NY State Senate Bill 2023-S9484

Senate Bill S9484

2023-2024 Legislative Session

Requires the department of social services to issue EMV-compliant or similar electronic benefit transfer cards and process all electronic benefit transfer system transactions using dynamic data authentication

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
May 16, 2024	referred to social services

2023-S9484 (ACTIVE) - Details

Current Committee:: Senate Social Services
Law Section:: Social Services Law
Laws Affected:: Amd §21-a, Soc Serv L

2023-S9484 (ACTIVE) - Summary

2023-S9484 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9484

SPONSOR: PERSAUD
 
TITLE OF BILL:

An act to amend the social services law, in relation to requiring the
department of social services to issue EMV-compliant or similar elec-
tronic benefit transfer cards and process all electronic benefit trans-
fer system transactions using dynamic data authentication

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would require that OTDA issue EMV-compliant EBT cards and
further require that EBT systems process transactions using dynamic data
authentication.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends section 21-a of the social services law to require OTDA
to issue EMV-compliant or similar electronic benefit transfer cards and
process all transaction using dynamic data authentication.

Section 2 provides for an effective date of January 1 of the year
following enactment into law. In the interim, OTDA would be authorized
to add, amend or repeal any rule or regulation that would effectuate
this chapter.

 
JUSTIFICATION:

The banking systems that operate the Supplemental Nutrition Assistance
Program (SNAP) and cash assistance program are vulnerable to fraud which
results in beneficiaries losing needed benefits that help them survive
with limited means. The bill would not only require OTDA to issue
EMVcompliant EBT cards, it would further require that all transactions
are processed using dynamic data authentication, an encryption model
that utilizes a unique cryptogram for each transaction which would
secure cards even in the event of skimming or data breaches.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the January l following enactment into
law.

2023-S9484 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9484
 
                             I N  S E N A T E
 
                               May 16, 2024
                                ___________
 
 Introduced  by  Sen. PERSAUD -- 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  the
   department  of social services to issue EMV-compliant or similar elec-
   tronic benefit transfer  cards  and  process  all  electronic  benefit
   transfer system transactions using dynamic data authentication

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The  opening  paragraph  of  section  21-a  of  the  social
 services  law,  as  amended  by section 1 of part F of chapter 58 of the
 laws of 2014, is amended to read as follows:
   Any electronic benefit transfer system shall  be  implemented  by  the
 department  on  a  statewide basis and shall be administered pursuant to
 the provisions of this section. For purposes of such electronic  benefit
 transfer system, the term "electronic benefit transfer" includes the use
 of  a  credit or debit card service, automated teller machine, point-of-
 sale terminal, or access to an online system for the withdrawal of funds
 or the processing of a payment for merchandise or a service. THE DEPART-
 MENT SHALL ISSUE EMV-COMPLIANT OR SIMILAR  ELECTRONIC  BENEFIT  TRANSFER
 CARDS  AND  PROCESS  ALL ELECTRONIC BENEFIT TRANSFER SYSTEM TRANSACTIONS
 USING DYNAMIC DATA AUTHENTICATION.
   § 2. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law. Effective immediately,
 the  addition,  amendment and/or repeal of any rule or regulation neces-
 sary 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.
                                                            LBD15528-01-4

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