BILL ANALYSIS Ó
AB 846
Page 1
ASSEMBLY THIRD READING
AB 846 (Bonilla)
As Amended March 31, 2011
Majority vote
HUMAN SERVICES 4-0 APPROPRIATIONS 12-4
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|Ayes:|Beall, Ammiano, Hall, |Ayes:|Fuentes, Blumenfield, |
| |Portantino | |Bradford, Charles |
| | | |Calderon, Campos, Davis, |
| | | |Gatto, Hall, Hill, Lara, |
| | | |Mitchell, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Harkey, Nielsen, Norby, |
| | | |Wagner |
| | | | |
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SUMMARY : Makes technical changes to foster youth identity theft
laws. Specifically, this bill :
1)Adds authorization for the Department of Social Services (DSS)
to request consumer credit report disclosures (credit reports)
and referrals on behalf of a foster youth in the state's care
for the purpose of detecting possible identity theft.
2)Adds the Office of Information Security and Privacy Protection
(OISPP) to the entities tasked with compiling a list of
governmental agencies and nonprofit organizations permitted to
respond to possible identity theft on a foster youth's behalf.
3)Clarifies that the foster youth's credit report shall be
requested in the year that the youth reaches his or her 16th
birthday from each of the national credit reporting agencies.
4)Requires DSS to use the most efficient methods possible (e.g.,
batch processing) for lists of youth turning 16 years on a
quarterly or semiannual basis, rather than on an individual
basis.
5)Makes additional clarifying and technical amendments.
EXISTING LAW :
AB 846
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1)Requires that, when a youth in foster care reaches his or her
16th birthday, the county welfare department shall request a
free annual credit report on behalf of the youth to determine
whether identity theft has occurred. ÝWelfare and
Institutions Code (WIC) 10618.6.]
2)Requires the county welfare department to refer the youth to
an approved counseling organization providing services to
victims of identity theft if the credit report shows negative
items, or evidence of identity theft. ÝWIC 10618.6.]
3)Directs DSS, in consultation with the County Welfare Directors
Association (CWDA) and consumer credit reporting agencies, to
develop a list of approved organizations that may provide
assistance to foster youth who may be victims of identity
theft. ÝWIC 10618.6.]
FISCAL EFFECT : According the Appropriations Committee, costs
associated with this legislation are minor and absorbable within
existing resources.
COMMENTS :
1)Background : Foster youth are especially vulnerable to
identity theft. The scope of the problem is unknown, but
likely to happen as foster youth may experience frequent
placement changes where sensitive personal information changes
hands. It is often not until the minor "ages out" of foster
care, and applies for credit or an apartment, that the
identity theft is discovered. Identity theft can derail a
foster youth's ability to successfully transition to adulthood
before it has begun, as it can create costly and
time-consuming barriers to applying for jobs or housing, and
opening a bank account, or applying for credit. Without a
parent or guardian to safeguard a minor's credit or make a
written request to resolve the issue on their behalf, it is
incumbent upon the state to assume the role of the parent,
including the responsibility to protect a youth's
creditworthiness.
2)Need for this bill : The Legislature sought to address these
issues with the passage of AB 2985 (Maze), Chapter
387, Statutes of 2006. AB 2985 (Maze) put in place the
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existing requirements for county welfare departments to
request an annual free credit report when a foster youth turns
16, and to provide foster youth with referrals to nonprofit
organizations providing assistance for identity theft.
According to the author, this bill is necessary to facilitate a
streamlined and effective implementation of existing law.
Under current law, credit report requests are issued on an
individual basis. According to CWDA, this bill expands a
practice currently in place in Los Angeles County, of
requesting credit reports for foster youth on a semiannual
basis via batch processing. The author and supporters of this
bill contend that this method is more efficient, and allows
the state and counties to target referrals and responses to
only those cases of suspected identity theft.
Analysis Prepared by : Michelle Doty Cabrera / HUM. S. / (916)
319-2089
FN: 0000672