HomeMy WebLinkAboutAGMT - California State Franchise Tax BoardSTATE OF CALIFORNIA
STANDARD AGREEMENT
STD 213 (Rev 06/03)
AGREEMENT NUMBER
C1700185
REGISTRATION NUMBER
1. This Agreement is entered into between the State Agency and the Contractor named below:
STATE AGENCY'S NAME
Franchise Tax Board
CONTRACTOR'S NAME
City of Seal Beach
2. The term of this
Agreement is: June 1, 2018, or date of approval, whichever is later, through December 31, 2020
3. The maximum amount $ 0.00
of this Agreement is: NON - FINANCIAL AGREEMENT
4. The parties agree to comply with the terms and conditions of the following exhibits, which are by this reference made
a part of the Agreement.
Exhibit A — Scope of Work 3 pages
Exhibit C* — General Terms and Conditions GTC417
Exhibit D — Special Terms and Conditions 3 pages
Exhibit E — City /County Record Layout Specifications 2 pages
Exhibit F — FTB Record Layout Specifications 1 page
Exhibit G — Confidentiality Statement 1 page
Items shown with an Asterisk ('), are hereby incorporated by reference and made part of this agreement as if attached hereto.
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto
CONTRACTOR
California Department of General
services Use Only
CONTRACTOR'S NAME ( /other than an individual, state whether a corporation, partnership, etc.)
CityA Seal Beach
BY( th 'zed 'gnaturc)
DATE IGNED( not type)
IV
PRI11TED NAME AND TITLEIar PERSO SIGNING
Michelle Marquez
ADDRESS
218 8`h Street, Seal Beach, CA 90280
STATE OF CALIFORNIA
AGENCY NAME
Franchise Tax Board
® Exempt per: SCM 1 - 4.04.A.2.
BY (Authorized natu ,1
DATE GN (Do not type)
t.
OR IN E A MID ITLE O SO tTS I C IT NG
Michael A. Banuelos, Procurement and Contracting Officer or Designee
ADDRESS
P.O. Box 2086, Rancho Cordova, CA 95741 -2086
City of Seal Beach
Agreement # C1700185
EXHIBIT A
SCOPE OF WORK
This Agreement is entered into by and between the Franchise Tax Board, herein after referred to as
"FTB," and the City of Seal Beach, herein after referred to as "City."
Purpose:
This Agreement provides for the reciprocal exchange between FTB and the City tax data specific to
City business license information 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, C, D, E,
F, and G, attached hereto and 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, county, or city and county and the
Franchise Tax Board. RUC Section 19551.5 mandates that a city, county, or city and county to
provide its business licensing and tax information to the Franchise Tax Board upon request.
City Responsibilities:
1. City agrees that the information provided by FTB will be used exclusively to administer the City
Business Tax Program.
2. 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 Business Tax Program.
3. City agrees to provide FTB with tax information pursuant to Format Specifications, Exhibit E,
which shall include, but not be limited to, the following:
• Business or owner's name
• Business or residence address
• Federal Employer Identification Number (FEIN) or Social Security Number (SSN)
• 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 the City by FTB
4. City agrees to extract and provide City data to FTB annually in June for each tax year that the
Agreement is in place: June 2018, 2019, and 2020. If the Agreement is executed after June 30,
2018, the City will have 30 days after execution to provide FTB with the first year's data.
Page 2 of 11
City of Seal Beach
Agreement # C1700185
EXHIBIT A
SCOPE OF WORK
5. City agrees to submit the records to FTB electronically using FTB's Secure Web Internet File
Transfer (SWIFT) system.
6. City agrees to submit the records to FTB in ASCII fixed- length format, .txt, per the Format
Specifications, Exhibit E.
7. 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 /County will forfeit its rights to FTB data for that year.
8. City agrees that each City employee having access to FTB data shall sign a City Business Tax
Program Confidentiality Statement, Exhibit G, and FTB 712. The signed statement is to be
retained by the City and produced to FTB upon request.
9. 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. 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 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 City with data extracted from the Taxpayer Information (TI) system and
Business Entities Tax System (BETS). FTB will provide City with records for taxpayers within
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 SSN or FEIN
• Principal Business Activity code
4. FTB agrees to match the data provided by City using the SSN or FEIN 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 City and processed.
Page 3 of 11
City of Seal Beach
Agreement # C1700185
EXHIBIT A
SCOPE OF WORK
5. FTB agrees to provide City with an annual data extract in December 2018 for tax year 2017, in
December 2019 for tax year 2018, and in December 2020 for tax year 2019 via SWIFT.
6. FTB agrees to register City for a SWIFT account allowing for the secure electronic transmission
of data.
7. FTB agrees to provide City with a unique City Business Tax Number to be used for reporting
purposes only.
