SECTIONS 19270-19276

19270.  (a) Consistent with the development and implementation ofthe California Child Support Automation System (CCSAS), the FranchiseTax Board and the Department of Child Support Services shall enterinto a letter of agreement and an interagency agreement whereby theDepartment of Child Support Services shall assume responsibility forcollection of child support delinquencies and the FinancialInstitution Data Match System as set forth in this article. Theletter of agreement and the interagency agreement shall, at aminimum, set forth all of the following: (1) Contingent upon the enactment of the Budget Act, and staffingauthorization from the Department of Finance and the Department ofPersonnel Administration, the Department of Child Support Servicesshall assume responsibility for leadership and staff of collection ofchild support delinquencies and the Financial Institution Data MatchSystem. (2) All employees and other personnel who staff or provide supportfor the collection of child support delinquencies and the FinancialInstitution Data Match System at the Franchise Tax Board shall becomethe employees of the Department of Child Support Services at theirexisting or equivalent classification, salaries, and benefits. (3) Any other provisions necessary to ensure continuity offunction and meet or exceed existing levels of service, including,but not limited to, agreements for continued use of automated systemsused by the Franchise Tax Board to locate child support obligors andtheir assets. (b) It is the intent of the Legislature that any provision ofincome tax return information by the Franchise Tax Board to theDepartment of Child Support Services pursuant to this article shallbe done in accordance with the privacy and confidential informationlaws of this state and the United States, and to the satisfaction ofthe Franchise Tax Board.19271.  (a) (1) For purposes of this article: (A) "Child support delinquency" means a delinquency defined insubdivision (c) of Section 17500 of the Family Code. (B) "Earnings" may include the items described in Section 5206 ofthe Family Code. (2) At least 20 days prior to the date that the Franchise TaxBoard commences collection action under this article, the FranchiseTax Board shall mail notice of the amount due to the obligated parentat the last known address and advise the obligated parent thatfailure to pay will result in collection action. If the obligatedparent disagrees with the amount due, the obligated parent shall beinstructed to contact the local child support agency to resolve thedisagreement. (b) (1) (A) Except as otherwise provided in subparagraph (B), whena delinquency is transferred to the Franchise Tax Board pursuant tosubdivision (c) of Section 17500 of the Family Code, the amount ofthe child support delinquency shall be collected by the Franchise TaxBoard in any manner authorized under the law for collection of adelinquent personal income tax liability. Notwithstanding Sections5208 and 5246 of the Family Code, the issuance of an order and levyunder Article 4 (commencing with Section 706.070) of Chapter 5 ofDivision 2 of Title 9 of Part 2 of the Code of Civil Procedure in themanner provided for earnings withholding orders for taxes is herebyauthorized until the California Child Support Automation System isoperational in all 58 California counties. When the California ChildSupport Automation System is operational in all 58 counties, any levyor other withholding of earnings of an employee by the Franchise TaxBoard to collect an amount pursuant to this section shall be made inaccordance with Sections 5208 and 5246 of the Family Code. Any otherlaw providing for the collection of a delinquent personal income taxliability shall apply to any child support delinquency transferredto the Franchise Tax Board in the same manner and with the same forceand effect and to the full extent as if the language of those lawshad been incorporated in full into this article, except to the extentthat any provision is either inconsistent with a provision of thisarticle 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 delinquentpersonal income tax liability, the Franchise Tax Board shall notengage in, or shall cease, any involuntary collection action tocollect the delinquent personal income tax liability, until the childsupport delinquency is paid in full. At any time, however, theFranchise Tax Board may mail any other notice to the taxpayer forvoluntary payment of the delinquent personal income tax liability ifthe Franchise Tax Board determines that collection of the delinquentpersonal income tax liability will not jeopardize collection of thechild support delinquency. However, the Franchise Tax Board mayengage in the collection of a delinquent personal income taxliability if the obligor has entered into a payment agreement for thechild support delinquency and is in compliance with that agreement,and