HomeMy WebLinkAboutP-21-501 ClearStar Inc. Amendment 1.pdf P-21-501
1 AMENDMENT NO. 1 TO SERVICE AGREEMENT
2 This Amendment No. 1 to Service Agreement ("Amendment No. 1") is dated November
3 14, 2023, and is between ClearStar, Inc. dba Employment Screening Resources, a Georgia
4 corporation ("Contractor"), and the County of Fresno, a political subdivision of the State of
5 California ("County").
6 Recitals
7 A. On January 27, 2022, the County and the Contractor entered into an agreement for
8 employment screening services, which is County agreement number P-21-501 ("Agreement").
9 B. The Agreement had an initial term of one (1) year, which may be extended for two (2)
10 additional one (1) year periods, upon the written approval of both parties. On January 26, 2023,
11 the Agreement expired. However, employment screening services are still needed and the
12 County will benefit from continuing the Agreement through this Amendment No. 1 allowing the
13 Agreement to remain in effect for an additional year. By way of this Amendment No. 1, the
14 County and Contractor now wish to and agree to extend the Agreement for the first additional
15 one (1) year period, to expire on January 26, 2024.
16 C. NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of
17 which is hereby acknowledged, County and Contractor agree as follows:
18 1. This Amendment No. 1 shall serve as a one-year extension of the Agreement through
19 January 26, 2024, in accordance with the Agreement.
20 2. County and Contractor agree to remove the existing Exhibit B —Terms of Service, and
21 replace it with a new Exhibit B — Terms of Service, attached to this Amendment No. 1 and
22 incorporated by this reference.
23 3. County and Contractor agree to the addition of Exhibit E —TU Access Security
24 Requirements, attached to this Amendment No. 1 and incorporated by this reference.
25 4. County and Contractor agree to replace the existing Exhibit D — EVS Terms and
26 Conditions, with Exhibit D attached to this Amendment No. 1 and is incorporated by this
27 reference.
28
1
P-21-501
1 5. County and Contractor agree to replace the existing Exhibit C — Pricing, with Exhibit C
2 attached to this Amendment No. 1 and is incorporated by this reference.
3 6. Section 16— ENTIRE AGREEMENT located on page 15, lines 8 through 11, is deleted
4 in their entirety and replaced with the following:
5 "This Agreement constitutes the entire Agreement between the Contractor and County with
6 respect to the subject matter hereof and supersedes all previous Agreement negotiations,
7 proposals, commitments, writings, advertisements, publications, and understandings of any
8 nature whatsoever unless expressly included in this Agreement. In the event of any
9 inconsistency in interpreting the documents which constitute this Agreement, the
10 inconsistency shall be resolved by giving precedence in the following order of priority: (1) the
11 text of this Amendment No. 1 (2) the Agreement (3) the Agreement including all exhibits (4)
12 all exhibits."
13 7. When both parties have signed this Amendment No. 1, the Agreement, and this
14 Amendment No. 1 together constitute the Agreement.
15 8. The Contractor represents and warrants to the County that:
16 a. The Contractor is duly authorized and empowered to sign and perform its obligations
17 under this Amendment No. 1.
18 b. The individual signing this Amendment No.1 on behalf of the Contractor is duly
19 authorized to do so and his or her signature on this Amendment No.1 legally binds
20 the Contractor to the terms of this Amendment No. 1.
21 9. The parties agree that this Amendment No. 1 may be executed by electronic signature
22 as provided in this section.
23 a. An "electronic signature" means any symbol or process intended by an individual
24 signing this Amendment No. 1 to represent their signature, including but not limited
25 to (1) a digital signature; (2) a faxed version of an original handwritten signature; or
26 (3) an electronically scanned and transmitted (for example by PDF document)
27 version of an original handwritten signature.
28
2
P-21-501
1 b. Each electronic signature affixed or attached to this Amendment No. 1 (1) is deemed
2 equivalent to a valid original handwritten signature of the person signing this
3 Amendment No. 1 for all purposes, including but not limited to evidentiary proof in
4 any administrative or judicial proceeding, and (2) has the same force and effect as
5 the valid original handwritten signature of that person.
6 c. The provisions of this section satisfy the requirements of Civil Code section 1633.5,
7 subdivision (b), in the Uniform Electronic Transaction Act (Civil Code, Division 3, Part
8 2, Title 2.5, beginning with section 1633.1).
9 d. Each party using a digital signature represents that it has undertaken and satisfied
10 the requirements of Government Code section 16.5, subdivision (a), paragraphs (1)
11 through (5), and agrees that each other party may rely upon that representation.
12 e. This Amendment No. 1 is not conditioned upon the parties conducting the
13 transactions under it by electronic means and either party may sign this Amendment
14 No.1 with an original handwritten signature.
15 10. This Amendment No. 1 may be signed in counterparts, each of which is an original, and
16 all of which together constitute this Amendment No. 1.
17 11. The Agreement as amended by this Amendment No. 1 is ratified and continued. All
18 provisions of the Agreement and not amended by this Amendment No. 1 remain in full force and
19 effect.
20 [SIGNATURE PAGE FOLLOWS]
21
22
23
24
25
26
27
28
3
P-21-501
1 The parties are signing this Amendment No. 1 on the date stated in the introductory
2 clause.
3
ClearStar, Inc COUNTY OF FRESNO
4
5
6 Nicolas Dufour, EV General Counsel Manuel Vilanova,
Deputy Director
7 6250 Shiloh Rd, Suite 300
Alpharetta, GA 30005
8
For accounting use only:
9
Org No.: 10100400
10 Account No.: 7295
Fund No.: 0001
11 Subclass No.: 1000
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
4
P-21-501
Exhibit B
Terms of Service
This Terms of Service ("TOS"),which is effective upon mutual execution by the Parties, is by and
between
ClearStar, Inc., D/B/A Employment Screening Resources ("CONTRACTOR") a Georgia Corporation and,
Name of Entity: County of Fresno
Type of Entity: Government Agency
Organized under the laws of: California
hereinafter("COUNTY"). CONTRACTOR and COUNTY may also be referred to individually as a ("Party")
or
collectively as the ("Parties").
1.Contractor Description of Services.
A. Where a permissible purpose exists under applicable law,upon request,CONTRACTOR will provide
COUNTY with Consumer Reports, Investigative Consumer Reports, and/or Consumer Credit
Reports (individually "Report", and collectively"Reports"), as those terms are defined in the Fair
Credit Reporting Act ("FCRA"), and as may be further defined in applicable state statutes.
B. For Services that are ordered Fully Utilizing (as that term is defined below) CONTRACTOR's
automated applicant facing screening processes, CONTRACTOR will provide COUNTY with the
service of administrative fulfillment of COUNTY's obligations to provide the subject of a Report(the
"Consumer") required notices and disclosures and to obtain the Consumer's prior written
authorization. Where instructed to do so by COUNTY, CONTRACTOR will also process adverse
action notices and related documents in the administrative fulfillment of COUNTY'S obligations to
provide such documents to the consumer.The fulfillment of the above will be undertaken so as to
meet the certifications COUNTY makes in the following sections of the TOS:
1. COUNTY's FCRA procurement and use obligations found in Section 4.13. numbers 3,4,and 5;and
2. COUNTY's California Investigative Consumer Report procurement and use obligations found in
Section 4.C.1. letters b, c, d and e, and Sections 4.C.2. and 4.C.3.
