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HomeMy WebLinkAbout20092784.tiffMEMORANDUM DATE: October 15, 2009 IIIIDTO: William F. Garcia, Chair, Board of County Commissioners e FROM Judy A. Griego, Director, Human Servi l e COLORADORE: Universal Membership Agreement between the Weld County Department of Human Services and TALX Corporation Enclosed for Board approval is a Universal Membership Agreement between the Weld County Department of Human Services and TALX Corporation. This Agreement was presented at the Board's August 31, 2009, Work Session. The purpose of this sixty day contract is to pilot an internet based software package that will allow the Department instant access to earned income for customers whom apply for services within the Department. This will help reduce fraud, speed up case processing, identify more employers than before, and locate non -custodial income. This software will be evaluated for sixty days to identify cost effectiveness. The total contract amount is $2,500. If you have questions please give me a call at extension 6510. 1/1 /09 2009-2784 UNIVERSAL MEMBERSHIP AGREEMENT for The Work Number® Social Services This Universal Membership Agreement (the "Agreement') is entered into by and between TALX Corporation, a Missouri Corporation, 11432 Lackland Road, St. Louis, Missouri ("TALX"), and County of Weld, Colorado ("Agency"). RECITALS: A. TALX operates The Work Number® (the "Service"), a service used to verify certain employment -related information about an individual ("Consumers"); and B. Agency wishes to confirm employment and/or income information of Consumers through the Service. NOW, THEREFORE, the parties agree as follows: 1. SCOPE OF THE AGREEMENT. This Agreement consists of the general terms set forth in the body of this Agreement, Exhibit 1, Exhibit 2, and each Schedule A executed by the parties which may contain additional terms. If there is a conflict between the general terms and conditions of this Agreement and any Exhibit or Schedule, the provisions of the Exhibit or Schedule will govern and control. This Agreement specifically supersedes and replaces any agreement between the parties that predates this Agreement and which relates to the Service as provided in Schedule A, even if the prior agreement contains an "entire agreement" or "merger" clause, and any such agreements are terminated. 2. TALX OBLIGATIONS. The Service will provide Agency with automated access to certain employment and/or income data ("Data") furnished to TALX by employers. 3. AGENCY OBLIGATIONS. a. Agency shall comply with the terms set forth in this Agreement which includes Exhibits I and 2, and also each Schedule A executed by the parties which may contain additional terms. b. Agency shall pay for the Services as set forth herein. All prices stated in this Agreement are exclusive of, and Agency shall pay, all sales, use, privilege, or excise taxes, if applicable. c. Agency certifies that it will order Data from the Service only when Agency intends to use the Data (i) in accordance with the applicable provisions of the Fair Credit Reporting Act ("FCRA") and all state law FCRA counterparts as though the Data is a consumer report, and (ii) for the following FCRA permissible purposes: (1) in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status, or (2) in connection with a child support enforcement case, as noticed in Exhibit 1; and for no other purpose. Agency agrees to only use the Data consistent with the obligations of users of consumer reports as provided for in the Federal Trade Commission (the "FTC")'s Notice Form attached as Exhibit 1. d. Agency certifies that it will comply with applicable provisions under Vermont law. In particular, Agency certifies that it will order Data relating to Vermont residents only after Agency has received prior Consumer consent in accordance with VFCRA Section 2480e and applicable Vermont Rules. Agency further certifies that the attached copy of VFCRA Section 2480e applicable Vermont Rules as referenced in Exhibit 2 was received from TALX. e. Agency may use the Data provided through the Service only as described in this Agreement. Agency may reproduce or store the Data obtained from the Service solely for its own use in accordance with this Agreement, and will hold all Data obtained from the Service under this Agreement in strict confidence and will not reproduce, reveal, or make it accessible in whole or in part, in any manner whatsoever, to any others unless required by law, or unless Agency first PLEASE FAX TO SOCIAL SERVICES at 888-708-6816 Universal Membership Agreement Page 1 of 13 obtains TALX's written consent; provided, however, that Agency may discuss Consumer Data with the Data subject. Agency will not provide a copy of the Data to the Consumer, except as may be required or permitted by law or approved in writing by TALX, except in any state where this contractual prohibition would be invalid. Agency will refer the Consumer to TALX whenever the Consumer disputes the Data disclosed by Agency. Agency will not interpret the failure of TALX to return Data as a statement regarding that consumer's credit worthiness, because the failure may result from one or more factors unrelated to credit worthiness. 1. Agency represents and warrants it (i) is administering a government funded benefit or program, (ii) has been given the legal authority to view the Data by the Consumer or by operation of law, and iii) is requesting the Data in compliance with all laws. Agency acknowledges it shall employ decision making processes appropriate to the nature of the transaction in accordance with commercially reasonable standards and will utilize the Data as part of its process. h. Agency represents and warrants it has written authorization from the Consumer to verify income. Agency need not use any particular form of authorization or obtain a separate signature for verifying income provided that the form constitutes Consumer authorization. Notwithstanding the foregoing, in the event Agency is using the Service for child support enforcement purposes as identified in Exhibit 1 to this agreement, Agency is not required to obtain such authorization. i. Agency may not allow a third party service provider (hereafter "Service Provider") to access, use, or store the Service or Data on its behalf without first obtaining TALX's written permission and without the Service Provider first entering into a Client Service Provider