BILL NUMBER: AB 2985 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 15, 2006
AMENDED IN SENATE JUNE 29, 2006
AMENDED IN SENATE JUNE 20, 2006
AMENDED IN ASSEMBLY APRIL 18, 2006
INTRODUCED BY Assembly Member Maze
(Coauthor: Assembly Member Bass)
FEBRUARY 24, 2006
An act to amend Section 1785.11 of the Civil Code, and to
add Section 10618.6 to the Welfare and Institutions Code,
relating to identity theft.
LEGISLATIVE COUNSEL'S DIGEST
AB 2985, as amended, Maze Foster youth: identity theft.
Existing law requires the placement of dependent children by the
juvenile court according to specified procedures. Existing law
requires the State Department of Social Services to administer every
phase of the administration of public social services, except as
specified. Existing law also requires the state, through the
department and county welfare departments, to establish and support a
system of statewide child welfare, which includes services related
to foster care placement of dependent children and adoption.
This bill would require a county welfare department to
conduct a credit check request a consumer disclosure,
pursuant to federal law, on behalf of a youth in a foster care
placement in the county, when the youth reaches his or her 16th
birthday, in order to ascertain whether the youth has been the victim
of identity theft. If the credit check discloses
consumer disclosure reveals any negative items, or
evidence that identity theft has occurred, the bill would require the
county welfare department to refer the youth to a credit
counseling an approved organization that
provides credit counseling and investigative
services to victims of identity theft. The bill would require the
department to develop a list of approved credit counseling
organizations for this purpose, in consultation with the
County Welfare Directors Association and others . By
requiring county welfare departments to perform new duties with
respect to children in foster care placement, this bill would impose
a state-mandated local program.
Existing law, the Consumer Credit Reporting Agencies Act, requires
a consumer credit reporting agency to furnish a consumer credit
report under designated circumstances.
This bill would authorize a consumer credit reporting agency to
furnish a consumer credit report to a county welfare department
requesting that report for the purposes set forth in the bill.
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 1. Section 1785.11 of the Civil Code is
amended to read:
1785.11. (a) A consumer credit reporting agency shall furnish a
consumer credit report only under the following circumstances:
(1) In response to the order of a court having jurisdiction to
issue an order.
(2) In accordance with the written instructions of the consumer to
whom it relates.
(3) To a person whom it has reason to believe:
(A) Intends to use the information in connection with a credit
transaction, or entering or enforcing an order of a court of
competent jurisdiction for support, involving the consumer as to whom
the information is to be furnished and involving the extension of
credit to, or review or collection of an account of, the consumer; or
(B) Intends to use the information for employment purposes; or
(C) Intends to use the information in connection with the
underwriting of insurance involving the consumer, or for insurance
claims settlements; or
(D) Intends to use the information in connection with a
determination of the consumer's eligibility for a license or other
benefit granted by a governmental instrumentality required by law to
consider the applicant's financial responsibility or status; or
(E) Intends to use the information in connection with the hiring
of a dwelling unit, as defined in subdivision (c) of Section 1940; or
(F) Otherwise has a legitimate business need for the information
in connection with a business transaction involving the consumer.
(4) To a county welfare department requesting the information
pursuant to Section 10618.6 of the Welfare and Institutions Code.
(b) A consumer credit reporting agency may furnish information for
purposes of a credit transaction specified in subparagraph (A) of
paragraph (3) of subdivision (a), where it is a credit transaction
that is not initiated by the consumer, only under the circumstances
specified in paragraph (1) or (2), as follows:
(1) The consumer authorizes the consumer credit reporting agency
to furnish the consumer credit report to the person.
(2) The proposed transaction involves a firm offer of credit to
the consumer, the consumer credit reporting agency has complied with
subdivision (d), and the consumer has not elected pursuant to
paragraph (1) of subdivision (d) to have the consumer's name excluded
from lists of names provided by the consumer credit reporting agency
for purposes of reporting in connection with the potential issuance
of firm offers of credit. A consumer credit reporting agency may
provide only the following information pursuant to this paragraph:
(A) The name and address of the consumer.