C. Where COUNTY places orders not Fully Utilizing CONTRACTOR's automated applicant facing
screening processes,the obligations referred to in Sections 1.13.1 and 1.13.2 are solely borne by
COUNTY without any administrative involvement by CONTRACTOR.
D. "Fully Utilizing" shall mean COUNTY's use of CONTRACTOR's applicant invite system that brings
applicants online to receive disclosures, provide consent, enter demographic data, and where it is
applicable, use of CONTRACTOR's automated online adverse action system.
2. Performance
CONTRACTOR will use its best efforts to provide timely reporting of available information in a manner
consistent with generally accepted standards of business practices in its industry—typically within one
(1)to three (3) business days. However, COUNTY hereby acknowledges that from time to time, Reports
may be delayed due to circumstances beyond the control of CONTRACTOR.
CONTRACTOR is not responsible for delays or failures in performance resulting from acts beyond its
control. Such acts shall include, but shall not be limited to, Acts of God, strikes, lock-outs, riots,
governmental regulations including those superimposed after the fact, fire, system failures, disruption
In communications, earthquakes, and/or other disasters.
P-21-501
3.Termination
If COUNTY receives a notice of termination from CONTRACTOR due to the nonpayment for Services
rendered, COUNTY will have fifteen (15) days to cure the nonpayment and return the account to normal
status.
If COUNTY fails to uphold its legal obligations under Section 4 of the TOS, CONTRACTOR may, at its sole
discretion, discontinue providing Services until COUNTY corrects any failure(s) brought to its attention or
cancel the TOS immediately upon written notice to COUNTY.
4. Pricing and Billing
A.Current Prices and/or Contract Pricing do not include third-party access or processing fees that may
be incurred by CONTRACTOR in connection with the Services rendered.These fees include but are
not limited to; state criminal record access fees; motor vehicle record access fees; county criminal
record court fees; access fees charged by licensing authorities to verify licenses or credentials;
third-party employment history services; third-party education history services; drug screening
and occupational health collection and testing fees; and international in-country acquisition fees
("Third-Party Fees").Such fees are set by third parties and are subject to modification by the source
without prior notice to CONTRACTOR. Third Party Fees are passed through to County without
markup or handling charges of any kind.
B. If County cancels an order before its completion, County is responsible for and will be charged for
any services performed or fees that have been incurred by CONTRACTOR to the point of
cancelation.
5.Certifications and Acknowledgments
The following certifications and service-related acknowledgments are required before Services can be
rendered.
A. CONTRACTOR hereby certifies that:
1. It is a consumer reporting agency ("CRA") as defined in the FCRA, 15 U.S.C. §1681 et. seq., as
amended, that Reports are prepared in accordance with applicable sections of the FCRA, the
Consumer Reporting Employment Clarification Act of 1998 and the Fair and Accurate Credit
Transactions Act of 2003 ("FACT Act") (Public Law 108-159), Section 506 of the Gramm-Leach-
Bliley Act (Public Law 106-102), Drivers Privacy Protection Act. 18 USC § 2721 et. seq, ("DPPA"),
as well as all other applicable laws;
2. It complies with all applicable provisions of the FCRA, and all applicable state and local laws; and
3. It takes appropriate measures to protect the privacy and confidentiality of all personally
identifiable and other confidential Consumer information, including appropriate security
measures to protect information in all CONTRACTOR systems.
4. It retains authorizations, disclosures, Consumer Reports, and re-investigation files on U.S.
residents for a period of five (5) years from the time of the report.
B. Each time a Report is requested, COUNTY hereby certifies, acknowledges and agrees as follows:
1. Reports will be ordered and utilized only for the following permissible purpose under the FCRA:
"Employment Purposes" as that term is defined in the FCRA. See 15 U.S.0 § 1681b(a)(3)(B),
including evaluating a Consumer for employment, promotion, reassignment, or retention as an
employee; and/or work to be performed under contract; and/or working in volunteer positions,
P-21-501
where in each case the Consumer has given prior written permission. COUNTY will not order a
Report for any other purpose.
2. COUNTY will not use information from any Report in violation of any applicable federal or state
equal employment opportunity law, or regulation. COUNTY further agrees to comply with
applicable state and federal laws and regulations currently in place, as well as any updates,
additions to or replacements of those laws and regulations, specifically including the
requirements of the FCRA.
3. Before making any request for a Report from CONTRACTOR, COUNTY will obtain written
permission from the Consumer authorizing procurement of the Report, and will maintain such
permission on file for a minimum of six(6)years.
4. Where COUNTY orders "Consumer Reports," COUNTY certifies that before making any request
for a Consumer Report from CONTRACTOR, a clear and conspicuous disclosure, in a document
consisting solely of the disclosure, has been made in writing to the Consumer explaining that a
Consumer Report may be obtained for employment purposes, as outlined in 15 U.S.C. § 1681b.
5. Where COUNTY orders "Investigative Consumer Reports" from CONTRACTOR, COUNTY certifies
that it shall comply with additional requirements pertaining to Investigative Consumer Reports,
as outlined in 15 U.S.C. § 1681d. Among other things, COUNTY shall clearly and accurately
disclose to the Consumer that an Investigative Consumer Report, including information as to
his/her character,general reputation, personal characteristics,and mode of living,whichever are
applicable, may be obtained. The disclosure shall be made in writing and mailed or otherwise
delivered to the Consumer not later than three (3)days after the date on which the Investigative
Consumer Report was first requested and will include a summary of the Consumer's rights
provided for under 15 U.S.C. §1681g(c). The disclosure shall also include a statement informing
the Consumer of his/her right to submit a written request for additional information, under 15
U.S.C. § 1681d(b), within a reasonable period of time after the receipt by him/her of the
foregoing disclosure. Upon receipt of such request, COUNTY shall disclose in writing to the
Consumer the nature and scope of the investigation,which shall be complete and accurate.The
disclosure must be mailed or otherwise delivered to the Consumer not later than five (5) days
after the date on which the request for additional disclosure was received from the Consumer
or the date the COUNTY first requested the report, whichever is later.
6. COUNTY will comply with its legal responsibilities under the FCRA, requiring an end-user to
provide the Consumer with adverse action notices where information in a Consumer Report, in
whole or in part, results in a determination by the end-user that they intend to take an adverse
action, such as not hiring, retaining, reassigning or promoting the Consumer. The currently
required notices that must be provided before adverse action is taken must include:
a. providing preliminary adverse action notice to the Consumer, along with a copy of
the Report and A Summary of Your Rights under the Fair Credit Reporting Act
prepared by the Consumer Financial Protection Bureau ("CFPB") and made part of
every CONTRACTOR Report,
b. allowing the Consumer a reasonable period of time to consider the information in
the Report and to contact COUNTY or CONTRACTOR if the Consumer wishes to
provide any other information the Consumer would like to have considered,
C. providing CONTRACTOR's contact details which are contained in the Report, and
P-21-501
d. after waiting the appropriate waiting period, providing a final adverse action notice
to the Consumer if a final adverse decision is made pursuant to FCRA section 615, 15
U.S.C. 1681m.
7. COUNTY agrees that if it functions as a recruiter or staffing company placing temporary or
permanent workers, or a company that places individuals to work under contract, COUNTY is
responsible for complying with FCRA adverse action notices, whether or not the COUNTY's
customer provides COUNTY with background check standards, and whether or not COUNTY's
customer sees the Report.
