AB 1614, as amended, Stone. Electronic benefits transfer cards.
(1) Existing law provides for financial and food assistance benefits to needy Californians including, among other programs, the California Work Opportunity and Responsibility to Kids (CalWORKs) program and CalFresh, under which each county provides for financial and food assistance benefits to qualified individuals who meet specified eligibility criteria.
Existing law, administered by the State Department of Social Services, provides for the establishment of a statewide electronic benefits transfer (EBT) system for the purpose of providing those financial and food assistance benefits. Existing law authorizes a county to deliver CalFresh benefits and, upon election by the county, CalWORKs benefits through the use of an EBT system. Existing law requires, among other things, that the system have a 24-hour per day toll-free telephone hotline for the reporting of lost or stolen cards that will provide recipients with information on how to have the card and personal identification card number replaced.
This bill would require the 24-hour toll-free telephone hotline to provide recipients, at no additional cost, the above-described information and to allow an authorized representative or head of household to access or request the transaction history detail, as specified. This bill would require the system to have an Internet Web site that will provide the same information and allowbegin delete the same access.end deletebegin insert an authorized representative or head of household to view or request the transaction history detail.end insert
The bill would require a county human services agency to make available to an authorized representative or head of household all electronic benefit transaction history details that are available to the county human services agency within 10 business days after a request has been received.
This bill would also require that the EBT system be designed to inform recipients when the system does not function or is expected not to function for more than a one-hour period between 6:00 a.m. and midnight during any 24-hour period.
(2) Existing law, except as specified, authorizes a recipient to be charged a fee, not to exceed the amount allowable by applicable state and federal law and customarily charged to other customers, for cash withdrawal transactions that exceed 4 per month.
This bill would require the EBT system to be designed to ensure that recipients of benefits under the CalWORKs program have access to using or withdrawing benefits with minimal fees or charges, including an opportunity to access benefits with no fee or charges. This bill would also create the Electronic Benefits Transfer System Consumer Protection, Financial Empowerment, and Cash Access Fund for the receipt of moneys from federal, state, and private funds. The bill would allocate moneys in this fund, upon appropriation by the Legislature, to the department for specified purposes.
(3) Existing law requires that EBT system consumers be informed regarding how to use the EBT card and how to protect the card from misuse.
This bill would also require a consumer to be informed of where they can use their EBT cards to withdraw benefits without incurring a fee, charge, or surcharge. This bill would also require the county to inform an applicant for benefits under the CalWORKs program of, among other things, the methods of electronic delivery of benefits available and any applicable fees, charges, or surcharges associated with each method of electronic delivery.
This bill would also make a conforming change.
By increasing the duties of counties in administering public social services programs, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 123302 of the Health and Safety Code
2 is amended to read:
(a) (1) Notwithstanding any other law, the
4department may design, implement, and fund an electronic benefits
5transfer (EBT) system for the California Special Supplemental
6Food Program for Women, Infants, and Children. Sections 10066,
710067, and 10068 of, and subdivision (l) of Section 10072 of, the
8Welfare and Institutions Code, shall apply to the administration
9of this section.
10(2) The department shall not implement any EBT system
11authorized by this section until the department completes a
12feasibility study, and funding for the system is provided in the
13annual Budget Act.
14(b) The department shall seek the advice of the Electronic
15
Benefits Transfer Committee, created by Section 10067 of the
16Welfare and Institutions Code, in implementing this section, and
17shall obtain the approval of the United States Department of
18Agriculture, which is the federal governing agency, prior to the
19establishment of any EBT system.
20(c) The department shall develop a plan to determine the
21feasibility of implementing an EBT system for the California
22Special Supplemental Food Program for Women, Infants, and
23Children by January 1, 2003, and shall report its findings to the
24Legislature by July 1, 2003.
Section 10072 of the Welfare and Institutions Code is
2amended to read:
The electronic benefits transfer system required by this
4chapter shall be designed to do, but not be limited to, all of the
5following:
6(a) To the extent permitted by federal law and the rules of the
7program providing the benefits, recipients who are required to
8receive their benefits using an electronic benefits transfer system
9shall be permitted to gain access to the benefits in any part of the
10state where electronic benefits transfers are accepted. All electronic
11benefits transfer systems in this state shall be designed to allow
12recipients to gain access to their benefits by using every other
13electronic benefits transfer system.