Information Use and Nondisclosure Agreement with TALX. In order to ensure compliance with this Agreement, applicable law and TALX policies, TALX may conduct reviews of Agency activities, including requesting copies of the Consumer's authorization to verify income with respect to requests for Data, and use of Data. Agency shall provide documentation to TALX as reasonably requested by TALX and shall allow access to its premises for purposes of such review by TALX. Agency shall cooperate fully with any and all investigations by TALX of allegations of abuse or misuse of the Services. k. Additional representations and warranties as may be set forth in each Schedule A. 4. AGENCY USE OF SERVICE. Data on the Service may be accessed by Agency to verify Consumer's employment status ("Employment Verification") or income ("Income Verification") for the purposes of determining eligibility for receipt of public aid or assistance, prevention or identification of fraud, overpayments associated with the receipt of public aid or assistance, or collecting on defaulted child support obligations that are in effect and valid. 5. DATA SECURITY. This Section 5 applies to any means through which Agency orders or accesses the Service including, without limitation, system -to -system, Interactive Voice Response (" 1VR"), fax, batch file transfer, private network, or the Internet. If Agency orders or accesses the Service via the Internet, Agency shall fully comply with TALX's connectivity security requirements specified in 5.6 below. a. For the purposes of this Section 5, the term "Authorized User" means an Agency employee that Agency has authorized to order or access the Service and who is trained on Agency's obligations under this Agreement with respect to the ordering and use of the Service, and the Data provided through the same, including Agency's FCRA and other obligations with respect to the access and use of Data. Agency will: 1. ensure that only Authorized Users can order or have access to the Service, 2. ensure that Authorized Users do not order Data for personal reasons or provide Data to any third - party except as permitted by this Agreement, 3. ensure that all devices used by Agency to order or access the Service are placed in a secure location and are accessible only by Authorized Users, and that such devices are secured when not in use through such means as screen locks, shutting power controls off, or other commercially reasonable security procedures, g. J. PLEASE FAX TO SOCIAL SERVICES at 888-708-6816 Universal Membership Agreement Page 2 of 13 4. take all necessary measures to prevent unauthorized ordering of or access to the Service by any person other than the Authorized User for permissible purposes, including, without limitation, (i) limiting the knowledge of the Agency security codes, usernames, and any passwords Agency may use to those individuals with a need to know, (ii) requiring Agency users to change passwords at least every ninety (90) days, or sooner if an Authorized User is no longer responsible for accessing the Service, or if Agency suspects any unauthorized person has learned the password, (iii) using all security features in the software and hardware Agency uses to order or access the Service, and (iv) requiring each individual Agency user to have a unique UserlD and password to access the Service, 5. not use personal computer hard drives or portable and/or removable data storage equipment or media (including, but not limited to, laptops, zip drives, tapes, disks, CDs, DVDs, software and code) to store Data unless the Data is stored on such media or device is encrypted using the following minimum standards which standards may be modified from time to time by TALX: Advanced Encryption Standard (AES), minimum 256 -bit key or Triple Data Encryption Standard (3DES) minimum 168 -bit key, encryption algorithms. In addition, all printed Data must be stored in a secured, locked location when not in use, and must be completely destroyed when no longer needed by cross -cut shredding machines (or other equally effective destruction method) such that the results are not readable or useable for any purpose. When Data in electronic form is no longer needed, it must be securely and effectively erased or media containing Data must be physically destroyed. In either case, commercially reasonable practices for the type of Data received from TALX must be employed, 6. in no event access the Service via any wireless communication device, including but not limited to, web enabled cell phones, interactive wireless pagers, personal digital assistants (PDAs), mobile data terminals, portable data terminals, or other portable devices which do not store data in a manner consistent with the encryption requirements provided in Section 5.a.5, 7. if Agency sends, transfers, or ships any Data, Agency shall encrypt the Data using the following minimum standards which standards may be modified from time to time by TALX: Advanced Encryption Standard (AES), minimum 256 -bit key or Triple Data Encryption Standard (3DES) minimum 168 -bit key, encrypted algorithms, 8. monitor compliance with the obligations of this Section 5, and immediately notify TALX if Agency suspects or knows of any unauthorized access or attempt to access the Service and/or Data obtained from the Service. Such monitoring will include, without limitation, a review of each TALX invoice for the purpose of detecting any unauthorized activity, 9. not ship hardware or media between Agency locations or to third parties without deleting all TALX Agency number(s), usernames, security codes and Agency user passwords or Data unless such information is encrypted as provided herein, 10. if Agency uses a third -party vendor to establish access to the Service, be responsible for third party vendor's use of Agency's member numbers, usernames, security access codes, or passwords, and Agency will ensure that the third party vendor safeguards Agency's security access code(s), usernames and passwords through the use of security requirements that are no less stringent than those applicable to Agency under this Section 5, II. use commercially reasonable efforts to ensure Data security when disposing of any Data or record obtained from TALX. Such efforts must include any procedures or requirements established by any federal agency that governs Agency's industry. b. Agency will, with respect to Agency's network security: 1. use commercially reasonable