8. COUNTY will review and maintain on file copies of two (2) documents prepared by the CFPB and
provided by CONTRACTOR on its website at www.CONTRACTORcheck.com. These are: 'Notices
to Users of Consumer Reports: Obligations of Users under the FCRA' located at
http://www.Contractorcheck.com/file/CONTRACTOR_N EW-CFPB_Notice-to-Users-of-
ConsumerReports-Obligations-of-Users-Under-the-FCRA.pdf and 'A Summary of Your Rights
Under the FCRA' (intended for the subject of the Report) at
http://www.Contractorcheck.com/file/cfpb_consumer-rights-summary_2018-09.pdf
9. COUNTY acknowledges any person who knowingly and willfully obtains information on a
Consumer from a CRA under false pretenses shall be fined under Title 18 or imprisoned not more
than two (2)years, or both.
10. Criminal and Public Records: COUNTY acknowledges that court record searches are undertaken
only in jurisdictions where the subject has had a physical presence over the last seven (7)years,
or other agreed upon timeframe: (1) as provided by the COUNTY, (2) as provided by the
Consumer, (3) and/or as developed in a Social Security number trace ("Identified
Jurisdiction(s)"). Apart from the identified jurisdictions, CONTRACTOR does not independently
investigate whether other jurisdictions may be appropriate to search and CONTRACTOR does
not conduct court record searches in any jurisdiction outside of those described above.
CONTRACTOR uses the provided name and demographics to search central courthouse records
in each Identified Jurisdiction for felony and available misdemeanor records in accordance with
applicable court rules, federal and/or state laws. CONTRACTOR does not conduct searches at
municipal, justice or city courts. Non-criminal court records may also be found in Reports.
Reportability, in all cases, is determined by CONTRACTOR in its sole discretion.
11. Credit Reports
a. Prior to Access:
COUNTY acknowledges that it is a credit bureau contractual prerequisite that an on-site
inspection is made to confirm that COUNTY is an established business with a legitimate
need for access to Employment Purpose Consumer Credit Reports and that an inspection
fee may apply.
b. State and Local Laws:
COUNTY understands that multiple states and localities restrict the use of credit reports
for public and/or private sector employers unless they have a specific permissible purpose
allowed for under applicable law. COUNTY understands that such restrictions exist and
agrees to comply with and monitor all such credit check laws, as appropriate. COUNTY
shall only order credit reports from CONTRACTOR if it has a permissible purpose under
not just federal law but state and local law as well.
C. Trans Union Credit Reporting Requirements
P-21-501
If credit reports are ordered, COUNTY agrees to accept Trans Union credit reporting
requirements as outlined in Exhibit E — TU Access Security Requirements, which is
attached to Amendment No. 1 to the Agreement and is incorporated by this reference.
12. When placing an order for a Report from Employment Screening Resources through an
integration with a third-party online platform, COUNTY leverages CONTRACTOR's integration
technology to submit the certification shown below simultaneously with each individual order
and directs CONTRACTOR not to begin processing until a copy of the certification is attached to
the order record:
By placing an order for a Consumer Report and/or an Investigative Consumer Report from
Employment Screening Resources, you certify that you have complied with the FCRA and all
applicable law, including as follows:
1. You are requesting the report for an employment purpose as defined in the Fair Credit
Reporting Act. The Consumer has received a clear and conspicuous disclosure in a
document that consists solely of the disclosure stating that a Consumer Report may be
obtained for employment purposes. The Consumer has authorized in writing the
procurement of the Consumer Report that is being ordered.
2. The consumer has received a written disclosure that an Investigative Consumer Report
about him or her may be obtained. The disclosure further stated that an Investigative
Consumer Report will have information bearing on the consumer's character, general
reputation, personal characteristics, and mode of living, whichever are applicable. The
disclosure also stated that the consumer has a right to request additional disclosures as
to the nature and scope of the investigation and that the consumer can exercise this
right by making a written request to End-User within a reasonable period of time after
the receipt of the disclosure. End-User has provided the consumer an up-to-date copy of
the federal notice entitled "A Summary of Your Rights under the Fair Credit Reporting
Act." If a consumer requests information as to the nature and scope of Employment
Screening Resources'investigation,End-User will comply with the requirements set forth
in Section 1681 d of the Fair Credit Reporting Act.
3. In using a Consumer Report or an Investigative Consumer Report for employment
purposes, End-User certifies that information from the report(s)to be provided by
Employment Screening Resources will not be used in violation of any applicable Federal
or State equal employment opportunity law or regulation, or any other applicable law.
4. Where the consumer will be employed in a jurisdiction that requires a conditional offer
of employment, a conditional offer was made prior to initiating this background check
request.
5. Before taking any adverse action based in whole or in part on the Consumer Report,
EndUser will provide to the consumer to whom the Consumer Report relates or authorize
Employment Screening Resources on End-User's behalf to provide to the consumer to
whom the Consumer Report relates:(a)a copy of the Consumer Report;(b)a copy of the
"Summary of Rights Under the Fair Credit Reporting Act" and any applicable state or
local summary of rights; (c) a reasonable opportunity of time to correct any erroneous
information contained in the Consumer Report (and provide Employment Screening
Resources' name and contact information); and if the consumer is ultimately
P-21-501
disqualified, (d) provide an adverse action letter, including the statutorily required
notices identified in 15 U.S.C. ,§ 1681m and applicable state and local law.
13. Verifications:
a. COUNTY acknowledges that domestic verifications including but not limited to
education, employment, licensure and certification are undertaken at the primary
source or designated third-party record keeper(s) and that unless otherwise provided
for, four (4) confirmation attempts will be made during the normal business hours of
the verifying party over four (4) business days. Any verification not completed within
that timeframe will be closed and reported as not performable.
b. COUNTY acknowledges that international verifications are subject to time, process, and
language differences that may result in widely varying turn-around times. Where a
delay is encountered due to additional information being required from the subject,
CONTRACTOR will make those information requests through the CONTRACTOR
Applicant Portal. CONTRACTOR and COUNTY will agree upon COUNTY specific process
and time period for closing international verifications. Any verification not completed
within the agreed-upon time frame will be closed and reported as not performable.
C. TALX Corporation ("TALX"): TALX is the provider of Equifax Verification Solutions
employment information ("EVS") for employers who outsource their employment
verifications function to TALX.Where TALX EVS is received is used in the preparation of
County's Reports its use by County is subject to the following conditions. If products
and services provided to Client include The Work Number reports from TALX
Corporation,a provider of EVS,COUNTY will comply with EVS requirements as identified
in a new Exhibit D—EVS Terms and Conditions, which is attached to Amendment No. 1
to the Agreement and is incorporated by this reference.
d. County will hold TALX and all its agents harmless on account of any expense or damage
arising or resulting from the publishing or other disclosure of EVS information by
County, its employees or agents.
e. County will hold TALX and all its agents harmless on account of any expense or damage
arising or resulting from the publishing or other disclosure of EVS information by
County, its employees or agents outside of Employment Purposes as defined in 5.13.1 of
this Agreement.
f. County recognizes that TALX does not guarantee the accuracy or completeness of EVS
information and County releases TALX and TALX's agents, employees, affiliated credit
reporting agencies and independent contractors from any liability,including negligence,
in connection with the provision of EVS information and from any loss or expense
suffered by County resulting directly or indirectly from use of EVS information. County
covenants not to sue or maintain any claim, cause of action, demand, cross-action,
counterclaim,third-party action or other form of pleading against TALX,TALX's agents,
employees, affiliated credit reporting agencies, or independent contractors arising out
of or relating in any way to the accuracy, validity, or completeness of any EVS
information.
g. TALX may periodically conduct audits of County regarding its compliance with the FCRA
and other certifications in this Agreement.Audits will be conducted by email whenever
P-21-501
possible and will require County to provide documentation as to permissible use of
particular EVS information.
