Montana town requires social network passwords from job applicants

In the "you're kidding, right?" category is a story about Bozeman City, Montana job applications that require the applicant to disclose all the social networking sites they use (aka Facebook, Google, Yahoo, YouTube, etc.) including their user names, log-on ID's, and passwords.  See posts on Slashdot, Boing Boing, and Ars Technica. This is wrong on so many levels...   It's hard to imagine anyone would seriously ask that. 

Perhaps it's a test?  If you actually give them your log-on ID's and passwords it shows you don't understand the concepts of privacy, security, confidentiality, breaching terms of use, etc. and thus you don't get the job?