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HomeMy WebLinkAboutFRANCHISE TAX BOARD, STATE OF CALIFORNIASTATE OF CALIFORNIA STANDARD AGREEMENT STD 213 (Rev 06/03) N- 2009 -032 AGREEMENT NUMBER C0800197 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 Santa Ana 2. The term of this Agreement is: June 1, 2009 through December 31, 2011 3. The maximum amount $ 0.00 of this Agreement is: NON - FINANCIAL 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 2 pages Exhibit C* — General Terms and Conditions GTC307 Exhibit D - Special Terms and Conditions 3 pages Exhibit E — City Record Format Specifications 2 pages Exhibit F — FTB Record Layout Specifications 2 pages 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. These documents can be viewed at www.ols.dgs.ca.gov !Standard +Lanquage /default.htm IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto. CONTRACTOR California Department of General Services Use Only CONTRACTOR'S NAME (if other than an individual, state whether a corporation, part iership, etc. ) City of Santa Ana BY (Authoriz Sig) DATE SIGNED(Do not type) 7' PRINTED NAME AND TI LE OF PERSON SIGNING DAVID N. REAM, City Manager ADDRESS P.O. Box 1964, M -15, Santa Ana, CA 92702 STATE OF CALIFORNIA AGENCY NAME Franchise Tax Board BY (Aut on d Signal DATE I Do not type) /GNE Exempt per: SCM 4.04.5.b. PRINTED NAME AND TITLE OF PERSON SIGNING Lisa Garrison, Chief Financial Officer ADDRESS P.O. Box 2086, Rancho Cordova, CA 95741 -2086 City of Santa Ana Agreement #C0800197 IN WITNESS WHEREOF, the parties hereto have executed this Agreement C0700197, The date and year first above written. ATTEST: PATRICIA E. HEALY Clerk of the Council APPROVED AS TO FORM: JOSEPH W. FLETCHER City Attorney By. Laura Sheedy Assistant City Attorney RECOMMENDED FOR APPROVAL: FRANCI CO GUTI RREZ Finance & Management Services City of Santa Ana EXHIBIT A SCOPE OF WORK Agreement #C0800197 This Agreement is entered into by and between the Franchise Tax Board, herein referred to as (FTB) and the City of Santa Ana, herein after referred to as the City. Purpose: This Agreement allows FTB and the City to enter into a reciprocal agreement to exchange tax data specific to city business license information for tax administration purposes. By entering into a reciprocal agreement, each party agrees to bare their 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, sets forth additional terms to which the parties agree to be bound. Legal Authority: California Revenue and Taxation Code Section 19551.5 authorize a reciprocal agreement for the exchange of city business tax and income tax information between a City and FTB. 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 only accessed by City employees. 3. The City agrees to provide FTB with tax information pursuant to Exhibit E, Format Specifications, which shall include but is not limited to the following: • Business or owner's name. • Business or residence address. • Federal employer identification number or social security number. • North American Industry Classification Code or Standard Industry Classification Code. 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 2009, 2010, and 2011. 5. The City agrees to submit the records to FTB using FTB's Secure Web Internet File Transfer (SWIFT). 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 forfeits its rights to FTB data for that year. City of Santa Ana EXHIBIT A SCOPE OF WORK (continued) Agreement #C0800197 8. The City agrees that each City employee having access to FTB data shall sign a Confidentiality Statement, 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 safeguard questionnaire prior to receiving FTB data. The safeguard questionnaire is valid for the duration of the Agreement. 10. The City agrees to provide a copy of the resolution, order, 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 /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. 3. FTB agrees to provide the City data extracted from the Taxpayer Information (TI) and Business Entity Tax System (BETS). FTB will provide the City records for taxpayers within the city's jurisdiction who indicate a business on their personal or corporation income tax return. The Record Layout, Exhibit F shall include, but is not limited to: • 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. 5. FTB agrees to provide the City an annual extraction in December 2009 for tax year 2008, December 2010 for tax year 2009, and December 2011 for tax year 2010 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 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. City of Santa Ana Agreement #C0800197 EXHIBIT D SPECIAL TERMS AND CONDITIONS 1. DATA OWNERSHIP: The classified confidential tax information being provided to the City under this Agreement remains the exclusive property of FTB. The City shall have the right to use and process the disclosed information for the purposes stated in this Agreement, which right shall be revoked and terminated immediately upon completion of this Agreement. 