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

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

---

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

---

BILL NUMBER: AB 1658	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 15, 2014
	AMENDED IN ASSEMBLY  MAY 23, 2014
	AMENDED IN ASSEMBLY  APRIL 22, 2014
	AMENDED IN ASSEMBLY  MARCH 17, 2014

INTRODUCED BY   Assembly Members  Jones-Sawyer, 
   Chau,   
 and Quirk-Silva   Jones-Sawyer   and
Chau 
    (   Principal coauthor:   Assembly Member
  Quirk-Silva   ) 

                        FEBRUARY 12, 2014

   An act to  add Section 1785.11.7 to the Civil Code, and 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.   reports.  

   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. 
   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 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 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.  

   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 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. 

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


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, following notification by a county welfare or
probation department of the placement of a child 10 to 15 years of
age, inclusive, 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 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 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.
   (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 1.   Section 10618.6
of the Welfare and Institutions Code is amended to read: 
   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 10 to 15 years of age, inclusive, 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) 
   10618.6.    (a)  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.
   (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) 
    (b)  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.  

   (d) 
    (c)  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. This section 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. 
   (e) 
    (d)  Notwithstanding any other law, in order to request
a consumer credit disclosure for youth pursuant to this section, the
county welfare department, county probation department, or, if an
automated process is available, the State Department of Social
Services 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.  
   (e) All counties and the State Department of Social Services shall
be in full compliance with this section and the federal Child and
Family Services Improvement and Innovation Act of 2011 by July 1,
2015.  
   (f) (1) No later than January 1, 2016, the State Department of
Social Services shall submit a report to the Legislature that
identifies the counties that are in compliance with this section and
the federal Child and Family Services Improvement and Innovation Act
of 2011, and the counties that are not in compliance.  
   (2) A report submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.
 
   (3) The requirement for submitting a report imposed under
paragraph (1) is inoperative on January 1, 2020, pursuant to Section
10231.5 of the Government Code.  
  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.