RESOLUTION NO. 2026-_________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMMERCE, CALIFORNIA, APPROVING AN AGREEMENT WITH THE CALIFORNIA FRANCHISE TAX BOARD FOR CONTINUED PARTICIPATION IN THE DATA EXCHANGE PROGRAM WHEREAS, in September 2008, the legislature passed SB 1146 which mandated cities that administer a business tax program to provide specific data to the Franchise tax Board (“FTB”) on an annual basis; and WHEREAS, participation in the Data Exchange Program assists the City in identifying businesses operating within the City that may not be properly registered or reporting business license information, thereby improving compliance with the City's Municipal Code; and WHEREAS, the existing agreement between the City and the FTB will expire on December 31, 2026, and the FTB requires execution of a new agreement for continued participation in the program; and WHEREAS, the proposed Reciprocal Agreement with the FTB will allow the City to continue participating in the Data Exchange Program from January 1, 2027, through December 31, 2029; and WHEREAS, the City Council finds that continued participation in the FTB Data Exchange Program serves a valid public purpose by supporting the efficient administration and enforcement of the City's business license program.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMMERCE DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The City Council of the City of Commerce hereby finds and declares that the foregoing recitals are true and correct, and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. The City Council hereby approves the Agreement between the City of Commerce and the California Franchise Tax Board for participation in the Data Exchange Program, substantially in the form attached hereto.
Section 3. The Mayor and/or the City Manager are authorized to execute the Agreement and any related documents necessary to implement and administer the agreement on behalf of the City.
Section 4. City staff authorized under the agreement shall comply with all confidentiality, security, retention, and destruction requirements established by the Franchise Tax Board and applicable law.
Section 5. The Mayor is authorized to execute this Resolution for and on behalf of the City of Commerce.
Section 6. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED, AND ADOPTED this 25th day of August, 2026. __________________________
Kevin Lainez, Mayor
ATTEST:
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Eduardo Sarmiento, City Clerk