2. STATEMENT OF CONFIDENTIALITY: The Franchise Tax Board has tax return information and other data in its custody, which is confidential data. Unauthorized inspection or disclosure of state tax return information or other confidential data is a misdemeanor (Revenue and Taxation Code Section 19542 and 19542.1). 3. USE OF INFORMATION: The City and FTB agree that the information furnished or secured pursuant to this Agreement shall be used solely for the purposes described by this Agreement. The information obtained by FTB shall be used for tax administration and non - tax programs that FTB administers and may be shared with other state /federal agencies as authorized by law. The City and FTB further agree 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 identified in this Agreement or as authorized by law. 4. EMPLOYEE ACCESS TO INFORMATION: Both FTB and the City 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 information to perform their official duties in connection with the uses of the information authorized by this Agreement. Both parties recognize their responsibilities to protect the confidentiality of this information as provided by law and ensures such information is disclosed only to those individuals and of such purpose, as authorized by the Revenue and Taxation Code. 5. DISCLOSURE OF CONFIDENTIAL INFORMATION: Any unwarranted disclosure or use of state tax return information or any willful unauthorized inspection of the return information is an act punishable as a misdemeanor. Inspection is defined to mean any examination of confidential information. No one other than authorized employees may have access, use, and view or manipulate the data being transmitted to the City under this Agreement. The City, in recognizing the confidentiality of state tax return information, agrees to take all appropriate precautions to protect from unauthorized disclosure of the confidential information obtained pursuant to this Agreement. The City will conduct oversight of its users with access to the confidential information provided under this Agreement, and will promptly notify FTB of any suspected violations of security or confidentiality by its users. The City and each of the City's employees who may have access to the confidential data of FTB will be required to sign a Confidentiality Statement, Exhibit G, attesting to the fact that he /she is aware of the confidential data and the penalties for unauthorized disclosure thereof. The signed statement shall be retained by the City and furnished to FTB upon request. City of Santa Ana EXHIBIT D Agreement #C0800197 SPECIAL TERMS AND CONDITIONS (continued) 6. INCIDENT REPORTING: All unauthorized or suspected unauthorized access; use and /or disclosure (incidents) of FTB data shall be reported to FTB's contact, Erica Gonzales at (916) 845 -6556, immediately upon discovery of the incident. The incident report shall contain the following: date, time, employee name, description of the incident or circumstances, and means of discovery. Upon discovery of any such incident, FTB will make the appropriate notification to affected California Resident(s) pursuant to the requirements of Civil Code Section 1798.29. 7. INFORMATION SECURITY: Information security is defined as the preservation of the confidentiality, integrity, availability, authenticity, and utility of information. A secure environment is required to protect the confidential information obtained from FTB pursuant to this Agreement. The City 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 program who are committed to protect the data from unauthorized access, use, or disclosure. 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 destroyed within three years of receipt. The records shall be destructed in a manner to be deemed unusable or readable and to the extent that an individual record can no longer be reasonably ascertained. FTB will destroy City data in accordance with the Department's data retention policies. 9. INDEMNIFICATION: Both parties agree to indemnify, defend, and save harmless each other, its officers, agents and employees from any and all claims and losses accruing or resulting from any breach of confidentiality by either party and /or its employees. 10. SETTLEMENT OF DISPUTES: In the event of a dispute, the City shall file a "Notice of Dispute" with the Assistant Executive Officer of the Franchise Tax Board within ten (10) days of discovery of the problem. Within ten (10) days, the Assistant Executive Officer or his /her designee shall meet with the City and the FTB contact for purposes of resolving the dispute. The decision of the Assistant Executive Officer shall be final. 