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BACKGROUND The City's Business License division has participated in the AB63 Local Government Sharing Program since April 2007. In January 2009, SB1146 superseded AB63, leading to a new program — the City Business Tax (CBT) Program — for participation in data sharing with the Franchise Tax Board (FTB). The City Business Tax Program is operated under the authority of Revenue and Taxation Code 19551.1 which enables the Franchise Tax Board to disclose limited confidential tax data to participating city tax officials. DISCUSSION In 2009, the City executed an agreement for participation in the City Business Tax Program; that agreement expired on December 31, 2011. The FTB is asking cities to formally adopt a resolution acknowledging the city's participation in the data exchange and authorizing an agreement between the two agencies. A copy of the draft resolution is included as Attachment 1. This process is similar to the resolution the City Council adopted to allow the sharing of information between the City and the State Board of Equalization. If adopted by the City Council, the resolution allows the City Manager to execute an agreement (Attachment 2) for City participation in the City Business Program. Based on the agreement, the exchange of confidential data with the FTB will allow the city to continue discovering uncollected revenues through the City's Business License program at no cost to the city. The agreement clearly states there is no financial obligation, and would be in effect from June 1, 2012 to December 31, 2014. As noted, the previous agreement expired on December 31, 2011. There is no impact to either agency due to the gap in the expiration of the previous agreement and the commencement of the new agreement as the process for the exchange of data doesn't begin until June of each year.T S bmitted by: Approve by: amela Ott Nelson Fialho Economic Development Director City Manager Attachments: 1. Resolution 2. Standard Agreement for participation in CBT Program Page 2 of 2