Davila, Cunningham, Maher, Glick, Hyndman, Simon, Chang, Solages, Kim
MLTSPNSR
Walsh
Amd §21-a, Soc Serv L
Requires electronic benefit transfer systems to allow for benefit recipients to cancel or lock a credit or debit card when fraud has been suspected or reported; directs that any interactive voice response system associated with an electronic benefit transfer system which benefit recipients may call for support or assistance shall include an option for benefit recipients to report fraud and cancel, lock or unlock their electronic benefit transfer credit or debit card.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9269B
SPONSOR: Berger TITLE OF BILL:
An act to amend the social services law, in relation to requiring elec-
tronic benefit transfer systems to provide for benefit recipients to be
able to cancel, lock or unlock a credit or debit card associated with
electronic benefit transfer services
PURPOSE OR GENERAL IDEA OF BILL:
To implement a system to prevent EBT benefit theft.
SUMMARY OF PROVISIONS:
Section 1 (i)Requires interactive voice response systems for EBT to
include an option for beneficiaries to to lock or unlock their card or
lock their card specifically for out of state purchases.
(ii)the department must make sure the option to lock or unlock a card is
given immediately and thus easily accessible
Section 2 effective date
JUSTIFICATION:
Increasingly sophisticated fraud and theft schemes targeting Electronic
Benefit Transfer (EBT)recipients have grown to alarming levels affecting
large populations of beneficiaries and costing taxpayers millions of
dollars. Despite the recognition of these schemes by the allocation of
reimbursement reserves, little has been accomplished in proactive
approaches in preventing these thefts.
While major bank and credit card companies have implemented various
protections to combat the increasingly elaborate scams, EBT has lagged
behind. Fraud prevention systems are crucial for protecting the individ-
uals who depend on Supplemental Nutrition Assistance Program
(SNAP)benefits, protecting the taxpayers who fund these programs and
alleviating pressure on agency personnel. Instituting a system allowing
recipients, even with the most basic technological abilities, to lock
and unlock their card in an accessible manner would represent signif-
icant progress in ensuring the most vulnerable among us are not falling
victim to these schemes and acting as a safeguard the finite amount of
funds recipients have to feed their families.
AMENDED VERSION:
Changes the bill from requiring authorization for out of state purchases
to creating an option for beneficiaries to lock or unlock their card via
IVR and to specifically lock their card for out of state purchases.
PRIOR LKOISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This act shall take effect six months after it shall become law.
STATE OF NEW YORK
________________________________________________________________________
9269--B
IN ASSEMBLY
February 23, 2024
___________
Introduced by M. of A. BERGER, DAVILA, CUNNINGHAM, MAHER, GLICK, HYND-
MAN, SIMON -- read once and referred to the Committee on Social
Services -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the social services law, in relation to requiring elec-
tronic benefit transfer systems to provide for benefit recipients to
be able to cancel, lock or unlock a credit or debit card associated
with electronic benefit transfer services
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 21-a of the social services law is
2 amended by adding a new paragraph (c) to read as follows:
3 (c) Any interactive voice response system associated with an electron-
4 ic benefit transfer system which benefit recipients may call for support
5 or assistance shall include an option for benefit recipients to report
6 fraud and cancel such benefit recipient's electronic benefit transfer
7 credit or debit card permanently or lock such benefit recipient's elec-
8 tronic benefit transfer credit or debit card indefinitely. Provided,
9 further, any interactive voice response system associated with an elec-
10 tronic benefit transfer system which benefit recipients may call for
11 support or assistance shall also allow for benefit recipients to lock
12 such benefit recipient's credit or debit card for out of state purchases
13 only or for online purchases only.
14 § 2. This act shall take effect six months after it shall have become
15 a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14361-13-4
