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 requires the department to establish a protocol for recipients to report electronic theft of cash benefits that, among other things, ensures the prompt replacement of 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 third party, as specified, and requires the prompt replacement of those cash benefits. Existing regulations also require food benefits that are stolen in this manner to be replaced. This bill would instead prohibit a recipient from incurring any loss of electronic benefits stolen in that manner, thereby codifying the existing regulation described above. The bill would require the protocol described above to be integrated and unified to ensure uniform consistent procedures and outcomes across the state and benefit programs to reduce program complexity and administrative delay for counties and recipients. The bill would prohibit a referral for a suspected fraud investigation from delaying the prompt replacement of benefits. By imposing new duties on counties relating to the administration of benefits, 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.