BILL NUMBER: AB 2098	CHAPTERED  09/30/06

	CHAPTER  818
	FILED WITH SECRETARY OF STATE  SEPTEMBER 30, 2006
	APPROVED BY GOVERNOR  SEPTEMBER 30, 2006
	PASSED THE ASSEMBLY  AUGUST 30, 2006
	PASSED THE SENATE  AUGUST 29, 2006
	AMENDED IN SENATE  AUGUST 24, 2006
	AMENDED IN SENATE  AUGUST 22, 2006
	AMENDED IN SENATE  AUGUST 7, 2006
	AMENDED IN SENATE  JUNE 22, 2006
	AMENDED IN ASSEMBLY  MAY 26, 2006
	AMENDED IN ASSEMBLY  MAY 18, 2006
	AMENDED IN ASSEMBLY  MAY 8, 2006
	AMENDED IN ASSEMBLY  MAY 1, 2006
	AMENDED IN ASSEMBLY  APRIL 5, 2006

INTRODUCED BY   Assembly Member Liu
   (Coauthor: Assembly Member Garcia)

                        FEBRUARY 17, 2006

   An act to add Part 5.6 (commencing with Section 14995) to Division
3 of Title 2 of the Government Code, relating to state government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2098, Liu  State government: electronic payment system:
Electronic Funds Transfer Task Force.
   Existing law generally authorizes state agencies to accept
alternate payment devices, subject to specified conditions.
   This bill would establish the Electronic Funds Transfer Task
Force, as specified, to study and report to the Legislature on or
before April 1, 2008, a plan for development and implementation of a
new payment dispersal system utilizing electronic funds transfer
technology, to include specified components.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Part 5.6 (commencing with Section 14995) is added to
Division 3 of Title 2 of the Government Code, to read:

      PART 5.6.  ELECTRONIC FUNDS TRANSFER TASK FORCE

      CHAPTER 1.  Electronic Funds Transfer Task Force

   14995.  (a) The Electronic Funds Transfer Task Force is hereby
established in state government.
   (b) The Electronic Funds Transfer Task Force shall consist of one
representative from each of the following agencies, boards, and
departments, appointed by the corresponding agency, board, or
department head, as follows:
   (1) State Board of Equalization.
   (2) Franchise Tax Board.
   (3) Employment Development Department.
   (4) Treasurer.
   (5) Controller.
   (6) Department of Finance.
   (7) Department of General Services.
   (8) Department of Technology Services.
   (c) The Electronic Funds Transfer Task Force shall study and
report to the Legislature, on or before April 1, 2008, a plan for the
development and implementation of a payment dispersal system
utilizing electronic funds transfer technology. The plan shall
include, but not be limited to, all of the following:
   (1) An examination of all payments dispersed by the state and the
methods currently used to transfer these funds.
   (2) A recommendation on which payments should be included in a new
electronic payment dispersal system.
   (3) An examination of the cost of developing and utilizing a
comprehensive electronic payment dispersal system, including, but not
limited to, all of the following:
   (A) Costs and savings related to float time.
   (B) Costs and savings related to transaction process time.
   (C) Costs and savings related to paperless transactions.
   (D) Costs and savings related to system development and
implementation of a new electronic payment dispersal system.
   (E) Costs and savings related to administration of a new
electronic payment dispersal system.
   (4) A recommendation on how a comprehensive electronic payment
dispersal system should be developed, including, but not limited to,
recommendations on whether the state should contract for private
administration of an electronic payment dispersal system, develop a
system within state government, or use any other means available.
   (5) An examination of the costs and benefits of using a
user-friendly, single online portal interface for the dispersal of
funds through an electronic payment dispersal system.
   (6) A recommendation on which state agencies, boards, and
departments should be required to use the electronic payment
dispersal system for payment of funds, and what, if any, exceptions
should be provided for these agencies, boards, and departments.
   (7) An examination and recommendation on incorporating the
dispersal of funds for localities into the electronic payment system.

   (8) An examination of and recommendation on the system's
flexibility for future expansion of services.
   (9) An examination of and recommendation on incorporating
electronic payment cards, or similar products, into the electronic
payment dispersal system. This shall include, but not be limited to,
the costs and savings of using electronic payment cards for social
services and unbanked customers.
   (10) An examination of and recommendation on incorporating
electronic check conversion into the electronic dispersal system.
   (11) An recommendation on the timely development of the electronic
payment dispersal system.