BILL ANALYSIS Ó
SENATE HUMAN
SERVICES COMMITTEE
Senator Carol Liu, Chair
BILL NO: AB 846
A
AUTHOR: Bonilla
B
VERSION: June 7, 2011
HEARING DATE: June 14, 2011
8
FISCAL: Appropriations
4
6
CONSULTANT:
Hailey
SUBJECT
Foster youth: identity theft
SUMMARY
Clarifies how county welfare departments will request
consumer credit reports on youth in foster care and the
procedures of handling any identity theft that is
suspected.
ABSTRACT
Current law
1) Requires the county welfare department to request a
free annual credit report on behalf of a youth in foster
care, when that individual reaches 16 years of age, to
determine if 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. (WIC
Continued---
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10618.6)
3) Creates the office of privacy protection, within the
State and Consumer Services Agency, to provide information
and assistance on privacy issues to individuals and to
recommend privacy practices to businesses and other
organizations.
This bill
1) Provides that the State Department of Social Services
(DSS) shares with the county welfare department the
responsibility to request credit reports on behalf of a
foster youth in an effort to determine whether identity
theft may have occurred.
2) Removes references to an "approved counseling
organization" and clarifies that, should the credit report
show negative items or evidence of possible identity theft,
DSS or the county may refer the matter to a government
agency or nonprofit organization that provides information
or assistance to victims of identity theft.
3) Authorizes the government agency or nonprofit
organization receiving the referral to take steps to clear
the foster youth's credit report, and to report back to the
county or to DSS on the actions taken on the foster youth's
behalf.
4) Requires the office of privacy protection, in
consultation with DSS, the California Welfare Directors
Association, credit reporting agencies, and other
stakeholders, to compile a list of agencies and
organizations to whom the county or DSS may refer instances
of possible identity theft or negative items from a credit
report.
FISCAL IMPACT
According to the Assembly Appropriations Committee, there
are no significant costs associated with this bill.
BACKGROUND AND DISCUSSION
Need for this bill
According to the author, identity theft can derail a foster
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youth's ability to transition successfully to adulthood,
and it can create costly and time-consuming barriers to
applying for jobs or housing or to opening a bank account
or applying for credit. The scope of the problem is
unknown, but foster youth who move from one placement to
another, with sensitive personal information changing
hands, are considered particularly vulnerable.
The Legislature sought to address this issue with the
passage of AB 2985 (Maze), Chapter 387, Statutes of 2006.
AB 2985 put in place the 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 intended to strengthen and clean up provisions
in AB 2985.
The County Welfare Directors Association notes that the
office of privacy protection, within the State and Consumer
Services Agency, has developed a list of governmental and
non-profit groups where a youth can seek assistance when
identity theft may have occurred. This bill would allow
county child welfare agencies and the state DSS to use that
list.
Prior and related legislation
This bill is substantially similar to AB 1324 (Bass) of
2009, and AB 2698 (Block) of 2010, both vetoed by the
governor, who noted that the existing law had not been
fully implemented. Governor Schwarzenegger also wrote in
his veto message to AB 1324, "If, through the
implementation, it becomes clear that foster youth are not
being served in the way the law intended, I would be
willing to reconsider this matter."
AB 2985 (Maze) Chapter 387, Statutes of 2006, enacts
existing requirements for county welfare departments to
request a credit report for foster youth, upon turning 16
years of age, and to refer foster youth to an approved
organization that provides counseling services to victims
of identity theft if identity theft was suspected or
discovered. Each year, about 5,000 youth in foster care
turn 16.
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Assembly votes
Human Services: 4-0
Appropriations:12-4
Floor: 63-9
POSITIONS
Support: California Alliance of Child and Family
Services
Children's Law Center of Los Angeles
California State Association of Counties
California State PTA
County Welfare Directors Association
Urban Counties Caucus
Oppose: None received
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