Some California lawmakers have confirmed what KCRA 3 Investigates first reported last week: several people have complaints and concerns of fraud with the state’s Middle Class Tax Refund debit cards. | Related | California taxpayers still see issues with tax refund debit cards”This is becoming an embarrassing routine for the state of California,” said Republican Assemblymember Jim Patterson, who said he’s heard similar complaints from several community members in his district in the Fresno area. Patterson said the situation is reminiscent of issues with the state’s embattled unemployment agency, the Employment Development Department, when the state sent billions of dollars to fraudsters during the pandemic. KCRA 3 Investigates detailed the scale of the fraud in the documentary “Easy Money.” Patterson said he and other lawmakers have heard from constituents who told them they received the debit card but when attempting to use it at an ATM machine, they have a $0 balance. Patterson said the state’s Franchise Tax Board — the agency overseeing the refund distribution — and the debit card vendor, New York-based Money Network, are not providing answers. “We’ve got a one-off program mailing debit cards to millions of people, actually originating out of the state of California. What could possibly go wrong?” State Sen. Roger Niello said sarcastically. Niello, a Republican representing parts of the Sacramento and Roseville regions who was sworn into office two weeks ago, said he too is fielding complaints from constituents. “What is Murphy’s law? Anything that can go wrong, will? It appears that is exactly what has happened,” Niello said. | Related | California relief: More Middle Class Tax Refund debit cards hit mailboxes The Middle Class Tax Refund is a multi-billion-dollar program approved by state lawmakers and the governor, which was meant to provide payments to taxpayers based on family size and income in response to rising gas prices and inflation. | Related | California’s inflation relief debit cards are supposed to have chip tech. So why don’t they? About 6.9 million eligible recipients received their payment through direct deposit, while 6.8 million others have been sent debit cards, according to the latest state data. gov. Gavin Newsom first promised the payments in his state of the art speech in March. Democratic legislative leaders agreed taxpayers should be provided relief with the state’s historic, nearly $100 billion budget surplus, but lawmakers and the governor spent months at odds over how exactly to send the payments. | Related | Here’s why some seniors and others won’t get payments from California’s ‘inflation relief’ programs Legislative leaders originally wanted to send payments the traditional way with deposits and checks through California’s Franchise Tax Board (FTB), which is the agency responsible for collecting and administering state income tax. The governor proposed sending debit cards to registered vehicle owners through the state’s department of motor vehicles. Newsom’s administration said issuing debit cards would be faster than cutting checks. “I’m skeptical that you could even choose a reliable vendor for debit cards in two months,” Assemblymember Phil Ting, D-San Francisco, told Newsom’s administration in a budget hearing in June. We agree: We want to get money out as fast as possible, but we want to get it out in a way that’s safe and reliable. RELATED | Read the redacted contract for the debit cards here Ting’s office did not reply to a request for comment on this story as of Tuesday evening. In that same hearing, Assemblymember Wendy Carillo, a Democrat from Los Angeles, flagged concerns about potential fraud. “Whoever the vendor ends up being, I want to make sure there’s transparency in how that vendor is selected,” Carillo told Newsom’s administration in June. ” we don’t find ourselves in this situation a year from now when we’re reviewing what happened and how did that happen; it’s happened far too often.” In a statement Tuesday night, Carillo told KCRA 3, “During the committee process there were concerns expressed related to fraud. We learned a lot during the COVID-19 pandemic on the need to stabilize the safety net and ensure departments like EDD, functioned to meets the needs of struggling Californians.Through the Budget process, and my role as Chair of Budget Sub 4 on State Administration, I anticipate we will have oversight hearings to address the roll out and impact.The ultimate goal is to make sure the money allocated reaches the right people.” Democratic legislative leaders, Assembly Speaker Anthony Rendon and Senate Pro Tempore Toni Atkins were not available for comment Tuesday. The FTB said in an update from Money Network Tuesday, there has been no indication that fraud is a widespread issue with the program.” to keep a close eye on the situation – investigating any instances of malfunction or wrongdoing, and ensuring that recipients get the benefits that they’re eligible for,” a spokesperson for the FTB said. The FTB has said it foresaw the possibility of malfunction and Fraud or other wrongdoing. FTB’s contract with Money Network requires the vendor to maintain a fraud prevention success rate of 99% or higher. The current fraud level is well within the limits of the contract, a spokesperson for the agency said. What to do if your Middle Class Tax Refund debit card has been drained Lawmakers encouraged anyone with issues with the refund debit card to contact their State Senator or Assemblymember. ise Tax Board says chat support services are available at mctrpayment.com Weekdays, 8AM to 5PM. The customer support phone number is 800-542-9332 and operates on weekdays, 8AM to 5PM. | More inflation relief tips | Did you get a California Middle Class Tax Refund debit card? Here’s how to use it, avoid fees SACRAMENTO, Calif. — Some