the Franchise Tax Board determines that collection of thedelinquent personal income tax liability would not jeopardizepayments under the child support payment agreement. (C) For purposes of subparagraph (B): (i) "Involuntary collection action" includes those actionsauthorized by Section 18670, 18670.5, 18671, or 19264, by Article 3(commencing with Section 19231), or by Chapter 5 (commencing withSection 706.010) of Division 2 of Title 9 of Part 2 of the Code ofCivil Procedure. (ii) "Delinquent personal income tax liability" means any taxes,additions to tax, penalties, interest, fees, or other related amountsdue and payable under Part 10 (commencing with Section 17001) orthis part. (iii) "Voluntary payment" means any payment made by obligatedparents in response to any notice for voluntary payment mailed by theFranchise Tax Board. (2) Any compensation, fee, commission, expense, or any other feefor service incurred by the Franchise Tax Board in the collection ofa child support delinquency authorized under this article shall notbe an obligation of, or collected from, the obligated parent. Atransferred child support delinquency shall be final and due andpayable to the State of California upon written notice to theobligated 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 availableto a local child support agency or the Title IV-D agency incollecting child support delinquencies or locating absent ornoncustodial parents shall be available to the Franchise Tax Boardfor purposes of collecting child support delinquencies under thisarticle, including, but not limited to, any information that may bedisclosed by the Franchise Tax Board to the California Parent LocatorService under Section 19548. However, in no event shall theFranchise Tax Board take any additional enforcement remedies if acourt has ordered an obligor to make scheduled payments on a childsupport arrearages obligation and the parent is in compliance withthat order, unless the Franchise Tax Board is specifically authorizedto take an enforcement action to collect a child support delinquencyby another provision of law. (C) A request by the Franchise Tax Board for information from afinancial institution shall be treated in the same manner and to thesame extent as a request for information from a local child supportagency referring to a support order pursuant to Section 17400 of theFamily Code for purposes of Chapter 20 (commencing with Section 7460)of Division 7 of Title 1 of the Government Code (relating togovernmental access to financial records), notwithstanding any otherprovision of law which is inconsistent or contrary to this paragraph. (D) The amount to be withheld in an order and levy to collectchild support delinquencies under Article 4 (commencing with Section706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Codeof Civil Procedure is the amount required to be withheld pursuant toan earnings withholding order for support under Section 706.052 ofthe Code of Civil Procedure. (E) Nothing in this article shall be construed to modify the taxintercept 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 CivilProcedure. (c) Interest on the delinquency shall be computed pursuant toSection 685.010 of the Code of Civil Procedure. (d) (1) In no event shall a collection under this article beconstrued to be a payment of income taxes imposed under this part. (2) In the event an obligated parent overpays a liability imposedunder this part, the overpayment shall not be credited against anydelinquency collected pursuant to this article. In the event anoverpayment of a liability imposed under this part is offset anddistributed to a local child support agency pursuant to Sections12419.3 and 12419.5 of the Government Code or Section 708.740 of theCode of Civil Procedure, and thereby reduces the amount of thereferred delinquency, the local child support agency shallimmediately notify the Franchise Tax Board of that reduction, unlessthe Franchise Tax Board directs otherwise. (e) (1) The Franchise Tax Board shall administer this article, inconjunction with regulations adopted by the Department of ChildSupport 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 childsupport agency to retain a child support delinquency for a specifiedpurpose for collection where the Franchise Tax Board determines,pursuant to regulations established by the Department of ChildSupport Services, that the transfer or retention of the delinquencyfor the purpose so specified will enhance the collectibility of thedelinquency. The Franchise Tax Board, with the concurrence of theDepartment of Child Support Services, shall establish a processwhereby a local child support agency may request and shall be allowedto withdraw, rescind, or otherwise recall the transfer of an accountthat has been transferred to the Franchise Tax Board. (3) If an obligor is disabled, meets the SSI resource test, and isreceiving Supplemental