HomeMy WebLinkAboutAgr 2011-04-04 (Franchise Tax Board)Chair John Chiang
i no,mber Betty T. Yee
member Ana Matosantos
State of California
Franchise Tax Board
APB , 9 1
City of Tiburon
1505 Tiburon Blvd.
Tiburon, CA 94920
Attn: Heidi Bigall, Director of Administrative Services
Subject: C1000264
Dear Contractor:
April 12, 2011
In an effort to streamline the way the State of California conducts business, we are in the process of standardizing current
contracting procedures and formats. The first step toward achieving this goal is to eliminate unnecessary duplication of
agreement language and documentation. You will note that in the new format of the Standard Agreement (STD 213), a
copy of the General Terms and Conditions (GTC) is not provided. The GTC's are available on the Internet at
www.dgs.ca.gov/contracts and may be downloaded and printed for your files. However, if you do not have Internet
capabilities, you may request a hard copy by contacting the person listed in the paragraph below.
This Agreement cannot be considered binding on either party until approved by appropriate authorized State agencies.
No services should be provided prior to approval, as the State is not obligated to make any payments on any Agreement
prior to final approval. Expeditious handling of this Agreement is appreciated. For inquiries regarding this Agreement,
please call Marlene Simpson @ (916) 845-5648.
Complete the following item(s) and return to the address stated above:
Standard Agreement (STD 213) with attached exhibits. Sign the first page of the standard agreement package
(STD 213) and the additional STD 213 enclosed and return the documents for further processing.
PRINT 2 Copies of the STD 213 Form page # 1.
A Payee Data Record (STD 204). No payment can be made unless this form is completed and returned.
Contractor Certification Clauses (CCC). The CCC package contains clauses and conditions that may apply to
your Agreement and to person(s) doing business with the State of California. The CCC will be kept on file in a
central location and must be renewed every three (3) years and updated as changes occur. It is available on the
Internet at www.dgs.ca.gov/contracts. Please sign and return the first page of the current CCC. Failure to do so
will prohibit the State of California from doing business with your company.
A confirmation of your insurance certification which states coverage will not be canceled without 30 days
written notice to the State of California, and which also includes the State of California, its officers, agents, and
employees as additional insureds.
The attached Agreement has been signed on behalf of the Franchise Tax Board. Continue processing and when
approved, return the original to this office.
X The attached approved Agreement is for your records. You are now authorized to provide the agreed upon
services.
Thank You.
Marlene Simpson
Contract Administrator
Attachment(s)
STATE OF CALIFORNIA
STANDARD AGREEMENT
STD 213 (Rev 06/03)
AGREEMENT NUMBER
C1000264
REGISTRATION NUMBER
1 his 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 Tiburon
2. The term of this
Agreement is: June 1, 2011 through December 31, 2013
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
GTC610
Exhibit D - Special Terms and Conditions
3 pages
Exhibit E - City Record Format 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.
These documents can be viewed at www:otsj ca.gov/Standard±Lanau~e/default.htm
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.
CONTRACTOR
CONTRACTOR'S NAME (if other than an individual, state whether a corporation, partnership, etc.)
City of Tiburon
BY (Authorized Signature)
it I I j$
PRINTED NAME A14 TITLE OF PERSON SIGNING
DATE SIGNED(Do not type)
3. 4)
AUUKt55
1505 Tiburon Blvd. Tiburon, CA 94920
STATE OF CALIFORNIA
AGENCY NAME
Franchise Tax Board
BY (Authorized Signature)
PRINTED NAME AND TITLE OF PERSON SIGNING
Lisa Garrison, Chief Financial Officer
ADDRESS
P.O. Box 2086, Rancho Cordova, CA 95741-2086
ANN DANFORTH
TOWN ATTORNEY
TOWN OF TIBURON
DAT SIIGNED(Do not type)
I// ' I/
California Department of General
Services Use Only
® Exempt per: SCM 4.04.5.b.
City of Tiburon
EXHIBIT A
SCOPE OF WORK
Agreement # C1000264
This Agreement is entered into by and between the Franchise Tax Board, herein referred to as
(FTB) and the City of Tiburon, 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 bear 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, set forth additional terms
to which the parties agree to be bound.
Legal Authority:
California Revenue and Taxation Code (R&TC) Section 19551.5 mandates cities to provide city
business tax data to FTB. RUC 19551.1 authorizes 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 2011, 2012, and 2013. If the Agreement is executed
after June 30, 2011, the City has 30 days after execution to provide FTB with the first year's
data.
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.
City of Tiburon
EXHIBIT A
SCOPE OF WORK (continued)
Agreement # C1000264
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.
