ESBD_488348_1770743692175_RFP 304-26-1692SH FIDM Svcs (vFinal).pdf

RFP 304-26-1692SH FIDM Services Page 1 of 58

Request for Proposals

Financial Institution Data Match (FIDM) Services RFP No. 304-26-1692SH

Issuance Date: February 10, 2026

Anticipated Schedule of Events

February 10, 2026 Issuance of RFP

February 24, 2026 Deadline for Submission of Questions (2:00PM CT)

March 2, 2026 Release of Official Responses to Questions (or as soon thereafter as practical)

March 10, 2026 Deadline for Submission of Proposals (2:00PM CT) Late Proposals will not be considered

July 1, 2026 Services Commencement Date (or as soon thereafter as practical)

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TABLE OF CONTENTS

PART I GENERAL INFORMATION

1.1 Introduction

1.2 Background

1.3 Definitions and Acronyms

PART II SCOPE OF WORK

2.1 Services Description

2.2 Business Requirements

2.3 Term of Contract; Sample Contract

PART III GENERAL INFORMATION

3.1 Legal Authority

3.2 Comptroller Rights

3.3 Respondent Obligations

3.4 Successful Respondent Obligations

3.5 Schedule of Events

3.6 Issuing Office

3.7 Submission of Questions

3.8 Deadline for Submission of Proposals; Delivery Instructions; Number of Copies Required

3.9 Confidential Information; Nondisclosure; Open Records

3.10 Media Releases

3.11 Non-exclusivity

3.12 Incorporation of Exhibits

PART IV PROPOSAL FORMAT

4.1 Introduction

4.2 General Organization of Proposal Contents

PART V PROPOSAL EVALUATION AND SELECTION

5.1 Evaluation Process

5.2 Selection Criteria

5.3 Respondent’s Past Performance

5.4 Protest Procedures

EXHIBIT A SAMPLE CONTRACT

I. Recitals II. Authority III. Services IV. Personnel V. Funding; Legislative Action VI. Evaluation VII. Payments VIII. Term and Termination

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IX. Confidentiality and Open Records X. Insurance XI. Indemnification XII. Dispute Resolution XIII. Property Rights XIV. Representations, Warranties, and General Provisions XV. Merger; Severability XVI. Signatories

ATTACHMENT A TO THE SAMPLE CONTRACT

ATTACHMENT B TO THE SAMPLE CONTRACT

ATTACHMENT C TO THE SAMPLE CONTRACT

ATTACHMENT D TO THE SAMPLE CONTRACT

ATTACHMENT E TO THE SAMPLE CONTRACT

ATTACHMENT F TO THE SAMPLE CONTRACT

EXHIBIT B EXECUTION OF PROPOSAL

EXHIBIT C CRIMINAL CONVICTION CERTIFICATION

EXHIBIT D NONDISCLOSURE AGREEMENT

EXHIBIT E CONFLICT OF INTEREST/DISCLOSURE STATEMENT

EXHIBIT F CERTIFICATION REGARDING PUBLIC NATURE OF THE PROPOSAL

EXHIBIT G CONTRACTOR CYBERSECURITY TRAINING ATTESTATION

APPENDIX A MSFIDM HANDBOOK

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PART I

GENERAL INFORMATION

1.1 Introduction

The Texas Comptroller of Public Accounts (“Comptroller”) issues this Request for Proposals No. 304-26-1692SH (“RFP”) to solicit proposals from qualified, independent persons or entities to provide Financial Institution Data Match (“FIDM”) services as described in this RFP (“Services”). Comptroller’s objective is to obtain the Services that represent the best value for Comptroller and the State of Texas, according to the terms and conditions of this RFP.

All requisite services are referred to as “Services” in this RFP and are more fully described in Part II (Scope of Work) of this RFP. Each individual or firm submitting a response to this RFP will be referred to as a “Respondent.” The selected Respondent(s), if any, will be referred to as the “Successful Respondent.”

Comptroller anticipates making contract award to one (1) Successful Respondent for the Services. The date of award, number of contracts awarded, and all procedures relating to a Contract are the sole discretion of the Comptroller.

Comptroller reserves the right not to award a contract for the performance of all or part of the Services. The contract resulting from this RFP, if any, will be referred to as the “Contract.” Successful Respondent, as an independent contractor, shall provide Services under the Contract with Successful Respondent’s own personnel.

All costs associated with the Services must be included in the Respondent’s Proposal. Proposals that do not meet all of the requirements or contain all of the required documentation specified in this RFP will be rejected as non-responsive.

1.2 Background

The Comptroller’s Enforcement Division collects delinquent taxes and provides taxpayer services to promote compliance with the tax laws administered by the Comptroller. Section 111.025 of the Texas Tax Code, related to Delinquent Taxpayer financial records, was enacted through the 87th Texas Legislative Session and became effective September 1, 2021, establishing a program of exchange and matching of Financial Institution and Comptroller data as a tool to assist the Comptroller in the collection of delinquent taxes and fees administered by the Comptroller.

Section 111.025(b) of the Texas Tax Code requires Financial Institutions to exchange data with the Comptroller or the Comptroller’s agent each calendar quarter for the purposes of matching the names of Financial Institution Account Owners with the names of Delinquent Taxpayers. A Financial Institution may meet data exchange requirements of Section 111.025 of the Texas Tax Code by using reporting Method 1 or reporting Method 2 as further described in this RFP. No reimbursement shall be provided by Comptroller to FI for participation in and compliance with the requirements of Section 111.025 of the Texas Tax Code and the Comptroller’s FIDM program.