14. COUNTY Accounts
The CONTRACTOR system supports both Primary Accounts and subsidiary accounts ("Sub-
Account(s)") (collectively "Account(s)"). By entering into this TOS, COUNTY will be issued a
single Primary Account for its use to obtain Services, and where COUNTY has entered into the
appropriate addendum to the TOS, one or more Sub-Accounts as follows:
a. Sub-Accounts can be created under the following circumstances.
i. Organizational Requirements: COUNTY has organizational requirements
that are best accommodated by CONTRACTOR creating one or more
SubAccounts under COUNTY's Primary Account.
ii. Internal Use: Where COUNTY wants to separate orders and results by
region,division,district, location, billing code,and/or other similar groupings,
CONTRACTOR will, upon request, provide COUNTY with Sub-Account(s) that
support those requirements.
1. Those having access to either the COUNTY's Primary or internal
SubAccounts must be employees of the COUNTY and/or individuals or
entities under written contract with COUNTY to provide outsourced
human resources management service(s) ("Authorized Agent(s)").
Authorized Agents must be disclosed to CONTRACTOR by COUNTY and
must be vetted by CONTRACTOR before they are provided access to
COUNTY's Accounts.
iii. Related Entities: COUNTY may have one or more related entities that (a)
may be wholly owned by COUNTY, (b) where COUNTY holds majority
control or (c) where COUNTY has executive authority over the related
entity ("Controlled Entity)"). Upon COUNTY's request, a Controlled Entity
may be provided with Services through a dedicated Sub-Account created
for this purpose.
1. Each Controlled Entity must be disclosed to CONTRACTOR by COUNTY
documenting the means of control and must be vetted by
CONTRACTOR before a Sub-Account is created for their use.
2. COUNTY is responsible for providing written notice to the Controlled
Entity Sub-Account users of the end-user legal obligations found in
Section 5.13 of the TOS,along with copies of the documents referenced
therein.
iv. Unrelated Entitles: Where COUNTY has a written contract with one or
more entities that COUNTY does not own or control ("Unrelated Entity")
SubAccounts can be created as follows:
1. Where COUNTY is engaged in recruiting, staffing or contracted
services ("Staffing Firm") and either (a) places Consumers to perform
contracted services, or(b)where COUNTY is pursuing the Consumer's
permanent or temporary placement with an Unrelated Entity
("Provided Worker(s)") a Sub-Account may be created for that
purpose.The Unrelated Entity will not have access to the Sub-Account
P-21-501
but may receive a copy of a Provided Worker's Report as is provided
for in the Authorization and Consent to Background Investigation
signed by the Consumer.
2. Where COUNTY provides business management services under
contract with an Unrelated Entity, a Sub-Account may be created for
that purpose where both COUNTY and the Unrelated Entity may
procure and view completed Reports. Prior to access being granted,
each COUNTYmanaged Unrelated Entity must enter into an End-User
Services Agreement with CONTRACTOR.
b. Compliance
Where a Staffing Firm procures Consumer Reports from CONTRACTOR and places
Provided Workers, the Staffing Firm will be responsible for the End-User
obligations found in Section 5.13.5 of this Agreement. In all other cases, the
employer of record that procures Reports will be responsible for those
obligations.
c. Billing
Where COUNTY wants CONTRACTOR to directly bill a Controlled or Unrelated
Entity with direct Account access for Services rendered under those Accounts,
COUNTY will become responsible for and will make payment to CONTRACTOR for
all amounts due, once such account becomes sixty (60) days in arrears.
15. SSN Trace
COUNTY acknowledges that SSN Trace results are not part of the Consumer Reports procured under
this TOS, and certifies it will not use trace results as the basis for any employment decisions or for
taking any adverse action.The SSN Trace service associates a given name and SSN number against
databases assembled from private-sector sources,and serves primarily as a locator tool to establish
likely jurisdictions to search for public records. The inclusion of information from the SSN Trace is
only provided to confirm that the service was performed.
C. Special Requirements for Employers Who Perform Background Checks in California:
As COUNTY is located in the State of California, if COUNTY's request for and/or use of Reports pertains
to a California resident or worker, COUNTY certifies as follows:
1. Before procuring or causing an Investigative Consumer Report to be made,that all of the following
apply:
a. That COUNTY's permissible purpose for obtaining such an Investigative Consumer Report is an
Employment Purpose, as defined in Section 5.13.1 of this TOS. If there is a change in purpose,
COUNTY must notify CONTRACTOR prior to obtaining any Investigative Consumer Report based
on those changed permissible purposes.
b. That COUNTY has provided the Consumer with a clear and conspicuous disclosure in writing at
any time before the report is procured or caused to be procured in a document that consists
solely of the disclosure that:
i. An Investigative Consumer Report may be obtained,
ii. The permissible purpose is identified,
iii. The Investigative Consumer Report may include information on the Consumer's
character, general reputation, personal characteristics and mode of living,
P-21-501
iv. Identifies the name, address and telephone number and website of the agency
conducting the investigation, and
v. Notifies the Consumer of the nature and scope of the investigation requested, including
a summary of the provisions of Civil Code section 1786.22, relating to a Consumer's rights
to review their files.
c. That the Consumer has authorized the procurement of the report in writing.
d. COUNTY has provided a check-off box on appropriate paperwork so that the Consumer may
request a copy of any report that is ordered.
e. Upon request of the Consumer, COUNTY will provide them with a copy of their Investigative
Consumer Report, either directly,or through a contract with another party. If such a request has
been made by a Consumer, COUNTY will send a copy of the Investigative Consumer Report to
the Consumer within three (3) business days of the date that the Investigative Consumer Report
is provided to COUNTY.
2. COUNTY will provide a check-off box on the disclosure or a separate consent form so that the
Consumer may request a copy of the Investigative Consumer Report,and will provide a copy of such
report if so requested (directly or through a contract with another party). COUNTY will send a copy
of the Investigative Consumer Report to the Consumer within three (3) business days of the date
that the Investigative Consumer Report is provided to COUNTY.
3. In the event COUNTY takes an adverse action under circumstances in which a Report regarding the
Consumer was obtained, COUNTY shall so advise the Consumer, supply the name and address of
the CRA, and provide the Consumer a written notice of rights under California law.
D. Special Circumstances and Limitations for Employers Who Perform International Background Checks
Where Report subjects reside outside of the United States, CONTRACTOR warrants that information
obtained and used in the preparation of Reports is obtained legally from authorized sources in
accordance with prevailing data protection and data transfer laws, and that CONTRACTOR will provide
the subject and/or any authorized information source with all notice,disclosure,or consent documents
that are legally required in the subject's country of residence, in connection with obtaining the
information not employment law in general. Where County orders Reports on subjects that are not
United States residents that will be employed in a facility outside of the United States, CONTRACTOR
is not responsible for any international County obligations related to obtaining and using Reports for
employment purposes including but not limited to where County sought or obtained a Report related
to a person who was not a legally permissible subject of the Report; or where a decision by County not
to hire, or other employment decision based on a Report, was unlawful or failed to follow legally
required processes including any required notice, disclosure, or consent related to the employment
decision.
