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Innovation In Action

For State of California

California Launches the Largest Electronic State Tax Collection Platform in the United States

The Client
The State of California's partnership of agencies includes: Board of Equalization (BOE), Department of Motor Vehicles (DMV), Department of Justice (DOJ), Department of Veterans Affairs (DVA), Employment Development Department (EDD), Franchise Tax Board (FTB), California Public Employees Retirement System (CalPERS).

The Challenge
The California's State Treasurer's Office, a significant collector of revenue for the state, sought a streamlined, scalable Citizen Initiated Payments solution to manage tax and bill collection services for a large, diverse partnership of its state agencies. Providing individual taxpayers and businesses with a convenient and secure payments service was critical. Also required — the solution had to secure cost savings for the State and its taxpayers, while also offering the flexibility to offer customization to meet the requirements of both large and small California State Agencies.

The Solution
Citi's Global Transaction Services moved swiftly to understand the challenges and help California implement an Electronic Funds Transfer (EFT) solution for tax and bill collection services. Understanding each participating agency's needs and leveraging its flexible, global technology platform, Citi empowered California with the largest electronic state tax collection platform in the United States — handling up to 3 million ACH/wire transactions per month.

To address the diverse and complex needs of the state agencies, Citi partnered with Fidelity Information Services (FIS), a leading provider of electronic payment processing systems for federal, state and local government agencies through its FIS Pay Direct — Government business. Together, Citi and FIS developed a customized, end-to-end platform for processing electronic payments. FIS also provides 24/7 web-based and operator assisted customer support for the State of California using the EFT solution.

The Result
California has increased receivables velocity for the State — and garnered much-needed efficiency. Using advanced web, Interactive Voice Response (IVR) and payment services, this solution improves accessibility, functionality and service for taxpayers while streamlining the California State Treasurer's Office tax and bill collection services.

As Mark Hariri, Director of Cash Management for the State of California, says, "Individuals and businesses of all sizes now have an upgraded technology platform, which can deliver robust and innovative payment services with increased functionality, while providing efficient and safe payments processing system for all participants 24 hours a day 7 days a week, using their existing banking services or the State of California website."