11. SAFEGUARD QUESTIONAIRE and REVIEW: Prior to sending data to the City, FTB requires the City to submit a safeguard questionnaire certifying the protection and confidentiality of FTB data. The FTB retains the right to conduct an on -site safeguard review of the City. The City will be provided a minimum of seven (7) days notice prior to a safeguard review being conducted by the FTB Disclosure Office. The safeguard review will examine the adequacy of information security controls established by the City in compliance with the confidentiality requirements pursuant to this Agreement. The City will take appropriate disciplinary actions against any user determined to have violated security or confidentiality requirements. 12. LIMITED WARRANTY: Either party does not warrant or represent the accuracy or content of the material available through this Agreement, and expressly disclaims any express or implied warranty, including any implied warranty of fitness for a specific purpose. City of Santa Ana EXHIBIT D Agreement #C0800197 SPECIAL TERMS AND CONDITIONS (continued) 13. CANCELLATION: Either party may terminate this Agreement, in writing for any reason, upon thirty days (30) prior written notice. This Agreement may be terminated by either party in the event of any breach of the terms of this Agreement. Both parties agree that in the event of a breach to the terms of this Agreement, it shall destroy all records and any databases created, copies made, or files attributed to the records received. The records shall be destructed in a manner to be deemed unusable or readable and to the extent that an individual record can no longer be reasonably ascertained, upon destruction. 14. NO THIRD PARTY LIABILITY: Nothing contained in this Agreement or otherwise shall create any contractual relation between either party and any other party, and no party shall relieve the City or FTB of its responsibilities and obligations hereunder. Both parties agree to be fully responsible for the acts and omissions of its third parties and of persons either directly or indirectly employed by any of them as it is for the acts and omissions of persons directly employed by the City or FTB. Both parties shall have no obligation to pay or to see the payment of any monies to any party or persons either directly or indirectly employed by the City or FTB. City of Santa Ana EXHIBIT E CITY RECORD FORMAT SPECIFICATIONS Agreement #C0800197 Data Element Name Start End Field Usage Description Pos. Pos. Size SOCIAL SECURITY NUMBER 1 9 9 AN Must be present unless FEIN is provided. Fill unused field with (SSN) blanks. FEDERAL EMPLOYER 10 18 9 AN Must be present unless SSN is provided. Fill unused field with ID NUMBER (FEIN) blanks. OWNERSHIP TYPE 19 19 1 AN Must be present: S = Sole Proprietorship, P = Partnership, C = Corporation, T = Trust, L = LLC. OWNERS LAST NAME 20 34 15 AN Must be present if Ownership Type in position 19 = S. OWNERS FIRST NAME 35 45 11 AN Must be present if Ownership Type in position 19 = S. OWNERS MIDDLE INITIAL 46 46 1 AN May be blank. 47 86 40 AN Enter if business is operating under BUSINESS NAME a fictitious name (Doing Business As (DBA). BUSINESS ADDRESS 87 126 40 AN Address of the business location or the residence of the owner if sole NUMBER - AND - STREET proprietorship. 127 166 40 A Must be present. CITY 167 168 2 A Enter standard state abbreviation. STATE 169 177 9 AN Enter the valid ZIP Code (nine or ZIP five - digit) assigned by the U.S. Postal Service. If only the first five - digits are know, left- justify information and fill the unused positions with blanks. 178 185 8 N Enter the eight -digit (MMDDCCYY). BUSINESS START DATE Zero fill if not known. BUSINESS CEASE DATE 186 193 8 N Enter the eight -digit date (MMDDCCYY) if out of business. Zero fill if not known or not out of business. City of Santa Ana EXHIBIT E CITY RECORD FORMAT SPECIFICATIONS Agreement #C0800197 Data Element Name Start End Field Usage Description Pos. Pos. Size CITY - BUSINESS -TAX- 194 196 3 N Enter three -digit number assigned NUMBER by FTB. NORTH - AMERICAN- 197 202 6 N Enter the six -digit NAICS code. Fill INDUSTRY - CLASSIFICATION- unused fields with zeros. SYSTEM ( NAICS) 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 City of Santa Ana Agreement #C0800197 EXHIBIT F FRANCHISE TAX BOARD RECORD LAYOUT SPECIFICATIONS Field Name Length Start Description Pos. 1 1 "P" — personal income tax record; ENTITY TYPE business tax record 9 2 For "P" records, primary taxpayers social SSN or FEIN security number; For "B" records, federal employer identification number. 40 11 For "P" records, the primary taxpayer's last LAST NAME name; For "B" records, business name. FIRST NAME 11 51 For "P" records ONLY. MIDDLE INITIAL 1 62 For "P" records ONLY. 9 63 For "P" records filed with a joint return. SPOUSE SSN SPOUSE LAST NAME 17 72 For "P" records filed with a joint return. 11 89 For "P" records filed with a joint return. SPOUSE FIRST NAME 1 100 For "P" records filed with a joint return. SPOUSE MIDDLE INITIAL 6 101 For "P" records, principal business activity PBA CODE (PBA) 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 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 CITY 13 167 2 180 Standard state abbreviation STATE 5 182 The valid ZIP Code (nine or five - digit) ZIP CODE assigned by the U.S. Postal Service. ZIP CODE SUFFIX 4 187 Provided if known. 