HomeMy WebLinkAboutCALIFORNIA FRANCHISE TAX BOARDReturn FULLY EXECUTED
0 �1) /7 x copy to COTC M-30 SCO ID: 7730-0000000000000000000081093 A-2022-148
S TE OF ALIFORNIA-DEPARTMENT OF GENERAL SERVICES
o STANDARD AGIR EEMENT AGREEMENTNUMBER PURCHASING AUTHORITY NUMBER(IfApplicable)
c� STD 213(Rev. 04/2020) 000000000000000000081093
O
QVCONTRACTING AGENCY NAME
Franchise Tax Board
CONTRACTOR NAME
City of Santa Ana
2. The term of this Agreement is:
5TARTDATE
July 19, 2022
THROUGH END DATE
December 31, 2024
3. The maximum amount of this Agreement is:
$0.00 (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.
Exhibits
Title
Pages
ExhibitA
Scope of Work
3
Exhibit B
Budget Detail and Payment Provisions
1
Exhibit C"
General Terms and Conditions
GTC417
Exhibit D
Special Terms and Conditions
3
Exhibit E
City and County Record Format Specifications
2
r
Exhibit
Franchise Tax Board Record Layout Specifications
1
Exhibit G
Confidentiality Statement
7
Items shown with an asteris ,are herebyinomporote by reference and ma eport of this agreementas ifattached hereto.
These documents can be viewed athups9/www.dgs.co.aov/OL5/Resources
IN WITNESS WHEREOF, THISAGREEMENT HAS BEEN EXECUTED BYTHEPARTIES HERETO.
CONTRACTOR NAME (If other than an individual, state whether a corporation, partnership, etc.)
City of Santa Ana
CONTRACTOR BUSINESS ADDRESS CITY STATE ZIP
20 Civic Center Plaza Santa Ana CA 92701
PRIN I ED NAME OF PERSON SIGNING TfTLE
CONTRACTOR AUTHORIZED SIGNATURE , I DATE SIGNED
127
Page 1 of 2
SCOID: 7730-0000000000000000000081093
STATE OF CALIFORNIA - DEPARTMENT OF GENERAL SERVICES
STANDARD AGREEMENT AGREEMENTNUMOER I PURCHASING AUTHORITY NOMBER(If Applicable)
STD 213 (Rev.04/2020) 000000000000000000081093
CONTRACTING AGENCY NAME
Franchise Tax Board
CONTRACTING AGENCY ADDRESS
-
CITY
STATE
LIP
P.O. Box 2086
Rancho Cordova
CA
95741
)RINTED NAME OF PERSON SIGNING
TITLE
Michael A. Banuelos
Procurementand Contracting Officer or Designee
-ONTRACTING AGENCY AUTHORIZED SIGNATURE
' DIgllally signed by
Michael A.), Michael A, eanueles
DATESIGNED
{
Banuelos Date: 2022.08.09
18:10:02-07'00'
,
CALIFORNIA DEPARTMENT OF GENERAL SERVICES APPROVAL
EXEMPTION (If Applicable) -
SCM Vol.1, 4.04.A.2
{
I
Page 2 of 2
State of California
Franchise Tax Board
EXHIBIT A
SCOPE OF WORK
City of Santa Ana
Agreement #81093
This Agreement is entered into by and between the Franchise Tax Board, herein after referred to as
(FTB), and the City of Santa Ana, herein after referred to as the 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 and FTB. RUC Section
19551.5 mandates cities/counties to provide city/county 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/County 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/County Business
Tax Program.
3. The 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
Page 1 of 12
State of California
Franchise Tax Board
City of Santa Ana
Agreement #81093
4. The City agrees to extract and provide city data to FTB annually between April and July for each
tax year that the Agreement is in place. If the Agreement is executed after July 31, 2022, the City
will have 30 days after execution to provide FTB with the first year's data.
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.
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/County
Business Tax Program Confidentiality Statement, FTB 712 (Exhibit G). The signed statement is
to be retained by the City and produced to FTB upon request.
9. The City agrees to submit to FTB a completed Security Questionnaire prior to receiving any FTB
data. The Security Questionnaire is valid for the duration of the Agreement.
