EXHIBIT A

STATEMENT OF WORK

Note: Text appearing in orange is for bidding purposes only and will not appear in the final agreement.

1. SERVICE OVERVIEW

A. [Insert Contractor’s Name] (Contractor) agrees to provide to the Department of Cannabis Control (DCC) the services described herein. The contractor shall provide debt collection services for the collection of delinquent fees, fines and penalties, and cost recoveries. The contractor shall collect the delinquent fees, fines, and cost recoveries in a timely manner, filing legal actions as necessary.

B. The anticipated term of this agreement is three (3) years.

C. The anticipated start date of this agreement is January 1, 2026.

2. SERVICE LOCATION

A. The services shall be performed nationwide.

3. SERVICE HOURS

A. Contractor shall be available to DCC during normal working hours 8:00 a.m. to 5 p.m., Monday through Friday, including official state holidays.

4. PROJECT REPRESENTATIVES

A. The project representatives during the term of this agreement will be:

[To Be Determined]

[To Be Entered]

B. Direct all inquiries to:

[To Be Determined]

[To Be Entered]

C. All payments from DCC to the Contractor; shall be sent to the following address:

REMITTANCE ADDRESS

[To Be Determined]

Either party may make changes to the information above by giving written notice to the other party. Said changes shall not require an amendment to this agreement.

5. SERVICES TO BE PERFORMED

A. The Contractor shall provide debt collection services as described below:

1. Perform skip-tracing abilities at the state level.

2. Possess credit report accounts nationwide.

3. File legal action on accounts.

4. Maintain a principal office (headquarters) in California.

5. Report to DCC any disciplinary actions taken against them by any state agencies or government entities.

6. Maintain current certificates of insurance covering professional liability and worker's compensation. Upon request from DCC, the Contractor shall provide certificates of coverage.

B. Within fourteen (14) business days after the fully executed Agreement is distributed to the Contractor, the Contractor shall provide DCC a list identifying the names and classifications of all collection agents (including which agents are assigned to each account) who are providing services under this Agreement.

1. This list shall also indicate whether the collection agent is employed in a full-time or part-time capacity. A part-time agent is recognized as an employee who works less than forty (40) hours per week.

2. The Contractor shall notify DCC via email of any changes to the assigned personnel within ten (10) business days of a change in assignment

C. Contractor shall perform services in accordance with all applicable state and federal laws which include but are not limited to the: Fair Credit Billing Act; Federal Equal Credit Opportunity Act; federal Fair Debt Collection Practices Act; State Rosenthal Fair Debt Collection Practices Act; and Regulation B, as amended, of the Consumer Credit Protection Act. Contractor shall adopt procedures and practices to ensure DCC’s compliance with the Accounts Receivable Management Act.

D. Contractor shall provide full-service collection to include, but not be limited to, written correspondence and telephonic means of collection.

E. Contractor shall provide fully computerized office services, not merely an account card service, which shall include:

1. Reporting to credit bureaus electronically.

2. Using an automated direct dialer system.

3. Storage of all documents on a computer.

4. Backing up data to a secure server.

5. Working directly from the computerized system.

F. In collaboration with DCC, Contractor shall establish a secure, timely, and efficient transfer of account information. Any electronic exchange of information shall be via an approved method mutually agreed upon by the DCC and the Contractor.

G. Contractor shall maintain a database accessible to DCC with real-time information and data regarding collection accounts.

1. The database shall be formatted in such a manner that the screens are printable, and the data is exportable.

2. The Contractor shall notify DCC of any changes via email to IT accessibility and/or compatibility within ten (10) business days.

H. Contractor shall not release personal information and shall safeguard the information from disclosure. The Contractor is liable and shall be held accountable by DCC for inappropriate use or disclosure of personal information.

