Just found front page news in the local paper this morning:
Hiring Probe

This problem in Bozeman was reported in national news this summer when applicants finally brought it to pubic attention.

"...The police department began using that form in October 2007...."

..."The city began asking job applicants in every department for their online information in June 2008."

"A few times, when an incorrect password for a few candidates was discovered, the candidates were pulled from the room and asked to sit with the official and try to remember their passwords, the report states."