S4807

An Act concerning SNAP benefits theft and making an appropriation.

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

1. As used in this act:

“Card Cloning” means making an unauthorized copy of an electronic benefits transfer card.

“Card Skimming” means the illegal installation of devices on point-of-sale terminals to capture a cardholder’s personal identification number and other data stored on the magnetic strip of the electronic benefits transfer card.

“Electronic Benefits Transfer Card” means the payment card issued to SNAP participants 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 SNAP benefits are deposited and through which SNAP participants can purchase food.

“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.).

2. a. The Commissioner of Human Services shall establish a process by which SNAP benefits determined to have been stolen through card skimming, card cloning, or similar fraudulent methods, may be replaced using resources available in the Stolen SNAP Benefits Replacement Fund, established pursuant to section 4 of this act. SNAP participants may be eligible to have stolen SNAP benefits replaced if the SNAP benefits theft is determined to have occurred between the expiration of the federal program to replace stolen SNAP benefits using federal funds, pursuant to the federal “Consolidated Appropriations Act, 2023,” Pub.L. 117-328 and the “Continuing Appropriations and Extensions Act, 2025,” Pub.L118-83, and the date on which the SNAP participant receives a chip technology electronic benefits transfer card from the Department of Human Services.

b. The commissioner shall establish a process by which the department may determine that an individual’s SNAP benefits have been stolen, which process shall be subject to the same conditions that apply to the replacement of SNAP benefits stolen via card skimming, card cloning, and similar fraudulent methods, with federal funds, pursuant to the federal “Consolidated Appropriations Act, 2023,” Pub.L. 117-328; and the Continuing Appropriations and Extensions Act, 2025,” Pub.L118-83.” The department shall make this information publicly available on the department’s Internet website and also shall distribute this information, in writing, at the time of enrollment and recertification in the SNAP and with the issuance of a SNAP participant’s electronic benefits transfer card.

c. The commissioner shall provide for the replacement of SNAP benefits from the Stolen SNAP Benefits Replacement Fund, as provided pursuant to subsection b. of section 4 of this act, subject to the availability of fund balances.

3. a. The Attorney General, in consultation with the Commissioner of Human Services, shall assess a supplemental fee, in an amount equal to five percent of the total amount of penalties and restitution paid by a defendant in a civil or criminal settlement agreement entered into by the Attorney General pursuant to Title 2A or Title 2C of the New Jersey Statutes. The amount of the supplemental fee collected pursuant to this section shall be collected by a court of competent jurisdiction and forwarded to the Department of the Treasury for deposit into the Stolen SNAP Benefits Replacement Fund, established pursuant to subsection a. of section 4 of this act.

b. The supplemental fee established under subsection a. of this section shall be temporary in nature, and the Attorney General shall cease assessing the fee upon certification by the Commissioner of Human Services that the State has transitioned to chip technology electronic benefits transfer cards for all current and future participants in the SNAP.

4. a. There is hereby established the Stolen SNAP Benefits Replacement Fund, a nonlapsing revolving fund, which shall be the repository for monies collected pursuant to subsection a. of section 3 of this act. The State Treasurer shall be the custodian of the fund and all disbursements from the fund shall be made by the State Treasurer upon requests made by the Commissioner of Human Services. The monies in the fund shall be invested and reinvested by the Director of the Division of Investment in the Department of the Treasury in the same manner as other trust funds in the custody of the State Treasurer, in the manner provided by law. Interest received on the monies in the fund shall be credited to the fund.

b. Monies deposited into the fund pursuant to subsection a. of this section shall be used to replace SNAP benefits, stolen via electronic benefits transfer card skimming, card cloning, and similar fraudulent methods, upon the request of the Commissioner of Human Services. Stolen SNAP benefits shall be restored solely via the SNAP participant’s electronic benefit transfer card.

c. The fund shall be temporary in nature, and shall be dissolved by the State Treasurer no less than three months following the date on which the Commissioner of Human Services certifies to the Governor, the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), and the State Treasurer that the State has transitioned to chip technology electronic benefits transfer cards for all current and future participants in the SNAP. Upon the dissolution of the fund, the State Treasurer shall deposit any remaining fund balances into the General Fund.

