HomeMy WebLinkAboutFin Reciprocal Exhange of Tax Data for Business License InfoSTANDARD AGREEMENT
STD 213 (Rev. 2/2019)
AGREEMENT NUMBER PURCHASING AUTHORITY NUMBER (If applicable)
000000000000000000036569
I. ThisAgreement is entered into between the Contracting Agencyand the Contractor named below:
CONTRACTING AGENCY NAME
Franchise Tax Board
CONTRACTOR NAME
City of San Rafael
2. Theterm of thisAgreement is:
START DATE
June 1, 2019
THROUGH END DATE
December 31, 2021
3. The maximum amount of this Agreement is:
$0.00 NON-FINANCIAL
4. The parties agree to comply with the terms and conditions of the following exhibits, which are by this reference made apart of the
Agreement.
EXHIBITS
TITLE
PAGES
Exhibit A
Scope of Work
3
Exhibit C*
General Terms and Conditions
GTC417
Exhibit D
Special Terms and Conditions
3
Exhibit E
City and County Record Layout Specifications
2
Exhibit F
FTB Record Layout Specifications
1
Exhibit G
Confidentiality Statement
1
Items shown with an asterisk (*), are hereby incorporated by reference and made part of this agreement as if attached hereto. These
documents can be viewed at www.dgs.ca.gov/ol& esoun es/standardcontractlanguage.aspx
IN WITNESS WHEREOF, THIS AGREEMENT HAS BEEN EXECUTED BY THE PARTIES HERETO.
CONTRACTOR
CONTRACTOR NAME (if other than an Individual, state whether a corporation, partnership, etc.)
City of San Rafael
CONTRACTOR BUSINESS ADDRESS CITY STATE ZIP
1400 5th Avenue San Rafael ICA 94901
PRINTED NAME OF PERSON SIGNING TITLE
Jim Schutz City Manager
CONTR OR AUTH (ZEDS DATESIGNED
,�. q- -r
STATE OF CALIFORNIA
CONTRA'&T4Ne`AGENCY NAME
Franchise Tax Board (FTB)
CONTRACTING AGENCY ADDRESS
CITY
STATE
ZIP
Procurement Bureau, P.O. Box 2086
Rancho Cordova
ICA
95741
PRINTED NAME OF PERSON SIGNING
TITLE
Michael A. Banuelos
Procurement and Contracting Officer, or Designee
THO I SIGNATURE
DATES
rCONRCTING
99GN��EDL.eJIA
DEPARrMENTOF L'S CES APR�OVAL
EXEMPTION-, IFAPPLICABLE
SCM Vol. 14.04 A.2
Pagel of 11
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City of San Rafael
Agreement # 36569
EXHIBIT A
SCOPE OF WORK
This agreement, hereinafter referred to as "Agreement" is entered into by and between the Franchise
Tax Board, herein after referred to as "FTB", and the City of San Rafael, herein after referred to as
"City."
Purpose:
This Agreement provides for the reciprocal exchange of tax data related to the City business license
information between FTB and the City for tax administration purposes. By entering into a reciprocal
agreement, each party agrees to bear its own costs of providing the data,.and the City is precluded
from obtaining reimbursement.
Both parties will abide by the legal and confidential provisions of this Agreement. Exhibits A, D, E, F,
and G, attached hereto, and Exhibit C incorporated by reference herein, set forth additional terms to
which the parties agree to be bound.
No Federal Tax Information will be exchanged.
Legal Authority:
California Revenue and Taxation Code (R&TC) Section 19551.1 authorizes a reciprocal agreement
for the exchange of specified tax information between a city and FTB. RUC Section 19551.5
mandates counties to provide city business licensing and tax information to FTB upon request.
City Responsibilities:
1. The City agrees that the information provided by FTB will be used exclusively to administer the
City's business tax program.
2. The City agrees that information obtained under this Agreement will not be reproduced,
published, sold, or released in original or in any other form for any purpose; and will only be
accessed or used by City employees whose duties are to administer the City's business tax
program.