E. Additional Requirements for Motor Vehicle Records (MVRs) and Driving Records COUNTY hereby
certifies that Motor Vehicle Records and/or Driving Records(MVRs)shall only be ordered in compliance
with the Driver Privacy Protection Act ("DPPA" at 18 U.S.C. § 2721 et seq.) and any applicable laws.
COUNTY further certifies that no MVRs shall be ordered without first obtaining the written consent of
the Consumer to obtain "driving records," evidence of which shall be transmitted to CONTRACTOR in
the form of the Consumer's signed release authorization form. COUNTY also certifies that it will use
this information only in the normal course of business to obtain lawful information relating to the
holder of a commercial driver's license or to verify information provided by an applicant or employee.
P-21-501
COUNTY shall not transmit any data contained in the resulting MVR via the public internet, electronic
mail, or any other unsecured means.
F. COUNTY acknowledges and agrees to the following provisions regarding the preparation and use of
Reports:
1. CONTRACTOR does not render any opinions as to whether a person should be employed.COUNTY
is the sole decision-maker concerning fitness and eligibility for employment.
2. CONTRACTOR retrieves records based on identifying information provided by COUNTY and/or the
Consumer, and does not independently verify the identifying information submitted to
CONTRACTOR is actually true and correct. In other words, CONTRACTOR is not in the business of
"verifying the Consumer's true identity."
3. Although CONTRACTOR takes steps to ensure all of its procedures are in compliance with federal
state laws, rules and regulations, and although CONTRACTOR will from time to time consult with
COUNTY on industry best practices, CONTRACTOR does not offer or provide legal advice to its
clients and does not function as legal counsel. COUNTY understands that it is fully responsible for
all aspects of its own legal compliance and that it has not ultimately relied on CONTRACTOR for
any legal or compliance advice.
4. COUNTY acknowledges that information divulged by the Consumer to CONTRACTOR may not
result in specific inquiries being undertaken absent COUNTY's preexisting instructions on how to
proceed in these cases. In addition, even where CONTRACTOR acts upon such instructions and
specific inquiries are made,the results may not be reportable due to legal restrictions on reporting
adverse information.
5. Reports provided by CONTRACTOR to COUNTY are considered confidential by law. Upon receipt,
COUNTY shall treat all Reports, and any other documentation received from CONTRACTOR, in
strict confidence, and shall not reveal or make such information accessible in any manner,
whatsoever, to any third-party except as otherwise permitted by law or with the Consumer's
written consent. Such information shall be maintained in a confidential manner to which access
is restricted. Only those employees of COUNTY with a legitimate need to view and evaluate the
Report shall have access to it.COUNTY shall supply to CONTRACTOR the name and phone number
of a contact person or persons with whom CONTRACTOR may discuss the contents of Reports
furnished to COUNTY. COUNTY shall dispose of Reports and any other documents containing
personally identifiable information received from CONTRACTOR in accordance with the FTC Rule
on disposal. https://www.ftc.gov/tipsadvice/business-center/guidance/disposing-consumer-
report-information-rule-tells-how
6. COUNTY acknowledges that CONTRACTOR is legally required to identify and vet its End-Users
before Reports are procured and that any of the status changes found in this paragraph will
require CONTRACTOR to re-identify and re-vet the changed entity. Therefore, COUNTY shall
immediately notify CONTRACTOR in any of the following events: change in ownership of COUNTY
of over fifty percent (50%), a merger, or a change in name or change in the nature of COUNTY's
business that in any way affects COUNTY's rights to request Reports.
G. CONTRACTOR Access Security Requirements.
CONTRACTOR recognizes its obligation to support and implement policies that protect the confidential
nature of the information in our database and assure respect for Consumers' rights to privacy. Only
companies who are approved members of our service and have a permissible purpose for obtaining
Reports are permitted access to the CONTRACTOR system and its underlying information.
P-21-501
It is a requirement that all CONTRACTOR clients take precautions to secure any system or device used
to access CONTRACTOR's Reports from unauthorized access.To that end, the following requirements
have been established for the protection of everyone, including COUNTY and Consumers:
1. CONTRACTOR usernames and passwords must be protected in such a way that this sensitive
information is known only to key personnel. Under no circumstances shall unauthorized persons
have knowledge of CONTRACTOR usernames and passwords.The information shall not be posted
in any manner within COUNTY's facility.
2. It is COUNTY's responsibility to protect usernames and passwords to the CONTRACTOR website
or online system, and COUNTY shall take reasonable measures to prevent the unauthorized use
or breach of data,sharing or display of any CONTRACTOR passwords,and will notify CONTRACTOR
immediately if unauthorized use is discovered, or if an employee is no longer authorized to utilize
a CONTRACTOR supplied password.
3. CONTRACTOR usernames and passwords shall not be released bytelephone to an unknown caller,
even if the caller claims to be a CONTRACTOR employee. CONTRACTOR will never call COUNTY
and ask for its password.
4. If applicable, any system access software COUNTY may use, whether developed by COUNTY or
purchased from a third-party vendor, must have CONTRACTOR usernames and passwords hidden
or embedded so that the password is known only to the person to whom it was issued and
authorized supervisory personnel. Each user of COUNTY's system access software must then be
assigned unique login passwords.
5. COUNTY will maintain a commercially adequate firewall and anti-virus protection at all times.
6. Any terminal devices or computers used to obtain Reports from CONTRACTOR shall be placed in
a secure location within COUNTY's facility where they cannot be viewed by unauthorized persons.
access to the devices shall be restricted from unauthorized persons using customary information
security standards.
7. Each person requesting Reports must log in only under their own username and password, so
CONTRACTOR knows who requested each report.
8. Any devices/systems used to obtain Reports should be turned off and locked after regular
business hours, when unattended by COUNTY's key personnel.
9. Hardcopy Reports shall be secured within COUNTY's facility and protected against release or
disclosure to unauthorized persons.
10. COUNTY will dispose of Reports in hardcopy or electronic form in a manner rendering information
inaccessible, unreadable, and unrecoverable per current regulations of the FTC. The following
methods of destruction are permitted: 1) burning, pulverizing, or shredding, 2) destroying or
erasing or overwriting electronic files so they cannot be read or restored, and/or 3) after
conducting due diligence, hiring a document destruction company. Further information about the
requirements for proper disposal of Reports and related information is available online at
www.ftc.gov.
11. COUNTY certifies that it shall implement and maintain a comprehensive information security
program written in one or more readily accessible parts, and that contains administrative,
technical, and physical safeguards that are appropriate to COUNTY's size and complexity, the
nature and scope of its activities, and the sensitivity of the information provided to the COUNTY
P-21-501
by CONTRACTOR,and that such safeguards shall be reasonably designed to(i) ensure the security
and confidentiality of the information and Services provided by CONTRACTOR, (ii) protect against
any anticipated threats or hazards to the security or integrity of such information,and (iii) protect
against unauthorized access to or use of such information that could result in substantial harm or
inconvenience to any consumer.
H. COUNTY certifies that each time it orders a Report, it is reaffirming the above Certifications and
Acknowledgements.
7.Assignment.
