employer and earnings are being withheld
pursuant to the earnings assignment order or an order/notice to
withhold income.
(C) At least 50 percent of the obligated parent's earnings are
being withheld for support.
(2) Notwithstanding Section 704.070 of the Code of Civil
Procedure, if any of the conditions set forth in paragraph (1) exist,
the assets of an obligor held by a financial institution are subject
to levy as provided by paragraph (2) of subdivision (d). However,
the first three thousand five hundred dollars ($3,500) of an obligor'
s assets are exempt from collection under this subdivision without
the obligor having to file a claim of exemption.
(3) If any of the conditions set forth in paragraph (1) exist, an
obligor may apply for a claim of exemption pursuant to Article 2
(commencing with Section 703.510) of Chapter 4 of Division 2 of Title
9 of Part 2 of the Code of Civil Procedure for an amount that is
less than or equal to the total amount levied. The sole basis for a
claim of exemption under this subdivision shall be the financial
hardship for the obligor and the obligor's dependents.
(4) For the purposes of a claim of exemption made pursuant to
paragraph (3), Section 688.030 of the Code of Civil Procedure shall
not apply.
(5) For claims of exemption made pursuant to paragraph (3), the
local child support agency responsible for enforcement of the obligor'
s child support order shall be the levying officer for the purpose of
compliance with the provisions set forth in Article 2 (commencing
with Section 703.510) of Chapter 4 of Division 2 of Title 9 of Part 2
of the Code of Civil Procedure except for the release of property
required by subdivision (e) of Section 703.580 of the Code of Civil
Procedure.
(6) The local child support agency shall notify the Franchise Tax
Board within two business days of the receipt of a claim of exemption
from an obligor. The Franchise Tax Board shall direct the financial
institution subject to the order to withhold to hold any funds
subject to the order pending notification by the Franchise Tax Board
to remit or release the amounts held.
(7) The superior court in the county in which the local child
support agency enforcing the support obligation is located shall have
jurisdiction to determine the amount of exemption to be allowed. The
court shall consider the needs of the obligor, the obligee, and all
persons the obligor is required to support, and all other relevant
circumstances in determining whether to allow any exemption pursuant
to this subdivision. The court shall give effect to its determination
by an order specifying the extent to which the amount levied is
exempt.
(8) Within two business days of receipt of an endorsed copy of a
court order issued pursuant to subdivision (e) of Section 703.580 of
the Code of Civil Procedure, the local child support agency shall
provide the Franchise Tax Board with a copy of the order. The
Franchise Tax Board shall instruct the financial institution to remit
or release the obligor's funds in accordance with the court's order.
(k) For purposes of this section:
(1) "Account" means any demand deposit account, share or share
draft account, checking or negotiable withdrawal order account,
savings account, time deposit account, or a money market mutual fund
account, whether or not the account bears interest.
(2) "Financial institution" has the same meaning as defined in
Section 669A(d)(1) of Title 42 of the United States Code.
(3) "Past-due support" means any child support obligation that is
unpaid on the due date for payment.
(l) Out of any money received from the federal government for the
purpose of reimbursing financial institutions for their actual and
reasonable costs incurred in complying with this section, the state
shall reimburse those institutions. To the extent that money is not
provided by the federal government for that purpose, the state shall
not reimburse financial institutions for their costs in complying
with this section.

19272. (a) Any child support delinquency collected by the Franchise
Tax Board, including those amounts that result in overpayment of a
child support delinquency, shall be deposited in the State Treasury,
after clearance of the remittance, to the credit of the Special
Deposit Fund and distributed as specified by interagency agreement
executed by the Franchise Tax Board and the Department of Child
Support Services, with the concurrence of the Controller.
Notwithstanding Section 13340 of the Government Code, all moneys
deposited in the Special Deposit Fund pursuant to this article are
hereby continuously appropriated, without regard to fiscal years, for
purposes of making distributions.
(b) When a child support delinquency, or any portion thereof, has
been collected by the Franchise Tax Board pursuant to this article,
the local child support agency or other IV-D agency enforcing the
order shall be notified that the delinquency or some portion thereof
has been collected and shall be provided any other necessary relevant
information requested.
(c) The referring local child support agency shall receive credit
for the amount of collections made pursuant to the referral,
including credit for purposes of the child support enforcement
incentives pursuant to Section 17704 of the Family Code. Collection
costs incurred by the Franchise Tax Board shall be paid by federal
reimbursement with any balance to be paid from the General Fund.
(d) For collections made pursuant to a referral for administrative
enforcement or an interstate case, the IV-D agency in this state
shall receive credit for the amount of collections made pursuant to
the referral and shall receive the applicable federal child support
enforcement incentives.

19273. (a) For the collection pursuant to this article of any child
support delinquency from any obligated parent who is out of state,
the Franchise Tax Board may utilize the procedures and mechanisms
currently available for collection of taxes owed from out-of-state
taxpayers, pursuant to Section 19376. As necessary, the Franchise Tax
Board shall seek reciprocal agreements with other states to improve
its ability to collect child support payments from out-of-state
obligated parents on behalf of custodial parents residing in
California. The Franchise Tax Board shall also share with the
Internal Revenue Service any tax return information with respect to
the location of the obligated parent, and may pursue agreements with
the Internal Revenue Service, as permitted by federal law, to improve
collections of child support delinquencies from out-of-state
obligated parents through cooperative agreements with the service.
(b) The California Child Support Automated System, established
pursuant to Chapter 4 (commencing with Section 10080) of Part 1 of
Division 9 of the Welfare and Institutions Code, shall, for purposes
of this article, include the capacity to interface and exchange
information with the Franchise Tax Board, and if feasible, the
Internal Revenue Service, to enable the immediate reporting and
tracking of obligated parent information.
(c) The State Department of Social Services and the Franchise Tax
Board shall enter into any interagency agreements that are necessary
for the implementation of this article.

19274. The local child support agency may refer to the Franchise
Tax Board cases in which the social security number of the
noncustodial parent is unknown. The Franchise Tax Board shall search
its records to obtain the noncustodial parent's social security
number and furnish this information to the local child support agency
to assist in the establishment or enforcement of a child support
order. For purposes of administering this section, the Franchise Tax
Board may use any services or information available for tax
enforcement purposes, or available to a local child support agency or
the Title IV-D agency in collecting or enforcing child support, or
in locating absent or noncustodial parents.

19275. For purposes of Parts 10 (commencing with Section 17001),
10.5 (commencing with Section 20501), and 11 (commencing with Section
23001), any reference to the district attorney or counties, the
State Department of Social Services, or the Statewide Automated Child
Support System, as it relates to the collection, enforcement, or
accounts receivable management of child support under the Family Code
or the Welfare and Institutions Code shall mean the local child
support agency, as defined in Section 17000 of the Family Code, the
Department of Child Support Services, and the California Child
Support Automation System, respectively, in keeping with the changes
and transition of authority and responsibilities as required under
the Family Code and the Welfare and Institutions Code.

19276. This article shall remain in effect only until the
California Child Support Automated System becomes fully operational
and the Director of the Department of Child Support Services revokes
delegation of his or her authority to the executive officer of the
Franchise Tax Board to collect child support delinquencies, pursuant
to Article 1.5 (commencing with Section 17450) of Chapter 2 of
Division 17 of the Family Code, and as of January 1 of the year
following that date is repealed.