1 191 "N" — No match per CBT data. "Y" — Yes: CBT MATCH CBT matched to state tax return filed. City of Santa Ana Agreement #C0800197 EXHIBIT F FRANCHISE TAX BOARD RECORD LAYOUT SPECIFICATIONS Field Name Length Start Description Pos. ENTITY TYPE 1 1 "P" — personal income tax record; "B" — business tax record SSN or FEIN 9 2 For "P" records, primary taxpayers 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 For "P" records, principal business activity (PBA) code. 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 Postal Service term (i.e., N, S, E, W, NE, NW, SE, SW). Postal Service term (i.e., N, S, E, W, NE, NW, SE, SW). Standard state abbreviation The valid ZIP Code (nine or five - digit) 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. City of Santa Ana EXHIBIT G CONFIDENTIALITY STATEMENT State of California Agreement #C0800197 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 public's interest, the state's interest, and the city's interest. A city employee is required to protect the following types of information received from the Franchise Tax Board: • Taxpayer name • Taxpayer address • Taxpayer social security number or taxpayer identification number • Principal business activity code A city employee is required to protect confidential information by: Accessing or modifying information only for the purpose of performing official duties. Never accessing or inspecting information for curiosity or personal reasons. • Never showing or discussing confidential information to or with anyone who does not have the need to know. Placing confidential information only in approved locations. Never removing confidential information from your work site without authorization. As a city employee, you are required to know whether information is protected. if you have any question regarding whether particular information is confidential, check with your department's project coordinator. Unauthorized inspection, access, use, or disclosure of confidential tax return information is a crime under state laws, including but not limited to Sections 19542 and 19552 of the California Revenue and Taxation Code and Section 502 of the Penal Code. Unauthorized access, inspection, use, or disclosure may result in either or both of the following: State criminal action • State and /or taxpayer civil action You are reminded that these rules are designed to protect everyone's right to privacy, including your own. nbdentiality statement printed above. I further certify and 1 certify that 1 have read the co 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 being taken against me. STA LIFORNIA STA DARD AGREEMENT STD 213 (Rev 06/03) n� 2 �-� 3 N� ~' n PY AGREEMENT NUMBER .- C0700197 REGISTRATION NUMBER 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 Santa Ana The term of this Agreement is: June 1, 2009 through December 31, 2011 N- 2009 -032 The maximum amount $ 0.00 of this Agreement is: NON - FINANCIAL 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 2 page Exhibit C" — General Terms and Conditions GTC307 Exhibit D - Special Terms and Conditions 3 pages Exhibit E — FTB Record Layout Specifications 2 pages Exhibit F — FTB Record Layout Specifications 2 pages Exhibit G — Confidentiality Statement 1 pages 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 /contracts IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto. CONTRACTOR California Department of General Services Use Only CONTRACTOR'S NAME (if other than an individual, state whether a corporation, partnership, etc.) City of Santa Ana BY (Authorized Sig re) DATE SIGNED(Do not type) PRINTED NAftff AND TI E OF PERSON SIGNING DAVID N. REAM, City Manager ADDRESS P.O. Box 1964, M -15, Santa Ana, CA 92702 STATE OF CALIFORNIA AGENCY NAME Franchise Tax Board BY (Authorized Signature) DATE SIGNED(Do not type) �s ® Exempt per: SCM 4.04.5.b. PRINTED NAME AND TITLE OF PERSON SIGNING Lisa Garrison, Chief Financial Officer ADDRESS P.O. Box 2086, Rancho Cordova, CA 95741 -2086 City of Santa Ana Agreement #C0800197 IN WITNESS WHEREOF, the parties hereto have executed this Agreement C0700197, The date and year first above written. ATTEST: PATRICIA E. HEALY Clerk of the Council APPROVED AS TO FORM: JOSEPH W.- FLETCHER City Attorney By: G /' Xur heedy Assistant City Attorney RECOMMENDED FOR APPROVAL: FRANCISCO GUTIERREZ Finance & Management Services A City of Santa Ana EXHIBIT A SCOPE OF WORK Agreement #C0800197 This Agreement is entered into by and between the Franchise Tax Board, herein referred to as (FTB) and the City of Santa Ana, herein after referred to as the City. Purpose: This Agreement allows FTB and the City to enter into a reciprocal agreement to exchange tax data specific to city business license information for tax administration purposes. By entering into a reciprocal agreement, each panty agrees to bare their 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, sets forth additional terms to which the parties agree to be bound. Legal Authority: California Revenue and Taxation Code Section 19551.5 authorize a reciprocal agreement for the exchange of city business tax and income tax information between a City and FTB. 