Pursuant to Title 3, Division 2, Chapter 4, Article 1, commencing with Section 26900 of the California Government Code, the auditor shall examine and settle the accounts of any person indebted to the county. On March 13, 1973, the board of supervisors created the revenue and reimbursement division of the auditor-controller's office to assist in satisfying this requirement and to safeguard the assets of the county by conducting a centralized program for servicing receivables and collecting delinquent accounts of county departments, superior courts of Merced County and other governmental functions.
(Ord. 1709 § 1, 2003)
A. 
Revenue and reimbursement division under the direction of the auditor-controller has been established to function as a centralized collection activity by providing departments, courts and other government functions with a professional collections and resolution of debts owed the county or other governmental function. The division shall conduct its activities in accordance with current federal, state and local laws, rules and regulations governing such activities. Using collection enforcement techniques comparable to those used in the business sector and always mindful of the county's interest in the welfare of its residents, the division shall insure that wherever possible, the taxpayers of Merced County shall not be required to bear the added burden of indebtedness that is the legal responsibility of a specific individual or business.
B. 
The division shall, in a professional, courteous and economical manner concentrate its efforts on the collection of such delinquent debts and accounts as are assigned by the chief deputy revenue and reimbursements officer in accordance with this policy and under the direction of the auditor-controller. However, certain nondelinquent accounts may also be accepted for collection by the division when deemed by the auditor-controller to be in the best interest of the county.
(Ord. 1709 § 2, 2003)
A. 
Each county department generating billable revenue accounts shall attempt to secure full or partial payment on each account through prompt and persistent collection efforts utilizing several printed account billings, letters and or phone calls to the debtor and other appropriate collections methods as required. Such attempts will include notice that failure to respond will result in referral of the matter to the revenue and reimbursement division. If the debtor fails to pay for services rendered by the county department within 30 days of billing, the obligation is in default and the department that generated the account shall, with the approval of the revenue and reimbursement officer, immediately assign or refer the account to the revenue and reimbursement division. However, revenue and reimbursement may amend the above time frame for referring accounts.
B. 
The assignment or referral of an account from a county department to the revenue and reimbursement division shall constitute an official transfer of accountability relieving the referring department of further responsibility involving the collection of the account. County departments assigning accounts to revenue and reimbursement shall adhere to established procedures for the referral of accounts, including:
1. 
The preparation of an account transmittal form for each account assigned to the revenue and reimbursement division.
2. 
The establishment. of an index or referred accounts in order to aid the referring department in determining which accounts have been referred for collection.
C. 
The revenue and reimbursement division, immediately upon being assigned an account by a department, shall send out a billing statement to the debtor asking for payment of the amount owing for a particular service(s) or item(s) and informing the debtor that the revenue and reimbursement division has been assigned to collect the account.
(Ord. 1709 § 3, 2003)
A. 
Referring department makes no further collections on the account nor agreements with the debtor.
B. 
In order to avoid compromising a debtor's payment schedule, a county department that refers an account to the revenue and reimbursement division shall not receive and or deposit moneys to such debtor's accounts.
C. 
If a debtor whose account has been transferred desires to make a payment in person, the department that referred the account shall request the debtor to make payment directly to the revenue and reimbursement division. If payment is received in the mail by the referring department from a debtor whose account has been assigned, such payment shall be delivered forthwith to the revenue and reimbursement division for receipt and deposit. The debtor shall be notified in either of the above instances, by revenue and reimbursement, that all future payments shall be accepted by the revenue and reimbursement division.
D. 
In order to avoid confusing and compromising the collection process of a debtor's account, a county department that refers an account to revenue and reimbursement shall not have the authority to communicate with such debtor, orally or in writing, regarding the referred account or make agreements or adjustments on such a referred account. If a debtor whose account has been transferred comes to the referring department and desires to make inquiry about the account in person, the department that referred the account shall request the debtor to go directly to the revenue and reimbursement division to make their inquiry. If an inquiry regarding the debtor's referred account is received in the mail by the referring department, such an inquiry shall be delivered forthwith to the revenue and reimbursement division. The debtor shall be notified in either of the above instances, by the revenue and reimbursement division that all further inquiries regarding the account shall only be responded to by the revenue and reimbursement division and not the county department that generated the billing.
(Ord. 1709 § 4, 2003)
A. 
The revenue and reimbursement division of the auditor-controller's office is authorized to accept and release notes, mortgages, and liens, take assignment of insurance benefits, initiate and conduct litigation in small claims court, initiate and conduct litigation in other courts up to the dollar amount of $50,000 upon approval of county counsel, and amounts above $50,000 when authorized by the board of supervisors, and take any measures permitted by law for the purpose of obtaining payment, or security of payment, of debts on behalf of the board of supervisors of the county of Merced. This shall include, but not be limited to authorization to take action under Sections 23004 Government Code, 1444 Health and Safety Code, 17403 Welfare and Institutions Code, 1206 Penal Code, 987.4 and 987 Penal Code, and 903 Welfare and Institutions Code. The decision as to the enforcement of any obligation through legal action shall be determined on the merits of each case, which conditions may include, but not be limited to the following:
