NY State Senate Bill 2023-S8918

Senate Bill S8918

2023-2024 Legislative Session

Requires electronic benefit transfer systems to include automatic credit or debit card cancellation when fraudulent activity has been reported

download bill text pdf

Current Bill Status - In Senate Committee Social Services Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 27, 2024	referred to social services

2023-S8918 (ACTIVE) - Details

See Assembly Version of this Bill:: A9607
Current Committee:: Senate Social Services
Law Section:: Social Services Law
Laws Affected:: Amd §21-a, Soc Serv L

2023-S8918 (ACTIVE) - Summary

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.

2023-S8918 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8918

SPONSOR: SEPULVEDA
 
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:

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 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.

 
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.

 
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.

2023-S8918 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8918
 
                             I N  S E N A T E
 
                              March 27, 2024
                                ___________
 
 Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when
   printed to be committed 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:
 
   Section 1. Subdivision 1 of section 21-a of the social services law is
 amended by adding a new paragraph (c) to read as follows:
   (C) ANY ELECTRONIC BENEFIT TRANSFER  SYSTEM  IMPLEMENTED  PURSUANT  TO
 THIS  SECTION  SHALL INCLUDE THE AUTOMATIC CANCELLATION OF AN ELECTRONIC
 BENEFIT TRANSFER CREDIT OR DEBIT CARD ASSOCIATED  WITH  SUCH  ELECTRONIC
 BENEFIT  TRANSFER  SYSTEM  WHEN  A  BENEFIT RECIPIENT REPORTS FRAUDULENT
 ACTIVITY RELATING TO SUCH CREDIT OR DEBIT CARD. SUCH AUTOMATIC CANCELLA-
 TION SHALL OCCUR AT THE TIME A BENEFIT RECIPIENT COMPLETES THE PROCEDURE
 SET FORTH IN PARAGRAPH (C) OF SUBDIVISION TWO OF THIS  SECTION,  AND  AT
 SUCH TIME A BENEFIT RECIPIENT MAY APPLY FOR THE REPLACEMENT OF A LOST OR
 STOLEN CREDIT OR DEBIT CARD PURSUANT TO PARAGRAPH (D) OF SUBDIVISION TWO
 OF THIS SECTION.
   §  2.  This  act shall take effect on the thirtieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 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

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