efforts to protect Data when stored on servers, subject to the following requirements: (i) Data must be protected by multiple layers of network security, including, but not limited to, firewalls, routers, intrusion detection devices; (ii) secure access (both physical and network) to systems storing Data, must include authentication and passwords that are changed at least every ninety (90) days; and (iii) all servers must be kept current and patched on a timely basis with appropriate security -specific system patches, as they are available, PLEASE FAX TO SOCIAL SERVICES at 888-708-6816 Universal Membership Agreement Page 3 of 13 2. use commercially reasonable efforts to protect Agency's connection with dedicated industry - recognized firewalls that are configured and managed to adhere to industry accepted best practices, 3. use commercially reasonable efforts to only hold Data on an application server which can only be accessed by a presentation server, through one of the following: (i) Dual or multiple firewall method (preferred) — this method consists of a firewall between the Internet and the presentation server(s) and another firewall between the presentation server(s) and the application server holding the Data. The network firewall should ensure that only the presentation server(s) is/are allowed to access the application server holding Data, (ii) Single firewall method (acceptable) — when a dual firewall method is not feasible, a single firewall will provide acceptable levels of protection. The firewall should be installed between the Internet and the presentation server(s). Multiple interfaces to separate the presentation server(s) and that application server holding Data are required. The firewall should be configured to allow only the presentation server(s) access to the application server holding Data, or (iii) ensure that all administrative and network access to firewalls and servers must be through an internal network or protected extranet using strong authentication encryption such as VPN and SSH. 4. use commercially reasonable efforts to route communications from Agency's internal services to external systems through firewalls configured for network address translation (NAT), 5. use commercially reasonable efforts to establish procedures and logging mechanisms for systems and networks that will allow tracking and analysis in the event there is a compromise, and maintain an audit trail history for at least three (3) months for review by TALX. c. If TALX reasonably believes that Agency has violated this Section 5, TALX may, in addition to any other remedy authorized by this Agreement, with reasonable advance written notice to Agency, and at TALX's sole expense, conduct, or have a third party conduct on its behalf, an audit of Agency's network security systems, facilities, practices and procedures to the extent TALX reasonably deems necessary, including an on -site inspection, to evaluate Agency's compliance with the data security requirements of this Section 5. 6. CONFIDENTIALITY. Each party acknowledges that all materials and information disclosed by a party ("Disclosing Party") to another party ("Recipient") in connection with performance of this Agreement, including the terms of this Agreement and the pricing terms contained in Schedule A, consist of confidential and proprietary data ("Confidential Information"). Each Recipient will hold those materials and that information in strict confidence, and will restrict its use of those materials and that information to the purposes anticipated in this Agreement. If the law or legal process requires Recipient to disclose confidential and proprietary data, Recipient will notify the Disclosing Party of the request. Thereafter, the Disclosing Party may seek a protective order or waive the confidentiality requirements of this Agreement, provided that Recipient may only disclose the minimum amount of information necessary to comply with the requirement. Recipient will not be obligated to hold confidential any information from the Disclosing Party which (a) is or becomes publicly known, (b) is received from any person or entity who, to the best of Recipient's knowledge, has no duty of confidentiality to the Disclosing Party, (c) was already known to Recipient prior to the disclosure, and that knowledge was evidenced in writing prior to the date of the other party's disclosure, or (d) is developed by the Recipient without using any of the Disclosing Party's information. The rights and obligations of this Section 6 with respect to (i) confidential and proprietary data that constitutes a "trade secret" (as defined by applicable law), will survive termination of this Agreement for so long as such confidential and proprietary information remains a trade secret under applicable law; and (ii) all other confidential and proprietary data, will survive the termination of this Agreement for the longer of two (2) years from termination, or the confidentiality period required by applicable law. 7. TERM AND TERMINATION: This Agreement shall be for a Pilot Period of sixty (60) days. At the end of sixty (60) days, TALX shall suspend all services to Agency. During the term of the pilot, but no later than ten (10) days following the suspension of service, TALX shall provide to Agency all records of Agency's use of TALX services during the Pilot Period. Agency shall use the records to determine whether or not to enter into a separate Agreement with TALX for a more extended period of time. Agency agrees to provide written notice to TALX on or before the sixtieth (60th) day of suspension informing TALX of its decision to enter into another Agreement, or to terminate PLEASE FAX TO SOCIAL SERVICES at 888-708-6816 Universal Membership Agreement Page 4 of 13 service. Any termination of service shall be effective on the date of notification, TALX shall terminate all services to Agency, and Agency shall be under no obligation to pay TALX for any services provided after the end of the Pilot Period. If Agency determines that it wishes to enter into an Agreement with TALX for additional services, Agency's obligation for payment to TALX shall be governed exclusively by the terms of said Agreement. If TALX believes that Agency has breached an obligation under this Agreement, TALX may, at its option and reserving all other rights and remedies, terminate this Agreement and/or any Schedules immediately upon notice to Agency. Unless otherwise provided for in the relevant schedule, TALX may change the price of the Service and/or the Service Schedule and/or Description with thirty (30) days notice. 