Bill Text: CA AB473 | 2015-2016 | Regular Session | Introduced
Bill Title: Electronic benefits transfer system.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2016-02-01 - Died at Desk. [AB473 Detail]
Download: California-2015-AB473-Introduced.html
BILL NUMBER: AB 473 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Harper
FEBRUARY 23, 2015
An act to amend Section 10072 of the Welfare and Institutions
Code, relating to public social services.
LEGISLATIVE COUNSEL'S DIGEST
AB 473, as introduced, Harper. Electronic benefits transfer
system.
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. Existing law authorizes a county to
deliver CalFresh benefits and, upon election by the county, CalWORKs
benefits through the use of an EBT system. Existing law requires,
among other things, that a recipient not incur any loss of cash
benefits that are taken by an unauthorized withdrawal, removal, or
use of benefits that does not occur by the use of a physical EBT card
issued to the recipient or authorized 3rd party to directly access
the benefits.
This bill would make technical, nonsubstantive changes to those
provisions.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. 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 (p).
(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" 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 that will provide
recipients, at no additional cost to the recipient, with information
on how to have the card and personal identification number replaced,
and that will allow an authorized representative or head of household
to access, over the telephone, the transaction history detail for at
least the last 10 transactions and to request that the transaction
history detail for at least the past two months be sent by mail.
(g) The system shall have an Internet Web site that will provide
recipients, at no additional cost to the recipient, with information
on how to have the card and personal identification number replaced,
and that will allow an authorized representative or head of household
to view the transaction history detail for at least the last 10
transactions and to request that the transaction history detail for
at least the past two months be sent by mail.
(h) In addition to the ability to receive transaction history
detail pursuant to subdivisions (f) and (g), a county human services
agency shall make available to an authorized representative or head
of household, at no additional cost to the authorized representative
or head of household, all electronic benefit transaction history
details that are available to the county human services agency within
10 business days after a request has been received by the agency.
(i) (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 cash benefits that are
taken by an unauthorized withdrawal, removal, or use of benefits
that does not occur by the use of a physical EBT
electronic benefits transfer card issued to the recipient
or authorized third party to directly access the benefits. Benefits
taken as described in this paragraph shall be promptly replaced in
accordance with the protocol established by the department pursuant
to paragraph (3).
(3) The State Department of Social Services shall establish a
protocol for recipients to report electronic theft of cash benefits
that minimizes the burden on recipients, ensures prompt replacement
of benefits in order to minimize the harm to recipients, and ensures
program integrity. This protocol may include the automatic
replacement of benefits without the need for recipient reporting and
verification.
(j) Electronic benefits transfer system consumers shall be
informed on as to how to use electronic
benefits transfer cards, how to protect their cards from misuse, and
where consumers can use their cards to withdraw benefits without
incurring a fee, charge, or surcharge.
(k) The electronic benefits transfer system shall be designed to
inform recipients when the electronic benefits transfer system does
not function or is expected not to function for more than a one-hour
period between 6 a.m. and midnight during any 24-hour period. This
information shall be made available in the recipient's preferred
language if the electronic benefits transfer system vendor contract
provides for services in that language.
(l) Procedures shall be developed for error resolution.
(m) 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.
(n) 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.
(o) The electronic benefits transfer system shall be designed to
ensure that recipients of benefits under Chapter 2 (commencing with
Section 11200) of Part 3 have access to using or withdrawing benefits
with minimal fees or charges, including an opportunity to access
benefits with no fee or charges.
(p) 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.
(q) A county shall use information provided by the department to
inform recipients of benefits under Chapter 2 (commencing with
Section 11200) of Part 3 of all of the following:
(1) The methods of electronic delivery of benefits available,
including distribution of benefits through the electronic benefits
transfer system or direct deposit pursuant to Section 11006.2.
(2) Applicable fees and charges, including surcharges, consumer
and privacy protections, and liability for theft associated with the
electronic benefits transfer system.
(3) How to avoid fees and charges, including opting for delivery
of benefits by direct deposit and using the electronic benefits
transfer card solely at surcharge free locations.
(4) Where to withdraw benefits without a surcharge when using the
electronic benefits transfer system.
(5) That a recipient may authorize any available method of
electronic delivery of benefits and instructions regarding how the
recipient may select or change his or her preferred method of
electronic delivery of benefits and that the recipient shall be given
the opportunity to select the method prior to the first payment.
(6) That a recipient may be entitled to an alternative method of
delivery if the recipient demonstrates 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
pursuant to subdivision (d) and instructions regarding how to
determine whether the recipient qualifies for an alternative method
of delivery.
(7) That a recipient may be entitled to an exemption from the
three-day staggering requirement under subdivision (c) on a
case-by-case basis for hardship pursuant to subdivision (o) and
instructions regarding how to determine whether the recipient
qualifies for the exemption.
(r) A county is in compliance with subdivision (q) if it provides
the recipient a copy of the information developed by the department.
A county may provide a recipient information, in addition to the copy
of the information developed by the department, pursuant to
subdivision (q), either verbally or in writing, if the county
determines the additional information will benefit the recipient's
understanding of the information provided.
