Amended in Assembly April 22, 2014

Amended in Assembly March 17, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1658

Introduced by Assembly Members Jones-Sawyer, Chau, and Quirk-Silva

February 12, 2014

An act to add Section 1785.11.7 to the Civil Code begin insert , end insert and to begin delete add Section 16515 to end delete begin insert amend Section 10618.6 of end insert the Welfare and Institutions Code, relating to foster care.

LEGISLATIVE COUNSEL’S DIGEST

AB 1658, as amended, Jones-Sawyer. Foster care: consumer credit reports: security freeze.

Existing law provides for child welfare services, which are public social services directed toward, among other purposes, protecting and promoting the welfare of all children, including those in foster care placement. Existing law declares the policy of the Legislature that all children in foster care be free from abuse. begin insert Existing law requires a county welfare department, county probation department, or the State Department of Social Services to request a consumer credit disclosure on behalf of a child in a foster care placement in the county when the child reaches his or her 16th birthday, and each year thereafter while the child is under the jurisdiction of the juvenile court. end insert

begin delete

This bill would require, at the time of placement, a county welfare agency to notify every consumer credit reporting agency of the placement of a minor dependent under 17 years of age into foster care. By imposing new duties on county officials, the bill would impose a state-mandated local program.

end delete begin insert

This bill would additionally require, if the child is found to have an active consumer credit report, the county social worker or probation officer to immediately notify the 3 major credit reporting agencies of the child’s placement in foster care and request the placement of a freeze on the report, except as specified. The bill would require, if the child does not have an active consumer credit report, the county social worker or probation officer to provide the credit reporting agencies with information necessary to preclude the child from having a credit account created in his or her name, except as specified.

end insert begin insert

The bill would require a county welfare department or county probation department, upon entry into foster care of a child under 16 years of age, to notify each of the 3 major credit reporting agency that the child is in foster care, to discover whether the foster child has an active consumer credit report, and, if there is an active report, to immediately require that the credit reporting agencies place a freeze on the child’s report and to work with the Department of Justice’s Privacy Enforcement and Protection Unit to resolve any credit irregularities or negative actions that have been discovered. By imposing new duties on county officials, the bill would impose a state-mandated local program.

end insert begin insert

The bill would require the department, no later than July 1, 2015, and in consultation with specified entities, to issue instructions to counties via an all-county letter or similar instruction to do specified things, including providing the circumstances under which a freeze of a foster child’s credit report is lifted.

end insert

Existing law, the Consumer Credit Reporting Agencies Act, defines and regulates consumer credit reports and permits a consumer to place a security freeze, defined as a notice placed in a consumer’s credit report, at the request of the consumer, and subject to certain exceptions, that prohibits the consumer credit reporting agency from releasing the consumer’s credit report or any information from it without the express authorization of the consumer, on his or her credit report by making a request in writing by certified mail to a consumer credit reporting agency.

This bill would require, after notification of placement by a county welfare begin delete agency end delete begin insert or probation department and upon request of the department end insert , a consumer credit reporting agency to begin insert , among other things, notify the county welfare or probation department of whether the child has an active consumer credit record and end insert place a security freeze on the credit report of a begin delete minor dependent under 17 years of age end delete begin insert child end insert placed in foster care begin insert if the child is found to have an active consumer credit record end insert .

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 1785.11.7 is added to the Civil Code, to
read:

1785.11.7.  

(a) In furthering the policy of the State of California
that children in foster care have the right to a life that is free from
abuse, begin delete it is the intent of the Legislature that a security freeze shall
be put into effect on the credit report for all minor dependents in
foster care under 17 years of age to protect them from identity
theft and financial crimes through the unauthorized usage of their
credit. end delete

begin delete (b) end delete begin delete   end delete begin delete Following end delete begin insert following end insert notification by a county welfare begin delete agency end delete
begin insert or probation department end insert of the placement of a begin delete minor dependent end delete
begin insert child end insert into foster care begin insert pursuant to Section 10618.6 of the Welfare
and Institutions Code end insert , a consumer credit reporting agency begin insert , upon
request of the county welfare or probation department, end insert shall begin delete place end delete
begin insert do all of the following: end insert

begin insert

(1) Notify the county welfare or probation department of whether
the child placed in foster care has an active consumer credit
record.

end insert

begin insert (2) end insert begin insert   end insert begin insert If the child is found to have an active consumer credit record,
place end insert a security freeze on the begin delete minor dependent’s end delete begin insert child’s end insert credit
report pursuant to Section 1785.11.2.

begin insert

(3) If the child is not found to have an active consumer credit
report, preclude the child’s information from being used to create
a credit account in his or her name.

end insert begin delete

(c) This section shall only apply to minor dependents who are
under 17 years of age.

end delete begin delete

(d)

end delete

begin insert (b) end insert  This section does not apply to a check services company, a
fraud prevention services company, or a deposit account
information service company in accordance with Section 1785.11.6.

begin delete

SEC. 2.  

Section 16515 is added to the Welfare and Institutions
Code, to read:

16515.  

A county welfare agency shall notify every consumer
credit reporting agency of the placement of a minor dependent
under 17 years of age into foster care at the time of placement.

end delete

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 10618.6 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

begin delete

10618.6.  