14(b) To the maximum extent feasible, electronic benefits transfer
15systems shall be designed to
be compatible with the electronic
16benefits transfer systems in other states.
17(c) All reasonable measures shall be taken in order to ensure
18that recipients have access to electronically issued benefits through
19systems such as automated teller machines, point-of-sale devices,
20or other devices that accept electronic benefits transfer transactions.
21Benefits provided under Chapter 2 (commencing with Section
2211200) of Part 3 shall be staggered over a period of three calendar
23days, unless a county requests a waiver from the department and
24the waiver is approved, or in cases of hardship pursuant to
25subdivision (o).
26(d) The system shall provide for reasonable access to benefits
27to recipients who demonstrate an inability to use an electronic
28benefits transfer card or other aspect of the system because of
29disability, language, lack of access, or other barrier. These
30alternative methods shall
conform to the requirements of the
31Americans with Disabilities Act (42 U.S.C. Sec. 12101, et seq.),
32including reasonable accommodations for recipients who, because
33of physical or mental disabilities, are unable to operate or otherwise
34make effective use of the electronic benefits transfer system.
35(e) The system shall permit a recipient the option to choose a
36personal identification number, also known as a “PIN” number,
37to assist the recipient to remember his or her number in order to
38allow access to benefits. Whenever an institution, authorized
39representative, or other third party not part of the recipient
40household or assistance unit has been issued an electronic benefits
P5 1transfer card, either in lieu of, or in addition to, the recipient, the
2third party shall have a separate card and personal identification
3number. At the option of the recipient, he or she may designate
4whether restrictions apply to the third party’s access to the
5recipient’s
benefits. At the option of the recipient head of
6household or assistance unit, the county shall provide one electronic
7benefits transfer card to each adult member to enable them to
8access benefits.
9(f) The system shall have a 24-hour per day toll-free telephone
10hotline for the reporting of lost or stolen cards that will provide
11recipients, at no additional cost to the recipient, with information
12on how to have the card and personal identification number
13replaced, and that will allow an authorized representative or head
14of household to access, over the telephone, the transaction history
15detail for at least the last 10 transactions and to request that the
16transaction history detail for at least the past two months be sent
17by mail.
18(g) The system shall have an Internet Web site that will provide
19recipients, at no additional cost to the recipient, with information
20on how to have the
card and personal identification number
21replaced, and that will allow an authorized representative or head
22of household tobegin delete accessend deletebegin insert viewend insert the transaction history detail for at
23least the last 10 transactionsbegin delete over the telephoneend delete and to request that
24the transaction history detail for at least the past two months be
25sent by mail.
26(h) In addition to the ability to receive transaction history detail
27pursuant to subdivisions (f) and (g), a county human services
28agency shall make available to an authorized representative or
29head of household, at no additional cost to the authorized
30representative or head of household, all electronic benefit
31transaction history details that are
available to the county human
32services agency within 10 business days after a request has been
33received by the agency.
34(i) (1) A recipient shall not incur any loss of electronic benefits
35after reporting that his or her electronic benefits transfer card or
36personal identification number has been lost or stolen. The system
37shall provide for the prompt replacement of lost or stolen electronic
38benefits transfer cards and personal identification numbers.
39Electronic benefits for which the case was determined eligible and
40that were not withdrawn by transactions using an authorized
P6 1personal identification number for the account shall also be
2promptly replaced.
3(2) A recipient shall not incur any loss of cash benefits that are
4taken by an unauthorized withdrawal, removal, or use of benefits
5that does not occur by the use of a physical EBT card issued to the
6recipient
or authorized third party to directly access the benefits.
7Benefits taken as described in this paragraph shall be promptly
8replaced in accordance with the protocol established by the
9department pursuant to paragraph (3).
10(3) The State Department of Social Services shall establish a
11protocol for recipients to report electronic theft of cash benefits
12that minimizes the burden on recipients, ensures prompt
13replacement of benefits in order to minimize the harm to recipients,
14and ensures program integrity. This protocol may include the
15automatic replacement of benefits without the need for recipient
16reporting and verification.