Section 111.025(h) of the Texas Tax Code provides that the Comptroller may contract with a third party as the Comptroller’s agent to facilitate exchange and matching of Financial Institution and Comptroller data, and Comptroller seeks to contract with a qualified Successful Respondent as Comptroller’s agent for such purposes.

The Delinquent Taxpayer volume per quarter for each of the four (4) calendar quarters immediately preceding issuance of this RFP is:

Calendar Quarter Total Volume of Delinquent Taxpayers

October 1, 2024 – December 31, 2024 588,660 January 1, 2025 – March 31, 2025 563,021

April 1, 2025 – June 30, 2025 552,110 July 1, 2025 – September 30, 2025 482,542

Comptroller cannot guarantee any minimum amount of compensation under the Contract, if any, resulting from this RFP.

1.3 Definitions and Acronyms

• Account. A demand deposit account, checking or negotiable order of withdrawal account, savings account, time deposit account, or money market mutual fund account.

• Account Owner Record. A record a Financial Institution uses to report Account Owner information, including an account holder’s name, social security number (“SSN”) or federal employer identification number (“FEIN”), and Account number, Account balance and Account type.

• Account Owner. The person or entity listed or identified as the holder of an account at a Financial Institution.

• Business Day. Monday through Friday, 8:00AM (CT) through 5:00PM (CT), except days on which the Comptroller’s

Office is closed in accordance with the State of Texas Holiday Schedule posted on the agency website.

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• Calendar Quarter. A period of three consecutive calendar months ending on March 31, June 30, September 30, or December 31.

• Comptroller’s Designated Representative. Comptroller’s staff, such as a project manager or contract monitor, designated to serve as the Comptroller’s point of contact for certain project related communications and activities during performance of work under the Contract.

• CFI Agreement. The agreement between Comptroller and a Financial Institution that includes, but is not limited to, the Financial Institution’s election of a FIDM reporting method.

• Data Match File. An electronic file that contains a listing of Accounts and Account Owner Records that matched Delinquent Taxpayer data in an Inquiry File.

• Days. The word “days” shall mean calendar days unless otherwise specified.

• Delinquent Taxpayer. A person who, at the time of a data match request, is delinquent in a tax or fee administered by the Comptroller.

• Delinquent Taxpayer File. An electronic file sent by Comptroller to Successful Respondent and that contains

Delinquent Taxpayer records including, at a minimum, the Delinquent Taxpayer's first and last names or entity name, associated SSN or FEIN, and Comptroller’s number assigned to the Delinquent Taxpayer (“Taxpayer Number”).

• Financial Institution (“FI”). Any depository institution, as defined by Section 3(c) of the Federal Deposit Insurance Act (12 U.S.C. Section 1813(c)), federal or state credit union, as those terms are defined by Section 101of the Federal Credit Union Act (12 U.S.C. Section 1752), or the agent of any depository institution, federal credit union, or state credit union, authorized to do business in the State of Texas.

• Financial Institution Data Match (“FIDM”). The exchange of data between a Financial Institution and Successful Respondent conducted each calendar quarter for the purposes of identifying Financial Institution Accounts and Account Owner Records matching Delinquent Taxpayer data included in an Inquiry File.

• FIDM Packet. An information packet that includes a letter of introduction to the FIDM program, a FIDM brochure that includes the laws establishing and governing Comptroller’s FIDM program, an enrollment form and a CFI Agreement for the FI to execute.

• Fiscal Year (“FY”). The period from September 1 of a year through August 31 of the following year. FY26 represents Comptroller’s Fiscal Year 2026 (i.e., September 1, 2025 through August 31, 2026).

• Inquiry File. A Delinquent Taxpayer File that has been processed by Successful Respondent and scrubbed of errors and/or duplication of data. The Inquiry File is sent from the Successful Respondent to the FI.

• Method 1 Reporting. An all accounts reporting method in which a Financial Institution submits to Successful Respondent an electronic file listing all of the Financial Institution’s open Accounts and Account Owner Records. For purposes of this RFP, FI electing Method 1 Reporting shall be referred to as M1RFI, an electronic file listing all of the M1RFI’s open Accounts and Account Owner Records shall be referred to as the M1 File, and an electronic file listing all changes (i.e., new Accounts, closed Accounts, changed Accounts and changed Account Owner Records) to the last M1 File submitted by the M1RFI shall be referred to as the Update File.

• Method 2 Reporting. A matched accounts reporting method in which a Financial Institution submits to Successful Respondent an electronic file listing all Accounts and Account Owner Records that match information within an Inquiry File provided to the Financial Institution by the Successful Respondent. For purposes of this RFP, FI electing Method 2 Reporting shall be referred to as M2RFI and the electronic file listing the M2RFI’s matched Accounts and Account Owner Records shall be referred to as the M2 Data Match File.

• Multistate Financial Institution Data Match Specifications Handbook (“MSFIDM Handbook”): The guide issued by the U.S. Department of Health and Human Services Office of Child Support Enforcement and that includes guidance and technical specifications for all reports filed under the federally mandated child support enforcement FIDM program. For purposes of this RFP and the Contract, any reference to the MSFIDM Handbook shall include version 3.0, published December 30, 2020, as may be revised during the term of the Contract.