I. The Contractor shall implement the following debt collection processes when providing services under this Agreement:

1. Collection Process:

a. After the initial telephone contact or attempt, the account is transferred to a collector with an automatically generated credit report, based upon pre- determined account criteria. Reports may be hard copy and/or electronically transferred to the collector.

b. Credit reports shall be generated based on DCC’s criteria and account balances preset and delivered to the collection agent upon receipt of the assigned account.

c. Collectors shall make contact attempts approximately every three (3) business days until contact is made. If no contact is made, skip-tracing begins. If no phone number is available (within DCC media/data), skip-tracing begins immediately after assignment in order to contact the debtor. Credit reports are reviewed and utilized for additional employment contacts, recent creditor inquiries, repayment ability and assets. Additionally, databases, including real property ownership, crisscross phone and address directories, corporate status, fictitious business filings, Board of Equalization (BOE), Uniform Commercial Code (UCC) filings, general and limited partnerships, and marriage/divorce records are queried for debtor's information.

d. When contact is made, the Contractor shall request that the debtor make a payment towards the full balance. If the debtor is unable to pay the amount owed, all demographics and financial history are updated to determine ability to pay.

e. When assets, account balance, and jurisdiction support legal action, the account is considered and reviewed for legal action by the Contractor's management staff who then forwards the request to DCC for written approval. Formal legal action shall not be initiated without written approval from DCC.

2. Skip-Tracing Process:

a. The Contractor shall perform skip-tracing, employment and income verification, and property search services. The Contractor's services shall include, but are not limited to the following:

i. The Contractor shall utilize standard tools, such as credit reports from all three (3) major credit bureaus (Equifax, Experian. and Trans-Union), crisscross books, reconciling information from cable companies, and other entities, as well as matching it to the Contractor’s debtor account database.

ii. The Contractor shall have and retain records which include information on debtors' property ownership, marriages, divorces, probates, name changes, and criminal indexes.

iii. The Contractor shall update current database(s) quarterly. Updated information shall include the following:

A. Real Estate by Situs & Alpha for specific states B. UCC filings C. Fictitious files D. Crisscross phone and address for the continental United States E. Corporate status

F. BOE

3. Cancellations:

a. After extensive collection activities and all skip-tracing efforts have been exhausted, the account will be given a final management review by the Contractor. The Contractor's management staff will review all accounts, in order to verify that every effort has been made and the debtor has no assets to justify a lawsuit. The Contractor's management staff may return the account to the Contractor's collection staff after the instructive management review where the collector will continue to perform additional specific work, if necessary.

b. The Contractor shall immediately cease efforts on recalled accounts upon request of DCC. The contractor shall cancel and pull the account from the collection process and send an electronic notification to DCC.

c. The Contractor shall continue to skip-trace inactive accounts monthly in order to re- establish contact or locate assets. The Contractor shall possess computer systems adequate for the storage and retrieval of all accounts (both active and inactive).

d. At the time of closure, the Contractor shall return all debt collection files to DCC, unless otherwise instructed by DCC, and remove the delinquent account from national credit reporting. Once a debtor's account has been cancelled, DCC may choose, after review, to re-activate and continue collection efforts.

4. Procedures and Timelines Used to Process Claims:

a. Once DCC has made its referrals and supplied the necessary account information to the Contractor, excluding the debtor's social security number (SSN), the Contractor shall use its federally mandated first notice, which shall be sent to each debtor. Media/data format from DCC may be hard copy or electronic download. An initial telephone call and/or telephone contact shall be made for each delinquent account as a first attempt for a possible quick resolution. Between one (1) to five (5) calendar days after DCC has made its referral, each referred account shall have a minimum of one (1) notice and one

(1) telephone call contact or attempted contact.

5. Outline of Account Treatment Process:

a. Day 1:

i. DCC’s account assignment information is electronically transferred to the Contractor. Accounts are then assigned to collectors based upon the following criteria:

A. Accounts with balances under five-hundred dollars and no cents ($500.00) are assigned to small claims collectors, whereas accounts with balances of five-hundred dollars and no cents ($500.00) or over shall be assigned to larger claim collectors.

B. Notice of Assignment is mailed.

C. First telephone contact is attempted.

D. Reports are made to nationwide Credit Reporting Agencies (which include, but are not limited to, Equifax, Experian, and Trans-Union).

