Senate Bill No. 947

Introduced by Senator Berryhill

February 6, 2014

An act to amend Section 10072 of the Welfare and Institutions Code, relating to public social services.

LEGISLATIVE COUNSEL’S DIGEST

SB 947, as introduced, Berryhill. Electronic benefits transfer system.

Existing law, administered by the State Department of Social Services, provides for the establishment of a statewide electronic benefits transfer (EBT) system for the purpose of providing financial and food assistance benefits to needy Californians. Existing law requires that the system have a 24-hour per day toll-free telephone hotline for the reporting of lost or stolen cards and to provide recipients with information about how to have the card and personal identification number replaced.

This bill would make nonsubstantive changes to those provisions.

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

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

SECTION 1.  

Section 10072 of the Welfare and Institutions
Code is amended to read:

10072.  

The electronic benefits transfer system required by this
chapter shall be designed to do, but not be limited to, all of the
following:

(a) To the extent permitted by federal law and the rules of the
program providing the benefits, recipients who are required to
receive their benefits using an electronic benefits transfer system
shall be permitted to gain access to the benefits in any part of the
state where electronic benefits transfers are accepted. All electronic
benefits transfer systems in this state shall be designed to allow
recipients to gain access to their benefits by using every other
electronic benefits transfer system.

(b) To the maximum extent feasible, electronic benefits transfer
systems shall be designed to be compatible with the electronic
benefits transfer systems in other states.

(c) All reasonable measures shall be taken in order to ensure
that recipients have access to electronically issued benefits through
systems such as automated teller machines, point-of-sale devices,
or other devices that accept electronic benefits transfer transactions.
Benefits provided under Chapter 2 (commencing with Section
11200) of Part 3 shall be staggered over a period of three calendar
days, unless a county requests a waiver from the department and
the waiver is approved, or in cases of hardship pursuant to
subdivision (l).

(d) The system shall provide for reasonable access to benefits
to recipients who demonstrate an inability to use an electronic
benefits transfer card or other aspect of the system because of
disability, language, lack of access, or other barrier. These
alternative methods shall conform to the requirements of the
Americans with Disabilities Act (42 U.S.C. Sec. 12101, et seq.),
including reasonable accommodations for recipients who, because
of physical or mental disabilities, are unable to operate or otherwise
make effective use of the electronic benefits transfer system.

(e) The system shall permit a recipient the option to choose a
personal identification number, also known as a “PIN” number,
to assist the recipient to remember his or her number in order to
allow access to benefits. Whenever an institution, authorized
representative, or other third party not part of the recipient
household or assistance unit has been issued an electronic benefits
transfer card, either in lieu of, or in addition to, the recipient, the
third party shall have a separate card and personal identification
number. At the option of the recipient, he or she may designate
whether restrictions apply to the third party’s access to the
recipient’s benefits. At the option of the recipient head of
household or assistance unit, the county shall provide one electronic
benefits transfer card to each adult member to enable them to
access benefits.

(f) The system shall have a 24-hour per day toll-free telephone
hotline for the reporting of lost or stolen cards and begin delete that will end delete begin insert to end insert
provide recipients with information begin delete on end delete begin insert about end insert how to have the card
and personal identification number replaced.

(g) (1) A recipient shall not incur any loss of electronic benefits
after reporting that his or her electronic benefits transfer card or
personal identification number has been lost or stolen. The system
shall provide for the prompt replacement of lost or stolen electronic
benefits transfer cards and personal identification numbers.
Electronic benefits for which the case was determined eligible and
that were not withdrawn by transactions using an authorized
personal identification number for the account shall also be
promptly replaced.

(2) A recipient shall not incur any loss of cash benefits that are
taken by an unauthorized withdrawal, removal, or use of benefits
that does not occur by the use of a physical EBT card issued to the
recipient or authorized third party to directly access the benefits.
Benefits taken as described in this paragraph shall be promptly
replaced in accordance with the protocol established by the
department pursuant to paragraph (3).

(3) The State Department of Social Services shall establish a
protocol for recipients to report electronic theft of cash benefits
that minimizes the burden on recipients, ensures prompt
replacement of benefits in order to minimize the harm to recipients,
and ensures program integrity. This protocol may include the
automatic replacement of benefits without the need for recipient
reporting and verification.

(h) Electronic benefits transfer system consumers shall be
informed begin delete on end delete begin insert about end insert how to use electronic benefits transfer cards
and how to protect them from misuse.

(i) Procedures shall be developed for error resolution.

(j)  begin delete No end delete begin insert A end insert fee shall begin insert not end insert be charged by the state, a county, or an
electronic benefits processor certified by the state to retailers
participating in the electronic benefits transfer system.

(k) Except for CalFresh transactions, a recipient may be charged
a fee, not to exceed the amount allowed by applicable state and
federal law and customarily charged to other customers, for cash
withdrawal transactions that exceed four per month.

(l) A county shall exempt an individual from the three-day
staggering requirement under subdivision (c) on a case-by-case
basis for hardship. Hardship includes, but is not limited to, the
incurrence of late charges on an individual’s housing payments.