Bill Text: CA AB2141 | 2023-2024 | Regular Session | Amended

California Assembly Bill 2141

Bill Title: Cash assistance programs: direct deposit.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-05-16 - In committee: Held under submission. [AB2141 Detail]

Download: California-2023-AB2141-Amended.html

Amended IN Assembly April 08, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 2141

Introduced by Assembly Member Gipson

February 06, 2024

An act to amend Section 11006.2 of the Welfare and Institutions Code, relating to public social services.

LEGISLATIVE COUNSEL'S DIGEST

AB 2141, as amended, Gipson. Cash assistance programs: direct deposit.

Existing law establishes the State Department of Social Services, which implements various public social service programs, including the Cash Assistance Program for Aged, Blind, and Disabled Legal Immigrants, the California Work Opportunity and Responsibility to Kids (CalWORKS) program, and general assistance aid, under which each county provides cash assistance and other benefits to qualified low-income families and individuals. Existing law requires counties to annually or periodically redetermine eligibility or benefits under public social service programs.

Existing law provides for the establishment of a statewide electronic benefits transfer (EBT) system, administered by the department, for the purpose of providing financial and food assistance benefits and requires certain benefit payments, including payments under CalWORKs, that are directly deposited into an account of the recipient’s choice to be deposited into a qualifying account.

This bill would include general assistance benefits among the cash assistance benefits that may be delivered by direct deposit. The bill would also require the applications for programs providing cash assistance benefits to include information on the application regarding the applicant’s right to choose to have their funds directly ~~deposited.~~ deposited or to be issued an EBT card. The bill would also require each county to inform the recipient of that right during their redetermination for eligibility. By increasing county duties, 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 the statutory provisions noted above.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES

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

SECTION 1.

Section 11006.2 of the Welfare and Institutions Code is amended to read:

11006.2.

(a) (1) The department may provide for the delivery of public assistance payments, including benefits issued under Section 17000, at any time during the month.

(2) The application for a cash assistance program, including, but not limited to, the Cash Assistance Program for Aged, Blind, and Disabled Legal Immigrants, the California Work Opportunity and Responsibility to Kids program, ~~and~~ and, provided that the county permits direct deposit, general assistance aid provided under Section 17000, shall include information regarding the applicant’s right to choose to have their funds directly ~~deposited.~~ deposited or to be issued an EBT card. The county providing the benefits shall also inform the recipient of the right to direct deposit of their cash assistance benefits at the recipient’s annual redetermination of eligibility.

(b) (1) Notwithstanding any other law, any person entitled to the receipt of public assistance payments may authorize payment to be directly deposited by electronic fund transfer into the person’s qualifying account at the insured depository financial institution of the person’s choice under a program for direct deposit by electronic transfer as established in this section. The direct deposit to a qualifying account shall discharge the department’s obligation with respect to the payment.

(2) Each county treasurer shall make an agreement with one or more insured depository financial institutions participating in the Automated Clearing House pursuant to the local rules, and shall, by December 1, 2001, establish a program for the direct deposit by electronic fund transfer of payments to any person entitled to the receipt of public assistance benefits who authorizes the direct deposit of the benefits into the person’s qualifying account at the insured depository financial institution of the person’s choice. Each county treasurer has no obligation to determine whether the account at the insured depository financial institution of the person’s choice is a qualifying account, as defined in paragraph (3).

(3) For purposes of this section, a “qualifying account” is one of the following:

(A) A demand deposit or savings account at an insured depository financial institution that is offered directly by the insured depository financial institution on its internet website or through its branches and that is in the name of the person entitled to receipt of public assistance payments.

(B) A prepaid account, or a demand deposit or savings account offered by or through an entity other than an insured depository financial institution, that meets all of the following:

(i) The account is held at an insured depository financial institution.

(ii) The account is set up to meet the requirements for direct or passthrough deposit or share insurance payable to the person entitled to the receipt of public assistance payments by the Federal Deposit Insurance Corporation in accordance with Part 330 of Title 12 of the Code of Federal Regulations, or the National Credit Union Share Insurance Fund in accordance with Part 745 of Title 12 of the Code of Federal Regulations.

(iii) The account is not attached to a credit or overdraft feature that is automatically repaid from the account unless the credit or overdraft feature has no fee, charge, or cost, whether direct, required, voluntary, or involuntary, or the credit or overdraft feature complies with the requirements for credit offered in connection with a prepaid account under the federal Truth in Lending Act (15 U.S.C. Sec. 1601 et seq.) and its implementing regulations.

(iv) The account complies with all of the requirements, and provides the holder of the account with all of the consumer protections, that apply to an account under the rules implementing the Electronic Fund Transfer Act (EFTA) (15 U.S.C. Sec. 1693 et seq.).

(4) A person or entity that is not an insured depository financial institution that offers, maintains, or manages an account that does not comply with paragraph (3) shall not solicit, accept, or facilitate the direct deposit of public assistance payments to the account.

(5) For purposes of this section, each county treasurer and county welfare department shall not be held liable for authorizing a direct deposit of public assistance payments into an account, designated by the person entitled to receipt of public assistance benefits, that does not comply with paragraph (3).

(6) This subdivision shall apply in each county that offers a program for direct deposit by electronic funds transfer to some or all of its employees.

(1) “Insured depository financial institution” means a state or national bank, a state or federal savings and loan association, a mutual savings bank, or a state or federal credit union that holds deposits insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration.

(2) “Prepaid account” has the same meaning as that term is defined in regulations under the EFTA.

(d) (1) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement, administer, interpret, or make specific this section by means of all-county letters or similar written instructions from the department. These all-county letters or similar instructions shall have the same force and effect as regulations.

(2) Any all-county letters or similar written instructions that the department elects to issue pursuant to paragraph (1) shall be issued no later than October 1, 2022.

SEC. 2.

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.