(B) Information pertaining to a consumer that is not identified or
identifiable with a particular consumer.
(c) Except as provided in paragraph (3) of subdivision (a) of
Section 1785.15, a consumer credit reporting agency shall not furnish
to any person a record of inquiries solely resulting from credit
transactions that are not initiated by the consumer.
(d) (1) A consumer may elect to have his or her name and address
excluded from any list provided by a consumer credit reporting agency
pursuant to paragraph (2) of subdivision (b) by notifying the
consumer credit reporting agency, by telephone or in writing, through
the notification system maintained by the consumer credit reporting
agency pursuant to subdivision (e), that the consumer does not
consent to any use of consumer credit reports relating to the
consumer in connection with any transaction that is not initiated by
the consumer.
(2) An election of a consumer under paragraph (1) shall be
effective with respect to a consumer credit reporting agency, and any
affiliate of the consumer credit reporting agency, on the date on
which the consumer notifies the consumer credit reporting agency.
(3) An election of a consumer under paragraph (1) shall terminate
and be of no force or effect following notice from the consumer to
the consumer credit reporting agency, through the system established
pursuant to subdivision (e), that the election is no longer
effective.
(e) Each consumer credit reporting agency that furnishes a
prequalifying report pursuant to subdivision (b) in connection with a
credit transaction not initiated by the consumer shall establish and
maintain a notification system, including a toll-free telephone
number, that permits any consumer, with appropriate identification
and for which the consumer credit reporting agency has a file, to
notify the consumer credit reporting agency of the consumer's
election to have the consumer's name removed from any list of names
and addresses provided by the consumer credit reporting agency, and
by any affiliated consumer credit reporting agency, pursuant to
paragraph (2) of subdivision (b). Compliance with the requirements
of this subdivision by a consumer credit reporting agency shall
constitute compliance with those requirements by any affiliate of
that consumer credit reporting agency.
(f) Each consumer credit reporting agency that compiles and
maintains files on consumers on a nationwide basis shall establish
and maintain a notification system under paragraph (1) of subdivision
(e) jointly with its affiliated consumer credit reporting agencies.
SEC. 2. SECTION 1. Section 10618.6
is added to the Welfare and Institutions Code, to read:
10618.6. When a youth in a foster care placement reaches his or
her 16th birthday, the county welfare department shall
conduct a credit check request a consumer disclosure,
pursuant to the free annual disclosure provision of the federal Fair
Credit Reporting Act, on the youth's behalf, notwithstanding
any other provision of law, to ascertain whether or not identity
theft has occurred. If the credit check discloses
there is a disclosure for the youth and if the consumer
disclosure reveals any negative items, or any
evidence that some form of identity theft has occurred, the county
welfare department shall refer the youth to a credit
an approved counseling organization that
provides credit counseling and services to victims
of identity theft , to investigate and take actions needed
to clear the youth's credit history, in order to facilitate
self-sufficiency for the youth . The State Department of
Social Services, in consultation with the County Welfare Directors
Association , consumer credit reporting agencies, and
other relevant stakeholders, shall develop a list of approved
credit counseling organizations to which youth may
be referred for assistance in responding to an instance of
suspected identity theft . Nothing in this section shall be
construed to require the county welfare department to
conduct request more than one
credit check consumer disclosure on behalf of a
youth in care, or to take steps beyond referring the youth to an
approved credit counseling organization for assistance in
responding to an instance of identity theft
organization .
SEC. 3. SEC. 2. If the Commission on
State Mandates determines that this act contains costs mandated by
the state, reimbursement to local agencies and school districts for
those costs shall be made pursuant to Part 7 (commencing with Section
17500) of Division 4 of Title 2 of the Government Code.