Security Income/State Supplementary Payments(SSI/SSP), or, but for excess income as described in Section 416.1100et seq. of Part 416 of Title 20 of the Code of Federal Regulations,would be eligible to receive as Supplemental Security Income/StateSupplementary Payments (SSI/SSP), pursuant to Section 12200 of theWelfare and Institutions Code, and the obligor has supplied the localchild support agency with proof of his or her eligibility for, and,if applicable, receipt of, SSI/SSP or Social Security DisabilityInsurance benefits, then the child support delinquency shall not bereferred to the Franchise Tax Board for collection, and if referred,shall be withdrawn, rescinded, or otherwise recalled from theFranchise Tax Board by the local child support agency. The FranchiseTax Board shall not take any collection action, or if the agency hasalready taken collection action, shall cease collection actions inthe case of a disabled obligor when the delinquency is withdrawn,rescinded, or otherwise recalled by the local child support agency inaccordance with the process established as described in paragraph(2). (f) Except as otherwise provided in this article, any childsupport delinquency transferred to the Franchise Tax Board pursuantto this article shall be treated as a child support delinquency forall other purposes, and any collection action by the local childsupport agency or the Franchise Tax Board with respect to anydelinquency referred pursuant to this article shall have the samepriority against attachment, execution, assignment, or othercollection 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 collectionactivities authorized by this article shall not interfere with theprimary mission of the Franchise Tax Board to fairly and efficientlyadminister the Revenue and Taxation Code for which it is responsible. (h) Information disclosed to the Franchise Tax Board shall beconsidered information that may be disclosed by the Franchise TaxBoard under the authority of Section 19548 and may be disseminated bythe Franchise Tax Board accordingly for the purposes specified inSections 17505 and 17506 of the Family Code (in accordance with, andto the extent permitted by, Section 17514 of the Family Code and anyother state or federal law). (i) A local child support agency may not apply to the Departmentof Child Support Services for an exemption from the transfer ofresponsibilities and authorities to the Franchise Tax Board under theFamily Code or participation under Section 19271.6. (j) Except in those cases meeting the specified circumstancesdescribed in the regulations or in accordance with the processesprescribed in paragraphs (2) and (3) of subdivision (e), a localchild support agency shall not request or be allowed to retain,withdraw, rescind, or otherwise recall the transfer of a childsupport delinquency transferred to the Franchise Tax Board.19271.6.  (a) The Franchise Tax Board, through a cooperativeagreement with the Department of Child Support Services, and incoordination with financial institutions doing business in thisstate, shall operate a Financial Institution Match System utilizingautomated data exchanges to the maximum extent feasible. TheFinancial Institution Match System shall be implemented pursuant toguidelines prescribed by the Department of Child Support Services andthe Franchise Tax Board. These guidelines shall include a structureby which financial institutions, or their designated data processingagents, shall receive from the Franchise Tax Board the file or filesof past-due support obligors compiled in accordance with subdivision(c), that the institution shall match with its own list ofaccountholders to identify past-due support obligor accountholders atthe institution. To the extent allowed by the federal PersonalResponsibility and Work Opportunity Reconciliation Act of 1996, theguidelines shall include an option by which financial institutionswithout the technical ability to process the data exchange, orwithout the ability to employ a third-party data processor to processthe data exchange, may forward to the Franchise Tax Board a list ofall accountholders and their social security numbers, so that theFranchise Tax Board shall match that list with the file or files ofpast-due support obligors compiled in accordance with subdivision(c). (b) The Financial Institution Match System shall not be subject toany limitation set forth in Chapter 20 (commencing with Section7460) of Division 7 of Title 1 of the Government Code. However, anyuse of the information provided pursuant to this section for anypurpose other than the enforcement and collection of a child supportdelinquency, as set forth in Section 19271, shall be a violation ofSection 19542. (c) (1) Each county shall compile a file of support obligors withjudgments and orders that are being enforced by local child supportagencies pursuant to Section 17400 of the Family Code, and who