E. In the event the account is assigned and immediately determined to be a skip-trace account (as defined by an account where mail has been returned and/or there is no valid telephone number), the skip-tracing process shall immediately begin. The skip-tracing shall be performed by the Contractor's skip-tracing department, where the department shall locate and research valid information pertaining to each account/claim. Once the skip-tracing department has successfully located the necessary information, the department shall forward the account to the assigned collection agent.

b. Days 2 through 5:

i. Searches are performed on all new assignments for possible matches based on the debtor's name, and other criteria to locate any other accounts against DCC. Positive matches are then packed together, in order to work on the accounts simultaneously.

ii. All "Can Be Reached" (CBR) telephone numbers are dialed to locate or establish contact for the delinquent account.

iii. In the event an account's CBR number is busy, all busy lines will be redialed within five (5) to fifteen (15) minutes.

c. Days 6 through 13:

i. All CBR numbers are dialed or retried, if prior payment arrangements were not established or if no contact has been made. A stronger second demand letter from the Contractor shall be sent (via regular U.S. mail) by the thirteenth (13th) day, in order to motivate payment from each debtor. All valid CBR numbers are redialed at least two (2) times per week for maximum effect.

d. Days 14 through 30:

i. At least one-third (1/3) of all accounts/claims assigned to the Contractor's collectors shall be randomly reviewed by their supervisors every seven (7) to eight (8) days to ensure quality, performance expectations, and account resolution in as short of a time frame as possible. In the event there is no contact within fourteen (14) calendar days, the skip-tracing process will begin.

ii.

iii. In addition, the Contractor shall review and utilize credit reports (based on predetermined value systems) for additional information, in order to assist the collector in making direct contact with the debtor. Additional information includes, but is not limited to, banking relationships, recent creditor inquiries, employers, spouses, and location of real and personal property and assets. Furthermore, the Contractor shall utilize databases to search for additional valuable personal and business information, which includes but is not limited to, crisscross phone and address directories, corporate status, fictitious business filings, BOE, DCA, UCC filings, general and limited partnerships, California real estate property ownership, and marriage/divorce records.

e. Days 31 or More:

i. The Contractor shall redial all previously established valid telephone numbers for delinquent accounts on a weekly basis. Letters are mailed out in order to determine the feasibility of instituting legal action. In the event a debtor makes a commitment to make payment on the delinquent account and the debtor does not fulfill his/her commitment, the Contractor shall conduct a follow-up call on the date in which payment by the debtor was required. The Contractor shall report all unpaid accounts to credit reporting agencies (including, but not limited to, Equifax, Experian, and Trans-Union) ninety (90) days after the date of assignment

f. When assets, account balance, and jurisdiction support legal action, the account is considered and reviewed for legal action by the Contractor's management staff, who then forwards the request to DCC for written approval. Formal legal action shall not be initiated without written approval from DCC.

J. Required Reports:

Contractor shall provide reports that capture information as described below and combine all accounts into one (1) cumulative list. Reports shall not include debtors' SSN.

1. Monthly Activity Report: The Contractor shall provide monthly activity reports to DCC. The monthly activity report shall provide information including, but not limited to, an account's assignment date, balance, date last worked, geography, area code, time zone. and a variety of other additional information (as requested by DCC).

2. Performance Statistics: Upon DCC’s request, the Contractor shall submit monthly Performance Statistics, which capture information on account summaries by age and statistical overview by status codes, etc.

3. Acknowledgement Report: Upon DCC’s request, the Contractor shall confirm (in writing) all accounts/claims referred by DCC where an account number has been assigned. The Acknowledgement Report shall include the debtor's name, date assigned, Contractor's account number, total dollars, and number of accounts assigned for the six (6) month write-off period.

4. Inventory Listing: Upon DCC’s request, the Contractor shall furnish an inventory listing to DCC. The Contractor shall submit the listing either monthly or quarterly (as required by DCC), which captures information including debtor's name, account number, assigned amount, payments to date, outstanding balance, and the Contractor's recovery statistics.

5. Cancellation Report: The Contractor shall submit monthly, to DCC, a Cancellation Report containing an itemization and summary of all accounts returned to DCC. The Cancellation Report shall include the account number, debtor's name, balance owing, and reason(s) for cancellation.