17(j) Electronic benefits transfer system consumers shall be
18informed on how to use electronic benefits transfer cards, how to
19protect their cards from misuse, and where consumers can use their
20cards to withdraw benefits without incurring a fee, charge, or
21
surcharge.
22(k) The electronic benefits transfer system shall be designed to
23inform recipients when the electronic benefits transfer system does
24not function or is expected not to function for more than a one-hour
25period between 6 a.m. and midnight during any 24-hour period.
26This information shall be made available in the recipient’s preferred
27language if the electronic benefits transfer system vendor contract
28provides for services in that language.
29(l) Procedures shall be developed for error resolution.
30(m) No fee shall be charged by the state, a county, or an
31electronic benefits processor certified by the state to retailers
32participating in the electronic benefits transfer system.
33(n) Except for CalFresh transactions, a recipient may be charged
34a fee,
not to exceed the amount allowed by applicable state and
35federal law and customarily charged to other customers, for cash
36withdrawal transactions that exceed four per month.
37(o) The electronic benefits transfer system shall be designed to
38ensure that recipients of benefits under Chapter 2 (commencing
39with Section 11200) of Part 3 have access to using or withdrawing
P7 1benefits with minimal fees or charges, including an opportunity
2to access benefits with no fee or charges.
3(p) A county shall exempt an individual from the three-day
4staggering requirement under subdivision (c) on a case-by-case
5basis for hardship. Hardship includes, but is not limited to, the
6incurrence of late charges on an individual’s housing payments.
7(q) A county shall inform an applicant for benefits under Chapter
82 (commencing with Section 11200)
of Part 3 of all of the
9following:
10(1) The methods of electronic delivery of benefits available,
11including distribution of benefits through the electronic benefits
12transfer system or direct deposit pursuant to Section 11006.2, the
13applicable fees, charges, or surcharges associated with each method
14of electronic delivery, consumer and privacy protections,
15protections from garnishment, and liability for theft.
16(2) That a recipient may authorize any available method of
17electronic delivery of benefits and instructions regarding how the
18recipient may select or change his or her preferred method of
19electronic delivery of benefits and that the recipient shall be given
20the opportunity to select the method prior to the first payment.
21(3) That a recipient may be entitled to an alternative method of
22delivery if the recipient
demonstrates an inability to use an
23electronic benefits transfer card or other aspect of the system
24because of disability, language, lack of access, or other barrier
25pursuant to subdivision (d) and instructions regarding how to
26determine whether the recipient qualifies for an alterative method
27of delivery.
28(4) That a recipient may be entitled to an exemption from the
29three-day staggering requirement under subdivision (c) on a
30case-by-case basis for hardship pursuant to subdivision (o) and
31instructions regarding how to determine whether the recipient
32qualifies for the exemption.
Section 10072.3 is added to the Welfare and
34Institutions Code, to read:
(a) There is hereby created in the State Treasury the
36Electronic Benefits Transfer System Consumer Protection,
37Financial Empowerment, and Cash Access Fund. The fund may
38consist of federal, state, and private funds.
39(b) Notwithstanding any other law, moneys in the fund, upon
40appropriation by the Legislature, shall be allocated to the
P8 1department for the purpose of ensuring that recipients of benefits
2under Chapter 2 (commencing with Section 11200) of Part 3 are
3educated about their consumer rights and financial management
4tools and services, and how to access their benefits with minimal
5fees or charges, including an opportunity to access benefits with
6no fee or charges.
7(c) Moneys
in the fund may be used by the department or
8allocated to county human services agencies or other public entities,
9as determined by the department, in consultation with county
10human services agencies and advocates for low-income consumers.
11(d) Activities funded by the fund that meet the goals of the
12CalWORKs program, particularly by helping parents successfully
13prepare for employment, shall be applied to the federal work
14participation hours required by Section 11322.8 if the department
15receives a waiver of compliance with Section 602 of Title 42 of
16the United States Code from the United States Department of
17Health and Human Services or otherwise determines that activities
18meet the requirements set forth under federal law without a waiver.
If the Commission on State Mandates determines that
20this act contains costs mandated by the state, reimbursement to
21local agencies and school districts for those costs shall be made
22pursuant to Part 7 (commencing with Section 17500) of Division
234 of Title 2 of the Government Code.
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