AB 1658,
as amended, Jones-Sawyer. Foster care: consumer creditbegin delete reports: security freeze.end deletebegin insert reports.end insert
Existing federal law, the Child and Family Services Improvement and Innovation Act of 2011, requires that each child in foster care under the responsibility of the state who has attained 16 years of age receives without cost a copy of any consumer report pertaining to the child each year until the child is discharged from care, and receives assistance in interpreting and resolving any inaccuracies in the report.
end insertExisting 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. 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.
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 deleteThe bill would require a county welfare department or county probation department, upon entry into foster care of a child 10 to 15 years of age, inclusive, 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 deleteThe 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 deleteExisting 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.
end deleteThis bill would require, after notification of placement by a county welfare or probation department and upon request of the department, a consumer credit reporting agency to, among other things, notify the county welfare or probation department of whether the child has an active consumer credit record and place a security freeze on the credit report of a child placed in foster care if the child is found to have an active consumer credit record.
end deleteThe 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.
end deleteThis 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.
end deleteThis bill would require all counties and the State Department of Social Services to be in full compliance with these provisions and the federal act by July 1, 2015, and would require the State Department of Social Services to, by January 1, 2016, submit a report to the Legislature that identifies the counties that are in compliance with these provisions and the federal act, and the counties that are not in compliance.
end insertVote: majority.
Appropriation: no.
Fiscal committee: yes.
State-mandated local program: begin deleteyes end deletebegin insertnoend insert.
The people of the State of California do enact as follows:
Section 1785.11.7 is added to the Civil Code, to
2read:
(a) In furthering the policy of the State of California
4that children in foster care have the right to a life that is free from
5abuse,
following notification by a county welfare or probation
6department of the placement of a child 10 to 15 years of age,
7inclusive, into foster care pursuant to Section 10618.6 of the
8Welfare and Institutions Code, a consumer credit reporting agency,
9upon request of the county welfare or probation department, shall
10
do all of the following:
11(1) Notify the county welfare or probation department of
12whether the child placed in foster care has an active consumer
13credit record.
P4 1(2) If the child is found to have an active consumer credit record,
2place a security freeze on the child’s credit report pursuant to
3Section 1785.11.2.
4(3) If the child is not found to have an active consumer credit
5report, preclude the child’s information from being used to create
6a credit account in his or her name.
7(b) This section does not apply to a check services company, a
8fraud prevention services company, or a deposit account
9information service company in accordance with
Section 1785.11.6.
Section 10618.6 of the Welfare and Institutions
12Code is amended to read:
(a) (1) The Legislature finds and declares that
14children in foster care are at greater risk of identity theft and having
15negative findings placed on their consumer credit report due to the
16unlawful actions of others. The Legislature further recognizes that
17a child’s consumer credit report is more vulnerable while in foster
18care, and a child in foster care is more likely to not discover he or
19she is a victim of identity theft until he or she applies for a job,
20opens a financial account, or is notified by law enforcement that
21his or her personal information has been stolen.
22(2) In order to help reduce the rates by which a child in foster
23care experiences identity
theft, a county welfare department or
24county probation department shall, upon entry into foster care of
25a child 10 to 15 years of age, inclusive, do all of the following:
26(A) Notify each of the three major credit reporting agencies that
27the child is in foster care.
28(B) Discover whether the foster child has an active consumer
29credit report.
30(C) If a foster child is found to have an active consumer credit
31report, the county welfare or probation department shall,
32commencing July 1, 2015, do both of the following:
33(i) Immediately request that the credit reporting agencies place
34a freeze on the child’s report.
35(ii) Work with the Department of Justice’s Privacy Enforcement
36and Protection Unit to resolve any credit irregularities or negative
37actions that have been discovered on the foster child’s credit report.
38(D) For foster children who have not been found to have an
39active consumer credit report, provide the credit reporting agencies
P5 1with information necessary to preclude a foster child from having
2a credit account created in his or her name.