6. History Report: Upon DCC’s request, the Contractor shall provide History Reports to DCC, which are cumulative reports reflecting the amount of dollars collected during the current statement period against the month in which they were assigned.

7. Dispute-Resolution Report: The Contractor shall notify DCC, in the event a debtor disputes all or part of the outstanding fine or cost recovery. The disputed accounts will remain suspended until additional information is obtained relative to the dispute and instructions are given by DCC to proceed, cancel, etc.

K. Legal Action:

1. In order to file legal actions to collect outstanding fines and cost recovery, the Contractor shall utilize the following services within and/or associated with their organization:

a. If and when legal services are required, the Contractor shall obtain prior written approval from DCC; prior to authorizing initiation of legal services, DCC will seek approval from the State Office of the Attorney General. This Agreement does not obligate DCC to use Contractor’s services for legal actions; nothing in this Agreement precludes DCC from utilizing the services of state employees for legal actions.

b. For each occurrence of legal services or any lawsuits, the State Office of the Attorney General and DCC shall have the final authority and confirm each final bill. The Contractor may be required to submit to a legal cost and utilization review as determined by the agency (PCC § 10353.5).

c. In order to initiate legal action against an account, the Contractor shall verify and secure proof of one (1) or more of the following:

i. For Companies:

A. Bank accounts B. Accounts receivables C. Deposits on leases D. Real estate E. Rolling stock F. Work in process G. Certificates of deposits and/or prepaid deposits

ii. For Individuals:

A. Stable employment B. Income C. Bank balances D. Homeownership E. Self-employed with attachable assets and/or other verified and leviable assets

d. The Contractor shall provide DCC with access to their attorney when filing legal actions against delinquent accounts. The Contractor warrants and guarantees that their attorneys (who will be providing services in connection with this Agreement) shall have the following minimum qualifications:

i. Sufficient knowledge of debt collection laws in each state where he or she practices.

ii. Capable of handling the Contractor's collection account volume efficiently.

iii. Skilled in computer programs in order to maintain and update correspondence between the Contractor and the attorney.

iv. Experienced in preparing, presenting, and being successful in debt collection trial appearances.

v. Stays abreast of current account information and actions three (3) times per week.

vi. Licensed by the California State Bar with no disciplinary action by the Bar or other regulatory/law enforcement agency.

L. The Contractor shall:

1. Not charge DCC for services rendered, until the outstanding fine or cost recovery is collected, whether partially or completely.

2. Not settle any account without DCC written authorization.

3. Bear all costs for court and legal fees.

4. Not forward accounts to another collection agency for collection without written permission from DCC.

5. Not compromise settlements on claims which have been assigned to the Contractor, without the written authorization from DCC.

6. Not make any false or misleading statements or use threatening language that violates the law.

7. Employ all lawful methods to collect the outstanding fines and cost recovery, accept payments received from debtors, and forward debtors' payments to DCC in full, as required. All funds collected by Contractor from debtors on behalf of DCC shall be remitted to DCC in full, and Contractor shall subsequently invoice DCC for its compensation in accordance with the rates herein.

8. Not acquire any proprietary interest in collection accounts or in debtor information or data received from DCC, and shall not sell access to such accounts, information, or data to any entity including any collection agency or debt buyer, without express agreement of DCC pursuant to a transaction under Government Code section 16584.

M. The Contractor and its subcontractors shall procure and keep in full force and effect during the term of this Agreement all permits, registrations and licenses necessary to accomplish the work specified in this Agreement and shall give all notices necessary and incident to the lawful prosecution of the work. The Contractor shall provide proof of any such license(s), permit(s), and certificate(s) upon request by DCC.

N. The Contractor shall provide services as outlined in this Agreement. The Contractor shall be responsible to fulfill the requirements of the Agreement and shall incur expenses at its own risk and invest a sufficient amount of time and capital to fulfill the obligations as contained herein.

