The State Board of Equalization is establishing an Electronic Funds Transfer (EFT) program to replace the method of sending direct deposits to cities.  Should I be concerned about an ominous phrase in the contract?
 
"Important
By participating the the electronic funds transfer (EFT) program, payee agrees that in the event a debt is determined by court order or otherwise to be owed to the State of California by the payee, the payee will be removed from the EFT program until the debt is extinguished."
 
To take a worst case scenario, if the City does not re-pay some little State Mandated Cost Rieimbursement overpayment, will the State remove Sales Tax and other EFT payments?
 
If this is no change from prior language, or you all feel this is just paranoia, I will sign.
 
If you all think this is a legitimate concern, should we respond by
  • Asking for a clearer definition of "otherwise."
  • Crossing out "or otherwise" and sign and send.
  • Some other approach
Please give me your thoughts.

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