BILL ANALYSIS                                                                                                                                                                                                    






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                        Senator Elaine K. Alquist, Chair


          BILL NO:       AB 2985                                      
          A
          AUTHOR:        Maze                                         
          B
          VERSION:       June 20, 2006
          HEARING DATE:  June 27, 2006                                
          2
          FISCAL:        Appropriations                               
          9
                                                                      
          8
          CONSULTANT:                                                 
          5
          Hailey
                                        

                                     SUBJECT
                                         
                          Foster youth: identity theft

                                     SUMMARY  

          Directs county welfare departments to conduct a credit  
          check on the behalf of each child in foster care when he or  
          she reaches 16 years of age.

                                     ABSTRACT  

          Existing law:
          1.  Establishes the foster care system for children who  
          become the dependents or the wards of the court.

          This bill:
          1.  Directs county welfare departments to conduct credit  
          checks on behalf of any foster child who reaches 16 years  
          of age which in the care of the county.

          2.  Directs county welfare departments to refer to credit  
          counseling and investigative services any foster youth who  
          has been the victim of identity theft.

                                                         Continued---



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                                  FISCAL IMPACT  

          Unknown.

                            BACKGROUND AND DISCUSSION  

           Purpose of the bill
           The author has received reports of foster youth reaching  
          their majority and discovering that their credit rating is  
          bad because they have been the victims of identity theft.   
          This bill directs county welfare departments to conduct a  
          credit check on the behalf of every foster youth when they  
          reach 16 years of age and to refer those youth with bad  
          credit to nonprofit service providers who can assist the  
          youth to reestablish good credit.

           Scope of the problem
           Each year, between 6,000 and 7,000 youth turn 16 years of  
          age while in foster care.  It is unknown how many of them  
          are the victims of identity theft or are otherwise in need  
          of credit counseling.

                               ISSUES AND CONCERNS
           
          1.   Why only nonprofits?   This bill directs county welfare  
          departments to refer foster youth to nonprofit  
          organizations for credit assistance.  Is it necessary to  
          exclude government organizations and for-profit businesses  
          that may provide assistance on a pro bono basis?

                                  PRIOR ACTIONS

           This bill has been recently amended with new language.   
          Prior actions are not relevant.

                                    POSITIONS  
                                        
          Support:       None received

          Oppose:   None received









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