3. The City agrees to provide FTB with tax information pursuant to Exhibit E, Format
Specifications, which shall include, but not be limited to, the following:
• Business or owner's name.
• Business or residence address.
• Federal employer identification number or social security number.
• Ownership type.
• North American Industry Classification Code or Standard Industry Classification Code.
• Business start and cessation dates.
• City Business Tax Number, to be assigned to City by FTB.
4. The City agrees to extract and provide City data to FTB annually in June for each tax year that
the Agreement is in place: June 2019, 2020, and 2021. If the Agreement is executed after
June 30, 2019, the City will have 30 days after execution to provide FTB with the first year's
data.
Page2 of 11
City of San Rafael
Agreement # 36569
EXHIBIT A
SCOPE OF WORK
5. The City agrees to submit the records to FTB electronically using FTB's Secure Web Internet
File Transfer (SWIFT) system.
6. The City agrees to submit the records to FTB in ASCII fixed -length format, .txt, per the Format
Specifications, Exhibit E.
7. The City agrees to resubmit data in the event data is initially submitted with errors. The
resubmission of data must be within 30 days of notification. If data is not submitted accurately
and timely, the City will forfeit its rights to FTB data for that year.
8. The City agrees that each City employee having access to FTB data shall sign a City Business
Tax Program Confidentiality Statement, FTB 712 (Exhibit G). The signed form shall be retained
by the City and shall be provided to FTB upon request.
9. The City agrees to submit to FTB a completed Safeguard Review Questionnaire prior to
receiving any FTB data. The Safeguard Review Questionnaire is valid for the duration of the
Agreement.
10. The City agrees to provide a copy of the resolution, order, minutes reflecting passage of a
motion, or ordinance of the local governing body authorizing the execution of the Agreement.
FTB Responsibilities:
1. FTB agrees that information provided by the City will be used for tax administration and non -tax
programs that FTB administers and may be shared with other state or federal agencies as
authorized by law.
2. FTB agrees that information obtained under this Agreement will not be reproduced, published,
sold, or released in original or in any other form for any purpose, except as provided in
paragraph 1 or otherwise authorized by law.
3. FTB agrees to provide the City with data extracted from the Taxpayer Information (TI) system
and Business Entities Tax System (BETS). FTB will provide the City with records for taxpayers
within the City's jurisdiction who indicate a business on their personal or business entity income
tax return. The Record Layout, Exhibit F (FTB 909A) shall include
• Taxpayer name.
• Taxpayer address.
• Taxpayer social security number or federal employer identification number.
• Principal Business Activity code.
4. FTB agrees to match the data provided by the City using the social security number or federal
employer identification number against FTB's data with a "yes" or "no" indicator on the Record
Layout, Exhibit F (FTB 909A). The first year's data match is at the discretion of FTB based on
when the data is received from the City and processed.
5. FTB agrees to provide the City with an annual data extract in December 2019 for tax year 2018,
in December 2020 for tax year 2019, and in December 2021 for tax year 2020 via SWIFT.
Page3 of 11
City of San Rafael
Agreement # 36569
EXHIBIT A
SCOPE OF WORK
6. FTB agrees to register the City for a SWIFT account allowing for the secure electronic
transmission of data.
7. FTB agrees to provide the City with a unique City Business Tax Number to be used for reporting
purposes only.
8. FTB agrees to allow the City to resubmit data within 30 days of notification, in the event data is
initially submitted with errors.