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 only accessed by City employees. 3. The City agrees to provide FTB with tax information pursuant to Exhibit E, Format Specifications, which shall include but is not limited to the following: • Business or owner's name. • Business or residence address. • Federal employer identification number or social security number. • North American Industry Classification Code or Standard Industry Classification Code. 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 2009, 2010, and 2011 5. The City agrees to submit the records to FTB using FTB's Secure Web Internet File Transfer (SWIFT). 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 forfeits its rights to FTB data for that year. City of Santa Ana EXHIBIT A Agreement #C0800197 SCOPE OF WORK (continued) 8. The City agrees that each City employee having access to FTB data shall sign a Confidentiality Statement, 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 safeguard questionnaire prior to receiving FTB data. The safeguard questionnaire is valid for the duration of the Agreement. 10. The City agrees to provide a copy of on of the resolution, order, entotion, or ordinance of the local governing body, authorizing the execution 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 /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. 3. FTB agrees to provide the City data extracted from the Taxpayer Information (TI) and Business Entity Tax System (BETS). FTB will provide the City records for taxpayers within the city's jurisdiction who indicate a business on their personal or corporation income tax return. The Record Layout, Exhibit F shall include, but is not limited to: • Taxpayer name. • Taxpayer address. • Taxpayer social security number or federal employer identification number. • Principal business activity code. 4. FTB agrees loo er match the identification number gainst F B's datahwith social indicator on the federal employer Record Layout, Exhibit F. 5. FTB agrees provide the City an annual for tax year 2009, and Decembe'rr 2011 for tax December is SWIFT. 008, December 2010 y 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 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. City of Santa Ana Agreement #C0800197 EXHIBIT D SPECIAL TERMS AND CONDITIONS 1. DATA OWNERSHIP: The classified confidential tax information being provided to the City under this Agreement remains the exclusive property of FTB. The City shall have the right to use and process the disclosed information for the purposes stated in this Agreement, which right shall be revoked and terminated immediately upon completion of this Agreement. 2. STATEMENT OF CONFIDENTIALITY: The Franchise Tax Board has tax return information and other data in its custody, which is confidential data. Unauthorized inspection or disclosure of state tax return information or other confidential data is a misdemeanor (Revenue and Taxation Code Section 19542 and 19542.1). 3. USE OF INFORMATION: The City and FTB agree that the information furnished or secured pursuant to this Agreement shall be used solely for the purposes described by this Agreement. The information obtained by FTB shall be used for tax administration and non - tax programs that FTB administers and may be shared with other state /federal agencies as authorized by law. The City and FTB further agree 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 identified in this Agreement or as authorized by law. 4. EMPLOYEE ACCESS TO INFORMATION: Both FTB and the City 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 information to perform their official duties in connection with the uses of the information authorized by this Agreement. Both parties recognize their responsibilities to protect the confidentiality of this information as provided by law and ensures such information is disclosed only to those individuals and of such purpose, as authorized by the Revenue and Taxation Code. 5. DISCLOSURE OF CONFIDENTIAL INFORMATION: Any unwarranted disclosure or use of state tax return information or any willful unauthorized inspection of the return information is an act punishable as a misdemeanor. Inspection is defined to mean any examination of confidential information. No one other than authorized employees may have access, use, and view or manipulate the data being transmitted to the City under this Agreement. The City, in recognizing the confidentiality of state tax return information, agrees to take all appropriate precautions to protect from unauthorized disclosure of the confidential information obtained pursuant to this Agreement. The City will conduct oversight of its users with access to the confidential