8. RIGHTS TO SERVICE. The Service and the Data, including all rights thereto, are proprietary to TALX. 9. WARRANTY. TALX warrants that the Service will be performed in all material respects in a reasonable and workmanlike manner and in compliance with laws and regulations applicable to TALX' performance thereof. Agency acknowledges that the ability of TALX to provide accurate information is dependent upon receipt of accurate information from employers. TALX does not warrant that the Service will be error free. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH HEREIN, TALX MAKES NO OTHER WARRANTIES AS TO THE SERVICE OR THE DATA, EXPRESSED OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF GOOD TITLE, MERCHANTABILITY, AND/OR FITNESS FOR A PARTICULAR PURPOSE EVEN IF TALX KNOWS OF SUCH PURPOSE. 10. Indemnification. Agency shall assume sole and complete responsibility for any misuse of the information provided by TALX. Each party is solely liable for any breach of confidentiality for which it, or its agents and/or employees are responsible. 11. LIMITATION OF LIABILITY In no event shall damages of any kind payable by TALX hereunder exceed the sum paid by Agency for the service which causes Agency's claim. This Agreement is subject to Colorado Governmental Immunity Act, C.R.S. 24-10-101 et seq. Therefore no portion of this Agreement shall be deemed to constitute a waiver of any immunities the Agency or its officers or employees may possess, nor shall any portion of this Agreement be deemed to have created a duty of care which did not previously exist with respect to any person not a party to this Agreement. 12. APPLICABLE LAW AND ARBITRATION. This Agreement shall be governed by the laws of the State of Colorado, without giving effect to the principles of conflict of laws thereof. Any controversy or claim arising out of or relating to this Agreement shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association in Greeley, Colorado and judgment upon the award entered in any court in Greeley, Colorado having jurisdiction. 13. MISCELLANEOUS. This Agreement sets forth the entire agreement between the parties regarding the Service. Except as otherwise provided in this Agreement, this Agreement may be amended only by a subsequent writing signed by both parties. This Agreement may not be assigned or transferred by Agency without TALX' prior written consent. This Agreement shall be freely assignable by TALX and shall inure to the benefit of and be binding upon the permitted assignee of either Agency or TALX. If any provision of this Agreement is held to be invalid or unenforceable under applicable law in any jurisdiction, the validity or enforceability of the remaining provisions thereof shall be unaffected as to such jurisdiction and such holding shall not affect the validity or enforceability of such provision in any other jurisdiction. To the extent that any provision of this Agreement is held to be invalid or unenforceable because it is overbroad, that provision shall not be void but rather shall be limited only to the extent required by applicable law and enforced as so limited. Any notice under this Agreement shall be effective upon personal delivery by an overnight or other courier or delivery service, or three (3) days after pre -paid deposit with the postal service, in either case to the party's address in the first sentence of this Agreement or any substitute therefore provided by notice. It is expressly understood and agreed that the enforcement of the terms and conditions of this Agreement, and all rights of action relating to such enforcement, shall be strictly reserved to the undersigned parties and nothing in this Agreement shall give or allow any claim or right of action whatsoever by any other person not included in this Agreement. It is the express intention of the undersigned parties that any PLEASE FAX TO SOCIAL SERVICES at 888-708-6816 Universal Membership Agreement Page 5 of 13 person or entity other than the undersigned parties receiving services or benefits under this Agreement shall be an incidental beneficiary only. 14. COUNTERPARTS/EXECUTION BY FACSIMILE. For the convenience of the parties, copies of this Agreement and Schedules hereof may be executed in two or more counterparts and signature pages exchanged by facsimile. The parties intend that counterpart copies signed and exchanged as provided in the preceding sentence shall be fully binding as an original handwritten executed copy hereof and thereof and all of such copies together shall constitute one instrument. Agency acknowledges receipt of Exhibit 1, "Notice to Users of Consumer Reports Obligations of Users". Furthermore, Agency has read "Notice to Users of Consumer Reports Obligations of Users"which explains Agency's obligations under the FCRA as a user of consumer report information (to be initialed by the person signing on behalf of Agency). THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION THAT MAY BE ENFORCED BY THE PARTIES. IN WITNESS WHEREOF, the parties have executed this Agreement on the date indicated below. Agency TALX Corporation By (signature): Name (print): William F. Garcia Title: Chair, Board of County Commissioners Date: 10/19/2009 By (signature): Name (print): Title: Date: (9n Tim Meeker Accictant Director 9R /o ff PLEASE FAX TO SOCIAL SERVICES at 888-708-6816 Universal Membership Agreement Page 6 of 13 UNIVERSAL MEMBERSHIP AGREEMENT for The Work Number® Social Services Exhibit 1 All users ("user" or "Consumer") subject to the Federal Trade Commission's jurisdiction must comply with all applicable regulations, including regulations promulgated after this notice was prescribed in 2004. Information about applicable regulations currently in effect can be found at the Commission's Web site, www.ftc.gov/credit. Persons not subject to the Commission's jurisdiction should consult with their regulators to find any relevant regulations. NOTICE TO USERS OF CONSUMER REPORTS: OBLIGATIONS OF USERS UNDER THE FCRA The Fair Credit Reporting Act (FCRA),l5 U.S.C. 1681-1681y, requires that this notice be provided to inform users of consumer reports of their legal obligations. State law may impose additional requirements. The text of the FCRA is set forth in full at the Federal Trade Commission's Website at www.ftc.gov/credit. At