Project Coordinators:
The project coordinators during the term of this Agreement will be:
Franchise Tax Board
Whitney Lake
City Business Tax Program Manager
Data Resources and Services Unit
P.O. Box 1468, Mailstop A181
Sacramento, CA 95812-1468
Phone: (916) 845-6304
Email: FTBCCBTCaD-ftb.ca.gov
Return executed agreement to:
Franchise Tax Board
Ken Press
Business Acquisitions Analyst
P.O. Box 2086, Mailstop A-374
Rancho Cordova, CA 95741-2086
Phone: (916) 845-3552
Fax: (916) 843-2398
Email: ken neth.press(D-ftb.ca.gov
City of San Rafael
Andrew Thompson
Revenue Supervisor
1400 51h Avenue
San Rafael, CA 94901
Phone: (415) 458-5040
Email: Andrew.ThompsonOcityofsanrafael.org
Page4 of 11
City of San Rafael
Agreement # 36569
EXHIBIT D
SPECIAL TERM AND CONDITIONS
DATA OWNERSHIP: The confidential tax information or sensitive information being provided
under this Agreement remains the exclusive property of the FTB. Confidential tax and sensitive
data/information are not open to the public and require special precautions to protect from loss
and unauthorized use, disclosure, modification, or destruction. The City shall have the right to
use and process the disclosed information for the purposes stated in the Scope of Work of
Exhibit A of this Agreement, which right shall be revoked and terminated immediately upon
termination of this Agreement.
2. STATEMENT OF CONFIDENTIALITY: The FTB has tax returns and other confidential data in
its custody. Unauthorized inspection or disclosure of federal returns and other confidential data
is a misdemeanor or a felony (R&TC Sections 19542, 19542.1, 19542.3 and 19552 and
Government Code Section 90005).
Upon the approval of this agreement and prior to any access to the confidential or sensitive data
of the FTB, each City employee who may have access to the confidential data of FTB will be
required to sign a City Business Tax Program Confidentiality Statement, Exhibit G, FTB 712,
attesting to the fact that he/she is aware of the confidentiality of the data and the penalties for
unauthorized disclosure thereof under applicable state and federal law. The signed statement(s)
shall be retained by the City and furnished to FTB upon request.
3. USE OF INFORMATION: The City agrees that the information furnished or secured pursuant to
this Agreement shall be used solely for the purposes described in the Scope of Work of Exhibit
A. The City further agrees that information obtained under this Agreement will not be
reproduced, published, sold or released in original or in any other form for any purpose other
than as identified in this section.
4. EMPLOYEE ACCESS TO INFORMATION: Both FTB and the City receiving data agree that the
information obtained will be kept in the strictest confidence and shall make information available
to its own employees only on a "need to know" basis. The "need to know" standard is met by
authorized employees who need the information to perform their official duties in connection
with the uses of the information authorized by this Agreement. Each party receiving data
recognize(s) their responsibility to protect the confidentiality of the information in its custody as
provided by law and ensure that such information is disclosed only to those individuals and for
such purposes as authorized by law and this Agreement.
5. PROTECTING CONFIDENTIAL INFORMATION/ INCIDENT REPORTING: The City receiving
data, in recognizing the confidentiality of the information to be exchanged, agrees to take all
appropriate precautions to protect the confidential information obtained pursuant to this
agreement from unauthorized disclosure. The City receiving data will conduct oversight of its
users with access to the confidential information provided under this agreement and will
immediately notify the FTB's Information Security Audit Unit (SecurityAuditMailCcD-ftb.ca.gov) of
any unauthorized or suspected unauthorized accesses, uses and/or disclosures (incidents). For
purposes of this section, immediately is defined as within 24 hours of the discovery of the
breach. The notification must describe the incident in detail and identify responsible personnel
(name, title, and contact information). The City will comply with the incident reporting
requirements in accordance with R&TC Section 19542.1, Civil Code Section 1798.29, SAM
Chapter 5300, and SAM Section 20080 to facilitate or fulfill the required reporting to the
taxpayers or state oversight agencies.
Page5 of 11
City of San Rafael
Agreement # 36569
EXHIBIT D
SPECIAL TERM AND CONDITIONS
6. INFORMATION SECURITY: Information security is defined as the preservation of the
confidentiality, integrity, and availability of information. A secure environment is required to
protect the confidential information obtained from FTB pursuant to this agreement. The City
receiving data will store information so that it is physically secure from unauthorized access.