information provided under this Agreement, and will promptly notify FTB of any suspected violations of security or confidentiality by its users. The City and each of the City's employees who may have access to the confidential data of FTB will be required to sign a Confidentiality Statement, Exhibit G, attesting to the fact that he /she is aware of the confidential data and the penalties for unauthorized disclosure thereof. The signed statement shall be retained by the City and furnished to FTB upon request. City of Santa Ana EXHIBIT D Agreement #C0800197 SPECIAL TERMS AND CONDITIONS (continued) 6. INCIDENT REPORTING: All unauthorized or suspected unauthorized access; use and/or disclosure (incidents) of FTB data shall be reported to FTB's contact, Erica Gonzales at (916) 845 -6556, immediately upon discovery of the incident. The incident report shall contain the following: date, time, employee name, description of the incident or circumstances, and means of discovery. Upon discovery of any such incident, FTB will make the appropriate notification to affected California Resident(s) pursuant to the requirements of Civil Code Section 1798.29. 7. INFORMATION SECURITY: Information security is defined as the preservation of the confidentiality, integrity, availability, authenticity, and utility of information. A secure environment is required to protect the confidential information obtained from FTB pursuant to this Agreement. The City 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 program who are committed to protect the data from unauthorized access, use, or disclosure. 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 destroyed within three years of receipt. The records shall be destructed in a manner to be deemed unusable or readable and to the extent that an individual record can no longer be reasonably ascertained. FTB will destroy City data in accordance with the Department's data retention policies. 9. INDEMNIFICATION: Both parties agree to indemnify, defend, and save harmless each other, its officers, agents and employees from any and all claims and losses accruing or resulting from any breach of confidentiality by either party and /or its employees. 10. SETTLEMENT OF DISPUTES: In the event of a dispute, the City shall file a "Notice of Dispute" with the Assistant Executive Officer of the Franchise Tax Board within ten (10) days of discovery of the problem. Within ten (10) days, the Assistant Executive Officer or his /her designee shall meet with the City and the FTB contact for purposes of resolving the dispute. The decision of the Assistant Executive Officer shall be final. 11. SAFEGUARD QUESTIONAIRE and REVIEW: Prior to sending data to the City, FTB requires the City to submit a safeguard questionnaire certifying the protection and confidentiality of FTB data. The FTB retains the right to conduct an on -site safeguard review of the City. The City will be provided a minimum of seven (7) days notice prior to a safeguard review being conducted by the FTB Disclosure Office. The safeguard review will examine the adequacy of information security controls established by the City in compliance with the confidentiality requirements pursuant to this Agreement. The City will take appropriate disciplinary actions against any user determined to have violated security or confidentiality requirements. 12. LIMITED WARRANTY: Either party does not warrant or represent the accuracy or content of the material available through this Agreement, and expressly disclaims any express or implied warranty, including any implied warranty of fitness for a specific purpose. City of Santa Ana EXHIBIT D Agreement #C0800197 SPECIAL TERMS AND CONDITIONS (continued) 13. CANCELLATION: Either party may terminate this Agreement, in writing for any reason, upon thirty days (30) prior written notice. This Agreement may be terminated by either party in the event of any breach of the terms of this Agreement. Both parties agree that in the event of a breach to the terms of this Agreement, it shall destroy all records and any databases created, copies made, or files attributed to the records received. The records shall be destructed in a manner to be deemed unusable or readable and to the extent that an individual record can no longer be reasonably ascertained, upon destruction. 