Bill Text: CA AB2252 | 2013-2014 | Regular Session | Chaptered

California Assembly Bill 2252 (Prior Session Legislation)

Bill Title: Child support payments: electronic fund transfer: qualifying accounts.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Passed) 2014-07-23 - Chaptered by Secretary of State - Chapter 180, Statutes of 2014. [AB2252 Detail]

Download: California-2013-AB2252-Chaptered.html

BILL NUMBER: AB 2252	CHAPTERED
	BILL TEXT

	CHAPTER  180
	FILED WITH SECRETARY OF STATE  JULY 23, 2014
	APPROVED BY GOVERNOR  JULY 23, 2014
	PASSED THE SENATE  JUNE 30, 2014
	PASSED THE ASSEMBLY  JULY 3, 2014
	AMENDED IN SENATE  JUNE 16, 2014

INTRODUCED BY   Assembly Member John A. P�rez

                        FEBRUARY 21, 2014

   An act to add Section 17325 to the Family Code, relating to child
support.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2252, John A. P�rez. Child support payments: electronic fund
transfer: qualifying accounts.
   Existing law obligates a parent to support his or her child.
Existing law establishes the Department of Child Support Services
within the California Health and Human Services Agency, which
administers all services and performs all functions necessary to
establish, collect, and distribute child support. Existing federal
law, in connection with child support enforcement agencies, requires
the state to implement a state disbursement unit for the collection
and disbursement of payments under support orders, including
electronic processes for receipt of payments from parents, employers,
and other states, and for electronic disbursements to custodial
parents and other obligees. Existing state law establishes within the
Department of Child Support Services the State Disbursement Unit and
the California Child Support Automation System. Existing law
requires the California Child Support Automation System, which
includes the State Disbursement Unit, to provide timely and accurate
payment processing and centralized payment disbursement from a single
location in the state.
   This bill would, if child support payments are directly deposited
to an account of the recipient's choice, require that the payments
only be deposited to a qualifying account, as defined. The bill would
prohibit a person or entity that issues a prepaid card or maintains
or manages a prepaid card account from accepting or facilitating the
direct deposit of child support payments to a prepaid card account
that does not meet the requirements of a qualifying account.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 17325 is added to the Family Code, to read:
   17325.  (a) (1) Notwithstanding any other law, if child support
payments are directly deposited to an account of the recipient's
choice, as authorized under the federal Electronic Fund Transfer Act
(EFTA) (15 U.S.C. Sec. 1693 et seq.), the payments may only be
deposited to an account that meets the requirements of a qualifying
account, as defined in paragraph (2), for deposit of child support
payments.
   (2) For purposes of this section, a "qualifying account" is one of
the following:
   (A) A demand deposit or savings account at an insured financial
institution in the name of the person entitled to the receipt of
child support payments.
   (B) A prepaid card account that meets all of the following:
   (i) The account is held at an insured financial institution.
   (ii) The account is set up to meet the requirements for
passthrough deposit or share insurance so that the funds accessible
through the account are eligible for insurance for the benefit of the
person entitled to the receipt of child support 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 any credit or overdraft
feature that is automatically repaid from the account after delivery
of the payment.
   (iv) The issuer of the card complies with all of the requirements,
and provides the holder of the card with all of the consumer
protections, that apply to a payroll card account under the rules
implementing the EFTA or other rules subsequently adopted under the
EFTA that apply to prepaid card accounts.
   (3) A person or entity that issues a prepaid card or maintains or
manages a prepaid card account that does not comply with paragraph
(2) shall not accept or facilitate the direct deposit of child
support payments to the prepaid card account.
   (b) For the purposes of this section, the following definitions
shall apply:
   (1) "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.
   (2) "Issuer" means a person or entity that issues a prepaid card.
   (3) "Payroll card account" shall have the same meaning as that
term is defined in the regulations implementing the EFTA.
   (4) "Prepaid card" or "prepaid card account" means either of the
following:
   (A) A card, code, or other means of access to funds of a recipient
that is usable at multiple, unaffiliated merchants for goods or
services, or usable at automated teller machines.
   (B) The same as those terms or related terms are defined in the
regulations adopted under the EFTA regarding general use reloadable
cards.