County may not assign any of its rights or delegate any of its obligations under this Agreement without
the prior written consent of CONTRACTOR; provided, however, that County may assign its rights or
delegate its duties without the prior written consent of CONTRACTOR if such assignment or delegation
is to: (i) an affiliate of County; (ii) a successor of County by consolidation, merger or operation of law;
or (iii) a purchaser of all or substantially all of the assigning or delegating County's assets. Any
purported assignment or delegation in violation of this Section 8 is void.
P-21-501 Exhibit CLEARST R
Package Price Schedule:
Employment Verification $8.81
Education Verification $8.81
Employment Credit Report $9.91
Professional Reference $11.02
Trace for Streamline $0.00
National Federal Court Criminal Record $23.96
WebCCF - 7 Panel Urinalysis $38.56
Personal Reference $11.02
National Federal District Court Civil Record $16.52
Streamline National Criminal - All Names $5.51
CBSV - Consent Based Social Security $8.81
Bankruptcy, Liens & Judgements Search $7.71
County Court Criminal Record Check $5.51
County Civil Court Record Search - WC $13.22
Driving Record Check $3.30
Statewide Criminal Record Checks $11.02
Validation - Statewide Repository $0.00
Validation - County Court Criminal $0.00
Package Services
Pkg Service No Service Description Charge
SLRT 12958 ESR BNDL 1283 $31 90
Pkg Components: Service No Service Description Charge Limit Exceeded Chg
SLRT_00010 County Court Criminal Record Check $0.00 0 $0.00
SLRT_00016 Employment Verification $0.00 1 $8.81
SLRT 00017 Education Verification $8.81 1 $8 81
SLRT 00075 National Federal Court Criminal Record Che $0.00 0 $0.00
SLRT 11467 Streamline National Criminal All Names $5-51 1 $5 51
Pkg Service No Service Description Charge
SLRT_13455 ESR BNDL 2462 $31.90
Pkg Components: Service No Service Description Charge Limit Exceeded Chg
SLRT_00010 County Court Criminal Record Check $0.00 0 $0.00
SLRT_00015 Driving Record Check $3.30 1 $3.30
SLRT_00016 Employment Verification $0.00 1 $8.81
SLRT 00017 Education Verification $8.81 1 $8.81
- SLRT_00021 Employment Credit Report $9.91 $9.91
SLRT 00075 National Federal Court Criminal Record Che $0.00 0 $0.00
- SLRT_11467 Streamline National Criminal All Names is $5.51 MEL. $5.51
Page 1
Copyright 2023 C1earStar,Inc.
Unless otherwise noted,prices quoted do not include any applicable access fees charged by courts,law enforcement agencies,state departments of motor vehicles,
schools,employers,third-parry collection sites,or other information sources. Client is responsible for any and all applicable access fees. All pricing,access fees,
service offerings,service availability and service descriptions are subject to change without prior notice. Prior notice will be provided whenever feasible. Federal,
state and local laws may restrict your use of the information provided. Federal,state and local laws may also restrict our reporting of certain information,including
limitations on the type of information and age of information reported.
P-21-501 Exhibit CLEARST R
Pkg Service No Service Description Charge
SLRT 14091 ESR BNDL 1571 $31.90
Pkg Components: Service No Service Description Charge Limit Exceeded Chg
SLRT_00010 County Court Criminal Record Check $0.00 0 $0.00
SLRT_00015 Driving Record Check $3.30 1 $3.30
SLRT_00016 Employment Verification $0.00 1 $8.81
SLRT 00017 Education Verification $8.81 1 $8.81
SLRT_00021 Employment Credit Report $9.91 1 $9.91
SLRT 00037 Professional Reference $11.02 1 $11.02
SLRT 00075 National Federal Court Criminal Record Che $0.00 0 $0.00
SLRT_10023 Personal Reference $11.02 1 $11.02
SLRT 11467 Streamline National Criminal All Names $5.51 1 $5.51
Pkg Service No Service Description Charge
SLRT 14092 ESR BNDL 1180 $0.00
Pkg Components: Service No Service Description Charge Limit Exceeded Chg
SLRT_00010 County Court Criminal Record Check $0.00 0 $0.00
SLRT_00011 County Civil Court Record Search-1N1C $13.22 1 $'13.22
SLRT_00015 Driving Record Check $3.30 1 $3.30
SLRT 00017 Education Verification $8.81 1 $8.81
SLRT_00021 Employment Credit Report $9.91 1 $9.91
SLRT 00037 Professional Reference $11.02 1 $11.02
SLRT 00056 Trace for Streamline $0.00 1 $0.00
SLRT_10023 Personal Reference $11.02 1 $11.02
SLRT_11723 CBSV-Consent Based Social Security Num $8.81 1 $8.81
SLRT_12417 Bankruptcy,Liens&Judgments Search $7.71 1 $7.71
Pkg Service No Service Description Charge
SLRT 14093 ESR BNDL 0626 $31.90
SLRT_00010 County Court Criminal Record Check $0.00 0 $0.00
SLRT_00011 County Civil Court Record Search-1 N IC $13.22 1 $13.22
SLRT_00021 Employment Credit Report $9.91 1 $9.91
SLRT 00056 Trace for Streamline $0.00 1 $0.00
SLRT 00075 National Federal Court Criminal Record Che $0.00 0 $0.00
Pkg Service No Service Description Pre-Selected 1 Visible Charge
SLRT_14094 ESR BNDL 2884 WY y $31.90
Pkg Components: Service No Service Description Charge Limit Exceeded Chg
SLRT_00010 County Court Criminal Record Check $0.00 0 $0.00
SLRT_00011 County Civil Court Record Search-1N1C $13.22 1 $13.22
SLRT_00021 Employment Credit Report $9.91 1 $9.91
SLRT 00056 Trace for Streamline $0.00 1 $0.00
SLRT_00075 National Federal Court Criminal Record Che $0.00 0 $0.00
- SLRT_12417 Bankruptcy,Liens&Judgments Search $7.71 1 $7.71
Page 2
Copyright 2023 C1earStar,Inc.
Unless otherwise noted,prices quoted do not include any applicable access fees charged by courts,law enforcement agencies,state departments of motor vehicles,
schools,employers,third-parry collection sites,or other information sources. Client is responsible for any and all applicable access fees. All pricing,access fees,
service offerings,service availability and service descriptions are subject to change without prior notice. Prior notice will be provided whenever feasible. Federal,
state and local laws may restrict your use of the information provided. Federal,state and local laws may also restrict our reporting of certain information,including
limitations on the type of information and age of information reported.
P-21-501 Exhibit C CLEAR
Surcharges incurred by ClearStar in data collection are passed onto client at cost and are not included in the pricing
schedule above. This pricing offer is valid for 30 days from the date of this proposal.
ASSUMPTIONS:
• When the results of the National Criminal Database Check reflect a record or flag,the result must be verified at the source. ClearStar estimates
this could occur in approximately 14%of National Criminal Database searches. The demographic profile of your company's applicants/employees
might be different than the national average and result in a different record rate. Your company should be prepared to have a County Criminal
search added to a background screen when the National Criminal search returns a record and when, if a County Criminal, State Criminal and/or
National Federal Criminal was already in the package,the record returned from the National Criminal search is in a different county than covered
by the County Criminal, State Criminal and/or National Federal search was selected for. The charge for this verification is additional and not
included in any package pricing.
• Assume 7-year history on criminal records unless source provides more or less as a standard.