arepast due in the payment of their support obligations. The file shallbe compiled, updated, and forwarded to the Franchise Tax Board, inaccordance with the guidelines prescribed by the Department of ChildSupport Services and the Franchise Tax Board. (2) The Department of Child Support Services, shall compile a fileof obligors with support arrearages from requests made by otherstates for administrative enforcement in interstate cases, inaccordance with federal requirements (42 U.S.C. Sec. 666(a)(14)).This file shall be compiled and forwarded to the Franchise Tax Boardin accordance with the guidelines prescribed by the Department ofChild Support Services and the Franchise Tax Board. The file shallinclude, 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 thefollowing: (1) Provide to the Franchise Tax Board on a quarterly basis thename, record address and other addresses, social security number orother taxpayer identification number, and other identifyinginformation for each noncustodial parent who maintains an account atthe institution and who owes past-due support, as identified by theFranchise Tax Board by name and social security number or othertaxpayer identification number. (2) Except as provided in subdivision (j), in response to a noticeor order to withhold issued by the Franchise Tax Board, withholdfrom any accounts of the obligor the amount of any past-due supportstated on the notice or order and transmit the amount to theFranchise Tax Board in accordance with Section 18670 or 18670.5. (e) Unless otherwise required by applicable law, a financialinstitution furnishing a report or providing information to theFranchise Tax Board pursuant to this section shall not disclose to adepositor or an accountholder, or a codepositor or coaccountholder,that the name, address, social security number, or other taxpayeridentification number or other identifying information of that personhas been received from or furnished to the Franchise Tax Board. (f) A financial institution shall incur no obligation or liabilityto any person arising from any of the following: (1) Furnishing information to the Franchise Tax Board as requiredby this section. (2) Failing to disclose to a depositor or accountholder that thename, address, social security number, or other taxpayeridentification number or other identifying information of that personwas included in the data exchange with the Franchise Tax Boardrequired by this section. (3) Withholding or transmitting any assets in response to a noticeor order to withhold issued by the Franchise Tax Board as a resultof the data exchange. This paragraph shall not preclude any liabilitythat may result if the financial institution does not comply withsubdivision (b) of Section 18674. (4) Any other action taken in good faith to comply with therequirements of this section. (g) Information required to be submitted to the Franchise TaxBoard pursuant to this section shall only be used by the FranchiseTax Board to collect past-due support pursuant to Section 19271. Ifthe Franchise Tax Board has issued an earnings withholding order andthe condition described in subparagraph (C) of paragraph (1) ofsubdivision (i) exists with respect to the obligor, the Franchise TaxBoard shall not use the information it receives under this sectionto collect the past-due support from that obligor. (1) With respect to files compiled under paragraph (1) ofsubdivision (c), the Franchise Tax Board shall forward to thecounties, in accordance with guidelines prescribed by the Departmentof Child Support Services and the Franchise Tax Board, informationobtained from the financial institutions pursuant to this section. Nocounty shall use this information for directly levying on anyaccount. Each county shall keep the information confidential asprovided by Section 17212 of the Family Code. (2) With respect to files compiled under paragraph (2) ofsubdivision (c), the amount collected by the Franchise Tax Boardshall be deposited and distributed to the referring state inaccordance with Section 19272. (h) For those noncustodial parents owing past-due support forwhich there is a match under paragraph (1) of subdivision (d), theamount past due as indicated on the file or files compiled pursuantto subdivision (c) at the time of the match shall be a delinquencyunder this article for the purposes of the Franchise Tax Board takingany collection action pursuant to Section 18670 or 18670.5. (i) A child support delinquency need not be referred to theFranchise Tax Board for collection if a jurisdiction outside thisstate is enforcing the support order. (j) (1) Each county shall notify the Franchise Tax Board upon theoccurrence of the circumstances described in the followingsubparagraphs with respect to an obligor of past-due support: (A) A court has ordered an obligor to make scheduled payments on achild support arrearages obligation and the obligor is in compliancewith that