California lawmakers have confirmed what KCRA 3 Investigates first reported last week: several people have complaints and concerns of fraud with the state’s Middle Class Tax Refund debit cards. | Related | California taxpayers still see issues with tax refund debit cards “This is becoming an embarrassing routine for the state of California,” said Republican Assemblymember Jim Patterson, who said he’s heard similar complaints from several community members in his district in the Fresno area. Patterson said the situation is reminiscent of issues with the state’s embattled unemployment agency, the Employment Development Department, when the state sent billions of dollars to fraudsters during the pandemic. KCRA 3 Investigates detailed the scale of the fraud in the documentary “Easy Money.” Patterson said he and other lawmakers have heard from constituents who told them they received the debit card but when attempting to use it at an ATM machine, they have a $0 balance. Patterson said the state’s Franchise Tax Board — the agency overseeing the refund distribution — and the debit card vendor, New York-based Money Network, are not providing answers. “We’ve got a one-off program mailing debit cards to millions of people, actually originating out of the state of California. What could possibly go wrong?” State Sen. Roger Niello said sarcastically. Niello, a Republican representing parts of the Sacramento and Roseville regions who was sworn into office two weeks ago, said he too is fielding complaints from constituents. “What is Murphy’s law? Anything that can go wrong, will? It appears that is exactly what has happened,” Niello said. | Related | California relief: More Middle Class Tax Refund debit cards hit mailboxes The Middle Class Tax Refund is a multi-billion-dollar program approved by state lawmakers and the governor, which was meant to provide payments to taxpayers based on family size and income in response to rising gas prices and inflation. | Related | California’s inflation relief debit cards are supposed to have chip tech. So why don’t they? About 6.9 million eligible recipients received their payment through direct deposit, while 6.8 million others have been sent debit cards, according to the latest state data. gov. Gavin Newsom first promised the payments in his state of the art speech in March. Democratic legislative leaders agreed taxpayers should be provided relief with the state’s historic, nearly $100 billion budget surplus, but lawmakers and the governor spent months at odds over how exactly to send the payments. | Related | Here’s why some seniors and others won’t get payments from California’s ‘inflation relief’ programs Legislative leaders originally wanted to send payments the traditional way with deposits and checks through California’s Franchise Tax Board (FTB), which is the agency responsible for collecting and administering state income tax. The governor proposed sending debit cards to registered vehicle owners through the state’s department of motor vehicles. Newsom’s administration said issuing debit cards would be faster than cutting checks. “I’m skeptical that you could even choose a reliable vendor for debit cards in two months,” Assemblymember Phil Ting, D-San Francisco, told Newsom’s administration in a budget hearing in June. We agree: We want to get money out as fast as possible, but we want to get it out in a way that’s safe and reliable. RELATED | Read the redacted contract for the debit cards here Ting’s office did not reply to a request for comment on this story as of Tuesday evening. In that same hearing, Assemblymember Wendy Carillo, a Democrat from Los Angeles, flagged concerns about potential fraud. “Whoever the vendor ends up being, I want to make sure there’s transparency in how that vendor is selected,” Carillo told Newsom’s administration in June. “[That way] we don’t find ourselves in this situation a year from now when we’re reviewing what happened and how did that happen; it’s happened far too often.” In a statement Tuesday night, Carillo told KCRA 3, “During the committee process there were concerns related to fraud. We learned a lot during the COVID-19 pandemic on the need to stabilize the safety net and ensure departments like EDD, functioned to meet the needs of struggling Californians. Through the Budget process, and my role as Chair of Budget Sub 4 on State Administration, I anticipate we will have oversight hearings to address the roll out and impact. The ultimate goal is to make sure the money allocated reaches the right people.” Democratic legislative leaders, Assembly Speaker Anthony Rendon and Senate Pro Tempore Toni Atkins were not available for comment Tuesday. The FTB said in an update from Money Network Tuesday, there has been no indication that fraud is a widespread issue with the program. “We continue to keep a close eye on the situation – investigating any instances of malfunction or wrongdoing, and ensuring that recipients get the benefits they’re eligible for,” a spokesperson for the FTB said. The FTB has said it anticipated the possibility of malfunctions and fraud or other wrongdoing. FTB’s contract with Money Network requires the vendor to maintain a fraud prevention success rate of 99% or higher. The current fraud level is well within the limits of the contract, a spokesperson for the agency said. What to do if your Middle Class Tax Refund debit card has been drained Lawmakers encouraged anyone with issues with the refund debit card to contact their State Senator or Assemblymember. The Franchise Tax Board says chat support services are available at mctrpayment.com Weekdays, 8AM to 5PM. The customer support phone number is 800-542-9332 and operates on weekdays, 8AM to 5PM. | More inflation relief tips | Did you get a California Middle Class Tax Refund debit card? Here’s how to use it, avoid fees