1. 
An investigation demonstrates the debtor has a clear ability to pay the obligation but refuses to do so.
2. 
A debtor's dispute with his billing statement has been investigated and determined to be invalid.
3. 
The debtor has ownership interest in real property.
4. 
The debtor has ownership interest and reasonable equity in more than one motor vehicle and/or any pleasure craft including boats and aircraft.
B. 
The deputy revenue and reimbursement officer shall review all accounts referred for legal action as to their intent, purpose, cost and expected result. Legal action shall be instituted only upon written approval of the revenue and reimbursement officer and upon approval of county counsel when actions exceed the jurisdiction of small claims court and shall only be used if all other collection methods have proven ineffective in resolving the debt.
(Ord. 1709 § 5, 2003)
A. 
When full and immediate payment of a debt owed the county of Merced would deprive the debtor or his family of life sustaining necessities, then full and immediate payment shall not be demanded. Nevertheless, payment plans shall be entered into only after all reasonable efforts to collect in full have been exhausted. All debtors requesting payment plans must first exhaust their available lending sources in an attempt to pay in full, or at least to the limit of their ability to borrow. If such sources are fruitless, the debtor must submit a complete statement of financial condition before any consideration of payments can be made. Where appropriate, any information submitted shall be verified prior to any final decision.
B. 
The revenue and reimbursement division is authorized to arrange for the payment of debts in such amounts and under such terms as are commensurate with the financial circumstances of the debtor, mindful that the county is not obligated to allow a debtor to continue to enjoy the standard of living to which they have become accustomed.
C. 
Payment plans shall generally run no longer than a year's period of time unless the amount owed is quite large. All individual debtors desiring to commence a payment plan must sign a promissory note which delineates the terms of payment.
(Ord. 1709 § 6, 2003)
A. 
The revenue and reimbursement division is responsible for establishing, maintaining, collecting and accounting for the proceeds of such debts and accounts as are assigned to it for collection. This includes responsibility to:
1. 
Establish the records for all accounts in a manner that conforms with generally accepted accounting principles and practices.
2. 
Maintain accountability over all accounts so established.
3. 
Pursue a rapid, diligent and systematic collection effort on all accounts.
4. 
Determine, on an annual basis, the then current valuation of debts assigned for collection.
5. 
Request releases of accountability for those accounts which have been determined to be uncollectible, or economically uncollectible and submit a report to the county auditor-controller, summarizing the cases and amounts so classified. Release of accountability when granted, releases the revenue and reimbursement division from the obligation to pursue and collect such debts. However, such release of accountability shall not relieve the debtor of his legal liability to pay nor shall it extinguish the debt.
B. 
The following general criteria are established as a basis for requesting release of accountability of debts:
1. 
Unable to Locate. Neither the debtor nor legally responsible relative can be located.
2. 
Deceased—No Known Estate. The debtor has expired and left no known estate and no legally responsible relative can be located.
3. 
Debtor or Guarantor Without Ability to Pay. The debtor, his estate, or legally responsible relatives are unable to pay the account.
4. 
Legally Uncollectible. Collection of account is barred by bankruptcy or other legality.
5. 
Uneconomically Collectible. The cost of collection would exceed the amount reasonably anticipated to be recovered.
(Ord. 1709 § 7, 2003)
The revenue and reimbursement division is authorized to adjust and approve settlements of accounts according to the financial condition of the debtor, his estate or responsible relative or in such circumstances where the material facts surrounding the occurrence of the debt indicate inappropriate or inequitable charge for services rendered or when such compromise is in the best interest of the county. The number and value of accounts so adjusted and the reason with appropriate supporting documentation therefore shall be included in the report to the county auditor-controller requesting releases of accountability.
(Ord. 1709 § 8, 2003)
Any liability for a debt which is adjusted or excused by these policies shall be reimposed in the event of discovery that any debtor had fraudulently concealed information concerning income or assets and has transferred such income or assets for the purpose of avoiding payment or has falsely described his financial condition.
(Ord. 1709 § 9, 2003)
This chapter shall give authority to the auditor-controller to join and associate with a credit reporting/collection agency(s) for the purpose of:
A. 
Receiving and furnishing credit information on accounts; and
B. 
Assigning for collection particularly difficult accounts that include, but are not limited to:
1. 
Accounts wherein a debtor lives out-of-state and is completely unresponsive to the revenue and reimbursement division's efforts, and
2. 
Accounts wherein a debtor has moved from his residence of record ("skipped") and the revenue and reimbursement division is unable to locate the debtor's whereabouts subsequent to having diligently pursued every possible lead to the debtor's current place of residence.
(Ord. 1709 § 10, 2003)
All records, documents, and collection files not designated as public records or specifically covered by the Federal Freedom of Information Act shall be maintained as confidential, access to which shall be limited to only those persons legally entitled to such information. Special consideration shall be given to the confidentiality of records containing information concerning medical treatment, of diagnoses, juvenile offenses or references to welfare applicants or recipients.
(Ord. 1709 § 11, 2003)
County counsel shall furnish the revenue and reimbursement division all legal support for civil matters.
(Ord. 1709 § 12, 2003)
In order to comply with code sections relating to the collection of debts owed county departments, the revenue and reimbursement officer shall also be known as:
A. 
Deputy tax collector;
B. 
Deputy probation officer;
C. 
Deputy court clerk;
D. 
County financial evaluation officer.
(Ord. 1709 § 13, 2003)
Revenue and Reimbursement Fees
 
