BILL ANALYSIS
SENATE HUMAN
SERVICES COMMITTEE
Senator Carol Liu, Chair
BILL NO: AB 2698
A
AUTHOR: Block
B
VERSION: April 19, 2010
HEARING DATE: June 22, 2010
2
FISCAL: Appropriations
6
9
CONSULTANT:
8
Hailey
SUBJECT
Foster youth: identity theft
SUMMARY
Clarifies requirements for county welfare departments to
request credit reports on behalf of youth in foster care at
16 years of age in order to detect and correct identity
theft and requires the Department of Social Services to
share in this responsibility.
ABSTRACT
Current law
1) Requires the county welfare department to request a
free annual credit report on behalf of a youth in foster
care, when that individual reaches 16 years of age, to
determine if identity theft has occurred. [Welfare and
Institutions Code (WIC) 10618.6]
2) Requires the county welfare department to refer the
youth to an approved counseling organization providing
services to victims of identity theft if the credit report
Continued---
STAFF ANALYSIS OF ASSEMBLY BILL 2698 (Block) Page
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shows negative items, or evidence of identity theft. (WIC
10618.6)
3) Creates the office of privacy protection, within the
State and Consumer Services Agency, to provide information
and assistance on privacy issues to individuals and to
recommend privacy practices to businesses and other
organizations.
This bill
1) Provides that the State Department of Social Services
(DSS) shares with the county welfare department the
responsibility 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 negative items or evidence of possible identity theft,
DSS 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 to report back to the
county or to DSS on the actions taken on the foster youth's
behalf.
4) Requires the office of privacy protection, in
consultation with DSS, the California Welfare Directors
Association, credit reporting agencies, and other
stakeholders, to compile a list of agencies and
organizations to whom the county or DSS may refer instances
of possible identity theft or negative items from a credit
report.
FISCAL IMPACT
According to the Assembly Appropriations Committee, there
are no significant costs associated with this bill.
BACKGROUND AND DISCUSSION
Need for this bill
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According to the author, identity theft can derail a foster
youth's ability to transition successfully to adulthood,
and it can create costly and time-consuming barriers to
applying for jobs or housing or to opening a bank account
or applying for credit. The scope of the problem is
unknown, but foster youth who move from one placement to
another, with sensitive personal information changing
hands, are considered particularly vulnerable.
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
in AB 2985.
The County Welfare Directors Association notes that the
office of privacy protection, within the State and Consumer
Services Agency, has developed a list of governmental and
non-profit groups where a youth can seek assistance when
identity theft may have occurred. This bill would allow
county child welfare agencies and the state DSS to use that
list.
Prior and related legislation
This bill is substantially similar to AB 1324 (Bass) of
2009, vetoed by the governor, who noted that the existing
law had not been fully implemented. Governor
Schwarzenegger also wrote 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. Each year, about 5,000 youth in foster care
turn 16.
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Assembly votes
Human Services 5-0
Appropriations16-0
Floor 71-0
POSITIONS
Support: California Alliance of Child and Family
Services
California Probation Parole and Correctional
Association
California State Association of Counties
California State PTA
Chief Probation Officers of California
Children's Law Center of Los Angeles
County Welfare Directors Association
Department of Children and Family Services,
Los Angeles County
Family Law Section, State Bar of California
John Burton Foundation for Children Without
Homes
Los Angeles County Board of Supervisors
Los Angeles County Sheriff's Department
Oppose: Department of Social Services
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