14. NO THIRD PARTY LIABILITY:, Nothing contained in this Agreement or otherwise shall create any contractual relation between either party and any other party, and no party shall relieve the City or FTB of its responsibilities and obligations hereunder. Both parties agree to be fully responsible for the acts and omissions of its third parties and of persons either directly or indirectly employed by any of them as it is for the acts and omissions of persons directly employed by the City or FTB. Both parties shall have no obligation to pay or to see the payment of any monies to any party or persons either directly or indirectly employed by the City or FTB. City of Santa Ana EXHIBIT E CITY RECORD FORMAT SPECIFICATIONS Agreement #C0800197 Data Element Name SOCIAL SECURITY NUMBER (SSN) Start Pos. 1 End Field _ Pos. Size g Usage AN Description Must be present unless FEIN is provided. Fill unused field with blanks. FEDERAL EMPLOYER ID NUMBER (FEIN) 10 18 9 AN Must be present unless SSN is provided. Fill unused field with blanks. OWNERSHIP TYPE 19 19 1 AN Must be present: S = Sole Proprietorship, P = Partnership, C = Corporation, T = Trust, L = LLC. OWNERS LAST NAME 20 34 15 AN Must be present if Ownership Type in position 19 = S. OWNERS FIRST NAME 35 45 11 AN Must be present if Ownership Type in position 19 = S. OWNERS MIDDLE INITIAL 46 46 1 AN May be blank. BUSINESS NAME 47 86 40 AN a fictitious name (Doing Business er f As (DBA). BUSINESS ADDRESS NUMBER - AND - STREET 87 126 40 AN he residence business f the owner if sole r proprietorship. CITY STATE 127 167 166 40' 168 2 A A Must be present. Enter standard state abbreviation. ZIP 169 177 9 AN Enter the valid ZIP Code (nine or five- digit) assigned by the U.S. Postal Service. If only the first five- digits are know, left- justify information and fill the unused positions with blanks. BUSINESS START DATE 178 185 8 N Enter the eight -digit (MMDDCCYY). Zero fill if not known. BUSINESS CEASE DATE 186 193 8 N Enter the eight -digit date (MMDDCCYY) if out of business. Zero fill if not known or not out of business. s ` City of Santa Ana Agreement #C0800197 EXHIBIT F FRANCHISE TAX BOARD RECORD LAYOUT SPECIFICATIONS Field Name Length Start Description Pos. ENTITY TYPE 1 1 "P" — personal income tax record; "B" — business tax record SSN or FEIN 9 2 For "P" records, primary taxpayers 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 ajoint return. PBA CODE 6 101 For "P" records, principal business activity (PBA) code. 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 Postal Service term (i.e., N, S, E, W, NE, NW, SE, SW). Postal Service term (i.e., N, S, E, W, NE, NW, SE, SW). Standard state abbreviation The valid ZIP Code (nine or five - digit) 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. City of Santa Ana EXHIBIT G CONFIDENTIALITY STATEMENT State of California Agreement #C0800197 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 public's interest, the state's interest, and the city's interest. A city employee is required to protect the following types of information received from the Franchise Tax Board: • Taxpayer name • Taxpayer address • Taxpayer social security number or taxpayer identification number • Principal business activity code A city employee is required to protect confidential information by: • Accessing or modifying information only for the purpose of performing official duties. • Never accessing or inspecting information for curiosity or personal reasons. • Never showing or discussing confidential information to or with anyone who does not have the need to know. • Placing confidential information only in approved locations. • Never removing confidential information from your work site without authorization. As a city employee, you are required to know whether information is protected. if you have any question regarding whether particular information is confidential, check with your department's project coordinator. Unauthorized inspection, access, use, or disclosure of confidential tax return information is a crime under state laws, including but not limited to Sections 19542 and 19552 of the California Revenue and Taxation Code and Section 502 of the Penal Code. Unauthorized access, inspection, use, or disclosure may result in either or both.of the following: • State criminal action • State and /or taxpayer civil action You are reminded that these rules are designed to protect everyone's right to privacy, including your own. 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 being taken against me. COTC PROCESSING FORM AGREEMENTS AND AMENDMENTS TO: CLERK OF THE COUNCIL OFFICE FROM: DEPT.: Finance & Management Services MAIL STOP: PROJECT MANAGER: _ Christine-C. Duarte Treasury Manager EXT.: M -13 x5335 COUNCIL APPROVAL DATE: N/A ITEM #: N/A TERM OF AGREEMENT- EFFECTIVE DATE: June 1, 2009 TERMINATION DATE: December 31, 2011 SIGNATURES REQUIRED: ❑ VENDOR ® AGENCY ❑ CITY ATTORNEY ® OTHER (INSURANCE APPROVAL REQUIRED BY CAO PRIOR TO SUBMITTING TO COTC) INSURANCE REQUIRED: El YES �. ® NO (Provide City Attorney Office approval) ❑ AUTO ❑ CGL (Commercial General Liability) ❑ PROFESSIONAL LIABILITY ❑ WORKERS COMPENSATION COMMENTS: * 3 signed replacemen pages (Page 1 only) required; due May 7, 2009. Signed by David Ream. Please be sure and use same agreement designation number as original (N- 2009 -032) Hold for pick -up by Will Holt x5456. CLERK OFFICE USE ONLY: ❑ PROCESS ADDITIONAL REMARKS: ❑ DO NOT PROCESS ❑ MISSING CONTACT /PROJECT MANAGER INFORMATION ❑ MISSING SIGNATURES ❑ NEEDS COUNCIL APPROVAL ❑ OTHER Charter amendment effective December 21, 2006 for City Manager contract authority increase.