the end of this document is a list of United States Code citations for the FCRA. Other information about user duties is also available at the Commission's Web site. Users must consult the relevant provisions of the FCRA for details about their obligations under the FCRA. The first section of this summary sets forth the responsibilities imposed by the FCRA on all users of consumer reports. The subsequent sections discuss the duties of users of reports that contain specific types of information, or that are used for certain purposes, and the legal consequences of violations. If you are a furnisher of information to a consumer reporting agency (CRA), you have additional obligations and will receive a separate notice from the CRA describing your duties as a furnisher. I. OBLIGATIONS OF ALL USERS OF CONSUMER REPORTS A. Users Must Have a Permissible Purpose Congress has limited the use of consumer reports to protect consumers' privacy. All users must have a permissible purpose under the FCRA to obtain a consumer report. Section 604 contains a list of the permissible purposes under the law. These are: • As ordered by a court or a federal grand jury subpoena. Section 604(a)(1) • As instructed by the consumer in writing. Section 604(a)(2) • For the extension of credit as a result of an application from a consumer, or the review or collection of a consumer's account. Section 604(a)(3)(A) • For employment purposes, including hiring and promotion decisions, where the consumer has given written permission. Sections 604(a)(3)(B) and 604(b) • For the underwriting of insurance as a result of an application from a consumer. Section 604(a)(3)(C) • When there is a legitimate business need, in connection with a business transaction that is initiated by the consumer. Section 604(a)(3)(F)(i) • To review a consumer's account to determine whether the consumer continues to meet the terms of the account. Section 604(a)(3)(F)(ii) • To determine a consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status. Section 604(a)(3)(D) • For use by a potential investor or servicer, or current insurer, in a valuation or assessment of the credit or prepayment risks associated with an existing credit obligation. Section 604(a)(3)(E) • For use by state and local officials in connection with the determination of child support payments, or modifications and enforcement thereof. Sections 604(a)(4) and 604(a)(5) In addition, creditors and insurers may obtain certain consumer report information for the purpose of making "prescreened" unsolicited offers of credit or insurance. Section 604(c). The particular obligations of users of "prescreened" information are described in Section VII below. B. Users Must Provide Certifications EXHIBIT 1 TO UNIVERSAL MEMBERSHIP AGREEMENT Page 7 of 13 Section 604(f) prohibits any person from obtaining a consumer report from a consumer reporting agency (CRA) unless the person has certified to the CRA the permissible purpose(s) for which the report is being obtained and certifies that the report will not be used for any other purpose. C. Users Must Notify Consumers When Adverse Actions Are Taken The term "adverse action" is defined very broadly by Section 603. "Adverse actions" include all business, credit, and employment actions affecting consumers that can be considered to have a negative impact as defined by Section 603(k) of the FCRA — such as denying or canceling credit or insurance, or denying employment or promotion. No adverse action occurs in a credit transaction where the creditor makes a counteroffer that is accepted by the consumer. 1. Adverse Actions Based on Information Obtained From a CRA If a user takes any type of adverse action as defined by the FCRA that is based at least in part on information contained in a consumer report, Section 615(a) requires the user to notify the consumer. The notification may be done in writing, orally, or by electronic means. It must include the following: • The name, address, and telephone number of the CRA (including a toll -free telephone number, if it is a nationwide CRA) that provided the report. • A statement that the CRA did not make the adverse decision and is not able to explain why the decision was made. • A statement setting forth the consumer's right to obtain a free disclosure of the consumer's file from the CRA if the consumer makes a request within 60 days. • A statement setting forth the consumer's right to dispute directly with the CRA the accuracy or completeness of any information provided by the CRA. 2. Adverse Actions Based on Information Obtained From Third Parties Who Are Not Consumer Reporting Agencies If a person denies (or increases the charge for) credit for personal, family, or household purposes based either wholly or partly upon information from a person other than a CRA, and the information is the type of consumer information covered by the FCRA, Section 615(6)(1) requires that the user clearly and accurately disclose to the consumer his or her right to be told the nature of the information that was relied upon if the consumer makes a written request within 60 days of notification. The user must provide the disclosure within a reasonable period of time following the consumer's written request. 3. Adverse Actions Based on Information Obtained From Affiliates If a person takes an adverse action involving insurance, employment, or a credit transaction initiated by the consumer, based on information of the type covered by the FCRA, and this information was obtained from an entity affiliated with the user of the information by common ownership or control, Section 615(b)(2) requires the user to notify the consumer of the adverse action. The notice must inform the consumer that he or she may obtain a disclosure of the nature of the information relied upon by making a written request within 60 days of receiving the adverse action notice. If the consumer makes such a request, the user must disclose the nature of the information not later than 30 days after receiving the request. If consumer report information is shared among affiliates and then used for an adverse action, the user must make an adverse action disclosure as set forth in I.C.I above. D. Users Have Obligations When Fraud and Active Duty Military Alerts are in Files When a consumer has placed a fraud alert, including one relating to identity theft, or an active duty military alert with a nationwide consumer reporting agency as defined in