BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 2698|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 2698
Author: Block (D)
Amended: 8/11/10 in Senate
Vote: 21
SENATE HUMAN SERVICES COMMITTEE : 5-0, 6/22/10
AYES: Liu, Emmerson, Romero, Runner, Yee
SENATE APPROPRIATIONS COMMITTEE : 9-0, 8/2/10
AYES: Kehoe, Alquist, Ashburn, Corbett, Emmerson, Price,
Wolk, Wyland, Yee
NO VOTE RECORDED: Leno, Walters
ASSEMBLY FLOOR : 71-0, 5/20/10 - See last page for vote
SUBJECT : Foster youth: identity theft
SOURCE : Author
DIGEST : This bill 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.
Senate Floor Amendments of 8/11/10 clarify that state and
county agencies are authorized to receive specified
reports, and make technical changes.
ANALYSIS :
CONTINUED
AB 2698
Page
2
Existing 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. (Section
10618.6 of the Welfare and Institutions Code [WIC])
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 shows negative items, or evidence of identity
theft. (WIC 10618.6)
3. Creates the Office of Privacy Protection (OPP), 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 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, the state or county is authorized to
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 on the actions taken on the foster
youth's behalf.
4. States that if DSS submits the request, DSS shall use
AB 2698
Page
3
the most efficient means possible, such as via a batch
process using lists of youth turning 16 years of age, on
a quarterly or semiannual basis, rather than via
individual manual requests.
5. Requires the OPP, 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.
Prior/Related Legislation
This bill is substantially similar to AB 1324 (Bass),
2009-10 Session, which was vetoed by the Governor. The
Governor 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, approximately 5,000 youth in foster
care turn 16 years of age.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
New DSS authority $0* $0* $0* General
New OPP task: develop list Very minor and
AB 2698
Page
4
absorbableGeneral
Authorizes state & counties Voluntary actions;
likely very minor General/
to take specified actions Local
*Potential minor costs pressure to assume duties currently
charged to county welfare departments. To the degree that
DSS assumed new, minor responsibilities, the counties
would save time.
SUPPORT : (Verified 8/12/10)
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
OPPOSITION : (Verified 8/12/10)
Department of Social Services
ARGUMENTS IN SUPPORT : According to the author's office,
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.
ARGUMENTS IN OPPOSITION : The Department of Social
Services writes: "California continues to face a severe
fiscal crisis. Due to the extraordinary budgetary
AB 2698
Page
5
constraints imposed by the state's economic climate, the
Administration has proposed language in the Human Services
Budget Trailer Bill which would suspend implementation of
this provision of law until fiscal circumstances permit.
In light of this, CDSS believes that consideration of any
revisions to this law should be deferred until such time as
a more favorable economic environment allows its
implementation."
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall,
Bill Berryhill, Tom Berryhill, Blakeslee, Block,
Blumenfield, Bradford, Brownley, Buchanan, Caballero,
Charles Calderon, Carter, Chesbro, Conway, Cook, Coto,
Davis, De Leon, DeVore, Emmerson, Eng, Feuer, Fong,
Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,
Gilmore, Hagman, Hall, Hayashi, Hernandez, Hill, Huber,
Huffman, Jeffries, Jones, Lieu, Logue, Bonnie Lowenthal,
Ma, Mendoza, Miller, Monning, Nestande, Niello, Nielsen,
Norby, V. Manuel Perez, Portantino, Ruskin, Salas,
Saldana, Silva, Skinner, Smyth, Solorio, Audra
Strickland, Swanson, Torlakson, Torres, Torrico, Tran,
Yamada
NO VOTE RECORDED: De La Torre, Evans, Fletcher, Harkey,
Knight, Nava, Villines, John A. Perez, Vacancy
CTW:mw 8/12/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****