O. The Contractor and any subcontractors shall keep informed of, observe, comply with, and cause all of its agents and employees to observe and comply with all prevailing federal, state, and local laws, rules, and regulations which in any way affect the conduct of the work of this Agreement. If any conflict arises between provisions of the plans and specifications and any pertinent law, then the requirements of the law shall prevail, and Contractor shall immediately notify DCC in writing.

P. DCC may terminate the Agreement pursuant to section 7 of Exhibit C if the Contractor or its subcontractors fails to comply with a federal, state, or local law and the noncompliance, based on the facts and circumstances, would constitute a material breach of this Agreement under California law.

Q. At or prior to the termination or expiration of this contract, the Contractor shall provide to DCC all current data and/or debtor account activity reports, certifying to the accuracy and completeness of the material supplied. DCC shall retain the authority to designate the manner and method by which the data and material shall be transferred.

R. The Contractor shall confer with DCC on a time for the transfer of the data, prior to the expiration of the contract, to enable any successor Contractor to be fully operational on or before the expiration of the contract.

S. All records, reports, papers, tabulations, or other documents pertaining to DCC debt collection services in this Agreement and any contract pursuant to this Agreement are and shall remain the property of the State. This applies, but is not limited to, all account records and documents presented to the Contractor at the beginning of the contract term, and all those records and documents (complete or incomplete) obtained, maintained, and/or developed by the Contractor during the contract term.

Department of General Services Department of Cannabis Control Procurement Division Debt Collection Services BU 1115 Event ID 37203 Department of General Services Department of Cannabis Control Procurement Division Debt Collection Services BU <Number> Event ID <Number> T. Upon termination of this Agreement, Contractor shall cease further collection activities on all DCC accounts subject to this Agreement.

6. DCC RESPONSIBILITIES

A. DCC shall, subject to all requirements of law:

1. Write authorizations for settlements on claims, in its sole discretion.

2. Provide written approval for legal action when assets, account balance, and jurisdiction support legal action, and the account is considered and reviewed for legal action by the Contractor.

3. Provide the Contractor with a list of outstanding receivables.

4. Provide referrals and supply the necessary account information to the Contractor.

5. Notify the Contractor if efforts need to be ceased on accounts that are recalled.

6. Notify Contractor to reactivate and continue collection efforts when appropriate.

7. Request inventory listing, cancellation reports, history reports and dispute-resolution reports.

B. Rights of DCC to Perform Quality Assurance and Financial Audits/Reviews:

1. DCC may routinely evaluate the work performance of the Contractor, Contractor's personnel, subcontractors, or other parties associated with the Contractor to determine if DCC standards and departmental policies and procedures are being maintained. If it is found that any party fails to perform or is physically or mentally incapable of providing services as required by the Agreement, then that party shall not perform services for DCC.

2. DCC may monitor and evaluate services provided in fulfillment of the requirements of this Agreement, as detailed in Exhibit A. Such monitoring and evaluation may occur on a regular cycle or as deemed necessary by DCC. DCC retains sole and absolute discretion in determining any such evaluation schedule.

3. Inspections may be conducted by DCC staff at any time during the Agreement term to check on the quality of work. Payment shall not be provided for services deemed unacceptable by the DCC project coordinator and/or their designee.

4. DCC may audit and examine Contractor's records and accounts which pertain, directly or indirectly, to services performed under this Agreement. DCC may hire third parties to perform the audit and examination, including but not limited to accountants, consultants, or service providers in the applicable field. Contractor shall cooperate fully with the audits and examinations.

5. If, as a result of an audit and examination, DCC is informed of underpayments or overpayments, DCC shall notify Contractor of the need for payment or reimbursement. Upon receipt of a final audit report, Contractor has thirty (30) days to reimburse any overpayment or to dispute or challenge the report. Contractor and DCC shall confer and negotiate in good faith with respect to any disputed portion of the final audit report to reach agreement with respect to adjustments, payments, and reimbursements.

6. DCC shall submit its findings to Contractor and establish a deadline for correcting any deficiencies in fulfilling the obligations set forth in this section. Failure by the Contractor to timely correct deficiencies shall be reason for termination of services under this Agreement.