• Compliance Best Practices for requesting All Names All Statewide Level searches or All Names All County Level searches—ClearStar will order
the statewide search where available and will only order the counties in jurisdictions where there is no statewide available. For example, for a GA
resident, they want the GCIC and all the GA counties. Since this could result in the reporting of duplicate records (which would take us out of
compliance per recent FTC and CFPB enforcement actions), ClearStar will not be offering a duplication of products (which should help reduce
your screening fees per applicant). If a customer requests all names all statewide searches and all names all counties, we would order the
statewide where available, and we would only order the counties in jurisdictions where there is no statewide available.
Page 3
Copyright 2023 ClearStar,Inc.
Unless otherwise noted,prices quoted do not include any applicable access fees charged by courts,law enforcement agencies,state departments of motor vehicles,
schools,employers,third-parry collection sites,or other information sources. Client is responsible for any and all applicable access fees. All pricing,access fees,
service offerings,service availability and service descriptions are subject to change without prior notice. Prior notice will be provided whenever feasible. Federal,
state and local laws may restrict your use of the information provided. Federal,state and local laws may also restrict our reporting of certain information,including
limitations on the type of information and age of information reported.
P-21-501
Exhibit D
EVS Terms and Conditions
EVS Employment Information (as defined below) will be received by COUNTY through Clearstar
subject to the following conditions (the "Terms and Conditions"):
1. Any information services and data originating from EVS (the "EVS Employment
Information") will be requested only for Client's exclusive use and held in strict
confidence except to the extent that disclosure to others is required or permitted by
law. Only designated representatives of Client will request EVS Employment
Information on Client's employees, and employees will be forbidden to obtain EVS
Employment Information on themselves, associates or any other persons except in
the exercise of their official duties. Client will not disclose EVS Employment
Information to the subject of the EVS Employment Information except as permitted or
required by law, but will refer the subject to EVS.
2. Client will be charged for the EVS Employment Information by CRA, which is
responsible for paying EVS for the EVS Employment Information; provided, however,
should the underlying relationship between Client and CRA terminate at any time
during the term of this Agreement, charges for the EVS Employment Information will
be invoiced to Client, and Client will be solely responsible to pay EVS directly.
3. Fair Credit Reporting Act Certification. Client certifies that it will order EVS
Employment Information, which is a consumer report as defined by the federal Fair
Credit Reporting Act, 15 U.S.C. 1681 et seq. ("FCRA"), only when Client intends to
use the EVS Employment Information: (a) in accordance with the FCRA and all state
law counterparts; and for the following permissible purpose:for employment purposes;
provided, however, that Client certifies that, before ordering EVS Employment
Information to be used in connection with employment purposes, it will clearly and
conspicuously disclose to the Consumer, in a written document consisting solely of
the disclosure, that Client may obtain EVS Employment Information for employment
purposes, and will also obtain the Consumer's written authorization to obtain or
procure EVS Employment Information relating to that Consumer. Client further certifies
that it will not take adverse action against the Consumer based in whole or in part upon
the EVS Employment Information without first providing to the Consumer to whom the
EVS Employment Information relates a copy of the EVS Employment Information and
a written description of the Consumer's rights as prescribed by the Consumer Financial
Protection Bureau ("CFPB") under Section 609(c)(3) of the FCRA, and also will not
use any EVS Employment Information in violation of any applicable federal or state
equal employment opportunity law or regulation. Client will use EVS Employment
Information ordered under this Agreement for the foregoing purpose and for no other
purpose. Client acknowledges that it has received from ClearStar a copy of the
consumer rights summary as prescribed by the CFPB.
P-21-501
It is recognized and understood that the FCRA provides that anyone "who knowingly
and willfully obtains information on a consumer from a consumer reporting agency
under false pretenses shall be fined under Title 18, United States Code, imprisoned
for not more than two (2)years, or both." EVS may periodically conduct audits of Client
regarding its compliance with the FCRA and other certifications in this Agreement.
Audits will be conducted by email whenever possible and will require Client to provide
documentation as to permissible use of particular EVS Employment Information. In
addition, ClearStar will be required to provide documentation indicating CRA validated
the legitimacy of Client prior to contract execution and will also provide a copy of
agreement between ClearStar and Client. Client gives its consent to EVS to conduct
such audits and agrees that any failure to cooperate fully and promptly in the conduct
of any audit, or Client's material breach of this Agreement, constitute grounds for
immediate suspension of the Service or termination of this Agreement. If EVS
terminates this Agreement due to the conditions in the preceding sentence, Client (i)
unconditionally releases and agrees to hold EVS harmless and indemnify it from and
against any and all liabilities of whatever kind or nature that may arise from or relate
to such termination, and (ii) covenants it will not assert any claim or cause of action of
any kind or nature against EVS in connection with such termination.
Client will comply with the applicable provisions of the FCRA, Federal Equal Credit
Opportunity Act and any amendments to it, all state law counterparts of them, and all
applicable regulations promulgated under any of them including, without limitation, any
provisions requiring adverse action notification to the Consumer.
4. Data Security. This Section 6 applies to any means through which Client orders or
accesses EVS Employment Information including, without limitation, system-to-
system, personal computer or the Internet. The term "Authorized User" means an
employee of Client that Client has authorized to order the EVS Employment
Information and who is trained on Client's obligations under this Agreement with
respect to the ordering and use of the EVS Employment Information, including Client's
FCRA and other obligations with respect to the access and use of consumer reports.
a. With respect to handling the EVS Employment Information, Client agrees to:
• ensure that only Authorized Users can order or have access to EVS
Employment Information,
• ensure that Authorized Users do not order EVS Employment Information
for personal reasons or provide them to any third party except as permitted
by this Agreement,
• inform Authorized Users that unauthorized access to consumer reports
may subject them to civil and criminal liability under the FCRA punishable
by fines and imprisonment,
• ensure that all devices used by Client to order or access the EVS
Employment Information are placed in a secure location and 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,
P-21-501
• take all necessary measures to prevent unauthorized ordering of EVS
Employment Information by any persons other than Authorized Users for
permissible purposes, including, without limitation,
• limiting the knowledge of the Client security codes, member numbers, User
IDs, and any passwords Client may use (collectively, "Security
Information"), to those individuals with a need to know, (b) changing
Client's user passwords at least every ninety (90) days, or sooner if an
Authorized User is no longer responsible for accessing the EVS
Employment Information, or if Client suspects an unauthorized person has
learned the password, and (c) using all security features in the software
and hardware Client uses to order EVS Employment Information,
• in no event access the EVS Employment Information via any hand-held
wireless communication device, including but not limited to, web enabled
cell phones, interactive wireless pagers, personal digital assistants(PDAs),
mobile data terminals, and portable data terminals,
• not use non-company owned assets such as 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, and
DVDs) to store EVS Employment Information.
