Electronic benefits transfer system.

Existing law provides for the establishment of a statewide electronic benefits transfer (EBT) system, administered by the State Department of Social Services, for the purpose of providing financial and food assistance benefits. Existing law provides that 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 card issued to the recipient or authorized 3rd party, as specified, and requires the prompt replacement of the taken benefits. This bill would additionally provide that a recipient shall not incur any loss of cash benefits that are taken by an unauthorized contact. The bill would also require the prompt replacement of the taken benefits if a recipient knowingly provides his or her EBT card number and personal identification number to an unauthorized 3rd party that the recipient mistakenly believes to be the contracted EBT vendor, an approved retailer, or a governmental entity, but not more than one time in a 36-month period. The bill would authorize the department to issue mass reimbursements to recipients for the loss of cash benefits if the department finds that the benefits of multiple recipients were taken by an unauthorized withdrawal, removal, or use of benefits in which the recipients' EBT card numbers or personal identification numbers were obtained by means of a data breach. The bill would require a mass reimbursement to be approved by the Department of Finance. This bill would authorize the State Department of Social Services to implement and administer the above-described provisions through all-county letters or similar instructions until regulations are adopted, and would require the department to adopt emergency regulations and final regulations, as specified.