The records received by the City will be securely maintained and accessible only by employees
of the City business license or tax programs who are committed to protect the data from
unauthorized access, use, or disclosure. All FTB electronic data must be encrypted when in
transit using FIPS 140-2 approved encryption technology and be password protected and
secure at all times when in storage. Confidential information obtained from the FTB must be
secured in accordance with the State Administrative Manual, Chapters 5100 (EDP Standards)
and 5300 (Information Security); National Institute of Standards and Technology (NIST) Special
Publication 800-53 (moderate); and additional security requirements provided by FTB.
7. CLOUD COMPUTING ENVIRONMENT: A Cloud Computing Environment cannot be used to
receive, transmit, store or process FTB's confidential data without prior written approval from
FTB's Chief Security Officer.
8. DESTRUCTION OF RECORDS: All records received by the City from FTB, and any
database(s) created, copies made, or files attributed to the records received, will be returned or
destroyed within three years of receipt or upon termination of the agreement due to a breach of
its terms, whichever occurs earlier. The records shall be destructed in a manner to be deemed
unusable or unreadable, and to the extent that an individual record can no longer be reasonably
ascertained. The City will notify FTB City Business Tax program manager annually in writing at
FTB CCBTO-FTB.CA.GOV that proper destruction methods have been applied. FTB will destroy
city/county data in accordance with the department's data retention policies.
9. DISPUTE RESOLUTION: In the event of a dispute, the City shall file a "Notice of Dispute" with
the Chief Financial Officer of the FTB within ten (10) days of discovery of the problem. Within
ten (10) days, the Chief Financial Officer or his/her designee shall meet with the City for
purposes of resolving the dispute. The decision of the Chief Financial Officer shall be final.
10. SAFEGUARD REVIEW QUESTIONNAIRE AND REVIEW: Prior to sending data to the City,
FTB requires the City to submit a Safeguard Review Questionnaire certifying the protection and
confidentiality of FTB data. The City will be provided a minimum of seven (7) days' notice prior
to an on-site safeguard review being conducted by FTB. FTB retains the right to conduct on-site
safeguard reviews of the City) use of FTB information and security controls established. The
safeguard reviews may include, but are not limited to an examination of the adequacy of
information security controls, "need to know," and use justifications established by the City to
ensure compliance with the terms and conditions of this agreement. The City will take
appropriate disciplinary actions against any user determined to have violated security or
confidentiality requirements.
Page6 of 11
City of San Rafael
Agreement # 36569
EXHIBIT D
SPECIAL TERM AND CONDITIONS
11. LIMITED WARRANTY: Neither party represents or warrants the accuracy or content of the
material available through this Agreement, nor each expressly disclaims any express or implied
warranty, including any implied warranty of fitness for a specific purpose.
12. CANCELLATION: Either party may terminate this Agreement, in writing for any reason, upon
thirty (30) days' prior written notice. This Agreement may be terminated immediately by either
party in the event of any breach of the terms of this Agreement.
13. NO THIRD PARTY LIABILITY: Nothing contained in or related to this agreement shall create
any contractual relationship between either of the Parties and any other party, except between
FTB and the City; and no other party shall relieve the City or FTB of its responsibilities and
obligations hereunder. Each of the parties agrees to be fully responsible for the acts and
omissions of its third party contractors and agents, and of persons either directly or indirectly
employed by the party. Neither of the parties shall have any obligation to pay, or to see to the
payment of, any monies to any party or persons either directly or indirectly employed by the
other.
Page7 of 11
City of San Rafael
Agreement # 36569
EXHIBIT E
CITY AND COUNTY RECORD FORMAT SPECIFICATIONS (FTB 909)
Data Element Name
Start
Pos.
End
Pos.
Field
Size
Usage
Description
SOCIAL SECURITY
1
9
9
AN
Must be present unless FEIN is
NUMBER (SSN)
provided. Fill unused field with
zeroes.
FEDERAL EMPLOYER
10
18
9
AN
Must be present unless SSN is
ID NUMBER (FEIN)
provided. Fill unused field with
zeroes.