• Proposal. A submitted response to this RFP.

PART II

SCOPE OF WORK

2.1 Services Description

2.1.1 General

Successful Respondent shall provide all services, deliverables and staff and otherwise do all things necessary for or incidental to implementing a FIDM program to conduct data exchange and matching between the Comptroller and Financial Institutions

RFP 304-26-1692SH FIDM Services Page 6 of 58 in accordance with applicable laws, rules, regulations and industry best practices (“Services”). Successful Respondent shall be solely responsible for providing all Services required under the Contract including, but not limited to, the following:

• Development of a project plan for implementation of Comptroller’s FIDM program;

• Outreach and Support to FI;

• Data Exchange, Data Quality Control, and Data Matching;

• Compliance Assurance; and

• Project Management and Reporting.

Comptroller’s information provided to Successful Respondent shall not include any Federal Tax Information (“FTI”).

Comptroller shall furnish to Successful Respondent information that Comptroller believes to be reliable; however, Comptroller cannot guarantee the accuracy or completeness of any information provided to Successful Respondent under the RFP or the Contract. Comptroller shall not be liable to Successful Respondent or any other entity or person for any losses, damages, claims or any other amounts resulting from Successful Respondent’s use of, or reliance on, such information or information independently collected by Successful Respondent. Comptroller does not waive any sovereign immunity or any other privileges, remedies, immunities, rights or defenses available to Comptroller by issuing this RFP, entering into the Contract, or by its conduct prior to or subsequent to entering into the Contract.

Respondent’s Proposal must include a detailed explanation of the proposed implementation project plan and include, but not be limited to:

1. A high-level overview of the implementation project;

2. Identification of phases, if applicable, and related deliverables necessary to implement Comptroller’s FIDM program (i.e., identify implementation project phases and related deliverables from concept through implementation and go-live in the production environment);

3. Identification of timeline and milestones, including those related to development and testing of file formats and file exchange activities prior to a “go live” date, applicable to the implementation project;

4. Identification of key roles and responsibilities for Respondent’s personnel and Comptroller’s personnel during execution of the project plan; and

5. Identification of Respondent’s one-time fee applicable to the implementation project plan development and execution.

This fee shall include expenses necessary for any required information technology systems development, testing, and program support and shall be included on the designated line item within Price Schedule 1 of Attachment C (Mandatory Price Sheet) to Exhibit A (Sample Contract) to this RFP. This fee shall not include fees for Outreach and Support to Financial Institutions.

2.1.2 Outreach and Support to Financial Institutions.

Successful Respondent shall develop and implement an outreach strategy that includes identifying and contacting all FI authorized to do business in the state, establishing and preserving a sound and professional relationship with FI and FI trade associations, preparing and distributing FIDM Packets that include CFI Agreements and other Comptroller approved materials, and assisting FI as needed in enrollment and understanding of compliance requirements. Outreach and support services shall include, but not be limited to:

1. Development and implementation of an initial enrollment strategy:

a. Establish a plan and related schedule to enroll FI into Comptroller’s FIDM program.

b. Identify all FI authorized to do business in the state.

c. Contact identified FI and provide FIDM Packets with CFI Agreements and enrollment forms.

d. Follow up with FI until an executed CFI Agreement and enrollment form is received.

e. Provide reminder correspondence to FI for missed due dates for enrollment.

f. Provide report due reminder notice to FI in accordance with a timeline mutually agreeable to Comptroller and Successful Respondent (e.g., five (5) business days prior to a FI’s first, and each subsequent, report due date).

2. Delivery of conference calls, virtual meetings and/or presentations to FI and FI trade associations to increase awareness of Comptroller’s FIDM program and Section 111.025 Texas Tax Code requirements.

a. Provide information about Comptroller’s FIDM program and compliance requirements and protocols.

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b. Enroll FI into Comptroller's FIDM program.

c. Receive questions from and provide answers to FI and FI trade associations.

i. Provide and maintain both an email address and a toll-free phone number answered by live operators for FI to submit questions and receive support.

ii. Compile and update a list of frequently asked questions (“FAQ”).

iii. Provide the FAQ list to FI upon request through either email or secure download file via Successful Respondent’s website.

3. Development of and updating to materials (e.g., CFI Agreement, FAQ sheet, introduction letters, standardized enrollment/set-up and update forms, etc.) to be distributed to FI as a FIDM Packet for new enrollees in Comptroller’s FIDM program and as supplemental materials as needed after enrollment.

a. Materials shall be approved by Comptroller prior to distribution.

b. Updates to materials shall be approved by Comptroller prior to distribution.