order. (B) An earnings assignment order or an order/notice to withholdincome that includes an amount for past-due support has been servedon the obligated parent's employer and earnings are being withheldpursuant to the earnings assignment order or an order/notice towithhold income. (C) At least 50 percent of the obligated parent's earnings arebeing withheld for support. (2) Notwithstanding Section 704.070 of the Code of CivilProcedure, if any of the conditions set forth in paragraph (1) exist,the assets of an obligor held by a financial institution are subjectto 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 withoutthe obligor having to file a claim of exemption. (3) An obligor may apply for a claim of exemption pursuant toArticle 2 (commencing with Section 703.510) of Chapter 4 of Division2 of Title 9 of Part 2 of the Code of Civil Procedure for an amountthat is less than or equal to the total amount levied. The sole basisfor a claim of exemption under this subdivision shall be thefinancial hardship for the obligor and the obligor's dependents. (4) For the purposes of a claim of exemption made pursuant toparagraph (3), Section 688.030 of the Code of Civil Procedure shallnot apply. (5) For claims of exemption made pursuant to paragraph (3), thelocal child support agency responsible for enforcement of the obligor's child support order shall be the levying officer for the purpose ofcompliance with the provisions set forth in Article 2 (commencingwith Section 703.510) of Chapter 4 of Division 2 of Title 9 of Part 2of the Code of Civil Procedure except for the release of propertyrequired by subdivision (e) of Section 703.580 of the Code of CivilProcedure. (6) The local child support agency shall notify the Franchise TaxBoard within two business days of the receipt of a claim of exemptionfrom an obligor. The Franchise Tax Board shall direct the financialinstitution subject to the order to withhold to hold any fundssubject to the order pending notification by the Franchise Tax Boardto remit or release the amounts held. (7) The superior court in the county in which the local childsupport agency enforcing the support obligation is located shall havejurisdiction to determine the amount of exemption to be allowed. Thecourt shall consider the needs of the obligor, the obligee, and allpersons the obligor is required to support, and all other relevantcircumstances in determining whether to allow any exemption pursuantto this subdivision. The court shall give effect to its determinationby an order specifying the extent to which the amount levied isexempt. (8) Within two business days of receipt of an endorsed copy of acourt order issued pursuant to subdivision (e) of Section 703.580 ofthe Code of Civil Procedure, the local child support agency shallprovide the Franchise Tax Board with a copy of the order. TheFranchise Tax Board shall instruct the financial institution to remitor 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 sharedraft account, checking or negotiable withdrawal order account,savings account, time deposit account, or a money market mutual fundaccount, whether or not the account bears interest. (2) "Financial institution" has the same meaning as defined inSection 669A(d)(1) of Title 42 of the United States Code. (3) "Past-due support" means any child support obligation that isunpaid on the due date for payment. (l) Out of any money received from the federal government for thepurpose of reimbursing financial institutions for their actual andreasonable costs incurred in complying with this section, the stateshall reimburse those institutions. To the extent that money is notprovided by the federal government for that purpose, the state shallnot reimburse financial institutions for their costs in complyingwith this section.19271.6.  (a) The Franchise Tax Board, through a cooperativeagreement with the Department of Child Support Services, and incoordination with financial institutions doing business in thisstate, shall operate a Financial Institution Match System utilizingautomated data exchanges to the maximum extent feasible. TheFinancial Institution Match System shall be implemented pursuant toguidelines prescribed by the Department of Child Support Services andthe Franchise Tax Board. These guidelines shall include a structureby which financial institutions, or their designated data-processingagents, shall receive from the Franchise Tax Board the file or filesof past-due support obligors compiled in accordance with subdivision(c), that the institution shall match with its own list ofaccountholders to identify past-due support obligor accountholders atthe institution. To the extent allowed by the federal PersonalResponsibility and Work Opportunity Reconciliation Act of 1996, theguidelines shall include an option by which financial institutionswithout the technical ability to process the data exchange, orwithout the ability