10. The City agrees to provide a copy of the current resolution, order, or minutes reflecting passage
of a motion, or ordinance of the local governing body authorizing the execution of this specific
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 SSN or FEIN
• Principal Business Activity code
4. FTB agrees to match the data provided by the 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 the City and
processed.
Page 2 of 12
State of California
Franchise Tax Board
City of Santa Ana
Agreement #81093
5. FTB agrees to provide the City with an annual data extract in December 2022 for tax year 2021,
in December 2023 for tax year 2022, and in December 2024 for tax year 2023 via SWIFT.
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
Chelsea Van Zant
City/County Business Tax Program Manager
Data Oversight Program
P.O. Box 1468, Mailstop A181
Sacramento, CA 95812-1468
Phone: (916) 845-6304
Email: FTBCCBT(LDftb.ca.aov
Return executed agreement to:
Franchise Tax Board
Richard O'Neal
Business Acquisitions Unit
P.O. Box 2086, Mailstop A-374
Rancho Cordova, CA 95741-2086
Phone: (916) 845-5597
Fax: (916) 364-2688
Email: Richard. Oneal(a)ftb.ca. nov
City of Santa Ana
Daphne Camacho
Lead Business Tax Collector/Inspector
20 Civic Center Plaza
Santa Ana, CA 92701
Phone: (714) 647-5448
Email: dcamachot7a.santa-ana.org
Page 3 of 12
State of California
Franchise Tax Board
EXHIBIT B
BUDGET DETAIL AND PAYMENT PROVISIONS
This data exchange is provided at no cost.
City of Santa Ana
Agreement #81093
Page 4 of 12
State of California
Franchise Tax Board
EXHIBIT D
SPECIAL TERMS AND CONDITIONS
City of Santa Ana
Agreement #81093
DATA OWNERSHIP: The confidential tax information or sensitive information being
provided under this Agreement remains the exclusive property of the providing party.
Confidential tax information and other confidential information are not open to the public and
require special precautions to protect from loss and unauthorized access, inspection,
acquisition, use, disclosure, modification, or destruction. The City (or County) 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 Franchise Tax Board has taxpayer tax returns
and other confidential information and data in its custody. Unauthorized inspection or
disclosure of state returns or other confidential information or data is a misdemeanor
(Revenue and Taxation Code Sections 19542, 19542.1, Unauthorized inspection or
disclosure of federal returns and other confidential federal return information or data is a
misdemeanor or a felony (Internal Revenue Code Sections 7213A(a)(2) and (b), and
7213(a)(2), respectively).
Upon the approval of this agreement and prior to any access to the confidential or sensitive
data of the FTB, each City (or County) employee who may have access to the confidential
data of FTB will be required to sign a City/County Business Tax Program Confidentiality
Statement, FTB 712 (Exhibit G), 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 (or
County) and furnished to FTB upon request.
3. USE OF INFORMATION: The City (or County) 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 (or County) 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 the Scope of Work of Exhibit A.
4. EMPLOYEE ACCESS TO INFORMATION: Both FTB and the City (or County) 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) its 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.
PROTECTING CONFIDENTIAL INFORMATION/ INCIDENT REPORTING: Both FTB and
the City (or County) receiving data, recognize the confidentiality of the information to be
exchanged, pursuant to this agreement from unauthorized access, use, or disclosure. Each
party 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(o)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
Page 5 of 12
State of California
Franchise Tax Board
City of Santa Ana
Agreement #81093
must describe the incident in detail and identify responsible personnel (name, title, and
contact information). The City (or County) with an incident 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 Sections 8643 and 20080, and State Information
Management Manual 54340-A and 5340-C to facilitate the required reporting to the
taxpayers or state oversight agencies.
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
(or County) receiving data will store information so that it is physically secure from
unauthorized access. The records received by the City (or County) will be securely
maintained and accessible only by employees of the City (or County) 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 SAM Chapters 5100 and 5300 (Information Security), and National Institute of Standards
and Technology (NIST) Special Publication 800-53 (moderate); and additional security
requirements provided by FTB.
CLOUD COMPUTING ENVIRONMENT: A City (or County) receiving FTB's confidential data
must submit a completed FTB Cloud Security Questionnaire before using a Cloud
Computing Environment. The questionnaire will be reviewed for approval by FTB's Chief
Security Officer, or his/her designee. 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 or his/her designee.