OWNERSHIP TYPE
19
19
1
AN
Must be present:
S = Sole Proprietorship
P = Partnership
C = Corporation
T = Trust
L = Limited Liability Company
OWNER'S LAST NAME
20
34
15
AN
Must be present if Ownership Type
in position 19 = S.
OWNER'S FIRST NAME
35
45
11
AN
Must be present if Ownership Type
in position 19 = S.
OWNER'S MIDDLE INITIAL
46
46
1
AN
May be left blank.
BUSINESS NAME
47
86
40
AN
Enter if business is operating under
a fictitious name (Doing Business
As (DBA)).
BUSINESS ADDRESS
87
126
40
AN
Address of the business location or
NUMBER AND STREET
the residence of the owner if sole
proprietorship.
CITY
127
166
40
A
Must be present.
STATE
167
168
2
A
Enter standard state abbreviation.
ZIP CODE
169
177
9
AN
Enter the five- or nine -digit ZIP
Code assigned by the U.S. Postal
Service. If only the first five -digits
are known, left -justify information
and fill the unused fields with
zeroes.
BUSINESS START DATE
178
185
8
N
Enter the eight -digit date
(MMDDYYYY). Zero fill if not
known.
BUSINESS CEASE DATE
186
193
8
N
Enter the eight -digit date
(MMDDYYYY) if out of business.
Zero fill if unknown or still in
business.
Page8 of 11
City of San Rafael
Agreement # 36569
EXHIBIT E
CITY AND COUNTY RECORD FORMAT SPECIFICATIONS (FTB 909)
Data Element Name Start End Field Usage Description
Pos. Pos. Size
CITY BUSINESS TAX
NUMBER
NORTH AMERICAN
INDUSTRY CLASSIFICATION
SYSTEM (NAICS)
STANDARD INDUSTRIAL
CLASSIFICATION (SIC)
TOTAL RECORD LENGTH
194 196
197 202
3
6
203 206 4
206
N Enter three -digit number
assigned by FTB.
N Enter the two- to six -digit
NAICS code. Left justify.
Fill unused fields with
zeroes. (example: enter
99 as 990000).
N Enter the two- to four -
digit SIC code. Left
justify. Fill unused fields
with zeroes. (example:
enter 99 as 9900).
Page9 of 11
City of San Rafael
Agreement # 36569
EXHIBIT F
FRANCHISE TAX BOARD RECORD LAYOUT SPECIFICATIONS (FTB 909A)
Field Name Length Start Description
Pos.
ENTITY TYPE 1 1
SSN or FEIN
9
2
LAST NAME
40
11
FIRST NAME
11
51
MIDDLE INITIAL
1
62
SPOUSE SSN
9
63
SPOUSE LAST NAME
17
72
SPOUSE FIRST NAME
11
89
SPOUSE MIDDLE INITIAL
1
100
PBA CODE
6
101
ADDRESS NUMBER
10
107
PRE -DIRECTIONAL DIRECTOR
2
117
STREET NAME
28
119
STREET SUFFIX
4
147
POST -DIRECTIONAL INDICATOR
2
151
STREET SUFFIX 2
4
153
APARTMENT/SUITE NUMBER
10
157
CITY
13
167
STATE
2
180
ZIP CODE
5
182
ZIP CODE SUFFIX
4
187
CBT MATCH
1
191
"P" — personal income tax record;
"B" — business entity tax record.
For "P" records, primary taxpayer's social
security number; For "B" records, federal
employer identification number.
For "P" records, the primary taxpayer's last
name; For "B" records, business name.
For "P" records ONLY.
For "P" records ONLY.
For "P" records filed with a joint return.
For "P" records filed with a joint return.
For "P" records filed with a joint return.
For "P" records filed with a joint return.
Principal Business Activity code.
Postal Service term (i.e., N, S, E, W, NE, NW,
SE, SW).
e.g., ST, WAY, HWY, BLVD, etc.
Postal Service term (i.e., N, S, E, W, NE, NW,
SE, SW).
e.g., APT, UNIT, FL, etc.
Standard state abbreviation.