5. The Commissioner of Human Services shall report to the Governor and the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), no more than three months following the dissolution of the Stolen SNAP Benefits Replacement Fund, as provided in subsection c. of section 4 of this act, on the aggregate amount of stolen SNAP benefits restored and the number of SNAP participants whose stolen benefits were restored pursuant to subsection b. of section 4 of this act, and the amount of any fund balances returned to the General Fund pursuant to subsection c. of section 4 of this act.

6. There is appropriated from the Stolen SNAP Benefits Replacement Fund, established pursuant to subsection a. of section 4 of this act, to the Administrative Office of the Courts $20,000,000 to design, operate, and maintain a standardized computer system necessary for the collection of the supplemental fee assessed pursuant to subsection a. of section 3 of this act, and for any administrative costs incurred by the courts pursuant to this act.

7. a. The Commissioner of Human Services, the State Treasurer, and the Attorney General shall, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.). adopt rules and regulations as necessary to implement this act.

b. The Supreme Court may issue Rules of the Court to implement the provisions of subsection a. of section 3 and section 6 of this act.

8. This act shall take effect immediately and shall expire upon submission of the report required pursuant to section 5 of this act.

STATEMENT

The bill directs the Commissioner of Human Services (the commissioner) to establish a process for SNAP participants to apply to the Department of Human Services (the department) for replacement of SNAP benefits stolen by electronic benefits transfer (EBT) card cloning, skimming, or other fraudulent means. SNAP participants may be eligible to have stolen SNAP benefits replaced if the benefits theft occurred between December 20, 2024, the expiration date for the federal program that replaced stolen SNAP benefits using federal funds, and the date on which the SNAP participant receives a chip technology electronic benefits transfer card from the department. Under the bill, “card cloning” means making an unauthorized copy of an EBT card, and “card skimming” means the illegal installation of devices on point-of-sale terminals to capture a cardholder’s personal identification number and other data stored on the magnetic strip of the EBT card.

The commissioner will establish a process for the department to determine that an individual’s SNAP benefits have been stolen; this process will be subject to the same conditions that applied to the replacement of SNAP benefits stolen via card skimming and cloning with federal funds, as provided under federal law. The department will post the information on its website and distribute the information, in writing, at the time of enrollment and recertification in the SNAP and with the issuance of a SNAP EBT card.

The bill establishes the Stolen SNAP Benefits Replacement Fund (the fund), from which the department will replace stolen SNAP benefits. The State Treasurer will administer the fund and will issue repayment of stolen SNAP benefits via the SNAP participant’s EBT card, upon the request of the commissioner.

In response to an OLS FY 2026 Discussion Point question, the department stated that the State’s EBT card vendor will issue chip technology EBT cards to SNAP participants in late 2025 or early 2026. Given this timeline, the bill specifies that the fund will be dissolved no less than three months after the commissioner certifies to the Governor, the Legislature, and the State Treasurer that the State has transitioned to chip technology EBT cards for all current and future SNAP participants.

The State Treasurer will assess a supplemental fee, in an amount equal to five percent of the penalties paid by a defendant in a civil or criminal settlement agreement with the Attorney General, in order to seed the fund. The supplemental fee will be collected by a court of competent jurisdiction and forwarded to the Department of the Treasury for deposit into the fund. The Attorney General will stop assessing the fee upon the commissioner’s certification that the State has transitioned to chip technology EBT cards for all current and future SNAP participants.

Within three months of the fund’s dissolution, the commissioner will report to the Governor and the Legislature on the total amount of stolen SNAP benefits restored, the number of SNAP participants whose benefits were restored, and the amount of any fund balances returned to the General Fund.

The bill appropriates $20 million from the fund to the Administrative Office of the Courts to design, operate, and maintain a standardized computer system to collect the supplemental fee and for the courts’ related administrative costs.

The bill’s provisions will take effect immediately and will expire upon submission of the commissioner’s report to the Governor and the Legislature.