BILL ANALYSIS                                                                                                                                                                                                    



                                                                           
           AB 2985
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2985 (Maze)
          As Amended August 15, 2006
          Majority vote
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |     |(May 4, 2006)   |SENATE: |35-0 |(August 21,    |
          |           |     |                |        |     |2006)          |
           ----------------------------------------------------------------- 
               (vote not relevant)
           
           Original Committee Reference:    HUM. S.

          SUMMARY  :  Requires a county welfare department to request a  
          consumer credit disclosure on a foster youth turning 16, and to  
          refer that foster youth to a credit counseling organization upon  
          any indication of a disclosure revealing negative items or  
          evidence of identity theft.

           The Senate amendments  delete the Assembly version of this bill,  
          and instead:

          1)Require that, upon a foster youth reaching his or her 16th  
            birthday, the county welfare department shall request a  
            consumer disclosure pursuant to the Fair Credit Reporting Act  
            to ascertain whether or not identity theft has occurred.

          2)Provide that if the consumer disclosure reveals a disclosure  
            or any negative items or any evidence of identity theft  
            appears on the credit report, the county welfare department  
            shall refer the foster youth to an approved organization  
            providing services to victims of identity theft.

          3)Require the state Department of Social Services, in  
            consultation with the County Welfare Directors Association,  
            consumer credit reporting agencies and other relevant  
            stakeholders, to prepare a list of approved organizations to  
            which the foster youth may be referred for assistance in  
            responding to an instance of suspected identity theft.

          4)Provide that nothing in the bill be construed to require the  
            county welfare department to request more than one consumer  
            disclosure on behalf of a youth or to take steps beyond  
            referring the youth to an approved organization. 








                                                                           
           AB 2985
                                                                  Page  2


           AS PASSED BY THE ASSEMBLY  , this bill precluded, with specified  
          exceptions, any person under the age of 21 years of age from  
          providing care and supervision of children placed in a group  
          home.  

           FISCAL EFFECT  :  According to the Senate Appropriations Committee  
          analysis, the costs of this bill are estimated to be $60,000 for  
          2006-07, and $120,000 in subsequent years to cover staff time to  
          submit credit check applications and communicate outcomes to  
          foster youth.

           COMMENTS  :  According to the author, previous legislative efforts  
          and information gathered by the Assembly Select Committee on  
          Foster Care have uncovered the problem of identity theft in  
          which foster youth are victims.  Biological parents of foster  
          youth, and in some cases foster parents, have sometimes  
          exploited knowledge of a foster youth's social security number  
          and other personal information for financial gain.  Foster youth  
          who are victims of identity theft find increased difficulty in  
          obtaining housing and accessing other financial services, once  
          they are emancipated.  An estimated 6,000-7,000 foster youth  
          turn 16 years old each year.

          The federal Fair Credit Reporting Act provides for free annual  
          disclosures.  Many credit counseling firms offer cost-free  
          advice and assistance to young applicants.  

          This bill was substantially amended in the Senate.  The  
          provisions approved by the Assembly were deleted.  The subject  
          matter of this bill has not been heard in any Assembly policy  
          committee.

           
          Analysis Prepared by  :    John Boisa / HUM. S. / (916) 319-2089 


          FN: 0016261