Section 603(p) and resellers, Section 605A(h) imposes limitations on users of reports obtained from the consumer reporting agency in certain circumstances, including the establishment of a new credit plan and the issuance of additional credit cards. For initial fraud alerts and active duty alerts, the user must have reasonable policies and procedures in place to form a belief that the user knows the identity of the applicant or contact the consumer at a telephone number specified by the consumer; in the case of extended fraud alerts, the user must contact the consumer in accordance with the contact information provided in the consumer's alert. E. Users Have Obligations When Notified of an Address Discrepancy Section 605(h) requires nationwide CRAs, as defined in Section 603(p), to notify users that request reports when the address for a consumer provided by the user in requesting the report is substantially different from the addresses in the consumer's file. When this occurs, users must comply with regulations specifying the procedures to be followed, which will be issued by the Federal Trade Commission and the banking and credit union regulators. The Federal Trade Commission's regulations will be available at www.ftc.gov/credit. F. Users Have Obligations When Disposing of Records Section 628 requires that all users of consumer report information have in place procedures to properly dispose of records containing this information. The Federal Trade Commission, the Securities and Exchange Commission, and the banking and credit union regulators have issued regulations covering disposal. The Federal Trade Commission's regulations may be found at www.ftc.gov/credit. EXHIBIT 1 TO UNIVERSAL MEMBERSHIP AGREEMENT Page 8 of I3 II. CREDITORS MUST MAKE ADDITIONAL DISCLOSURES If a person uses a consumer report in connection with an application for, or a grant, extension, or provision of, credit to a consumer on material terms that are materially less favorable than the most favorable terms available to a substantial proportion of consumers from or through that person, based in whole or in part on a consumer report, the person must provide a risk -based pricing notice to the consumer in accordance with regulations to be jointly prescribed by the Federal Trade Commission and the Federal Reserve Board. Section 609(g) requires a disclosure by all persons that make or arrange loans secured by residential real property (one to four units) and that use credit scores. These persons must provide credit scores and other information about credit scores to applicants, including the disclosure set forth in Section 609(g)(1)(D) ("Notice to the Home Loan Applicant"). III. OBLIGATIONS OF USERS WHEN CONSUMER REPORTS ARE OBTAINED FOR EMPLOYMENT PURPOSES A. Employment Other Than in the Trucking Industry If information from a CRA is used for employment purposes, the user has specific duties, which are set forth in Section 604(b) of the FCRA. The user must: • Make a clear and conspicuous written disclosure to the consumer before the report is obtained, in a document that consists solely of the disclosure, that a consumer report may be obtained. • Obtain from the consumer prior written authorization. Authorization to access reports during the term of employment may be obtained at the time of employment. • Certify to the CRA that the above steps have been followed, that the information being obtained will not be used in violation of any federal or state equal opportunity law or regulation, and that, if any adverse action is to be taken based on the consumer report, a copy of the report and a summary of the consumer's rights will be provided to the consumer. • Before taking an adverse action, the user must provide a copy of the report to the consumer as well as the summary of consumer's rights. (The user should receive this summary from the CRA.) A Section 615(a) adverse action notice should be sent after the adverse action is taken. An adverse action notice also is required in employment situations if credit information (other than transactions and experience data) obtained from an affiliate is used to deny employment. Section 615(b)(2) The procedures for investigative consumer reports and employee misconduct investigations are set forth below. B. Employment in the Trucking Industry Special rules apply for truck drivers where the only interaction between the consumer and the potential employer is by mail, telephone, or computer. In this case, the consumer may provide consent orally or electronically, and an adverse action may be made orally, in writing, or electronically. The consumer may obtain a copy of any report relied upon by the trucking Agency by contacting the Agency. IV. OBLIGATIONS WHEN INVESTIGATIVE CONSUMER REPORTS ARE USED Investigative consumer reports are a special type of consumer report in which information about a consumer's character, general reputation, personal characteristics, and mode of living is obtained through personal interviews by an entity or person that is a consumer reporting agency. Consumers who are the subjects of such reports are given special rights under the FCRA. If a user intends to obtain an investigative consumer report, Section 606 requires the following: • The user must disclose to the consumer that an investigative consumer report may be obtained. This must be done in a written disclosure that is mailed, or otherwise delivered, to the consumer at some time before or not later than three days after the date on which the report was first requested. The disclosure must include a statement informing the consumer of his or her right to request additional disclosures of the nature and scope of the investigation as described below, and the summary of consumer rights required by Section 609 of the FCRA. (The summary of consumer rights will be provided by the CRA that conducts the investigation.) • The user must certify to the CRA that the disclosures set forth above have been made and that the user will make the disclosure described below. • Upon the written request of a consumer made within a reasonable period of time after the disclosures required above, the user must make a complete disclosure of the nature and scope of the investigation. This must be made in a written statement that is mailed, or otherwise delivered, to the consumer no later than five days after the date on which the request was received from the consumer or the report was first requested, whichever