The five -digit ZIP Code assigned by the U.S.
Postal Service.
Provided if known.
"N" — No match per CBT data.
"Y" — Yes: CBT matched to state tax return
filed.
Page 10 of 11
EXHIBIT G
CONFIDENTIALITY STATEMENT (FTB 712)
State of California
City/County Business Tax Program Confidentiality Statement
City of San Rafael
Agreement # 36569
Franchise Tax Board
Confidential tax return information is protected from disclosure by law, regulation, and policy. Information
security is strictly enforced; violators may be subject to disciplinary, civil, and/or criminal action. Protecting
confidential tax return information is in the best interest of the city, county, and state.
As a city/county employee, you are required to protect all information of or received from the Franchise
Tax Board (FTB). To protect confidential tax data, you must:
• Access or modify tax data solely to perform official duties.
• Never access or inspect tax data for curiosity or personal reasons.
• Never show or discuss confidential tax data with anyone who does not have a need to
know.
• Never remove confidential tax data from your worksite without authorization.
• Place confidential information in approved locations only.
Unauthorized inspection, access, use, or disclosure of confidential tax data Is a crime under state laws,
including but not limited to, California Revenue and Taxation Code Sections 19542, 19542.1 and 19552,
and Penal Code Section 502. Unauthorized access, inspection: use, or disclosure may result In either or
both of the following:
• State criminal action
• State and/or taxpayer civil action
I certify that I have read the confidentiality statement printed above. I further certify and
understand that unauthorized access, inspection, use, or disclosure of confidential information
may be punishable as a crime and may result in disciplinary and/or civil action against me.
Date
Each city/county employee accessing FTB data must retain a signed copy of this form and
provide it to FTB upon request.
FTB 712 (REV 06-2016)
Page 11 of 11
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C'iTYWITH
CONTRACT ROUTING FORM
INSTRUCTIONS: Use this cover sheet to circulate all contracts for review and approval in the order shown below.
TO BE COMPLETED BY INITIATING DEPARTMENT PROJECT MANAGER:
Contracting Department: Finance
Project Manager: Andrew Thompson Extension: 458-5040
Contractor Name: Franchise Tax Board
Contractor's Contact: Ken Press Contact's Email: ken.press@ftb.ca.gov
❑ FPPC: Check if Contractor/Consultant must file Form 700
Step
RESPONSIBLE
DESCRIPTION
COMPLETED
REVIEWER
DEPARTMENT
DATE
Check/Initial
1
Project Manager
a. Email PINS Introductory Notice to Contractor
el tere to
b. Email contract (in Word) and attachments to City
lipk
Attorney c/o Laraine.Gittens@cityofsanrafael.org
en era a �P
k1
2
City Attorney
a. Review, revise, and comment on draft agreement
and return to Project Manager
Mbpaleo
.
b. Confirm insurance requirements, create Job on
i k h e to
PINS, send PINS insurance notice to contractor
.' {!
Aa
3
Department Director
Approval of final agreement form to send to
Click or tap
❑
contractor
to enter a
date.
4
Project Manager
Forward three (3) originals of final agreement to
Click here to
❑
contractor for their signature
enter a date.
5
Project Manager
When necessary, contractor -signed agreement
❑ N/A
agendized for City Council approval
*City Council approval required for Professional Services
❑
Agreements and purchases of goods and services that exceed
Or
$75,000; and for Public Works Contracts that exceed $175,000
Click here to
Date of City Council approval
enter a date
PRINT
CONTINUE ROUTING PROCESS WITH HARD COPY
6
Project Manager
Forward signed original agreements to City
Attorney with printed copy of this routing form
7
City Attorney
Review and approve hard copy of signed
3/2-7/14
agreement
8
City Attorney
Review and approve insurance in PINS, and bonds
3/? -71 q
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(for Public Works Contracts)
9
City Manager/ Mayor
Agreement executed by City Council authorized
a ✓
official
10
City Clerk
Attest signatures, retains original agreement and
UZ
forwards copies to Project Manager
L