Memorandum

City of Lawrence

Legal Department

TO:	David L. Corliss, City Manager Cynthia Boecker, Asst. City Manager Diane Stoddard, Asst. City Manager Jonathan Douglas, Asst. to the City Manager
FROM:	Toni Ramirez Wheeler, Director of Legal Services R. Scott Wagner, Management Analyst
CC:	Ed Mullins, Director – Finance Department Heidi Nelson, Asst. Director – Finance Department Dave Wagner, Director – Dept. of Utilities
Date:	October 16, 2008
RE:	Identity Theft Prevention Program for City Utility & CDBG Accounts

The Fair and Accurate Credit Transactions Act of 2003 (FACTA) requires all creditors to develop and implement a policy by November 1, 2008, that detects, prevents and mitigates identity theft in connection with the creditor’s accounts.  The Federal Trade Commission (FTC) has determined that utilities, including municipal utilities, are creditors under FACTA and must comply with the FTC’s final rules and guidelines, commonly known as the Red Flag Rule.  The City’s Community Development Block Grant (CDBG) program also qualifies the City as a creditor under the FTC guidelines and the City should have an identity theft policy tailored for the CDBG program.  A brief summary of these rules and the types of accounts that must be covered are attached.  Red Flag Rules Summary

The proposed program for the City of Lawrence utility accounts has been developed by the Finance Department and is based on policies adopted by other municipalities in the state.  Resolution 6807 adopts the Utility Account program. 

The proposed CDBG program was developed by City staff based upon information provided at a recent City Attorneys Association Meeting.  Resolution No. 6709 contains the CDBG Red Flag program policy.

Action Requested:

Staff recommends the City Commission adopt Resolution 6807  and Resolution 6809, as appropriate.  Identify Theft Prevention Program for Utility Accounts Identity Theft Prevention Program for CDBG Accounts