8. FTB agrees to allow 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
Felicia Hicks
City /County Business Tax Program Manager
Data Resources and Services Unit
P.O. Box 1468, Mailstop A -181
Sacramento, CA 95812 -1468
Phone: (916) 845 -6304
Email: FTB CCBT @ftb.ca.gov
Return executed agreement to:
Franchise Tax Board
Ken Press
Business Acquisitions Unit
P.O. Box 2086, Mailstop A -374
Rancho Cordova, CA 95741 -2086
Phone: (916) 845 -6717
Fax: (916) 843 -2446
Email: Kenneth.press @ftb.ca.gov
City of Seal Beach
Michelle Marquez
Senior Accounting Technician
218 81" Street
Seal Beach, CA 90280
Phone: 562 - 431 -2527 x1314
Email: mmarquez @sealbeachca.gov
Page 4 of 11
City of Seal Beach
Agreement # C1700185
EXHIBIT D
SPECIAL TERMS 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 knout' 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
(SecurityAuditMail(aDftb.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.
Page 5 of 11
City of Seal Beach
Agreement # C1700185
EXHIBIT D
SPECIAL TERMS AND CONDITIONS
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. City
receiving data will store information so that it is physically secure from unauthorized
access. The records received by City will be securely maintained and accessible only by
employees of 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 RIPS 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 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. City will notify FTB City Business Tax program
manager annually in writing at FTB CCBT(a)FTB.CA.GOV that it has applied proper
destruction methods. FTB will destroy city /county data in accordance with the Department's
data retention policies.
9. DISPUTE RESOLUTION: In the event of a dispute, 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 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 City,
FTB requires City to submit a Safeguard Review Questionnaire certifying the protection and
confidentiality of FTB data. 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 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. City will take
appropriate disciplinary actions against any user determined to have violated security or
confidentiality requirements.
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.
Page 6 of 11
City of Seal Beach
Agreement # C1700185
EXHIBIT D
SPECIAL TERMS AND CONDITIONS
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 City; and no other party shall relieve 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.
Page 7 of 11
City of Seal Beach
Agreement # C1700185
EXHIBIT E
CITY RECORD FORMAT SPECIFICATIONS (FTB 909)
Data Element Name
Start
End
Field
Usage
Description
Pos.
Pos.
Size
SOCIAL SECURITY NUMBER
1
9
9
AN
Must be present unless FEIN is
(SSN)
provided. Fill unused field with
zeros.
FEDERAL EMPLOYER
10
18
9
AN
Must be present unless SSN is
ID NUMBER (FEIN)
provided. Fill unused field with
zeros.
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 zeros.
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.
Page 8 of 11
City of Seal Beach
Agreement # C1700185
EXHIBIT E
CITY RECORD FORMAT SPECIFICATIONS (FTB 909)
Data Element Name Start End Field Usage Description
Pos. Pas. Size
CITY BUSINESS TAX 194 196 3 N Enter three -digit number assigned
NUMBER by FTB.
NORTH AMERICAN 197 202 6 N Enter the two- to six -digit NAICS
INDUSTRY CLASSIFICATION code. Left justify. (example 99 will
SYSTEM ( NAICS) be 9900). Fill unused fields with
zeros.
STANDARD INDUSTRIAL 203 206 4 N Enter the 2 -4 digit SIC code. Left
CLASSIFICATION (SIC) justify (example 99 will be 9900).
Fill unused fields with zeros.
TOTAL RECORD LENGTH 206
Page 9 of 11
City of Seal Beach
Agreement # C1700185
EXHIBIT F
FRANCHISE TAX BOARD RECORD LAYOUT SPECIFICATIONS (FTB 909A)
Field Name Length Start Description
Pos.
ENTITY TYPE
1
1
"P" — personal income tax record;
100
PBA CODE
6
"B" — business entity tax record.
SSN or FEIN
9
2
For "P" records, primary taxpayer's social
2
117
STREET NAME
security number, For "B" records, federal
119
STREET SUFFIX
4
employer identification number.
LAST NAME
40
11
For "P" records, the primary taxpayer's last
4
153
APARTMENT /SUITE NUMBER
name; For "B" records, business name.
FIRST NAME
11
51
For "P" records ONLY.
MIDDLE INITIAL
1
62
For "P" records ONLY.
SPOUSE SSN
9
63
For "P" records filed with a joint return.
SPOUSE LAST NAME
17
72
For "P" records filed with a joint return.
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
Page 10 of 11
For "P" records fled 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.
EXHIBIT G
CONFIDENTIALITY STATEMENT (FTB 712)
State of California
City Business Tax Program Confidentiality Statement
City of Seal Beach
Agreement # C1700185
Franchise Tax Board
Confidential tax data 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 data is in the best interest of the city, county, and state.
As a city /county employee, you are required to protect all information 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 tax data 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 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.
• Taxpayer civil action.
I certify that 1 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.
Name (print)
Sim
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