Requires electronic benefit transfer systems to include automatic credit or debit card cancellation when fraudulent activity has been reported; directs that such cancellation shall occur as soon as the procedure for reporting fraudulent activity has been completed.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9607
SPONSOR: Berger TITLE OF BILL:
An act to amend the social services law, in relation to requiring elec-
tronic benefit transfer systems to include automatic credit or debit
card cancellation when fraudulent activity has been reported
PURPOSE OR GENERAL IDEA OF BILL:
This bill would require the implementation of a system that would auto-
matically cancel EBT cards when the recipient reports fraudulent activ-
ity
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Adds paragraph (c) to subdivision 1 of section 21-a of social
services law
(c) When an EBT recipient reports fraudulent activity on their EBT
account their card will automatically be cancelled. At this point they
will be permitted to apply for a replacement card.
2. Effective Date.
Effective Date
JUSTIFICATION:
As it stands, if an EBT recipient has their benefits stolen, they must
report their benefits stolen to get reimbursed. Then the recipient must
cancel their card in order to apply for a new, uncompromised card.
If a recipient reports fraudulent activity their card should be automat-
ically cancelled at that point. There is no reason to make these victims
jump through multiple hoops so they may once again be able to put food
on the table.
Moreover, the current multi-step system leaves victims susceptible to
further theft. If a recipient fails to cancel their current card,
thieves can continue to steal their funds each time they are added to
the account. This results in the waste of taxpayer money, added stress
to the government agency, and more hardship for an already vulnerable
New Yorker.
PRIOR LEGISLATIVE HISTORY:
New Bill
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become a law.
STATE OF NEW YORK
________________________________________________________________________
9607
IN ASSEMBLY
March 26, 2024
___________
Introduced by M. of A. BERGER -- read once and referred to the Committee
on Social Services
AN ACT to amend the social services law, in relation to requiring elec-
tronic benefit transfer systems to include automatic credit or debit
card cancellation when fraudulent activity has been reported
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 electronic benefit transfer system implemented pursuant to
4 this section shall include the automatic cancellation of an electronic
5 benefit transfer credit or debit card associated with such electronic
6 benefit transfer system when a benefit recipient reports fraudulent
7 activity relating to such credit or debit card. Such automatic cancella-
8 tion shall occur at the time a benefit recipient completes the procedure
9 set forth in paragraph (c) of subdivision two of this section, and at
10 such time a benefit recipient may apply for the replacement of a lost or
11 stolen credit or debit card pursuant to paragraph (d) of subdivision two
12 of this section.
13 § 2. This act shall take effect on the thirtieth day after it shall
14 have become a law. Effective immediately, the addition, amendment and/or
15 repeal of any rule or regulation necessary for the implementation of
16 this act on its effective date are authorized to be made and completed
17 on or before such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14824-01-4
