Sponsored by:
Assemblyman ROY FREIMAN
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Assemblywoman SHANIQUE SPEIGHT
District 29 (Essex)
Assemblywoman VERLINA REYNOLDS-JACKSON
District 15 (Hunterdon and Mercer)
Co-Sponsored by:
Assemblyman Conaway, Assemblywomen Jasey, McKnight, Assemblymen Moriarty, Wimberly and Assemblywoman Lopez
SYNOPSIS
Requires DHS to provide information to SNAP and WFNJ recipients regarding card skimming, cloning, and similar fraudulent activities and to submit report to Governor and Legislature on these fraud activities.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning SNAP and WFNJ benefits fraud and supplementing P.L.1997, c.37 (C.44:10-71 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The Commissioner of Human Services shall provide information to recipients of benefits under the Supplemental Nutrition Assistance Program (SNAP) and the Work First New Jersey Program (WFNJ) regarding the following:
(1) the risks of card skimming, card cloning, and similar fraudulent methods, as used by criminals to steal SNAP or cash assistance benefits from a recipient’s electronic benefits transfer card;
(2) precautions a recipient can take to avoid falling victim to card skimming, card cloning, or similar fraudulent methods;
(3) the claims process, as established by the Department of Human Services, through which a recipient can have SNAP benefits, stolen between October 1, 2022 and September 30, 2024 due to card skimming, card cloning, or similar fraudulent methods, replaced with federal funds, pursuant to the federal “Consolidated Appropriations Act, 2023,” P.L. 117-328; and the claims process for other replacement methods of stolen SNAP or WFNJ benefits implemented subsequent to the effective date of this act; and
(4) the process by which a recipient can report stolen SNAP and WFNJ benefits due to card skimming, card cloning, or similar fraudulent methods to the Department of Human Services or to local law enforcement agencies.
b. Information provided to SNAP and WFNJ recipients pursuant to subsection a. of this section shall be distributed, at a minimum, in writing, at the point of enrollment and recertification in SNAP or WFNJ and with the issuance of the recipient’s electronic benefits transfer card.
c. The Commissioner of Human Services shall post the information itemized in subsection a. of this section via a digital format on the Department of Human Services’ website and via a paper format at all SNAP and WFNJ eligibility determination agencies.
d. The Commissioner of Human Services, in collaboration with local law enforcement agencies, shall report to the Governor and the Legislature, pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1), 18 months following the effective date of the act, and annually thereafter, the number of reports submitted pursuant to paragraph (4) of subsection a. of this section, including the aggregate amount of stolen benefits indicated under those reports; the amount of stolen benefits replaced due to claims submitted pursuant to paragraph (3) of subsection a. of this section; and any other information that demonstrates the Department of Human Services’ efforts to protect SNAP and WFNJ recipients from fraud due to card skimming, card cloning, or similar fraudulent methods.
e. As used in this section,
“Card Cloning” means making an unauthorized copy of an electronic benefits transfer card.
“Electronic Benefits Transfer Card” means the payment card issued to SNAP and WFNJ recipients by the Department of Human Services in connection with the electronic benefit distribution system implemented pursuant to section 5 of P.L.1997, c.37 (C.44:10-75), on which benefits for those programs are deposited and through which recipients can purchase food and access cash assistance benefits.
“Skimming” means the illegal installation of devices on point-of-sale or automatic teller machine terminals to capture a cardholder’s personal identification number and other data stored on the magnetic strip of the electronic benefits transfer card.
“Supplemental Nutrition Assistance Program” or “SNAP” means the program established pursuant to the federal "Food and Nutrition Act of 2008," Pub.L.110-246 (7 U.S.C. s.2011 et seq.).
“Work First New Jersey Program” or “WFNJ” means the program established pursuant to P.L.1997, c.38 (C.44:10-55 et seq.) in accordance with authorization received under Title IV of the federal "Personal Responsibility and Work Opportunity Reconciliation Act of 1996," Pub.L.104-193 (8 U.S.C. s.1601 et seq.).
2. This act shall take effect immediately.
STATEMENT
This bill directs the Commissioner of Human Services (commissioner) to provide the following information to recipients of benefits under the Supplemental Nutrition Assistance Program and the Work First New Jersey Program:
1) The risks of card skimming, card cloning, and similar fraudulent methods, as used by criminals to steal SNAP or cash assistance benefits from the recipient’s electronic benefits transfer card;
2) Precautions a recipient can take to avoid falling victim to card skimming, card cloning, or similar fraudulent methods;
3) The claims process, as established by the Department of Human Services (department), through which a recipient can have SNAP benefits, stolen between October 1, 2022 and September 30, 2024 due to card skimming, card cloning, or similar fraudulent methods, replaced with federal funds, pursuant to the federal “Consolidated Appropriations Act, 2023,” and the claims process for other replacement methods of stolen SNAP or WFNJ benefits implemented subsequent to the effective date of the bill; and
4) The process by which a recipient can report stolen SNAP and WFNJ benefits due to card skimming, card cloning, or similar fraudulent methods to the department or to local law enforcement agencies.
Information provided to recipients under the bill is to be distributed in writing, at the point of enrollment and recertification in SNAP or WFNJ and with the issuance of the recipient’s electronic benefits transfer card. The bill also requires the department to post this information on its website and at SNAP and WFNJ eligibility determination agencies.
Finally, the commissioner, in collaboration with local law enforcement agencies, is required to report to the Governor and the Legislature, 18 months following the effective date of the act, and annually thereafter, data regarding stolen and replaced SNAP and WFNJ benefits, as collected under the bill, as well as any other information that demonstrates the department’s efforts to protect SNAP and WFNJ recipients from fraud due to card skimming, card cloning, or similar fraudulent methods.
As used under the bill, “skimming” means the illegal installation of devices on point-of-sale or automatic teller machine terminals to capture a cardholder’s personal identification number and other data stored on the magnetic strip of the electronic benefits transfer card; and “card cloning” means making an unauthorized copy of an electronic benefits transfer card.