DESTRUCTION OF RECORDS: All records received by the City (or County) from FTB
under this Agreement, 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 (or
County) will notify FTB City/County Business Tax program manager annually in writing at
FTB CCBT(o)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 (or County) 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 (or County) for purposes of resolving the dispute. The decision of the Chief
Financial Officer shall be final.
10. SURVIVAL OF OBLIGATION TO PROTECT DATA: Each party's obligation to protect the
data and information received from the other party shall survive the expiration or termination
of this Agreement. In the event a party continues to provide any data or information to the
other party after the expiration or termination of this Agreement, the receiving party agrees
to continue to protect all such data and information received in accordance with the
provisions of this Exhibit D, and all applicable state and federal laws.
Page 6 of 12
State of California City of Santa Ana
Franchise Tax Board Agreement #81093
11. ONSITE SAFEGUARD REVIEW: FTB retains the right to conduct on -site safeguard reviews
of the City (or County) 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
(or County) to ensure compliance with the terms and conditions of this agreement. FTB will
provide a minimum of seven (7) days' notice of a safeguard review being conducted by FTB
staff. The City (or County) will take appropriate disciplinary actions against any user
determined to have violated security or confidentiality requirements.
12. 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.
13. 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.
14. 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 (or County); and no other party shall relieve the City (or County)
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 12
State of California
Franchise Tax Board
City of Santa Ana
Agreement #81093
EXHIBIT E
CITY AND COUNTY RECORD FORMAT SPECIFICATIONS (FTS 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.
Page 8 of 12
State of California
Franchise Tax Board
BUSINESS CEASE DATE
Data Element Name
City of Santa Ana
Agreement #81093
186 193 8 N Enter the eight -digit date
(MMDDYYYY) if out of business.
Zero fill if unknown or still in
business.
Start End Field Usage Description
Pos. Pos. Size
CITY BUSINESS TAX 194 196 3
NUMBER
NORTH AMERICAN 197 202 6
INDUSTRY CLASSIFICATION
SYSTEM (NAICS)
STANDARD INDUSTRIAL 203 206 4
CLASSIFICATION (SIC)
TOTAL RECORD LENGTH
1640
N Enter three -digit number assigned
by FTB.
N Enter the two- to six -digit NAICS
code. Left justify. (example 99 will
be 9900). Fill unused fields with
zeros.
N Enter the 2-4 digit SIC code. Left
justify (example 99 will be 9900).
Fill unused fields with zeros.
Page 9 of 12
State of California
Franchise Tax Board
City of Santa Ana
Agreement #81093
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;
"B" — business entity tax record.
SSN or FEIN
9
2
For "P" records, primary taxpayer's social
security number; For "B" records, federal
employer identification number.
LAST NAME
40
11
For "P" records, the primary taxpayer's last
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
For "P" records filed with a joint return.
SPOUSE MIDDLE INITIAL
1
100
For "P" records filed with a joint return.
PBA CODE
6
101
Principal Business Activity code.
ADDRESS NUMBER
10
107
PRE -DIRECTIONAL DIRECTOR
2
117
Postal Service term (i.e., N, S, E, W, NE,
NW, SE, SW).
STREET NAME
28
119
STREET SUFFIX
4
147
e.g., ST, WAY, HWY, BLVD, etc.
POST -DIRECTIONAL INDICATOR
2
151
Postal Service term (i.e., N, S, E, W, NE,
NW, SE, SW).
STREET SUFFIX 2
4
153
APARTMENT/SUITE NUMBER
10
157
e.g., APT, UNIT, FL, etc.
CITY
13
167
STATE
2
180
Standard state abbreviation.
Page 10 of 12
State of California
City of Santa Ana
Franchise Tax Board
Agreement #81093
ZIP CODE
5 182 The five -digit ZIP Code assigned by the U.S.
Postal Service.
ZIP CODE SUFFIX
4 187 Provided if known.
CBT MATCH
1 191 "N" — No match per CBT data.
"Y" — Yes: CBT matched to state tax return
filed.
Page 11 of 12
EXHIBIT G
CONFIDENTIALITY STATEMENT (FTB 712)
State of California Franchise Tax Board
City/County Business Tax Program Confidentiality Statement
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.
1 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.
Name (print)
Signature
Dat
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)