BILL ANALYSIS Ó
AB 2035
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2035 (Bradford)
As Amended August 21, 2012
Majority vote
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|ASSEMBLY: |73-0 |(April 30, |SENATE: |37-0 |(August 23, |
| | |2012) | | |2012) |
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Original Committee Reference: HUM. S.
SUMMARY : Protects recipients of benefits through the electronic
benefits transfer (EBT) system from a loss of benefits through the
practice of skimming, as defined. Specifically, this bill :
1)States legislative findings and declarations, including the
following:
a) State law provides relief for parents and recipients under
the California Work Opportunity and Responsibility for Kids
program (CalWORKs) to restore their benefits when stolen but
not when benefits are received via an EBT card and the benefits
have been stolen through the practice of skimming;
b) Recipients of CalWORKs basic needs grants are vulnerable to
electronic crimes; and,
c) The Legislature intends to address the problem of electronic
theft of public benefits at issue in the Los Angeles Superior
Court case, Carpio v. Lightbourne, Los Angeles Superior Court,
Case No. BS135127.
2)Provides that a recipient shall not incur any loss of electronic
benefits through skimming, and requires prompt replacement through
procedures in existing law related to replacement of public
assistance warrants that have been lost, stolen, destroyed, or
lost in the mail.
3)Requires the Department of Social Services (DSS) to establish a
protocol for recipients to report skimming that minimizes the
burden on recipients and ensures prompt payment of lost benefits,
including the automatic replacement of benefits without the need
of the recipient to report or verify the theft.
AB 2035
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The Senate amendments :
1)Remove the proposed definition of "skimming" and replaces with
references to the electronic theft of cash benefits for purposes
of determining whether the recipient should have their benefits
replaced.
2)Allow DSS to develop a protocol to automatically replace the theft
of benefits to a CalWORKs recipient without the recipient having
to report or verify the theft.
EXISTING LAW :
1)Establishes, under the California Electronic Benefits Transfer Act
an EBT system that automates the delivery, redemption, and
reconciliation of issued public assistance benefits, including
CalFresh benefits, California Food Assistance Program benefits,
and cash aid benefits (Welfare & Institutions (W&I) Code Section
10065 et seq.).
2)Provides that a recipient shall not incur any loss of electronic
benefits after reporting that his or her EBT card or personal
identification number (PIN) has been lost or stolen, and provides
for the prompt replacement of lost or stolen EBT cards and PINs.
3)Establishes procedures for replacement by the county of a public
assistance warrant that has been lost, stolen, destroyed, or lost
in the mail (Government Code Section 29853.5).
AS PASSED BY THE ASSEMBLY, required DSS to develop a protocol for
identifying and addressing the electronic theft of CalWORKs EBT
benefits and defined "skimming" as a form of theft by which a
person's EBT account information is accessed and used for unlawful
purposes.
FISCAL EFFECT : According to the Assembly Appropriations Committee,
unknown workload costs, likely less than $100,000 for one
limited-term staff person to develop the appropriate protocol.
COMMENTS : Food benefits through California's CalFresh program are
distributed through an EBT system, which is governed by the
California Electronic Benefits Transfer Act. The EBT system
replaced the former benefit distribution system, which relied on
traditional paper warrants to deliver benefits to recipients. Under
the EBT system, benefits are stored in a central computer database.
AB 2035
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Recipients access their electronically-stored benefits at
point-of-sale terminals, ATMs, and other electronic funds transfer
devices, using plastic cards with magnetic stripes similar to debit
cards. DSS has adopted regulations to deliver benefits under
CalFresh (Manual of Policies and Procedures (MPP) Section 16-001.2).
Counties may also use EBT systems to distribute cash benefits under
other programs, such as CalWORKs or General Assistance (MPP Section
16-001.3). All 58 California counties use the EBT system to deliver
either CalWORKs or General Assistance benefits or both. One of the
primary purposes of the EBT system, as stated in the EBT Act, is "to
afford public social services recipients the opportunity to better
and more securely manage their financial affairs" (W&I Code Section
10065(b)).
The sponsor of this bill, the Western Center on Law & Poverty,
points out that "Ýt]he impact of theft on CalWORKs families can be
devastating if not resolved quickly and with as little burden on the
victim as possible." According to the author, "Ýa]n emerging form
of thievery, referred to as 'skimming,' allows thieves to acquire
account numbers and PIN numbers of electronic cards, including EBT
cards, without the card owner ever losing possession of the card or
PIN or knowing they have become victims until they discover the
money is gone."
In December 2011, a petition for writ of mandate was filed in Los
Angeles County Superior Court alleging that county welfare
departments deny replacement of benefits to recipients whose
benefits are stolen electronically, without physical theft of their
EBT cards or PINs. Carpio v. Lightbourne, Los Angeles Superior
Court, Case No. BS135127. While Ms. Carpio's benefits were
eventually restored-after two years of appeals-the lawsuit alleges
that counties still deny restoration of benefits lost through
electronic means. As noted in the legislative findings and
declarations, this bill is intended to address the issue raised in
Carpio, and clarify that loss of benefits through electronic theft
(skimming) is also protected.
Analysis Prepared by : Chris Reefe / HUM. S. / (916) 319-2089
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