BILL ANALYSIS
AB 2698
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2698 (Block)
As Amended August 12, 2010
Majority vote
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|ASSEMBLY: |71-0 |(May 20, 2010) |SENATE: |35-0 |(August 19, |
| | | | | |2010) |
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Original Committee Reference: HUM. S.
SUMMARY : Adds clarifying and technical changes 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.
The Senate amendments :
1)Remove the California State Department of Social Services
(DSS) from the entities responsible for acting on behalf of
the foster youth to provide referrals and receive information
related to remedial actions taken to clear the youth's credit
record.
2)Require, if DSS makes the request for the credit report, DSS
use the most efficient process possible in processing
requests.
3)Add other technical and clarifying amendments.
EXISTING LAW :
1)Requires that, 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)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.
AB 2698
Page 2
AS PASSED BY THE ASSEMBLY , this bill added 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.
FISCAL EFFECT : According to the Senate Appropriations Committee
analysis, 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.
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.
Existing law requires 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 current law.
Writing in support of this bill, County Welfare Directors
Association 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
similar to AB 1324 (Bass) of 2009, vetoed by Governor
Schwarzenegger who noted 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 2698
Page 3
AB 2985 (Maze) Chapter 387, Statutes of 2006, enacted 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 providing
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: 0006121