Authority
Administrative Fees:
 
 
Victim Restitution Administrative Fee
15%
Penal Code 1203.1
Restitution Fine Administrative Fee
10%
Penal Code 1202.4/Welfare & Institutions Code 1730.6
Collection Fees:
 
 
Account Setup Fee
$10.00
Government Code 54985
Collection Fee (paid in 6 or fewer payments)
$35.00
Government Code 54985
Collection Fee (paid in 7 through 12 payments)
$50.00
Government Code 54985
Collection Fee (paid in 13 through 18 payments)
$75.00
Government Code 54985
Collection Fee (paid in more than 18 payments)
$150.00
Government Code 54985
County Department Collection Fee
15%
Government Code 54985
Family Law Collection Fee (if paid in more than one payment)
15%
Penal Code 3140/Evidence Code 730/Probate Code 1470
Comprehensive Collections Program costs
Cost
Penal Code 1463.007
Delinquent Unsecured Tax Collections with a minimum of $25.00 and a cap of $ 300.00
35%
Revenue and Taxation Code 2922
Fees to recover other costs of collections
Cost
Government Code 54985
Copies:
 
 
Subpoena
$40.00/hr + $0.10 per copy
Government Code 54985
Minute Orders, Satisfactions of Judgment, and Other Court-Ordered documents
$40.00/hr + $0.10 per copy
Government Code 54985
Lien Research
$40.00/hr + $0.10 per copy
Government Code 54985
Payment History Research
$40.00/hr + $0.10 per copy
Government Code 54985
Account Research
$40.00/hr + $0.10 per copy
Government Code 54985
Installment Fees:
 
 
Probation costs paid in installments
$75.00
Penal Code 1203.1b
Court Ordered Fines paid in installments
$ 35.00
Penal Code 1205
Court Ordered Processing Fee
$ 30.00
Penal Code 1205
Civil Assessment Fee
$ 300.00
Penal Code 1214.1
Non-Sufficient Fund Fees and Damages:
 
 
Returned Check Fee
$ 30.00
Government Code 54985
Damages equal to triple the amount of the check if the person fails to pay the full amount of the check within 30 days of the written demand which shall not be less than $100.00 nor more than $1,500.00)
$ 100.00—$ 1,500.00
Civil Code 1719
(Ord. 1709 § 14, 2003; Ord. 1838 § 3, 2008; Ord. 1878 § 3, 2010)