4. Establishing and maintaining a database of all FI to be enrolled and that are enrolled in Comptroller’s FIDM program.

a. Monitor regulatory agency listings to identify newly established FI, including those resulting from merger, and provide outreach materials to FI and enroll FI in Comptroller’s FIDM program.

b. Compile a list of all FI authorized to do business in the state.

i. Using information from regulatory agency listings, Comptroller, and other resources update the list as FI are added or deleted to those authorized to do business in the state.

ii. Provide Comptroller with access to a downloadable version of the original list and any subsequent updates to the list.

c. Include enrollment/set up and, as applicable, update information for each FI.

i. Each FI record shall include, at a minimum, all data fields from the enrollment/set up form;

ii. Each FI record shall include a data field indicating last date of update to enrollment information.

d. For each FI record, include data fields for indicating, at a minimum, the following:

i. Enrollment compliance and non-compliance;

ii. Executed CFI Agreements, reporting method elections, and preferred reporting schedules;

iii. Compliance and non-compliance with data exchange, data matching, reporting, and data destruction schedules; and

e. Provide robust tracking and reporting that allows Comptroller to review statistical data for all FI and/or individual FI, such as, but not limited to:

i. Number of days between issuing FIDM Packet and return of the fully executed CFI Agreement;

ii. Number of days between due dates and receipt of FI data for the applicable reporting method;

iii. Frequency of FI reporting delinquency;

iv. Number of habitual non-compliant FI, if any;

v. FI by processing cycle date;

vi. FI by location such as in-state, out-of-state, or multi-state;

vii. Flexible date range selection for reports (month, quarter, year, etc.); and

viii. Comptroller’s secure access to and ability to download reports from Successful Respondent’s portal.

5. Providing support services that include, but are not limited to:

a. Customer service available via Successful Respondent’s toll-free telephone number with live operators available to answer and assist Comptroller and FI. This toll-free number may be same as the toll free number required for subparagraph 2.c., above;

b. Technical support (e.g., troubleshooting upload/download of files, use of Successful Respondent’s website, compliance with MSFIDM Handbook technical specifications applicable to the reporting methods, etc.) to FI

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c. Any additional support necessary to resolve technical difficulties that impact the ability of FI and Comptroller to participate in the FIDM program.

d. Successful Respondent shall track customer service and technical support services inquiries by numbers and types of inquiries for purposes of producing the FAQ list required under subparagraph 2.c., above.

6. Respondent’s Proposal must include:

a. A detailed description of Respondent’s proposed outreach strategy, including a proposed schedule with milestones and related tasks for enrolling FI doing business in the state into Comptroller’s FIDM program;

b. Samples of proposed outreach materials, including materials proposed for the FIDM Packet;

c. A detailed description of Respondent’s experience at performing outreach activities for FI and FI trade associations, including Respondent’s approach to establishing and retaining sound professional relationships with FI and FI trade associations;

d. A detailed description of Respondent’s approach to identifying FI currently authorized to do business in the state and Respondent’s strategy to monitor for changes (mergers, closures, additions) to FI authorized to do business in the state during the Contract term;

e. A detailed description of support services offered by Respondent and included in the Proposal pricing;

f. Respondent’s demonstrated knowledge of the requirements of FIDM programs for tax enforcement purposes;

and

g. Identification of Respondent’s fees applicable to delivery of outreach and support to FI. Respondent shall include, on the designated line item within Price Schedule 1 of Attachment C (Mandatory Price Sheet) to Exhibit A (Sample Contract) to this RFP, all fees related to development of outreach and FIDM packet materials and ongoing delivery of outreach and support services to FI during the initial term of the Contract and shall include all fees related to updating and maintaining outreach and FIDM packet materials and ongoing delivery of outreach and support services to FI during the optional renewal terms of the Contract.

2.1.3 Data Exchange, Data Quality Control, and Data Matching

1. General.

a. Respondent’s Proposal must include:

i. A template or sample of Respondent’s file format proposed for each file identified within this Section 2.1.3 (Data Exchange, Data Quality Control, and Data Matching).

a) Each file template or sample shall include proposed requirements for each file’s field names, field location, type and number of characters permitted in the field, and any comments (e.g., purpose, description, special requirements, etc.) applicable to the field.

b) Respondent’s proposed file format shall conform to applicable technical specifications found within the latest version of the MSFIDM Handbook (i.e., applicable portions of Sections A through D in Appendix A (MSFIDM Handbook) to this RFP);

ii. A detailed description of Respondent’s procedures used to perform data quality control, a detailed description of the data that is monitored, screened, compared, etc., and the methods applied to reduce and correct data quality deficiencies;

iii. Compliance with CPA Data Safeguard Standards. A detailed description of Respondent’s approach and methodology for meeting the requirements set forth in Section 14.9 (CPA Data Safeguard Standards) of the Contract. Respondent must address each item; if an item is required after the effective date of the Contract, Respondent must verify that it will comply within the timeframe indicated for that item.

iv. Data Security Breach History. Respondent shall disclose any data security breach incidents and ransomware security incidents, including pertinent public information describing the breach such as the date of the incident, date of incident discovery, cause of the incident, and remediation efforts undertaken by Respondent.

