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MD SB2

Department of Human Services - Electronic Benefits Transfer Cards - Theft of Benefits (Prevent Electronic Benefits Theft Act of 2023)

summary

Introduced
01/11/2023
In Committee
04/04/2023
Crossed Over
03/20/2023
Passed
04/10/2023
Dead
Signed/Enacted/Adopted
04/24/2023

Introduced Session

2023 Regular Session

Bill Summary

AN ACT concerning Department of Human Services - Electronic Benefits Transfer Cards - Fraud Theft of Benefits (Prevent Electronic Benefits Theft Act of 2023) FOR the purpose of requiring the Department of Human Services to reimburse a beneficiary for any benefits lost due to the fraudulent use of the beneficiary’s Electronic Benefits Transfer card; theft; authorizing certain households to request a certain hearing under certain circumstances; requiring the State to give preference to certain vendors in the procurement process for electronic benefits distribution or administration; requiring the Department to establish a certain point of contact for investigating and identifying electronic benefits fraud; requiring the Department to notify certain beneficiaries about electronic benefits fraud in a certain manner and provide certain assistance to certain beneficiaries; applying certain provisions of this Act retroactively; establishing the Benefit Theft Restitution Fund; authorizing the Department to restore benefits to certain households; requiring the Department to issue benefits to eligible households on or before a certain date; requiring the Department to take certain actions to reduce the vulnerability of Electronic Benefits Transfer cards to theft; and generally relating to electronic benefits. BY adding to Article - Human Services Section 5-609 and 5-610 Annotated Code of Maryland (2019 Replacement Volume and 2022 Supplement)

AI Summary

This bill: - Requires the Department of Human Services (the Department) to reimburse a beneficiary for any benefits lost due to the fraudulent use or theft of the beneficiary's Electronic Benefits Transfer (EBT) card, including through identity fraud, physical theft, or skimming practices. - Establishes a process for households to request a hearing if they dispute the Department's determination on the restoration of lost benefits, and requires the Department to restore benefits while the hearing is pending. - Gives preference in the procurement process for EBT distribution or administration to vendors that provide insurance coverage and identity protection for beneficiaries against fraud and theft. - Requires the Department to coordinate with vendors to implement various security measures to reduce the vulnerability of EBT cards to theft, such as embedding microchips, using two-way fraud alerts, and monitoring transactions for suspicious activity. - Allows the Department to restore benefits lost due to theft that occurred between January 2021 and October 2022, even if the household is ineligible to receive benefits at the time of restoration. - Establishes the Benefit Theft Restitution Fund to support the restoration of benefits and innovative practices to assist beneficiaries during the time between reporting a loss and the restoration of benefits.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Approved by the Governor - Chapter 171 (on 04/24/2023)
(1 Companion Bills)

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