to employ a third-party data processor to processthe data exchange, may forward to the Franchise Tax Board a list ofall accountholders and their social security numbers, so that theFranchise Tax Board shall match that list with the file or files ofpast-due support obligors compiled in accordance with subdivision(c). (b) The Financial Institution Match System shall not be subject toany limitation set forth in Chapter 20 (commencing with Section7460) of Division 7 of Title 1 of the Government Code. However, anyuse of the information provided pursuant to this section for anypurpose other than the enforcement and collection of a child supportdelinquency, as set forth in Section 19271, shall be a violation ofSection 19542. (c) (1) Each county shall compile a file of support obligors withjudgments and orders that are being enforced by local child supportagencies pursuant to Section 17400 of the Family Code, and who arepast due in the payment of their support obligations. The file shallbe compiled, updated, and forwarded to the Franchise Tax Board, inaccordance with the guidelines prescribed by the Department of ChildSupport Services and the Franchise Tax Board. (2) The Department of Child Support Services, shall compile a fileof obligors with support arrearages from requests made by otherstates for administrative enforcement in interstate cases, inaccordance with federal requirements (42 U.S.C. Sec. 666(a)(14)).This file shall be compiled and forwarded to the Franchise Tax Boardin accordance with the guidelines prescribed by the Department ofChild Support Services and the Franchise Tax Board. The file shallinclude, 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 thefollowing: (1) Provide to the Franchise Tax Board on a quarterly basis thename, record address and other addresses, social security number orother taxpayer identification number, and other identifyinginformation for each noncustodial parent who maintains an account atthe institution and who owes past-due support, as identified by theFranchise Tax Board by name and social security number or othertaxpayer identification number. (2) Except as provided in subdivision (j), in response to a noticeor order to withhold issued by the Franchise Tax Board, withholdfrom any accounts of the obligor the amount of any past-due supportstated on the notice or order and transmit the amount to theFranchise Tax Board in accordance with Section 18670 or 18670.5. (e) Unless otherwise required by applicable law, a financialinstitution furnishing a report or providing information to theFranchise Tax Board pursuant to this section shall not disclose to adepositor or an accountholder, or a codepositor or coaccountholder,that the name, address, social security number, or other taxpayeridentification number or other identifying information of that personhas been received from or furnished to the Franchise Tax Board. (f) A financial institution shall incur no obligation or liabilityto any person arising from any of the following: (1) Furnishing information to the Franchise Tax Board as requiredby this section. (2) Failing to disclose to a depositor or accountholder that thename, address, social security number, or other taxpayeridentification number or other identifying information of that personwas included in the data exchange with the Franchise Tax Boardrequired by this section. (3) Withholding or transmitting any assets in response to a noticeor order to withhold issued by the Franchise Tax Board as a resultof the data exchange. This paragraph shall not preclude any liabilitythat may result if the financial institution does not comply withsubdivision (b) of Section 18674. (4) Any other action taken in good faith to comply with therequirements of this section. (g) Information required to be submitted to the Franchise TaxBoard pursuant to this section shall only be used by the FranchiseTax Board to collect past-due support pursuant to Section 19271. Ifthe Franchise Tax Board has issued an earnings withholding order andthe condition described in subparagraph (C) of paragraph (1) ofsubdivision (i) exists with respect to the obligor, the Franchise TaxBoard shall not use the information it receives under this sectionto collect the past-due support from that obligor. (1) With respect to files compiled under paragraph (1) ofsubdivision (c), the Franchise Tax Board shall forward to thecounties, in accordance with guidelines prescribed by the Departmentof Child Support Services and the Franchise Tax Board, informationobtained from the financial institutions pursuant to this section. Nocounty shall use this information for directly levying on anyaccount. Each county shall keep the information confidential asprovided by Section 17212 of the Family Code. (2) With respect to files compiled under paragraph (2) ofsubdivision (c), the amount collected by the Franchise Tax Boardshall be deposited and distributed to the