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v. System Development Life Cycle. Respondent shall provide a written description of its system development lifecycle that addresses security engineering methods, software development methods, testing/evaluation/validation techniques, and quality control processes.

vi. Cybersecurity. Respondent shall provide a high-level description of the preventive, deterrent, detective, corrective, compensating, and directive cybersecurity controls that it will implement and maintain to protect Comptroller’s Information System.

vii. Artificial Intelligence. Respondent shall include information to show its ability to comply with Section 14.9, Part s) (Use of Artificial Intelligence) of the Contract. Respondent’s proposed schedule applicable to the phases and tasks summarized within Section 2.1.3.1.b and further detailed in Sections 2.1.3.2. through 2.1.3.4. of this RFP.

b. Section 111.025(b) of the Texas Tax Code requires FI to exchange data each calendar quarter for the purposes of matching the names of FI Account Owners with the names of Delinquent Taxpayers. FI must choose either Method 1 Reporting (all accounts method) or Method 2 Reporting (matched accounts method). A summary of the calendar quarter data exchange, data quality control, and data matching process flow is:

i. Phase 1. Comptroller sends an electronic Delinquent Taxpayer File to Successful Respondent on a designated weekly due date during each quarter. The weekly due date shall be mutually agreed upon by Successful Respondent and Comptroller.

ii. Phase 2. Successful Respondent performs quality control processing of Comptroller’s Delinquent Taxpayer File to render an Inquiry File conforming to Inquiry File technical specifications found within the latest version of the MSFIDM Handbook and that is compatible with the data processing systems of FI. The Inquiry File is:

a) Used by Successful Respondent when performing data matching of M1 Files and Update Files against the Inquiry File, and

b) Sent by Successful Respondent to M2RFI for the M2RFI’s use in performing data matching of its Accounts and Account Owner Records against the Inquiry File.

iii. Phase 3. Includes data exchange, data quality control and data matching tasks based on requirements of the method of reporting.

2. Data Exchange.

a. When providing any electronic data to or receiving any electronic data from Comptroller, Successful Respondent shall act in accordance with all applicable federal and state laws, rules, regulations, industry best practices, and Comptroller policy regarding the safekeeping and disclosure of Confidential Information and shall comply with Comptroller requirements including, but not limited to, those found in Section 14.8 (Information Security Requirements) and Section 14.9 (CPA Data Safeguard Standards) of the Contract.

b. Successful Respondent shall provide a secure portal for electronic exchange of data, files, and Confidential Information between Successful Respondent and FI. The data exchanged and method of exchange shall conform to the Method 1 Reporting or Method 2 Reporting elected by the FI. The secure portal shall conform to and be compatible with the FI’s data security requirements and any applicable federal and state laws, rules, regulations and industry best practices.

c. Successful Respondent shall ensure all files sent by Successful Respondent to Comptroller and FI are encrypted at rest and in transit.

d. Successful Respondent shall ensure data match requests submitted to FI are compatible with the data processing system of the FI:

i. Ensure that data match requests submitted to FI are consistent with the method of reporting elected by the FI in the applicable CFI Agreement; and

ii. Ensure that format/layout of exchanged data and all forms, files, records and reports conform to applicable technical specifications found in the MSFIDM Handbook.

3. Data Quality Control. Successful Respondent shall:

a. Develop and maintain an automated data screening process to validate data integrity and screen for errors such as incomplete files, invalid formatting, missing data fields, unpopulated data fields, duplications, etc., in files submitted to Successful Respondent from Comptroller and from FI;

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b. Process data received from Comptroller to identify, reduce and correct errors, duplications, inconsistencies, omissions, etc., and ensure reliability and integrity of data provided to Successful Respondent in Comptroller’s Delinquent Taxpayer Files. This process shall result in an Inquiry File that conforms to applicable technical specifications found in the MSFIDM Handbook and is ready to be used in Data Matching;

c. Process M1 Files and Update Files to identify, reduce and correct errors, duplications, inconsistencies, omissions, etc., and ensure reliability and integrity of M1RFI data prior to using the data in Successful Respondent’s matching of M1 Files and Update Files against the Inquiry File;

d. Process Method 1 Reporting Data Match File to identify, reduce and correct errors, duplications, inconsistencies, omissions, etc., and ensure integrity of data provided to Comptroller within the Data Match File resulting from Successful Respondent’s Method 1 Reporting data match tasks;

e. Process M2 Data Match Files to identify, reduce and correct errors, duplications, inconsistencies, omissions, etc., and ensure reliability and integrity of data provided to Comptroller within the Data Match File resulting from Successful Respondent’s Method 2 Reporting data match tasks; and

f. Track quality of data submitted to Successful Respondent by Comptroller and FI. Tracking of data quality shall be for purposes of identifying critical and/or repetitive errors in data submitted to Successful Respondent by Comptroller and FI. Successful Respondent shall use results of data quality tracking to work with FI and Comptroller to correct any data integrity and reliability issues and to provide feedback as part of a continuous improvement of data integrity and reliability program.

4. Data Matching. Successful Respondent shall facilitate FI data matching in accordance with the reporting method indicated in the FI’s CFI Agreement and the following requirements:

a. Method 1 Reporting:

i. M1RFI exchange data with Successful Respondent:

a) In accordance with the M1RFI’s reporting schedule in the applicable CFI Agreement, newly enrolled M1RFI shall send Successful Respondent an M1 File.

b) In accordance with the M1RFI’s reporting schedule in the applicable CFI Agreement, a M1RFI that used Method 1 Reporting in the calendar quarter immediately preceding the instant calendar quarter shall send Successful Respondent an Update File or shall send Successful Respondent an M1 File.

ii. Successful Respondent performs quality control check of M1 File or Update File. As necessary, Successful Respondent shall work with M1RFI to cure any quality deficiencies to ensure attainment of acceptable quality of the M1 File or Update File.

iii. Within two (2) business days of receipt of the M1 File or Update File, Successful Respondent shall match the M1 File or Update File against the Inquiry File to render a Data Match File. Exception to the two-day requirement may be made when 5% or more of the records in the M1 File or Update File contain errors.