• encrypt EVS Employment Information when it is not in use and with respect
to all printed EVS Employment Information store in a secure, locked
container when not in use and 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,
(i) if Client sends,transfers or ships any EVS Employment Information,
encrypt the EVS Employment Information using the following
minimum standards, which standards may be modified from time to
time by EVS: Advanced Encryption Standard (AES), minimum 128-
bit key or Triple Data Encryption Standard (31DES), minimum 168-
bit key encrypted algorithms,
(ii) monitor compliance with the obligations of this Section 6, and
immediately notify EVS if Client suspects or knows of any
unauthorized access or attempt to access the EVS Employment
Information, including, without limitation, a review of EVS invoices
for the purpose of detecting any unauthorized activity,
• not ship hardware or software between Client's locations or to third parties
without deleting all Security Information and any EVS Employment
Information,
• if Client uses a Service Provider to establish access to EVS Employment
Information, be responsible for the Service Provider's use of Security
Information, and ensure the Service Provider safeguards Security
Information through the use of security requirements that are no less
stringent than those applicable to Client under this Section 6,
P-21-501
• use commercially reasonable efforts to assure data security when
disposing of any consumer information or record obtained from the EVS
Employment Information. Such efforts must include the use of those
procedures issued by the federal regulatory agency charged with oversight
of Client's activities (e.g. the Consumer Financial Protection Bureau, the
applicable banking or credit union regulator) applicable to the disposal of
consumer report information or records.
• use commercially reasonable efforts to secure EVS Employment
Information when stored on servers, subject to the following requirements:
(i) servers storing EVS Employment Information must be separated from
the internet or other public networks by firewalls which are managed and
configured to meet industry accepted best practices, (ii) protect EVS
Employment Information through multiple layers of network security,
including but not limited to, industry-recognized firewalls, routers, and
intrusion detection/prevention devices (IDS/IPS), (iii) secure access (both
physical and network) to systems storing EVS Employment Information,
which must include authentication and passwords that are changed at least
every ninety (90) days; and (iv) all servers must be kept current and
patched on a timely basis with appropriate security specific system
patches, as they are available,
• not allow EVS Employment Information to be displayed via the internet
unless utilizing, at a minimum, a three-tier architecture configured in
accordance with industry best practices, and
• 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 EVS.
(b) If EVS reasonably believes that has violated this Section 6, EVS may, in addition
to any other remedy authorized by this Agreement, with reasonable advance
written notice to Client and at EVS's sole expense, conduct, or have a third party
conduct on its behalf, an audit of Client's network security systems, facilities,
practices and procedures to the extent EVS reasonably deems necessary,
including an on-site inspection, to evaluate Client's compliance with the data
security requirements of this Section 6.
5. Client certifies that it has received and read the"Notice to Users of Consumer Reports,
Obligations of Users" which explains Client's obligations under the FCRA as a user of
consumer information.
P-21-501
Exhibit E
TU Access Security Requirements
Access Security Requirements
It is a requirement that all Clients and End-Users take precautions to secure any system or
device used to access consumer credit information. To that end, the following requirements
have been established:
1. Implement Strong Access Control Measures
1.1 Client account numbers and passwords must be protected in such a way that this
sensitive information is known only to key personnel. Under no circumstances
should unauthorized persons have knowledge of passwords. The information
should not be posted in any manner within Client's facility. Do not provide
account numbers, Subscriber Codes or passwords to anyone.
1.2 Any system access software used, whether developed by Client's company or
purchased from a third party vendor, must have account numbers and passwords
"hidden" or embedded so that the password is known only to supervisory
personnel.
1.3 Each user of Client's system access software must then be assigned unique log-
on passwords. Develop strong passwords that are:
• Not easily guessable (i.e. user name or company name, repeating numbers
and letters or consecutive numbers and letters)
• obtain a minimum of eight (8) alpha/numeric characters for standard user
accounts
• Implement password protected screensavers with a maximum fifteen (15)
minute timeout to protect unattended workstations.
• Active logins to credit information systems must be configured with a 30
minute inactive session, timeout.
1.4 Client must request that account number, Subscriber Code and/or password be
changed immediately when:
• Any system access software is replaced by another system access software
or
• is no longer used;
• The hardware on which the software resides is upgraded, changed or
disposed of.
1.5 Account numbers and passwords are not to be discussed by telephone to any
unknown caller, even if the caller claims to be an employee.
1.6 Create a separate, unique user ID's for each user to enable individual
authentication and accountability for access to the credit reporting agency's
P-21-501
infrastructure. Each user of the system access software must also have a unique
logon password.
1.7 Ensure that user IDs are not shared and that no Peer-to-Peer file sharing is
enabled on those users' profiles.
1.8 The ability to obtain credit information must be restricted to a few key personnel.
1.9 Ensure that Client and Client's employees do not access personal credit reports
or those reports of any family member(s) or friend(s) unless it is in connection
with a Permissible Purpose under your agreement with ClearStar.
1.10 Implement a process to terminate access rights immediately for users who
access credit reporting agency credit information when those users are
terminated or when they have a change in their job tasks and no longer require
access to that credit information.
1.11 Any terminal devices used to obtain credit information should be placed in a
secure location within Client's facility. Access to the devices should be difficult
for unauthorized persons.
1.12 Any devices/systems used to obtain consumer reports should be turned off after
normal business hours, when unattended by key personnel.
1.13 Hard copies and electronic files of consumer reports are to be secured within
Client's facility and protected against release or disclosure to unauthorized
persons.
1.14 Hard copy consumer reports are to be shredded or destroyed, rendered
unreadable, when no longer needed and when it is permitted to do so by
applicable regulations(s).
1.15 Electronic files containing consumer report data and/or information will be
completely erased or rendered unreadable when no longer needed and when
destruction is permitted by applicable regulation(s)
2. Maintain a Vulnerability Management Program
2.1 Keep operating system(s), Firewalls, Routers, servers, personal computers
(laptop and desktop) and all other systems current with appropriate system
patches and updates.
2.2 Configure infrastructure such as Firewalls, Routers, personal computers, and
similar components to industry best security practices, including disabling
unnecessary services or features, removing or changing default passwords, IDs
and sample files/programs, and enabling the most secure configuration features
to avoid unnecessary risks.
2.3 Implement and follow current best security practices for Computer Virus
detection scanning services and procedures:
• Use, implement and maintain a current, commercially available Computer
Virus detection/scanning product on all computers, systems and networks.
P-21-501
• If Client suspects an actual or potential virus, immediately cease accessing
the system and do not resume the inquiry process until the virus has been
eliminated.
• Keep anti-virus software up-to-date by vigilantly checking or configuring auto
updates and installing new virus definition files.
2.4 Implement and follow current best security practices for computer anti-Spyware
scanning services and procedures:
• Use, implement and maintain a current, commercially available computer
anti-Spyware scanning product on all computers, systems and networks.
• If Client suspects actual or potential Spyware, immediately cease accessing
the system and do not resume the inquiry process until the problem has been
resolved and eliminated.
• Keep anti-Spyware software up-to-date by vigilantly checking or configuring
auto updates and installing new anti-Spyware definition files. If Client's
computers have unfiltered or unblocked access to the Internet (which
prevents access to some known problematic sites), then it is recommended
that anti-Spyware scans be completed more frequently than weekly.
3. Protect Data
3.1 Develop and follow procedures to ensure that data is protected throughout its
entire information lifecycle (from creation, transformation, use, storage and
secure destruction) regardless of the media used to store the data (i.e., tape,
disk, paper, etc.)
3.2 All credit reporting agency data is classified as confidential and must be secured
to this requirement at a minimum.
3.3 Procedures for transmission, disclosure, storage, destruction and any other
information modalities or media should address all aspects of the Iifecycle of the
information.
3.4 Only open email attachments and links from trusted sources and after verifying
legitimacy.
3.5 The FACTA Disposal Rules requires implementation of appropriate measures to
dispose of any sensitive information related to consumer credit reports and
records that will protect against unauthorized access or use of that information.