referring state inaccordance with Section 19272. (h) For those noncustodial parents owing past-due support forwhich there is a match under paragraph (1) of subdivision (d), theamount past due as indicated on the file or files compiled pursuantto subdivision (c) at the time of the match shall be a delinquencyunder this article for the purposes of the Franchise Tax Board takingany collection action pursuant to Section 18670 or 18670.5. (i) A child support delinquency need not be referred to theFranchise Tax Board for collection if a jurisdiction outside thisstate is enforcing the support order. (j) (1) Each county shall notify the Franchise Tax Board upon theoccurrence of the circumstances described in the followingsubparagraphs with respect to an obligor of past-due support: (A) A court has ordered an obligor to make scheduled payments on achild support arrearages obligation and the obligor is in compliancewith that order. (B) An earnings assignment order or an order/notice to withholdincome that includes an amount for past-due support has been servedon the obligated parent's employer and earnings are being withheldpursuant to the earnings assignment order or an order/notice towithhold income. (C) At least 50 percent of the obligated parent's earnings arebeing withheld for support. (2) Notwithstanding Section 704.070 of the Code of CivilProcedure, if any of the conditions set forth in paragraph (1) exist,the assets of an obligor held by a financial institution are subjectto 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 withoutthe obligor having to file a claim of exemption. (3) If any of the conditions set forth in paragraph (1) exist, anobligor may apply for a claim of exemption pursuant to Article 2(commencing with Section 703.510) of Chapter 4 of Division 2 of Title9 of Part 2 of the Code of Civil Procedure for an amount that isless than or equal to the total amount levied. The sole basis for aclaim of exemption under this subdivision shall be the financialhardship for the obligor and the obligor's dependents. (4) For the purposes of a claim of exemption made pursuant toparagraph (3), Section 688.030 of the Code of Civil Procedure shallnot apply. (5) For claims of exemption made pursuant to paragraph (3), thelocal child support agency responsible for enforcement of the obligor's child support order shall be the levying officer for the purpose ofcompliance with the provisions set forth in Article 2 (commencingwith Section 703.510) of Chapter 4 of Division 2 of Title 9 of Part 2of the Code of Civil Procedure except for the release of propertyrequired by subdivision (e) of Section 703.580 of the Code of CivilProcedure. (6) The local child support agency shall notify the Franchise TaxBoard within two business days of the receipt of a claim of exemptionfrom an obligor. The Franchise Tax Board shall direct the financialinstitution subject to the order to withhold to hold any fundssubject to the order pending notification by the Franchise Tax Boardto remit or release the amounts held. (7) The superior court in the county in which the local childsupport agency enforcing the support obligation is located shall havejurisdiction to determine the amount of exemption to be allowed. Thecourt shall consider the needs of the obligor, the obligee, and allpersons the obligor is required to support, and all other relevantcircumstances in determining whether to allow any exemption pursuantto this subdivision. The court shall give effect to its determinationby an order specifying the extent to which the amount levied isexempt. (8) Within two business days of receipt of an endorsed copy of acourt order issued pursuant to subdivision (e) of Section 703.580 ofthe Code of Civil Procedure, the local child support agency shallprovide the Franchise Tax Board with a copy of the order. TheFranchise Tax Board shall instruct the financial institution to remitor 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 sharedraft account, checking or negotiable withdrawal order account,savings account, time deposit account, or a money market mutual fundaccount, whether or not the account bears interest. (2) "Financial institution" has the same meaning as defined inSection 669A(d)(1) of Title 42 of the United States Code. (3) "Past-due support" means any child support obligation that isunpaid on the due date for payment. (l) Out of any money received from the federal government for thepurpose of reimbursing financial institutions for their actual andreasonable costs incurred in complying with this section, the stateshall reimburse those institutions. To the extent that money is notprovided by the federal government for that purpose, the state shallnot reimburse financial institutions for their costs in complyingwith this section.19272.  (a) Any child support delinquency collected by the FranchiseTax Board, including those amounts that result in overpayment of achild support delinquency, shall be deposited in the State Treasury,after clearance of the remittance, to the credit of the SpecialDeposit Fund and distributed as specified by interagency agreementexecuted by the Franchise Tax Board and the Department of ChildSupport Services, with the concurrence of the Controller.Notwithstanding Section 13340 of the Government Code, all moneysdeposited in the Special Deposit Fund pursuant to this article arehereby continuously appropriated, without regard to fiscal years, forpurposes of making distributions. (b) When a child support delinquency, or any portion thereof, hasbeen collected by the Franchise Tax Board pursuant to this article,the local child support agency or other IV-D agency enforcing theorder shall be notified that the delinquency or some portion thereofhas been collected and shall be provided any other necessary relevantinformation requested. (c) The referring local child support agency shall receive creditfor the amount of collections made pursuant to the referral,including credit for purposes of the child support enforcementincentives pursuant to Section 17704 of the Family Code. Collectioncosts incurred by the Franchise Tax Board shall be paid by federalreimbursement with any balance to be paid from the General Fund. (d) For collections made pursuant to a referral for administrativeenforcement or an interstate case, the IV-D agency in this stateshall receive credit for the amount of collections made pursuant tothe referral and shall receive the applicable federal child supportenforcement incentives.19273.  (a) For the collection pursuant to this article of any childsupport delinquency from any obligated parent who is out of state,the Franchise Tax Board may utilize the procedures and mechanismscurrently available for collection of taxes owed from out-of-statetaxpayers, pursuant to Section 19376. As necessary, the Franchise TaxBoard shall seek reciprocal agreements with other states to improveits ability to collect child support payments from out-of-stateobligated parents on behalf of custodial parents residing inCalifornia. The Franchise Tax Board shall also share with theInternal Revenue Service any tax return information with respect tothe location of the obligated parent, and may pursue agreements withthe Internal Revenue Service, as permitted by federal law, to improvecollections of child support delinquencies from out-of-stateobligated parents through cooperative agreements with the service. (b) The California Child Support Automated System, establishedpursuant to Chapter 4 (commencing with Section 10080) of Part 1 ofDivision 9 of the Welfare and Institutions Code, shall, for purposesof this article, include the capacity to interface and exchangeinformation with the Franchise Tax Board, and if feasible, theInternal Revenue Service, to enable the immediate reporting andtracking of obligated parent information. (c) The State Department of Social Services and the Franchise TaxBoard shall enter into any interagency agreements that are necessaryfor the implementation of this article.19274.  The local child support agency may refer to the FranchiseTax Board cases in which the social security number of thenoncustodial parent is unknown. The Franchise Tax Board shall searchits records to obtain the noncustodial parent's social securitynumber and furnish this information to the local child support agencyto assist in the establishment or enforcement of a child supportorder. For purposes of administering this section, the Franchise TaxBoard may use any services or information available for taxenforcement purposes, or available to a local child support agency orthe Title IV-D agency in collecting or enforcing child support, orin 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 Section23001), any reference to the district attorney or counties, theState Department of Social Services, or the Statewide Automated ChildSupport System, as it relates to the collection, enforcement, oraccounts receivable management of child support under the Family Codeor the Welfare and Institutions Code shall mean the local childsupport agency, as defined in Section 17000 of the Family Code, theDepartment of Child Support Services, and the California ChildSupport Automation System, respectively, in keeping with the changesand transition of authority and responsibilities as required underthe Family Code and the Welfare and Institutions Code.19276.  This article shall remain in effect only until theCalifornia Child Support Automated System becomes fully operationaland the Director of the Department of Child Support Services revokesdelegation of his or her authority to the executive officer of theFranchise Tax Board to collect child support delinquencies, pursuantto Article 1.5 (commencing with Section 17450) of Chapter 2 ofDivision 17 of the Family Code, and as of January 1 of the yearfollowing that date is repealed.