Sponsored by:
Senator M. TERESA RUIZ
District 29 (Essex and Hudson)
Senator ANGELA V. MCKNIGHT
District 31 (Hudson)
Co-Sponsored by:
Senator Mukherji
SYNOPSIS
Requires SNAP retailers to take measures to help prevent card skimming.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning card skimming and Supplemental Nutrition Assistance Program retailers, and supplementing Title 44 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
“Card skimming” means the illegal installation of scanning devices on point of sale terminals to access, read, scan, obtain, memorize, or store, temporarily or permanently, information encoded on the magnetic strip or stripe of a payment card without the permission of the authorized user of the payment card.
"Payment card" means a credit card, charge card, debit card, SNAP electronic benefits transfer card, or any other card that is issued to an authorized card user and that allows the user to obtain, purchase, or receive goods, services, money, or anything of value from a merchant.
"Scanning device" means a scanner, skimmer, reader, or any other electronic device that is used to access, read, scan, obtain, memorize, or store, temporarily or permanently, information encoded on the magnetic strip or stripe of a payment card.
“SNAP” means the 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.).
b. Beginning on January 31, 2027, an authorized New Jersey SNAP retailer that accepts payments via SNAP electronic benefits transfer cards within its establishment shall equip each point of sale terminal within the establishment with features or technology to help prevent card skimming, as determined by the Department of Human Services.
c. The Department of Human Services shall be authorized to inspect authorized New Jersey SNAP retailers to ensure compliance with the provisions of this section.
d. The Commissioner of Human Services shall be authorized to assess an administrative penalty of not more than $1,000 for the first violation of a provision of this section, $3,000 for the second violation, and $5,000 for each subsequent violation.
e. The Commissioner of Human Services shall be authorized to exclude a retailer from participation in the SNAP program for four or more violations of a provision of this section.
2. The Commissioner of Human Services may adopt rules and regulations pursuant to the "Administrative Procedure Act" P.L.1968, c.410 (C.52:14B-1 et seq.) to effectuate the purposes of this act.
3. This act shall take effect immediately.
STATEMENT
This bill requires New Jersey Supplemental Nutrition Assistance Program (SNAP) retailers to take measures to help prevent card skimming.
Under the bill, beginning on January 31, 2027, an authorized New Jersey SNAP retailer that accepts payments via SNAP electronic benefits transfer cards within its establishment is to equip each point of sale terminal within the establishment with features or technology to help prevent card skimming. The bill defines “card skimming” to mean the illegal installation of scanning devices on point of sale terminals to access, read, scan, obtain, memorize, or store, temporarily or permanently, information encoded on the magnetic strip or stripe of a payment card without the permission of the authorized user of the payment card.
Under the bill, the Department of Human Services is authorized to inspect authorized New Jersey SNAP retailers to ensure compliance with the provisions of this bill. The Commissioner of Human Services (commissioner) is authorized to assess an administrative penalty of not more than $1,000 for the first violation of a provision of this bill, $3,000 for the second violation, and $5,000 for each subsequent violation. The commissioner is authorized to exclude a retailer from participation in the SNAP program for four or more violations of a provision of this bill.