iv. Successful Respondent performs quality control check of Method 1 Reporting Data Match File. As necessary, Successful Respondent shall cure any quality deficiencies to ensure attainment of acceptable quality of the Data Match File.

v. Successful Respondent shall send to Comptroller a weekly Data Match File “batch” that includes all Data Match Files resulting from Method 1 Reporting during the prior week. The day designated as the weekly due date for the batched Data Match File exchange shall be mutually agreed upon by Successful Respondent and Comptroller.

vi. All forms, files, records and reports for Method 1 Reporting shall conform to MSFIDM Handbook technical specifications applicable to Method 1 Reporting.

b. Method 2 Reporting:

i. Successful Respondent sends the Inquiry File to each enrolled M2RFI.

ii. Within forty-five (45) days of receipt of an Inquiry File, the M2RFI matches all its Accounts and Account Owner Records to the Inquiry File and sends results of data matching to Successful Respondent:

a) If there are matches, the M2RFI sends a M2 Data Match File to Successful Respondent.

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b) If there are no matches, the M2RFI electronically sends to Successful Respondent a report of no matches found (“No Match Report”).

iii. Successful Respondent performs a quality control check of the M2 Data Match File or No Match Report, as applicable. As necessary, Successful Respondent shall work with the M2RFI to cure any quality deficiencies to ensure attainment of acceptable quality of the M2 Data Match File or No Match Report.

iv. Successful Respondent shall send to Comptroller a weekly M2 Data Match File “batch” and No Match Report “batch” that includes all M2 Data Match Files and all No Match Reports resulting from Method 2 Reporting during the prior week. The day designated as the due date for the batched M2 Data Match Files and No Match Reports shall be mutually agreed upon by Successful Respondent and Comptroller.

v. All forms, files, records and reports for Method 2 Reporting shall conform to MSFIDM Handbook technical specifications applicable to Method 2 Reporting.

2.1.4 Compliance Assurance.

1. General. Successful Respondent shall develop and administer a compliance assurance program that shall include monitoring of FI for compliance with the Comptroller’s FIDM program, maintaining minimum contact with non-compliant FI, and an effective multi-level compliance enforcement strategy.

2. Successful Respondent shall:

a. Monitor FI compliance with deadline for returning executed CFI Agreement and enrollment forms;

b. Monitor FI compliance with FIDM reporting method and applicable reporting schedule;

c. Contact delinquent FI in a timely manner to obtain compliance and, as necessary, work with FI representatives to resolve problems; and

d. Maintain an electronic communication log that includes documentation details of all contacts between Successful Respondent and FI. Upon Comptroller’s request, Successful Respondent shall provide Comptroller an electronic file of or web access to the communication log.

3. Successful Respondent shall maintain minimum contact with non-compliant FI.

a. Non-compliant FI include:

i. FI who fail to timely submit enrollment forms and an executed CFI Agreement;

ii. FI who fail to perform timely data exchange, data matching, and reporting in accordance with the method of reporting elected by the FI and the reporting schedule agreed to by the FI.

b. Minimum contact shall include, but not be limited to:

i. Issuance of timely written notice that identifies the non-compliance issues and requirements to remedy the issues, and includes a deadline by which the FI must cure the non-compliance; and

ii. Telephone contact to remind FI of the requirement to cure the non-compliance issues on or before the deadline stated within the written notice.

iii. In event an FI fails to satisfactorily cure non-compliance issues on or before the deadline specified in Successful Respondent’s written notice, Successful Respondent shall provide written notification to Comptroller’s Designated Representative.

4. Successful Respondent shall develop and administer an effective multi-level compliance enforcement strategy that shall include, at a minimum, identification and description of actions and their corresponding schedules to remedy non-compliance for each of the following types of non-compliance:

a. Type 1. FIs that have received enrollment outreach services and a FIDM Packet, but have not returned an executed CFI Agreement and/or have not provided a completed enrollment form.

b. Type 2. FI that have executed a CFI Agreement but never exchanged data in accordance with the FI’s elected reporting method.

c. Type 3. FI that have performed data exchange and data match in accordance with the FI’s elected method of reporting, but have failed to maintain the reporting schedule to which the FI agreed.

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d. Type 4. FI that have performed data exchange and data match in accordance with the FI’s elected method of reporting and the reporting schedule to which the FI agreed, but who repeatedly submit data and files that contain errors.

5. Respondent’s Proposal must include a detailed description of its proposed compliance assurance program that meets or exceeds the minimum requirements of this RFP, a detailed description of the multi-level compliance enforcement strategy including identification of actions and their corresponding schedules to remedy non-compliance, and samples of notices Respondent would use in its compliance assurance program.