is later in time. EXHIBIT 1 TO UNIVERSAL MEMBERSHIP AGREEMENT Page 9 of 13 V. SPECIAL PROCEDURES FOR EMPLOYEE INVESTIGATIONS Section 603(x) provides special procedures for investigations of suspected misconduct by an employee or for compliance with Federal, state or local laws and regulations or the rules of a self -regulatory organization, and compliance with written policies of the employer. These investigations are not treated as consumer reports so long as the employer or its agent complies with the procedures set forth in Section 603(x), and a summary describing the nature and scope of the inquiry is made to the employee if an adverse action is taken based on the investigation. VI. OBLIGATIONS OF USERS OF MEDICAL INFORMATION Section 604(g) limits the use of medical information obtained from consumer reporting agencies (other than payment information that appears in a coded form that does not identify the medical provider). If the information is to be used for an insurance transaction, the consumer must give consent to the user of the report or the information must be coded. If the report is to be used for employment purposes — or in connection with a credit transaction (except as provided in regulations issued by the banking and credit union regulators) — the consumer must provide specific written consent and the medical information must be relevant. Any user who receives medical information shall not disclose the information to any other person (except where necessary to carry out the purpose for which the information was disclosed, or as permitted by statute, regulation, or order). VII. OBLIGATIONS OF USERS OF "PRESCREENED" LISTS The FCRA permits creditors and insurers to obtain limited consumer report information for use in connection with unsolicited offers of credit or insurance under certain circumstances. Sections 6030), 604(c), 604(e), and 615(d). This practice is known as "prescreening" and typically involves obtaining from a CRA a list of consumers who meet certain preestablished criteria. If any person intends to use prescreened lists, that person must (1) before the offer is made, establish the criteria that will be relied upon to make the offer and to grant credit or insurance, and (2) maintain such criteria on file for a three-year period beginning on the date on which the offer is made to each consumer. In addition, any user must provide with each written solicitation a clear and conspicuous statement that: • Information contained in a consumer's CRA file was used in connection with the transaction. • The consumer received the offer because he or she satisfied the criteria for credit worthiness or insurability used to screen for the offer. • Credit or insurance may not be extended if, after the consumer responds, it is determined that the consumer does not meet the criteria used for screening or any applicable criteria bearing on credit worthiness or insurability, or the consumer does not furnish required collateral. • The consumer may prohibit the use of information in his or her file in connection with future prescreened offers of credit or insurance by contacting the notification system established by the CRA that provided the report. The statement must include the address and toll -free telephone number of the appropriate notification system. In addition, once the Federal Trade Commission by rule has established the format, type size, and manner of the disclosure required by Section 615(d), users must be in compliance with the rule. The FTC's regulations will be at www.ftc.gov/credit. VIII. OBLIGATIONS OF RESELLERS A. Disclosure and Certification Requirements Section 607(e) requires any person who obtains a consumer report for resale to take the following steps: • Disclose the identity of the end -user to the source CRA. • Identify to the source CRA each permissible purpose for which the report will be furnished to the end -user. • Establish and follow reasonable procedures to ensure that reports are resold only for permissible purposes, including procedures to obtain: (1) the identity of all end -users; (2) certifications from all users of each purpose for which reports will be used; and (3) certifications that reports will not be used for any purpose other than the purpose(s) specified to the reseller. Resellers must make reasonable efforts to verify this information before selling the report. B. Reinvestigations by Resellers Under Section 611(0, if a consumer disputes the accuracy or completeness of information in a report prepared by a reseller, the reseller must determine whether this is a result of an action or omission on its part and, if so, correct or delete the information. If not, the reseller must send the dispute to the source CRA for reinvestigation. When any CRA notifies the reseller of the results of an investigation, the reseller must immediately convey the information to the consumer. C. Fraud Alerts and Resellers Section 605A(f) requires resellers who receive fraud alerts or active duty alerts from another consumer reporting agency to include these in their reports. EXHIBIT 1 TO UNIVERSAL MEMBERSHIP AGREEMENT Page 10 of 13 IX. LIABILITY FOR VIOLATIONS OF THE FCRA Failure to comply with the FCRA can result in state government or federal government enforcement actions, as well as private lawsuits. Sections 616, 617, and 621. In addition, any person who knowingly and willfully obtains a consumer report under false pretenses may face criminal prosecution. Section 619. The FTC's Web site, www.ftc.gov/credit, has more information about the FCRA, including publications for businesses and the full text of the FCRA. Citations for FCRA sections in the U.S. Code, 15 U.S.C. § 1681 et seq.: Section 602 15 U.S.C. 1681 Section 603 15 U.S.C. 1681a Section 604 15 U.S.C. 1681b Section 605 15 U.S.C. 1681c Section 605A 15 U.S.C. 1681cA Section 605B 15 U.S.C. 1681cB Section 606 15 U.S.C. 1681d Section 607 15 U.S.C. 1681e Section 608 15 U.S.C. 1681f Section 609 15 U.S.C. 1681g Section 610 15 U.S.C. 1681h Section 611 15 U.S.C. 1681i Section 612 15 U.S.C. 1681j Section 613 15 U.S.C. 1681k Section 614 15 U.S.C. 16811 Section 615 15 U.S.C. 1681m Section 616 15 U.S.C. 1681n Section 617 15 U.S.C. 16810 Section 618 15 U.S.C. 1681p Section 619 15 U.S.C. 1681q Section 620 15 U.S.C. 1681r Section 621 15 U.S.C. 1681s Section 622 15 U.S.C. 1681s-1 Section 623 15 U.S.C. 1681s-2 Section 624 15 U.S.C. 1681t Section 625 15 U.S.C. 1681u Section 626 15 U.S.C. 