3(b)
begin insert(a)end insert Pursuant to the federal Child and Family Services
5Improvement and Innovation Act of 2011, when a child in a foster
6care placement reaches his or her 16th birthday, and each year
7thereafter, while the child is under the jurisdiction of the juvenile
8court, the county welfare department, county probation department,
9or, if an automated process is available, the State Department of
10Social Services, shall request a consumer credit disclosure from
11each of the three major credit reporting agencies, pursuant to the
12free annual disclosure provision of
the federal Fair Credit Reporting
13Act, on the child’s behalf, notwithstanding any other law.
14(1) If a child in foster care placement is found to have an active
15consumer credit report, the county social worker or probation
16officer shall immediately notify the three major credit reporting
17agencies of the child’s placement in foster care and request the
18placement of a freeze on the report, unless the child declines.
19(2) If a child in foster care placement is not found to have an
20active consumer credit report, the county social worker or probation
21officer shall provide the credit reporting agencies with information
22necessary to preclude the child from having a credit account created
23in his or her name, unless the child declines.
24(c) (1)
end delete
25begin insert(b)end insert For a nonminor dependent, the county welfare department
26or county probation department shall assist the young adult, on a
27yearly basis while the nonminor dependent is under the jurisdiction
28of the juvenile court, with requesting the consumer credit disclosure
29from each of the three major credit reporting agencies, pursuant
30to the free annual disclosure provision of the federal Fair Credit
31Reporting Act.
32(2) If a nonminor dependent is found to have an active consumer
33credit report, the county social worker or probation officer shall
34ensure that the nonminor dependent receives
assistance with the
35placement of a freeze on his or her credit report.
19 36(d)
end delete
37begin insert(c)end insert The county social worker or county probation officer shall
38ensure that the child or nonminor dependent receives assistance
39with interpreting the consumer credit disclosure and resolving any
40inaccuracies. The assistance may include, but is not limited to,
P6 1referring the youth to a governmental or nonprofit agency that
2provides consumer credit services. This section does not require
3the social worker or probation officer to be the individual providing
4the direct assistance with interpreting the
consumer credit
5disclosure or resolving the inaccuracies.
28 6(e)
end delete
7begin insert(d)end insert Notwithstanding any other law, in order to request a
8consumer credit disclosure for youth pursuant to this section, the
9county welfare department, county probation department, or, if an
10automated process is available, the State Department of Social
11Services may release necessary information to a credit reporting
12agency.
13(f) No later than July 1, 2015, the department shall, in
14consultation with the Administrative Office of the Courts, the
15Department of Justice’s Privacy Enforcement and Protection Unit,
16the California Welfare Directors Association, the County Probation
17Officers of California, youth-based organizations made up of
18current and former foster children, and consumer, privacy, and
19foster children advocacy organizations, issue instructions to
20counties via an all-county letter or similar instruction to do all of
21the following:
22(1) Provide the circumstances under which a freeze of a foster
23child’s credit report is lifted, including when the child exits,
24emancipates,
or runs away from foster care, and by whom the
25freeze can be lifted.
26(2) Provide instruction as to how a county welfare or probation
27department shall notify the three major credit reporting agencies
28that a foster child can reacquire the ability to develop credit.
29(3) Identify required processes and best practices in the
30identification and resolution of credit irregularities or negative
31actions on a foster child’s credit report, including, but not limited
32to, entering the information into the foster child’s case plan and
33notification of the juvenile court, child’s counsel, and other adults
34responsible for the child’s care, as necessary.
35(e) All counties and the State Department of Social Services
36shall be in full compliance with this section and the federal Child
37and Family Services Improvement and Innovation Act of 2011 by
38July 1, 2015.
39(f) (1) No later than January 1, 2016, the State Department of
40Social Services shall submit a report to the Legislature that
P7 1identifies the counties that are in compliance with this section and
2the federal Child and Family Services Improvement and Innovation
3Act of 2011, and the counties that are not in compliance.
4(2) A report submitted pursuant to paragraph (1) shall be
5submitted in compliance with Section 9795 of the Government
6Code.
7(3) The requirement for submitting a report imposed under
8paragraph (1) is inoperative on January 1, 2020, pursuant to
9Section 10231.5 of the Government Code.
If the Commission on State Mandates determines that
11this act contains costs mandated by the state, reimbursement to
12local agencies and school districts for those costs shall be made
13pursuant to Part 7 (commencing with Section 17500) of Division
144 of Title 2 of the Government Code.
O
95