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 Entities 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. The first year's data match is at the discretion of FTB and will be
based on when the data is received and processed.
5. FTB agrees to provide the City an annual extraction. in December 2011 for tax year 2010,
December 2012 for tax year 2011, and December 2013 for tax year 2012 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 Tiburon
EXHIBIT A
SCOPE OF WORK (continued)
Project Coordinators:
The project coordinators during the term of this Agreement will be:
Franchise Tax Board
Cathy McCollum
Data Resources and Services Unit
P.O. Box 1468, Mailstop A181
Sacramento, CA 95812-1468
Phone: (916) 845-4431
Fax: (916) 845-4849
Agreement # C1000264
City of Tiburon
Heidi Bigall
Director of Administrative Services
1505 Tiburon Blvd.
Tiburon, CA 94920
Phone: (415) 435-7379
Return executed agreement to:
Franchise Tax Board
Procurement & Asset Management Bureau
Attention: Marlene Simpson
P.O. Box 2086, Mailstop A-374
Rancho Cordova, CA 95741-2086
Phone: (916) 845-5648
Fax: (916) 845-3599
City of Tiburon
EXHIBIT D
SPECIAL TERMS AND CONDITIONS
Agreement # C1000264
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 access, use, 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 Tiburon
EXHIBIT D
SPECIAL TERMS AND CONDITIONS (continued)
Agreement # C1000264
6. INCIDENT REPORTING: All unauthorized or suspected unauthorized access; use and/or
disclosure (incidents) of FTB data shall be reported to FTB's contact, Cathy McCollum at
(916) 845-4431, 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, and 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 unreadable 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 Chief Counsel of the Franchise Tax Board within ten (10) days of
discovery of the problem. Within ten (10) days, the Chief Counsel or his/her designee shall
meet with the City and the FTB contact for purposes of resolving the dispute. The decision
of the Chief Counsel shall be final.
11. SAFEGUARD QUESTIONNAIRE 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 Tiburon
EXHIBIT D
SPECIAL TERMS AND CONDITIONS (continued)
Agreement # C1000264
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 unreadable 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 Tiburon
EXHIBIT E
CITY RECORD FORMAT SPECIFICATIONS
Agreement # C1000264
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
blanks.
FEDERAL EMPLOYER
10
18
9
AN
Must be present unless SSN is
ID NUMBER (FEIN)
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 = 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
blanks.
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 not known or
still in business.
City of Tiburon Agreement # C1000264
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 Tiburon
Agreement # C1000264
EXHIBIT F
FRANCHISE TAX BOARD RECORD LAYOUT SPECIFICATIONS
Field Name Length Start Description
Pos.
ENTITY TYPE
SSN or FEIN
LAST NAME
FIRST NAME
MIDDLE INITIAL
SPOUSE SSN
SPOUSE LAST NAME
SPOUSE FIRST NAME
SPOUSE MIDDLE INITIAL
PBA CODE
ADDRESS NUMBER
PRE-DIRECTIONAL DIRECTOR
STREET NAME
STREET SUFFIX
POST-DIRECTIONAL INDICATOR
STREET SUFFIX 2
APARTMENT/SUITE NUMBER
CITY
STATE
ZIP CODE
ZIP CODE SUFFIX
CBT MATCH
1
1
"P" - personal income tax record;
"B" - business entity tax record.
9
2
For "P" records, primary taxpayer's social
security number; For "B" records, federal
employer identification number.
40
11
For "P" records, the primary taxpayer's last
name; For "B" records, business name.
11
51
For "P" records ONLY.
1
62
For "P" records ONLY.
9
63
For "P" records filed with a joint return.
17
72
For "P" records filed with a joint return.
11
89
For "P" records filed with a joint return.
1
100
For "P" records filed with a joint return.
6
101
Principal business activity code.
10
107
2
117
Postal Service term (i.e., N, S, E, W, NE,
NW, SE, SW).
28
119
4
147
e.g., ST, WAY, HWY, BLVD, etc.
2
151
Postal Service term (i.e., N, S, E, W, NE,
NW, SE, SW).
4
153
10
157
e.g., APT, UNIT, FL, etc.
13
167-
2
180
Standard state abbreviation.
5
182
The five-digit ZIP Code assigned by the U.S.
Postal Service.
4
187
Provided if known.
1
191
"N" - No match per CBT data. "Y" - Yes:
CBT matched to state tax return filed.
City of Tiburon
EXHIBIT G
CONFIDENTIALITY STATEMENT
State of California
Agreement # C1000264
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.
Name
Signature Date