Bill Text: CA AB2035 | 2011-2012 | Regular Session | Amended

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

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Bill Title: Electronic benefits transfer cards.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-09-14 - Chaptered by Secretary of State - Chapter 319, Statutes of 2012. [AB2035 Detail]

Download: California-2011-AB2035-Amended.html

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BILL NUMBER: AB 2035	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 18, 2012
	AMENDED IN ASSEMBLY  APRIL 16, 2012

INTRODUCED BY   Assembly Member Bradford

                        FEBRUARY 23, 2012

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2035, as amended, Bradford. Electronic benefits transfer cards:
skimming.
   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. Under existing
law, a recipient does not incur any loss of electronic benefits if
his or her EBT card or personal identification number has been lost
or stolen.
   This bill additionally would provide that a recipient would not
incur any loss of electronic benefits stolen through the practice of
skimming, as defined.
   By increasing duties of counties in administering public social
services programs, this bill would impose a state-mandated local
program.
   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.  The Legislature finds and declares as follows:
   (a) State law provides relief for CalWORKs parents and recipients,
to restore their benefits when stolen.
   (b) However, no similar remedy exists when the benefits are
delivered in electronic form, via an electronic benefits transfer
(EBT) card, and the benefits have been stolen through the practice of
skimming.
   (c) Countless families that depend on the basic needs grants
CalWORKs provides are vulnerable to electronic crimes, and currently
have nowhere to turn.
   (d) Because of this inequity, a petition for writ of mandate,
Carpio v. Lightbourne (Case No. BS135127) was filed in the Los
Angeles County Superior Court in December 2011, to address a solution
for families that have been victims of skimming.
   (e) It is therefore the intent of the Legislature in enacting this
act to address the problem of electronic theft of public benefits
that is at issue in Carpio v. Lightbourne.
  SEC. 2.  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"
  "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 that will
provide recipients with information on 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 electronic benefits
that are removed from his or her electronic benefits transfer account
through skimming, as defined in paragraph (3). Electronic benefits
withdrawn by skimming shall be promptly replaced, in accordance with
Section 29853.5 of the Government Code, after the recipient reports
the loss.
   (3) The State Department of Social Services shall establish a
protocol for recipients to report skimming that minimizes the burden
on  , and ensures prompt payment of benefits to, 
recipients  , ensures prompt replacement of benefits, and ensures
program integrity  . For purposes of this section, "skimming"
means a form of theft by which a recipient's EBT account information,
or "PIN" number, or both, are accessed by an unauthorized person,
who uses that information to unlawfully remove funds from the
recipient's account.
   (h) Electronic benefits transfer system consumers shall be
informed on how to use electronic benefits transfer cards and how to
protect them from misuse.
   (i) Procedures shall be developed for error resolution.
   (j) No fee shall 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.
  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.