1681v Section 627 15 U.S.C. 1681w Section 628 15 U.S.C. 1681 x Section 629 15 U.S.C. 1681y EXHIBIT 1 TO UNIVERSAL MEMBERSHIP AGREEMENT Page II of 13 UNIVERSAL MEMBERSHIP AGREEMENT for The Work Number® Social Services Exhibit 2 VERMONT FAIR CREDIT REPORTING CONTRACT CERTIFICATION The undersigned, ("Agency"), acknowledges that it subscribes to receive various information services from TALX Corporation ("TALX") in accordance with the Vermont Fair Credit Reporting Statute, 9 V.S.A. § 2480e (1999), as amended (the "VFCRA"), and the federal Fair Credit Reporting Act, 15, U.S.C. 1681 et. seq., as amended (the "FCRA"), and its other state law counterparts. In connection with Agency's continued use of TALX services in relation to Vermont consumers, Agency hereby certifies as follows: Vermont Certification. Agency certifies that it will comply with applicable provisions under Vermont law. In particular, Agency certifies that it will order Data relating to Vermont residents, that are credit reports as defined by the VFCRA, only after Agency has received prior consumer consent in accordance with VFCRA § 2480e and applicable Vermont Rules. Agency further certifies that the attached copy of VFCRA § 2480e applicable Vermont Rules were received from TALX. Agency: Weld County-CColorado Signed By: Printed Name and Title: William F. Garcia, Chair, Board of Weld County Commissioners Account Number: Date: 10/19/2009 Please also include the following information: Compliance Officer or Person Responsible for Credit Reporting Compliance Name: Title: Mailing Address: E -Mail Address: _ Phone: Fax: �I p EXHIBIT 1 TO UNIVERSAL MEMBERSHIP AGREEMENT Page 12 of 13 o'cc9-27J& Vermont Fair Credit Reporting Statute, 9 V.S.A. § 2480e (1999) § 2480e. Consumer consent (a) A person shall not obtain the credit report of a consumer unless: (1) the report is obtained in response to the order of a court having jurisdiction to issue such an order; or (2) the person has secured the consent of the consumer, and the report is used for the purpose consented to by the consumer. (b) Credit reporting agencies shall adopt reasonable procedures to assure maximum possible compliance with subsection (a) of this section. (c) Nothing in this section shall be construed to affect: (I) the ability of a person who has secured the consent of the consumer pursuant to subdivision (a)(2) of this section to include in his or her request to the consumer permission to also obtain credit reports, in connection with the same transaction or extension of credit, for the purpose of reviewing the account, increasing the credit line on the account, for the purpose of taking collection action on the account, or for other legitimate purposes associated with the account; and (2) the use of credit information for the purpose of prescreening, as defined and permitted from time to time by the Federal Trade Commission. VERMONT RULES *** CURRENT THROUGH JUNE 1999 *** AGENCY 06. OFFICE OF THE ATTORNEY GENERAL SUB -AGENCY 031. CONSUMER PROTECTION DIVISION CHAPTER 012. Consumer Fraud --Fair Credit Reporting RULE CF 112 FAIR CREDIT REPORTING CVR 06-031-012, CF 112.03 (1999) CF 112.03 CONSUMER CONSENT (a) A person required to obtain consumer consent pursuant to 9 V.S.A. §§ 2480e and 2480g shall obtain said consent in writing if the consumer has made a written application or written request for credit, insurance, employment, housing or governmental benefit. If the consumer has applied for or requested credit, insurance, employment, housing or governmental benefit in a manner other than in writing, then the person required to obtain consumer consent pursuant to 9 V.S.A. §§ 2480e and 2480g shall obtain said consent in writing or in the same manner in which the consumer made the application or request. The terms of this rule apply whether the consumer or the person required to obtain consumer consent initiates the transaction. (b) Consumer consent required pursuant to 9 V.S.A. §§ 2480e and 2480g shall be deemed to have been obtained in writing if, after a clear and adequate written disclosure of the circumstances under which a credit report or credit reports may be obtained and the purposes for which the credit report or credit reports may be obtained, the consumer indicates his or her consent by providing his or her signature. (c) The fact that a clear and adequate written consent form is signed by the consumer after the consumer's credit report has been obtained pursuant to some other form of consent shall not affect the validity of the earlier consent. EXHIBIT 1 TO UNIVERSAL MEMBERSHIP AGREEMENT Page 13 of 13 UNIVERSAL MEMBERSHIP AGREEMENT SCHEDULE A - EXPRESS SOCIAL SERVICE FEES AND SERVICE DESCRIPTION IN WITNESS WHEREOF, the parties have executed this Schedule A on the date indicated below. Agency: By (signature): Name (print): William F. Garcia TALX Corporation By (signature): Name (print): Title: Chair, Board of Weld County Commi ssionPlIt Date: 10/19/2009 Date: Agency Name: Weld County, Colorado, on behalf of Phone#: Weld County Department of Human Services Address: 315 11th Ave., Greeley, CO 80631 Fax#: FAX NUMBER(S) TO REGISTER Main Contact: Judy Griego PLEASE ENTER BELOW: Tim Meeker Asia(( ardor on Tide: Director, Human Services Department Email: jgriego@co.weld.co.us Billing Contact: Billing Phone: 970-352-1551 Billing Email: Can we send your Invoice via e-mail? ❑ Yes ❑ No AGENCY TYPE: IMPORTANT: Fax numbers identify registered users. Agency will be prompted for this fax number during the login process. X State or County Social Services/Human Services Agency Social Security Administration _Medicaid Work Program (WIA) Housing Authority (Federal, State or County) Child Support Enforcement _Low -Income Housing (i.e. Sec. 8, Sec. 42) ****Please provide proof of low-income status**** NOTE: IF YOU ARE COMPLETING THIS AGREEMENT FOR AN APARTMENT, YOU MUST FAX PROOF OF THE APARTMENT'S LOW-INCOME STATUS (i.e., APPLICATION, OCCUPANCY GUIDELINES, etc.) WITH THIS SERVICE AGREEMENT OR YOUR ACCOUNT WILL NOT BE ACTIVATED Other: SPECIFIC PROGRAMS OR DIVISIONS THAT WILL USE THIS SERVICE (Check ALL that apply): Food Stamps TANF General Cash Assistance Low -Income Energy Assistance IEVS Fraud Investigations Quality Control Housing Assistance Work -related Assistance Emergency Assistance Title II Title XVI Title IV -D Other: Please indicate all other programs that will use the service: Please fax signed contract to (314) 983-3949 Page 2 of 2 dcc9-oiAPI/ Hello