(a) When

end delete

begin insert

begin insert 10618.6. end insert   

end insert begin insert

(a) (1) The Legislature finds and declares that
children in foster care are at greater risk of identity theft and
having negative findings placed on their consumer credit report
due to the unlawful actions of others. The Legislature further
recognizes that a child’s consumer credit report is more vulnerable
while in foster care, and a child in foster care is more likely to not
discover he or she is a victim of identity theft until he or she applies
for a job, opens a financial account, or is notified by law
enforcement that his or her personal information has been stolen.

end insert begin insert

(2) In order to help reduce the rates by which a child in foster
care experiences identity theft, a county welfare department or
county probation department shall, upon entry into foster care of
a child under 16 years of age, do all of the following:

end insert begin insert

(A) Notify each of the three major credit reporting agencies
that the child is in foster care.

end insert begin insert

(B) Discover whether the foster child has an active consumer
credit report.

end insert begin insert

(C) If a foster child is found to have an active consumer credit
report, the county welfare or probation department shall,
commencing July 1, 2015, do both of the following:

end insert begin insert

(i) Immediately request that the credit reporting agencies place
a freeze on the child’s report.

end insert begin insert

(ii) Work with the Department of Justice’s Privacy Enforcement
and Protection Unit to resolve any credit irregularities or negative
actions that have been discovered on the foster child’s credit
report.

end insert begin insert

(D) For foster children who have not been found to have an
active consumer credit report, provide the credit reporting agencies
with information necessary to preclude a foster child from having
a credit account created in his or her name.

end insert

begin insert (b) end insert begin insert   end insert begin insert Pursuant to the federal Child and Family Services
Improvement and Innovation Act of 2011, when end insert a child in a foster
care placement reaches his or her 16th birthday, and each year
thereafter, while the child is under the jurisdiction of the juvenile
court, the county welfare department, county probation department,
or if an automated process is available, the State Department of
Social Services, shall request a consumer credit disclosure from
each of the three major credit reporting agencies, pursuant to the
free annual disclosure provision of the federal Fair Credit Reporting
Act, on the child’s behalf, notwithstanding any other law.

begin insert

(1) If a child in foster care placement is found to have an active
consumer credit report, the county social worker or probation
officer shall immediately notify the three major credit reporting
agencies of the child’s placement in foster care and request the
placement of a freeze on the report, unless the child declines.

end insert begin delete

(b)

end delete begin insert

(2) If a child in foster care placement is not found to have an
active consumer credit report, the county social worker or
probation officer shall provide the credit reporting agencies with
information necessary to preclude the child from having a credit
account created in his or her name, unless the child declines.

end insert

begin insert (c) end insert begin insert   end insert begin insert (1) end insert  For a nonminor dependent, the county welfare
department or county probation department shall assist the young
adult, on a yearly basis while the nonminor dependent is under the
jurisdiction of the juvenile court, with requesting the consumer
credit disclosure from each of the three major credit reporting
agencies, pursuant to the free annual disclosure provision of the
federal Fair Credit Reporting Act.

begin insert

(2) If a nonminor dependent is found to have an active consumer
credit report, the county social worker or probation officer shall
ensure that the nonminor dependent receives assistance with the
placement of a freeze on his or her credit report.

end insert begin delete

(c)

end delete

begin insert (d) end insert  The county social worker or county probation officer shall
ensure that the child or nonminor dependent receives assistance
with interpreting the consumer credit disclosure and resolving any
inaccuracies. The assistance may include, but is not limited to,
referring the youth to a governmental or nonprofit agency that
provides consumer credit services. begin delete Nothing in this end delete begin insert This end insert section
begin delete requires end delete begin insert does not require end insert the social worker or probation officer to
be the individual providing the direct assistance with interpreting
the consumer credit disclosure or resolving the inaccuracies.

begin delete

(d)

end delete

begin insert (e) end insert  Notwithstanding any other law, in order to request a
consumer credit disclosure for youth begin delete described in subdivision (a), end delete
begin insert pursuant to this section, end insert the county welfare department, county
probation department, or begin insert , end insert if an automated process is available, the
State Department of Social Services begin delete is authorized to end delete begin insert may end insert release
necessary information to a credit reporting agency.

begin insert

(f) No later than July 1, 2015, the department shall, in
consultation with the Administrative Office of the Courts, the
Department of Justice’s Privacy Enforcement and Protection Unit,
the California Welfare Directors Association, the County Probation
Officers of California, youth-based organizations made up of
current and former foster children, and consumer, privacy, and
foster children advocacy organizations, issue instructions to
counties via an all-county letter or similar instruction to do all of
the following:

end insert begin insert

(1) Provide the circumstances under which a freeze of a foster
child’s credit report is lifted, including when the child exits,
emancipates, or runs away from foster care, and by whom the
freeze can be lifted.

end insert begin insert

(2) Provide instruction as to how a county welfare or probation
department shall notify the three major credit reporting agencies
that a foster child can reacquire the ability to develop credit.

end insert begin insert

(3) Identify required processes and best practices in the
identification and resolution of credit irregularities or negative
actions on a foster child’s credit report, including, but not limited
to, entering the information into the foster child’s case plan and
notification of the juvenile court, child’s counsel, and other adults
responsible for the child’s care, as necessary.

end insert

SEC. 3.  

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.