2.1.5 Project Management and Reporting.

1. Project Management.

a. Successful Respondent shall be solely responsible for development and implementation of its outreach strategy and FIDM Packets that include CFI Agreements and other Comptroller approved materials, including the initial enrollment strategy, in accordance with the requirements of this RFP.

b. Successful Respondent shall work with the Comptroller’s Designated Representative for the implementation of the Comptroller’s FIDM Program by providing guidance and overseeing the following:

i. Provide fully operational Services by first available date (“Go Live Date”) pending the completion of the development phase.

ii. Collaborate with the Comptroller’s Designated Representative on finalizing an acceptable list of data fields and file format of the Delinquent Taxpayer File, Inquiry File, and Data Match File resulting from Method 1 Reporting and the M2 Data Match File before testing commences.

iii. Collaborate with the Comptroller’s Designated Representative for the testing of data and file exchange before the Go Live Date.

iv. Collaborate with the Comptroller’s Designated Representative with an acceptable schedule for the data exchange with a set due date for receipt for the delinquent taxpayer file and an establish day of the week for the return of the match file.

c. Successful Respondent shall monitor FI for compliance with enrollment and data matching deadlines.

d. Successful Respondent shall provide and oversee the following:

i. Meetings: Successful Respondent shall be solely responsible for all tasks and related expenses necessary to coordinate and deliver:

1. Conference calls, virtual meetings, and webinars between Comptroller’s Designated Representative(s) and Successful Respondent’s staff on a monthly basis or at such other frequency mutually agreed to by both parties; and

2. Conference calls, virtual meetings, webinars and presentations related to outreach services delivered to FI and FI trade associations.

ii. Sharing of information: Successful Respondent shall provide secure access to encrypted files, reports and information required to be exchanged or provided under the Contract and shall comply with Comptroller requirements including, but not limited to, those found in Section 14.8 (Information Security Requirements) and Section 14.9 (CPA Data Safeguard Standards) of the Contract.

1. Successful Respondent shall send encrypted files to, and receive encrypted files from, Comptroller through Comptroller’s secure file transfer protocol (“SFTP”) environment.

2. Successful Respondent shall send encrypted files to, and receive encrypted files from, FI through a SFTP environment mutually agreeable to FI and Successful Respondent.

3. Successful Respondent shall ensure secured storage of shared encrypted files, interactive communications logs, FIDM package documents, FAQ, forms, publications, and guidelines used in the Comptroller’s FIDM program.

4. Successful Respondent shall be solely responsible for updates to its website as needed to provide corrections and updates to content, if any, that is related to Comptroller’s FIDM program.

5. Respondent’s Proposal shall include a detailed description, including security features, of Respondent’s proposed information sharing methods (e.g., file transfer, dedicated

RFP 304-26-1692SH FIDM Services Page 13 of 58 webpage, etc.) and products (e.g., web viewing tool) for use in the Comptroller’s FIDM program.

iii. Maintenance of FIDM program materials and profiles of FI enrolled in Comptroller’s FIDM program. Maintenance shall include:

1. Maintaining and managing updates and amendments to FIDM program materials, including Comptroller FIDM program information on Successful Respondent’s website, outreach materials, election forms, enrollment forms, and CFI Agreements;

2. Distributing FIDM Packets to unenrolled FI authorized to do business in the state and to enrolled FI on request;

3. Tracking status of outstanding CFI Agreements;

4. Maintaining database of current (up-to-date) FI enrollment, setup and reporting information;

5. Tracking FI mergers and closures; and

6. Tracking FI that are newly authorized to do business in the state and reporting additions or deletions to Comptroller.

iv. Transition services: In event of Contract termination or expiration, Successful Respondent shall comply with direction provided by Comptroller to assist in the orderly transition of Services to the Comptroller or its designated third party. Upon expiration or termination of the Contract, Successful Respondent shall provide all reasonably necessary efforts to facilitate an orderly transition within a reasonable period of time that in no event will exceed 90 days. Transition services may include but are not limited to:

1. Successful Respondent shall work with Comptroller or Comptroller’s specified third party to develop a transition plan setting forth specific tasks and schedule to be accomplished by the parties to effect the orderly transition of Services with minimal or no disruption of data exchange and data match schedules applicable to, and compliance by, FI enrolled in Comptroller’s FIDM program;

2. Successful Respondent shall assist Comptroller in acquiring any software provided by Successful Respondent that is necessary to perform Services or use deliverables under the Contract;

3. Successful Respondent shall provide reasonable, detailed specifications for all Services and deliverables needed by Comptroller to properly provide the Services and deliverables required under the Contract. Such information shall include but not be limited to providing any remaining owed reports and documentation related to Comptroller’s FIDM program that are in Successful Respondent’s possession at time of Contract termination or expiration.

2. Reporting. Successful Respondent shall produce, at a minimum, the reports listed below and any other reports required by this RFP and the Contract and make the reports available to Comptroller through Successful Respondent’s website (e.g., using a secure dashboard or web view product). In addition to Comptroller’s ability to review the reports online, Comptroller also must have the ability to download the reports on demand and have viewing and downloading capabilities for at least 3 months from date of report generation. Respondent’s Proposal must include a sample of each report listed below as well as any other reports required by this RFP and the Contract.

a. FIDM Summary (Monthly). The report shall provide a summary of FIDM activity including the total number of Delinquent Taxpayer Files in the Inquiry File that are matched that month (includes both full and partial), and total sum, in dollars, of all Accounts balances related to matches established through the data match process for both Method 1 Reporting and Method 2 Reporting that month.

b. Full Match Analysis (Quarterly). The report shall list, alphabetically by last name/first name, all matches established through the data match process for both Method 1 Reporting and Method 2 Reporting. The report shall include the Delinquent Taxpayer’s name and Taxpayer Number, the applicable matched Account number(s) and Account Owner Record(s), and applicable FI name and FI FEIN.

c. Partial Match Analysis (Quarterly). The report shall list, alphabetically by last name/first name, all partial matches established through the data match process for both Method 1 Reporting and Method 2 Reporting.

