Bill > S4641

Introduced Session

This bill requires the Commissioner of Human Services (the commissioner) to implement fraud prevention and electronic benefits transfer (EBT) card security options to protect Supplemental Nutrition Assistance Program (SNAP) participants from benefits fraud and theft, including the practices of card cloning and card skimming. As used in the bill, "card cloning" means making an unauthorized copy of an EBT card, while "card skimming" means the illegal installation of devices on a point-of-sale terminal to capture a cardholder's personal identification number and data stored on the EBT card's magnetic strip. The security options to be implemented include: utilizing additional magnetic strip safeguards to strengthen transaction processing security; requiring SNAP participants to utilize two-factor authentication for balance inquiries; and educating SNAP participants on the option to limit certain EBT card transactions. This information will be distributed during SNAP enrollment and recertification, and upon issuance of a participant's EBT card. Information for consumers concerning the risks of SNAP benefits theft, precautions to avoid benefits theft, the process for reporting benefits theft to the Department of Human Services (department) and local law enforcement, and the process for securing replacement SNAP benefits under the bill, will be provided on the department's website and at SNAP eligibility determination agencies. Until the department implements microchip technology in EBT cards issued Statewide, the commissioner will replace stolen SNAP benefits upon submission of a police report or other required evidence. The commissioner will establish a process for claims submissions and SNAP benefits replacement, which process will be subject to the conditions for replacing stolen SNAP benefits with federal funds under the federal "Consolidated Appropriations Act, 2023," or any subsequent federal law. Whenever federal funds are not available for this purpose, the commissioner will replace stolen SNAP benefits using State funds, subject to availability. The bill amends P.L.1993, c.13 to upgrade the crime of SNAP benefits theft of $150.00 or greater from a crime of the fourth degree to a crime of the third degree, and to upgrade the crime of SNAP benefits theft of less than $150.00 from a disorderly persons offense to a crime of the fourth degree. A crime of the third degree is punishable by imprisonment for three to five years, a fine of up to $15,000, or both, and a crime of the fourth degree is punishable by imprisonment for up to 18 months, a fine of up to $10,000, or both. The bill appropriates such sums as necessary from the General Fund to the department to implement the bill's requirements. The bill's provisions become effective six months following the date of enactment; however, the commissioner may take administrative action in advance to establish the benefits claims process required under the bill. The federal Food and Nutrition Service (FNS) in the United States Department of Agriculture urges states to adopt SNAP EBT cards with embedded microchip technology in order to deter benefits theft. Chip EBT cards are a more secure payment option than cards with a magnetic strip, and are already utilized by the credit and banking industries. As of May 2025, California is the only state that has issued EBT chip cards to all SNAP participants. According to the FNS, New Jersey, Alabama, Maryland, and Oklahoma will soon issue EBT chip cards to SNAP participants.

AI Summary

Committee Categories

Angela Mcknight (D)*,  Raj Mukherji (D)*, 

Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee (on 06/23/2025)

Official Document