S4049

An Act concerning electronic benefits transfer cards and supplementing Title 44 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in this act:

“Contactless electronic benefits transfer card” means an electronic benefits transfer card embedded with a small integrated microchip or equipped with a small radio frequency antenna that enables a user to wave or tap the card to complete a transaction at a point-of-sale terminal, automated teller machine, or other electronic or similar device.

“SNAP” means the New Jersey Supplemental Nutrition Assistance Program, established pursuant to the federal "Food and Nutrition Act of 2008," Pub.L.110-246 (7 U.S.C. s.2011 et seq.) and P.L.1998, c.32 (C.44:10-79 et seq.).

2. a. Notwithstanding any provision of law, rule, or regulation to the contrary, the Department of Human Services shall distribute contactless electronic benefits transfer cards to all eligible SNAP recipients by January 31, 2027.

b. The department shall:

(1) enter into or modify an agreement with a third party vendor to produce and issue contactless electronic benefits transfer cards for SNAP recipients; and

(2) terminate any agreement with the third party vendor if the vendor cannot produce and issue the electronic benefits transfer cards prior to January 31, 2027.

c. The contactless electronic benefits transfer card shall be distributed and made available, free of charge, to all eligible SNAP recipients.

d. Within six months following the enactment of this act, the department shall publish a county by county progress report on the distribution of contactless electronic benefits transfer cards to eligible SNAP recipients.

3. The Commissioner of Human Services shall apply for any:

a. waivers from the federal government, which are necessary for the approval and implementation of this act; and

b. federal grants through the SNAP Process and Technology Improvement Grants program within the United States Department of Agriculture, to implement the provisions of this act.

4. The Commissioner of Human Services, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall promulgate rules and regulations as may be necessary to effectuate the provisions of this act.

5. This act shall take effect immediately.

STATEMENT

This bill requires the Department of Human Services (the department) to distribute and make available, free of charge, contactless electronic benefits transfer cards to all eligible SNAP recipients by January 31, 2027.

As used in the bill, “contactless electronic benefits transfer card” means an electronic benefits transfer card embedded with a small integrated microchip or equipped with a small radio frequency antenna that enables a user to wave or tap the card to complete a transaction at a point-of-sale terminal, automated teller machine, or other electronic or similar device.

The bill also requires the department to: (1) enter into or modify an agreement with a third party vendor to produce and issue contactless electronic benefits transfer cards for SNAP recipients; (2) terminate any agreement with the third party vendor if the vendor cannot produce and issue the electronic benefits transfer cards prior to January 31, 2027; and (3) within six months following the enactment of the bill, publish a county by county progress report on the distribution of contactless electronic benefits transfer cards to eligible SNAP recipients.

The bill requires the Commissioner of Human Services to apply for any waivers from the federal government and any federal grants through the SNAP Process and Technology Improvement Grants program which may be necessary to, or available for, the implementation of the provisions of the bill.

The FY 2025 Appropriations Act included $1.7 million to replace all existing Supplemental Nutrition Assistance Program (SNAP) and Work First New Jersey (WFNJ) electronic benefits transfer (EBT) cards with embedded microchip technology, as well as to make the necessary upgrades to the EBT system for the use of these cards. This initiative has yet to be implemented and the FY 2026 Appropriations Act includes new language to carry forward to the subsequent fiscal year any unexpended balance remaining in the account that holds these funds. This bill establishes a statutory timeframe for the Department of Human Services to implement the initiative.