BILL ANALYSIS
AB 2698
Page 1
ASSEMBLY THIRD READING
AB 2698 (Block)
As Amended April 19, 2010
Majority vote
HUMAN SERVICES 5-0 APPROPRIATIONS 16-0
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|Ayes:|Beall, Ammiano, Hall, |Ayes:|Fuentes, Conway, Ammiano, |
| |Logue, Swanson | |Bradford, Coto, Davis, |
| | | |Hill, Hall, Harkey, |
| | | |Miller, Nielsen, Norby, |
| | | |Skinner, Solorio, |
| | | |Torlakson, Torrico |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Adds clarifying and technical amendments to existing
requirements for county welfare departments to request consumer
credit disclosures (credit reports) on behalf of youth in foster
care at 16 years of age in order to detect and correct potential
identity theft. Specifically, this bill :
1)Allows the State Department of Social Services (DSS) to
request credit reports on behalf of a foster youth in an
effort to determine whether identity theft may have occurred.
2)Removes references to an "approved counseling organization"
and clarifies that, should the credit report show evidence of
possible identity theft, the state or the county shall refer
the matter to a government agency or nonprofit organization
that provides information or assistance to victims of identity
theft.
3)Authorizes the government agency or nonprofit organization
receiving the referral to take steps to clear the foster
youth's credit report, and report back to the county or state
department on the actions taken on the foster youth's behalf.
4)Requires the Office of Privacy Protection (OPP), in
consultation with DSS, the California Welfare Directors
Association, credit reporting agencies, and other
stakeholders, compile a list of agencies and organizations to
respond to potential instances of identity theft.
AB 2698
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EXISTING LAW requires:
1)When a youth in foster care reaches his or her 16th birthday,
the county welfare department shall request a free annual
credit report on behalf of the youth to determine whether
identity theft has occurred. Welfare and Institutions Code
(WIC) 10618.6.
2)The county welfare department to refer the youth to an
approved counseling organization providing services to victims
of identity theft if the credit report shows negative items,
or evidence of identity theft. WIC 10618.6.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, no significant costs associated with this bill.
COMMENTS : Need for this bill. Identity theft can derail a
foster youth's ability to successfully transition to adulthood
before it has begun, as it can create costly and time-consuming
barriers to applying for jobs or housing, and opening a bank
account or applying for credit. The scope of the problem is
unknown, but foster youth who often move from one placement to
another, with sensitive personal information often changing
hands, are considered particularly vulnerable. At any given
time, there are an estimated 5,000 16-year-old foster youth in
California.
The Legislature sought to address this issue with the passage of
AB 2985 (Maze), Chapter 387, Statutes of 2006. AB 2985 put in
place the existing requirements for county welfare departments
to request an annual free credit report when a foster youth
turns 16, and to provide foster youth with referrals to
nonprofit organizations providing assistance for identity theft.
According to the author, this bill is intended to strengthen
and clean up provisions AB 2985.
Writing in support of this bill, CWDA notes that the Office of
Privacy Protection has already developed a list of governmental
and non-profit groups where a youth could seek assistance with
suspected identity theft in consultation with DSS and CWDA, and
that this bill would simply allow for use of that list.
Prior and related legislation. This bill is substantially
AB 2698
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similar to AB 1324 (Bass) of 2009, vetoed by Governor
Schwarzenegger who noted that the existing law had not been
fully implemented. Governor Schwarzenegger also noted in his
veto message, "If, through the implementation, it becomes clear
that foster youth are not being served in the way the law
intended, I would be willing to reconsider this matter."
AB 2985 (Maze) Chapter 387, Statutes of 2006, enacts existing
requirements for county welfare departments to request a credit
report for foster youth, upon turning 16 years of age, and to
refer foster youth to an approved organization that provides
counseling services to victims of identity theft if identity
theft was suspected or discovered.
Analysis Prepared by : Michelle Doty Cabrera / HUM. S. / (916)
319-2089
FN: 0004357