Bill Text: CA AB1658 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Foster care: consumer credit reports.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2014-09-29 - Chaptered by Secretary of State - Chapter 762, Statutes of 2014. [AB1658 Detail]

Download: California-2013-AB1658-Amended.html

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BILL NUMBER: AB 1658	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 22, 2014
	AMENDED IN ASSEMBLY  MARCH 17, 2014

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  , 
and to  add Section 16515 to   amend Section
10618.6 of  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.  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 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.  
   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.  
   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.  
   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. 
   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  agency   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  minor dependent under 17 years of age
  child  placed in foster care  if the child
is found to have an active consumer credit record  .
   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,  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. 
    (b)     Following
  following  notification by a county welfare
 agency   or probation department  of the
placement of a  minor dependent   child 
into foster care  pursuant to Section 10618.6 of the Welfare and
Institutions Code  , a consumer credit reporting agency  ,
upon request of the county welfare or probation department, 
shall  place   do all of the following: 

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

    (2)     If the child is found to have an
active consumer credit record, place  a security freeze on the
 minor dependent's   child's  credit report
pursuant to Section 1785.11.2. 
   (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.  
   (c) This section shall only apply to minor dependents who are
under 17 years of age.  
   (d) 
    (b)  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.

  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. 
   SEC. 2.    Section 10618.6 of the   Welfare
and Institutions Code   is amended to read:  
   10618.6.  (a) When 
    10618.6.    (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.
 
   (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:  
   (A) Notify each of the three major credit reporting agencies that
the child is in foster care.  
   (B) Discover whether the foster child has an active consumer
credit report.  
   (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:  
   (i) Immediately request that the credit reporting agencies place a
freeze on the child's report.  
   (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.  
   (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. 
    (b)     Pursuant to the federal Child and
Family Services Improvement and Innovation Act of 2011, when  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. 
   (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. 

   (b)  
   (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. 
    (c)     (1)  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. 
   (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.  
   (c) 
    (d)  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.  Nothing in this
  This  section  requires  
does not require  the social worker or probation officer to be
the individual providing the direct assistance with interpreting the
consumer credit disclosure or resolving the inaccuracies. 
   (d) 
    (e)  Notwithstanding any other law, in order to request
a consumer credit disclosure for youth  described in
subdivision (a),   pursuant to this section,  the
county welfare department, county probation department, or  ,
 if an automated process is available, the State Department of
Social Services  is authorized to   may 
release necessary information to a credit reporting agency. 
   (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:  
   (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.  
   (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.
 
   (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. 
  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.