The report shall include the Delinquent Taxpayer’s name and Taxpayer Number, the applicable matched Account number(s) and Account Owner Record(s), and applicable FI name and FI FEIN. The report shall

RFP 304-26-1692SH FIDM Services Page 14 of 58 indicate differences between Delinquent Taxpayer File data and the FI Account Owner Record data for any partial match. Note: Partial matches shall be considered “imperfect matches” that primarily arise from name field discrepancies but can also occur due to other field discrepancies.

d. Taxpayer Number Match Summary (Quarterly). The report shall summarize per each Taxpayer Number the total number of matches identified and total sum, in dollars, of all Account balances related to matches established through the data match process for both Method 1 Reporting and Method 2 Reporting for the calendar quarter. The report shall include the FI name and FEIN, the FI’s reporting method, the match run date, the FI Account base to which the Inquiry File was matched, the FI Accounts actually processed during the match, the number of resulting full matches, the number of resulting partial matches, the “hit” ratio, and the total sum, in dollars, of all Account balances reported by the FI as matched to a Delinquent Taxpayer in the Inquiry File as well as the total dollar amount that represents the Delinquent Taxpayer’s ownership of such total sum.

e. FI Compliance Report (Quarterly). The report shall list FI in compliance with Comptroller’s FIDM program for the calendar quarter. The report shall include, for each FI, the FI name, tax identification number, elected reporting method, scheduled reporting due date for the quarter, and actual date FI submitted the FI data appropriate to the FI’s elected reporting method; the date Successful Respondent completed processing of the FI’s data in accordance with requirements applicable to the FI’s elected reporting method; and, the date Successful Respondent provided to Comptroller access to the resulting Data Match File.

f. FI Non-Compliance Report (Monthly). The report shall list all FI that have failed to perform timely data exchange, data matching and reporting in accordance with the method of reporting elected by the FI and the reporting schedule agreed to by the FI. The report contains the FI name and tax identification number, elected reporting method, scheduled reporting due date for the quarter, the current number of days of this instance of the FI’s data exchange, data matching and reporting non-compliance, the FI contact information, and a summary of Successful Respondent’s compliance enforcement actions, and the corresponding dates of actions, taken to remedy the FI’s non-compliance.

g. FI Enrollment Status (Monthly). The report shall list all FI authorized to do business in the state and indicate each FI’s current status for enrollment in Comptroller’s FIDM program. The report indicators shall include:

i. Enrolled: All FI that have executed a CFI Agreement and required enrollment forms;

ii. Dropped: All FI that were previously enrolled but that have dropped from enrollment due to closure;

iii. Pending: All FI authorized to do business in the state, but that have not executed a CFI Agreement and/or have not completed required enrollment forms. For all FI with a Pending indicator, Successful Respondent shall include notation explaining the Pending status:

1. New: For FI that have been recently identified, been provided an Outreach Packet, but whose due date for return of an executed CFI Agreement and enrollment forms has not passed. Successful Respondent shall include the applicable due date for the executed CFI Agreement and enrollment forms.

2. Merged: For FI that have been identified as merged with another FI, but that have not provided a notice of closure and have not provided an updated executed CFI Agreement or enrollment forms.

3. Non-compliant: For FI that have been provided an Outreach Packet and whose due date for return of an executed CFI Agreement and enrollment forms has passed. Successful Respondent shall include the applicable due date(s) and a summary of actions and their corresponding schedules to remedy the non-compliance.

h. Successful Respondent shall ensure data exchange and data match reports of the Comptroller’s FIDM program conform to the MSFIDM Handbook specifications.

i. Successful Respondent shall ensure its adherence to due dates for data exchange and data match reports and other reporting to Comptroller.

j. To the greatest extent possible within its control, Successful Respondent shall ensure FI compliance with a FI’s reporting schedule within the applicable CFI Agreement.

RFP 304-26-1692SH FIDM Services Page 15 of 58

2.2 Business Requirements

2.2.1 Information Technology Requirements

Comptroller requires electronic data file exchange over the internet with the Comptroller, and Successful Respondent must have the capacity to engage in electronic data file exchange using protocols acceptable to Comptroller. Comptroller’s computer hardware used in connection with the Services consists of an IBM mainframe computer with networked Windows PCs. The system runs on Windows 11 Enterprise Version 1909 or greater with proprietary software and off the shelf software subject to upgrades. To facilitate secure transfer of files between Comptroller and Successful Respondent, the granting of Successful Respondent’s access to Comptroller’s servers and testing and production environments shall be accomplished using an assigned user ID requiring a password. All data transfer between Comptroller and Successful Respondent and access to Comptroller’s servers and testing and production environments shall adhere to the following requirements, as applicable, and Section 14.9 (CPA Data Safeguard Standards) of the Contract:

1. File Transfer. Comptroller and Successful Respondent shall use Comptroller approved, encrypted enterprise solutions for File Transfer Protocol (“FTP”) or file transfer communication. Approved SFTP include:

SFTP (FTP over SSH) with password.

2. IP Address. Comptroller requires Successful Respondent use of a single static IP address per SFTP account.